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Finance Committee Packet July 15, 2024JULY 15, 2024; FINANCE COMMITTEE MEETING AGENDA PAGE 1 FINANCE COMMITTEE MEETING AGENDA MONDAY, JULY 15, 2024 MEETING BEGINS AT 5:00 PM 100 MIKAELA WAY, AVON CO 81620 1. CALL TO O RDER AND ROLL CALL 2. APPROVAL OF MAY 20, 2024 MINUTES 3. PUBLIC COMMENT [Public comments are limited to three (3) minutes. The speaker may be given an additional one (1) minute, which may be approved by a majority of the Committee.] 4. USE TAX V OTER P OLLING UPDATE (CHIEF FINANCIAL OFFICER PAUL REDMOND) 5. G ENERAL UPDATE ON 2024 FINANCIALS 6. V ILLAGE AT AVON FINANCIAL UPDATE (CHIEF FINANCIAL OFFICER PAUL REDMOND AND TOWN MANAGER E RIC HEIL) 7. FISCAL PEER COMMUNITY COMPARISON STUDY (CHIEF FINANCIAL OFFICER PAUL REDMOND) 8. NEXT COMMITTEE MEETING DATE: ▪ September 16. ▪ November TBD. We need to pick a date for November, the 3rd Monday in November conflicts with PZC due to a schedule adjustment for Thanksgiving the 4th week. 9. ADJOURNMENT FUTURE AGENDAS: ✓ 2025 BUDGET (REVENUE REVIEW ) MEETING AGENDAS AND PACKETS ARE FOUND AT: WWW.AVON.ORG MEETING NOTICES ARE POSTED AT AVON TOWN HALL, AVON RECREATION CENTER, AVON ELEMENTARY AND AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK MIGUEL JAUREGUI CASANUEVA AT 970-748-4001 OR EMAIL MJAUREGUI@AVON.ORG WITH ANY SPECIAL REQUESTS FINANCE COMMITTEE MEETING MONDAY, MAY 20, 2024 HYBRID MEETING; IN-PERSON AND ON TEAMS Finance Committee Meeting, May 20, 2024 1 | 2 1. ROLL CALL The meeting began at 5:10 p.m. PRESENT - Finance Committee: Lisa Post (virtually), Craig Ferraro (virtually), John Widerman and Steve Coyer. Town Council: Councilor Rich Carroll Town Staff: Town Manager Eric Heil, Chief Financial Officer Paul Redmond and Chief Administrative Officer Ineke de Jong, as Secretary. ABSENT- Finance Committee: Clark Rogers and Markian Fedeschuk Town Council: Councilor Tamra Underwood Town Manager Eric Heil kicked off the meeting by thanking all committee members for their patience during the long pause in meetings as we started up the Avon Downtown Development Authority (DDA) Board which has taken up a lot of staff time in the last 12 months. Eric expressed staff was happily surprised by the enthusiasm and interest from everyone to continue to serve on the committee and tackle a list of finance topics. 2. APPROVAL OF JUNE 19TH, 2023 MINUTES Steve Coyer moved to approve the minutes from the June 19th, 2023 meeting and John Widerman seconded the motion. The motion passed unanimously by those present. 3. PUBLIC COMMENT There was no public comment. 4. G ENERAL UPDATE ON 2024 FINANCIALS (CHIEF FINANCIAL OFFICER PAUL REDMOND) Chief Financial Officer Paul Redmond delivered his presentation on the financial results year to date. No actions items were taken . 5. USE TAX (CHIEF FINANCIAL OFFICER PAUL REDMOND ) Chief Financial Officer Paul Redmond delivered his presentation on Use Tax. No actions items were taken. 6. VILLAGE (AT AVON) (CHIEF FINANCIAL OFFICER PAUL REDMOND ) Chief Financial Officer Paul Redmond introduced the topic of the Village at Avon . No actions items were taken. 7. AVON DDA (CHIEF FINANCIAL OFFICER PAUL REDMOND ) Chief Financial Officer Paul Redmond delivered his slides on the Avon DDA and expressed the DDA passed last August by the eligible Avon voters and there is an overlay with the Urban Renewal Authority. No actions items were taken. 8. AVON HOUSING AUTHORITY (CHIEF FINANCIAL OFFICER PAUL REDMOND & TOWN MANAGER ERIC HEIL) Chief Financial Officer Paul Redmond explained this separate legal entity was established many years ago in 1989 and hasn’t been very active. No actions items were taken. FINANCE COMMITTEE MEETING MONDAY, MAY 20, 2024 HYBRID MEETING; IN-PERSON AND ON TEAMS Finance Committee Meeting, May 20, 2024 2 | 2 9. GOALS AND ROLES OF THE FINANCE COMMITTEE (TOWN M ANAGER E RIC HEIL) Town Manager Eric Heil expressed this was a general overview and re -introduction of a range of finance topics and staff would like to hear from the committee what we can bring back for more discussion. Otherwise we will focus on the Village at Avon and the State Land Board Annexation. The S tate Land Board Annexation will come with a lot of demand and little taxes, but the tenants will still pay sales taxes when they go shopping in Avon. It will not be a money maker but an increase in demand on services. It will be interesting to look into that with the committee. 10. NEXT COMMITTEE MEETING DATE After deliberations, consensus among Finance Committee Members was to schedule meetings bi- monthly on the 3rd Monday of the month. The next meeting is Monday July 15, 2024 at 5:00 p.m. at the Mount Holy Cross meeting room at Avon Town Hall. 11. ADJOURNMENT Craig Ferraro motioned to adjourn the meeting, the time was 6:32 p.m. Respectfully Submitted by: Ineke de Jong, Chief Administrative Officer. 970.748.4088 predmond@avon.org TO: Finance Committee Members FROM: Paul Redmond, Chief Finance Officer RE: Results Avon Voter Polling on Use Tax DATE: July 9, 2024 SUMMARY: The Town Council was asked to consider referring a revised ballot question about the collection of Use Tax on Construction Materials on projects greater than $50,000 to the November 5, 2024 Coordinated Election. Magellan Strategies conducted a survey about the proposed ballot question and the results are presented in Attachment A with the verbatim survey responses reflected in Attachment B. The Town Council is asked to provide input and feedback about the steps that have been taken to inform the community about this potential ballot proposal to impose a use tax on construction materials. In addition, the Council is asked to provide direction on whether to schedule a ballot proposal ordinance for consideration at the August 13 meeting. BACKGROUND: The Use Tax question presented in November 2023 failed to receive voter support. There was virtually no outreach conducted in 2023, the voter turn-out was low, and the ballot question did not propose a specific use for the Use Tax. At the March Council meeting, the Council directed Staff to retain a voter polling consultant. A voter polling consultant was selected and conducted voter polling in Avon during the end of June. Staff selected Magellan Strategies to perform the voter opinion research. The survey approach was an online bilingual 22-question survey which could be answered by MMS Text to a respondent’s cell phone number or via the survey link available on our avon.org website. The survey was live from June 17th to July 2nd and was completed by a total of 259 registered voters in Avon. ANALYSIS: The survey responses show support for the Use Tax. The Use Tax survey results came back statistically tied on the uniformed ballot, however, after learning more about the details of the ballot question, support increased by 17 points to 57% in support of the Use Tax on Construction Materials. Several of the people surveyed agreed with the critical shortage of affordable housing and believed the use tax will generate the necessary funds for community and workforce housing. There is a consensus that the $50,000 exemption on the total project costs is too low and would negatively impact smaller projects and working-class homeowners. Many suggested a higher threshold to avoid penalizing those undertaking necessary home improvements. Respondents mentioned that additional taxes will increase the financial strain on families and small businesses. Many of the responses showed the Use Tax on Construction Materials is a new tax which will increase the cost of housing and construction materials. It is important we continue to educate the voters as the Use Tax on Construction Materials is not creating a new tax but serves in lieu of the current sales tax. The Town of Avon is losing revenue on the construction of larger homes and hotels built in Avon. Several contractors deliver their materials from outside the Town of Avon and thus allowing another municipality to collect the tax. EDUCATION CAMPAIGN: Town staff has presented the ballot proposal and survey results to other town committees and continues to produce educational materials and opportunities for the community to learn about the tax proposal which would support workforce housing. See list below:  Finance Committee on July 15  Downtown Development Authority on July 22 Page 2 of 2  Mail educational flyer to voter list August 1  Prepare materials for first and second reading of ordinance Town Council consideration at the August meetings RECOMMENDATIONS: It is important Staff continue to educate the voters and provide the information they need to make an informed decision in November. Based on the survey responses it is likely the Avon voters will support a Use Tax on Construction Materials when fully informed about the intent of imposing the use tax. The council may wish to consider adding the ballot question to the 2024 Coordinated Election. Currently town staff propose the following recommendations for town council consideration to continue to build momentum of support for the ballot proposal: 1. Continue to educate the voters about a potential use tax, by means of social media, radio interview, sponsored content articles in the Vail Daily print and digital marketing. Once the proposal is approved in the form of an ordinance and referred to the voters, the town staff would no longer engage in educational activities. 2. Consider increasing the exemption from $50,000 as suggested and supported in the survey comments. COMMITTEE ACTION: The Committee is asked to provide direction on the recommendations outlined above. We plan to share your recommendations with Council at the July 23, 2024 meeting. Thank you, Paul ATTACHMENT A: Ballot Measure Survey PowerPoint ATTACHMENT B: Ballot Measure Survey Verbatim Responses Town of Avon Use Tax Ballot Measure Survey June 17th through July 2nd, 2024 ATTACHMENT A Methodology Magellan Strategies is pleased to present the results of a survey of 259 voters in the Town of Avon, Colorado. The interviews were conducted June 17th through July 2nd, 2024. The overall survey responses have a margin of error of +/- 5.86% at the 95% confidence interval. Population subgroups will have a higher margin of error than the overall sample. The survey results are weighted to be representative the voter turnout demographics of a presidential election cycle in Avon, Colorado. 2Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE ATTACHMENT A Survey Objectives •The goal of this survey was to measure voter support and opposition for a potential Use Tax ballot measure in the Town of Avon. •The survey also tested information questions to determine movement in opinion on the ballot measure. •It also measured opinion on the Town’s approval and fiscal responsibility. 3Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE ATTACHMENT A Town of Avon Voter Registration and Past Turnout Demographics 4Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE ATTACHMENT A 73%23% 4% Total Approve Total Disapprove No Opinion Strongly Approve 29% Somewhat Approve 44% Strongly Disapprove 11% Somewhat Disapprove 12% Do you approve or disapprove of the job the Town of Avon is doing providing services to residents? 5 75% 73% 73% 75% 51% 82% 77% 82% 65% 77% 71% 77% 22% 24% 23% 22% 47% 15% 19% 15% 32% 19% 24% 22% 3% 3% 4% 3% 2% 3% 4% 3% 3% 4% 5% 1% No Degree 4-Year Degree Rent Own Republican Democrat Unaffiliated 65+ 45-64 18-44 Men Women Total Approve Total Disapprove No Opinion Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE ATTACHMENT A 54% 38% 8% Total Agree Total Disagree No Opinion 6 58% 51% 40% 66% 35% 77% 46% 77% 55% 45% 67% 37% 30% 43% 48% 29% 36% 18% 51% 21% 30% 49% 28% 50% 12% 6% 12% 5% 29% 5% 3% 2% 15% 6% 5% 13% No Degree 4-Year Degree Rent Own Republican Democrat Unaffiliated 65+ 45-64 18-44 Men Women Total Agree Total Disagree No Opinion Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE Strongly Agree 12% Somewhat Agree 42% Strongly Disagree 17% Somewhat Disagree 21% Do you agree or disagree with the following statement? The Town of Avon is fiscally responsible and spends taxpayer money wisely. ATTACHMENT A Uninformed Use Tax Ballot Test Before we continue, it is important to understand that the Town of Avon has made no decisions to put any 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… 7Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE ATTACHMENT A Uninformed Use Tax Ballot Test The following is language for a potential ballot measure that would replace the current 4% sales tax on construction materials with a 4% use tax. After reading it, please indicate if you would vote yes and approve it or vote no and reject it. SHALL TOWN OF AVON TAXES BE INCREASED BY TWO MILLION DOLLARS ($2,000,000) ANNUALLY IN 2025, AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER, BY THE IMPOSITION OF A FOUR PERCENT (4%) USE TAX FOR THE PRIVILEGE OF USING OR CONSUMING IN THE TOWN ANY CONSTRUCTION MATERIALS; AND SHALL SUCH USE TAX REVENUES BE APPROPRIATED FOR COMMUNITY HOUSING; AND SHALL CONSTRUCTION PROJECTS EQUAL TO OR LESS THAN $50,000 IN A CALENDAR YEAR BE EXEMPT FROM PAYING THE USE TAX; ALL IN ACCORDANCE WITH, AND FURTHER DEFINED BY, TOWN OF AVON ORDINANCE NO. 24-00; 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. 8Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE ATTACHMENT A 40% 41% 19% Total Yes, Approve Total No, Reject Undecided 9 48% 35% 36% 42% 20% 54% 39% 46% 40% 39% 47% 33% 20% 55% 39% 45% 46% 31% 47% 35% 38% 46% 35% 48% 32% 10% 25% 13% 34% 15% 14% 19% 22% 15% 18% 19% No Degree 4-Year Degree Rent Own Republican Democrat Unaffiliated 65+ 45-64 18-44 Men Women Total Yes, Approve Total No, Reject Undecided Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE Definitely Yes, Approve 24% Probably Yes. Approve 16% Definitely No, Reject 24% Probably No, Reject 17% Uninformed 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 no and reject it? ATTACHMENT A Respondent Information The following questions will share some information on why the Town of Avon is considering a ballot measure to create a 4% use tax. After reading the information, please indicate if you are more likely to vote yes and approve the creation of a 4.0% use tax or if you are more likely to vote no and reject it. Let’s get started: 10Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE ATTACHMENT A 65% 73% 78% 25% 18% 17% 10% 9% 5% Total More Likely Vote Yes, Approve Total More Likely Vote No, Reject Unsure 11 Town of Avon Use Tax Ballot Measure – Information Questions After reading the information, please indicate if you would be more likely to approve the potential ballot measure or if you would be more likely to reject it. As you may know, there is a severe lack of workforce housing in Eagle County. The Avon Town Council is exploring other potential revenue sources to supplement the Town of Avon’s investment in Community Housing. The Town of Avon defines Community Housing as housing for people who live and work in Eagle County at all income levels. If the ballot measure were to pass, the revenues from the use tax would go toward Community Housing. The Town of Avon currently exempts Community Housing Projects from the payment of taxes and fees to reduce the cost of developing Community Housing and would exempt future Community Housing projects from paying the potential use tax. As you may know, there have been several large projects recently built in Avon, including Frontgate, Piedmont Apartments, One Riverfront, and the Marriot Brand Hotel at the Post Blvd/I-70 interchange. Avon expects more large projects as the Village (at Avon) and redevelopment in the Town core occurs. Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE ATTACHMENT A 51% 57% 64% 38% 32% 31% 11% 11% 5% Total More Likely Vote Yes, Approve Total More Likely Vote No, Reject Unsure 12 Town of Avon Use Tax Ballot Measure – Information Questions After reading the information, please indicate if you would be more likely to approve the potential ballot measure or if you would be more likely to reject it. This ballot measure exempts construction projects up to $50,000 in a calendar year so that the use tax does not apply to small home remodel projects. Other towns in Eagle County already have a similar use tax on construction materials. The Town of Avon currently has a 4% sales tax on new construction materials. A 4% use tax would replace the current sales tax and is expected to collect approximately 50% more compared to the existing sales tax on construction materials for large projects. Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE ATTACHMENT A Thank you for reading more information about why the Town of Avon is considering a ballot measure that would replace the Town’s current 4% sales tax on construction materials with a 4% Use Tax. As a reminder the potential ballot language is below, after reading the language again, please indicate if you would vote yes and approve it or if you would vote no and reject it. SHALL TOWN OF AVON TAXES BE INCREASED BY TWO MILLION DOLLARS ($2,000,000) ANNUALLY IN 2025, AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER, BY THE IMPOSITION OF A FOUR PERCENT (4%) USE TAX FOR THE PRIVILEGE OF USING OR CONSUMING IN THE TOWN ANY CONSTRUCTION MATERIALS; AND SHALL SUCH USE TAX REVENUES BE APPROPRIATED FOR COMMUNITY HOUSING; AND SHALL CONSTRUCTION PROJECTS EQUAL TO OR LESS THAN $50,000 IN A CALENDAR YEAR BE EXEMPT FROM PAYING THE USE TAX; ALL IN ACCORDANCE WITH, AND FURTHER DEFINED BY, TOWN OF AVON ORDINANCE NO. 24-00; 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. Informed Use Tax Ballot Test 13Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE ATTACHMENT A 57% 37% 6% Total Yes, Approve Total No, Reject Undecided 1 4 74% 45% 62% 50% 57% 65% 51% 55% 62% 53% 65% 47% 20% 48% 36% 39% 40% 25% 44% 31% 33% 42% 30% 45% 6% 7% 2% 11% 3% 10% 5% 14% 5% 5% 5% 8% No Degree 4-Year Degree Rent Own Republican Democrat Unaffiliated 65+ 45-64 18-44 Men Women Total Yes, Approve Total No, Reject Undecided Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE Definitely Yes, Approve 31% Probably Yes. Approve 26% Definitely No, Reject 21% Probably No, Reject 16% Informed 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 no and reject it? ATTACHMENT A Why 57% would vote yes and approve the ballot measure to create a 4% use tax on construction materials. 15Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE •Need for Affordable Housing: Many respondents emphasized the critical shortage of affordable housing for workers and locals in the Vail Valley. They believe that the use tax will generate necessary funds to address this issue. •Taxing Wealthy Developers: There is strong support for placing the tax burden on wealthy developers and large construction projects rather than local homeowners and small projects. Respondents feel that developers who profit from high-end projects should contribute to the community’s housing needs. •Fairness and Equity: The tax is seen as a fair way to generate revenue without disproportionately impacting local residents. It aligns with similar taxes in other municipalities, which respondents believe will help Avon compete and manage development better. •Support for Community and Workforce Housing: Many responses highlight the importance of community and workforce housing for sustaining the local economy and ensuring that people working in Avon can live there. The use tax is viewed as a strategic step towards solving the housing crisis and supporting the local workforce. ATTACHMENT A Why 37% would vote no and reject the ballot measure to create a 4% use tax on construction materials. 16Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE •Financial Burden on Residents: Many respondents argue that additional taxes will increase the financial strain on families and small businesses. They mention already high property taxes, insurance costs, and the overall cost of living. •Inefficiency and Mismanagement of Funds: There is a strong distrust in the town government’s ability to manage the funds effectively. Respondents believe that the current funds are not being used wisely. •Increased Cost of Housing and Construction: Many respondents are concerned that the new tax will further increase the cost of housing and construction materials, making home improvements and new builds even more expensive. •Threshold for Tax Application: There is a consensus that the $50,000 threshold for the tax is too low and would negatively impact smaller projects and working-class homeowners. Many suggest a higher threshold to avoid penalizing those undertaking necessary home improvements. ATTACHMENT A Total Yes Total No No Opinion 57% 37% 6% Total Yes Total No Undecided 40%41% 19% +17% -4% Uninformed Informed -13% 17 Town of Avon Use Tax Ballot Measure Comparison Informed Vs. Uniformed Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE ATTACHMENT A 18 Town of Avon Use Tax Ballot Measure Opinion Change from Uninformed to Informed by Voter Subgroup All Wom Men 18-44 45-64 65+Rep Unaf Dem Own Rent 4-Year Degree No Degree Difference +17 +14 +18 +14 +22 +9 +37 +12 +11 +8 +26 +10 +26 Informed 57%47%65%53%62%55%57%51%65%50%62%45%74% Uninformed 40%33%47%39%40%46%20%39%54%42%36%35%48% Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE ATTACHMENT A The survey shows a path to success for the Use Tax in the Town of Avon. However, it is important to point out some key findings: 1.The Use Tax ballot measure starts statistically tied (within the 5.86% margin of error). Before respondents are given any information about what the Use Tax is or what the money would go toward, the measure is statistically tied. 2.However, once respondents are informed on what the funding would go towards, Community Housing, and defining what the Town of Avon means by Community Housing, 78% of respondents would be more likely to pass the ballot measure. 3.The survey shows that most voters do not fully understand what the use tax would do and believe that the $50,000 exemption is not quite high enough. If a campaign educates voters with the information from the survey, and the Town was to up the amount for the exemption, this has a stronger path of passing in November. 4.The survey shows that the Use Tax ballot measure has strong support once voters have been informed about what the Use Tax is and what the money would go towards, moving 17 points from 40% support to 57% support after being informed. Most importantly, for the Use Tax to pass, voters will have to be educated on what the Use Tax would do and exactly how the funds would be spent, defining Community Housing clearly. Use Tax Recommendations 19Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE ATTACHMENT A 46% 54% Female Male Identify Differently 18-34 35-44 45-54 55-64 65+ 29% 20%17%19% 15% Gender Party Affiliation Age Range Survey Demographics 49% 18% 32% 1% Unaffiliated Republican Democrat Other Party 48% 49% 2%1% Rent Own Other Prefer Not to Say Rent v. Own 20Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE ATTACHMENT A White Hispanic/ Latino Black or African American Asian Other/Prefer Not to Say 69% 23%3%5% Race-Ethnicity Survey Demographics 69% 14% 7%10% Text Message Email from Town Social Media Town Website Other How did you come to participate in the survey?61% 39% 4-Year College Degree No College Degree 4-Year College Degree 21Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE ATTACHMENT A Where do you live? Survey Demographics 22 Wildridge/ Wildwood/ Mountain Star West Beaver Creek Boulevard Eagle Bend Drive/ Hurd Lane Town Core Nottingham Road/ Metcalf Road Buffalo Ridge Piedmont Other 25%23% 18% 10%9%6%1% 8% Town of Avon Use Tax Ballot Measure Survey, June/July 2024, 259n, +/- 5.86% MoE ATTACHMENT A Magellan Strategies 4800 Aspen Creek Drive Broomfield, CO 80023 MagellanStrategies.com (303) 861-8585 David Flaherty | Ryan Winger Courtney Sievers ATTACHMENT A Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote yes and approve the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 1 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response O 18-34 Dem Eagle Bend Drive/Hurd Lane Definitely Yes Definitely Yes Housing F 45-54 Dem Eagle Bend Drive/Hurd Lane Definitely Yes Definitely Yes We need more affordable housing for the people who live and work here 12 months of the year. We need to take care of our own and stop building high end places. M 55-64 Dem Eagle Bend Drive/Hurd Lane Definitely Yes Definitely Yes I believe that we need to do more to provide affordable housing for workers here. The housing industry has focused only on high-end, high-profit projects like Frontgate and the new Weston units. Passing this bill would redirect a small potion of those profits towards affordable housing. M 55-64 Dem Eagle Bend Drive/Hurd Lane Definitely Yes Definitely Yes The rite thing to do F 65+Dem Eagle Bend Drive/Hurd Lane Definitely Yes Definitely Yes Raise funds for affordable housing M 18-34 Unaf Nottingham Road/ Metcalf Road Definitely Yes Definitely Yes Housing for locals is imperative and we need more income sources for it. F 35-44 Unaf Nottingham Road/ Metcalf Road Definitely Yes Definitely Yes To use the funds for community housing F 45-54 Dem Nottingham Road/ Metcalf Road Definitely Yes Definitely Yes Makes sense to do it how the other jurisdictions do it ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote yes and approve the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 2 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response F 18-34 Oth Other Definitely Yes Definitely Yes There is no housing for working people here especially families. Or is disgraceful and embarrassing. Apartment complexes such as Piedmont should be exempt from the tax as to supplies housing to people in the workforce. Otherwise they just price gauge the tenants horribly as they are doing now. These taxes and deals are only good if the companies building workforce housing are held accountable for actually charging rents that are within the bounds of what the workforce who lives and works at in person jobs here,locally. Not what people who work remotely from NY or California can afford. Additionally the forms who benefit from