05-26-20091
NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY
BOARD OF DIRECTORS
MAY 26, 2009
PRESENT: John Andrews, County Restaurant
Bill Caster, NHC Commissioners
Scott Cromartie, Wilmington Chamber of Commerce
Chris Green, Hotel - +150 Wilmington
Anne Marie Hartman, Ho tel – 150+ Wrightsville Beach
Kim Hufham, President/CEO – NHC TDA
Frank Jones, Hotel – (-)150 Wilmington
Joel Macon, Mayor – Carolina Beach
Bob McKoy, NH County Vacation Rentals
Donna Moffitt, County Attraction
Mac Montgomery, Mayor – Kure Beach
Ronnie Pernell, Hotel – Kure Beach
Avril Pinder, NHC Authority Finance Officer
Jimmy Pope, Hotel – Carolina Beach
Bill Saffo, Mayor – City of Wilmington
Steve Whalen, Mayor – Wrightsville Beach
EXCUSED: Chuck Pennington, County Bed and Breakfast
STAFF: Jeanette Foster, Administra tive Services Manager/Recording
Secretary
Lee Nettles, Vice-President of Marketing
Mikie Wall, Vice-President Sales and Services
Sheila Boyd, NHC Finance
GUESTS: Mary MacNaughton – Lumina News
Chairman Ronnie Pernell called the meet ing of the New Hanover County Tourism
Development Authority Board to order at 5:30 p.m. at the Hilton Wilmington
Riverside.
ITEM #1 – EXCUSED ABSENCES
Chuck Pennington
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ITEM #2 – MINUTES APPROVAL – MARCH 24, 2009
[Motion made by Mayor Steve Whalen, seconded by Frank Jones and
unanimously carried that the minut es of March 24, 2009 be approved as
read.]
ITEM #3 – FINANCIALS AND ROT REPO RT – AVRIL PINDER
Avril Pinder presented current financials no ting that as of March 31, 2009 revenues
are in at 62% collected and should be in at 75% collected of total expected for FY
2008-2009.
Avril asked that the Board review the Ne w Hanover County Tourism Development
Authority Budget Amendment – BA#09-003 and adopt as outlined to reduce the
amounts of projected revenues and expect ed expenditures during the remainder of
FY 2008-2009. Will be estimating a re duction in revenues of $200,000; need
appropriated fund balance of $88,396. In a ddition, Kim will be cutting expenditures
by another $114,496.
Avril asked for a motion from the Board to appropriate $88,396 in fund balance,
and cut Administration expenditures by $15,412, Marketing and Promotion
expenditures by $98,173 and Visitor Information Center by $911.00.
[Motion made by Scott Cromartie, seconded by Bill Caster
to adopt the Budget Amendment BA#09-003 as presented in appropriating
another $88,306 in fund balance, and cut expenditures in Administration,
Marketing and Promotion and Visitor Information Center by a total of
$114,496.]
Following further discussion on fund balance and explanation of where cuts are
being made in expenditures, Chairman Pern ell asked for a show of hands to adopt
the motion on Budget Amendment BA#09-003. Vote was unanimous.
ITEM #4– BUDGET APPROVAL FOR FY 2009-2010 – KIM HUFHAM
President/CEO Kim Hufham presented the TDA Board with the 2009-2010 budget
in detail for the Board’s approval following rev iew of same. It was noted that it had
been approved to present to the full Board by the Executive Committee’s May 18,
2009 meeting.
President Hufham advised that the total budget for FY 2009-2010 (1 st and 2 nd 3%
funds) is $3,410,629 compared to the p revious year 2008-2009 budget of $3,804,259.
The new fiscal year budget represents a 10.34% decrease over the prior year.
Revenues will be monitored closely and depe ndent on trend, budget will be adjusted
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as necessary. If revenues should rebound and show an increase, programs that have
been cut will be added to the budget as monies allow. Following the 2008-2009 audit
and fund balance is determination, a budget amendment may be necessary to adjust
revenues as well.
