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Finance Committee Meeting Materials - 01-28-2021JANUARY 28, 2021 - FINANCE COMMITTEE MEETING MATERIALS PAGE 1 | 1 FINANCE COMMITTEE MEETING MATERIALS THURSDAY, Janurary 28, 2021 1.Financials YTD Data Report 2.Quarterly RETT Report 3.RETT Presentation (will be added Monday 1/25) FISCAL YEAR 2020 FINANCIAL REPORT January 26th, 2021 ______________________________________________________________________________________ 1.Financial Report Cover Memo 2.Sales and Accommodations Tax Reports – YTD through November 3.Accommodations Tax Report – YTD through November 4.Tobacco Tax & Cigarette Tax – YTD through November 5.Real Estate Transfer Tax Report and Monthly Detail – YTD through December 6.Recreation Center Admissions – YTD through December 7.Recreation Center Program Fees - YTD through December 8.General Fund Year-To-Date Expenditures - YTD through December 9.Fleet Maintenance Fund Year-To Date Expenditures - YTD through December 10.Mobility Fund Year-To Date Expenditures - YTD through December To: Honorable Mayor Sarah Smith Hymes, Avon Town Council From: Joel McCracken, Senior Accountant Date: January 26th, 2021 Agenda Topic: Fiscal Year 2020 Financial Report – Year to date revenue collections Revenues SALES TAX Year-to-date sales tax revenue through November totals $7,602,799. This represents a decrease of 0.30% or $22,952 from the previous year and is a 4.44% positive variance over the final cumulative monthly amended budget, which is based on the average of the relative monthly percentages of taxes collected over a 5-year period. The year-to-date total is $96,564 over the original budget estimate. Beginning in May, after the reopening of businesses, sales tax for the 7-month period from May-November is up by $277,130, nearly eclipsing the loss of sales tax for the two months of business shut-down. The month of November sale tax revenues increased by $88,646 or 17.21% over the same period in the previous year. Year to date sales tax collections by industry compared to one year ago have increased $180,227.69 for Home/Garden, $137,147.12 for Grocery-Specialty-Health, $13,096.77 for Sporting Goods Retail-Rental, $23,327.82 for Miscellaneous Retail, $38,051.73 for Liquor Stores, $95,884.82 for E-Commerce Retail, $74,082.52 for Construction Related Materials, $6,943.06 for Digital Medial Suppliers/Sellers, and $26,899.69 for Commercial and Industrial Equipment. Year to date sales tax collections have decreased by $276,615.68 for Accommodations, $200,051.97 for Restaurants/Bars, $87,502.85 for Other, $27,864.37 for Service Related, $26,040.16 for Manufacturing/Wholesale, and $181.02 for Special Events. - 500,000.00 1,000,000.00 1,500,000.00 2,000,000.00 2,500,000.00 Sales Tax Comparison by Industry YTD-2019 YTD-2020 2 Amended Budgeted Revenue Comparison With the adoption of Resolution 20-14 in May, the Town amended the budget for estimated revenues of sales tax, accommodation tax, and recreation center fees due to COVID-19 and the impact to the local economy. The amended budget decreased estimated revenues by $1,591,120 for sales tax, $825,579 for accommodations tax, 703,772 for recreation admissions, and $271,565 for all recreation program fees. Subsequently, the COVID19 impact on Town sales taxes was less severe than these conservative estimates and the final budget was amended back up by $1,320,825 or a 3.05% reduction from the previous years actual sales tax revenues. Licenses Issued 2019 v 2020 2019 2020 Business License - Fixed Location 276 279 Business License - Home Occupation 66 68 Business License - Peddler / Solicitor 4 1 Business License - Short Term Accommodation 202 235 Business License - Special Event 50 85 Business License - Vendor 818 874 Contractor License 217 183 Sales Tax License 448 352 Grand Total 2081 2077 - 750,000.00 1,500,000.00 2,250,000.00 3,000,000.00 3,750,000.00 4,500,000.00 5,250,000.00 6,000,000.00 6,750,000.00 7,500,000.00 8,250,000.00 Sales Tax Accommodation Tax Recreation Admissions Recreation Program Fees Amended Budget v Actual Revenues YTD Comparison Amended Budget (YTD)Actual Revenues (YTD) 3 ACCOMMODATIONS TAX Year-to-date accommodations tax revenue through November totals $1,023,205. This represents a decrease of 19.24% or $243,708 from the previous year yet is a 7.49% positive variance over the final cumulative monthly amended budget, which is based on the average of the relative monthly percentages of taxes collected over a 5-year period. The year-to-date total is $237,116 under the original budget estimate. Since June accommodation taxes are down an average of 11.14% compared to the previous year. The month of November accommodation tax revenues decreased by $19,933 or 28.32% over the same period in the previous year. Year to date accommodation tax collections have decreased for vacation rentals by $11,220, $74,739 for time shares and $159,911 for hotels compared to the previous year. - 100,000.00 200,000.00 300,000.00 400,000.00 500,000.00 600,000.00 700,000.00 800,000.00 Time Shares Hotels Vacation Rentals Accommodation Tax by Type YTD 2019 YTD 2020 4 TOBACCO TAX and CIGARETTE TAX Year-to-date tobacco tax (40% rate) revenues through November total $182,236, an increase of 45.82% from the previous year. Year-to-date tobacco tax revenues have a positive variance of 25.34% compared to the original budget estimate of $160,000 and a positive variance