HomeMy WebLinkAbout15. VLMD First Supplemental 12.5.2021 Council Meeting
VAIL L O C AL MAR K E T IN G D IS T R IC T ME E TIN G
Vail Local Marketing D istrict Agenda
Virtual
3:00 P M, January 5, 2021
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1.Call to O rder
2.P ublic Hearings
2.1.Resolution No. 1, Series of 2021, A Resolution Amending a Budget and
Making Appropriations to P ay the Costs, Expenses and Liabilities of the
Vail Local Marketing Distric t, for the Fisc al Year J anuary 1, 2021 Through
December 31, 2021.
10 min.
Presenter(s): Mia Vlaar, Ec onomic Development Director; Carlie Smith,
Financial Services Manager
Action Requested of Counc il: A pprove or approve with amendments
Resolution No. 1, Series of 2021
Bac kground: Please see attached memo.
Staff Rec ommendation: Approve or approve with amendments Resolution
No. 1, Series of 2021
3.Adjournment
3.1.Adjournment 3:10 pm (estimate)
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January 5, 2021 - Page 1 of 8
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January 5, 2021 - Page 2 of 8
VA I L TO W N C O UNC I L A G E ND A ME MO
I T E M /T O P I C : Resolution No. 1, S eries of 2021, A R esolution A mending a B udget and Making
A ppropriations to Pay the Costs, Expenses and L iabilities of the Vail L ocal Marketing D istrict, for
the F iscal Year J anuary 1, 2021 Through D ecember 31, 2021.
P RE S E NT E R(S ): Mia V laar, Economic D evelopment Director; C arlie S mith, F inancial Services
Manager
AC T IO N RE Q UE S T E D O F C O UNC IL : A pprove or approve with amendments R esolution No.
1, Series of 2021
B AC K G RO UND: Please see attached memo.
S TAF F RE C O M M E ND AT I O N: Approve or approve with amendments R esolution No. 1, S eries
of 2021
AT TAC H ME N TS :
Description
Resolution No.1, Series of 2021 V L MD 1st S upplemental
January 5, 2021 - Page 3 of 8
To: Vail Local Marketing District
From: Vail Local Marketing District Advisory Council
Date: January 5, 2021
Subject: Vail Local Marketing District 1st Supplemental Budget Request
I. BACKGROUND
The mission of the Vail Local Marketing District (VLMD) is to market and promote Vail to
attract overnight destination guests primarily during the May to October time frame,
creating economic vitality by increasing the visitor base, sales tax and lodging tax
revenues. The overarching goal of the VLMD is to strengthen Vail’s position as a year-
round mountain resort destination that appeals to a broad audience by elevating the
summer brand position.
With the addition of the DiscoverVail.com website, the VLMD is now in a position to
promote non-ski season travel to Vail during the winter months. The goal is to better
understand high-funnel consumer interest and performance:
• Consumer demand for summer travel during the winter season (i.e., search
volume, etc.)
• Summer versus winter key metric performance (i.e. click-thru rate and cost per
click, etc.)
• Understand high-performing and click driving, non-branded summer terms
Based on this new opportunity Cactus evaluated multiple digital media options to
understand what a monthly paid media investment could look like during the winter
months to continue to drive summer and shoulder season tourism.
BUDGET DETAIL
The Vail Local Marketing District Advisory Council (VLMDAC) is recommending a
supplemental of $140,000 to be used for pay per click (PPC) search. This will include:
• Five months of non-branded summer vacation terms (i.e. summer mountain
vacation, summer weekend getaway, mountain resort hiking, etc.)
• A monthly spend level which is comparable to past VLMD summer PPC
budgets and is only charged when a listing is clicked on by consumers
January 5, 2021 - Page 4 of 8
Town of Vail Page 2
• Non-branded paid search terms only to ensure no competition with Vail Resorts
— specifically to navigate away from branded and winter-related search terms
that are aimed at driving users to vail.com
The additional $140,000 of PPC spend will be allocated between the Front Range
($115,000) and to three (to be determined) destination markets ($25,000) that can be
flexible with changing travel conditions (i.e. COVID-19). The 2021 amended fund
balance is projected to be $1,644,689, or 46% of a normal year’s annual revenues
(above Council’s 25% directive).
