Finance Committee Meeting Materials - 07-20-2022JULY 20, 2022 - FINANCE COMMITTEE MEETING MATERIALS PAGE 1 | 1
FINANCE COMMITTEE MEETING MATERIALS
TUESDAY, JULY 20, 2022
1. STAFF UPDATES ON FINANCIAL RESULTS THROUGH JUNE
2. 2022 CONSTRUCTION ACTIVITY UPDATE
3. STAFF PRESENTATION: EPS REPORT AVON REVENUE & ECONOMIC STUDY
4. STAFF PRESENTATION: RESULTS AVON VOTER POLLING ON USE TAX, MARIJUANA TAX, AND REGIONAL
TRANSPORTATION AUTHORITY TAX QUESTIONS
5. COUNCIL REPORTS ON USE TAX & MARIJUANA TAX
6. COUNCIL REPORT ON THE REGIONAL TRANSIT AUTHORITY
970-748-4019 jmccracken@avon.org
TO: Honorable Mayor Smith Hymes and Council Members FROM: Joel McCracken, Finance Manager
RE: Financial Report – May & June 2022 Data
DATE: July 14th, 2022
SUMMARY: This report presents the revenues for sales, accommodations, tobacco and cigarette, and
short-term rental tax for May 2022 and the recreation fees and real estate transfer tax revenues for June
2022.
BACKGROUND: The Town’s 2022 final revised budget was adopted in December 2021. The percentage
variance, or comparative change is reflected in the analysis portion of this report in respect to each
individual section for May and June revenues in 2022. Tax revenues are not budgeted on a monthly basis;
however, for purposes of analysis, monthly budget variances are based on a 3-year average of actual
revenues.
REVENUE ANALYSIS:
Sales Tax: Revenues – May 2022: May sales tax revenues totaled $647,246. This is an increase of
$79,477 or 14.00% compared to May 2021 sales tax revenue of $567,769.
MAY 2021 v MAY 2022 SALES TAX COMPARISON BY INDUSTRY
May 2021 May 2022 Increase/Decrease
Home/Garden $85,875.21 $104,236.93 $18,361.72
Grocery/Specialty/Health $139,633.98 $145,296.82 $5,662.84
Sporting Goods Retail/Rental $28,095.42 $28,777.38 $681.96
Miscellaneous Retail $19,436.84 $24,194.36 $4,757.52
Accommodations $86,339.51 $72,668.16 ($13,671.35)
Restaurants/Bars $97,358.22 $111,443.96 $14,085.74
Other $6,553.88 $7,200.34 $646.46
Service Related $12,728.97 $15,553.20 $2,824.23
Liquor Stores $19,246.53 $38,416.07 $19,169.54
E-Commerce Retail $32,117.82 $37,425.77 $5,307.95
Manufacturing/Wholesale $7,503.30 $7,349.44 ($153.86)
Construction Related Services $26,254.29 $47,672.63 $21,418.34
Digital Media Suppliers/Sellers $5,301.60 $5,486.94 $185.34
Commercial/Industrial Equipment $1,323.02 $1,326.74 $3.72
Special Events - $96.77 $196.77
TOTAL $567,768.59 $647,245.51 $79,476.92
Page 2 of 8
NOTE: Since the Colorado Sales and Use Tax System (“SUTS”) was first implemented in the Town of
Avon in late 2020, more than 100 businesses have registered to remit sales tax which has resulted in e-
commerce retail sales tax revenues to dramatically increase.
Sales Tax: May 2022 Budget v Actual Collections: May 2022 sales tax revenues totaled $647,246. This
is an increase of $83,383 over the May 2022 estimates of $563,862. This is 14.79% over the adopted
2022 budget (based on a 3-year average).
MAY 2022 BUDGET v ACTUAL COLLECTIONS - SALES TAX
2022 Budget 2022 Actual Dollar Variance Percentage Variance
May $563,862.16 $647,245.51 $83,383.35 14.79%
418,628.58 422,685.32 424,189.45 567,768.59 647,245.51
0.97%0.36%
33.85%
14.00%
$300,000
$350,000
$400,000
$450,000
$500,000
$550,000
$600,000
$650,000
$700,000
2018 2019 2020 2021 2022
2018-2022 May Sales Tax Revenue Trend
Page 3 of 8
Accommodation Tax: Revenues – May 2022: Accommodation tax revenues totaled $76,495 for the
month of May. This is a decrease of $7,334 or (-8.75%) compared to May 2021 accommodation tax
revenues, which totaled $83,829. Accommodation tax collections by industry type for May 2022 compared
to May 2021 reported an increase for Hotels and a decrease for Vacation Rentals & Time Shares.
MAY 2021 v MAY 2022 ACCOMMODATION TAX COMPARISON BY INDUSTRY
May 2021 May 2022 Increase/(Decrease)
Timeshares $16,309.00 $15,353.27 ($955.73)
Hotels $29,921.03 $30,768.87 $847.84
Vacation Rentals $37,599.00 $30,373.33 ($7,225.67)
TOTAL $83,829.03 $76,495.47 ($7,333.56)
May 2022 Budget v Actual Collections: May 2022 accommodation tax revenues totaled $76,495. This is
an increase of $9,849 over the May 2022 estimates of $66,646. This is 14.78% over the adopted 2022
budget (based on a 3-year average).
MAY 2022 BUDGET v ACTUAL COLLECTIONS - ACCOMMODATIONS TAX
2022 Budget 2022 Actual Dollar Variance Percentage Variance
May $66,646.35 $76,495.47 $9,849.12 14.78%
42,618 47,259 13,290 83,829 76,495
10.89%
-71.88%
530.79%
-8.75%
$0
$25,000
$50,000
$75,000
$100,000
2018 2019 2020 2021 2022
2018-2022 May Accommodation Tax Revenue
Trend
Page 4 of 8
Short Term Rental Tax: Revenues – May 2022: STR Tax for Community Housing totaled $32,998 for the
month of May. There are no previous period revenues for comparison. The amount of STR Tax for
Community Housing revenues collected year-to-date compared to the annual budget of $750,000
represents 75.78%. The Westin Hotel is classified as a hotel in our MuniRevs system, although they are
zoned as residential.
MAY 2022 STR TAX FOR COMMUNITY HOUSING COMPARISON BY INDUSTRY
May 2022
Timeshares $7,676.64
Hotels $10,834.50
Vacation Rentals $14,486.43
TOTAL $32,997.57
Tobacco & Cigarette Tax: Revenues – May 2022: Tobacco tax revenues totaled $24,274 and cigarette
tax revenues totaled $20,034 for May 2022. Compared to May 2021 revenues, this is an increase of $5,499 for tobacco tax revenues, which totaled $18,775 and an increase of $300 for cigarette tax
revenues, which totaled $19,734.
4,833 14,952 18,775 24,274
209.41%
25.57%
29.29%
-
5,000
10,000
15,000
20,000
25,000
30,000
2019 2020 2021 2022
2019-2022 May Tobacco Tax Revenue Trend
Page 5 of 8
May 2022 Adopted Budget v Actual Collections: May 2022 tobacco and cigarette tax revenues totaled
$24,274 and $20,034, respectively. This is an increase of $6,588 over the May 2022 budget for tobacco
tax, which is $17,686 and a decrease of $5,847 under the May 2022 budget for cigarette tax estimates,
which is $25,881 which is based on a 3-year average.
MAY 2022 BUDGET v ACTUAL COLLECTIONS - TOBACCO AND CIGARETTE TAX REVENUES
2022 Budget 2022 Actual Dollar Variance Percentage
Variance
Tobacco $17,685.92 $24,273.88 $6,587.96 37.25%
Cigarettes $25,880.89 $20,034.00 ($5,846.89) -22.59%
Total $741.07
28,463 23,781 19,734 20,034
-16.45%
-17.02%
1.52%
-
5,000
10,000
15,000
20,000
25,000
30,000
2019 2020 2021 2022
2019-2022 May Cigarette Excise Tax Revenue
Trend
Page 6 of 8
Real Estate Transfer Tax: Revenues – June 2022: June 2022 real estate transfer tax totaled $417,855.
Compared to June 2021, which totaled $560,858, this is a decrease of $143,003.
$343,141 $237,144 $222,169 $560,858 $417,855
-30.89%-6.31%
152.45%
-25.50%
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2018 2019 2020 2021 2022
Real Estate Transfer Tax June Revenue Trends
Page 7 of 8
Recreation Center Fees: Revenues – June 2022 Admissions & Program Fees: Recreation admission
revenues for June 2022 totaled $91,702, an increase of $20,473 compared to June 2021 which totaled
$71,229. This is $40,242 over the adopted 2022 budget estimates of $51,460. Recreation program fee
revenues for June 2022 totaled $27,734. This is a decrease of $3,323 compared to 2021, which totaled
$31,057. This is $13,208 under the adopted 2022 budget estimates, which is $40,942 which is calculated
based on a 3-year average.
62,135 68,601 12,372 71,229 91,702
10.41%
-81.97%
475.72%
28.74%
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
2018 2019 2020 2021 2022
Recreation Admissions June Revenue Trends
$37,231 $34,569 $36,744 $31,057 $27,734
-7.15%
6.29%
-15.48%
-10.70%
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
2018 2019 2020 2021 2022
Recreation Program Fees June Revenue Trends
Page 8 of 8
Tax Revenue Comparison – YTD 2021 v 2022: All revenues except for cigarette tax are reporting an
increase for 2022 compared to 2021. Below is a table which reflects the dollar change and percentage
variance.
Adopted Budget 2022 v Actual 2022: All revenues except for Cigarette tax and Recreation Program Fees
reflect a positive variance over the 2022 budget. Below is a table which reflects the dollar change and
percentage variance.
Thank you,
Joel
2021 v 2022 Year-to-Date Revenue Comparison
2021 YTD 2022 YTD Dollar Variance Percentage
Variance
Sales Tax $4,259,001.37 $5,230,484.38 $971,483.01 22.81%
Acc. Tax $768,684.13 $1,242,707.59 $474,023.46 61.67%
Tobacco Tax $123,334.27 $137,617.79 $14,283.52 11.58%
Cigarette Tax $100,614.00 $95,910.54 (4,703.46) -4.67%
RETT $2,440,285.58 $3,364,778.13 $924,492.55 37.88%
Rec Admissions $236,021.67 $494,177.38 $258,155.71 109.38%
Rec Program Fees $121,940.38 $147,538.32 $25,597.94 20.99%
2022 Revenue Comparison – Budget v Actual
Budget Actual Dollar Variance Percentage
Variance
Sales Tax $4,453,574.49 $5,230,484.38 $776,909.89 17.44%
Acc. Tax $946,997.16 $1,242,707.59 $295,710.43 31.23%
Tobacco Tax $111,526.34 $137,617.79 $26,091.45 23.39%
Cigarette Tax 105,062.38 $95,910.54 ($9,151.84) -8.71%
RETT 1,395,496.19 $3,364,778.13 $1,969,281.94 141.12%
Rec Admissions $282,967.82 $494,177.38 $211,209.56 74.64%
Rec Program Fees $164,051.32 $147,538.32 (16,513.00) -10.07%
970.748.4413 matt@avon.org
Page 1 of 4
TO: Honorable Mayor Smith Hymes and Council
FROM: Matt Pielsticker, AICP, Planning Director
RE: 2022 Construction Activity Update
DATE: June 20, 2022
SUMMARY: This report provides a snapshot update of current construction activities occurring throughout
Town, with more detailed information provided on the larger jobs. Year to date, the Community
Development Department has issued 94 permits with a total construction valuation of $204,199,048. Total
fees collected this year so far total $44,383 for Exterior Energy Offset, $724,416 for Building Permits, and
$468,041 for Plan Review. The remainder of this report includes descriptions and updates on the largest
active construction projects in Town: Frontgate, Eagle River Water and Sanitation Wastewater plant, Dual-
Brand Hotel, and One Riverfront. A map of current major new construction or addition/remodel permits is
attached (“Attachment A”) to this report.
FRONTGATE: After receiving approvals and full building permit, the construction team quickly mobilized in May.
Excavation of the entire Condominium portion of the project is complete and underground utilities are currently
being installed. Excavation has commenced for the townhome site and will be complete by mid-summer 2022. The
upper section of the Shoring Wall has been reformed with a finish coat to represent a natural rock landscape. As of
June 15, the Contractor has formed and poured 28 building footers while completing the western portion of the
shoring wall. These were all critical milestones to prepare the site for crane mobilization and commencement of
precast erection which will occur in late June 2022. The installation of precast will occur through the fall.
LINK to more info HERE
970.748.4413 matt@avon.org
Page 2 of 4
EAGLE RIVER WATER & SANITATION: The construction contractor for the Avon Wastewater Treatment Facility
Nutrient Upgrades Project mobilized on May 4, 2020 to upgrade the facility to meet Colorado Department of Public
Health and Environment regulations and to replace aging infrastructure. Construction of the new secondary clarifier
basin, carbon scrubber odor control, new aeration basins, and one half of the modifications to the existing aeration
basins have been completed. Improvements to the headworks, grit system, and primary clarifiers are also complete.
The remainder of the project, including the modifications to the existing aeration basin, equalization system, HVAC,
pumping systems, and landscaping, is expected to be completed on schedule by the end of 2022.
970.748.4413 matt@avon.org
Page 3 of 4
DUAL BRAND HOTEL: With project permits in hand, RA Nelson mobilized to site in late May. Work has
included clearing and preparing the project site located at 1782 Swift Gulch Road. Site excavation is
underway and the building foundation system and consisting of micro piles, piers, footings, and grade
beams are scheduled to begin in the coming month. Site utility trenching has also begun, and key building
services will be stubbed to the site this summer. Critical foundation work will continue in the summer months
allowing for vertical construction to begin by the end of this year. The 4 story 130,000SF structure is
comprised of insulated concrete form (ICF) exterior walls and traditional type 5 wood framing within. The site
will be home to a 243 key dual branded Marriott Springhill Suites and Towneplace Suites hotel, set to open
in early 2024. LINK to more INFO HERE
970.748.4413 matt@avon.org
Page 4 of 4
ONE RIVERFRONT: The first phase of the construction began last July which consisted of 13
Townhomes, underground level of parking and related sitework. The Contractor, Evans Chafee,
encountered voids in the soils which necessitated that 9 of the Townhomes to have the foundations
supported on micro-piles as well as the parking garage. That was completed in May and the units/garage
will complete in December through April of 2023. The second phase consisting of 40 condominiums will
start in July. The construction is anticipated to complete in the early winter of 2024. This is the final phase
of Riverfront Village. All 13 Townhomes are sold as well as 35 of the 40 condominiums. LINK to more info
HERE
Thank you, Matt
ATTACHMENT A: 2022 Active Construction Permit Map
ACTIVE PERMITS 2022
MOUNTAIN STAR
New construction
Additions/Remodels
NOTE: May be a single unit within
the parcel or building or multiple
units within the same parcel or
building
WILDRIDGE
Economic & Planning Systems, Inc.
The Economics of Land Use
Prepared by:Prepared for:
Town of Avon
Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
July 14, 2022 EPS #213079
ii Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
Table of Contents
2
3
4
1
5
6
Introduction and Town Profile 1
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Town Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Demographic Snapshot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Comparison Municipalities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Peer Municipality Comparison 11
Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
Municipal Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
Staffing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
General Fund Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Property Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Other Revenue Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Mountain Resort Host Community Comparisons 19
Sales Tax 19
Lodging and Ski Lift Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Property Tax and Real Estate Cost of Ownership 23
Metro Districts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Real Estate Transfer Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Cost of Ownership Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
Inflow–Outflow Analysis 29
Taxable Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Expenditure Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
Store Sales by Demand Segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
Revenue Outlook 35
Planned Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Estimated Tax Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Economic & Planning Systems, Inc . iii
Ta
b
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Table 1 . Municipal Services Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Table 2 . Total Annual Estimated Tax Revenue, Town of Avon . . . . . . . . . . . . . . . . .6
Table 3 . Avon Full-Time Employees, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Table 4 . Demographic Summary, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Table 5 . Avon Residential and Commercial Construction, 2011-2021 . . . . . . . . . . . .8
Table 6 . Comparison Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Table 7 . Demographics, Peer Communities, 2021 . . . . . . . . . . . . . . . . . . . . . . . . 12
Table 8 . Services Provided, Peer Communities . . . . . . . . . . . . . . . . . . . . . . . . . 12
Table 9 . Full-Time Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Table 10 . General Fund Revenue Summary, Peer Communities, 2021 . . . . . . . . . . 15
Table 11 . Additional Revenue Sources, Peer Communities . . . . . . . . . . . . . . . . . . 18
Table 12 . Sales Tax Collections, 2018-2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Table 13 . Lodging, STR, and Ski Tax, Comparison Cities . . . . . . . . . . . . . . . . . . . . 21
Table 14 . RETT and RETA Rates in Colorado . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Table 15 . RETT Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Table 16 . Seven Year Cost of Ownership Analysis . . . . . . . . . . . . . . . . . . . . . . . . . 26
Table 17 . Taxable Sales, Town of Avon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
Table 18 . Housing Unit Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Table 19 . Expenditure Potential, Full-Time Resident and Second Homeowner . . . . . 30
Table 20 . Retail Sales Capture, Resident . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Table 21 . Retail Sales Capture, Part-Time Residents . . . . . . . . . . . . . . . . . . . . . . . 31
Table 22 . Visitor Days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Table 23 . Visitor Spending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Table 24 . Store Sales by Demand Segment . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
Table 25 . Proposed Development, Town of Avon . . . . . . . . . . . . . . . . . . . . . . . . 35
Table 26 . Development Market Value Estimates . . . . . . . . . . . . . . . . . . . . . . . . .36
Table 27 . Estimated Annual Property Tax Revenue . . . . . . . . . . . . . . . . . . . . . . .36
Table 28 . Estimated Hotel and STR Sales and Lodging Tax Revenue . . . . . . . . . . . . 37
Table 29 . Estimated Gas Station Sales Tax Revenue . . . . . . . . . . . . . . . . . . . . . . . 38
Table 30 . Total Annual Estimated Tax Revenue, Town of Avon . . . . . . . . . . . . . . . . 38
Table A1 . Sales Tax Rates, Peer Communities, 2021 . . . . . . . . . . . . . . . . . . . . . . .40
Table A2 . Mill Levies, Peer Communities, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . .40
Table A3 . Sales Tax with Retail Sales Fee, Peer Communities . . . . . . . . . . . . . . . . 41
Table A4 . Lodging and STR Tax, Peer Communities . . . . . . . . . . . . . . . . . . . . . . . 41
Table A5 . Metro District Mill Levies, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
iv Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
Fi
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Figure 1 . Seven Year Tax Cost of Ownership on a Home . . . . . . . . . . . . . . . . . . . . .4
Figure 2 . Store Sales by Demand Segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Figure 3 . General Fund Revenue, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Figure 4 . General Fund Revenue per Housing Unit, 2021 . . . . . . . . . . . . . . . . . . . 14
Figure 5 . Major General Fund Revenue Source, 2021 . . . . . . . . . . . . . . . . . . . . . . 14
Figure 6 . Sales Tax Rates, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Figure 7 . Property Mill Levies, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Figure 8 . Sales Tax Rate, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
Figure 9 . Lodging Tax Rate, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Figure 10 . Combined Sales, Lodging, and STR Tax Rate, 2021 . . . . . . . . . . . . . . . . .22
Figure 11 . Vail Valley Metro District Mill Levies . . . . . . . . . . . . . . . . . . . . . . . . . . .23
Figure 12 . Vail Valley Metro District Mill Levies . . . . . . . . . . . . . . . . . . . . . . . . . . .24
Figure 13 . Seven Year Cost of Ownership Analysis . . . . . . . . . . . . . . . . . . . . . . . . 25
Figure 14 . National Property Tax Comparison, 2019 . . . . . . . . . . . . . . . . . . . . . . . 27
Figure 15 . Store Sales by Demand Segment . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
Introduction
The Town of Avon’s 2017-2019 Strategic Plan directed that consultant services be
retained to analyze revenues collected from all major sources including the Real
Estate Transfer Tax (RETT) . In 2018, as part of that effort, EPS was retained to conduct a
comprehensive revenue analysis for the Town compared to several peer municipalities,
resort host towns, and residential areas in Eagle County .
This report is an update of the 2018 report and addresses specific stakeholder comments
from the prior report, adds an expanded set of peer municipalities, and includes a cost
of ownership analysis to help measure the impacts of one-time RETTs . The purpose is to
provide comparison data in the following areas to inform the Town Council and Staff’s
considerations on revenue sources, tax levels, and funding strategies .
X Revenue diversity – How reliant is the Town on sales and lodging tax compared to
peer communities?
X Sales and use and lodging tax rates – How do the town’s tax rates compare to
surrounding areas, including the effect of add-ons such as resort taxes and public
improvement fees?
X Property Tax and Real Estate Cost of Ownership – How do property taxes and real
estate transfer taxes or fees compare to major residential areas in the Vail Valley?
What is the cost in taxes and transfer fees of owning the same priced home in
different areas of the Vail Valley and Eagle County?
1. Introduction and Town Profile
Economic & Planning Systems, Inc . 1
1. The Town of Avon provides a full range of municipal services to its residents
and guests similar to other peer comparison municipalities. However, Avon is
distinguishable from several municipalities because it operates its own free public
transit system.
Avon is a full-service municipality with a staff of approximately 100 full time employees .
The Town’s major services include public safety, public works, culture-recreation,
community development, and Town general government and administrative functions
including Mayor and Town Council, Planning and Zoning Commission, Town Attorney,
Town Clerk, and Municipal Court as shown in Table 1 . The Town also operates a free
public transportation system, similar to Breckenridge and Vail . Only Vail and Steamboat
have their own fire departments; special districts provide fire and EMS coverage in Avon
and each of the other peer comparison municipalities .
The Town’s transit system costs approximately $2 .1 million annually to operate . Funding
is provided by the General Fund ($1 .3 million, 60%) with the remainder coming from
various other revenues sources including property taxes, charges for services, and
operating grants . Vail and Breckenridge are the only other comparison municipalities
who operate transit systems .
Avon provides this level of service with comparatively lean staffing levels . Out of 10
municipalities analyzed, Avon has the second lowest staffing levels (ranked 8th) when
normalized for the size of the community (employees per housing unit) .
Table 1. Municipal Services Comparison
Description
Fire/
EMS Police
Parks &
Rec
Rec.
Facilities
Public
Transit
Public
Works
Avon ✔✔✔✔✔
Basalt ✔✔✔✔✔
Breckenridge ✔✔✔✔✔
Eagle ✔✔✔ ✔
Frisco ✔✔✔ ✔
Silverthorne ✔✔✔ ✔
Snowmass ✔✔✔✔✔
Steamboat ✔✔✔✔ ✔
Telluride ✔✔✔✔✔
Vail ✔✔✔✔✔✔
Winter Park ✔✔✔ ✔
Source: Economic & Planning Systems
2 Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
2. The Town of Avon is average in terms of the diversity of its revenues with about 57
percent coming from sales tax, but better off than communities with less assessed
value or no general property tax.
Municipalities with a heavy reliance on just one or two revenue sources can be more
susceptible to economic and market downturns . In Avon, 56 .9 percent of the General
Fund revenue came from sales tax in 2021 which is almost exactly the average of the
peer municipalities in which sales tax was on average 57 percent of the General Funds
in 2021 .
Property tax, while only about 10 percent of the General Fund, is an important revenue
that provides more stability than sales tax outside of abnormal housing market
downturns . In the peer municipalities property tax ranged from 1 .4 percent to 16 .0
percent of general fund revenues among the peer communities . In Avon, 9 .6 percent
of general fund revenues were generated from property tax, the fourth-highest of the
peer municipalities behind Breckenridge (16 percent), Vail (14 .5 percent), and the much
smaller Town of Basalt (13 .6 percent) .
Steamboat Springs and Silverthorne do not levy a general property tax and rely more
heavily on sales and lodging tax .
Economic & Planning Systems, Inc . 3
3. Even with the Town’s 2.0 percent real estate transfer tax (RETT), the taxes on
owning and selling a home in Avon over seven years are lower than many areas of
the Vail Valley and Eagle County.
The Town’s 2 .0 percent RETT is higher than most other areas of Eagle County where 1 .0
percent RETTs are more common . The highest transfer fee however is found in Beaver
Creek at 2 .375 percent .
The total property tax mill levy in Avon is 62 .617 . This is similar to Edwards (59 .002), Berry
Creek (64 .049), and Arrowhead (68 .161) metro districts . Total mill levies in Avon are about
10 mills lower than Eagle-Vail and Beaver Creek; 29 mills lower than Eagle Ranch; and
more than 50 mills lower than Red Sky Ranch and Cordillera . The total mill levy in Vail
is about 10 mills less than in Avon, but property values are considerably higher in Vail,
making property taxes higher as well .
Using these mill levies and local RETT and real estate transfer assessment (RETA) rates,
EPS estimated the tax cost of owning a home in several areas of the Vail Valley and
Eagle County using a $700,000 median home price (Eagle County, 2021) . As shown
below, Avon has a lower seven year cost of ownership than Red Sky Ranch, Cordillera,
Cotton Ranch, and Eagle Ranch . It is assumed that the RETT or RETA are split equally
by buyer and seller . While there is not a lot of residential development in the Village at
Avon metro district today, it has the highest cost of ownership .
Figure 1. Seven Year Tax Cost of Ownership on a Home (Property Tax, and RETT or RETA)
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Village at
Avon
Red Sky
Ranch
Metro
District
Cordillera
Metro
District
Cotton
Ranch
Metro
District
Eagle Ranch
Metro
District
Town of
Avon
Minturn Gypsum Beaver
Creek
Metro
District
Eagle-Vail Arrowhead
Metro
District
Berry Creek
Metro
District
Vail Town of
Eagle
Edwards
Metro
District
Estimated Cost of Ownerhsip
Chart Title
Source: Economic & Planning Systems
Z:\Shared\Projects\DEN\213079 Avon Revenue and Economic Study\Data\213079-Peer Community Budget.xlsx
4 Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
4. Full-time residents in Avon are estimated to generate 21.6 percent of retail sales or
about 1 out of every 5 sales tax dollars. Conversely, visitors and other people in the
region contribute about 4 out of every 5 dollars in sales tax.
Like many other mountain towns, Avon’s retail economy is largely driven by overnight
visitors and second homeowners . An estimated 46 .5 percent of Avon’s retail sales
are driven by regional inflow (spending from the larger Vail Valley and I-70 Corridor) .
Another 28 .3 percent of sales are estimated to come from visitors, and about 3 .6 percent
from part time residents in the Town as shown in Figure 2 .
Figure 2. Store Sales by Demand Segment
46.5%
28.3%
21.6%
3.6%
0%5%10%15%20%25%30%35%40%45%50%
Regional Inflow
Overnight Visitors
Residents
Second Homeowners
Estimated % of Store Sales
Chart Title
Source: Economic & Planning Systems
[link to source]
Economic & Planning Systems, Inc . 5
5. There are seven significant development projects in the Town expected over the
next five years. They are projected to generate $374,050 in new town tax revenue,
with $85,021 coming from the Village at Avon Hotel.
The planned development projects include a 4,425 square foot Maverik gas station, a
243 room hotel, and several condominium and townhome projects . The Village at Avon
Hotel is estimated to account for approximately 23 percent of these projected revenues,
highlighting the importance of non-residential development that generates sales and/
or lodging tax and higher property taxes per dollar of assessed value . The total revenue
generated for the Town from these projects, shown below in red font, would represent
an estimated 1 .8 percent increase from the 2021 general fund revenue .
Table 2. Total Annual Estimated Tax Revenue, Town of Avon
From Retail Sales From Lodging Sales Totals
Location and Project
Town
Prop. Tax
Retail
Sales Fee PIF
Town
Sales Tax
Lodging
Tax/Fee STR Tax
All Taxes
and Fees Town Only
8.956 mills 4.00%0.75%4.00%4.00%2.00%
Village at Avon [1]
Maverik Gas Station $3,735 $53,100 $9,956 $2,522 ------$69,313 $6,257
Village at Avon Hotel 6 3 ,113 461,214 86,478 21,908 $461,214 ---1,093,926 85,021
Total $66,848 $514,314 $96,434 $24,430 $461,214 $0 $1,163,240 $91,278
Other Areas
Riverfront Townhomes $16,183 ------$7,473 $7,473 $3,737 $34,867 $27,394
Riverfront Condos 37,347 ------22,995 22,995 11, 49 8 94,834 71,839
Frontgate Townhomes 11,204 ------5,174 5,174 2,587 24,139 18,965
Frontgate Condos 70,025 ------4 3 ,116 4 3 ,116 21,558 177,814 134,698
McGrady Acres Townhomes 29,877 ---------------29,877 29,877
Total $164,636 $0 $0 $78,758 $78,758 $39,379 $361,531 $282,773
Total Town Revenue $231,484 $103,188 $78,758 $39,379 $374,050
2021 General Fund Revenue $2,047,905 ------$12,139,470 $2,017,544 ---$21,326,845 $21,326,845
% Impact 8.0%------0.6%3.9%------1.8%
[1] 4.00% Town Sales Tax is applied on the 4.75% Retail Sales Fee & PIF for developments in Village (at Avon)
Source: Economic & Planning Systems
6 Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
Table 3. Avon Full-Time Employees, 2021
Town Profile
Avon is a home rule municipality
in Eagle County located along I-70,
eight miles west of Vail . It is an
important shopping, services, and
visitor destination in the Vail Valley
and Colorado in general . Avon is a
commercial hub for the region with
major shopping locations including a
Walmart Supercenter, Home Depot,
City Market, several sporting goods
stores, and other retail businesses,
restaurants, and hotels .
While not a direct ski area portal
like Vail or Breckenridge, Avon is the
primary access point to Beaver Creek
Ski Resort (owned by Vail Resorts),
which attracts approximately 900,000 annual skier visits compared to 1 .4 to 1 .6 million at Vail
and Breckenridge . Beaver Creek and its associated base village and nearby neighborhoods
such as Bachelor Gulch are in unincorporated Eagle County . Avon is connected to Beaver
Creek by the Riverfront Gondola, which travels to Beaver Creek Landing from Avon Station .
The Town also has a free bus service to bring residents and visitors to Avon Station and a
winter skier shuttle that takes skiers up to Beaver Creek Village .
Avon is a full-service municipality with a staff of nearly 100 full-time employees, as shown
in Table 3 . The Town’s major services include a Police Department, a Public Works
Department, plus Town government and administrative functions including the Mayor
and Town Council, Planning and Zoning Commission, Town Attorney, Town Clerk, and
Municipal Court . The Town does not have its own Fire Department; fire protection is
provided by the Eagle River Fire Protection District .
Department
Full-Time
Positions
General Government 7.00
Human Resources 3.75
Finance & IT 10.00
Community Development 4.00
Police 23.00
Public Works 17.00
Engineering 7.00
Recreation 10.00
Mobility 9.00
Fleet Maintenance 9.00
Total 99.75
Source: 2021 Avon Adopted Budget;
Economic & Planning Systems
The Town also operates its own free public
transportation system consisting of three in-town
shuttles (Blue Line, Red Line, and Avon Loop Night
Rider), a skier shuttle to Beaver Creek, and an
evening restaurant shuttle connecting Avon with
Beaver Creek Resort . The Town’s transit system
complements but is separate from regional
commuter service provided by the Eagle County
Regional Transit Authority .
Economic & Planning Systems, Inc . 7
Demographic Snapshot
Avon has a full-time resident population estimated at 6,072, as shown in Table 4 .
Avon’s population is younger on average than Eagle County’s, with a median age of
33 .1 compared to 36 .0 countywide . Also, average household size in Avon is 2 .79, which
is similar to the County average of 2 .71 . As of 2021, Avon’s average household income is
$104,554, 22 percent lower than the countywide average of $127,705; Median household
income for Avon is $78,031, while Eagle County is $92,631 .
In Avon, about 39 percent of the households are non-family households (roommates
and people living alone), as shown in Table 4 . Family households (related by blood or
marriage) comprise 61 percent of all households . A household is a person or a group of
people, related by blood or unrelated (“non-family households”), living in one occupied
dwelling unit .
Table 4. Demographic Summary, 2021
Description Avon
Eagle
County
Population 6,072 57,726
Household Income
Average Household Income $104,554 $127,705
Median Household Income $78,031 $92,631
Average Household Size 2.79 2.71
Median Age 33.1 36.0
Housing Type
Family Household 60.7%66.2%
Non-Family Household 39.3%33.8%
Tenure
Owner Occupied 51.2%68.3%
Renter Occupied 48.8%31.7%
Households
Families with children under 18 years 34.5%31.8%
Source: ESRI; U.S. Census; Economic & Planning Systems
Since 2011 372 new residential units and nearly 690,000 square feet of commercial
space were built in Avon, as shown in Table 5 . Since 2011, the largest residential project
that delivered in the Town of Avon was the Riverfront Townhomes, which completed
in 2019 . These building permit trends are indicative of a community that is largely built
out . Construction is comprised of smaller infill projects punctuated by occasional larger
development and redevelopment projects .
Table 5. Avon Residential and Commercial Construction, 2011-2021
2011-2020
New Construction 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total Ann. #
Residential Units 9 8 12 10 10 7 6 20 278 12 372 41
Commercial Sq. Ft.54,250 217,293 0 114,614 90,309 60,043 93,579 23,276 36,082 0 689,446 76,605
Source: Town of Avon Community Development Department; Economic & Planning Systems
8 Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
Comparison Municipalities
For revenue and tax rate comparisons, three sets of comparison or “peer” communities
were defined as summarize below and listed in Table 6 .
X Peer Comparison: Data collected for comparison of municipalities with similar
economic structures include demographics, services provided, employee metrics, and
a general fund revenue analysis.
X Mountain Resort Host Communities: Data collected for comparable ski resort
municipalities where ski areas have major infrastructure. Sales and lodging tax
comparisons are further evaluated.
X Property Tax and Real Estate Cost of Ownership: Data collected for comparison
include property tax and Real Estate Transfer Taxes (RETT) and Real Estate Transfer
Assessments (RETA) costs for Eagle County municipalities with RETT and large metro
districts.
Table 6. Comparison Communities
Description Peer Comparison
Mountain Resort
Host Comparison
Property Tax/ RETT
Comparison
Comparisons Revenues (Budget)Sales & Lodging Tax Cost of Ownership
Aspen ✔
Arrowhead Metro District ✔
Basalt ✔
Beaver Creek ✔
Beaver Creek Metro District ✔
Berry Creek Metro District ✔
Breckenridge ✔✔
Copper Mountain ✔
Cordillera Metro District ✔
Cotton Ranch Metro District ✔
Eagle ✔ ✔
Eagle Ranch Metro District ✔
Eagle-Vail ✔
Edwards Metro District ✔
Frisco ✔✔
Gypsum ✔
Keystone ✔
Minturn ✔
Mountain Village ✔
Red Sky Ranch Metro District ✔
Silverthorne ✔
Snowmass Village ✔✔
Steamboat Springs ✔✔
Telluride ✔✔
Vail ✔✔✔
Village at Avon ✔
Winter Park ✔✔
Source: Economic & Planning Systems
Economic & Planning Systems, Inc . 9
THIS PAGE INTENTIONALLY LEFT BLANK
This chapter provides a summary of demographics, services, and budget comparisons
between the Town of Avon and peer municipalities including:
X Basalt
X Breckenridge
X Eagle
X Frisco
X Silverthorne
X Snowmass Village
X Steamboat Springs
X Telluride
X Vail
X Winter Park
The main purpose of this chapter is to evaluate how Avon’s mix of general fund revenues
compare to similar municipalities . Towns and cities are generally more resilient when not
dependent on just one revenue source .
Demographics
Avon (pop . 6,952) is the third-largest of the peer municipalities in terms of population,
as shown in Table 7 . However, in mountain communities, the local government and
other service providers serve a large population comprised of full time residents, part time
residents and second homeowners, and overnight visitors . A key metric in mountain
communities is therefore the number or percentage of housing units that are classified
as “vacant” . Vacant housing units as defined in Census and other demographic data
include a range of housing units that are not lived in by full time residents . In this report,
some revenues and other data are evaluated on a per housing unit basis as the number
of housing units is a proxy for the size of the total service population (full and part time
residents and guests) .
Approximately 34 .9 percent of housing units were classified as vacant in Avon, the fourth-
lowest of the peer municipalities . Only Basalt and Eagle have a lower percentage of
second homes, conversely representing that they have a higher percentage of full-time
residents . In the Town of Winter Park, approximately 80 .7 percent of housing units were
classified as vacant, the highest among the peer municipalities .
2. Peer Municipality Comparison
Economic & Planning Systems, Inc . 11
Table 7. Demographics, Peer Communities, 2021
Description
Housing Units
Population Owner Renter
Vacant/
2nd Homes Total
Avon 6,072 33.3%31.8%34.9%100.0%
Basalt 4,416 58.5%25.7%15.9%100.0%
Breckenridge 4,808 13.5%14.2%72.3%100.0%
Frisco 2,848 25.7%15.6%58.7%100.0%
Eagle 7,016 66.3%25.2%8.4%100.0%
Silverthorne 4,134 43.4%26.2%30.4%100.0%
Snowmass 2,916 30.2%25.2%44.7%100.0%
Steamboat 13,387 31.6%21.6%46.8%100.0%
Telluride 2,503 21.2%33.9%45.0%100.0%
Vail 5,835 19.6%16.6%63.8%100.0%
Winter Park 1,121 9.6%9.7%80.7%100.0%
Source: Economic & Planning Systems
Municipal Services
People living in municipalities benefit from a more complete suite of services from
the City or Town . This level of service can be higher in the City or Town than in an
unincorporated area even when the unincorporated area is served by special taxing
districts . Common municipal services for most the peer municipalities include
police, parks and recreation, recreational facilities, and public works, as shown in Table 8 .
Steamboat Springs and Vail are the only municipalities with their own Fire Departments,
while Avon is served by the Eagle River Fire Protection District . Six of the municipalities
operate their own transit system, including Avon, while Eagle, Frisco, Silverthorne,
Steamboat, and Winter Park rely on regionally funded transportation .
Table 8. Services Provided, Peer Communities
Description Fire/EMS Police
Parks &
Rec
Rec.
Facilities
Public
Transit
Public
Works
Avon ✔✔✔✔✔
Basalt ✔✔✔✔✔
Breckenridge ✔✔✔✔✔
Eagle ✔✔✔ ✔
Frisco ✔✔✔ ✔
Silverthorne ✔✔✔ ✔
Snowmass ✔✔✔✔✔
Steamboat ✔✔✔✔ ✔
Telluride ✔✔✔✔✔
Vail ✔✔✔✔✔✔
Winter Park ✔✔✔ ✔
Source: Economic & Planning Systems
12 Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
Staffing
In 2021 Avon had nearly 100 full-time
employees, the fifth-highest of the
peer municipalities, as shown in Table
9 . Municipal staffing levels typically
directly relate to the size of the
community, however, to normalize
for the size of the local and guest
populations, the number of employees
per housing unit were calculated .
Silverthorne had approximately 46 .63
full-time employees per thousand
housing units, the highest of the
peer municipalities, while Avon
had 26 .06 full-time employees per
housing unit, ranking eighth out of
the 10 peer municipalities .
Description
FT
Employees
Per Thousand
Housing Units
Per Housing
Unit Rank
1=Highest
Silverthorne 105.00 46.63 1
Vail 336.00 42.29 2
Telluride 84.00 39.40 3
Frisco 98.00 38.28 4
Breckenridge 253.00 33.52 5
Snowmass 75.00 30.34 6
Steamboat 300.78 27.49 7
Avon 99.75 26.06 8
Basalt 36.00 16.27 9
Eagle 50.00 14.80 10
Source: Economic & Planning Systems
Table 9. Full-Time Employees
General Fund Revenues
This section provides a summary of revenues for the Town of Avon and the peer
municipalities including total revenues and revenues by source .
Revenues
As of 2021, the Town of Avon’s general fund revenue was $21 .3 million, making it the
fourth-largest in general fund revenue of the peer municipalities, as shown in Figure
3 . When normalized per housing unit, Avon has similar funding levels as Silverthorne,
Telluride, Frisco, and Vail . Avon’s per housing unit general fund revenue of $5,573 was the
third-highest of the peer municipalities, as shown in Figure 4 . Snowmass Village’s general
fund revenue per housing unit of $7,627 was the highest of the peer municipalities .
Figure 3. General Fund Revenue, 2021
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
Vail Steamboat Brekenridge Avon Snowmass Frisco Silverthorne Telluride Eagle Winter Park Basalt
Total General Fund, 2021
Chart Title
Source: Economic & Planning Systems
Z:\Shared\Projects\DEN\213079 Avon Revenue and Economic Study\Data\213079-Peer Community Budget.xlsx Economic & Planning Systems, Inc . 13
Figure 4. General Fund Revenue per Housing Unit, 2021
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
Snowmass Silverthorne Avon Telluride Frisco Vail Basalt Steamboat Winter Park Breckenridge Eagle
General Fund Revenue
per Housing Unit, 2021
Chart Title
Source: Economic & Planning Systems
Z:\Shared\Projects\DEN\213079 Avon Revenue and Economic Study\Data\213079-Peer Community Budget.xlsxMunicipalities with a heavy reliance on just one or two revenue sources can be more
susceptible to economic and market downturns . As sales tax revenues are generally
more volatile, municipalities with a lower reliance on sales tax revenue and more diverse
revenue sources could be more resilient in economic downturns . Among all peer
municipalities, sales and use tax and property tax were the largest revenue sources, as
shown in Figure 5 and Table 10 .
Figure 5. Major General Fund Revenue Source, 2021
76.0%
58.4%
67.7%
52.2%56.9%
65.4%63.3%61.7%
53.1%
39.3%
29.8%
4.0%
13.6%3.5%
14.5%9.6%1.4%
6.6%
16.0%
4.7%
19.9%28.0%28.9%33.2%33.5%34.6%35.3%38.3%40.3%44.8%65.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Eagle Basalt Winter Park Vail Avon Steamboat Frisco Silverthorne Telluride Breckenridge Snowmass
% of General Fund
Revenue, 2021
Chart Title
Sales Tax Property Tax All Other
Source: Economic & Planning Systems
Z:\Shared\Projects\DEN\213079 Avon Revenue and Economic Study\Data\213079-Peer Community Budget.xlsx
Average Peer
Community Sales Tax
Percent of General Fund:
56.7%
Breckenridge and Snowmass Village were the only two municipalities with less than
50 percent of their general fund revenues generated from sales tax . An average of
56 .7 percent of general fund revenues were generated from sales tax among the peer
municipalities . Four of the municipalities (Vail, Telluride, Breckenridge, and Snowmass)
were below that average .
In Breckenridge, sales tax accounts for 39 .3 percent of revenue due to high revenues
from property tax and recreation facility fees (user fees) . In Snowmass Village, sales tax
accounts for just 29 .8 percent of revenue, as the Village receives a large amount of revenue
from service fees . In Avon, sales tax accounted for $12 .1 million, or 56 .9 percent of general
fund revenue, and property taxes accounted for $2 .0 million, or 9 .6 percent, with the
two accounting for 66 .5 percent of general fund revenue, the fifth-highest of the peer
communities .
14 Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
Property tax revenue, which is generally more stable than sales tax collections, ranged from 1 .4 percent to 16 .0 percent of general fund revenues
among the peer communities . In Avon, 9 .6 percent of general fund revenues were generated from sales tax, the fourth-highest of the peer
municipalities . This still shows however the Town’s reliance on sales tax which is over half of its General Fund revenue .