of 8.41% compared to the final revised budget of $185,000. Year-to-date cigarette tax revenues total $236,172.81, an increase of 35.21% from the previous year. The number of packs sold has also increased by 18,569 packs. Year-to-date cigarette tax revenues through November show a positive variance of 14.68% over the original budget estimate of $225,000. - 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 Tobacco Tax 40% Rate Cigarette Tax Per Pack Fee Tobacco Tax Interest Tobacco Tax Penalty Number of Packs Sold* YTD Tobacco Tax Revenues 2019 v 2020 YTD 2019 YTD 2020 5 REAL ESTATE TRANSFER TAX Real estate transfer tax collections for all of 2020 totaled $5,885,996.38, an increase of 17.37% from the previous year and a positive variance of 95.55% over the cumulative monthly budgets, which is based on average of the relative monthly percentages of taxes collected over a 5-year period. $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2016 2017 2018 2019 2020 Year 2016-2020 Real Estate Transfer Tax Yearly Revenues 6 RECREATION CENTER ADMISSIONS YTD recreation admission fees totaled $429,382.96 a 57.17% decrease from the previous year. This is a 53.07% negative variance compared to the monthly original budget and a 6.54% negative variance compared to the final monthly amended budget which is based on average of the relative monthly percentages of taxes collected over a 5-year period. $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2016 2017 2018 2019 2020 2016 -2020 Recreation Center Admissions Yearly Revenues 7 RECREATION CENTER PROGRAM FEES Year to date recreation center program fees totaled $314,433 which is a 16.59% decrease from the previous year. This is a 16.73% negative variance compared to the monthly original budget and 11.89% positive variance compared to the final monthly amended budget which is based on average of the relative monthly percentages of taxes collected over a 5-year period. $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 2016 2017 2018 2019 2020 2016-2020 Recreation Center Program Fees Yearly Revenues 8 Expenditures Year-to-date General Fund expenditures for 2020 total 85.35% of the total adopted budget. These expenditures include insurance premiums, computer services, events, community grants, equipment replacement, contract services, janitorial and legal services. Year-to-date Fleet expenditures for 2020 total 83.14% of the total budget. These costs include expenditures of stock parts, fleet maintenance, debt service interest, and insurance premiums. Year-to-date Mobility funds expenditures for 2020 total 84.89% of the total budget. These expenditures include costs of diesel, fleet maintenance, equipment replacement, capital lease payments, and insurance premiums. TOWN OF AVON SALES TAX 2020 Actual vs. Budget Budget YTD Collections Budget % of change % change 2015 2016 2017 2018 2019 2020 2020 Variance from 2019 from Budget January 765,195.68$ 743,689.78$ 792,562.03$ 825,816.08$ 819,179.33$ 823,329$ 841,459.85$ 18,130.35$ 2.72%2.20% February 788,999.06 774,754.00 798,923.33 785,412.03 809,165.90 825,585 820,617.44 (4,967.60) 1.42%-0.60% March 875,499.53 945,795.71 918,657.55 1,014,399.70 1,130,669.61 1,019,141 872,489.74 (146,651.52) -22.83%-14.39% April 403,560.42 438,198.18 425,727.85 394,986.15 424,685.32 435,435 349,051.52 (86,383.31) -17.81%-19.84% May 353,840.11 404,872.55 394,689.30 418,628.58 422,685.32 416,149 424,081.54 7,932.51 0.33%1.91% June 570,424.51 693,675.00 650,794.65 757,498.52 725,800.03 708,950 801,965.52 93,015.12 10.49%13.12% July 601,516.82 690,342.23 682,024.81 696,374.00 751,776.85 713,924 700,496.72 (13,427.74) -6.82%-1.88% August 572,647.57 593,398.26 618,515.44 639,569.12 677,421.62 647,064 683,538.19 36,474.67 0.90%5.64% September 595,235.68 667,949.51 690,883.92 680,720.64 903,289.81 738,134 894,037.55 155,903.15 -1.02%21.12% October 423,701.53 451,303.71 458,645.68 490,977.90 445,742.30 473,658 611,080.29 137,422.48 37.09%29.01% November 438,315.55 445,336.04 435,975.05 456,409.92 515,203.70 478,012 603,849.77 125,838.12 17.21%26.33% December 1,159,160.45 1,247,832.82 1,183,666.21 1,264,626.23 1,460,062.64 1,317,544 Total 7,548,096.91$ 8,097,147.79$ 8,051,065.82$ 8,425,418.87$ 9,085,682.43$ 8,596,926$ 7,602,668.13$ 323,286.23$ -0.30%4.44% Actual Collections $6,400,000 $6,600,000 $6,800,000 $7,000,000 $7,200,000 $7,400,000 $7,600,000 $7,800,000 2016 2017 2018 2019 2020 Year 2016 -2020 Year-to-Date Sales Tax Revenues TOWN OF AVON ACCOMMODATIONS TAX 2020 Actual vs. Budget Budget YTD Collections Budget % change % change 2015 2016 2017 2018 2019 2020 2020 Variance 2019 to budget January 164,361.04$ 168,424.63$ 190,207.82$ 181,588.99$ 197,879.22$ 153,832$ 188,669.38$ 34,837.52$ -4.65%22.65% February 175,056.31 185,370.53 194,804.88 186,147.24 203,190.38 161,009 217,069.65 56,060.20 6.83%34.82% March 183,650.29 217,387.54 201,008.55 206,783.36 246,969.61 179,969 128,344.90 (51,624.60) -48.03%-28.69% April 34,825.13 60,916.55 38,340.02 33,275.27 31,824.90 33,952 8,630.96 (25,321.19) -72.88%-74.58% May 28,002.56 37,357.48 39,961.98 42,618.10 47,259.21 33,273 13,289.59 (19,983.71) -71.88%-60.06% June 53,397.46 73,591.08 83,723.31 94,803.78 92,411.81 67,830 51,186.00 (16,643.94) -44.61%-24.54% July 86,301.22 107,595.18 119,300.76 119,458.02 131,645.50 96,190 112,238.30 16,048.71 -14.74%16.68% August 75,107.71 87,674.05 100,628.23 98,193.15 110,203.30 80,423 101,457.62 