Recommended
More Related Content
Viewers also liked
Similar to 2015-16 Annual City Council Report PP FY Adjsuted final
Similar to 2015-16 Annual City Council Report PP FY Adjsuted final (20)
2015-16 Annual City Council Report PP FY Adjsuted final
- 1. Annual Report City of Avalon October 4, 2016
- 2. Annual City Report About the Organization Transient Occupancy Tax & the DMO FY 2015-16: The Year in Review Audited Financial Reporting Chart of Accounts RFPs Demographic Profile & Visitor Spending Officers & Directors Visitor Center Group Sales National Travel & Tourism Week (Visit CA) FY 2016-17 Bylaws Officers & Directors Staffing Marketing Review
- 3. About the OrganizationOrganizational Structure DMO & Chamber of Commerce 501(c)(6) nonprofit organization Board of Directors (19) Executive Committee Marketing Committee & others ad hoc Fiscal Year July –June DMAI reporting Staff of 8
- 4. Transient Occupancy Tax and the DMO Transient Occupancy Tax 1988 Business Licenses funded Chamber 1994 Increased investment @22% of TOT TOT from 7% to 9% tax rate, with difference dedicated to Destination Marketing, Business License revenue back to City 2000 Voter Referendum Dedication of 22% of TOT to Destination Marketing via Chamber of Commerce & Visitors Bureau 2004 Voters approved increase in TOT to 12% *Each of these increases were supported through new revenue creation, taking no revenue away from the City of Avalon **78% of TOT Revenue goes to the City’s general fund The authority to levy TOT is granted to the legislative bodies of both cities and counties by California Revenue and Taxation Code 7280. Section 9.8.802 of the Avalon Municipal Code governs TOT collection and permitting of rental units. Section 3-2.102 of the Avalon Municipal Code governs use of TOT funds paid to the Catalina Island Chamber of Commerce & Visitors Bureau.
- 5. Destination Marketing The Year in Review: Highlights Marketing & PR Advertising Co-op program Collateral California Welcome Centers Media Relations Tradeshows Database Events Websites SEO/SEM Social Media Film Permits Cruise Industry Relations Group Sales 2015-16 Catalina Island Chamber of Commerce & Visitors Bureau
- 6. Organization The Year in Review: Highlights Contractors Cat-Tech (IT) Certified (Brochure & Video Distribution) Christy Lins (Accounting) EXL Media (Media Buying) McGinty, Knudtson & Associates, LLP (Audit) Mix Marketing (Print Collateral) Prism (Webcam) Renegade Racing (Triathlon) Searle Creative (Website, SEO, CRM and CMS) Whistler Creative (Graphic Design) Xceptional Music (Concerts & New Years Eve)
- 7. Budget & Finance The Year in Review: Highlights Budget & Finance Audited 2015-16 Financials Success Measures Transient Occupancy Taxes Occupancy Admissions Taxes Wharfage Cruise Passengers Cross Channel Carriers Fireworks 2015-16 Catalina Island Chamber of Commerce & Visitors Bureau Budget $1,777,606 • TOT $1,107,638* • Destination Marketing/Events $1,191,700** *Based on audited financials **Conservative allocations
- 8. Audited Financials Total Revenue $1,674,200 Revenue from City $1,130,100 = 66% of total revenue $1,001,300.00 $200,100.00 $190,400.00 $318,500.00 Expenses Marketing/PR $1,001,300. Visitor Services $200,100. Programs & Events $190,400. Management & General Operations $318,500.
- 9. Fiscal Year 2015-16 Fiscal Year 2015-16 Budget $1,777,606 RFPs Visitor Profile/Demographics Job Descriptions/Duties Websites Responsive New Year’s Eve Mixers (Monthly) Fixers (September and beyond) Google Business tax documentation & shred event Emergency Preparedness Serve Safe Catalina Island Chamber of Commerce & Visitors Bureau
- 10. Tax Revenues Based on numbers supplied by City of Avalon FY – July -May Taxes TOT $4,355,497 Admissions Taxes $734,338.00 Sales Tax $616,172.00 Cross Channel Wharfage $2,846,374 Cruise Ship Wharfage $407,766 Harbor Use Fees $277,531.00 Total Taxes $9,237,678.00.