Table 10. General Fund Revenue Summary, Peer Communities, 2021
Eagle County Summit County Pitkin County San Miguel County Routt County Grand County
Revenue Avon Vail Eagle
Brecken-
ridge Frisco
Silver-
thorne
Snowmass
Village Basalt Telluride
Steamboat
Springs Winter Park
2021 Revenues
Sales & Use Tax $12,139,470 $21,500,000 $6,658,000 $8,609,623 $8,900,000 $8,011,359 $5,623,751 $4,857,702 $6,293,540 $24,717,940 $5,871,697
Property Tax 2,047,905 5,975,000 353,142 3,500,910 193 , 011 0 881,050 1,133,172 783,145 0 300,407
Lodging Tax 2,017,544 0 0 0 0 0 0 0 0 0 0
RETT 0 0 0 0 0 779,240 0 0 0 0 1,513,430
Intergovernmental 1,169,778 2,324,872 574,045 1,099,573 206,000 100,000 1,041,254 276,859 538,247 2,681,645 45,500
All Other 3,952,148 11,350,340 1,170,040 8,721,165 4,750,600 4,096,728 11,308,074 2,047,431 4,231,909 10,423,811 946,180
Total $21,326,845 $41,150,212 $8,755,227 $21,931,271 $14,049,611 $12,987,327 $18,854,129 $8,315,164 $11,846,841 $37,823,396 $8,677,214
$21.3M $41.2M $8.8M $21.9M $14.0M $13.0M $18.9M $8.3M $11.8M $37.8M $8.7M
Percent
Sales & Use Tax 56.9%52.2%76.0%39.3%63.3%61.7%29.8%58.4%53.1%65.4%67.7%
Property Tax 9.6%14.5%4.0%16.0%1.4%0.0%4.7%13.6%6.6%0.0%3.5%
Lodging Tax 9.5%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
RETT 0.0%0.0%0.0%0.0%0.0%6.0%0.0%0.0%0.0%0.0%17.4%
Intergovernmental 5.5%5.6%6.6%5.0%1.5%0.8%5.5%3.3%4.5%7.1%0.5%
All Other 18.5%27.6%13.4%39.8%33.8%31.5%60.0%24.6%35.7%27.6%10.9%
Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%
Housing Units 3,827 7,946 3,378 7,548 2,560 2,252 2,472 2,213 2,132 10,943 2,813
2021 Per Housing Unit
Sales & Use Tax $3,172 $2,706 $1,971 $1,141 $3,477 $3,557 $2,275 $2,195 $2,952 $2,259 $2,087
Property Tax 535 752 105 464 75 0 356 512 367 0 107
Lodging Tax 527 0 0 0 0 0 0 0 0 0 0
RETT 0 0 0 0 0 346 0 0 0 0 538
Intergovernmental 306 293 170 146 80 44 421 125 252 245 16
All Other 1,033 1,428 346 1,155 1,856 1,819 4,574 925 1,985 953 336
Total $5,573 $5,179 $2,592 $2,906 $5,488 $5,767 $7,627 $3,757 $5,557 $3,456 $3,085
Source: Economic & Planning Systems
Economic & Planning Systems, Inc . 15
Sales and Use Tax Rates
As noted in the previous sections, sales and use tax represents the largest revenue source
for most municipalities . As sales tax rates directly affect the amount of general fund
revenue raised, and the amount that guests or locals pay for goods and services, local
governments may be influenced to maintain competitiveness and keep rates similar to
nearby communities . The Town of Avon has a total sales tax rate of 8 .4 percent, which is
comparable to the other Eagle County municipalities, as shown in Figure 6 and Appendix
Table A1 . Winter Park and Snowmass Village have the highest combined sales tax rates,
with rates of 11 .2 percent and 10 .4 percent, respectively .
Figure 6. Sales Tax Rates, 2021
7.00%
3.90%4.50%
2.50%
4.75%
4.00%4.00%4.50%
2.00%2.00%
3.00%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%
2.90%2.90%2.90%
2.90%2.90%
2.90%
1.30%
3.60%
1.00%
1.00%
2.00%
1.00%
1.00%1.00%1.00%
2.00%2.00%1.50%
4.75%
0.50%0.50%1.48%0.50%0.50%1.48%1.48%
11.20%
10.40%
9.15%8.90%8.88%8.65%8.40%8.40%8.40%8.38%8.38%
7.40%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
Winter Park Snowmass Village (at
Avon)
Eagle Breckenridge Telluride Avon Vail Steamboat Frisco Silverthorne Basalt
Sales Tax, 2021
Chart Title
Town/City State County Retail Fee & PIF All Other
Source: Economic & Planning Systems
Z:\Shared\Projects\DEN\213079 Avon Revenue and Economic Study\Data\213079-Peer Tax.xlsx
16 Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
Property Tax Rates
The total property tax mill levy in Avon is 62 .617 . This is similar to Edwards (59 .002), Berry
Creek (64 .049), and Arrowhead (68 .161) as shown in Figure 7 and Appendix Table A2 . It is
about 10 mills lower than Eagle-Vail and Beaver Creek; 29 mills lower than Eagle Ranch;
and more than 50 mills lower than Red Sky Ranch and Cordillera . The total mill levy in Vail
is about 10 mills less than Avon, but property values are considerably higher .
The Summit County municipalities are all at approximately 57 .000 mills . Within Eagle
County, Vail has the lowest mill levy . For a home price of $700,000, a homeowner in Avon
would pay approximately $3,134 annually in property tax, while a homeowner living in
Vail, with the lowest mill levy of the peer municipalities, would pay approximately $2,574
annually on the same value home . Vail is able to have lower property taxes however
because it receives almost twice as much sales tax as Avon .
Figure 7. Property Mill Levies, 2021
8.956 10.391
2.301 5.070 7.346 0.798 3.248 4.736 5.991
24.649 22.779
24.649 25.046 18.835
22.779
18.835 18.835 17.246
24.649
13.323
8.499 7.534
8.499
16.991 19.530
7.534 19.530 19.530
11.903
8.499
11.830
20.513 20.651 25.202 17.656 13.670 19.442 17.659 17.659 20.786 13.550
13.091
62.617 61.355 60.651 59.693 57.105 57.101 56.822 56.024 53.183 51.434
44.235
0.000
10.000
20.000
30.000
40.000
50.000
60.000
70.000
Avon Basalt Eagle Steamboat Breckenridge Snowmass Frisco Silverthorne Winter Park Vail Telluride
Property Mill Levies, 2021
Chart Title
Town/City School County All Other
Source: Economic & Planning Systems
Z:\Shared\Projects\DEN\213079 Avon Revenue and Economic Study\Data\213079-Peer Tax.xlsx
It is important to note that these property tax levies reflect the municipality’s general
mill levy and exclude metro districts, which are further evaluated in Chapter Four . In
the municipalities surveyed, Town or City levies are typically the smallest portion of the
total mill levy, with most variation derived from school and county levies . For example,
the Eagle County School District mill levy is 5 .814 mills higher than in Summit County,
and Town and City mill levies across the municipalities range from 0 .798 in Snowmass
Village to 10 .391 mills in Basalt . Steamboat does not have a general operating mill levy as
it eliminated its property tax in the 1980s to shift the tax burden to visitors and away from
businesses and residents .
Economic & Planning Systems, Inc . 17
Other Revenue Sources
Apart from property and sales tax revenues, the peer municipalities also collect several
other revenues . These include lodging taxes, recreational marijuana taxes, RETT, lift
ticket taxes, and tobacco and nicotine taxes, as shown in Table 11 . All municipalities
surveyed include a lodging tax, and almost all have a tobacco or nicotine tax . Four of the
municipalities have a local recreational marijuana tax in addition to the town/city sales tax .
There is no retail marijuana in Avon or Vail, although there are retail dispensaries in Eagle-
Vail in unincorporated Eagle County . Just four of the municipalities do not have a RETT or
Real Estate Transfer Assessment (RETA), which is further evaluated in Chapter Four .
Table 11. Additional Revenue Sources, Peer Communities
Description Lodging Tax
Recreational
Marijuana
Tax RETT
Lift Ticket
Tax
Tobacoo/
Nicotine
Tax
Avon ✔ ✔ ✔
Basalt ✔ ✔
Breckenridge ✔✔✔✔✔
Eagle ✔ ✔
Frisco ✔✔✔ ✔
Silverthorne ✔✔ ✔
Snowmass Village ✔✔✔ ✔
Steamboat Springs ✔ ✔
Telluride ✔ ✔
Vail ✔ ✔✔✔
Winter Park ✔ ✔ ✔
Source: Economic & Planning Systems
18 Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
This chapter compares sales and
lodging tax rates in Avon to the
mountain resort host comparison
communities . For this analysis, an
expanded set of ski resort communities
is used, including:
X Aspen
X Beaver Creek
X Breckenridge
X Copper Mountain
X Frisco
X Keystone
X Snowmass Village
X Steamboat Springs
X Telluride
X Mountain Village
X Vail
X Winter Park
Sales Tax
Sales tax rates are generally similar across the mountain resort host communities,
as shown in Figure 8 and Appendix Table A3 . To better account for all of the costs
to consumers associated with all potential sales fees, EPS included additional sales
and resort fees in this comparison, such as Public Improvement Fees (PIF) and civic
assessment fees .
Avon charges a 4 .0 percent sales tax (General Fund) on retail purchases including food
for home consumption (groceries) . When combined with the State, county, and county
transit taxes, the total sales tax rate is 8 .4 percent . An additional 0 .750 percent PIF is
applied to sales at the Village at Avon . In the rest of the Town where the PIF does not
apply, Avon’s total sales tax is similar to other mountain communities, the same as Vail,
and just slightly higher than Aspen and Breckenridge .
3. Mountain Resort Host Community Comparisons
Economic & Planning Systems, Inc . 19
Winter Park, Snowmass Village, Beaver Creek, and Aspen have higher total sales tax
rates than Avon . Winter Park has the highest total sales tax rate, at 11 .2 percent, which
is driven by its 7 .0 percent town sales tax, the highest of the mountain resort and host
communities . While Beaver Creek has a low base sales tax, it has a Civic Assessment fee
of 5 .35 percent which is charged on total sales, bringing its total sales tax rate to 10 .250
percent . Keystone and Copper Mountain are in unincorporated Summit County and
therefore do not have a municipal sales tax, allowing them to have the lowest total sales
tax rates .
Figure 8. Sales Tax Rate, 2021
11.200%
10.400%
4.400%
9.300%
4.400%
8.875%8.650%8.650%8.400%8.400%8.400%8.375%
6.375%6.375%
5.350%
4.750%
0.500%
11.200%
10.400%
9.750%9.300%9.150%8.875%8.650%8.650%8.400%8.400%8.400%8.375%
6.875%6.375%
0.000%
3.000%
6.000%
9.000%
12.000%
Winter Park Snowmass
Village
Beaver Creek Aspen Village (at
Avon)
Breckenridge Mountain
Village
Telluride Avon Vail Steamboat
Springs
Frisco Keystone Copper
Mountain
Sales Tax Rate, 2021
Chart Title
Sales Tax Retail Sales Fee/PIF Total
Source: Economic & Planning Systems
Z:\Shared\Projects\DEN\213079 Avon Revenue and Economic Study\Data\213079-Peer Tax.xlsx
In 2020, the Town of Avon collected approximately $9 .0 million in sales tax, up 8 .0
percent from 2018, the third-highest growth rate among the peer communities, as
shown in Table 12 . The 2021 Colorado Mountain Migration Report (Northwest Colorado
Council of Governments and Colorado Association of Ski Towns) reported an outflow of
residents coming from cities to high quality-of-life places, especially Colorado’s mountain
communities . This helped generate better than expected sales tax revenues despite
COVID-19 restrictions . In addition, the Wayfair State Supreme Court decision, which
allowed Colorado communities to collect online tax collections, further helped mountain
resort communities maintain sales tax collections during the pandemic .
Table 12. Sales Tax Collections, 2018-2020
Description
2018-2020
2018 2019 2020 % Change Ann. %
Avon $8,427,334 $9,020,664 $9,099,246 8.0%3.9%
Aspen $15,909,760 $17,200,101 $16,063,631 1.0%0.5%
Breckenridge $15,306,755 $16,548,676 $15,358,273 0.3%0.2%
Frisco $9,618,813 $10,236,448 $10,497,912 9.1%4.5%
Mountain Village $4,443,492 $5,037,531 $4,715,191 6.1%3.0%
Snowmass Village $2,125,123 $2,418,450 $2,133,137 0.4%0.2%
Steamboat Springs $25,915,144 $28,079,412 $27,693,978 6.9%3.4%
Telluride $ 7,111,934 $8,000,872 $7,708,983 8.4%4.1%
Vail $27,886,112 $29,405,828 $24,973,411 -10.4%-5.4%
Winter Park $8,818,827 $9,680,453 $8,534,056 -3.2%-1.6%
Source: Economic & Planning Systems
20 Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
Lodging and Ski Lift Tax
Most of the peer ski resort communities have a lodging tax, while just three have a short-
term rental tax, and two resort communities have a ski lift tax, as shown in Table 13 .
Vail and Breckenridge have
established a ski lift tax of
4 .0 percent and 4 .5 percent,
respectively . In Vail, this revenue
is deposited into its General Fund .
The Town of Vail received about
$5 .3 million in revenue from its ski
lift tax in 2020 . In Breckenridge,
the tax is utilized for transportation
services and infrastructure . The
tax was approved by voters of
Breckenridge in November of 2015
and took effect in July of 2016 .
Breckenridge estimates about $3 .5
million in annual revenue from the
lift tax, and Vail Resorts agreed to a
revenue guarantee in this amount .
Most peer communities charge a lodging tax on short-term accommodations ranging
from 0 .96 percent in Beaver Creek to 4 .0 percent in Mountain Village and Avon, as shown
in Figure 9 and Appendix Table A4 . In addition, a few peer communities had dedicated
taxes on short-term accommodations, including Avon (2 .0 percent), Frisco (5 .0 percent),
and Telluride (2 .5 percent) . Avon had the highest combined sales and lodging tax, as
shown in Figure 10, driven by its above-average sales tax and highest lodging tax of the
peer municipalities .
Figure 9. Lodging Tax Rate, 2021
4.000%4.000%
3.400%
3.000%
2.400%2.350%
2.000%2.000%
1.400%
1.000%0.960%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
Avon Mountain
Village
Breckenridge Steamboat
Springs
Snowmass
Village
Frisco Aspen Telluride Vail Winter Park Beaver Creek
Lodging Tax Rate, 2021
Chart Title
Source: Economic & Planning Systems
Z:\Shared\Projects\DEN\213079 Avon Revenue and Economic Study\Data\213079-Peer Tax.xlsx
Table 13. Lodging, STR, and Ski Tax, Comparison Cities
Description
Lodging
Tax STR Tax
Ski Lift
Tax
Avon ✔✔
Aspen ✔
Breckenridge ✔ 4.5%
Copper Mountain
Frisco ✔✔
Keystone
Mountain Village ✔
Snowmass Village ✔
Steamboat Springs ✔
Telluride ✔✔
Vail ✔ 4.0%
Winter Park ✔
Source: Economic & Planning Systems
Economic & Planning Systems, Inc . 21
Figure 10. Combined Sales, Lodging, and STR Tax Rate, 2021
8.375%9.150%8.400%8.650%
10.400%
8.650%8.875%
11.200%
9.300%9.750%
8.400%8.400%
6.875%6.375%
2.350%
4.000%4.000%2.000%
2.400%
4.000%3.400%
1.000%
2.000%0.960%
1.400%1.000%
5.000%2.000%2.000%
2.500%
15.725%15.150%14.400%
13.150%12.800%12.650%12.275%12.200%11.300%10.710%9.800%9.400%
6.875%6.375%
0.000%
2.000%
4.000%
6.000%
8.000%
10.000%
12.000%
14.000%
16.000%
18.000%
Frisco Village (at
Avon)
Avon Telluride Snowmass
Village
Mountain
Village
Breckenridge Winter Park Aspen Beaver Creek Vail Steamboat
Springs
Keystone Copper
Mountain
Tax Rate
Chart Title
Sales Tax/Retail Sales Fee (Inclusive of PIF & Civic Assessment Fees)Lodging Tax STR
Source: Economic & Planning Systems
Z:\Shared\Projects\DEN\213079-Avon Revenue and Economic Study\Data\213079-Peer Tax.xlsx
22 Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
This chapter compares property tax rates with particular focus on large Title 32
Metropolitan Districts (Metro Districts) . In addition, Real Estate Transfer Taxes (RETT)
and Real Estate Transfer Assessments (RETA) are analyzed, and a cost of ownership
compared using the tax rates from each area .
Metro Districts
There is a substantial amount of residential development in unincorporated Eagle County
organized under homeowners’ associations (HOAs) and Metro Districts . Metro Districts are
an infrastructure financing and funding mechanism in which a property and/or sales tax
is levied on property within the district to fund construction and sometimes maintenance
of public improvements, usually roads, water and sewer . Metro districts are typically
formed by the land developer and governed by the developer for a period of time until
new board elections allow a broader representation of district residents to be elected .
The total mill levies in several large development areas in the Vail Valley are shown below in
Figures 11 and 12, and Appendix Table A5 and compared to Avon . Edwards (Homestead
Metro District) has the lowest total metro district mill levy at 59 .002 in 2021, as its debt
has been paid off and only the 1 .691 operating mill levy remains on top of the other taxing
districts . Other metro districts have mill levies for debt and operating ranging from about
12 .000 to over 60 .000 mills . Four of the metro districts have mill levies over 100 .000 mills,
including Avon Station Metro District with the highest mill levy of 128 .125 .
Figure 11. Vail Valley Metro District Mill Levies
4. Property Tax and Real Estate Cost
of Ownership
Economic & Planning Systems, Inc . 23
Figure 12. Vail Valley Metro District Mill Levies
Real Estate Transfer Tax
As noted in the Introduction, the property tax and RETT/RETA comparison communities
were chosen on the criterion that they have a real estate transfer tax . Many mountain and
resort communities in Colorado have a RETT that generally range from 1 .0 to 2 .0 of the
transaction price . It is customary for the buyer and seller to split the cost of transfer fees in a
sale . Communities often earmark RETT revenue for capital projects funding and affordable/
workforce housing although some use it for general operations and maintenance .
Each peer community has a 1 .0 percent RETT on all
property sales or transfers with monetary compensation .
Avon has a higher RETT at 2 .0 percent . Avon’s 2 .0
percent RETT is the primary source of funding for capital
improvement projects and is deposited into the Capital
Projects Fund . The RETT is a volatile revenue source as
it varies with the strength of the real estate market, new
real estate development, and major property acquisitions .
When TABOR passed in 1992 it prohibited new or
increased RETTs from being enacted in Colorado but
allowed existing RETTs to continue . Under TABOR, the
Town could raise or eliminate the locals’ exemption
because it would effectively be a tax decrease, but the
Town cannot lower or eliminate the local’s exemption
because that could be interpreted as an increase
to the RETT, which is prohibited by TABOR . A list of
other Colorado municipalities with existing RETTs and
corresponding rates are tracked, as shown in Table 14 .
Silverthorne is the only mountain peer community that
does not have a RETT, although it pursues RETAs or
“transfer fees” on some new development . Many large
HOAs in the area also have RETAs including Eagle Ranch
(1 .0 percent), Arrowhead (1 .5 percent), and the Beaver Creek Resort Company (2 .375 percent) .
Community
RETA
Rate
RETT
Rate
Avon N/A 2.0%
Arrowhead 1.5%N/A
Aspen [1]N/A 1.5%
Beaver 2.4%N/A
Breckenridge N/A 1.0%
Crested Butte N/A 3.0%
Eagle Ranch 1.0%N/A
Frisco N/A 1.0%
Gypsum N/A 1.0%
Minturn N/A 1.0%
Ophir N/A 4.0%
Silverthorne 1.0%N/A
Snowmass Village N/A 1.0%
Telluride N/A 3.0%
Vail N/A 1.0%
Winter Park N/A 1.0%
[1] Combined RETT rates of 0.5% and 1.0%
Source: Economic & Planning Systems
Table 14. RETT and RETA Rates in Colorado
128.125
115.552 113.833
91.651
71.893 71.877 68.161 64.049 62.617 59.002
0.000
20.000
40.000
60.000
80.000
100.000
120.000
140.000
Avon
Station
Red Sky
Ranch
Cordillera Eagle Ranch Beaver
Creek
Eagle-Vail Arrowhead Berry Creek Avon Edwards
Mill Levy
Chart Title
Source: Economic & Planning Systems
Z:\Shared\Projects\DEN\213079 Avon Revenue and Economic Study\Models\213079-Cost of Ownership & RETT.xlsx
24 Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
In 2020, Vail had $8 .6 million in RETT revenue, while Avon collected $5 .9 million in revenue,
as shown in Table 15 . In 2021, Avon’s Capital Improvement Fund revenues from RETT were
conservatively projected at $2 .5 million, although are likely to be higher as a majority of
RETT revenues are dedicated to the Capital Improvement Fund .
Table 15. RETT Revenues
Eagle County Summit County
Description Avon Vail Breckenridge Frisco Silverthorne
2019 $5,001,145 $7,224,668 $7,166,614 $1,542,417 $1,019,127
2020 $5,998,950 $8,650,000 $5,700,000 $1,400,000 $920,000
Source: Economic & Planning Systems
RETT revenue is most commonly utilized to fund capital improvement projects .
Avon, Breckenridge, and Frisco use the RETT as their key funding source for capital
improvements . Vail dedicates its RETT to recreation, parks and open space, and
sustainable environmental practices . Gypsum uses its RETT in the General Fund .
Cost of Ownership Analysis
EPS estimated the cost of real estate ownership over a seven-year period for the
comparable areas, as shown in Figure 13 and Table 16 . Property taxes were derived
from applying the respective mill levies to the assessed value of $700,000, which is the
approximate median home price in Eagle County . The projected annual property tax
was then multiplied over a seven-year period, an average holding period for a home . To
estimate the real estate transfer fees at the point of sale in year seven, RETT and RETA
rates were then applied to an average sale price of $700,000, with 50 percent of that
amount estimated to be paid by the owner/seller .
Figure 13. Seven Year Cost of Ownership Analysis
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
Red Sky
Ranch
Metro
District
Cordillera
Metro
District
Cotton
Ranch
Metro
District
Eagle
Ranch
Metro
District
Town of
Avon
Minturn Gypsum Beaver
Creek
Metro
District
Eagle-Vail Arrowhead
Metro
District
Berry Creek
Metro
District
Vail Town of
Eagle
Edwards
Metro
District
Estimated Cost of
Ownership
Chart Title
Source: Economic & Planning Systems
Z:\Shared\Projects\DEN\213079 Avon Revenue and Economic Study\Data\213079-Peer Community Budget.xlsx Economic & Planning Systems, Inc . 25
The total ownership cost including property taxes and the RETT ranged from $20,000 to
$55,000 for homes located in municipalities and metro districts across the Vail Valley and
Eagle County .
A typical household in the Red Sky Ranch Metro is estimated to pay $40,484 in total fees,
the highest of the peer communities . A homeowner in Avon would pay a total of $28,938
which is less than in Red Sky Ranch, Cordillera, Cotton Ranch, and Eagle Ranch .
Table 16. Seven Year Cost of Ownership Analysis
Description
Factor
Annual
Property
Tax
7-Year
Property
Tax
RETT Rate
Total
RETT
50% RETT
Paid by
Seller
Total
Ownership
Cost
Rank
1=Highest
Eagle County Median Home Price $700,000 $700,000
Assessed Value 7.15%$50,050
Mill Levy
Red Sky Ranch Metro District 115.552 $5,783 $40,484 N/A N/A N/A $40,484 1
Cordillera Metro District 113.833 $5,697 $39,881 N/A N/A N/A $39,881 2
Cotton Ranch Metro District 100.348 $5,022 $35,157 1.0%$7,000 $3,500 $38,657 3
Eagle Ranch Metro District 91.651 $4,587 $32,110 N/A N/A N/A $32,110 4
Beaver Creek Metro District 71.893 $3,598 $25,188 N/A N/A N/A $25,188 8
Minturn 71.880 $3,598 $25,183 1.0%$7,000 $3,500 $28,683 6
Eagle-Vail 71.877 $3,597 $25,182 N/A N/A N/A $25,182 9
Arrowhead Metro District 68.161 $3,411 $23,880 N/A N/A N/A $23,880 10
Berry Creek Metro District 64.049 $3,206 $22,439 N/A N/A N/A $22,439 11
Gypsum 63.003 $3,153 $22,073 1.0%$7,000 $3,500 $25,573 7
Town of Avon 62.617 $3,134 $21,938 2.0%$14,000 $7,000 $28,938 5
Town of Eagle 60.651 $3,036 $21,249 N/A N/A N/A $21,249 13
Edwards Metro District 59.002 $2,953 $20,671 N/A N/A N/A $20,671 14
Vail 51.434 $2,574 $18,020 1.0%$7,000 $3,500 $21,520 12
Source: Economic & Planning Systems
26 Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
National Property Tax Rates
To add further context into property taxes not only among Avon’s peer communities
but nationally, EPS collected property tax rankings from the Tax Foundation, as shown
in Figure 14 . Colorado had the 5th lowest property taxes in 2019, with just Wyoming,
Louisiana, Alabama, and Hawaii paying lower property taxes on average than Colorado .
New Jersey had the highest property taxes on average across the United States .
Figure 14. National Property Tax Comparison, 2019
Economic & Planning Systems, Inc . 27
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5. Inflow–Outflow Analysis
The analysis in this chapter
estimates the sources of retail
sales and sales tax in Avon . i .e ., how
much sales tax comes from full time
and part time residents (second
homeowners), visitors, and from the
surrounding region and pass through
inflow . This type of analysis is called an
inflow-outflow analysis . The outflow
component is retail sales leakage
(money spent outside the town) .
Taxable Sales
Town sales tax and taxable sales data
by major store type was compiled and
analyzed, shown in Table 17 . Several store
categories were combined to prevent
the disclosure of individual store sales to
comply with requirements on the privacy
of sales tax records . Total taxable retail
sales in the Town were approximately
$270 .4 million in 2021 .
Table 17. Taxable Sales, Town of Avon
Estimated Taxable
SalesStore Type
Convenience Goods $66,569,919
Shopper’s Goods $154,178,696
Eating and Drinking $49,663,930
Total $270,412,545
Source: Economic & Planning Systems
Expenditure Patterns
The first step in estimating retail
expenditures is developing an inventory
of housing and lodging . Full-time
residents in Avon are comprised of 2,490
households, with an average household
income of $104,554 . Second homeowners
are associated with approximately 941
housing units in the Town of Avon, as
shown in Table 18 . These pure second
homes (not in an overnight rental
program) were estimated by subtracting
the number of short term rentals from
the number of housing units defined
as vacant for seasonal, recreational, or
occasional by the Census .
Table 18. Housing Unit Summary
Description
Residential
Units
% of
Total
Full-Time 2,490 64.7%
Second Homeowner 941 24.5%
Second Home (not short term rental)415 10.8%
Total Units 3,846 100.0%
Source: Economic & Planning Systems
Economic & Planning Systems, Inc . 29
EPS estimated annual retail expenditures for full time residents and second homeowners
in the Town of Avon, shown in Table 19 . Retail expenditures are a function of population
and households, and household income within a determined trade area . The total
personal income (TPI) of a given area is determined by multiplying total households by
average household income .
Second homes are assumed to have an occupancy rate of 20 percent, or the equivalent
of 10 weeks per year . The total personal income (TPI) of full-time residents is calculated at
$260 .3 million, while second homeowners are estimated to have a TPI of $37 .6 million .
Statewide expenditure patterns show that an average of 36 .6 percent of TPI is spent on
the retail goods in (“brick and mortar” stores) included in the analysis:
X 13 .3 percent of TPI is spent on Convenience Goods . These are items purchased
frequently and close to home such as groceries; health and personal care items; and
beer wine and liquor .
X 16 .5 percent of TPI is spent on Shoppers goods . These includes larger purchases that
are comparison shopped and bought in department stores, warehouse clubs, and
supercenters, clothing stores, outdoor equipment stores, electronics and appliance
stores, and other specialty retailers .
X Spending on food and beverage is in restaurants and bars and is 6 .8 percent of TPI
comprise 6 .8 percent of TPI
X Total retail expenditures are estimated at $95 .2 million for full-time residents and $13 .7
million for second homeowners .
Table 19. Expenditure Potential, Full-Time Resident and Second Homeowner
Description
% of
Spending
Full Time
Resident
Second
Homeowner
% TPI (2017)($000s)($000s)
Average Household Income $104,554 $200,000
Households 2,490 941
Occupancy 100%20%
Total Personal Income (TPI)100%$260,339 $37,640
Store Type
Convenience Goods 13.3%$34,604 $5,003
Shopper’s Goods 16.5%$43,025 $6,221
Eating and Drinking 6.8%$17,592 $2,543
Total Retail Spending ($000s)36.6%$95,220 $13,767
[1] Second homeowner households exclude overnight rental programs
Source: 2017 Census of Retail Trade; Economic & Planning Systems
30 Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
Using the store sales and expenditure information, EPS estimated the percent of
spending that is “captured” in Avon for residents and part-time residents, as shown
in Table 20 and Table 21 . The store categories with the most local spending capture
are Shopper’s Goods and Convenience Goods, as these are items that are low cost and
frequently purchased items (e .g ., groceries, and health and personal care items) . In total,
residents are estimated to make approximately 60 percent of their retail store purchases
in Avon and 40 percent elsewhere .
Table 20. Retail Sales Capture, Resident
Store Type
% of Spending
% TPI (2017)
2021
($000s)
Local Capture Leakage
%
Res. Expen.
($000s)%
Res. Expen.
($000s)
Total Personal Income (TPI)100%$260,339
Convenience Goods 13.3%$34,604 90%$31,144 10%$3,460
Shoppers’ Goods 16.5%$43,025 33%$14,198 67%$28,826
Eating and Drinking 6.8%$17,592 75%$13,194 25%$4,398
Total Retail Goods 36.6%$95,220 61%$58,535 39%$36,685
Source: 2017 Census of Retail Trade; Economic & Planning Systems
Table 21. Retail Sales Capture, Part-Time Residents
Store Type
% of Spending
% TPI (2017)
2021
($000s)
Local Capture Leakage
%
Res. Expen.
($000s)%
Res. Expen.
($000s)
Total Personal Income (TPI)100%$37,640
Convenience Goods 13.3%$5,003 75%$3,752 25%$1,251
Shoppers’ Goods 16.5%$6,221 75%$4,665 25%$1,555
Eating and Drinking 6.8%$2,543 50%$1,272 50%$1,272
Total Retail Goods 36.6%$13,767 70%$9,689 30%$4,078
Source: 2017 Census of Retail Trade; Economic & Planning Systems
Visitor Expenditures
Visitor expenditures are estimated as dollar per day per person figures . First, total
overnight visitor days are estimated from the bed base and occupancy figures provided
by the Town of Avon . The winter season generates 60 percent of total visitation and 319,139
visitor days, as shown in Table 22 . Total overnight visitor days are estimated at 696,046 for
2021 .
Table 22. Visitor Days
Season
Accomm.
Units
Persons
per Unit
Days Total
Capacity
Occ. Rate Total
Days
Winter (Nov 15. - May 31)1,409 2.5 151 531,898 60%319,139
Summer and Shoulder 1,409 2.5 214 753,815 50%376,908
Total 365 1,285,713 55%696,046
Source: Economic & Planning Systems
Economic & Planning Systems, Inc . 31
Overnight visitors are estimated to spend approximately $110 per day per person year-
round, as shown in Table 23 . Overnight visitors spend the most on Eating and Drinking,
estimated at $40 per day per person .
Table 23. Visitor Spending
$ Per Day per Person Expenditures ($000s)
Store Type Winter Summer Winter Summer Total
Spending Days 319,139 376,908
Convenience Goods $35 $35 $ 11,170 $13,192 $24,362
Shoppers Goods $35 $35 $ 11,170 $13,192 $24,362
Eating and Drinking $40 $40 $12,766 $15,076 $27,842
Total Retail Goods ($000s)$ 110 $ 110 $35,105 $41,460 $76,565
Source: Economic & Planning Systems
Store Sales by Demand Segment
The sales from the four demand groups are compared to total store sales compiled
from Town sales tax records . Total sales come from residents, overnights visitors, second
homeowners, and inflow from outside the Town, summarized in Table 24 and Figure 15 .
X With store sales of $270 million, permanent residents account for approximately 22
percent of the sales, or $58 .5 million
X Overnight visitors account for an estimated 28 percent of store sales, or $76 .5 million
X Part time residents have a smaller impact on retail sales, accounting for an estimated 3
percent of total retail sales, or $9 .6 million per year .
X In total, it is estimated that 46 percent of retail sales, and therefore sales taxes in Avon
comes from regional inflow, or $125 .6 million in taxable sales annually .
X Approximately one out of every five dollars that the Town receives in sales tax comes
from Town residents .
Table 24. Store Sales by Demand Segment
Store Type
Avon Store
Sales
Sales to
Residents
Overnight
Visitors
Second
Homeowners
Regional
Inflow
($000s)($000s)($000s)($000s)($000s)
Sales
Convenience Goods $66,570 $31,144 $24,362 $3,752 $7,312
Shoppers’ Goods $154,179 $14,198 $24,362 $4,665 $110,954
Eating and Drinking $49,664 $13,194 $27,842 $1,272 $7,357
Total Retail Goods ($000s)$270,413 $58,535 $76,565 $9,689 $125,623
% of Total Store Sales
Convenience Goods 100.0%46.8%36.6%5.6%11.0%
Shoppers’ Goods 100.0%9.2%15.8%3.0%72.0%
Eating and Drinking 100.0%26.6%56.1%2.6%14.8%
Total Retail Goods ($000s)100.0%21.6%28.3%3.6%46.5%
Source: Economic & Planning Systems
32 Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
Figure 15. Store Sales by Demand Segment
46.5%
28.3%
21.6%
3.6%
0%5%10%15%20%25%30%35%40%45%50%
Regional Inflow
Overnight Visitors
Residents
Second Homeowners
Estimated % of Store Sales
Chart Title
Source: Economic & Planning Systems
[link to source]
Economic & Planning Systems, Inc . 33
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6. Revenue Outlook
This chapter evaluates the estimated revenue generated of upcoming planned
development in the Town of Avon . Annual property, sales, and lodging taxes are
estimated and compared to historical general fund revenues .
Planned Development
Several development projects are expected to be built in the next five years in the Town,
as shown in Table 25 . Planned projects include a 4,425 square foot Maverik gas station, a
243 room hotel, and several condominium and townhome projects . Each new project will
generate new property tax revenue . The Village at Avon hotel will generate new lodging
tax and sales tax revenues . In addition, the 4,425 square foot Maverik gas station will
generate sales tax revenue and the Riverfront and Frontgate projects are anticipated to
generate short-term rental revenue .
Table 25. Proposed Development, Town of Avon
Development Size Expected Tax Revenue
Avon Development Sq. Ft.Units Property Sales STR Lodging
Maverik Gas Station 4,425 ✔✔
Village at Avon Hotel 243 ✔✔ ✔
Riverfront Townhomes 13 ✔ ✔
Riverfront Condos 40 ✔ ✔
Frontgate Townhomes 9 ✔ ✔
Frontgate Condos 75 ✔ ✔
McGrady Acres Townhomes 24 ✔
Source: Town of Avon; Economic & Planning Systems
Economic & Planning Systems, Inc . 35
EPS estimated the market value of the projects as the first step in projecting property tax
revenues . The estimated value of the projects totaled nearly $290 .2 million, as shown in
Table 26 .
Table 26. Development Market Value Estimates
Market Value Per
Avon Development Sq. Ft.Units Sq. Ft.Unit Estimated Value
Maverik Gas Station 4,425 $325 $1,438,000
Village at Avon Hotel 243 $100,000 $24,300,000
Riverfront Townhomes 13 $2,000,000 $26,000,000
Riverfront Condos 40 $1,500,000 $60,000,000
Frontgate Townhomes 9 $2,000,000 $18,000,000
Frontgate Condos 75 $1,500,000 $112,500,000
McGrady Acres Townhomes 24 $2,000,000 $48,000,000
Total $290,238,000
Source: Town of Avon; Economic & Planning Systems
Estimated Tax Revenue
The tax generation potential of future development takes into account the revenues the
Town is eligible to receive . The Maverick Gas Station and Village at Avon Hotel are located
within the Village at Avon metro district . Within the Village at Avon, the Town does not
collect directly the 4 .0 percent lodging or sales taxes . The metro district collects, in their
place, a 4 .0 percent sales fee and a 0 .75 percent add on public improvement fee (PIF) . The
Town’s tax code however defines the sales fee and PIF revenues as taxable, so the Town
receives 4 .0 percent sales tax on the 4 .75 percent total sales fees
Property Tax
Based on the estimated market value of the developments, EPS applied the assessment
ratios and the Town General Fund mill levy to determine the estimated property tax
revenue . The planned developments are estimated to generate $231,484 in annual town
property tax revenue, as shown in Table 27 .
Table 27. Estimated Annual Property Tax Revenue
Maverik
Gas Station
Village at
Avon Hotel
Riverfront
Townhomes
Riverfront
Condos
Frontgate
Townhomes
Frontgate
Condos
McGrady
Townhomes
Total
Property Tax
RevenueDescriptionMills
Statutory Actual Value $1,438,000 $24,300,000 $26,000,000 $60,000,000 $18,000,000 $112,500,000 $48,000,000
Assessment Rate 29.00%29.00%6.95%6.95%6.95%6.95%6.95%
Assessed Value $417,020 $7,047,000 $1,807,000 $4,170,000 $1,251,000 $7,818,750 $3,336,000
Town Mill Levy 8.956 $3,735 $63,113 $16,183 $37,347 $11,204 $70,025 $29,877 $231,484
Source: Economic & Planning Systems
36 Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
Lodging Taxes and Fees
EPS also estimated the lodging and sales tax generated from the proposed Village at
Avon Hotel and expected STR units at the Riverfront and Frontgate projects . Hotels
pay lodging tax on room revenues, so an estimate of annual room sales was developed .
A stabilized occupancy rate of 65 percent was applied to estimate revenue, based on
historical occupancy trends resulting in $11 .5 million in lodging sales . Similarly, the
townhomes and condominiums rented as short term rentals generate between $129,000
and $1 .1 million in lodging sales depending on the size of the development . Using Town’s
lodging tax rate of 4 .0 percent, the Village at Avon retail sales fee of 4 .0 percent and 0 .75
percent add-on PIF, the fees and taxes are as follows and shown in Table 28:
X Village at Avon Metro District – The metro district receives $548,000 in lodging sales
fees.
X Town of Avon – The Town receives $22,000 in sales tax on the Hotel sales fees and
add-on PIF (4.0% sales tax on the 4.75% fees). The Town also receives sales, lodging,
and STR taxes from the condominiums and townhomes ranging from $13,000 to
$108,000.
Table 28. Estimated Hotel and STR Sales and Lodging Tax Revenue
Village at STR Riverfront STR Frontgate
Description Avon Hotel Townhomes Condos Townhomes Condos
Room Revenue Assumptions
Number of Rooms 243 13 40 9 75
% in overnight rentals 100%25%25%25%25%
Occupancy 65%45%45%45%45%
Average Nightly Room Rate $200 $350 $350 $350 $350
Room Revenue $11,530,350 $186,834 $574,875 $129,347 $1,077,891
Village at Avon Revenues
Village at Avon Lodging Sales Fee at 4.00%$461,214 N/A N/A N/A N/A
Village at Avon Add-On PIF at 0.75%$86,478 N/A N/A N/A N/A
Total $547,692 $0 $0 $0 $0
Town of Avon Revenues
Short-Term Rental Tax at 2.00%N/A $3,737 $11,498 $2,587 $21,558
Avon Lodging Tax at 4.00%N/A $7,473 $22,995 $5,174 $43,116
Avon Sales Tax at 4.00%N/A $7,473 $22,995 $5,174 $43,116
Town Tax on Village at Avon (4.00% on 4.75%)$21,908 N/A N/A N/A N/A
Total $21,908 $18,683 $57,488 $12,935 $107,789
Source: Economic & Planning Systems
Sales Tax
The gas station is expected to have an annual revenue of $1 .3 million, based on estimated
sales of a $300 sales per square foot value . After applying the Town’s sales tax rate of 4 .0
percent on the 4 .75 percent Retail Sales Fee and PIF, the Maverik Gas Station is expected
to generate $63,056 in annual sales tax to the Village at Avon and approximately $2,500 in
revenue for the Town, as shown in Table 29 .
Economic & Planning Systems, Inc . 37
Table 29. Estimated Gas Station Sales Tax Revenue
Description Sq. Ft.
Sales per
Sq. Ft.
Estimated
Sales
Metro Dist. Revenue Avon Revenue
Fee & PIF (4.75%)(4% on Fee & PIF)
Maverik Gas Station 4,425 $300 $1,327,500 $63,056 $2,522
Source: Economic & Planning Systems
Total Town Revenues
The proposed projects are estimated to generate approximately $374,050 in annual Town
revenue, as shown in Table 30 . The Village at Avon Hotel is expected to generate the
largest revenue to the Town, estimated at approximately $85,021 annually . In total, these
projects could result in a 1 .8 percent increase over the 2021 general fund revenue .
The Village at Avon Hotel accounts for approximately 23 percent of these estimated Town
revenues highlighting the importance of non-residential development that generates
sales and/or lodging tax . Nonresidential development also generates more property tax as
property tax on nonresidential property is paid on 29 percent of market value compared
to 6 .95 percent of value for residential property .
