Finance Committee Meeting Materials - 6-19-2023MAY 3, 2023 - FINANCE COMMITTEE MEETING MATERIALS PAGE 1 | 1
FINANCE COMMITTEE MEETING MATERIALS
MONDAY, JUNE 19, 2023
1. STAFF UPDATES ON FINANCIAL RESULTS THROUGH APRIL
Financial Report – April & May 2023 Data
2. PROPERTY TAX ANALYSIS
Materials will be provided on Monday 6/19
970-748-4044 dstockdale@avon.org
TO: Finance Committee FROM: Joel McCracken – Finance Manager
RE: Financial Report – April & May 2023 Data
DATE: June 13th, 2023
SUMMARY: This report presents the revenues for sales, accommodations, tobacco and cigarette, and
short-term rental tax for April 2023 and the recreation fees and real estate transfer tax revenues for May
2023.
BACKGROUND: The percentage variance, or comparative change is reflected in the analysis portion of
this report in respect to each individual section for April and May revenues in 2023. 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 – April 2023: April sales tax revenues totaled $676,048. This is an increase of
$57,372 or 6.09% compared to April 2022 sales tax revenue of $618,675.
APRIL 2022 v APRIL 2023 SALES TAX COMPARISON BY INDUSTRY
APRIL 2022 APRIL 2023 Increase/Decrease
Home/Garden $74,356.59 $71,538.09 ($2,818.50)
Grocery/Specialty/Health $156,670.43 $171,254.83 $14,584.40
Sporting Goods Retail/Rental $39,230.02 $53,535.67 $14,305.65
Miscellaneous Retail $22,656.40 $21,062.69 ($1,593.71)
Accommodations $86,114.93 $82,598.46 ($3,516.47)
Restaurants/Bars $115,781.24 $134,806.31 $19,025.07
Other $8,685.35 $13,839.60 $5,154.25
Service Related $21,137.99 $26,441.78 $5,303.79
Liquor Stores $19,458.88 $11,880.10 ($7,578.78)
E-Commerce Retail $35,136.29 $39,657.01 $4,520.72
Manufacturing/Wholesale $5,740.21 $6,141.43 $401.22
Construction Related Services $27,107.04 $35,969.52 $8,862.48
Digital Media Suppliers/Sellers $5,664.27 $5,883.56 $219.29
Commercial/Industrial Equipment $618.90 $976.92 $358.02
Special Events $316.61 $461.60 $144.99
TOTAL $618,675.15 $676,047.57 $57,372.42
Sales Tax: April 2023 Budget v Actual Collections: April 2023 sales tax revenues totaled $676,048.
This is an increase of $84,150 over the April 2023 estimates of $591,897. This is 14.79% above the
adopted 2023 budget (based on a 3-year average).
Page 2 of 9
APRIL 2023 BUDGET v ACTUAL COLLECTIONS - SALES TAX
2023 Budget 2023 Actual Dollar Variance Percentage Variance
APRIL $591,897.21 $676,047.57 $84,150.36 14.79%
424,685.32 349,189.52 591,350.43 618,675.15 $676,047.57 -17.78%
69.35%
4.62%
9.27%
$300,000
$350,000
$400,000
$450,000
$500,000
$550,000
$600,000
$650,000
$700,000
2019 2020 2021 2022 2023
2019-2023 April Sales Tax Revenue Trend
Page 3 of 9
Accommodation Tax: Revenues – April 2023: Accommodation tax revenues totaled $90,543 for the
month of April. This is a decrease of $1,267 or 1.38% compared to April 2022 accommodation tax
revenues, which totaled $91,810. Accommodation tax collections by industry type for April 2023 compared
to April 2022 reported an increase for Hotels while Vacation Rentals and Time Shares were down.
APRIL 2022 v APRIL 2023 ACCOMMODATION TAX COMPARISON BY INDUSTRY
APRIL 2022 APRIL 2023 Increase/(Decrease)
Timeshares $33,224.09 $18,356.22 ($14,867.87)
Hotels $19,081.81 $38,756.02 $19,674.21
Vacation Rentals $39,504.07 $33,430.29 ($6,073.78)
TOTAL $91,809.97 $90,542.53 ($1,267.44)
April 2023 Budget v Actual Collections: April 2023 accommodation tax revenues totaled $90,543. This is
an increase of $12,110 over the April 2023 estimates of $78,432. This is 15.44% over the adopted 2023
budget (based on a 3-year average).
