FY21 Annual Report by Big Sky Resort Area District

BIG SKY RESORT AREA DISTRICT FY21

Annual Report July 2020 - June 2021

Since 1992, the District has collected a tax on the sales of “luxury” goods and services. Approximately $80 million in investments have played a significant role in funding programs and projects throughout Big Sky. These dollars have been a pivotal tool for funding Big Sky’s capital, programming, and administrative priorities. Areas of impact are HEALTH & SAFETY, PUBLIC WORKS, HOUSING, ARTS & EDUCATION, RECREATION & CONSERVATION, and ECONOMIC DEVELOPMENT. As our community grows and thrives, the District adapts to meet the demands. The community guided Our Big Sky Vision and Strategy plan, serves as an over arching framework for ensuring Big Sky executes its vision.

OU R V I S I ON: “ B ig S k y is B ETTE R TOGE TH E R as a resu l t of wise

i n vest me nts , a n e n g a g e d c o mm u n i ty, an d th e pu rsu i t of ex cellence.”

Greetings Big Sky,

The pandemic dramatically altered the landscape of Southwest Montana and continues to shape our community. Your locally elected District Directors and dedicated staff maintain focus on keeping Big Sky safe, healthy, and informed. Our collaboration through Big Sky Relief continues to execute adaptive response, recovery, and resiliency strategies. In FY21, a significant financial and staff commitment was made to oversee nearly 60,000 free PCR tests (nationally, the only one of its kind) and subsequent vaccine clinic coordination. As Big Sky pivots from addressing immediate pandemic impacts, to addressing macro-level effects, it’s important we stay nimble but rooted in the core “pillars” of the District Strategic Plan: Strategic Investments; Engage our Community; and a Culture of Excellence. This annual report serves as a summary of the milestones in FY21 and our action towards long-term strategies. We truly are BETTER TOGETHER,

Kevin Germain

Board Chair (FY21)

Daniel Bierschwale

Executive Director 3

FY21 Collections: $12,871,918

FINANCIALS

Big Sky experienced record-breaking collections in FY21, with revenues topping over $13 million. This is primarily attributable to the additional 1% for Infrastructure but also influenced by increased visitation to Southwest Montana, short-term rental compliance, annual registration requirements, and alcohol and tobacco taxation. We received a portion of COVID-19 expense reimbursement, but the full request was not reimbursed. Compared to last year, District Administrative costs decreased by approximately 11% primarily due to decreased professional fees related to revision of Ordinance 98-01 (a non-regularly occurring activity). Award funds, including Big Sky Relief, when compared to the prior year, increased by approximately 4.3%. However, this does not include the first payment of the 1% for Infrastructure funds – this expense will begin in FY22 using restricted collections from FY21. Fiscal Year 2021 (July 2020 - June 2021)

95%

Revenue Resort Tax $12,871,918 COVID-19 Reimbursements $504,879 Investments $52,983 Interest & Penalties $35,271

4% <1%

Expenses

<1%

83%

Community Investments (Awards) $8,573,052 District Administration $803,919 Big Sky Relief $925,838 Interest (Bonds) $29,999 8%

Admin

9% Community development

<1% Interest

Relief

Collections by County Gallatin 40%

Collections by Industry Hotel/Lodge/Resort (39%) Club (17%) Property Management (16%) Restaurant/Bar/Food Vendor/ Caterer (11%) Retail (8%)

Madison 60%

Liquor License (3%) Recreation Services (3%) Short-Term Rental (0.9%) Spa/Fitness (0.5%) Event (0.4%) Professional Services (0.2%)

MILESTONES MULTI-YEAR LOCAL GOVERNMENT FUNDING 3-year inter-local agreements with local governments now provides fiscal stability.

SCORED PROJECTS Creation of an objective Scoring System used during the award process.

FEDERAL FUNDING Collaboratively worked to support federal funding opportunities including USPS, ARPA, and MT64 TIGER grant.

Learn more @ ResortTax.org 6

BIG SKY RELIEF EFFORTS CONTINUED...

INCREASED COUNTY COLLABORATION

District subcommittee formed with commissioners from Madison and Gallatin counties working towards proactive solutions for jointly funded initiatives.

SHORT-TERM RENTAL COMPLIANCE

Agreements with AIRBNB & VRBO to collect taxes on behalf of rentals, increasing compliance for short-term rentals in Big Sky.

