Finance Committee Meeting Materials - 07-09-2020JULY 9, 2020 - FINANCE COMMITTEE MEETING MATERIALS PAGE 1 | 1
FINANCE COMMITTEE MEETING MATERIALS
THURSDAY, JULY 9, 2020
1. Financial Report
2. CARES Act Update Report
3. Avon Budget Format Report
‐
100,000.00
200,000.00
300,000.00
400,000.00
500,000.00
600,000.00
700,000.00
800,000.00
900,000.00
Year over Year Sales Tax Revenue (2019v2020)
2019 Sales Tax Revenue YTD (Jan ‐ May)2020 Sales Tax Revenue YTD (Jan ‐ May)
‐
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
March 2019 v March 2020 Sales Tax Revenues
March 2019 Sales Tax Reveune March 2020 Sales Tax Reveune
‐
20,000.00
40,000.00
60,000.00
80,000.00
100,000.00
120,000.00
140,000.00
160,000.00
April 2019 v April 2020 Sales Tax Revenues
April 2019 Sales Tax Reveune April 2020 Sales Tax Reveune
‐
15,000.00
30,000.00
45,000.00
60,000.00
75,000.00
90,000.00
105,000.00
120,000.00
135,000.00
150,000.00
May 2019 v May 2020 Sales Tax Revenues
May 2019 Sales Tax Reveune May 2020 Sales Tax Reveune
State Business Type 2019 Sales Tax Revenue YTD (Jan ‐ May) 2020 Sales Tax Revenue YTD (Jan ‐ May)
Home/Garden 306,632.10 286,673.87
Grocery/Specialty/Health 829,921.59 836,683.40
Sporting Goods Retail/Rental 386,484.25 353,989.17
Miscellaneous Retail 123,583.72 103,979.11
Accommodations 745,640.72 561,764.56
Restaurants /Bars 615,341.46 432,630.67
Other 346,574.02 484,428.98
Service Related 130,112.17 99,737.72
Liquor Stores 136,489.01 117,962.80
Total 3,620,779.04 3,277,850.28
State Business Type March 2019 Sales Tax Reveune April 2019 Sales Tax Reveune May 2019 Sales Tax Reveune
Home/Garden 100,276.44 55,784.51 55,012.70
Grocery/Specialty/Health 194,744.10 130,585.15 125,378.12
Sporting Goods Retail/Rental 128,410.03 29,587.88 16,080.59
Miscellaneous Retail 70,513.36 9,601.00 9,951.14
Accommodations 145,258.90 141,183.87 48,825.58
Restaurants /Bars 163,177.33 80,538.72 87,206.71
Other 126,239.15 57,308.14 51,874.49
Service Related 57,228.37 21,154.15 21,080.70
Liquor Stores 35,397.92 17,212.91 14,670.23
Total 1,021,245.60 542,956.33 430,080.26
State Business Type March 2020 Sales Tax Reveune April 2020 Sales Tax Reveune May 2020 Sales Tax Reveune
Home/Garden 73,158.33 48,068.14 57,050.75
Grocery/Specialty/Health 187,409.25 129,252.73 145,598.60
Sporting Goods Retail/Rental 71,785.18 8,856.89 26,503.08
Miscellaneous Retail 46,083.69 3,997.11 10,900.05
Accommodations 130,394.66 5,409.05 12,341.48
Restaurants /Bars 82,017.57 24,398.65 41,581.99
Other 225,577.55 82,144.03 54,108.33
Service Related 51,223.95 10,021.61 8,794.03
Liquor Stores 27,548.97 17,470.27 21,766.04
Total 895,199.15 329,618.48 378,644.35
State Business Type March 2019 Sales Tax Reveune March 2020 Sales Tax Reveune
Home/Garden 100,276.44 73,158.33
Grocery/Specialty/Health 194,744.10 187,409.25
Sporting Goods Retail/Rental 128,410.03 71,785.18
Miscellaneous Retail 70,513.36 46,083.69
Accommodations 145,258.90 130,394.66
Restaurants /Bars 163,177.33 82,017.57
Other 126,239.15 225,577.55
Service Related 57,228.37 51,223.95
Liquor Stores 35,397.92 27,548.97
1,021,245.60 895,199.15
State Business Type April 2019 Sales Tax Reveune April 2020 Sales Tax Reveune
Home/Garden 55,784.51 48,068.14
Grocery/Specialty/Health 130,585.15 129,252.73
Sporting Goods Retail/Rental 29,587.88 8,856.89
Miscellaneous Retail 9,601.00 3,997.11
Accommodations 141,183.87 5,409.05
Restaurants /Bars 80,538.72 24,398.65
Other 57,308.14 82,144.03
Service Related 21,154.15 10,021.61
Liquor Stores 17,212.91 17,470.27
542,956.33 329,618.48
State Business Type May 2019 Sales Tax Reveune May 2020 Sales Tax Reveune
Home/Garden 55,012.70 57,050.75
Grocery/Specialty/Health 125,378.12 145,598.60