21,034.41 -7.94%26.15% September 60,417.74 68,139.11 81,837.60 85,257.82 89,362.90 65,629 95,186.71 29,557.78 6.52%45.04% October 38,706.72 45,738.23 48,223.10 53,236.86 45,781.00 39,493 56,679.15 17,186.42 23.80%43.52% November 34,328.47 37,570.50 46,397.08 47,934.88 70,385.29 40,333 50,452.72 10,119.58 -28.32%25.09% December 198,421.26 200,114.56 189,505.28 185,008.67 219,964.12 169,267 - Total 1,132,575.91$ 1,289,879.44$ 1,333,938.61$ 1,334,306.14$ 1,486,877.24$ 1,121,201.00$ 1,023,204.98$ 71,271.19$ -19.24%7.49% 0.88 0.97 1.00 0.90 1.33 Actual Collections $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2016 2017 2018 2019 2020 2016 -2020 Year to Date Accommodations Tax Revenues TOWN OF AVON Tobacco Tax Revenue 2020 Actual vs. Budget Budget YTD Collections $ Change % of Change % Variance 2016 2017 2018 2019 2020 2020 2019 2019 to Budget January - - - - 5,487.00$ 7,381$ 12,926.46$ 7,439.46$ 135.58%75.14% February - - - - 21,144.74 28,442 12,212.75 (8,931.99) -42.24%-57.06% March - - - - 7,894.94 10,620 12,613.44 4,718.50 59.77%18.78% April - - - - 15,416.30 20,737 12,340.11 (3,076.19) -19.95%-40.49% May - - - - 4,832.53 6,500 14,952.14 10,119.61 209.41%130.02% June - - - - 11,088.32 14,915 15,920.80 4,832.48 43.58%6.74% July - - - - 13,318.93 17,915 23,534.44 10,215.51 76.70%31.36% August - - - - 15,381.23 20,689 22,980.58 7,599.35 49.41%11.07% September - - - - 12,646.85 17,011 19,330.12 6,683.27 52.85%13.63% October - - - - 8,458.60 11,378 18,295.39 9,836.79 116.29%60.80% November - - - - 9,306.56 12,518 17,130.22 7,823.66 84.07%36.84% December - - - - 12,559.58 16,894 Total -$ -$ -$ -$ 137,535.58$ 185,000 182,236.45$ 57,260.45$ 45.82%8.41% Final Amended Budget 185,000.00 Variance, Favorable (Unfavorable)(2,763.55)$ Actual Collections $0 $50,000 $100,000 $150,000 $200,000 2016 2017 2018 2019 2020 Year-to-Date Tobacco Tax Revenue TOWN OF AVON CIGARETTE TAX REVENUE 2020 Actual vs. Budget Budget YTD Collections $ Change % of Change % change 2015 2016 2017 2018 2019 2020 2020 2019 2019 to budget January - - - - 6,649.98$ 7,840.81$ 17,252.91$ 10,602.93$ 159.44% 120.04% February - - - - 23,741.64 27,993.12 17,376.30 (6,365.34)$ -26.81% -37.93% March - - - - 23,073.42 27,205.24 16,659.00 (6,414.42)$ -27.80% -38.77% April - - - - 18,392.25 21,685.80 16,188.00 (2,204.25)$ -11.98% -25.35% May - - - - 28,462.95 33,559.89 23,781.00 (4,681.95)$ -16.45% -29.14% June - - - - 10,050.45 11,850.21 24,732.00 14,681.55$ 146.08% 108.71% July - - - - 18,693.15 22,040.58 28,215.21 9,522.06$ 50.94% 28.01% August - - - - 6,141.15 7,240.86 25,701.00 19,559.85$ 318.50% 254.94% September - - - - 15,846.00 18,683.59 23,972.55 8,126.55$ 51.28% 28.31% October - - - - 15,297.00 18,036.27 22,062.84 6,765.84$ 44.23% 22.32% November - - - - 8,322.00 9,812.24 20,232.00 11,910.00$ 143.11% 106.19% December - - - - 16,157.94 19,051.39 - Total -$ -$ -$ -$ 190,827.93$ 225,000$ 236,172.81$ 61,502.82$ 35.21%14.68% Budget 225,000.00 Variance, Favorable (Unfavorable) 11,172.81$ Actual Collections $0 $50,000 $100,000 $150,000 $200,000 $250,000 2016 2017 2018 2019 2020 Year to Date Cigarette Tax Revenue TOWN OF AVON REAL ESTATE TRANSFER TAX 2020 Actual vs. Budget Budget YTD Collections $ Change % of Change % change 2015 2016 2017 2018 2019 2020 2020 2019 2019 to budget January 48,640.40$ 64,422.00$ 107,390.00$ 264,063.20$ 72,520.00$ 89,978.07$ 179,460$ 106,940.00$ 147.46% 99.45% February 85,479.08 200,850.86 270,815.26 269,578.51 298,730.16 181,794.79 567,486 268,756.33 89.97% 212.16% March 168,744.22 265,061.65 254,737.53 344,556.74 180,819.76 196,084.73 113,350 (67,469.76) -37.31% -42.19% April 125,266.30 159,046.06 249,938.93 122,312.21 312,899.53 156,597.56 140,135 (172,764.87) -55.21% -10.51% May 237,971.08 184,987.10 377,490.82 351,236.93 278,241.63 230,976.49 100,257 (177,985.07) -63.97% -56.59% June 294,434.84 307,127.24 703,419.85 343,140.71 237,143.93 304,527.49 222,169 (14,974.64) -6.31% -27.04% July 396,838.68 259,977.94 219,208.74 272,420.41 86,755.74 199,522.35 234,702 147,946.42 170.53% 17.63% August 152,380.93 186,483.40 592,467.49 343,249.80 400,027.60 270,499.97 608,328 208,300.76 52.07% 124.89% September 291,223.61 321,957.68 423,013.80 311,022.50 604,158.92 315,206.25 732,112 127,953.18 21.18% 132.26% October 172,855.22 641,688.59 497,642.58 330,671.24 359,782.63 323,486.89 906,843 547,060.37 152.05% 180.33% November 169,328.38 315,109.37 425,402.80 211,818.76 570,245.09 273,293.66 461,399 (108,846.20) -19.09% 68.83% December 225,862.90 588,514.66 227,918.50 196,105.45 1,597,177.98 458,031.73 1,600,283 3,105.40 0.19% 249.38% Total 2,369,025.64$ 3,495,226.55$ 4,349,446.30$ 3,360,176.46$ 4,998,502.97$ 3,000,000$ 5,866,525$ 868,021.92$ 17.37% 95.55% Budget 3,000,000 Variance, Favorable (Unfavorable) 2,866,525 Actual Collections $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2016 2017 2018 2019 2020 Year 2016-2020 Real Estate Transfer Tax Yearly Revenues TOWN OF AVON RECREATION CENTER ADMISSION FEES 2020 Actual vs. Budget Budget YTD Collections Budget % of change % change 2015 2016 2017 2018 2019 2020 2020 Variance from 2019 from Budget January 62,607.00$ 64,723.00$ 74,674.00$ 88,582.09$ 72,981.86$ 37,959.89$ 79,231.98$ 41,272.09$ 8.56%108.73% February 63,838.00 68,506.00 86,342.00 75,952.60 64,868.20 37,535.87 70,588.43 33,052.56$ 8.82%88.06% March 77,902.00 81,664.00 76,023.00 79,071.20 78,824.90 41,083.52 34,641.33 (6,442.19)$ -56.05%-15.68% April 