BC 2008 06 16 Regular - Laserfiche WebLink

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June 16, 2008 (Regular Meeting) Page 879 Kelly Sifford, Community Development Manager, presented information related to Contract Amendment No. 12 to allocate more time and funding for the proposed design changes to the Housing Building of the Law Enforcement Center. She reported these changes relate to the efficiency of these items as discovered by their use in the Annex. Vice Chairman Juba MOVED to approve Contract Amendment Number 12 between Cabarrus County and Ware Bonsall Architect s, Inc. for the Law Enforcement Center in the amount of $18,650.00 and authorized the County Manager to execute the appropriate documentation. Commissioner Mynatt seconded the motion. Commissioner Privette asked why these items were not in the initial contract and stated he would not support this amendment. The MOTION carried with Chairman White, Vice Chairman Juba and Commissioners Carruth and Mynatt voting for and Commissioner Privette voting against. (G-10) Cabarrus County Tourism Authority - Approval of Fiscal Year 2008-09 Budget Before DeSales Wagster, Director of the Convention and Visitors Bureau (CVB), presented information related to the $2,679,196 Convention and Visitors Bureau's operations budget for Fiscal Year 2008-2009, she introduced John Mills, CVB Director of Finance and Human Resources. Based on the CVB's budget, she presented three scenarios on reserve fund balance: (1) the County's reserve policy of 15 percent or a recommended reserve of $901,121; (2) a reserve of $668,536 based on three months operating budget as recommended from other CVB's throughout the United States and the Destination Marketing Association International; and (3) the CVB's current amount of reserve totaling $945,670 that was approved by the Tourism Authority on February 28, 2007. She commented on the Bureau's increase in size over the past 18 months and anticipated growth in the near future. She stated the reserve fund should mirror this type of growth and recommended the fund balance remain at its current level. Afterwards, Ms. Wagster responded to a variety of questions from the Board. The following budget line items were addressed: salaries; performance incentives; tourism incentive grants; the Economic Development Corporation; reserved and unreserved funds; etc. Chairman White asked if the reserved fund required action from the Board tonight. Mrs. Wagster responded in the negative. John Day, County Manager, commented on the CVB's transition to a nonprofit which requires them to be financially independent from the County. He stated the need for the Board to adopt a budget amendment allowing the County to transfer funds to the CVB's new bank account for cash flow purposes. He also elaborated on how the County's reserve fund policy and cash flow needs differ from the CVB's in response to comments from Chairman White. There was further discussion with Ms. Wagster on the following issues: CVB cash flow needs; the amount of the CVB's unreserved fund balance; the amount preferred by the accrediting institution's criteria (Destination Marketing Association International); etc. Commissioner Carruth MOVED to approve the budget for the Cabarrus County Tourism Authority for Fiscal Year 2008-2009 and authorize the County Manager and Finance Director to take steps necessary to transfer needed funds to the CVB in order to establish their funding. Commissioner Privette seconded the motion. John Day, County Manager, asked the Board to clarify the motion. He stated the issue regarding the fund balance needs to be addressed specifically, based on statutory requirements. He listed the options available to the Board, including the County keeping the total fund balance or designating a specific amount to be kept in reserve by the CVB. A lengthy discussion followed regarding fund balances, the amount of money in reserve, CVB cash flow needs for July and CVB accounting methods. Upon request of the Board, Pam Dubois, Deputy County Manager, reported the County uses the accrual accounting method and the CVB's fund balance on June 30, 2008 should be approximately $739,000. She asked if the Board approved the Tourism Authority's fund balance appropriation of February 28,