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Home My WebLink AboutTDA Board Meeting May 28 2014 NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY BOARD OF DIRECTORS May 28, 2014 PRESENT: Commissioner Jonathan Barfield, NHC Commissioners Bill Blair, Mayor – Town of Wrightsville Beach Kim Hufham, President/CEO – NHC TDA Neal Johnson – County Vacation Rental Property Frank Jones, (Hotels -150-) – Wilmington Michael Keeler, (Hotel – 150+) - Wilmington Dean Lambeth, Mayor – Town of Kure Beach Connie Majure-Rhett – Wilmington Chamber of Commerce Carl Marshburn – County Attraction Nicolas Montoya, (Hotels -150 rooms+) – Wrightsville Beach LeAnn Pierce, Hotel – Carolina Beach Bill Saffo, Mayor – City of Wilmington Dan Wilcox, Mayor – Town of Carolina Beach Lisa Wurtzbacher, New Hanover County Finance Officer EXCUSED: Chuck Pennington, Anne Brodsky, Angela Rhodes STAFF: Jeanette Foster/Administrative Services Manager, Recording Secretary Shawn Braden, Executive Vice-President of Marketing Connie Nelson, PR/Communications Director Linda Brothers, NHC Financial Analyst GUESTS: Miriah Hamrick, Lumina News William Baggett, Blockade Runner Resort Hotel Chairman Carl Marshburn called the meeting of the New Hanover County Tourism Development Authority Board to order at 5:30 p.m. in the Nighthawk Room at the Blockade Runner Resort Hotel. ITEM #1 – EXCUSED – Chuck Pennington, Anne Brodsky, Angela Rhodes ITEM #2 – MINUTES APPROVAL – MARCH 26, 2014 [Motion made by Frank Jones, seconded by Michael Keeler and unanimously accepted to approve the March 26, 2014 TDA Board minutes as read.] 1 ITEM #3 – FINANCIALS/ROT REPORT – LISA WURTZBACHER New Hanover County Finance Officer Lisa Wurtzbacher reported on the first 10 months of expenditures for the first 3%. Budget is 1.709 million and as of now, $1,367,000 or 80% has been spent. nd 2 3% expenditures have a budget of 2.5 million. As of now, $1,900, 000 has been spent or 75%. This amount includes Carolina, Kure and Wrightsville Beaches. Convention Center - $316,419 budgeted with $251,000 spent. Overall, 77% of expenditure budget has been spent. ROT Comparisons ( FY; July 1, 2013 – March 31, 2014; Calendar Year - January 1 – March 31, 2014): st 1 3% Fiscal Year compared to last FY – 4.04% increase; calendar year –0.57% increase. nd 2 3%: Carolina Beach – 5.51% increase FY to date; calendar year – (-) 2.50% decrease. Kure Beach – 8.84% increase FY to date; calendar year – 15.66% increase. Wrightsville Beach – 3.56% increase FY to date; calendar year - (-) 5.95% decrease. City of Wilmington – 2.51% increase FY to date; calendar year – 3.58% increase. Convention Center – 3.66% increase FY to date; calendar year – (-) 3.43% decrease. [Motion made by Michael Keeler, seconded by Frank Jones to accept the financial report as presented .] Had some discussion on reasons for January, February, March 2014 being down. Weather seemed to be the main reason; also Easter fell in April this year as opposed to being in March last year. President/CEO Kim Hufham presented Budget Amendment – BA#2014-002 for approval. The Amendment is to reallocate funds within the Marketing Department in the amount $38,500 for additional marketing expenses for the D3000 conversion and Spread the Wilm Marketing campaign. To also allow for a new replacement server and exchange server. [Motion made by Mayor Dan Wilcox, seconded by Frank Jones to approve the Amendment as presented. Motion was passed by a vote of 11 to 1. (Nay by Mayor Dean Lambeth.)] 2 ITEM #4 – BUDGET REVIEW – FY 2014-2015 – KIM HUFHAM President/CEO Kim Hufham presented an Executive Summary for FY 2014-2015 Budget. She advised the budget to be presented had been reviewed by the TDA Executive Committee and upon their recommendation is being presented to the full Board for their approval. The following points were summarized for comparisons from the prior year budget.:  Total budget to be presented is $4,014,949 compared to the previous year (2013-2014) budget of $3,931,394. The new FY budget (2014-2015) represents a 2.13% increase over the prior year.  