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HomeMy WebLinkAbout2023-07-24 - Agendas - Revised FinalFayetteville Advertising and Promotion Commission July 24, 2023 Location: Fayetteville Town Center, 15 W. Mountain Street Commissioners: Todd Martin, Chair, Tourism & Hospitality Representative Katherine Kinney, Tourism & Hospitality Representative Chrissy Sanderson, Tourism & Hospitality Representative Elvis Moya, Tourism & Hospitality Representative Andrew Prysby, Commissioner at -large Sarah Bunch, City Council Representative Mike Wiederkehr, City Council Representative Staff: Molly Rawn, CEO Agenda I. Call to order at 2:00 p.m. II. Old Business A. Review and approval of May minutes. B. Review and approval of June minutes. III. New Business A. CEO Report. An executive overview of the previous month B. Financial Report. Jennifer Walker, Vice President of Finance C. Marketing Report. Sarah King, VP of Marketing and Communications D. Vote. Budget Revision. Staff has presented a revised 2023 budget including revised operational projections and capital investments for adoption. Memo included. E. Additions to the agenda may be added upon request from a majority of the commissioners. IV. Adjourn May Meeting Minutes Fayetteville Advertising and Promotion Commission Minutes May 22, 2023 Fayetteville Town Center Commissioners Present: Todd Martin, Chair Tourism & Hospitality Representative Andrew Prysby, Commissioner at -large *virtual attendance Sarah Bunch, City Council Representative Sonia Harvey, City Council Representative Katherine Kinney, Tourism & Hospitality Representative Elvis Moya, Tourism & Hospitality Representative Commissioners Absent: Chrissy Sanderson, Tourism & Hospitality Representative Staff: Molly Rawn, CEO; Jennifer Walker, VP of Finance; Sarah King, VP of Marketing and Communications Commissioner Martin called the meeting to order at 2:03 pm. Old Business A. Chair Martin asked commissioners to review the April 24th minutes and asked if there were any additions or revisions. Hearing none, he declared the minutes were approved as presented. III. New Business A. CEO Report. Rawn gave a CEO report, including activities and accomplishments for the past month with a look ahead. The CEO Report is available in the Agenda Packet for full review. B. Financial Report. Jennifer Walker, VP of Finance Walker stated that April financials are in the commission agenda packets and with both revenue and expenses at 33% and we are pleased to be just 1 % below budget on revenue. We are 7% below budget for revenue, so that lends itself to us doing well. HMR tax collections are 1.6 million, which is 2% below seasonally adjusted budget expectations. Cash and investments are approximately 4.8 million, just a slight increase over last month with $150,000 in unearned revenue which reflects events booked at the town center which have not occurred yet. Chair Martin asked about the fact that HMR taxes were below the seasonally adjusted budget expectations and Walker said she was pleased that we are showing improvements in this metric, i.e. only being 2% below is an improvement over last month. C. Marketing Report. Sarah King, VP of Marketing and Communications King opened up by sharing where Vanny had been recently and also shared information about the motorcycle influencer, Whitney Mesa's trip to our area which included several gravel and paved routes that we curated for her. Mike Sells shared stats such as page views on our website and noted that the calendar page is the most viewed page. Sells also noted that that US Pro Cup page which was the third highest visited page, also served as a gateway to expose new viewers to our cycling page as it gained a huge increase in viewers last month. Rawn noted that the calendar feature continues to get better and better and she thanked the marketing team for their continued work on it. Mike Sells also pointed out the reasoning for the PDF's decline of the visitors guide is that more people are downloading the visitors guide as a flip book. He also shared our paid search with top keywords which are "Things to do in Fayetteville," etc. He shared that an 11 % click through rate is very high. He also shared the paid search for the town center. Commissioner Moya asked when the community grant application would be active and Rawn stated that it was live and that it was a rolling deadline meaning groups could apply any time of year and we would evaluate them as long as we have funds available. Rawn also stated that she would share more at the June meeting about this process. D. With no other business or announcements, a motion to adjourn the meeting was made by Commissioner Harvey and seconded by Commissioner Bunch and the meeting was adjourned at 2:28 pm. A tour hosted by Folk School of Fayetteville at the Walker Stone House was held after the meeting. Minutes submitted by Amy Stockton, Director of Operations, Experience Fayetteville June Meeting Minutes Fayetteville Advertising and Promotion Commission Minutes June 26, 2023 Fayetteville Town Center Commissioners Present: Todd Martin, Chair Tourism & Hospitality Representative Andrew Prysby, Commissioner at -large *virtual attendance Sarah Bunch, City Council Representative Sonia Harvey, City Council Representative Elvis Moya, Tourism & Hospitality Representative Commissioners Absent: Katherine Kinney and Chrissy Sanderson, Tourism & Hospitality Representatives Staff: Molly Rawn, CEO; Jennifer Walker, VP of Finance; Sarah King, VP of Marketing and Communications Commissioner Martin called the meeting to order at 2:00 pm. Old Business A. Chair Martin stated that the May minutes would be presented for review and approval at the July