Advertising & Promotion Commission — Fayetteville, AR
Date: 2025-07-28
Time: 14:00

Fayetteville Advertising and
 Promotion Commission
 July 28, 2025

 Location: Fayetteville Town Center, 15 W. Mountain Street


 Commissioners: Elvis Moya, Chair, Tourism & Hospitality Representative
 Katherine Kinney, Tourism & Hospitality Representative
 Elliot Hunt, Tourism & Hospitality Representative
 Chrissy Sanderson, Tourism & Hospitality Representative
 Sterling Hamilton, Commissioner at-large
 Sarah Bunch, City Council Representative
 Mike Wiederkehr, City Council Representative

 Staff: Ryan Hauck, CEO

 Agenda

I. Call to order at 2:00p.m.

II. Reports

 A. CEO Report, Ryan Hauck. An executive overview of the previous month

 B. Financial Report, Jennifer Walker, VP of Finance

 C. 2024 Audit Presentation, Cynthia Burns, CPA Forvis Mazars

 D. Marketing Report. Sarah King, VP of Marketing and Communications, Anne Davis, Outright


III. Old Business

 A. Review and approval of June meeting minutes.

 B. Discussion. Favoriteville Festival Fund.
 Program draft included. Ryan Hauck, CEO

IV. New Business

 A. Vote. Updating Bank Account Authorized Signers. Jennifer Walker, VP of Finance
 Staff recommends, in accordance with the commission’s financial policies, a vote to
 authorize CEO Ryan Hauck as a signer with full authority on all four bank accounts.
 Memo attached.

 B. Discussion. Changes to Bylaws to include CEO transition policy and Freedom of
 Information Act updates. Jennifer Walker, VP of Finance
 Memo and Proposed Bylaw updates included.




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 C. Discussion. Community Incentive Fund Approval Process – CEO, Ryan Hauck
 Staff recommendation to modify the approval process for Community Incentive
 Fund payments. Proposed change would require Commission approval for all
 future payouts.
 Memo and report of 2025 year-to-date disbursements attached.

 D. Discussion. Walker Stone House lease. Jennifer Walker, VP of Finance

 E. Additions to the agenda may be added upon request from a majority of the
 commissioners.

V. Good of the Order / Adjourn

VI. Meet & Greet with City of Fayetteville staff immediately following the meeting, FTC Lobby




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Executive Updates
June Updates for July A&P Commission Meeting

  Executive Updates

 Ryan Hauck, CEO has joined the Experience Fayetteville team on July 21, 2025


  Marketing and Communications
 Media Engagement
 • Mobile Visitors Center deployed at NWA Pride festival – downtown maps and “All
 are Welcome” hand fans

 Publications & Visitor Materials
 • Events Calendar – 507 events in June.
 • New streetlight banners designed by Brittany Phillips Design featuring 6
 Downtown Fayetteville messages were installed the first week of July. Wooo Pig
 Sooie banners designed by Chris Lankford will be installed on Dickson Street in
 the fall.
 • A newly designed Fayetteville Ale Trail guide will also be published this fall. The
 guide will feature 9 Fayetteville Craft Breweries. A new Ale Trail section on our
 website will debut at the same time, and the separate Ale Trail website will be
 retired.

 Media Campaigns
 • Fayetteville Restaurant Week will take place July 20-26. Enrolled 75
 restaurants. Lots of engagement planned with local media outlets.

  Sales and Tourism Activity

 • Sales team assisted 8 events in Fayetteville in June, including:
 o NWA Naturals Championship – 300 attendees; Economic Impact est. $75k
 o Hazel Valley Rally – 500 attendees; Economic Impact est. $98k.
 o Ozark Valley Tri – 300 attendees; Economic Impact est. $144k
 o Southern Amateur Golf Championships – 300 attendees; Economic Impact
 est. $277k
 o Advantage 5v5 Soccer Tournament – 500 attendees; Economic Impact est.
 $104k
 • Ozark Music Initiative – Chamber Music Festival – 400 attendees
 • Tina Archer-Cope, VP Sales began CDME program

 Performance Metrics
 • LinkedIn Growth – +137 new followers in last 45 days, reaching 5,142 total
 followers.
 • Hotel Occupancy (June 2025) – 73.4% (-13% YoY).
 • Average Daily Rate (ADR) (June 2025) – $138.81 (+1% YoY).


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 • Visitor Center Traffic (June 2025) – 1,099 visitors (-38% YoY)
 o Visitors from Spain, France, Ireland and Brazil


 Special Events:
 • Razorback Baseball Super Regionals
 • NWA Pride Festival weekend
 • Walmart Shareholders week
 • Check out the Experience Fayetteville Calendar of Events for more!


 Destination Services
 • Julie Pennington, VP Dest. Services attended Marketing College in Macon,
 GA
 • Grand Re-Opening of Candlewood Suites
 • Welcome Steve Harrelson, Tourism Services Coordinator!
 New restaurant welcomes –
 • Goat Lab Brewing coming – taproom and restaurant coming in August
 • Bloom Cheese Collective is now open at 914 N College Ave
 • Sicaru Coffee now open at 716 W Sycamore St
 • Queen Donuts – now serving up donuts and cronuts at 2227 MLK Jr Blvd
 • Saying goodbye to Nomads Southtown


Downtown Fayetteville Coalition
 Sundays on the Square will return on August 24th noon – 4pm with a music lineup
 curated by On the Map and music themed activities and vendors.


Fayetteville Town Center

 June Events - hosted 21 events
 • Notably, Dream Big Charity Gala supporting the NWA Children’s Safety Center

 Operations updates
 • Working with Legacy Church on Airwall project logistics




 4
 2025 Monthly A&P Tax Collections**
 $405,262 5.93%

 June Collections $369,258 5.58%
 (May Activity)
 $387,971
 $401,088 -3.15%
 -3.27%
 $69,814 + $389,612 $416,573$448,150 -4.31%
 0.44%
 Lodging Restaurant
 $410,352 $465,579 -6.09%
 1.87%
 $27,920
 Prior Dues Collected $444,020 $487,346 0.89%
 4.56%

 $419,784 2.09%

 $487,346 $394,928 1.89%
 Total HMR Collected
 $453,844 11.86%

 $476,619 3.24%
Previous YTD (Jan-Jun) HMR A&P Tax Collection Totals
2021 2022 2023 2024 2025 $546,090 24.04%
$1,834,940 $2,191,465 $2,465,118 $2,502,713 $2,563,566
 $473,720 9.79%
26.09% 19.43% 12.49% 1.53% 2.43% % change
 from
 Change over previous year 2024

 **This represents half
 5 of total HMR tax collections. The other half goes to Fayetteville Department of Parks, Natural Resources, and Cultural Affairs
  Memo
 To: Jennifer Walker, Interim CEO, Experience Fayetteville
 Fayetteville Advertising & Promotion Commissioners
 From: Jennifer Walker, VP Finance, Experience Fayetteville

Date: July 21, 2025

 Re: Financial Statements – June 2025


This packet contains Experience Fayetteville Financial Statements for the month ended
June 30, 2025. The following reports are included in the packet:

 • Summary P&L Financials for month ended June 30, 2025
 • Balance Sheet for month ended June 30, 2025

Target Budget June – 50%
 Revenue target 50% of budget or higher by the end of June 2025.
 Expenditures target 50% or lower at June 2025.

Total Revenue YTD: $3,146,920 or 50.2%; We are on target.
 Tax Receipts - $2,563,566 (1% below budget ytd)
 Town Center - $364,152 (2% above budget ytd)
 Other - $219,202

Total Operating Expenditure YTD: $2,808,430 or 45%; this is 5% under budget.
 EF Main - $2,280,264
 Town Center - $528,166

HMR tax – YTD June Collections (May activity) are 1.7% above the seasonally
adjusted budget.

Operating Net Income is $338,489 year to date.




 6
Modified Accrual Fayetteville A and P Commission
 Statement of Budget, Revenue and Expense
 Year-to-Date @ June 30, 2025


 CONSOLIDATED
 Year-to-Date
 Over/(Under)
 Actual Budget % of Budget
 Budget

 Revenue
 Hotel, Motel, Restaurant Taxes Revenue 2,563,566 5,231,140 (2,667,574) 49.0%
 Rental Revenue 348,210 650,500 (302,290) 53.5%
 Event Revenue 5,172 53,700 (48,528) 9.6%
 Visitor Center Store Revenue 12,200 30,000 (17,800) 40.7%
 Parking Revenue 12,890 48,000 (35,110) 26.9%
 Advertising Revenue 2,025 3,500 (1,475) 57.9%
 Grant/Other Revenue 166,100 206,000 (39,900) 80.6%
 Interest and Investment Revenue 36,757 50,100 (13,343) 73.4%
 Total Revenue 3,146,920 6,272,940 (3,126,020) 50.2%


 Expenses
 Operating Expenses
 Rental Expenses 41,814 126,000 (84,186) 33.2%
 Event Expenses 46,197 146,175 (99,978) 31.6%
 Visitor Center & Museum Store 5,208 27,750 (22,542) 18.8%
 Personnel 964,662 2,228,707 (1,264,046) 43.3%
 Sales & Marketing 679,439 1,481,925 (802,486) 45.8%
 Office and Administrative 396,487 913,133 (516,646) 43.4%
 Bond Payments 348,900 702,000 (353,100) 49.7%
 Contribution to Capital Reserves - 100,000 (100,000) 0.0%
 Other Tourism Support - Community, Art Court, DFC 125,723 347,250 (221,527) 36.2%
 TheatreSquared Contribution 200,000 200,000 - 100.0%
 Total Operating Expenses 2,808,430 6,272,940 (3,464,510) 44.8%


 Net Operating Income/(Loss) 338,489 - 338,489 0.0%

 Other Income
 Unrealized Gain/(Loss) on Investments 29,330 0.0%
 Other Expenses
 FFE & Improvements 263,641 1,081,500 (817,859) 24.4%
 Depreciation Expense 144,602 0.0%
 Cost of Goods Sold - 0.0%

 Net Income/(Loss) (without CX Grants) (40,424) (1,081,500) 1,011,746 3.7%




 7
Modified Accrual Fayetteville A and P Commission
 Statement of Budget, Revenue and Expense
 Year-to-Date @ June 30, 2025


 Experience Fayetteville
 Year-to-Date
 Over/(Under)
 Actual Budget % of Budget
 Budget

 Revenue
 Hotel, Motel, Restaurant Taxes Revenue 2,563,566 5,231,140 (2,667,574) 49.0%
 Rental and Event Revenue 2,180 45,000 (42,820) 4.8%
 Visitor Center Store Revenue 12,200 30,000 (17,800) 40.7%
 Advertising Revenue 2,025 3,500 (1,475) 57.9%
 Grant & Other Revenue 166,100 206,000 (39,900) 80.6%
 Interest and Investment Revenue 36,697 50,000 (13,303) 73.4%
 Total Revenue 2,782,768 5,565,640 (2,782,872) 50.0%


 Expenses
 Operating Expenses
 Event Expenses 40,835 121,175 (80,340) 33.7%
 Visitor Center & Museum Store 5,208 27,750 (22,542) 18.8%
 Personnel 618,452 1,419,605 (801,154) 43.6%
 Sales & Marketing 675,209 1,460,305 (785,096) 46.2%
 Office and Administrative 265,937 541,593 (275,656) 49.1%
 Bond Payments 348,900 702,000 (353,100) 49.7%
 Contribution to Capital Reserve - 100,000 (100,000) 0.0%
 Other Tourism Support - Community, Art Court, DFC 125,723 347,250 (221,527) 36.2%
 TheatreSquared Contribution 200,000 200,000 - 0.0%
 Total Operating Expenses 2,280,264 4,919,678 (2,639,414) 46.3%


 Net Income/(Loss) Before Other Revenue and Expenses 502,503 645,962 (143,459) 77.8%

