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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 l e s 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 g u r e s 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 THIS PAGE INTENTIONALLY LEFT BLANK 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 THIS PAGE INTENTIONALLY LEFT BLANK 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 Ea g l e C o u n t y , C o l o r a d o G o v m n t , G I S D e p t P : \ T o w n s \ T o w n _ o f _ A v o n \ M a r i j u a n a _ M a p p i n g _ 0 4 0 7 1 4 \ M a r i j u a n a M a p p i n g . m x d D a t e : 1 1 / 1 2 / 2 0 2 1 9 : 5 2 : 0 6 A M N a m e : a m y . k e e l e y 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. 1 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. 2 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 Page 3 of 4 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 h l l k R inveiees and sta4ements e a di s h at i l ft b th a7s th eep-a l drgrnguemerasemeegeneraan d shall 7 anf trofcr t.itu°t;°-- f with t 1;~h t 11hvrvracrcrGTrOrrrnceTiirmiErrcGviceE6r~e F~C i e nurr umhased 7 the m4h an d shall the e e a th Fi eprupnpyaenanse th A f il t e h A M 1a r t d k i d t kmens.ny a ure e pr eserve Su nen s h ll b an we d d ses, an i l ti e ma e f thi h t Th f ll m t ef a us afs tax due an e eeme a d net aid v e a f en e s t fieapen i l e u a eun h AIR b A li ny n u n e the real r p o ert be er ee n fit d ns me en b hmmer-a s s e -e d the Finnt" pe ance Dife p eter_ is aut-he p y r-ize to file e e ti° y sue. f lien with t 7 he Geunty Cler-k and Reeer-der-. ee 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 1.1°nit ..1. 11thri:r-ciiczacy use en used -te the-amount ef the-use-ta if th Fide e Di t d tpyexunanee that the n nt ofthe .7e se tnvesit is in xeess ofth r-es er e er es d th 1.h llpaeueeesa itl,ir,_t iAy days ofn..nh deten: inn ien nTftn.,4 1,asu~e titcS t t ttbilthr..i d herein ff-eIsn ri n ve d e e max~cruccrvrrzircc er- n °l s u j ,Tccc-er a c cv m--cccxeuse fAn lidTtilvr eta d-if hhe n th va t t ee o esveresaa ti f h chtthfxense~r pays oi~ne s aax e-me-pttm ase o su eenstmetien materSAn[GI ls, then j.,he shall be entitled te-a er-edit, to-LYYl7 extente 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 tax-lawfWl im osed as .a en-the umhse e p uff asmee1~11V 11./Ml Vll{4V b et °t te eV 7,V VI-JGoasales 1hyp litmuniei in the St ap ifate ,.f'!''eie -ad r y--an s a u 4ttd l eme t t thpy er-eeet ratethefetff- d ro idedfe h r-a e equaaxea i t d f o e g an fthTp ven's use tax if t p v r-ere he ate tl l n, are exemp e r vtn om e own e 7 b h t hYY Geier-ado statutor e r e-sae rhe l es er ase c~a l th y efeaeeT f iy differ-enee betw t me-Pa tere na°,.h t d ess an thi h t d th euf eext-,-t e id b heen urehasealll be " e ai ue e-te the Te s e ap er- an e f A d h ll tar, pa y t e tt d t thp 1;in ° Di, °t,. o an s a ra e o e 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; April 2022 Draft (Public Hearing #1) 6 (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; April 2022 Draft (Public Hearing #1) 7 (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. April 2022 Draft (Public Hearing #1) 8 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: April 2022 Draft (Public Hearing #1) 9 (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. April 