HomeMy WebLinkAbout06. VLMDAC 2021 Budget RecommendationTo:Vail Local Marketing District
From:Town of Vail Finance Department
Date:July 10, 2020
Re:Vail Local Marketing District 2021 Budget Recomendations
1.SUMMARY
Below outlines two budget plans for the VLMD based on 50% and 60% of normal revenue.
Both scenarios use $200K of fund balance for an ending fund balance equivalent to 18%. If
the board does not want to use reserves next year the expense budget could decrease even
more.
Plan A: Lodging tax collections of $1.84M are based on 50% of a normal year of revenues.
Expenditures are proposed at $2.04M and use $200K of reserves. This is a $528K decrease
from 2020 amended budgeted expenditures. The ending fund balance is $640K which is
equivalent to 18% of revenues and below the 25% council directive. The board will need to
decide if they would like to go below Council’s 25% directive.
Plan B: Lodging tax collections of $2.21M are based on 60% of a normal year of revenues.
Expenditures are proposed at $2.42M and use $200K of reserves. This is a $156K decrease
from 2020 amended budgeted expenditures. The ending fund balance is $640K which is
equivalent to 18% of revenues and below the 25% council directive. The board will need to
decide if they would like to go below Council’s 25% directive.
2019 Actual
2020 Original
Budget
2020 Amended
Budget
2020
Forecast
2021 Budget
Plan A: 50% of
2019 revenues
2021 Budget
Plan B: 60% of
2019 revenues
Income
Lodging Tax 3,711,738 3,590,000 1,865,840 1,865,840 1,843,724 2,214,898
PY Lodging Tax - - 194,180 - -
Interest Income 2,631 2,000 2,000 2,000 300 300
Total Income 3,714,369 3,592,000 1,867,840 2,062,020 1,844,024 2,215,198
Total Expenditures 3,634,714 3,500,000 2,572,000 2,572,000 2,044,024 2,415,198
$ Decrease from 2020 Budgeted Expenses (527,976) (156,802)
Revenue over
(Under) Expenditures 79,655 92,000 (704,160) (509,980) (200,000) (200,000)
Beginning Fund Balance 1,270,453 962,453 1,350,108 1,350,108 840,128 840,128
Ending Fund Balance 1,350,108 1,054,453 645,948 840,128 640,128 640,128
Fund Balance (25% req.)36%29%18%23%18%18%
*Both Plan A and Plan B use $200K of reserves and result in a Fund Balance of $640k or 18% of normal lodging tax
revenues; below the 25% council directive
2019
Actual 2020 Forecast 2021 A % of 2019 2021 B % of 2019
Jan 578,491 554,854 260,321.13 45%318,170.28 55%
Feb 617,877 503,140 278,044.43 45%339,832.08 55%
Mar 651,961 455,641 293,382.30 45%358,578.36 55%
Apr 122,276 72,259 61,138.06 50%73,365.67 60%
May 57,001 2,850 28,500.67 50%34,200.80 60%
Jun 138,364 6,918 76,100.11 55%89,936.49 65%
Jul 266,247 39,937 146,435.58 55%173,060.23 65%
Aug 216,996 43,399 119,347.92 55%141,047.54 65%
Sep 174,190 34,838 95,804.26 55%113,223.21 65%
Oct 78,702 15,740 39,350.91 50%47,221.09 60%
Nov 148,484 37,121 81,666.20 55%96,514.60 65%
Dec 661,150 165,288 363,632.67 55%429,747.70 65%
Total 3,711,738 1,931,985 1,843,724.22 50%2,214,898.05 60%
Actual Collections
60% of 2019 revenue
(40% down)
50% of 2019 revenue
(50% down)