THE DALLAS CONVENTION & VISITORS BUREAU

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VISITDALLAS FINANCE COMMITTEE MEETING MINUTES OF MAY 14, 2018

Members Present: Robbie Briggs, Chair Arthur Hollingsworth

Tyrus Sanders Carol West

Members Absent John Ackerman

Dave Brown

Staff Present: Sherry Andrus

Matthew Jones

I.

Greg White Joyce Williams

Phillip Jones

Call to Order/Welcome Robbie Briggs called the regular meeting of the Finance Committee to order at 2:00pm, Monday, May 14, 2018. The meeting was held in the President’s Conference Room.

II.

Approval of February 26, 2018 Minutes The Minutes of February 26 2018 were unanimously APPROVED as presented.

III.

HOT Collections/Smith Travel Research Matt Jones reported the Hotel Occupancy Tax (HOT) collections are slightly down year to-date; while occupancy is down slightly overall demand and rate are up. Overall revenue change is up 7.24%. Mr. Jones noted while the HOT tax is down the DTPID collections are slightly up due to the increase in supply for DTPID projections. He briefly reviewed the STR 28-day and Top 25 Markets reports. He also noted that we are just now seeing how the DTPIS effects have helped Dallas outpace our competitive set.

IV.

Monthly Summaries Matt Jones noted that the dues is below budget because the Dallas Tourism Public Improvement District will begin to begin to pay the VisitDallas membership dues for the all DTPID members and those funds will be paid shortly.

V.

Financials Statement of Activities As of April 30,2018, Total revenue and support is $26,8044,104, Total program Services expenses are $23,599,980 and Total Non-Program Expense $2,046,603 which brings the Change in Net Assets to $1,157,520 Adding this to

FINANCE COMMITTEE MINUTES OF MAY 14, 2018

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the Net Assets of $27,195,790 at beginning of year brings the End of Year Net Assets to 28,353,311. Balance Statement As of April 30, 2018, Total Assets were $38,396,385 and Total Liabilities were $10,043,076 which brings the Total Fund Balance to $28,353,310 resulting in a Total Liabilities & Fund Balance of $38,396,386. Matt Jones also explained to the members that most of the change in net assets and fund balance are for Future and DTPID Obligations and does not represent a surplus of funds. VI.

Unfinished/New Business President/CEO Report Phillip Jones reported Citywide bookings should be on pace by the end of the third quarter. Some of the pending definite groups are: • Women’s Foodservice Forum (2022 & 2023) • Confidential Pharmaceutical (2018) • American Public Assn (2026) • Society of Petroleum Engineers (2025) • AT&T Summit (2019) • Jansen Pharmaceutical (2018) • Asian American Hotel Owners Association (2021) Phillip Jones discussed the recent successful National Rifle Association (NRA) meeting held at the Kay Bailey Hutchison Convention Center and reminded the members that Dallas made the decision to hold off on future commitments until the 2018 meeting was held. After a brief discussion, the Finance Committee unanimously APPROVED a sales team visit with the NRA to discuss potential future commitments. Phillip Jones gave an update on the privatization of the convention center. RPF’s have been sent out, a panel will review the RFP’s and decide on the company by October. Phillip Jones will meet with the City of Dallas CFO to discuss ways to finance an expansion for the KBHCC by re-financing the current debt. After a brief Committee discussion, Tyrus Sanders agreed to attend the meeting with Phillip Jones. Phillip Jones briefed the committee on the Thomas Jefferson Monticello exhibit. Working with the African American Museum on the event that will run during the State Fair of Texas to the end of December. VisitDallas has agreed to assist will assist with the marketing of the event. Bishop T.D. Jakes has agreed to Chair the Host Committee.

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VisitDallas/CEO Goals Update Matt Jones noted the following VisitDallas/CEO Goals update:

Goal

1.

Weight

YTD

5

Pace

Projected

Generate additional economic impact for the City of Dallas and DFW Region by maximizing visitors through Sales, Sports, Marketing,and Tourism (internationaland domestic) efforts utilizing Diversity & Inclusionbest practices

•

Meet or exceed 20 citywidebookings

15%

•

Meet or exceed 2,200,000 room night bookings

35%

2. Continue process to revamp traditional visitor center concept into the Dallas Experience Center (CDX) (an environment that exceeds visitor expectations, becomes an integral part of organization activities, provides a valuable resource to other stakeholders, and helps VisitDallas achieve additional strategic objectives). 3. Work with the City of Dallas, the hotel community, and other stakeholders to begin to develop a phased implementation plan of the Market & Future Strategy Study, including any additional research or analysis that may be required.

4. Continue to meet with statewide and local elected officials, community leaders, and CEOs to increase the awareness and perception of VisitDallas. As part of local awareness and advocacy building efforts, identify a tieline and develop a campaign strategy to grow support and obtain approval for Metric 3 above Projected Total

↓

100.0%

↓

100.0%

20%

✓

100.0%

10%

✓

100.0%

20%

✓

100.0%

558,563

100.0%

NOTE: Items (1a.) and (1b.) are quantitative and will be calculated using the

mathematical formula. Items (2.), (3.), and (4.) are either accomplished or not accomplished.

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The booking segment breakdown by departments: • Express – 10% • Self-Contained – 18% • Citywide – 22% • Sports – 15% • Tourism – 35% Proposed FY 2018-19 Budget Discussion Matt Jones reviewed the process beginning with the Executive Management Team prioritizing their needs for next year and aligning those needs with the Strategic Plan. He showed how the expenditures have grown since 2012 but even with the growth, only $4.8M is available in discretionary funds for VisitDallas. The Committee discussed programs and people growth before presenting options for funding new sales positions. During this discussion, Robbie Briggs asked Greg White to chair and Joyce Williams to co-chair a subcommittee to work on metrics for the 2019 Metrics. Matt Jones presented the following proposed FY2018-19 Budget for the Committee’s review. A final recommendation will be presented at the June Meeting for approval: FY 18 FY19 Change HOT $18,449,378 $18,971,235 2.8% DTPID 16,788,934 17,453,536 3.9% Dues 922,500 950,175 3.0% Spons/Part 589,375 607,056 3.0% Other 531,875 547,831 3.0% TOTAL $37,282,062 $38,529,833 $1,247,771 Also noted that the above reflects almost half of the increase is to the DTPID, people costs at about $11.7M, and $500K for merit and changes. Experience Center and VisitDallas Task Force Matt Jones updated the Committee that the Experience Center and VisitDallas Task Force is progressing. Phillip Jones updated the Committee on a new site at Klyde Warrren Park. The Klyde Warren Park Foundation has a plan to build over Woodall Rogers in front of the Hunt Building and there would be approximately 10,000sq ft for a possible Experience Center. Working on having a Audit Recommendations Matt Jones reviewed the Internal Audit Control recommendations that came from the 2017 Financial Audit. Mr. Jones said some policy changes are being made to address the control issues where possible.

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The next meeting of the Finance Committee is scheduled for Monday, June 18, 2018 at 2:00pm in the President’s Conference Room. There being no further business to come before the Committee, the meeting adjourned at 3:45pm.

____________________________ Sherry Andrus

May 16, 2018