LYBURN — Board member Glenn Yost had some good news regarding the Hatfield-McCoy Regional Recreation Authority treasurer’s report.

Yost said in the third quarter of the year the authority's total assets was up around $600,000 from this time last year and current liabilities were only up by $3,000 from last year.

"It's about a $500,000 improvement from last year,” Yost said explaining that user fees were also up by $24,000 from last year at a time when much of the nation has been mired in an economic crisis.

"We continue to be in the black," Yost said explaining "the trail system, financially, has never been in better shape.”

HMRRA Executive Director Jeff Lusk said the budget is pretty much on track with projections.

Lusk said the authority has two and a half months left on the calender to meet projected goals and is already close.

"Expenses were under budget in every category," Lusk noted, saying he expects a total of $400,000 in net income at the end of the fiscal year, which will be up by $200,000 from last year.

That’s not a bad statement for an agency which once wondered if it would ever be able to support itself, Lusk said.

Board members had a thorny question to face regarding sponsorship monies.

Lusk explained that currently the authority has two major sponsors who account for over 70 percent of those funds and that even though the other nine smaller sponsors require as much work in terms of negotiating contracts and bureaucracy they only bring in around 30 percent of the total.

The sponsorship program brought in $160,000 in revenue last year but this years total will be down by about half when even NASCAR has been having a tough time keeping sponsors in the current national economy.

Lusk said the authority had two options — it could do away with sponsorships entirely or it could change the way it handles them and only deal with the larger sponsors and Lusk asked the board for a decision in the matter.

"These sponsorships are not free money and a lot of work goes into them," said Marketing Director Mike Pinkerton.

Pinkerton said eliminating the sponsorships would make Hatfield-McCoy like other state agencies and it would free up the staff to focus on building more trails and marketing them instead.

On the other hand, it would mean turning down offers that could be a windfall in revenue when the national economy gets better, Pinkerton said.

"One or two companies are bringing in the lion’s share of revenue even though the work is not any less for the smaller sponsors," he said, noting he could foresee changing the program to deal with major sponsors only.

"If we did, there would be one or two sponsors and we could handle it in house," Pinkerton said.

One board member asked if the marketing committee could make a recommendation and report back at the December meeting.

Lusk said if he had to make a recommendation himself, he would advise keeping on the bigger sponsors who have been bringing in the most revenue.

"That would preserve the revenue," Lusk said, noting that when all eight counties have their trail systems online and the economy grows again, the trails could be more attractive to major sponsors again.

HMRRA Board President Art Kirkendoll recommended setting a minimum level for sponsorships and Yost agreed, saying that with economic growth the potential for extra revenue would make it worth keeping.

Currently, Lusk said, Kawasaki and a tire manufacturer are the biggest sponsors.

"It can be a lot of hard work dealing with sponsors," noted former director and now board member Matt Ballard.

"It was for big manufacturers like Kawasaki. You could get yourselves down to the very best ones. It is good to keep up your relationships with ATV manufacturers who have continued to support the sport of ATV riding."

Lusk said smaller sponsors might be upset at the change but noted that doing away with lengthy contract negotiations would free up staff time for administrative chores.

Lusk said currently the authority had one major event a year and one web site to offer a sponsor and noted that smaller sponsors could always do advertising instead of sponsorships.

One marketing specialist at the meeting said it was a good idea to be thoughtful about how you end a relationship.

"Time is money and a lot of time being spent on some of the smaller sponsors may not be worth it," said Beverly Wellman of the HMRRA Marketing Committee, who recommended setting a minimum of $35,000 for sponsorships.

"A few years down the road, we could have the potential for growth, so let’s not close the door," Kirkendoll said.

Richard Browning said turning away funding from sponsors could come back to haunt the authority which has had to go to Charleston and ask for funds with hat in hands many times in the past and that it was important to realize how such a move might be perceived in Charleston.

The marketing committee will come back with a proposal at the December 10 board meeting.