Beaver Creek Resort Company of Colorado. Proposed Fiscal Year 2019 Budget For the Period October 1, 2018 Through September 30, 2019

Transcription

1 Beaver Creek Resort Company of Colorado For the Period October 1, 2018 Through September 30, 2019

2 Beaver Creek Resort Company of Colorado Table of Contents Page Overview Statement of Operations Revenues Expenses Expenditures Statement of Cash Flows Statement of Financial Position

3 BEAVER CREEK RESORT COMPANY OF COLORADO Fiscal Year 2018 Financial Results Net income for fiscal year ( FY ) 2018 was $2,454,000. Total revenues exceeded budget by $952,000. Civic, Lodging Civic and Mountain and Recreation Assessments fell short of budget by $1,158,000 which was due to the historically low snow conditions from November through January. Real Estate Transfer Assessments exceeded budget by $2,090,000. Real estate sales were strong throughout FY 2018 with both condominium/townhome sales and single family/duplex sales exceeding budget. There were savings in expenses of $252,000. Activities and events and marketing had a combined savings of $629,000. These savings were offset by overages in transportation due to vehicle leases and parking lot bus repairs. The Beaver Creek Resort Company ( Resort Company ) spent $794,000 on capital projects in FY Projects included landscaping improvements, lighting enhancements, plaza furnishings, digital kiosks, recycling containers, ski and bike racks, fire pit and parking lot improvements. Other capital expenditures included maintenance of existing assets and equipment replacement. The unrestricted cash balance went from $7,123,000 at the end of FY 2017 to $9,813,000 at the end of FY Currently the Resort Company has no outstanding debt. Fiscal Year 2019 Proposed Budget The proposed FY 2019 budget shows year-end net income of $516,000 with an ending unrestricted cash balance of $8,576,000. Revenues are budgeted at $21,737 which is a decrease of $884,000 from FY 2018 revenues. Total expenses are budgeted at $21,222,000 compared to FY 2018 expenses of $20,168,000. This is an increase of $1,054,000 or 5.2%. Revenues 1. Common Assessments there will be no Common Assessment in FY Civic, Lodging Civic and Mountain and Recreation Assessments the FY 2019 budget anticipates an increase of $528,000 or a 3.9% increase over FY This increase is made up of increased guest visits along with an increase in the amount of spending per guest. 1

4 3. RETA FY 2018 RETA is budgeted at $5,502,000. This is a decrease of $1,092,000 over FY Due to the volatile nature of real estate sales, a conservative approach was utilized in developing the FY 2019 budget. 4. Special event revenues FY 2019 special event revenues are budgeted at $1,336,000. This represents a $296,000 decrease from FY 2018 revenues. Expenses 1. $2,077,000 in administrative expenses to manage the Resort Company s functional and strategic responsibilities. 2. $3,663,000 for resort activities and events. Key events and activities include: Opening Day Activities Cookie Competition Tree Lighting Members Reception Birds of Prey World Cup Races Welcome Weekend and Haymeadow Park Launch New Year s Eve Family Activities Beaver Creek Winter Culinary Festival Snowshoe Race Series Talons Challenge Beaver Creek Extraordinaire Winter Long Family Programming Blues, Brews and BBQ Festival Craft Beer Festival In the Kitchen Movies Under the Stars July 4 th Celebration Arts Festival Summer Wine and Spirits Festival Oktoberfest Zusammen Concerts by the Creek Rodeo Series Hiking Center Children s Day Camp 3. $1,416,000 contribution to the Vilar Center for the Arts to underwrite operations and the headliner series. 4. $4,815,000 to market Beaver Creek winter and summer seasons and events. 5. $2,684,000 for transportation services. 2

5 6. $2,461,000 for property maintenance, snowmelt systems, escalators, ice rink operations, parking lot maintenance, plaza maintenance, Creekside Park maintenance, landscaping and village technology. 7. $2,232,000 for Public Safety officers, gate attendants, guest attendant services and wildfire mitigation. 8. $193,000 to provide Design Review Board inspections, plan review, and enforcement services. Capital Expenditures $3,009,000 has been allocated in FY 2019 for capital improvements. $648,000 is for asset maintenance and equipment replacement. The remaining $2,361,000 is earmarked for strategic capital investment. 3