- 11. V i s i t a t i o n Fiscal Year Comparisons Based on numbers supplied by providers and City of Avalon 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 Cruise Ships Cross Channel Carriers 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 0 10 20 30 40 50 60 70 Hotel Occupancy Hotel Occupancy July - May 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11
- 12. Organizational Assessment The Year in Review Mission: To attract visitors and advocate for commerce on Catalina Island. Vision/Goals: Renovate Visitors Center Visitor Services Hub New Chart of Accounts Expanded Committee Structure More/improved events & group attraction
- 13. Fiscal Year 2015-16The Year in Review Events Catalina Concert Series Shop at Home Taste of Avalon Restaurant Week Annual Fireworks Show Mixers Fixers Annual Meeting New Year’s Eve Gala Catalina Island Triathlon Marketing support for Catalina Film Festival & other Visitor Serving Community events.
- 14. Getting Involved Fiscal Year 2016-17 Membership Drive Volunteer Program Visitor Guide Advertising Banner Ads Features & Coupons Thursday Updates Island Times Newsletter Winter Holiday seasonal promotions/events Committees Membership, Nominating, Marketing, Events, Cruise Industry 310.510.1520 info@catalinachamber.com Committees Volunteer Visitor Comment Forms Marketing opportunities RFPs
- 15. Board & Executive Committee Directors John King, Afishinados, 2018 Chris Austin, Catalina Express, 2018 John Eric Hernandez, Catalina By Design, 2018 Mark Costello, Abe’s Liquor, 2018 Julie Bovay, Tech Shack, 2017 Kevin Strege, Catalina Island Vacation Rentals, 2017 Gregg Miller, Hotel Metropole, 2017 Buddy Wilson Jr., Catalina Business Enterprises, 2017 Cinde Cassidy, Catalina Business Services, 2016 Bill Paige, Leo’s Drugstore, 2016 David Howell, Island Navigation, 2016 Ray McKewon, Xceptional Music, 2016 Steve Bray, Steve’s Steakhouse, 2016 Dave Stevenson, SCICo Dewitt Finely, Two Harbors Enterprises Gail Fornasier, Catalina Island Museum Bob Reid, Catalina Island Conservancy Ben Harvey, City of Avalon Officers John King, Chair Bill Paige, Past Chair Julie Bovay, Chair Elect Dave Howell, Chief Financial Officer Dave Stevenson, Marketing Chair Nine of 19 seats changed New members include Levent Alkibay, Cat Bev Tony Budrovich, Conservancy Ron Hite, SCE David Jinkens, City of Avalon Jason Paret, CIMC Angela Puchala, Cat Express Thomas Salinas, CIVR Ashley Villarama, US Bank Todd Wade, Two Harbors
Editor's Notes
- Tonight I will be presenting an annual report on the activities and finances of the Catalina Island Chamber of Commerce & Visitors Bureau. Some of what you will see tonight is duplicative of information I recently shared at the organization’s 67th annual membership meeting but much has been added or updated to reflect the recently completed audit of our finances for the fiscal year ended June 30, 2016.
- We are a nonprofit organization providing DMO, or Destination Marketing/Management Organization services on behalf of the City of Avalon and businesses located on Catalina Island. We are also a Chamber of Commerce providing member services accordingly. We are governed by a 19 member board, with one standing committee, (Executive) and others which are ad hoc. Our Fiscal year runs concurrent with that of the City. We ascribe to most of DMAI’s recommended best practices and reporting standards with the exception of areas in which we do not have significant staff or resources dedicated. We are members of industry associations shown here and regularly participate in their programs in order to advance our skills and opportunities.