61,760.00 55,452.00 67,398.00 61,817.56 53,085.20 31,271.93 1,436.70 (29,835.23)$ -97.29%-95.41% May 43,119.00 50,067.40 54,337.00 50,252.60 63,563.00 27,286.23 713.50 (26,572.73) -98.88%-97.39% June 55,052.00 58,430.50 58,044.00 62,135.02 68,601.20 31,559.05 12,372.10 (19,186.95) -81.97%-60.80% July 61,472.00 66,399.80 65,873.60 72,441.40 88,528.43 37,035.59 22,389.96 (14,645.63) -74.71%-39.54% August 63,233.00 66,388.60 76,558.30 73,573.10 70,491.40 36,568.79 23,879.29 (12,689.50) -66.12%-34.70% September 36,846.00 44,719.00 49,017.70 49,315.70 55,598.60 24,588.09 34,484.00 9,895.91 -37.98%40.25% October 75,818.00 61,167.00 51,833.00 59,692.77 58,055.60 32,008.39 28,628.30 (3,380.09) -50.69%-10.56% November 29,570.00 71,384.00 72,114.00 126,981.80 51,281.50 36,682.27 26,028.90 (10,653.37) -49.24%-29.04% December 77,672.00 112,201.00 169,092.78 186,927.10 276,537.00 85,869.37 94,988.47 9,119.10 -65.65%10.62% Total 708,889.00$ 801,102.30$ 901,307.38$ 986,742.94$ 1,002,416.89$ 459,449$ 429,382.96$ (30,066.04)$ -57.17%-6.54% . Actual Collections $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2016 2017 2018 2019 2020 2016 -2020 Recreation Center Admissions Revenues TOWN OF AVON RECREATION CENTER PROGRAM FEES 2020 Actual vs. Budget Budget YTD Collections Budget % of change % change 2015 2016 2017 2018 2019 2020 2020 Variance from 2019 from Budget January 23,252.13$ 17,133.04$ 28,815.64$ 32,368.50$ 26,095.68$ 19,046$ 27,872.08$ 8,825.85$ 6.81%46.34% February 20,734.70 22,435.59 28,915.58 35,279.57 23,197.74 19,479 25,526.28 6,047.67 10.04%31.05% March 15,184.33 19,132.72 29,016.16 28,669.46 27,280.96 17,796 14,589.59 (3,206.23) -46.52%-18.02% April 18,360.00 18,538.66 26,397.13 45,827.30 31,132.63 20,925 2,152.78 (18,771.85) -93.09%-89.71% May 22,175.69 39,447.85 44,605.22 37,300.42 31,335.76 26,088 7,748.60 (18,339.35) -75.27%-70.30% June 31,443.66 33,369.05 45,885.37 37,231.17 34,568.93 27,227 36,744.13 9,517.38 6.29%34.96% July 29,162.29 44,969.88 46,745.40 49,968.33 43,607.82 31,994 42,860.51 10,866.34 -1.71%33.96% August 31,055.94 46,025.52 52,318.40 64,320.46 49,982.60 36,358 64,082.29 27,724.46 28.21%76.25% September 18,209.25 36,240.11 30,853.05 41,463.74 34,704.93 24,090 34,839.01 10,749.28 0.39%44.62% October 20,380.77 22,068.60 26,881.06 26,782.63 22,588.68 17,709 18,069.54 360.53 -20.01%2.04% November 20,095.40 30,866.78 25,906.72 24,952.65 20,749.47 18,286 13,731.58 (4,554.69) -33.82%-24.91% December 21,918.03 30,294.89 37,309.30 26,328.09 31,740.68 22,019 26,216.53 4,197.55 -17.40%19.06% Total 271,972$ 360,523$ 423,649$ 450,492$ 376,986$ 281,016$ 314,432.92$ 33,416.92$ -16.59%11.89% Actual Collections $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 2016 2017 2018 2019 2020 2016-2020 Recreation Center Program Fees Revenues Dept./Div. 2020 Encumbrances Year To Date Available Number Description Budget Outstanding Expenditures Balance YTD/Budget General Government: 111 Mayor and Town Council 267,768$ 835$ 255,514$ 11,419$ 95.74% 112 Boards and Commissions 19,650 - 10,291 9,359 52.37% 113 Town Attorney 205,000 - 226,258 (21,258) 110.37% 115 Town Clerk 139,737 2,458 120,669 16,610 88.11% 121 Municipal Court 128,141 2,798 123,006 2,337 98.18% 131 Town Manager 412,154 - 380,790 31,364 92.39% 133 Community Relations 266,211 2,625 214,765 48,821 81.66% 134 Economic Development 143,250 - 121,759 21,491 85.00% 136 Special Events 392,195 42,372 305,557 44,266 88.71% 137 Community Grants 97,000 1,250 92,800 2,950 96.96% COVID-19 477,621 28,886 554,272 (105,536) 122.10% Total General Government 2,548,727 81,223 2,405,679 61,824 97.57% Human Resources Department: 132 Human Resources 570,734 25,810 530,282 14,642 97.43% Finance & IT Department: 141 Finance 986,754 41,719 923,976 21,059 97.87% 143 Information Systems 448,608 17,944 438,928 (8,264) 101.84% 149 Nondepartmental 509,603 49,222 514,467 (54,087) 110.61% Total Finance & IT 1,944,965 108,885 1,877,371 (41,292) 102.12% Total General Gov't Departments 5,064,426 215,919 4,813,333 35,174 99.31% Community Development: 212 Planning 307,254 1,872 299,377 6,005 98.05% 213 Building Inspection 186,392 2 178,585 7,805 95.81% Total Community Development 493,646 1,874 477,962 13,810 97.20% Police Department: 311 Administration 823,448 10,555 789,463 23,430 97.15% 312 Patrol 3,016,868 39,354 2,900,309 77,205 97.44% 313 Investigations 307,778 1,328 305,806 643 99.79% Total Police 4,148,094 51,237 3,995,579 101,278 97.56% Public Works: 412 Engineering 264,624 752 265,483 (1,611) 100.61% 413 Roads and Bridges 2,388,955 51,762 2,244,713 92,480 96.13% 415 Parks 458,975 63,516 308,227 87,232 80.99% 418 Buildings & Facilities 1,204,533 58,026 1,051,718 94,789 92.13% Total Public Works 4,317,087 174,056 3,870,142 272,889 93.68% Recreation Department: 514 Administration 260,856 6,998 250,062 3,796 98.54% 515 Adult Programs 41,118 - 24,664 16,454 59.98% 516 Aquatics 555,055 9,255 474,480 71,320 87.15% 518 Fitness 69,903 - 39,693 30,210 56.78% 519 Guest Services 310,827 4,451 268,673 37,704 87.87% 521 Youth Programs 191,045 994 125,662 64,390 66.30% 523 Community Swim Program 160,603 19 120,142 40,441 74.82% Total Recreation 1,589,407 21,717 1,303,375 264,315 83.37% Contingency - - Operating Transfers 1,875,000 - - 1,875,000 0.00% - TOTAL OPERATING EXPENDITURES 17,487,660$ 464,802$ 14,460,392$ 2,562,466$ 85.35% Department Expenditure Summaries General Fund December 2020 Expenditures to Date