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Home My WebLink AboutTDA Board Meeting October 30 2013 NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY BOARD OF DIRECTORS OCTOBER 30, 2013 PRESENT: Jonathan Barfield, NHC Commissioner Anne E. Brodsky, Motel Owner – Kure Beach David Cignotti, Mayor – Wrightsville Beach Kim Hufham, President/CEO – NHC TDA Frank Jones, Hotel – (150-) Wilmington Mike Keeler, Hotel – 150 (+) Wilmington Carl Marshburn, NHC Attraction Sabina Newman, Greater Wilmington Area C of C Angela Rhodes – County Restaurants Bill Saffo, Mayor – City of Wilmington Lisa Wurtzbacher, New Hanover County Finance Officer EXCUSED: Chuck Pennington, Anne Marie Hartman, Neal Johnson, Mayor Bob Lewis, LeAnne Pierce ABSENT: Mayor Dean Lambeth STAFF: Jeanette Foster/Administrative Services Manager, Recording Secretary Mikie Wall, Vice-President Sales and Services Connie Nelson, PR/Communications Director Linda Brothers, NHC Financial Analyst Chairman Carl Marshburn called the meeting of the New Hanover County Tourism Development Authority Board to order at 5:33 p.m. at the New Hanover County Government Complex in Board Room 500. ITEM #1 – EXCUSED Chairman Marshburn acknowledged excused absences for Chuck Pennington, Anne Marie Hartman, LeAnn Pierce, Mayor Bob Lewis, Neal Johnson. ITEM #2 – MINUTES APPROVAL – AUGUST 28, 2013 [Motion made by Sabina Newman, seconded by Anne Brodsky and unanimously accepted to approve the August 28, 2013 TDA Board minutes as read.] 1 ITEM #3 – AUDIT PRESENTATION -2012-2013 – LISA WURTZBACHER Lisa Wurtzbacher, Authority Finance Officer, advised the audit firm of Martin and Starnes had presented the 2012-2013 audit results to the TDA Executive Committee and asked that she present their findings to the full Board. She stated we had received a clean opinion. (See attached visual report). [Motion made by Frank Jones, seconded by Anne Brodsky and unanimously approved to accept the audit presentation for FY 2012-2013 as presented.] ITEM #4 – FINANCIALS/ROT REPORT – LISA WURTZBACHER New Hanover County Finance Officer Lisa Wurtzbacher reported the first quarter results for expenditures (July 1 – September 30, 2013) or 25% of the Fiscal Year. Expenditures show we have spent $239,525 for first 3% or total of 19% in Marketing and Promotions; $32,973 or 26% in Visitor Information Services; $65,281 or 20% in Administration. We are below last year to date by 5%. nd 2 3% for beaches – total of $238,191 or 12% has been spent for the first 3 months of FY 2013-2014. Convention Center budget - $75,481 or 25% has been spent. Grand total for expenditures for the first quarter equals $651,450 spent or 17%. Rooms Occupancy Tax (ROT): First 3% for the two-month period of July/August shows 6.08% increase over same period last FY. Second 3% of ROT: Carolina Beach – 6.11% increase over same period of time last FY; Kure Beach – 3.81% increase; Wrightsville Beach – 2.51% increase; City of Wilmington – 4% increase; Convention Center – down slightly at 0.35%. [Motion made by Frank Jones, seconded by Anne Brodsky and unanimously accepted to approve the Financial Report as presented.] ITEM #5 – BUDGET AMENDMENT APPROVAL BA#2014-001 – LISA WURTZBACHER Lisa Wurtzbacher, New Hanover County Finance Officer presented Budget Amendment – BA#2014-001 for adoption by the New Hanover County Tourism Development Authority Board, amending the annual budget ordinance for the fiscal year ending June 30, 2014. 2 Budget Amendment BA#2014-001 to appropriate FY 2012-2013 fund balance. This amendment is broken down into 3 sections. Section One is to appropriate the available fund balances as outlined in the FY 12-13 Annual Audit from remaining nd funds of the 2 3% ROT for Promotions at Carolina, Kure and Wrightsville Beaches. Amendment amount is $29,201. Section two is to appropriate the available fund balances as outlined in the FY 12-13 nd Annual Audit from remaining funds of the 2 3% ROT for Activities at Carolina, Kure and Wrightsville Beaches. Amendment amount is $599,683. Section three is to appropriate remaining funding received FY 12-13 from the City of Wilmington for Convention Center Marketing. Amendment amount is $15,785. [Motion made by Sabina Newman, seconded by Anne Brodsky and unanimously approved to accept Budget Amendment BA#2014-001 as adopted by the New Hanover County TDA Board.] Amendment can be found in TDA Budget Ordinances Book. ITEM #6 – FUNDING REQUEST – CAROLINA BEACH – KIM HUFHAM The Town of Carolina Beach respectfully requests TDA funds in the amount of $256,697.34 for expenses incurred for lifeguard salaries and benefits for the period of November 2012 – June 2013. Lifeguards are on duty 7 days a week during the tourist season. The Town of