- Some background on TOT and the Chamber & Visitors Bureau’s role in providing DMO services. From its inception, TOT in California was established to fund tourism marketing programs. Over time the law and legal cases have established the current rules under which we operate; that a City or County government collects the taxes which are paid by guests staying in hotels/motels. Depending upon local ordinances, short term rentals, camping facilities and RV parks are often included as taxable stays as well. In recent years our tax rate in Avalon has grown from 7% to the present 12% rate. As those increases were made, the allocation of 22% of collected TOT was established as the funding base for tourism promotion of the City. Specifically that includes provision of visitor services, public relations, advertising and marketing services. It is important to note, that increased tax rates, not increased draws on City coffers have been used to fund our DMO functions and that voter approval was sought and received. These changes were led by the Chamber/Bureau.
- Advertising Spending: Internet/Digital – 75% Print – 20% , Contingent/Miscellaneous – 5% New Website and digital communications tools have been implemented and so far have resulted in a 4.17% increase in new web sessions, a dramatically decreased bounce rate and, a 73% increase in the pages users are visiting. We are in the midst of an SEO audit and have just added text alerts to our mobile communications options. Co-op program--$100,000 per partner – total budget $300,000. Partners contributed primarily to a digital media buy (TripAdvisor, banners, emails, retargeting, emails, Facebook, promoted posts/texts, event promotion) and for Cable TV spots. Organization specific Destination Marketing included: Collateral materials like our annual Visitors Guide—quantity 75,000 – (response to advertising, tradeshows, Welcome Centers). Maps/Brochures— at a quantity of 175,000 – (mainland terminals, boats, on-island distribution). Rack Cards – 200,000 – distributed thru Certified Folder to over 500 mainland venues. California Welcome Centers are now showing our 15 second video in 10 locations and we have Visitor Guides available there as well. Hosted over 40 media outlets involving 70+ people. Tradeshows –attended included: Bay Area Travel & Adventure Show, Santa Clara, LA Travel & Adventure Show, Long Beach, Fred Hall’s Outdoor Fishing & Travel Show, Long Beach, Seatrade – cruise ship industry meetings with all major carriers; Orange County, San Diego and LA Concierge Association Shows were also attended. Film Permits—20+ film projects
- All contractors have been met with and services reviewed. From minor tweaks detailed rewrites of contracts, we are closely watching the performance of our providers. Some changes since last year include Searle, Cat Tech, Prism and Christy Lins.
- So, it has been an eventful year with significant changes in staff, board and vendors. We have just completed an audit of our 2015-16 financials and I will go over highlights in a minute. The City Manager’s office is in receipt of those audited financials, however due to circumstances outside of our control, the deadline of September 1 was not met. Please take note of the fact that we received just over $1.1 million from TOT for the fiscal year, and spent over $1.1 million in Destination Marketing. We also carried the cost of this year’s fireworks for July 4th to the tune of $22,000, renovated the visitors center, began a 12 month Visitor Profile study and launched a new website. Meanwhile we had our first major photo shoot in several years and significantly grew our social media activities and reach (now over 80,000 followers).
- Our auditors have reported no significant findings or discrepancies. Based on their accounting the chart shown here represents allocation of dollars as they related to our overall budget. When breaking out those activities that are marketing focused we spent just over $1.6 million promoting the destination and hosting visitors vs. revenue from the City $1,130,000. We have recently begun working from a new chart of accounts that will allow for more clearly reporting all income and expenses related to Destination Marketing and likewise for all things related to functions of Commerce.
