Southwest Airlines brings New Opportunity to Branson Despite Anti-Growth Efforts

A well organized welcome ceremony marked the official release of  Southwest Airlines initial flight schedule to and from the Branson Airport.

 Branson's Airport (BKG) is unique in that it is the only airport in the United States with international capacity that is  privately owned.

At the end of the year it is estimated that the airport will have absorbed $60 million in operating losses - an investment gambled with one intention - that Southwest Airlines would enter the market.

Twice a year since taking office Branson's Mayor Raeanne Presley has openly and publicly criticized the airport ensuring regional news outlets distribute a foray of negative publicity in unsuccessful attempts to cripple the airport. While Presley's anti business development agenda proved a thorn in the airport's side the goal of bringing Southwest Airlines to Branson has been reached.

Much of Branson Airport's debts have been incurred to bring the discount airline's business to Branson. A company mirroring Southwest Airlines destinations was financed to prove feasibility of Branson as a profitable destination and scores of meetings were held to negotiate the travel behemoths' services which promises to bring prosperity.  A Branson Airline was created for the sole purpose of emulating Soutwest Flight patterns.

Unlike the airport Presley served on the board for, the Branson Airport is not subsidized by tax dollars. In order to receive funds ($8.50 per passenger) Branson is only required to pay when an actual customer is delivered to the area and many months after their financial benefits are reaped.  The initial calculations are based on extensive studies conducted on tourism and actual revenue brought per tourist to the area.

Some in Presley's camp fear that a higher demographic will not be as interested in  the lesser known entertainment offerings that Branson has to offer.

They fear new business will raise wages and serve as a fiscal detriment to a minority of busines owners that aren't seeking growth nor an expanding demographic. Alas attempts to close Branson to a more prosperous group have been thwarted in one swift move. 

The victory is for Branson at large and defeat to those that prefer poverty as a means to capitalize on cheap labor and limited opportunity. And while a more educated and younger crowd will do little for the mayor's private business it promises new opportunity and a new era for Branson.

Branson has been branded as a drive-to destination but the wisdom of leaders, mostly gone from public office, proved prudent as the Branson Convention Center, Branson Landing and Branson Airport have exceeded expectation. The three are interconnected as they are features national event planners need to enhance Branson's offering for a corporate and/or event market.

The Branson Landing and a Tax Increment Financing (TIF) opportunity are the financial means for the Branson Convention Center to stay afloat. An airport able to handle 737's and flight availability from anywhere in the country enhances the Branson offering, and an opportunity for the community to become more prosperous.

The combination of access to a broader population base, facilities to handle conventions and an economic engine (the Branson Landing) which has generated $100,000,000 in annual sales is brimstone to those who profit from poverty and a blessing to members of the community at large.

Branson owes a tremendous thank you to the entrepreneurs who've worked hard and invested their own funds and believe in Branson to a greater degree than the temporary leaders who've gained prosperity through marriage and heir from the  true entrepreneurs of Branson's past.

Branson Calendar 2009 Sales Tax Income Second Highest in City's History

Branson reported sales tax on $989,573,200 in sales during calender 2009. The figure was topped only by 2008 sales of $10,177,952. Per capita, 2009 sales scored a $141,368 exchange.

The retail construction boom of the "Lou Shaefer" era sheltered Branson from the longest reported recession in history. Calendar years 2006-2009 recorded leaps in growth while some areas of Branson faced a rapid decline.


Some traditional theaters scored a steep decline as regional pull shifted to new offerings. Over twenty percent of sales tax revenue came from areas officially labeled blighted.

Families scored big for Branson and the Branson Convention Center brought international guests skewing numbers in a positive direction in the third quarter. Religous sector experienced growth as Branson proved they could sell out crowds with public theaer capacity.

Gaines from the Convention Center pushed growth in weeks some of our traditional theaters, who haven't produced revenue increases in a decade, provided a bump in theater ticket sales.

Branson Alderman all but ignored a yellow light issued by financial consultants in 2007 dwindling $5 million in savings despite federal subsidies from the Obama Administration (i.e. TaneyCobama bridge.

City spending wasn't without heart, 2009 proved the year of the "Giant Cardboard Check" as third-party organizations received "show-style" honors during public meetings.

The Branson Board of Alderman succeeded in pushing legislation against the Time-Share industry and failed dismally on tourism funding through Jefferson City.

A huge halt to new industry, the city of Branson administrators focused on environmental health which has halted by economic health. While the Taney County Health department recieved substantial subsidies as did Skaggs Hospital, whose board the mayor serves on, had substantial increases in public funding, the city recycling center decreased services.

