HomeMy WebLinkAbout15. 2017 Year End TOV Kathleen Halloran2017 STATE OF THE TOWNVail Economic Advisory Council | May 8, 2018
BALANCED BUDGET• Total revenue of $67.0 M down 0.7% from prior year, or $496,000• General Fund came in $371K less than budget in revenues, offset by expenditure savings of $1.9M, or 5.0% of budget• Capital expenditures are in line with long term plan including $44.0M budgeted in 2018 to complete projects in future yearsHEALTHY RESERVESReserve funds are $74.4M but will be reduced to $52.4M by the end of 2018NO TOWN-ISSUED DEBT$8.8M Vail Reinvestment Authority bonds outstanding are fully funded from incremental property taxes resulting from Lionshead redevelopmentVEAC | Finance | 5/8/20182017 YEAR END RESULTS | Key Measures of Fiscal Health
Sales Tax is 39% of municipal revenue and provides a good representation of Vail’s economy2017 collections were $25.6M, flat with the prior yearBy category, sales tax in 2017• Lodging down 1.7%• Retail flat • Food & Bev up 2.4%Impact from extended business closures showed some relief by December 2017VEAC | Finance | 5/8/20182017 YEAR END RESULTS | Sales Tax Performance ‐ 5 10 15 20 25 302008 2009 2010 2011 2012 2013 2014 2015 2016 2017Millions10‐Year Sales Tax Collection by CategoryOtherF & BLodgingRetail
Vail lagged other peer resorts for 2017 sales tax collections.•Lack of snowfall•reduced lodging inventory for much of the year•Leveling off after recession recoveryVEAC | Finance | 5/8/20182017 YEAR END RESULTS | Sales Tax PerformanceSales Tax 2017/2016Vail‐0.07%Breckenridge3.70%Aspen2.20%Steamboat3.60%
VEAC | Finance | 5/8/20182017 YEAR END RESULTS | Real EstateReal Estate• 2017 RETT revenue of $6.3M decreased 7.2% from prior year• 2016 sale of the Four Seasons skews that performance; Without it, RETT was up 13% for 2017• High end transactions (over $2.5M) had a 33% increase in number of transactions, making up 62% of taxes collected010203040506070802012 2013 2014 2015 2016 2017High End Real Estate Transactions> $10M$5M ‐ $10M$2.5M ‐ $5M
VEAC | Finance | 4/11/20172017 YEAR END RESULTS | Marketing & Special Events• Vail Local Marketing District Advisory Committee (VLMDAC) focuses on marketing Vail with $3.3 M generated from 1.4% lodging tax• Commission on Special Events (CSE) supported 31 events with $837K of General Fund dollars in 2016 plus another $151.5K to support 8 life-long learning events and $51K for firework displays• Town Council allocated $925K from General Fund for “iconic” special events
VEAC | Finance | 5/8/20182017 YEAR END RESULTS | SummaryFISCAL STRENGTH• Annual revenue $67.0M • Conservative budgeting philosophy• Healthy reserves• No town-issued debt outstandingECONOMIC DRIVERS• Strategic marketing / Guest experience• Multitude of special events• Renewed redevelopment • Continued improvement to town amenities