TDA 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.]
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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.
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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.)]
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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
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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
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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
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