ANNUAL COLLECTIONS REACH ~$13 M First full-year of collection of additional 1% for infrastructure funds bolsters collections to new record.

July 1st, 2020

June 2020 - June 2021

Provided 150K Masks to Local Businesses

Provided Affordable Child Care & Early Childhood Education to Local Families & Frontline Workers

Supported Teacher Housing Project Costs Due to Lost Volunteers & Increased Costs

Winter 2020/2021

Summer 2020

Distributed & Processed 58,206 COVID-19 Tests

Supported Various Virtual Educational Programs, Concerts, & Entertainment Series Founding partners of Big Sky Relief:

Big Sky Surveillance Testing 4500

5.0% 4.4%

4000

4.62%

4.5% 4.0%

3500 3000 2500

2.5% 2.0%

2.15%

1.8% 1.6%

1000

2.2% 1.5% 1.4%

1500

1.7%

1.8% 1.5%

0.97%

1.3% 1229

3.0%

2.6%

20002.0%

500

3.5%

3.02%

4036 3845 3475 3444 3032 2832 2971 3711 2165 2949

1.65%

1.57% 1.18%

1.18%

631

0.82% 2789 3156 2792

2715 2910 2636

2359 1791

838

504

1.79%

405

2.0% 1.5% 1.23% 1.23% 1.0% 405

628

Week Week Week Week Week Week Week Week Week Week Week Week Week Week Week Week Week Week Week Week Week Week Week Week Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Number of Tests

Positive Rate

0.5% 0.0%

FY21 AWARDS HEALTH & SAFETY | $2,272,373 Big Sky Relief $925,838 Big Sky Fire Department Operational Support $841,426 Wildland Apparatus Replacement $80,000 Big Sky Search and Rescue Training $15,200 Volunteer Safety $650 Shop Tools/Building Infrastructure $1,300 Gallatin County Sheriff’s Office Big Sky/Canyon Patrol Division $311,328 Women In Action Direct Behavioral Healthcare Services $39,000 Indirect Behavioral Healthcare Services $11,000 Big Sky Rotary Foundation Recycling & Compost Removal $5,725 Big Sky Community Food Bank Case Management & Outreach $24,160 Operations/Admin & Food Purchase $16,746

48 Projects Awarded Funding

27 Sponsoring Organizations

PUBLIC WORKS | $3,164,520 Big Sky Transportation District Operations Post Office, LLC Operations Water & Sewer District no. 363 1% for Infrastructure HOUSING | $1,797,500 Big Sky Community Housing Trust Operations Support Down Payment Assistance RiverView Apartments Habitat for Humanity of Gallatin Valley Teacher Housing Project ECONOMIC DEVELOPMENT | $1,167,262 Big Sky Chamber of Commerce Leadership, Staffing, & Operations Local Governance Facilitation Visit Big Sky Team Big Sky Promote the Big Sky Destination

Total Committed Funds =

$490,000 $87,000 $2,587,520

$130,000 $250,000 $1,400,000 $17,500

$363,356 $5,500 $63,315 $290,299

10,112,619*

*Committed funds do not reflect actual expenses incurred in FY21.

RECREATION & CONSERVATION | $1,068,234 Big Sky Community Organization Operations & Maintenance Big Sky Skating & Hockey Association Operating Assistance Center for Large Landscape Conservation US-191 Assessment Gallatin Invasive Species Alliance Administration Environmental Stewardship Education & Awareness Community Outreach Gallatin River Task Force Operations Education & Outreach Watershed Restoration & Enhancement Water Supply Resiliency Watershed Monitoring Stormwater Infrastructure Gallatin Valley Snowmobile Association Snowmobile Trail Grooming Montana Land Reliance Permanent Conservation of Big Sky’s Fish & Wildlife Habitat and Open Space Wildlife Conservation Society Bear Smart Big Sky

MILESTONES $553,736 $67,905 $15,000 $9,118 $6,500 $5,550 $4,900 $203,952 $15,000 $30,500 $61,020 $4,000 $27,500 $28,000 $17,502 $18,051

ARTS & EDUCATION | $642,730 Arts Council of Big Sky 2021 Music in the Mountains Programming $185,800 2021 Music in the Mountains Infrastructure $11,000 2021 Summer Programming $30,000 Discovery Academy Early Childhood Tuition Assistance $37,800 Program Director $5,100 Friends of the Big Sky Community Library Library Operations $65,720 Morningstar Learning Center Tuition Reduction $157,310 Warren Miller Preforming Arts Center FY21 Artist Fees & Equipment $150,000 9