Table 30. Total Annual Estimated Tax Revenue, Town of Avon
From Retail Sales From Lodging Sales Totals
Location and Project
Town
Prop. Tax
Retail
Sales Fee PIF
Town
Sales Tax
Lodging
Tax/Fee STR Tax
All Taxes
and Fees Town Only
8.956 mills 4.00%0.75%4.00%4.00%2.00%
Village at Avon [1]
Maverik Gas Station $3,735 $53,100 $9,956 $2,522 ------$69,313 $6,257
Village at Avon Hotel 6 3 ,113 461,214 86,478 21,908 $461,214 ---1,093,926 85,021
Total $66,848 $514,314 $96,434 $24,430 $461,214 $0 $1,163,240 $91,278
Other Areas
Riverfront Townhomes $16,183 ------$7,473 $7,473 $3,737 $34,867 $27,394
Riverfront Condos 37,347 ------22,995 22,995 11, 49 8 94,834 71,839
Frontgate Townhomes 11,204 ------5,174 5,174 2,587 24,139 18,965
Frontgate Condos 70,025 ------4 3 ,116 4 3 ,116 21,558 177,814 134,698
McGrady Acres Townhomes 29,877 ---------------29,877 29,877
Total $164,636 $0 $0 $78,758 $78,758 $39,379 $361,531 $282,773
Total Town Revenue $231,484 $103,188 $78,758 $39,379 $374,050
2021 General Fund Revenue $2,047,905 ------$12,139,470 $2,017,544 ---$21,326,845 $21,326,845
% Impact 8.0%------0.6%3.9%------1.8%
[1] 4.00% Town Sales Tax is applied on the 4.75% Retail Sales Fee & PIF for developments in Village (at Avon)
Source: Economic & Planning Systems
38 Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
Appendix
Table A1. Sales Tax Rates, Peer Communities, 2021
Eagle County Summit County Pitkin County San Miguel County Routt County Grand County
Revenue Avon Vail Eagle
Brecken-
ridge Frisco
Silver-
thorne
Snowmass
Village Basalt Telluride
Steamboat
Springs Winter Park
Sales Tax
Town/City Sales Tax 4.000%4.000%4.500%2.500%2.000%2.000%3.900%3.000%4.750%4.500%7.000%
State Sales Tax 2.900%2.900%2.900%2.900%2.900%2.900%2.900%2.900%2.900%2.900%2.900%
County Sales Tax 1.000%1.000%1.000%2.000%2.000%2.000%3.600%1.500%1.000%1.000%1.300%
County Transit Tax 0.500%0.500%0.500%0.750%0.750%0.750%0.000%0.000%0.000%0.000%0.000%
Regional Housing Auth. 0.000%0.000%0.000%0.725%0.725%0.725%0.000%0.000%0.000%0.000%0.000%
Total 8.400%8.400%8.900%8.875%8.375%8.375%10.400%7.400%8.650%8.400%11.200%
Source: Economic & Planning Systems
Table A2. Mill Levies, Peer Communities, 2021
Eagle County Summit County Pitkin County San Miguel County Routt County Grand County
Revenue Avon Vail Eagle
Brecken-
ridge Frisco
Silver-
thorne
Snowmass
Village Basalt Telluride
Steamboat
Springs Winter Park
Taxing Districts
Town/City 8.956 4.736 2.301 5.070 0.798 0.000 7.346 10.391 5.991 4.500%7.000%
County 8.499 8.499 8.499 19.530 19.530 19.530 7.534 7.534 11.830 2.900%2.900%
School District 24.649 24.649 24.649 18.835 18.835 18.835 22.779 22.779 13.323 1.000%1.300%
College District 4.013 4.013 4.013 4.013 4.013 4.013 4.013 4.013 0.000 0.000%0.000%
Fire District 9.703 0.000 11.260 9.110 13.099 13.099 9.602 8.822 4.793 0.000%0.000%
Water/San 0.759 0.759 0.759 0.000 0.000 0.000 5.827 2.453 2.643
Other 6.038 8.778 9.170 0.547 0.547 0.547 0.000 5.363 5.655
Subtotal 62.617 51.434 60.651 57.105 56.822 56.024 57.101 61.355 44.235 59.693 11.200%
Source: Economic & Planning Systems
40 Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
Table A3. Sales Tax with Retail Sales Fee, Peer Communities
Eagle County Summit County Pitkin County San Miguel County Routt County Grand County
Tax Type Avon
Village at
Avon
Beaver
Creek Vail
Brecken-
ridge
Copper
Mountain Keystone Frisco Aspen
Snowmass
Village
Mountain
Village Telluride
Steamboat
Springs Winter Park
Sales Tax
Town/City Sales Tax 4.000%0.000%0.000%4.000%2.500%0.000%0.000%2.000%2.400%3.500%4.500%4.500%4.500%7.000%
State Sales Tax 2.900%2.900%2.900%2.900%2.900%2.900%2.900%2.900%2.900%2.900%2.900%2.900%2.900%2.900%
County Sales Tax 1.000%1.000%1.000%1.000%2.000%2.000%2.000%2.000%3.600%3.600%1.000%1.000%1.000%1.300%
Transit Tax 0.500%0.500%0.500%0.500%0.750%0.750%0.750%0.750%0.400%0.400%0.250%0.250%0.000%0.000%
Regional Housing Auth. 0.000%0.000%0.000%0.000%0.725%0.725%0.725%0.725%0.000%0.000%0.000%0.000%0.000%0.000%
Total 8.400%4.400%4.400%8.400%8.875%6.375%6.375%8.375%9.300%10.400%8.650%8.650%8.400%11.200%
Retail Sales Fee [1]---4.750%5.350%---------0.500%---------------------
Total 8.400%9.150%9.750%8.400%8.875%6.375%6.875%8.375%9.300%10.400%8.650%8.650%8.400%11.200%
[1] Includes PIF, Sales Assessments, and Civic Assessment Fees
Source: Economic & Planning Systems
Table A4. Lodging and STR Tax, Peer Communities
Eagle County Summit County Pitkin County San Miguel County Routt County Grand County
Tax Type Avon
Beaver
Creek Vail
Brecken-
ridge
Copper
Mountain Keystone Frisco Aspen
Snowmass
Village
Mountain
Village Telluride
Steamboat
Springs Winter Park
Lodging Tax
Lodging Tax 4.000%0.960%1.400%3.400%0.000%0.000%2.350%2.000%2.400%4.000%2.000%1.000%1.000%
Local Mktg. District 0.000%0.000%0.000%0.000%0.000%0.000%0.000%0.000%0.000%0.000%0.000%2.000%0.000%
Lodging Combined Rate 4.000%0.960%1.400%3.400%0.000%0.000%2.350%2.000%2.400%4.000%2.000%3.000%1.000%
Short-Term Rental Tax 2.000%5.000%2.500%
Total Combined Rate 6.000%0.960%1.400%3.400%0.000%0.000%7.350%2.000%2.400%4.000%4.500%3.000%1.000%
[1] Includes PIF, Sales Assessments, and Civic Assessment Fees
Source: Economic & Planning Systems
Economic & Planning Systems, Inc . 41
Table A5. Metro District Mill Levies, 2021
Description
Town of
Avon
Town of
Eagle
Eagle-
Vail Gypsum Minturn Vail
Arrowhead
Metro
District
Avon
Station
Beaver
Creek Metro
District
Berry Creek
Metro
District
Cordillera
Metro
District
Cotton Ranch
Metro District
Eagle Ranch
Metro
District
Edwards
Metro
District
Red Sky
Ranch Metro
District
Metro District Tax Mill Levy 0.000 0.000 18.217 0.000 0.000 0.000 14.500 66.295 27.935 12.155 57.281 37.345 30.999 1.691 59.000
Other Mill Levies
Town/City Mill Levy 8.956 2.301 0.000 5.094 17.934 4.736 0.000 8.956 0.000 0.000 0.000 5.094 2.301 0.000 0.000
Eagle County 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499
Colorado Moutain College 4.013 4.013 4.013 4.013 4.013 4.013 4.013 4.013 4.013 4.013 4.013 4.013 4.013 4.013 4.013
School District 24.649 24.649 24.649 24.649 24.649 24.649 24.649 24.649 24.649 24.649 24.649 24.649 24.649 24.649 24.649
Colorado River WCD 0.501 0.501 0.501 0.501 0.501 0.501 0.501 0.501 0.501 0.501 0.501 0.501 0.501 0.501 0.501
Eagle County Health Services 2.763 2.763 2.763 2.763 2.763 2.763 2.763 2.763 2.763 2.763 2.763 2.763 2.763 2.763 2.763
Fire District 9.703 11.260 8.576 10.570 9.703 0.000 9.703 9.703 0.000 7.936 8.576 10.570 11.260 8.576 8.576
Water Sanitation 0.759 0.759 0.759 0.759 0.759 0.759 0.759 0.759 0.759 0.759 0.759 0.759 0.759 0.759 0.759
Eagle Valley Library District 2.774 2.774 2.774 2.774 2.774 2.774 2.774 2.774 2.774 2.774 2.774 2.774 2.774 2.774 2.774
Other 0.000 3.132 1.127 3.381 0.285 2.740 0.000 0.000 0.000 0.000 4.018 3.381 3.133 4.777 4.018
Total Mill Levy 62.617 60.651 71.877 63.003 71.880 51.434 68.161 128.912 71.893 64.049 113.833 100.348 91.651 59.002 115.552
RETT/RETA 2.0%------1.0%1.0%1.0%---2.0%---------1.0%---------
Source: Economic & Planning Systems
42 Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership
TOWN OF AVON 2022 BALLOT MEASURE SURVEY
JUNE 23 –JULY 1, 2022
METHODOLOGY
•Magellan Strategies are pleased to present the
results of an online, bilingual survey of 305
registered voters within the Town of Avon,
Colorado.
•The interviews were conducted from June 23rd
–July 1 st, 2022.
•The overall survey responses have a margin of
error of +/-5.31% at the 95% confidence
interval. Population subgroups will have a
higher margin of error than the overall
sample.
•The survey results were weighted to be
representative of the voter turnout
demographics within the Town of Avon for a
midterm election cycle.
Do you agree or disagree with
the following statement?
“The Town of Avon is fiscally
responsible and spends taxpayer
money wisely.”
59%31%
10%
Total Agree Total Disagree
Unsure/No Opinion
3
59%
59%
76%
45%
50%
69%
63%
52%
54%
65%
31%
30%
15%
46%
39%
24%
24%
40%
40%
21%
10%
11%
9%
9%
11%
7%
13%
8%
6%
14%
Rent
Own
Dem
Rep
Unaf
65+
45-64
18-44
Men
Women
Total Agree Total Disagree Unsure/No Opinion
Strongly Agree 12%
Somewhat Agree 47%
Strongly Disagree 14%
Somewhat Disagree 17%
4% USE TAX
BALLOT TEST
Before we continue, it is important to understand that no decisions
have been made by the Town of Avon to put any tax ballot measures
before voters for any purpose this November. Your participation in
this survey and sharing your honest opinions will influence those
decisions. Let’s continue…
The Town is considering three different ballot measures for this
November’s election. One ballot measure would replace the Town’s
current 4% sales tax on construction materials with a 4% Use Tax.
Avon is the only town in Eagle County without a use tax. Collection
of a Use Tax is much more efficient for both contractors and the
Town.
In addition, this 4% Use Tax would have an annual $50,000/year
exemption to exclude small home improvement projects. The
revenue generated by this tax would be allocated to the Town’s
general fund.
If an election were held today, would you vote yes and approve a 4%
Use Tax on construction materials, or would you vote no and reject
it?
4% Use Tax Ballot Test
“If an election were held today, would you
vote yes and approve a 4% Use Tax on
construction materials, or would you vote
not and reject it?”
5
47%
31%
22%
Total Yes, Approve
Total No, Reject
Undecided
Definitely Yes, Approve 11%
Probably Yes, Approve 15%
Lean Toward Yes, Approve 21%
Definitely No, Reject 15%
Probably No, Reject 8%
Lean Toward No, Reject 8%
28%
55%
57%
27%
47%
61%
47%
43%
46%
49%
30%
29%
15%
51%
34%
25%
35%
28%
36%
23%
42%
16%
28%
22%
19%
14%
18%
29%
18%
28%
Rent
Own
Dem
Rep
Unaf
65+
45-64
18-44
Men
Women
Total Yes, Approve Total No, Reject Undecided
5% RETAIL TAX
ON MARIJUANA
BALLOT TEST
Another ballot measure that the Town is
considering is a 5% retail tax on marijuana to
match the tax in Eagle County. Although the
Town currently does not allow marijuana
businesses or retail sales, if this tax passes, the
Town would adopt regulations to allow a limited
number of marijuana businesses only in
designated areas.
The revenue from the Marijuana Tax would be
allocated to Community Housing, Recreation,
and Community Health.
If an election were held today, would you vote
yes and approve a 5% retail tax on marijuana, or
would you vote no and reject it?
5% Retail Marijuana Tax
Ballot Test
“If an election were held today, would you
vote yes and approve a 5% retail tax on
marijuana, or would you vote no and reject
it?”
7
71%25%
4%
Total Yes, Approve
Total No, Reject
Undecided
Definitely Yes, Approve 41%
Probably Yes, Approve 19%
Lean Toward Yes, Approve 11%
Definitely No, Reject 17%
Probably No, Reject 5%
Lean Toward No, Reject 3%
68%
74%
81%
50%
74%
72%
68%
74%
67%
77%
32%
20%
14%
48%
22%
26%
27%
23%
30%
18%
0%
6%
5%
2%
4%
2%
5%
3%
3%
5%
Rent
Own
Dem
Rep
Unaf
65+
45-64
18-44
Men
Women
Total Yes, Approve Total No, Reject Undecided
0.5% SALES TAX
INCREASE TO
SUPPORT RTA
BALLOT TEST
As you may know, Eagle County and the towns
of Avon, Eagle, Gypsum, Minturn, Red Cliff, Vail,
and the Beaver Creek Metro District have
collectively pursued the formation of a Regional
Transit Authority (RTA).
These entities are currently considering a 0.5%
sales tax increase and a 0.6% lodging tax increase
to support enhanced transit service. A 0.5% sales
tax increase in Avon would apply to all retail,
including groceries.
If an election were held today, would you vote
yes and approve a 0.5% sales tax increase to
support the RTA, or would you vote no and
reject it?
0.5% Sales Tax Increase
for RTA Ballot Test
“If an election were held today, would you
vote yes and approve a 0.5% sales tax increase
to support the RTA, or would you vote no and
reject it?”
9
35%
59%
6%
Total Yes, Approve
Total No, Reject
Undecided
Definitely Yes, Approve 5%
Probably Yes, Approve 11%
Lean Toward Yes, Approve 19%
Definitely No, Reject 31%
Probably No, Reject 10%
Lean Toward No, Reject 18%
34%
36%
40%
34%
30%
49%
36%
29%
40%
29%
66%
56%
53%
66%
62%
47%
57%
65%
57%
62%
0%
8%
7%
0%
8%
4%
7%
6%
3%
9%
Rent
Own
Dem
Rep
Unaf
65+
45-64
18-44
Men
Women
Total Yes, Approve Total No, Reject Undecided
0.6% LODGING
TAX INCREASE TO
SUPPORT RTA
BALLOT TEST
A 0.6% lodging tax increase in Avon
would apply to all lodging, including
commercial hotels and short-term
rentals.
If an election were held today, would
you vote yes and approve a 0.6%
lodging tax increase to support the
RTA, or would you vote no and reject
it?
0.6% Lodging Tax Increase
for RTA Ballot Test
“If an election were held today, would you vote
yes and approve a 0.6% lodging tax increase to
support the RTA, or would you vote not and
reject it?”
11
74%
24%2%
Total Yes, Approve
Total No, Reject
Undecided
Definitely Yes, Approve 33%
Probably Yes, Approve 22%
Lean Toward Yes, Approve 19%
Definitely No, Reject 14%
Probably No, Reject 4%
Lean Toward No, Reject 6%
72%
77%
71%
71%
79%
76%
69%
77%
78%
71%
28%
20%
25%
29%
19%
24%
27%
21%
20%
27%
0%
3%
4%
0%
2%
0%
4%
2%
2%
2%
Rent
Own
Dem
Rep
Unaf
65+
45-64
18-44
Men
Women
Total Yes, Approve Total No, Reject Undecided
0.6% LODGING
TAX INCREASE
TO SUPPORT RTA
BALLOT TEST
(INFORMED
LODGING TAX IS
HIGH)
As you may know, the total tax on lodging
in Avon is high at 12.4% (4% Avon lodging
tax, 4% Avon sales tax, 1% Eagle County
sales tax, 0.5% Eagle County Transit, 2.9%
State of Colorado sales tax).
Knowing this, if an election were held
today, would you vote yes and approve a
0.6% lodging tax increase to support the
RTA, or would you vote no and reject it?
0.6% Lodging Tax Increase
for RTA Ballot Test
(After Informed Lodging Tax is High)
“If an election were held today, would you vote
yes and approve a 0.6% lodging tax increase to
support the RTA, or would you vote not and
reject it?”
13
58%36%
6%
Total Yes, Approve
Total No, Reject
Undecided
Definitely Yes, Approve 24%
Probably Yes, Approve 17%
Lean Toward Yes, Approve 17%
Definitely No, Reject 18%
Probably No, Reject 9%
Lean Toward No, Reject 9%
65%
55%
62%
57%
55%
53%
49%
66%
60%
55%
35%
36%
33%
42%
37%
42%
42%
30%
35%
38%
0%
9%
5%
1%
8%
5%
9%
4%
5%
7%
Rent
Own
Dem
Rep
Unaf
65+
45-64
18-44
Men
Women
Total Yes, Approve Total No, Reject Undecided
1.2768 MILLS
PROPERTY TAX
INCREASE TO
SUPPORT RTA
BALLOT TEST
An alternative to a lodging tax increase to
support the RTA is a property tax increase. The
total mill levy for property in Avon is 62.346,
which includes the Town of Avon’s mill levy of
8.956.
A property tax mill levy of 1.2768 mills would
generate the same revenues as a 0.6% lodging
tax.The cost for this increase would be $68.47
per year on a home valued at $750,000.
If an election were held today, would you vote
yes and approve a 1.2768 mills property tax
increase to support the RTA, or would you vote
no and reject it?
1.2768 Mills Property Tax Increase
for RTA Ballot Test
“If an election were held today, would you vote
yes and approve a 1.2786 mills property tax
increase to support the RTA, or would you
vote not and reject it?”
15
26%
68%
6%
Total Yes, Approve
Total No, Reject
Undecided
Definitely Yes, Approve 5%
Probably Yes, Approve 6%
Lean Toward Yes, Approve 15%
Definitely No, Reject 38%
Probably No, Reject 17%
Lean Toward No, Reject 13%
43%
20%
27%
24%
24%
17%
24%
30%
26%
26%
53%
73%
64%
71%
71%
77%
68%
65%
68%
67%
4%
7%
9%
5%
5%
6%
8%
5%
6%
7%
Rent
Own
Dem
Rep
Unaf
65+
45-64
18-44
Men
Women
Total Yes, Approve Total No, Reject Undecided
Voter Preference for Lodging or
Property Tax to Support RTA
“Which tax do you think is best for Avon to
support the RTA?”
16
47%
9%
29%
15%
0.6% Lodging Tax Increase
1.2768 Mills Property Tax Increase
Would Not Vote for Either
Undecided
25%
57%
50%
23%
58%
48%
55%
42%
43%
54%
9%
8%
11%
6%
8%
7%
13%
6%
9%
8%
44%
22%
23%
48%
25%
25%
25%
33%
32%
24%
22%
13%
16%
23%
9%
20%
7%
19%
16%
14%
Rent
Own
Dem
Rep
Unaf
65+
45-64
18-44
Men
Women
0.6% Lodging Tax 1.2768 Mills Property Tax Neither Undecided
Verbatim Responses148 RESPONDENTS PROVIDED
ADDITIONAL THOUGHTS ON
THE BALLOT MEASURES
"Do you have any thoughts or opinions
you would like to share with the Town
regarding these potential ballot
measures?"
Themes
Taxes are too high, now is not the time to raise them
Too expensive to live in Avon, residents want affordable
housing solutions and want Town to deal with STRs
Question whether RTA would benefit them
(Particularly Wildridge/Wildwood)
Vocal minority against retail marijuana in Avon
“Every single election has tax increase measures included, every
single one! Give it a rest!”
-Male, 65+, Democrat, Hurd Lane
“Taxes are high enough. The town should figure out how they can be
more efficient with the money they have. Does everyone work as
hard as they can?”
-Male, 65+, Republican, Town Core
“Voters need a better idea of what the regional transportation
partnership would provide.”
-Male, 35-44, Democrat, Wildridge
“Because transit ignores Wildridge/Wildwood, I would probably
reject any tax increase unless it includes this large residential area of
Avon.”
-Female, 55-64, Unaffiliated, Wildwood
“Don’t tax the locals.”
-Female, 35-44, Republican, West Avon
“Please spend wisely. Do not spend more on infrastructure now. Do
not spend more on art/statues. Locals need help and places to live.”
-Female, 55-64, Unaffiliated, West Avon
SURVEY DEMOGRAPHICS
47%
52%
1%
Female Male Identify Differently
44%
36%
18%
2%
Unaffiliated Democrat
Republican Other Party
74%22%
4%
White Hispanic Other
18-24 25-34 35-44 45-54 55-64 65+
2%
24%
21%18%
19%
16%
SURVEY DEMOGRAPHICS
60%32%
8%
Married Single Prefer Not to Say
68%26%
6%
Own Rent Other
Wildridge West Avon Nott. Park Northside Town Core Vill. At
Avon
Hurd Lane Wildwood East Core Mtn. Star Other
38%
12%9%9%8%6%6%4%3%2%3%
MAGELLAN STRATEGIES
(303) 861-8585
WWW.MAGELLANSTRATEGIES.COM
DAVID FLAHERTY
COURTNEY SIEVERS
RYAN WINGER
Town of Avon 2022 Ballot Measure Survey
"Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?"
Town of Avon 2022 Ballot Measure Survey
6/23/22 -7/01/22
305n, +/- 5.31% MoE
Magellan Strategies
www.Magellanstrategies.com | 303-861-8585 1
Sex
Age
Range Party Housing Neighborhood Response
M 65+U Oth.East Core
Increasing taxes during a period of high inflation is probably questionable. I understand the need
but question the timing.
F 65+D Own East Core
Fund RTA from existing revenue sources. If this is a priority for Avon, then fund it as a priority.
Don't use RTA as an excuse to raise our taxes in these expensive and difficult times.
M 55-64 O Rent East Core Chicago was built on high taxes Only criminals are left there now
F 35-44 U Rent East Core No more taxes
M 35-44 U Rent East Core Housing is fucked, the valley is dying
F 45-54 D Own Hurd Lane Too many increases on one ballot will be tough.
F 55-64 D Own Hurd Lane I do not want pot shops in our town.
F 55-64 D Own Hurd Lane
Im glad the public transportation in the Valley is being worked on. Its in real need of overhaul to
be useable.
F 55-64 D Own Hurd Lane Taxes are already high.
F 65+D Own Hurd Lane
I think added sales tax to support RTA would be regressive on the people who need the system
the most. I would prefer other sources of revenue to fund a regional RTA-which I believe is a
necessary arrangement for the future. A fully integrated county transit system is a must.
M 65+D Own Hurd Lane Every single election has tax increase measures included, every single one! Give it a rest!
F 45-54 U Own Hurd Lane
No to all drug shops in Avon. Do not approve sales of drugs in our town. The smell, tje misuse
and not the image we should have for our community and families. No, NO, NO!! Clean up the
parks please. I love dogs, but why do people never clean up after their dogs. And why are the off
leash on my property?? If you cannot maintian this... how will you control the open use of drugs?
No to any of this in Avon!!
M 45-54 U Own Hurd Lane
I think raising taxes on groceries is poor way to subsidize buses. Can the people who use the
buses to get to work afford to ride the bus if their grocery bill goes up too much?
F 55-64 U Own Hurd Lane How about a tax increase on vacant commercial space.
M 55-64 U Own Hurd Lane
A lodging tax would mostly impact visitors to the area who have more disposed income. The
other tax options impact locals who are already struggling and pay high sales and property taxes.
F 65+U Own Hurd Lane
As a Senior with diminishing income I would find any tax increase a great burden; this year the
property tax on my home increased almost $2000 over the prior year, as several homes in my
neighborhood sold for $million+, probably a 30%-50% increase over prices before Covid
Town of Avon 2022 Ballot Measure Survey
"Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?"
Town of Avon 2022 Ballot Measure Survey
6/23/22 -7/01/22
305n, +/- 5.31% MoE
Magellan Strategies
www.Magellanstrategies.com | 303-861-8585 2
Sex
Age
Range Party Housing Neighborhood Response
F 45-54 D Rent Hurd Lane
Tax the hell of the out of towners. Too many people here. Its getting out of hand. Locals cant
live a peaceful life anymore due to greed. Tax those who dont live here.
M 55-64 D Own Mtn Star
We are headed towards a recession. Inflation is at a 40 year high. Gasoline is at a high. The idea
of taxing people more now seems wildly inappropriate for anything other then optional items like
marijuana consumption.
F 65+D Own Mtn Star
Current taxes are too high. It is too expensive to live in this valley. Avon is not an attractive town.
It is not pedestrian friendly. The retail shops are mediocre, with little to offer to locals or visitors.
M 55-64 R Own Mtn Star Spending money on more transit is wasteful and I would not support any tax increase to fund it.
F 65+R Own Mtn Star Avoid ALL tax increases!!!!
M 65+U Own Mtn Star
Stop raising taxes and operate the town more efficiently. For example, what in the world is that
ridiculous walkway recently constructed under I-70 most likely at Avons expense? Of what
benefit is that to the common good?
M 35-44 U Oth.Northside No need for any more tax increases, specially seeing how much prices are rising!
M 35-44 D Own Northside Would just like to research and see what options are
F 45-54 D Own Northside Please focus on employee housing and affordable housing!
F 55-64 D Own Northside
The full time local population in Avon is suffering enough from the expansion of short term
rentals and the demands they put on the infrastructure. Any tax increase should be directed
towards these uses.
F 35-44 R Own Northside
The 2% RETT is plenty for TOA. They have more than enough funds if spent wisely. No need to
increase taxes ever. Reallocate the current ones. We pay enough in taxes.
M 55-64 R Own Northside Don't want Marijuana sales in Avon.
M 45-54 U Own Northside
Our citizens are struggling enough to survive in an overly inflated economy and exorbently
priced community. At the same time skier visits and tourism increases overwhelmingly every
year. Pass this cost to the hotels and STRs and leave the working class citizens of Avon alone
F 55-64 U Own Northside
Tax the short term rentals to offset the cost of these uses both in terms of consumption of resource
and infrastructure as well as the loss of long term housing.
F 55-64 U Own Northside
Would like to know the RTA ridership #s at Avon compared to total eagle county and other eagle
county towns
Town of Avon 2022 Ballot Measure Survey
"Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?"
Town of Avon 2022 Ballot Measure Survey
6/23/22 -7/01/22
305n, +/- 5.31% MoE
Magellan Strategies
www.Magellanstrategies.com | 303-861-8585 3
Sex
Age
Range Party Housing Neighborhood Response
M 55-64 U Own Northside
Avon has no attraction any longer, half the retail with numerous storefronts empty, half the
restaurants and bars yet more banks and pharmacies.. This town sucks to live in now?
M 55-64 U Own Northside
Half the retail, half the bars and restaurants, and you continue to confuse drivers with the mid
road islands that solve no traffic issues. Its not fun to live here any longer.
M 65+U Own Northside
I support RTA and housing initiatives, in general. Would like to see a TOA and/or a sticker for
residents to allow winter parking in town.
F 35-44 D Own Nott. Park A tax credit would be a nice way to increase housing for our locals needing housing.
F 35-44 D Own Nott. Park I think employers who dont offer employee parking should contribute to RTA in some way.
F 35-44 D Own Nott. Park
I would say the town manager is doing a terrible job and the town of Avon pays peanuts
compared to other towns in our area. We probably pull in more tax $ to pay our town employees
better than most other municipalities. Its embarrassing. Do your job better.
F 45-54 D Own Nott. Park
The way this survey is worded is highly subjective to get the answers the survey writer wants. I
suggest unbiased surveys going forward if you care what the voters think.
M 65+D Own Nott. Park
The town transportation structure seems very good at present . If it's current budget is not
adaquate I would look elsewere for funding or cut some transport ptions ...
M 45-54 R Own Nott. Park No more taxes
M 45-54 R Own Nott. Park
Reduce or maintain the budget for transit - do not tax people who dont use it. That is
redistribution of wealth and anti-American!
M 35-44 U Own Nott. Park Heavily tax STRs
M 35-44 U Own Nott. Park
I think taxing second home owners a higher rate would solve taxing issues and funds. Currently
we have the lowest tax for second homeowners in the country
F 45-54 U Own Nott. Park Surely you can be more creative with the existing budget than just raising taxes
M 45-54 U Own Nott. Park Would like to understand what RTA improvements would be implemented.
F 55-64 U Own Nott. Park Taxes in Avon are already to high!!!
F 25-34 D Rent Nott. Park No but will definitely be researching more before the election.
F 35-44 D Rent Nott. Park
Put a moratorium on short term rentals while the housing issue is addressed. Sun ridge and
liftview have gone from mostly local workers to mostly short term rentals and is only getting
worse.
M 45-54 D Rent Nott. Park
I dont know if the short term rentals such as vrbo, Airbnb, etc. are taxed at the same rate as say a
hotel room, but would like it to be the same tax rate across the board.
Town of Avon 2022 Ballot Measure Survey
"Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?"
Town of Avon 2022 Ballot Measure Survey
6/23/22 -7/01/22
305n, +/- 5.31% MoE
Magellan Strategies
www.Magellanstrategies.com | 303-861-8585 4
Sex
Age
Range Party Housing Neighborhood Response
F 25-34 U Rent Nott. Park
As a renter, would these taxes just be an additional way for rent prices to increase and a way for
which tenants to cover the costs for those providing the rentals
F 25-34 U Rent Nott. Park
Please stop raising our taxes. It is already expensive enough to live here and you are driving our
home owners taxes up, our local working class out of the valley. Cut spending, Cut salaries and
Cut the taxes. Raising taxes isn't the answer its the problem.
M 25-34 U Rent Nott. Park
Short term rentals are killing our town. Tax them and build employee housing or affordable
housing or there will be no workers to run the businesses the tourists require.
M 35-44 U Rent Nott. Park Build actual houses that people can afford that work here
U 35-44 U Rent Nott. Park
Stop being woke. Nobody cares about your political virtue signaling. You all care for the rich
elites and have zero priorities for blue collar workers.
M 35-44 U Oth.Other Yes, decrease spending in other areas and redirect those funds to the RTA
F 55-64 D Own Other
It is already expensive enough to live in the Vail Valley for locals. Visitors will continue to come
and, eventhough taxes on rentals are high, another .6 doesn't seem like it would make a huge
difference to someone coming for vacation.
M 65+D Own Other
We're fully taxed up. Visitors also use RTA, let them pay for it. Equally important, look at
competitive ski markets and stay at par or below in our tax structure.
U 35-44 O Own Other
Stop making it so challenging for people to live in Avon full-time. Provide public transportation
that is convenient and useful for locals. Stop making locals pay for parking to ski at Beaver Creek.
Start ticketing visitors who park their cars in illegal spots and in insane manners. Allow the town
to have marijuana stores, we sell cigarettes and alcohol freely, what's the difference? Tax the heck
out of it and use the tax money for useful things like public transportation, housing, schools and
teacher salaries. This is a ridiculous conversation for our town council.
F 55-64 R Own Other
I do not want Pot stores in Avon... they work great in the Green Mile and it's not essential to have
them in Avon. Have you done a survey to see if residents want Pot stores to bring in unsavory
types off the highway to our nice town? Before you approve and cannot undo your idea of weed
in Avon, please consider how nice Avon is without these establishments. Also, the Nottingham
Park parking is small and where to park is confusing and needs better signage or publicity.
Parking along the road is illegal? Where are people supposed to park then? Also, how much of a
shortfall for RTA is there... this survey does not inform.
Town of Avon 2022 Ballot Measure Survey
"Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?"
Town of Avon 2022 Ballot Measure Survey
6/23/22 -7/01/22
305n, +/- 5.31% MoE
Magellan Strategies
www.Magellanstrategies.com | 303-861-8585 5
Sex
Age
Range Party Housing Neighborhood Response
F 45-54 U Own Other
DO NOT VOTE for DRUGS in our community! Do not allow the sales here. Please it is a
problem already in our County. we would need more police, more fire prevention and mental
health. Keep our community clean!!
U 45-54 U Own Other What about forcing employers with more than 25 employees to have to offer employee housing.
M 25-34 O Rent Other I think the RTA is one of the most important things for this town
U 55-64 U Rent Other Spend less!
M 65+U Oth.Town Core No more taxes
M 65+R Own Town Core
Taxes are high enough. The town should figure out how they can be more efficient with the
money they have. Does everyone work as hard as they can?
M 35-44 U Own Town Core Be more responsible with the budget in place. Waste less
M 35-44 U Own Town Core What happened to the guy with the hat and glasses?
M 35-44 U Own Town Core
Yes. Be more Fiscally responsible instead of not being so and passing the irresponsibility on the
tax payer continuously. Private businesses have to do it
M 55-64 U Own Town Core Transit should be funded by users Make it easier for builders to build affordable housing
M 45-54 D Rent Vill. at Avon Rents continually rise so I have no problem voting for tax increases too, especially property taxes.
M 25-34 U Rent Vill. at Avon Need more measurements so that tax increase goes to eagle county school district
M 35-44 U Rent Vill. at Avon Be careful not to tax too much.
M 45-54 U Rent Vill. at Avon Thanks for asking for our input
F 55-64 U Rent Vill. at Avon
Citizens do not need any more taxes & expenses. Elected Public Officials need to be better
stewards of the PEOPLES money instead of constantly raising taxes. We need a safer crossing at
the westbound I-70 on-ramp from Nottingham Rd. before a pedestrian or cyclist gets killed. As a
motorist one is looking to the left for oncoming traffic while merging and are blindsided by
pedestrians/cyclist who come out from behind the trees on the right, assuming full right of way. It
is very dangerous!
U 25-34 U Oth.West Avon I dont believe marijuana should be sold within the town limits.
F 35-44 R Own West Avon Don't tax the locals.
Town of Avon 2022 Ballot Measure Survey
"Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?"
Town of Avon 2022 Ballot Measure Survey
6/23/22 -7/01/22
305n, +/- 5.31% MoE
Magellan Strategies
www.Magellanstrategies.com | 303-861-8585 6
Sex
Age
Range Party Housing Neighborhood Response
M 45-54 R Own West Avon
I support taxes that help make living in/around Avon more affordable to support the population
the local businesses need to offer a great resident and visitor experience. Local residences
support businesses year round through property and sales tax, so I'd prefer to use peak visitation
periods to shore up the difference.
F 45-54 U Own West Avon STOP wasting money. I would get rid of the entire town council if I could. Maybe I will.
F 55-64 U Own West Avon
Maybe if you promise to improve a bridge on W Beaver Creek Blvd so pedestrians don't get
sprayed with slush mg chloride, slip and slide on ice , have to run over the road as there is no
sign of crossing and don't have to jump out of the way when groups of bicikling tourists ride
over, instead of fixing the overwhelmingly useless stage. Maybe than I would vote for increasing.
F 55-64 U Own West Avon
Please spend wisely. Do not spend more on infrastructure now. Do not spend more on
art/statues. Locals need help and places to live.
F 55-64 U Own West Avon Re allocate what you have. Do not increase taxes. You do not spend the money wisely as it it!
F 55-64 U Own West Avon
We are over taxed. It is getting difficult for a citizen keep going and over work to keep going even
when it is time to retire, because you didnt save enough. I know we need a public transportation
that will help the mobility of working force and less use of our cars. I think we need be better in
management of our funds and priorities and reduce costs. As society we can not see only to tax
the citizens, maybe here revenue of services like maybe parking spaces with roof tops with
electric solar panels, for charging station and obtain revenue for it. Or even charge the electric
buses and reduce cost for the transportation.
M 55-64 U Own West Avon Anti tax be responsible with what you have
F 65+U Own West Avon
Would like more info on the marijuana tax or more specific info to allow shops in Avon to do
business.
F 35-44 D Rent West Avon Limit Short Term Rentals, yes to free buses to Vail
M 25-34 U Rent West Avon
You could also consider cutting spending. The shows at Nottingham are nice but definitely eat up
a lot of funding.
M 25-34 D Oth.Wildridge
Sliding Scale for property tax for value and residency: full-time residents and lower value property
exempt, vacation home, and higher value homes (>$1,000,000) taxed
U 65+U Oth.Wildridge This isnt a survey - it is a pro tax campaign item
Town of Avon 2022 Ballot Measure Survey
"Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?"
Town of Avon 2022 Ballot Measure Survey
6/23/22 -7/01/22
305n, +/- 5.31% MoE
Magellan Strategies
www.Magellanstrategies.com | 303-861-8585 7
Sex
Age
Range Party Housing Neighborhood Response
F 35-44 D Own Wildridge
I STRONGLY OPPOSE retail marijuana in Avon. It sends an unhealthy message to children and
families about health priorities and norms that our community values. Folks who want marijuana
can purchase down the street in EagleVail without it being promoted right in the faces of local
children and teens. The language in the survey question is very tricky- if retail marijuana was
approved in Avon of course a tax would be helpful (and expected, especially to offset health
strategies). Avon voters expressed strong opposition to marijuana sales in town in the past and
you should have separated survey questions on retail marijuana and marijuana sales tax. I
would prefer lodging tax as it wont impact local residents as much in the taxing, yet we would
benefit. Plus I dont think an additional 4% lodging tax would sway guests against staying in Avon.
M 35-44 D Own Wildridge I hope the rta will help residents in wildridge
M 35-44 D Own Wildridge Voters need a better idea of what the regional transportation partnership would provide.
M 35-44 D Own Wildridge
Will there be any bus service to Wildridge and Wildwood? If not, this looks like it could be a tax
on locals for the benefit of tourists depending on the funding source when it reaches the ballot. If
you are going to ask locals for money, there should be a benefit to them by increasing services
that they can use.
F 45-54 D Own Wildridge
Stop looking for more ways to make it much expensive to live in happy valley. Users should pay
for public transportation. The town should make it easier for developers to build apartments that
are more affordable.
F 45-54 D Own Wildridge
Use some of the money to protect more open land that is used for animal habitats, community
members & wildland fire protection (ie:2332 Fox Lsne). Thank you
F 55-64 D Own Wildridge
I will look for more information about RTA and its operation before I would decide how to vote. I
like the idea of RTA. My biggest concern is still workforce housing. I wish I had a good solution.
F 55-64 D Own Wildridge
No no no on any tax increase. Property taxes already increasing dt inflation on homes. On a
fixed income & do not want to be priced out of valley I have spent 40 years in.
F 55-64 D Own Wildridge
Please, no dispensaries in Avon! Eagle-Vail just makes sense. If you assume RTA is used most by
visitors and shift workers, taxing property owners makes zero sense. Taxing groceries makes even
less sense!
Town of Avon 2022 Ballot Measure Survey
"Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?"
Town of Avon 2022 Ballot Measure Survey
6/23/22 -7/01/22
305n, +/- 5.31% MoE
Magellan Strategies
www.Magellanstrategies.com | 303-861-8585 8
Sex
Age
Range Party Housing Neighborhood Response
M 55-64 D Own Wildridge
Id be more inclined to pay higher taxes if it would provide more free parking so that we could
use RTA more.
M 55-64 D Own Wildridge
Stop profligate spending and ridiculous projects ans theres be more money for regional transit
and social programs. Nottingham Barn? Bandshells? Cmon.
F 65+D Own Wildridge I am very excited about the new pickleball courts!
F 65+D Own Wildridge
Much of the full time residents have no access to the transit service. Residents of Wildridge,
Wildwood, etc need to drive to Avon AND park to use the current transit system.
F 65+D Own Wildridge
Thanks for asking our opinion. A lodging tax to support transit makes sense so workers have a
way to get to work without having to drive and park, visitors can do without their cars, too.
M 65+D Own Wildridge
Your survey is so far from the elections that no information from pro & con is available, so
personal opinions are difficult to make
F 55-64 O Own Wildridge Get off my wallet.
F 55-64 R Own Wildridge
I believe that all tax increases need to be investigated. Taxes keep going up and it is the family
that work here covering all of the increases, and sooner than later, that well is going to dry up.....
there has to be a better way to cover costs than to just keep increasing taxes and to put the
individuals who use the services to pick up the cost.
M 55-64 R Own Wildridge
A best practice for the election is to explicitly state what the RTA would do, benefits, costs, etc.
Tell exactly how money would be spent and what RTA transit will look like. Would any of the
town transit functions fold into this RTA? Are there economis of scale, accounting, maintenance
functions etc. that will become more efficient? Or folded into RTA? Under promise and over
deliver. If it passes let citizens know how you are progressing vs. stateed goals, costs,
functionality etc. Be super transparent. Right now this is an ephemeral RTA, need tons if
substance behind it to go to voters to get it passed.
M 55-64 R Own Wildridge AVON NEEDS TO STOP SPENDING MONEY ON EVERYTHING and work on the roads
M 55-64 R Own Wildridge Focus on fire egress from Wildridge not preserving the mayors family barn!
M 55-64 R Own Wildridge More sales and property taxes will further hammer locals already living on the margin.
M 55-64 R Own Wildridge No more taxes for the locals!
M 55-64 R Own Wildridge Why support transportation that only serves 1/4 of the towns square miles?
F 65+R Own Wildridge Given the economic downturn, you should carefully consider asking residents for more money.
F 65+R Own Wildridge No, but what about considering the wildridge fire house for a teen rec center
Town of Avon 2022 Ballot Measure Survey
"Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?"
Town of Avon 2022 Ballot Measure Survey
6/23/22 -7/01/22
305n, +/- 5.31% MoE
Magellan Strategies
www.Magellanstrategies.com | 303-861-8585 9
Sex
Age
Range Party Housing Neighborhood Response
M 65+R Own Wildridge Avon total taxes are already TOO HIGH!!!
M 65+R Own Wildridge Rather than raise taxes, consider cutting city services excluding police and fire.
M 65+R Own Wildridge
With inflation the dollars to the city will increase substantially without a change in the tax
percentage.
M 25-34 U Own Wildridge If the sales tax increase excluded groceries I would be more inclined to vote yes for it
M 25-34 U Own Wildridge The sales tax is already very high
F 35-44 U Own Wildridge
Instead of increasing taxes, allocate the money set aside for the e-bike rebates to people who
purchase an e-bike to the RTA. E-bikes are a luxury good and that rebate only serves a select
number of people that can afford a $2-3k bike at minimum after taxes and shipping. Plus for
many locals working in the Valley it is impractical to use an e-bike to commute to and between
the 2-3 jobs we hold around the Valley just to be able to afford to pay for a roof over our head.
This limitation is particularly evident in the Winter and mud seasons when it would require
purchasing warm clothes and gear for the bike to keep warm and safe in icy conditions. Use of an
e-bike is practical for maybe 6 months out of the year before the mornings are very cold, its
snowy/icy, or evening light is short. Even though RTA only serves a segment of our market, it
serves the segment you should be focusing on because its an actual need for the transportation to
get to work every day and make our Valley a destination resort people want to visit.
F 35-44 U Own Wildridge
What about something for employee housing? Is there something that can be done about the
abhorrent mail service in Avon?
M 35-44 U Own Wildridge
Areas that been declared short term rentals need to remain as potential short term rentals.
Areas(eagle-vail/wildridge/wildwood) need to have a closer eye placed upon them.
F 45-54 U Own Wildridge
I do not support increasing the cost of living (groceries, etc) for residence during a time of high
inflation. Nor do I support increase property taxes to communities that would NOT benefit from
the Regional Transit Authority (aka Wildridge, etc). These community members still need to drive
and park somewhere to access public transportation and the system does not have a good plan
for parking at transit hubs. I feel that the increase in visitors need to pick up the additional costs as
we are continuously pricing out our workforce from this community.
Town of Avon 2022 Ballot Measure Survey
"Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?"
Town of Avon 2022 Ballot Measure Survey
6/23/22 -7/01/22
305n, +/- 5.31% MoE
Magellan Strategies
www.Magellanstrategies.com | 303-861-8585 10
Sex
Age
Range Party Housing Neighborhood Response
M 45-54 U Own Wildridge
I understand the need for funding. However, before increasing taxes, I would like to the Town be
more fiscally responsible with its current expenditures. The Town tends to spend money on
things versus investing in improvements and events which have a long term ROI. For instance,
the Town spends on landscape enhancements which are great, but fails to budget for the proper
maintenance of the landscaping. Any sales tax increase should exempt groceries. I believe
Vail did this recently for housing and look at what they are accomplishing.
M 45-54 U Own Wildridge It would be a better idea to charge per ride or buy a pass for the additional RTA services.
M 45-54 U Own Wildridge Possibly a mix of lodging and mill levy
M 45-54 U Own Wildridge Tax are high enough!
F 55-64 U Own Wildridge
A brief explanation of this unconventional approach to gauge public opinion, included just prior
to the survey, would have been helpful. The marijuana tax question was misleading, th/ anyone
against marijuana sales in Avon would be against a tax. Marijuana sales in a family resort town is
a very bad idea.
F 55-64 U Own Wildridge
I've lived in Avon over 3p. It's upsetting to see neiborhoodz ruined by short term rentals. Hots
are loosing g .oney and these visitors are complexly unaware of the noise level and disregard for
residents who work every day. Enough.
F 55-64 U Own Wildridge This is not the time to raise taxes.
M 55-64 U Own Wildridge
I agree with a county wide bus system. I think it would be much more efficient than three or four
separate bus systems. I don't agree with a rise in property tax to fund it. Most people look at it as
an affordable increase of a few bucks a month on their property tax when the real burden is on
the commercial property owners who pay substantially more in taxes and pass that increase onto
their tenants, forcing tenants to raise prices on their goods and services.
M 55-64 U Own Wildridge Lower my taxes, I'm taxed enough already.
F 65+U Own Wildridge Avon is over taxing now.
M 65+U Own Wildridge
I support the RTA concept. Good reliable transit would support down valley housing options
while decreasing auto usage.
M 65+U Own Wildridge Living in Wildridge makes using public transportation a bit more inconvenient.
M 65+U Own Wildridge
The question on Marijuana conflates two issues - there should be two questions - 1) should
Avon allow the sale of the drug and 2) should it be taxed more than other products if sold in the
town? Thankyou
Town of Avon 2022 Ballot Measure Survey
"Do you have any thoughts or opinions you would like to share with the Town regarding these potential ballot measures?"
Town of Avon 2022 Ballot Measure Survey
6/23/22 -7/01/22
305n, +/- 5.31% MoE
Magellan Strategies
www.Magellanstrategies.com | 303-861-8585 11
Sex
Age
Range Party Housing Neighborhood Response
M 65+U Own Wildridge Too many ballots
M 65+U Own Wildridge
Your history has shown on issues like the barn, that you do not know how to responsibly spend
the money you now collect. I see no reason to allow you to impose any more or increased taxes
of any kind whatsoever
M 25-34 D Rent Wildridge Stop purchasing statues.
M 45-54 D Rent Wildridge
Whichever way you go, thank you for being responsible with the town's tax-based revenue. Be
honest and be fair. Thank you!
F 55-64 D Rent Wildridge
In light of the looming recession, the residents of Avon cant take more tax hits. The price of
everything has increased. Rental costs are off the charts in the valley. I will not support taxes that
will really be felt by local workers and families.
M 25-34 R Rent Wildridge No more taxes.
F 35-44 R Rent Wildridge The transit system is most used by tourists. That should be passed on to them.
F 45-54 D Own Wildwood Be smart
F 25-34 U Own Wildwood
Property tax increases should have exemptions for lower and middle-income permanent
residents and landlords with long-term leases. Tax the living daylights out of the 2nd home
owners but do not make it any more expensive to live here.
F 55-64 U Own Wildwood
Because transit ignores Wildridge/Wildwood I would probably reject any tax increase unless it
includes this large residential area of Avon.
F 55-64 U Own Wildwood
Please remember that Avon is already an expensive place to own or rent as you plan to move
forward.
F 55-64 U Own Wildwood
Yes deed restriction housing. I live in one and this is keeping me in a state of poverty. It needs to
revised
M 65+U Own Wildwood Why do you always need to raise taxes? Why dont you cut spending.
970.748.4413 matt@avon.org
TO: Honorable Mayor Smith Hymes and Council
FROM: Matt Pielsticker, AICP Planning Director
RE: Retail Marijuana Businesses
DATE: May 5, 2022
INTRODUCTION: The purpose of this report is to summarize land use, taxing, and development standards
regarding potential marijuana sales in the Town. Last fall the Town Council and Planning and Zoning
Commission (“PZC”) held a work session to discuss this topic. Direction was provided to proceed with
exploring a ballot question to Avon voters for recreational marijuana sales. There was less support for
pursuing cultivation or testing facilities.
One to two retail stores in Town can be expected if a ballot question is approved by voters and common
distancing parameters are implemented. If a 5% excise tax was approved and sales volume was
comparable to other Eagle County retail stores, between $250,000 and $500,000 per year in additional
revenue is projected. Final action to pursue ballot question(s) or not in 2022 is being requested at the
meeting.
