Resort Tax Monitoring Committee

Agenda Resort Tax Monitoring Committee City Council Conference Room 2nd Floor City Hall Wednesday, N ovem ber 15, 2023, 7:05 a.m. 1. Call to Order. 2. Public Comment. 3. Review and approve minutes for October 18, 2023 meeting 4. Review the Financial Reports 5. Discuss election results 6. Street Priority List 7. Update on Resort Tax Funded Street and Park Projects. 8. Set next meeting date for January 2023 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.  WHITEFISH RESORT TAX MONITORING COMMITTEE MINUTES 10/18/23 Attendees: Doug Reed, Ken Stein, Chris Schustrom, Andy Feury, Julia Olivares, Maria Butts, Lanie Gospodarek, Dana Smith. Call to Order: 7:08 am Public Comment: None Review & Approve Minutes for June 28,2023 Meeting - Approved Review Financial Reports – Down in every category. A refund was provided to Lodging due to over- payment. Update on meeting of the Montana Resort Tax Assoc MLCT Conference In the process of creating an Association for all (11) resort communities. Whitefish is the largest. The association will meet regularly and pool resources to collaborate on legislative issues. Dana briefly discussed the plan to Annex the Mountain. Discussion on upcoming ordinance change vote to include housing. There is a little concern with the fact that we don’t have a specific program for how the funds will be used. Whitefish Chamber has created a committee to address election issues. Per Dana, once it passes, they will create a road map for the overall process related to requests and allocations. Update on Resort Tax Funded Street & Park Projects Amory Park – Funding has changed and will take longer for distributions. Karrow – First public meeting occurred. There was a lot of interest by residents. No objections. Street Priority List – Craig is unavailable so we will postpone this discussion. Set next Meeting: November 15, 2023  Monthly Resort Tax Summary – October 2023 Collection Period Below is the monthly Resort Tax Collection Report for October 2023, which shows cash collection of Resort Tax by the business in September regardless of the reporting period. The September collections show an increase of 8.39%, which is $60,573 more, compared to the September collections of the prior year (see more detailed analysis below). According to our cash-basis report, the year-to-date increase is 4.72%, totaling $122,746 more collected in FY24 compared to the same year-to-date period in FY23. The change from September 2022 to September 2023 by category on the City’s cash basis is as follows: Business Type Collections % $ Change Important Considerations When for Change Analyzing Actual September August 2023 Business Trends 2023 Lodging $254,088 15.40% $33,910 When considering estimated delinquencies and payments for prior periods, Lodging is projected to change by -.98% to 1.02% compared to the prior year. Bars & $279,202 8.40% $21,642 When considering estimated Restaurants delinquencies and payments for prior periods, Bars & Restaurants is projected to change by -.91% to 1.09% compared to the prior year. Retail $249.556 2.05% $5,021 When considering estimated delinquencies and payments for prior periods, Retail is projected to change by -.94% to 1.06% compared to the prior year. Total Short Term Rental actual collections for September 2023 was $47,686. In September 2022, we collected $54,156. Delinquencies for September as of October 31, 2023 are generally as follows: Category # of Significant # of Other Notable # of Other Delinquencies 1 Delinquencies 2 Delinquencies 3 Retail 4 0 10 Bars & Restaurants 2 1 6 Lodging 1 0 22 1 Estimated based on average (at 3%) equal to or greater than $1,000 2 Estimated based on