Impact Area 31%

22%

Health & Safety Public Works Recreation & Conservation Arts & Education

11% 18% 6%

12%

Economic Development Housing

Investment Type Administration Programming Capital

42%

43% 15%

HEALTH & SAFETY 12

Jointly Funded Sheriff Deputies

Gallatin County Sheriff Department

3,862

Big Sky Community Food Bank

1 1,037

Wildland Fire Engine

Big Sky Fire Department

Emergency Calls

Sheriff & Fire Departments

Emergency Food Boxes

1,025+ Hours of Mental Health Counseling Women In Action

PU BLI C WOR K S

183,350,000

Friendly Post Office Employees

Since 2001, The Post Office, LLC has provided postal services to the Big Sky Community. During those 20 years, we have seen the growth of Big Sky exceed the capacity of the current facility, and are committed to collaborating with the USPS and BSRAD to identify a longterm solution to improving postal services for the Big Sky Community.

Wate

Post Office, LLC

Formation of the new Gallatin Canyon Water & Sewer District

Gallons

Treated Wastewater

Sewe

r District #363

65,155 Skyline Rides

Big Sky Transportation District 13

H OUS IN G

Teacher Housing Project

Habitat for Humanity of Gallatin Valley 3 Units / 6 Bedrooms

Down Payment Assistance Big Sky Community Housing Trust 31 Families

MeadowView Condos Completed Big Sky Community Housing Trust 52 Units / 105 Residents

RiverView Apartments

Big Sky Community Housing Trust RiverView is a collaboration between Resort Tax, Lone Mountain Land Company, Big Sky Water & Sewer District, and Big Sky Community Housing Trust to develop workforce rental units on Lone Mountain Trail.

E CONO M IC DEVE L O PMEN T +68%

Increase in Resort Tax Collections

(First year of 4% tax rate)

Big Sky’s Population =

3,591

2020 US Census

818

Businesses Registered with the District

RECREATION &CONSERVATION 16

ROaDS App

36 Miles Groomed Winter Trails

Gallatin Valley Snowmobile Association & Big Sky Community Organization

95 Acres

of Parks Maintained Big Sky Community Organization

32% Increase

Parks & Trails Usage compared to FY20

25+ Miles

Center for Large Landscape Conservation

The ROaDs smartphone app offers a user-friendly way travelers along US-191 and Lone Mountain Trail can record live wildlife and roadkill sightings.

Summer Trails Maintained Big Sky Community Organization & Gallatin River Task Force

375,519 Gallons

of Water Saved Gallatin River Task Force 16

ARTS &ED UC A T IO N

Concerts & Events including virtual Arts Council & WMPAC

2,656

84+

Families Receiving Child Care

Morningstar Learning Center & Discovery Academy

Library Card Holders

16K+ Library Materials Circulated 17

Thank you,

RESORT TAX COLLECTORS 10 Sioux Road LLC 120 Firelight Dr Unit C6 13 Moose Ridge Rd #35 18 Jakes Lane 2500 Little Coyote Rd #49 - Scott 41 Upper Beehive - Rasmussen 81 Rose Hip LLC Airbnb, Inc Alderton Rental-25 Candlelight Dr Alger Properties LLC Alpenglow Condo 33A Alpenglow Health Enterprises, Inc. alpine dogs of big sky American Spirits Yurt LLC An Artistic Adventure Andiamo Enterprises Inc. Antler Creek Wildlife Creations Antlers Clothing Company LLC Ari O Artlandish Studios Arts Council of Big Sky 18

Ascend Properties B&K Spirits, LLC - Spanish Peaks Mountain Club Bailey’s Ventures LLC Bar Down Lodge LLC Base Lodge Lounge - Yellowstone Club Beaubien Rental Beehive Basin Brewery Beehive Property Managment BELL GLENN M & CARMEN L Best of 52 LLC Bettin Holdings LLC Big Sky Adventures & Tours Big Sky Antler Big Sky Balls Big Sky Biscuits Big Sky Conoco Big Sky Events Big Sky F&B 1 Big Sky F&B 2

