05-26-2010
NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY
BOARD OF DIRECTORS
MAY 26, 2010
John Andrews, County Restaurant
PRESENT:
David Cignotti, Mayor – Wrightsville Beach
Scott Cromartie – Greater Wilmington Chamber of Commerce
Anne Marie Hartman, Hotel – Wrightsville Beach
Kim Hufham, President/CEO – NHC TDA
Frank Jones, Hotel – (-)150 Wilmington
Dean Lambeth, Mayor – Kure Beach
Bob McKoy, NH County Vacation Rentals
Chuck Pennington, County Bed and Breakfast
Ronnie Pernell, Hotel – Kure Beach
Avril Pinder, NHC Authority Finance Officer
Bill Saffo, Mayor – City of Wilmington
EXCUSED: Commissioner Bill Caster, Mike Keeler
ABSENT: Joel Macon, Mayor – Carolina Beach
STAFF: Jeanette Foster, Administrative Services Manager/Recording
Secretary
Shawn Braden, Executive Vice-President of Marketing
Mikie Wall, Vice-President Sales and Services
Connie Nelson, PR/Communications Director
Sheila Boyd, NHC Finance
GUESTS: Patricia Matson, Wilmington Star-News
Josh Spilker, Greater Wilmington Business Journal
Chairman Bob McKoy called the meeting of the New Hanover County Tourism
Development Authority Board to order at 5:35 p.m. at the Holiday Inn Resort,
Wrightsville Beach.
ITEM #1 – EXCUSED ABSENCES
NHC Commissioner Bill Caster, Mike Keeler
1
ITEM #2 – MINUTES APPROVAL – MARCH 24, 2010
[Motion made by Frank Jones, seconded by Ronnie Pernell and unanimously
carried with 2 correction (page 4 under question asked to Steve Bridges
concerning “Rumors”. It should read 4-5 months instead of years; and that
Scott Cromartie was excused -listed as excused and present) that the minutes
of March 24, 2010 be approved as read.]
ITEM #3 – FINANCIALS AND ROT REPORT – AVRIL PINDER
Avril Pinder, New Hanover County Finance, advised that we are down less than 5 ½
percent for the nine month period (July-March.) In January we were down 19%; in
February – 9.69%; in March we had a positive of 1.81%. Expecting the trend
continue on an upward swing. Carolina Beach moving forward; Kure Beach is
positive. Definitely seeing some comeback.
Pertaining to the income statement, for the year we have actually spent 59% so we
are tracking where we should be (not overspent in budget, but are under in
revenues. We will need additional fund balance to balance the remainder of this
fiscal year. We will bring the exact amount to the June Board meeting.
[Motion made by Scott Cromartie, seconded by Chuck Pennington and
unanimously carried to approve the Financial/ROT report as presented.]
ITEM #4 – FUNDING REQUESTS – WRIGHTSVILLE BEACH – KIM HUFHAM
The Town of Carolina Beach respectfully request TDA funds in the amount of
$237,819.04 for reimbursements for expenses incurred 7/2/09 – January, 2010:
th
lifeguards and benefits ($213,392.57); July 4 weekend fireworks at the
Boardwalk/Island of Lights Parade ($9,663.04); boardwalk makeover events and
entertainment $14,763.43.)
Funds are available and this amount is being requested for reimbursement.
[Motion made by Scott Cromartie, seconded by Mayor Dean Lambeth and
unanimously carried to approve the expenditure requests of $237,819.04 for
Carolina Beach during July 2009 through January 2010.]
The Town of Kure Beach respectfully requests funding in the amount of $29,900.32
for the completed construction on their Boardwalk along Atlantic Avenue, by the
ocean from L to N Avenues to include a bike path, walking path and benches. The
Town’s cash contribution is $73,432.32 and is one of the biggest attractions for
2
tourism in Kure Beach. Approval of this request allows the town to offer more of
this public access.
Funds are available and this amount is being requested for reimbursement.
Mayor Lambeth of Kure Beach elaborated on the popularity of this new boardwalk.
[Motion made by Mayor Bill Saffo, seconded by Mayor David Cignotti and
unanimously carried to approve this expenditure request of $29,900.32
during the FY period of 2009-2010.]
ITEM #5 – 2010-2011 BUDGET REVIEW – KIM HUFHAM
President/CEO Kim Hufham began the budget presentation noting we have a short
fall in revenues for FY 2009-2010 and will need to use additional fund balance. In
order to begin the budgeting process, will have to estimate the exact amount of fund
balance we will have for the coming year. (Information on this included in Exhibit
Book VII (July 2009-June 2010.) President Hufham discussed expenses and
projections for the remainder of the current Fiscal Year.
Kim advised that the Executive Committee met on May 24 and went through the FY
2010-11 budget line item by line item and same now being presented to the full
Board in detail for the Board’s approval (Copy of budget in Exhibit Book VII (July
2009-June 2010.)
An Executive Summary for FY 2010-2011’s budget offered the following points:
The total budget presented is $3,229,080 compared to previous year 2009-
2010 budget of $3,410,629. The new fiscal year budget represents a 5.32%
decrease over prior fiscal year budget. If revenues should rebound and show
an increase, programs that have been cut will be added to the budget as
monies allow.
