HomeMy WebLinkAbout01. Discover Vail Strategic Plan and Supplemental Budget RequestDISCOVER VAIL STRATEGIC PLAN
& SUPPLEMENTAL BUDGET REQUEST
January 13, 2025
1.Discover Vail Strategic Plan
2.Strategic Action Plan Development Timeline
3.Vail Local Marketing District Budget Expectations
4.2025 Supplemental Budget Reduction Request
5.Other Business
6.Public Comment
7.Adjournment
Agenda
-Insert here
Roadmap
BRAND PLATFORM AND LOGO UPDATE
Brand Platform: Final Brand Positioning
●Brand Platform was finalized November, 2024
●Focus Groups will be conducted Q1 2025 on logo options
●Board decision to hold on launching a new logo in 2025
●Will revisit launching a new brand logo as part of the 3-year Strategic Action Plan
Brand Platform and Logo Update
VLMD BUDGET EXPECTATIONS
Operating Budget
The annual operating budget is intended for marketing expenditures. The
expenditures are not to exceed annual revenues.
Contingency
Undedicated funds allocated in the budget to address unforeseen costs or to
be available to allocate to unique or time-sensitive marketing opportunities.
Reserves/Fund Balance (minimum 25% of annual revenues)
VLMD reserves are intended to remain available to address significant events
that could negatively affect revenue (i.e. fire,recession). When utilized, these
funds are to be used for one-time marketing expenditure, not to support
normal operating costs.
VLMD Budget Expectations
2025 SUPPLEMENTAL BUDGET REDUCTION REQUEST
2024 Preliminary Results
2024 Preliminary Results 2024 Budget 2024 Estimated
Actuals
Variance
Lodging Tax $5,395,000 $5,500,571 $105,571
Interest $65,000 $240,000 $175,000
Total Revenue $5,460,000 $5,740,571 $280,571
Expenditures ($6,653,563)($6,046,063)$607,500
Use of Fund Balance ($1,173,563)($305,492)$868,071
Ending Fund Balance $2,290,232
(42%)
$3,158,303
(47%)
VLMD was budgeted to use $1.17M of reserves in 2024 but instead is forecasted to use
$305.5K mainly due to expenditure savings, leaving a Fund Balance at $3.2M, 57%
2024 Preliminary Results
Expenditures Savings
Vail Brand Launch $201,000
Data Subscription $70,000
Vendor Expenses $91,500
Contingency $245,000
Estimated Total $607,500
2025 Proposed Amended Summary
2025 Revenue Projection (no change) $ 5,581,000
●Lodging Tax revenue is forecasted at $5,518,000
●Interest revenue is projected at $63,000
2025 Original Budgeted Expenditures $ 6,503,000
2025 Proposed Amended Budgeted Expenditures $ 5,676,393 (Option A)
$ 5,581,000 (Option B)
2025 Proposed Amended Option A
Original Budget $ 6,503,000
Reduction of one time spends ($ 826,607)
New Brand Launch ($ 490,000)
Fee Reductions (AI, Content, Web) ($ 85,042)
International Trade Show Booth ($ 50,000)
YouTube Video Production ($ 170,000)
Database Subscriptions ($ 31,565)
Adjusted 2025 Budget Option A: $ 5,676,393
Use of Fund Balance $ 95,393
2025 Proposed Amended Option B
Original Budget $ 6,503,000
Reduction of one time spends ($ 922,000)
New Brand/Logo Launch ($ 490,000)
Fee Reductions (AI, Content, Web) ($ 85,042)
International Trade Show Booth ($ 50,000)
YouTube Video Production ($ 170,000)
Database Subscriptions ($ 31,565)
Paid Media ($ 95,393)
Adjusted 2025 Budget Option A: $ 5,581,000
Use of Fund Balance $ 0
Future expenditures will align with outcomes
of the Strategic Action Plan
Use of Reserves:
2023: $437.5K
2024: $305.5K
2025 Budget:
$922.0K
Option A: $95.0K
Option B: -
VLMD Revenue / Expenditures
Available Reserves
above 25%:
Option A: $ 1,610,410
Option B: $ 1,705,803
Vail Local Marketing District Reserves
55% 57%
29%
47%
Action Requested of Board
Approve or approve with changes the 2025 supplemental budget
reduction from $6,503,000 to
Option A: $5,676,393
or
Option B: $5,581,000
to present to the Vail Local Marketing District on January 21, 2025