Big Sky Fitness Fusion & Pilates, LLC Big Sky Food Works Inc Big Sky Landscaping and Irrigation, LLC Big Sky Print And Ship, LLC Big Sky Ranch Partners, LLC Big Sky Skin Care Big Sky Vacation Rentals Birchpoint, Inc Bitterroot Blades Black Diamond Retail - Big Sky Black Eagle #7 - Beck Black Tie Ski Rentals, LLC Blackstone Property Management Inc Blue Moon Bakery Blue Moose BBQ Body & Soul Massage Therapy Bowl and Arrow, LLC BOYNE USA, INC. Bozeman On Main, LLC Bozeman Tropical Sno BratCat Pottery BRAY P GEORGE TRUSTEE Brekke Priperties,LLC Brent Porlier Brick Bound LLC Brothel Bikes LLC

Brourman - 248 2 Rivers Rd Brown-33 Black Eagle #1666 Buck’s T4 Restaurant LLC Building 1 Cafe LLC Bunker Bar & Grill By Word of Mouth, Inc C & S Noland C&S Inc. CafeBiz LLC. Caliber Cafe Caliber Coffee Camerlo Firelight 120 Camp Sac Spirits, LLC Canyon Adventures Carlson Rental - Yellowstone 80 C Carol Barmore Original Oils Casa Moonlight, LLC Casto - Cedar Creek Unit 38 Cedar Rose Woodworking Chef Sarah Duncan, LLC Chenovick Rental Chet’s Bar, Inc China Cafe Choppers, INC Cold Smoke Property Management Consignment Cabin 18

Corral Bar Steakhouse Cosmic Cookie Creations Country Market of Big Sky, The Courtney Collins Fine Art LLC Crafted in Montana Crystal Images Dabney Reed LLC Dahlgren- 1955 Little Coyote Rd Dave Pecunies Media, LLC Delightfully Delicious LLC DENISE DAHL Double U, LLC East Slope Outdoors Edward & Jacqueline O’Donnell

Erika & Company Erin Johnson Faherty Big Sky, LLC First Friends, Inc. Fluke Forage & Fire LLC FOSSE KEVIN Fran Ward DBA Life of Riley Freedom Found, LLC Gallatin Alpine Sports Gallatin Gourmet Inc Gallatin River Gallery Gallatin River Guest Cabin - Wortman Gallatin Riverhouse Grill

Georgia Baker ArtWorks, LLC Geyser Whitewater Expeditions Glacier Condo - Rau Golf Spirits LLC GRG, LLC Grizzly Outfitters GRZESKOWIAK KRYSTYNA & WOJCIECN JTWROS Gus & Dukes LLC H&K Spirits, LLC - Yellowstone Club Hanna - 2575 Curly Bear #125 Hawkeye Property Management Headwall Sports Headwaters HLL Inc Headwaters Hosting LLC Heartland Timbers Heather Rapp Art & Design HF Buck’s T4 LLC High Altitude Property Management Hiker Midnight Holden Mountain Designs Home Aid in Big Sky Homeaway.com, Inc. Hope Vickers Hungry Moose Ideal Services Incorporated

ITtx REAL J.D. Bingman Jake & Sally Moskol Jake Mosher Jake’s Horses, Inc. James and Suzanne Albano James R. Eaton - 132 Sage Drive Janai_P.art Jill Jackson Bodywork and Yoga Jill Zeidler Ceramic Art JnK Hueftle LLC Joan Anne Jude Family Trust Josi Severson Home Fashion Fabrics JTwist, LLC Juju Gear LLC Julie Towle Keller Collection Kelly Jean Snacks Kevin Kelleher Kokoro Flowers Lakota LLC Lazy Daisy Soap LB Design LLC Leopold- 50 Crail Ranch Dr Less, Inc Lester Lou’s Designs 19

Lilly & Lopker, LLC Lodi Holdings LLC. LONE PEAK ARTS LLC Lone Peak Cinema, LLC Lone Peak Concierge Lone Peak Jewels Lone Peak Physical Therapy Lone Peak Property Management Lone Peak Taphouse, LLC Lost Head Investments Lotus Pad Big Sky LLC Love Bug Designs Lynne Benton M S Westland Fine Art 7/1/2020 M Shepard Artistry llc. Made Beautiful Studio Man Of The Woods, LLC. March Family Enterprises, LLC MCMAHON GERARD & KERRY McPherson Holdings, LLC Melanie Turner Home Mountain LLC MELTZER DONALD & SHELLEY BURTT MHMVR LLC Mia Baskets Michaelangelo’s Restaurant Milkies Pizza & Pub 20

