SAN DIEGO TOURISM MARKETING DISTRICTSAN DIEGO TOURISM MARKETING DISTRICTREPORT OF ACTIVITIES REPORT OF ACTIVITIES

for for FY2013 – PART II: FY2013 – PART II:

City Council MeetingCity Council Meeting

March 28, 2013March 28, 2013

Lorin Stewart, SDTMD CorporationLorin Stewart, SDTMD Corporation

Jere Batten, CPA, CFE, Batten Accountancy, Inc.Jere Batten, CPA, CFE, Batten Accountancy, Inc.

FY 2013 PART II:

Period of Collections:January 1, 2013 – May 30, 2013

Period of Incurred Expenditures:FY 2013 Q4

(April 1, 2013 – June 30, 2013)

NEW DISTRICT MANAGEMENT PLANNEW DISTRICT MANAGEMENT PLAN• Reconstructed to Accommodate PROP 26Reconstructed to Accommodate PROP 26• Refined District Created for Assessed HotelsRefined District Created for Assessed Hotels• SDTMD Contractor Funding Not GuaranteedSDTMD Contractor Funding Not Guaranteed• Annual Distribution:Annual Distribution:

• 90% Sales & Marketing Programs90% Sales & Marketing Programs• 5% Contingency5% Contingency• 5% Admin including fully loaded City Fees5% Admin including fully loaded City Fees

• Two Major Benefit Categories CreatedTwo Major Benefit Categories Created– Benefit Category A: Benefit Category A:

• TMD Meeting & Group Sales / Consumer Direct Sales & MarketingTMD Meeting & Group Sales / Consumer Direct Sales & Marketing• Payor Universe = Lodging businesses in City of SD with thirty (30) rooms or morePayor Universe = Lodging businesses in City of SD with thirty (30) rooms or more• Assessment @ 1.45%Assessment @ 1.45%**

– Benefit Category B: Benefit Category B: • Destination Marketing with Specific Call to Action for TMD Lodging BusinessesDestination Marketing with Specific Call to Action for TMD Lodging Businesses• Payor Universe = All Lodging Businesses in City of SDPayor Universe = All Lodging Businesses in City of SD• Assessment @ 0.55%Assessment @ 0.55%**

* * All TMD lodging businesses of 30 or more rooms pay Categories A + B for total assessment of 2%All TMD lodging businesses of 30 or more rooms pay Categories A + B for total assessment of 2%

Benefit Category ABenefit Category A

• A1A1- Meeting and Group Sales & Marketing Programs - Meeting and Group Sales & Marketing Programs and TMD Consumer Direct Sales & Marketing Programsand TMD Consumer Direct Sales & Marketing Programs(DMO)(DMO)

• A2A2 – Sub-Regional Targeting – Sub-Regional Targeting

• A3A3 – Competitive Targeting – Competitive Targeting

• Payor Universe = Lodging businesses in City of SD with Payor Universe = Lodging businesses in City of SD with

thirty (30) rooms or more assessed at 1.45%thirty (30) rooms or more assessed at 1.45%

Benefit Category Benefit Category A3 : Competitive Targeting* A3 : Competitive Targeting*

See Application / Guidelines - Appendix 4 See Application / Guidelines - Appendix 4

• A1.1 - Hotel Meeting SalesA1.1 - Hotel Meeting Sales

• A1.2 - Event Management and Group Sales Dev.A1.2 - Event Management and Group Sales Dev. • A1.3 - Tourism Development including Travel & TradeA1.3 - Tourism Development including Travel & Trade

• A1.4 - Group Meeting Direct MarketingA1.4 - Group Meeting Direct Marketing

• A1.5 - Consumer Direct Sales & Marketing Programs A1.5 - Consumer Direct Sales & Marketing Programs

* Payor Universe = Lodging businesses in City of SD with thirty (30) rooms or more * Payor Universe = Lodging businesses in City of SD with thirty (30) rooms or more assessed at 1.45%assessed at 1.45%

Benefit Category BBenefit Category B Destination Marketing (DMO)Destination Marketing (DMO)

• Benefit Category B advertising campaigns and Benefit Category B advertising campaigns and earned media to drive sales demand for San Diego earned media to drive sales demand for San Diego TMD lodging businesses.TMD lodging businesses.