meeting. III. New Business A. CEO Report. CEO Rawn began by stating that we expect to have our auditors present the 2022 financial audit at the July meeting as well as our finance team present a budget adjustment. She does not anticipate that the adjustment will be a large one as we have budgeted well. She continued with a couple of personnel announcements; Melissa Freeman has joined our team as our Marketing Coordinator and Jose Romero has joined our team as a Sales Coordinator. Rawn pointed out a couple of highlights from the tourism activity such as the Arkansas Pottery Festival, an event we supported last year and this year, had an economic impact estimate of $239,756 with more than 1,200 participants and attendees. She also stated that Shareholders Week was very successful and she thanked staff who represented our organization. We have secured the 2024 Ragnar Relay Trail Race which will take place in April and we are already hearing a lot of buzz about this event that may host over 2,000 runners on Centennial Mountain. She also shared the economic impact of the 2023 Walmart Joe Martin Stage Race which was estimated to be at $757,000. She stated that Mike Sells, working with All Sports Productions and Bruce Dunn, reported 81 different media pick ups with a potential media reach of 985 million impressions. Finally, she shared 2023 Ozark Valley Triathlon and USA Triathlon National Championships Highlights that included 481 participants with 68% from outside the region/state and an economic impact estimated at $537,000. Rawn listed the many countries represented in our Visitors for May in the Visitors Center. The town center hosted 9 events since we last met, even with being closed for a substantial amount of time for the new doors to be installed. Team are preparing to host Touge Con, the small car show, again in September with an even larger crowd than last year expected. She reported that the town center hosted Fayetteville Pride's Youth Zone and the Trans March and the events went really well and she was noted that she saw several of the commissioners at the events. In ending, she reported that June's First Thursday was the largest in attendance she could recall and that everyone is looking forward to July's First Thursday which is Dog Daze. Chair Martin wanted to state what a great First Thursday the June event and wanted to thank all of the team and especially wanted to thank Tyler Wilson and Chloe Bell for their work. CEO Rawn then spoke about the Tourism Incentive funding request form which is on our website under the CVB services section. She thanked team for working to create this new process and form and particularly thanked Tina Archer Cope who spent time researching how other CVBs handled funding requests to help us formulate our process. She explained that team members review the funding requests and gets back to requesters within a week when possible. She then showed the commission the Request for Proposals for a Tourism Master Plan which was placed on our website in the CVB Services section. This project was budgeted for in the 2023 budget although it could be that the expense falls in this year and next year. B. Financial Report. Jennifer Walker, VP of Finance Walker stated that May financials are in the commission agenda packets and at the end of May, our target for both revenue and expenses is 42% and we are at 40% for revenue and 35% for expenditures, leaving us in a pretty healthy position. HMR tax collections are at just over $2 million year to date, which is just 1 % below target. Spending is 7% below budget and net operating income for the month is $357,000. On the balance sheet, cash and investments are approximately $4.9 million at the end of May, and town center's unearned revenue is a little over $200,000. Chair Martin asked if Walker was concerned at all with HMR tax revenues and she stated that she is less concerned each month as revenues have been rebounding after a slow January which may have been due to late payments. Chair also asked Walker if there were any potentially important expenses we might be holding back that would reflect this lower expense percentage and Walker stated that much of the reduced expenses are on the town center side and that Tyler Wilson is very good about ramping down expenses when they are not needed. C. Marketing Report. Sarah King, VP of Marketing and Communications King shared that we had a lot of media coverage last month including a podcast entitled I am Northwest Arkansas that both she and Chloe Bell participated in, focusing on Experience Fayetteville's role in supporting the tourism economy. King also spoke about a new feature coming to our website where mini -itineraries created by locals and travelers will be posted along with their pictures, pro -tips and a map with photos. She also recapped a photo shoot with Sells on May 6th which captured many of the new attractions in Fayetteville including the Ramble, Central BBQ, Bolders and Brews and we also captured some of the Pottery Festival and some of our new speciality merchants. Additionally, King recognized that this is the 10th anniversary of the Fayetteville Ale Trail and we know we've distributed at least 100,000 passports during that time and shared some specific stories of people redeeming their passports for prizes. Rawn included that we started with just 7 breweries 10 years ago and have more than 20 now. King also shared a story that Brannon Pack, our Director of Cycling Tourism participated in entitled "The Business of Biking." Mike Sells with Sells Agency presented information about the Authentic Fayetteville campaign which kicked off mid -May with paid advertising and we are