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      • CAREFREE: Raftelis Rebuttal Report - 7/24/20
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  • LETTERS FROM READERS #2
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  • TOWN MEETING AGENDA
    • Workshop to discuss Fiscal Year 2023-2024 budget 5/25/23
    • Workshop to discuss Fiscal Year 2023-2024 budget
    • Carefree Meeting Agenda: 4/4/23
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    • Carefree Meeting Agenda: Council visioning workshop 2/3/23
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    • Carefree Meeting Agenda: 10/25/22 >
      • 10/4/22 Town Meeting Pics and Slides
      • Carefree Meeting Agenda: Council visioning workshop
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    • 2/9/21 CAREFREE UTILITIES COMMUNITY FACILITIES DISTRICT
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    • Carefree Meeting Agenda: 12/1/20
    • 11/18/20 Swearing In and Strategic Meeting
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    • 10/13/20 STRATEGIC PLANNING WORKSHOP
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Carefree Truth
Issue #641, May 1, 2018

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Marketing Director Gina Kaegi utilizes the multi-channel marketing approach which includes Events/3rd party contracts, Digital marketing/PR, Print advertising, and Creative/general office.  Creative and general office are support functions.  Digital marketing campaigns include a new responsive Tourism website www.visitcarefree.com, video marketing, social media marketing, Google AdWords SEM, and responsive event calendars.   


All events cost money, from the contract with Ray Villafane to the tape used to put up signs.  She estimated the investment for the Signature Events and the smaller, traffic builder Day Events at $260,000, which includes Ray's contract.  The Council has discussed, voted on, and helped make successful the 2 signature events, the Enchanted Pumpkin Garden and Christmas in Carefree, both of which will continue.  The smaller builders include the Farmer's Market, the YMCA free yoga classes by the sundial, the Garden Seminars, Veteran's Day, and Memorial Day.



People now want access to information any time and any place, and they look for recommendations through technology.  Travelers are online planning trips, thus can be engaged before they arrive.  Media are on social sites looking for content.  Digital marketing provides more engagement with a wider audience, and produces tangible results for 1/5 the cost of print ads.  Carefree needs to target visitors.  If a visitor eats in a restaurant, takes a picture of the food, and gives a great review on social media, that goes out to thousands, then followers discover the town, businesses, and events.



Vice Mayor John Crane questioned the reduced expenditure for print by $10,000 and the increased expenditure for digital by $30,000.  He asked why, when digital is more effective than print, that number was so big.  Mrs. Kaegi explained that digital covers many different areas.  Carefree will be building a responsive Tourism website for $3,500, the standard cost, that works with the Town's social media and events.  The current website is fine for government content but a Tourism website is needed that shows off the town and is tied to all of Carefree's social media outlets as well as to local businesses, such as the English Rose Tea Room, that post frequently.


Councilwoman Cheryl Kroyer added that there are so many different elements.  You can't pick one and hope to cover everybody.  The world is so fractionalized, making it necessary to get to a lot of different places to have some impact.  When an ad is placed in the local newspaper, you get one big bang.  Social media has more impact, but it must be used differently.  Vice Mayor Crane asked why the decision was made not to move the print money over to digital.  Ms. Kroyer said there are also reasons to continue to use print marketing.



Mr. Farrar asked why the digital marketing amount went up from $18,200.  Mrs. Kaegi explained that there are a lot of targeted ads on the web.  If someone goes to the Carefree website, then goes to another site, they will see an ad for Carefree.  But that is just one spoke in the wheel and the Town wants to increase it.  The responsive website will drive people who are checking on an event back to Carefree's webpage, driving traffic and allowing the user to see all of Carefree's other offerings.  Mr. Farrar asked, "Did you cost it out?"  Mrs. Kaegi replied that these were proposals from the same consulting firm that works with Civana, which leverages our resources.  It's not simple.  Each outlet appeals to different people and likes.  They are vehicles to communicate.  If you are not on all of them, you are missing targets.  An analogy would be placing a print ad in one magazine versus placing it in 6 magazines.


Mr. Farrar asked what was included in the $150,000 for 3rd party contracts.  Mrs. Kaegi responded that it included $100,000 for Ray Villafane's contract, as well as the logistics for all the events.  Councilman Mike Krahe asked what logistics includes.  Mrs. Kaegi explained that logistics includes 3rd party labor during events, such as placing barricades, lighting, and cleaning.  It also includes purchasing merchandise for cost recovery, inflatables like the corn maze, and the Harvest Market which necessitates closing roads, fences, gates, etc. 



