September 15, 2015

Annual ReportCity of Avalon

Annual Report

About the OrganizationTransient Occupancy Tax & the DMOFY 2014-15: The Year in Review Highlights & Audited Financial

ReportingFY 2015-16 Highlights Budget Chart of Accounts RFPs Demographic Profile and Visitor

Spending Officers & Directors

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 standards Staff of 10 (7.5 ftes)

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 approved dedication of 22% of TOT to Destination Marketing via Chamber of Commerce & Visitors Bureau

2004 Voters approved increase 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.

A Year of Exceptional Change

The Year in Review: Highlights So long Wayne! IRS Executive Search Marketing Conference Hello Jim! New Year’s Eve Staff Retreat National Travel & Tourism Week WhateverUSA Board Retreat

We also said so long to Elaine Vaughan and Bon Voyage to Juliet Walters, two valued and

long-time board members.

2014-15Catalina 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

2014-15Catalina Island Chamber of Commerce & Visitors Bureau

Destination Marketing

The Year in Review: Highlights

Marketing & PR

2014-15CatalinaChamber.com

The ever increasing importance of mobile devices from planning to booking

73%

16%

11%

66%22%

12%

53%35%

12%

2012-2013 2013-2014 2014-2015

Desktop MobileTablet

Organizational Assessment

The Year in Review: Highlights

Contractors Weblink (CMS Database)---RFP Trinet (Websites) Mix Marketing (Print Collateral) Certified (Brochure & Video

Distribution) Xceptional Music (Concerts & New

Years Eve) EXL Media (Media Buying) Renegade Racing (Triathlon) Whistler Creative (Graphic Design) Cruise Industry Liaison Catalina Island Business Services

(Computers/network)

2014-15Catalina Island Chamber of Commerce & Visitors Bureau

Budget & Finance

The Year in Review: Highlights Budget & Finance IRS Audit (2011) Audited 2013-14 Financials Copyright Settlement Success Measures Transient Occupancy Taxes Occupancy Admissions Taxes Wharfage Cruise Passengers Cross Channel Carriers Fireworks Audited 2014-15 Financials

2014-15Catalina Island Chamber of Commerce & Visitors BureauBudget $1,532,889• TOT $1,074,777*• Destination Marketing/Events

$1,142,324***Based on audited financials**Conservative allocations

Tax RevenuesBased on numbers supplied by City of Avalon

FY – July -May Taxes

TOT $4,355,497 Admissions Taxes $734,338.00 Sales Tax $616,172.00Cross Channel Wharfage $2,846,374 Cruise 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

2014-152013-142012-132011-122010-11

Hotel Occupancy0

10

20

30

40

50

60

70

Hotel Occupancy July - May

2014-15 2013-14 2012-13 2011-122010-11

Audited FinancialsTotal Revenue $1,456,000TOT Revenue from City $1,074,800 = 74% of total revenue

Expenses

Marketing $683,019 Public Relations $86,555.Visitor Services $166,743 Information Booklets $205,857Management & General Operations $298,767. Total Expenses $1,440,941

WhateverUSA The Year in Review

Events7.3 million Facebook fans7 Million total applications1.7 Million applications from just the Los Angeles DMA44,000 Instagram images1,365 millennial guests on the island350 day trippers2,000 locals @ $5.0026 hotels, 6 barges, 0 wasteDiplo premier videoSnoop DoggVideos, TV Commercials, Adweek, USA Today, Kentucky GentlemanUber Miles

Organizational Assessment

The Year in Review Staff & Board Retreats

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

Getting Involved

Fiscal Year 2015-16 Membership Drive Volunteer Program Visitor Guide Advertising Banner Ads Features & Coupons Thursday Updates Winter Holiday seasonal

promotions/events Committees Membership, Nominating, Marketing,

Events, Cruise Industry

310.510.1520info@catalinachamber.comCommitteesVolunteerVisitor Comment FormsMarketing opportunitiesRFPs

Fiscal Year 2015-16

Fiscal Year 2015-16 Budget $1,596,388 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

Fiscal Year 2015-16

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, Radio 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 Jim Luttjohann, Catalina Island Chamber of Commerce & Visitors

Bureau

Officers John King, Chair Bill Paige, Past Chair Julie Bovay, Chair Elect Dave Howell, Chief Financial Officer Dave Stevenson, Marketing Chair

Board & Executive Committee

Annual PresentationQuestions?

Thank You!