Resort Tax Monitoring Committee

Agenda Resort Tax Monitoring Committee City Council Conference Room 2nd Floor City Hall (Remote Option) Wednesday, February 16, 2022 7:05 a.m. Remote Meeting: Microsoft Teams Join on your computer or mobile app Click here to join the meeting Or call in (audio only) +1 406-426-9894,,598353239# United States, Billings (833) 563-1755,,598353239# United States (Toll-free) Phone Conference ID: 598 353 239# 1. Call to Order. 2. Public Comment. 3. Review and approve minutes for January 26, 2022. 4. Review the monthly reports for December 2021. 5. Update on Resort Tax Funded Street and Park Projects. 6. Update on Riverside Trail. 7. Update on Transportation Plan. 8. Set next meeting date for March 2022. Members Andy Feury Doug Reed Brian Averill Trek Stephens Ken Stein Chris Schustrom Julia Olivares A. Property tax reduction for taxpayers residing in the city in an amount equal to twenty five percent (25%) of the three percent (3%) resort tax revenues derived during the preceding fiscal year; B. Provision for the repair and improvement of existing streets, storm sewers, all underground utilities, sidewalks, curbs and gutters, in an amount equal to sixty five percent (65%) of the two percent (2%) resort tax revenues derived during the preceding fiscal year; C. Bicycle paths and other park capital improvements in an amount equal to five percent (5%) of the two percent (2%) resort tax revenues derived during the preceding fiscal year; D. Repayment of a loan or a bond to finance a portion of the costs of, or to otherwise pay for, the acquisition of the conservation easement or other interests, in and around Haskill Basin in order to protect and preserve water quality and quantity, including the source drinking water supply for the municipal water system of the city of Whitefish, in an amount equal to seventy percent (70%) of the one percent (1%) resort tax revenues to be received in a fiscal year, except that if such portion of resort tax revenues received in a fiscal year is more than is needed in that fiscal year for such loan or bond, the excess will be applied to additional property tax relief in the next fiscal year; E. Cost of administering the resort tax in an amount equal to five percent (5%) of the three percent (3%) resort tax per year.  Resort Tax Monitoring Committee Minutes January 26, 2022 Present: Andy Feury, Ken Stein, Julia Olivares, Doug Reed, Chris Schustrom, Brian Averill, Vanice Woodbeck, Craig Workman, Maria Butts. 1. Review Minutes from previous meeting. Minutes from the prior meeting were approved unanimously. 2. Financial Report (October/November) October – Lodging was slightly over 2021 collections. Bars/Restaurants & Retail recognized large increases YOY. November – Lodging reflects a significant decrease, while Bars/Restaurants and Retail show significant increases YOY. We recognize that these collections are based on cash. There were many delinquencies to consider. We expect the quarterly report will supply us with a clearer picture of collections. 3. Streets and Park Projects Edgewood has been paved and is open for Winter. They were able to get lights up after all. In the Spring the sidewalks, restoration and landscaping will take place. The current plan is for E. Edgewood to roll into the Texas project next year. There is one more public meeting to discuss the Texas project on Feb 10th. We will go out to bid in April. Maria informed us that bids for Amory Park improvements will go out to bid late Spring. There is a possibility that work can begin in June. She has 2 years to utilize grants ($250,000.00) 4. Street Priorities We are currently operating under the current language, but Craig expects that there will be changes in ranking once we adopt the new verbiage and are able to include reconstruction, mill overlays, and connections. The Transportation plan is coming into focus. There will be a work session held in March. A few members on our committee expressed an interest in attending. We will revisit priorities once we have more information about the Transportation plan. 5. Next Meeting – February 16th at 7:05am  Resort Tax Report Reported in the Month Businesses Collected Tax BARS & MONTH/YEAR LODGING RESTAURANTS RETAIL COLLECTED INTEREST TOTAL Total FY19 $ 965,561 $ 1,654,530 $ 1,658,293 $ 4,278,383 5.86% $ 41,929 $ 4,320,312 FY18 vs FY19 10.33% 5.57% 3.70% 5.86% or $ 236,854 Taxable Sales FY19 $ 150,118,717 July 2019 232,446 249,822 222,176 704,445 42.05% 4,227 708,672 August 2019 107,985 171,849 184,288 464,123 -32.90% 4,340 468,463 September 2019 202,784 187,080 146,596 536,460 19.92% 4.3% 4,210 540,670 October 2019 72,020 114,362 93,111 279,493 35.35% 3,500 282,993 November 2019 31,925 104,797 154,109 290,831 2.74% 2,351 293,182 December 2019 26,204 122,189 176,468 324,861 -16.76% 1.7% 2,181 327,042 January 2020 47,244 113,913 135,507 296,664 37.17% 1,225 297,889 February 2020 28,523 88,008 119,748 236,279 -19.44% 3,502 239,781 March 2020 9,979 56,382 86,606 152,967 -34.95% -7.9% 2,172 155,139 April 2020 6,957 71,096 87,353 165,406 -15.85% 1,799 167,205 May 2020 