HomeMy WebLinkAbout12. 2016 Year End TOV_Finance2016 STATE OF THE TOWN
Vail Economic Advisory Council | April 11, 2017
BALANCED BUDGET
•Total revenue of $67.5 M down 0.7% from prior year, or $470,000
•General Fund came in $1.3M higher than budget in revenues, and generated
savings of $2.4M, or 6.5% of budget
•Capital expenditures are in line with long term plan including $47.7M budgeted in
2017 to complete projects in future years
HEALTHY RESERVES
Reserve funds have grown to $82.7M but will be reduced to $45.3M by the end of
2017
NO TOWN-ISSUED DEBT
$9.3M Vail Reinvestment Authority bonds outstanding are fully funded from
incremental property taxes resulting from Lionshead redevelopment
VEAC | Finance | 4/11/2017
2016 YEAR END RESULTS | Key Measures of Fiscal Health
Sales Tax is 39% of municipal
revenue and provides a good
representation of Vail’s
economy
2016 collections were $25.7M,
up 2.5% from prior year
By category, sales tax in 2016
•Lodging up 3%
•Retail up 3%
•Food & Bev down 1%
Impact from business closures
VEAC | Finance | 4/11/2017
2016 YEAR END RESULTS | Sales Tax Performance
-
5
10
15
20
25
30
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Millions 10-Year Sales Tax Collection by Category
Other
F & B
Lodging
Retail
Lodging occupancy is a measure of
destination guests filling our short-
term rental properties
Average daily rate (ADR) measures
pricing power of our short-term rental
properties
Chart data is provided by
DestiMetrics based on a sample
representing 61% of Vail’s estimated
4,000 short-term rental units and
competitive resorts data as included
in DestiMetrics database
VEAC | Finance | 4/11/2017
2016 YEAR END RESULTS | Lodging
Lodging
Occupancy
Average
Daily Rate
December 2016 61.8% $679
December 2015 58.5% $610
Vail’s Increase 5.7% 11.3%
Competitive
Resorts Increase 0.6% 12.5%
VEAC | Finance | 4/11/2017
2016 YEAR END RESULTS | Real Estate
Real Estate
•2016 RETT revenue of
$6.8M decreased 1.8%
from prior year
•High end transactions had
19 fewer sales and 8%
drop in collections
•Real estate sales in Vail
over $2.5 million made up
61% of total sales in 2016,
65% in 2015
0
10
20
30
40
50
60
70
80
2012 2013 2014 2015 2016
High End Real Estate Transactions
> $10M
$5M - $10M
$2.5M - $5M
VEAC | Finance | 4/11/2017
2016 YEAR END RESULTS | Marketing & Special Events
•Vail Local Marketing District Advisory
Committee (VLMDAC) focuses on marketing
Vail with $3.2 M generated from 1.4% lodging
tax
•Commission on Special Events (CSE)
supported 33 events with $830K of General
Fund dollars in 2016 plus another $150K to
support 8 life-long learning events
•Town Council allocated $859K from General
Fund for “iconic” special events
VEAC | Finance | 4/11/2017
2016 YEAR END RESULTS | Development
Development Activity Update
Building valuations of $219.3 million were recorded by the town in 2014, the 4th
highest in 10 years
2015: $126.6 million
2016: $112.0 million
Some of the most visible projects:
•Strata / The Lion
•Vail Cascade / Hotel Talisa
•Vail Valley Medical Center
•Holiday Inn / DoubleTree
VEAC | Finance | 4/11/2017
2016 YEAR END RESULTS | Summary
FISCAL STRENGTH
•Annual revenue $67.5M
•Conservative budgeting philosophy
•Healthy reserves
•No town-issued debt outstanding
ECONOMIC DRIVERS
•Strategic marketing / Guest experience
•Multitude of special events
•Continued redevelopment / renewal
•New town amenities