this tax to build “workforce housing” need to be held accountable for providing housing that is in good and suitable living conditions. Something needs to be done about this very quickly. The most competent employees, people likely to live here long term and raise a family are leaving in exponential proportions. In New York and California, places with high demands on resort clientele, middle class people can afford to live in nice housing that is close to where they live and work. The state of affairs here is an embarrassment and is going to affect the town, the reputation of the resorts, the reputation of the hospital and more if things do not change and if those who receive the benefits associate with this tax are not held accountable for what they do with the benefits. M 35-44 Unaf Town Core Definitely Yes Definitely Yes This just makes sense to save our town employees time and make the town more money. F 18-34 Dem Town Core Definitely Yes Definitely Yes I think wealthy people- in this case developers- should pay more taxes. F 35-44 Dem Town Core Definitely Yes Definitely Yes We need more affordable housing in Avon and up-valley. This would also help contractors understand Avon’s tax collection process as it would be the same as every other municipality in the mountain west. F 65+Dem Town Core Definitely Yes Definitely Yes Replaces sales tax. The income would go towards housing and You would collect more than the sales tax M 55-64 Rep Town Core Definitely Yes Definitely Yes I want to continue to afford living in Avon ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote yes and approve the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 3 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response F 35-44 Unaf West Beaver Creek Blvd.Definitely Yes Definitely Yes Porque son una residente que vive en Los Aspens por 16 años y nunca había. Escuchado esta propuesta para los residentes locales de Avon. Por lo regular siempre se piensa en segundos compradores de casas. Esta propuesta está buenísima! Gracias por pensar en los locales Town de Avon! M 45-54 Dem West Beaver Creek Blvd.Definitely Yes Definitely Yes Be consistent with the other municipalities in the valley M 45-54 Dem West Beaver Creek Blvd.Definitely Yes Definitely Yes Community housing is necessary and sorely needed. The use tax would be a better way to realize those funds M 45-54 Dem West Beaver Creek Blvd.Definitely Yes Definitely Yes We need more housing for workers. M 45-54 Oth West Beaver Creek Blvd.Definitely Yes Definitely Yes Need to revenue M 45-54 Unaf Wildridge/ Wildwood/ Mountain Star Definitely Yes Definitely Yes Development has been severely mismanaged in this valley for the past forty years. Measures need to be taken to bring balance back to development here in our community. F 55-64 Unaf Wildridge/ Wildwood/ Mountain Star Definitely Yes Definitely Yes The measure puts Avon on an equal tax footing with other local jurisdictions and I support taxing new non-affordable projects to fund workforce housing because that development is the root cause of our housing problem. F 55-64 Unaf Wildridge/ Wildwood/ Mountain Star Definitely Yes Definitely Yes To take the tax burden off of local homeowners and small businesses in order to raise the income necessary for strategic improvements F 65+Unaf Wildridge/ Wildwood/ Mountain Star Definitely Yes Definitely Yes Approve of taxing new construction and not taxing affordable housing new builds. Also approve not taxing local home owners for improving their homes if under the cap set. F 65+Unaf Wildridge/ Wildwood/ Mountain Star Definitely Yes Definitely Yes Funds are needed for community housing and current revenue streams are full committed. F 65+Unaf Wildridge/ Wildwood/ Mountain Star Definitely Yes Definitely Yes I'm all for ways to increase funding for workforce housing ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote yes and approve the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 4 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response M 65+Unaf Wildridge/ Wildwood/ Mountain Star Definitely Yes Definitely Yes Seems to be more reasonable. M 35-44 Dem Wildridge/ Wildwood/ Mountain Star Definitely Yes Definitely Yes For all the reasons you list F 55-64 Dem Wildridge/ Wildwood/ Mountain Star Definitely Yes Definitely Yes Because this is lost revenue for Avon while other regional municipalities are collecting this kind of revenue. The intent is pointed towards helping with community housing and does not really negatively impact local residents to a large degree. This is a step in the right direction for our community. F 55-64 Dem Wildridge/ Wildwood/ Mountain Star Definitely Yes Definitely Yes High cost of the homes that are being built and sold M 55-64 Dem Wildridge/ Wildwood/ Mountain Star Definitely Yes Definitely Yes Need Affordable housing F 65+Dem Wildridge/ Wildwood/ Mountain Star Definitely Yes Definitely Yes Affordable housing is hard to find in the Vail Valley. Everyone working and living here should have a comfortable, affordable home. F 65+Dem Wildridge/ Wildwood/ Mountain Star Definitely Yes Definitely Yes The tax will apply to a group of people who have the means to pay it and gifts the tax from regular homeowners. F 65+Dem Wildridge/ Wildwood/ Mountain Star Definitely Yes Definitely Yes There is a severe lack of workforce affordable housing in Avon. F 65+Dem Wildridge/ Wildwood/ Mountain Star Definitely Yes Definitely Yes We need more affordable housing in the Vail Valley. M 65+Dem Wildridge/ Wildwood/ Mountain Star Definitely Yes Definitely Yes The tax will be builr into toral cost of construction ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote yes and approve the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 5 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response M 65+Dem Wildridge/ Wildwood/ Mountain Star Definitely Yes Definitely Yes To create a funding stream for new community housing projects M 55-64 Rep Wildridge/ Wildwood/ Mountain Star Definitely Yes Definitely Yes It's seems like a better use of the 4% tax, and wouldn't impact the smaller projects. F 55-64 Dem Eagle Bend Drive/Hurd Lane Probably Yes Definitely Yes We need housing F 35-44 Unaf Nottingham Road/ Metcalf Road Probably Yes Definitely Yes The town council should do everything it can to protect locals from greedy developers. One way they can do that is make them pay a fair price for the privilege of building here. F 45-54 Rep Nottingham Road/ Metcalf Road Probably Yes Definitely Yes We need affordable housing in Avon and it makes sense to tax the wealthy developers that are building unattainable housing for the blue collar workforce here. M 45-54 Rep Nottingham Road/ Metcalf Road Probably Yes Definitely Yes Employee Housing!!! M 35-44 Unaf Town Core Probably Yes Definitely Yes Tax big projects F 35-44 Dem Town Core Probably Yes Definitely Yes It just makes sense M 45-54 Rep Town Core Probably Yes Definitely Yes Community housing is imperative to support the increase in population and tourists drive by commercial development. It makes sense these developers pay a small tax ahead of their well earned profit. I might suggest you add a clause to protect emergency repairs. If a tree falls through my home and repairs are $150k, or loss by fire, we should not apply this tax to that and compound the hardship. M 65+Unaf West Beaver Creek Blvd.Probably Yes Definitely Yes Needed M 18-34 Dem West Beaver Creek Blvd.Probably Yes Definitely Yes Community housing is needed badly, and I personally face the "barrier to entry" as a homeowner in the valley because of my income level. F 45-54 Dem West Beaver Creek Blvd.Probably Yes Definitely Yes Housing is in crisis. Staffing is in crisis. We will not sustain ourselves as a premier destination to live, or vacation u less these 2 issues are taken seriously and addressed. ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote yes and approve the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 6 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response F 65+Unaf Wildridge/ Wildwood/ Mountain Star Probably Yes Definitely Yes More funds needed for community housing F 35-44 Dem Wildridge/ Wildwood/ Mountain Star Probably Yes Definitely Yes Increase funding for community housing with the greatest burden on larger commercial projects M 45-54 Dem Wildridge/ Wildwood/ Mountain Star Probably Yes Definitely Yes We need a comprehensive and multi pronged approach to the development of Avon. The past projects, Seasons building/gondola, roundabouts, parking, Honedepot and Walmart l, etc have been done without the long term interests of the community, resulting in a piecemeal, fractured development of our community, with no long term plan for employees, business growth and expansion and use of outdoor activities. We need a highly progressive tax code, aggressive zoning and a long term detailed town plan to ensure a true resort community (ie telluride, crested butte, etc) rather than a glorified truck stop on I 70 as in the past. M 45-54 Unaf West Beaver Creek Blvd.Probably No Definitely Yes It’s inevitable that these large projects will continue to happen, Town should consider the demand for housing so people can claim full time residence in Avon. F 55-64 Dem West Beaver Creek Blvd.Probably No Definitely Yes From all that was said before M 18-34 Unaf Other Undecided Definitely Yes More housing for people who actually live and work in avon year round F 35-44 Oth Wildridge/ Wildwood/ Mountain Star Undecided Definitely Yes Locals need help M 55-64 Dem Eagle Bend Drive/Hurd Lane Definitely Yes Probably Yes Because I would vote on this ! M 55-64 Unaf Wildridge/ Wildwood/ Mountain Star Definitely Yes Probably Yes I just went through a dozen pages giving answers already... ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote yes and approve the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 7 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response M 65+Dem Wildridge/ Wildwood/ Mountain Star Definitely Yes Probably Yes We need affordable employee housing M 35-44 Rep Buffalo Ridge Probably Yes Probably Yes I think it’s a necessary measure F 45-54 Unaf Eagle Bend Drive/Hurd Lane Probably Yes Probably Yes Collecting more money to build affordable workforce housing is a smart move M 55-64 Unaf Eagle Bend Drive/Hurd Lane Probably Yes Probably Yes Provides extra money to services M 65+Unaf Eagle Bend Drive/Hurd Lane Probably Yes Probably Yes Housing F 55-64 Dem Eagle Bend Drive/Hurd Lane Probably Yes Probably Yes It replaces a sales tax F 55-64 Dem Eagle Bend Drive/Hurd Lane Probably Yes Probably Yes It supports employee housing and replaces an existing sales tax. M 45-54 Unaf Nottingham Road/ Metcalf Road Probably Yes Probably Yes The town needs to find community housing M 65+Unaf Nottingham Road/ Metcalf Road Probably Yes Probably Yes I’d like to see a tax that is more peoject value based. Higher cost, higher tax. M 65+Unaf Nottingham Road/ Metcalf Road Probably Yes Probably Yes Jave more, pay more M 35-44 Dem Nottingham Road/ Metcalf Road Probably Yes Probably Yes I would like big projects to pay for other community housing M 45-54 Dem Nottingham Road/ Metcalf Road Probably Yes Probably Yes I am upset with the Town of Avon because they continue to misuse TIF’s which robs local agencies such as the fire dept. I am not located in a TIF and tired of paying for fire service to places like the Westin that could clearly chip in. Please think about your current policies and how a TIF should be used. M 18-34 Unaf Piedmont Probably Yes Probably Yes Better than a sales tax to raise money F 45-54 Unaf Town Core Probably Yes Probably Yes Need for affordable housing M 18-34 Unaf West Beaver Creek Blvd.Probably Yes Probably Yes We need more affordable housing in the valley for locals ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote yes and approve the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 8 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response F 35-44 Unaf West Beaver Creek Blvd.Probably Yes Probably Yes New construction project developers need to pay their tax to the community to ensure we can support our community that will need to support the new influx of people inhabiting the new builds M 65+Unaf West Beaver Creek Blvd.Probably Yes Probably Yes We absolutely need employee housing M 35-44 Dem West Beaver Creek Blvd.Probably Yes Probably Yes Stop building hotels we don’t need and build housing that is actually affordable. Spending 100k to put a deed restriction on a home that helps 2 people is not an efficient use of funds. Think big and stop being stupid. Where are the workers at these hotels you keep approving supposed to live when we already have a severe housing crisis and people that actually live here keep getting priced out of Avon? M 55-64 Rep West Beaver Creek Blvd.Probably Yes Probably Yes I think it the $50,000 limit should be raised to $100000. $50,000 in today's economy isn't very much. Raise it and I would vote yes. F 35-44 Unaf Wildridge/ Wildwood/ Mountain Star Probably Yes Probably Yes Reasons listed in survey M 55-64 Unaf Wildridge/ Wildwood/ Mountain Star Probably Yes Probably Yes How will small projects for residents avoid the tax? M 55-64 Unaf Wildridge/ Wildwood/ Mountain Star Probably Yes Probably Yes I have heard there is also an efficiency with this system, how is that found? How would small home projects be exempted, refund, credit? M 55-64 Unaf Wildridge/ Wildwood/ Mountain Star Probably Yes Probably Yes I just answered 13 questions telling you why... M 55-64 Unaf Wildridge/ Wildwood/ Mountain Star Probably Yes Probably Yes No sales tax F 65+Unaf Wildridge/ Wildwood/ Mountain Star Probably Yes Probably Yes Avon needs more locals housing projects. ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote yes and approve the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 9 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response M 65+Unaf Wildridge/ Wildwood/ Mountain Star Probably Yes Probably Yes Don’t understand how it would increase revenue by 50% but that is compelling. You need to quit raising property taxes without adjusting the mill levy - inflation is 3-6% and my property taxes went up 50% - that is not right!!! F 35-44 Dem Wildridge/ Wildwood/ Mountain Star Probably Yes Probably Yes Because we need to build sustainably F 35-44 Dem Wildridge/ Wildwood/ Mountain Star Probably Yes Probably Yes Increased financial support for community housing projects. F 35-44 Dem Wildridge/ Wildwood/ Mountain Star Probably Yes Probably Yes Seems like a fair tax M 35-44 Dem Wildridge/ Wildwood/ Mountain Star Probably Yes Probably Yes Agree with taxing the rich to support the poor F 55-64 Dem Wildridge/ Wildwood/ Mountain Star Probably Yes Probably Yes Because building and funding workforce housing is important for Avon and for the Eagle River Valley. M 65+Dem Wildridge/ Wildwood/ Mountain Star Probably Yes Probably Yes To improve things M 65+Dem Wildridge/ Wildwood/ Mountain Star Probably Yes Probably Yes We have a real need for more housing options in Avon M 65+Rep Wildridge/ Wildwood/ Mountain Star Probably Yes Probably Yes Materials are very expensive M 65+Rep Wildridge/ Wildwood/ Mountain Star Probably Yes Probably Yes Not sure how this would be enforced ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote yes and approve the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 10 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response F 45-54 Oth Wildridge/ Wildwood/ Mountain Star Probably Yes Probably Yes Any new development or single family house build should be taxed as most likely the sale price of this would be to an elite class who may or may not work FT/YR employed in Eagle county F 55-64 Oth Wildridge/ Wildwood/ Mountain Star Probably Yes Probably Yes I think there is a big difference when one home at a time is being built for individual compared to a large hotel or condo complex this needs to be taken into consideration and an appropriate tax Different tax percentages for different kinds of buildings! Why should a single-family homebuilder be paying the same amount as a large commercial builder Who profit more from the condo, townhomes or hotel or any other commercial building. It has always been a privilege to build in Avon Colorado a the small homebuilder is always hit financially hard! M 35-44 Dem Other Definitely No Probably Yes Only if it’s on construction projects over $50,000.00 otherwise 100% no! F 55-64 Dem Eagle Bend Drive/Hurd Lane Probably No Probably Yes I would vote yes to support community housing but feel that the town should be focused on supporting the business community as well. The town has created a huge parking issue, which is not supportive of the business community. A parking issue did not exist and now it does. The amount of money the town is spending on parking the hiring of additional staff to monitor parking, the parking system, etc . could have been put towards community housing. Additionally, the town should support community housing efforts, but not pay for housing. M 35-44 Unaf Other Probably No Probably Yes Because this wouldn't affect any remodels I do and would help the town of Avon overall and maybe provide more housing. F 55-64 Unaf Other Probably No Probably Yes Smart way to raise revenue specifically to help with local housing crisis M 65+Unaf West Beaver Creek Blvd.Probably No Probably Yes Avon needs $ more than it needs development M 45-54 Unaf Wildridge/ Wildwood/ Mountain Star Probably No Probably Yes Other communities use this method and there is already a sales tax. It might be good to explain why this change increases the tax revenue by $2M F 55-64 Unaf Wildridge/ Wildwood/ Mountain Star Probably No Probably Yes In order to create affordable housing, affordable materials should be available. ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote yes and approve the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 11 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response M 45-54 Dem Wildridge/ Wildwood/ Mountain Star Probably No Probably Yes The valley is getting over-developed so anything that increases the cost of large projects, I’m all for. Avon needs to do better on the infrastructure side of things if we are going to be increasing the number of dwellings (roads, traffic mitigation, better internet). We can’t bring more people to the valley without improving infrastructure. F 55-64 Dem Buffalo Ridge Undecided Probably Yes If I vote to approve the measure, it would be to help bring more community housing to Avon M 45-54 Rep Buffalo Ridge Undecided Probably Yes Because we need more affordable housing for workers. F 55-64 Rep Buffalo Ridge Undecided Probably Yes I think it is for a very much needed issue. We need to set the example countrywide for finding a way to solve our affordable housing crises. However, I think the remodel amount should be increased to $100,000 since $50k doesn't go as far as it used to. F 45-54 Unaf Nottingham Road/ Metcalf Road Undecided Probably Yes Housing M 18-34 Dem West Beaver Creek Blvd.Undecided Probably Yes We need more investment in local work force housing. But it should focus on affordability for low and middle income people, there should be an income cap on eligibility for workforce housing. 120% AMI or lower. M 65+Rep West Beaver Creek Blvd.Undecided Probably Yes Employers should provide housing. I have 11 Condos for housing!! M 45-54 Unaf Wildridge/ Wildwood/ Mountain Star Undecided Probably Yes For more workforce housing M 55-64 Unaf Wildridge/ Wildwood/ Mountain Star Undecided Probably Yes Sounds like it’ll help the housing inequity in area. F 55-64 Dem Wildridge/ Wildwood/ Mountain Star Undecided Probably Yes Need to think about it more F 55-64 Dem Wildridge/ Wildwood/ Mountain Star Undecided Probably Yes Workforce/community housing is critical to our valley. ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote yes and approve the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 12 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response F 65+Dem Wildridge/ Wildwood/ Mountain Star Undecided Probably Yes Good use of tax $$ M 65+Dem Wildridge/ Wildwood/ Mountain Star Undecided Probably Yes To provide some affordable housing F 35-44 Rep Wildridge/ Wildwood/ Mountain Star Undecided Probably Yes Seems to make sense ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote no and reject the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 1 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response F 35-44 Dem Eagle Bend Drive/Hurd Lane Definitely No Definitely No The 4% Use Tax on construction materials seems to be designed for the wealthy homes not and not for the low and middle class Residents of Eagle county. M 35-44 Dem Eagle Bend Drive/Hurd Lane Definitely No Definitely No I reject because our tax dollars are being used to create homes for the wealthy and not for the low and middle class people like myself. We are forced to leave Colorado, so we can buy our dream home and yet not in the state we want to live in. M 35-44 Dem Eagle Bend Drive/Hurd Lane Definitely No Definitely No I would vote no because taxes are being spent inappropriately and for only building housing for the wealthy, I as a local of 20 years can’t even afford a home here in the place that I love. Avon is Built my locals and operated by locals, and yet our taxes are to be spent inappropriately so that the wealthy can live comfortably. F 55-64 Unaf Nottingham Road/ Metcalf Road Definitely No Definitely No Avon created the workforce housing problem when it expanded STR to include areas (like Nottingham Road) that were historically LTR. Get the STR people to pay more taxes to offset the LTR that they eliminated which dramatically contributes to the housing problem. M 55-64 Unaf Nottingham Road/ Metcalf Road Definitely No Definitely No Enough already F 35-44 Rep Nottingham Road/ Metcalf Road Definitely No Definitely No We have enough taxes in Avon. Use the 2% transfer tax to accomplish what you want to accomplish. F 45-54 Rep Nottingham Road/ Metcalf Road Definitely No Definitely No I vote no M 45-54 Rep Nottingham Road/ Metcalf Road Definitely No Definitely No I don’t agree on raising taxes on the people. I also don’t agree with you assholes building more housing for the workers. The workers need to come and then leave our county. You are bringing in people to build. Then when it’s all built there will not be enough work for the people who were already here. Stop what you’re doing it is insane. I say fuck all of you assholes who want to raise taxes and bring in more people. You are all sick and most likely democrats. M 65+Rep Nottingham Road/ Metcalf Road Definitely No Definitely No Sounds like another freebeev for illegals ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote no and reject the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 2 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response F 45-54 Unaf Other Definitely No Definitely No The Town of Avon is NOT fiscally responsible. I would like to see everyone currently in office be voted out and a new fiscally responsible town government. The Mayor and Town Council are a disgrace to the point that I wish they could be removed immediately. NO MORE TAXES, M 55-64 Unaf Other Definitely No Definitely No You have people digging basements under house trailers. Let’s re-examine the Air BNB industry as those beds are being wasted by greedy investors F 65+Unaf Other Definitely No Definitely No I do not think any taxes levied on individuals are warranted. The town of Avon cannot even plough their roads or pave them. All they know how to do is raise taxes and waste people's money that worked hard for it. M 65+Unaf Other Definitely No Definitely No Avon does not need more revenue - Avon needs to re-prioritize budget items to reduce/eliminate low priority expenditures and move $$$ to the housing needs F 35-44 Dem Other Definitely No Definitely No No raising of taxes. No new taxes F 45-54 Rep Other Definitely No Definitely No Because the chief of police of Avon, Greg Daly, Billy Club, my ass for going to the Salvation Army asking for free food phone bill help Showers etc. came out of jurisdiction to Eagle Colorado 20 miles away from Avon just to Billy Club my ass and throw me in jail for asking for help. He claims that it’s Avon staff employees and I’m not allowed to talk to them. Eagle County Sheriff and Sheriff was talking to Greg Daly when I got out of jail, wanting to know why he’s being such a fucking asshole, he’s in law and district court 20 cv 1255 with the Avon because you suck He also searched my house for red flag claiming that I destroyed your town at Avon municipal building and yet you have no physical evidence to prove this in the last 2 1/2 years and your lies and give me back my guns, please F 45-54 Rep Other Definitely No Definitely No Taxes are already Too high! F 45-54 Oth Other Definitely No Definitely No Because the costs and benefits is no for residents or actually owners of D restricted property F 45-54 Oth Other Definitely No Definitely No Stop letting people buy property to rent out short term. It’s obnoxious living next to air bnbs. Tax those people if you want to keep taxing everything. O 18-34 Unaf Piedmont Definitely No Definitely No It’s already expensive to live here. F 35-44 Unaf Piedmont Definitely No Definitely No The tax is not applied equally. ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote no and reject the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 3 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response M 18-34 Unaf Town Core Definitely No Definitely No Times are good right now. You don't want unnecessary taxes to inhibit future growth. At least make projects under $5mm or focus on new construction only. M 45-54 Unaf Town Core Definitely No Definitely No Fiscally irresponsible. M 45-54 Unaf Town Core Definitely No Definitely No I don’t believe the Town has taken the following into consideration. Over development, limited infrastructure, vehicle mobility and lack of water resources. M 45-54 Unaf Town Core Definitely No Definitely No The town has proved all it cares about his luxury projects. It doesn’t care about workforce housing or else it would’ve built some already. Piedmont disaster the Marriott disaster front gate all that stuff has nothing to do with our local community and local workforce. M 45-54 Unaf Town Core Definitely No Definitely No You get enough money stops wasting it M 55-64 Unaf Town Core Definitely No Definitely No The town has a huge tax base already and provides nothing more than basic services. You don't need more money M 65+Unaf Town Core Definitely No Definitely No Avon has many sources for collecting taxes and needs to spend that thoughtful ly. Make do with what you have, just like the rest of us. We taxpayers are taken for granted and we are not your ATM. O 35-44 Dem Town Core Definitely No Definitely No If you are collecting more in revenue, isn’t that essentially a new tax? M 45-54 Dem Town Core Definitely No Definitely No We need new affordable housing options M 55-64 Dem Town Core Definitely No Definitely No Not efficient M 35-44 Rep Town Core Definitely No Definitely No Avon resident’s property taxes 30% last year. The huge companies that build all the commercial properties should pay the tax. The tax raises are making at difficult for locals to afford to live here. Large corporations that need employees housing shouldn’t have sold all there’s to make more money. M 45-54 Rep Town Core Definitely No Definitely No My taxes went up significantly this year. M 55-64 Rep Town Core Definitely No Definitely No It's a balancing act but taxes have just become too high across the board and need to be trimmed so groceries can be afforded. F 65+Rep Town Core Definitely No Definitely No Call it what you want, but it is just another tax. O 45-54 Unaf West Beaver Creek Blvd.Definitely No Definitely No Home remodels can easily exceed $50,000 in a year. Also, there is no clear definition of materials and/or usage. How is this defined? ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote no and reject the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 4 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response F 55-64 Unaf West Beaver Creek Blvd.Definitely No Definitely No Because I don’t believe it will be spent on employee housing F 55-64 Unaf West Beaver Creek Blvd.Definitely No Definitely No Why should we pay more for developments we don’t use . Just another tax and spend scheme M 55-64 Unaf West Beaver Creek Blvd.Definitely No Definitely No It will add to already high cost of housing as end buyers ultimately pay the tax, there are no specific projects identified for the slush fund that would be created M 55-64 Unaf West Beaver Creek Blvd.Definitely No Definitely No Until the Town lifts STR limits on identified condo/townhomes we will vote no on all tax increases in the future. What is good for some should be good for all. Treat all owner equally and equitably. F 65+Unaf West Beaver Creek Blvd.Definitely No Definitely No Avon is being overbuilt. M 35-44 Rep West Beaver Creek Blvd.Definitely No Definitely No Just tax homeowners that eagle county is not their primary residence. Aka non locals. M 45-54 Rep West Beaver Creek Blvd.Definitely No Definitely No Because you have to many illegals running around, to many drugs gangs in town you’ve had 7 hash fires in 9years making up kitchen crap to sell to tourists your town is so liberal it makes no sense you had my guns stolen from avon police with no witness lists no evidence and they failed to fix my rear door. The crime rate is up cars stolen my condo had theft since the illegal police raid they refuse to take the police reports the hoa drug cartel neighbor somehow canceled my home insurance plan while in jail your cops harassed me for 2 years and no help M 45-54 Rep West Beaver Creek Blvd.Definitely No Definitely No Just another fee driving up costs of real estate M 35-44 Oth West Beaver Creek Blvd.Definitely No Definitely No Dont want to pay 4% more on my home depot trip. Why don't we tax 4% at the building department for any project over $1,000,000 not directly linked to affordable/employee housing? Why should I have to pay 4% more to remodel my bathroom just because we were lucky enough to close on a condo that has never been updated and has been used as a rental for the past 40 years? F 45-54 Oth West Beaver Creek Blvd.Definitely No Definitely No Manage the money better ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote no and reject the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 5 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response M 35-44 Unaf Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No If you keep taxing construction/building you will just keep driving up the cost for construction/building in the town M 35-44 Unaf Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No It discourages development and penalizes residents when investing in their property M 45-54 Unaf Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No The increased amount of taxes paid at the pump, at the grocery store and other retailers is impacting our economy, adding more taxes to alleviate others is not the solution, help the existing population out the hole first F 55-64 Unaf Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No $50,000 in a year is not enough. Large construction projects over 1.5 million let’s get real. There are some small builders, From the valley, who should not have to pay a gigantic tax like these MEGA corporations. Who can obviously pay these amounts maybe a tiered system would work better for this in Avon Colorado. Moore thought needs to go into this ballot measure. F 55-64 Unaf Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No Town does not manage money well. M 55-64 Unaf Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No First of all the survey was extremely biased trying to convince us to pass a new tax. I do not think city does a great job allocating funds as it is and A New tax is just going to drive up cost for us. It’s us as taxpayers who ultimately bear the brunt of all these new taxes. They’re just passed on. M 55-64 Unaf Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No How can you drop 4% sales tax and instate a 4% “use tax” and get 50% more revenue? M 55-64 Unaf Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No Nowhere does it state what the impact is of the reduced sales tax revenue. Why don’t you reduce local real estate tax amounts? ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote no and reject the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 6 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response M 55-64 Unaf Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No The only housing crisis we have is too much development and businesses not paying their workers a living wage. Don't stick the taxpayer with their problem and turn this place into a ghetto with government funded public housing like Cabrini green in Chicago. Let the free market operate freely. The wealthy business owners are trying to stick the taxpayer with their responsibilities. F 65+Unaf Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No Construction materials are already extremely expensive!!!! The cost of renovation in Avon is well above average! Adding 4 percent additional cost makes the already cost of construction or renovation out of reach! M 65+Unaf Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No Already too many taxes! M 65+Unaf Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No Avon already has so much tax money that they piss it away on unnecessary projects. Rein in your spending and use the taxes you already get more wisely. Not to mention the recent enormous property tax increase that none of the town council was interested in discussing. So-not ‘no’ but ‘he’ll no’. F 35-44 Dem Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No $50,000 is WAY too low. With prices now, that might get you a master bath remodel. I am a working class person in Eagle county and was lucky enough to buy a fixer upper at a decent price a number of years ago. However, there are still a lot of home improvement projects that we need to do, such as new windows and a new deck, which will easily be more than 50,000. This tax needs to be increased so that it doesn’t punish working class people who are trying to do improvement projects on their home. I agree that construction projects like the Peidmont, Frontgate, etc should be taxed to provide affordable housing in Avon, but 50,000 is too low. Everything is more expensive now. Our mortgage has increased $500/ month because of property taxes and insurance. Our money does not get us as much as it used to. Placing another 4% tax on top of necessary house upgrades does not help us. Increase the amount and I would vote yes to this bill in a heart beat, but it needs to be a lot more than 50,000 so that it doesn’t hurt the working class people living in Avon just trying get by. ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote no and reject the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 7 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response F 35-44 Dem Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No I don’t believe that the town of Avon will use the funding appropriately. I don’t believe that they have spent appropriately in the past on many projects. I have zero confidence that the town of Avon has the ability to solve housing issues for middle class and low income residents who reside in Avon. M 35-44 Dem Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No Increase the exempt amount from $50k to 150k as a local worker who could barely afford a house, the house we bought needs a lot of work. 50k is too low, most projects (kitchen, roof replacement, bathroom, deck replacement) are well over $50k. Or just collect the tax on new builds F 65+Dem Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No I don’t believe that it is government’s responsibility to provide employee housing. Employers need to step up and not rely on others to pay for housing their employees. F 65+Dem Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No Most home projects are significantly more than $50,000 in our valley so what affects large scale projects affects us individual homeowners as well. Please your verbiage: ….the privilege to … Seriously? M 65+Dem Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No Construction costs are already too high M 18-34 Rep Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No No. The municipalities are already a HUGE part of why we don’t build anything affordable anymore already. Avon is lucky to have one of the FAR better inspection teams in the county, but the permitting process all around here has reached a point where only the rich can subject themselves to what is done to them in order to build. People love playing these games about housing, but we’ve voted for these constant increases making it nearly impossible to build anything affordable. Look also at any “affordable housing” that the municipalities are involved in… they are a disaster. I’ve built them, from Breck to Snowmass to one for the school district right now in Carbondale. the towns being involved MURDER the ability to build a logical, well thought out project. The only way towns around here “help” create affordable housing is to GET OUT OF THE WAY. ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote no and reject the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 8 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response F 45-54 Rep Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No Taxes already too high. Get rid of 2 percent transfer tax! F 65+Rep Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No I don’t think the government should be involved in community housing projects. I don’t support any tax increases! M 65+Rep Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No The town appears fo have enough money to provide appropriate services. This is an opportunistic tax proposal which sounds like tax the rich but ultimately comes out of everyone’s pockets. O 35-44 Oth Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No If a home costs more to build it will be more expensive. Most expensive homes make it more difficult than live here. Duh F 55-64 Oth Wildridge/ Wildwood/ Mountain Star Definitely No Definitely No Taxes can’t get going up. People who live here can’t afford more and more taxes, especially for employee housing that no one can afford. This was already voted down, why can it be put back on the ballot. F 55-64 Unaf West Beaver Creek Blvd.Probably No Definitely No Until Avon eliminates restrictions on STR rentals for a select group of condos which cap us at 15% while still taxing us like other condos with unlimited ability to STR, as a homeowner all increase in taxes will be a NO. F 35-44 Unaf Wildridge/ Wildwood/ Mountain Star Probably No Definitely No Wish not to respond F 45-54 Unaf Other Probably Yes Probably No The $50k threshold is too low and discourages current residents from remodeling and increasing the value of their home. I’d look at $125-$150k for that number instead, or add a residency clause to the measure/amount. We want locals to add value to their homes rather than penalize their spend. F 55-64 Unaf Buffalo Ridge Definitely No Probably No I believe there will always be a budget issue, no matter how much funds we voters are willing to be taxed ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote no and reject the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 9 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response F 45-54 Unaf Eagle Bend Drive/Hurd Lane Definitely No Probably No The way it’s written you don’t say the tax is already there it’s just being converted and it’s not clear about home remodels. To be honest, a home remodel is not usually less than 50k in this valley. Make it 150k and I think more local home owners might be more open to it. That’s a much more realistic price point for even getting a contractor to take your job. Since your survey alludes to the fact you’re trying to get the taxes from larger developers why hurt the homeowners. From an educational standpoint it would also be good to know what other towns are taxing, especially Edwards and Eagle since there’s a lot more development and growth happening there than in Avon. I would hate to see the development push towards them versus Avon because of this tax. And as the town, you should be requiring large developers to invest in the community. Maybe not just taxing them - and us - more. For instance you should have made Frontgate create a sidewalk all the way to the bus stop on 6th and up to and through the round about and into Beaver Creek. Now the town has the hazards to deal with which will eventually end up costing taxpayers dollars. M 45-54 Dem Nottingham Road/ Metcalf Road Definitely No Probably No More taxes never help middle class white people F 45-54 Unaf Other Definitely No Probably No This will hurt tourism…. Doubtful the money could be trusted to go towards workforce housing. Tax the ski resort M 65+Dem West Beaver Creek Blvd.Definitely No Probably No This initiative is too short sighted. We need to look beyond what is currently happening in our community and look for solutions M 45-54 Unaf Wildridge/ Wildwood/ Mountain Star Definitely No Probably No Because I don’t need to pay for other people’s housing when I build or remodel a house. M 65+Unaf Wildridge/ Wildwood/ Mountain Star Definitely No Probably No Sales tax at 10% WE DO NOT Need More Taxes, we need less taxes. REMEMBER City Council don't represent Us. F 45-54 Rep Wildridge/ Wildwood/ Mountain Star Definitely No Probably No We are only local Town with 2 percent transfer tax. Don’t add the construction tax on top of it. One or the other. ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote no and reject the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 10 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response F 18-34 Unaf Eagle Bend Drive/Hurd Lane Probably No Probably No We already pay a lot of taxes towards similar causes and they haven’t really seemed to be allocated towards public housing and it would escalate prices in everything to even higher prices than they already are. M 45-54 Dem Eagle Bend Drive/Hurd Lane Probably No Probably No The tax should be specific to the projects in question. It's not hard to rack up 50K+ on a 'small' home project. The exemption limit should be higher. The tax should target the hotel projects and second homes who often receive exemptions just to build their projects - Traer Creek anyone? M 35-44 Unaf Other Probably No Probably No After talking with developers in the valley, part of the reason prices are so high for developments once completed is because the price of construction in the valley is so high. Adding an additional tax for the developer is only going to raise prices in the long run. Nothing that has been built recently is truly affordable, especially the Piedmont, built for community housing but charging over $3K for small, shoddily constructed apartments. That is not what we want for locals who work hard just to barely get by in this valley. This tax will further fund the Avon Town Council's poor ideas for solutions to the affordable housing issues we face. The only real solution is to ban STRs. Places like Eagle-Vail were built for employee housing and have been taken over by STRs, eroding community and enhancing housing shortages. M 65+Unaf Other Probably No Probably No Previous town managers have voted to allow these major new developments which have ruined the small town atmosphere of Avon. Big motels hotels resorts have already paid the money under the table and Avon is going to get what it deserves. F 45-54 Unaf Town Core Probably No Probably No I read your financial table and it is not transparent or clear on any level how you think you are going to double revenues with this proposed use tax. So I can not support this initiative. Maybe you should figure out how to better prioritize and allocate existing funds that would help ease the affordable housing challenge which we have been aware of for decades. M 45-54 Unaf Town Core Probably No Probably No Materials for these large projects are not purchased in county. Focus on making the sidewalks line up with something. Anything. ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote no and reject the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 11 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response F 45-54 Dem Town Core Probably No Probably No Because increased costs on construction materials make already impossibly expensive housing projects more expensive. The new condos in Avon supposedly have units meant for the Eagle county workforce but at over $1M each, how is that even close to affordable for an average local worker. I don’t want anything getting more expensive when salaries don’t come close to keeping up with costs. M 35-44 Unaf West Beaver Creek Blvd.Probably No Probably No No residential construction should be considered in this tax. Even if they are not considered workforce housing it will still increase overall real estate value. Which will increase the price of workforce housing. I will not vote for any tax that includes a tax on residential housing. That is an immediate contributor to why the piedmont is so expensive. F 18-34 Dem West Beaver Creek Blvd.Probably No Probably No The language in the ballot measure is way too confusing (especially for ESL community) F 18-34 Unaf Wildridge/ Wildwood/ Mountain Star Probably No Probably No As a 25 year old who born and raised in vail, I struggle with the idea of building more “community housing”. everything we have now is already beyond expensive and my age group is struggling to even get food on the table with the country’s inflation rates. it feels quite ridiculous and unattainable to move out of my parents basement, even though I pay them rent. I do not make enough money to support myself in the valley that I grew up in. once they’re gone, i’m gone, and that will not be by choice. if you are going to take our money to build more housing, it better benefit the true locals and long standing residents. M 45-54 Unaf Wildridge/ Wildwood/ Mountain Star Probably No Probably No It will increase the cost of construction which in return keeps housing costs higher for the end buyer or renter. F 55-64 Unaf Wildridge/ Wildwood/ Mountain Star Probably No Probably No Don’t support tax increases F 55-64 Unaf Wildridge/ Wildwood/ Mountain Star Probably No Probably No I am wondering what type of small home improvement project costs $50,000.00 or less. To upkeep a home in this valley is so expensive. Local working families can no longer afford to make a life here. ATTACHMENT B Town of Avon Use Tax Ballot Measure Survey "Please describe why you would vote no and reject the ballot measure to create a 4% use tax on construction materials." Town of Avon Use Tax Ballot Measure Survey 6/17/24 - 7/2/24 259n, +/-5.86% MoE Magellan Strategies www.Magellanstrategies.com | 303-861-8585 12 Sex Age Range Party Location Uninformed Ballot Informed Ballot Response F 55-64 Unaf Wildridge/ Wildwood/ Mountain Star Probably No Probably No I think a $100,000 exception would be more appropriate for small remodels. F 65+Unaf Wildridge/ Wildwood/ Mountain Star Probably No Probably No I'm just tired of raising taxes F 65+Dem Wildridge/ Wildwood/ Mountain Star Probably No Probably No Retired & on fixed income. Cannot continue to live here if taxes keep going up. Also all income levels considered for community housing. Oppose this. Also oppose splitting lots in Wildridge to put outrageously large homes on one lot that was considered initially as a single or duplex home. Shame on TOA! No community housing here unless you are in the upper middle class or higher. I do belief in community housing for lower middle class employees of Eagle County. M 65+Oth Wildridge/ Wildwood/ Mountain Star Probably No Probably No The 50,000 cap is way too low with the cost of construction I today's market. M 35-44 Unaf West Beaver Creek Blvd.Undecided Probably No Price of construction and housing cost would get even more expensive ATTACHMENT B 970-748-4044 dstockdale@avon.org TO: Honorable Mayor Amy Philips and Council Members FROM: Dean Stockdale, Senior Accountant RE: Financial Report – May & April 2024 data DATE: June 13th, 2024 SUMMARY: This report presents the revenues for sales, accommodations, tobacco and cigarette, and short-term rental tax for April 2024 and the recreation fees and real estate transfer tax revenues for May 2024. BACKGROUND: The percentage variance, or comparative change is reflected in the analysis portion of this report in respect to each individual section for April revenues in 2024 and May 2024. 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 2024: April sales tax revenues totaled $638,080. This is a decrease of $37,966 or 5.62% compared to April 2023 sales tax revenue of $676,047. APRIL 2023 v APRIL 2024 SALES TAX COMPARISON BY INDUSTRY April 2023 April 2024 Increase/Decrease Home/Garden $71,538.09 $57,387.17 ($14,150.92) Grocery/Specialty/Health $171,254.83 $146,962.69 ($24,292.14) Sporting Goods Retail/Rental $53,535.67 $43,314.20 ($10,221.47) Miscellaneous Retail $21,062.69 $22,751.80 $1,689.11 Accommodations $82,598.46 $70,644.48 ($11,953.98) Restaurants/Bars $134,806.31 $110,710.93 ($24,094.38) Other $13,839.60 $8,280.16 ($5,559.44) Service Related $26,441.78 $17,782.84 ($8,658.94) Liquor Stores $11,880.10 $48,027.91 $36,147.81 E-Commerce Retail $39,657.10 $63,282.26 $23,625.25 Manufacturing/Wholesale $6,141.43 $14,943.72 $8,802.29 Construction Related Services $35,969.52 $27,326.34 ($8,643.18) Digital Media Suppliers/Sellers $5,883.56 $6,173.12 $289.56 Commercial/Industrial Equipment $976.92 $492.98 ($483.94) Special Events $461.60 $0.00 ($461.60) TOTAL $676,047.57 $638,080.60 ($37,966.97) Page 2 of 11 Sales Tax: April 2024 Budget v Actual Collections: April 2024 sales tax revenues totaled $638,080. This is a decrease of $66,711 over the April 2024 estimates of $704,791. This is 9.47% below the adopted 2024 budget (based on a 3-year average). APRIL 2024 BUDGET v ACTUAL COLLECTIONS - SALES TAX 2024 Budget 2024 Actual Dollar Variance Percentage Variance April $704,791.62 $638,080.60 ($66,711.02) (5.62%) 349,189.52 591,350.43 618,675.15 676,047.57 $638,080.60 69.35%4.62% 9.27% -5.62% $300,000 $350,000 $400,000 $450,000 $500,000 $550,000 $600,000 $650,000 $700,000 $750,000 $800,000 2020 2021 2022 2023 2024 2020-2024 April Sales Tax Revenue Trend Page 3 of 11 Accommodation Tax: Revenues – April 2024: Accommodation tax revenues totaled $67,548 for the month of April. This is a decrease of $22,994 or 25.40% compared to April 2023 accommodation tax revenues, which totaled $90,542. Accommodation tax collections by industry type for April 2024 compared to April 2023 reported a decrease for Hotels, Timeshares, and Vacation Rentals. APRIL 2023 v APRIL 2024 ACCOMMODATION TAX COMPARISON BY INDUSTRY April 2023 April 2024 Increase/(Decrease) Timeshares $18,356.22 $17,963.63 ($392.59) Hotels $38,756.02 $23,715.48 ($15,040.54) Vacation Rentals $33,430.29 $25,868.95 ($7,561.34) TOTAL $90,542.53 $67,548.06 ($22,994.47) April 2024 Budget v Actual Collections: April 2024 accommodation tax revenues totaled $67,548. This is a decrease of $25,615 over the April 2024 estimates of $93,163. This is 27.49% below the adopted 2024 budget (based on a 3-year average). APRIL 2024 BUDGET v ACTUAL COLLECTIONS - ACCOMMODATIONS TAX 2024 Budget 2024 Actual Dollar Variance Percentage Variance April $93,163.06 $67,548.06 ($25,615.00) (25.40%) 8,631 73,465 91,810 90,543 67,548 751.18% 24.97% -1.38% -25.40% $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 2020 2021 2022 2023 2024 2020-2024 April Accommodation Tax Revenue Trend Page 4 of 11 Short Term Rental Tax for CH: Revenues – April 2024: STR Tax for Community Housing totaled $29,446 for the month of April. This is a decrease of $9,855 or 25.08% compared to April 2023. The Westin Hotel is classified as a hotel in our MuniRevs system, although they are zoned as residential. APRIL 2023 v APRIL 2024 STR TAX FOR CH COMPARISON BY INDUSTRY April 2023 April 2024 Increase/(Decrease) Timeshares $9,178.10 $8,981.81 ($196.29) Hotels $14,809.65 $8,373.33 ($6,436.32) Vacation Rentals $15,314.15 $12,091.42 ($3,222.73) TOTAL $39,301.90 $29,446.56 ($9,855.34) Tobacco & Cigarette Tax: Revenues – April 2024: Tobacco tax revenues totaled $22,455 and cigarette tax revenues totaled $19,221 for April 2024. Compared to April 2023 revenues, this is a decrease of $4,148 for tobacco tax revenues, which totaled $26,604 and a decrease of $444 for cigarette tax revenues, which totaled $19,665. 