Dept./Div. 2020 Encumbrances Year To Date Available Number Description Budget Outstanding Expenditures Balance YTD/Budget EXPENDITURES Public Works: 434 Fleet Maintenance 4,053,740$ 28,050$ 3,342,166$ 683,524$ 83.14% Total Operating Expenditures 4,053,740 28,050 3,342,166 683,524 83.14% TOTAL EXPENDITURES 4,053,740$ 28,050$ 3,342,166$ 683,524$ 83.14% Expenditure Summary Fleet Maintenance Enterprise Fund December 2020 Expenditures to Date Dept./Div.2020 Encumbrances Year To Date Available Number Description Budget Outstanding Expenditures Balance YTD/Budget EXPENDITURES 431 Mobility Administration 272,647$ 28,967.67 222,686$ 20,994$ 92.30% 432 Mobility Operations 1,194,516 10,703 1,098,758 85,055 92.88% 436 Wash Bay 181,383 1,323 170,576 9,484 94.77% 437 Mobiltity Programs 311,321 1,000 129,661 180,660 41.97% Total Operating Expenditures 1,959,867 41,994 1,621,680 296,193 84.89% TOTAL EXPENDITURES 1,959,867$ 41,994$ 1,621,680$ 296,193$ 84.89% Expenditure Summary Mobility Enterprise Fund December 2020 Expenditures to Date 970.748.4019 jmccracken@avon.org TO: Finance Committee Members FROM: Joel McCracken, Senior Accountant RE: 4th Quarter RETT Sales and Exemption Report DATE: January 28th, 2021 SUMMARY: The 4th quarter has historically generated the most RETT revenues in the entire year. December revenues were significant because of the completion of residencies located on Waterfront Way. Type of Exemption 1st Q 2nd Q 3rd Q 4th Q TOTAL Section (17) 5 3 13 5 26 Section (18) 0 0 0 0 0 Section (19) 0 1 7 3 11 TOTAL 5 4 20 8 37 The following chart shows the 4th quarter sales by month sold, sales amount and the RETT exemption. #1October #2 October #3 November #4 November #5 November #6 November #7 November #8 December $395,000 $1,595,000 $440,000 $400,000 $630,000 $340,000 $399,000 $642,000 (17) $3,200 (17) $3200 (9) 4,400 (17) $3,200 (19) 4,800 (17) $3,200 (17) $3,200 (19) $4,800 The chart (below) shows the RETT activity for 4th quarter 2020 in dollars. Actual RETT 2020 October November December Total RETT Revenue $906,843 461,399 $1,600,283 TOTAL Exemptions 6,400 18,800 4,800 Total RETT 913,243 480,199 1,605,083 Total Sales $45,662,150 $24,009,950 $80,254,150 By comparing the average RETT over 3 years, you can see that Actual RETT activity greatly increased in 4th Quarter 2020 by approximately 67.6% in September, 12.7% in November, and 41.3% in December. 3-Year Average RETT 2018-2020 2018-2020 2018-2020 October November December Total RETT Revenue $532,432 414,488 $1,131,189 TOTAL Exemptions 12,580 11,600 4,800 Total RETT 545,012 426,088 1,135,989 Total Sales $27,250,600 $21,304,400 $56,799,450 Summary of Primary Residence RETT Exemption under Avon Municipal Code Section 3.12.060 Exemptions Section (17) Section (18) Section (19) Amount $160,000 $160,000 $240,000 Home Value Cap None None $700,000 Eagle County Employee N/A Yes Yes Affidavit of Primary Residence Yes Yes Yes Promissory Note 1 year 1 year 3 years Lien Yes Yes Yes 2018‐2020 2018 2019 2020 2021 2022 3 Year Average January 6,350.00       11,700.00   6,400.00      ‐                 ‐               8,150.00           February 16,000.00     6,400.00     3,200.00      ‐                 ‐               8,534.00           March 15,550.00     6,400.00     5,355.00      ‐                 ‐               9,102.00           April 19,200.00      ‐                ‐                ‐                 ‐               6,400.00           May 3,200.00       28,800.00   1,680.00      ‐                 ‐               11,227.00         June 19,200.00     12,650.00   11,200.00    ‐                 ‐               14,350.00         July 31,100.00     16,000.00   34,990.00    ‐                 ‐               27,364.00         August 9,600.00       27,187.00   12,800.00    ‐                 ‐               16,529.00         September 18,512.00     9,600.00     24,160.00    ‐                 ‐               17,424.00         October 18,540.00     12,800.00   6,400.00      ‐                 ‐               12,580.00         November 9,600.00       6,400.00     18,800.00    ‐                 ‐               11,600.00         December 3,200.00       6,400.00     4,800.00      ‐                 ‐               4,800.00           170,052.00  144,337.00 129,785.00 ‐                 ‐                Actual Exemptions Total 170,052.00  144,337.00  129,785.00  ‐‐ 2018 2019 2020 2021 2022 Actual Exemptions Total Real Estate Transfer Tax –January 2021 An Informational Overview Welcome! The Avon Town Council welcomes you to this overview of Avon’s Real Estate Transfer Tax Avon’s Real Estate Transfer Tax has played an important role in funding Avon’s public infrastructure and capital improvements for over 40 years. This overview compiles information on Avon’s Real Estate Transfer Tax. The Avon Town Council is committed to transparency and accessibility of the Town of Avon’s financial information. This overview was reviewed by Avon’s citizen Finance Committee. Real Estate Transfer Tax | January 2021 RETT is 14.14% of Avon’s tax revenues and 9.6%of the Avon’s total revenues. The budget for RETT revenue in 2021 is $2,550,000. Total Operating Revenues in the 2021 Budget are $25,767,0960 Total Tax Revenues are projected at $17,674,978 Introduction Definition of Real Estate Transfer Tax The Town of Avon imposes a Real Property Transfer Tax (“RETT”) in the amount of 2% of the consideration paid on the transfer of real estate