6 Statement of Operations (in thousands) Fiscal Year 2017 Actual, Fiscal Year 2018 Budget and Actual, and '18 Budget '19 Budget FY 2017 FY 2018 FY 2018 '18 Actual % FY 2019 '18 Actual % Actual Budget Actual Variance Change Budget Variance Change Revenue Common Assessments $0 $0 $0 $0 n.a. $0 $0 n.a. Civic Assessments 7,413 7,803 7,316 (487) -6.2% 7, % Lodging Civic Assessments (43) -6.2% % Mountain & Recreation Assessments 5,998 6,354 5,726 (628) -9.9% 5, % Real Estate Transfer Assessments 7,318 4,504 6,594 2, % 5,502 (1,092) -16.6% Ice Rink Revenues % % Design Review Board Fees (56) -45.1% % Business Licenses (0) -0.1% % Activities and Special Events 1,641 1,688 1,633 (55) -3.3% 1,336 (296) -18.1% Interest and Other Income % 101 (61) -37.6% Capital Contributions n.a. 0 0 n.a. Total Revenue 23,624 21,669 22, % 21,737 (884) -3.9% Expense Operating Expense Administration 1,707 1,931 1, % 2,077 (196) -10.4% Activities and Events 3,228 3,732 3, % 3,663 (345) -10.4% Vilar Center 1,454 1,347 1,451 (104) -7.8% 1, % Professional Services % 233 (88) -60.3% Group Sales % 81 (12) -18.2% Marketing 4,679 4,996 4, % 4,815 (36) -0.7% Transportation 1,832 2,002 2,492 (489) -24.4% 2,684 (192) -7.7% Property Maintenance 2,169 2,344 2,413 (69) -2.9% 2,461 (48) -2.0% Public Safety 2,126 2,158 2, % 2,232 (78) -3.6% Design Review Board % 193 (8) -4.5% Contributions and Memberships n.a. 0 0 n.a. Insurance % 252 (11) -4.7% Total Operating Expense 18,058 19,278 19, % 20,109 (979) -5.1% Other Expense Interest Expense % % Depreciation 1,097 1, % 1,076 (77) -7.8% Property Taxes % 23 (2) -9.9% Other Expense n.a. 0 0 n.a. Total Other Expenses 1,133 1,141 1, % 1,113 (75) -7.2% Total Expense 19,192 20,419 20, % 21,222 (1,054) -5.2% Net Income Before Capital Contributions 4,432 1,250 2,454 1, % 516 (1,938) -79.0% Capital Contributions n.a. 0 0 n.a. Net Income $4,432 $1,250 $2,454 $1, % $516 ($1,938) -79.0% Statement of Operations $30 $25 $20 $24 $19 $23 $22 $20 $21 In Millions $15 $10 $4.4 $5 $0 $2.5 Actual Actual Budget FY 2017 FY 2018 FY 2019 Revenue Expense Net Income/(Loss) $0.5 4

7 Revenues (in thousands) Fiscal Year 2018 Fiscal Year 2019 Actual of Total Budget of Total Common Assessments $0 0.0% $0 0.0% Civic Assessments 7, % 7, % Lodging Civic Assessments % % Mountain and Recreation Assessments 5, % 5, % Real Estate Transfer Assessments 6, % 5, % Ice Rink Revenues % % Special Event Revenues 1, % 1, % Other Revenues % % Capital Contributions 0 0.0% 0 0.0% Total Revenues $22, % $21, % Special Event Revenues Ice Rink Revenues Other Revenues Civic Assessments Real Estate Transfer Assessments Mountain and Recreation Assessments Lodging Civic Assessments 5