APRIL 2023 BUDGET v ACTUAL COLLECTIONS - ACCOMMODATIONS TAX
2023 Budget 2023 Actual Dollar Variance Percentage Variance
APRIL $78,432.40 $90,542.53 $12,110.13 15.44%
31,825 8,631 73,465 91,810 90,543-72.88%
751.18%
24.97%
-1.38%
$0
$50,000
$100,000
2019 2020 2021 2022 2023
2019-2023 April Accommodation Tax Revenue
Trend
Page 4 of 9
Short Term Rental Tax for CH: Revenues – April 2023: STR Tax for Community Housing totaled
$39,302 for the month of April. This is a decrease of $1,287 or 3.17% compared to April 2022. The Westin
Hotel is classified as a hotel in our MuniRevs system, although they are zoned as residential.
APRIL 2022 v APRIL 2023 STR TAX FOR CH COMPARISON BY INDUSTRY
APRIL 2022 APRIL 2023 Increase/(Decrease)
Timeshares $9,540.91 $9,178.10 ($362.81)
Hotels $12,171.03 $14,809.65 $2,638.62
Vacation Rentals $18,876.53 $15,314.15 ($3,562.38)
TOTAL $40,588.47 $39,301.90 ($1,286.57)
Tobacco & Cigarette Tax: Revenues – April 2023: Tobacco tax revenues totaled $26,605 and cigarette
tax revenues totaled $19,665 for April 2023. Compared to April 2022 revenues, this is an increase of
$1,941 for tobacco tax revenues, which totaled $24,663 and an increase of $1,431 for cigarette tax
revenues, which totaled $18,234.
15,416 12,157 19,194 24,663 26,605
-21.14%
57.89%
28.49%
7.87%
-
5,000
10,000
15,000
20,000
25,000
30,000
2019 2020 2021 2022 2023
2019-2023 April Tobacco Tax Revenue Trend
Page 5 of 9
April 2023 Adopted Budget v Actual Collections: April 2023 tobacco and cigarette tax revenues totaled
$26,605 and $19,665, respectively. This is an increase of $5,247, over the April 2023 budget for tobacco
tax, which is $21,358 and an increase of $2,675 over the April 2023 budget for cigarette tax estimates,
which is $16,990 which is based on a 3-year average.
APRIL 2023 BUDGET v ACTUAL COLLECTIONS - TOBACCO AND CIGARETTE TAX REVENUES
2023 Budget 2023 Actual Dollar Variance Percentage
Variance
Tobacco $21,358.11 $26,604.85 $5,246.74 24.57%
Cigarettes $16,989.75 $19,665.00 $2,675.25 15.75%
Total $5,797.12
18,392 16,188 18,798 18,234 19,665
-11.98%
16.12%
-3.00%7.85%
-
5,000
10,000
15,000
20,000
25,000
2019 2020 2021 2022 2023
2019-2023 April Cigarette Excise Tax Revenue
Trend
Page 6 of 9
Real Estate Transfer Tax: Revenues – May 2023: May 2023 real estate transfer tax totaled $364,609.
Compared to May 2022, which totaled $1,079,581, this is a decrease of $714,972. This is a decrease of
$181,744 under the May 2023 budget which was based on a 3-year average.
MAY 2023 BUDGET v ACTUAL COLLECTIONS – REAL ESTATE TRANSFER TAX REVENUES
2023 Budget 2023 Actual Dollar Variance Percentage
Variance
Real Estate Transfer Tax $546,352.42 $364,608.68 ($181,743.74) -33.26%
Note: There is an apparent anomaly in the amount of RETT received in May 2022. In May 2022, two
homes in the amount of $20 million and $7 million were sold in Mountain Star, resulting in $405,000 and
$140,000, respectively, RETT revenues.
$278,242 $100,257 $323,408 $1,079,581 $364,609 -63.97%
222.58%
233.81%
-66.23%
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
2019 2020 2021 2022 2023
Real Estate Transfer Tax May Revenue Trends
Page 7 of 9
Recreation Center Fees: Revenues – April 2023 Admissions & Program Fees: Recreation admission
revenues for May 2023 totaled $81,198 a decrease of $4,824 compared to May 2022 which totaled
$86,023. This is $22,925 over the adopted 2023 budget estimates of $58,273. Recreation program fee
revenues for May 2023 totaled $32,683. This is an increase of $15,790 compared to 2022, which totaled
$16,893. This is $8,615 over the adopted 2023 budget estimates, which is $24,067 which is calculated
based on a 3-year average.