property within the municipal limits. RETT is different from Property Tax. The RETT is only charged when a property is a conveyed. Property Tax is assessed each year and is based upon a mill levy (one mill is $1 per $1,000 of assessed valuation) assessed by each taxing jurisdiction multiplied by the assessed valuation. -those are ongoing taxes you pay for owning a home. History of RETT The Avon Town Council first enacted a 1% RETT in October,1978 by adoption of Ordinance No. 8 to help pay for the expenses of the Town. Ordinance No. 8 allocated the first $150,000 of revenue to the General Fund, and then split the revenues 50% to the General fund and 50% to the Public Works Fund for Capital Improvements. In 1987 the Avon Town Council raised the RETT from 1% to 2% by Ordinance No. 1987-17. The Avon Town Council also allocated 100% of the RETT revenues for capital improvements by Ordinance No. 1987-19. Real Estate Transfer Tax | January 2021 RETT is charged when real property title is transferred and conveyed. 1% RETT adopted in 1978 RETT raised to 2% in 1987 Avon Municipal Code The Town’s RETT regulations are codified in the Avon Municipal Code in Chapter 3.12 –Real Property Transfer Tax (link) The RETT Regulations include Definitions, Exemptions, Application for Exemptions, Liens, Allocation of Revenue, and Enforcement. Real Estate Transfer Tax | January 2021 3.12.040 -Persons Liable for Tax The purchaser (the party receiving the property) is liable for the payment of RETT. Often times Buyers and Sellers negotiate the payment of RETT and may choose to split the RETT 50/50. Allocation of RETT All RETT revenues are allocated to capital improvements with the exception that 10% may be deposited in the Community Housing Fund and Council may reallocate RETT for any municipal purpose upon a determination of an emergency. Avon Municipal Code Section 3.12.110 –Allocation of Revenue “All revenues derived from the tax imposed pursuant to this Chapter shall be allocated as follows: (1) Subject to (2) and (3) below, all revenues shall be deposited into the public improvements fund of the Town for the purpose of capital improvements, including but not limited to railroad crossings, bridges and streets, payment of principal of premium, if any, and interest on debt incurred by the Town relating to capital improvements; (2) up to a maximum of ten percent (10%) of all revenues may be deposited into the Community Housing Fund; or, (3) upon determination of an emergency by unanimous minus one (1) vote of Council Members present, for any valid municipal purpose.” Real Estate Transfer Tax | January 2021 RETT Exemptions Real Estate Transfer Tax | January 2021 The Town has 19 separate exemptions for RETT based upon certain criteria which are set forth in the Town of Avon Municipal Code Chapter 3.12.060.The first 16 provide a full exemption from all RETT due and the exemptions (17), (18) and (19) provide a partial exemption on the first $160,000 or $240,000 in RETT due for primary residence purchases. (1)Government transfers (2)Gifts (3)Decree of Partition (4)Transfer by Death, Will or Decree of Distribution (5)Mergers, Consolidation and Reorganizations (6)Transfers due to Bankruptcy Plan (7)Correction Deeds without Consideration (8)Transfers of Cemetery Lots (9)Quiet Title Decrees and Condemnation Orders (10)Leases which are 25 Years or Less (11)Transfer of Mineral or Royalty Interest by Deed (12)Transfers to Secure a Debt (13)Foreclosure Deeds (14)1031 Tax Deferred Exchanges (15)Community Housing Projects (16)Transfers of Deed Restricted Community Housing (17)Primary Residence (18)Primary Residence (19)Primary Residence LIST OF EXEMPTIONS Primary Residence RETT Exemptions Real Estate Transfer Tax | January 2021 Three types of Primary Residence Exemptions –3.12.060(17), (18) and (19) SUMMARY OF PRIMARY RESIDENCE RETT EXEMPTIONS: Exemptions Section (17)Section (18)Section (19) Amount $160,000 $160,000 $240,000 Home Value Cap None None $700,000 Eagle County Employee N/A Yes Yes Affidavit of Primary Residence Yes Yes Yes Promissory Note 1 year 1 year 3 years Instructions and Promissory Note and Affidavit Section 17 RETT Exemption Instructions Section 17 Promissory Note and Affidavit Section 18 RETT Exemption Instructions Section 18 Promissory Note and Affidavit Section 19 RETT Exemption Instructions Section 19 Promissory Note and Affidavit TABOR and RETT Real Estate Transfer Tax | January 2021 Twelve home rule mountain resort communities in Colorado adopted a RETT prior to the 1992. The mountain resort communities generally favored RETT because this tax can generate revenues more quickly when new real estate developments are brought to market and real estate markets are active. In 1992, a citizens’ petition to amend the Colorado constitution was successful and the Tax Payor’s Bill of Rights (“TABOR”) was approved by the Colorado electorate. TABOR was intended to restrict the growth of government by requiring a vote for any tax increase, debt increase, or expenditure increase. TABOR also prohibited any new or increased Real Estate Transfer Taxes. TABOR does not permit a local vote to impose a new RETT or increase an existing RETT.As a result, no municipalities in Colorado have enacted a new RETT or increased an existing RETT since 1992. Douglas Bruce, a landlord in Colorado Springs and strict advocate for limited government, was the principal author of TABOR Home Rule