 Other Income
 Unrealized Gain/(Loss) on Investments 29,330 - 29,330 0.0%
 Other Expenses
 FFE & Improvements 263,641 460,000 (196,359) 57.3%
 Depreciation Expense 48,788
 Cost of Goods Sold -

 Net Income/(Loss) 219,404 185,962 4,112 118.0%




 8
Modified Accrual Fayetteville A and P Commission
 Statement of Budget, Revenue and Expense
 Year-to-Date @ June 30, 2025

 Town Center
 Year-to-Date
 Over/(Under)
 Actual Budget % of Budget
 Budget
 Revenue
 Rental Revenue 348,210 650,500 (302,290) 53.5%
 Event Revenue 2,992 8,700 (5,708) 34.4%
 Parking Revenue 12,890 48,000 (35,110) 26.9%
 Interest and Investment Revenue 60 100 (40) 60.0%
 Total Revenue 364,152 707,300 (343,148) 51.5%


 Expenses
 Operating Expenses
 Rental Expenses 41,814 126,000 (84,186) 33.2%
 Event Expenses 5,362 25,000 (19,638) 21.4%
 Personnel 346,210 809,102 (462,892) 42.8%
 Sales & Marketing 4,230 21,620 (17,390) 19.6%
 Office and Administrative 130,550 371,540 (240,990) 35.1%
 Total Operating Expenses 528,166 1,353,262 (825,096) 39.0%


 Net Income/(Loss) Before Other Revenue and Expenses (164,014) (645,962) 481,948 25.4%


 Other Expenses
 FFE & Improvements - 621,500 (621,500) 100.0%
 Depreciation Expense 95,814 0.0%
 Net Income/(Loss) (259,828) (1,267,462) 1,007,634 20.5%




 9
 Fayetteville A&P Commission
 Balance Sheet
 As of June 30, 2025
ASSETS
  Current Assets
 Cash 3,841,440
 Investments 1,333,171
 Accounts Receivable 610,716
 Prepaid Expenses 56,661
 Deposits 40,838
 Inventory Asset 21,449
  Total Current Assets 5,904,275

  Other Assets
 Capital Assets
 Furniture & Fixtures 300,660
 Equipment 761,581
 EF/CVB Building 940,410
 EF/CVB Land 198,621
 Building Additions 1,844,537
 Walker-Stone House 1,179,152
 Vehicles 122,860
 Construction in Progress 456,456
 Accumulated Depreciation (1,890,002)
  Total Other Assets 3,914,275

TOTAL ASSETS 9,818,551

LIABILITIES AND EQUITY
 Current Liabilities
 Accounts Payable 96,672
 Unearned Revenue 241,842
 Total Liabilities 338,514

  Long Term Liabilities
 Notes Payable - City of Fayetteville Solar 386,825.75
  Total Liabilities 386,825.75

  Equity
 Unreserved Fund Balance 8,087,525
 Operating Reserve 1,000,000
 Capital Reserve -
 Temporarily Restricted Funds 45,558
 Net Revenue
 Gain/(Loss) on Investments 8,203
 Net Revenue (48,075) (39,872)
  Total Equity 9,093,211

TOTAL LIABILITIES AND EQUITY 9,818,551



 10
Memo
 To: Ryan Hauck, CEO, Experience Fayetteville
 Fayetteville Advertising & Promotion Commissioners
 From: Jennifer Walker, VP Finance, Experience Fayetteville

Date: July 21, 2025

 Re: Presentation of the 2024 Audit Report




The Fayetteville A&P Commission has engaged the audit firm Forvis Mazars to
perform an annual financial audit for the fiscal year ending December 31, 2024. This
audit work was completed Spring 2025 and the final audit report and financial report is
now available for review and publication.


Forvis Director Cynthia Burns will present the 2024 auditor’s report. The completed
2024 Independent Auditor’s Report, Financial Statements, and Management Letter are
attached for reference.




 11
Fayetteville Advertising &
Promotion Commission
A Component Unit of the
City of Fayetteville, Arkansas


Independent Auditor’s Reports and Financial
Statements – Regulatory Modified Accrual Basis



December 31, 2024 and 2023




 12
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Contents
December 31, 2024 and 2023


  Independent Auditor’s Report ....................................................................................................................... 1

  Financial Statements – Regulatory Modified Accrual Basis

 Statements of Assets, Liabilities, and Fund Balance .................................................................................. 4

 Statements of Revenues, Expenditures, and Changes in Fund Balance ................................................... 5

 Statements of Revenues and Expenditures – Budget to Actual ................................................................. 7

 Notes to Financial Statements .................................................................................................................... 9

  Report on Internal Control Over Financial Reporting and on Compliance and Other Matters
 Based on an Audit of Financial Statements Performed in Accordance With Government
 Auditing Standards – Independent Auditor’s Report ............................................................................. 18




 13
 Independent Auditor’s Report


 Board of Commissioners
 Fayetteville Advertising & Promotion Commission
 Fayetteville, Arkansas

 Report on the Audit of the Financial Statements

 Opinion
 We have audited the financial statements of the Fayetteville Advertising and Promotion Commission
 (Commission), a component unit of the City of Fayetteville, Arkansas, as of and for the years ended
 December 31, 2024 and 2023 and the related notes to the financial statements, which collectively comprise
 the Commission’s basic financial statements as listed in the table of contents.

 Unmodified Opinion on Regulatory Basis of Accounting
 In our opinion, the accompanying financial statements referred to above present fairly, in all material
 respects, the assets, liabilities, and fund balance of the Commission as of December 31, 2024 and 2023,
 and its respective revenues, expenditures, and the changes in fund balance and budgetary results for the
 years then ended, in accordance with the basis of accounting practices prescribed or permitted by the State
 of Arkansas described in Note 1.

 Adverse Opinion on U.S. Generally Accepted Accounting Principles
 In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S.
 Generally Accepted Accounting Principles section of our report, the accompanying financial statements
 referred to above do not present fairly, in accordance with accounting principles generally accepted in the
 United States of America the financial position of the Commission as of December 31, 2024 and 2023 or
 changes in fund balance thereof for the years then ended.

 Basis for Opinion
 We conducted our audits in accordance with auditing standards generally accepted in the United States of
 America (GAAS) and the standards applicable to financial audits contained in Government Auditing
 Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our
 responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
 of the Financial Statements section of our report. We are required to be independent of the Commission,
 and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating
 to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
 a basis for our audit opinions.

 Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
 As described in Note 1 to the financial statements, the financial statements are prepared by the Commission
 on the basis of accounting practices prescribed or permitted by the State of Arkansas (State) to demonstrate
 compliance with the State’s regulatory basis of accounting and budget laws, which is a basis of accounting
 other than accounting principles generally accepted in the United States of America, to meet the
 requirements of the State of Arkansas.




Forvis Mazars, LLP is an independent member of Forvis Mazars Global Limited
 14
 Board of Commissioners
 Fayetteville Advertising & Promotion Commission

The effects on the financial statements of the variances between the regulatory modified accrual basis of
accounting described in Note 1 and accounting principles generally accepted in the United States of
America, although not reasonably determinable, are presumed to be material and pervasive.

Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with the financial reporting provisions of A.C.A. § 10-4-412, as described in Note 1, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the Commission’s ability to continue
as a going concern for 12 months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing
Standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

 • Exercise professional judgment and maintain professional skepticism throughout the audit.
 • Identify and assess the risks of material misstatement of the financial statements, whether due to
 fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
 include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
 statements.
 • Obtain an understanding of internal control relevant to the audit in order to design audit procedures
 that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
 effectiveness of the Commission’s internal control. Accordingly, no such opinion is expressed.
 • Evaluate the appropriateness of accounting policies used and the reasonableness of significant
 accounting estimates made by management, as well as evaluate the overall presentation of the
 financial statements.
 • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
 that raise substantial doubt about the Commission’s ability to continue as a going concern for a
 reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the audit.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated June 30, 2025
on our consideration of the Commission’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.




 2
 15
 Board of Commissioners
 Fayetteville Advertising & Promotion Commission

The purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the Commission’s internal control over financial reporting or on compliance. That report is an integral
part of an audit performed in accordance with Government Auditing Standards in considering the
Commission’s internal control over financial reporting and compliance.




Rogers, Arkansas
June 30, 2025




 3
 16
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Statements of Assets, Liabilities, and Fund Balance – Regulatory Modified Accrual Basis
December 31, 2024 and 2023


 2024 2023
ASSETS
 Cash and cash equivalents $ 3,831,021 $ 3,867,134
 Investments 1,714,446 1,614,533
 Accounts receivable 160,656 54,116
 Deposits 40,838 28,369
 Inventory 21,449 23,587
 Prepaid expense 44,837 55,498
 Capital assets
 Buildings 3,964,099 3,565,796
 Furniture and fixtures 300,660 169,248
 Land 198,621 198,621
 Office equipment 761,581 756,009
 Vehicles 122,860 122,860
 Construction in progress 456,456 19,205
 Less accumulated depreciation (1,745,399) (1,690,934)

Total Assets $ 9,872,125 $ 8,784,042

LIABILITIES
  Accounts payable $ 195,285 $ 264,410
  Accrued expenses 481 2,383
  Unearned revenue 106,340 68,021
  Accrued payroll 34,178 32,849
  Due to primary government (City of Fayetteville) 386,826 -

Total Liabilities 723,110 367,663

FUND BALANCE
 Unassigned 9,079,724 8,370,822
 Restricted 69,291 45,557

Total Fund Balance 9,149,015 8,416,379

Total Liabilities and Fund Balance $ 9,872,125 $ 8,784,042




See Notes to Financial Statements 4
 17
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Statements of Revenues, Expenditures, and Changes in Fund Balance –
Regulatory Modified Accrual Basis
Years Ended December 31, 2024 and 2023


 2024 2023
Revenues
 Hotel, motel, and restaurant taxes $ 5,267,699 $ 4,994,998
 Rental income 750,814 623,416
 Visitors center store 34,746 46,119
 Parking income 57,666 45,098
 Investment income, net 139,760 81,500
 Grant income 80,966 16,800
 Event income 193,399 126,341

Total Revenues 6,525,050 5,934,272

Expenditures
 Advertising 725,512 757,900
 Automobile expense 5,000 5,000
 Bank charges 9,242 9,302
 Bond payments 697,800 697,800
 Collection expense 105,354 99,900
 Contract labor 145,655 127,420
 Convention development 577,295 451,052
 Depreciation 243,610 203,847
 Dues and subscriptions 33,269 28,531
 Employee benefits 66,778 45,626
 Insurance 196,266 190,310
 Miscellaneous 135,480 153,355
 Office supplies and printing 28,190 21,264
 Payroll taxes 114,999 110,416
 Postage 7,320 7,967
 Professional services 33,226 35,350
 Rent 20,706 20,706
 Repairs and maintenance 212,027 207,474
 Salaries and wages 1,504,728 1,456,749
 Special projects and events 699,050 517,440
 Taxes and licenses 10,110 10,313
 Training and meetings 65,366 78,628
 Utilities 129,982 134,658
 Visitor center store expense 25,449 29,978
 Loss on capital asset disposal - 30,755

Total Expenditures 5,792,414 5,431,741




See Notes to Financial Statements 5
 18
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Statements of Revenues, Expenditures, and Changes in Fund Balance –
Regulatory Modified Accrual Basis
Years Ended December 31, 2024 and 2023 (Continued)


 2024 2023

Change in Fund Balance $ 732,636 $ 502,531

Fund Balance
 Beginning of year 8,416,379 7,913,848

  End of year $ 9,149,015 $ 8,416,379




See Notes to Financial Statements 6
 19
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Statements of Revenues and Expenditures – Regulatory Modified Accrual Basis –
Budget to Actual
Year Ended December 31, 2024


