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Home My WebLink AboutTDA Board Meeting October 29 2014 NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY BOARD OF DIRECTORS OCTOBER 29, 2014 PRESENT: Jonathan Barfield, NHC Commissioner Bill Blair, Mayor – Town of Wrightsville Beach Anne E. Brodsky, Motel Owner – Kure Beach Kim Hufham, President/CEO – NHC TDA Neal Johnson, County Vacation Rental Property Frank Jones, Hotel – (150-) Wilmington Mike Keeler, Hotel – 150 (+) Wilmington Carl Marshburn, NHC Attraction Nicolas Montoya, Hotel – (150+) Wrightsville Beach Chuck Pennington, County Bed and Breakfast LeAnn Pierce, Hotel – Carolina Beach Dan Wilcox, Mayor – Town of Carolina Beach Lisa Wurtzbacher, New Hanover County Finance Officer EXCUSED: Mayor Dean Lambeth, Connie Majure-Rhett, Angela Rhodes, Mayor Bill Saffo ABSENT: 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 Karla Thompson, Technology/Systems Manager Shawn Braden, Executive VP of Marketing VISITORS: Kemp Burpeau, New Hanover County Assistant Attorney Layton Bledsoe, New Hanover County David Kellam – MIPG – Figure 8 Island Miriah Hamrick – Lumina News Mary Baggett Martin – Blockade Runner Chairman Carl Marshburn called the meeting of the New Hanover County Tourism Development Authority Board to order at 5:30 p.m. at the New Hanover County Government Complex in the Lucy Harrell meeting room. ITEM #1 – EXCUSED Mayor Deal Lambeth, Connie Majure-Rhett, Angela Rhodes, Mayor Bill Saffo. 1 ITEM #2 – MINUTES APPROVAL – AUGUST 27, 2014 [Motion made by Frank Jones, seconded by Chuck Pennington and unanimously accepted to approve the August 27, 2014 TDA Board minutes as read.] ITEM #3 – AUDIT PRESENTATION -2013-2014 – LISA WURTZBACHER Lisa Wurtzbacher, Authority Finance Officer, advised the audit firm of Martin and Starnes had presented the 2013-2014 audit results to the TDA Executive Committee and asked that she present their findings to the full Board. She stated we had received an unqualified opinion. (See attached visual report). Can also be found in Exhibit Book XI. [Motion made by Anne Brodsky, seconded by Commissioner Jonathan Barfield and unanimously approved to accept the audit presentation for FY 2013-2014 as presented.] ITEM #4 – BUDGET AMENDMENT APPROVAL BA#2015-001 and BA#2015- 002 – LISA WURTZBACHER Lisa Wurtzbacher, New Hanover County Finance Officer presented Budget Amendment – BA#2015-001 for adoption by the New Hanover County Tourism Development Authority Board, amending the annual budget ordinance for the fiscal year ending June 30, 2014. Budget Amendment BA#2015-001 to appropriate FY 2013-2014 fund balance. This amendment is broken down into 3 sections. Section One is to appropriate the available fund balances as outlined in the FY 13-14 Annual Audit from remaining nd funds of the 2 3% ROT for Promotions at Carolina, Kure and Wrightsville Beaches. Amendment amount is $158,442.00. Section Two is to appropriate the available fund balances as outlined in the FY 13- nd 14 Annual Audit from remaining funds of the 2 3% ROT for Activities at Carolina, Kure and Wrightsville Beaches. Amendment amount is $570,958.00. Section Three is to appropriate remaining funding received FY 13-14 from the City of Wilmington for Convention Center Marketing. Amendment amount is $31,238.00. Also presented was Budget Amendment – BA#2015-002 for adoption by the new Hanover County Tourism Development Authority Board amending the annual budget ordinance for the fiscal year ending June 30, 2015. 2 Section One is to appropriate the estimated revenues for District U for FY 14-15 as outlined in House Bill 1059 adopted 7/22/14 by state legislators modifying the New Hanover County Occupancy Tax. New Budget is $100,000.00 Section Two is to appropriate the first year of District U proceeds earned prior to July 1, 2014 as outlined in House Bill 1059 adopted 7/22/14 by state legislators modifying the New Hanover County Tax, the MOU and local guidelines and to appropriate the estimated revenues for FY 14-15. New Budget is $264,400.00. [Motion made by Anne Brodsky, seconded by Chuck Pennington and unanimously approved to accept Budget Amendment BA#2015-001 and BA#2015-002 as adopted by the New Hanover County TDA Board.] Amendments can be found in TDA Budget Ordinances Book. ITEM #5 – FINANCIALS/ROT REPORT – Lisa Wurtzbacher st Lisa Wurtzbacher, Authority Finance Officer, gave report on 1 3% (July 1 – September 30, 2014) expenditures. Have spent $453,450 or 26%. nd 2 3% expenditures - $365,386 