seeing boosts on our channels. Mike also shared paid advertisements for events such as Pride Weekend and the Experience Fayetteville Criterium. He also showed just how much our email newsletter has helped grow our website traffic with more than 70% from out of state. Sarah King stated that the newsletter is now monthly rather than quarterly and the list is now more than 11,000 subscribers. Mike Sells also shared tourism insights with 2023 Q2 research from US Travel Association indicating strong outlook for summer travel. Marketing tactics and our goals were discussed by various commissioners and staff with it being noted that email newsletters are certainly achieving some of our marketing goals. D. Vote. Purchase of Fayetteville is my Favoriteville trademark and associated assets. CEO Rawn opened up by saying we have advertised this phrasing on our building and in merchandise in our Visitors Center. She sees benefit with being able to use the phrasing on more than what we currently have and has been working with a trademark attorney for some time to determine exactly what we would like to do with this phrase. A main goal she has with this agreement is being able to use this phrase as a tag line, a website domain and for social media channels. This agreement also gives us the ability to license others to use and it gives us the rights to own the phrase into perpetuity. Chair Martin asked for a motion to authorize the contract with World Domination, LLC for $50,000. Commissioner Bunch made the motion and Commission Harvey seconded it. Chair Martin asked if there was any discussion and hearing none, he called for a vote on the motion which passed unanimously via roll call vote. E. Vote. Contract with Arrivalist for tourism insight platform. CEO Rawn began by stating that last year we brought Buxton on board for one year and we saw that it was not a good fit for our needs. We asked Mike Sells to help us research tourism insight platforms and team worked to both research platforms and define what data we wanted to get out of a software. With team involved, Arrivalist software was selected. She pointed out that because we have a line item of $25,000 to renew Buxton and the contract with Arrivalist is $45,000, the plan is to cover the difference with a portion of a $25,000 contingency amount that is budgeted for in the Tourism and Client Development line item. Rawn asked if the commissioners had questions and if Mike Sells had items to add. Commissioner Prysby asked if there was a dashboard and also asked how data is collected. Mike Sells stated that Arrivalist utilizes data from over 100 mobile apps that should translate into useful data. Commissioner Prysby stated that Arrivalist's client list was impressive and conversation ensued on the helpful data that Arrivalist will give. Commissioner Prysby recommended that the team determine some usage scenarios and ask Arrivalist team to demonstrate how to retrieve data to answer those scenarios to help ensure we are partnering with a database that will be very helpful to our tourism work. Chair Martin asked if there were any more questions and hearing none, he called for a motion to authorize the CEO to accept a one-year contract with Arrivalist for $45,000. The motion was made by Commissioner Prysby and seconded by Commissioner Harvey. With no further discussion, it passed unanimously via a roll call vote. With no other agenda items, Chair Martin asked if there were any announcements. CEO Rawn stated that Commissioner Moya had requested a list of upcoming and newly opened restaurants and while the servers at the city of Fayetteville are still offline, Rawn was able to email Commissioner Moya a list of the Q1 new business licenses filtered by anything food or beverage related, there were seven. She will regularly include these when we receive them from the city. Additionally, Rawn wanted everyone to know that our mobile Van was already enroute to Washington DC to take part in the Smithsonian Folklife Festival and that several staff members would be staffing this festival throughout the next two weeks. With no other business or announcements, a motion to adjourn the meeting was made by Commissioner Harvey and seconded by Commissioner Prysby and the meeting was adjourned at 2:55 pm. Minutes submitted by Amy Stockton, Director of Operations, Experience Fayetteville Executive Report Fayetteville Advertising and Promotion Commission CEO Updates July 2023 Executive Summary • The final report for the 2022 Audit was not yet ready to publish by the agenda deadline. We fully expect Forvis to present their findings at the August Commission meeting. • Responses to the Tourism Master Plan RFP were due at close of business last Thursday (7/20). The staff will be reviewing proposals, along with Commissioner Martin, and will present its recommendations to the commission in August. • Mike Krasowski joins the Town Center team as our part-time facilities technician. This position has been vacant since the onset of the pandemic, and we are excited to have him on the facilities team. • City staff has brought forward a proposal to enter into a contract with Experience Fayetteville to support the building of Fayetteville Downtown Coalition. The City Council will vote on the item at the August 1 st council meeting. • If funded, EF will receive $60,000 this year and $125,000 in each of the two subsequent years, pending city budget approval. Tourism Activity • Tina and Julie spent the month of June prospecting new business for 2024-2027. They have outstanding bids on: • Two sporting events; 1 international and 1 national • Two meetings/conventions; 1 international and 1 national We hosted the