63,563 714 37,549 86,023 81,199
-98.88%
5162.65%
129.10%
-5.61%
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
2019 2020 2021 2022 2023
Recreation Admissions May Revenue Trends
$31,336 $7,749 $33,138 $16,893 $32,683
-75.27%
327.66%
-49.02%
93.47%
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
2019 2020 2021 2022 2023
Recreation Program Fees May Revenue Trends
Page 8 of 9
Tax Revenue Comparison – 2022 v 2023: All revenues except for RETT are reporting an increase for
2023 compared to 2022. Below is a table which reflects the dollar change and percentage variance.
Adopted Budget 2023 v Actual 2023: All revenues except for RETT reflect a positive variance over the
2023 budget. Below is a table which reflects the dollar change and percentage variance.
Thank you,
Joel
2022 v 2023 Year-to-Date Revenue Comparison
2022 YTD 2023 YTD Dollar Variance Percentage
Variance
Sales Tax $4,583,238.87 $4,862,289.11 $279,050.24 6.09%
Acc. Tax $1,166,212.12 $1,179,334.37 $13,122.25 1.13%
STR Tax for CH $535,377.58 $537,215.10 $1,837.52 0.34%
Tobacco Tax $113,343.91 $122,065.40 $8,721.49 7.69%
Cigarette Tax $75,876.54 $77,701.50 $1,824.96 2.41%
RETT $2,946,922.69 $1,706,567.50 ($1,240,355.19) (42.09%)
Rec Admissions $402,475.51 $474,920.51 $72,445.00 18.00%
Rec Program Fees $119,804.35 $173,773.36 $53,969.01 45.05%
2023 Revenue Comparison – Budget v Actual
Budget Actual Dollar Variance Percentage
Variance
Sales Tax $4,235,800.53 $4,862,289.11 $626,488.58 14.79%
Acc. Tax $1,079,471.37 $1,179,334.37 $99,863.00 9.25%
STR Tax for CH $491,190.04 $537,215.10 $46,025.06 9.37%
Tobacco Tax $102,185.80 $122,065.40 $19,897.60 19.45%
Cigarette Tax $71,583.21 $77,701.50 $6,118.29 8.55%
RETT $2,019,280.30 $1,706,567.50 ($312,712.80) (15.49%)
Rec Admissions $353,469.25 $474,920.51 $121,451.26 34.63%
Rec Program Fees $120,202.71 $173,773.36 $53,570.64 44.57%
Page 9 of 9
Formation of DDA
June 5, 2023
Formation of Downtown
Development Authority
“DDA”Eric Heil,
Town Manager
Karl Hanlon,
Town Attorney
Kristin Kenney
Williams,
Commfluent
Formation of DDA
June 5, 2023
Formation of Downtown
Development Authority
“DDA”
Eric Heil, Town Manager
Meeting Agenda
Welcome & Introduction
Purpose
Boundary Map
Eligible Voters | Special
Election
Summary of Financial
Structure
DDA Implementation
Schedule
Next Steps
Purpose of Downtown Development Authority
DDA is a Statutory Local Government Authority
●Promotes Sound Economic Growth of
Community’s Central Downtown Commericial Core
●Provides New Dedicated Funding Source
●Supports Funding for Workforce Housing &
Infrastructure Projects to Support Housing and
Increased Residential Population
●Supports Development and Redevelopment
●Alleviate or Prevent Blight Conditions
Formation of DDA
June 5, 2023
Boundary of Downtown Development Authority
“Central Business District”
●DDA organized by the
Municipal Governing Body
(Avon Town Council)
●Boundary depicts principal
business, commercial,
financial service and
government center of Town
●Map sets forth the taxing
collection area
Formation of DDA
June 5, 2023
TOTAL ACREAGE OF AVON TOWN LIMITS: 5391.36 AC
TOTAL ACREAGE OF PROPOSED DDA AREA: 294.1 AC
OR 5.5% OF THE TOWN OF AVON
Close-up of Proposed Avon DDA Boundary
DDA PLAN
Downtown Development Authority Plan
●Primary Purpose is “Community Housing” (must
be employed in Eagle County to qualify)
●50% of funding is planned for investment into
Community Housing
●Parking Structures
●Recreation Center Expansion
●Construction of New Parks – Village (at Avon)
●Reconstruction of Streets in East Avon and Sun
Road to Support Redevelopment
Formation of DDA
June 5, 2023
Separate DDA Board:
5-11 Seats, One Council Member
Projects Approved By:
1.DDA Board
2.Avon Planning & Zoning
Commission
3.Avon Town Council
Budget Approved By:
1.DDA Board
2.Avon Town Council
Formation of DDA
June 5, 2023
POTENTIAL PROJECTS
Town Core:
•Public Parking
Structures
•Recreation Center
Expansion
•Realignment/
Reconstruction of
Streets in Sun Road
and East Avon
Formation of DDA
June 5, 2023
POTENTIAL PROJECTS: Village (at Avon)
•Planning Area B: 4 acre park, planned to include large water feature
•Planning Area E, Lot 8: Housing for Early Childhood Education Center
•Planning Areas D, C and J: Currently zoned for residential. Potential for Community Housing projects.