BACKGROUND: At the national level, Colorado went from being the first adopter of marijuana legalization
to one among many states with some sort of marijuana liberalization policy. Federally, marijuana is still a
controlled substance, subject to penalties for production, transport, and sales.
Colorado voters approved Amendment 64 in 2012, which resulted in the legalization of marijuana and
recreational marijuana sales in the state, beginning in 2014. Amendment 64 passed Statewide with a vote
of 55% in favor; in Eagle County the result was 66% in favor; and in Avon, 71%. Amendment 64 allowed
local jurisdictions to prohibit marijuana sales and associated businesses within their borders.
In 2014 the Town Council passed Ordinance 14-06, which bans marijuana businesses within the Town.
After several years of legalization, there are fewer unanswered questions as to the impact of marijuana
businesses on communities. Since 2014, the number of Colorado communities allowing marijuana
businesses has grown substantially. The attached status report (“Attachment A”) prepared by Colorado
Municipal League summarizes marijuana business allowance by type of facility, with tax information by
jurisdiction. Eagle County tax collections are summarized (“Attachment B”) to provide local context with
tax revenues.
One of the Finance Department’s 2022 goals includes:
Research and Support Consideration of Use Tax and Marijuana Tax: Council expressed interest
in researching and considering both a Use Tax and Marijuana Tax for potential referral to the
November 2022 general election.
EAGLE COUNTY REGULATIONS: Eagle County regulates retail marijuana businesses, predominantly
using distancing requirements. More specifically, Eagle County, medical and retail cannabis businesses
are prohibited within 200 feet of residential, drug rehabilitation facilities, community centers, schools, parks,
playgrounds, or family care facilities. Retail businesses are also prohibited within 500 feet of high schools
in this unincorporated area. Distancing results in defining the resulting areas outside of this parameter that
allow recreational marijuana sales, like Eagle-Vail’s commercial corridor illustrated below.
Page 2 of 6
Eagle-Vail commercial corridor allows recreational marijuana sales and production based on the County's
regulations. Locational buffers from houses, parks, etc., appear in yellow.
STATE OF COLORADO REGULATIONS: At the state level, the Colorado Senate passed House Bill 21 -
1317. The bill was signed into law and seeks to limit high -potency THC products (i.e. concentrates) from
being available to young people. Products are now being tracked with a software system to limit younger
medical card carriers from buying more than is allowed per day for products available at various outlets..
The state cannabis WEBSITE contains a wealth of information on the topic, including resources related to
health and the responsible use of cannabis.
FEDERAL DISTANCING: Consideration should be given to federal-level penalties related to marijuana,
which is still listed as a controlled substance. The federal standards are cited here for convenience:
21 USCS § 860
(a) Penalty. Any person who violates section 401(a)(1) or section 416 [21 USCS § 841(a)(1) or
856] by distributing, possessing with intent to distribute, or manufacturing a controlled substance in
or on, or within one thousand feet of, the real property comprising a public or private
elementary, vocational, or secondary school or a public or private college, junior college, or
university, or a playground, or housing facility owned by a public housing authority, or
within 100 feet of a public or private youth center, public swimming pool, or video arcade
facility, is (except as provided in subsection (b)) subject to (1) twice the maximum punishment
authorized by section 401(b) [21 USCS § 841(b)], and (2) at least twice any term of supervised
release authorized by section 401(b) [21 USCS § 841(b)] for a first offense. A fine up to twice that
authorized by section 401(b) [21 USCS § 841(b)] may be imposed in addition to any term of
imprisonment authorized by this subsection. Except to the extent a greater minimum sentence is
otherwise provided by section 401(b) [21 USCS § 841(b)], a person shall be sentenced under this
subsection to a term of imprisonment of not less than one year. The mandatory minimum
sentencing provisions of this paragraph shall not apply to offenses involving 5 grams or less of
marijuana.
TAXES/STATE OF COLORADO: There are three taxes for retail marijuana in Colorado: a 2.9% state
sales tax, a 15% marijuana retail sales tax (not applicable to medical marijuana), and a 15% excise tax.
These monies are distributed to local entities, public schools, the state’s general fund, and a Marijuana Tax
Cash Fund (funding health care, monitoring marijuana health effects, health education, substance abuse
prevention and treatment programs, and law enforcement).
Page 3 of 6
Source: Colorado Department of Education
TAXES/PEER MUNICIPALITIES: There are diverse tax structures in the area. Below is a breakdown of
tax burdens for a $100 purchase in various nearby communities. Staff found a 5% local marijuana tax to be
the most common rate for municipalities within the state.
County retail marijuana
sales in 2020, in millions
Eagle $22.80
Garfield $29.20
Pitkin $14.40
Source: Colorado
Department of Revenue
Colorado marijuana tax
revenue, in millions
2021 $423.46
2020 $387.50
2019 $302.50
2018 $266.50
2017 $247.40
2016 $193.60
2015 $130.40
2014 $67.6
Source: Colorado
Department of Revenue
Page 4 of 6
TAXES/EAGLE COUNTY: Eagle County has six (6) sales tax filers and five (5) excise (production) tax
filers. Total marijuana sales and excise collections for 2020 was $773,113 at a rate of 2.5%. Assuming
one to two retail locations in Avon, staff estimates $250,000 to $500,000 in sales tax contributions based on
a 5% Marijuana and 4% retail sales tax rate respectively. See the attached (“Attachment B”) Eagle County
report for more detailed analysis of month-over-month sales data for Eagle County collections.
ANALYSIS: With a high concentration of marijuana businesses Eagle-Vail, it is not conspicuous to visitors
that the Town of Avon prohibits marijuana businesses. Assuming Beaver Creek vacationers make up a
large share of retail marijuana sales, many shoppers already pass-through Avon and shop at addresses
labeled “Avon”, in Eagle-Vail.
Avon’s valley floor includes many custom zone districts called Planned Unit Developments (“PUD”). If the
Town allows marijuana businesses, any location with PUD zoning (i.e. Chapel Square) that is eligible for
marijuana businesses would need to be custom modified to accommodate the use. That is, a Minor PUD
amendment would need to be processed and approved by Town Council prior to any marijuana business
opening in a PUD-zoned property.
Additional locational requirements should include:
• Special Review Use regulations, whereby aesthetic and community characteristics could be
considered
• Distancing between marijuana businesses
• Distance from schools
• Distance from other uses
• Distance from public facilities
• Cap of the number of licenses issued (e.g., only 2 marijuana dispensaries and only 2 production
facilities allowed)
Additional aesthetic requirements could include:
• Design requirements for signage
• Lighting standards
• Store names
• Storefront design
Breckenridge Town of Eagle Carbondale Silverthorne Basalt
TOTAL TAX 25.98$ 23.50$ 25.50$ 25.48$ 25.30$
TAX BREAK DOWN
STATE 15.00$ 15.00$ 15.00$ 15.00$ 15.00$
COUNTY 2.00$ 1.50$ 1.00$ 2.00$ 1.00$
SPECIAL DISTRICT
Mass Transportation 0.75$ 1.00$ 0.75$ 1.30$
Housing Authority 0.73$ 0.73$
TOWN-SALES 2.50$ 4.50$ 3.50$ 2.00$ 3.00$
TOWN-MARIJUANA 5.00$ 2.50$ 5.00$ 5.00$ 5.00$
Page 5 of 6
Example of store without strong design controls Aesthetically pleasing storefront with design standards
BUFFERS: Federal penalty regulations applying to schools and playgrounds require 1,000 feet of
separation, although as noted above in Eagle County’s regulations, local jurisdictions have control over
those requirements. Assuming a 500-foot buffer (commonly accepted in other Colorado Municipalities)
from schools and playgrounds is deemed appropriate for Avon, the attached map (“Attachment C”)
illustrates that there are commercially zoned parcels with potential to host marijuana businesses between
Avon Road and Chapel square in “East Avon”, and the small area of Neighborhood Commercial (“NC”)
zoned parcels near the Interstate 70 Interchange .
PROCESS: The Town Council has the option to modify land use regulations to permit retail marijuana by
Ordinance. If there are changes to taxes, the Taxpayers Bill of Rights (“TABOR”) requires a vote of the
electorate. It is common and convenient to ask voters for consideration of use and tax at the same time. If
a ballot question were pursued, the following dates are worth noting:
August 9 Last regularly scheduled Town Council meeting to introduce first reading of an
ordinance to refer ballot question and self-execute implementation of use tax upon
approval.
August 23 Last regularly scheduled Town Council meeting in which to adopt a resolution
certifying ballot content to the County Clerk and Recorder.
September 7 Last day to certify the ballot content to the County Clerk and Rec order.
November 8 General Election.
RECCOMENDATION: I recommend pursuing a ballot question and specific language on how the excise
tax funds would be utilized. Public health and education programs are the most common uses of marijuana
tax funds.
Page 6 of 6
OPTIONS:
• Delay action until next year
• Proceed with Ordinance to introduce land use controls and licensing regulations with no ballot
question on use and/or tax
• Proceed with Ballot process this summer for fall election to determine 1) voter acceptance of use,
and 2) excise tax
Thank you, Matt
ATTACHMENT A: Municipal Retail Marijuana Status Summary
ATTACHMENT B: Eagle County Tax Report
ATTACHMENT C: Avon Buffer Analysis for Marijuana Businesses
Sales Cultivation Manufacturing Testing Delivery On-site
Consumption Tax Information Notes Site/Code
Aguilar Aguilar Municipal Code
Akron Akron Municipal Code
Alamosa √5% sales tax on retail sales (not currently
allowed)Alamosa Municipal Code
Alma √√√√Alma Municipal Code
Antonito √Antonito Retail Store
Arriba Permanent moratorium.Link to Town Ordinances
Arvada Arvada Municipal Code
Aspen √√√√Aspen Municipal Code
Ault Ault Municipal Code, Chapter 9.34
Aurora √√√√√5% excise tax, 4% sales tax on retail with
authority up to 10%Aurora Marijuana Enforcement Division
Avon Avon Municipal Code
Basalt √5% sales tax on retail marijuana Basalt Municipal Code
Bayfield $10 per retail transaction (sales not
currently allowed)Bayfield Municipal Code
Bennett Bennett Municipal Code
Berthoud √7% sales and excise tax on retail sales Berthoud Municipal Code (Retail marijuana
not yet codified)
Bethune
Black Hawk √5% sales on retail and medical Black Hawk Municipal Code
Blanca √√5% excise on sale or transfer of
unprocessed retail marijuana in CML files
Blue River Blue River Municipal Code
Boone
Boulder √√√√5% excise tax, 3.5% sales tax Boulder Municipal Code
Bow Mar Bow Mar Municipal Code
Branson
Breckenridge √√√5% excise tax on all sales of marijuana Breckenridge Municipal Code
Brighton Rejected by voters November 2021 Brighton Municipal Code
Brookside Brookside Marijuana Ordinance
Broomfield √√√5% excise tax
Prohibition ordinance for cult and mfg
set to repeal on 4/1/25
Broomfield Municipal Code
Brush Brush Municipal Code
Buena Vista √5% sales tax with authority up to 15%Approved by voters November 2020 Buena Vista Municipal Code
Burlington Rejected by voters April 2022 Burlington Municipal Code
Calhan Calhan Zoning Code
Campo CML Files
Cañon City 5% excise and sales, authority up to 10%Moratorium with Ordinance 7-2014 Canon City Ordinances
Carbonate
Carbondale √√√√sales tax 5%, excise tax 5%Carbondale Municipal Code
Castle Pines Castle Pines Zoning Ordinance Section 206
Castle Rock Castle Rock Municipal Code
Cedaredge √5% sales tax Approved by voters November, 2020 Cedaredge Municipal Code
Centennial Centennial Municipal Code
Center Defeated by voters 11/19
Central City √5% on retail sales Central City Municipal Code
Municipal Retail Marijuana Status
ATTACHMENT A - COLORADO SUMMARY OF MUNICIPALITIES AND MARIJUANA
Sales Cultivation Manufacturing Testing Delivery On-site
Consumption Tax Information Notes Site/Code
Municipal Retail Marijuana Status
Cheraw
Cherry Hills Village Cherry Hills Municipal Code
Cheyenne Wells CML Files
Coal Creek CML Files
Cokedale
Collbran Permanent moratorium Collbran Municipal Code
Colorado Springs √Colorado Springs Municipal Code
Columbine Valley
Commerce City √√√√7% sales tax, 5% excise tax Commerce City Municipal Code
Cortez √√√Cortez Municipal Code
Craig √√√√up tp 4% sales tax Approved by voters 11/19 Craig Municipal Code
Crawford 5% sales with authority up to 10, 5%
excise (sales not currently allowed)Crawford Marijuana Ordinances
Creede Creede Ordinance 375
Crested Butte √√√Crested Butte Municipal Code
Crestone √5% sales tax CML Files
Cripple Creek Cripple Creek Municipal Code
Crook
Crowley
Dacono Dacono Municipal Code
De Beque √√√√5% excise tax on sale and cultivation Marijuana Page on De Beque Website
Deer Trail
Del Norte Del Norte Municipal Code
Delta 5% excise, 2% sales (sales not currently
allowed)Delta Municipal Code
Denver √√√√√√5.5% sales tax, authorized up to 15%
approved delivery 4/21 to start by
summer
Link to Denver's Marijuana Business
Licenses Page
Dillon √5% sales tax; 5% excise Dillon Municipal Code
Dinosaur √√√√5% excise, 10% sales Dinosaur Ordinance 3
Dolores √√√√$5 occupation tax per sales transaction;
5% excise Approved by voters 4/20
Dove Creek
Durango √√3% sales tax Durango Municipal Code
Eads
Eagle √√√√2.5% sales and 2.5% excise each
increasing .5%/year up to 5%Link to Eagle Marijuana Regulations Page
Eaton Eaton Municipal Code
Eckley Voted down 11/2020
Edgewater √√√√Edgewater Municipal Code
Elizabeth Elizabeth Municipal Code
Empire √√√$5/transaction Empire Ordinance 238
Englewood √3.5% with authority up to 5%Englewood Municipal Code
Erie Erie Municipal Code
Estes Park Voted down 12/19 Estes Park Municipal Code
Evans Evans Municipal Code
Fairplay Fairplay Municipal Code
Federal Heights √√√√5% sales tax with authority up to 10%, 5%
excise tax with authority up to 10%Federal Heights Marijuana Ordinance
Firestone Firestone Municipal Code
Flagler Prohibited (per email)
Fleming
ATTACHMENT A - COLORADO SUMMARY OF MUNICIPALITIES AND MARIJUANA
Sales Cultivation Manufacturing Testing Delivery On-site
Consumption Tax Information Notes Site/Code
Municipal Retail Marijuana Status
Florence √5% excise tax on wholesale Florence Municipal Code
Fort Collins √√√√Link to Fort Collins Marijuana Page
Fort Lupton √3.1% sales tax with authority up to 10%Approved by voters November, 2020 Fort Lupton Marijuana Ordinance
Fort Morgan Fort Morgan Municipal Code
Fountain Fountain Municipal Code
Fowler Fowler Municipal Code
Foxfield Foxfield Municipal Code
Fraser √5% sales tax Fraser Municipal Code
Frederick Frederick Municipal Code - Chapter 6
Frisco √√√5% sales tax Frisco Taxation Code
Fruita 5% excise tax Fruita Ordinance 2013-13
Garden City √√√√Garden City Municipal Code
Genoa
Georgetown √√$5/transaction Georgetown Municipal Code
Gilcrest Gilcrest Municipal Code
Glendale √√√√√1.85% sales tax Glendale Municipal Code
Glenwood Springs √√√√sales tax: 5% up to 15%, excise tax: 5%Glenwood Springs Municipal Code
Golden √6% sales tax Approved by voters November 2021 Golden Municipal Code
Granada
Granby Granby Municipal Code - Chapter 16
Grand Junction √√√√5% sales tax, up to 15%; 3% excise tax,
up to 10%Approved by voters April 2021 Grand Junction Marijuana Licensing Page
Grand Lake Grand Lake Municipal Code - Chapter 7
Greeley Greeley Municipal Code
Green Mountain Falls Green Mountain Falls Ordinance 01-2013
Greenwood Village Greenwood Village Municipal Code
Grover
Gunnison √√√√5% sales tax, 5% excise tax Gunnison Municipal Code
Gypsum Gypsum Municipal Code
Hartman
Haswell
Haxtun
Hayden √√7.5% excise tax with authority up to 15%Hayden Municipal Code
Hillrose
Holly Holly Marijuana Prohibition Ordinance
Holyoke Holyoke Ord. 7-2016
Hooper Rejected by voters April 2022
Hot Sulphur Springs Hot Sulphur Springs - Ordinance
Hotchkiss 2% sales tax (up to 10%) in event sales
are permitted by election CML Files
Hudson Hudson Land Development Code - Chapter
16
Hugo Hugo Ordinance 237
Idaho Springs √√5% excise tax Idaho Springs Municipal Code
Ignacio Rejected by voters April 2022 Ignacio Ordinance 308 - Permanent Ban
Iliff
ATTACHMENT A - COLORADO SUMMARY OF MUNICIPALITIES AND MARIJUANA
Sales Cultivation Manufacturing Testing Delivery On-site
Consumption Tax Information Notes Site/Code
Municipal Retail Marijuana Status
Jamestown Permanent moratorium Jamestown Ordinance 2013-01
Johnstown Johnstown Ordinance 2016-143
Julesburg
Keenesburg Keenesburg Municipal Code
Kersey Kersey Municipal Code
Kim
Kiowa Voted down 11/2020 Kiowa Municipal Code - Chp. 6
Kit Carson
Kremmling
La Jara
La Junta La Junta Municipal Code
La Salle CML Files
La Veta √√√√Rejected by voters April 2022 La Veta Municipal Code
Lafayette √√√√sales and excise tax 5%; up to 10%Lafayette Municipal Code
Lake City Lake City Municipal Code
Lakeside
Lakewood √√Approved by voters November 2020 Lakewood Municipal Code
Lamar
Approved by voter initiative November
2021; Election results nullified in March
2022 because petition requirements
were not met Lamar Municipal Code - Chp. 6
Larkspur Larkspur Municipal Code
Las Animas √√√√5.75% sales tax; 5% excise tax, up to
10%Approved November 2018 election
Leadville √√√√5% excise tax, up to 10%Leadville Municipal Code
Limon Limon Municipal Code
Littleton √Special 3% sales tax on retail Approved by voters November 2020 Littleton Municipal Code - Chp. 21
Lochbuie Lochbuie Municipal Code
Log Lane Village √√√√5% excise tax
Lone Tree Lone Tree Municipal Code
Longmont √3.5% sales tax; 3% excise tax with
authority up to 15%Longmont Marijuana Ordinance
Louisville √√√5% excise tax on cultivation Louisville Municipal Code
Loveland Defeated by voters 11/19 Loveland Municipal Code - 7.65.20
Lyons √√√√3.5% sales; 5% excise tax; both up to
10%Lyons Municipal Code
Manassa
Mancos √√√√occupation tax up to $10/transaction Mancos Municipal Code
Manitou Springs √√6%, authority up to 10%cultivation and manufacturing prohibited Manitou Springs Municipal Code
Manzanola
Marble Marble Ordinance 8-2014
Mead Defeated by voters 11/19, 11/21 Mead Municipal Code
Meeker Meeker Municipal Code
Merino
Milliken √√√√occupation tax up to $10/transaction Milliken Municipal Code
Minturn Minturn Municipal Code
Moffat √√√2% sales tax first year, increasing to 5% in
year two CML Files
ATTACHMENT A - COLORADO SUMMARY OF MUNICIPALITIES AND MARIJUANA
Sales Cultivation Manufacturing Testing Delivery On-site
Consumption Tax Information Notes Site/Code
Municipal Retail Marijuana Status
Monte Vista 18% excise tax, 18% sales tax Monte Vista Municipal Code
Montezuma Montezuma Ordinance 3-2014
Montrose Montrose Ordinance 2321
Monument Monument Municipal Code
Morrison √6.25% sales tax, with authority up to
11.25%Morrison Municipal Code
Mountain View √√√√5% sales tax Mountain View Marijuana Ordinance
Mountain Village CML Files
Mt. Crested Butte Mt. Crested Butte Chp. 21
Naturita √√√√2% sales tax, with authority up to 10;
excise tax of 5%
Nederland √√√3.75% sales tax Nederland Municipal Code
New Castle New Castle Municipal Code
Northglenn √√√√4% sales tax, up to 10%Delivery approved June 2021 Northglenn Municipal Code
Norwood √√√2% sales tax, up to 10%; 5% excise tax Approved by voters 4/20
Nucla
Nunn √5% excise tax CML Files
Oak Creek √√√√Oak Creek Municipal Code
Olathe Olathe Municipal Code, Title IV, Chapter 4
Olney Springs CML Files
Ophir
Orchard City
up to 5% sales tax, up to 5% excise tax,
up to $10 occupation tax for each sale
transaction Orchard City July 2017 Minutes
Ordway √√√Ordway Municipal Code
Otis Otis Ordinance 173
Ouray 5% with authority up to 10%Ouray Council Minutes
Ovid
Pagosa Springs √√Pagosa Springs Municipal Code
Palisade √√√√
5% excise tax; Occupation tax of $5.00 for
each sales transaction that is less than
$100, $10.00 for each sales transaction
between $100.00 and $500.00 and $25.00
for each sales transaction of $500.00 or
more Link to Palisade Marijuana Information
Palmer Lake √
5% sales tax with authority up to 10%
(sales not currently allowed); 5% excise
tax with authority up to 10%Palmer Lake Municipal Code, Section 5.40
Paoli
Paonia √
excise and sales tax of 5%, both with
authority up to 10%; $5.00 occupation tax
per sales transaction Approved by voters November 2020 Paonia Ordinance 2021-01
Parachute √√√√√√5% excise tax Parachute Municipal Code
Parker Parker Municipal Code
Peetz CML Files
Pierce CML Files
Pitkin CML Files
Platteville Platteville Municipal Code
ATTACHMENT A - COLORADO SUMMARY OF MUNICIPALITIES AND MARIJUANA
Sales Cultivation Manufacturing Testing Delivery On-site
Consumption Tax Information Notes Site/Code
Municipal Retail Marijuana Status
Poncha Springs 5% sales tax; 5% excise tax (sales not
currently allowed)Poncha Springs Ordinance 2013-1
Pritchett
Pueblo √√√√8% excise tax with authority up to 15%Pueblo Municipal Code
Ramah
Rangley
Raymer
Red Cliff √√√√5% sales tax, 15% excise tax CML Files
Rico √√√√
10% sales and 10% excise on
unprocessed retail marijauna sold or
transferred from cultivation facility to retail
facility Rico Marijuana Ordinance
Ridgway √√√√Ridgway Municipal Code
Rifle √√5% excise tax Rifle Municipal Code
Rockvale
Rocky Ford √6% sales tax with authority up to 8%Rocky Ford Municipal Code
Romeo √√√√Approved by voters November 2020
Rye
Saguache Saguache Ordinance 2013-1
Salida √Salida Municipal Code
San Luis √√√San Luis Municipal Code
Sanford
Sawpit
Sedgwick √√√√
5% sales tax; 2% excise tax on cultivation;
occupation tax of $5-$25 per wholesale
manufacturing transaction In CML files
Seibert
Severance 7% sales tax (sales not currently allowed)Severance Municipal Code
Sheridan 5% excise Sheridan Municipal Code
Silt √√√√3.5% retail sales Silt Municipal Code
Silver Cliff
Silver Plume √4% and no greater than 8%Silver Plume Ordinance 335/336
Silverthorne √√5% excise tax on mj and products Silverthorne Municipal Code
Silverton √√√√1% sales tax and 3% excise tax Silverton Municipal Code
Simla Simla Municipal Code - Chp. 2
Snowmass Village √5% sales tax, up to 15% Ordinance 3, Series 2019
South Fork 5% sales tax South Fork Ordinance 15-06
Springfield
Starkville
Steamboat Springs √√√√Steamboat Springs Municipal Code
Sterling
Stratton CML Files
Sugar City √
Superior √Superior Municipal Code
Swink
Telluride √√√√Telluride Municipal Code
Thornton √√√5% sales tax Approved delivery April 2021 Thornton Municipal Code
Timnath Timnath Municipal Code
Trinidad √√√√5% sales tax Trinidad Marijuana Licensing Application
ATTACHMENT A - COLORADO SUMMARY OF MUNICIPALITIES AND MARIJUANA
Sales Cultivation Manufacturing Testing Delivery On-site
Consumption Tax Information Notes Site/Code
Municipal Retail Marijuana Status
Two Buttes
Vail Vail Municipal Code
Victor Victor Municipal Code
Vilas
Vona
Walden CML Files
Walsenburg √√√√5% excise tax Link to Walsenburg's Marijuana Page
Walsh
Ward
Wellington √3.5% sales tax, up to 5%Approved by voters November 2021
Westcliffe Westcliffe Municipal Code
Westminster voters approved businesses in 11/21
but will not go into effect because was
contingent on tax that failed Westminster Municipal Code
Wheat Ridge √√√√3.5% sales tax Wheat Ridge Municipal Code
Wiggins Wiggins Marijuana Ordinance
Wiley
Williamsburg Prohibited by Chapter 2 Article II of Code
Windsor Windsor Municipal Code
Winter Park √5% sales tax sales approved by ordinance 7/2021 to
begin 2022 Winter Park Municipal Code
Woodland Park Woodland Park Municipal Code
Wray voters rejected mfg 11/21
Yampa
Yuma 5% sales tax with authority up to 10 (sales
not currently allowed)Yuma Municipal Code
√
Totals:93 64 58 57 7 4
Permitted
ATTACHMENT A - COLORADO SUMMARY OF MUNICIPALITIES AND MARIJUANA
Eagle County Sales Tax Report
1% Sales Tax Charts
YTD Comparison to Budget
Monthly Trend (Actuals)
Marijuana Sales and Excise Charts
YTD Comparison to Budget
Monthly Trend (Actuals)
Tobacco Tax Charts
YTD Comparison to Budget
Monthly Trend (Actuals)
ATTACHMENT B - EAGLE COUNTY TAXES
Eagle County Sales Tax Report
Eagle County 1% Sales Tax Collections
Eagle County 1% Sales Tax Collections Year to Date Cumulative
●In 2020, sales tax revenue was $20 million, 2% over the 2020 budget.
●Through August 2021, sales tax revenue was $16.4 million, 40% over budget of 11.7 million.
●In the month of August 2021 sales tax revenue of $2.16 million was 24% ($415k) higher than the same month in 2020.
●Through August 2021, all towns saw sales tax collections higher than through the same months in 2020.
Actual Actual Actual Budget Actual
Comparing Current Actual
to Prior Year Actual
Comparing Current
Actual to Budget
Month Earned 2018 2019 2020 2021 2021 $ % $ %
January $1,831,918 $2,142,674 $2,327,987 $1,909,555 $2,089,797 -$238,190 -10.23% $180,242 9.44%
February $2,004,963 $2,153,604 $2,306,354 $1,909,555 $2,194,808 -$111,546 -4.84% $285,253 14.94%
March $2,206,073 $2,350,403 $1,345,046 $2,083,151 $2,679,539 $1,334,493 99.22% $596,388 28.63%
April $995,067 $1,128,768 $1,134,287 $954,778 $1,451,386 $317,098 27.96% $496,608 52.01%
May $881,308 $923,895 $1,058,531 $867,979 $1,373,919 $315,389 29.79% $505,940 58.29%
June $1,291,807 $1,326,148 $1,353,987 $1,128,373 $1,989,419 $635,432 46.93% $861,046 76.31%
July $1,569,081 $1,808,130 $1,744,154 $1,475,565 $2,464,403 $720,249 41.30% $988,838 67.01%
August $1,412,056 $1,629,209 $1,739,801 $1,388,767 $2,155,111 $415,310 23.87% $766,344 55.18%
September $1,212,531 $1,466,687 $1,658,841 $1,215,171 0.00% 0.00%
October $1,040,956 $1,256,502 $1,441,852 $1,041,575 0.00% 0.00%
November $1,007,993 $1,488,894 $1,409,161 $1,128,373 0.00% 0.00%
December $2,347,161 $2,748,128 $2,527,242 $2,256,746 0.00% 0.00%
Total $17,800,915 $20,423,043 $20,047,243 $17,359,588 $16,398,381 $3,388,234 $4,680,658
% Increase
(Decrease) 7.81% 14.73% -1.84%
Actual Actual Actual Budget Actual
Comparing Current Actual
to Prior Year Actual
Comparing Current
Actual to Budget
Month Earned 2018 2019 2020 2021 2021 $ % $ %
January $1,831,918 $2,142,674 $2,327,987 $1,909,555 $2,089,797 -$238,190 -10.23% $180,242 9.44%
February $3,836,881 $4,296,277 $4,634,341 $3,819,110 $4,284,605 -$349,736 -7.55% $465,495 12.19%
March $6,042,954 $6,646,681 $5,979,387 $5,902,261 $6,964,144 $984,757 16.47% $1,061,883 17.99%
April $7,038,022 $7,775,449 $7,113,674 $6,857,039 $8,415,530 $1,301,855 18.30% $1,558,491 22.73%
May $7,919,330 $8,699,344 $8,172,205 $7,725,018 $9,789,449 $1,617,244 19.79% $2,064,431 26.72%
June $9,211,137 $10,025,492 $9,526,192 $8,853,391 $11,778,868 $2,252,676 23.65% $2,925,477 33.04%
July $10,780,218 $11,833,622 $11,270,346 $10,328,956 $14,243,270 $2,972,924 26.38% $3,914,314 37.90%
August $12,192,274 $13,462,831 $13,010,147 $11,717,723 $16,398,381 $3,388,234 26.04% $4,680,658 39.95%
September $13,404,805 $14,929,518 $14,668,988 $12,932,894 0.00% 0.00%
October $14,445,761 $16,186,021 $16,110,840 $13,974,469 0.00% 0.00%
November $15,453,754 $17,674,915 $17,520,001 $15,102,842 0.00% 0.00%
December $17,800,915 $20,423,043 $20,047,243 $17,359,588 0.00% 0.00%
ATTACHMENT B - EAGLE COUNTY TAXES
Eagle County Sales Tax Report
MJ Sales and Excise Tax Collections
MJ Sales and Excise Tax Collections Year to Date Cumulative
●In 2020, MJ tax collected was $773k, 29% over the budget of $600k.
●Through August 2021, MJ tax collected was $561k, 9% over the budget of $515k.
●In August 2021 MJ tax revenue of $64k was 22% ($17.5k) lower than the same month in 2020.
Actual Actual Actual Budget Actual
Comparing Current
Actual to Prior Year
Actual
Comparing Current
Actual to Budget
Month
Earned 2018 2019 2020 2021 2021 $ % $ %
January $33,458 $47,906 $64,602 $62,671 $90,969 $26,367 40.81% $28,298 45.15%
February $37,804 $54,555 $63,592 $61,690 $77,863 $14,272 22.44% $16,173 26.22%
March $47,285 $79,409 $71,829 $69,682 $89,305 $17,476 24.33% $19,623 28.16%
April $28,467 $57,925 $43,653 $42,348 $59,461 $15,807 36.21% $17,113 40.41%
May $17,202 $35,804 $42,842 $41,562 $42,942 $99 0.23% $1,380 3.32%
June $33,141 $43,929 $64,807 $62,869 $63,042 -$1,764 -2.72% $173 0.28%
July $36,786 $57,042 $98,051 $95,120 $73,735 -$24,317 -24.80% -$21,385 -22.48%
August $37,917 $55,172 $81,436 $79,001 $63,880 -$17,556 -21.56% -$15,121 -19.14%
September $30,673 $44,673 $67,270 $65,259 0.00% 0.00%
October $26,202 $24,382 $51,127 $49,599 0.00% 0.00%
November $26,178 $40,373 $47,693 $46,267 0.00% 0.00%
December $43,056 $117,185 $76,211 $73,932 0.00% 0.00%
Total $398,170 $658,354 $773,113 $750,000 $561,197 $30,384 $46,254
% Increase
(Decrease) 65.35% 17.43%
Actual Actual Actual Budget Actual
Comparing Current
Actual to Prior Year
Actual
Comparing Current
Actual to Budget
Month Earned 2018 2019 2020 2021 2021 Month $ Month % Month $ Month %
January $33,458 $47,906 $64,602 $62,671 $90,969 $26,367 40.81% $28,298 45.15%
February $71,262 $102,461 $128,194 $124,361 $168,832 $40,638 31.70% $44,471 35.76%
March $118,548 $181,870 $200,023 $194,043 $258,138 $58,115 29.05% $64,095 33.03%
April $147,015 $239,795 $243,676 $236,391 $317,598 $73,922 30.34% $81,207 34.35%
May $164,217 $275,598 $286,519 $277,953 $360,540 $74,021 25.83% $82,587 29.71%
June $197,358 $319,527 $351,326 $340,822 $423,582 $72,257 20.57% $82,760 24.28%
July $234,144 $376,569 $449,377 $435,942 $497,317 $47,940 10.67% $61,375 14.08%
August $272,061 $431,742 $530,813 $514,943 $561,197 $30,384 5.72% $46,254 8.98%
September $302,734 $476,414 $598,083 $580,202 0.00% 0.00%
October $328,936 $500,797 $649,210 $629,801 0.00% 0.00%
November $355,113 $541,169 $696,903 $676,068 0.00% 0.00%
December $398,170 $658,354 $773,113 $750,000 0.00% 0.00%
ATTACHMENT B - EAGLE COUNTY TAXES
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Buffer Analysis
for Marijuana Businesses
This map was created by the Eagle County GIS Department.
Use of this map should be for general purpose only.
Eagle County does not warrant the accuracy of the data
contained herein.
0 2,000 4,000Feet
1 inch = 2,000 feet
Parcel Boundary
1,000 ft Buffer from School or Preschool
(no marijuana facilities in accordance with
federal regulations in these buffers)
500 ft Buffer from School or Public Park
(no marijuana facilities in accordance with
federal regulations in these buffers)
ATTACHMENT C
[970] 748-4055 swright@avon.org
TO: Honorable Mayor Smith Hymes and Council members
FROM: Scott Wright, Finance Director; Eric Heil, Town Manager
RE: Use Tax on Construction Materials
DATE: April 27, 2022
SUMMARY: This report is a follow-up to last year’s presentations to Council regarding use tax on construction
materials. Last year’s report, which is attached to this report as Attachment C, introduced to Council a
possible means for funding Community Housing projects through the assessment of a use tax on construction
materials. The report also provided an analysis of the various other types of use taxes, including motor vehicle
use tax and consumer use tax. Neither of these were recommended or pursued by staff or Council.
Ultimately Town Council decided to place on the November 2021 ballot a 2% Short -term Rental Tax to be
earmarked for Community Housing and the idea of a use tax on construction materials was requested by
Council to be brought back for discussion in 2022.
This report uses the report from last year as a foundation with a few key revisions. First, since the 2% Short -
term Rental Tax Community housing passed last year, it is staff’s recommendation to no longer earmark the
revenues that would be collected from the proposed use tax. Secondly, staff has addressed the concern of
some Council members regarding the impact to local citizens and is recommending an exemption of the
collection of a use tax on projects requiring a building permit of less than $50,000.
Implementing a use tax on construction materials is a change in tax policy that increases revenues and as
such would be required to be approved by the Town’s electorate in a TABOR election.
Critical dates pursuant to TABOR include the following:
(1) August 9. Last regularly scheduled Town Council meeting to introduce first reading of an
ordinance to refer ballot question and self-execute implementation of use tax upon
approval.
(2) August 23 Last regularly scheduled Town Council meeting in which to adopt a resolution
certifying ballot content to the County Clerk and Recorder.
(3) September 7. Last day to certify the ballot content to the County Clerk and Recorder.
(4) November 8. General Election.
BACKGROUND: A large number of cities and counties in Colorado levy a use tax on building materials
including Eagle, Gypsum, Vail, Steamboat Springs and Grand Junction . The benefits of a use tax on
construction materials include the following:
(1) Generates fairness and simplicity in the imposition of the tax;
(2) Helps to eliminate unfair competition using tax rates as a reason to shop outside of Avon;
(3) Reduces tax liabilities for sub-contractors;
(4) Retains tax dollars in the community where the burden on Town facilities and services is placed;
(5) Eases the administrative burden of collection;
Current Methodology for the Collection of Sales Tax on Building Materials The Town of Avon imposes
a sales tax on building materials. However, the administrative burden of collection is extremely high and very
ineffective. Most of the current collections of sales tax on construction materials is generated and remitted
Page 2 of 3
by located Avon retailers such as Home Depot, and local Eagle County retailers such as Edwards Building
Supply due to the fact that they have established physical nexus with the Town of Avon. For example, when
a purchase is made from Edwards Building Supply and the materials are to be delivered into Avon, the retailer
will collect and remit Avon sales tax.
The administrative burden (and headache for contractors and developers) comes from project whereby the
materials are being purchased from outside of Eagle County or the State of Colorado Sales tax is not typically
collected on these materials by the vendor. In these instances, sales tax would be due to the Town by either
a general contractor or sub-contractor at the time the materials are delivered to the job site. The fact of the
matter is that most of the time tax is not remitted to the Town and Town staff has little or no knowledge of the
transactions taking place in order to follow-up with the contractor. And if staff does have the information, it
is often very difficult to track down out-of-town contractors or to have any sort of leverage to require them to
remit the taxes due.
Construction Materials Use Tax A construction use tax is a form of use tax levied on building materials.
The use tax is collected at the time a building permit is issued. The use tax amount is determined by
multiplying the use tax rate by the cost of the building materials using a predetermined formula. A common
method is to determine that the cost of building materials to be fifty percent (50%) of the total valuation of the
construction project. The builder then provides the building permit to the materials supplier to prove that use
tax has already been paid, and then is exempt from paying a corresponding municipal sales tax in other
locations.
The administrative burden of collection under a use tax methodology is greatly reduced. In addition, the
Town would have the authority when necessary to reconcile the final cost of a project versus the initial value
placed on the project for permit purposes.
FINANCIAL CONSIDERATIONS: Based on the Town’s 10-year average of the total value of building
construction of $32,772,355, a 4% use tax on construction materials would have generated an average of
$655,447 per annum in revenue. It should be noted that because the Town (excluding The Village (at Avon))
has only a few remaining vacant parcels for large potential developments remaining, the level of use tax from
the past ten years might not be an accurate representation of the potential use tax that might be realized in
the future. Redevelopment of East Avon Town Center and other underdeveloped prop erties in the Town core
may provide additional use tax revenues.
Village At Avon (Traer Creek Metro District). The Consolidated Amended and Restated Annexation and
Development Agreement (“CARADA”) specifically contemplates that the Town may, at some point, impose
a use tax. In the event a use tax is imposed, a corresponding “use tax credit” will automatically be applied to
any transaction subject to the use tax. The CARADA also contemplates th at Traer Creek may impose a
building materials fee if the Town imposes a use tax. The CARADA is silent as to whether the building
materials fee must be used for the same purposes as the use tax. The CARADA does provide the Town
must coordinate with Traer Creek regarding the implementation of any use tax, so the To wn will need to
further explore the building materials fee with Traer Creek.
Based on 1,835 remaining residential dwelling units (at 1,500 sq. ft. each) and 470,017 remaining commercial
square footage left to be developed. At $400 per sq. ft. construction cost the total taxable value (50% of total
construction value) is $644,503,400. Therefore the potential use tax revenue generation is estimated to be
in excess of $25 million using a 4% tax rate. Given the existing debt of approximately $75 million and the
Page 3 of 3
remaining Credit PIF Cap of over $21 million, the additional use tax revenues could make a meaningful
reduction in the term of the life of this debt.
SAMPLE BALLOT LANGUAGE: A draft of the use tax ballot question language is included with this
Report as Attachment A. As mentioned above, there is not restriction to use of the revenues generated
from a use tax.
USE TAX CODE: A draft of the proposed Use Tax Code Chapter 3.09 is included with this Report as
Attachment B. An ordinance approving the new Chapter would be presented to Council for first reading
upon adopting a resolution certifying the ballot content to the County Clerk and Recorder.
RECOMMENDATION: We recommend that Council provide direction regarding the possible adoption,
either by resolution or by ordinance, of a construction materials use tax ballot question to be certified to the
Eagle County Clerk and Recorder for inclusion in the November 8, 2022, general election.
Thank you, Scott and Eric
ATTACHMENTS:
Attachment A – Draft - Use Tax Ballot Question
Attachment B – Draft - Use Tax Code Chapter 3.09
Attachment C – 2021 Council Report
SAMPLE USE TAX BALLOT QUESTION
SHALL TOWN OF AVON TAXES BE INCREASED $____ MILLION ($____________)
ANNUALLY IN 2023, AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED
ANNUALLY THEREAFTER, BY THE IMPOSITION OF A FOUR PERCENT (4%) USE TAX
ON THE PRIVILEGE OF USING OR CONSUMING IN THE TOWN ANY CONSTRUCTION
MATERIALS, SUCH USE TAX REVENUES TO BE APPROPRIATED AND SPENT FOR
ANY MUNICIPAL PURPOSE, IN ACCORDANCE WITH SUCH TERMS, CONDITIONS
AND POLICIES AS MAY BE ADOPTED BY THE AVON TOWN COUNCIL, ALL IN
ACCORDANCE WITH ORDINANCE NO. 22-____ ADOPTED BY THE TOWN COUNCIL;
AND SHALL THE REVENUES COLLECTED FROM SUCH TAX AND ANY EARNINGS
FROM THE INVESTMENT OF SUCH REVENUES BE COLLECTED AND SPENT AS A
VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH
WOULD OTHERWISE APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO
CONSTITUTION OR ANY OTHER LAW.
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CHAPTER 3.09 – Use Tax on Construction Materials
3.09.010 – Title, Purpose, and Applicability.
(a) This Chapter shall be known and may be cited as “The Town of Avon Use Tax on
Construction and Building Materials.”
(b) The purpose of this Chapter is to raise revenue for municipal purposes and provide a
complementary tax to the Town’s sales tax. The Town Council find that every person
who uses or consumes in the Town any construction and building materials is
exercising a taxable privilege.
(c) Subject only to the exemptions set out at Section 3.09.040, the use tax imposed herein
shall apply to any use or consumption in the Town of construction and building
materials purchased at retail on or after January 1, 2023.
3.09.020 – Definitions
When not otherwise clearly indicated by the context, the following words and phrases, as
used in this chapter, shall have the following meanings:
Building permit means a permit, issued by the Town, allowing the permit holder to
construct, enlarge, repair, move, demolish, or change the occupancy of a building or structure, or
to erect, install, enlarge, alter, repair, remove, convert, or replace any electrical, gas, mechanical ,
or plumbing system regulated by the adopted building codes of the Town. A building permit shall
not include any permit for demolition or dewatering.
Charitable organization means any entity which has been certified as a nonprofit
organization under Section 501(c)(3) of the Internal Revenue Code.
Construction equipment means any equipment, including mobile machinery and mobile
equipment, which is used to erect, install, alter, demolish, repair, remodel, or otherwise make
improvements to any real property, building, structure, or infrastructure, whether leased or owned.
Construction Materials means tangible personal property which, when combined with
other tangible personal property, loses its identity to become an integral and inseparable part of a
structure or project including public and private improvements. Construction Materials include,
but are not limited to, such things as: asphalt, bricks, builders' hardware, caulking material, cement,
concrete, conduit, electric wiring and connections, fireplace inserts, electrical heating and cooling
equipment, flooring, glass, gravel, insulation, lath, lead, lime, lumber, macadam, millwork, mortar,
oil, paint, piping, pipe valves and pipe fittings, plaster, plumbing fixtures, putty, reinforcing mesh,
road base, roofing, sand, sanitary sewer pipe, sheet metal, site lighting, steel, s tone, stucco, tile,
trees, shrubs and other landscaping materials, wall board, wall coping, wallpaper, weather
stripping, wire netting and screen, water mains and meters, and wood preserver. The above
materials, when used for forms, or other items which do not remain as an integral and inseparable
part of completed structure or project are not construction materials.
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Construction valuation means the total value of the work, including labor and construction
and building materials, for which a permit is issued, including leased construction equipment,
electrical, gas, mechanical, plumbing equipment and permanent systems, as determined by the
building department or building official.
Consumption means the act or process of consuming, and includes waste, destruction, or
use. Consumption is the normal use of property for the purpose for which it was intended.
Contractor means any person who shall build, construct, reconstruct, alter, expand, modify,
or improve any building, dwelling, structure, infrastructure, or other improvement to real property
for another party pursuant to an agreement. For purposes of this definition, Contractor also
includes subcontractor.
Director means the Director of Finance for the Town or such person’s designee.
