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HomeMy WebLinkAbout130521 Contribution Disc Revised per Council TO: Vail Town Council FROM: Economic Development and Finance Departments DATE: May 21, 2013 SUBJECT: Contribution and Event Funding I. SUMMARY Council contributions and special event funding was a significant topic of discussion during the Council retreat held earlier this year. The purpose of this discussion is to highlight the concepts brought about during the retreat and ask for feedback from Council on any changes to funding policy or procedure prior to the 2014 budget season. This memo incorporates input from Council at the May 7 work session. II. DISCUSSION Currently, Council contribution funding applications are accepted once per year, so that Council can review the requests in conjunction with the annual operating budget. The Commission on Special Events (CSE) is funded annually as a part of the General Fund operating budget, then seeks proposals from event producers and has an extensive review process to determine funding allocations. In addition, several large events have been funded by General Fund reserves because the funding commitment is outside of annual operating budget parameters. During the retreat, Council discussed the possibility of utilizing categories of events or services to group organizations requesting funding. These categories or “tiers” would receive funding allocations during the annual budget process by way of staff approval of annual applications. The purpose of creating categories is to simplify the funding process and establish parameters around the protection of certain events. Funding allocations for Tiers I and III are recommended for a two year cycle. Other Tiers are recommended annually. Council would like to see each request for funding address how the contribution or event fits into the overall Council Goals listed below: • Improve economic vitality • Grow a balanced community • Improve the quality of the experience • Develop future leadership The following categories were discussed with Council on May 7: Town of Vail Page 2 Tier I – Vail Brand Events: 2013 Budget of $335,600 Events and programs which have been built by solid organizations over a period of time and enjoy - national and international recognition for excellence. These events represent the Vail brand at the highest level and the loss of any one of them would have a negative effect. Staff suggests we are at a sustainable level of funding for these events. The customer base includes a significant portion of destination guests and economic impact to the town is profound. Example of these events and programs would include Bravo!, Summer Mountain Games, Vail International Dance Festival and Vail Jazz Festival. Funding of this category would be allocated outside of the CSE annual budget; however the results would be reported to the Commission on Special Events as part of the standard recap process and would also be presented to Town Council. The funding for Tier I is in addition to the CSE budget. Tier II - Extraordinary Events: 2013 Budget of $1,200,000 This category would represent events and programs that would provide the town an opportunity for new or one-time events such as the US Pro Challenge, Burton US Open Snowboarding Championships and the 2015 World Alpine Ski Championships. Funding of this category would be allocated outside of the CSE annual budget due to the size of funding request and potential for one-year only type of events; however the results would be reported to the Commission on Special Events as part of the standard recap process and would also be presented to Town Council. The funding for this category would not be automatic each year, but major events and/or programs with the potential to build the Vail brand even further and have a significant impact on the town’s economy would be considered on an individual basis Tier I events would be able to apply for funding from this category with a new opportunity that fits this criteria. The funding for Tier II is in addition to the CSE budget and normally funded from reserves. Tier III – Services/Expertise: 2013 Budget of $294,620 This category would fund an aspect of services/expertise that the town does not already provide, supports the TOV physical plant and is appropriate for governmental support. Examples of this category would include support of TV5, Colorado Ski and Snowboard Museum, Betty Ford Alpine Gardens and the Eagle Valley Childcare. The town would no longer require an annual application to be filled out for ongoing operating support, which would be included in the annual budget at a set level each year. This process is intended to cover operating expenses only. Additional opportunities would also be considered. Tier IV – Life-Long Learning / New Program Development / Education: Potential:$75,000 This category is proposed for life-long learning type of events or programs. Examples of this category might include Vail Symposium, Vail Living Well and Vail Global Energy Forum, in addition to new events that meet the criteria. Each year these new events or programs would be evaluated during the budget process. After the initial 3 year period of funding this category of events, staff and Council will review the merit of continuing with the category. In-kind Funding: Estimated 2013 Budget of $300,000 Regarding annual in-kind funding allocations such as ice time at Dobson Arena, use of Donovan Pavilion/Grand View and public works or police department services, staff recommends a staff- level approval. The town would no longer require an annual application to be filled out. CSE recaps should include this funding. Additionally, sponsorship levels for the Town of Vail should also reflect the level of funding including cash and in-kind. Commission on Special Events 2013 Budget of $996,800 Town of Vail Page 3 II. ACTION REQUESTED OF COUNCIL Staff requests that Council review the memo and provide direction on the following questions: 1. Does Council support simplifying and streamlining the process as outlined? In the May 7 work session Council agreed to simplify and streamline the process and asked for the revisions outlined in this document. 2. Does Council support targeting current levels of funding or prefer a change in levels of funding? In the May 7 work session Council agreed to use these levels as a starting point and to make a final decision as part of the 2014 budget process. 3. Does Council support having Staff review and recommend funding annually as part of the budget process? Council agreed in the May 7 work session to this process understanding that Council will have the final approval during the 2014 budget process. 4. Would Council like to create a process for capital projects? Council gave direction to have the capital projects come through the capital budget process and be reviewed in the context of the 5 year capital plan.