50,570 105,786 173,207 329,563 -9.10% 1,470 331,033 June 2020 42,139 110,343 182,042 334,524 -27.23% -18.6% 3,736 338,260 Total FY20 $ 858,777 $ 1,495,628 $ 1,761,211 $ 4,115,615 -3.80% $ 34,713 $ 4,150,328 FY19 vs FY20 -11.06% -10.86% 6.21% -3.80% or $ (162,768) Taxable Sales FY20 $ 144,407,560 July 2020 178,173 214,968 236,685 629,826 -10.59% 682 630,508 August 2020 234,063 196,817 194,056 624,936 34.65% 1,066 626,002 September 2020 158,102 191,941 188,641 538,684 0.41% 5.2% 898 539,582 October 2020 88,284 112,076 119,814 320,174 14.56% 1,058 321,232 November 2020 78,378 69,415 101,398 249,190 -14.32% 561 249,751 December 2020 32,442 111,811 226,456 370,710 14.11% 5.0% 407 371,117 January 2021 46,620 111,925 132,183 290,728 -2.00% 365 291,093 February 2021 85,582 148,765 143,459 377,805 59.90% 348 378,153 March 2021 57,027 140,256 143,766 341,049 122.96% 47.2% 414 341,463 April 2021 35,142 132,266 119,185 286,593 73.27% 441 287,034 May 2021 77,012 151,978 191,091 420,081 27.47% 467 420,548 June 2021 210,216 216,079 253,610 679,905 103.25% 67.2% 2,210 682,115 Total FY21 $ 1,281,040 $ 1,798,296 $ 2,050,344 $ 5,129,681 24.64% $ 8,917 $ 5,138,597 FY20 vs FY21 50.34% 20.24% 16.42% 24.64% or $ 1,014,065 Taxable Sales FY21 $ 179,988,799 FY21 % of Collections 25% 35% 40% 100% July 2021 227,005 283,424 324,582 835,011 32.58% 835,011 August 2021 414,859 296,012 254,869 965,740 54.53% 965,740 September 2021 215,882 190,513 205,771 612,166 13.64% 34.5% 612,166 October 2021 90,251 156,461 136,035 382,747 19.54% 382,747 November 2021 36,679 124,428 207,615 368,721 47.97% 368,721 December 2021 78,801 176,472 266,384 521,657 40.72% 35.4% 521,657 January 2022 - -100.00% - - February 2022 - -100.00% - - March 2022 - -100.00% -100.0% - - April 2022 - -100.00% - - May 2022 - -100.00% - - June 2022 - -100.00% -100.0% - - Total FY22 $ 1,063,476 $ 1,227,310 $ 1,395,256 $ 3,686,042 34.85% $ - $ 3,686,042 FY21 vs FY22 38.21% 36.82% 30.76% 34.85% or $ 952,522 Taxable Sales FY22 $ 129,334,814 FY22 % of Collections 29% 33% 38% 100% Grand Total $ 11,200,434 $ 20,533,658 $ 23,504,376 $ 55,238,467 $ 886,348 $ 52,439,323 % of Total Collections 20% 37% 43% 2.9% Average since '96 Total Resort Tax Collections by Month Total Taxable Sales Since 1996 1,000,000 Oct s/b Sept 10 $ 2,410 $ 6,447 $ 5,099 $ 13,956 $ 94,556 FY96-FY15 $ 1,415,763,781 Oct900,000 s/b Sept 09 $ 239 $ 1,327 $ 4,406 $ 5,971 86,077 FY16-YTD $ 994,349,311 Total $ 2,410,113,092 800,000 700,000 $ 2,172 $ 5,120 $ 693 $ 7,985 FY18 Total Collected FY19 FY96-FY15 $ 28,315,276 600,000 FY16-YTD $ 29,830,479 FY20 500,000 Total $ 58,145,755 FY21 400,000 FY22 5% Admin 300,000 FY96-FY15 $ 1,415,764 FY16-YTD $ 1,491,524 200,000 Total $ 2,907,288 100,000 Public Portion - Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY96-YTD $ 55,238,467 $ 2,172 $ 5,120 $ 693 $ 55,246,452 $7.55 $87,284,156.93  Whitefish Lodging Report: December 2021 Data Source: Smith Travel Research  Whitefish Lodging Report December 2021 • To better understand the lodging report for December, a deeper comparison to 2019 is needed due to the severe impacts of the COVID-19 pandemic in 2020. Hence the extremely large percent changes in year over year comparison to 2020 on the previous page. • December 2021 occupancy (42.3%) was up approximately 6% compared to December 2019 (39.8%), making December 2021 the highest lodging occupancy for this month since the WCVB started receiving this data in 2016. • While the meteoric rise of ADR (average daily rate) during the summer of 2021 continued through the fall, December 2021 ADR still increased +13% compared to December 2019. This is also the highest ADR ($106.49) for the month since the WCVB started receiving this data in 2016. • December lodging occupancy slightly outperformed Whitefish short term rental occupancy within the City Limits (41% occupancy) and was surpassed by short term rental occupancy in the Whitefish Zip Code (47%) (see graph - source AirDNA).  Whitefish Lodging Report December 2021 • Glacier National Park December 2021 recreational visits were up 16% (or approx. 2,500 visits) compared to December 2019. Total yearly visits for 2021 (over 3 million visits) ended up being the second busiest year in history of GNP, only eclipsed by 2017 (3.3 million visits). • Enplanements at Glacier Park International Airport for December 2021 (23,323) was almost even compared to December 2019 (23,151). • The Canadian border was closed to non-essential travel starting on March 18, 2020 and has been partially opened for Canadians with restrictions/exemptions beginning on July 5 and with restrictions/exemptions for Americans on August 9. The United States opened non-essential international travel, with proof of vaccination status, starting November 8. • The Port of Roosville reported 6,405 personal vehicle passengers entering the United States from Canada during December 2021. This was the highest total since March 2020. In comparison, this is a 67% decrease from December 2019 (19,335 personal vehicle passengers). Source: U.S. Dept. of Transportation, Bureau of Transportation Statistics.