Sporting Goods Retail/Rental 16,080.59 26,503.08
Miscellaneous Retail 9,951.14 10,900.05
Accommodations 48,825.58 12,341.48
Restaurants /Bars 87,206.71 41,581.99
Other 51,874.49 54,108.33
Service Related 21,080.70 8,794.03
Liquor Stores 14,670.23 21,766.04
430,080.26 378,644.35
970-748-4055 swright@avon.org
TO: Finance Committee FROM: Scott Wright, Assistant Town Manager/Finance Director
RE: CARES Act Update
DATE: July 8, 2020
SUMMARY: below is a chronological summary of the CARES Act funding process that we went through with
the County. It should also be noted that the Town is expected to receive $228,279 in direct Cares Act funding
through the State 5311 grant program specifically for transit-related costs. This was managed directly by
Eva Wilson.
BACKGROUND: On May 18, Governor Polis announced that local governments In Colorado that did not
receive a direct distribution of funds in the CARES Act will be allocated $275 million for COVID-19 related
public health expenditures. This represents a reversal from the governor’s previous statements that the
legislature would decide how the funds would be allocated.
On June 3, the managers and finance directors met to brainstorm on how to best allocate the potential $4.7
million of CARES Act funding made available to Eagle County. Jill Klosterman, the Eagle County Finance
Director, created a spreadsheet to be used to help determine the amounts that the individual municipalities
have spent or will spend based on all of the eligible uses. There were three options for allocation of the funds
offered – (1) 55% for public health (ECG) with the remainder split based on population, (2) first 50% split by
population to cover organization cost with the remainder allocated to emergency relief fund to businesses
and residents, and (3) actual costs incurred including estimated of future costs through December 31, 2020.
On June 5, the Colorado Dept. of Local Affairs officially launched it Coronavirus Relief Fund (CVRF) program
including opt-in forms and instructions on creating a portal account in order to apply for funding opportunities.
On June 17, it was agreed that the option 3 above would be the most equitable way of allocating costs among
the County and municipalities. Eagle County drafted an IGA for all parties to agree to as required by the
governor.
IGA with the County was adopted by a majority of Town Council.
On June 30 the Town’s application was submitted to DOLA for reimbursement in the amount of $563,837 as
agreed to in the IGA based on preliminary estimates of COVID19 necessary costs. As of June 30, the Town
has expended $428,523 and encumbered another $56,634.
I have submitted the Town’s application to DOLA for reimbursement of $563,837 from the State’s Coronavirus
Relief Fund. This amount was agreed to by Eagle County and the county municipalities based on our
preliminary estimates of COVID19 related costs. As of June 30, the audit trail for the COVID19 project code
totals $428,523 with another $56,634 in outstanding encumbrances.
According to our IGA with the County, the Town has agreed to report to the County the total amount of funding
requests submitted to DOLA by September 1 and/or submit a plan to the County showing how these funds
will be used by December 31, 2020. Any unspent funds will be forfeited back to the County.
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In general, eligible COVID19 costs are those that
(1) are necessary expenditures incurred due to the public health emergency,
(2) were incurred during the period beginning on March 2020 through December 31, 2020, and
(3) not included in the original budget.
