Numbers Not Aligned to Contract Requirements

As reported in the Roanoke Times NRV Current on February 1, there have been some questions about how special tax funds have been used by the Tourism Development Council (TDC).  The local chamber sought out and entered into contracts with Blacksburg, Christiansburg and Montgomery County to increase tourism through this new organization. 

Using that article's numbers, expenses as initially reported simply don't align with how the funds were to be allocated between tourism marketing, research and development (including local grants), and administrative costs. 

	Mktg	R&D	Admin
Photography	500
Advertising	40877
Chamber Reimbursement			19752
Check Charge			50
Check Printing			79
Conferences/Mtg	10126
Creative Services	3700
Dues/Memberships	1685
Equipment			14475
Event Promotion	676
Furnishing			443
Interfund Transfers			33292
Miscellaneous			55
Payroll Expenses			46715
Postage			2741
Professional Fees	1414
Promotional Items	217
Relocation			3431
R&D		9750
Signage	1250
Software			2137
Supplies			1357
Training/Scholarship	285
Travel	5113
Visitor Center Deposit			2500
Visitor Center Maint			6500
Web Site	634
Totals	$66,477,	$9,750,	$133,527
% by Category	16.98%	2.49%	34.10%
Contracted %	55.00%	25.00%	20.00%

The allocation, above, may not synch up with how these figures appear on the TDC books, but this example gives the benefit of the doubt by placing conferences, travel and membership fees under Marketing instead of the Administrative category. 

Note that as of the date these numbers were reported, there was $181,783 being held unspent in the TDC account, as new payments from the towns and the county continue. 

Spending $140,000 of these reserves on marketing would bring those expenses up to 53%, yet even if the remaining $41,783 was spent on R&D it would only bring that category up to 13%.  This means Administration expenses remain 14% above the 20% allocated (total of 34%), before any more is spent in this category.  One argument in support of this initiative was that overhead costs (Administrative expenses) would be less by running this through the chamber -- yet the numbers to date don't support this outcome. 

Also notable is that two indistinct line items -- Chamber Reimbursement and Interfund Transfers -- represent nearly 13.5% of the total expenses to date.  Just what do these two line items represent?  Are these expenses actually  Administrative, or should they be spread over all three categories?  Word is that these are to be re-categorized, and when this occurs the percentages should align closer to contracted goals.  In 18 months of funding, 12% or $46,715 has been spent on payroll expenses -- for a part time Visitor's Center employee and stipends for chamber execs.   

To review, a tourism specific website and promotional materials were promised by Fall 2006 -- and should be launched by late Spring 2008.  The chamber's website provides a tourism grant application, but no information about the TDC board nor when it meets.  Based on communication snafus, it appears TDC member roles haven't been well defined either, with the funding sources ultimately controlling the flow of information. 

Compare this initiative's progress to that in nearby Botetourt County -- dollars spent, outcomes or results, and time between ideas and implementation.    Look at additional tax dollars spent by Blacksburg on numerous economic or tourism related initiatives (over and above the 1% it also contributes to the chamber's initiative), or that in the cities of Radford, Salem and other areas in the Roanoke or NRV.  You get a picture of  mature competition tapping into the tourism industry just outside of Christiansburg's borders in neighboring jurisdictions and regionally.

As the largest contributor to this initiative, Christiansburg Town Council has been wise to press for details -- and results.  It's been funding this program for three fiscal years now, and performance becomes a valid point.    Its collective economic development and tourism eggs are in this one basket, represented by one-seventh of the lodging tax it allocates to the TDC. 

If the TDC does not deliver, it will be time to consider how to pursue the charting of a better course.   Growing tourism and keeping dollars spent by the public in the local economy should remain a primary objective, as tourism revenues and related state sales/meals tax proceeds do take some pressure off of raising taxes for many other Virginia jurisdictions. 

You may not be able to believe everything you see on television or read in a newspaper, but you should understand funding sources have a right to expect better results on behalf of their constituents.  Patience only goes so far.