Revenues to be based on 2013-2014 actual collections. First 9 months of current budget is running a 4.04% increase as compared to a 6.71% increase same time last fiscal year. Revenues have shown steady growth over the previous record setting 2 years and industry indicators continue to remain strong for the upcoming summer season. Both ADR and occupancy are showing positive growth as well in 2014.  President Hufham indicated the first 3% budget shows 2.44% increase in expenditures.  First 3% budget continuing to focus on marketing and promotion representing 73% of the budget. Marketing and advertising programs continue to be based on the strategic direction recommendations working wit our agency as well as visitor research available through the NC Tourism, Film and Sports Development department. Areas of Note:  Salaries and Benefits – 1.5% merit increase has been included.  Marketing and Promotions Contracted Services o Increase in parking fees  Upgrade to CRM/database management system to Simpleview  Brochures and Publications o Visitor Guide will again be offset by ad sales. Guide Map will  be printed this fiscal year Advertising o Continue shift from print to on-line  3 Promotions o Additional Group Sales Activities based on feedback from  partner meeting NC Call Center and I-95 Welcome Center visits  Photography and Video o Production of additional stunt videos and new photography  Postage o Reduction in line item due to online version and mobile  applications Capital Expenditures – No major expenditures anticipated. $1,000 o contingency budgeted. Kim discussed the Projected ROT Revenue: st 1 3% ROT Collections (based on 2.5% increase) $1,614,523 Administrative Revenue 137,038 st Total Revenues for 1 3% ROT $1,751,561 Convention Center Marketing $ 306,647 nd 2 3% ROT Collections: Carolina Beach (Net) $ 685.041 Wrightsville Beach (Net) $ 967,418 Kure Beach (Net) $ 304,282 nd Total Revenues – 2 3% ROT $1,956,741 Total Revenues for 2014-2015 $4,014,949 Kim went over each department’s budget expense and what changes were made. Administrative had a total administrative expense increase for the new Fiscal Year of 3%; Visitor Inquiry Fulfillment – 1% increase; Marketing and Promotions – nd 2.51% increase. In addition, discussed the 3 beaches (2 3%) promotions and activities as well as the Convention Center Marketing expenses. [Motion made by Michael Keeler, seconded by Dan Wilcox and unanimously accepted to approve the 2014-2015 budget as presented.] ITEM #5 – PRESIDENT’S COMMENTS – KIM HUFHAM President/CEO Kim Hufham noted she had been in Raleigh this morning for the NCTIA Legislative Day for Tourism. Reception this evening for Legislators being attended by Mikie Wall and Muriel Pearson. During National Tourism Week, proclamation presented to the New Hanover County Commissioners; hosted a National Tourism Week breakfast for over 75 4 attendees and during the breakfast, launched a new tourism initiative targeted to family and friends on “SpreadtheWilm.” Ribbons and posters distributed to industry partners. All of our Visitor Information Centers have banners, ribbons, etc. as well as gifts for our visitors during the week. In June will be hosting tour operator/media FAM in conjunction with the US Open being held in Pinehurst. Will be hosting the NC Sports quarterly meeting. Work to begin on the FY 2014-2015 Marketing Plan for presentation at our August 27, 2014 DA Board meeting. Work being completed on year-end closeout for June 30, 2014. Have been meeting with the Beach Mayors, City of Wilmington and New Hanover County to identify potential long-term sustainable funding options for beach renourishment. Mayor Dan Wilcox gave a review of what discussions had taken place on ROT increases, possible F&B tax, sales tax, etc. There are no conclusions at this time. Lisa indicated the reports they had received on F&B tax were inconclusive in what they represented. Dan indicated definitely do not want to put the burden on any one source and the best thing right now is to follow through with ideas the committee presents and determine next steps. ITEM #6– OLD BUSINESS/NEW BUSINESS N/A ITEM #7 – CHAIRMAN’S COMMENTS – CARL MARSHBURN N/A Adjourn at 6:12 p.m. Next Meeting Date: Wednesday, August 27, 2014 ______________________________ __________________________ Kim Hufham, President/CEO Jeanette Foster, Recording Secretary Minutes located in TDA Board Minutes Book XII 5 6