This means that in order for an expenditure to be eligible for reimbursement, it must be identified as not in
the original budget. The only method we have of documenting this is through the preparation of a budget
amendment form for the expenditures in question. COVID Expenditures CANNOT be absorbed into your
existing budgets. I understand that this is going to be painful and bureaucratic in nature but it is necessary. In
addition, because of the amount of the reimbursement of federal funds, the Town will be subject to a Single
Audit. As part of a Single Audit, the Town’s books are open to not just our local CPA firm that does our audit,
but also to state and federal auditors. Much of the audit work that they would do is to focus on compliance
with eligibility and allowed costs. Any unallowed costs identified would have to be returned.
Staff is asked to go back through all 2020 expenditures and make sure any eligible costs have been coded
with the COVID19 project code.
Thank you, Scott Wright
970.748.4004 eric@avon.org
TO: Finance Committee FROM: Eric Heil, Town Manager
RE: Avon Budget Format
DATE: July 8, 2020
SUMMARY: The current format of the annual Town of Avon budget is presented for discussion. This report
outlines some ideas for improvement of the format and content of the annual budget document. The
purpose of this exercise is to improve the accessibility of the document and its information to the general
public. The annual budget includes a section on Financial and Budgetary Policies, which includes the
following:
Communication. The budget document shall be prepared so that it facilitates public study and
effectively communicates key economic issues and fiscal policies. The Town should avoid
preparing a budget document that is so detailed that it does not communicate effectively with the
public.
Page numbers: Include straight page numbers at the bottom – i.e. pages 1 – 290, so that it is easier to
reference a page.
Table of Contents: Change to traditional format with chapter and topic headings on left and page numbers
on the right.
Introduction: Revision to introduction that explains legal requirements to adopt an annual budget, legal
obligation to have a balanced budget, Avon’s home rule charter, budget adoption process and general
layout of budget.
Budget Message: Avon Home Rule Charter says the Town Manager should provide the budget message.
Budget message should be co-signed by Town Manager and Finance Director. Budget message can be
condensed to focus on changes in budget and unique circumstances for current year and next budget that
affects the Town’s economic outlook and budget. This year (2021) would include discussion of financial
challenges and implications from coronavirus pandemic and recession.
Organization Chart: Revise organizational chart to fit on portrait view rather than landscape view.
Profile: Discussion of various taxes is proposed to be moved from Profile and consolidated in a section to
describe taxes and illustrate changes in tax revenues. “Annual Budget” in Profile will be moved to the
Introduction.
Local Economy in Profile: Add more explanation and analysis on percentage of economy and revenues that
come from visitors.
Add a boundary map of Town of Avon to profile to give more context to location.
Strategic Plan: A “work list” type document is appropriate in the annual budget. There has been some
discussion that a “strategic plan” document should be more visionary and more long range. A strategic
vision document would be useful. Perhaps a blended document that included a longer range vision along
with specific projects for the next year would be appropriate.
Description of Funds: The format and layout of the fund descriptions will be improved for consistency
with. Fund descriptions are proposed to be re-ordered to start with core funds (i.e. General Fund, Mobility
Fund, Capital Projects Fund and Debt Service Fund) and then list specialized dedicated funds (e.g.
Community Enhancement Fund) and lastly legally separate funds (e.g. Avon Urban Renewal
Authority). This description may read better as a narrative rather than table. Municipal code citations can
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be added where appropriate. (NOTE: Capital Projects refers to ordinances from 80’s rather than cites
Municipal Code Section).
Financial and Budgetary Policies: Eliminate redundancies from the table in the Description of Funds.
Revisit and update policies as appropriate. The Financial and Budgetary Policies are a good area for
input from the Finance Committee.
Financial Overview:
2nd column is titled “Original or Prev. Amend. Budget 2019” Keep this as Original Budget so that it
is fixed throughout the year as the budget that was adopted.
Related Thought: Add an appendix section for Amendments where we insert amendments to end
of Budget document.
