TDA Meeting May 25 2016
NEW HANOVER COUNTY TOURISM DEVELOPMENT AUTHORITY
BOARD OF DIRECTORS
May 25, 2016
PRESENT: Jonathan Barfield, NHC Commissioner
Bill Blair, Mayor – Wrightsville Beach
Kim Hufham, President/CEO – NHC TDA
Frank Jones, Hotel – (150-) Wilmington
Nicolas Montoya, Hotel – (150+) Wrightsville Beach
Chuck Pennington – County Bed and Breakfast
Angela Rhodes – County Restaurants
Emilie Swearingen, Mayor – Town of Kure Beach
Bill Saffo, Mayor – City of Wilmington
Lisa Wurtzbacher – Authority Finance Officer
EXCUSED: Carl Marshburn, LeAnn Pierce, Anne Brodsky, Mayor Dan
Wilcox
STAFF: Jeanette Foster, Administrative Services Manager/Recording
Secretary
Shawn Braden, Executive VP of Marketing
Linda Brothers, Financial Analyst, New Hanover County
John Sneed, VP of Sales and Services
Connie Nelson, Communications/PR Director
Chairman Frank Jones called the meeting of the New Hanover County Tourism
Development Authority Board of Directors to order at 5:35 p.m. at the New
Hanover County Government Complex in the Lucy B. Harrell Conference Room.
ITEM #1 – EXCUSED
Carl Marshburn, LeAnn Pierce, Anne Brodsky, Mayor Dan Wilcox
ITEM #2 – APPROVAL OF BOARD MINUTES – MARCH 30, 2016
\[Motion made by Chuck Pennington, seconded by Mayor Bill Blair and
unanimously accepted to approve the March 30, 2016 Board minutes as
read.\]
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ITEM #3 – FINANCIALS/ROT REPORT – LISA WURTZBACHER
Lisa Wurtzbacher, Authority Finance Officer, presented the TDA Financial Reports
for July 1, 2015 – April 30, 2016.
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July, 2015 – April 30, 2016 revenues of $1,278,917 for first 3%; and 2 3% of
$1,680,917.
Total Expenses – July, 2015 – April, 2016 - $1,450.892 or 80% of budget spent for
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first 3%; 2 3% expenditures – 60% spent.
ROT Collections:
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1 3% for July, 2015 – March, 2016 compared to last Fiscal Year: 7.22% increase;
based on Calendar Year (January, 2016 – March, 2016 ) 23.87% increase
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2 3% Fiscal Year of July, 2015 – March, 2016 and Calendar Year – January, 2016
– March, 2016:
Carolina Beach: 7.7% increase FY; 40.9% increase CY
Kure Beach: 59.5% increase FY; 52.6% CY
Wrightsville Beach: 4.67% increase FY; 25.7% CY
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2 3% collections compared to last Fiscal Year of July, 2015 – March, 2016 and
Calendar Year, 2016 for City of Wilmington, Convention Center and District U:
City of Wilmington: 6.32%; increase FY; 22.0% increase CY
Convention Center: 9.05% increase FY; 12.5% increase CY
District U: increase of 7.24% FY; 51.4% increase CY
ROT Audit Update:
Discussion and update:
Lisa advised getting closer to getting complete list of all short term rentals.
Board wants the additional information on those not paying taxes in the past.
Anyone finding additional information on individual properties who are not
reporting/paying taxes, report to the New Hanover County Tax office.
Taxes would be broken out, plus there would be a penalty for lack of
reporting.
An audit program was done before in 2010.
County has been talking with a company reference a software program
which could determine properties not paying taxes on short term rentals.
Cost is around $53,000.00.
Each municipality discussed ideas and those who have been doing own
research to find people staying and not paying taxes.
Airb&b eventually going to have to give reports on ROT.
Lisa will see what more needs to be reported on the ROT audit update per
this discussion. She will update at the August TDA meeting.
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\[Motion made by Chuck Penningtgon, seconded by Commissioner Jonathan
Barfield and unanimously accepted to approve the financials/rot report as
presented by Lisa Wurtzbacher.\]
ITEM #4 – TOURISM RELATED EXPENDITURE REQUESTS – KIM HUFHAM
President/CEO Kim Hufham advised we had received funding requests from the
Town of Kure Beach for consideration at our May 25, 2016 TDA Board Meeting.
The Town of Kure Beach respectfully requests TDA funds in the amount of
$3,300.00 for the 2015 Kure Beach Fantasy Christmas Show. The show,
coordinated by the Kure Beach Volunteer Fire Department consisted of three
performances on the evenings of December 11 to 13, 2015. This annual event
provides family entertainment for tourists visiting Kure Beach. The show includes
singing, dancing and holiday-related stories. (2008).
The Town of Kure Beach respectfully requests TDA funds in the amount of
$8,500.00 for the Pleasure Island Chamber of Commerce Free Summer Concerts
held during the summer of 2015 (FY 2015/16). The six free summer concerts, held
at the Fort Fisher Military Recreation Area, attract tourists to Kure Beach by
providing an enjoyable and affordable venue. (2006).