Person means any individual, firm, partnership, joint venture, corporation, limited liability
company, estate or trust, receiver, trustee, assignee, lessee, or any person acting in a fiduciary or
representative capacity, whether appointed by court or otherwise, or any group or combination
acting as a unit.
Purchase or sale means the acquisition for any consideration by any person of tangible
personal property by way of purchase, lease, or rental, including capital leases, installment and
credit sales, and lease-purchase, rental or grant of a license to use, which consideration may include
money, exchange of property or services, or any other thing of value.
Purchase price means the aggregate value in money of anything or things paid or delivered
or promised to be paid or delivered by a purchaser to a retailer or any person in the consummation
of a retail sale as defined herein, without any deduction therefrom for the cost of the property sold,
cost of materials used, labor or service cost, or any other expense whatsoever, and provided that
when articles of tangible personal property are sold after manufacture or after having been made
to order, the gross value of all materials, labor, service, and profit thereon shall be included in the
purchase price; provided that the purchase price shall not include any direct tax imposed by the
United States government, the state, or this chapter.
Retail Sale or Purchased at Retail means any purchase or sale of tangible personal
property, except a wholesale sale or purchase made for taxable resale.
Taxpayer means any person obligated to collect and/or pay tax under this Code.
Town means the Town of Avon.
Use means the exercise, for any length of time, by any person with the Town of any right,
power or dominion over tangible personal property or services when rented, leased, or purchased
at retail from sources within or with the Town; or tangible personal property used in the
3
performance of a contract in the Town, whether or not owned by the taxpayer. Use also includes
withdrawal of items from inventory for consumption.
Wholesale sales mean a sale to a licensed retailer, jobber, dealer, or other wholesaler for
resale. Sales by wholesalers to consumers, including persons who use or consume construction
and building materials, as defined by this Section, are not wholesale sales. Sales by wholesalers to
non-licensed retailers are not wholesale sales.
Wholesaler means any person selling to retailers, jobbers, dealers, or other wholesalers, for
the purpose of resale and not for storage, use, consumption, or distribution.
3.09.030 – Use tax imposed.
(a) There is hereby imposed and levied in the Town, and shall be collected and paid, a use
tax on the privilege of using or consuming within the Town construction and building
materials of every kind and form purchased or leased inside or outside the Town.
(b) The use tax imposed by this Chapter shall be at the rate of four percent (4%) of the
cost of construction and building materials used or consumed in the Town, including
leased equipment. For purposes of this Chapter, the cost of construction and building
materials is deemed to be fifty percent (50%) of the construction valuation.
(c) Any construction and building material used or consumed on a project which has
received all final development review approvals required by Title 7 of the Avon
Municipal Code on or before December 31, 2022, shall not be subject to the use tax
imposed herein. If any approval expires by its terms after December 31, 2022, such
application for development review shall then be subject to the use tax imposed by
this Chapter.
3.09.040 – Exemptions.
The following are exempt from the use tax imposed by this chapter, provided that the list
of exemptions cannot be increased by implication or similarity and the burden of proof is upon the
taxpayer to establish an exemption:
(a) The use or consumption of construction and building materials the sale of which is
subject to a retail sales tax imposed by the Town;
(b) The use or consumption of construction and building materials purchased for resale
in the Town, either in their original form or as an ingredient of a manufactured or
compounded product, in the regular course of business;
(c) The use or consumption of construction and building materials by the United States
government; by the State, its departments or institutions or political subdivisions
thereof in their governmental capacities only; or by the Town; providing, however,
that no commercial, industrial or other banking institution, organized or chartered by
4
the United States government, any agency or department thereof, or by the State, shall
be considered a governmental institution for the purpose of this exemption;
(d) The use or consumption of construction and building materials by charitable
organizations in the conduct of their regular charitable functions; except that nothing
herein contained shall be deemed to exempt use of construction and building material
or supplies used by a contractor for the construction of an improvement for a
charitable organization;
(e) The use or consumption of construction and building materials by a person engaged
in the business of manufacturing or compounding for sale, profit, or use of any article,
substance, or commodity, which construction and building materials enters into the
processing of or becomes an ingredient or component part of the product or service
which is manufactured, compounded, or furnished, and the container, label, or the
furnished shipping case thereof;
(f) The use or consumption of construction and building materials if a written contract
for the purchase thereof was entered into prior to January 1, 2023;
(g) The use or consumption of construction and building materials required or made
necessary in the performance of any construction contract bid, let, or entered into at
any time prior to January 1, 2023;
(h) The storage of construction and building materials;
(i) A building project, subject to a Town of Avon Building Permit, with a total
construction valuation of fifty thousand dollars ($50,000.00) or less;
(j) The use or consumption of construction and building materials in the Town on which
the use tax imposed by this Chapter has already been paid; and
(k) Any transaction which the Town is prohibited from taxing under applicable law.
3.09.050 – Credit for taxes paid to another taxing authority.
(a) The Town’s use tax shall not apply to the use or consumption of any construction and
building materials the sale or use of which has already been subjected to a legally
imposed sales or use tax of another statutory or home rule town, city, or city and
county equal to or in excess of the use tax imposed herein.
(b) A credit shall be granted against the Town’s use tax in an amount equal to lawful tax
previously paid by the purchaser or user to another taxing authority, provided that the
amount of credit shall not exceed the amount of use tax imposed by this Chapter.
(c) The burden of proof is upon the taxpayer to establish the right to any credit claimed.
5
(d) It is the intent of this Chapter for Town taxes to be paid at the time a building permit
is issued. Once such permit is issued, persons engaged in construction projects in the
Town are considered to be the end users of construction and building materials and
must not pay municipal sales tax to a retailer in another jurisdiction for materials to be
used or consumed in the Town. No refund or credit of another municipality’s tax will
be allowed unless such tax is legally imposed.
3.09.055 – Tax credit for the Village (at Avon).
Notwithstanding any other provisions of this Chapter, there shall be granted to each person
owing tax on use or consumption of building materials within The Village (at Avon) a temporary
tax credit equal to the amount of any Building Materials Use Fee paid by or on behalf of such
person for that same use or consumption. The amount of the credit shall not exceed the amount of
use tax owed. This credit shall expire with the termination of the Building Materials Use Fee as
set out in the Consolidated, Amended and Restated Annexation and Development Agreement for
The Village (at Avon), as recorded with Eagle County on August 1, 2014. Neither the ability of
the Town to grant the temporary tax credit nor termination of the tax credit shall constitute a tax
increase, the imposition of a new tax, or a tax policy change.
3.09.056 - Tax credit for Community Housing.
Notwithstanding any other provision of this Chapter, there may be granted a tax credit to
each person owing tax on the use or consumption of construction and building materials and
fixtures used in a Community Housing project provided that such use tax credit is approved by
Council by resolution in accordance with Chapter 3.14. Neither the ability of the Town to grant
this tax credit nor the repeal or termination of this tax credit shall constitute a tax rate increase, the
imposition of a new tax or a tax policy change.
3.09.057 - Temporary tax credit for renewable energy production components.
Notwithstanding any other provision of this Chapter, there shall be granted a temporary
tax credit to each person owing tax on the use or consumption of components used in the
production of electricity, generation of heat or cooling of air, from a renewable energy source,
including but not limited to wind, solar, solar thermal systems, and geothermal energy systems,
provided that this temporary tax credit shall commence on the effective date of this ordinance and
shall continue until December 31, 2024, whereupon this temporary tax credit shall automatically
expire unless extended by adoption of an ordinance. Neither the ability of the Town to grant the
temporary tax credit nor the termination of the credit shall constitute a tax increase, the imposition
of a new tax or a tax policy change.
3.09.060 – Collection and administration.
(a) The administration of this chapter is hereby vested in the Director, who shall prescribe
forms and promulgate rules and regulations for the proper administration and
enforcement of this chapter. The Director may delegate to any person the power and
authority necessary for the proper administration and enforcement of this chapter.
6
(b) The use tax required by this Chapter shall initially be made by estimate, which
estimated amount must be paid at or prior to the time any permit for building or
construction within the Town is issued. No permit shall be issued by the Town
Building Official, or any other town employee, to any person requesting a permit for
construction within the Town until such estimated use tax has been paid. The tax
estimate shall be made by the Director, working with the Community Development
Department to determine the Construction Valuation.
(c) All use taxes due to the Town must be paid in full before a final building inspection
may take place and a permanent or temporary certificate of occupancy issued. The
Director may determine the amount of use taxes due to the Town before final
inspections occur or certificates of occupancy issue. To assist in this determination,
the Director may request information from the taxpayer, who shall timely provide it,
which information may include proof of actual amounts paid for construction and
building materials used or consumed in the building project.
(d) A person engaged in a construction project in the Town who does not apply for and
have issued a permit or who seeks and obtains prior approval of the Director to remit
use taxes in accordance with this Subsection (d) shall, on or before the twentieth day
of each succeeding month following the start of construction, file a return with the
Director attaching all statements and invoices establishing the price paid for building
and construction materials used in the local project, along with a summary sheet for
materials purchased the previous month, and shall thereupon pay to the Town the full
amount of use tax due for the preceding month or months. Any failure to make such
return and payment of such use tax shall be deemed a violation of this Chapter, which
may, upon conviction, subject the violator to penalties provided.
3.09.070 – Penalty and Interest.
(a) If any person fails, neglects, or refuses to pay the use tax as required by this chapter,
or if any taxpayer fails to remit the proper amount of tax or underpays the tax, then
penalties and interest shall be imposed in accordance with this section.
(b) If a person neglects or refuses to pay any use tax as required by this Chapter within
ten (10) days after the same is due, the Director shall make an estimate, based upon
such information as may be available, of the amount of use tax due for the period for
which the taxpayer is delinquent and shall add thereto a penalty equal to the greater of
fifteen dollars ($15.00) or ten percent (10%) of the amount due and interest at the rate
of one-and-a-half percent (1.5%) per month from the time delinquent payment was
due.
(c) If any part of the deficiency is due to fraud with the intent to evade the tax, there shall
be added a penalty of one hundred percent (100%) of the total amount of the
deficiency, and in such case the whole amount of the tax unpaid, including the
additions, shall become due and payable ten (10) days after written notice and demand
7
by the Director, and an additional three percent (3%) per month on said amount shall
be added from the date payment was due, until paid.
(d) The Director may, for good cause shown, waive any penalty or interest.
3.09.080 – Remedies not exclusive.
In addition to enforcement remedies expressly provided in this chapter, the Town may pursue any
other remedies available at law or in equity.
3.09.090 – Lien.
The tax imposed by this Chapter, together with accrued interest and penalties, shall be a first and
prior lien on any real property into which the construction and building materials were
incorporated.
3.09.100 – Limitation of Action.
Use tax, interest, and penalties shall be assessed, and any action to collect the same shall be
commenced, within three (3) years of the issuance of a final certificate of occupancy for the
improvement on which the use tax was paid. This period of limitation shall not run for any period
of time covered by an audit if written notice of that audit is given to the taxpayer prior to expiration
of the limitation period.
3.09.110 – Refunds.
(a) Upon completion of construction, the taxpayer may apply to the Director for a refund
of overpaid taxes. Such application shall be supported by documentation required by
the Director or as needed to establish actual amounts paid for construction and
building materials used or consumed as part of a building project.
(b) A taxpayer claiming an exemption may pay the use tax under protest. Applications for
refund of such protested tax must be made within sixty (60) days of issuance of the
building permit for which the use tax was paid under protest.
(c) A taxpayer claiming refund for use tax paid by mistake or in error must make that
claim within three (3) years of the final inspection or issuance of a permanent
certificate of occupancy, whichever comes later, for the improvement on which the
use tax was paid.
(d) All claims for refund shall be upon forms prescribed by the Director and made in such
manner as required by the Director. The Director shall promptly review refund claims
and issue a denial in writing, state the reason therefor, or provide the funds requested,
after applying any refund amount against outstanding tax liabilities.
8
(e) If a taxpayer disputes a refund denial, the taxpayer shall provide the Director with a
written protest, filed within 30 days of the Director’s notice. The protest shall identify
specific grounds for dispute, including any necessary documentation, and shall request
a hearing before the Director. This protest process, and that of any related appeal, shall
be in accordance with Section 29-2-106.1, Colorado Revised Statutes.
(e) The right to refund shall not be assignable.
3.09.120 – Audit.
(a) The Town may audit, or the taxpayer request an audit, within three (3) years from the
issuance of any certificate of occupancy for the improvement on which the use tax
was paid. An audit requested by the taxpayer shall be at the taxpayer’s sole cost.
(b) If the recomputed use tax is less than the amount of use tax paid by the taxpayer, the
difference shall be refunded to the taxpayer within thirty (30) days of the final
determination of the Town. If the recomputed use tax is more than the amount of use
tax paid by the taxpayer, the difference, along with any interest and penalty imposed
by this chapter, shall be due and payable by the taxpayer immediately upon the final
determination of the Town with notice to the taxpayer.
3.09.130 – Book, Records, Reports, and Returns.
(a) Every person liable for any use tax imposed by this chapter shall keep and preserve,
for a period of three (3) years from the date of issuance of a final certificate of
occupancy for the improvement on which the use tax was paid, all books, records,
reports and returns necessary to determine the amount of tax liability. All such books,
records, reports, and returns shall be open for examination at any time by the Director.
(b) Any information gained by taxpayer disclosure or as part of an audit or investigation
shall be entitled to the same level of confidentiality afford to sales tax information, as
set out in Chapter 3.08 of the Avon Municipal Code.
(c) For the purpose of determining the amount of tax due from any taxpayer, the Director
may hold investigations and hearings concerning any matters covered by this Chapter,
and may examine any relevant books, papers, records, or memoranda of any such
person, requiring the attendance of such taxpayer, or any officer or employee of such
taxpayer, or of any person having relevant knowledge, and taking such testimony and
proof as may be necessary to properly ascertain any tax liability. The Director shall
have power to administer oaths to any person in the course of such investigations or
hearings. Production of documents and attendance of witnesses shall be requested by
the Director on his or her own motion or on motion of any party; any request for
production or attendance shall inform persons that compliance is voluntary but that, if
the request is not complied with, the Director may apply to the Municipal Judge for
issuance of a subpoena.
9
(d) The Municipal Judge, upon application of the Director, may compel the attendance of
witnesses, the production of books, papers, records or memoranda, and the giving of
testimony before the Director or any of his or her duly authorized agents, by the
issuance and enforcement of subpoenas, in the same manner as production of evidence
may be compelled before the court.
3.09.140 – Violation and Penalty
(a) It is a violation of this Chapter for any person subject to the use tax levied by this
chapter to submit any false or fraudulent use tax information to the town, to make any
false statement on any document used to calculate taxes due under this chapter, to fail
or refuse to make payment of any taxes due, to evade the payment of any taxes due,
or to aid or abet another in any attempt to evade the payment of any taxes due under
this chapter.
(b) In addition to any other penalty provided in this Chapter, any person who violates any
provision of this Chapter shall be punished in accordance with Section 1.08 of the
Avon Municipal Code.
[970] 748-4055 swright@avon.org
TO: Honorable Mayor Smith Hymes and Council members
FROM: Scott Wright, Assistant Town Manager; Paul Wisor,
Town Attorney; Eric Heil, Town Manager
RE: Use Tax on Construction Materials
DATE: July 7, 2021
SUMMARY: This report provides an overview of a potential Use Tax, including draft Ballot Language and
recommendations. Council approved the 2021 Department goals early in the year which included a Finance
Department Goal to present legal and financial analysis of Use Tax.
Finance Department, Goal #12 states, Present Legal and Financial Analysis of Use Tax:
Staff will prepare an overview of sales and use tax as commonly used throughout
Colorado, potential revenues, potential dedication of such revenues for designated
purposes such as capital improvements or community housing, and present that
information to the Finance Committee.
The 2018 Town of Avon Community Housing Plan established a goal to secure additional local funds for
housing and to seek opportunities for new funding sources. The Community Housing Plan states on P. 6
under Funding,
A two-step process is envisioned to secure additional local funds for housing. The
first step will be to review current revenue streams and determine if additional
funds can be directed to housing efforts through the annual budgeting process.
This review will begin at the end of 2018. Depending on the outcome of the first
step, the second step will be to seek opportunities for new funding sources, which
could include approaches such as increased linkage fees, regional collaboration,
and/or support for a local ballot initiative.
The purpose of this report is to introduce to Council a possible means for funding Community Housing
projects through the assessment of a use tax on construction materials. This is submitted as a written
report and no formal action by Council is requested at this time. If Council decides that this might be a
favorable way to raise funds for this purpose it must be approved by the Town’s electorate in a TABOR
election, since implementing a use tax is a change in tax policy and increases revenue.
Critical dates pursuant to TABOR include the following:
(1) August 10. Last regularly scheduled Town Council meeting to introduce first reading of an
ordinance to refer ballot question and self-execute implementation of use tax upon
approval.
(2) August 24 Last regularly scheduled Town Council meeting in which to adopt a resolution
certifying ballot content to the County Clerk and Recorder.
(3) September 3. Last day to certify the ballot content to the County Clerk and Recorder.
(4) November 2. Election day.
BACKGROUND: In 2002 a 4% construction use tax was submitted to the Town of Avon electors by the
Avon Town Council. The tax was to be "spent solely for transportation and recreation capital projects and
Page 2 of 4
services and infrastructure related thereto." The ballot question failed to pass by a vote of 379 in favor and
573 against (See Attachment A).
ANALYSIS: Use taxes are levied on the consumption of tangible personal property within a city or county
for which no sales or use tax has been previously paid. A use tax differs from a sales tax in that the
purchaser (as opposed to the retailer) is generally held responsible for paying the use tax. Use taxes are
considered complimentary to a sales tax and are applied in the jurisdiction where the product or materials
are used rather than where purchased. Use taxes are typically assessed at the same rate as the sales tax
that would have been owed and generally the taxability of the goods or services is the same.
The State of Colorado imposes both a sales tax and a use tax. The use tax is imposed as a complement to
Colorado sales tax, and is meant to capture revenue on transactions that are not subject to a sales tax as
well as transactions which are more efficient and effective to impose and collect the use tax rather than the
sales tax. The use tax is imposed for the privilege of storing, using, or consuming tangible personal
property in Colorado. In general, whenever a purchaser acquires tangible personal property without paying
sales tax at the time of the sale, they must pay consumer use tax directly to the Department of Revenue. If
an item is exempt from sales tax, it is generally exempt from use tax as well. The Colorado use tax rate is
2.9%, the same as the sales tax rate in Colorado, and use tax is calculated in the same manner as sales
tax.
There are generally three types of use taxes that may be imposed on purchasers:
(1) A Consumer Use Tax;
(2) A Motor Vehicle Use Tax;
(3) A Construction Use Tax levied on building materials.
Consumer Use Tax. The first type of use tax - a consumer use tax - is defined as a "companion" tax for
purchases made where sales tax is not charged. In Colorado, this companion tax is called a consumer use
tax. Typically, a consumer use tax is imposed on transactions that are subject to sales tax, but tax was not
charged. Usually, this occurs when items are purchased out-of-state, ordered through the mail, over the
Internet, or by phone from another state. It is imposed on the use, storage, or consumption of tangible
personal property in the state. The use tax often applies when a company makes a purchase from an out-
of-state seller that is not required to collect sales tax in the purchaser’s state.
Consumer use taxes are imposed by state and local governments for two reasons — to prevent someone
from evading a sales tax by buying goods or taxable services from a non-taxing state and shipping them
into the state that imposes the sales tax. In addition, the use tax protects retailers located in the state or
municipality because it removes the incentive for consumers to shop outside that locality in order to avoid
paying the sales tax.
On June 21, 2018, the United States Supreme Court ruled in a 5-4 decision in South Dakota v. Wayfair,
Inc., et al, that states can generally require an out-of-state seller to collect and remit sales tax on sales to
in-state consumers even if the seller has no physical presence in the consumer's state. Because of this
decision, we do not consider future lost sales taxes from out-of-state retail sales to be material enough to
consider a consumer use tax ballot question. We do not recommend Council consider a Consumer Use
Tax.
Motor Vehicle Use Tax. In general, motor vehicle sales are subject to all state and local sales taxes that
apply within the jurisdiction where the sale occurred. However, in most jurisdictions, sales are exempt from
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the local sales tax if the motor vehicle is registered outside of Town. If the vehicle sale is exempt as
described above, the purchaser must pay applicable use tax imposed by the municipality or county in which
the vehicle is registered. If there is no use tax imposed, then the only tax paid is at the State level. Any
applicable use taxes must be paid to the county clerk prior to titling and registration. From a practical
standpoint, jurisdictions that do not have a motor vehicle use tax are unlikely to have new and used
automobile dealerships because a resident purchasing a vehicle within that jurisdiction would have to pay
sales tax vs. purchasing the vehicle outside of the jurisdiction.
Use taxes on motor vehicles can raise a substantial amount of tax. A Motor Vehicle Use Tax would be a
new tax for Avon residents purchasing a vehicle. We do not recommend Council consider a Consumer
Use Tax.
Construction Materials Use Tax. The Town of Avon currently imposes a sales tax on building materials.
The administrative burden of collection is high and not entirely effective because Avon must collect the
sales tax from vendors of construction materials and not the contractors or property owners. Many of the
construction materials are purchased outside of the Town. In the case of materials purchased outside of
Town and brought into Town by the purchaser (owner, general contractor or sub-contractors), the Town
has lost out on the sales tax for those items because it is paid at the location of the retailer.
In the case of materials purchased outside of Town and then delivered by the retailer to the job site, sales
would not be collected by the retailer and the purchaser should remit the sales tax to the Town. However,
due to the “on-your-honor” methodology, the large number of contractors and companies involved, the
amount of records involved, and determining who is ultimately responsible for the tax (the owner, general
contractor or subs), this methodology is very inefficient.
A construction use tax is a form of use tax levied on building materials. The use tax is collected at the time
a building permit is issued. The use tax amount is determined by multiplying the use tax rate by the cost of
the building materials using a predetermined formula. A common method is to determine that the cost of
building materials to be fifty percent (50%) of the total valuation of the construction project. The builder
then provides the building permit to the materials supplier to prove that use tax has already been paid, and
then is exempt from paying a corresponding municipal sales tax in other locations.
A large number of cities and counties in Colorado levy a use tax on building materials including Eagle,
Gypsum, Vail, Steamboat Springs and Grand Junction. See the comparison tables in the presentation.
The benefits of a use tax on construction materials include the following:
(1) fairness in the imposition of the tax;
(2) elimination of unfair competition using tax rates as a reason to shop outside of Avon;
(3) easing of the administrative burden of collection;
(4) nexus of construction to community housing needs;
FINANCIAL CONSIDERATIONS: Based on the Town’s 10-year average of the total value of building
construction of $32,772,355, a 4% use tax on construction materials would have generated an average of
$655,447 per annum in revenue. It should be noted that because the Town (excluding The Village (at
Avon)) has only a few remaining vacant parcels for large potential developments remaining, the level of use
tax from the past ten years might not be an accurate representation of the potential use tax that might be
realized in the future. Redevelopment of East Avon Town Center and other underdeveloped properties in
the Town core may provide additional use tax revenues.
Page 4 of 4
The timing of the remittance of a use tax versus what was actually collected in sales tax on construction
materials makes it very difficult to compare fiscal years. However, an average of the past seven years
indicates that the Town has actually collected an average of $399,446 per year with 2020 collections at
$537,553 representing almost 6% of total sales tax collections.
Village At Avon (Traer Creek Metro District). The Consolidated Amended and Restated Annexation and
Development Agreement (“CARADA”) specifically contemplates that the Town may, at some point, impose
a use tax. In the event a use tax is imposed, a corresponding “use tax credit” will automatically be applied
to any transaction subject to the use tax. The CARADA also contemplates that Traer Creek may impose a
building materials fee if the Town imposes a use tax. The CARADA is silent as to whether the building
materials fee must be used for the same purposes as the use tax. The CARADA does provide the Town
must coordinate with Traer Creek regarding the implementation of any use tax, so the Town will need to
further explore the building materials fee with Traer Creek.
SAMPLE BALLOT LANGUAGE: Sample ballot language is included with this Report which would dedicate
100% of the revenues of a Use Tax to the Community Housing Fund. The use of these funds is broadly
written to encompass all potential investments and expenditures related to Community Housing.
OPTIONS: As an option to the sample ballot language contained in Attachment B, Council may consider
retaining a portion of the use tax in the General Fund to be used for any legal purpose as a way to offset
the amount of sales tax on construction materials that will no longer be collected in that manner. As
discussed above, that amount in 2020 equates to approximately 6% of gross sales tax revenues or a total
of $537,553.
Another option regarding the use tax on construction materials would include not specifically earmarking
the funds and leave the appropriation of the funds up to the discretion of the Town Council.
RECOMMENDATION: We recommend that Council provide direction regarding the possible adoption,
either by resolution or by ordinance, of a construction materials use tax ballot question to be certified to the
Eagle County Clerk and Recorder for inclusion in the November 2, 2021 general election. Direction should
include addressing the options above.
TOWN MANAGER’S RECOMMENDATION: I recommend that Council consider approving the ballot
question as presented with 100% of the revenues to be dedicated to Community Housing. In my
experience working with ballot questions for new taxes, voters will more likely support a new tax that is
dedicated to a pressing community need. Presenting the Use Tax as a new tax to support Community
Housing is simple and easy for the general public to understand and I expect would resonate with the
community based on the current housing shortage. The Sales Tax on construction materials collected in
2020 amounts to 2.9% of the General Fund operating revenues. Considering the magnitude and scope of
housing as well as the need to generate significant sums to leverage with regional partners and state and
federal grant funds, Council should be striving for annual revenues to be dedicated or allocated towards
Community Housing in the range of $1 million to $2 million.
Thank you, Scott, Paul and Eric
ATTACHMENTS:
Attachment A - Ordinance No. 2002-18
Attachment B - Sample Use Tax Ballot Question
TOWN OF AVON
ORDINANCE NO. 02-18
SERIES OF 2002
AN ORDINANCE ADDING A USE TAX ON
CONSTRUCTION MATERIALS.
BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON,
COLORADO:
Section 1. Chapter 3.08 of the Avon Municipal Code is amended as follows:
a) Title. The title of chapter 3.08 is amended to state "SALES AND USE TAX."
b) 43.08.020. Taxable items. A new subpart D. is added to state as follows:
D. Upon the purchase price paid for or the acquisition costs of
construction materials brought within the boundaries of the town for the
purpose of being used to build, construct, reconstruct, alter, expand, modify or
improve any building, dwelling or other structure or improvement to real
property in the town."
c) 43.08.030. Sales tax levy.
i) The title of §3.08.030 is changed to state "Sales and use tax levy."
ii) Section 3.08.030C is repealed and reenacted to state as follow:
The retailer shall add the sales tax imposed hereto to the sale or charge of the
item sold, showing such tax as a separate and distinct item, and, when added,
such tax shall constitute a part of such price or charge, shall be a debt from the
purchaser to the retailer until paid and shall be recoverable at law in the same
manner as other debts."
iii) A new subpart E. is added to state as follows:
E. (1) A use tax of four percent is imposed upon the purchase price paid for
or the acquisition costs of construction materials brought within the
boundaries of the town for the purpose of being used to build, construct,
reconstruct, alter, expand, modify or improve any building, dwelling or other
structure or improvement to real property in the town.
1
ATTACHMENT A
2)(a) Any person who shall build or improve any dwelling or other
structure or improvement to realty within the town, including underground
improvements, and who shall purchase the necessary construction materials
needed therefor from any source inside or outside of the town, shall remit to
the Finance Director prior to the issuance of any building permit for such
improvement full payment of the use tax, to be calculated as provided herein.
The full amount of the use tax shall be due and payable at the time that the
applicable building permit is issued. The estimate of the cost of the
construction materials shall be determined by the Town Building Official in
the manner set forth below, and the amount of the tax shall be subject to
adjustment if the actual cost of the construction materials needed for the
improvement is either less than or greater than the estimate. Upon payment of
the use tax, the Finance Director shall issue the taxpayer a receipt identifying
the property that is the subject of the tax and the building permit number.
b) For the purpose of calculating the amount of the use tax as
provided for herein, the value of the construction materials in the
improvement shall be estimated to be equal to fifty percent of the total value
of the improvement as determined by the Building Official for building permit
purposes. The use tax obligation shall be an amount equal to four percent of
such estimated value of the construction materials.
c) If it is determined by the Finance Director through audit or other
means that the actual cost of the construction materials for the improvement is
greater than the estimate on which the tax was based, and that additional tax is
owing, then the Finance Director shall make a demand to the taxpayer for the
additional use tax owed together with interest calculated pursuant to §
3.08.353; provided, in no case may the Finance Director make a claim for
amounts due more than three years after a certificate of occupancy or final
inspection approval has been issued by the town for the improvement. A
taxpayer's failure to honor the Finance Director's claim for additional tax due,
as set forth in this paragraph, shall constitute a violation of this chapter.
3) All use tax funds collected by the Town in accordance with the
provisions of this chapter shall be appropriated and spent solely for
transportation and recreation capital projects and services and infrastructure
related thereto."
d) & 3.08.320. Sales tax - Credit for sales or use taxes previously paid to
another municipality.
i) The title of § 3.08.320 is changed to state "Sales and use tax - Credit
for sales or use taxes previously paid to another municipality."
ii) Section 3.08.320 is repealed and reenacted to state as follow:
2
ATTACHMENT A
For transactions consummated on or after January 1, 1986, the town's sales tax shall
not apply to the sale of tangible property at retail or the furnishing of services if the
transaction was previously subjected to a sales or use tax lawfully imposed on the
purchaser or user by another statutory or home rule municipality equal to or in excess
of that provided for in Section 3.08.030. A credit shall be granted against the town's
lawfully imposed local sales or use tax previously paid by the purchaser or user to the
previous statutory or home rule municipality. The amount of the credit shall not
exceed the town's sales or use tax imposed pursuant to Section 3.08.030."
Section 2. Section 3.08.035 of the Avon Municipal Code is amended as follows:
3.08.035 Tax Credit. Notwithstanding any other provisions of this chapter, there
shall be granted to each person owing 1) the sales tax on sales consummated within
The Village (at Avon) or 2) the use tax on the purchase price paid or the acquisition
costs of construction materials brought within the boundaries of the Town for the
purpose of being used to build, construct, reconstruct, alter, expand, modify or
improve any building, dwelling or other structure or improvement to real property
within The Village (at Avon) a temporary tax credit against collection of the tax equal
to the amount of any retail sales or use fee paid by or on behalf of such person. The
amount of the credit shall not exceed the amount of the tax. No such credit shall shall
be granted subsequent to termination of the collection of the retail sales fees and use
fees terminate pursuant to the Annexation and Development Agreement for The
Village (at Avon). Neither the ability of the Town to grant the temporary tax credit
nor the termination of the credit shall constitute a tax increase, the imposition of a
new tax or a tax policy change."
Section 3. Election and Effective Date.
Under Article X, Section 20 of the Colorado Constitution, the Council refers the tax
increase provided in this ordinance to the qualified electors of the Town for approval at the
regular Town election scheduled for November 5, 2002. If approved by a majority of the
electors voting thereon, this ordinance shall become effective when the Town Clerk or other
designated election official duly files the required certificate of election, or on January 1,
2003, whichever occurs last.
Section 4. Ballot Title and Question.
The ballot title and question submitted to the electors shall be
as follows:
ATTACHMENT A
SHALL TOWN OF AVON TAXES BE INCREASED $1.6
MILLION ($1,600,000) ANNUALLY IN 2003, AND BY
WHATEVER ADDITIONAL AMOUNTS ARE RAISED
ANNUALLY THEREAFTER, BY THE IMPOSITION OF A
FOUR PERCENT (4%) USE TAX ON THE PRIVILEGE OF
USING OR CONSUMING IN THE TOWN ANY
CONSTRUCTION MATERIALS, SUCH USE TAX
REVENUES TO BE APPROPRIATED AND SPENT
SOLELY FOR TRANSPORTATION AND RECREATION
CAPITAL PROJECTS AND SERVICES AND
INFRASTRUCTURE RELATED THEREO, ALL IN
ACCORDANCE WITH ORDINANCE NO. 02-18 ADOPTED
BY THE TOWN COUNCIL; AND SHALL THE REVENUES
COLLECTED FROM SUCH TAX AND ANY EARNINGS
FROM THE INVESTMENT OF SUCH REVENUES BE
COLLECTED AND SPENT AS A VOTER APPROVED
REVENUE CHANGE AND AN EXCEPTION TO THE
LIMITS WHICH WOULD OTHERWISE APPLY UNDER
ARTICLE X, SECTION 20 OF THE COLORADO
CONSTITUTION OR ANY OTHER LAW?
INTRODUCED, APPROVED ON FIRST READING, AND ORDERED
PUBLISHED IN FULL AND POSTED, this 9th day of July, 2002, and a public hearing on
this ordinance shall be held at the regular meeting of the Town Council of the Town of Avon,
Colorado on the 27th day of August, 2002, at 5:30 p.m. in the Municipal Building of the
Town of Avon, Colorado.
TOWN OF AVON, COLORADO:
ATT
To Cl rk
yor
4
ATTACHMENT A
INTRODUCED, APPROVED ON SECOND READING, AND ORDERED
PUBLISHED AND POSTED this 27th day of August, 2002.
TOWN OF AVON, COLORADO:
Jyor
ATT
oc-
To Cl rk EARS
APPROVED AS TO FORM:
Town ttorney
ATTACHMENT A
STATE OF COLORADO )
COUNTY OF EAGLE ) SS
TOWN OF AVON
NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN COUNCIL
OF THE TOWN OF AVON, COLORADO AT 5:30 P.M. ON THE 27TH DAY OF AUGUST
2002, AT THE TOWN OF AVON MUNICIPAL BUILDING FOR THE PURPOSE OF
CONSIDERING THE ADOPTION OF ORDINANCE NO. 02-18, SERIES OF 2002:
AN ORDINANCE ADDING A USE TAX ON
CONSTRUCTION MATERIALS.
A copy of said Ordinance is attached hereto, and is also on file at the office of the Town Clerk, and
may be inspected during regular business hours.
Following this hearing, the Council may consider final passage of this Ordinance.
This notice is given and posted by order of the Town Council of the Town of Avon, Colorado
Dated this 23rd day of August 2002.
TOWN OF AVON, COLORADO
BY: P ! "lc/
Patty Yel envy
Town Cie&
POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON
AUGUST 23, 2002:
AVON MUNICIPAL BUILDING, MAIN LOBBY
ALPINE BANK, MAIN LOBBY
AVON RECREATION CENTER, MAIN LOBBY
CITY MARKET, MAIN LOBBY
ATTACHMENT A
STATE OF COLORADO )
COUNTY OF EAGLE ) SS
TOWN OF AVON
NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN COUNCIL
OF THE TOWN OF AVON, COLORADO AT 5:30 P.M. ON THE 13TH DAY OF AUGUST
2002, AT THE TOWN OF AVON MUNICIPAL BUILDING FOR THE PURPOSE OF
CONSIDERING THE ADOPTION OF ORDINANCE NO. 02-18, SERIES OF 2002:
AN ORDINANCE ADDING A USE TAX ON
CONSTRUCTION MATERIALS.
A copy of said Ordinance is attached hereto, and is also on file at the office of the Town Clerk, and
may be inspected during regular business hours.
Following this hearing, the Council may consider final passage of this Ordinance.
This notice is given and posted by order of the Town Council of the Town of Avon, Colorado
Dated this 6`" day of August, 2002.
TOWN OF AVON, COLORADO
BY: 201 /~c
Pa " cKenn
Town Clerk
POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON
AUGUST 6, 2002:
AVON MUNICIPAL BUILDING, MAIN LOBBY
ALPINE BANK, MAIN LOBBY
AVON RECREATION CENTER, MAIN LOBBY
CITY MARKET, MAIN LOBBY
ATTACHMENT A
STATE OF COLORADO )
COUNTY OF EAGLE ) SS
TOWN OF AVON
NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN COUNCIL
OF THE TOWN OF AVON, COLORADO AT 5:30 P.M. ON THE 23RD DAY OF JULY 2002,
AT THE TOWN OF AVON MUNICIPAL BUILDING FOR THE PURPOSE OF
CONSIDERING THE ADOPTION OF ORDINANCE NO. 02-18, SERIES OF 2002:
Ordinance 02-18, Series of 2002 - An Ordinance Adding a Use Tax on Construction
Materials
A copy of said Ordinance is attached hereto, and is also on file at the office of the Town Clerk, and
may be inspected during regular business hours.
Following this hearing, the Council may consider final passage of this Ordinance.
This notice is given and posted by order of the Town Council of the Town of Avon, Colorado
Dated this 19th day of July, 2002.
TOWN OF AVON, COLORADO
BY: c
Pay c envy
Town erk
POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON
JULY 19,2002:
AVON MUNICIPAL BUILDING, MAIN LOBBY
ALPINE BANK, MAIN LOBBY
AVON RECREATION CENTER, MAIN LOBBY
CITY MARKET, MAIN LOBBY
ATTACHMENT A
ORDINANCE NO. 02-18
gad
SERIES OF 2002
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF
AVON,COLORADO:
Section 1. Chapter 3.08 of the Avon Municipal Code is amended as follows:
a) Title. The title of chapter 3.08 is amended to state "SALES AND USE TAX."
b) 43.08.020. Taxable items. A new subpart D. is added to state as follows:
D. Upon the purchase price paid for or the acquisition costs of
construction materials brought within the boundaries of the town for the
purpose of being used to build, construct, reconstruct, alter, expand, modify or
improve any building, dwelling or other structure or improvement to real
property in the town."
c) 43.08.030. Sales tax levy.
i) The title of §3.08.030 is changed to state "Sales and use tax levy."
ii) Section 3.08.030C is repealed and reenacted to state as follow:
The retailer shall add the sales tax imposed hereto to the sale or charge of the
item sold, showing such tax as a separate and distinct item, and, when added,
such tax shall constitute a part of such price or charge, shall be a debt from the
purchaser to the retailer until paid, and shall be recoverable at law in the same
manner as other debts."
iii) A new subpart E. is added to state as follows:
E. (1) A tax of four percent is imposed upon the purchase price paid for or
the acquisition costs of construction materials brought within the boundaries
of the town for the purpose of being used to build, construct, reconstruct, alter,
expand, modify or improve any building, dwelling or other structure or
improvement to real property in the town.
AN ORDINANCE ADDING A USE TAX ON
CONSTRUCTION MATERIALS.
2) Any person who shall build or improve any dwelling or other structure
or improvement to realty within the town, including underground
ATTACHMENT A
improvements, and who shall purchase the necessary construction materials
needed therefore from any source inside or outside of the town, shall keep all
invoices and statements regarding such materials from both the general and
subcontractors, along with a summary sheet showing such purchases, and
shall, on or before the tenth day of each succeeding month following the start.
of construction, file a return with the Finance Director, to which he shall
attach such invoices, statements and. summary for the construction materials
purchased the previous month, and . shall thereupon pay to the Finance
Director the full amount of the use tax due thereon for the preceding month or
months. Any failure to preserve such statements and invoices, and to make
such return and payment of such use tax, shall be deemed a violation of this
chapter. The full amount of any use tax due and not paid for construction
materials shall be a lien upon the real property benefited by such
improvements, and the Finance Director is authorized to file a notice of such
lien with the County Clerk and Recorder.
3)(a) Any person who shall build or improve any dwelling or other
structure or improvement to realty within the town, including underground
improvements, and who shall purchase the necessary construction materials
needed therefore from any source inside or outside of the town, may, at such
person's option, remit a deposit to the Finance Director prior to the issuance
of any building permit for such improvement, such deposit to insure and
indemnify the town for the amount of use tax due. The amount of the deposit
shall be based upon an estimate of the use tax to be payable on the
construction materials used for the improvement. Such estimate shall be
made, and such deposit shall be paid, at the time that the applicable building
permit is issued. The estimate of the cost of the construction materials shall
be determined by the Town Building Official, and the estimate shall be
subject to adjustment if the actual cost of the construction materials needed for
the improvement is either. less than or greater than such estimate. If the
taxpayer elects the deposit procedure set forth in this subsection (3), then the
provisions of subsection (2) hereof shall be waived. Upon payment of the
deposit as set forth herein, the Finance Director shall issue the taxpayer a
receipt identifying the property that is the subject of the deposit and the
building permit number.
b) For the purpose of calculating the amount of the deposit as
provided for herein, the value of the construction materials in the
improvement shall be estimated to be equal to fifty percent of the total value
of the improvement as determined by the Building Official for building permit
purposes. The deposit shall be in the amount of four percent of such estimated
value of the construction materials.
c) If it is determined by the Finance Director that the actual cost of
the construction materials for the improvement is.greater than the estimate
therefore, and that the amount of the use tax deposit is not sufficient to
2
ATTACHMENT A
provide for full payment of the use tax, then the Finance Director shall make a
demand to the. taxpayer for the additional use tax owed; provided, in no case
may the Finance Director make a claim for amounts due over and above the
amount of the deposit more than three years after a certificate of occupancy or
final inspection approval has been issued by the town for the improvement. A
taxpayer's failure to honor the Finance Director's claim for additional tax due,
as set forth in this paragraph, shall constitute a violation of this chapter.
d) If it is determined by the Finance Director that the deposit is
sufficient to provide for full payment of the use tax, then the deposit shall be
used to pay the amount of the use tax due. If the Finance Director determines
that the amount of the deposit is in excess of the use tax owned, then he shall
return any excess amount of the deposit to the person who made the deposit
within thirty days of such determination.
4) If a taxpayer purchases construction materials subject to the use tax
imposed herein from a vendor possessing a valid Town of Avon retail sales
tax license, and if he pays the town's sales tax at the time of purchase of such
construction materials, then he shall be entitled to a credit, to the extent of
such sales tax paid, to be applied to the amount of use tax owed.
5) Construction materials subjected at the time of purchase to a sales or use
tax lawfully imposed on the purchaser by another statutory or home rule
municipality in the State of Colorado, if taxed at a rate equal to or greater than
the four percent rate provided for herein, are exempted from the Town of
Avon's use tax. If the rate of the sales or use tax imposed by such other
Colorado statutory or home rule municipality is less than four percent, the
difference between the tax due under this chapter and the tan paid by the
purchaser shall be due to the Town of Avon, and shall be remitted to the
Finance Director.
6) All use tax funds collected by the Town in accordance with the
provisions of this chapter shall be appropriated and spent solely for
transportation and recreation capital projects and services."
d) 4 3.08.320. Sales tax - Credit for sales or use taxes previously paid to
another municipality.
i) The title of § 3.08.320 is changed to state "Sales and use tax - Credit
for sales or use taxes previously paid to another municipality."
ii) Section 3.08.320 is repealed and reenacted to state as follow:
For transactions consummated on or after January 1, 1986, the town's sales tax shall
not apply to the sale of tangible property at retail or the furnishing of services if the
transaction was previously subjected to a sales or use tax lawfully imposed on the
3
ATTACHMENT A
purchaser or user by another statutory or home rule municipality equal to or in excess
of that provided for in Section 3.08.030. A credit shall be granted against the town's
lawfully imposed local sales or use tax previously paid by the purchaser or user to the
previous statutory or home rule municipality. The amount of the credit shall not
exceed the town's sales or use tax imposed pursuant to Section 3.08.030."
Section 2. Election and Effective Date.
Under Article X, Section 20 of the Colorado Constitution, the Council refers the tax
increase provided in this ordinance to the qualified electors of the Town for approval at the
regular Town election scheduled for November 5, 2002. If approved by a majority of the
electors voting thereon, this ordinance shall become effective when the Town Clerk or other
designated election official duly files the required certificate of election, or on January 1,
2003, whichever occurs last.
Section 3. Ballot Title and Question.
The ballot title and question submitted to the electors shall be
as follows:
SHALL TOWN OF AVON TAXES BE INCREASED $1.6
MILLION ($1,600,000) ANNUALLY IN 2003, AND. BY
WHATEVER ADDITIONAL AMOUNTS ARE RAISED
ANNUALLY THEREAFTER, BY THE IMPOSITION OF A
FOUR PERCENT (4%) USE TAX ON THE PRIVILEGE OF
USING OR CONSUMING IN THE TOWN ANY
CONSTRUCTION MATERIALS, SUCH USE TAX
REVENUES TO BE APPROPRIATED AND SPENT
SOLELY FOR TRANSPORTATION AND RECREATION
CAPITAL PROJECTS AND SERVICES, ALL IN
ACCORDANCE WITH ORDINANCE NO. 01-08 ADOPTED
BY THE TOWN COUNCIL; AND SHALL THE REVENUES
COLLECTED FROM SUCH TAX AND ANY EARNINGS
FROM THE INVESTMENT OF SUCH REVENUES BE
COLLECTED AND SPENT AS A VOTER APPROVED
REVENUE CHANGE AND AN EXCEPTION TO THE
LIMITS WHICH WOULD OTHERWISE APPLY UNDER
ARTICLE X, SECTION 20 OF THE COLORADO
CONSTITUTION OR ANY OTHER LAW?