 Variance
 Original Favorable
 Budget Final Budget Actual (Unfavorable)
Revenues
 Hotel, motel, and restaurant taxes $ 5,208,000 $ 5,031,000 $ 5,267,699 $ 236,699
 Rental income 587,340 605,255 750,814 145,559
 Visitors center store 46,500 46,500 34,746 (11,754)
 Parking income 27,000 35,000 57,666 22,666
 Investment income, net 25,100 55,100 139,760 84,660
 Grant Income 85,000 85,000 80,966 (4,034)
 Event income 188,500 189,000 193,399 4,399

Total Revenues 6,167,440 6,046,855 6,525,050 478,195

Expenditures
 Advertising 787,212 719,892 725,512 (5,620)
 Automobile expense 5,000 5,000 5,000 -
 Bank charges 6,200 6,200 9,242 (3,042)
 Bond payments 700,000 700,000 697,800 2,200
 Collection expense 104,160 99,730 105,354 (5,624)
 Contract labor 126,545 127,050 145,655 (18,605)
 Convention development 699,105 679,150 577,295 101,855
 Depreciation - - 243,610 (243,610)
 Dues and subscriptions 41,129 41,129 33,269 7,860
 Employee benefits 89,994 84,383 66,778 17,605
 Insurance 211,362 210,842 196,266 14,576
 Miscellaneous 216,927 230,727 135,480 95,247
 Office supplies and printing 42,794 42,794 28,190 14,604
 Payroll taxes 123,861 122,624 114,999 7,625
 Postage 14,525 12,025 7,320 4,705
 Professional services 37,500 37,500 33,226 4,274
 Rent 22,706 20,706 20,706 -
 Repairs and maintenance 210,700 200,700 212,027 (11,327)
 Salaries and wages 1,578,557 1,556,037 1,504,728 51,309
 Special projects and events 867,550 856,100 699,050 157,050
 Taxes and licenses 10,300 10,300 10,110 190
 Training and meetings 70,425 61,425 65,366 (3,941)
 Utilities 178,800 178,800 129,982 48,818
 Visitor center store expense 53,619 53,619 25,449 28,170

Total Expenditures 6,198,971 6,056,733 5,792,414 264,319

Excess (Deficiency) of Revenues
 Over Expenditures $ (31,531) $ (9,878) $ 732,636 $ 742,514




See Notes to Financial Statements 7
 20
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Statements of Revenues and Expenditures – Regulatory Modified Accrual Basis –
Budget to Actual
Year Ended December 31, 2023 (Continued)


 Variance
 Original Favorable
 Budget Final Budget Actual (Unfavorable)
Revenues
 Hotel, motel, and restaurant taxes $ 4,960,000 $ 4,960,000 $ 4,994,998 $ 34,998
 Rental income 492,000 497,500 623,416 125,916
 Visitors center store 53,700 40,700 46,119 5,419
 Parking income 26,000 26,000 45,098 19,098
 Investment income, net 7,550 25,050 81,500 56,450
 Grant income 83,000 83,000 16,800 (66,200)
 Event income 44,972 44,500 126,341 81,841

Total Revenues 5,667,222 5,676,750 5,934,272 257,522

Expenditures
 Advertising 768,021 730,921 757,900 (26,979)
 Automobile expense 5,000 5,000 5,000 -
 Bank charges 6,800 6,800 9,302 (2,502)
 Bond payments 700,000 700,000 697,800 2,200
 Collection expense 98,500 98,500 99,900 (1,400)
 Contract labor 89,180 89,172 127,420 (38,248)
 Convention development 558,940 445,402 451,052 (5,650)
 Depreciation - - 203,847 (203,847)
 Dues and subscriptions 32,731 38,227 28,531 9,696
 Employee benefits 138,533 56,294 45,626 10,668
 Insurance 193,527 205,002 190,310 14,692
 Miscellaneous - - 153,355 (153,355)
 Office supplies and printing 22,658 29,229 21,264 7,965
 Payroll taxes 125,074 135,129 110,416 24,713
 Postage 7,025 7,250 7,967 (717)
 Professional services 28,000 32,000 35,350 (3,350)
 Rent 22,600 22,600 20,706 1,894
 Repairs and maintenance 166,895 171,394 207,474 (36,080)
 Salaries and wages 1,424,122 1,519,817 1,456,749 63,068
 Special projects and events 463,250 488,600 517,440 (28,840)
 Taxes and licenses 10,900 10,900 10,313 587
 Training and meetings 88,385 83,260 78,628 4,632
 Utilities 162,500 163,500 134,658 28,842
 Visitor center store expense 41,200 34,700 29,978 4,722
 Loss on capital asset disposal - - 30,755 (30,755)

Total Expenditures 5,153,841 5,073,697 5,431,741 (358,044)

Excess (Deficiency) of Revenues
 Over Expenditures $ 513,381 $ 603,053 $ 502,531 $ (100,522)




See Notes to Financial Statements 8
 21
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to Financial Statements
December 31, 2024 and 2023


Note 1. Nature of Operations and Summary of Significant Accounting Policies
The financial statements are presented in accordance with the regulatory modified accrual basis of presentation as
prescribed by Arkansas state law. The Fayetteville Advertising and Promotion Commission (Commission) maintains
its records on a regulatory modified accrual basis of accounting, as described in Regulatory Accounting and Basis
of Accounting and Presentation. The regulatory modified accrual basis of presentation and the modified accrual
basis of accounting differ from accounting principles generally accepted in the United States of America. The
significant accounting policies of the Commission are as follows:

Regulatory Accounting
The Arkansas Legislature enacted a law in 2005 that requires municipalities to present their financial statements in
a prescribed format and also restricts the basis of accounting for this format to one of three methods. The entity’s
governing body, however, can adopt a resolution annually to adopt Governmental Accounting Standards Board
(GASB) Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State
and Local Governments (GASB No. 34), as their reporting model in lieu of reporting on this regulatory modified
accrual basis established by Arkansas Code 10-4412. The board of commissioners did not adopt such a resolution
for 2024 or 2023.

The regulatory presentation is on a fund basis, with no distinction being made as to the type of funds (Proprietary,
Governmental, etc.) being presented. The required financial statements consist of a balance sheet (or statement of
assets, liabilities, and fund balance); statement of revenues, expenditures, and changes in fund balance; and
statement of revenues and expenditures – budget to actual. The basis of accounting is limited to regulatory cash
basis, regulatory modified cash basis, or regulatory modified accrual basis. The Commission has elected to utilize
the regulatory modified accrual basis of accounting.

Nature of Operations
The Commission is a component unit of the City of Fayetteville, Arkansas (City), established by Ordinance Number
2310 of the City for the purpose of promoting and advertising Fayetteville and its environs. The Commission is
presented in the City of Fayetteville’s Annual Comprehensive Financial Report as a discretely presented component
unit. A Commission consisting of seven members governs the Commission. Four members are owners or managers
of hotels, motels, or restaurants and serve for staggered terms of four years. Two members must be members of
the governing body of the City, are selected by the City Council, and serve at the will of the City Council. One
member is from the public at large and is nominated by the Commission and approved by the City Council. All
members must reside in Fayetteville. Members are voted on by the existing Commissioners and approved by the
City Council. The financial statements present only the financial position and results of operations of the
Commission and are not intended to present the financial position and results of operations of the City of
Fayetteville, Arkansas, in conformity with accounting principles generally accepted in the United States of America.
Operations of the Commission include the Fayetteville Convention and Visitors Bureau and the Fayetteville Town
Center.

Use of Estimates
Management used estimates and assumptions in preparing these financial statements. Those estimates and
assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting
period. Actual results could differ from those estimates.

Cash Equivalents
The Commission considers all liquid investments with original maturities of three months or less to be cash
equivalents. At December 31, 2024 and 2023, cash equivalents consisted of money market funds with brokers.



 9
 22
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to Financial Statements
December 31, 2024 and 2023


Basis of Accounting and Presentation
The financial statements are prepared on the modified accrual basis of accounting. As such, revenues are
recognized when the underlying exchange takes place and in the accounting period in which the revenue is both
measurable and available to finance expenditures of the fiscal period. The Commission considers all tax revenues
measurable and available when collected and exchange revenue when the transaction occurs. Expenditures are
recorded when the related liability is incurred.

Budgets
The Commission adheres to the following procedures in establishing the budgets reflected in the accompanying
financial statements:

Prior to December 1, the budget committee proposes an operating budget for the fiscal year commencing the
following January 1. The operating budget includes proposed expenditures and the means of financing them.

Prior to January 1, the Commission legally enacts the budget through approval of the Commissioners.

Budgets are adopted on a basis consistent with accounting practices prescribed or permitted by the State of
Arkansas, which practices differ from accounting principles generally accepted in the United States of America.

Budgeted revenues and expenditures represent the formal operating budget adopted by the Commission.
Budgetary control is maintained at the operations level. Budgeted amounts not spent by year-end lapse.

Investments
Investments of the Commission represent the portion of a combined investment pool managed by the City allocable
to the Commission. Investments include money market mutual funds, U.S. Treasury obligations, corporate bonds,
and U.S. Government agency obligations. Money market mutual funds, governmental securities, and corporate
bonds are recorded at fair market value based on quoted market prices. Income related to investments is recorded
when earned. Income earned in the pool is allocated to the various funds and component units weekly. At
December 31, 2024 and 2023, the Commission’s proportionate share of the investment pool was approximately
0.64% and 0.93%, respectively.

The Commission’s portion of investments held by the City amounted to $1,714,446 and $1,614,533 at
December 31, 2024 and 2023, respectively, and is held at one financial institution in the name of the City.
Approximately 83% and 86% of the pool is invested in direct obligations of the United States of America at
December 31, 2024 and 2023, respectively. The remainder is either insured or collateralized.

Accounts Receivable
Accounts receivable consist of amounts due from the Fayetteville Town Center customers and the City’s Parking
Department. For the years ended December 31, 2024 and 2023, accounts receivable were deemed fully collectible;
therefore, no allowance for doubtful accounts was considered necessary. If accounts become uncollectible, they
will be charged to operations when that determination is made. Determination of collectibility is made by
management based on knowledge of individual accounts and consideration of such factors as current economic
conditions. Accounts are generally uncollateralized. Past-due status is based on contractual terms. Past-due
accounts are not charged interest.

Inventory
Inventory is valued at the lower of cost (first-in, first-out method) or market. Inventory consists of items for sale in
the Commission’s gift shop.




 10
 23
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to Financial Statements
December 31, 2024 and 2023


Capital Assets
Capital assets are carried at historical cost or acquisition value at date of donation if acquired by gift. The
Commission’s capitalization policy states that assets with an initial value or cost greater than or equal to $5,000
and an estimated useful life of greater than one year will be capitalized. Depreciation is provided on the straight-
line method over the estimated useful lives of the respective assets, which range from 5 to 39 years.

Funding
The Commission is funded by a 1% hotel, motel, and restaurant tax on all revenue from the renting, leasing, or
otherwise furnishing of hotel or motel accommodations for profit in Fayetteville. The tax also applies to the gross
receipts or gross proceeds received by restaurants and similar businesses as may be defined from time to time by
ordinance from the sale of prepared foods and beverages for on- or off-premises consumption. The tax does not
apply to such gross receipts or proceeds of organizations qualified under Section 501(c)(3) of the Federal Internal
Revenue Code.

The taxes are due the 20th day of the month following the month in which the taxes were collected. If taxes become
delinquent, the City Prosecutor seeks to collect the taxes. Delinquent taxes totaled $73,532 and $97,065 at
December 31, 2024 and 2023, respectively.

Revenues collected from the taxes are to be used for advertising and promotion in Fayetteville and its environs.
Revenues are also to be used for the construction, reconstruction, equipment, improvement, maintenance, repair,
and operation of a convention center, for the operation of tourist promotion facilities in Fayetteville, and for personnel
and agencies necessary to conduct the business of the Commission.

Advertising
The Commission expenses advertising, marketing, and promotion costs as incurred.

Income Taxes
The Commission is a tax-exempt organization under Section 115 of Internal Revenue Code.