The Town of Kure Beach respectfully requests funding for expenditures that were
incurred for maintenance and improvements to the Ocean Front Park pavilion for
the upcoming 2016 tourist season. This has become a favorite destination for tourist
visiting Kure Beach. It is the location for many tourist-related activities including
Boogie in the Park concert series, weekly markets, programs for children and
educational programs. The location of the pavilion (which can also be used for
private events), in proximity to the ocean is part of the draw, but also leads to a
variety of maintenance issues. This expenditure totals $18,362.24 and is for
pressure washing, painting and electrical repairs.
The total requested amount of TDA funds is $30,162.24. Funds are available.
\[Motion made by Mayor Bill Blair, seconded by Nicholas Montoya and
unanimously accepted to approve Kure Beach’s expenditure requests in
the amount of $30,162.24.)
ITEM # 5 - BUDGET REVIEW – FISCAL YEAR 2016-2017 - KIM HUFHAM
President/CEO Kim Hufham presented an Executive Summary for the FY 2016-
2017 budget. She stated it had been reviewed by the Executive Committee and is
being presented to the full Board for approval. She provided points to summarize
comparisons from the prior year:
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Total budget being presented is $5,314,755 as compared to FY 2015-2016’s
budget of $4,333,888. New fiscal year represents a 22.63% increase over
prior year.
Revenues are based on FY 2015-2016’s actual collections as well as historical
revenue growth. First 9 months of current budget is running a 7.22%
increase. Revenues have shown steady growth over record setting 4 years
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prior. We are currently on target to set a 5 consecutive benchmark year in
room occupancy collection.
First 3% budget shows a 14% increase in expenditures.
First 3% budget continues to focus on marketing and promotion
representing 77% of the budget. Marketing and advertising programs
continue to be based on strategic direction recommendations working with
our agency as well as visitor research available through VISITNC.
Areas of Note:
Salaries and Benefits include a merit pool of approximately 1.5%; 9%
average increase in insurance and benefits; due to Federal OT ruling,
overtime pool called for; will have 2 paid interns (one each semester).
Marketing and Promotions: Contracted Services – E-specials program;
exact target for new website; Simpleview implementation.
Advertising to consist of paid search; paid social; network display; native
content; publisher direct display/trip advisor & WRAL.com; online pre-
roll; VisitNC; direct response; billboards; print advertising; paid
group/meetings plan; print in Reunions Magazine and small marketing
meetings; arrivalist/research.
Education will have 2 staff members for STS Marketing College, plus
staff development opportunities.
Promotions opportunities to include Wells Fargo Championship
opportunities; updated website; Canadian press mission; PR content
services.
In the trade show category, RCMA has been moved to the CC budget.
Capital Expenditures: Scheduled replacement of 5 pcs and monitors,
replacement of 2 IPads, Cisco phone system replacement, new staff
vehicle; $1500.00 contingency.
District U to include sports advertising and creative; leisure advertising
which will include the 2017 Wells Fargo Championship Program. Sports
marketing will have the addition of 2 new shows (Connect Sports and
USSSA Annual Meeting.)
Went over Convention Center Marketing and the three beaches
marketing budget totals.
Discussion was held on the increase in revenue projections and the return on
investment (ROI) seen in increased marketing. These numbers will be
presented along with the marketing plan at the August TDA meeting.
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Formal budget adoption meeting to be held on June 8, 2016.
ITEM #6 – PRESIDENT’S COMMENTS – KIM HUFHAM
President/CEO Kim Hufham commented on several items:
American Way article (American Airlines) on Hollywood East has the
potential to be seen by 16 million passengers.
National Tourism Week: Had a successful Travel Rally Breakfast (75 in
attendance) – Had panel discussion during the breakfast on legislative issues
and working with our legislators; had Legislative Day in Raleigh yesterday.
Met with Representative Ted Davis.
Attended the Chamber’s elected officials appreciation BBQ.
Hosted the SATW post-fam tour.
French Tour Operators FAM – VISITNC was quite a success here. Many
comments from them on having been here and what a wonderful area this is.
In the Marketing Segment: Budgets to MAC committees to be presented in
May with budgets to Town Boards being presented in June.
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Presentation given to City Council on April 5 which consisted of
Convention Center Marketing update. Was well received and Council
complimentary of work being done by the CVB and WCC.
General Managers’ Roundtable well received. Good attendance. Will
continue to hold these quarterly to have better communication with our
hotels and innkeepers and present programs beneficial to all.
Concerning HB2, have received 20-25 emails to date concerning it. One
major cancellation thus far (AIA.) Doing information gathering and
continuing dialogue. Per VISITNC, NC statistics are showing $31 million in
negative media coverage the first month and 38 billion impressions.
ITEM #7 –OLD BUSINESS/NEW BUSINESS
N/A
ITEM #8 – CHAIRMAN’S COMMENTS – FRANK JONES
Chairman Frank Jones again wanted to point out that the General Managers’
Roundtable was a success. Also wanted to advise that Carolina Beach’s Boardwalk
came out number 4 which was very good for our destination as a whole.
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The next General Manager’s Roundtable will be held on July 21 at the Courtyard
by Marriott downtown.
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There being no further business to come before the TDA Board of Directors, the
Meeting was adjourned at 7:10 p.m.
Next Meeting Date: Budget Adoption Meeting – Wednesday, June 8, 2016 at 5 p.m.
______________________________ __________________________
Kim Hufham, President/CEO Angela Rhodes, Secretary
Minutes located in TDA Board Minutes Book XII
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