Page 439 - 2022-23 Blue Book Vol 2

LOS ANGELES TOURISM & CONVENTION BOARD

BASIS FOR THE PROPOSED BUDGET

The 2022-23 Proposed Budget for the Los Angeles Tourism & Convention Board (LATCB) relates to current year
funding as follows:

Amount % Change

2021-22 Adopted Budget $ 13,775,000

2022-23 Proposed Budget $ 19,840,000

Change from 2021-22 Budget $ 6,065,000 44.03%

The LATCB budget consists of multiple funding sources, including funds from the City, the Los Angeles Tourism
Marketing District, Los Angeles World Airports, and private sources. The amounts reflected above represent the
City's contribution to the overall LATCB budget, which is equivalent to one fourteenth of the Transient Occupancy
Tax (TOT) less costs for City administrative services. The TOT is a 14 percent tax on hotel and short-term rental
guests. The City has contracted with LATCB to market Los Angeles as a convention, meeting and leisure travel
destination.

City Appropriation and Trust Fund Retention

The Los Angeles Convention and Visitors Bureau Trust Fund (Trust Fund), from which LATCB is paid, receives an
amount equivalent to one-fourteenth of the TOT. LATCB is paid 95 percent of this amount in accordance with the
Agreement between the City and LATCB. The remaining five percent is retained in the Trust Fund in the event of a
shortfall in TOT collections. Nonetheless, LATCB prepares its annual budget based on 100 percent of the TOT
allocation. In the event the TOT actual receipts are higher than budgeted, LATCB would be paid the difference the
following fiscal year.

EXPENDITURES

Actual Estimated Proposed
Expenditures Expenditures Budget
PROGRAM 2020-21 2021-22 2022-23

Convention and Meeting Sales and Services $ 2,330,000 $ 4,729,000 $ 6,349,000

Domestic and International Marketing, Global
Public Relations, and Media 2,445,000 7,610,000 8,028,000

Operations (Finance, Legal, Technology &
Human Resources) 3,364,000 5,005,000 5,201,000

Allocation to TOT Reserve Fund, for funding
future programming - - 262,000

Total Expenditures $ 8,139,000 $ 17,344,000 $ 19,840,000

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