TOTAL – BY FUND: This is challenging to read because the spreadsheet crosses two pages. I
don’t have a suggestion on how to reformat this spreadsheet layout. It may be possible to show
both pages side by side in PDF format. Hard Copy printing places the sheets side by side;
however, we print fewer hard copies each year and the predominant use is an electronic
document.
Financial Overview - 2020 Total Operating Revenue by Source: Clarify sources. General Fund
only or combination of revenues from several funds? Pie Chart slices do not track the spreadsheet
revenue categories exactly. Other Revenue is substantial. Rather than show the 2019 pie chart,
we should show the dollar amounts and changes in dollar amount and percentage change from
2019.
Taxes: It would be more convenient and intuitive for readers to include a narrative description of
each tax after the TAXES page. The Property Tax and AURA Tax Increment Page are both
good. Perhaps we should fill out with a page for each tax that includes description, source,
municipal code, changes from prior years, etc.
Expenditures: Same comment as Operating Revenue – let’s consider instead of 2019 pie chart
including a table that shows actual numbers and changes from 2019.
Expenditures by Fund Type: “Special Revenue Funds” should be described on this page. (bag
fee, community enhancement fund, community housing fund)
Fund Balances: Rather than pie chart show a bar graph indicating change in fund balances from
prior year, and potentially show 3-5 years of fund balances to show trends. Indicate unrestricted,
policy restricted and legal/contract restricted. E.G. Explain that Debt Service fund balance is
required by debt issuance but Equipment Replacement Fund is an accounting tool to set aside
funds for planned future expenditures, and could be legally spent by Council for other purposes.
Personnel Expenditures: Rather than a pie chart, a multi-year bar chart showing changes in
expenditures of different categories would convey more useful information.
Taxes: 2020 Taxes by Type are on Section II, Page 5 and then there is 2020 Taxes on Section II,
Page 14, which is very similar but a little different. Clarify at top that Section II, Page 5 is all taxes
and Section II, Page 14 is just taxes that go to General Fund and not other funds, i.e. RETT not
included, but “Utility and Other” is included on P14 but not included on P5. 2020 Taxes by Type
includes “Franchise Fees” which may not be appropriate to include in taxes. Make the order of
taxes similar on both of these pages.
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Discuss if the 2020 Operating Expenditures by Object Class is best as a pie chart. There may be
other ways to convey information that is more informative.
Revenue Detail: Section II, P16. Consider a multi-year bar graph to show changes at a glance.
Recreational Amenity Fee: List out the time share projects that have active Amenity Fee
agreements.
BUDGET SUMMARYS: Keep the general formatting of these cover pages. Narrative description should
provide executive summary of changes for each department from previous year. Current year’s
accomplishments and next year goals will be moved to a year end annual report to be provided to Council
at first meeting in January.
Ordered as General Gov, Finance, HR, Com Dev, Engineering, Recreation, Police, Public Works, Mobility,
Fleet, then the other special funds, then AURA at end because it is a legally separate entity from Town.
Equipment Replacement: Reformat this four column page for Fleet and Equipment Replacement to match
rest of budget document.
Community Enhancement Fund: Add a list of projects with dates and amounts that were funded by
Community Enhancement Fund. This would be a convenient place for this information for Council and not
too long – just a table.
CIP – The five-year spreadsheet needs to reconcile with the Capital Projects Descriptions. Narrative should
include just description and budgeted amounts can be let in the spreadsheet. Provide more description on
Transfers in and Transfers Out. Consider separating Water Fund projects from CIP projects.
Finance: Non-departmental is a large number. Discuss if there is a reason why that is in Finance versus
General Government if it is things like office and janitorial supplies, etc.
General Government: Move Planning Commission expenses from General Government to Community
Development.
AVON 2020 BUDGET – NOTE: Avon.org added “Budget” as one of the buttons on the speed button row at
the top of the Avon Home Page.
BUDGET EXAMPLES FROM PEER COMMUNITIES:
2020 Town of Vail Budget Book
2020 Town of Frisco Budget
2019-2020 Town of Silverthorne Biennial Budget
2020 Town of Breckenridge Budget
2020 Town of Snowmass Budget Book
2020 Town of Telluride Budget
Thank you, Eric