YES
4
ATTACHMENT A
NO
Section 4. Repealer.
If the electors approve this ordinance, then on the effective date specified above, all
ordinances or parts of ordinances in conflict herewith are hereby repealed, but only to the extent
of such inconsistency.
Section 5. Severability.
The provisions of this ordinance. are severable, and invalidity of any part shall not affect the
validity or effectiveness of the rest of this ordinance.
INTRODUCED, APPROVED ON FIRST READING, AND ORDERED
PUBLISHED IN FULL AND POSTED, this day of July, 2002, and a public hearing on
this ordinance shallCaie held at t e regular meeting of the Town Council of the Town of Avon,
Colorado on the a3 day of , 2002, at 5:30 p.m. in the Municipal Building of the
Town of Avon, Colorado,,,-
ATT
7,Cp`p
Town lerk
TOWN OF AVON, COLORADO:
Wor
5
ATTACHMENT A
INTRODUCED, APPROVED ON S COND READING, AND ORDERED
PUBLISHED AND POSTED this-'1 %ay of )t,,L-t , 2002.
Q-T~WN OF AVON, COLORADO:
Wor
ATT T:
o C~
To Cle
APPROVED AS TO FORM:
Town Attorney
6
ATTACHMENT A
STATE OF COLORADO )
COUNTY OF EAGLE ) SS
TOWN OF AVON )
NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN COUNCIL
OF THE TOWN OF AVON, COLORADO AT 5:30 P.M. ON THE 23R) DAY OF JULY 2002,
AT THE TOWN OF AVON MUNICIPAL BUILDING FOR THE PURPOSE OF
CONSIDERING THE ADOPTION OF ORDINANCE NO. 02-18, SERIES OF 2002:
Ordinance 02-18, Series of 2002 - An Ordinance Adding a Use Tax on Construction
Materials
A copy of said Ordinance is attached hereto, and is also on file at the office of the Town Clerk, and
may be inspected during regular business hours.
Following this hearing, the Council may consider final passage of this Ordinance.
This notice is given and posted by order of the Town Council of the Town of Avon, Colorado
Dated this 19th day o
0 F
TOWN OF AVON, COLORADO
SEA L LBY:
Pa Mc envy
LOOA®® To k
POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON
JULY 19, 2002:
AVON MUNICIPAL BUILDING, MAIN LOBBY
ALPINE BANK, MAIN LOBBY
AVON RECREATION CENTER, MAIN LOBBY
CITY MARKET, MAIN LOBBY
ATTACHMENT A
Memo
To: Honorable Mayor and Town Council
Thru: Bill Efting, Town Manager
From: Scott Wright, Finance Director
Date: August 9, 2002
Re: Use Tax Ordinance
Summary:
On July 9, Council passed on 1st reading a use tax ordinance that levied a 4% use tax on the use,
storage, or consumption of building materials within the Town of Avon. Subsequent to the 1st reading,
there have been several reviews of the various administrative and collection provisions of the ordinance
that were prompted by the Town's Annexation and Development Agreement with the Village at (Avon)
entities. As a result of these reviews, there are changes to the ordinance for 2nd reading as
summarized below:
Section 3.08.030 E. (2) of the original ordinance regarding collection of the use tax has been
changed to reflect that only projects required to have a building permit would be required to
pay a use tax. This change eliminates the reporting and tax burden on individuals with small
home improvement projects that don't require permits and eliminates any consumer use tax
issues from the ordinance.
Sections 3.08.030 E. (2)(a), (b), and (c) of the original ordinance regarding payment of the tax
at the time a building permit is issued have been changed to reflect that the full payment of the
tax is made, rather than a deposit. This change was necessary to remain consistent with the
concept that the use tax is levied at the time a building permit is issued.
Sections 3.08.030 E. (4) and (5) have been eliminated as duplicative with existing sections of
the existing sales tax code and unnecessary due to the changes above.
Section 3.08.030 E. (3) has been changed to add language allowing the use tax funds to be
used for infrastructure related to transportation and recreation.
Section 3.08.035 has been added to grant a credit against the use tax fee collected by the
Village at (Avon) for permitted projects occurring within the Village.
Page 1
ATTACHMENT A
Town Manager Comments:
Attachments:
Ordinance No. 02-18 - Black Line Version
0 Page 2
ATTACHMENT A
ORDINANCE NO. 02-18
SERIES OF 2002
AN ORDINANCE ADDING A USE TAX ON
CONSTRUCTION MATERIALS.
NOW, THH FORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF
AVON,COLORADO:
Section 1. Chapter 3.08 of the Avon Municipal Code is amended as follows:
a) Title. The title of chapter 3.08 is amended to state "SALES AND USE TAX."
b) 43.08.020. Taxable items. A new subpart D. is added to state as follows:
D. Upon the purchase price paid for or the acquisition costs of
construction materials brought within the boundaries of the town for the
purpose of being used to build, construct, reconstruct, alter, expand, modify or
improve any building, dwelling or other structure or improvement to real
property in the town."
c) 43.08.030. Sales tax lees.
i) The title of §3.08.030 is changed to state "Sales and use tax levy."
ii) Section 3.08.030C is repealed and reenacted to state as follow:
The retailer shall add the sales tax imposed hereto to the sale or charge of the
item sold, showing such tax as a separate and distinct item, and, when added,
such tax shall constitute a part of such price or charge, shall be a debt from the
purchaser to the retailer until paid and shall be recoverable at law in the same
manner as other debts."
iii) A new subpart E. is added to state as follows:
E. (1) A use tax of four percent is imposed upon the purchase price paid for
or the acquisition costs of construction materials brought within the
boundaries of the town for the purpose of being used to build, construct,
reconstruct, alter, expand, modify or improve any building, dwelling or other
structure or improvement to real property in the town.
ATTACHMENT A
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7
the m4h an d shall the e e a th Fi eprupnpyaenanse
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he Geunty Cler-k and Reeer-der-.
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2)(a) Any person who shall build or improve any dwelling or other
structure or improvement to realty within the town, including underground
improvements, and who shall purchase the necessary construction materials
needed therefore from any source inside or outside of the town, may, a4 sueh
p , shall remit a depesit to the Finance Director prior to the
issuance of any building permit for such improvement full payment of the use
tax, to be calculated as provided herein ,
the tew f - the ° nt of use tax a--° The full amount of the depesit use tax
shall be due and navable base' ueea an estimate of the use tam to be ~
paid, be made, and sueh depesit shall be at the time that the applicable
building permit is issued. The estimate of the cost of the construction
materials shall be determined by the Town Building Official in the manner set
forth below, and the °e amount of the tax shall be subject to adjustment
if the actual cost of the construction materials needed for the improvement is
either less than or greater than seeh the estimate. if the taxpa~,er- eleets
depesit pr-eeedufe set feAh in this s-74-4b- Se e t i An (3), then the pmvisiefls 0
subseetien (2) her-eef shall be waived-. Upon payment of the use tax depesit-as
t f fth h, the Finance Director shall issue the taxpayer a receipt
identifying the property that is the subject of the depesit tax and the building
permit number.
b) For the purpose of calculating the amount of the depesit use tax as
provided for herein, the value of the construction materials in the
improvement shall be estimated to be equal to fifty percent of the total value
of the improvement as determined by the Building Official for building permit
purposes. The depesit use tax obligation shall berme an amount of equal to
four percent of such estimated value of the construction materials.
2
ATTACHMENT A
t
c) If it is determined by the Finance Director through audit or other
means that the actual cost of the construction materials for the improvement is
greater than the estimate on which the tax was based tie, and that
additional tax is owing then nt of the use tax depe,it ; net suf- ei°nt t„
P=ovide f r- full payment of the • ° to*, then the Finance Director shall make a
demand to the taxpayer for the additional use tax owed together with interest
calculated pursuant to & 3.08.353; provided, in no case may the Finance
Director make a claim for amounts due over and above the amount of the
deposit more than three years after a certificate of occupancy or final
inspection approval has been issued by the town for the improvement. A
taxpayer's failure to honor the Finance Director's claim for additional tax due,
as set forth in this paragraph, shall constitute a violation of this chapter.
d) if it is determined b the Fi Di t A .th t th dyeereeer
ns.Ffinient to i tde file ot~'full ao th
a epoe
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su.eh nnl°n tn„ p i.af t o ben pl ied to theamount o f use tnv e e
straetien m5) G-bjet alateri t th ti f t
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3) All use tax funds collected by the Town in accordance with the
provisions of this chapter shall be appropriated and spent solely for
transportation and recreation capital projects and services and infrastructure
related thereto."
d) § 3.08.320. Sales tax - Credit for sales or use taxes previously paid to
another municipality.
i) The title of § 3.08.320 is changed to state "Sales and use tax - Credit
for sales or use taxes previously paid to another municipality."
3
ATTACHMENT A
ii) Section 3.08.320 is repealed and reenacted to state as follow:
For transactions consummated on or after January 1, 1986, the town's sales tax shall
not apply to the sale of tangible property at retail or the furnishing of services if the
transaction was previously subjected to a sales or use tax lawfully imposed on the
purchaser or user by another statutory or home rule municipality equal to or in excess
of that provided for in Section 3.08.030. A credit shall be granted against the town's
lawfully imposed local sales or use tax previously paid by the purchaser or user to the
previous statutory or home rule municipality. The amount of the credit shall not
exceed the town's sales or use tax imposed pursuant to Section 3.08.030."
Section 2. Section 3.08.035 of the Avon Municipal Code is amended as follows:
3.08.035 Tax Credit. Notwithstanding any other provisions of this chapter, there
shall be granted to each person owing 1) the sales tax on sales consummated within
The Village (at Avon) or 2) the use tax on the purchase price paid or the acquisition
costs of construction materials brought within the boundaries of the Town for the
purpose of being used to build, construct, reconstruct, alter, expand, modify or
improve any building, dwelling or other structure or improvement to real property
within The Village (at Avon) a temporary tax credit against collection of the tax equal
to the amount of any retail sales or use fee paid by or on behalf of such person. The
amount of the credit shall not exceed the amount of the tax. No such credit shall shall
be granted subsequent to termination of the collection of the retail sales fees and use
fees terminate pursuant to the Annexation and Development Agreement for. The
Village (at Avon). Neither the ability of the Town to grant the temporary tax credit
nor the termination of the credit shall constitute a tax increase, the imposition of a
new tax or a tax policy change_" .
4
ATTACHMENT A
Section 2 3. Election and Effective Date.
Under Article X, Section 20 of the Colorado Constitution, the Council refers the tax
increase provided in this ordinance to the qualified electors of the Town for approval at the
regular Town election scheduled for November 5, 2002. If approved by a majority of the
electors voting thereon, this ordinance shall become effective when the Town Clerk or other
designated election official duly files the required certificate of election, or on January 1,
2003, whichever occurs last.
Section -3 4. Ballot Title and Question.
The ballot title and question submitted to the electors shall be
as follows:
SHALL TOWN OF AVON TAXES BE INCREASED $1.6
MILLION ($1,600,000) ANNUALLY IN 2003, AND BY
WHATEVER ADDITIONAL AMOUNTS ARE RAISED
ANNUALLY THEREAFTER, BY THE IMPOSITION OF A
FOUR PERCENT (4%) USE. TAX ON THE PRIVILEGE OF
USING OR CONSUMING IN THE TOWN ANY
CONSTRUCTION MATERIALS, SUCH USE TAX
REVENUES TO BE APPROPRIATED AND SPENT
SOLELY FOR TRANSPORTATION AND RECREATION
CAPITAL PROJECTS AND SERVICES AND
INFRASTRUCTURE RELATED THEREO, ALL IN
ACCORDANCE WITH ORDINANCE NO. 01 08 02-18
ADOPTED BY THE TOWN COUNCIL; AND SHALL THE
REVENUES COLLECTED FROM SUCH TAX AND ANY
EARNINGS FROM THE INVESTMENT OF SUCH
REVENUES BE COLLECTED AND SPENT AS A VOTER
APPROVED REVENUE CHANGE AND AN EXCEPTION
TO THE LIMITS WHICH WOULD OTHERWISE .APPLY
UNDER ARTICLE X, SECTION 20 OF THE COLORADO
CONSTITUTION OR ANY OTHER LAW?
5
ATTACHMENT A
if the-eleeter-s fie-this -ewee, then en the-effies4ive date spesified abeve, all
er,dinamees or- aAs of ` r-di anew in ` enfl et herewith are hereby eale a but enAy to the °40..4
The provisions of tMs " -difial}se-ar~aei bleu and invalidity of an pap shall not a ff `.t thee
INTRODUCED, APPROVED ON FIRST READING, AND ORDERED
PUBLISHED IN FULL AND POSTED, this 9th day of July, 2002, and a public hearing on
this ordinance shall be held at the regular meeting of the Town Council of the Town of Avon,
Colorado on the 23rd day of July, 2002, at 5:30 p.m. in the Municipal Building of the Town
of Avon, Colorado.
TOWN OF AVON, COLORADO:
Mayor
ATTEST:
Town Clerk
6
ATTACHMENT A
INTRODUCED, APPROVED ON SECOND READING, AND ORDERED
PUBLISHED AND POSTED this _ day of , 2002.
TOWN OF AVON, COLORADO:
Mayor
ATTEST:
Town Clerk
APPROVED AS TO FORM:
Town Attorney
7
ATTACHMENT A
SAMPLE USE TAX BALLOT QUESTION
SHALL TOWN OF AVON TAXES BE INCREASED $____ MILLION ($____________)
ANNUALLY IN 2022, AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED
ANNUALLY THEREAFTER, BY THE IMPOSITION OF A FOUR PERCENT (4%) USE TAX
ON THE PRIVILEGE OF USING OR CONSUMING IN THE TOWN ANY CONSTRUCTION
MATERIALS, SUCH USE TAX REVENUES TO BE APPROPRIATED AND SPENT SOLELY
FOR THE PURPOSE OF FUNDING COMMUNITY HOUSING, INCLUDING THE
ACQUISITION OF LAND FOR HOUSING, CONSTRUCTION OF HOUSING, EXTENSION
OF PUBLIC INFRASTRUCTURE TO SERVE HOUSING DEVELOPMENT, PURCHASE OF
DEED RESTRICTIONS, DOWNPAYMENT ASSISTANCE PROGRAMS, AND
PARTNERSHIP WITH PUBLIC AND PRIVATE ENTITIES TO DEVELOP COMMUNITY
HOUSING, IN ACCORDANCE WITH SUCH TERMS, CONDITIONS AND POLICIES AS
MAY BE ADOPTED BY THE AVON TOWN COUNCIL, ALL IN ACCORDANCE WITH
ORDINANCE NO. 21-____ ADOPTED BY THE TOWN COUNCIL; AND SHALL THE
REVENUES COLLECTED FROM SUCH TAX AND ANY EARNINGS FROM THE
INVESTMENT OF SUCH REVENUES BE COLLECTED AND SPENT AS A VOTER
APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD
OTHERWISE APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO
CONSTITUTION OR ANY OTHER LAW.
ATTACHMENT B
970.748.4004 eric@avon.org
TO: Honorable Mayor Smith Hymes and Council members
FROM: Eric Heil, Town Manager
RE: Work session: Regional Transit Authority – Establishing an IGA
DATE: April 12, 2022
SUMMARY: This report provides an update on the Regional Transit Authority (RTA) formation effort and
the 1st review of the draft Intergovernmental Agreement (IGA.) The 2nd hearing and approval of the the IGA
is scheduled for May 10, 2022.
As part of the formal process of setting up an RTA as defined by State law, the local governments involved
in establishing the RTA must work together to create an IGA. The IGA is a legal document that sets forth
the governance, service goals, and other key operating provisions of the RTA. The IGA must be agreed
upon by the elected Councils and Boards in each community. Ultimately, voters must agree to the
formation of the RTA and any taxing or bonding requests made to provide funding for the RTA’s services
and operations.
The IGA approval process requires two separate public hearings to be held in each jurisdiction considering
adopting the IGA. The public hearings will provide details about the proposed RTA and the draft IGA for the
creation of the Eagle Valley Transportation Authority, and feedback from the Council and the public will be
shared with the RTA formation committee to help address local community needs and concerns.
Background on the RTA formation effort can be found in attachments C and D.
REQUESTED COUNCIL DIRECTION: Provide feedback and confirmation the proposed draft IGA is
consistent with Town goals and is desired.
Thank you, Eric
ATTACHMENT A: Draft IGA
ATTACHMENT B: RTA IGA Presentation
ATTACHMENT C: Aug 24, 2021, Council Work Session - RTA Formation MOU
ATTACHMENT D: Feb 22, 2022, Council Update - RTA Formation
Res. 22-09
Page 1 of 2
RESOLUTION 22-09
ADOPTION OF EAGLE VALLEY REGIONAL
TRANSIT AUTHORITY
INTERGOVERNMENTAL AGREEMENT
WHEREAS, pursuant to Title 43, Article 4, Part 6 of the Colorado Revised Statutes, as amended
(the “Act”), Colorado counties and municipalities are authorized to establish, by contract,
regional transportation authorities (“RTAs”) to finance, construct, operate and maintain regional
transportation systems; and
WHEREAS, pursuant to Title 29, Article 1, Part 2 of the Colorado Revised Statutes, as
amended, and Article XIV, Section 18 of the Colorado Constitution, governments may contract
with one another to provide any function, service or facility lawfully authorized to each of the
contracting units and any such contract may provide for the joint exercise of the function, service
or facility, including the establishment of a separate legal entity to do so; and
WHEREAS, enhancing regional transportation services for Town of Avon residents, businesses
and visitors is a crucial step in meeting our community’s workforce, economic and climate goals;
and
WHEREAS, extensive input from local officials, businesses, employees, nonprofits and
community members have made clear that the creation of an RTA is a desirable way to plan,
finance, implement and operate a regional public transportation system that better meets the
needs of Town of Avon; and
WHEREAS, the Avon Town Council has reviewed the proposed Intergovernmental Agreement
by and among Beaver Creek Metropolitan District, the Town of Avon, Eagle County, the Town
of Eagle, the Town of Gypsum, the Town of Minturn, the Town of Red Cliff, and the Town of
Vail, establishing the Eagle Valley Transportation Authority as a Colorado RTA (the
“Agreement”) attached hereto as EXHIBIT A: EAGLE VALLEY REGIONAL TRANSIT
AUTHORITY INTERGOVERNMENTAL AGREEMENT; and
WHEREAS, the Avon Town Council supports the collaborative approach memorialized in the
Agreement and concurs that the proposed Eagle Valley Transportation Authority is poised to
improve transit service, increase ridership and efficiency across the valley’s existing transit
agencies, provide affordable or free transit to [the entity’s/municipality’s] visitors and employee
base, strengthen the connection between the valley’s different communities and advance [the
entity/municipality’s specific local climate goal] by reducing car trips and increasing the use of
low and no emission public transportation; and
WHEREAS, section 603(4) of the Act provides that no contract establishing an RTA shall take
effect unless first submitted to a vote of the registered electors residing within the boundaries of
the proposed authority; and
Res. 22-09
Page 2 of 2
WHEREAS, the Avon Town Council acknowledges that referral of the Agreement to the
electorate will be subject to a subsequent act of the Avon Town Council in the sole discretion of
the Avon Town Council; and,
WHEREAS, the Avon Town Council finds that the adoption of this Resolution will promote
the health, safety and general welfare of the Avon community.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN OF AVON that the Avon Town
Council as follows:
THAT, the Avon Town Council hereby approves the Agreement in the form presented.
THAT, the Avon Town Council authorizes the Mayor to execute the Agreement in substantially
the form attached hereto, with such revisions or modifications, not inconsistent with this
Resolution or the Agreement, as the Mayor, with review of the Town Attorney and Town
Manager, may determine to be necessary or appropriate.
ADOPTED May 24, 2022 by the AVON TOWN COUNCIL
By: Attest: ___________________________
Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk
April 2022 Draft (Public Hearing #1)
EAGLE VALLEY TRANSPORTATION AUTHORITY
INTERGOVERNMENTAL AGREEMENT
by and among
BEAVER CREEK METROPOLITAN DISTRICT
TOWN OF AVON, COLORADO
EAGLE COUNTY, COLORADO
TOWN OF EAGLE, COLORADO
TOWN OF GYPSUM, COLORADO
TOWN OF MINTURN, COLORADO
TOWN OF RED CLIFF, COLORADO
and
TOWN OF VAIL, COLORADO
Dated as of [May 31, 2022]
Providing for the establishment of the “Eagle Valley Transportation Authority” as a
Colorado Regional Transportation Authority pursuant to the Regional Transportation Law,
Title 43, Article 4, Part 6, Colorado Revised Statutes, as amended.
April 2022 Draft (Public Hearing #1)
i
TABLE OF CONTENTS
Page
DEFINITIONS ............................................................................................................2
ESTABLISHMENT OF THE AUTHORITY AND INITIAL MEMBERS ...............4
BOARD OF DIRECTORS .........................................................................................7
ADVISORY COMMITTEES ...................................................................................10
OFFICERS ................................................................................................................10
POWERS OF THE AUTHORITY ...........................................................................12
FUNDING THE AUTHORITY................................................................................15
REORGANIZATION ...............................................................................................16
MEMBERS ...............................................................................................................17
TERM AND DISTRIBUTION OF ASSETS UPON TERMINATION .................18
DEFENSE OF DIRECTORS, OFFICERS, MEMBERS OF ADVISORY
COMMITTEES AND EMPLOYEES .....................................................................................19
AMENDMENTS ....................................................................................................19
MISCELLANEOUS ...............................................................................................20
April 2022 Draft (Public Hearing #1)
EAGLE VALLEY TRANSPORTATION AUTHORITY
INTERGOVERNMENTAL AGREEMENT
THIS EAGLE VALLEY TRANSPORTATION AUTHORITY
INTERGOVERNMENTAL AGREEMENT (this “Agreement”) is entered into as of [May 31,
2022] by and among the BEAVER CREEK METROPOLITAN DISTRICT, the TOWN OF
AVON, COLORADO; EAGLE COUNTY, COLORADO; the TOWN OF EAGLE,
COLORADO; the TOWN OF GYPSUM, COLORADO; the TOWN OF MINTURN,
COLORADO; the TOWN OF RED CLIFF, COLORADO; and the TOWN OF VAIL,
COLORADO (together the “Initial Signatories”).
RECITALS
WHEREAS, pursuant to Title 43, Article 4, Part 6 of the Colorado Revised Statutes, as
amended (the “Act”), Colorado counties, municipalities, and special districts with street
improvement, safety protection, or transportation powers, are authorized to establish, by contract,
regional transportation authorities, which, upon the satisfaction of the conditions set forth herein,
are authorized to finance, construct, operate and maintain regional transportation systems;
WHEREAS, pursuant to Title 29, Article 1, Part 2 of the Colorado Revised Statutes, as
amended (the “Intergovernmental Relations Statute”), and Article XIV, Section 18 of the Colorado
Constitution, governments may contract with one another to provide any function, service or
facility lawfully authorized to each of the contracting units and any such contract may provide for
the joint exercise of the function, service or facility, including the establishment of a separate legal
entity to do so;
WHEREAS, the Initial Signatories are a Colorado county, a Colorado special district, and
certain Colorado municipalities located within the boundaries of Eagle County that desire to form
a regional transportation authority to serve the greater Eagle River Valley community pursuant to
the Act and the Intergovernmental Relations Statute for the purpose of financing, constructing,
operating, and maintaining regional transportation systems;
WHEREAS, enhancing regional transportation services for Eagle County residents,
businesses and visitors is a crucial step in meeting the communities’ workforce, economic and
climate goals, and regional transportation services support Eagle County socially and
economically, helping employees get to work safely and visitors to enjoy their Eagle County
experience;
WHEREAS, the signatories of this Agreement wish to work toward collaborative solutions
that will increase transportation and transit options throughout the greater Eagle River Valley, as
well as increase air connections to the Eagle River Valley;
WHEREAS, extensive input from local businesses, employees, nonprofits and community
members have made clear that the creation of a Regional Transportation Authority (“RTA”) is a
April 2022 Draft (Public Hearing #1)
2
desirable way to plan, finance, implement and operate a more comprehensive regional
transportation system that better meets the needs of communities;
WHEREAS, an RTA serving the greater Eagle River Valley is poised to improve transit
service, increase ridership and efficiency across the valley’s existing transit agencies, provide
affordable or free transit to the valley’s visitors and employee base, strengthen the connection
between the valley’s different communities, and advance local climate action goals by reducing
car trips and increasing the use of low or zero emission public transportation; and
WHEREAS, transit services promote independent living for the elderly and the disabled
by providing essential links to medical, social and other services, and the region recognizes the
need to improve mobility options for all segments of the population.
AGREEMENT
NOW, THEREFORE, for and in consideration of the mutual covenants set forth below, the
Initial Signatories hereby agree as follows:
DEFINITIONS
Definitions from the Act. The following terms shall, when capitalized,
have the meanings assigned to them in Section 602 of the Act: “Bond,” “Construct,”
“Construction,” “County,” “Municipality,” “Person,” “Regional Transportation Activity
Enterprise,” “Regional Transportation System,” and “State”.
Other Definitions. The following terms shall, when capitalized, have the
following meanings:
“Act” is defined in the Recitals.
“Advisory Committee” means two or more persons appointed by the Board pursuant to
Article 4 of this Agreement for the purpose of providing advice to the Board.
“Agreement” means this Eagle Valley Transportation Authority Intergovernmental
Agreement, as amended from time to time in accordance with the terms contained therein.
“Alternate Director” means any person appointed as an Alternate Director pursuant to
Section 3.03 of this Agreement.
“Authority” means the Eagle Valley Transportation Authority, a separate political
subdivision of and body corporate of the State established pursuant to this Agreement as a regional
transportation authority under the Act and as a separate legal entity under the Intergovernmental
Relations Statute.
April 2022 Draft (Public Hearing #1)
3
“Authority Sales Tax” means a sales and use tax levied by the Authority in all or any
designated portion of the Members in accordance with Section 605(1)(j)(1) of the Act.
“Authorized Transportation Projects” refers to the Regional Transportation Systems
projects described in Appendix C of this Agreement, as such projects may be amended from time
to time in accordance with Article 6 of this Agreement.
“Ballot Question” refers to any of the questions listed in Section 2.04(a)(i)-(viii) of this
Agreement, and shall mean a “Ballot Issue,” as defined in Title 1, Article 1, Part 104(2.3),
Colorado Revised Statutes, as amended. The Ballot Question for each of the Initial Signatories are
collectively referred to as the “Ballot Questions.”
“Board” means the Board of Directors of the Authority.
“Boundaries” means the boundaries of the Authority illustrated in Appendix A-1 and
described in Appendix A-2 of this Agreement, as such Appendices may be amended from time-
to-time in accordance with Article 12 of this Agreement.
“Director” means any person appointed as a Director pursuant to Section 3.02 of this
Agreement Whenever the person appointed as a Member’s Director is absent from a Board
meeting, the term “Director” shall mean the Alternate Director, if any, appointed by such Member
pursuant to Section 3.03 of this Agreement.
“Division of Local Government” means the Division of Local Government in the State
Department of Local Affairs.
“ECRTA” means the Eagle County Regional Transit Authority (Fund 1151) which operates
Eagle County’s current ECO Transit public transportation service, and which is also referred to in
this Agreement as “ECO Transit.”
“Governing Body” means, when used with respect to a Member, the town council, board
of trustees, board of commissioners or other legislative body, as appropriate, of such Member.
“Initial Boundaries” means the Boundaries of the Authority on the date the Authority is
originally established pursuant to Article 10.01 of this Agreement, as such Initial Boundaries are
illustrated in Appendix A-1 and described in Appendix A-2 of this Agreement.
“Initial Members” means the Initial Signatories who become Members on the date on
which the Authority is originally established pursuant to Section 2.05 of this Agreement.
“Initial Signatories” means the county, special district, and municipalities that are
signatories to this Agreement in its original form.
“Intergovernmental Relations Statute” is defined in the Recitals.
April 2022 Draft (Public Hearing #1)
4
“Member” means (a) the Initial Members and (b) the State or any Municipality or County
or special district that becomes a member of the Authority pursuant to Section 9.03 of this
Agreement.
“MOU” means the Memorandum of Understanding Establishing a Regional Transit
Authority Formation Committee entered into by and among the Initial Signatories for the purpose
of researching and proposing the structure of an RTA to serve the greater Eagle River Va lley
community.
“Officer” means the Chair, Vice Chair, Secretary, Treasurer or Executive Director of the
Authority, and any subordinate officer or agent appointed and designated as an officer of the
Authority by the Board.
“Regional Transportation Systems” shall have the meaning given to it in Section 602(16)
of the Act.
“Visitor Benefit Tax” means a visitor benefit tax levied by the Authority in all or any
designated portion of a Member in accordance with Section 605(1)(i.5) of the Act and Section 7.01
hereof.
ESTABLISHMENT OF THE AUTHORITY AND INITIAL MEMBERS
Establishment. A regional transportation authority to be known as the
“Eagle Valley Transportation Authority” shall be established as a separate political subdivision
and body corporate of the State pursuant to the Act and as a separate legal entity created by this
Agreement among the Initial Members pursuant to the Intergovernmental Relations Statute,
effective upon satisfaction of the following conditions:
(a) each Initial Member (i) has held at least two public hearings on the subject of this
Agreement in accordance with Section 603(3) of the Act; and (ii) has executed this Agreement,
which execution shall constitute a representation by such Initial Member to t he other Initial
Members that the executing Initial Member has held the public hearings required by Section 603(3)
of the Act and that the Governing Body of such Initial Member has duly authorized its execution,
delivery and performance of this Agreement;
(b) this Agreement will be submitted for approval, and has been approved by, a
majority of the registered electors residing within the boundaries of the Initial Members at the time
of the election, who voted in a general election or special election called for such purpose in
accordance with Section 603(4) of the Act, which, for purposes of the November 8, 2022, election,
shall be determined based on the votes cast on the Ballot Questions approved by the registered
electors voting on the Ballot Questions that approve the participation in the Authority; and
April 2022 Draft (Public Hearing #1)
5
(c) the Director of the Division of Local Government has issued a certificate pursuant
to Section 603(1) of the Act stating that the Authority has been duly organized according to the
laws of the State.
Purpose. The purpose of the Authority is to plan, finance, implement and
operate an efficient, sustainable and regional public multimodal transportation system at any
location or locations within or without the Boundaries of the Authority, and exercise any or all
other powers authorized by, and subject to compliance with, the Act.
Boundaries. Subject to Section 2.05 and amendment to reflect to outcome
of the Ballot Questions, the Initial Boundaries of the Authority shall be as illustrated in Appendix
A-1 and described in Appendix A-2 of this Agreement. For any territory included or annexed in
the boundaries of a Member, the Boundaries shall automatically be amended to include such
territory that has been included or annexed into the boundaries of the Member (for taxation
purposes, as if such territory was included in the Boundaries of the Authority because the territory
is included in the boundaries of such Member).
Voter Approval.
(a) The Initial Signatories agree to submit Ballot Questions seeking voter approval of
the establishment of the Authority; the baseline funding of the Authority in accordance with Article
7 and the exemption of certain Authority revenues from the revenue limitations of Article X,
Section 20 of the Colorado Constitution (“TABOR”) at an election held on November 8, 2022, that
is conducted in accordance with the Act and other applicable law. Eight separate questions, which
are hereafter referred to by the names indicated below and drafts of which are attached of this
Agreement as Appendixes B-1 through B-8, shall be submitted to the registered electors residing
within the following described areas within the boundaries of the Initial Signatories:
(i) the “Avon Question,” a draft of which is attached hereto as Appendix B-1,
shall be submitted to the electors of the Town of Avon;
(ii) the “Beaver Creek Question,” a draft of which is attached hereto as
Appendix B-2, shall be submitted to the electors of the Beaver Creek Metropolitan District;
(iii) the “Eagle Question,” a draft of which is attached hereto as Appendix B-3,
shall be submitted to the electors of the Town of Eagle;
(iv) the “Gypsum Question,” a draft of which is attached hereto as Appendix B-
4, shall be submitted to the electors of the Town of Gypsum;
(v) the “Minturn Question,” a draft of which is attached hereto as Appendix B-
5, shall be submitted to the electors of the Town of Minturn;
(vi) the “Red Cliff Question,” a draft of which is attached hereto as Appendix
B-6, shall be submitted to the electors of the Town of Red Cliff;
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(vii) the “Vail Question,” a draft of which is attached hereto as Appendix B-7,
shall be submitted to the electors of the Town of Vail; and
(viii) the “Unincorporated Eagle County Question,” a draft of which is attached
hereto as Appendix B-8, shall be submitted to the electors of the unincorporated area of
Eagle County within the boundaries described in Appendix A-2, exclusive of electors
residing in the municipalities and special district that are Initial Signatories of this
Agreement.
(b) With the intent to put forth these measures as a coordinated election under the Clerk
of Eagle County, the Governing Body of each of the Initial Signatories named in the title of each
Ballot Question shall take all actions necessary to submit such questions to the appropriate
registered electors at the Election but may modify the Ballot Questions submitted by it in any
manner that is consistent with the terms of this Agreement and the Ballot Questions attached in
Appendices B-1 through B-8. Any Governing Body’s modification(s) to a Ballot Question that are
inconsistent with the terms of this Agreement and the attached appendices shall require the written
consent of each of the other Initial Signatories prior to its submittal to that body’s registered
electors. The designated election official for a coordinated election shall be the Eagle County Clerk
and Recorder.
(c) The costs of conducting the November 8, 2022, election shall be allocated from the
funding contributions set forth in the MOU.
Initial Members.
(a) Subject to Section 2.05(b) of this Agreement, the Initial Signatories whose
participation in the Authority is authorized by a majority of the registered electors voting on the
Ballot Questions indicated below shall be the Initial Members of the Authority on the date the
Authority is originally established pursuant to this Agreement:
(i) the Town of Avon will be an Initial Member if the Town of Avon electors
approve the Avon Question;
(ii) the Beaver Creek Metropolitan District will be an Initial Member if the
Beaver Creek Metropolitan District electors approve the Beaver Creek Question;
(iii) the Town of Eagle will be an Initial Member if the Town of Eagle electors
approve the Eagle Question;
(iv) the Town of Gypsum will be an Initial Member if the Town of Gypsum
electors approve the Gypsum Question;
(v) the Town of Minturn will be an Initial Member if the Town of Minturn
electors approve the Minturn Question;
(vi) the Town of Red Cliff will be an Initial Member if the Town of Red Cliff
electors approve the Red Cliff Question;
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(vii) the Town of Vail will be an Initial Member if the Town of Vail electors
approve the Vail Question; and
(viii) Eagle County will be an Initial Member if the electors within the
unincorporated area of Eagle County described in Section 2.04(a)(viii) approve the
Unincorporated Eagle County Question.
(b) The Initial Signatories agree that in order for the Regional Transportation Systems
to be efficiently and effectively provided within the Authority’s service area, participation of each
of the Town of Avon, the Beaver Creek Metropolitan District, Eagle County, and the Town of Vail,
is essential. This Agreement will terminate automatically and be of no further force and effect if
the registered electors voting on each of the Avon Question, the Beaver Creek Question, the Vail
Question, and the Unincorporated Eagle County Question do not each approve their respective
ballot questions at the November 8, 2022, election.
BOARD OF DIRECTORS
Establishment and Powers. The Authority shall be governed by a Board
of Directors as described in this Article 3. The Board shall exercise and perform all powers,
privileges and duties vested in or imposed on the Authority. Subject to the provisions of this
Agreement, the Board may delegate or prescribe the performance of any of its powers to any
Director, Officer, employee or agent of the Authority with sufficient direction to comply with the
non-delegation doctrine.
Directors. The Board shall be composed of one Director appointed by each
Member.
Alternate Directors. In addition to the Director appointed by it, each
Member shall appoint an Alternate Director who shall be deemed to be such Member ’s Director
for all purposes, including, but not limited to, voting on resolutions whenever the person appointed
as such Member’s Director is absent from a Board meeting or in the event such Director has
resigned or been removed and no replacement Director has been appointed.
Appointment of Directors and Alternate Directors. As required by
Section 603(2)(b)(1) of the Act, the Director and the Alternate Director appointed by a Member
shall both be members of the Governing Body of such Member, and shall be appointed as a
Director or Alternate Director by the Governing Body of such Member.
Terms of Office. The term of office of each Director and Alternate Director
shall commence with the first meeting of the Board following his or her appointment and shall
continue until (a) the date on which a successor is duly appointed or (b) the date on which he or
she ceases to be a member of the Governing Body of the appointing Member.
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Resignation and Removal. Any Director or Alternate Director (a) may
resign at any time, effective upon receipt by the Secretary or the Chair of written notice signed by
the person who is resigning; and (b) may be removed at any time by the Governing Body of the
Member that appointed him or her, effective upon receipt by the Secretary or the Chair of written
notice signed by the Governing Body of the appointing Member.
Vacancies. Vacancies in the office of any Director or Alternate Director
shall be filled in the same manner in which the vacant office was originally filled pursuant to
Sections 3.02 through 3.04 of this Agreement.
Compensation. Directors and Alternate Directors shall serve without
compensation, but may be reimbursed for expenses incurred in serving in such capacities upon
such terms and pursuant to such procedures as may be established by the Board.
Meetings, Notice. The Board shall annually establish times for regular
meetings of the Board, which shall meet no less than quarterly. The Board may additionally call
special meetings as it deems necessary or desirable. Meetings will be held at the location as may
from time to time be designated by the Board. Public notice of meetings shall be posted in the
locations established by the Board, in accordance with the Colorado Open Meetings Law, Section
24-6-401 et seq., Colorado Revised Statutes, as amended. Except in the case of special or
emergency meetings where such advance notice is not practicable, the Authority shall provide at
least 48 hours’ advance notice of meetings to each Director and Alternate Director and to the
Governing Body of each Member.
Resolutions, Quorum. All actions of the Board shall be by resolution,
which may be written or oral, approved at a meeting that is open to the public according to the
voting requirements set forth in Section 3.11. At least a quorum shall be necessary to take any
Board action and at least two-thirds of all Directors then in office who are eligible to vote thereon
will be required for action pursuant to Section 3.11(a). A quorum shall mean a number of Directors
greater than half the total number of Directors then in office (which, if all Initial Signatories
become Initial Members, will be five of the eight initial Directors). The Board may establish
bylaws providing for electronic participation by a Director in a meeting, including requirements
for a Director participating electronically to be considered “present” for purposes of establishing
a quorum and voting on agenda items.
Voting Requirements.
(a) Except as otherwise provided in subsection (b) of this Section, resolutions of the
Board shall be adopted upon the affirmative vote of at least two-thirds of the Directors then in
office who are eligible to vote thereon (which, if all Initial Signatories become Initial Members
and no Director is ineligible to vote, will be six of the eight initial Directors).
(b) Provided a quorum is present, the following actions shall be approved upon the
affirmative vote of a majority of the Directors of the Board then present who are eligible to vote
thereon:
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(i) administrative approvals such as setting meeting locations and times and
ministerial actions required for the Authority’s compliance with applicable law;
(ii) approvals authorized by bylaws or rules previously approved by the Board;
(iii) approval of contracts for expenditures included in an annual budget
previously approved by the Board;
(iv) approval of contracts for transportation services included in an annual
budget previously approved by the Board;
(v) approval of contracts for the assumptions of existing facilities and
transportation infrastructure, or the development of new facilities and transportation
infrastructure, included in an annual budget previously approved by the Board; and
(vi) other actions that are reasonably incidental to prior Board approvals made
under subsection (a) of this Section.
Special Rules Regarding Adoption of the Authority’s Annual Budget.
Notwithstanding Section 3.10 of this Agreement, if the Board fails to approve the Authority’s
annual budget by resolution adopted in accordance with Section 3.10 of this Agreement by the end
of the immediately preceding fiscal year of the Authority or any earlier date required by State law,
until an annual budget is so adopted, the Authority’s budget for such year shall be the prior year’s
budget, with adjustments approved by a majority of the Directors then in office who ar e eligible
to vote thereon. The procedures set forth in this Section may be modified by bylaws or rules
adopted in accordance with Section 3.15 of this Agreement.
Director Conflicts of Interest. Notwithstanding any other provision of this
Agreement, a Director shall disqualify himself or herself from voting on any issue with respect to
which he or she has a conflict of interest, unless he or she has disclosed such conflict of interest in
compliance with Sections 18-8-308 and 24-18-101 et seq., Colorado Revised Statutes, as amended.
Powers of the Board. The Board shall, subject to the limitations set forth
of this Agreement, have (a) all powers that may be exercised by the board of directors or a regional
transportation authority pursuant to the Act, including, but not limited to, the powers conferred by
Sections 604(1) and (3) of the Act, and (b) all powers that may be exercised by the governing
board of a separate legal entity that has been lawfully created by a contract among the Members
pursuant to the Intergovernmental Relations Statute.
Bylaws and Rules. The Board, acting by resolution adopted as provided for
in Section 3.10 or Section 3.11 of this Agreement, may adopt bylaws or rules governing the
activities of the Authority and the Board, including, but not limited to, bylaws or rules governing
the conduct of Board meetings, voting procedures, the type of resolutions that must be in writing
and procedures for the resolution of issues on which a two-thirds majority cannot be obtained in
accordance with Section 3.11(a) of this Agreement.
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Additional Directors. If at any time there are four or fewer Members, then,
notwithstanding any other provision of this Agreement, in order to comply with the provisions of
Section 603(2)(b)(1) of the Act requiring at least five Directors, the Directors representing the
remaining Members shall, by unanimous consent, appoint such additional Directors and Alternate
Directors as are necessary for there to be five Directors, and may likewise remove such Directors
and Alternative Directors by consensus of the Directors appointed directly by the Members. If
such remaining Directors are unable to reach unanimous consent, each Member shall appoint a
second Director, until the total number of Members exceeds five at which time each Member shall
revert to appointing a sole Director.
References. All references of this Agreement to the Director and Alternate
Director of a Member shall be deemed to refer to the initial and the additional Director and
Alternate Director, as appropriate, appointed by such Member.
ADVISORY COMMITTEES
The Board may appoint, maintain, and/or disband one or more Advisory Committees at
any time in order to advise the Board with respect to policy and service matters. Advisory
Committees shall not be authorized to exercise any power of the Board.
OFFICERS
Generally. The Board shall appoint a Chair, a Vice Chair, a Secretary, a
Treasurer and an Executive Director. The Board also may appoint one or more subordinate officers
and agents, each of whom shall hold his or her office or agency for such term and shall have such
authority, powers and duties as shall be determined from time to time by the Board. The Chair and
the Vice Chair shall be Directors. Other Officers may, but need not, be Directors. Any two or more
of such offices may be held by the same person, except that the offices of Chair and Secretary may
not be held by the same person and the person serving as Executive Director may not hold any
other of such offices. All Officers of the Authority shall be persons of the age of 18 years or older
and shall meet the other qualifications, if any, stated for his or her office elsewhere in this Article
5. Alternate Directors shall not assume the officer position of any Director unless so designated
by action of the Board.
Chair. The Chair shall have the power to call meetings of the Board; the
power to execute, deliver, acknowledge, file and record on behalf of the Authority such documents
as may be required by this Agreement, the Act or other applicable law; and such other powers as
may be prescribed from time to time by the Board. The Chair may execute and deliver contracts,
deeds and other instruments and agreements on behalf of the Authority as are necessary or
appropriate in the ordinary course of its activities or as are duly authorized or approved by the
Board. The Chair shall have such additional authority, powers and duties as are appropriate and
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customary for the office of the chair of the board of directors of entities such as the Authority, and
as the Board may otherwise prescribe.
Vice Chair. The Vice Chair shall be the Officer next in seniority after the
Chair and, upon the death, absence or disability of the Chair, shall have the authority, powers and
duties of the Chair. The Vice Chair shall have such additional authority, powers and duties as are
prescribed by the Board.
Secretary. The Secretary shall give, or cause to be given, notice of all
meetings (including special meetings) of the Board, keep written minutes of such meetings, have
charge of the Authority’s seal (if any), be responsible for the maintenance of all records and files
and the preparation and filing of reports to governmental agencies (other than tax returns), have
authority to impress or affix the Authority’s seal to any instrument requiring it (and, when so
impressed or affixed, it may be attested by his or her signature), and have such other authority,
powers and duties as arc appropriate and customary for the office of Secretary of entities such as
the Authority, and as the Board may otherwise prescribe. If a Treasurer has not been appointed,
the Secretary shall also serve as Treasurer and may use the title of Treasurer in performing the
functions of Treasurer.
