Finance Committee Minutes 20-04-16
FINANCE COMMITTEE MEETING MINUTES
THURSDAY, APRIL 16, 2020
SETUP AS A VIRTUAL MEETING VIA ZOOM DUE TO COVID-19 AND TOWN HALL CLOSURE
1. ROLL CALL
Mayor Sarah Smith-Hymes called the meeting to order. The time was 5:01 p.m.
Present:
Committee Members – Dee Wisor, Craig Ferraro, Markian Feduschak, Linn Brooks, and Steve
Coyer
Avon Town Council – Mayor Sarah Smith-Hymes and Councilor Scott Prince
Town Staff – Eric Heil, Scott Wright, Amy Greer, Paul Wisor, Charise Bishop, and Ineke de Jong
2. FORECAST OF ECONOMIC IMPACTS OF COVID-19 ON TOWN REVENUE
Finance Manager Amy Greer presented to the Finance Committee the projection models she was
tasked to develop to predict the impact of COVID-19 Public Health Orders on Town revenues. Amy
reminded the Committee that any model is only as good as its assumptions. As the Town receives
more data, she will adjust the numbers for accuracy. Amy shared information from the hotel research
and consulting group, HVS. Occupancy rates are down 68%; ADR (Average Daily Rate) is down
41.5%; and revPAR (revenue per available room) could be down 44% for 2020. HVS expects 4-5 years
of recovery to 2018 occupancy numbers.
The committee commented/inquired:
A. “…did not feel comfortable with the 4-5 year estimate.”
B. “…think a 2-3 year recovery is more likely.”
C. “Even if the virus is contained, the economic impacts will continue.”
Finance Manager Amy Greer continued with her presentation. In the best case scenario, based upon
her model, the Town is estimated to lose $2.77 Million in revenue. Finance Director Scott Wright said
that people may still utilize their time share properties and that could increase sales tax revenue. To
reach these figures, she assumed various percentage decreases in the different sectors of the local
economy. There was debate amongst the committee if those percentages should be altered. Finance
Director Scott Wright felt some of the decreases were too high based upon figures from the recession
in 2008. The Committee thought grocery stores and retail outlets such as Walmart may see increased
sales because they are the only establishments where people can shop now; and these are typically
slower months in Avon under normal circumstances. Executive Assistant to the Town Manager, Ineke
de Jong, explained the voucher program the Town put in place to assist both local restaurants and
residents experiencing economic hardship. In the model Amy Greer developed, the worse case
scenario estimates a $4 Million revenue shortfall. The committee thought some of those assumptions
should be adjusted as well. They would like to correct this information as accurate data is obtained,
but the Town will not know any actual figures until June because of the tax deferral policy put in place.
The committee commented/inquired:
A. “Has anyone asked restaurants how much their sales have been affected?”
B. “Do these figures assume we reopen in May?”
C. “What is the outlook for reopening?”
D. “Will there be a ski season this year?”
E. “What if there is a resurgence of the virus?”
FINANCE COMMITTEE MEETING MINUTES
THURSDAY, APRIL 16, 2020
SETUP AS A VIRTUAL MEETING VIA ZOOM DUE TO COVID-19 AND TOWN HALL CLOSURE
F. “The worse case scenario does not seem worse enough.”
G. “How much of the Recreation Center’s revenues are used for the facility and how much of
those revenues go to the Town?”
H. “Could we ask businesses how much money they are losing?”
Scott informed the Committee that even when we obtain that tax data, it is protected proprietary
information and could not be shared with the group. Scott also informed the Committee that while the
Recreation Center’s revenues are down, those losses are offset because the Recreation Center is
closed. He mentioned that the GFOA are holding presentations for local governments about how to
handle these circumstances. Town Council has already made $1 Million in budget cuts, but that would
not cover the estimated $4 Million in revenue losses modeled in the worse case scenario. Town
Manager Eric Heil stated if the economy begins to recover next year, he does not believe we should
cut spending or staff, so we are prepared for the 2021 ski season. If economic recovery takes the 4-5
years estimated, then that is when those decisions need to be made.
The committee discussed what the Town’s role should be in boosting the economy. Markian
Feduschak, from Walking Mountains Science Center, said they were doing what they could to hold
onto their cash. Linn Brooks, from the Eagle River Water and Sanitation District, said they would be
moving ahead with their facility expansion because they must proceed to comply with the updated
water treatment regulations. There are other projects they have decided to defer because they are
concerned about revenue loss as well. Water usage is down 25% and there is concern some customers
will be unable to pay their bills. Mayor Sarah Smith Hymes stated how the Council was initially
concerned about moving forward with capital improvements but have decided it maybe in the best
interest for the local economy to do so. The Town has a robust RETT that funds capital improvements.
If it is necessary, those funds could be reallocated. Councilor Prince said that Council intends to only
use local labor for any capital improvement projects.
Overall, Staff and Council believe that things are going better in Eagle County; and it is expected that
the County will open sooner rather than later, but social distancing requirements will remain in place.
3. APPROVAL OF MINUTES
Motion to approve the Finance Committee meeting minutes passes unanimously by a vote of 7-0.
4. ADJOURNMENT
The meeting was adjourned at 6:36 P.M.
Respectfully submitted by:
Charise Bishop
General Government Intern