Arkansas Professional Firefighters Association June 12-15tn • This was Fayetteville's first year to host and we provided a $1,000 incentive. • The conference had 125 attendees and an estimated direct economic impact of $183,000. • This group took full advantage of the Fayetteville Ale Trail incorporating it into their conference after hour activities, even making a commemorative ale trail glass for their conference participants. • NWA Equality's Pride weekend was June 23-25. The STR report showed an average city occupancy rate of nearly 84% and a city average daily rate of over $134 • Host hotel — Graduate Fayetteville - had 88% occupancy and an ADR of over $169. • NWA Equality reports overall participation in weekend events at 35,000 people • Second annual Highlands Gravel Classic June 23 & 24, triples in participation in 2023 • Only UCI Gravel World Series Qualifying event in United States, and one of only two in North America • 308 Athletes from 38 states and 9 countries competed to qualify for the UCI Gravel World Championships in Italy this fall • 93% of participants from outside Fayetteville Event engaged local businesses including Puritan Coffee & Beer and Orthodox Farmhouse Brewery — our newest Ale Trail Partner Estimated total economic impact of $282,000 based on DI Economic Impact Calculator and we provided a $5,000 incentive Experience Fayetteville will host its Bicycle Friendly Business Bootcamp on Wednesday, September 13 at FTC • Complimentary, one -day workshop for Fayetteville area businesses interested in becoming more bicycle -friendly • The workshop highlights both employee health and the business benefits of being bicycle -friendly Registration to open late July, businesses are able to send up to two representatives each Five team members were in D.C. with Vanny attending the Smithsonian Folklife Festival introducing thousands of people to Fayetteville. • Vanny had a prominent place on the National Mall • We distributed 5,000 Fayetteville branded fans and countless stickers • As a result, we have been invited to submit a proposal to the National Council for the Traditional Arts to be the three-year host city of the National Folk Festival. Proposal in progress The marketing team debuted six new "Urban Adventures" cycling routes on experiencefayetteville.com. • Brannon has designed these routes to be accessible to families with kids and anyone who wants to see Fayetteville via bike trails. • Visitors center • 1,445 visitors in June, slight uptick over prior month • VC had $7,015.66 in sales in June, a 16% increase over prior month • Visitors from: Hong Kong, England, Puerto Rico, Germany, Canada, Belgium, Chile, Sudan, and Colombia • Ten Ale Trail passports completed, eight from outside Fayetteville • Partnered with NWA Equality to sale Pride merch during May & June • Partnered with Gulley Park Concert Series to sell Gulley Park merch May - through mid -July • Programming and Events around town Chloe is preparing for August's First Thursday, Summer Soiree August 3rd Work has begun on the 30t" Anniversary Lights of the Ozarks, including vendor applications and sponsorship opportunities Kelly and the Downtown Fayetteville Coalition are planning their first festival in downtown: Falltoberfest. It's a free, family -friendly festival that's a mix of traditional Oktoberfest everything FALL. Mark your calendar: Sunday, October 1 from 12-6 pm. • June partial event listing: June 1 First Thursday (Throwback Thursday) June 2-3 NCAA Baseball Regionals June 7 Tour Bus from Oklahoma, Muskogee Creek Nation June 10 Canadian Journalist Familiarization Tour June 17 Farmers Market 50t" Anniversary June 23 NWA Equality Transgender March June 24 NWA Equality Pride Parade and Festival June 30 Juniors Gymnastic Competition at UA Fayetteville Town Center • Since our previous meeting, Fayetteville Town Center has successfully hosted 15 events • Door installation 95% complete, with only a few minor hardware pieces remaining to finalize the project. • Director of Sales, Griffin Stroupe, attended ASAE in Fort Smith and met with various Associations and CVB's in Arkansas as well as Mississippi and Alabama. • Installation of the new blinds began 7/19 and is anticipated to be complete in two weeks. • Children's Safety Center of Washington County is hosting their 16t" annual Dream Big Charity Gala at the end of this month (July 29tn) Butter+Blooms Bakeries and Tortilla Manufacturing Hopwood Breads Bakeries and Tortilla Manufacturing Fayetteville Beer Works, LLC Beverage Manufacturing Tusk Tavern One Drinking Places (Alcoholic Beverages) Uark Bowl, LLC Drinking Places (Alcoholic Beverages) Gary L. Corbin Full -Service Restaurants CASA JOVERO LLC Full -Service Restaurants True Dat Holdings Corporation Limited -Service Eating Places 657 E HUNTSVILLE RD 600 W NORTH ST A4 2649 EMISSION BLVD 1830 N CROSSOVER RD 1 644 W DICKSON ST 110 1830 N COLLEGE AVE 6315 W WEDINGTON DR 1 1113 W MARTIN LUTHER KING JR BLVD Arsaga's Enterprises Limited -Service Eating Places Rymolenes Pies Limited -Service Eating Places Araiza Bakery, LLC Limited -Service Eating Places CANVIS Coffee LLC Limited -Service Eating Places ILI 1404 N COLLEGE AVE 4201 N SHILOH DR 1410 2699 W MARTIN LUTHER KING JR BLVD Otro Rollo LLC Specialty Food Stores 4201 N SHILOH DR 1375 V�i�Illl' Monthly A&P Tax Collections 2023** 1)11 P CZ I [-] • 11 si• Ur. Total HIVIR Collected wious YTD (Jan -June) HIVIR A&P Tax Collection Total; ?019 2020 2021 2022 2023 ...................................................................................... 