Composition & Rules of Operation of
HCTDA 1% Zip Code Subcommittees
Section 1 – HCTDA 1% Zip Code Subcommittees created
The Haywood County Tourism Development Authority 1% Zip Code Subcommittees were established and appointed by the Haywood County Board of County Commissioners in March 2008.
The HCTDA 1% Zip Code Subcommittees were first established and appointed as a result of legislation authorizing Haywood County to levy an additional one percent occupancy tax to be distributed into five separate zip code areas of the county based on the collection area from which the proceeds were collected.
State Law Reference: Session Law 2007-337; House Bill 1013
Section 2 – Composition & appointment of members
Zip code areas collecting less than $50,000 have a three member subcommittee, consisting of members from within the appropriate zip code. Zip code areas collecting $50,000 or more would have a five membersubcommittee, consisting of members from inside the appropriate the zip code. Based on projections/collections, the 28751 and the 28785/28786 zip code collection areas would have a five member subcommittee and the 28716, 28745, 28721 zip code collection areas would have three member subcommittees.
The Haywood County Commissioners will request the names for the subcommittees (five nominees for the five person subcommittees and three nominees for the three person subcommittees) from Lake Junaluska Conference & Retreat Center and the four Municipal Governments.
Section 3 – Terms of members & vacancies
The HCTDA 1% Subcommittee members are appointed by the Haywood County Commissioners for a two-year term following nominations from the appropriate Municipal Government or the Lake Junaluska Conference & Retreat Center.
The HCTDA 1% Subcommittee members cannot serve for more than three consecutive two year terms.
Vacancies in the Subcommittees shall be filled for the unexpired term by a nomination from the appropriate Municipal government or the Lake Junaluska Conference & Retreat Center and then appointed by the Haywood County Commissioners.
Section 4 – Compensation
HCTDA 1% Subcommittee Members will serve without compensation.
Section 5 – Meetings; Chairman
The HCTDA 1% Subcommittees shall meet as deemed necessary based on occupancy tax collections. Times and location of meetings may be designated by the Subcommittee Chairman.
The HCTDA 1% Subcommittees shall appoint from its membership a chairman for the orderly conduct of its business.
Section 6 – General powers and duties
The five HCTDA 1% Subcommittees shall receive, review and recommend funding allocations for all eligible applications received. Recommendations for funding are to be submitted to the HCTDA Executive Director for approval by the HCTDA Board of Directors and for inclusion in the HCTDA annual budget. The law states “based on recommendations from and in consultation with each of the five collection areas, the Authority shall use at least two thirds of the funds in each account to promote travel and tourism and the remainder for tourist related expenditures in each of the collection areas.”
Section 7 – Conflict of Interest; Code of Conduct & Ethics
No member of the HCTDA 1% Zip Code Subcommittee shall use his/her position to benefit directly or indirectly from the 1% funds, such action being regarded as a conflict of interest. It shall be regarded as a conflict of interest for a member to vote to recommend HCTDA 1% funds directly to or for his/her benefit personally (to include family members), or to or on behalf of a company, committee or group (excluding general membership) in which he/she is in any manner interested or concerned, or in which he/she has a financial interest. Action under GS 14-234 may be initiated upon Authority approval. Should action by the HCTDA 1% Zip Code Subcommittee appear to indirectly benefit a member or a company or group in which he/she is in any manner interested as particularly set forth in this paragraph, a vote on such action shall be recognized as having the potential for a conflict of interest and such member shall voluntarily excuse himself/herself from participating in such vote. Should such member decline or fail to voluntarily excuse himself/herself in such instance, the Authority may vote to excuse the member from voting on the issue or nullify previous votes determined by the Authority to have had the potential for a conflict of interest.
All HCTDA 1% Zip Code Subcommittee members must conduct themselves in a manner of highest integrity. Conduct unbecoming a member of the HCTDA 1% Zip Code Subcommittee shall result in a review of such conduct by the members of the Authority. A motion carried by a majority vote to remove for cause shall result in a recommendation by the Authority to the Haywood County Commissioners for removal of such HCTDA 1% Zip Code Subcommittee member. No individual HCTDA 1% Zip Code Subcommittee members may represent the 1% Zip Code Subcommittee or the Authority unless authorized by formal action of the members of the 1% Zip Code Subcommittee or the Authority.
Section 8 – Disbursement of 1% funds; Accounting of 1% funds
Funds appropriated by the Haywood County Tourism Development Authority and budgeted to the 1% Zip Code Areas shall be disbursed by the HCTDA Executive Director upon receipt of proper invoices and back-up documentation per approved appropriation.
1% funds collected by Haywood County are disbursed to the HCTDA monthly. A monthly report is prepared and distributed for each 1% zip code area. The 1% appropriations are inserted as line items in the HCTDA master budget and labeled as 1% to ensure continuity in accounting for all revenue and expenses. The HCTDA Certified Public Accountant will administer all funds allocated to and spent for each project. The HCTDA funds (both 3% & 1%) are audited annually by the accounting firm contracted by Haywood County and the HCTDA.
Section 9 – Submission of recommended appropriations to the HCTDA
After each HCTDA 1% Zip Code Subcommittee meeting and within the designated timeline as per the HCTDA Executive Director, a representative of the 1% Subcommittee shall submit in writing to the HCTDA Executive Director, all recommendations for funding and any stipulations that may apply to the funding recommendations.