Financial Considerations
Financial Highlights
●Similar to an Urban Renewal Authority
●Utilizes Tax Increment Financing
within the DDA Area
●Retain Increased Property Taxes
Generated from the increase, (i.e.
“increment”) in value of new
development
Formation of DDA
June 5, 2023
Financial Considerations
June 5, 2023
AVON URBAN RENEWAL
AUTHORITY – 2023
Taxing Entity Mill Levy Percentage
AURA Tax
Increment
Property Tax Revenues
within Avon in addition
to AURA Tax Increment
Avon 8.956 14.29%$ 262,567.00 $ 2,082,427.00
Eagle County 8.499 13.56%$ 249,169.00 $ 1,976,167.00
Eagle County School District 24.649 39.32%$ 772,646.00 $ 5,731,326.00
Colorado Mountain College 4.085 6.52%$ 119,762.00 $ 949,834.00
Eagle River Fire 9.703 15.48%$ 284,467.00 $ 2,256,118.00
Eagle Valley Library 2.763 4.41%$ 81,004.00 $ 642,446.00
Eagle River Water & San 0.759 1.21%$ 22,252.00 $ 176,481.00
Eagle County Health Services 2.774 4.43%$ 81,327.00 $ 645,004.00
Colorado Water Conservancy 0.501 0.80%$ 14,608.00 $ 116,491.00
TOTAL 62.689 $ 1,887,802.00 $ 14,576,294.00
Financial Considerations
June 5, 2023
Taxing Entity
Avon URA Property
Tax Increment
Total Property Tax within
taxing entity jurisdiction
in addition to Avon URA
tax increment
% Avon URA
tax increment to
property tax Total Budget
% Avon URA
increment to
budget
Town of Avon $ 262,567.00 $2,082,427.00 11.1969%$59,039,180.00 0.4220%
Eagle County (operating budget)$ 249,169.00 $15,541,000.00 1.6033%$54,599,000.00 1.4151%
Eagle County School District $ 772,646.00 $78,404,330.00 0.9855%$136,831,750.00 0.0875%
Colorado Mountain College $ 119,762.00 $55,564,847.00 0.2155%$79,048,372.00 0.3599%
Eagle River Fire Protection District $ 284,467.00 $10,631,677.00 2.6757%$15,693,729.00 0.5162%
Eagle Valley Library District $ 81,004.00
Eagle River Water and Sanitation District $ 22,252.00
Eagle County Health Services District
(Eagle County Paramedic Services)$ 81,327.00 $8,862,338.00 0.9177%$14,633,881.00 0.0998%
Colorado River Water Conservancy
District $ 14,608.00 $9,879,074.00 0.1479%$11,329,693.00 0.1289%
Financial Considerations
June 5, 2023
Avon Downtown Development Authority Financial Model
Assumptions: 10 years to achieve 150% value of Avon URA in 2023
Year 2033 2033-2053
Taxing Entity DDA Tax Increment 20 Year Collection
Avon $ 393,850.50 $ 7,877,010.00
Eagle County $ 373,753.50 $ 7,475,070.00
Eagle County School District $ 1,158,969.00 $ 23,179,380.00
Colorado Mountain College $ 179,643.00 $ 3,592,860.00
Eagle River Fire $ 426,700.50 $ 8,534,010.00
Eagle Valley Library $ 121,506.00 $ 2,430,120.00
Eagle River Water & San $ 33,378.00 $ 667,560.00
Eagle County Health Services $ 121,990.50 $ 2,439,810.00
Colorado Water Conservancy $ 21,912.00 $ 438,240.00
TOTAL $ 2,831,703.00 $ 56,634,060.00
Financial Modelling is
ONLY FOR
ILLUSTRATION
PURPOSES
Many factors will influence
future development which are
not in the control of the Town
of Avon, including economy
and recession cycles, timing of
development, commercial
versus residential
development and quantity of
development.