and RETT Real Estate Transfer Tax | January 2021 AspenCrested Butte Telluride 4.0%3.0%2.0%1.5%1.0% Ophir Breckenridge Frisco Gypsum Minturn Snowmass Village Vail Winter Park Prior to TABOR, only municipalities with Home Rule Charters had the legal authority to enact a Real Estate Transfer Tax. The following twelve home rule municipalities enacted RETTs: RETT versus RETA Real Estate Transfer Tax | January 2021 Since the adoption of TABOR in 1992 and the subsequent prohibition of Real Estate Transfer Taxes, private real estate developers and their law firms formulated a method of creating a Real Estate Transfer Assessments (“RETA”) by private covenant and declarations. A RETA is fee on real estate transactions within a defined area that functions much like RETT. A RETA is a fee, not a tax, because it is created by private covenants and declarations. RETAs are often used by subdivision developers to establish a revenue source for the payment of capital improvements and infrastructure which serves the subdivision area. The rise of RETAs resulted in legislation in 2011 (Senate Bill 11-234) which required Real Estate Transfer Fees to “touch and concern the land,” meaning that the revenues from such fees must be pledged to benefit or improve the property or development project that imposes the fee. RETAs that are simply payable to an individual or entity for profit are prohibited by this legislation. RETTs and RETAs in Eagle County Real Estate Transfer Tax | January 2021 Avon 2% Vail 1% Minturn 1% Arrowhead 1.5% Riverwalk 1%Brett Ranch 1% Bachelor Gulch 2% Beaver Creek 2.375% Cordillera 2%Colorow at Squaw Creek 1% Eagle Ranch 1% Red Sky Ranch 2% Gypsum 1% RETT Revenue by Year Real Estate Transfer Tax | January 2021 $2 , 1 5 9 , 5 2 5 $1 , 6 1 6 , 9 8 2 $1 , 7 0 7 , 6 4 8 $1 , 5 7 4 , 5 0 2 $3 , 7 6 4 , 5 2 6 $2 , 3 6 9 , 3 1 4 $3 , 4 9 7 , 6 0 2 $4 , 4 4 8 , 6 6 6 $3 , 6 2 1 , 1 2 5 $5 , 0 0 1 , 1 4 5 $3 , 8 4 4 , 6 3 9 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 RETT REVENUES BY YEAR 2010-2020 *2020 figure is YTD through November 10-year average 2010-2019 5-year average 2015-2019 RETT Revenues from Large Projects Real Estate Transfer Tax | January 2021 2010 Riverfront PUD -$1,277,768 2011 Riverfront PUD -$237,516,The Ascent -$501,180 2012 Riverfront PUD -$112,701,The Ascent -$71,120 2013 The Ascent -$98,460, Christie Sports Building -$218,000, Nottingham Station -$49,000 2014 Nottingham Station (Delinquent) -$57,842 2015 Wyndham -$61,389 2016 Wyndham -$639,419 2017 Walgreens -$89,673.28, Wyndham -$1,399,271,Nottingham Station -$158,500 2018 Walgreens -$164,236, Wyndham -$636,896, Riverfront Lots 4,5,6,7 -$132,000, Basecamp -$80,900 2019 Wyndham -$1,525,801, 7-Eleven -$120,000, Basecamp -$70,900 RETT revenues from large accommodation, luxury ownership and commercial properties contribute to the overall RETT revenues each year. Village (at Avon) Development Agreement Real Estate Transfer Tax | January 2021 Village (at Avon) Annexation and Development Agreement In 1998, the Avon Town Council approved an Annexation and Development Agreement and Planned Unit Development for the 1,779-acre Traer Creek property. The Development Agreement included an elaborate tax credit financing plan to fund the development of public infrastructure as well as long term vested rights for development entitlements. As part of the financing plan terms, the Town of Avon agreed to provide a tax credit for Avon’s 4% sales tax, 4% accommodations tax, 2% real estate transfer tax, and water tap fees provided that the Master Developer imposes a public improvement fee (“PIF”) in the same amount as the Town’s tax and uses such PIF revenues to pay for public improvements in the Village (at Avon). Town’s tax credit obligation is pledged until the debts on public improvements in the Village (at Avon) are repaid. If Avon reduced the 2% RETT, the Master Developer would likely reduce the corresponding Real Estate Transfer Fee, which would reduce overall PIF revenues and extend the timeframe of the Avon’s tax credit obligations. PAST: Capital Improvement Projects: Last 19 Years Real Estate Transfer Tax | January 2021 Facilities: Avon Station Construction -$4,570,620 Municipal Building Expansions and Improvements -$816,377 New Town Hall Land, Building and Improvements-$6,407,481 Avon Regional Transportation Facility Construction and Public Works Lot 5 Improvements –$13,301,251 ARTF Solar Panels -$258,258 Transit Bus Shelters -$360,282 Nottingham Park Pavilion and Retractable Doors -$4,111,823 Joint Public Safety Facility -$6,864,637 Recreation Center Repairs and Improvements -$2,880,192 Nottingham Park Restroom Remodel -$348,969 Fleet Maintenance Improvements and Fuel Depot Replacement - $124,246 Recycling Center -$21,774 2120 Saddleridge Loop (Wildridge Fire Station) Improvements - $36,160 Town Center Information Kiosks -$24,276 Old Town Hall Powerline Undergrounding and Demolition (In Progress) -$21,891 Land and Land Improvements: US Forest Service Multi-party Land Exchange -$1,031,171 Nottingham Park Repairs and Improvements -$420,027 Wildridge Park Improvements and Playground -$148,404 Wildridge Dog Park -$35,793 Other Land and Land Improvement Projects -$201,965 Roads and Streets: Streetscape Projects -$3,850,635 Avon Mall Improvements -$1,844,456 Street Improvement Projects -$3,146,402 East & West B/C Blvd. Street Rebuild -$3,988,243 Annual Paving and Street Repairs -$6,961,367 Bike Paths and Bike Lanes -$6,371,042 Pedestrian Improvements and Trails -$5,158,218 Eagle River Recreation Access and Enhancements -$1,253,906 Nottingham Park Recreation Amenities -$1,282,227 Utilities, Water, Stormwater & Drainage Projects Waste Heat Recovery -$4,618,491 Fiber Lines -$308,676 Nottingham Lake Liner Replacement -$1,318,139 Metcalf Road Drainage Project -$1,935,679 Buck Creek Drainage Project -$1,232,153 Nottingham-Puder Ditch Restoration project -$202,492 Nottingham Lake Spillway Replacement -$97,868 Nottingham Rd. Debris Flow Project -$164,303 Pump House Pump Replacements -$133,628 Drainage Master Plan $10,035 West B/C Blvd. Drainage Project $42,022 Post Blvd. Irrigation Wet Well -$43,403 Water Rights Acquisition -$9,466 Strategic Planning and Development Assistance General Planning and Consulting -$153,938 Tract G -$120,657 Town Hall Space Needs Analysis -$26,249 Hahnewald Barn predesign / Feasibility Study -$131,413 Buffalo Ridge Affordable Housing -$495,000 Comprehensive Plan -$171,902 Housing Needs Analysis –$18,733 East Avon Redevelopment Master Plan –$196,568 Public Works Master Plan -$63,066 Town Center West Investment Plan -$363,158 Nottingham Park Master Plan -$153,815 Comprehensive Transportation Plan -$198,547 Unified Land Use Code Revision -$193,235 Development Analysis and Review -$558,848 Communications and Technology Projects -$374,918 Developer Rebates -$4,018,778 Debt Service -$8,555,903 Operating Transfers to General Fund (Engineering Services) - $3,518,744 Other (Historical Preservation, Abatements, Misc.) -$177,866 Total Expenditures = $105,479,795 Annual Average = $ 5,551,568 2001-2019 CIP Expenditures Real Estate Transfer Tax | January 2021 Facilities, $40,148,237 Land and Land Improvements, $1,837,360 Roads and Streets, $31,320,372 Recreation, $2,536,133 Utilities, $4,927,167 Water, Stormwater & Drainage, $5,189,188 Strategic Planning and Development Services, $2,845,129 Communications and Technology, $374,918 Other, $177,866 Developer Rebates, $4,018,778 Debt Service $8,555,903 Transfers-out to General Fund, $3,548,744 2001-2019 CIP Expenditures PRESENT: Current 5-Year CIP Plan Real Estate Transfer Tax | January 2021 The Avon Home Rule Charter requires the adoption of a 5-Year Capital Improvements Project Plan. The 5-Year CIP Plan is itemized in the 2021 Annual Budget document and describes specific capital improvements that are planned to be designed and constructed between 2021 and 2025. The 5-Year CIP Plan is updated and adjusted each year by the Avon Town Council as part of the Annual Budget adoption process. 5-Year CIP Plan Expenditures and Use of Funds 2021 $7,591,998 2022 $4,271,868 2023 $2,704,791 2024 $3,333,443 2025 $3,413,284 TOTAL $21,315,384 FUTURE: 20-Year CIP Outlook Real Estate Transfer Tax | January 2021 The Engineering Department is establishing an inventory of all public infrastructure with indication of the remaining useful life and estimated cost for resurfacing, replacement, or reconstruction. Public Infrastructure Estimated Costs for Resurfacing, Replacement or Reconstruction Public Roads (23.77 miles)$15,830,474 Parking Lots $1,331,500 Avon Station and Main Street Mall $1,349,271 Bus Shelters $444,611 Buildings and Facilities $14,400,513 Streetlights, Signs, Trails and Guardrails $1,050,000 Parks and Landscaping $7,613,108 TOTAL OVER 20 YEARS $41,423,469 ANNUAL AMOUNT $2,071,173 Alternatives to RETT Real Estate Transfer Tax | January 2021 PROPERTY TAX Based on the 19 year average, Avon’s property tax would need to be increased by 14.82 mills to replace the revenue generated by RETT. Annual Property Tax w/ 14.82 mills $500k Residential property $ 529 $1 Million Residential property $1,058 $500k Commercial property $2,149 $1 Million Commercial property $4,298 SALES TAX Based on the 19 year average, Avon’s sales tax would need to be increased by 1.82%to replace the revenue generated by RETT. Sales Tax Rate in Avon to Replace RETT Existing Avon sales tax rate 4% Additional Avon sales tax to replace RETT 1.82% Eagle County sales tax rate 1.5% State of Colorado sales tax rate 2.9% TOTAL SALES TAX RATE 10.2% Alternatives to RETT Real Estate Transfer Tax | January 2021 Reduce Expenditures If Avon’s Real Estate Transfer Tax was repealed and no replacement revenues were enacted, then Avon would be required to reduce its expenditures by $2,900,000 per year. Such a reduction in expenditures would require a reduction in staff, reduction in town services and reduction in capital improvements and maintenance of existing public infrastructure. Other Alternatives There are countless other potential alternatives that could involve a combination of lowering the 2% real estate transfer tax rate, enacting other sources of revenue, and reducing expenditures. Analysis of other alternatives is beyond the scope of this RETT overview. Village (at Avon) Development Agreement Real Estate Transfer Tax | January 2021 Consequences of Reduced RETT A reduction or elimination of Avon’s RETT would likely result in a reduction of the corresponding Real Estate Transfer Fee in the Village (at Avon). Any consideration of reducing the RETT in Avon should include a thorough analysis of the financial consequences with the debt repayment and Town’s tax credit obligations associated with the Village (at Avon). Please send any questions or comments to info@avon.org Real Estate Transfer Tax | January 2021