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Americans for the Arts' Arts & Economic Prosperity VI Study Results Notification Copyrighted October 16, 2023 City of Dubuque Action Items # 04. City Council Meeting ITEM TITLE: Americans forthe Arts'Arts & Economic Prosperity VI Study Results Notification SUM MARY: City Manager sharing the results of the Americans for the Arts' (AFTA) Arts & Economic Prosperity VI Study. SUGGESTED Suggested Disposition: Receive and File DISPOSITION: ATTACHMENTS: Description Type MVM Memo City Manager Memo Americans for the Arts'Arts & Economic Prosperity VI Staff Memo Study Results Arts and Economic Prosperity 6 Results Supporting Documentation Dubuque THE CITY QF � All-Meriea Ciry DLT B E ; . � . � �� � � MaSt� Z�C� aYd t�Q Mt55ZSSZ Z zoa�•zoiz•�ai3 YP pp za��*zai� TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Americans for the Arts' Arts & Economic Prosperity VI Study Results DATE: October 9, 2023 Arts & Cultural Affairs Manager Bonnie Spurling is sharing the results of the Americans for the Arts' (AFTA) Arts & Economic Prosperity VI Study (AEP6). AEP data collection from organizations typically takes place in the spring. However, due to the pandemic, for AEP6, this process was moved to the fall of 2022 and continued into the early months of 2023. The nonprofit arts and culture sector was devastated by the pandemic which caused a decrease in audience attendance and subsequent job losses in the arts, however the AEP6 Study showed that Dubuque's arts and culture nonprofit sector generating $70.4 million in annual economic activity, supporting 1,527 jobs, and generating $6.7 million in local and state government revenues and $41.6 million in household income to residents. The $500,000 grant from the National Endowment of the Arts (NEA) assisted by supporting arts and culture organizations to remain viable during and after the pandemic. This is provided as information only. � Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jill Connors, Economic Development Director Bonnie Spurling, Arts & Cultural Affairs Manager Dubuque Economic Development Department THE CITY OF � Office of Arts&Cultural Affairs All•Americ�CilY 1300 Main St U� � �°�"""`"��� Dubuque,IA 52001 � � Office(563)589-4393 TTY(563)690-6678 2007•2012=2013 http://www.cityofdubuque.org Masterpiece on the Mississippi �oi�*zois TO: Mike Van Milligan, City Manager FROM: Bonnie Spurling, Arts & Cultural Affairs Manager SUBJECT: Americans for the Arts' Arts & Economic Prosperity VI Study Results DATE: October 9, 2023 INTRODUCTION This memo serves as notification of the results of the Americans for the Arts' Arts & Economic Prosperity VI (AEP6) Study. BACKGROUND The City of Dubuque, in partnership with the lowa Arts Council was given the opportunity to participate in Americans for the Arts' (AFTA) Arts & Economic Prosperity VI Study (AEP6), which is the largest study of its kind about the economic impact of the nonprofit arts and cultural industry in communities. The City of Dubuque participated in AFTA's Arts & Economic Prosperity IV Study in 2012, which showed that Dubuque's arts and culture nonprofit sector generated $47.2 million in annual economic activity, supported 1,530 full-time equivalent jobs, and generated $5 million in local and state government revenues and $36.7 million in household income to residents. This previous study has been invaluable to the City, the Council, the arts and culture sector, and private partners in securing funding, grant making, advocacy, and benchmarking. In June 2021, the Council approved participation in the AEP6 Study, which provided the opportunity to calculate community current impacts to continue prioritization and investment in the arts and culture sector. DISCUSSION AEP data collection from organizations typically takes place in the spring. However, due to the pandemic, for AEP6, this process was moved to the fall of 2022 and continued into the early months of 2023. The nonprofit arts and culture sector was devastated by the pandemic which caused a decrease in audience attendance and subsequent job losses in the arts, however the AEP6 Study showed that Dubuque's arts and culture nonprofit sector generating $70.4 million in annual economic activity, supporting 1,527 jobs, and generating $6.7 million in local and state government revenues and $41.6 million in household income to residents. The $500,000 grant from the National Endowment of the Arts (NEA) assisted by supporting arts and culture organizations to remain viable during and after the pandemic. BUDGET IMPACT There is no new budget impact. RECOMMENDATION/ACTION STEP I respectfully request that the results of the AEP6 study provided be received and filed. Cc: Jill Connors, Economic Development Director AmeriC�nS :�' fQrtheArt� DUB�� �JE `�II��' EC�NONIt PROiPERIIY i ,tii,�,trr��ircr oii the R1i=.issipF,i zov:za The Economic and Social Impact of Nonprofit Arts and Culture Organizations and Their Audiences in City of Dubuque, IA � . . . .. . . . .. . Total Industry Expenditures(FY2022) $40,574,099 $29,856,780 $70,430,879 Economic Impact of Spending by Arts and Culture Organizations and Their Audiences . . . .. • .. . . . .. Employment(Jobs) 1,080 447 1,527 Personal Income Paid to Residents $28,710,639 $12,898,719 $41,609,358 Local Tax Revenue (city and county) $1,993,776 $875,999 $2,869,775 State Tax Revenue $2,615,997 $1,208,704 $3,824,701 Federal Tax Revenue $4,742,358 $2,163,562 $6,905,920 Event-Related Spending by Arts and Culture Audiences Totaled $29.9 million • . . .. . . . - . - . - Total Attendance to In-Person Events 715,370 229,636 945,006 Percentage of Total Attendance 75.7% 24.3% 100.0°/o Average Per Person, Per Event Expenditure $24.54 $53.57 $31.61 Total Event-Related Expenditures $17,555,180 $12,301,600 $29,856,780 Nonprofit Arts and Culture Audiences Spend an Average of$31.61 Per Person, Per Event • . . -. . . -. .