City Council Meeting Date: November 4, 2025
To: Mayor and City Council
From: Ben Martig, City Administrator
Subject:
TITLE
Consideration of Approval of the 2026 Budget for the Convention and Visitors Bureau.
BODY
Action Requested:
The Northfield City Council approves a motion to accept and approve the 2026 Budget for the Convention and Visitors Bureau.
Summary Report:
Per City Code Chapter 74 (attachment 2), the City is required to approve the CVB budget for the upcoming year prior to distributing the lodging tax. The CVB Advisory Board met on October 21st for a strategic planning session and budget discussion. The 2026 budget for Council approval is attached (attachment 1).
Jane Bartho, President of the Northfield Area Chamber of Commerce, gave the annual presentation on the Convention and Visitors Bureau (CVB) work at the October 7, 2025 City Council meeting. A link to that presentation is attached (attachment 5)
Also attached is a link to Minnesota State Statute 469.190 Local Lodging Tax (attachment 3) and the current 2025-2027 City/CVB agreement (attachment 4).
President of the Northfield Area Chamber of Commerce, Jane Bartho, provided the below narrative regarding the 2026 budget:
We’ve submitted the proposed CVB budget, which has been reviewed and approved by the CVB Board. You’ll notice that the budget reflects a year-end spending deficit. This is the result of the Board’s decision to allocate an additional $40,000 toward promoting local events-an investment intended to further support our community and increase visitor engagement.
To cover this additional expense, funds will be drawn from the CVB’s savings account. Even after this transfer, the CVB will maintain a healthy reserve, with more than $40,000 remaining in savings and over $11,000 in our CD account.
Alternative Options:
The Council could choose to suggest modifications to the 2026 CVB annual budget.
Financial Impacts:
Funding is provided from the 3% lodging tax collected on all lodging rooms within the City. 95% of the tax collected is used to fund a local convention or tourism bureau for the purpose of marking and promoting the City as a tourist or convention center. The remaining 5% is used by the City for administrative fees. No proceeds of the lodging tax shall be distributed to the Chamber for CVB services until the budget has been approved by the City Council.
Tentative Timelines:
Approval of the budget at this meeting will allow Chamber/CVB staff to continue planning and preparation for 2026.