Fund Balance – Governmental Funds
The fund balances for the Commission’s funds are displayed in two components:

Restricted – Restricted fund balances may be spent only for the specific purposes stipulated by external resource
providers. Restrictions may be changed or lifted only with the consent of resource providers. Funds are externally
restricted by contributors.

Unassigned – Unassigned fund balance includes all amounts not restricted.

The Commission considers restricted amounts to have been spent when an expenditure incurred for purposes for
which both restricted and unassigned fund balance is available. The Commission applies restricted amounts first
and then unassigned amounts when an expenditure is incurred for purposes for which amounts in any of those
unrestricted fund balance classifications could be used.




 11
 24
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to Financial Statements
December 31, 2024 and 2023


Note 2. Commitments
During the year ended December 31, 2013, a resolution was proposed that recommended to the City the issuance
and sale of (1) approximately $1,500,000 of hotel and restaurant gross receipts tax refunding bonds for the purpose
of refunding the City’s outstanding hotel and restaurant gross receipts tax refunding bonds, series 2003, (2)
approximately $6,900,000 of hotel and restaurant gross receipts tax and tourism revenue capital improvement
bonds for the purpose of financing certain capital improvements in connection with the proposed Walton Arts Center
expansion and renovation, and (3) approximately $3,500,000 of hotel and restaurant gross receipts tax and tourism
revenue capital improvement bonds for the purpose of financing certain capital improvements in connection with a
proposed regional park. The resolution was approved by the Commission in May 2013 and approved by the voters
in November 2013 in a special election. The bonds were issued in October 2014, will mature in 2039, and bear
interest at coupon rates ranging from 2.0% to 5.0%. As a result of the issuance, the City retains $707,313 per year,
plus fees, for payments on these bonds. The amount retained for the bond payment would otherwise be remitted
to the Commission.

At December 31, 2024, the Commission had a commitment with respect to unfinished capital projects on the
Experience Fayetteville building. Project authorization is $490,000, with $456,456 expended through December 31,
2024, leaving required future funding of $33,544. The Commission also had a commitment with respect to
unfinished network upgrades. Project authorization is $21,000, with $0 expended through December 31, 2024,
leaving required future funding of $21,000.


Note 3. Deposits, Investments, and Investment Income

Deposits
Custodial State law requires that municipal funds be deposited in federally insured banks located in the state of
Arkansas. The municipal deposits may be in the form of checking accounts, savings accounts, and time deposits.
Public funds may also be invested in direct obligations of the United States of America; and obligations, the principal
and interest of which, are fully guaranteed by the United States of America.

The Commission maintains separate bank accounts in two banks. Deposits with banks at December 31, 2024 and
2023 amounted to $3,830,977 and $3,886,176, respectively, of which $370,933 and $301,708 was insured and the
remaining amount was collateralized by securities held in the Commission’s name.

Investments
The Commission may legally invest in direct obligations of the U.S. Government and agencies, collateralized
certificates of deposit, pre-refunded municipal bonds, corporate bonds, collateralized repurchase agreements,
treasury money markets, local government trusts, and savings accounts.




 12
 25
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to Financial Statements
December 31, 2024 and 2023


The Commission had the following investments and maturities at December 31:

 December 31, 2024
 Maturities in Years
 Less More
 Type Fair Value than 1 1–5 6–10 than 10

  Money market mutual funds $ 838,107 $ 838,107 $ - $ - $ -
  U.S. agencies obligations 876,339 195,854 680,485 - -

 $ 1,714,446 $ 1,033,961 $ 680,485 $ - $ -


 December 31, 2023
 Maturities in Years
 Less More
 Type Fair Value than 1 1–5 6–10 than 10

  Money market mutual funds $ 606,332 $ 606,332 $ - $ - $ -
  U.S. agencies obligations 1,008,201 312,542 695,659 - -

 $ 1,614,533 $ 918,874 $ 695,659 $ - $ -


Interest Rate Risk – As a means of limiting its exposure to fair value losses arising from rising interest rates, the
Commission’s investment policy is to attempt to match investment maturities with cash flow requirements. The
Commission’s investments are money market mutual funds and U.S. Government agency obligations.

Credit Risk – Credit risk is the risk that the issuer or other counterparty to an investment will not fulfill its obligations.
It is the Commission’s policy to invest no more than 20% in corporate debt or in securities of a management type
investment company or investment trust. It is the Commission’s policy to limit its investments in corporate bonds to
issues that are rated investment grade by Standard & Poor’s and Moody’s Investors Service and shall maintain an
A- average rating or better for Standard & Poor’s and an A3 average rating or better for Moody’s Investors Service.
Investment in commercial paper will be rated A-1/P-1. At December 31, 2024 and 2023, the Commission’s
investments in U.S. agencies obligations were rated an average rate of AA by Standard & Poor rating and an
average rate of Aa1 by Moody’s Investors Service.

Custodial Credit Risk – Custodial credit risk is the risk that, in the event of the failure of the counterparty, the
Commission will not be able to recover the value of its investment or collateral securities that are in the possession
of an outside party.

Concentration of Credit Risk – The Commission’s policy states that investments shall be diversified by limiting
investments to avoid concentration in securities from a specific issuer less than or equal to 5% of the cost basis of
the Commission’s portfolio at the time of purchase and limits concentration in any one business sector to 15% of
the cost basis of the portfolio excluding U.S. Treasury securities and collateralized certificates of deposit. The
Commission had no concentration risk as of December 31, 2024 and 2023.




 13
 26
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to Financial Statements
December 31, 2024 and 2023


Foreign Currency Risk – This risk relates to adverse effects on the fair value of an investment from changes in
exchange rates. The Commission’s investment policy doesn’t directly address foreign currency risk. The
Commission’s investment manager only buys U.S. dollar pay securities. The Commission had no investments that
were denominated in foreign currency at December 31, 2024 and 2023.

Consistent with GASB 72, the Commission categorizes its fair value measurements within the fair value hierarchy
established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2
inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

The Commission had the following recurring fair value measurements:

 • U.S. agencies obligations of $876,339 and $1,008,201 as of December 31, 2024 and 2023, respectively,
 are valued using the option-adjusted discounted cash flow model (Level 2 inputs).
 • Money market mutual funds of $838,107 and $606,332 as of December 31, 2024 and 2023, respectively,
 are valued using quoted market prices (Level 1 inputs).

Summary of Carrying Values
The carrying values of deposits and investments shown above are included in the statements of assets, liabilities,
and fund balance – regulatory modified accrual basis as follows:

 2024 2023
 Carrying value
 Deposits $ 3,829,871 $ 3,865,984
 Cash on hand 1,150 1,150
 Investments 1,714,446 1,614,533

 $ 5,545,467 $ 5,481,667

 Included in the following statement of assets, liabilities,
 and fund balance captions
 Cash and cash equivalents $ 3,831,021 $ 3,867,134
 Investments 1,714,446 1,614,533

 $ 5,545,467 $ 5,481,667


Investment Income
Investment income (loss) consisted of the following for the years ended December 31:

 2024 2023

 Interest and dividend income $ 197,284 $ 101,399
 Net decrease in fair value of investments (57,524) (19,899)

 $ 139,760 $ 81,500




 14
 27
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to Financial Statements
December 31, 2024 and 2023


Note 4. Employee Benefit Plan
In 2023, the Commission offered a SIMPLE IRA plan to all employees who meet the eligibility requirements. The
Commission matches employee contributions up to 3% of compensation, while the employee may contribute up to
10% of his or her salary. The Board of Commissioners of the Commission has the authority to amend the plan and
contribution rate. The Commission made contributions in the amount of $36,530 for the year ended December 31,
2023.

Effective February 2024, the Commission began to offer a 401(a) and 457(b) plan to all employees who meet the
eligibility criteria. The Commission matches employee contributions up to 5%. The Commission contributions are
paid into the 401(a) plan. The Commission made contributions in the amount of $58,870 for the year ended
December 31, 2024.


Note 5. Related-Party Transactions
As stated in Ordinance Number 95-1, the board of the Commission consists of seven members, four of which are
owners or managers of businesses in the tourism industry, which collect the hotel or restaurant taxes levied. Thus,
four members of the board are employed by restaurants or hotels that pay the tax which is the primary funding for
the Commission.

During the years ended December 31, 2024 and 2023, the Commission paid approximately $5,000 for expenses
related to operational services performed by the City for the lease of parking spaces.

The Commission had accounts receivable from the City’s Parking Department of $16,383 and $15,278 at
December 31, 2024 and 2023, respectively.

The Commission has an agreement to pay the City a collection fee of 2% of the taxes collected. During the years
ended December 31, 2024 and 2023, the Commission paid collection expenses of $105,354 and $99,900,
respectively, to the City in exchange for the City collecting tax revenue on behalf of the Commission.




 15
 28
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to Financial Statements
December 31, 2024 and 2023


Note 6. Capital Assets
A summary of changes in capital assets is as follows:

 2024
 Beginning Ending
 Balance Additions Deletions Transfers Balance

 Building $ 3,565,796 $ 426,763 $ (28,460) $ - $ 3,964,099
 Furniture and fixtures 169,248 149,686 (18,274) - 300,660
 Land 198,621 - - - 198,621
 Equipment 756,009 147,983 (142,411) - 761,581
 Vehicles 122,860 - - - 122,860
 Construction in progress 19,205 437,251 - - 456,456

 4,831,739 1,161,683 (189,145) - 5,804,277

 Less accumulated
 depreciation 1,690,934 243,610 (189,145) - 1,745,399

 $ 3,140,805 $ 918,073 $ - $ - $ 4,058,878


 2023
 Beginning Ending
 Balance Additions Deletions Transfers Balance

 Building $ 3,250,269 $ 251,520 $ (40,541) $ 104,548 $ 3,565,796
 Furniture and fixtures 121,169 48,079 - 169,248
 Land 198,621 - - - 198,621
 Equipment 723,463 62,042 (29,496) - 756,009
 Vehicles 122,860 - - - 122,860
 Construction in
 progress 104,548 19,205 - (104,548) 19,205

 4,520,930 380,846 (70,037) - 4,831,739


 Less accumulated
 depreciation 1,526,369 203,847 (39,282) - 1,690,934

 $ 2,994,561 $ 176,999 $ (30,755) $ - $ 3,140,805




Note 7. Leases
Two noncancelable leases for copy machines were in effect during 2024 and 2023, expiring in February 2024. In
February 2024, both leases were renewed for a 60-month term, which is reflected in the future minimum lease
payments schedule. These leases contain month-to-month renewal options at the end of the term and require the
Commission to pay general liability insurance, taxes and fees, and maintenance costs.



 16
 29
Fayetteville Advertising & Promotion Commission
A Component Unit of the City of Fayetteville, Arkansas
Notes to Financial Statements
December 31, 2024 and 2023


The Commission also has a lease for commercial property, which expires in October 2025. This lease contains a
month-to-month renewal option upon termination and requires the Commission to pay all utility costs and maintain
damage hazard and general liability insurance coverage. Rental expense for the building operating leases, included
in rent on the statements of revenues, expenditures, and changes in fund balances – regulatory modified accrual
basis, was $20,706 for the years ended December 31, 2024 and 2023. The rental expense for the copier leases,
included in the office supplies and printing line on the statements of revenues, expenditures, and changes in fund
balances – regulatory modified accrual basis, was $4,564 and $7,660 for the years ended December 31, 2024 and
2023, respectively.

Future minimum lease payments are as follows at December 31, 2024:

 2025 $ 21,937
 2026 4,682
 2027 4,682
 2028 4,682
 2029 1,561

 Total future minimum lease payments $ 37,544




Note 8. Note Payable to City of Fayetteville
The note payable to City of Fayetteville is due December 1, 2043, with principal payments of $20,359 due annually
at 0% interest.