- . .- . - . - Food and Drink $11.10 $19.61 $13.17 Retail Shopping $4.58 $7.28 $5.24 Overnight Lodging (one night only) $0.87 $11.98 $3.57 Local Transportation $1.87 $3.77 $2.33 Clothing and Accessories $1.89 $3.26 $2.23 Groceries and Supplies $2.42 $3.82 $2.76 Childcare $0.55 $0.29 $0.49 Other/Miscellaneous $1.26 $3.56 $1.82 Overall Average Per Person, Per Event $24.54 $53.57 $31.61 Source:Arts&Economic Prosperity 6: The Economic and Social Impact Study of Nonprofit Arts and Culture Organizations and TheirAudiences in the City of Dubuque. For more information about this study or about other cultural initiatives in the City of Dubuque, contact the City of Dubuque Office of Arts and Cultural Affairs. Copyright 2023 by Americans for the Arts. To learn more, visit www.AEP6.AmericansForTheArts.orq. Page 1 of 2 : � � � 1 � � �_ O� Past studies have focused primarily on the financial, economic, and tourism contributions of the nonprofit arts and culture industry.AEP6 expands beyond those topics to include measures of social impact. Surveys completed by individual attendees in the the City of Dubuque demonstrate an appreciation for how the arts and culture impacts the development and well-being of the community and its residents. Audiences Demonstrate Appreciation for the Impact of Arts and Culture . � . . .. . "This venue or facility is an important pillar for me within my community." 89.6% "I would feel a great sense of loss if this activity or venue were no longer available." 89.4% "This activity or venue is inspiring a sense of pride in this neighborhood or community." 92.9% "My attendance is my way of ensuring that this activity or venue is preserved for future generations" 90.1% About This Study Americans for the Arts conducted AEP6 to document the economic and social benefits of the nation's nonprofit arts and culture industry. The study was conducted in 373 diverse communities and regions across the country, representing all 50 states and Puerto Rico. The City of Dubuque Office of Arts and Cultural Affairs joined the study on behalf of the City of Dubuque. For additional information including the national report, summaries for the 373 communities, an online calculator, and a description of the project methodology, visit www.AE P6.Americans ForTheArts.orq. Surveys of Nonprofit Arts and Culture Organizations Nationally, detailed information was collected from 16,399 nonprofit arts and culture organizations about their FY2022 expenditures (e.g., labor, local and non-local artists, operations, materials,facilities, and asset acquisition), as well as their event attendance, in-kind contributions, and volunteerism. Surveys were collected from February through July 2023. Some organizations only provided total expenditures and attendance (they are included in the study). Responding organizations had budgets ranging from a low of$0 to a high of$375 million. Response rates for the 373 communities averaged 43.9% and ranged from 5%to 100%. In the City of Dubuque, 47 of the 102 total eligible nonprofit arts and culture organizations identified by the City of Dubuque Office of Arts and Cultural Affairs provided the financial and attendance information required for the study analysis—an overall participation rate of 46.1%. It is important to note that each study region's results are based solely on the survey data collected. No estimates have been made to account for non-respondents. Therefore, the less-than-100 percent response rates suggest an understatement of the economic impact findings. Surveys of Nonprofit Arts and Culture Audiences Audience-intercept surveying, a common and accepted research method, was conducted to measure event-related spending by audiences. Attendees were asked to complete a short survey while attending an event. Nationally, a total of 224,677 attendees completed the survey. The randomly selected respondents provided itemized expenditure data on attendance-related activities such as meals, souvenirs, transportation, and lodging, as well as socioeconomic information, ZIP code of primary residence, and four social impact questions. Data was collected from May 2022 through June 2023 at a broad range of both paid and free events. In the City of Dubuque, a total of 777 valid audience-intercept surveys were collected from attendees to nonprofit arts and culture performances, events, exhibits, and special events during the period from May 2022 through June 2023. Studying Economic Impact Using Input-Output Analysis Americans for the Arts uses the IMPLAN platform to create the customized models for each of the 373 study regions. Input-output models calculate the interdependencies between various sectors or industries within a region. This analysis traces how many times a dollar is respent within the local economy before it leaks out, and it quantifies the economic impact of each round of spending. This form of economic analysis is well suited for AEP studies because it can be customized specifically to each participating community, region, or state. To complete this analysis for the City of Dubuque, the researchers used the IMPLAN platform to build a customized input-output model based on the unique economic and industrial characteristics of Dubuque County. Research Notes: ' For the purpose of this study, local attendees live within Dubuque County; nonlocals live elsewhere. Page 2 of 2 : � � � 1 � � �_ O