Mr. Farrar stated that the last Pumpkin Festival showed a $100,000 loss.  Mrs. Kaegi replied, "A loss?  From what?  I don't understand that comment."  Mayor Peterson reported that the Festival cost $129,605, with a cost recovery of $40,319.  Ms. Kroyer noted that there is a cost recovery model that would be discussed later in the presentation.  She suggested that Mrs. Kaegi be allowed to finish the presentation, then if there were still questions they could be addressed at that point.


Mrs. Kaegi said that she will continue to work with local print newspapers and magazines.  Rack cards and signage will continue to be printed.  Mr. Farrar questioned the difference between the amount allotted to print marketing on the slide and in her presentation.  Mrs. Kaegi explained that after the slides were printed, she received some proposals that caused her to shift some of the money from print to digital marketing, but that the overall amount for the combined digital and print marketing remained the same.  Money gets moved around as better deals are found.  It's an organic process.  She is always looking for ways to save money.  Marketing finished this fiscal year $35,000 under budget.



The cost recovery plan is to create new revenue streams that enhance events and also benefit local businesses.  This will have an impact on sales tax revenue by attracting critical masses with quality, appealing events.  The 2017/18 cost recovery goal was $125,000.  It was exceeded at $140,000.  The 2018/19 goal is $175,000.  Carefree is looking to recover $175, 000 to offset by 2/3 the $260,000 costs of the signature events.  This would bring the total marketing investment of $418,000 to $243,000.


Mr. Farrar argued that $175,000 was not 2/3 of $418,00; it was only 42%.  Mayor Peterson explained to Mr. Farrar that the 2/3 referred to the offset of the signature events costs, not the entire marketing budget.  He said that Carefree doesn't seek to recover the costs of what he considered mandatory PR like COINS.  They only seek to recover some of the costs of the special events.  Mr. Farrar asked if any of the digital and print marketing was part of the events.  Dr. Krahe explained that it's a mix.  "We leverage those things in other ways besides the events."  Mrs. Kaegi agreed that when she markets the events, she also markets the town.  That falls under the digital and print advertising category.  The Pumpkin marketing directs people to the Town website.  Mrs. Kaegi apologized if she made it too confusing.  Dr. Krahe replied that her presentation was actually very informative.  He learned a lot about the mixture and the why of it.


Councilman Gene Orrico said that the Christmas Festival had traditionally cost $60,000 and change.  For 2017 the estimate was $76,000 and change.  For 2018 it was back down to $60,000 and change.  Was that due to the cost recovery?  Mrs. Kaegi explained that she figures out ways to shave costs and do things better through experience with the individual events.  The Town will probably take it down a notch.  Rather than 3 weeks, there will be a tree lighting ceremony, probably a 3 day weekend, and the beautiful lighting in the Gardens.  There's a lot going on during that season.



Mr. Farrar noted that there were logistics in the budget for Veteran's Day and the Block Party, but none for Memorial Day.  He said that it was a problem because it had not been budgeted for the current fiscal year and he wanted to be sure it was included if the Council wanted to do it next year.  Mrs. Kaegi explained that Town accountant Jim Keen creates the line items.  Mr. Keen said the funding was included in the Veteran's Day line.  Mrs. Kaegi said she needed notice of new events well in advance so she could plan her budget.  Mr. Farrar said he started talking to her about this in December.  Dr. Krahe pointed out that it never got to the Council for discussion.  Mrs. Kaegi reiterated that the dollars would be there.


Mr. Farrar said the Council would decide whether they wanted to run with the trolley again.  This year, the investment was $11,000 and the payback to the Town was $8,000.  Nothing was spent relative to marketing.  So it was fundamentally a $3,000 investment.  If the Council elects to go forward with the trolley event next season, shouldn't there be a line item for it?  Mr. Keen replied that it came out of the contingency fund this season, not out of marketing, though the printed signs for the trolley fell into the print marketing.  Dr. Krahe reassured Mr. Farrar that the money is there.  Mayor Peterson commented that the Council hasn't seen an analysis of the trolley yet to see if they want to consider it again, and Memorial Day hasn't happened yet.  Dr. Krahe asked if the Council was going to see an analysis of the trolley.  Mr. Farrar said trolley must be allowed to run its season, through the end of April, and he would give an update at the May Council meeting.  Mayor Peterson said it is on the May agenda.  Mr. Farrar wanted to be sure that the money was set aside in the event that the Council elects to say the $3,000 investment was a good community service that provided some benefit.  The Mayor said the answer is yes.  Dr. Krahe agreed that the dollars could be found.  Mr. Keen explained that there is a $200,000 contingency fund.  The Council has to vote to spend it.

https://vimeo.com/266673739


Lyn Hitchon


Prepared by Carefree Truth
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