HomeMy WebLinkAbout2020-22 2nd Supplemental for VLMDResolution No. 22, Series of 2020
RESOLUTION NO. 22
SERIES OF 2020
A RESOLUTION APPROVING AN AMENDED OPERATING PLAN AND
BUDGET OF THE VAIL LOCAL MARKETING DISTRICT, FOR ITS FISCAL
YEAR JANUARY 1, 2020 THROUGH DECEMBER 31, 2020
le and State of
Colorado is a home rule municipal corporation duly organized and existing under the
been duly elected and qualified; and
WHEREAS, C.R.S. §29-25-
operating plan the Vail Local .
NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF VAIL, COLORADO THAT:
Section 1. The Council approves the operating plan and budget of the VLMD
for marketing related expenditures beginning on the first day of January, 2020, and
ending on the 31st day of December, 2020.
Section 2. This Resolution shall take effect immediately upon its passage.
INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town Council of
the Town of Vail held this 2nd day of June, 2020.
___________________________________
Dave Chapin, Town Mayor
Attested:
_________________________
Tammy Nagel, Town Clerk
TO:
FROM:
DATE:June 2, 2020
SUBJECT: Vail Local Marketing District Second Supplemental
I. SUMMARY
This supplemental proposes budget
recession plan in response to the economic impacts of COVID-19 public health crisis. In
this phase lodging tax revenues of $3.75 million are reduced nearly 50% ($1.85M)
to$1.9M for 2020. To make up for the short fall in revenue, the VLMDAC is proposing
to reduce expenditures by $1,115,000 or 30% from amended budget and use $704,160
of reserves. This will result in an ending fund balance of $645,948 or 18% of a normal
year
Year to date lodging tax collections (January through March) total $1.5M, down 18% from
prior. April sales tax collections for accommodation services totaled $14,980, down
95.7% down from prior year.
BUDGET REDUCTIONS
23% reduction in Paid Media (digital, television and print) in Destination markets.
100% reduction in EGE air marketing
92% reduction in Mexico efforts including PR, sales and advertising.
69% reduction in Video and Photo brand and tactical asset capture.
63% reduction in Organic Social Media and influencer efforts.
19% reduction Group Sales travel trade efforts.
100% reduction in Contingency funds ($70K).
Re-branding and associated production increase by 3%;
offset by above expense and fee reductions
-2 -
ADJUSTED MARKETING PLAN
Given the current situation with COVID -19, the VLMDAC has shifted our strategy and many
of our Marketing, Public Relations and Group Sales tactics, along with our overall Brand
messaging. Below outlines our adjusted plan:
New brand creative developed including
video, print and digital executions
Media focus is on the Front Range, with digital efforts extending to short-haul drive
markets with all efforts driving to DiscoverVail.com where images, video and
messages on Vail being open and unique offerings are featured
Short-haul markets are those within a 500-mile radius and that research has shown
travel to Vail and/or Colorado
Messaging delayed from late March to launch June 1, with flexibility and fluidity to
stop/start as needed
offerings and unique experiences in this new
situation
Public Relations focused on Front Range and long lead publications
Group Sales effort focusing on longer leads
Event messaging eliminated with potential to market late summer/fall events as
appropriate/to be determined
IV. ACTION REQUESTED OF VAIL LOCAL MARKETING DISCTRICT
The Vail Local Marketing District recommends that the approve the 2020
second supplemental budget, resulting in an ending fund balance equal to 18% of
annual revenues and below the 25% minimum.
2020 Budget
1st
Supplemental
2020 Amended
Budget Crisis
2020
Amended
Budget
Income
Lodging Tax 3,590,000 3,590,000 (1,724,160) 1,865,840
Interest Income 2,000 2,000 2,000
Total Income 3,592,000 - 3,592,000 (1,724,160) 1,867,840
Expense
Destination 1,014,512 (15,000) 999,512 (347,603)651,909
International 205,000 205,000 (189,832)15,168
Front Range 223,000 223,000 (21,500)201,500
Groups and Meetings 680,738 680,738 (132,148)548,590
Public Relations Expenses 92,500 92,500 (19,550)72,950
Content/Influencer Strategy 83,750 10,850 94,600 (26,350)68,250
Photography / Video 218,000 25,014 243,014 (169,000)74,014
Research 85,000 85,000 (10,000)75,000
Web Site 17,000 17,000 (17,000) -
Admin Miscellaneous 8,000 8,000 (3,000)5,000
Email Marketing - - -
Branding 249,500 249,500 (2,000) 247,500
Professional Fees
Database Warehousing and Research 112,500 72,000 184,500 184,500
Discover Vail professional Fees 60,295 60,295 60,295
Website Marketing - 10,000 10,000 10,000
Vail App 10,000 10,000 (4,501) 5,499
Legal and Accounting 25,000 25,000 25,000
Contingency 50,000 20,000 70,000 (70,000) -
Advertising 86,000 86,000 86,000
Advertising Agent Fees 62,000 62,000 (44,875) 17,125
Marketing Coordination-TOV 95,000 95,000 (14,500) 80,500
Marketing Coordination-VVP 40,000 40,000 (24,000) 16,000
Professional Fees - MYPR 117,500 117,500 (15,300)102,200
Total Professional Fees 598,000 162,295 760,295 (173,176)587,119
Special Event Funding
Special Event Funding -3,841 3,841 (3,841)-
Event Liaison 25,000 25,000 25,000
Total Special Events 25,000 3,841 28,841 25,000
Total Expense 3,500,000 187,000 3,687,000 (1,115,000) 2,572,000
Revenue over (Under) Expenditures 92,000 (187,000) (95,000)(704,160)
Beginning Fund Balance 962,453 1,350,108 1,350,108
Ending Fund Balance 1,054,453 1,255,108 645,948
Fund Balance (25% required) 29% 35% 18%
VAIL LOCAL MARKETING DISTRICT 2020 AMENDED BUDGET
SUMMARY OF REVENUE EXPENDITURES AND CHANGES IN FUND BALANCE