Carolina Beach respectfully requests TDA funds in the amount of $16,990.00 for expenses incurred for the Boardwalk Makeover (donation) for the period of May – July 2013. The Boardwalk Makeover Group provides family entertainment for all ages. The Town of Carolina Beach respectfully requests TDA funds in the amount of $5,548.20 (May 2013) for events including Cameron Art Museum and Arts Council (pottery, printmakers, cooking demonstrations, performing arts, etc.) Total funds in the amount of $279,235.54 are available and this amount is being requested for reimbursement upon the TDA Board’s approval. After discussing the above requests, it was decided by the Board to table the Boardwalk Makeover until more information can be made available and it will be placed on the January, 2014 agenda. [Motion made by Frank Jones, seconded by Anne Bodsky to approve funding in the amount of $256,697.34 for Lifeguard Salaries and $5,548.20 for events such as the Cameron Art Museum and Arts Council. The vote was 3 unanimous. The request for the Boardwalk Makeover tabled until January’s TDA Board meeting.] ITEM #7 – PRESIDENT’S COMMENTS – KIM HUFHAM  Chairman Carl Marshburn was presented with the NCTIA Charles Parker Award for Tourism Excellence of an Individual at the 2013 Tourism Leadership Conference.  Kim has been re-appointed to the NC Aquarium at Fort Fisher Advisory Committee.  The 2014 Visitors Guide met the sales goals in ads, etc.  Will be doing the TDA Presentation to City Council on Wednesday, November 6.  Will be participating on the Economic Development Planning Initiative that is being formulated for New Hanover County.  Doing presentation at the November Business Leaders’ Summit – Tourism and Visitors Profile Study.  The Quarterly TDA report was e-mailed to Board on Friday.  2014 Slate of Officers will be presented at the January 29, 2014 TDA Board meeting.  NC Commerce – NCTFSD restructure – moving forward with public/private partnership. Waiting for announcements of new director of tourism and actual structure. Discussion followed on how business has been. Frank Jones commented on what a good job sports marketing is doing. Really making a difference in all seasons. While this is a great way of adding tourism, Carl Marshburn (attractions) says this is really great for hotels and some restaurants, but as far as attractions are concerned, this is not a good avenue for them. Need other marketing efforts to attract business for the attractions, especially downtown area on week days. Says he is seeing more seniors frequenting downtown and has inquired what is bringing them to the area. It appears a lot are seeking to relocate here. Carl says this is a good market to pursue. We really need to continue to promote the shoulder season. Other discussion on the downtown area, the sports events (what effect they are having on churches, etc.); and how the marathons and triathlons can be better timed, etc., or churches and businesses perhaps do different scheduling on the few times it would be needed. ITEM #8 – OLD BUSINESS/NEW BUSINESS Mayor Cignotti discussed finding other means to help with beach renourishment. He has met with the mayors of Carolina and Kure Beaches and took his discussions 4 nd back to his Board asking for flexibility in only the 2 3% ROT. Does not feel anyone wants to add another penny to rooms tax. The way it will be approached is for each beach to take it before their board. In January, after the new boards are in place, discussion will be to see if this is what the towns want to pursue. Once a decision is made, it will be brought before the TDA Board to ask for support prior to it being taken to the State. It was again reiterated flexibility of the second 3% only would be involved in finding additional beach renourishment funding. Lisa said several e-mails are going around stating that not everyone in the “rent by owner” segment of rentals not reporting their rooms occupancy tax figures. Lisa indicated she and Kim will be meeting with someone to talk through possible new ideas to solve some of this issue. The County already has procedures to try and capture or discover the “rent by owners” that may not be paying their taxes as required. Lisa also mentioned they are trying to come up with another audit program that would be workable. ITEM #9 – CHAIRMAN’S COMMENTS – CARL MARSHBURN Chairman Carl Marshburn presented a plaque to an outgoing TDA Board member Mayor Cignotti for his many years of service. Adjourn at 6:35 p.m. Next Meeting Date: Wednesday, January 29, 2014 ______________________________ __________________________ Kim Hufham, President/CEO Jeanette Foster – Administrative Assistant/Acting Secretary Minutes located in TDA Board Minutes Book XI 5