Resort Tax Monitoring Committee

Agenda Resort Tax Monitoring Committee City Council Conference Room 2nd Floor City Hall (Remote Option) Wednesday, June 15, 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,,402524903# United States, Billings (833) 563-1755,,402524903# United States (Toll-free) Phone Conference ID: 402 524 903# 1. Call to Order. 2. Appoint Committee Chair, Vice Chair, and Secretary. 3. Public Comment. 4. Review and approve minutes for May 25, 2022. 5. Review the monthly reports for April 2022. 6. Update on Resort Tax Funded Street and Park Projects. 7. 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 Meeting Minutes May 25, 2022 Attendees: Trek Stephens, Brian Averill, Chris Schustrom, Ken Stein, Andy Feury, Vanice Woodbeck, Craig Workman, Dana Smith, Maria Butts, Ben Davis, Kevin Gartland, Rebecca Norton Meeting was called to order at 7:10 am. Public Comment: 1. Ben Davis, Kevin Gartland, and Rebecca Norton, representing the Whitefish Strategic Housing Committee, attended the meeting to discuss the idea of a portion of resort tax allocated to housing in Whitefish. - Ben reviewed for the committee Whitefish Strategic Housing Plan work completed to date. Resort Tax is identified in the plan as a potential part of funding for housing in Whitefish. Given legislative action taken limiting some of the tools that can be used by communities for housing, the need to raise funds and implement housing projects exists. - Kevin added that the chamber board supports the idea of a mix of sources to fund housing. Dana described how a change to resort tax allocation would take place. - A ballot measure would be required to change the allocation of resort tax. - The 2023 general election would be the next opportunity for a ballot measure - If approved, the change would go into effect in early 2025, the same as the renewal of the resort tax approved by voters fall 2021. Committee thoughts on concept: Andy – It is a worthwhile process, but there needs to be a specific plan. - Resort tax has been supported because it has always had a clear plan for funds. - The process would be a good indicator of public support for this concept. Ken – Agrees with Andy. - Need specific details and more information. Brian – Housing is a need the community needs to address. - Made the point that tourism is more than just impacts to the community. - It is important to keep in mind that growth of resort tax collections currently driven by inflated prices may not continue at the current pace. - Suggested looking at CVB Community Sustainability Fund(CSF) as a potential source for part of the funding of the concept. (All in attendance agreed that a mix of funding sources would be needed). Trek - Would be in favor of portion of resort tax toward housing. - Also suggested CVB CSF as part of a funding source mix. (Dana noted for the committee that the CVB has committed $75,000 of CSF funds to Housing Whitefish to hire a grant writer). - Noted that there is value in resort tax collections. Chris – Supportive of resort tax for housing in general but suggested a specific plan to consider. - A need to clearly explain the types of housing sought in plan. - It is important to understand that while the city has not raised mills, property taxes have risen significantly, so property owners’ taxes have increased. Motion to approve the April meeting minutes was made by Trek, seconded by Ken, and approved by the committee. 2. Financial Reports: The committee reviewed the financial reports. Dana and Vanice reviewed the financial reports for the committee. Collections continue to be strong with double digit increases. Chris and Brian noted that traditional Lodging occupancy remains flat, but rates continue to increase. Trek noted that Retail business is mirroring the strong report increases. 3. Streets/Parks Project Report: • Craig reported that East Edgewood will be wrapped up by mid-June. • The Texas project was awarded to LHC, who will begin work right around July 4th • Maria reported that the Armory Park Project has been awarded to AGC. The project is being funded with Resort tax, LWCF funds, impact fees, stormwater funds, and WAG park group fundraising. Ken asked about the potential expansion of the skate park at the armory reported in the WF Pilot. Maria explained that there is a desire to build a beginner’s part of the skate park. Fundraising is beginning for the project. The meeting adjourned at just after 8 am. Next meeting is scheduled to take place Wednesday June 15, 2022 at 7:05 am in the City Hall Council Chambers Conference Room. Minutes respectfully submitted by Chris Schustrom.  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 42,243 130,622 130,656 303,521 5.91% - 303,521 May 2022 - -100.00% - - June 2022 - -100.00% -78.1% - - Total FY22 $ 1,318,136 $ 1,824,344 $ 2,026,314 $ 5,168,793 28.27% $ - $ 5,168,793 FY21 vs FY22 32.63% 27.56% 26.20% 28.27% or $ 1,139,099 Taxable Sales FY22 $ 181,361,169 FY22 % of Collections 26% 35% 39% 100% Grand Total $ 11,455,093 $ 21,130,691 $ 24,135,434 $ 56,721,218 $ 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 $ 1,046,375,666 Total $ 2,462,139,447 800,000 700,000 $ 2,172 $ 5,120 $ 693 $ 7,985 FY18 Total Collected FY19 FY96-FY15 $ 28,315,276 600,000 FY16-YTD $ 31,391,270 FY20 500,000 Total $ 59,706,546 FY21 400,000 FY22 5% Admin 300,000 FY96-FY15 $ 1,415,764 FY16-YTD $ 1,569,563 200,000 Total $ 2,985,327 100,000 Public Portion - Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY96-YTD $ 56,721,218 $ 2,172 $ 5,120 $ 693 $ 56,729,203 $12.13 $87,470,734.51  Whitefish Lodging Report: April 2022 Data Source: Smith Travel Research  Whitefish Lodging Report April 2022 • To better understand the lodging report for April, a deeper comparison to April 2019 (pre-pandemic) is needed due to the severe impacts of the COVID-19 pandemic in April 2020 and 2021. Hence the large percent changes in year over year comparison to 2021 on the previous page. • April 2022 occupancy (47.2%) was up approximately 11% compared to April 2019. • While the meteoric rise of ADR (average daily rate) started during the summer of 2021, it has continued into 2022 with strong gains. April 2022 ADR increased +20% compared to April 2019. This is also the highest ADR ($105.48) for the month since the WCVB started receiving this data in 2017. • April 2022 lodging occupancy was outperformed by Whitefish short term rental occupancy within the City Limits (59% occupancy). However, short term rental occupancy predictably dipped in the Whitefish Zip Code (43%) as Whitefish Mountain Resort closed for the 2021-22 ski season on April 10th (source AirDNA).  Whitefish Lodging Report April 2022 • Glacier National Park April 2022 recreational visits were down -31% (or approx. 16,616 visits) compared to April 2021 and were up 3% (or approx. 1,027 visits) compared to April 2019. • Enplanements at Glacier Park International Airport for April 2022 (21,855) were up +28% compared to April 2021 (17,023) and up +36% compared to April 2019 (16,061). • The Port of Roosville reported 11,547 personal vehicle passengers entering the United States from Canada during April 2022. While this is a 35% decrease compared to personal vehicle passengers (17,879) during April 2019, this is by far the highest number of personal vehicle passengers since February 2020, right before the start of the pandemic. This is not surprising considering that Canadian border restrictions were lessened starting April 1, 2022. Source: U.S. Dept. of Transportation, Bureau of Transportation Statistics.