0,808,921 $1,455,289 $1,834,940 $2,191,465 S29465911E 3.71% -19.55% 26.09% 19.43% 12.49% % change over previous year jan S (ma) apr (may jun jul aug sep Oct nov dec S4149154 S4409113 58.30% 4.58% 15.09% 1.89% 7.48% O O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 %than e O O CD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o g O O O O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 from 6CT666 0 0 0 0 0 0 CT6&66 66666 66666 66666 2022 NM - M � � W M CDN M � Ln CO � M M O � N M � M CO r- M M O ��� NO N N N N N N N N N M M M M M M M M M M � ���� 't�'t LO ** This represents one half of the total HMR collections. The other half supports the Parks and Recreation department. Memo P l[AY� To: Molly Rawn, CEO, Experience Fayetteville Fayetteville Advertising & Promotion Commissioners From: Jennifer Walker, VP Finance, Experience Fayetteville Date: July 15, 2023 Re: Financial Statements — June 2022 This packet contains Experience Fayetteville Financial Statements for the month ended June 30, 2023. The following reports are included in the packet: • Summary P&L Financials for month ended June 30, 2023 • Balance Sheet for month ended June 30, 2023 Target Budget June — 50% Revenue target 50% of budget or higher by the end of June 2023. Expenditures target 50% or lower at June 2023. Total Revenue YTD: $2,784,910 or 49%; We are 1 % below target. Tax Receipts - $2,465,119 (under budget by 0.3% ytd) Town Center - $ 225,002 (under budget by 7% ytd) Other - $94,789 Total Operating Expenditure YTD: $2,282,589 or 42%; this is 8% under budget. EF Main - $1,856,636 Town Center - $425,953 HMR tax — YTD June Collections (May activity) are below seasonally adjusted budget expectations by 0.9%. Operating Net Income is $502,321 year to date. Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year -to -Date @ June 30, 2023 CONSOLIDATED Year -to -Date Actual Budget Over/(Under) Budget % of Budget Revenue Hotel, Motel, Restaurant Taxes Revenue 2,465,119 4,960,000 (2,494,881) 49.7% Rental Revenue 211,045 485,500 (274,455) 43.5% Event Revenue 33,207 51,472 (18,265) 64.5% Visitor Center Store Revenue 20,643 53,700 (33,057) 38.4% Parking Revenue 5,770 26,000 (20,230) 22.2% Advertising Revenue 1,525 3,500 (1,975) 43.6% Grant/Other Revenue 26,800 83,000 (56,200) 32.3% Interest and Investment Revenue 20,802 7,550 13,252 275.5% Total Revenue 2,784,910 5,670,722 (2,885,812) 49.1% Expenses Operating Expenses Rental Expenses 32,120 208,000 (175,880) 15.4% Event Expenses 53,855 135,250 (81,395) 39.8% Visitor Center & Museum Store 9,231 41,200 (31,969) 22.4% Personnel 878,463 1,933,886 (1,055,423) 45.4% Sales & Marketing 504,351 1,363,565 (859,214) 37.0% Office and Administrative 373,910 785,821 (411,911) 47.6% Bond Payments 348,900 700,000 (351,100) 49.8% Contribution to Capital Reserves - 100,000 (100,000) 0.0% Other grants 81,760 203,000 (121,240) 40.3% Total Operating Expenses 2,282,589 5,470,722 (3,188,133) 41.7% Net Operating Income/(Loss) 502,321 200,000 302,321 251.2% Other Income Unrealized Gain/(Loss) on Investments 5,699 0.0% Other Expenses FFE & Improvements 190,569 638,000 (447,431) 29.9% Depreciation Expense 95,105 0.0% Cost of Goods Sold (2,562) 0.0% Net Income/(Loss) (without cx Grants) 224,907 (438,000) 657,208 -51.3% Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year -to -Date @ June 30, 2023 Experience Fayetteville Year -to -Date Actual Budget Over/(Under) Budget % of Budget Revenue Hotel, Motel, Restaurant Taxes Revenue 2,465,119 4,960,000 (2,494,881) 49.7% Rental and Event Revenue 25,085 43,972 (18,887) 57.0% Visitor Center Store Revenue 20,643 53,700 (33,057) 38.4% Advertising Revenue 1,525 3,500 (1,975) 43.6% Grant & Other Revenue 26,800 83,000 (56,200) 32.3% Interest and Investment Revenue 20,736 7,500 13,236 276.5% Total Revenue 2,559,908 5,151,672 (2,591,764) 49.7% Expenses Operating Expenses Event Expenses 43,977 105,250 (61,273) 41.8% Visitor Center & Museum Store 9,231 41,200 (31,969) 22.4% Personnel 637,556 1,420,296 (782,740) 44.9% Sales & Marketing 499,168 1,273,044 (773,876) 39.2% Office and Administrative 236,045 457,862 (221,817) 51.6% Bond Payments 348,900 700,000 (351,100) 49.8% Contribution to Capital Reserve - 100,000 (100,000) 0.0% Other Grants 81,760 203,000 (121,240) 40.3% Total Operating Expenses 1,856,636 4,300,652 (2,444,016) 43.2% Net Income/(Loss) Before Other Revenue and Expenses 703,272 851,020 (147,748) 82.6% Other Income Unrealized Gain/(Loss) on Investments 5,699 - 5,699 0.0% Other Expenses FFE & Improvements 8,850 262,000 (253,150) 3.4% Depreciation Expense 51,219 Cost of Goods Sold (2,562) Net Income/(Loss) 651,463 589,020 56,744 110.6% Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year -to -Date @ June 30, 2023 Town Center Year -to -Date Actual Budget Over/(Under) Budget %of Budget Revenue Rental Revenue 211,045 485,500 (274,455) 43.5% Event Revenue 8,122 7,500 622 108.3% Parking Revenue 5,770 26,000 (20,230) 22.2% Interest and Investment Revenue 65 50 15 130.4% Total Revenue 225,002 519,050 (294,048) 43.3% Expenses Operating Expenses Rental Expenses 32,120 208,000 (175,880) 15.4% Event Expenses 9,878 30,000 (20,122) 32.9% Personnel 240,907 513,590 (272,683) 46.9% Sales & Marketing 5,183 90,521 (85,338) 5.7% Office and Administrative 137,865 327,959 (190,094) 42.0% Total Operating Expenses 425,953 1,170,070 (744,117) 36.4% Net Income/(Loss) Before Other Revenue and Expenses (200,951) (651,020) 450,069 30.9% Other Expenses FFE & Improvements 181,719 1 376,000 1 (194,281)1 51.7% Depreciation Expense 43,886 Net Income/(Loss) (426,556) (1,027,020) 600,464 1 41.5% Fayetteville A&P Commission Balance Sheet As of June 30, 2023 ASSETS Current Assets Cash Investments Accounts Receivable Prepaid Expenses Deposits Inventory Asset Total Current Assets Other Assets Capital Assets Furniture & Fixtures Equipment EF/CVB