• Payor Universe = Payor Universe = AllAll Lodging Businesses in City of Lodging Businesses in City of SD assessed at 0.55%.SD assessed at 0.55%.• Includes revenue from businesses with 1-29 rooms*; andIncludes revenue from businesses with 1-29 rooms*; and• Includes revenue from businesses with 30 rooms* or more.Includes revenue from businesses with 30 rooms* or more.• % estimates to be provided by City% estimates to be provided by City

• All campaigns must have proportional other-source All campaigns must have proportional other-source funding reflective of benefits.funding reflective of benefits.

FY2013 - Part II – Budget FY2013 - Part II – Budget SummarySummary

Estimated Funds AvailableEstimated Funds Available $11.66 M$11.66 M TMD AssessmentsTMD Assessments $11.66 M $11.66 M

FY2013 CarryoverFY2013 Carryover NANA

FY2013 InterestFY2013 Interest NANA

AllocationsAllocations

Category ACategory A Variable Distributions Variable Distributions $ 7.59 M$ 7.59 M

Opportunity/Catastrophe reserveOpportunity/Catastrophe reserve $ 422 K$ 422 K

SDTMD & City AdminSDTMD & City Admin $ 422 K$ 422 K

TOTAL CATEGORY ATOTAL CATEGORY A $ 8.43 M$ 8.43 M

Category BCategory B

Destination Marketing Destination Marketing $ 2.90 M$ 2.90 M

Opportunity/Catastrophe reserveOpportunity/Catastrophe reserve $ 161K$ 161K

SDTMD & City AdminSDTMD & City Admin $ 161K$ 161K

TOTAL CATEGORY BTOTAL CATEGORY B $ 3.23 M$ 3.23 M

FY2013 Part II – BudgetFY2013 Part II – BudgetBy ContractorBy Contractor

CategoryCategory SDTMDSDTMD SDTASDTA VARIABLE VARIABLE TOTALTOTALA1A1 $2,629,596 $2,629,596 $ 2,629,596$ 2,629,596A1.1A1.1 $1,197,634 $1,197,634 $ 1,197,634$ 1,197,634A1.2A1.2 $ 279,525 $ 279,525 $ 279,525$ 279,525A1.3A1.3 $ 388,918 $ 388,918 $ 388,918$ 388,918A1.4A1.4 $ 629,518 $ 629,518 $ 629,518$ 629,518A1.5A1.5 $2,299,946 $2,299,946 $ 2,299,946$ 2,299,946A2A2 $ 165,053 $ 165,053 $ 165,053 $ 165,053ContingencyContingency $ 421,677 $ 421,677 $ 421,677$ 421,677Admin & OpsAdmin & Ops $421,677$421,677 $ 421,677 $ 421,677Total ATotal A $421,677 $421,677 $4,960,594 $4,960,594 $ 3,051,273 $ 3,051,273 $ 8,433,544 $ 8,433,544

BB $2,586,400 $2,586,400 $ 317,399 $ 317,399 $ 2,903,799$ 2,903,799Contingency Contingency $ 161,322 $ 161,322 $ 161,322$ 161,322Admin & OpsAdmin & Ops $161,322 $161,322 $ 161,322$ 161,322Total BTotal B $161,322 $2,586,400 $161,322 $2,586,400 $ 478,721 $ 478,721 $ 3,226,443$ 3,226,443TotalTotal $582,999$582,999 $7,546,994 $7,546,994 $3,529,994 $3,529,994 $11,659,987$11,659,987

FY2013 Part II – BudgetFY2013 Part II – BudgetSDTMD AdministrationSDTMD Administration

DescriptionDescription Category ACategory A Category BCategory B TotalTotal

PersonnelPersonnel $ 37,305$ 37,305 $ 14,271$ 14,271 $ 51,576$ 51,576

Contract SvcsContract Svcs $163,825$163,825 $ 62,675$ 62,675 $226,500$226,500

OverheadOverhead $ 9,709$ 9,709 $ 3,714$ 3,714 $ $ 13,42313,423

City Admin City Admin $210,838$210,838 $ 80,662$ 80,662 $291,500$291,500

TotalTotal $421,677$421,677 $161,322$161,322 $582,999$582,999

QUESTIONS?QUESTIONS?