12,157 19,194 24,663 26,605 22,456 57.89% 28.49% 7.87% -15.59% - 5,000 10,000 15,000 20,000 25,000 30,000 2020 2021 2022 2023 2024 2020-2024 April Tobacco Tax Revenue Trend Page 5 of 11 April 2024 Adopted Budget v Actual Collections: April 2024 tobacco and cigarette tax revenues totaled $22,455 and $19,221, respectively. This is a decrease of $2,299, over the April 2024 budget for tobacco tax, which is $24,755 and an increase of $984 over the April 2024 budget for cigarette tax estimates, which is $18,236 which is based on a 3-year average. APRIL 2024 BUDGET v ACTUAL COLLECTIONS - TOBACCO AND CIGARETTE TAX REVENUES 2024 Budget 2024 Actual Dollar Variance Percentage Variance Tobacco $24,755.48 $22,455.96 ($2,299.52) (9.29%) Cigarettes $18,236.89 $19,221.00 $984.11 5.40% Total ($1,315.41) 16,188 18,798 18,234 19,665 19,221 16.12% -3.00% 7.85% -2.26% - 5,000 10,000 15,000 20,000 25,000 2020 2021 2022 2023 2024 2020-2024 April Cigarette Excise Tax Revenue Trend Page 6 of 11 Real Estate Transfer Tax: Revenues – May 2024: May 2024 real estate transfer tax totaled $256,119. Compared to May 2023, which totaled $364,608, this is a decrease of $108,488. This is a decrease of $544,915 over the May 2024 budget which was based on a 3-year average. MAY 2024 BUDGET v ACTUAL COLLECTIONS – REAL ESTATE TRANSFER TAX REVENUES 2024 Budget 2024 Actual Dollar Variance Percentage Variance Real Estate Transfer Tax $801,035.52 $256,119.97 ($544,915.55) (68.03%) $100,257 $323,408 $1,079,581 $364,609 $256,120 222.58% 233.81% -66.23% -29.75% $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2020 2021 2022 2023 2024 Real Estate Transfer Tax May Revenue Trends Page 7 of 11 Recreation Center Fees: Revenues – May 2024 Admissions & Program Fees: Recreation admission revenues for May 2024 totaled $54,707 is a decrease of $30,543 compared to May 2023 which totaled $85,250. This is $19,090 below the adopted 2024 budget estimates of $73,798. Unfavorable admissions revenue due to Rec Center being closed for two weeks in May for maintenance. Recreation program fee revenues for May 2024 totaled $37,022. This is an increase of $3,675 compared to 2023, which totaled $33,346 This is $8,155 above the adopted 2024 budget estimates, which is $28,867 which is calculated based on a 3-year average. 714 37,549 86,023 85,251 54,708 5162.65% 129.10%-0.90% -35.83% - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 2020 2021 2022 2023 2024 Recreation Admissions May Revenue Trends $7,749 $33,138 $16,893 $33,347 $37,023 327.66% -49.02% 97.41%11.02% $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 2020 2021 2022 2023 2024 Recreation Program Fees May Revenue Trends Page 8 of 11 Tax Revenue Comparison – 2023 v 2024: All taxes are down for 2024 compared to 2023. Below is a table which reflects the dollar change and percentage variance. Adopted Budget 2023 v Actual 2024: Sales Tax, Accommodations Tax, STR for CH, and Tobacco Tax reflect an unfavorable variance over the 2024 budget. Total revenue for the YTD is reflecting an unfavorable variance to the 2024 budget. Below is a table which reflects the dollar change and percentage variance. 2023 v 2024 YTD Revenue Comparison 2023 2024 Dollar Variance Percentage Variance Sales Tax $4,862,289.11 $4,846,445.04 ($15,844.07) (0.33%) Acc. Tax $1,179,334.37 $1,027,656.31 ($151,678.06) (12.86%) STR Tax for CH $537,215.10 $473,798.60 ($63,416.50) (11.80%) Tobacco Tax $122,065.40 $117,521.31 ($4,544.09) (3.72%) Cigarette Tax $77,701.50 $77,517.00 ($184.50) (0.24%) Rec Admissions $478,972.51 $485,129.50 $6,156.99 1.29% Rec Program Fees $174,257.36 $181,036.92 $6,779.56 3.89% TOTAL $7,431,835.35 $7,209,104.68 ($222,730.67) (3.00%) 2024 Revenue Comparison – Budget v Actual Budget Actual Dollar Variance Percentage Variance Sales Tax $4,908,971.27 $4,846,445.04 ($62,526.23) (1.27%) Acc. Tax $1,103,606.46 $1,027,656.31 ($75,950.15) (6.88%) STR Tax for CH $526,604.16 $473,798.60 ($52,805.56) (10.03%) Tobacco Tax $119,440.62 $117,521.31 ($1,919.31) (1.61%) Cigarette Tax $75,414.66 $77,517.00 $2,102.34 2.79% Rec Admissions $369,743.94 $485,129.50 $115,385.56 31.21% Rec Program Fees $133,277.88 $181,036.92 $47,759.04 35.83% TOTAL $7,237,058.99 $7,209,104.68 ($27,954.31) (0.39%) Page 9 of 11 Real Estate Transfer Tax: Revenues YTD 2024 BUDGET/PRIOR YEAR v ACTUAL COLLECTIONS – REAL ESTATE TRANSFER TAX REVENUES 2024 Budget 2024 Actual Dollar Variance Percentage Variance Real Estate Transfer Tax $2,960,571.20 $3,510,188.99 $549,617.79 18.56% 2023 Actual 2024 Actual Dollar Variance Percentage Variance Real Estate Transfer Tax $1,706,567.50 $3,510,188.99 $1,803,621.49 105.69% New and Renewed Business and STR Licenses – 2023 v 2024: The total number of 2024 business licenses issued through May was 312. This was down 23 licenses or 6.9% from May 2023. The total number of STR licenses issued through March was 89. Compared to May 2023 the STR licenses were down 25 licenses or 21.9%. 2024 v 2023 – Business and STR Licenses Period 1/1 – 5/31 2024 2023 License Variance Percentage Variance Business License - Vendor 312 335 (23) (6.9%) Business License – Fixed Location 84 84 0 0.0% Business License – Home Occupation 22 23 (1) (4.3%) Business License – Special Event 4 5 (1) (20.0%) TOTAL BUSINESS LICENSES 422 447 (25) (5.6%) STR License 89 114 (25) (21.9%) Page 10 of 11 - 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 Business License - Vendor Business License - Fixed Location Business License - Home Occupation Business License - Special Event Business Licenses Issued 1/1 -5/31 2022 2023 2024 0 20 40 60 80 100 120 STR License STR Licenses Issued 1/1 -5/31 2022 2023 2024 Page 11 of 11 EXPENDITURES: APRIL 2024 General Fund YTD Actuals v 2024 Budget: General Fund expenditures through May 2024 total $8,303,894 which is 31.55% of the total adopted budget. These expenditures include all wages, health benefits, events, computer services, operating cost, legal services, and utilities. Mobility Fund YTD Actuals v 2024 Budget: Mobility Fund expenditures through May 2024 total $999,377 which is 27.77% of the total adopted budget. These expenditures include the cost for wages, health benefits, consulting services, utilities, and bike share program. Fleet Maintenance YTD Actuals v 2024 Budget: Fleet Maintenance expenditures through May 2024 total $527,250 which is 24.18% of the total adopted budget. These expenditures include wages, health benefit, fuel, vehicle maintenance, utilities, equipment, and operating supplies. Capital Projects Fund YTD Actuals v 2024 Budget: The Capital Improvement expenditures through May 2024 total $840,317 which is 8.60% of the total adopted budget. These expenditures were made up of primarily West BC Blvd. street improvements project. Thank you, Dean 970.748.4004 eric@avon.org TO: Finance Committee Members FROM: Paul Redmond, Chief Finance Officer RE: Village (at Avon) DATE: July 11, 2024 SUMMARY: This report provides a review of the financial summary of the Village (at Avon). FINANCIAL STATUS: The Town approved an extensive and comprehensive pledge of Town’s tax credits for the purpose of constructing public infrastructure at the Village (at Avon). Town’s pledge includes the 4% Sales Tax, 4% Lodging Tax, 2% Real Estate Transfer Tax, and the Town of Avon’s water tap fee ($4,000 per single family equivalent). Public Improvements have been financed by Traer Creek Metropolitan District. Traer Creek Metropolitan District is the “master metro district”. The area of TCMD is a thirty-five acre parcel owned by Traer Creek LLC, who then grants an undivided interest in this parcel to those it chooses to be on the TCMD Board of Directors. The Village Metropolitan District is the “slave metro district” and encompasses the remainder of all the Village (at Avon) PUD property. There is an Intergovernmental Agreement between TCMD and VMD whereby TCMD prepares the annual budget for VMD. TCMD contracts directly for municipal bond financing, private Developer Advance loans, and construction of Public Improvements within the VMD service area. The financial structure for the construction of Public Improvements as follows: •Traer Creek LLC created a Residential Public Improvement Company and Commercial Public Improvement Company, known as “PICs”. The PICs are non-profit corporations controlled by Traer Creek LLC. •The covenants for the Village (at Avon) allow the PICs to impose a “Retail Sales Fee”, Accommodations Fee”, and a “Real Estate Transfer Fee”, known as “PIC Fees”. These fees are imposed by private covenant, and are thus contracts between Traer Creek LLC and whoever property or leases property within the Village (at Avon). •The CARADA states that the Town shall provide a credit for Town’s Sales Tax, Accommodations Tax and Real Estate Transfer Tax so long as the PIC Fees are in place. The CARADA also states that the Town shall pledge the Town’s $4,000 water tap fee per single family equivalent unit. •The PICs pledge the PIC Fees by contract to Traer Creek Metropolitan District. •Traer Creek Metropolitan District uses the pledged PIC Fees as the revenue stream to support the issuance of tax exempt municipal bonds as well as for the repayment of Development Advances. The 2012 Settlement resulted in the CARADA which defined the maximum amount of debt issuance that would be repaid with Town’s Tax Credits at $96,000,000 in total principal. Currently, the Village (at Avon), through the Traer Creek Metropolitan District and Village Metropolitan District, have issued $76 M. We anticipate that the current public improvements at East Beaver Creek Boulevard Phase II and Crescent Hill Road development will cost $10M, leaving an estimated $10M in additional debt that may be issued for additional Public Infrastructure. The existing balance of outstanding debt, including both principal and accrued interest on past Developer Advances, is $63M. Since 2003 when WalMart/Home Depot first opened, the Retail Sales Fee has been Page 2 of 7 the principal source of revenue. In 2023 the Retail Sales Fee amounted to $5,604,400. Avon water tap fees are only paid once at the time of issuance of a building permit . Real Estate Transfer Fees have been minimal because no condominium projects have been developed and little property has been transferred from Traer Creek. No Accommodations Fees have been received because no hotels have opened prior to 2023. With the construction and opening of the dual brand hotel we estimate that the annual revenue from Retail Sales Fee and the Accommodations Fee will amount to approximately $6M per year. Credit PIF Principal Cap $ 96,000,000.00 Capital Projects Amount Year Refinance of Original Bonds: I-70 Interchange, Post Blvd. connection to US6, Utilities, Traer Creek Plaza Garage $ 52,100,000.00 2014 Traer Creek Water Storage Tank $ 7,200,000.00 2014 Past Developer Advances $ 12,047,736.00 2006-2008 Developer Asphalt Overlay Contributions $ 240,000.00 2015-2017 PA-J Wagon Wheel Trail $ 1,663,544.00 2019? Mountain Road (??) $ 699,904.93 2019 Capital Advance - Street Drainage $ 106,934.00 2019 Landscape Deposit $ 114,745.50 2020 Asphalt-Wagon Trail Road $ 170,483.58 2021 EBCB Phase I/Nottingham Ditch $ 1,793,777.20 2021 $ 76,137,125.21 Remaining Credit PIF Principal Cap $ 19,862,874.79 Debt Balances: 12-31-2023 Amount Interest Rate Developer Advances $ 8,570,984.00 1.5-8% Interest on Developer Advances $ 10,577,200.00 Additions $ 540,993.00 $ 19,689,177.00 Series 2020 Bonds $ 43,845,000.00 4.15-5.0% TOTAL OUTSTANDING DEBT BALANCE 6-2024 $ 63,534,177.00 The existing revenues from the Town’s Tax Credit commitments are primarily the 4% Retail Sales Fee (privately imposed by the Developer’s Commercial Public Improvement Company). This amounted to $5,604,400 in 2023, which was the highest year ever. Avon’s water tap fee is credited back to TCMD. The Town Avon water tap fees paid to date amount to $1,359,650. Real Estate Transfer Fees paid to date amount to $303,024. The opening of the Mariott Suites hotel is expected to generate both Retail Sales Fee and Accommodations Fee revenues. Page 3 of 7 OUTSTANDING DEBT: Outstanding Debt is comprised of Past Developer Advances and 2020 Bonds. Developer Advances includes private debt financing provided by the Developer from 2003 through 2011. The 2020 Bonds refinanced the outstanding debt from early public improvements and issued additional debt for new public improvements. Early public improvements included the construction of the I -70 interchange and construction of Post Boulevard, construction of the Traer Creek Plaza parking garage, and then as part of