Revenues are based on current adjusted year and show a 10.28% decrease
from projected fiscal year 2009/10. First 9 months of current budget is
running a 5.57% decrease as compared to 7.39% decrease same time last
fiscal year. Industry indicators are that the spring and summer are up from
previous year 2009 and continue to be optimistic.
First 3% budget shows a 7% decrease in expenditures.
First 3% budget continuing to focus on marketing and promotion
representing 75% of the budget. Marketing and advertising programs have
been adjusted to reflect those with the greatest ROI for the destination.
3
Salaries and Benefits – No increase over previous year. Current vacant
position of Marketing Assistant will be frozen for fiscal year. SEP
contributions to employees will be reduced from 10% to 5% for current
fiscal year. Travel and Education/Training have been reduced due to
budgetary constraints.
No capital expenditures are budgeted for the new fiscal year. Individual
computers and server replacements scheduled for this fiscal year will be on
an as needed basis.
Estimate of revenues and expenses for the upcoming year for a total of $3,229,080
reviewed.
Expenses:
Administrative – Represents 19% of the total budget and FY 2010-11 shows a
decrease of 1.51%.
Visitor Information Services – Represents 7% of the total budget with a decrease of
0.87%.
Marketing/Promotions – Represents 75% of the total budget with a decrease of
9.09%. Some of the budget differences include SEP (in all three areas); freezing of
the Marketing Assistant’s position; Smith Travel Research not being renewed at the
end of next April; more emphasis being placed on our on-line and internet
advertising where several new programs are being looked at. Redesigning the
website. Putting out RFP’s for the new web development. Reduced equipment
repairs and maintenance, office supplies, brochures and publications.
Under advertising, $275,458 spent on leisure/consumer in 09-10; this year proposing
$153,951; on-line advertising will go from $15,000 to $90,000 as we will be looking at
marketing where we can be more efficient. Looking at doing more E-Blast instead
of ad placements.
Cutting trade shows by 25%. Keeping those we feel are most beneficial such as our
military shows and SATW. Under group sales, keeping AENC, adding TEAMS
which is a big sports meeting. Adding a template to the website to drive sports
groups, etc. to the hotels, etc.
Relative to promotions, website programming and looking over an umbrella
situation where we will be able to share some of the costs such as websites and those
things where we can pull together with the beaches. Websites will be intergrated
with the beaches and the destination as a whole. Website redevelopment and
website solutions (D3000) are 2 big ticket items we will be doing so we can get our
website up to speed.
4
Question asked about the server. A safety net is in place should the server reach a
crisis situation. Would be brought to the Board for approval.
Other areas such as travel and education reduced; telephone increased slightly.
Total marketing and promotions budget is $1,125,790 noting a 9.09% decrease.
Convention Center sales briefly discussed.
Beach communities will be discussed with the Marketing Plan when individual
promotional activities have been determined.
Scott Cromartie asked about the fund balance and if what is on hand will be zeroed
out. 8% must remain on hand. Discussion on what would need to happen if an
emergency situation arose where the 8% was needed. Avril Pinder noted that
should something of this nature occur, these funds would definitely have to be made
available by June 30 (end of fiscal year.)
[Motion made by Mayor Bill Saffo, seconded by Anne Marie Hartman and
unanimously carried to approve the Fiscal Year 2010-2011 budget as
presented.]
ITEM #6 – PRESIDENT’S COMMENTS – KIM HUFHAM
Had Meeting Professionals International in town the last couple of days.
This gave us a great opportunity to showcase our area.
Participated last week with the State’s Legislative Tourism Day (Kim, Mikie,
Muriel) in setting up a booth in the Legislative Building in Raleigh and have
an opportunity to talk with many of the legislators about tourism.
The Seaside Soccer Classic was here this past weekend and from all accounts,
practically filled everything in town; in addition, the NCAA Ladies Golf
Tournament had a great turnout.
On June 2, we will be hosting a reception/meeting type event in conjunction
with PACE Communications who is doing our Visitors Guide. They will be
give the industry a “heads up” on the strategic direction we will be going in.
Now that the budget is behind us, will be placing our efforts on the 2010-11
Marketing Plan.
We have two vacancies on the Board: Donna Moffit with the NC Aquarium
at Ft. Fisher has had to resign due to her company not allowing her to serve
on more than one committee at a time (she had to take a position on another
Board.) Brett Darlington, General Manager of the Courtyard by Marriott at
Carolina Beach has resigned to return to Florida. This leaves us with an
opening on attractions and a hotel at Carolina Beach.
5
ITEM #7 – OLD BUSINESS/NEW BUSINESS
The Mayor of Wrightsville Beach, David Cignotti, mentioned the article which
appeared in the Star-News on Wrightsville Beach’s rescue program. He indicated
how much the TDA funds help to make this program possible and, in turn, brings
tourists to the area.
Wilmington City Mayor Bill Saffo noted how well the convention center is moving
along.
One of the Board members inquired about the city market which has been
mentioned in the local paper. Mayor Saffo indicated this effort is being
spearheaded by a committee of the 2020 Vision. They are looking at the feasibility
of doing this.
Anne Marie Hartman wanted to thank the staff of the CVB for the hit they have
taken in the FY 2010-2011 budget and how much this is appreciated.
ITEM #8 – CHAIRMAN’S COMMENTS – BOB MCKOY
[Motion made to adjourn at 7:00 p.m.]
______________________________ __________________________
Kim Hufham, President/CEO Bob McKoy, Chairman
6