Loading...
DRAFT - Finance Committee Minutes 2024-05-20FINANCE COMMITTEE MEETING MONDAY, MAY 20, 2024 HYBRID MEETING; IN-PERSON AND ON TEAMS Finance Committee Meeting, May 20, 2024 1 | 2 1. ROLL CALL The meeting began at 5:10 p.m. PRESENT- Finance Committee: Lisa Post (virtually), Craig Ferraro (virtually), John Widerman and Steve Coyer. Town Council: Councilor Rich Carroll Town Staff: Town Manager Eric Heil, Chief Financial Officer Paul Redmond and Chief Administrative Officer Ineke de Jong, as Secretary. ABSENT- Finance Committee: Clark Rogers and Markian Fedeschuk Town Council: Councilor Tamra Underwood Town Manager Eric Heil kicked off the meeting by thanking all committee members for their patience during the long pause in meetings as we started up the Avon Downtown Development Authority (DDA) Board which has taken up a lot of staff time in the last 12 months. Eric expressed staff was happily surprised by the enthusiasm and interest from everyone to continue to serve on the committee and tackle a list of finance topics. 2. APPROVAL OF JUNE 19TH, 2023 MINUTES Steve Coyer moved to approve the minutes from the June 19th, 2023 meeting and John Widerman seconded the motion. The motion passed unanimously by those present. 3. PUBLIC COMMENT There was no public comment. 4. GENERAL UPDATE ON 2024 FINANCIALS (CHIEF FINANCIAL OFFICER PAUL REDMOND) Chief Financial Officer Paul Redmond delivered his presentation on the financial results year to date. Overall Sales tax is flat and accommodations tax is down, which is different from what we’ve seen the last few years). There was discussion on rec center usage, lodging tax and occupancy in town. STR licensing going from 104 in 2023 to 83 in 2024 and Paul explained his accounts receivable staff is collecting more info/background on that. Eric said one of the 2024 staff goals is researching whether it’s worthwhile to rejoin DestiMetrics. Staff will study whether it will be worthwhile to rejoin it if we can pass an ordinance that makes reporting mandatory in 2025 as we only had 3 or 4 properties report in the past. Paul expressed his team is happy to take suggestions on edits/changes in the formatting for reporting of monthly financials. Committee member Lisa Post expressed that seeing bigger picture / more background data to see “trends” would be helpful. Eric said he likes the idea of looking at the bigger picture and make sure we are being strategic and make financially sustainable decisions. 5. USE TAX (CHIEF FINANCIAL OFFICER PAUL REDMOND) Chief Financial Officer Paul Redmond delivered his presentation on Use Tax. Council referred a use tax question to the ballot in 2023 and it failed. Council is exploring bringing this back to the ballot in November and hoping for success with more education to the voters and a higher voter turnout at the 2024 election and dedicating all funds to the housing fund. He spoke about the timeline to poll and educate the voters this summer. The committee discussed that in the Village at Avon the funds would contribute to the Town’s tax credit obligations and get it paid off sooner. Staff FINANCE COMMITTEE MEETING MONDAY, MAY 20, 2024 HYBRID MEETING; IN-PERSON AND ON TEAMS Finance Committee Meeting, May 20, 2024 2 | 2 struggles with what point at which we are educating versus confusing the public. The committee agreed that the higher voter turnout during a presidential election and perhaps naming it a “new construction tax” might help clarify things. The committee suggested taking a straw poll of council and suggested it would be received better by the public if it was referred unanimous by the Council. 6. VILLAGE (AT AVON) (CHIEF FINANCIAL OFFICER PAUL REDMOND) Chief Financial Officer Paul Redmond introduced the topic of the Village at Avon and presented the overall recap showing a total of $14.6 Million in debt remaining to be issued. We’ve issued approximately $86 Million in credits and rebates since 2002. Craig Ferraro suggested that the 2002 bonds that were refinanced in 2020 with 2020 bonds are counted “once” but should be counted “twice” for the original 2002 principal amount paid off. Staff agreed that makes sense and they will go back and look at that. 7. AVON DDA (CHIEF FINANCIAL OFFICER PAUL REDMOND) Chief Financial Officer Paul Redmond delivered his slides on the Avon DDA and expressed the DDA passed last August by the eligible A von voters and there is an overlay with the Urban Renewal Authority. Discussions included the projected 2024 tax increment revenues are appx $52,000, spending of Tax Increment Financing funds inside the DDA boundary a nd that the Town is unique in having the URA and the DDA operate in the same area. 8. AVON HOUSING AUTHORITY (CHIEF FINANCIAL OFFICER PAUL REDMOND & TOWN MANAGER ERIC HEIL) Chief Financial Officer Paul Redmond explained this separate legal entity was established many years ago in 1989 and hasn’t been very active. It can be put to use for anything the Town is going to build which includes 3 possible housing projects (1) the Avondale Apartments on Lot 5 past Home Depot and (2) the slopeside parcel and (3) townhomes on the Wildridge/Avon Annex. Or a private developer asking for Town support with municipal tax-exempt bond financing which will mean strict oversight. Another possible issue before this authority is the State Land Board Phase I. Eric explained we’re active with looking at a regional housing authority which can become the vehicle to assist private developers with these types of municipal tax-exempt bond financing, instead of the Town of Avon. Craig Ferraro expressed Penrose development can provide insight on government help with kickstarting development and filling gaps. He can make an introduction to Paul & Eric. Steve Coyer expressed that Graham Frank is another developer that has expertise and capital and Eric said he has met with Graham. 9. GOALS AND ROLES OF THE FINANCE COMMITTEE (TOWN MANAGER ERIC HEIL) Town Manager Eric Heil expressed this was a general overview and re-introduction of a range of finance topics and staff would like to hear from the committee what we can bring back for more discussion. Otherwise we will focus on the Village at Avon and the State Land Board Annexation. The State Land Board Annexation will come with a lot of demand and little taxes, but the tenants will still pay sales taxes when they go shopping in Avon. It will not be a money maker but an increase in demand on services. It will be interesting to look into that with the committee. FINANCE COMMITTEE MEETING MONDAY, MAY 20, 2024 HYBRID MEETING; IN-PERSON AND ON TEAMS Finance Committee Meeting, May 20, 2024 3 | 2 Councilor Carroll echoed Eric’s comments that the committee can bring ideas on their goals and roles etc and please send them to staff. John Widerman said the committee can be guardians of the questions that staff would put to the general public and maybe provide general feedback before things go to Council or the public, for instance the use tax so it can have ‘Avon Finance Committee Endorsement’ on it. Staff said they’ll bring opportunities to the committee. Eric said staff will forward the fiscal peer community comparison study for the committee to review. It will be updated soon as we aim to update it about every 3 years. 10. NEXT COMMITTEE MEETING DATE After deliberations, consensus among Finance Committee Members was to schedule meetings bi- monthly on the 3rd Monday of the month. The next meeting is Monday July 15, 2024 at 5:00 p.m. at the Mount Holy Cross meeting room at Avon Town Hall. Staff expressed that by then we should have the results back on the Use Tax Voter Polling. We might also be able to discuss the Village at Avon PUD Amendment and possibly extending their vested rights. Craig Ferraro asked to look at projections from the Village at Avon on when debt will be paid off. Paul confirmed the debt schedule shows it as paid off in 2049. 11. ADJOURNMENT Craig Ferraro motioned to adjourn the meeting, the time was 6:32 p.m. Respectfully Submitted by: Ineke de Jong, Chief Administrative Officer.