average (at 3%) between $500 and $999 3 Estimated based on average (at 3%) less than $500  Resort Tax Report Reported in the Month Businesses Collected Tax AS OF OCTOBER 2023 BARS & MONTH/YEAR LODGING RESTAURANTS RETAIL COLLECTED INTEREST TOTAL July 2021 227,005 283,424 324,582 835,011 32.58% 504 835,515 August 2021 414,859 296,012 254,869 965,740 54.53% 535 966,275 September 2021 215,882 190,513 205,771 612,166 13.64% 34.5% 641 612,807 October 2021 90,251 156,461 136,035 382,747 19.54% 705 383,452 November 2021 36,679 124,428 207,615 368,721 47.97% 702 369,423 December 2021 78,801 176,472 266,384 521,657 40.72% 35.4% 561 522,218 January 2022 60,241 142,427 137,885 340,553 17.14% 423 340,976 February 2022 79,068 131,154 177,008 387,230 2.49% 432 387,662 March 2022 73,108 192,830 185,509 451,447 32.37% 16.8% 569 452,016 April 2022 42,243 130,622 130,656 303,521 5.91% 711 304,232 May 2022 84,935 148,911 234,101 467,947 11.39% 1,013 468,960 June 2022 205,559 231,565 245,873 682,997 0.45% 4.9% 3,704 686,701 Total FY22 $ 1,608,630 $ 2,204,819 $ 2,506,288 $ 6,319,737 23.20% $ 10,500 $ 6,330,237 FY21 vs FY22 25.57% 22.61% 22.24% 23.20% or $ 1,190,056 Taxable Sales FY22 $ 221,745,162 FY22 % of Collections 25% 35% 40% 100% July 2022 299,416 314,037 326,589 940,042 12.58% $ 940,042 August 2022 360,858 286,395 288,990 936,243 -3.05% $ 936,243 September 2022 220,178 257,560 244,535 722,273 17.99% 7.7% $ 722,273 October 2022 87,683 148,074 161,191 396,948 3.71% $ 396,948 November 2022 35,220 114,207 219,625 369,052 0.09% $ 369,052 December 2022 66,545 176,792 279,272 522,609 0.18% 1.2% $ 522,609 January 2023 64,500 169,337 157,996 391,833 15.06% $ 391,833 February 2023 91,385 182,283 203,187 476,855 23.15% $ 476,855 March 2023 63,034 159,953 161,768 384,755 -14.77% 6.3% $ 384,755 April 2023 48,647 135,857 141,223 325,727 7.32% $ 325,727 May 2023 69,227 148,975 253,450 471,652 0.79% $ 471,652 June 2023 202,421 244,332 242,361 689,115 0.90% 2.2% $ 689,115 Total FY23 $ 1,609,114 $ 2,337,802 $ 2,680,187 $ 6,627,104 4.86% $ - $ 6,627,104 FY22 vs FY23 0.03% 6.03% 6.94% 4.86% or $ 990,364 Taxable Sales FY23 $ 232,529,962 % of FY 23 Collections 24% 35% 40% 100% July 2023 347,581 366,479 391,094 1,105,154 17.56% $ 1,105,154 August 2023 285,654 286,246 261,404 833,305 -10.99% $ 833,305 September 2023 254,088 279,202 249,556 782,846 8.39% 4.72% $ 782,846 October 2023 - $ - November 2023 - $ - December 2023 - $ - January 2024 - $ - February 2024 - $ - March 2024 - $ - April 2024 - $ - May 2024 - $ - June 2024 - $ - Total FY24 $ 887,323 $ 931,927 $ 902,055 $ 2,721,304 4.72% $ - $ 2,721,304 FY24 vs FY23 34.39% 55.21% 46.54% 4.72% or $ 122,746 Taxable Sales FY24 $ 95,484,362 % of FY 24 Collections 33% 34% 33% 100% Grand Total $ 14,242,025 $ 24,780,896 $ 28,197,650 $ 67,220,570 $ 896,848 $ 68,117,968 % of Total Collections 21% 37% 42% Total Resort Tax Collections by Month Total Taxable Sales Since 1996 1,200,000 Oct s/b Sept 10 $ 2,410 $ 6,447 $ 5,099 $ 13,956 $ 94,556 FY96-FY15 $ 1,415,763,781 Oct s/b Sept 09 $ 239 $ 1,327 $ 4,406 $ 5,971 86,077 FY16-YTD $ 1,414,773,984 1,000,000 Total $ 2,830,537,765 800,000 $ 2,172 $ 5,120 $ 693 $ 7,985 FY20 Total Collected FY21 FY96-FY15 $ 28,315,276 FY22 FY16-YTD $ 42,443,220 600,000 Total $ 70,758,495 FY23 FY24 400,000 5% Admin FY96-FY15 $ 1,415,764 FY16-YTD $ 2,122,161 200,000 Total $ 3,537,925 - Public Portion Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY96-YTD $ 67,220,570 $ 2,172 $ 5,120 $ 693 $ 67,228,555 $15.04 $88,634,803.28  QUARTERLY RESORT TAX REPORT BY MONTH COLLECTED BY BUSINESSES As Updated Through October 31, 2023 Bars & Lodging Restaurants Retail Change Month Change from Change from from Same Change from Collected