Kim advised that revenues are based on current adjusted year and show no
increase. The first 9 months of current budget is running a 7.39% decrease as
compared to a 6.4% increase sa me time last fiscal year.
It was noted that the first 3% budget shows no increase in revenues versus a 6%
decrease in expenditures.
The first 3% budget continues to focus on marketing and promotion representing
75% of the budget. No advertising programs h ave been cut. Salaries and Benefits –
No increase over previous year; Visitor Center hours are being cut by $16,000. In
the Office Furniture and Equipment are a, the only request is our scheduled
replacement of 5 computers and 3 replacement printers.
The Budget was then broken down into three categories consisting of
Administrative, Visitor Inqui ry Fulfillment and Marketin g/Promotions. Expenses
were presented in a line-item format, cove ring the purpose and any changes from
the previous budget.
Kim noted that under revenues, $1.5 million for the first 3% ROT collections is
being projected along with $113,570 in admi nistrative revenue for a total of $1.6
million. Fund balance under the first 3% is being projected at $56,262. Total
revenue is $1,660,756.
President Hufham also advised conventi on center marketing will be a total of
$260,000.
Concerning the 2 nd 3% ROT collections, we are asking for a total of $1,489,873. In
the three beach areas, this amounts to approximately a 15% reduction.
Expense Categories Broken Down:
Administrative costs represent 18% of total budget with a total decrease of
2.85% over previous Fiscal Year 2008/2009. Salaries showing a slight
decrease, slight increase in insurance/op erating and a slight increase in rent.
Visitor Inquiry Fulfillment budget represents 7% of the total budget with a
15.63% decrease over previous Fiscal Year which includes eliminating
education this year as well as a reduction in VIC hours.
Marketing and Promotion represents 75% of the total budget with a 6.01%
decrease. Equipment Repair and Mainte nance cut down considerably; Dues
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and Memberships had one membership cu t (SGMP) which will be shifted to
the Convention Center side; Brochures and Publications down slightly as
some publications are not done on an annual basis. Photography and Video
also cut considerably as our image libr ary is now built up to a point this
could be done. In the Advertising sect ion, the only thing done was to shift
some categories and will be adding Face Book and Twitter. A few trade
shows have been cut. Will not be do ing Travel South or PRSA. There will
be some areas where we will be able to share with the Convention Center’s
side in its marketing efforts. Und er Promotions, tried to tweak this to
minimize decreases. Travel was cut back as far as we could go. Education
and Training was cut by $4,000; Telephone was slightly cut; Postage to
remain the same and in Office Furnitu re and Equipment, only replacements
of 5 PC’s and 3 printers.
Salaries and Benefits – no changes.
Income and expense budgets reviewed for Carolina, Kure and Wrightsville Beaches
relative to the 2 nd 3%. Promotions and activities decreases outlined with individual
promotional activities to be det ermined by the marketing plans.
Convention Center marketing discussed. President/CEO Hufham is presently
working with the City on the numbers fo r the budget figures as projected. The
Convention Center is scheduled to open in August/September 2010.
[Motion made by Mayor Mac Mont gomery, seconded by Scott Cromartie
and unanimously approved to accept the 2009-2010 budget as presented.]
Will be advertising the budget for the Public Hearing which will be held on June 23,
2009 at 5 p.m. to formally adopt the budget. Meeting will be held at the CVB offices
and must have a quorum present.
ITEM #5– PRESIDENT’S COMMENTS – KIM HUFHAM
As of March, we are down a little ov er 7% year to date. The Smith Travel
Report which shows the chain properties indicates April does not look good.
Brunswick County was down over 30% fo r the month of March. Attractions
for the month of April (the ones we track) except for one was up. The
Aquarium was up 26%. That is showing a trend that we are seeing some
positive numbers. Overall, the attrac tions were up 28% over last year’s
April; however year to date about 6.77% down.
Inquiries are staying up about 6.9% year to date.