Annual maturities of long-term debt are as follows at December 31, 2024:

 Five-year maturity schedule
 2025 $ 20,359
 2026 20,359
 2027 20,359
 2028 20,359
 2029 20,359
 Thereafter 285,031

 $ 386,826




 17
 30
 Report on Internal Control Over Financial Reporting and on Compliance and
 Other Matters Based on an Audit of Financial Statements Performed in
 Accordance With Government Auditing Standards

 Independent Auditor’s Report


 Board of Commissioners
 Fayetteville Advertising & Promotion Commission
 Fayetteville, Arkansas

 We have audited, in accordance with the auditing standards generally accepted in the United States of
 America and the standards applicable to financial audits contained in Government Auditing Standards,
 issued by the Comptroller General of the United States (Government Auditing Standards), the financial
 statements of Fayetteville Advertising & Promotion Commission (Commission), a component unit of the
 City of Fayetteville, Arkansas, which comprise the statement of assets, liabilities, and fund balance –
 regulatory modified accrual basis as of December 31, 2024 and the related statements of revenues,
 expenditures, and changes in fund balance – regulatory modified accrual basis, and revenues and
 expenditures – regulatory modified accrual basis – budget to actual for the year then ended, and the related
 notes to the financial statements, and have issued our report thereon dated June 30, 2025, which expressed
 an adverse opinion on U.S. Generally Accepted Accounting Principles and an unmodified opinion on the
 Regulatory Basis of Accounting.

 Report on Internal Control Over Financial Reporting

 In planning and performing our audit of the financial statements, we considered the Commission’s internal
 control over financial reporting (internal control) as a basis for designing audit procedures that are
 appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but
 not for the purpose of expressing an opinion on the effectiveness of the Commission’s internal control.
 Accordingly, we do not express an opinion on the effectiveness of the Commission’s internal control.

 A deficiency in internal control exists when the design or operation of a control does not allow management
 or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
 misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
 internal control, such that there is a reasonable possibility that a material misstatement of the entity’s
 financial statements will not be prevented, or detected and corrected, on a timely basis. A significant
 deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
 material weakness, yet important enough to merit attention by those charged with governance.

 Our consideration of internal control was for the limited purpose described in the first paragraph of this
 section and was not designed to identify all deficiencies in internal control that might be material
 weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
 deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
 or significant deficiencies may exist that were not identified.




Forvis Mazars, LLP is an independent member of Forvis Mazars Global Limited
 31
 Board of Commissioners
 Fayetteville Advertising & Promotion Commission

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Commission’s financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the financial statements. However, providing an opinion on compliance with those provisions was
not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.




Rogers, Arkansas
June 30, 2025




 19
 32
Forvis Mazars Report to the Board of
Commissioners
Fayetteville Advertising & Promotion Commission
Results of the 2024 Financial Statement Audit, Including Required
Communications
December 31, 2024



Required Communications Regarding Our Audit Strategy & Approach (AU-C 260)
Overview & Responsibilities

 Matter Discussion

 Scope of Our Audit This report covers audit results related to your financial statements:
 • As of and for the year ended December 31, 2024.
 • Conducted in accordance with our contract dated February 10, 2025.

 Our Responsibilities Forvis Mazars is responsible for forming and expressing an opinion about whether the financial
 statements that have been prepared by management, with the oversight of those charged with
 governance, are prepared in accordance with accounting principles permitted by Arkansas
 Code 10-4-412, which is a regulatory basis of accounting.

 Audit Scope & An audit performed in accordance with auditing standards generally accepted in the United
 Inherent Limitations States of America (GAAS) and Government Auditing Standards issued by the Comptroller
 to Reasonable General of the United States (GAGAS) is designed to obtain reasonable, rather than absolute,
 Assurance assurance about the financial statements. The scope of our audit tests was established in
 relation to the financial statements taken as a whole and did not include a detailed audit of all
 transactions.

 Extent of Our In addition to areas of interest and noting prior communications made during other phases of
 Communication the engagement, this report includes communications required in accordance with GAAS that
 are relevant to the responsibilities of those charged with governance in overseeing the financial
 reporting process, including audit approach, results, and internal control. The standards do not
 require the auditor to design procedures for the purpose of identifying other matters to be
 communicated with those charged with governance.

 Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all
 relevant ethical requirements regarding independence.

 Your Our audit does not relieve management or those charged with governance of your
 Responsibilities responsibilities. Your responsibilities and ours are further referenced in our contract.




Fayetteville Advertising & Promotion Commission 33
 1 June 30, 2025
 Matter Discussion

 Distribution This communication is intended solely for the information and use of the following and is not
 Restriction intended to be, and should not be, used by anyone other than these specified parties:
 • The Board of Commissioners and Management



Government Auditing Standards

 Matter Discussion

 Additional GAGAS We also provided reports as of December 31, 2024 on the following as required by GAGAS:
 Reporting
 • Internal control over financial reporting and on compliance and other matters based
 on an audit of the financial statements performed in accordance with GAGAS

 Reporting Our consideration of internal control over financial reporting and our tests of compliance were
 Limitations not designed with an objective of forming an opinion on the effectiveness of internal control or
 on compliance, and accordingly, we do not express such an opinion.


Qualitative Aspects of Significant Accounting Policies & Practices

Significant Accounting Policies
Significant accounting policies are described in Note 1 of the audited financial statements.
With respect to new accounting standards adopted during the year, we call to your attention the following topics detailed in
the following pages:
 • No matters are reportable

Unusual Policies or Methods
With respect to significant unusual accounting policies or accounting methods used for significant unusual transactions
(significant transactions outside the normal course of business or that otherwise appear to be unusual due to their timing,
size, or nature), we noted the following:
 • No matters are reportable

Alternative Accounting Treatments
We had discussions with management regarding alternative accounting treatments within GAAP for policies and practices
for material items, including recognition, measurement, and disclosure considerations related to the accounting for specific
transactions as well as general accounting policies, as follows:
 • Utilization of the modified accrual basis of regulatory accounting

Management Judgments & Accounting Estimates
Accounting estimates are an integral part of financial statement preparation by management, based on its judgments. A
significant area of such estimates for which we are prepared to discuss management’s estimation process and our
procedures for testing the reasonableness of those estimates includes:
 • Estimated useful lives of capital assets
 • Valuation of investment securities




Fayetteville Advertising & Promotion Commission 34
 2 June 30, 2025
Financial Statement Disclosures
The following areas involve particularly sensitive financial statement disclosures for which we are prepared to discuss the
issues involved and related judgments made in formulating those disclosures:
 • Commitments
 • Basis of accounting and presentation
 • Regulatory accounting
 • Related parties

Our Judgment About the Quality of the Entity’s Accounting Principles
During the course of the audit, we made the following observations regarding the Entity’s application of accounting
principles:
 • No matters are reportable

Adjustments Identified by Audit
During the course of any audit, an auditor may propose adjustments to financial statement amounts. Management evaluates
our proposals and records those adjustments that, in its judgment, are required to prevent the financial statements from
being materially misstated.
A misstatement is a difference between the amount, classification, presentation, or disclosure of a reported financial
statement item and that which is required for the item to be presented fairly in accordance with the applicable financial
reporting framework.

Proposed & Recorded Adjustments
Auditor-proposed and management-recorded entries include the following:
 • Investments and unrealized gain/loss adjustments proposed by Forvis Mazars to agree the Commission’s books
 to the City of Fayetteville

Uncorrected Misstatements

 • No unrecorded misstatements to report

Other Required Communications

Other Material Communications
Listed below is another material communication between management and us related to the audit:
 • Management representation letter (see Attachments)
We orally communicated to management other deficiencies in internal control identified during our audit that are not
considered material weaknesses or significant deficiencies.




Fayetteville Advertising & Promotion Commission 35
 3 June 30, 2025
Required Communications Regarding Internal Control (AU-C 265)
Consideration of Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements of Fayetteville Advertising and Promotion commission as
of and for the year ended December 13, 2024, in accordance with GAAS and GAGAS, we considered the Entity’s internal
control over financial reporting (internal control).
This consideration served as a basis for designing audit procedures that are appropriate in the circumstance for the purpose
of expressing our opinion on the financial statements.
However, this consideration was not for the purpose of expressing an opinion on the effectiveness of the Entity’s internal
control.
Accordingly, we do not express an opinion on the effectiveness of the Entity’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraphs and was not
designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and,
therefore, material weaknesses or significant deficiencies may exist that were not identified.

Categorizing Deficiencies by Severity

 Deficiency Significant Deficiency Material Weakness
 A deficiency in internal control A significant deficiency is a A material weakness is a deficiency,
 exists when the design or operation deficiency, or a combination of or a combination of deficiencies, in
 of a control does not allow deficiencies, in internal control that internal control, such that there is a
 management or employees, in the is less severe than a material reasonable possibility that material
 normal course of performing their weakness, yet important enough to misstatements of the Entity’s
 assigned functions, to prevent or merit attention by those charged financial statements will not be
 detect and correct misstatements with governance. prevented or detected and
 on a timely basis. corrected on a timely basis.




Identified Deficiencies
We identified certain deficiencies in internal control that we consider to be a deficiency.
Deficiencies
 • During the last few months of the fiscal year, after the Finance Director resigned, there were some instances
 when the VP of Finance reviewed her own journal entries.




Fayetteville Advertising & Promotion Commission 36
 4 June 30, 2025
 Attachment A

 Management Representation Letter




Fayetteville Advertising & Promotion Commission 37 June 30, 2025
Representation of:
Fayetteville Advertising and Promotion Commission
21 South Block Avenue, Suite 100
Fayetteville, AR 72701

Provided to:
Forvis Mazars, LLP
Certified Public Accountants
5115 W. JB Hunt Dr.
Rogers, AR 72758


The undersigned (We) are providing this letter in connection with Forvis Mazars audits of our financial
statements as of and for the years ended December 31, 2024 and 2023.

Our representations are current and effective as of the date of Forvis Mazars report: June 30, 2025

Our engagement with Forvis Mazars is based on our contract for services dated: February 10, 2025


Our Responsibility & Consideration of Material Matters
We confirm that we are responsible for the fair presentation of the financial statements subject to Forvis
Mazars report in conformity with accounting principles permitted by Arkansas Code 10-4-412, which is a
regulatory basis of accounting that differs from accounting principles generally accepted in the United
States of America.

We are also responsible for adopting sound accounting policies; establishing and maintaining effective
internal control over financial reporting, operations, and compliance; and preventing and detecting fraud.

We understand that you will not render an unmodified opinion on the financial statements due to lack of
conformity with accounting principles generally accepted in the United States of America regarding our
accounting for regulatory basis.

Certain representations in this letter are described as being limited to matters that are material. Items are
considered material, regardless of size, if they involve an omission or misstatement of accounting
information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable
person relying on the information would be changed or influenced by the omission or misstatement. An
omission or misstatement that is monetarily small in amount could be considered material as a result of
qualitative factors.


Confirmation of Matters Specific to the Subject Matter of Forvis Mazars Report
We confirm, to the best of our knowledge and belief, the following:

 Broad Matters

 1. We have fulfilled our responsibilities, as set out in the terms of our contract, for the preparation
 and fair presentation of the financial statements in accordance with accounting principles permitted
 by Arkansas Code 10-4-412, which is a regulatory basis of accounting that differs from accounting
 principles generally accepted in the United States of America.




 38
Fayetteville Advertising and Promotion Commission
Page 2

 2. We acknowledge our responsibility for the design, implementation, and maintenance of:

 a. Internal control relevant to the preparation and fair presentation of financial statements
 that are free from material misstatement, whether due to fraud or error.

 b. Internal control to prevent and detect fraud.

 3. We have provided you with:

 a. Access to all information of which we are aware that is relevant to the preparation and fair
 presentation of the financial statements, such as financial records and related data,
 documentation, and other matters.

 b. Additional information that you have requested from us for the purpose of the audit.

 c. Unrestricted access to persons within the entity from whom you determined it necessary
 to obtain audit evidence.

 d. All minutes of board of commissioner meetings held through the date of this letter or
 summaries of actions of recent meetings for which minutes have not yet been prepared.
 All unsigned copies of minutes provided to you are copies of our original minutes approved
 by the board of commissioners, if applicable, and maintained as part of our records.

 e. All significant contracts and grants.