City leaders gave themselves a big raise topping $150,000 for a line item, "Mayor and the Board of Alderman".

Though Branson had more money to spend than ever fiscal restraint isn't a trademark as new commitments fo subsidize private community services outpaced the city's ability to generate income.

Capatalizing on the Branson Landing

Since the Branson Landing's inception I've been trying to figure out how to capitalize on it.
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A recent Branson Chamber of Commerce survey concluded Branson's $450 million dollar lakefront project was Branson Missouri's top destination.

I've sat center stage the past 31 days with the clearest view of the property - studying.

Rick Huffman, the developer of the Branson Landing stopped by last week before heading to an architectural awards ceremony in Las Vegas. Between then and now he's crushed my cold drink monopoly with Coke machines in the Town Square.

After Branson whistleblower Ruth Denham unfolded corruption in Branson Mayor Raeanne Presley administration not even Huffman, always known as bold in business, dares attempt reform efforts to save Branson's economy.

In three years the Branson Landing and Branson Hills projects have generated over 25 percent of Branson's income. Unfortunately, Branson's current administration can't seem to stop frivolously spending it.

Memorial Day is coming and the seasonal rush has tourists moving from a trickling creek to a steady stream (rain days excluded).

It's time to get paid....

City of Branson Revenue At All Time High

Branson's current city administration has more money to play with than ever before with income at an all time high.
The two images above depict income flowing into Branson's city budget. Again, many businesses in Branson are suffering as they are nationwide; however, Branson city leaders have more money to play with than ever before despite press releases and correspondence that speak otherwise.
2008 marks a record high in sales tax up 4.8% from Branson's record 2007 increases,. The City of Branson's Tourism tax is up3.7% above 2007 - once again an all time high.
As stated in the last three posts and for several months, Branson's deficit is due to new spending not a decline in revenue.

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If new spending allocated to special interests translates to fiscal responsibility, then we can call this administration "very responsible". And if we can call hiding the success of the Branson Landings contribution to the Branson economy "open government" ......

Branson Economy - TIF Districs Compared - First 3 months

The image above is from a spreadsheet we posted on the Branson Edge homepage. Since their are several TIF (Tax Increment Financed) districts in Missouri being propose this document should have large spread interest.


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Another thing this chart should tell you is that anyone supporting Proposition A either:

1. Hates Branson

2. Is taking bribes

3. Is getting millions of dollars from the tax proposal being passed.

Which limits it to a few very wealthy Eastern Taney County residents and the White River Valley Historical Society.

Missouri Minimum Wage Increase - Is it Good for Servers ?

Missouri's Division of Labor standards issued a press release last week reminding business owners that minimum wate will increase 15 cents on January 1st 2008 from $6.50 to $6.65 per hour.

----Opinion----
When I first heard Missouri had a separate minimum wage for servers I was shocked. But the reality is most servers make their money off tips. Restaurants typically schedule servers based on a target percentage x's estimated sales.
Branson is relatively predictable due to the tourists cycles and an increase in hourly labor means most restaurants allocate less hours.
The increase in Branson restaurant labor cost means a lower quality of service for tourists and lower pay for Branson employees.

Branson Rolling 12 Month Financials - City Wide + TIF Districts

The chart above shows Branson's 12 month rolling financials. TIF districts are categorized separately.

We don't know too much about it. How about you study it with me?

City of Branson's $61 million 2008 Budget

"Branson is in full bloom", said Ward 3 Alderman Stephen Marshall Thursday Sept. 13 at Branson's board of Alderman meeting. Marshall's comments were made after the first reading and board approval of Branson's $61 million 2008 operating budget.
Changes to the budget approval include an initiative by Mayor Raeanne Presley putting qualified citizens on the budget committee.
The process involved intensive all-day meetings and departmental groundwork before alderman gave approval for the 2008 budget.

Budget Presentation Highlights Prepared by City of Branson
Increased Revenue:
Tourism tax estimate up $472,000 from FY2007 estimate.
Sales tax estimate up $700,000 from FY2007 estimate.
Transportation tax up $500,000 from FY2007 estimate.
$4,000,000 projected new revenue from convention center.
Total General Fund revenue up over $4,500,000 from $17,229,552 in FY2007 to $21,946,433 in FY 2008.
Revenue growth covers debt payments and capital project budget.