by Same Month Bars & Same Month Month in Same Month in Business Lodging in Prior Year Restaurants in Prior Year Retail Prior Year Total Prior Year Total YTD FY20 $ 888,092 -7.72% $ 1,526,994 -7.41% $ 1,764,751 6.58% $ 4,179,837 -2.05% Jul-20 $ 189,238 -20.51% $ 201,228 -20.42% $ 236,559 0.67% $ 627,026 -13.62% Aug-20 $ 210,425 -3.70% $ 205,975 -8.66% $ 202,970 7.09% $ 619,370 -2.24% Sep-20 $ 153,620 20.14% $ 172,521 5.19% $ 181,226 34.85% $ 507,367 19.02% Oct-20 $ 68,400 63.32% $ 117,114 5.64% $ 128,058 35.29% $ 313,572 26.75% Nov-20 $ 21,820 10.73% $ 72,586 -17.70% $ 169,704 8.74% $ 264,110 0.05% Dec-20 $ 49,539 10.40% $ 118,800 -12.33% $ 224,075 27.38% $ 392,414 10.14% Jan-21 $ 47,586 8.99% $ 126,087 2.60% $ 121,595 -9.21% $ 295,268 -1.73% Feb-21 $ 55,999 3.32% $ 130,392 -2.78% $ 145,720 17.97% $ 332,111 6.50% Mar-21 $ 56,043 110.12% $ 142,606 89.84% $ 144,493 66.00% $ 343,142 81.72% Apr-21 $ 35,943 923.14% $ 118,865 309.91% $ 114,620 40.39% $ 269,428 136.02% May-21 $ 76,291 780.46% $ 151,967 137.13% $ 202,894 19.55% $ 431,152 77.82% Jun-21 $ 220,713 264.85% $ 228,246 82.85% $ 245,880 34.09% $ 694,839 88.46% Total YTD FY21 $ 1,185,618 33.50% $ 1,786,388 16.99% $ 2,117,794 20.01% $ 5,089,799 21.77% Jul-21 $ 345,733 82.70% $ 309,290 53.70% $ 328,611 38.91% $ 983,634 56.87% Aug-21 $ 303,321 44.15% $ 264,862 28.59% $ 262,067 29.12% $ 830,250 34.05% Sep-21 $ 204,633 33.21% $ 211,347 22.51% $ 197,244 8.84% $ 613,224 20.86% Oct-21 $ 88,290 29.08% $ 155,766 33.00% $ 149,723 16.92% $ 393,779 25.58% Nov-21 $ 31,880 46.10% $ 107,090 47.54% $ 199,842 17.76% $ 338,812 28.28% Dec-21 $ 74,306 49.99% $ 164,976 38.87% $ 265,143 18.33% $ 504,425 28.54% Jan-22 $ 73,098 53.61% $ 151,956 20.52% $ 141,529 16.39% $ 366,583 24.15% Feb-22 $ 79,309 41.63% $ 162,496 24.62% $ 160,497 10.14% $ 402,302 21.13% Mar-22 $ 68,455 22.15% $ 160,876 12.81% $ 176,144 21.90% $ 405,475 18.17% Apr-22 $ 42,167 17.32% $ 128,772 8.33% $ 130,865 14.17% $ 301,804 12.02% May-22 $ 87,045 14.10% $ 157,457 3.61% $ 229,887 13.30% $ 474,389 10.03% Jun-22 $ 219,408 -0.59% $ 234,720 2.84% $ 258,470 5.12% $ 712,598 2.56% Total YTD FY22 $ 1,617,645 36.44% $ 2,209,608 23.69% $ 2,500,022 18.05% $ 6,327,275 24.31% Jul-22 $ 355,647 2.87% $ 317,420 2.63% $ 351,810 7.06% $ 1,024,877 4.19% Aug-22 $ 309,588 2.07% $ 283,797 7.15% $ 298,285 13.82% $ 891,670 7.40% Sep-22 $ 215,465 5.29% $ 237,063 12.17% $ 219,990 11.53% $ 672,518 9.67% Oct-22 $ 75,966 -13.96% $ 161,675 3.79% $ 158,084 5.58% $ 395,725 0.49% Nov-22 $ 31,322 -1.75% $ 112,806 5.34% $ 220,878 10.53% $ 365,006 7.73% Dec-22 $ 63,622 -14.38% $ 170,472 3.33% $ 253,873 -4.25% $ 487,967 -3.26% Jan-23 $ 74,539 1.97% $ 171,739 13.02% $ 160,256 13.23% $ 406,534 10.90% Feb-23 $ 82,772 4.37% $ 176,915 8.87% $ 201,725 25.69% $ 461,412 14.69% Mar-23 $ 71,178 3.98% $ 169,229 5.19% $ 166,966 -5.21% $ 407,373 0.47% Apr-23 $ 39,418 -6.52% $ 127,686 -0.84% $ 133,663 2.14% $ 300,767 -0.34% May-23 $ 76,133 -12.54% $ 161,201 2.38% $ 254,052 10.51% $ 491,386 3.58% Jun-23 $ 195,144 -11.06% $ 238,473 1.60% $ 244,996 -5.21% $ 678,613 -4.77% Total YTD FY23 $ 1,590,794 -2% $ 2,328,476 5.38% $ 2,664,578 6.58% $ 6,583,848 4.06% Jul-23 $ 359,302 1.03% $ 346,131 9.05% $ 362,543 3.05% $ 1,067,976 4.21% Aug-23 $ 305,108 -1.45% $ 304,631 7.34% $ 278,488 -6.64% $ 888,227 -0.39% Sep-23 $ 215,714 0.12% $ 241,586 1.91% $ 221,620 0.74% $ 678,920 0.95% Oct-23 $ - $ - $ - $ - Nov-23 $ - $ - $ - $ - Dec-23 $ - $ - $ - $ - Jan-24 $ - $ - $ - $ - Feb-24 $ - $ - $ - $ - Mar-24 $ - $ - $ - $ - Apr-24 $ - $ - $ - $ - May-24 $ - $ - $ - $ - Jun-24 $ - $ - $ - $ - Total YTD FY24 $ 880,124 0% $ 892,348 6.45% $ 862,651 -0.85% $ 2,635,123 1.78% Dollar figures above are not adjusted for delinquencies