Building EF/CVB Land Building Additions Walker -Stone House Vehicles Construction in Progress Accumulated Depreciation Total Other Assets TOTAL ASSETS LIABILITIES AND EQUITY Current Liabilities Accounts Payable Unearned Revenue Total Liabilities Equity Unreserved Fund Balance Operating Reserve Capital Reserve Temporarily Restricted Funds Net Revenue Gain/(Loss) on Investments Net Revenue without Cyclocross Net Revenue for Cyclocross Total Equity 121,169 723,463 940,410 198,621 1,142,641 1,167,218 122,860 104,548 (1,621,474) 94,272 210,026 5,431,416 1,000,000 1,100,000 382,431 5,699 219,208 (10,259) 214,649 3,686,698 1,233,911 520,524 33,364 28,369 .in A71 2,899,455 8,432,793 304,297 8,128,496 TOTAL LIABILITIES AND EQUITY 8,432,793 ULY 202 MARKETING REPORT I I kl" I Fil k,'M 711 NO% k-A 11—C r law o"IN AS o ik ri WON THOZARKS URBAN ADVENTURES Urban Cycling Routes in Fayetteville, Arkansas Lake Fayetteville Trail - 5 Miles - Mild A family -friendly paved trail with beautifu views of Lake Fayetteville, plus access to playgrounds, picnic areas, and restrooms. Parkside Circuit -14 Miles - Moderate Enjoy a bicycle -friendly loop through east Fayetteville following large portions of our paved trail network. Chasing Squirrels - 7 Miles - Mild Enjoy a 7-mile, lollipop -shaped route while following family -friendly wayfinding on what is known as Fayetteville's "South Loop." The Fayetteville Polka - 25 Miles - Moderate The Fayetteville Polka features over 25 miles of urban exploration following predominantly paved trails and bicycle -friendly streets. Uptown Funk -10 Miles- Mild This urban jaunt through Fayetteville's Uptown is 10-miles of mostly paved trails with a small section of on -street riding. Mile Zero - 28 Miles - Moderate Following the Greenway, our Mile Zero rout, winds through Fayetteville for a 28-mile "out and back" experience. i �j IRST THURSDAY DOG DAZE %Oka, is a THIS ACTUALLY IS M1' FIRST RC)Oeo I — m 1. 11 i �� FAYETTEVILLE TOWN CENTER Campaign includes Facebook, Instagram and Digital Display. P� Experience Fayetteville Sponsored - 0 From weddings and nonprofit events to concerts and business meetings, the Fayetteville Town Center is the perfect venue TWNCENTER.COM The Venue of All Venues :2 U Q Comment Learn more ,� Share *****Company ? 19:33 M. 0 Experience Fayetteville . Fayetteville, Arkansas C% Q r, • 394 likes Experience Fayetteville From weddings and nonprofit events to concerts and business meetings, the A FIREFLY FLING Fayetteville Events Media includes Facebook, Instagram and Digital Display. P� Experience Fayetteville Sponsored - 0 Enjoy a magical night with the family during Firefly Fling on July 15 at the Botanical Garden of the Ozarks in Fayetteville. EXPERI ENCEFAYETTEVI LLE.COM Create Summer Magic in Fayetteville 2023 Firefly Fling Festival 06 Like Q Comment Learn more ,� Share MID -YEAR MARKETING PR03ECTS — Restaurant Week 2022 Annual Report Branding Campaign Events Promotion - First Thursdays - EF Croitermium - NWA Pride - Firefly Fling Paid Search Campaign/Rebuild Town Center Sales Brochure Research & Data Plan Razorback Athletics Advertising Photo Library Shoot MID -YEAR MARKETING PR03ECT ANN[ Fayetteville Ad L,,; ..4 .-.0h, IL_® EFAV Fay&tteviile TAURANT WEEK It's time to celebrate the fantastic food culture that makes Fayetteville such a culinary paradise. With limited -time menu offerings and special giveaways from participating restaurants, you'll experience new and fresh flavors that can only be found during this week. For a list of participating restaurants, specials, and events, scan the the OR code! o .+, o 30S All Restaurants and Specials 19-2 P i" 7;, ART • MUSIC • FOOD • F110" i r. I, sells A 0 E N G V WEB TRAFFIC TRENDS: 3AN=3UNE OVERALL USERS & SESSIONS: +44m5% • Organic Search: q6.3% • Paid Search: + °9.9% Direct: +31.0% • Social: +95.9% • Display: +2,826.4% is Referral: +86.7% • Email: +603.2% WEB TRAFFIC GEOS IN 2. 3. NWAMm DFWm0 Not Seto. lio258.4% 4. Chicago: -11.4% So OKCmm +18m7% 6. LRmm -4.25% 7. KC: +35.6% 8. STLON '' ' �9% 9. Houston: 7e64.4% 10. Tulsa: 6% WEB TRAFFIC TOP PAGES Im Homepage (14.2%). '�3% 2. Calendar (12.41%-0)m: 7% 3. Restaurant Week (6.3%)m. N/A 4. NWA Pride (6m2%)m. So Things To Do 5.8%): No Change 6. Visitor's Guide (3.1%)m. 13.1% 7. Gravel Riding (2.3%)m. N/A 8. Dining (2.,*..A%2%): + 9. Cycling (1.9%)m. +60IM9% 10. First Thursday Throwback (1.8%)m. Memo To: Molly Rawn, CEO, Experience Fayetteville Fayetteville Advertising & Promotion Commissioners From: Jennifer Walker, VP Finance, Experience Fayetteville Date: July 19, 2023 Re: 2023 Budget Revision The attached budget revision is presented by Experience Fayetteville staff for consideration. The revised budget includes: Consolidated Revenue $5,680,250 Consolidated operating expenditures $5,319,042 Net Operating Revenue $361,208 Capital Expenditures $921,000 The following documents are included for review: 1. Summary of Consolidated Budgeted revenue and expenditures (1 page) 2. Detailed Experience Fayetteville Budget (3 pages) 3. Detailed Fayetteville Town Center Budget (3 pages) The revised budget reduces the Contribution to Capital Reserves to $0 due to changes in capital expenditures request. Staff recommends utilizing the Unreserved Fund balance to cover the difference in Net Operating Revenue and Capital Expenditures. The amount needed for one-time capital expenditures from the Unreserved Fund Balance is $559,792. The remainder of the capital expenditures will be covered by the Net Operating Revenue. This leaves the Capital Reserves intact for the upcoming year. Staff Recommendation: A vote to adopt the attached 2023 Revised Operating Budget. Fayetteville A&P Commission Consolidated