spent. Have spent less than 25%. Total of 23% of budgeted expenditures spent overall. Revenues – Only reporting one month of ROT because of lapse in reporting system. Total income looks a little skewed due to District U monies being in there. ROT funds for the first and second 3% reviewed. Both Fiscal and Calendar years increased over last year for the same period of time. Have had consistent increases. This also includes $14,000 over last fiscal year for District U. [Motion made by Frank Jones, seconded by Chuck Pennington and unanimously accepted to approve the Financial Report as presented.] ITEM #6 – DISTRICT U GUIDELINES – Lisa Wurtzbacher Lisa pointed out that the District U Guidelines came together after the TDA Board’s August meeting (copies handed out to Board). Meeting was held with Mayor Wilcox, Mayor Blair, Mayor Lambeth, Mr. Kellum as well as some New Hanover County Management on how the Guidelines would look and get to a point where everyone could be agreeable with it. Lisa said they were able to reach that point. (Copy of guidelines given to TDA Board (see attached sheet.) [Motion made by Anne Brodsky, seconded by Chuck Pennington and unanimously accepted to approve the District U Guidelines as presented.] 3 ITEM #7 – FUNDING REQUEST – CAROLINA BEACH – KIM HUFHAM The Town of Carolina Beach respectfully requests funding in the amount of $78,000 as a donation to the 2013-2014 Chamber of Commerce to support such events as the Beach Music Festival, Chowder Cook Off, Seafood Blues and Jazz Festival, fireworks, etc. Frank Jones has issues with the word “donation” being used to support the events; in the future attach receipts or change the wording. The Town of Carolina Beach respectfully request funds in the amount of $23,982.52 for the Boardwalk Makeover (now known as the Carolina Beach Downtown Initiative for family entertainment during the tourist season (May – June) This includes family nights music and magic shows on Tuesday night and music for Thursday family nights. The total amount of funding requested is $101,982.57 and funds are available. [Motion made by Mike Keeler, seconded by Commissioner Barfield and unanimously approved to accepted the funding requests in the amount of $101,982.57 and to change the word “donation” to identified expenses with receipts.] ITEM #8 – PRESIDENT’S COMMENTS – KIM HUFHAM\ nd  President/CEO Kim Hufham presented the 2 3% memorandum to the nd TDA Board on the 2 3% Allocation of Promotional Funds. Each Board member received a copy of the Memorandum which was presented by Lisa Wurtzbacher, Kemp Burpeau and Kim Hufham. The memorandum states that in a review of the current ROT legislation, it has been discovered that the FY 14/15 holdback of 10% of the marketing funds by two of the beach towns is not in compliance. House Bill 1707 clearly says that “The Authority shall use at least one-half of the funds in each beach town’s account for promoting travel and tourism and shall use the remainder in each beach town account for tourism-related expenditures in that beach town.” By holding back the 10%, only 40% of the net funds are being used for tourism promotion. As a result of this clarification, the 10% of tourism promotion funds that have been held back for FY 14/15 will need to be reallocated for promotional use during this fiscal year budget.  Thanks for Commissioner Barfield, Board member Chuck Pennington and City Mayor Bill Saffo for being in attendance at the press conference to name 4 Wilmington “Best American Riverfront”. The CVB strategy includes doing a downloadable poster, etc., on what a great area we are. Have been in several magazines.  Marketing Updates include: Doing two new ads incorporating Board suggestions from August TDA meeting with inclusion on diversity and mid- town.  Simple View: Up and going; staff now using. Website is next phase. Will present midyear report at January meeting.  Kim spoke to a Chinese Delegation (financial advisors and students) on local tourism and economic impact. ITEM #9 – OLD BUSINESS/NEW BUSINESS Discussion on those who are renting out their properties and not collecting or remitting ROT, and what can be done. Currently there is no on-going process for identifying the homeowners. ITEM #10 – CHAIRMAN’S COMMENTS – CARL MARSHBURN N/A Adjourn at 6:30 p.m. Next Meeting Date: Wednesday, January 28, 2015 ______________________________ __________________________ Kim Hufham, President/CEO Chuck Pennington, Secretary Minutes located in TDA Board Minutes Book XI 5