II. BUDGET RECLASSIFICATIONS
Since presenting the budget in October, the VLMD determined several line items
needed to be re-classified to more accurately reflect how and where the funds are
being spent. These shifts do not reflect a shift in strategy or tactics, but, rather a more
accurate representation of the true nature of the expense. Through this process, the
following budget shifts have occurred:
• Digital media advertising efforts were classified under one line item totaling
$577,164, and have since been reclassified to separate Destination Digital
Media vs. Front Range Digital Media as outlined below:
Destination Digital Media $184,692
Front Range Digital Media $392,472
• An amount of $30,000 was re-classified from Photo/Video production into
Branding and Production, to reflect this amount as being hard costs and
expenses vs. fees. In addition, $5,000 was re-classified from SITE Marketing
email line item into Production to accurate reflect how those dollars are
spent.Re-classification from Website into the Database Systems line items
resulted in $172,000 shifting from Website into Database Systems to accurately
reflect what was specific to website enhancement and development vs. overall
data systems enhancements and expenses.
• A $48,000 re-classification from Destination to Professional Fees was made to
accurately reflect the roll of the Lodging Liaison.
III. ACTION REQUESTED OF VAIL LOCAL MARKETING DISTRICT
The Vail Local Marketing District Advisory Council recommends that the Vail Local
Marketing District approve the supplemental PPC media budget of $140,000.
January 5, 2021 - Page 5 of 8
2020 Amended
Budget
Presented
2021 Budget
1st
Supplemental
1st
Supplemental
Budget Shifts
2021 Amended
Budget
Income
Lodging Tax 2,390,840 2,500,000 2,500,000
PY Lodging Tax 208,765 - -
Interest Income 2,000 1,000 1,000
Total Income 2,601,605 2,501,000 - - 2,501,000
Expense
Destination 436,322 630,164 25,000 (445,472) 209,692
International 15,668 10,000 10,000
Front Range 445,087 - 115,000 392,472 507,472
Groups and Meetings 524,590 250,000 250,000
Public Relations Expenses 72,950 92,000 92,000
Content/Influencer Strategy 44,250 50,100 50,100
Photography / Video 37,000 93,000 (30,000) 63,000
Research 75,000 75,000 75,000
Web Site 143,510 220,200 (172,000) 48,200
Admin Miscellaneous 8,000 8,000 8,000
Email Marketing - 360 360
Branding 312,309 118,000 35,000 153,000
Database Warehousing and Research 145,490 118,700 172,000 290,700
Professional Fees
Vail App 5,499 - -
Legal and Accounting 25,000 25,000 25,000
Lodging Liaison - - 48,000 48,000
Advertising Agent Fees 85,625 146,000 146,000
Marketing Coordination-TOV 80,500 95,000 95,000
Marketing Coordination-VVP 40,000 37,500 37,500
Professional Fees - MYPR 102,200 50,000 50,000
Total Professional Fees 338,824 353,500 - 48,000 401,500
Special Event Funding
Event Liaison 25,000 25,000 25,000
Total Special Events 25,000 25,000 - - 25,000
Total Expense 2,624,000 2,044,024 140,000 - 2,184,024
Revenue over (Under) Expenditures (22,395) 456,976 (140,000) - 316,976
Beginning Fund Balance 1,350,108 1,327,713 1,327,713
Ending Fund Balance 1,327,713 1,784,689 1,644,689
Fund Balance (25% required) 36% 50% 46%
VAIL LOCAL MARKETING DISTRICT 2021 PROPOSED AMENDED BUDGET
SUMMARY OF REVENUE EXPENDITURES AND CHANGES IN FUND BALANCE
January 5, 2021 - Page 6 of 8
RESOLUTION NO.1, SERIES 2021
VAIL LOCAL MARKETING DISTRICT
A RESOLUTION ADOPTING A BUDGET AND MAKING APPROPRIATIONS
TO PAY THE COSTS, EXPENSES AND LIABILITIES OF THE VAIL LOCAL
MARKETING DISTRICT, FOR ITS FISCAL YEAR JANUARY 1, 2021
THROUGH DECEMBER 31, 2021.
WHEREAS, the Vail Local Marketing District board received and approved the
operating plan and budget for the fiscal year 2021 on September 15, 2020; and
WHEREAS, in accordance with CRS section 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
29th day of December, 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 budget and
appropriates $2,184,024 marketing related expenditures beginning on the first day
of January, 2021, and ending on the 31st day of December, 2021.
Attested: Signed:
_______________________________ ___________________________________
Jenn Bruno, Secretary Dave Chapin, Chairman
January 5, 2021 - Page 7 of 8
VA I L TO W N C O UNC I L A G E ND A ME MO
I T E M /T O P I C : Adjournment 3:10 pm (estimate)
January 5, 2021 - Page 8 of 8