HomeMy WebLinkAbout030612 VLMD bud memo Final 1
MEMORANDUM
TO: Vail Local Marketing District
FROM: Vail Local Marketing District Advisory Council
SUBJECT: Vail Local Marketing District 2012 Budget Supplemental Request
DATE: March 6, 2012
1. BACKGROUND
The mission of the Vail Local Marketing District (VLMD) is to market and promote Vail to
attract overnight guests primarily during the May – October time frame, creating
economic vitality by increasing both the visitor base and lodging sales tax revenues.
Results for Summer 2011 were at record levels and showed an increase in event
attendance, lodging occupancy and sales tax collected over the summer of 2010 and
compared to other mountain resorts measured.
On October 18, 2011 the Town Council approved the 2012 VLMD Operating Plan. The
marketing objectives outlined in the plan were:
Maintain/build brand strength – continue to build long term brand awareness
that drives short term sales and position Vail as a world-class, year-round
destination brand
Solidify growth gains from FY11
o Increase volume – optimize mix
o Invigorate key destination markets
o Solidify Mexico
Improve/maintain guest satisfaction scores
Improve summer position to the industry leader in digital presence
Introduce concept of Vail’s 50th Anniversary
2. BUDGET DETAIL
At the time the 2012 budget was approved, revenue from lodging tax collections was
estimated at $2,000,000 for 2012, flat with the 2011 forecast and a 2.3% increase from
2010. Actual collections for 2011 of $2,145,988 were 7.2% higher than forecasted. This
increase in revenue along with nearly $70,000 in expense savings resulted in a fund
balance totaling $1,071,727 or 50% of annual revenues. Council’s directive is a
minimum fund balance of 25%.
While the existing 2012 budget will utilize $165,025 of this fund balance, the VLMDAC is
requesting another $150,000 for expenditures as outlined in detail in the following
section. This would leave an ending fund balance of $756,702 for 2012, or 38% of
annual revenues. In addition, the VLMDAC is requesting a re-allocation of currently
budgeted expenditures totaling $115,000. The USA Pro Cycling Challenge contribution
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of $100,000 along with $5,000 previously earmarked for marketing iconic events would
be used toward strategic goals as outlined below. The VLMDAC also requests using
$10,000 toward the ‘Living at Your Peak” Vail Symposium event within the current Iconic
Event Marketing budget. A total of $265,000 is recommended to be allocated, given the
following criteria:
Consider the goals that the Vail Town Council has recently developed relative to
marketing, focusing on the following areas:
Embracing an international focus in our destination strategy – flights, events,
marketing
Recruiting quality group business
Being proactive in our event sponsorships
Advancing health and well-being
Improving the quality of the resort experience
Ensuring we are on the cutting edge of technology
The VLMDAC is recommending the incremental $150,000 and re-allocated
$115,000 be distributed as outlined below and explained in more detail in the
accompanying presentation:
Enhanced Video Efforts $65,000
Regional Digital Efforts $58,000
Additional Mexico Programs $50,000
Increased Front Range TV $20,000
PR Expanded Efforts $15,000
Family Fun Fair $12,500
Living at Your Peak Marketing $10,000
National Sales Fam Trip $ 5,000
Summer Hiking Map $ 5,000
Contingency $24,500
TOTAL $265,000
3. ACTION REQUESTED OF VAIL LOCAL MARKETING DISTRICT
Vail Local Marketing District Advisory Council recommends that the Vail Local Marketing
District approve the proposal to Town Council for the supplemented and reallocated
items which will be presented in the evening as Resolution 12, Series 2012 approving
the supplemental and reallocated budgets and appropriating $150,000 for additional
marketing related expenditures ending on the 31st day of December, 2012.
ATTACHMENTS
VLMD 2012 Proposed Budget
VLMD Incremental Funding Recommendations Presentation