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

for for FY2013 – PART I UPDATE: FY2013 – PART I UPDATE: & Close Out of Initial District& Close Out of Initial District

City Council MeetingCity Council Meeting

March 5, 2013March 5, 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 1 ApprovalsFY 2013 Part 1 Approvals

May 23, 2012May 23, 2012 Budget & Finance Committee Budget & Finance Committee June 19, 2012 City Council ApprovalJune 19, 2012 City Council Approval July 01, 2012 Start of FY 2013July 01, 2012 Start of FY 2013 Dec. 31, 2012 Initial TMD Ceased CollectionsDec. 31, 2012 Initial TMD Ceased Collections Feb. 27, 2013Feb. 27, 2013 Budget & Finance Committee Budget & Finance Committee Mar. 31, 2013 Initial SDTMD Corp Operating Mar. 31, 2013 Initial SDTMD Corp Operating

Agreement ends. Agreement ends.

TMD Basics – Initial DistrictTMD Basics – Initial District TMD is citywideTMD is citywide Initial District Not Subject to Prop 26 Initial District Not Subject to Prop 26 Hotels with 70 or more rooms are assessedHotels with 70 or more rooms are assessed Assessment is 2% of gross room rentAssessment is 2% of gross room rent Hotel operators remit assessments monthlyHotel operators remit assessments monthly SDTMD Corporation represents assessed hotelsSDTMD Corporation represents assessed hotels Implements TMD programs per 5 year agreementImplements TMD programs per 5 year agreement

Competitive Application for Competitive Application for Variable FundingVariable Funding

Return on Investment (ROI) analysisReturn on Investment (ROI) analysis Application formatApplication format Process refinementsProcess refinements NotificationNotification Board meetings and presentationsBoard meetings and presentations Scoring and Allocation ProceduresScoring and Allocation Procedures

SDTMD FY2012 Audited ROISDTMD FY2012 Audited ROI Room Room Hotel Hotel

OrganizationOrganization ReimbursedReimbursed NightsNights RevenueRevenue ROIROISD CONVIS Integrated Program BaseSD CONVIS Integrated Program Base $23,761,168 $23,761,168 -- pending 3rd-party reports-- pending 3rd-party reports ----CONVIS: British Air PromotionCONVIS: British Air Promotion $ 185,520$ 185,520 -- pending 3rd-party reports -- pending 3rd-party reports ----CONVIS: PCMA CONVIS: PCMA $ 550,000 $ 550,000 -- pending 3rd-party reports -- pending 3rd-party reports ----SD North CVB BaseSD North CVB Base $ 2,758,443$ 2,758,443 -- pending 3rd-party reports-- pending 3rd-party reports ----Accessible SD: Core Budget Accessible SD: Core Budget $ 75,000 $ 75,000 -- core-- core ----Balboa Park 2015 CentennialBalboa Park 2015 Centennial $ 300,000 $ 300,000 -- pending event -- pending event ----CA State Games CA State Games $ 125,000 $ 125,000 28,877 $3,621,79928,877 $3,621,799 28.98:128.98:1Comp. Group: RR MarathonComp. Group: RR Marathon $ 350,000 $ 350,000 54,410 $9,143,60154,410 $9,143,601 26.12:1 26.12:1Craft Brewers Guild Beer WeekCraft Brewers Guild Beer Week $ 68,191 $ 68,191 3,612 $ 436,835 3,612 $ 436,835 6.41:16.41:1Maritime Museum of SDMaritime Museum of SD $ 100,000 $ 100,000 4,583 $ 621,317 4,583 $ 621,317 6.21:16.21:1SD BayfairSD Bayfair $ 29,000$ 29,000 13,060 $1,683,04213,060 $1,683,042 58.03:158.03:1SD Bay Wine & Food FestSD Bay Wine & Food Fest $ 70,907$ 70,907 6,125 6,125 $1,041,250 $1,041,250 14.68:114.68:1SD Bowl Game AssocSD Bowl Game Assoc $ 450,000 $ 450,000 36,393 $4,231,41436,393 $4,231,414 9.40:19.40:1SD Crew ClassicSD Crew Classic $ 213,400$ 213,400 9,218 9,218 $1,298,934$1,298,934 6.09:1 6.09:1 SD National History Museum – TitanicSD National History Museum – Titanic $ 162,594$ 162,594 8,415 $1,265,111 8,415 $1,265,111 7.78:17.78:1SD Sports Commission SD Sports Commission $ 561,800 $ 561,800 49,457 $6,640,95649,457 $6,640,956 11.82:111.82:1SD Sports Commission - Youth SoccerSD Sports Commission - Youth Soccer $ 32,000 $ 32,000 3,825 3,825 $$ 532,555 532,555 16.65:116.65:1SD Sports Commission - SDSEA-RC44 SD Sports Commission - SDSEA-RC44 $ 300,000 $ 300,000 16,145 $1,952,57616,145 $1,952,576 6.51:16.51:1

FY13 Part I:Funding Revisions FY13 Part I:Funding Revisions Organization Organization ProjectedProjected AdjustmentsAdjustments RevisedRevised SDTMD Funds AvailableSDTMD Funds Available $$ 17,839,59417,839,594$$ 1,646,6161,646,616 $$

19,486,21019,486,210

ConVis Fixed Base 50%ConVis Fixed Base 50% $$ 8,072,354 8,072,354$$ 938,883938,883 $$ 9,011,2379,011,237 SD North CVB Fixed Base 10%SD North CVB Fixed Base 10% $$ 1,962,4951,962,495$$ 218,796218,796 $$ 2,181,2912,181,291 Variable DistributionsVariable Distributions

Various approvedVarious approved $$ 1,176,5501,176,550$$ ------ $$ 1,176,5501,176,550 ConVis incrementalConVis incremental $$ 3,625,0003,625,000 $$ 306,048306,048 $$

3,931,0483,931,048 ConVis JapanConVis Japan $$ ------ $$ 250,000250,000 $$

250,000250,000 ConVis Film CommissionConVis Film Commission $$ ------ $$ 100,000100,000 $$

100,000100,000 San Diego Crew ClassicSan Diego Crew Classic $$ 22,89022,890 $$ 90,11090,110 $$

113,000113,000 Balboa Park Centennial 2015Balboa Park Centennial 2015 $$ ------ $$ 72,59472,594 $$

72,59472,594 Previously unallocatedPreviously unallocated $$ 333,442333,442 $$ (333,442)(333,442) $$

------

Total Variable DistributionsTotal Variable Distributions $$ 5,157,8825,157,882 $$ 485,310485,310 $$

5,643,1925,643,192

Opportunity/CatastropheOpportunity/Catastrophe $$ 2,143,4932,143,493 $$ (268,569)(268,569)

$$ 1,874,9241,874,924

AdministrationAdministration $$ 503,370503,370 $$ 272,196272,196 $$

775,566775,566

Cumulative Recap of District

Revenue:•TMD Assessments $ 126,852,111•Interest income on pooled investments $ 698,710Total TMD Funds $127,550,821 100.00%

Expenses:Funding Allocations:• ConVis (50% of assessments) $ 63,426,055 • SD North CVB (10% of assessments) $ 12,685,211• Competitive Annual Applications $ 45,020,123 Total funding allocations $121,131,389 94.97%Administration:•SDTMD Administration $ 2,940,390•City Administration $ 1,604,118•Opportunity/Catastrophe $ 1,874,924 Total administration $ 6,419,432 5.03% Total Expenses $127,550,821 100.00%

QUESTIONS?QUESTIONS?