 4. We have responded fully and truthfully to all your inquiries.

 Government Auditing Standards

 5. We acknowledge that we are responsible for compliance with applicable laws, regulations, and
 provisions of contracts and grant agreements.

 6. We have identified and disclosed to you all laws, regulations, and provisions of contracts and grant
 agreements that have a direct and material effect on the determination of amounts in our financial
 statements or other financial data significant to the audit objectives.

 7. We have identified and disclosed to you any violations or possible violations of laws, regulations,
 and provisions of contracts and grant agreements, tax or debt limits, and any related debt
 covenants whose effects should be considered for recognition and/or disclosure in the financial
 statements or for your reporting on noncompliance.

 8. We have taken or will take timely and appropriate steps to remedy any fraud, abuse, illegal acts,
 or violations of provisions of contracts or grant agreements that you or other auditors report.

 9. We have a process to track the status of audit findings and recommendations.

 10. We have identified to you any previous financial audits, attestation engagements, performance
 audits, or other studies related to the objectives of your audit and the corrective actions taken to
 address any significant findings and recommendations made in such audits, attestation
 engagements, or other studies.




 39
Fayetteville Advertising and Promotion Commission
Page 3

 Misappropriation, Misstatements, & Fraud

 11. We have informed you of all current risks of a material amount that are not adequately prevented
 or detected by our procedures with respect to:

 a. Misappropriation of assets.

 b. Misrepresented or misstated assets, liabilities, or fund balance.

 12. We have no knowledge of fraud or suspected fraud affecting the entity involving:

 a. Management or employees who have significant roles in internal control over financial
 reporting, or

 b. Others when the fraud could have a material effect on the financial statements.

 13. We understand that the term fraud includes misstatements arising from fraudulent financial
 reporting and misstatements arising from misappropriation of assets. Misstatements arising from
 fraudulent financial reporting are intentional misstatements, or omissions of amounts or
 disclosures in financial statements to deceive financial statement users. Misstatements arising
 from misappropriation of assets involve the theft of an entitys assets where the effect of the theft
 causes the financial statements not to be presented in conformity with accounting principles
 generally accepted in the United States of America.

 14. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity received
 in communications from employees, former employees, customers, regulators, citizens, suppliers,
 or others.

 15. We have assessed the risk that the financial statements may be materially misstated as a result
 of fraud and disclosed to you any such risk identified.

 Ongoing Operations

 16. We acknowledge the current economic volatility presents difficult circumstances and challenges
 for our industry. We understand the values of the assets and liabilities recorded in the financial
 statements could change rapidly, resulting in material future adjustments to asset values that could
 negatively impact the entitys ability to maintain sufficient liquidity.

 We acknowledge that you have no responsibility for future changes caused by the current
 economic environment or changes in federal administrative policies and the resulting impact on
 the entitys financial statements. Further, management and governance are solely responsible for
 all aspects of managing the entity.

 Related Parties

 17. We have disclosed to you the identity of all of the entitys related parties and all the related-party
 relationships of which we are aware.

 In addition, we have disclosed to you all related-party transactions and amounts receivable from
 or payable to related parties of which we are aware, including any modifications during the year
 that were made to related-party transaction agreements which existed prior to the beginning of the
 year under audit, as well as new related-party transaction agreements that were executed during
 the year under audit.




 40
Fayetteville Advertising and Promotion Commission
Page 4

 Related-party relationships and transactions have been appropriately accounted for and disclosed
 in accordance with accounting principles generally accepted in the United States of America.

 18. We understand that the term related party refers to:

 Affiliates.

 Entities for which investments are accounted for by the equity method.

 Trusts for the benefits of employees, such as pension and profit-sharing trusts that are
 managed by or under the trusteeship of management.

 Principal owners and members of their immediate families.

 Management and members of their immediate families.

 Any other party with which the entity may deal if one party can significantly influence the
 management or operating policies of the other to an extent that one of the transacting
 parties might be prevented from fully pursuing its own separate interests.

 Another party is also a related party if it can significantly influence the management or operating
 policies of the transacting parties or if it has an ownership interest in one of the transacting parties
 and can significantly influence the other to an extent that one or more of the transacting parties
 might be prevented from fully pursuing its own separate interests.

 The term affiliate refers to a party that directly or indirectly controls, or is controlled by, or is under
 common control with, the entity.

 Litigation, Laws, Rulings, & Regulations

 19. We are not aware of any pending or threatened litigation or claims whose effects should be
 considered when preparing the financial statements. We have not sought or received attorneys
 services related to pending or threatened litigation or claims during or subsequent to the audit
 period. Also, we are not aware of any litigation or claims, pending or threatened, for which legal
 counsel should be sought.

 20. We have no knowledge of communications, other than those specifically disclosed, from regulatory
 agencies, governmental representatives, employees, or others concerning investigations or
 allegations of noncompliance with laws and regulations, deficiencies in financial reporting
 practices, or other matters that could have a material adverse effect on the financial statements.

 21. We have disclosed to you all known instances of violations or noncompliance or possible violations
 or suspected noncompliance with laws and regulations whose effects should be considered when
 preparing financial statements or as a basis for recording a loss contingency.

 22. We have no reason to believe the entity owes any penalties or payments under the Employer
 Shared Responsibility Provisions of the Patient Protection and Affordable Care Act, nor have we
 received any correspondence from the IRS or other agencies indicating such payments may be
 due.

 23. We have not been designated as a potentially responsible party (PRP or equivalent status) by the
 Environmental Protection Agency (EPA) or other cognizant regulatory agency with authority to
 enforce environmental laws and regulations.




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Fayetteville Advertising and Promotion Commission
Page 5

 Nonattest Services

 24. You have provided nonattest services, including the following, during the period of this
 engagement:

 Preparing a draft of the financial statements and related notes.

 25. With respect to these services:

 a. We have designated a qualified management-level individual to be responsible and
 accountable for overseeing the nonattest services.

 b. We have established and monitored the performance of the nonattest services to ensure
 they meet our objectives.

 c. We have made any and all decisions involving management functions with respect to the
 nonattest services and accept full responsibility for such decisions.

 d. We have evaluated the adequacy of the services performed and any findings that resulted.

 e. We have established and maintained internal controls, including monitoring ongoing
 activities.

 f. When we receive final deliverables from you, we will store those deliverables in
 information systems controlled by us. We have taken responsibility for maintaining internal
 control over these deliverables.

 Financial Statements & Reports

 26. We have reviewed and approved a draft of the financial statements and related notes referred to
 above, which you prepared in connection with your audit of our financial statements. We
 acknowledge that we are responsible for the fair presentation of the financial statements and
 related notes.

 Transactions, Records, & Adjustments

 27. All transactions have been recorded in the accounting records and are reflected in the financial
 statements.

 28. We have everything we need to keep our books and records.

 29. We have disclosed any significant unusual transactions the entity has entered into during the
 period, including the nature, terms, and business purpose of those transactions.

 30. We are in agreement with the adjusting journal entries you have proposed, and they have been
 posted to the entitys accounts.

 Governmental Accounting & Disclosure Matters

 31. With regard to deposit and investment activities:

 a. All deposit, repurchase and reverse repurchase agreements, and investment transactions
 have been made in accordance with legal and contractual requirements.

 b. Investments are properly valued.



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Fayetteville Advertising and Promotion Commission
Page 6

 c. Disclosures of deposit and investment balances and risks in the financial statements are
 consistent with our understanding of the applicable laws regarding enforceability of any
 pledges of collateral.

 d. We understand that your audit does not represent an opinion regarding the enforceability
 of any collateral pledges.

 32. We have identified and evaluated all potential fiduciary activities. The financial statements include
 all fiduciary activities required by GASB Statement No. 84, Fiduciary Activities, as amended,
 required by Arkansas Code 10-4-412 regulatory basis of accounting.

 33. Components of net position (net investment in capital assets, restricted, and unrestricted) and
 classifications of fund balance (nonspendable, restricted, committed, assigned, and unassigned)
 are properly classified and, if applicable, approved.

 34. Capital assets, including infrastructure and intangible assets, are properly capitalized, reported,
 and, if applicable, depreciated or amortized.

 35. We have appropriately disclosed the entitys policy regarding whether to first apply restricted or
 unrestricted resources when an expense is incurred for purposes for which both restricted and
 unrestricted net position/fund balance is available and have determined that net position is
 properly recognized under the policy.

 36. We have identified and evaluated all potential tax abatements, and we believe there are no
 material tax abatements.

 37. The entitys ability to continue as a going concern was evaluated and that appropriate disclosures
 are made in the financial statements as necessary under GASB requirements.

 Accounting & Disclosure

 38. All transactions entered into by the entity are final. We are not aware of any unrecorded
 transactions, side agreements, or other arrangements (either written or oral) that are in place.

 39. Except as reflected in the financial statements, there are no:

 a. Plans or intentions that may materially affect carrying values or classifications of assets,
 liabilities, or fund balance.

 b. Material transactions omitted or improperly recorded in the financial records.

 c. Material unasserted claims or assessments that are probable of assertion or other
 gain/loss contingencies requiring accrual or disclosure, including those arising from
 environmental remediation obligations.

 d. Events occurring subsequent to the statement of assets, liabilities, and fund balance date
 through the date of this letter, which is the date the financial statements were available to
 be issued, requiring adjustment or disclosure in the financial statements.

 e. Agreements to purchase assets previously sold.

 f. Arrangements with financial institutions involving compensating balances or other
 arrangements involving restrictions on cash balances, lines of credit, or similar
 arrangements.




 43
Fayetteville Advertising and Promotion Commission
Page 7

 g. Guarantees, whether written or oral, under which the entity is contingently liable.

 h. Known or anticipated asset retirement obligations.

 40. Except as disclosed in the financial statements, the entity has:

 a. Satisfactory title to all recorded assets, and those assets are not subject to any liens,
 pledges, or other encumbrances.

 b. Complied with all aspects of contractual and grant agreements, for which noncompliance
 would materially affect the financial statements.

 Revenue, Accounts Receivable, & Inventory

 41. Adequate provisions and allowances have been accrued for any material losses from:

 a. Uncollectible receivables.

 b. Excess or obsolete inventories.

 c. Purchase commitments in excess of normal requirements or at prices in excess of
 prevailing market prices.

 Estimates

 42. We have identified all accounting estimates that could be material to the financial statements, and
 we confirm the appropriateness of the methods and the consistency in their application, the
 accuracy and completeness of data, and the reasonableness of significant assumptions used by
 us in making the accounting estimates, including those measured at fair value reported in the
 financial statements.

 43. Significant estimates that may be subject to a material change in the near term have been properly
 disclosed in the financial statements. We understand that near term means the period within one
 year of the date of the financial statements. In addition, we have no knowledge of concentrations,
 which refer to a lack of diversity related to employers, industries, inflows of resources, workforce
 covered by collective bargaining agreements, providers of financial resources, or suppliers of
 material, labor or services, or constraints, which refer to a limitation imposed by an external party
 or by formal action of a governments highest level of decision-making authority related to
 limitations on raising revenue, limitations on spending, limitations on the incurrence of debt, or
 mandated spending, existing at the date of the financial statements that would make the entity
 vulnerable to the risk of severe impact in the near term that have not been properly disclosed in
 the financial statements, including exposure to imposed tariffs.

 Fair Value

 44. With respect to the fair value measurements of financial and nonfinancial assets and liabilities, if
 any, recognized in the financial statements or disclosed in the notes thereto:

 a. The underlying assumptions are reasonable and they appropriately reflect managements
 intent and ability to carry out its stated course of action.

 b. The measurement methods and significant assumptions used in determining fair value
 are appropriate in the circumstances for financial statement measurement and disclosure
 purposes and have been consistently applied.