Treasurer. The Treasurer shall, subject to rules and procedures established
by the Board, be responsible for the custody of the funds and all stocks, bonds and other securities
owned by the Authority and shall be responsible for ensuring the timely preparation and filing of
all tax returns, if any, required to be filed by the Authority. The Treasurer shall receive all moneys
paid to the Authority and, subject to any limits imposed by the Board or the Chair, shall have
authority to give or authorize receipts and vouchers, to sign and endorse checks and warrants in
the Authority’s name and on the Authority’s behalf, and to give full discharge for the same. The
Treasurer shall also have charge of disbursement of the funds of the Authority, shall ensure that
full and accurate records of the receipts and disbursements are maintained, and shall ensure that
all moneys and other valuables are deposited in such depositories as shall be designated by the
Board. The Treasurer shall ensure deposit and investment of all funds of the Authority in
accordance with this Agreement and laws of the State applying to the deposit and investment of
funds of regional transportation authorities formed under the Act. The Treasurer shall have such
additional authority, powers and duties as are appropriate and customary for the office of Treasurer
of entities such as the Authority, and as the Board may otherwise prescribe. If a Treasurer has not
been appointed, the Secretary shall also serve as Treasurer and may use the title of Treasurer in
performing the functions of Treasurer.
Executive Director. The Executive Director shall be the chief executive
officer of the Authority, shall supervise the activities of the Authority, shall see that all policies,
directions and orders of the Board are carried out and shall, under the supervision of the Board,
have such other authority, powers or duties as may be prescribed by the Board.
Resignation and Removal. Any Officer may resign at any time effective
upon receipt by the Secretary or the Chair of written notice signed by the person who is resigning,
and may be removed at any time by the Board.
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Changes to Authority, Powers and Duties. Notwithstanding any other
provision of this Article 5, the Board at any time may expand, limit or modify the authority, powers
and duties of any Officer or employee.
Vacancies. Vacancies in the office of any Officer or employee shall be filled
in the same manner in which such office was originally filled.
Compensation. The Authority shall determine and may compensate
Officers and employees who are not Directors or Alternate Directors for services performed, and
may reimburse them for expenses incurred, in serving in such capacities upon such terms and
pursuant to such procedures as may be established by the Board.
POWERS OF THE AUTHORITY
General Grant of Powers. The Authority shall, subject to the limitations
set forth in this Agreement, have (i) all of the powers granted to regional transportation authorities
by the Act and (ii) all powers that may be exercised by a separate legal entity created by a contract
among the Members pursuant to the Intergovernmental Relations Statute.
Specific Responsibilities. In addition to the general powers described in
Section 6.01 of this Agreement, the Authority shall have the responsibilities described in this
Section and shall have all powers necessary or convenient to carry out such responsibilities, subject
to the availability of funds and, to the extent required by law, annual appropriation of funds by the
Board. The description of specific responsibilities and powers in this Section shall not, however,
limit the general powers of the Authority described in Section 6.01 of this Agreement.
(a) Regional Transportation Systems. The Authority shall coordinate and may operate
and fund Regional Transportation Systems and provide such related services as are necessary in
order to effect the Authorized Transportation Projects described in Appendix C, as may be
amended from time to time in accordance with Article 12 of this Agreement.
(b) Regional Transportation Planning. The Authority shall engage in annual regional
transportation planning to direct the implementation of Regional Transportation Systems, pursue
local, federal or state funding, and coordinate overall transportation policy within the area in which
it provides transit services. Regional transportation planning shall, as determined by the Board,
include short range service and infrastructure planning as well as long range planning, corridor
investment studies and related impact analyses.
(c) Regional Transportation Demand Management. The Authority shall develop plans,
programs, and materials to support individuals and employers in their efforts to reduce single-
occupancy vehicle trips and mitigate climate impacts in Eagle County, in coordination with local
jurisdictions, CDOT, NWCCOG, the I-70 Coalition and other relevant organizations.
(d) Enhance Local, State, and Federal Coordination.
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(i) The Authority shall represent the Eagle Valley region with regard to state
and federal legislation affecting available funding to support regional transit operations and
with regard to legislation affecting operations.
(ii) The Authority shall coordinate with the Colorado Department of
Transportation (“CDOT”) and federal governing agencies to enhance regional transit,
including but not limited to, improvements to connections to the Authority area via Bustang
and other statewide bus programs and increased air service to the Eagle County Regional
airport.
(e) First-Last Mile Solutions. The Authority may study, design, financially support and
implement, with partnerships as appropriate, first and last mile improvements to enhance transit
ridership, including but not limited to park and rides, pedestrian crossings, and regional innovative
mobility programs such as regional e-bike sharing, on-demand microtransit, and community
vanpools.
(f) Contract Transit Services.
(i) The Authority may enter into contracts with any Member or other person or
entity for the provision of transit services in the manner and subject to the terms of such
contracts.
(ii) The Authority may initially enter into contracts with Eagle County for the
continuation of ECO Transit service during and after the ECRTA Transition Period (as set
out more specifically in Article 8 below) and shall reasonably cooperate with Eagle County
to ensure the continuation of employment for personnel currently employed by Eagle
County in the provision of transit services within the Boundaries of the Authority.
(g) Local Service. The Authority may fund projects or services that serve the residents
and businesses of a single Member (as distinguished from regional services) but, except as
otherwise specifically provided in this Agreement, only pursuant to an agreement to which such
Member pays the Authority for the services provided on the same fully allocated cost basis used
to determine costs of Authority services throughout the Authority’s service area.
(h) Transportation Related Infrastructure. The Authority may assume the maintenance
of existing facilities and may develop new facilities, park-and-rides, transit stops, vehicle
maintenance garages, trails, or other necessary infrastructure related to operations under the
purview of the Authority.
(a) Planning, Construction, and Maintenance of Regional Trails and Pedestrian
Infrastructure.
(i) The Authority shall provide planning and funding support for regional
public trail maintenance, improvement, and construction, in cooperation with Members,
advisory groups and other agencies, including but not limited to USFS, BLM and CDOT.
The Authority will place emphasis on multi-modal transportation-oriented trails that
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provide improved accessibility and connections between transit nodes, population centers,
and communities.
(ii) The Authority may plan for transitioning the operations, maintenance,
capital improvements, and funding required for Eagle County’s ECO Trails partnership,
including the Eagle Valley Trail, after completion of all currently planned sections and no
sooner than December 31, 2024.
(i) Contract Air Services. The Authority may enter into contracts with commercial air
service carriers for the provision of air services in the manner and subject to the terms of such
contracts.
(j) Roadway Improvements. Subject to the Gypsum Question first being approved by
the electors of the Town of Gypsum, the Authority shall provide financial support for the
construction on an EGE Airport interchange, including commitment of matching funds to be
combined with other local matching funds in support of the pursuit of state and federal grant funds.
Any obligation of the Authority to provide matching funds will be conditional upon first securing
funds for construction of the EGE Airport Interchange from all other available federal, state, and
local funding sources and shall not exceed an amount budgeted therefor by the Board. It is
anticipated that the Town of Eagle, Town of Gypsum, Eagle County, or some combination thereof
will be the responsible entities for all permitting, financing and construction. and the Authority’s
role would be limited to providing matching funds as described in this Section.
Limitations on Powers of the Authority. Notwithstanding Sections 6.01
and 6.02 of this Agreement, the powers of the Authority shall be limited as follows:
(a) no action to establish or increase a tax or to create a multiple fiscal year debt or
other financial obligation that is subject to Section 20(4)(h) of Article X of the State Constitution
shall take effect unless first submitted to a vote in accordance with Section 612 of the Act;
(b) the Board shall deliver notice of any proposal to establish, increase or decrease any
tax to any County, Municipality or special district Member where the proposed tax or fee would
be imposed in accordance with Section 613 of the Act; and
(c) a notice of the imposition of or any increase in any fee or tax or the issuance of
Bonds shall be sent to the Division of Local Government and shall be filed with the State Auditor
and the State Transportation Commission in accordance with Section 614 of the Act.
Limitations. If any portion of the Regional Transportation System alters the
physical structure of or negatively impacts the safe operation of any state or local transportation
improvement, the Authority shall, upon the request of the Governing Body of the jurisdiction
impacted by the transportation improvement, in order to ensure coordinated transportation
planning, efficient allocation of resources, and the equitable sharing of costs, enter into an
intergovernmental agreement between the Authority and such jurisdiction concerning the
applicable portion of the Regional Transportation System before commencing physical
construction of that particular improvement.
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FUNDING THE AUTHORITY
Baseline Funding. The baseline funding of the Authority shall be provided
from the following sources:
(a) Initial Authority Sales and Use Tax. Subject to Section 2.05(b) of this Agreement,
upon approval by the registered electors of the Ballot Question for each Initial Member, a sales
and use tax of one-half percent (0.5%) shall be imposed in all areas within the Initial Boundaries
of the Authority.
(b) Eagle County 0.5% Transportation Sales Tax. Eagle County shall pay to the
Authority the proportion of the proceeds of the Eagle County 0.5% Transportation Sales Tax
accrued on and after January 1 of the year following the Effective Date of this Agreement and that
are allocated to ECRTA operations as of the Effective Date. To the extent required by law, the
obligation of Eagle County to make such payments may be subject to annual appropriation by the
Board of County Commissioners of Eagle County.
(c) Visitor Benefit and Lodging Tax. The Visitor Benefit Tax imposed by the Authority
on persons who purchase overnight rooms or accommodations shall, upon satisfaction of the
conditions stated below, be imposed at a rate of 1% within the Boundaries of the Authority:
Such Visitor Benefit Tax shall apply to all types of accommodations available for rent for
a period of thirty days or less within the Boundaries of the Authority. The proceeds of the Visitor
Benefit Tax shall be used by the Authority solely to finance, construct, operate, and maintain
Regional Transportation Systems and provide incentives to overnight visitors to use public
transportation. To the extent that the imposition of an additional tax by the Authority is precluded
by Section 43-4-605(1)(i.5)(I), C.R.S., such Member shall seek alternative sources of funding, or
pledge existing tax revenues, in an equivalent amount.
Discretionary Member Contributions. A Member may, at its sole
discretion, offer to make cash contributions to the Authority, provide in-kind services to the
Authority or pay costs that otherwise would have been paid by the Authority (referred to as a
“Discretionary Member Contribution”). If a Member offers to make a Discretionary Member
Contribution, the Authority will, subject to Board approval on a case-by-case basis, make a good
faith effort to provide additional transportation services within the boundaries of such Member
with a value, or grant such Member a credit against other contributions or contract service
payments to the Authority by or on behalf of such Member, in an amount equal to the Discretionary
Member Contribution.
Pursuit of Grants. The Authority shall actively pursue grants to support its
activities, including grants for offsetting operating and capital costs, long range planning and
environmental review, and major capital improvements. The Authority shall also cooperate and
assist Members in their pursuit of grants for transportation projects.
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Capital Projects and Bonds. The Authority may fund capital projects by
the issuance of Authority Bonds pursuant to Section 609 of the Act if voter approval is obtained
for the issuance of such Bonds as required by Section 612(2) of the Act; through lease-purchase
agreements or other arrangements permitted by, and subject to compliance with the applicable
provisions of, State and federal law; or through one or more agreements with one or more
Members. Bond issuances by Regional Transportation Enterprises formed pursuant to Section 606
of the Act do not require voter approval.
No Implied Limits on Powers. Except as otherwise specifically provided,
no provision of this Article 7 shall limit the Authority’s powers under the Act.
REORGANIZATION
Reorganization Plan. All relevant assets and liabilities of ECRTA will be
transferred to the Authority in accordance with this Article 8 within an 18 month period of time
from the Effective Date of this Agreement and establishment of the Authority (the “ECRTA
Transition Period.”)
ECRTA Transition Period, Maintenance of Effort. During the ECRTA
Transition Period, the Authority will undertake the following:
(a) The Authority will assume responsibility for the services provided by ECRTA and
will begin receipt transfers of the operating revenues of ECRTA (as distinguished from the
contributions to the Roaring Fork Transportation Authority by its members) from Eagle County no
later than January 1 of the year following formation of the Authority in accordance with Section
7.01(b) of this Agreement; provided, however, that the Authority may not allocate such revenues
to any purpose other than funding of services provided by ECRTA, including payments under any
contract with Eagle County referred to herein for services of employees or other assets of ECTRA,
in order to ensure continuity of ECO Transit services during the ECRTA Transition Period as the
provision of such services, and the transfer of assets and liabilities, transition from Eagle County
to the Authority over such period.
(b) For the purpose of continuity, the existing ECRTA Advisory Board shall be
constituted as an Advisory Committee pursuant to Article 4 of this Agreement for the purpose of
advising the Authority’s initial Board with respect to the transition of ECRTA services throughout
the ECRTA Transition Period. The Authority Board may add or remove members of the ECRTA
Advisory Board as provided for in this Agreement.
(c) Either directly or by contract with Eagle County or others, will use reasonable
efforts to:
(i) maintain continuity of the existing ECO Transit regional transit services
provided by ECRTA within the Authority Boundaries and to neighboring jurisdictions,
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without any significant changes in routes, schedules, or equipment, during the ECRTA
Transition Period;
(ii) continue ongoing transportation planning efforts;
(iii) enter into contracts for transit services ECRTA currently provides to other
Eagle County departments or entities no later than the end of the ECRTA Transition Period;
and
(iv) accommodate Member requests for additional or new local services on the
same fully allocated cost basis used to determine the cost of Authority services throughout
the Authority service area;
(d) The Authority will assist Eagle County to cause all relevant Eagle County assets,
liabilities, personnel, contracts, and operations to be formally transferred and assigned to the
Authority, and to enter into any required intergovernmental agreement, leases, or other contractual
arrangements to enable such transfers or assignments, prior to the conclusion of the ECRTA
Transition Period; and
(e) The ECRTA Transition Period will be deemed concluded when all issues set forth
in the Transition Plan (defined in Section 8.03) have been addressed to the satisfaction of the
Board.
Transition Plan.
(a) The Authority and Eagle County shall use their best efforts to agree on a “Transition
Plan” that implements the provisions of this Article 8. The Transition Plan will specify how merger
issues, including those related to human resources, employee benefits, insurance, transfer of
ECRTA assets, contractual relationships (e.g. with the Town of Vail and the Town of Avon), and
matters concerning the allocation of operating and capital costs and resources will be resolved.
MEMBERS
Initial Members. The Initial Members shall be the Initial Signatories
whose participation in the Authority is approved at the November 8, 2022, election as described
in Section 2.05 of this Agreement.
Withdrawal of Initial Members.
(a) Following establishment of the Authority, an initial Member may withdraw from
the Authority only if the Initial Member’s withdrawal is approved at an election by a majority of
the electors voting thereon.
(b) If an Initial Member withdraws from the Authority pursuant to subsection (a) of
this Section:
April 2022 Draft (Public Hearing #1)
18
(i) the territory within the boundaries of such Initial Member will be excluded
from the Boundaries of the Authority.
(ii) the taxes relevant to that Initial Member shall not be levied after the
effective date of such withdrawal; and
(iii) the obligations of such Initial Member set forth in this Agreement shall
terminate.
(c) Members may only withdraw from the Authority in the manner, and subject to the
conditions, set forth in this Section.
Additional Members. Any county, municipality, or special district with
street improvement, safety protection, or transportation powers, or a portion thereof, which is not
an Initial Member of the Authority, may become a Member (for purposes of this Section, a “new
Member”) effective upon:
(a) the adoption of a resolution of the Board in accordance with Section 3.11(a) of this
Agreement, the effectiveness of which may be conditioned upon compliance by such new Member
with any conditions which the Board, in its sole discretion, sees fit to impose;
(b) unless the new Member is the State, approval of such new Member’s participation
in the Authority by the electors residing within the territory of the new Member that is to be
included in the Boundaries of the Authority; and
(c) compliance with any other conditions to the admission of such new Member as a
Member or its execution of the amended Agreement imposed under the Act, the Intergovernmental
Relations Statue or any other applicable law.
TERM AND DISTRIBUTION OF ASSETS UPON TERMINATION
Effective Date. The term of this Agreement shall begin when all the
conditions to the establishment of the Authority set forth in Section 2.01 of this Agreement have
been satisfied.
Termination. The term of this Agreement shall end when all the Members
agree in writing to terminate this Agreement; provided, however, that this Agreement may not be
terminated so long as the Authority has any Bonds outstanding.
Distribution of Assets Upon Termination. Upon termination of this
Agreement pursuant to Section 10.02 of this Agreement, after payment of all Bonds and other
obligations of the Authority, the net assets of the Authority shall be distributed to the parties who
are Members at such time in proportion to the sum of:
April 2022 Draft (Public Hearing #1)
19
(a) the amount of cash and the value of property and services contributed by them to
the Authority pursuant to Article 7 and 8 of this Agreement minus the amount of cash and the value
of property previously distributed to them by the Authority; and
(b) the amount of Authority taxes or other charges (other than fares) paid by their
residents to the Authority pursuant to the Authority’s exercise of the powers granted to it pursuant
to the Act, with taxes or other charges paid by residents of areas of counties which are also located
within a municipality or special district allocated 100% to the municipality or special district for
such purposes.
DEFENSE OF DIRECTORS, OFFICERS, MEMBERS OF
ADVISORY COMMITTEES AND EMPLOYEES
Authority Obligations. The Authority shall insure and defend each
Director, Officer, member of an Advisory Committee and employee of the Authority in connection
with any claim or actual or threatened suit, action or proceeding (civil, criminal or other, including
appeals), in which he or she may be involved in his or her official capacity by reason of his or her
being or having been a Director, Officer, member of a Committee or employee of the Authority, or
by reason of any action or omission by him or her in such capacity. The Authority shall insure and
defend each Director, Officer, member of a Committee and employee of the Authority against all
liability, costs and expenses arising from any such claim, suit or action, except any liability arising
from criminal offenses or willful misconduct or gross negligence. The Authority’s obligations
pursuant to this Article 11 shall be limited to funds of the Authority available for such purpose,
including but not necessarily limited to insurance proceeds. The Board may establish specific rules
and procedures for the implementation of this Article 11 .
AMENDMENTS
Amendments Generally. This Agreement, except as may be limited in this
Article 12, may be amended only by resolution of the Board and upon unanimous consent of all
Members minus one. Such consent shall first be manifested by a majority affirmative vote of the
Governing Bodies of each Member.
Amendments to Boundaries. Except as provided in Section 2.03 of this
Agreement, the Initial Boundaries illustrated in Appendix A-1 and described in Appendix A-2, may
be amended in accordance with Section 12.01 of this Agreement and with the required approval of
the registered voters of any county, municipality or unincorporated portion of a county proposed
to be added to the territory of the Authority. For purposes of this Section, the boundaries may not
include territory within the boundaries of a municipality that is not a Member without the consent
of the governing body of such municipality, and may not include territory within the
unincorporated boundaries of a county that is not a Member without the consent of the governing
body of such county.
April 2022 Draft (Public Hearing #1)
20
Modification of Appendices B-1 through B-8. Notwithstanding any other
provision of this Agreement, any Ballot Question attached hereto as Appendix B-1 through B-8
may be modified by the Governing Body of the Initial Signatory responsible for submitting such
Ballot Question to the electors as provided in Section 2.04 of this Agreement.
MISCELLANEOUS
Adoption and Execution of Agreement in Accordance with Law. Each
initial Signatory hereby represents to each other Initial Signatory that it has adopted and executed
this Agreement in accordance with applicable law.
Parties in Interest. Nothing expressed or implied in this Agreement is
intended or shall be construed to confer upon any Person other than the Initial Signatories and the
Members any right, remedy or claim under or by reason of this Agreement, this Agreement being
intended to be for the sole and exclusive benefit of the Initial Signatories and the Members.
No Personal Liability. No covenant or agreement contained in this
Agreement or any resolution or bylaw issued by the Board shall be deemed to by the covenant or
agreement of an elected or appointed official, officer, agent, servant or employee of any Member
in his or her individual capacity.
Notices. Except as otherwise provided in this Agreement, all notices,
certificates, requests, requisitions or other communications by the Authority, any Member, any
Director, any Alternate Director, any Officer or any member of a Committee to any other such
person pursuant to this Agreement shall be in writing; shall be sufficiently given and shall be
deemed given when actually received, in the case of the Authority and officers of the Authority, at
the last address designated by the Authority for such purpose and, in the case of such other persons,
at the last address specified by them in writing to the Secretary of the Authority; and, unless a
certain number of days is specified, shall be given within a reasonable period of time.
Assignment. None of the rights or benefits of any Member may be
assigned, nor may any of the duties or obligations of any Member be delegated, without the express
written consent of all the Members.
Severability. If any clause, provision, subsection, Section, or Article of this
Agreement shall be held to be invalid, illegal or unenforceable for any reason, the invalidity,
illegality or enforceability of such clause, provision, subsection, Section or Article shall not affect
any of the remaining provisions of this Agreement.
Interpretation. Subject only to the express limitations set forth in this
Agreement, this Agreement shall be liberally construed to permit:
April 2022 Draft (Public Hearing #1)
21
(a) the Authority and the Members to exercise all powers that may be exercised by a
regional transportation authority pursuant to the Act and by a separate legal entity created by a
contract among the Members pursuant to the Intergovernmental Relations Statute;
(b) the Members to exercise all powers that may be exercised by them with respect to
the subject matter of this Agreement pursuant to the Act, the Intergovernmental Relations Statute
and other applicable law; and
(c) the Board to exercise all powers that may be exercised by the board of directors of
a regional transportation authority pursuant to the Act and by the governing body of a separate
legal entity created by a contract among the Members pursuant to the Intergovernmental Relations
Statute. In the event of any conflict between the Act, the Intergovernmental Relations Statute or
any other law with respect to the exercise of any such power, the provision that permits the broadest
exercise of the power consistent with the limitations set forth in this Agreement shall control.
Governing Law. The laws of the State shall govern the construction and
enforcement of this Agreement. Venue for purposes of any litigation arising under this Agreement
shall only be proper in the Eagle County District Court.
Counterparts. This Agreement may be executed in any number of
counterparts, each of which, when so executed and delivered, shall be an original; but such
counterparts shall together constitute but one and the same Agreement.
[Remainder of page left intentionally blank. Signature pages follow.]
April 2022 Draft (Public Hearing #1)
22
SIGNATURE PAGE
to
EAGLE VALLEY TRANSPORTATION AUTHORITY
INTERGOVERNMENTAL AGREEMENT
Dated as of [May 31, 2022]
By:
[INSERT], COLORADO
By
Name
Title
ATTEST
APPENDIX A-1
Authority Boundary Map
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APPENDIX A-2
Authority Boundary Description
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APPENDIX B-1
Town of Avon Ballot Question
APPENDIX B-2
Beaver Creek Metropolitan District Ballot Question
APPENDIX B-3
Town of Eagle Ballot Question
APPENDIX B-4
Town of Gypsum Ballot Question
APPENDIX B-5
Town of Minturn Ballot Question
APPENDIX B-6
Town of Red Cliff Ballot Question
APPENDIX B-7
Town of Vail Ballot Question
APPENDIX B-8
Unincorporated Eagle County Question Ballot Question
APPENDIX C
Initial Service Goals
Eagle Valley Transportation Authority
Regional Transportation Service Goals
The newly established Eagle Valley Transportation Authority, (“Authority”), shall use its best
efforts to achieve the following:
1. Assume Responsibility for Existing ECO Transit Service
The Authority shall assume responsibility for existing transit service as currently provided
by the Eagle County Regional Transportation Authority, (“ECO Transit”), as of January 1
of the year following RTA formation.
Within 12 months of RTA formation, the Authority shall develop and implement a fare-
free transit zone with expanded service, to include portions of Avon, Vail, Minturn and
Beaver Creek, as a replacement for ECO’s existing Vail/Beaver Creek Express service.
2. Increase Service on Current ECO Routes
The Authority shall begin planning for one or more of the following enhancements, to be
introduced as soon as equipment, staffing, and facilities allow:
● Increased capacity and/or service frequency on Highway 6.
● Increased all-day service frequency on Valley Route, including additional daily
connections to Dotsero.
● Increased service to/from Leadville.
3. Develop and Implement New Transit Routes
The Authority shall develop and implement new transit service to meet needs identified during
the RTA formation process, including but not limited to:
1) Eagle-Gypsum Circulator
Regular transit service connecting the Towns of Eagle and Gypsum that promotes
increased circulation in/between these communities and provides efficient connection to
other regional routes.
2) Limited Stop Express Service
Additional rush hour express service targeting peak workforce commute hours.
In addition, the Authority may explore the feasibility of offering additional regional transit
services as needs are identified in future Transit Development plans.
4. Accelerate Conversion of Fleet and Facilities to Zero-Emission Operations
The Authority shall take the following steps toward zero-emission operations:
1) Conversion of ECO’s existing Highway 6 bus service to a zero-emission platform, on a
timeframe that evaluates available grant funds, anticipated increases in range and
performance capacity of zero-emission buses, and allocation of available Authority funds
to other expenditures which may increase ridership.
2) Development of zero-emission plans, timelines, and budgets for additional routes and
facilities as outlined in an initial RTA Transit Development Plan, to be created following
RTA formation.
5. Invest in Transit-Related Facilities and Infrastructure
The Authority shall allocate a portion of available revenues to upgrade existing facilities to
support planned service expansion. In addition, funds will be set aside in a capital improvement
fund to support fleet replacement and future construction of essential transit-related and transit-
supportive facilities.
6. Support Local Air Service
The Authority shall pledge funding in the minimum amount of $1,200,000 dollars per year to
support expanded year round air service for residents and visitors of Eagle County.
7. Regional Transportation System Planning
The Authority shall embark on a 5-year Transit Development Plan (TDP) as one of its first tasks
upon formation. This plan should be completed within 12-18 months of the appointment of the
initial Authority Executive Director.
APPENDIX D
[ ]
Eagle Valley
Transportation Authority
Community update and discussion about
proposed Intergovernmental Agreement
April 26, 2022 | Town of Avon
Eagle Valley Transportation Authority
Community Update
April 26, 2022
Regional Transportation Authorities (RTAs)
•RTA is a public entity that allows two or more local governments—including
counties, cities, town and metro districts—to work together to address regional
transportation issues
•RTA transportation services may include transit, air, roadway and other services
•RTAs are governed by a board of appointed elected officials representing the
partner governments and must follow open meeting and fiscal accountability and
transparency laws
•RTA creation must be approved by local voters
•RTAs can also seek voter approval to collect tax revenue and issue bonds
Eagle Valley Transportation Authority
Community Update
April 26, 2022
Background
•In early 2020, Eagle County business community engaged local governments to
find better ways to address transportation needs for workforce, residents and
visitors
•Looking at the Roaring Fork Transit Authority (RFTA) and other examples,
conversation turned toward feasibility of Regional Transportation Authority (RTA)
to enhance and expand transit and transportation services across this region
•COVID-19 pandemic put this conversion on hold
•Eagle County; the towns of Avon, Eagle, Gypsum, Minturn, Red Cliff and Vail; and
Beaver Creek Metro District—along with business and nonprofit partners—have
renewed collaborative work toward improving regional transportation
Eagle Valley Transportation Authority
Community Update
April 26, 2022
RTA Formation Participants
•Collaborative process between local governments
•Support and input from stakeholders, including employers, nonprofits, metro districts, community
members
•Began formally in fall 2021 with approval of Memorandum of Understanding
•Agreement that was approved by eight local governments that set tasks (IGA and service goals),
membership, financial resources and oversight
•Formation Committee—Elected officials representing each community; responsible for
IGA, future ballot language, tax/funding amounts
•Technical Committee—Government staff, transit directors, business partners, others
who are working on service goals, cost estimates and other tasks
•Stakeholder Committee—Community members who provide diverse backgrounds to
help offer feedback and additional points of view on transit needs
Eagle Valley Transportation Authority
Community Update
April 26, 2022
Reasons to Consider an RTA
•Eagle County’s population is growing, our resorts have continued to be world class
destinations and visitors continue to visit to this region
•Growth provides economic opportunities for many, but also strains our region’s housing and
transportation systems
•As we emerge from the pandemic, it’s time to work on collaborative solutions to increase
transit and transportation options
•Doing this will support our workforce; help Eagle County residents get to work, home and
school safely; and for visitors to enjoy their Eagle County experience
•Transportation is a regional issue requiring a truly regional solution
•RTA can support our shared climate goals and prepare our communities for the next 10
to 20 years
Eagle Valley Transportation Authority
Community Update
April 26, 2022
Iterative
Process
Repeat
process
until voter
support is
identified
RTA Formation
Committee
•Review Issues
•Propose Transit Plans and Ideas
•Refer for Input
•Consider Community Input
•Revise Proposals
•Refer Again for Input (Repeat as
Necessary)
Stakeholder
Committee
Review Proposals,
Provide Comments and
Concerns
Local Govt.
Boards and
Councils
•Review Proposals
•Conduct Worksessions
•Conduct Public
Hearings
•Provide Comments and
Concerns
Voter
Polling
Determine Voter
Preferences,
Support and
Concerns
Technical Committee
•Research Technical,
Financial and Legal Issues
•Present Information,
Recommendations and
Options
Eagle Valley Transportation Authority
Community Update
April 26, 2022
RTA
Timeline
April/May: Public hearings by local governments on IGA
April/May: Benchmark public survey
May/June:First phase of public engagement
May 27: RTA IGA referred to CDOT for review and comment (90
days comment period)
August: Local governments to consider final version of IGA and
resolution to refer to election
August: Second phase of public engagement
Sept. 9: Last day to refer ballot question to Nov. 2022 election
Sept. to Nov.Campaign phase
Nov. 8: Election day
Eagle Valley Transportation Authority
Community Update
April 26, 2022
Establishing an RTA
•Creation of an RTA is a formal process defined in state law
•Local governments involved must work together to create an intergovernmental
agreement (IGA)—a legal document that sets forth the governance, service goals and
other key operating provisions of the RTA
•“Charter” document must be agreed upon by the elected councils and boards in each
community
•Ultimately, voters must agree to the formation of the RTA and any taxing or bonding requests made to
provide funding for the RTA’s services and operations
•IGA process requires two separate public hearings to be held in each jurisdiction
considering adopting the IGA
•Feedback from council and public will be shared with the RTA formation committee to help address
local community needs and concerns
Eagle Valley Transportation Authority
Community Update
April 26, 2022
Intergovernmental Agreement (IGA)
•IGA establishes a Board of Directors that consists of one elected official from each
member entity
•Action by the Board must be approved by a two-thirds majority of the Board, except for
certain more procedural actions, such as setting meetings
•Each member also appoints an alternative director who also is an elected official and
participates when the primary member is unavailable
•Contemplates funding for RTA, including:
•0.5% sales and use tax within the boundaries of authority
•Pledging Eagle County’s existing 0.5% transportation sales tax (to be used on ECO Transit
services)
•Potential 1% Visitor Benefit Tax within the boundaries of the Authority
•Discretionary member contributions
•Federal and State grants
Eagle Valley Transportation Authority
Community Update
April 26, 2022
Proposed
RTA
Boundaries
Eagle Valley Transportation Authority
Community Update
April 26, 2022
Intergovernmental Agreement (IGA)
•Provides RTA all available statutory powers and specific responsibilities, including:
•Assuming ECO Transit services (subject to a transition plan to be developed)
•Annual short-and long-term transportation planning for the Eagle Valley
•State and federal coordination for grant funding and regional transit
•Contracting for transit services and build transportation infrastructure
•Maintaining regional trails and pedestrian infrastructure
•Supporting increased commercial air service
•Operating and funding specific initial projects, including:
•Developing a fare-free transit zone with expanded service, to include portions of Avon, Vail, Minturn and Beaver Creek
•Increasing other current ECO Transit service, including on Highway 6, Dotsero, and Leadville
•Implementing new transit routes , including an Eagle -Gypsum circulator and additional peak workforce commute hour
express service
•Accelerating zero-emission transition
Eagle Valley Transportation Authority
Community Update
April 26, 2022
Intergovernmental Agreement (IGA)
•IGA establishes key procedures for RTA moving forward:
•Requires that each member hold an election to be included
•As drafted, Avon, Beaver Creek, Eagle County and Vail must vote yes, or the RTA will not
be formed and IGA will terminate
•Provides pathway for members to leave RTA and for new members to join:
•Members may withdraw by vote of the electors
•Members may be added with Board approval and a vote of the electors within the boundaries of the
new member
•States that RTA may be terminated by unanimous agreement of the members,
provided no bonds are outstanding
•Allows IGA to be amended by unanimous vote of the member governments,
minus one
Eagle Valley Transportation Authority
Community Update
April 26, 2022
RTA Service Goals
•Comprehensive, multi-modal transportation enhancement and optimization
•Benefit residents with enhanced transit service
•Benefit eagle county businesses that desire effective transit for employees
•Improve the visitor experience to maintain economic competitiveness
•Increase transit ridership to reduce reliance on single occupant vehicle use
•Regional representation with a comprehensive, long-range planning view
•Overall intent is to maintain, enhance and expand current ECO transit service
Eagle Valley Transportation Authority
Community Update
April 26, 2022
RTA Service Goals
1. Enhance Existing Regional Transit Service
•Assume responsibility for existing transit service as currently provided
by ECO Transit on the following routes
•Develop and implement a fare-free transit zone with expanded service,
which may include all or portions of Avon, Vail, Minturn and Beaver
Creek, to better meet both visitor and workforce needs, reduce
congestion, and limit parking demand
•Planning for more enhancements to ECO Transit routes be introduced as
soon as equipment, staffing, and facilities allow
Eagle Valley Transportation Authority
Community Update
April 26, 2022
RTA Service Goals
2. Develop and Implement New Routes
•Within 12 months of Authority establishment:
•Eagle-Gypsum Circulator Service
•Limited Stop Express Service targeting peak workforce commute hours
•Explore feasibility of offering additional regional services that may be
identified by the RTA
Eagle Valley Transportation Authority
Community Update
April 26, 2022
RTA Service Goals
3. Accelerate Conversion to Zero-Emission Operations
•Conversion of ECO’s existing Highway 6 bus service to a zero-emission
platform
•Complete conversion to zero emission buses is anticipated to occur between 5 to
10 years (2028 to 2033)
•Development of zero-emission plans, timelines and budgets for
additional routes and facilities as outlined in an initial RTA Transit
Development Plan, to be created following RTA formation
Eagle Valley Transportation Authority
Community Update
April 26, 2022
RTA Service Goals
4. Invest in Transit-Related Facilities & Infrastructure
•Allocate a portion of available revenues to upgrade existing facilities to
support planned service expansion
•Funds will be set aside in a capital improvement fund to support fleet
replacement and future construction of essential transit-related and transit-
supportive facilities
5. Support Local Air Service
•Pledge approximately $1.2M per year to support expanded year-round air
service for residents and visitors of Eagle County to replace existing Air
Alliance contributions, returning funds back to local governments
Eagle Valley Transportation Authority
Community Update
April 26, 2022
RTA Service Goals
6. EGE Airport Interchange
•Provide financial support for the construction of an EGE Airport Interchange by
committing matching funds to be combined with other local funds if there are
sufficient state and federal grant funds awarded for the construction of the EGE
Airport Interchange
7. Develop & Implement First-Last Mile Solutions
•Design, financially support and implement, with partnerships as appropriate, first
and last mile improvements to enhance transit ridership, including park and ride
facilities, bus stops, pedestrian crossings, e-bike sharing, on-demand microtransit,
and community vanpool programs
Eagle Valley Transportation Authority
Community Update
April 26, 2022
RTA Service Goals
8. Support Regional Trail Planning
•Engage in regional trail planning, construction and maintenance with an
emphasis on the provision of multi-modal linkages and first/last mile
improvements to enhance transit ridership.
9.Lead Regional Transportation System Planning
10.Enhance Local, State, and Federal Coordination
11.Encourage Transportation Demand Management
Eagle Valley Transportation Authority
Community Update
April 26, 2022
Potential RTA Funding Sources
•Authorized Revenue Sources for RTA
•up to 1 Cent Sales Tax
•up to 2 Cent “Visitor Benefit Tax” (same as lodging tax or accommodations tax)
•Ridership fares
•Charges for Transit Services (may charge for transit service out of Transit Area)
•Allowed by law but not currently under consideration
•up to 5 Mill Property Tax
•up to $10 per Vehicle Registration Fee
•NOTE: Taxes require voter OK per TABOR
Eagle Valley Transportation Authority
Community Update
April 26, 2022
RTA and IGA Feedback
•Input and feedback are critical to ensuring that this RTA proposal meets
transportation needs and addresses concerns of our communities
•Invite public, elected officials, business owners and employers, nonprofits
and all community members to provide feedback at:
EagleCountyRTA.org/feedback
Questions?
Eagle Valley Transportation Authority
Community Update
April 26, 2022
Community Engagement
•Community engagement and feedback are important parts of the RTA
process
•Formation process includes a Stakeholder Committee of organizations and
individuals that speak for the diverse community, business, nonprofit,
educational, environmental, resident and other interests of the region
•Stakeholder Committee meets regularly to provide feedback from a broader, non-
transportation perspective
•Conducting polling, hosting events in spring and summer, visiting with local
governments, boards and commissions
Page 2 of 2
RTA COMMUNITY STAKEHOLDERS COMMITTEE: This committee is envisioned to be open and
inclusive to all the existing groups in the Eagle River Valley, and beyond such as Lake County and
Leadville. The purpose is to facilitate community involvement.
BEAVER CREEK-AVON-VAIL CONNECTOR: We explored the potential for a pilot project to run more
frequent and free transit between Beaver Creek Village, Avon Station and Vail Village. The concept was to
run during the entirety of the Beaver Creek ski season with a ½ hour schedule from 6:30am to 10:30am,
then hourly to 2:30pm, then ½ hour to 6:00pm, then hourly to 10pm. The contemplated cost estimate was
roughly $600,000 to be split between Avon/Beaver Creek/Vail and Eagle County on a 20/20/20/40 cost
share basis. Although the four parties were agreeable in concept and we were able to identify the costs and
logistics to run this route, Beaver Creek was not ready to make a funding commitment for this winter and
there were significant challenges and apprehension about hiring another six transit drivers and securing
two more low floor buses to operate this route. The exercise was worthwhile to collectively discuss and
understand the cost and logistics to operate this type of route. In particular, it was instructive to understand
the lead time and requirements necessary to acquire busses, properly outfit busses with communication
equipment, and hire transit drivers, as well as prepare and executive a cost sharing agreement.
As a consequence, I directed Staff to take no further action towards remodeling 351 Benchmark for transit
driver housing.
RECOMMENDATIONS: Staff for Town of Vail and Eagle County have indicated that they are proceeding to
introduce the MOU to their respective governing bodies for approval in the next two weeks. I have the
following recommendations concerning regional transit.
1. I recommend that Council approve the Memorandum of Understanding to Establish Regional Transit
Authority Formation Committee
2. I recommend that Council support continued conversation with Beaver Creek, Vail and ECO Transit to
pursue a winter connection route for the 2022/2023 Beaver Creek Ski Season with the appreciation
and understanding that the conversation must continue now in order to achieve consensus and sort
through all the logistics necessary for this transit connection.
3. Research, analyze and advocate for year-round free transit between Beaver Creek, Avon and Vail as
one component of any Regional Transit Authority formation.
PROPOSED MOTION: “I move to approve the Memorandum of Understanding to Establish Regional
Transit Authority Formation Committee.”
Thank you, Eric
ATTACHMENT A: Memorandum of Understanding to Establish Regional Transit Authority Formation
Committee
ATTACHMENT B: RTA Overview Information from Colorado Legislative Service
ATTACHMENT C: Regional Transit Authority planning effort presentation on July 20, 2021
RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021
Page 1 of 13
MEMORANDUM OF UNDERSTANDING
ESTABLISHING A REGIONAL TRANSIT AUTHORITY FORMATION COMMITTEE
STATEMENT OF PURPOSE – This Memorandum of Understanding (“MOU”) formalizes the agreement
reached by the Eagle County government and municipalities within the contemplated boundaries of a
Regional Transit Authority (“RTA”) in Eagle County on the commitment of staff and financial resources to a
Regional Transit Authority Formation Committee (“RTA Formation Committee”) for the purpose of
researching and proposing the structure of an RTA to serve the greater Eagle River Valley community
pursuant to CRS §43-4-601 Regional Transportation Authority Law.
WHEREAS, in January 2020 a joint meeting of the Beaver Creek and Vail Economic Advisory Councils
was convened to discuss regional transportation challenges at which members of the private business
community expressed strong support to improve and enhance regional transit; and
WHEREAS, an ad-hoc group of Town Managers, Transit Directors, and business community leaders was
convened soon afterwards to discuss, analyze, and identify challenges and opportunities related to greater
coordination and integration of the regional public transportation system; and
WHEREAS, separate conversations with the EGE Air Alliance have highlighted the importance of air
transportation as part of the broader regional transportation system; and
WHEREAS, each of these groups have identified the creation of a Regional Transit Authority (“RTA”) as a
desirable way to plan, finance, implement and operate a regional public transportation system that better
meets the needs of residents, visitors, and businesses in Eagle County; and
WHEREAS, the local government entities now desire to proceed with preparation of a proposed RTA and
comprehensive community engagement process with the intention to refer ballot questions for the formation
of a RTA and a funding question to the November 1, 2022 general election.
NOW, THEREFORE, the parties to this MOU agree as follows:
1. NO LEGAL OBLIGATIONS. This MOU is only a statement of intentions to facilitate coordination
among parties and shall not be construed to create, and shall not in fact create, any financial
obligations or liabilities for any party to this MOU.
2. ELIGIBLE PARTIES TO THIS MOU. The local government entities which are required to take action
as part of the formation of a Regional Transit Authority and/or which currently fund and provide public
transit service are eligible parties to this MOU, including but not limited to Eagle County government,
and municipalities in Eagle County, or Title 32 special districts with transportation powers, which are
located within the boundaries of a proposed Regional Transit Authority area.
3. RTA FORMATION COMMITTEE. The RTA Formation Committee shall consist of one representative of
each party to this MOU. Each party may designate a primary representative and alternates in its
ATTACHMENT A: MOU
RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021
Page 2 of 13
discretion which shall be limited to elected officials and full-time staff persons. The RTA Formation
Committee shall also have the following organization duties:
(a) Select a chair and vice chair;
(b) Establish a meeting schedule and timeline for completion of activities;
(c) Provide parameters for staff support for the RTA Formation Committee provided by participating
entities;
(d) Establish a schedule for communications and meetings with municipal staff and elected officials
to inform them on status and upcoming developments;
(e) Review the Scope of Work for third party facilitators and consultants to assist with community
engagement and the RTA formation process;
(f) Determine the details of a proposed RTA, including but not limited to:
(1) Determine the name and purpose of the RTA, including an explanation of all regional
transportation systems to be provided and preliminary expectations regarding types and
service levels;
(2) Determine geographic boundaries, districting, and rules for modification of a regional
public transportation authority;
(3) Determine the form of governance and board representation on the RTA;
(4) Recommend an initial organizational structure and staffing for the RTA;
(5) Recommend the structure of the relationship with existing transit systems, including
recommendations related to the transfer of assets, liabilities, or personnel;
(6) Analyze potential dedicated funding sources and structures for public transportation and
make recommendations regarding type and level;
(7) Recommend the structure of the relationship with the EGE Air Alliance, including
recommendations related to structure, governance, and fiscal authorities; and
(8) Develop a proposed IGA, meeting the requirements of C.R.S. § 43-4-601, for signature by
interested and eligible entities.
(g) Determine the details and wording on any ballot measures to be referred to the voters for the
formation of an RTA; and
(h) Provide legal, financial, marketing and political support for a potential future ballot measure.
ATTACHMENT A: MOU
RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021
Page 3 of 13
4. RTA TECHNICAL COMMITTEE. The Ad Hoc Technical Committee will continue for the purpose of
sharing information, analyzing costs, and submitting feedback associated with various proposals for
regional transit enhancement generated by the RTA Formation Committee. In addition, they will assist
in identifying operational issues related to proposed structures that may require additional
consideration by the RTA Formation Committee. The RTA Formation Committee may change, amend,
supplement, fill vacancies or remove any person on the RTA Technical Committee without notice or
cause. The RTA Technical Committee may invite or add other persons or representation from other
entities that may provide relevant technical advice and information. The RTA Technical Committee
shall consist of the following members unless and until changed by the RTA Formation Committee:
(a) Tanya Allen, ECO Transit Director;
(b) Jen Brown, Managing Director Beaver Creek Resort Company;
(c) Paul Gorbold, Beaver Creek Transit Manager;
(d) Scott Robson, Vail Town Manager;
(e) Greg Hall, Vail Public Works and Transportation Director;
(f) Brandy Reitter, Eagle Town Manager
(g) Chris Romer, Vail Valley Partnership and Eagle Air Alliance;
(h) Brian Nolan, representative of Beaver Creek and Vail Economic Advisory Councils;
(i) Eva Wilson, Avon Mobility Director;
(j) Eric Heil, Avon Town Manager; and,
(k) David Reid, Director of Aviation, Eagle County Regional Airport.
