BC 2008 07 07 Work Session - Laserfiche WebLink

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July 7, 2008 (Work Session) Page 893 New Business item. By the same vote, the Board also scheduled a public hearing for 6:30 p.m. Cabarrus County Convention and Visitors Bureau (CVB) - Continued Discussion of Fund Balance Chairman White reminded the Board that this issue was first presented by Ms. DeSales Wagster of the Convention and Visitors Bureau (CVB) and was tabled at the last meeting. John Mills, CVB Director of Finance and Administration, and Sharon Campbell, CVB Vice President of Sales and Marketing, presented information related to the Cabarrus County Convention and Visitors Bureau Fund Balance. Mr. Mills explained that at the last meeting, the Board approved the transfer of $250,000.00 to the CVB as initial funding. He reported that there is now a need for $125,000.00 of the remaining fund balance to sustain the CVB until August 15, 2008, at which time hotel occupancy taxes will be collected and distributed by the County. Ms. Campbell reported that the additional fund balance of $995,670.00 has been established as a crisis response contingency fund by the Tourism Authority Board of Directors. She also stated that the Tourism Authority is proceeding with an accreditation process through Destination Marketing Association International (DMAI), an industry trade organization. She reviewed a letter received from Ed McWilliams, DMAI consultant, in which he states the establishment of a contingency fund is mandatory, and explained to the Board that though this is currently not a requirement, it may be a requirement at the time the Tourism Authority applies for accreditation. She also responded to a variety of questions from the Board, addressing the following topics: benefits of accreditation by DMAI; other cities in North Carolina with accreditation; and the guidelines and requirements of accreditation. A lengthy discussion followed. Vice Chairman Juba reported that she had spoken to DeSales Wagster with the CVB, and had been informed that the CVB feels additional funds are needed to further operational expenses should a catastrophic event occur. In response to a question by Commissioner Carruth, John Day, County Manager, reported that according to statute, hotel occupancy taxes may be expended at the discretion of the Board of Commissioners at the end of the fiscal year. Mr. Day further reported that he and Ms. Dubois had met with Mr. Mills and Ms. Wagster and discussed several issues regarding the remaining fund balance. He explained that these funds are hotel occupancy taxes levied by the Board of Commissioners, collected by the County, and disbursed to the CVB with spending restrictions. He explained that the $125,000.00 requested for additional cash flow may not be needed due to future disbursements that may be delayed. He detailed a discrepancy within the letter received by Mr. McWilliams of DMAI and expressed concern over said discrepancy. He stated that it may be prudent to establish an agreement with the CVB which states that funds would be made available to meet certain needs should a natural disaster or catastrophic event occur. However, he expressed hesitation with providing tax money to a non-elected body without considerable oversight. Commissioner Carruth MOVED to place the Cabarrus County Convention and Visitors Bureau (CVB) discussion of fund balance on the July 21, 2008 Agenda as a New Business item. Chairman White recommended the Board table this item until a reserve policy is created by the CVB. Commissioner Carruth withdrew his motion. Vice Chairman Juba recommended the CVB Board draft a reserve policy and present it to the Board at a later date. Vice Chairman Juba MOVED to table the Cabarrus County Convention and Visitors Bureau (CVB) - Discussion of Fund Balance untilthe CVB Board creates a reserve policy. Commissioner Carruth seconded the motion. The MOTION unanimously carried.