the 2012 Settlement, construction of the water storage tank. Recent public improvements include Phase I and Phase II of the East Beaver Creek Boulevard improvements and construction of Wagon Trail Road. Bond Debt is required to be paid each year in accordance with a set payment schedule that is determined at the time the bonds are issued. Past Developer Advances are subject to simple interest and continues to accrue until paid down. The CARADA sets forth a priority payment list of outstanding debts along with a set annual Operation and Maintenance Budget for Traer Creek Metropolitan District of $450,000 per year. CARADA, Exhibit F. 14. Any additional money available after annual bond payments and funding the general operations and maintenance is required to be used for payment of outstanding Developer Advances. Due to the financial health of Traer Creek Metropolitan District, the payment of $9,077,575 was made in 2023 to pay down balance on the 2003 Funding and Reimbursement Agreement, which included a paydown of $3,476,751.84 in principal and $5,600,823.86 in interest. Current Outstanding Past Developer Advances FUNDING AGREEMENTS Principal Amount Current Interest Rage Total Accrued Interest Outstanding Balance 2003 Funding and Reimbursement Agreement $ 1,018,889.00 8% $ 2,969,643.08 $ 3,988,532.08 2003 Funding and Reimbursement Agreement $ 1,541,784.00 1.50% $ 217,771.71 $ 1,759,555.71 2005 Buffalo Ridge $ 4,029,786.00 8.00% $ 6,062,343.81 $ 10,092,129.81 2006 Operations Funding Agreement $ 576,310.00 1.50% $ 449,672.63 $ 1,025,982.63 2007 Operations Funding Agreement $ 841,980.00 1.50% $ 576,556.09 $ 1,418,536.09 2008 Operations Funding Agreement $ 279,116.00 1.50% $ 173,919.30 $ 453,035.30 2009 Operations Funding Agreement $ 87,694.00 1.50% $ 44,558.97 $ 132,252.97 2010 Operations Funding Agreement $ 122,743.00 1.50% $ 52,548.58 $ 175,291.58 2011 Operations Funding Agreement $ 72,682.00 1.50% $ 30,186.92 $ 102,868.92 TOTAL OUTSTANDING $ 8,570,984.00 $10,577,201.09 $ 19,148,185.09 The current annual interest that accrues on the Developer Advances is $456,728.64. Two outstanding Developer Advances are subject to an 8% interest rate. The annual interest on the two Developer Advances that accrue interest at 8% equals $403,894 while the remaining annual interest on Developer Advances is $52,834.64. Although the outstanding balance of these two loans is $5,048,675, the outstanding balance with the accrued interest since 2003 and 2005 is $14,080,661.89. Prioritizing payoff of these Past Developer Advances would dramatically reduce annual interest that is accruing each year. This is discussed more below. Page 4 of 7 The 2020 Bonds annual payment is $2,875,895. The payment schedule slowly increases through 2049 to $3,076,500 and may vary due to the terms which allow a variable interest rate between 4.15% and 5%. Assuming that total Public Improvement Company Fees from existing develop amounts to at least $6,000,000 in 2025 and each year thereafter, the required use of revenues would include approximately $3,000,000 for the 2020 Bond annual payment and $450,000 for Traer Creek Metro District annual operations, leaving approximately $2.5 Million available to support issuance of the remaining CIP cap and to paydown existing debts. COST TO TOWN: Avon has an obligation to provide Municipal Services. Paragraph 4.1 of the CARADA states, 4.1 Municipal Services. The Town shall have the ongoing responsibility and obligation to provide all municipal services to the Property and the Project including, without limitation, police protection, snow removal and road maintenance, maintenance (including repair and replacement) of streetscape improvements and landscaping within public road rights-of-way, bus transportation services, asphalt overlay of public roads, building code enforcement and other administrative services equivalent (except as expressly modified or qualified by Sections 3.3(b), 3.4, 4.2(c) and 4.2(d)) to those services provided to any other area of the Town on a uniform and non-discriminatory basis (collectively, the “Municipal Services”). The Parties acknowledge the Town provides public transit services as part of the Municipal Services based on a variety of factors including demand, the Town's transit planning policies, funding availability and similar considerations and, accordingly, does not provide public transit service within all areas of the Town or make a representation or commitment regarding when and to what extent the Town may provide public transit service within the Property. As such, the Town shall not deny any Development Application based on a lack of transit services or the inability of the Town to provide transit services, and no approval of a Development Application shall be conditioned upon any party or entity other than the Town providing transit services. The Town's receipt of Municipal Payments during the Term as generally described in Section 6.5, together with the additional revenues described in Section 6.16, is in consideration of the Town’s providing Municipal Services. The Municipal Payments and additional revenues described in Section 6.16 shall be conclusively deemed and construed to fully offset the Town’s cost of performing its Municipal Services obligations pursuant to this Development Agreement, such that no Party shall assert or claim that such Municipal Payments revenues are either inadequate or excessive, no Party shall assert or claim any right to an increase in or a reduction of such Municipal Payments revenues, and the Town shall not withhold, suspend or terminate the provision of any of the Town’s Municipal Services obligations pursuant to this Development Agreement. [Emphasis added]. After expiration of the Term, the Town shall continue to provide Municipal Services in accordance with the Town’s general obligation to provide municipal services throughout the Town. Page 5 of 7 The emphasized statement is intended to clarify that neither Avon nor Traer Creek LLC can assert that Municipal Payments are too little or too much for the purposes of performance and compliance with the terms of the CARADA. This cost analysis is not intended to suggest non-compliance with terms of the CARADA; rather, it is to illustrate the current financial status of revenues received and services provided for the purposes of budgeting and financial planning. There are more layers of fiscal modelling and analysis that are not conducted in this report, including recognition that residential properties generate very little revenue directly but are a source of retail spending that boosts sales at commercial properties. Avon’s direct revenue sources from development at the Village (at Avon) include the .75% Add-On PIF, the “tax on the PIF” (Avon’s 4% sales tax applied to the PIC’s 4% PIF and the .75% Add-On PIF), share-back of 15% of the Eagle County one cent sales tax, Avon’s property tax, building permit fees and other development related fees. Direct Revenues (2023): The following table depicts Direct Revenues received from the Village (at Avon): Direct Tax Revenues from Village (at Avon) Add-On .75% PIF $ 1,050,161 Avon Sales Tax on PIC Sales Fee $ 266,041 Eagle County Sales Tax (15% rebate) $ 327,650 Property Tax $ 206,224 TOTAL $ 1,850,075 Building Permits Spring Hill Suites/Town Place Suites $ 308,548 Maverick $ 38,467 TOTAL $ 347,015 TOTAL DIRECT REVENUES $2,197,091 Expenses (2023): The following table indicates direct expenses incurred by Town of Avon to provide Municipal Services. The principle direct Municipal Services are Police, Transit and Street maintenance. Avon provides many other indirect services that benefit the general public, including but not limited to administration, finance, human resources, Community Development planning, Community Housing, free community concerts, arts and culture, improvements and programming at Harry A. Nottingham Park, climate action investments and programs and the recreation facility. Page 6 of 7 Direct Revenues 2023 $ 2,197,091 Direct Services Police $ 838,895 Transit $ 576,883 Road Maintenance $ 630,870 Building Permit Administration (30% of Building Dept Cost) $ 123,000 TOTAL $ 2,169,648.38 NET $ 27,442.23 Direct Revenues with Spring Hill Suites and Traer Apartments $ 2,325,994 (includes building permit for Traer Apartments and estimated $128,000 in taxes and fees that Town collects) Direct Services (with Traer Apartments) Police $ 1,179,394 Transit $ 576,883 Road Maintenance $ 630,870 Building Permit Administration (30% of Building Dept Cost) $ 123,000 TOTAL $ 2,510,148 Shortfall $ (184,154) Capital Improvements: Avon also expends monies on capital improvements addition to Municipal Services in the Village (at Avon). The CARADA set forth an Asphalt Overlay Escrow Fund in which Avon, Traer Creek Metropolitan District and Traer Creek LLC all contributed funds for t he overlay and repair of streets in the Village (at Avon). This Asphalt Overlay Fund was used for the overlay of Fawcett Road and Yoder Road. The Asphalt Overlay Fund is nearly depleted. Under the CARADA it is Avon’s responsibility to maintain streets, streetscape, landscaping in public right-of-ways and to construct and maintain parks (i.e. PA-B and P1). Upcoming capital improvements over the next three years include the following : Capital Improvements P1 Trail Grading (estimate) $ 250,000 Swift Gulch Road $ 673,000 Retaining Wall Repair $ 100,000 Post Blvd Overlay (estimate for 2026) $ 2,750,000 Nottingham Puder Ditch Headgate (estimate) $ 800,000 Irrigation (estimate) $ 75,000 TOTAL $ 4,648,000 Neither PA-B nor P1 are designed at this time. A very general rule of thumb is that park construction is estimated to cost $1.5M per acre. This cost estimate can vary greatly depending upon how much of a park Page 7 of 7 is playfields and natural landscape versus structures for recreational and public purposes. P3 (the large regional park area to the north of Spring Hill Suites) is not included in this cost estimating at this time. Park Construction PA-B (Park) (4 acres x $1.5M/acre) $ 6,000,000 P1 Park (3 acres x $1.5M/acre) $ 4,500,000 TOTAL $ 10,500,000 The costs for capital improvements and parks may be required to come from the Capital Improvements Fund. The Capital Improvements Fund is funded by the Real Estate Transfer Tax (“RETT”). Avon has pledged the RETT revenues to the fund Public Improvements under the CARADA; therefore, other capital improvements in the Village (at Avon) may funded by RETT revenues derived from the non -Village (at Avon) portions of Avon. A potential alternative revenue source for capital improvements is through the Avon Downtown Development Authority through tax increment financing. The amount of tax increment financing revenues is directly dependent on the timing and valuation of new construction in the Vill age (at Avon). See discussion below for more details on the Avon Downtown Development Authority. FINANCIAL CONNECTION: Additional development in the Village (at Avon) will enhance the annual revenues that are pledged to repayment of outstanding debts and the repayment of issuance of the remaining authorized debt. Specifically, additional revenue generating development in the Village (at Avon) will accelerate the ultimate full satisfaction of the Town’s tax credit pledge. Additional retail development will also enhance the .75% Add-On PIF and .15% County Sales Tax rebate revenues. The available revenues are sufficient for issuance of the remaining Debt Cap and may be sufficient for pay - off of the Past Developer Advances accruing interest at 8%. The Town should begin to model the most financially efficient manner of issuing the remaining debt and paying off all outstanding debt balances to fully satisfy Town’s tax credit obligations. Thanks, 970.748.4004 eric@avon.org TO: Finance Committee Members FROM: Paul Redmond, Chief Finance Officer RE: EPS Fiscal Analysis DATE: July 10, 2024 SUMMARY: Attached to this report is the Fiscal Analysis from Economic & Planning Systems, Inc. (“EPS”), About EPS (epsys.com). This Fiscal Analysis Report updates and expands an early Fiscal Analysis report prepared by EPS in 2018. This serves as a great tool to benchmark the Town of Avon’s finances, revenues and taxes compared to other mountain resort communities. Committee comments, questions and direction is welcome. This document is planned to be updated every three years to serve as a snapshot of the Town of Avon’s finances compared to our peer communities. The document will be updated in 2025. Thank you, Paul 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 ATT A: EPS Fiscal Analysis Report ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report THIS PAGE INTENTIONALLY LEFT BLANK ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report THIS PAGE INTENTIONALLY LEFT BLANK ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report THIS PAGE INTENTIONALLY LEFT BLANK ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report Appendix ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report 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 ATT A: EPS Fiscal Analysis Report