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Survey was sent out regarding Memorial Day. Waiting to hear back from
accommodations and rental properties on how they fared. Want to see how
Memorial Day was as a whole.
Tourism has been kind of a “hot spot” for television. Have been on TV
several times this month talking abou t the tourism outlook, the Save Our
Summers, etc. This has been great. Greater Wilmington Business has also
been giving good coverage.
On the Save Our Summers outlook, we a re still in a battle with that. John
has given us a copy of the letter he sent; the County Commissioners have
adopted a resolution on keeping the dates the same. Lobbyist Connie Wilson
sent an e-mail this morning. She indi cated it passed the House to have the
flexibility to move the date back to early August so what the group has
decided to do is try to target a few of the key senators. The Senators which
have been identified are Senators Stev ens, Rand, Basnight, Hoyle, R.C. Soles
and Boseman. If the Board gets a chan ce, please contact these Senators to
support keeping the dates that are presently in place.
Hosted the North Carolina Motorcoach Association site visit for their 2011
conference. Looking very positive th at we will have that group here.
Kim did a presentation to City Council in April on our Convention Center
marketing efforts to date. Feels the Council was very positive on what we
have accomplished thus far.
Lot of interest from travel writers visiting the area.
ITEM #6 – OLD BUSINESS/NEW BUSINESS
Commissioner Bill Caster was impressed with the work that the Wilmington/Cape
Fear Coast has done with SMG. Feels that is very important in making everything
work.
Discussion on May looking good for the area. The soccer teams, among other
things, generated a lot of revenue for accommodations and other areas as well.
Commissioner Caster discussed the Iron Man tournament again and how well the
numbers are looking. Mayor Saffo said the Olsen facilities will be good for softball,
etc. Sports Marketing will be one of the th ings we will be looking at to generate
more business for New Hanover County as fa cilities become available to do this.
Scott Cromartie mentioned the Citizens Advi sory Committee which he sits on. This
Committee is part of the Transportation Advisory Committee of our area and is
made up of all of the municipalities in th e metropolitan area. Looking at the 2035
transportation needs of our area which ties right in with tourism. Scott says they
are in the information gathering stage at th is time and they have a web site called
capefearcommutes.org. A 12-13 question survey is on the site. Would encourage
everyone to take the survey. It will be up until the end of the month.
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Frank Jones wanted to know how often th e apartment complexes are audited as far
as rentals. If anyone knows of someone who is renting for less than the 90 days
which is exempt from the ROT, let Lisa James with the NH County tax department
know about them as this is definitely in competition with other accommodations.
Also, the rip current news which is broadca st in numerous locations really has an
effect on tourism. Ronni e Pernell suggested advertisin g the fact that all of our
beaches are highly guarded. A lot of mone y is spent on lifeguards and it should be
well publicized. Frank advised that perhaps we should advise places like Raleigh of
these facts. Mayor Montgomery said he wa s on the beach most of the weekend and
talked with people who said they come to Kure Beach because they know they can
come to the beach and be safe due to the lifeguard programs.
Mayor Montgomery said the legislators have appointed a committee which he is on
to study the probability to make a recomme ndation on off-shore drilling for oil on
the North Carolina Coast. One of the factors being looked at is the effect on tourism
on the coast. Recreational fishing is on e of the factors being discussed. Final
reports on this will not be available until April of next year; however a committee
will be here in June if anyone is interested in attending.
ITEM #7 – CHAIRMAN’S CO MMENTS – RONNIE PERNELL
Ronnie asked Donna if she had any idea where her increased business is coming
from….tour buses or more walk-ins, etc. Donna indicated she really could not pin
point any specific thing until she reviews the figures more closely. Tour buses
coming in regularly, but also a lot of pe ople coming in from two hours away.
Ronnie thanked Chris Green for his hospit ality in hosting the Board for this
meeting. Commented on the be autiful facilities of the H ilton Wilmington Riverside.
There being no further business, meeting adjourned at 6:30 p.m.
______________________________ __________________________
Kim Hufham, President/CEO Bill Caster, Secretary
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