Budget 2023 Budget Adjustment - Proposed Account Number Account Name Consolidated ORIGINAL 2023 Consolidated REVISED 2023 Consolidated VARIANCE (Rev vs Orig Budget) Consolidated %Variance REVENUE 40000 Revenue 41000 Hotel, Motel, Restaurant Taxes 4,960,000 4,960,000 - 0% 42000 Rental Income 492,000 497,500 5,500 1% 43000 Event Income 44,972 44,500 (472) -1% 44000 Sales 53,700 40,700 (13,000) -24% 45000 Parking Revenue 26,000 26,000 0% 46000 Advertising Income 3,500 3,500 0% 48000 Other Revenue 83,000 83,000 - 0% 49000 Interest Income 7,550 25,050 17,500 232% TOTAL REVENUE 5,670,722 5,680,250 9,528 0% EXPENSE 50000 Rental/and Event Expenses 384,450 383,300 (1,150) 0% 60000 Payroll and Related Expenses 1,933,886 1,968,563 34,677 2% 70000 Operating Expenses 2,149,386 2,044,179 (105,207) -5% 80000 Tourism Support 203,000 223,000 20,000 10% 90000 Other Expenses 800,000 700,000 (100,000) -100% TOTAL EXPENSE 5,470,722 5,319,042 (151,680) -3% Net Revenue/(Loss) 200,000 361,208 161,208 0% 77800 FFE Improvements 638,000 1 921,000 1 283,000 1 44% Total Request from Reserves or fund balance 559,792 Fayetteville A&P Commission Experience Fayetteville - Main 2023 Budget Adjustment - Proposed Account Number Account Name Experience Fayetteville 2023 ORIGINAL Budget Experience Fayetteville 2023 REVISED Budget Variance RevisedRevised vs. Original EF %Change vs. Original REVENUE 40000 Revenue 41000 Hotel, Motel, Restaurant Taxes 4,960,000 4,960,000 0 0% 41100 HMR Taxes 4,925,000 4,870,000 -55,000 -1% 41200 PY HMR 35,000 90,000 55,000 157% 42000 Rental Income 6,500 12,000 5,500 0% 42300 Alcohol Sales 6,500 12,000 5,500 0% 43000 Event Income 37,472 37,000 -472 -1% 43100 1st Thursday Income 25,472 25,000 -472 -2% 43200 LOTO Income 12,000 12,000 0 0% 44000 Sales 53,700 40,700 -13,000 -24% 44200 Visitor Store Sales 53,700 40,700 -13,000 -24% 44210 Regular Store Sales 51,000 38,000 -13,000 -25% 44220 Consignment Sales 2,700 2,700 0 0% 46000 Advertising Income 3,500 3,500 0 0% 46200 Banner Income 3,500 3,500 0 0% 48000 Other Revenue 83,000 83,000 0 0% 48800 Other Grants / DSAC 83,000 83,000 0 0% 49000 Interest Income 7,500 25,000 17,500 233% 49001 Investment Account Interest 3,000 10,000 7,000 233% 49002 Checking Account Interest 4,500 15,000 10,500 233% TOTAL REVENUE 5,151,672 5,161,200 9,528 0% EXPENSE 50000 Rental/and Event Expenses 146,450 145,300 -1,150 -1% 51000 Rental Expenses 4,000 6,000 2,000 51310 Alcohol 4,000 6,000 2,000 50% 52000 Event Expenses 101,250 104,600 3,350 3% 52100 1st Thursday Expenses 67,200 67,200 0 0% 52200 LOTO Expenses 28,400 28,400 0 0% 52400 Other Event Expenses 5,650 9,000 3,350 59% 53000 Visitors Center & Museum Store 41,200 34,700 -6,500 -16% 53200 Visitors Center 41,200 34,700 -6,500 -16% 53210 Goods for Sale 37,000 30,000 -7,000 -19% 53220 Store Supplies 1,700 2,200 500 29% 53300 Consignment Sales Expenses 2,500 2,500 0 0% 60000 Payroll and Related Expenses 1,420,296 1,399,953 -20,343 -1% 61000 Wages 1,054,929 1,115,856 60,927 6% 62000 Payroll Tax Expense 90,979 96,644 5,665 6% 62100 Federal (941) Payroll Taxes 77,494 82,359 4,865 6% 62300 SUTA 13,485 14,285 800 6% 63000 Benefits 255,880 168,952 -86,928 -34% 63100 Health and Other Employee Insu 136,894 131,463 -5,431 -4% Fayetteville A&P Commission Experience Fayetteville - Main 2023 Budget Adjustment - Proposed Account Number Account Name Experience Fayetteville 2023 ORIGINAL Budget Experience Fayetteville 2023 REVISED Budget Variance RevisedRevised vs. Original EF %Change vs. Original 63200 Company Retirement Contributic 113,986 32,489 -81,497 -71% 63300 Car Allowance 5,000 5,000 0 0% 64000 Contract Labor 13,500 13,500 0 0% 65000 Payroll Processing Fees 5,008 5,000 -8 0% 70000 Operating Expenses 1,730,906 1,690,159 -40,747 -2% 71000 Marketing 917,594 946,000 28,406 3% 71100 Advertising Expenses 462,100 449,000 -13,100 -3% 71110 Agency Advertising 400,000 430,000 30,000 8% 71120 Non -Agency Advertising 62,100 19,000 -43,100 -69% 71200 Agency Retainer and PR 174,000 174,000 0 0% 71250 Mobile Marketing (Van) 21,350 15,000 -6,350 0% 71300 Promotion 167,194 225,000 57,806 35% 71310 Marketing Programs 94,494 150,000 55,506 59% 71315 Photo & Video 65,000 65,000 0 0% 71350 Banners 7,700 10,000 2,300 30% 71400 Printing 78,000 62,500 -15,500 -20% 71410 Visitors Guide 20,500 10,000 -10,500 -51% 71420 Other Brochures 57,500 52,500 -5,000 -9% 71500 Website 9,450 15,000 5,550 59% 71600 Mailings 5,500 5,500 0 0% 72000 Sales and Development 355,450 245,902 -109,548 -31% 72100 Promotional Items 20,544 30,000 9,456 46% 72300 Groups 6,000 2,500 -3,500 -58% 72400 Sports and Cycling 86,400 76,400 -10,000 -12% 72500 Meetings 18,500 13,500 -5,000 -27% 72600 Memberships 29,504 35,000 5,496 19% 72700 Tourism & Client Devel. 194,502 88,502 -106,000 -54% 73000 Office and Administrative 174,130 184,676 10,546 6% 73100 Office Expenses 40,230 47,276 7,046 18% 73110 Office Supplies 7,600 10,709 3,109 41% 73120 Office Equipment Leases 4,948 5,000 52 1% 73130 Office Equipment Purchases 590 4,000 3,410 578% 73140 Subscriptions 1,542 1,542 0 0% 73150 Employee Relations 11,000 11,000 0 0% 73160 Training 13,525 13,525 0 0% 73170 Postage & Shipping 1,025 1,500 475 46% 73200 Fees 4,300 4,300 0 0% 73210 Bank Service Charges 500 500 0 0% 73220 Credit Card Fees 3,800 3,800 0 0% 73400 Business Taxes & Licenses 2,600 2,600 0 0% 73500 Accounting, Audit & Legal I 28,500 32,000 3,500 12% 73510 Accounting Fees 5001 -500 0% Fayetteville A&P Commission Experience Fayetteville - Main 2023 Budget Adjustment - Proposed Account Number Account Name Experience Fayetteville 2023 ORIGINAL Budget Experience Fayetteville 2023 REVISED Budget Variance RevisedRevised vs. Original EF %Change vs. Original 73520 