5. RTA COMMUNITY STAKEHOLDERS COMMITTEE. The RTA Community Stakeholders Committee
shall consist of all interested local governments that are not parties to this MOU, interested non-profit
or community organizations, and interested private business entities that desire to participate on the
RTA Community Stakeholder Committee. The purpose of the RTA Community Stakeholder Committee
is to facilitate the community engagement process, including the sharing and dissemination of
information related to the RTA, facilitate broader understanding of the RTA formation process and the
technical and financial aspects of proposed RTA operations, and facilitate providing broad community
input to the RTA Formation Committee. The scheduling, organization and conduct of RTA Community
Stakeholder Committee meetings shall be facilitated by a third party consultant as contemplated in this
MOU.
6. CONTEMPLATED ROLES OF AN RTA. The specific roles of an RTA would be researched and
determined during the study and community engagement process. The following list describes the
potential roles of an RTA that are being contemplated at the time of executing this MOU. Parties to the
ATTACHMENT A: MOU
RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021
Page 4 of 13
MOU acknowledge and agree that the roles of a RTA as may be ultimately referred to election are
expected to be revised and refined through the community engagement process.
(a) Assume some or all operations, assets and functions of ECO Transit;
(b) Assume some or all operations, assets and functions of the Eagle Air Alliance;
(c) Continue planning and development for the enhancement and operation of regional
transportation system in the Eagle River Valley, to include operation and/or financial support for
multimodal surface and air transportation;
(d) Study, design, financially support and implement, with partnerships as appropriate, first and last
mile improvements to enhance transit ridership, including but not limited to the development of
park and ride facilities, bus stops, and pedestrian crossings;
(e) Study, design, financially support and implement, with partnerships as appropriate,
improvements to the regional transit system to support, advance and achieve climate action
goals, including but not limited to conversion of bus fleet to zero or reduced greenhouse gas
emission rolling stock, zero or reduced greenhouse gas emission transit facilities, and increase
of transit ridership that reduces passenger vehicle miles travelled;
(f) Coordinate with the Colorado Department of Transportation (“CDOT”) and federal governing
agencies to enhance regional transit, including but not limited to improvements to connections to
the RTA area via Bustang and other statewide bus programs and increased air service to the
Eagle County Regional airport;
(g) Represent the Eagle County RTA area with regard to state and federal legislation affecting
available funding to support regional transit operations and with regard to legislation affecting
operations; and
(h) Study, design, financially support and implement, other regional transportation and mobility
programs and operations, such as regional e-bike sharing programs.
7. RETAINING THIRD PARTY FACILITATORS AND CONSULTANTS. A central purpose of this MOU is
to reach an understanding on the retaining of third party facilitators and consultants to assist with the
administrative, legal, and technical details in the formation of an RTA, assist with the community
engagement process, and assist with determining consensus and community support for any ballot
issues which may be referred to the voters. The Scope of Work for any third party facilitators and/or
consultants shall be reviewed and approved by the RTA Formation Committee. Third party facilitators
and consultants will be retained by Eagle County pursuant to such contract terms as may be approved
by Eagle County in its discretion and Eagle County shall be responsible for the administration of such
contracts.
8. FUNDING CONTRIBUTION. Funding contributions for third party facilitators and/or consultants should
be based on the proportionate share of population within the jurisdiction of each respective local
government party to this MOU (meaning the Eagle County population less the population within
ATTACHMENT A: MOU
RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021
Page 5 of 13
municipal jurisdictions that are parties to this MOU). Parties to this MOU may agree to any other
arrangement for funding contributions. An initial funding contribution is necessary to retain thirty party
facilitators and consultants to commence Phase 1 work in 2021. An additional funding contribution is
necessary for the Phase 2 work which is expected to begin in the 2022 budget year.
(a) Phase 1 Funding Contribution: $30,000 is the contemplated budget to commence the work of
the RTA Formation Committee in 2021, which is comprised of a budget for facilitation of committee
meetings, initial community outreach, facilitating and coordinating research and consideration of
transit enhancement ideas and associated funding, initial research on funding options, compiling
comparison information of other regional transit authorities and preparing RTA presentation
materials. Eagle County, the Town of Vail and the Town of Avon have offered to share this
expense equally ($10,000 each).
(b) Phase 2 Funding Contribution: $170,000 is the contemplated budget to continue the work in
2022, which is comprised of a $140,000 to continue community engagement work, assist with
revision to an RTA proposal including financial modelling of different options and scenarios, revise
and update RTA presentation materials, and assist with the determination of any referred ballot
measures and associated factual statements and information presentations related to the formation
of an RTA; and a $30,000 budget for legal advice and assistance related to RTA formation and
associated funding questions.
(c) Additional Funding Contributions: The parties to the MOU may consider funding additional
activities such as political polling by mutual agreement at a later date.
9. ADMINISTRATIVE SUPPORT. The Eagle County Regional Transportation Authority (“ECRTA”), as a
department of Eagle County Government and the current regional transportation provider, has been
engaged in the planning, design, and development of a regional transit system for Eagle County.
ECRTA will provide administrative, technical and planning assistance to the RTA Formation Committee
until the establishment of a statutory RTA, with assistance from other entities as may be mutually
agreed. ECRTA’s responsibilities will include but not be limited to the following:
(a) Assist the RTA Formation Committee in engaging professional and consulting services to
manage the work of the RTA Formation Committee;
(b) Act as the fiscal agent of funds received from the signatory municipalities of this MOU;
(c) Disperse appropriate payments of funds for services rendered specifically to the RTA Formation
Committee, including those of contracted consultants;
(d) Serve as the applicant for any appropriate grant funding opportunities for which the RTA
Formation Committee may be eligible for its work;
(e) Act as the contracting party for any agreements to be entered into on behalf of the RTA Financial
Committee.
ATTACHMENT A: MOU
RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021
Page 6 of 13
10. TERM. The term of this MOU shall end on November 1, 2022 unless the parties to this MOU extend
the term of this MOU by written agreement.
11. TABOR. This MOU shall not create any multi-year fiscal obligation of any party to this MOU and any
funding contribution or other financial commitment shall be subject to annual budget and appropriation
of each party.
[SIGNATURE PAGES FOLLOW]
ATTACHMENT A: MOU
Colorado
Legislative
Council
Staff
Room 029 State Capitol, Denver, CO 80203-1784
(303) 866-3521 •FAX: 866-3855 •TDD: 866-3472
leg.colorado.gov/lcs
E-mail: lcs.ga@state.co.us
M E M O R A N D U M
September 14, 2017
TO:Interested Persons
FROM:Ryan Long, Fiscal Analyst, 303-866-2066
SUBJECT:Regional Transportation Authorities
Regional Transportation Authorities
Under Colorado law, municipalities, counties, and special districts can join together in a
“combination” to create a regional transportation authority (RTA) to address transportation
needs within a specific geographic region. The state of Colorado, acting through the
Transportation Commission and with approval from the Governor, may also join a contract
creating an RTA.
Establishment of an RTA.To establish an RTA, the combination of governments seeking
to create it must submit a copy of their contract to the Colorado Department of Transportation
(CDOT) for review and comment, as well as to any affected public highway authority, county or
municipality that borders the proposed RTA. A copy of the contract must also be sent to the
Regional Transportation District (RTD), which creates and maintains a transit system primarily
in the Denver metropolitan area, if it borders the proposed RTA. These contracts include
information on the name and purpose of the authority, the establishment and operations of the
board of directors, the boundaries of the authority, and the term of the contract. No municipality,
county, or special district may enter into a contract establishing an RTA without holding at least
two public hearings. In order to take effect, a contract must be approved by the registered
voters within the boundaries of the district.
RTA authority.RTAs have the authority, through a board, to finance, construct, operate, or
maintain regional transportation systems within or outside their boundaries. RTAs must be
governed by a board of directors with at least five elected officials from the members of the
combination of governments, and must include at least one elected official from each member.
An RTA board may adopt bylaws, make and pass orders and resolutions necessary for the
governance of the authority, maintain offices and hire employees, and amend the contract that
created the authority.
Summary
This memorandum provides information concerning regional transportation authorities
(RTAs). Specifically, it provides an overview of state laws pertaining to RTAs, RTAs
currently established, powers of and financing mechanisms available to RTAs, and sales and
use taxes levied in each of the five currently operational RTAs.
ATTACHMENT B: RTA Overview
- 2 -
An RTA is prohibited from constructing a transportation system outside of its boundaries or
within the boundaries of a municipality or county without the consent of that entity’s governing
body. If the RTA’s proposed transportation system affects, alters, or negatively impacts the
road systems controlled by CDOT, RTD, or any bordering entities, the impacted entity may
enter into an intergovernmental agreement with the RTA to address the identified services
before a proposal is submitted to registered electors. If no agreement is established, the
transportation project affecting the other entity must be taken off of the list of projects specified
in the contract.
RTA boards may also create local improvement districts (LIDs) within their boundaries to
facilitate the financing, construction, operation, or maintenance of regional transportation system
improvements. The LID is a localized geographic area in which improvements are constructed,
and revenue for these projects is primarily raised through a special assessment process. To
establish an LID, the RTA board must receive a petition from the owners of the property that will
bear the majority of the cost assessment on the proposed improvements, as well as a petition
from registered electors in the proposed district.
RTA financing.State law authorizes RTAs to establish, collect, and increase or decrease
tolls, rates, and charges to finance a transportation system. RTAs may also levy sales taxes,
impose an annual motor vehicle registration fee, levy a visitor benefit tax, impose a uniform mill
levy, establish regional transportation activity enterprises, and issue bonds, as shown in
Table 1. RTA taxation questions and multi-year debt questions must be submitted to the
registered electors residing within the authority's boundaries for approval. Unless specified in
an intergovernmental agreement, any funds made available for an RTA's transportation system
may not be used to supplant existing or budgeted CDOT funding for any portion of the state
highway system within the territory of any RTA or any transportation planning region.
Table 1
Financing Mechanisms for Regional Transportation Authorities
Financing Mechanism Provisions Statutory Citation
Sales or Use Tax RTAs may levy a sales or use tax, or both, of not
more than 1 percent upon every transaction with
respect to which a sales or use tax is levied by the
state. If a member of the RTA is located within
more than one authority, the total sales and/or use
tax may not exceed 1 percent. The RTA may levy
a sales or use tax at differing rates in designated
parts of the authority. However, if the authority
includes territory within the RTD's boundaries, the
rate of the tax must be levied in such a way that
the rate of tax within the territory of any single
member of the combination is uniform.
Section 43-4-605 (1)(j)(I), C.R.S.
Annual Motor Vehicle
Registration Fee
RTAs may impose an annual motor vehicle
registration fee of not more than $10 for each
motor vehicle registered within any or all portions
of the RTA boundaries. If a motor vehicle is
registered in a county that is a member of more
than one RTA, the total motor vehicle registration
fees for that vehicle may not exceed $10.
Section 43-4-605 (1)(i), C.R.S.
ATTACHMENT B: RTA Overview
- 3 -
Financing Mechanism Provisions Statutory Citation
Visitor Benefit Tax RTAs may levy a visitor benefit tax on those
purchasing overnight rooms or accommodations
within the RTA's boundaries. The visitor benefit
tax may not exceed 2 percent of the price of the
overnight room or accommodation. Further, at
least 75 percent of the revenue derived from the
tax must be used by the RTA to finance, construct,
operate, and maintain the RTA's regional
transportation system and to provide incentives to
overnight visitors to use public transportation. No
more than one-third of the RTA’s total revenues
may be derived from this tax.
Section 43-4-605 (1)(i.5), C.R.S.
Mill Levy*RTAs may impose a uniform mill levy of up to five
mills on all taxable property within the territory of
the authority. Imposing such a levy does not
affect the power of an authority to establish LIDs
and impose special assessments.
Section 43-4-605 (1)(j.5)(I), C.R.S.
Regional Transportation Activity
Enterprises
RTAs may establish one or more enterprises. The
enterprise must be owned by the entire authority,
and may not be combined with another enterprise
owned by a separate RTA. Enterprises may issue
or reissue revenue bonds, and contract with other
governmental or private entities for loans and
grants related to the enterprise's functions.
Section 43-4-606, C.R.S.
Bonds Pursuant to a resolution of its board, an RTA may
issue bonds for any of its corporate purposes.
Section 43-4-609, C.R.S.
Source: Legislative Council Staff.
*This provision is currently set to repeal January 1, 2029. The only RTA that has imposed a mill levy is the San Miguel
Authority for Regional Transportation.
Current RTAs.The following five RTAs are currently operating in Colorado:
•Gunnison Valley Transportation Authority;
•Pikes Peak Rural Transportation Authority;
•Roaring Fork Transportation Authority;
•San Miguel Authority for Regional Transportation; and
•South Platte Valley Regional Transportation Authority.
The Baptist Road Rural Transportation Authority, which was created to provide a funding
mechanism for improvements to Baptist Road in a portion of Monument, Colorado, was
dissolved in December 2016 after raising sufficient funding to pay off bonds.
Table 2 summarizes the current and former RTAs in Colorado, including membership and
respective sales, use, and property tax rates. The scope and types of projects in RTAs can vary
widely. For example, the Roaring Fork Transportation Authority operates the largest RTA public
transit system, and utilizes 106 buses with 153 bus stops and 14 park-and-ride lots. RTAs also
engage in large capital projects, such as the $4 million Chestnut Street Bridge Replacement
undertaken in 2016 by the Pikes Peak Rural Transportation Authority.
ATTACHMENT B: RTA Overview
- 4 -
Table 2
Regional Transportation Authority Sales, Use and Property Tax Rates
Authority Member Municipalities and Counties Sales Tax Rate Use Tax Rate Property Tax
Gunnison Valley
Rural
Transportation
Authority
Gunnison County, excluding the
municipalities of Marble, Ohio, Pitkin, and
Somerset
1.0%None None
Pikes Peak Rural
Transportation
Authority
El Paso County, excluding the
municipalities of Calhan, Fountain,
Monument, and Palmer Lake
1.0%1.0%None
Roaring Fork
Transportation
Authority
Cities of Basalt and New Castle 0.8%0.8%None
Cities of Carbondale and Glenwood
Springs 1.0%1.0%None
Cities of Aspen and Snowmass Village,
and unincorporated Pitkin County 0.4%0.4%None
Areas of unincorporated Eagle County in
the El Jebel area and outside the city limits
of Carbondale
0.6%0.6%None
San Miguel
Authority for
Regional
Transportation
City of Telluride and eastern San Miguel
County (excluding towns of Ophir and
Sawpit)
0.25%None 0.75 mills
South Platte
Valley Regional
Transportation
Authority
City of Sterling 0.1%0.1%None
Former Regional Transportation Authorities
Authority Member Municipalities and Counties Sales Tax Rate Use Tax Rate Property Tax
Baptist Road
Rural
Transportation
Authority*
A portion of the city of Monument 1.0%1.0%None
Source: Colorado Department of Revenue.
*The Baptist Road Rural Transportation Authority stopped collecting sales and use tax on July 1, 2016, and was dissolved in
December 2016.
S:\LCS\MEMOS\2017\Regional Transportation Authorities_8302017.docx
ATTACHMENT B: RTA Overview
Regional Transit Optimization Project
July 20, 2021
Regional Transit
Optimization
Project
July 20, 2021
AD HOC TECHNICAL COMMITTEE:
Tanya Allen –ECO Transit Director
Greg Hall –Vail Public Works
Scott Robson –Vail Town Manager
Brandy Reitter –Eagle Town Manager
Brian Nolan –Business Owner
Chris Romer –Vail Valley Partnership
Paul Gorbold –Vail Resorts
Jen Brown –Beaver Creek Resort Company
Eva Wilson –Avon Mobility Director
Eric Heil –Avon Town Manager
Regional Transit Optimization Project
July 20, 2021
PURPOSE of this meeting
•Review efforts and ideas to date of the Ad Hoc Regional Transit
Optimization Committee with ECO Transit board and other
stakeholders
•Begin the dialogue with stakeholders and the greater community
•Proceed with community process to research and define a Regional
Transit enhancement program and formation of a Regional Transit
Authority
Regional Transit Optimization Project
July 20, 2021
Review Process to Date:
•January, 2020: Meeting of Vail and Beaver Creek Economic Advisory Councils to
discuss improvements to transit
•August 21, 2020 –Outline for Regional Transit Optimization Project effort
presented to Mayors and Managers
•Mayors and Managers supported formation of Ad Hoc Technical Committee to
review concept and initial details
•Meetings Ad Hoc Committee held a series of meetings in fall of 2020 and winter
2021
•June 11, 2021 –Mayors and Managers meeting: Consensus to focus on proposal
for formation of a Regional Transit Authority
Regional Transit Optimization Project
July 20, 2021
Planning Goals
1.Enhance Transit Service and Increase Ridership
2.Explore Administrative and Operational Efficiencies
3.Research a Regional Transit Authority
Specific Transit Enhancements to Explore
1.Improvements to frequency and pricing for ECO routes
2.Free and frequent transit between Vail and Beaver Creek ski resorts
3.Establish Eagle –Gypsum route
4.Climate Action Goals: electric busses, increased ridership
Regional Transit Optimization Project
July 20, 2021
Ad Hoc Technical Committee Findings
1.Strong need to hire professional to assist with community outreach and
coordination
2.Limited need to hire a technical consultant to analyze transit operations and
options
3.Need for an employee survey to supplement recent CAC Transit Opinion Survey
4.Define a process to research options and costs, conduct comprehensive and
effective community engagement, formulate proposal, and refer to an election
5.Inclusion of Eagle Air Alliance into a comprehensive regional transit enhancement
plan is desired
Regional Transit Optimization Project
July 20, 2021
County Wide Employee Survey:
•Climate Action Collaborative conducted a transit opinion survey in 2020
•Need and benefit has been identified to conduct a similar opinion survey that
targets employees through their employers [i.e. ‘Complete this survey!’]
•Target date: Fall, 2021
•Use Intercept Insight as local opinion survey company that conducted CAC
transit survey
•Estimated Cost: $20,000 to $30,000
•$10,000 Grant Funding received from DOLA
Regional Transit Optimization Project
July 20, 2021
Proposed Pilot Transit Projects
1.Eagle-Gypsum Connector (fare free)
2.Vail-Beaver Creek ski season connector (fare free)
Details, estimated costs and structure of partnerships are
currently being determined.
Regional Transit Optimization Project
July 20, 2021
Eagle Air Alliance
1.Dedicated and reliable funding source
to replace existing annual funding
raising
2.Increase of funding to support
expanded air service to Eagle County
Regional Airport
3.Economic benefit with incoming
visitors; community benefit for
increased connections to hub airports
Regional Transit Optimization Project
July 20, 2021
Next Steps
Memorandum of Understanding
•Define goals and process
•Hire community facilitator(s) and consultant(s) to assist with
community engagement process
•Address cost sharing
•Conduct employee survey on transit needs and preferences
•Potential November 1, 2022 Election Date for formation of
Regional Transit Authority and tax funding question
Regional Transit Optimization Project
July 20, 2021
Next Steps
Memorandum of Understanding
•Parties to the MOU are expected to include the entities currently
providing transit and other interested stakeholders
•Community engagement process will likely be led by a committee
comprised of elected officials with the Ad Hoc transit group
continuing to provide technical information and recommendations
•Schedule of meetings and presentations to be determined,
expected to be an iterative process that incorporates community
input and then solicits further community input on revised proposal
Regional Transit Optimization Project
July 20, 2021
Next Steps
Regional Transit Authority
•Determination of boundary area (expected to not include Basalt)
•Definition of Services (inclusion of Eagle Air Alliance in addition to
regional transit services)
•Determination of process for adoption (required election by each
existing municipality that would be within the proposed boundary
area, timing of elections)
•Determination of cost of enhancements and additional funding that
is supported by the community
Regional Transit Optimization Project
July 20, 2021
Regional Transit Optimization Project
July 20, 2021
Regional Transit
Optimization
Project
July 20, 2021
Contacts:
Tanya Allen,
tanya.allen@eaglecounty.us
Eric Heil,
eheil@avon.org
970.748.4004 eric@avon.org
TO: Honorable Mayor Smith Hymes and Council members FROM: Eric Heil, Town Manager
RE: Worksession: Regional Transit Authority Update DATE: February 13, 2022
SUMMARY: This report provides an update on the Regional Transit Authority (RTA) process. Eagle
County and the Towns of Avon, Eagle, Gypsum, Minturn, Red Cliff and Vail signed a Memorandum of
Agreement (MOU) to cooperatively study an RTA and prepare a proposal for voter consideration. The
formation of an RTA is the creation a new governmental entity under the Regional Transportation Authority
Law.1 An RTA has authority to propose tax increases (subject to voter approval under TABOR2) and
authority to operate regional transit and take all actions related to transit operations.
This update provides an overview of the process, initial ideas and goals that Avon has articulated for transit
enhancements. The details of a proposed RTA is intended to be an iterative process where a draft proposal
is provided for stakeholder input and community engagement and then the proposal is revised to respond
to community preferences. This process also includes polling of the community on potential ballot questions
during late spring and summer.
ECO TRANSIT: ECO Transit is operated by Eagle County. A .5% sales tax generates $11,939,000 which is
distributed to transit and trails in the RFTA area (Roaring Fork Transit Agency), trails in Eagle County, and
the remaining $9,644,000 is distributed to ECO Transit. If an RTA is formed the current understanding is
that the new RTA would assume all operations and assets of the ECO Transit and Eagle County would
enter into an IGA to remit the current ECO Transit revenues to the RTA.
ENHANCED TRANSIT SERVICE: A fundamental goal of the RTA is to enhance transit service throughout
the region. There is no contemplation that existing services would be negatively impacted by the formation
of an RTA. A “Service Goals” document will be presented soon which identifies various transit
enhancement goals and identifies rough cost estimates associated with each goal. The Service Goals
document is discussed more below.
RTA FORMATION PROCESS: The process to form an RTA requires two or more local governments to
approve an Intergovernmental Agreement (RTA IGA), refer that RTA IGA to a general or special election3,
and obtain approval from participating local governments. The eligible voters for an election to form an RTA
are residents who are registered to vote. The required local governmental jurisdictions include the county
and municipalities for the areas to be included. Metropolitan districts have the option to be included;
however, metropolitan districts are not legally required. A tax increase or debt authorization may be asked
at the same time as the RTA formation question if the election dates meet TABOR requirementsand may
be asked as one combined ballot question. 4
A schedule of required actions was prepared in order to potential refer a ballot question to the November
8th, 2022 general election date. This date is an eligible date for both a question on formation of an RTA as
well as a question, or combined question, on potential tax increases to fund the RTA.
1 CRS §43-4-601 et.seq .
2 Tax Payors Bill of Rights (TABOR) is the 1992 constitutional amendment that requires voter approval for any new
or increased tax.
3 CRS §43-4-603(4) “The question of establishing the authority shall be submitted to such registered electors at a
general election or a special election called for such purpose.”
4 CRS § 43-4-603(4) “Such question may also be proposed to such registered electors at the same time and in the
same or a separate question as an election required under section 43-4-612.”
Page 2 of 2
Avon Council (and other participating members) will be asked to conduct public hearings on a draft RTA
IGA in April, then take action to approve the form of the draft RTA IGA by the end of May (for the purpose
of referring a draft to Colorado Department of Transportation), then take action in August to refer the final
version of an RTA IGA and any associated tax question to the November 8th, 2022 election.
REVENUES: An RTA has the authority to impose three taxes with voter approval in accordance with
TABOR. These revenues include a sales tax up to 1%, a “visitor benefit tax” (aka accommodations tax) up
to 2%, and a property tax up to 5 mills. In addition, an RTA can also impose a $10 registration fee per
vehicle within the RTA area. Attached is a revenue sheet showing potential funding sources. For discussion
purposes at this point, a 0.5% sales tax increase would generate a little over $11 Million in additional
revenues, which could support a number of identified service goals.
RTA FORMATION COMMITTEE: The MOU established an RTA Formation Committee to review policy
decisions and develop consensus. The RTA Formation Committee consists of a representative from Eagle
County and the towns of Vail, Red Cliff, Minturn, Gypsum, Eagle and Avon. Mayor Sarah Smith Hymes is
the representative for the Town of Avon. This Committee meets twice per month. I have raised and
advocated the inclusion of Beaver Creek Metropolitan District in the RTA IGA as a member of the RTA
Board. I believe this is appropriate because (1) there is a high concentration of lodging in Beaver Creek (i.e.
visitors and places of employment), (2) Beaver Creek is a current transit operator, and (3) Beaver Creek
generates a similar amount of sales tax and lodging tax as Avon. Ultimately, the goal of this Committee is
to develop consensus on an RTA IGA document that determines the participants, basic organizational
structure, service goals, and funding sources.
RTA TECHNICAL COMMITTEE: An RTA Technical Committee also exists as set forth in the MOU. The
Technical Committee includes representatives from the four transit agencies in Eagle County,
representatives of Vail Valley Partnership and Eagle Air Alliance, and additional representatives from other
communities. This Committee is a continuation of the working group that researched preliminary
information over the last year.
RTA STAKEHOLDER COMMITTEE: A Stakeholders Committee of other interested parties is expected to
start in March for the purpose of facilitating community engagement. All existing participants are helping to
identify a comprehensive and inclusive list of entities and organization to be included on the Stakeholder
Committee.
AVON’S SERVICE GOALS: The desired transit enhancement for Avon and the surrounding area has been
stated as (1) free and frequent transit between Beaver Creek, Avon and Vail and (2) support for funding for
the Eagle Air Alliance. General enhancement of transit service throughout the ECO Transit service area is
also expected as well as first and last mile improvements, investment in electric busses, and investment in
required facilities and housing to support enhanced transit. A very rough preliminary cost estimate for a fare
free transit zone for Edwards/Avon/Beaver Creek/Vail is approximately $3 Million.
REQUESTED COUNCIL DIRECTION: Confirmation that Avon transit enhancement service goals are
appropriate at this point in the process is desired.
Thank you, Eric
ATTACHMENT A: Formal Action Timeline
ATTACHMENT B: Eagle County RTA/Potential Funding Sources
Eagle County RTA Formation Committee
January 21, 2022, Regular Meeting
Organizational Steps Discussion
1
ORGANIZATIONAL TIMELINE AND CHECKLIST
Note: For discussion only. This timeline represents the latest dates provided for in statute to place the formation of the RTA on the November 8, 2022 election
ballot. Additional diligence and coordination needed to adjust timeframes for intermediate milestones.
Outside Timeframe Target Timeframe Task Authority Responsible
Party1
Prior to End-January
2022
Drafting, discussion, and negotiation of IGA. See notes at bottom re:
required elements and key decisions/items for discussion.
[Note: The deadline for finalization of IGA terms is basically now. The
implication is – every day needed for negotiation of the IGA requires
shortening timeframes for other steps in the schedule; particularly in the
timeframe for comment on the IGA by CDOT and adjoining
counties/municipalities. To the extent the regional transportation systems
to be included can be de-conflicted in advance, we should have the ability
to gain time, day-for-day, in the outside timeline.]
-
Formation
Committee and
all participating
entities.
45 days prior to
approval of the IGA.
No later than
January 27, 2022, if
assumptions around
March 13, 2022,
below hold true.
(See options to
mitigate/shorten
timeframe for
CDOT/affected
entity approvals.)
45 days prior to
approval of the IGA.
No later than March
17, 2022, assuming
first jurisdiction
approval of IGA
roughly May 2, 2022
(to allow for
meetings to occur
prior to Memorial
Day).
Provide notice to DOLA and the Department of Revenue containing the
proposed boundaries of the authority and the methods proposed for
financing regional transportation systems in the authority.
A copy of the notice(s) provided under this item are also to be filed with
the Transportation Commission (CDOT) and the State Auditor.
[Note: This provision referencing the “creation of the authority” could refer
to either the date the IGA is approved, the election date, or the later date
on which organization is certified by DOLA (which is not a certain date); the
RTA Law refers to “creation of the authority” and the effective date of such
creation somewhat interchangeably. We would suggest providing this
notice as soon as the proposed methods for financing are agreed, 45-days
prior to the earliest date on which the IGA will be approved (which is likely
not earlier than the first required public hearings).]
43-4-
614(1)(a)
Formation
Committee
1 References to the Formation Committee may include Eagle County or other designee(s) acting on behalf of the Formation Committee.
2
Outside Timeframe Target Timeframe Task Authority Responsible
Party1
[Note also: A separate notice is required specifying the amount of the fee
or tax proposed to be imposed under 43-4-614(1)(b); however, this notice
can be satisfied by the notice above.]
No sooner than 10
days following
published notice.
(est. notice week of
January 31, 2022,
for meeting week of
February 14, 2022)
No sooner than 10
days following
published notice.
(est. notice week of
April 11, 2022, for
meeting week of
April 25, 2022)
First public hearing on the IGA.2
Note: Timing of these notices and meetings to be refined for each
jurisdiction based on results of questionnaire/jurisdiction-specific meeting
schedules and practices.
43-4-603(3)
Each
participating
entity.
No sooner than 10
days following
published notice;
prior to entering
into the IGA.
(est. notice week of
February 21, 2022,
for meeting week of
March 7, 2022)
No sooner than 10
days following
published notice;
prior to entering into
the IGA.
(est. notice week of
May 2, 2022, for
meetings week of
May 16, 2022)
Second public hearing on the IGA. 43-4-603(3)
Each
participating
entity.
No later than March
13, 2022, if full 90
days allotted for
comment by
affected entities and
an additional 90
days to enter into an
IGA to address
concerns(re: for
example
May 27, 2022
(Before Memorial
Day)
“Combination” creates, by contract (the “IGA”), an authority that is
authorized to exercise the functions conferred by 43-4-601 et seq. (the
“RTA Law”). (Effective upon:
a. Affirmative vote of the registered electors residing within the
boundaries of the proposed authority (See 43-4-603(4)); and
b. the issuance by the DOLA Director or a certificate stating the RTA
has been duly authorized. The DOLA Director shall issue the
certificate upon filing of the IGA by the combination joining in the
creation of the authority. (See also 43-4-603(1)).
43-3-603(1)
Each
participating
entity.
2 The 45-day advance notice required to be given by the board of the authority to any county or municipality where a tax is proposed to be imposed under 43-4-613(1) would not seem to apply prior
to organization of the authority. However, we suggest following the public comment requirements of 43-4-613(2) with regard to meetings of the participating entities where a “public hearing” is
required.
3
Outside Timeframe Target Timeframe Task Authority Responsible
Party1
overlapping service,
cost share, etc.)
[Note on boundaries: To discuss intended boundaries and inclusion of
subsequently annexed property. See SMART IGA, also Wal-Mart Stores v.
Pikes Peak Rural Transp., 434 P.3d 725. Also to discuss entity-by-entity
organizational election in SMART IGA, and reconciling this with statutory
language re: “vote of the registered electors residing within the boundaries
of the proposed authority.”]
[Note on timing: Duration of item can be (i) mitigated as noted below
through early engagement with CDOT/adjacent counties and
municipalities, or (ii) reduced through expeditious removal of portions of
regional transportation systems (projects) of concern (requiring approval
of changes to IGA by participating entities).]
Following approval
by all participating
entities. (same date
as last approval of
IGA; see prior note)
Copy of IGA provided to CDOT for comment. [Note: To consider whether
IGA could be provided once two entities have approved, provided that the
language of the IGA is not changed thereafter by additional participating
entities. Conservatively, should assume all entities approve prior to
submitting to CDOT.]
Copy of IGA also provided to each county and municipality that is not a
member of the combination (a participating entity) that includes territory
that borders the proposed territory of the authority.
43-3-603(1) Formation
Committee
No later than 90
days following
receipt of IGA for
comment.
CDOT or a bordering county or municipality may inform the combination
that executed the IGA that any portions of the “regional transportation
systems” to be provided by the proposed authority that involve road
construction or improvement (as specified in the IGA), and that are on,
alter the structure of, or negatively impact safe operation of any highway,
road, or street under its jurisdiction, then, at the request of the affected
entity, the combination shall either:
a. Enter into an IGA with the affected entity concerning the
identified portions (specifying whatever terms are deemed
necessary to avoid duplication of effort and ensure coordinated
transportation planning, efficient allocation of resources, and
43-4-603(1.5) Formation
Committee
4
Outside Timeframe Target Timeframe Task Authority Responsible
Party1
equitable sharing of costs) within 180 days after IGA was
provided; or
b. eliminate those portions from the list of projects specified in the
contract (before it submits the IGA to a vote).
The affected entity is required to provide evidence of the negative impact.
[Note: Early participation by CDOT and bordering counties and
municipalities in development of the regional transportation systems to be
included could significantly cut down on the maximum potential timeframe
to complete this step.]
No later than July
19, 2022
Notify the County Clerk of formal action to participate in the 2022 General
Election.
[To consider whether this could be done by the Formation Committee
under the MOU; this timeline assumes authorization by each participating
entity to notify the County Clerk of intent to participate in the election,
without full approval of the IGA. To discuss and confirm with Formation
Committee. Timing not possible if all approvals are needed prior to this
notice being given.]
1-7-116(5), 1-
1-106(5)
All participating
entities.
August 30, 2022 Last day to sign IGA with County Clerk for conduct of the election. 1-7-116(2) Formation
Committee
September 9, 2022
Last day to certify ballot order and content for the 2022 General Election
[Note: This timeline assumes full approval of the IGA needed by this date
at the latest. To discuss and confirm.]
1-5-203(3)(a) Formation
Committee
September 23, 2022,
12:00pm
Last day to file written comments concerning ballot issue with the
designated election official (DEO) in order to be included in the ballot issue
notice.
[To confirm intent re: designation of DEO for purposes of organizational
election and role of Eagle County as lead agency.]
1-7-901(4),
Article X
Section
20(3)(b)(v)
(TABOR)
Formation
Committee (or
DEO )
September 23, 2022 Last day for petition’s representatives to submit favorable comments to
the DEO for inclusion in the ballot issue notice.
1-7-903(3), 1-
1-106(5)
Formation
Committee
(Petitioners)
5
Outside Timeframe Target Timeframe Task Authority Responsible
Party1
September 26, 2022 Last day to provide full text of ballot issue notices to the County Clerk. 1-7-904 Formation
Committee
November 8, 2022 Election Day -
November 17, 2022
Deadline for [the board] to notify the department of revenue of the
effective date of the tax.
[To confirm potential earliest timing of certification of election results; this
might not be complete in time for a January 1 sales tax effective date, in
which case the tax would be effective July 1, 2023.]
43-4-
612(1)(b) Authority Board
November 18, 2022 Deadline for County to finish tabulating ballots and generate a summary
report.
Rule
25.2.2(e) County Clerk
November 30, 2022 Last day for County to complete the canvass and submit abstracts to
Secretary of State. (Results uploaded December 1.)
1-10-102(1),
1-10-103(1) County Clerk
January 1, 2023 Earliest date a sales or use tax could be effective. 43-4-
612(1)(b) -
ADDITIONAL KEY DECISIONS / ITEMS FOR DISCUSSION
The following are mandatory terms for the contract (IGA) establishing the authority. Underlined items are those that likely require significant discussion
amongst the participating entities:
1. the name and purpose of the authority;
2. the regional transportation systems to be provided3;
3. the establishment and organization of the board of directors, including:
a. the number of directors, which shall be at least five 4, all of which shall be elected officials from the members of the combination (the participating
entities), and which shall include at least one elected official from each member;
b. the manner of the appointment, the qualifications, and the compensation, if any, of the directors and the procedure for filling vacancies;
3 Regional transportation system" is defined at 43-4-602(16).
4 We have assumed the State (CDOT) will not participate in the proposed RTA.
6
c. the officers of the authority, the manner of their appointment, and their duties; and
d. the voting requirements for action by the board; except that, unless specifically provided otherwise in the [IGA], a majority of the directors of the
board constitutes a quorum and a majority of the board is necessary for action by the board;
4. provisions for the distribution, disposition, or division of the assets of the authority;
5. the boundaries of the authority, which:
a. may not include territory outside of the boundaries of the members of the combination;
b. may not include territory within the boundaries of a municipality that is not a member of the combination as the boundaries of the municipality
exist on the date the authority is created without the consent of the governing body of such municipality; and
c. may not include territory within the unincorporated boundaries of a county that is not a member of the combination as the unincorporated
boundaries of the county exist on the date the authority is created without the consent of the governing body of such county;
6. the term of the [IGA] which may be for a definite term or until rescinded or terminated;
7. the method, if any, by which it may be terminated or rescinded; except that the [IGA] may not be terminated or rescinded so long as the authority has
bonds outstanding;
8. the provisions for amendment of the contract;
9. the limitations, if any, on the powers granted by [the RTA Law] that may be exercised by the authority; and
10. the conditions required when adding or deleting parties to the contract.
• Note that this schedule does not include timeframes required either by ordinance or by custom and courtesy for approval by individual jurisdictions. We
will need to gather and supplement the schedule with that information.
• Note that the IGA is not required to include details regarding the methods proposed for financing and revenue generation. However, the notices required
to be provided to DOLA and the Department of Revenue, as well as the timelines leading to certification of ballot language, suggest that the following items
should also need to be decided between the participating entities on the same timeline as the IGA is negotiated:
Transportation/Program Decisions
A. Will specific regional transportation systems (capital projects, operational priorities, air service commitments, etc.) be included in the ballot language
for approval, or alternatively, determined by the authority board at a later date?
Financial Decisions
B. Which of the following are to be included, and at what level?
a. Sales tax
b. Property tax
c. Visitor benefit tax
7
d. Vehicle registration fees
C. Debt authorization?
• Also to discuss: How will these decisions be made; i.e. is there a minimum “program” (capital and operating) we intend to commit to, and revenue needs
will be “backed into” from there? Or alternatively, will revenue-generating decisions be made by the participating entities by other means (negotiation,
polling, etc.), in which case, decisions regarding the regional transportation systems to be included might be impacted.
2021 - 1% Sales Tax
(Estimate)DISTRICT
2022 NET ASSESED
VALUE, NET of TIF
Estimated annual
1% "Visitor Benefit
Tax" *
Vail 7,420,171.50$ Eagle County 3,520,985,070.00$ Avon ** $500,000.00
Minturn 246,440.74$ Eagle County Health Service District * 3,248,227,590.00$ Eagle 20,000.00$
EagleVail * 565,013.04$ Proposed Eagle County RTA 2,805,414,260.00$ Gypsum N/A
Avon 3,812,340.38$ Vail 2,651,241.00$
Bachelor Gulch * 735,750.10$ Beaver Creek 605,000.00$
Arrowhead * 135,906.10$ Minturn 10,000.00$
Edwards * 1,333,257.33$ Edwards N/A
Eagle 1,531,699.59$ 1 mill 2,805,414.26$ $3,786,241.00
Gypsum 2,240,491.82$ 2.5 mills 7,013,535.65$
Red Cliff 22,077.06$ 5 mills ** 14,027,071.30$
Two Rivers * 50,088.82$
Red Sky Ranch * 51,029.11$
Unincorporated ** 3,870,165.60$
Proposed RTA 1% 22,014,431.19$ Tax Impact Estimates
Proposed RTA 0.5% 11,007,215.60$ $500,000 actual residential value / $35,750 assessed value 1 mill = $35.75 / year
5 mills = $178.75 / year
$1 Million actual residential value / $71,500 assessed value 1 mill = $71.50 / year
5 mills = $357.50 / year
$1 Million actual commercial prop value / ~$290,000 av 1 mill = $290 / year
5 mills = $1,450 / year
* Countywide 0.5% sales tax
ECO Transit $9,644,090.00
ECO Trails $1,071,566.00
RFV Transit (RFTA)$611,795.00
RFV Trails (RFTA)$611,795.00
2021 estimated $11,939,246.00
** Unincorporated Eagle County area, but
excludes the districts identified with *. Also
excludes El Jebel area.
ECO Transit Sales Tax Data*
Proposed RTA Property Tax Estimate
** Current law allows RTA to seek voter approval
for a uniform mill levy of up to 5 mills
Eagle County RTA / Potential Funding Sources
Sales Tax Data Property Tax Data
* NOTE: Beaver Creak is included in
Unicorporated. Areas that are within
unincorporated Eagle County are broken out from
the Unincorporated tax amount because there
was sufficient data at the county level to
Accomodations Tax Data
* According to RTA statute, "visitor
benefit tax" on accomodations cannot
"cause the aggregate amount of the
visitor benefit tax and any lodging tax
imposed on such overnight rooms or
accommodations to exceed two
percent of the price of such overnight
rooms or accommodations."
** Avon already has accommodations
tax of 4% and a recently enacted short-
term rental tax of 2%.
* Ambulance district excludes RFV/Basalt/El Jebel
Proposed Eagle County RTA Boundaries / 2022 Assessed Value: $2,805,414,260.00
2022 NET ASSESED
VALUE, NET of TIF
Eagle County 1 $3,520,985,070
Town of Avon 30 $234,872,120
Town of Eagle 32 $167,541,130
Town of Gypsum 33 $184,358,910
Town of Minturn 34 $32,922,710
Town of Red Cliff 35 $6,014,760
Town of Vail 36 $1,206,181,100
Key Metro Districts:
Arrowhead Metro District 52 $124,965,150
Bachelor Gulch Metro District 67 $163,255,760
Beaver Creek Metro District 54 $329,711,800
EagleVail Metro District 57 $103,918,780
Edwards Metro District 59 $201,113,620
Other Entities:
Airport Commerce Center Metro District 131 $3,613,300
Arrowhead Metro District 53 $73,780
Avon Station Metro District 38 $17,539,380
Beaver Creek Metro District 99 $1,296,590
Bellyache Ridge Metro District 55 $5,348,290
Berry Creek Metro District 56 $81,688,360
Buckhorn Valley Metro District #1 102 $36,850
Buckhorn Valley Metro District #2 101 $13,851,090
Cascade Village Metro District 61 $68,770,260
Cedar Hill Cemetery District 41 $184,042,390
Chatfield Metro District 105 $8,245,390
Colorado Mountain College 12 $3,519,850,750
Colorado River Water Conservation District 76 $3,344,377,030
Confluence Metro District 37 $982,080
Cordillera Metro District 63 $84,993,090
Cordillera Metro District - Consolidated 107 $102,261,540
Cordillera Mountain Metro District 45 $19,039,100
Cordillera Valley Club Metro District 106 $25,760,530
Cotton Ranch Metro District 65 $16,468,230
Eagle Cemetery District 42 $282,312,550
Eagle County Conservation District 90 $3,017,730,540
Eagle County Health Service District 96 $3,248,227,590
Eagle Ranch Metro District 44 $75,610,850
Eagle River Fire Protection District 100 $1,152,574,750
Eagle River Station Metro District 117 $91,370
Eagle River Water & Sanitation District 69 $2,597,766,990
Eagle River Water & Sanitation District - Subdistrict 85 $1,229,467,670
Eagle Valley Library District 94 $2,043,243,060
Edwards Metro District West End Subdistrict 143 $803,710
Greater Eagle Fire Protection District 46 $270,794,620
Gypsum Fire Protection District 50 $175,863,790
Haymeadow Metro District #1 136 $246,910
Haymeadow Metro District #2 137 $21,430
Haymeadow Metro District #3 138 $56,540
Haymeadow Metro District #4 139 $22,530
Haymeadow Metro District #5 140 $52,850
Haymeadow Metro District #6 141 $2,870
Holland Creek Metro District 88 $64,430
Horse Mountain Ranch Metro District 68 $2,903,500
Lake Creek Metro District 78 $18,809,110
Mid Valley Metro District 60 $151,001,780
Minturn Cemetery District 43 $1,339,597,030
Minturn General Improvement District 128 $573,020
Mountain Rec District 62 $846,952,980
Mountain Vista Metro District 39 $3,601,500
RE50J - Eagle County School District 16 $3,245,443,040
Red Sky Ranch Metro District 87 $17,674,560
Sienna Lake Metro District 104 $865,950
Smith Creek Metro District 66 $410,150
Solaris Metro District #1 121 $11,660
Solaris Metro District #2 122 $31,542,490
Solaris Metro District #3 123 $7,104,950
Timber Springs Metro District 133 $1,770,650
Tower Center Metro District 129 $193,410
Town of Avon General Improvement District 1 127 $3,029,370
Traer Creek Metro District 93 $61,560
Two Rivers Metro District 97 $6,641,780
Vail Park & Rec District 58 $1,228,454,040
Vail Square Metro District #2 115 $15,115,540
Vail Square Metro District #3 116 $12,776,220
Valagua Metro District 112 $4,471,640
Village Metro District 95 $16,635,960
WG JT 1 - West Grand School District 25 $1,134,320
Avon Station Metro Debt Svc - NEW from Avon TIF 147 $982,040
Property Tax Entities Overlapping with Proposed RTA