Major Revenue Sources
2007 Adopted 2008 Projected
Ad valorem Taxes $1,928,896 $2,347,440
Sales Tax $9,662,138 $10,353,000
Transportation Tax $4,831,069 $5,176,000
Tourism Tax $11,050,000 $11,472,000
Licenses/Rents $1,553,833 $5,232,832
Court fines $260,000 $280,000
Fees/Fines/Permits $900,675 $1,191,042
Other revenue $2,026,010 $2,095,900

Expenditures by fund:
General Fund: $20,717,017
Recreation Fund: $2,125,454
Water & Sewer Fund: $8,372,941
Transportation Fund: $1,799,997
Debt Service Fund: $9,705,674
Tourism Tax Fund: $6,967,998
Vehicle and Equipment Fund: $1,612,500
Total: $51,351,581 million.

Capital Budget Highlights
Replacement of a ladder truck for fire department - $700,000.
Replacement of two (2) dump trucks for Public Works - $160,000.
Increase funds to the sinking fund for new police station - $500,000.
Costs for Cooper Creek Wastewater plant engineering and design. - $1,200,000.
Space and location study for new police station - $30,000.
Update design for Fire station #4 - $10,000.
Funding for completion of Fall Creek road - $3.5m
Funding for Long Street – phase 2: $1.5m

Total capital projects: $10.5 million.
All proposed Capital Projects will be funded from current resources and available fund balances with no new bonded debt.

Operating Budget Highlights
The addition of new positions for city departments including:
Police – 2 FTE
City Clerk – 1.5 FTE
Health – 1 FTE
Salary adjustments for police officers and 30 other positions to make salaries comparable with other market cities as well as salary adjustments (COLA) for all employees.
Health Insurance increase of 7.31%.
Convention center operations - $4 million.
Increased debt service due to the Branson Landing project - $2.1 million

Total Budget is $61 million.
Represents a 23% increase over 2006-2007.
If new and one time items were removed, the budget increase would annually be only 5.65%.

Branson's Market Prosperous - 1st Quarter Upswing

 

Branson Lakes Area Chamber of Commerce and CVB Marketing Director Dan Lennon delivered a promising report to Branson alderman Monday May 14. First quarter regional economic indicators demonstrated a successful beginning to the year. Stone County, Taney County, and Indian Point sales tax revenues showed an increase over last year’s first quarter reports. Taney County showed a 17.7 percent increase over 2006 with sales tax figures totaling $2,243,000. Indian Point’s first quarter showed a 15.5 percent increase with $14,333 in sales tax collected. Stone County showed a more moderate increase of 3.48 percent with $335,512. An independent firm, Smith Travel Research, reported hotel bookings have increased 23.3 percent. Lennon shared each month varied and part of the upswing is attributable to Branson’s proximity to communities affected by winter ice storms. The city of Branson showed the greatest increase at 25.94 percent representing $1,383,807 in sales tax revenue from January through March.
Heavy interest from tourists seeking information about the Branson market was reported.. Lennon said 2007 inquiries are on pace to set a new record though double digit increases shouldn’t be anticipated. In 2006 inquiries increased nearly 200%.
Phone volume to the Branson Area Chamber & CVB showed a 21 percent decrease with radically increased inquiries coming from the Internet over the last two years. Lennon said the shift was inline with national booking trends and 2007 marks the first year online travel transactions will eclipse revenue from traditional methods booking travel services.
Lennon projected gasoline prices are a wildcard but won’t necessarily hurt Branson’s tourist traffic. Citing an industry expert, Lennon said if prices maintained high price levels average tourist expenditures could drop.

Stone County Version
Stone County’s economy is on track for a record year. First quarter sales tax records showed a 3.48 percent increase over last year’s first quarter revenue. Regionally, the numbers are even higher. Indian Point’s first quarter increased 15.5 percent over last year, Taney County showed a 17.7 percent increase and the city of Branson an impressive 25.94 percent increase.
The reported figures were delivered by Branson Lakes Area Chamber of Commerce Marketing Director Dan Lennon to Branson leadership last week. The regional tourism tax, which covers part of Stone County, funded a massive marketing blitz which is helping the regional economy gain momentum.
Some of the economic success experienced this winter is attributable to Lake’s area resorts servicing storm refugees while power outages ensued. Silver Dollar City reported a 10 year high in 2006. The Table Rock Lake Area Chamber reported a 9 percent increase in 2006 with $120,918,361 in direct sales. Cindy Morris of the chamber said tourism accounts for 1,931 Stone County jobs.
The Stone County economy kicks into gear during the summer months and marketing efforts are underway to increase stimulus during the fall season. An increased focus on advertising focused on outdoor recreation activities will encourage the possibility of another record breaking year for the Stone County economy.