Audit Fees 25,000 25,000 0 0% 73530 Legal Fees 3,000 7,000 4,000 133% 73900 Collection Expenses 98,500 98,500 0 0% 74000 Travel 61,960 58,635 -3,325 -5% 74100 Lodging 23,800 26,000 2,200 9% 74200 Mileage 7,135 7,135 0 0% 74300 Transportation 25,525 20,000 -5,525 -22% 74400 Meals Out of Town 5,500 5,500 0 0% 75000 IT Expenses 122,171 148,046 25,875 21% 75100 Computer Hardware 7,125 10,000 2,875 40% 75200 Software 64,552 87,552 23,000 36% 75300 IT Support and Consulting 50,494 50,494 0 0% 76000 Insurance 22,200 24,000 1,800 8% 76100 Insurance - Building 21,000 22,000 1,000 5% 76200 Insurance - W/C 1,200 2,000 800 67% 77000 Facilities 77,401 82,900 5,499 7% 77200 Internet & Telephone 15,400 15,400 0 0% 77300 Utilities 19,800 20,800 1,000 5% 77310 Electric 13,000 14,000 1,000 8% 77320 Gas 4,700 4,700 0 0% 77330 Water 2,100 2,100 0 0% 77400 Repairs and Maintenance 32,530 37,000 4,470 14% 77500 Janitorial Supplies 2,000 2,000 0 0% 77600 Maintenance Contracts 7,671 7,700 29 0% 80000 Tourism Support 203,000 223,000 20,000 10% 80100 Community Event Incentives 120,000 140,000 20,000 17% 80400 Dickson Street Art Court 83,000 83,000 0 0% 90000 800,000 700,000 -100,000 -13% 90100 Bond Payments 700,000 700,000 0 0% 90200 Contribution to Capital Reserves 100,000 0 -100,000 -100% TOTAL EXPENSE 4,300,652 4,158,412 -142,240 -3% Net Revenue/(Loss) 851,020 1,002,788 151,768 18% Funded out of Fund Balance: 77800 FFE - Improvements 1 262,000 1 545,000 283,000 108% Fayetteville A&P Commission Fayetteville Town Center Detail 2023 Budget Adjustment - Proposed Account Number Account Name Town Center 2023 ORIGINAL Budget Town Center 2023 REVISED Budget Variance Revised vs. Original EF % Change Revised vs. Original REVENUE 42000 Rental Income 485,500 485,500 0 0% 42100 Facility Rental 250,000 250,000 0 0% 42200 Rental Items 30,000 30,000 0 0% 42300 Alcohol Sales 97,500 97,500 0 0% 42400 Rental Services 108,000 108,000 0 0% 43000 Event Income 7,500 7,500 0 0% 43400 Other Event Income 7,500 7,500 0 0% 45000 Parking Revenue 26,000 26,000 0 0% 45100 Parking Machine Revenue 11,000 11,000 0 0% 45200 Parking Lease Revenue 15,000 15,000 0 0% 49000 Interest Income 50 50 0 0% 49002 Checking Account Interest 50 50 0 0% TOTAL REVENUE 519,050 519,050 0 0% EXPENSE 50000 Rental/and Event Expenses 238,000 238,000 0 0% 51000 Rental Expenses 208,000 208,000 0 0% 51200 Linens 18,000 18,000 0 0% 51300 Alcohol and Bar Supply 84,000 84,000 0 0% 51310 Alcohol 75,000 75,000 0 0% 51320 Bar Supplies 9,000 9,000 0 0% 51400 Rental Services 106,000 106,000 0 0% 52000 Event Expenses 30,000 30,000 0 0% 52400 Other Event Expenses 30,000 30,000 0 0% 60000 Payroll and Related Expenses 513,591 568,610 55,019 11% 61000 Wages 369,193 403,960 34,767 9% 62000 Payroll Tax Expense 34,095 38,485 4,390 13% 62100 Federal (941) Payroll Taxes 26,580 30,270 3,690 14% 62300 SUTA 7,515 8,215 700 9% 63000 Benefits 39,631 55,493 15,862 40% 63100 Health and Other Employee Insur 29,583 44,689 15,106 51% 63200 Company Retirement Contributio 10,048 10,804 756 8% 64000 Contract Labor 68,000 68,000 0 0% 65000 Payroll Processing Fees 2,672 2,672 0 0% Fayetteville A&P Commission Fayetteville Town Center Detail 2023 Budget Adjustment - Proposed Account Number Account Name Town Center 2023 ORIGINAL Budget Town Center 2023 REVISED Budget Variance Revised vs. Original EF % Change Revised vs. Original 70000 Operating Expenses 418,480 354,020 (64,460) -15% 71000 Marketing 85,421 17,421 (68,000) -80% 71100 Advertising Expenses 2,100 2,100 0 0% 71120 Non -Agency Advertising 2,100 2,100 0 0% 71300 Promotion 70,000 12,000 (58,000) -83% 71310 Marketing Programs 70,000 12,000 (58,000) -83% 71400 Printing 13,000 3,000 (10,000) -77% 71420 Other Brochures 13,000 3,000 (10,000) -77% 71500 Website 321 321 0 0% 72000 Sales and Development 5,100 9,100 4,000 78% 72100 Promotional Items 3,000 3,500 500 17% 72600 Memberships 1,600 1,600 0 0% 72700 Tourism & Client Devel. 500 4,000 3,500 700% 73000 Office and Administrative 26,405 24,655 (1,750) -7% 73100 Office Expenses 15,605 13,855 (1,750) -11% 73110 Office Supplies 2,020 2,020 0 0% 73120 Office Equipment Leases 2,500 2,500 0 0% 73130 Office Equipment Purchases 5,000 5,000 0 0% 73140 Subscriptions 85 85 0 0% 73150 Employee Relations 3,500 2,000 (1,500) -43% 73160 Training 2,000 2,000 0 0% 73170 Postage & Shipping 500 250 (250) -50% 73200 Fees 2,500 2,500 0 0% 73220 Credit Card Fees 2,500 2,500 0 0% 73400 Business Taxes & Licenses 8,300 8,300 0 0% 74000 Travel 10,900 9,100 (1,800) -17% 74100 Lodging 4,700 3,500 (1,200) -26% 74200 Mileage 2,500 2,500 0 0% 74300 Transportation 1 1,300 1,300 0 0% 74400 Meals Out of Town 2,400 1,800 (600) -25% Fayetteville A&P Commission Fayetteville Town Center Detail 2023 Budget Adjustment - Proposed Account Number Account Name Town Center 2023 ORIGINAL Budget Town Center 2023 REVISED Budget Variance Revised vs. Original EF % Change Revised vs. Original 75000 IT Expenses 11,210 14,300 3,090 28% 75100 Computer Hardware 3,000 4,500 1,500 50% 75200 Software 6,410 8,000 1,590 25% 75300 IT Support and Consulting 1,800 1,800 0 0% 76000 Insurance 4,850 4,850 0 0% 76100 Insurance - Building 4,850 4,850 0 0% 77000 Facilities 274,594 274,594 0 0% 77100 Rent 22,600 22,600 0 0% 77200 Internet & Telephone 18,500 18,500 0 0% 77300 Utilities 108,800 108,800 0 0% 77310 Electric 80,000 80,000 0 0% 77320 Gas 22,000 22,000 0 0% 77330 Water 6,800 6,800 0 0% 77400 Repairs and Maintenance 60,000 60,000 0 0% 77500 Janitorial Supplies 30,000 30,000 0 0% 77600 Maintenance Contracts 34,694 34,694 0 0% TOTAL EXPENSE 1,170,071 1,160,630 (9,441) -1% Net Revenue/(Loss) (651,021) (641,580) 9,441 Funded out of Reserves: 77800 FFE Improvements 376,000 376,000 0 0%