Mitchell Bates Montana Backcountry Adventures Montana Chef Montana Healing Arts, LLC MONTANA HEAVEN LLC Montana Leather Designs Montana On My Mind Montana Whitewater, Inc Moonlight Basin Moonlight Golf Spirits LLC Mountain Vacation Lodging Mountain View Mercantile, Inc. Moving Mountains, LLC Mutiara LLC Natural Essentials, LLC Natural Retreats Natural Retreats MT, LLC Natural Yellowstone Photography Niseko Big Sky, LLC Olets, Inc. ONeill Rental-42530 Gallatin Rd Opal River Media, LLC Outlaw Partners, LLC Ozment Art Ozssage Paella Fantastica

Paparazzi Inc. Pascal & Betsy Beauvais Paul Brourman Studios, LLC Pcon Pie Productions Peter Fesler PGP Big Sky LLC Phillip Dillavou PINNACLE LL INC Rainbow Lodge Lounge Rainbow Ranch Holdings LLC Rancho Picante Bison, LLC red hen jams Researched and Developed, LLC Resort Rental, LLC-Lake Condo Rhinestone Cowgirl Rice Abby Elizabeth Trustee River Estate Properties LLC Robert & Lisa Kaufman Robert Hynson - Bert the Butcher ROCKIN REVERSE FP LLC Ronald Broadway ROUSSEAU SCOTT Roxy’s Market Russell Mace-137 Diamond Hitch Rd Russell Mace-5 Coyote Bluff Dr Rutledge Jewelers/RJ Montana

Ryan Lafoley Private Chef, Inc. Ryan Turner Photography Saddle Ridge D3- Peterson Saddle Ridge Rentals, LLC - Madison Sanook Santosha Wellness Center Savahge, LLC - Sit and Spin Scissorbills Saloon Seaside Properties III, LLC Second Friends Inc. Sentinel Ranch Operations LLC Settergren Firelight Vacation Rental Seven Restaurant, LLC Shelly Bermont Fine Jewelry Shoshone 1970 Shoshone Condo Owners’ Association Madison Sinclair’s Bakery Sister’s Gluten Free Bakery Ski Butlers Ski Tracks LLC Sky Boutique, LLC Small Batch Bags Spanish Peaks Alpacas LLC Spanish Peaks Mountain Club Spirit of the North Sled Dog 20

Stay Montana LLC Steamboat Dry Goods, Inc. Steele Pressed Juice and Java Steiner Rental-Cedar Creek 68 Summit Condo Owners’ Association Summit Motor Sports All Terrain Rentals Superpumper 80206 Sweet Buns Catering LLC TACO BUS 1 INC Tania Piovano Tarpon Dreams, LLC Tatom Design LLC TC HOTEL 1, LLC The Barn Spirits LLC The Dinner Biz The Gourmet Gals The Graphic Divide, LLC The Lodge at Big Sky The Rockies Wild Beauty The Traveling Bean Thomas Cook THP Big Sky, LLC Three Bibbs Inc Timberline Lounge - Yellowstone Club Tori Pintar Photography Totally Tasty Catering, LLP

Toto Enterprises, LLC Town Center Investment Holdings, LLC TRIBE Salon Tribute Capital LLC Two Fishies, LLC Two Pines Properties, LLC UNTERSEHER KYLE S V&K Spirits, LLC - Moonlight V&K Ulerys - Moonlight Vacasa Vacation Rentals Village Spirits 1 LLC Village Spirits 2 LLC Wildwood Nursery, Inc Willow Boutique Wilson Peak Properties Windy Raven Woerner-Powder Ridge #128 World Designs LLC Y.A.R., Inc Yellowstone Mountain Club Yellowstone Scenic Tours LLC Yellowstone Tour Guides Yeti Dogs, Inc

B O A RD

& S T A FF

DANIEL BIERSCHWALE | Executive Director KRISTIN DRAIN | Finance & Compliance Manager JENNY MUSCAT | Operations Manager SARA HUGER | Administrative Assistant

The Resort Tax is governed by a five member, elected Board of Directors. Board members live within the Big Sky Resort Area District and serve a four-year term. Registered voters who live in the District vote for Board members in May general elections in even-numbered years.

AWARD RECIPIENTS

406 • 995 • 3234 Info@ResortTax.org ResortTax.org 11 Lone Peak Drive, Suite #204 P.O. Box 160661 Big Sky, MT 59716 @BSRADMT @bsrad_mt

Administered by the Big Sky Resort Area District, Resort Tax is a 4% tax on luxury goods & services. 24