2022 Draft (Public Hearing #1) 10 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 April 2022 Draft (Public Hearing #1) 11 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. April 2022 Draft (Public Hearing #1) 12 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. April 2022 Draft (Public Hearing #1) 13 (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 April 2022 Draft (Public Hearing #1) 14 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. April 2022 Draft (Public Hearing #1) 15 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. April 2022 Draft (Public Hearing #1) 16 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, April 2022 Draft (Public Hearing #1) 17 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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uthority Boundary Description I|lmfmx#E# xs#Rsxmgi#sj#Jsvqexmsr#sj#Vikmsrep#Xverwtsvxexmsr#Eyxlsvmx}# Pikep#Hiwgvmtxmsr#sj#VXE#Fsyrhevmiw# Fikmrrmrk#sr#xli#gsqqsr#xs{rwlmt#pmri#jsv#Xs{rwlmt#6#Wsyxl#erh#Xs{rwlmt#7#Wsyxl/#Verki#<3#[iwx#9xl Tvmrgmtep#Qivmhmer/#tsmrx#epws#fimrk#sr#xli#gsqqsr#fsyrhev}#pmri#sj#Iekpi#erh#Wyqqmx#Gsyrxmiw/# xlirgi#{iwx#epsrk#wemh#xs{rwlmt#pmri#xs#xli#R[#gsvriv#sj#Wigxmsr#9#Xs{rwlmt#7#Wsyxl#Verki#<3# [1##Xlirgi#rsvxl#xs#xli#RI#gsvriv#sj#Wigxmsr#4#Xs{rwlmt#7#Wsyxl#Verki#<4[1##Xlirgi#{iwx/#gsrjsvqmrk# xs#xli#rsvxl#fsyrhev}#sj#Xs{rwlmt#7/#Verkiw#<4/#<5#)#<6#[iwx#xs#xli#W[#gsvriv#sj#Wigxmsr#69#Xs{rwlmt# 6#Verki#<6#[iwx1##Xlirgi#rsvxl#xs#xli#R[#gsvriv#sj#Wigxmsr#69#Xs{rwlmt#6#Wsyxl#Verki#<6# [iwx1##Xlirgi#{iwx#xs#xli#R[#gsvriv#Wigxmsr#66#Xs{rwlmt#6#Wsyxl#Verki#<6#[iwx1##Xlirgi#wsyxl#xs#W[# gsvriv#sj#Wigxmsr#66#Xs{rwlmt#6#Verki#<6#[iwx1##Xlirgi#wsyxl#xs#xli#W[#gsvriv#sj#Wigxmsr#7#Xs{rwlmt# 7#Wsyxl#Verki#<6#[iwx1##Xlirgi#wsyxl{iwxivp}#xs#xli#W[#gsvriv#sj#Wigxmsr#<#Xs{rwlmt#7#Wsyxl#Verki# <6#[iwx1##Xlirgi#{iwx#xs#xli#R[#gsvriv#Wigxmsr#4<#Xs{rwlmt#7#Wsyxl#Verki#<6#[iwx1##Xlirgi#wsyxl#xs# xli#WI#gsvriv#sj#Wigxmsr#46#Xs{rwlmt#7#Wsyxl#Verki#<7#[iwx1##Xlirgi#{iwx#epsrk#xli#wsyxl#pmriw#sj# Wigxmsrw#46/#47/#48/#49/#4;#)#4<#Xs{rwlmt#7#Wsyxl#Verki#<7#[iwx/#xli#wsyxl#pmriw#sj#Wigxmsrw#46/#47/#48/# 49/#4;#)#4<#Xs{rwlmt#7#Wsyxl#Verki#<8#[iwx/#erh#xli#wsyxl#pmriw#sj#Wigxmsrw#46/#47/#48/#49/#4;#)#4<# Xs{rwlmt#7#Wsyxl#Verki#<9#[iwx#xs#xli#W[#gsvriv#Wigxmsr#4<#Xs{rwlmt#7#Wsyxl#Verki#<9# [iwx1##Xlirgi#wsyxl#xs#xli#RI#gsvriv#sj#Wigxmsr#57#Xs{rwlmt#7#Wsyxl#Verki#<;#[iwx1##Xlirgi#{iwxivp}# epsrk#xli#rsvxl#fsyrhev}#sj#Wigxmsrw#57#erh#56/#Xs{rwlmt#7#Wsyxl#Verki#<;#[iwx#xs#xli#gsqqsr# fsyrhev}#pmri#fix{iir#Iekpi#erh#Kevjmiph#Gsyrxmiw1##Xlirgi#wsyxlivp}#epsrk#xli#gsqqsr#fsyrhev}#pmri# fix{iir#Iekpi#erh#Kevjmiph#Gsyrxmiw#xs#xli#tsmrx#sj#mrxivwigxmsr#sj#xli#{iwxivr#fsyrhev}#sj#Iekpi# Gsyrx}#erh#xli#rsvxlivr#fsyrhev}#sj#xli#Vsevmrk#Jsvo#Xverwtsvxexmsr#Eyxlsvmx}1##Xlirgi#wsyxliewxivp}# jspps{mrk#xli#rsvxlivr#fsyrhev}#sj#xli#Vsevmrk#Jsvo#Xverwtsvxexmsr#Eyxlsvmx}#xs#xli#mrxivwigxmsr#sj#xli# Vsevmrk#Jsvo#Xverwtsvxexmsr#Eyxlsvmx}#erh#xli#wsyxlivp}#fsyrhev}#sj#Iekpi#Gsyrx}1##Xlirgi#iewxivp}# epsrk#xli#wsyxlivr#fsyrhev}#sj#Iekpi#Gsyrx}#xs#xli#tsmrx#sj#mrxivwigxmsr#sj#xli#gsqqsr#fsyrhev}#pmri# sj#Iekpi/#Peoi/#erh#Wyqqmx#Gsyrxmiw1##Xlirgi#rsvxlivp}#epsrk#xli#iewxivr#fsyrhev}#sj#Iekpi#Gsyrx}#xs# xli#tsmrx#sj#svmkmr1### 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