8 Expenses (in thousands) Fiscal Year 2018 Fiscal Year 2019 Actual of Total Budget of Total Administration $1, % $2, % Activities and Special Events 3, % 3, % Vilar Center 1, % 1, % Professional Services % % Group Sales % % Marketing 4, % 4, % Transportation 2, % 2, % Property Maintenance 2, % 2, % Public Safety 2, % 2, % Design Review Board % % Contributions and Memberships 0 0.0% 0 0.0% Insurance % % Interest Expense % % Depreciation % 1, % Property Taxes % % Total Expenses $20, % $21, % Contributions and Memberships Interest Expense Property Taxes Group Sales Design Review Board Professional Services Insurance Depreciation Vilar Center Administration Public Safety Property Maintenance Transportation Activities and Special Events Marketing 6

9 Expenditures by Category (in thousands) Fiscal Year 2018 Fiscal Year 2019 Actual of Total Budget of Total Expenses $20, % $21, % Capital Expenditures % 3, % Debt Service % % Total Expenditures $20, % $24, % Capital Expenditures Debt Service Expenses 7

10 Statement of Cash Flows and Reserve Balances (in thousands) Fiscal Year 2017 Actual, Fiscal Year 2018 Budget and Actual, and FY 2017 FY 2018 FY 2018 FY 2019 Actual Budget Actual Budget Beginning Cash Balance $3,041 $7,123 $7,123 $9,813 Cash Flow from Operations: Net Income 4,432 1,250 2, Add Back Depreciation 1,097 1, ,076 Less Capital Expenditures (849) (1,296) (794) (3,009) Changes in Assets and Liabilities (599) Cash Flow from Operations 4,082 1,061 2,690 (1,237) Cash Flow from Financing Activities: Net Borrowing / (Payment) Cash Flow from Financing Activities Ending Cash Balance 7,123 8,184 9,813 8,576 Less Outstanding Debt Ending Unrestricted Cash Balance $7,123 $8,184 $9,813 $8,576 Capital Reserve Balance Beginning Maintenance Capital Reserve $1,590 $7,123 $7,123 $9,813 Annual Funding 6,308 1,358 3,381 (589) Maintenance Capital Expenditures (775) (296) (691) (648) Ending Maintenance Capital Reserve $7,123 $8,184 $9,813 $8,576 Beginning Strategic Capital Reserve $0 $0 $0 $0 Annual Funding 74 1, ,361 Strategic Capital Expenditures (74) (1,000) (104) (2,361) Ending Strategic Capital Reserve $0 $0 $0 $0 Change in Cash Balance in Thousands $11,000 $9,000 $7,000 $5,000 FY 2017, $7,123 FY 2018, $9,813 FY 2019, $8,576 8

11 (A Colorado Nonprofit Corporation) FINANCIAL POSITION (in thousands) ASSETS September CURRENT ASSETS: Cash and cash equivalents Cash $ 7,123 $ 9,813 Restricted cash-design Review Board deposits ,778 10,410 Receivables Common assessments 4 4 Civic assessments Lodging Civic assessments Mountain and Recreation assessments Real estate transfer assessments Other receivables 1,215 1,215 1,791 1,816 Deposits and other Prepaid transportation expenses 1,169 1,036 Prepaid expenses and deposits Inventory 5 3 1,399 1,217 Total current assets 10,969 13,443 PROPERTY AND EQUIPMENT Leasehold improvements 10,232 10,091 Buildings 8,149 8,011 Vehicles Equipment 2,382 2,442 Furniture and fixtures Computers and software Artwork ,610 21,426 Less accumulated depreciation 13,277 13,596 Net property and equipment 8,333 7,830 CONSTRUCTION IN PROGRESS Total assets $ 19,302 $ 21,572 LIABILITIES AND NET ASSETS CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 1,783 $ 1,628 Deferred revenue - - Design Review Board deposits Total current liabilities 2,438 2,225 NOTES PAYABLE 0 0 UNRESTRICTED NET ASSETS 16,863 19,347 Total liabilities and net assets $ 19,302 $ 21,572 9