 44
Fayetteville Advertising and Promotion Commission
Page 8

 c. The significant assumptions appropriately reflect market participant assumptions.

 d. The disclosures related to fair values are complete, adequate, and in conformity with the
 regulatory basis of accounting.

 e. There are no subsequent events that require adjustments to the fair value measurements
 and disclosures included in the financial statements, including impact of imposed tariffs
 and economic volatility.




Jennifer Walker, Interim CEO/VP of Finance Elvis Moya, Commission Chair
jwalker@experiencefayetteville.com ejmoya@uark.edu




 45
Fayetteville A&P Commission Meeting Minutes
June 23, 2025 – Fayetteville Town Center – 2:00 p.m.

Present: Chair Elvis Moya, Sterling Hamilton, Mike Wiederkehr, Sarah Bunch, Chrissy
Sanderson, Katherine Kinney
Absent: Elliot Hunt
Staff: Jennifer Walker

I. Call to Order

Chair Moya called the meeting to order at 2:00 p.m.

II. Approval of Minutes

Commissioner Sanderson noted a correction to the May 19 minutes—she was present,
not absent.

Motion to approve the minutes with correction: Commissioner Bunch
Second: Commissioner Sanderson
Vote: Passed via roll call

III. New Business

A. CEO Report – Jennifer Walker

 • Incoming CEO Ryan Hauck visited June 16; his first official day is July 21.
 • A new MOU with the City provides Placer AI software to estimate event
 attendance. The City is funding the first year, and data will be shared with local
 event producers.
 • Discussions are underway for a new two-part mural on the back of the Town
 Center and Library parking decks, as the original site is no longer available.
 • Chris Lankford has joined the marketing team as Director of Brand Strategy.
 • “Favoriteville” trademark applications have been filed for apparel and tourism
 services.
 • Staff attended the Outside Festival in Denver as part of a state tourism
 activation.
 • “Vanny,” the Mobile Visitor Center, will be activated at Pride Festival on June 28.
 • Restaurant Week is scheduled for July 20–26.
 • Hotel occupancy is down 10% from last year; similar trends across Arkansas.
 Lodging accounts for 15% of HMR tax revenue but affects restaurants and
 related businesses.
 • Walker closed by thanking the Commission for the opportunity to serve as Interim
 CEO.

B. Financial Report – Jennifer Walker




 46
 • YTD through May: Revenue at 40% (2% under target); expenses at 39% (3%
 under target).
 • HMR collections: $2,076,220 YTD
 • Net income: $93,560
 • Cash/investments: $4.9 million
 • Unearned revenue: $243,000 (mainly Town Center bookings)

C. Marketing Report – Sarah King

 • Ongoing media coverage around SEC sports and cycling.
 • Partnership with @explorestlparks and Visit Bentonville highlighted a 55-mile
 NWA family cycling trip.
 • The Outside Festival activation in Denver helped showcase Arkansas tourism;
 follow-up email campaign in progress.
 • Restaurant Week will include discount admission at the Arkansas Air Museum
 and Botanical Garden with proof of purchase.
 • Anne Davis (Outright) reported 6.5 million campaign impressions and a 95%
 video completion rate—an 18% increase from April.
 • Arrivalist data shows highest visitor conversion from drive markets.
 • Ryan MacGregor (Outright) presented campaign performance data and
 optimizations underway.
 • Chair Moya inquired about adding Pensacola (a new direct flight market) to ad
 campaigns. Davis responded that while Pensacola is not included this year,
 campaigns for new Salt Lake City and Philadelphia flights are being used to test
 direct-flight strategies.

D. Visitor’s Guide Printing – Vote

Sarah King presented a proposal to print Visitor’s Guides.
Motion to authorize the Interim CEO to accept a $28,302.90 quote from The Roark
Group: Commissioner Wiederkehr
Second: Commissioner Bunch
Vote: Passed unanimously via roll call

E. CEO Transition Policy – Vote

Walker presented a formal CEO Transition Policy requested earlier in the year. She
reviewed its structure and confirmed legal review.
Motion to approve: Commissioner Kinney
Second: Commissioner Sanderson
Vote: Passed unanimously via roll call

F. CEO Transition Plan – Discussion

Walker shared highlights from a working transition plan, including active/future RFPs
and financial obligations.



 47
 • The July 28 meeting will be led by Hauck with Walker and Hauck preparing the
 agenda.
 • A small city/staff meet-and-greet will follow the July meeting, with a larger public
 welcome reception (in partnership with the Chamber) planned for August.

G. Favoriteville Festival Fund – Discussion

Walker introduced a draft of a new event support fund tied to the Master Destination
Plan.

 • The fund would exclude blackout dates (e.g., Razorback games, graduations).
 • Applications would be scored using a rubric based on factors like financial
 viability, cultural value, and community impact.
 • A sample event, Togue Con 2025, was shared by Commissioner Hamilton,
 along with a P&L example.
 • Commissioners discussed guarantee percentages (e.g., 30%), overall budget
 size, and event eligibility.
 • Moya suggested renaming “margin protection” to “financial risk justification.”
 • Sustainability may become a core scoring category (not bonus points).
 • Consensus: $160,000 total will fund both this program and the Community
 Incentive Fund.
 • All applications will be reviewed by the Commission during the pilot year.
 • Commission requested a list of past sponsorship/CIF recipients.
 • Walker proposed to send revised version of the plan ahead of the July meeting,
 with discussion and possible vote scheduled.

IV. Adjournment

Chair Moya thanked Jennifer Walker for her time as Interim CEO and staff for their
leadership during the transition.
Motion to adjourn: Commissioner Sanderson
Second: Commissioner Kinney
Vote: Passed unanimously
Meeting adjourned at 4:00 p.m.

Minutes prepared by Amy Stockton, Experience Fayetteville




 48
The Favoriteville Festival Fund is a new initiative designed to support festivals and events that
enrich Fayetteville’s cultural life and strengthen our local tourism economy—especially during
seasons when visitor activity tends to slow. By offering post-event financial support to a small
number of high-impact events each year, the program helps mitigate risk for organizers with
bold ideas and a strong plan, encouraging innovation and inclusivity in our city’s event
landscape.

This program supports our Mission to elevate the quality of life for the community of Fayetteville
through tourism promotion, partnerships, and programs.

Aligned with the “Bring Out the Best” Imperative of the Experience Fayetteville Master Plan,
the Favoriteville Festival Fund affirms our role as champions of Fayetteville’s most vibrant
assets. By encouraging and incentivizing signature events that make Fayetteville shine, this
initiative helps fulfill our commitment to enhance what makes our city a compelling, world-class
destination.

Priority consideration will be given to events that:

 • Occur during slower seasons (e.g., late June – early August, late January–early February)
 to maximize economic and cultural activation. No blackout dates (to be provided)
 • Demonstrate economic impact and financial responsibility
 • Celebrate the unique identity and creativity of Fayetteville

How It Works
The Favoriteville Festival Fund is administered through an annual application process.
Organizers submit proposals detailing event plans, budget, and community impact. Applications
are reviewed using a transparent evaluation framework with the following key criteria:

 • Event Viability
 • Economic & Cultural Impact
 • Financial Responsibility
 • Organizer Track Record
 • Access & Inclusion
 • Seasonal Activation & Blackout Considerations

This is not a traditional grant or upfront funding program. Instead, the Fund provides margin
protection – a form of post-event financial support designed to reduce the risk of hosting bold,
high-impact festivals.




 49
During the application process, organizers will submit a projected event budget and establish a
reasonable profit margin target. After the event, staff will review the actual income and expenses.
If the event does not meet the agreed-upon profit margin, the Festival Fund may reimburse part
of the shortfall – up to 30% of eligible expenses or a maximum of $30,000 – to help close the gap.

A selection committee consisting of two Commissioners and two staff members uses a
standardized scoring rubric to evaluate submissions. Final recommendations are presented to
the Fayetteville Advertising and Promotion Commission for approval. Selected events will be
required to execute an MOU and complete post-event reporting procedures.

By lowering financial barriers and encouraging bold, community-focused ideas, the Favoriteville
Festival Fund invites new traditions to take root and ensures that Fayetteville continues to grow
as a place of connection, creativity, and celebration.




 50
 Memo
 To: Ryan Hauck, CEO, Experience Fayetteville
 Fayetteville Advertising & Promotion Commissioners
 From: Jennifer Walker, VP Finance, Experience Fayetteville

 Date: July 21, 2025

 Re: Add CEO Ryan Hauck as an authorized bank signer


 In accordance with the Fayetteville A&P Commission Financial Policies, the following
 directive is outlined under Section III. Internal Controls, C. Cash Handling: “Bank
 accounts will include the following signatories: CEO, Commission Chair, and Director
 of Operations.”
 Due to the recent addition of Ryan Hauck, CEO, updates to the authorized bank
 signers are necessary.
 The Fayetteville A&P Commission currently maintains three operating checking
 accounts with First Security Bank and one checking account with Arvest Bank, as
 detailed below:


 First Security Bank: Arvest Bank:
 Bank account ending in 8714 Bank account ending in 4636
 Bank account ending in 4209
 Bank account ending in 1528


 Staff Recommendations:
1. A vote to authorize the following individuals as signers with full authority on all
 accounts listed above:
 a. Commission Chairperson Elvis Moya
 b. Ryan Hauck, CEO
 c. Amy Stockton, Director of Operations


2. A vote to authorize the removal of any individuals currently listed as signers who are
 not included in the updated list above.




 51
 Memo
 To: Fayetteville Advertising & Promotion Commissioners

 From: Ryan Hauck, CEO

 Date: July 28, 2025

 Re: Amendments to A&P Commission Bylaws




Background:

Staff is proposing amendments to the A&P Commission Bylaws to address the following items.
The bylaws are included with highlighting to reflect proposed changes.

 1) Clarification of commission’s authority to appoint an interim CEO, the full policy was
 approved at June 2025 commission meeting and is inserted into the employee
 handbook

 2) The 95th General Assembly updated the Freedom of Information Act. We have
 updated our bylaws to be compliant. These changes will allow remote attendance at
 meetings for commissioners to continue and ensure we are in compliance with
 Arkansas Code Annotated 25-19-106(e)(6).

 We will be able to continue remote attendance for commissioners as we will publish the
 public Zoom meeting link when we publish the meeting agenda.

 3) We have also added clarification to acknowledge that discussing voting or positions on
 agenda items between staff and commissioners is prohibited, in accordance with Ark.
 Code Ann. 25-19-106(f)-(h).

In accordance with our bylaws, these amendments are being proposed at this meeting and will
be voted on at the next meeting.




 52
 Fayetteville, Arkansas Advertising and Promotion Commission
 By-Laws

 I. Creation and Membership of Commission

Section 1. Creation of the Commission. The Fayetteville Advertising and Promotion
Commission, hereafter referred to as “the Commission,” has been created by and in
accordance with provisions of Acts of Arkansas 185 of 1995, 123 of 1969, and 58 of 1970,
codified as Arkansas Code Annotated §26-75-605 et seq., (“the Statute”); and City
Ordinance No. 2310 (passed and approved March 1, 1977), which formally established the
Commission.

Section 2. Purpose of the Commission. To operate in accordance with all applicable laws,
including without limitation the Statute and City Ordinance No. 2310, in using proceeds of
the City of Fayetteville’s hotel, motel, and restaurant tax (“HMR tax”) to advertise and
promote the City of Fayetteville and its environs and for any other lawful, appropriate
purposes.

Section 3. Membership of the Commission. The membership of the Commission will be
composed in accordance with the Statute, and unless preempted by conflicting provisions
of the Statute, the seven (7) members will include:

 i. Four (4) members that shall be owners or managers of businesses in the
 tourism industry, at least three of whom shall be owners or managers of
 hotels, motels, or restaurants and shall serve for staggered terms of four (4)
 years;
 ii. Two (2) members that shall be members of the governing body of the City
 of Fayetteville, selected by the governing body, and shall serve at the will of
 the governing body; and,
 iii. One (1) member that shall be from the public at large and shall serve for a
 term of four (4) years.