Eligible Voters
Special Election
●Question is Referred to the Voters by Town
Council Approval
●Qualified Electors includes residents,
landowners or lessees within the proposed
boundary area
●Must be Registered to Vote; Register:
www.coloradosos.gov/voter/pages
●Proposed Special Election Day is Tuesday,
August 29, 2023
●Conducted as Mail Ballot Election
Formation of DDA
June 5, 2023
Resident Landowner Lessee
(a)A citizen of the United States
(b)A resident of the State of Colorado
(c)18 years of age or older
(d)A person whose primary dwelling place
is within the boundaries of the
proposed district
(e)Registered to vote in Colorado
Only those electors with a voter
registration address within the boundaries of
the proposed district will automatically
receive a ballot.
If an elector actually resides within the
district but is registered to vote at an address
outside the district, the elector must
complete a Request for Mail Ballot Form.
(a)An owner in fee of any undivided
interest in real property or any
improvement affixed thereto within
the boundaries of the proposed
district.
(b)If a natural person, 18 years of age or
older, or, if an entity, a person
designated by the entity to vote on the
entities behalf who is eighteen years of
age or older.
An owner in fee includes a contract
purchaser obligated to pay general taxes, an
heir, and a devisee under a will admitted to
probate.
An owner in fee does not include a
contract seller of property where the
contract purchaser is deemed to be the
owner in fee.
Interval or timeshare “owners” are
generally not owners in fee.
Landowners will automatically be mailed a
ballot at the property’s mailing address.
(a)A holder of a leasehold interest in real
property, within the boundaries of the
proposed district.
(b)If a natural person, 18 years of age or
older, or, if an entity, a person
designated by the entity to vote on the
entities behalf who is eighteen years of
age or older.
Here, a leasehold interest does not
include a license or mere contract right to
use real property, including interval and
timeshare ownership where an “owner’s”
right to use certain weeks arises by contract
or by the purchase of points.
Lessees will not automatically receive a
ballot. If the Lessee is an entity, the Lessee
must complete a Designation of Elector Form
for the entity and the Lessee’s designee must
complete a Mail Ballot Request Form. If the
Lessee is an individual, the Lessee must
complete a Mail Ballot Request Form.
Individual Entity (Corp, LLC, Partnership, Trusts)
Own property in
personal name
within boundary
Will receive ballot
in the mail
Will receive ballot
in the mail
Registered to vote
at address within
boundary
Own property in
entity name
within boundary
Lease property in
entity name
within boundary
Must designate an
individual to vote
on entity’s behalf
Entity Voter Designation
File an Affidavit of Designation and request
a ballot by
August 29 , 2023.
You may only vote
once as an
individual or entity.
The same person
cannot be
designated and vote
for multiple entities.
If one entity owns
multiple properties
within the
Boundary, that
entity may only cast
one vote.
Lease property in
personal name
within boundary
Request a ballot by
August 29, 2023.
DDA Formation Schedule
Public Meetings
Planning & Zoning Commission Public Hearings:
May 16 & June 6
Avon Council Public Hearings:
June 13 & 27
Special Election: August 29, 2023
DDA Information:
Avon Downtown Development Authority Formation
Formation Documents
Ordinance 23-02 Referring
Establishment of a Downtown
Development Authority to a
Special Election
DDA Boundary Map
DDA Plan
Blight Study Report
Formation of DDA
June 5, 2023
Formation of Downtown
Development Authority
QUESTIONS? MORE INFORMATION?Kristin Kenney Williams
Kristin@commfluent.com
Miguel Jauregui Casanueva,
Town Clerk
mjauregui@avon.org
Eric Heil, Town Manager
eric@avon.org