Annual ReportCity of Avalon

October 4, 2016

Annual City Report

About the Organization

Transient Occupancy Tax & the DMO

FY 2015-16: The Year in ReviewAudited Financial Reporting

Chart of AccountsRFPsDemographic Profile & Visitor SpendingOfficers & DirectorsVisitor CenterGroup SalesNational Travel & Tourism Week (Visit CA)

FY 2016-17BylawsOfficers & DirectorsStaffingMarketing Review

About the Organization Organizational 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

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.

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

2015-16Catalina Island Chamber of Commerce & Visitors Bureau

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)

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

2015-16Catalina Island Chamber of Commerce & Visitors BureauBudget $1,777,606• TOT $1,107,638*• Destination Marketing/Events

$1,191,700***Based on audited financials**Conservative allocations

Audited FinancialsTotal Revenue $1,674,200Revenue 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.

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

Tax RevenuesBased on numbers supplied by City of Avalon

FY – July -May Taxes

TOT $4,355,497 Admissions Taxes $734,338.00Sales Tax $616,172.00 Cross Channel Wharfage $2,846,374Cruise Ship Wharfage $407,766 Harbor Use Fees $277,531.00Total Taxes $9,237,678.00.

VisitationFiscal Year ComparisonsBased on numbers supplied by providers and City of Avalon

Cruise Ships Cross Channel Carriers

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2015-162014-152013-142012-132011-122010-11

Hotel Occupancy0

10

20

30

40

50

60

70

Hotel Occupancy July - May

2015-16 2014-15 2013-14 2012-132011-12 2010-11

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

Fiscal Year 2015-16 The 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.

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

310.510.1520info@catalinachamber.comCommitteesVolunteerVisitor Comment FormsMarketing opportunitiesRFPs

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 changedNew members include

Levent Alkibay, Cat BevTony Budrovich, ConservancyRon Hite, SCEDavid Jinkens, City of AvalonJason Paret, CIMCAngela Puchala, Cat ExpressThomas Salinas, CIVRAshley Villarama, US BankTodd Wade, Two Harbors

Annual ReportQuestions?

Thank You!