- Budget Highlights Income Membership Dues 113,000.00 Advertising Income 234,000.00 Marketing Income 5,000.00 Program Service Revenue 43,500.00 Fundraising Income 112,250.00 Total Income 1,777,606.00 (less on audit after adjustments) Expense Advertising 274,600.00 Insurance 72,500.00 Marketing Expense 85,000.00 Payroll Expenses 517,000.00 Printing & Reproduction 171,000.00 Postage & Freight 70,000.00 Accounting 25,200.00 Consulting 51,000.00 Professional Fees 5,000.00 Rent Expense 40,500.00 Repairs & Maintenance/Visitor Center Renovations 62,500.00 Travel Expense 41,775.00 Website Expense 94,000.00 Special Events 190,000.00 Total Expense 1,818,735.00 $41,000 from reserves to renovate Visitor Center
- Total Visitor Driven revenues to the city are up 4.6% (May 2016) TOT Revenues – are up by 6.6% Admission Taxes – are down 1.5% Harbor Use Fees – are up by 8.3% Sales Taxes – are up by 5.1% Wharfage Fees - Cross Channel – are up 3.1% Wharfage Fees – Cruise Chips – are up 2.8%
- Visitation Counts: Cruise passengers counts increased despite cancellations due to weather. Cross channel carriers down 3% for the same period with weather believed to be the main influence. Hotel Occupancy was highest in August 2015 @82.5% and lowest in January 2016 @33.2%. Annualized Occupancy was down from 60% last year to 54% this fiscal year (through May). The chart on the left represents a full fiscal year vs the one on the right shows only through May.
- Last year we adopted a new Mission Statement and some clearly articulated goals. We planned to renovate the visitors center on the pier making it even more of a hub for all island visitor services. We are now operating under much more concise chart of accounts that will allow us to more easily track overall functions of Commerce and functions of Destination Marketing. We are expanding our committee structure with focuses on membership, cruise industry relations, events and marketing. Mid year we launched a new set of marketing objectives targeting group business and have generated about 40 rfps so far.
- We expanded the concert series season to run from March to September We increased attendance at Shop @ Home, Taste of Avalon, Catalina Triathlon and NYE gala We once again provided the fireworks display over the harbor at the cost of $22,000 We hosted 11 mixers At our Annual Meeting in July, we honored JazzTrax for 30 years of bringing visitors to the community by naming them Business of the Year
- We are currently in the midst of wrapping up a membership drive, ad sales for the annual visitors guide and looking at Winter Holiday activities and events that we can bundle into reasons to visit the island. The aforementioned committees offer opportunities for volunteerism and we have published a new volunteer manual. Advertising opportunities are available to members and nonmembers alike, but of course members receive a special rate. Currently we are working on promotions for National Bison Day in partnership with the Catalina Island Conservancy using an Instagram contest
- Here you see the board roster I shared with you last year. Since then 9 of our 19 seats have changed. On the right you see some of our newest board members and I would encourage you and the public to reach out to them sharing your insights or wishes from our organization, as well as to me at any time. Volunteers and Interns this past year were a big part of our success and some of them included working on events with us and on Google Trekker projects mapping our streets and trails. Justus Ramming, Nic Wood and Laura Roll each took turns along with me in carrying the very heavy backpack camera system all around the island. Rose Ellen Gardner helped tremendously in the visitor center this past year.
- In closing I would like to leave with you some key takeaways. While occupancy and visitation faltered a bit this past year, on a multi year trend we continue to increase. We are in need of more frequent and more detailed information from the City in order to be responsive to our business community and the professionals like appraisers and auditors working with island businesses that are dependent upon us as a resource. Included in those needs would be information on room nights, occupancies and both harbor mooring and anchoring demographics (e.g. home zip code, length of stay, registrants originations). We have taken a big step toward meeting the critical measure of a Demographic Profile and Visitor Spending analysis in order to address business member needs and to better satisfy all of you in showing the economic impact from visitors to the island and return on your investment in us and the final results will be shared when completed. Water is a constant concern for our business members just as it is for every resident of the island. We cannot go into stage 4 without significant loss of jobs and long term damage to our economy. The decisions that many businesses are making even now under stage 3, are threatening to have long lasting impacts on us. The Fixer we are holding here at City Hall tomorrow is evidence of that commitment to avoiding stage 4. We want to be a valued partner in bringing future large events to the island and see great opportunity to do so. Likewise we are excited for the opportunities increased dialogue with the Cruise Industry holds for us all. We want to expand upon winter visitation by enhancing the visitor experience with holiday lighting and events, but to really be successful there, we need the conversation and planning to include key City staff. Finally, we are committed to working with our local arts groups to improve their sustainability and ability to attract visitors to their events, activities and facilities by hosting soon, a discussion with stakeholders to look at the opportunities that may exist.