Resort Tax Monitoring Committee

Agenda Resort Tax Monitoring Committee City Council Conference Room 2nd Floor City Hall (Remote Option) Wednesday, May 25, 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 United States, Billings (833) 563-1755 United States (Toll-free) Phone Conference ID: 472 110 432# 1. Call to Order. 2. Public Comment. 3. Review and approve minutes for April 18, 2022. 4. Review the monthly reports for March 2022. 5. Update on Resort Tax Funded Street and Park Projects. 6. Set next meeting date for June 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 April 18, 2022 Present: Ken Stein, Julia Olivares, Doug Reed, Trek Stephens, Dana Smith, Vanice Woodbeck, Craig Workman, Mary Butts. 1. Review Minutes from previous meeting. Minutes from the prior meeting were approved unanimously. 2. Financial Report Increase over all categories Quarterly Report reflects 24% , 27% and 21% increase in collections for the months Oct, Nov, Dec of 2021. The number of delinquencies for 4th quarter 2021 are also significantly higher than previous years. . 3. Streets and Park Projects Armory Park – Bid are taking more time than expected. They will be presented to council in May. If they are too high, bidding will be closed and opened again at a later date. If council awards a bid in May, construction will begin in June. Texas – Bidding is open.The only bidder was LHC who were 20 – 30% over what was estimated. If awarded, the project may begin in June. Edgewood – Follow up work to begin in May. *Spokane water main replacement has been postponed. Now looking at Fall-Spring for that project. 4. Budget Review We will have a significant amount of funds for Tax Relief We are adequately funded for debt payments Maria will add lines to the budget for Bike Path Maintenance There was a motion to approve moving forward with the proposed projects. All were in favor. 5. Next Meeting – May 25th 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 60,241 142,427 137,885 340,553 17.14% - 340,553 February 2022 79,068 131,154 177,008 387,230 2.49% - 387,230 March 2022 73,108 192,830 185,509 451,447 32.37% 16.8% - 451,447 April 2022 - -100.00% - - May 2022 - -100.00% - - June 2022 - -100.00% -100.0% - - Total FY22 $ 1,275,893 $ 1,693,722 $ 1,895,658 $ 4,865,272 29.98% $ - $ 4,865,272 FY21 vs FY22 33.09% 30.49% 27.53% 29.98% or $ 1,122,171 Taxable Sales FY22 $ 170,711,309 FY22 % of Collections 26% 35% 39% 100% Grand Total $ 11,412,850 $ 21,000,069 $ 24,004,778 $ 56,417,697 $ 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 $ 1,035,725,807 Total $ 2,451,489,588 800,000 700,000 $ 2,172 $ 5,120 $ 693 $ 7,985 FY18 Total Collected FY19 FY96-FY15 $ 28,315,276 600,000 FY16-YTD $ 31,071,774 FY20 500,000 Total $ 59,387,050 FY21 400,000 FY22 5% Admin 300,000 FY96-FY15 $ 1,415,764 FY16-YTD $ 1,553,589 200,000 Total $ 2,969,352 100,000 Public Portion - Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY96-YTD $ 56,417,697 $ 2,172 $ 5,120 $ 693 $ 56,425,682 $11.07 $87,453,806.31  Whitefish Lodging Report: March 2022 Data Source: Smith Travel Research  Whitefish Lodging Report March 2022 • To better understand the lodging report for March, a deeper comparison to March 2019 (pre-pandemic) is needed due to the severe impacts of the COVID-19 pandemic in March 2020 and 2021. Hence the large percent changes in year over year comparison to 2021 on the previous page. • March 2022 occupancy (48.9%) was up approximately 4% compared to March 2019. • While the meteoric rise of ADR (average daily rate) during the summer of 2021 continued through the fall, the 2022 winter has also seen strong gains. March 2022 ADR increased +82.5% compared to March 2019. This is also the highest ADR ($157.62) for the month since the WCVB started receiving this data in 2017. • March 2022 lodging occupancy was outperformed by both Whitefish short term rental occupancy within the City Limits (60% occupancy) and by short term rental occupancy in the Whitefish Zip Code (66%). This trend also occurred during the 2020-21 ski season (source AirDNA).  Whitefish Lodging Report March 2022 • Glacier National Park March 2022 recreational visits were down -22.4% (or approx. 7,000 visits) compared to March 2021 and essentially equal to March 2019. Total yearly visits to date for 2022 are down -16% compared to the same time in 2021 but are up +23% compared to the same time in 2019. • Enplanements at Glacier Park International Airport for March 2022 (30,038) were up +31% compared to March 2021 (22,921) and up +47% compared to March 2019 (20,367). • The Port of Roosville reported 5,571 personal vehicle passengers entering the United States from Canada during March 2022. This is a 71% decrease compared to personal vehicle passengers (19,076) during March 2019 data. Source: U.S. Dept. of Transportation, Bureau of Transportation Statistics.