Section 4. Officers of the Commission. At the first meeting of each year, the Commission
will elect one of its members as its Chair whose term will be for one (1) year. The Chair
can be elected for succeeding terms.

Section 5. Vacancies on the Commission. A vacancy in any of the tourism industry
positions or in the at-large position shall be filled by appointment of the Commission with
the approval of the governing body of the City of Fayetteville. A vacancy may result from
the expiration of a regular term or be declared by the Chair if at any time a Commissioner
resigns, dies, or is absent from three (3) consecutive meetings without just cause.

 II. Duties of the Commission

Section 1. Essential Function. The Commission is the body that determines the use of the
City of Fayetteville’s advertising and promotion fund resulting from the HMR tax.

Section 2. Hiring of Staff. The Commission will be responsible for the hiring, supervision,

 53
and continued employment of an Executive Director a CEO. The Commission delegates to the
Executive Director all authority and responsibility necessary to properly administer the business of the
Commission and its agencies, within policies set by the Commission and subject to its review,
including financial policies specifically addressing spending and budgeting activities. The
Commission has the authority to appoint an interim CEO when necessary; full details of this
policy are available in the employee handbook.

Section 3. Regular Meetings. The Commission will hold meetings regularly on a consistent
day and time, either in-person or virtually, notice of which shall be published. The time, place
and method of meetings are subject to change at the discretion of the Chair, upon published
notice.
Section 4. Hybrid meetings. Whenever possible, in-person commission meetings will be
made available for virtual attendance. Commissioners should make every effort to be
present for in-person meetings. When circumstances prohibit in-person attendance,
commissioners may participate virtually so long as their virtual attendance at in-person
meetings does not exceed three meetings in a calendar year. Remote attendance will be via
means that comply with all applicable provisions of Arkansas Code Annotated 25-19-
106(e)(6); we will publish the public virtual attendance meeting links when we publish
public meeting agendas.


 Section 5. Special meetings. Special meetings of the Commission may be called, for any
 purpose, by the Chair or any three members of the Commission at such times deemed
 necessary, provided:

 i. Advance notice, and corresponding agenda, of every special meeting of
 the Commission shall be distributed for each Commissioner not less than
 three (3) days before such meeting; and,

 ii. No business shall be transacted in special meetings, other than business
 referred to in the agenda.

 Section 6. Quorum. No formal business shall be conducted without a quorum of the
 Commission, defined as a majority of the Commissioners.

 Section 7. Proxy. No Commissioner may vote by proxy.

 Section 8. Budget. The Commission will annually approve a budget for the operation of
 the Commission and its agencies.

Section 9. Freedom of Information Act Arkansas state law outlines that business must be
conducted in a public meeting and this code further defines communication parameters outside of
public meetings. Discussions between commissioners and staff concerning voting or positions on
agenda items, outside of public meetings, are prohibited. This is in compliance with Ark. Code Ann.
25-19-106(f)-(h). Commissioners and staff will adhere to state code regarding Freedom of Information
Act.

 III. Reporting

 Section 1. Meeting Schedule. The Commission’s meeting schedule will be published and
 accessible to the public.
 54
Section 2. Meeting Agendas. The agenda and supporting documents for meetings of the
Commission will be distributed no later than three (3) business days before the scheduled
meeting.


 Section 3. Tax Summaries. The consolidated HMR tax report summaries will be published
and accessible to the public.

 IV. Financial Policies and Conflicts of Interest

Section 1. Financial Policies. Through its Executive Director, the Commission will
develop financial policies, implement financial procedures in accordance with those
policies, and ensure the practices of the Commission and its agencies are carried out in
accordance with those policies.

Section 2. Conflict of Interest. No Commissioner may participate in, vote on, influence, or
attempt to influence an official decision of the Commission, unless the pecuniary interest
that may accrue to the Commissioner is incidental to their vocation or accrues to the
Commissioner to no greater extent than the pecuniary interest could be foreseen to accrue
to all other members of the vocation.


 V. Amendment of the By-Laws

Amendments. Amendments to these By-Laws shall be proposed in writing at a regular
meeting of the Commission and voted on at a subsequent meeting. Amendments to these
By-Laws shall be effective with an affirmative vote of 2/3 of the members of the
Commission. If the proposed, written amendment has been distributed to all
Commissioners, a special meeting for the purpose of voting on the proposed amendment
can be called after ten (10) days following distribution to the Commissioners of the
proposed amendment.




 55
Memo
 To: Ryan Hauck, CEO, Experience Fayetteville
 Fayetteville Advertising & Promotion Commissioners
 From: Jennifer Walker, Interim CEO

Date: July 21, 2025

 Re: Community Incentive Fund – Proposed Change to Approval Process


The Community Incentive Fund was established to provide flexible, strategic support to
initiatives that enhance tourism and promote the City of Fayetteville. Historically,
disbursements from this account have been approved at the discretion of the CEO.


Staff recommends a change to the approval process for these funds. Specifically, we
propose that all future payments from the Community Incentive Fund require approval
by a majority vote of the Commission during a regularly scheduled or special meeting.


This change is intended to:
 • Increase transparency and oversight of discretionary spending
 • Ensure that expenditures reflect shared priorities and receive input from the full
 Commission
Implementation:
 • Requests for Community Incentive Fund support will continue to be received
 and reviewed by staff.
 • Staff would present eligible requests to the Commission for discussion and vote
 prior to payment.
 • No retroactive approvals would be required for payments made prior to this
 policy change.


Included in the agenda packet is a summary report for 2025 year-to-date payments
from the Community Incentive Fund for Commission review. We look forward to the
Commission’s discussion and feedback on this proposed change.



Recommendation:
Staff recommends that future payments from the Community Incentive Funds account
require approval by a majority vote of the Commission during a regularly scheduled
meeting or special meeting.




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 Fayetteville A&P Commission
 Community Incentive Detail
 January 1 through July 21, 2025
 Date Name Memo Amount

80100 · Community Event Incentives
 06/25/2025 Fairfield Inn | UAPB Marching Band Lodging for UAPB Marching Band - Juneteenth 243.44
 02/01/2025 Brittany Johnson Books + Blankets contribution 300.00
 06/13/2025 Angel Marin Arceo Comedy show 500.00
 01/27/2025 Committee for Mardi Gras Inc 2025 Mardi Gras Royal Sponsor 500.00
 05/20/2025 Kyndal Saverse Fayetteville Movement Festival sponsorship 500.00
 06/12/2025 NWA Center for Sexual Assault Let's Talk NWA 2025 Juneteenth Celebration sponsorship 500.00
 01/08/2025 Beyond A Step Inc Mom Prom 2025 Sponsorship 600.00
 01/06/2025 JazzyJae NWA Feb 2025 Blackowned Business Expo - Black Magic Sponsor 750.00
 05/16/2025 Your Yoga, LLC Yoga in the Upper Ramble - Sunsets on the Ramble 750.00
 04/01/2025 Arkansas Classical Theatre AR Classical Theatre - The Comedy of Errors 1,000.00
 01/06/2025 Barley Hops & Water Frost Fest Sponsor 2025 1,000.00
 03/13/2025 Fayetteville Chamber of Commerce Women of ALL Generations Network Sponsor 1,000.00
 05/12/2025 Jonathan DerGazarian Jam Etiquette Workshop 1,000.00
 06/28/2025 Julia Paganelli Marin Bee Balm Arkansas Literary Festival 2025 1,000.00
 05/13/2025 Ra-Ve Cultural Foundation Inc Visiting Artists' Appearance Fees 1,000.00
 03/12/2025 Travis Smith Productions LLC Music Industry Meetup (April 22) 1,000.00
 05/22/2025 Trey Marley Prairie Street Junk Market support 1,000.00
 01/02/2025 Community Creative Center Wheel Club - Year One 1,250.00
 04/27/2025 Old Friend Productions LLC Old Friends Showcase at Miller Lodge 1,500.00
 04/29/2025 Stephen Wallace Arkansas Pride Metal Fest sponsorship 1,500.00
 04/30/2025 FY25 SoNA Beyond events
 Symphony Orchestra of Northwest Arkansas 1,500.00
 04/01/2025 Visual and Performing Arts at Fenix Fenix Arts - Creekbed Carter Concert and Elder Exhibit 1,500.00
 06/23/2025 2025 NWA Fiber Festival support
 Washington County 4-H Clubs Foundation 1,500.00
 03/24/2025 Brain&Brain LLC OZ Play Event Funding 1,600.00
 04/02/2025 Raif Box HARCO 2025 Series Funding 2,000.00
 02/09/2025 Vaughn Mims HopOut 2025 shows 2,000.00
 02/28/2025 Mount Sequoyah Center Sequoyah Hall exhibitions Sponsorship 2025 2,500.00
 02/03/2025 Ozark Gravel Cyclists 2025 Bikepacking Clinic Series & Summit 2,500.00
 01/31/2025 Roger Barrett On The Map - Spring 2025 shows 2,500.00
 02/11/2025 Community Creative Center Fayetteville Gallery Coalition - Gallery Hop on March 8, 2025 2,800.00
 05/12/2025 Botanical Garden of the Ozarks Sponsor for Terrific Tuesday Nights 3,000.00
 01/31/2025 Community Creative Center 2025 Arkansas Pottery Festival sponsorship 3,000.00
 04/23/2025 KUAF 91.3 KUAF Lunch Hour sponsorship 5,000.00
 01/15/2025 NWA Martin Luther King Jr Council MLK Recommitment Celebration Sponsorship Feb 25 5,000.00
 04/29/2025 Robyn Jordan 2025 Her Set Her Sound Sponsor 5,000.00
 04/04/2025 Northwest Arkansas Equality Center Inc 2025 NWA Pride Sponsorship: Diamond Level 10,000.00
 01/24/2025 Ozark Music Initiative Ozark Music Festival grant award, June 2025 10,000.00
 04/04/2025 Northwest Arkansas Equality Center Inc 2025 NWA Pride - Friday Talent Support 18,500.00
 03/01/2025 Clinton House Museum Clinton House Museum support - 2025 25,000.00
Total 80100 · Community Event Incentives 121,793.44


80300 · TheatreSquared Contribution
 03/25/2025 TheatreSquared Inc 2025 Contribution 200,000.00
Total 80300 · TheatreSquared Contribution 200,000.00




 57 Page 1 of 1
Memo
 To: Ryan Hauck, CEO, Experience Fayetteville
 Fayetteville Advertising & Promotion Commissioners
 From: Jennifer Walker, Interim CEO

Date: July 21, 2025

 Re: Walker Stone House Lease Agreements


The Walker Stone House is currently occupied by the Folk School of Fayetteville. The
existing lease is set to expire in February 2026.


The current tenant, represented by Bernice and Bryan Hembree with Folk School
Fayetteville, has notified staff of a leadership transition and a proposed arrangement to
transfer operations of the Folk School to a new organization. Ozark Folkways has
submitted a Letter of Intent expressing interest in signing a five-year lease at a
symbolic rate of $1 per year. The proposal includes a continuation of the building’s
existing use as a community music space and assumes responsibility for preserving
key program elements such as the teachers cooperative and instrument lending library.


The proposed transition would include the donation of the “Folk School of Fayetteville”
brand name and associated assets to Ozark Folkways.


The Letter of Intent outlines the broad terms of the proposed agreement, with a target
transition date of September 1, 2025. It is non-binding and intended to serve as the
basis for further negotiation. A formal lease agreement would be brought before the
Commission for approval at a future meeting, pending review by legal counsel.


Staff are seeking Commission feedback and guidance prior to beginning the formal
lease negotiation process. A copy of the Letter of Intent is included for your reference.
Please feel free to contact me with any questions in advance of the meeting.




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