1. ROOM OCCUPANCY TAX (ROT) UPDATE (1)ROT is +12% for January 2016 compared to January 2015. - January is traditionally our lowest revenue month of the entire year. - December, January, & February is our lowest “quarter” (3.5% of year). (2) 2015-16 Fiscal Year up by +4.5% for the seven months. - “less than 5” up by 58.6% this year (3) Reserve balance (1/31/16 estimate) = $12.1 million.

2. The National Marine Sanctuary System 14 marine protected areas (17,000+ sq. mi of marine and Great Lake waters).

3. Nation’s 1 st Sanctuary (1975). 16 miles SE of Cape Hatteras 1-mile diameter halo extending from the sea floor up through the water column to the sea surface. USS MONITOR (Sanctuary Boundary)

4. NOAA’s Office of National Marine Sanctuaries is the trustee for the Sanctuary network which aims to conserve, protect, and enhance biodiversity, ecological integrity, and cultural legacy of each sanctuary while fostering public awareness of marine resources and maritime heritage through scientific research, monitoring, exploration, education and outreach. While each sanctuary has its own unique set of regulations, there are some regulatory prohibitions that are typical for many sanctuaries: (1) Discharging material or other matter into the sanctuary; (2) Disturbance of, construction on or alteration of the seabed; (3) Disturbance of cultural resources; and (4) Exploring/developing /producing oil, gas, or minerals (sans pre-existing). However some sanctuaries prohibit other activities such as: (1) the disturbance of marine mammals, seabirds and sea turtles; (2) operation of aircraft in certain zones: (3) use of personal watercraft; (4) mineral mining; (5) anchoring of vessels.

5. MODEL A Includes 7 shipwrecks only USS YP-389, U-85, U-352, U-701, HMT Bedfordshire, Diamond Shoals Lightship, & E.M. Clark

6. MODEL B A large geographic area generally extending seaward from land between Ocracoke Inlet and the “Haulover”, just north of Buxton. If State waters are included, this area would encompass 150 wrecks.

7. MODEL C A larger geographic area than Model B, centered near Cape Hatteras and would encompass a maximum of 175 wrecks.

8. MODEL D Three separate designated areas located near Cape Lookout, Cape Hatteras, and Nags Head. The purpose of this approach is to “…highlight several "stories" of maritime heritage along the entire Outer Banks, allowing the benefits of sanctuary designation to be enjoyed in multiple communities along the coast. Many historically important wrecks and culturally significant archaeological artifacts from many timeframes and representing several ocean uses are included. It also provides the ability to protect and manage any future potential discoveries within the larger designated areas, and to promote exploration within the boundaries to discover new maritime heritage resources.”