HomeMy WebLinkAbout02a. 091520_VLMD_2020_3rd_Budget_SupplementalTO: Vail Local Marketing District
FROM: The Vail Local Marketing District Advisory Council (VLMDAC)
DATE: September 15, 2020
SUBJECT: Vail Local Marketing District Third Supplemental
I.SUMMARY
The purpose of this supplemental is to increase lodging tax revenue forecasts beyondwhat was budgeted during the Crisis Phase of the recession plan in the second
supplemental based on year to date collections.
The VLMDAC is also requesting to supplement $52,000 to accommodate new initiativesthat will kick-start 2021 objectives.
II.REVENUE UPDATE
Earlier this year, the VLMD decreased lodging tax collections by $1.8M (48%) in responseto the COVID-19 pandemic. Spring and summer lodging tax collections have since been
better than expected. Year to date lodging tax collections (through July) total $1.9M, a
21.6% increase from the amended budget and 21.5% decrease from 2019 actuals. Withthis additional information, the VLMDAC has conservatively updated forecasts andproposes to increase current year budgeted lodging tax collections by $525,000 to$2,390,840. This full year projection is a decrease of 35.5% from 2019.
Separately, the VLMD collected an additional $200K in back taxes related to a state-widelawsuit. The additional revenue will be used to replenish the fund balance to 37%(previously projected at 17%) and to increase marketing efforts in 2021.
III.NEW OPPORTUNITIES
1.Lodging Liaison ($12,000): The enhancement of Lodging partners relationships is a
primary objective for 2021. To best impact 2021 summer marketing efforts, the
addition of a Lodging Liaison starting in 2020 is being recommended. The goal is to
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create a cohesive voice for the lodging community and create open communication
and regular reporting channels between the VLMDAC and the lodging community.
2.Data Systems Roadmap ($40,000): With Database growth as a primary objective
for 2021, it is recommended that a Data Systems Roadmap build start in 2020 to
best impact 2021 summer marketing efforts. This roadmap will complement and
increase effectiveness of current data systems in place with a 3-year outlook.
IV.BUDGET SHIFTS
1.$11,400 from Public Relation Expenses to Photo/Video Asset Acquisition
Additional Asset (photo/video) Acquisition: To include patio dining, village lifestyle
and social distanced event
2.$2,000 from Intercept Survey to Social Channel Growth
Social Channel Growth is part of our data systems growth and this will allow for
strategic dedication to the channels, year-round
3.$1,500 from Trip Giveaway to Enhanced Website Server
The existing website server has a five second load time, creating a poor user
experience. Pantheon, a server specializing in Word Press sites, has a less than
one second load time
4.$243,587 from Destination media to Front Range media
5.$191,309 from Photo/Video asset capture to Branding for new creative in response
to COVID 19, eliminating the large brand photo/video shoot
V.ACTION REQUESTED OF VAIL LOCAL MARKETING DISCTRICT
The Vail Local Marketing District Advisory Council recommends that the Vail LocalMarketing District approve the 2020 amended budget resulting in an ending fundbalance of $1,327,713 or 36% of annual revenues, above the 25% minimum.
2020 Budget
1st
Supplemental
2020 Amended
Budget
2nd
Supplemental-
Crisis
2020
Amended
Budget
3rd
Supplemental
Proposed 2020
Amended
Budget
Income
Lodging Tax 3,590,000 3,590,000 (1,724,160) 1,865,840 525,000 2,390,840
PY Lodging Tax - - - 208,765 208,765
Interest Income 2,000 2,000 2,000 2,000
Total Income 3,592,000 - 3,592,000 (1,724,160) 1,867,840 733,765 2,601,605
Expense
Destination 1,014,512 (15,000) 999,512 (331,603) 667,909 (231,587) 436,322
International 205,000 205,000 (189,332) 15,668 15,668
Front Range 223,000 223,000 (21,500) 201,500 243,587 445,087
Groups and Meetings 680,738 680,738 (156,148) 524,590 524,590
Public Relations Expenses 92,500 92,500 (19,550) 72,950 72,950
Content/Influencer Strategy 83,750 10,850 94,600 (50,350) 44,250 44,250
Photography / Video 218,000 25,014 243,014 (14,705) 228,309 (191,309) 37,000
Research 85,000 85,000 (10,000) 75,000 75,000
Web Site 17,000 60,295 77,295 66,215 143,510 143,510
Admin Miscellaneous 8,000 8,000 0 8,000 8,000
Email Marketing - - - -
Branding 249,500 249,500 (128,500) 121,000 191,309 312,309
Professional Fees
Database Warehousing and Research 112,500 72,000 184,500 (79,010) 105,490 40,000 145,490
Website Marketing - 10,000 10,000 (10,000)- -
Vail App 10,000 10,000 (4,501) 5,499 5,499
Legal and Accounting 25,000 25,000 25,000 25,000
Contingency 50,000 20,000 70,000 (70,000)- -
Advertising Agent Fees 148,000 148,000 (62,375) 85,625 85,625
Marketing Coordination-TOV 95,000 95,000 (14,500) 80,500 80,500
Marketing Coordination-VVP 40,000 40,000 0 40,000 40,000
Professional Fees - MYPR 117,500 117,500 (15,300) 102,200 102,200
Total Professional Fees 598,000 102,000 700,000 (255,686) 444,314 40,000 484,314
Special Event Funding
Special Event Funding - 3,841 3,841 (3,841) - -
Event Liaison 25,000 25,000 25,000 25,000
Total Special Events 25,000 3,841 28,841 25,000 - 25,000
Total Expense 3,500,000 187,000 3,687,000 (1,115,000) 2,572,000 52,000 2,624,000
Revenue over (Under) Expenditures 92,000 (187,000) (95,000) (704,160) 681,765 (22,395)
Beginning Fund Balance 962,453 1,350,108 1,350,108 1,350,108
Ending Fund Balance 1,054,453 1,255,108 645,948 1,327,713
Fund Balance (25% required)29%35%17%36%
VAIL LOCAL MARKETING DISTRICT 2020 AMENDED BUDGET
SUMMARY OF REVENUE EXPENDITURES AND CHANGES IN FUND BALANCE
RESOLUTION NO. 3, SERIES 2020
VAIL LOCAL MARKETING DISTRICT
A RESOLUTION AMENDING A BUDGET AND MAKING APPROPRIATIONS
TO PAY THE COSTS, EXPENSES AND LIABILITIES OF THE VAIL LOCAL MARKETING DISTRICT, FOR ITS FISCAL YEAR JANUARY 1, 2020 THROUGH DECEMBER 31, 2020.
WHEREAS, the Vail Local Marketing District board received and approved the operating plan and budget for the fiscal year 2020 on October 15, 2019; and
WHEREAS, in accordance with C.R.S. §29-1-106 a notice of budget hearing has been published; and
WHEREAS, notice of this public hearing to consider the adoption of the proposed Vail Local Marketing District budget was published in the VAIL DAILY on the 11th day of September, 2020; and
NOW THEREFORE, LET IT BE RESOLVED by the Vail Local Marketing District of Vail, Colorado, as follows:
The Vail Local Marketing District Board adopts the submitted amended budget for marketing related expenditures beginning on the first day of January, 2020, and
ending on the 31st day of December, 2020.
Attested: Signed:
_______________________________ ___________________________________ Kim Langmaid, Secretary Dave Chapin, Chairman