advertisement

How will Elgin tourism bureau meet salary cap?

The board of directors for the Elgin Area Convention and Visitors Bureau has tough decisions ahead in the wake of a new contractual agreement with the city of Elgin that caps how much can be spent on salaries.

Board members Mike Petersdorf and Chris Nelson declined to say what action the board might take at its April meeting. Options would include cutting salaries and benefits, laying off people, or a combination. "Those details will be discussed. We will discuss the pros and cons," Petersdorf said.

"The city leadership did communicate with us prior to offering this contract," Nelson said. "I think some of their goals was to make sure they were managing salaries same as how they manage salaries for their municipal employees."

The $196,700 one-year contract approved last week - the first between the bureau and the city, which previously gave the bureau money under a generic agreement - requires the bureau to create a comprehensive marketing plan for the city.

"I think the concept as a whole is a good one," Petersdorf said. "I don't have any issue with the concept of the bureau actually providing services to the city of Elgin for fees ... I don't think most of the board members have an issue with that."

The contract limits to 50 percent of that how much the bureau can spend on salaries, payroll taxes and benefits, just like a matching state grant does. Under that model, the bureau's current spending would exceed the total allotted amount by about $79,000, according to figures provided by the city. The budget includes $131,200 in salary and vehicle stipend for president and CEO Kim Bless, and about $106,000 combined for two more full-time employees and one part-timer.

Bless said the discussion is up to the board and will hinge on the amount of state funding moving forward. "I'm very excited to meet and exceed the expectations of the city. We certainly want to make sure we are great partners with the city," she said.

Nelson pointed out that Elgin's previous city manager, Sean Stegall, served on the board until he left in 2016. "There was a degree of confidence that the city was accepting of Kim's compensation levels," he said.

Councilwoman Carol Rauschenberger said she's been disappointed in the lack of accountability from the bureau in the last few years.

"They are very unclear in their mission and strategies, which comes to me as (a sign) of little understanding or capability to do the job they should be tasked with," she said.

City Manager Rick Kozal has led the charge in holding the bureau accountable.

"The bottom line is we just want more from the funds we are giving you," Councilman Terry Gavin said.

The bureau represents nine municipalities, only three of them with hotels. Elgin has nine hotels and has contributed $200,000 or so yearly to the bureau. West Dundee - where Nelson is village president - has two hotels and contributes $7,500 per year. Hampshire has one hotel but does not contribute to the bureau's funding.

Elgin tourism bureau CEO urges city council not to cut funding

Elgin council calls out tourism bureau's salaries as hotel tax hike grows

Elgin considering cap on tourism bureau salaries

Article Comments
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the "flag" link in the lower-right corner of the comment box. To find our more, read our FAQ.