By Bella Butler COMMUNITY AND ENVIRONMENT EDITOR
BIG
SKY – In response to the COVID-19-induced changes to the social and economic
landscape of Big Sky, the Big Sky Resort Area District board and staff met
virtually on April 29 to discuss procedural adjustments for the coming years.
During
the April 8 board meeting, a subcommittee comprised of board members Buz Davis
and Sarah Blechta, along with BSRAD Executive Director Daniel Bierschwale and
Operations Manager Jenny Muscat, was established to analyze a number of
potential COVID-19 impact scenarios and present possible approaches to the
board.
The
subcommittee consulted with more than 20 sources, including interviews they
conducted with various community and regional actors. From these consultations,
they drew out a number of themes, including assumed impacts for two to three
years, a need for widespread testing and using travel, and tourism data to
guide decisions, among others.
On behalf of the subcommittee at the April 29 meeting, Bierschwale presented a number of propositions including a biannual appropriation cycle. This restructure would add a fall application period to the existing spring period and allocate funds collected every six months as opposed to every 12 months. The change would allow the board to react more regularly to the pandemic and its ripple effects, which have proven to be extremely fluid.
Another
recommendation brought forth by the scenario planning subcommittee was to set
aside a portion of collections as a reserve. “All of that money is extremely
important to the [recipients of resort tax funds], but that money is also
what’s going to potentially help us get through in [Fiscal Year 22] in the
event that the worst case scenario were to happen—which would be Fiscal Year
21, the summer and winter season, having no collection,” Bierschwale said at
the meeting.
The
subcommittee’s reserve recommendation was paired with the proposed concept of a
crisis management policy that would provide guidance as to when and how to use
the reserve funds in case of an emergency.
Based on a conservative forecast for March, April and May 2020 collections and with considerations for the operating budget and bond commitments, collections currently scheduled to be distributed for FY21, which begins July 1, 2020 and ends June 30, 2021, are predicted to total between $5 and 6 million, roughly $2-3 million less than the previous year.
In a document provided by the subcommittee with forecasts and recommendations, a suggested reserve of $2 million would be set aside from allocations awarded for use in FY21 and an additional $500,000 would be added each year for the next two years.
This
would leave roughly $1.3 million in cash available for the upcoming appropriation
period and set aside an equal amount to be divvied out in November. Based on
the forecast employed by the subcommittee, additional collections from the
summer season would push cash available for the fall allocation over $2.3
million, but in the “worst case scenario,” according to the subcommittee, where
collections from this summer would be minimal to nonexistent, funds would still
be available for fall distribution.
Also proposed was the continuance of the Big Sky Relief fund, which has provided critical emergency funds for the Bozeman Health Big Sky Medical Center as well as other community institutions and organizations like the Big Sky School District and the Big Sky Community Food Bank. The six-month resort tax appropriation cycle would give biannual opportunities to reevaluate Big Sky Relief as well as the BSRAD operations budget.
No actions were taken during the meeting, but it was suggested that a vote deciding whether or not to shift to a six-month appropriation cycle would be added to the agenda for the upcoming May 6 board meeting. Other items proposed by the subcommittee, such as the existence and amount of the reserve fund, will be decided at a later date.
Support was expressed for biannual allocation cycle, but board members also expressed some apprehension about the sizable proposed reserve. “I just think the board needs to be realistic also about balancing what feels safe and financially secure and worst-case scenarios with the heart of the people,” said board member and Big Sky Community Organization CEO Ciara Wolfe. “Is it worth being safe and secure to not have anything available and people to move out of town?”
Other
board members cited the Montana Department of Commerce’s recent “Montana is
worth the wait” campaign as well as the potential for a fall reemergence of
COVID-19 as justification for conservative choices now.
“We have a responsibility to make sure we have public safety and emergency services … and make sure those continue so we can support the health and safety of our community,” board member Davis said. “Are we willing—are you willing—to bet the cash we have now, to bet against that this thing is going to reemerge?” Davis, whose term will expire when a new board member takes his seat following the results of the May 5 election, warned fellow board members to be conservative.
Bierschwale
described the subcommittee’s proposition as “a strawman concept for discussion,”
which the board will consider in upcoming meetings. The potential for new faces
to grace the board at the May 6 meeting hangs in the recently cast votes. Bierschwale
said he was impressed with the responses from all candidates in the recent forum
hosted by Big Sky’s Top Shelf Toastmasters, and BSRAD’s robust orientation will
prepare any newcomers to serve on the board as it navigates the rocky road
forward.
