FINAL - Finance Commitee Packet 9.16.2024SEPTEMBER 16, 2024; FINANCE COMMITTEE MEETING AGENDA PAGE 1
FINANCE COMMITTEE MEETING AGENDA
MONDAY, SEPTEMBER 16, 2024
MEETING BEGINS AT 12:00 PM
100 MIKAELA WAY, AVON CO 81620
1. CALL TO ORDER AND ROLL CALL
2. APPROVAL OF MAY 20, 2024 MINUTES (NOT APPROVED AT THE LAST MEETING)
3. APPROVAL OF JULY 15, 2024 MINUTES
4. 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.]
5. RESOLUTION 24-01 SUPPORTING TOWN OF AVON BALLOT ISSUE 2C - USE TAX ON CONSTRUCTION
MATERIALS TO BENEFIT COMMUNITY HOUSING (CHIEF FINANCIAL OFFICER PAUL REDMOND)
6. GENERAL UPDATE ON 2024 FINANCIALS (CHIEF FINANCIAL OFFICER PAUL REDMOND)
7. GENERAL UPDATE ON 2025 PROPOSED BUDGET AND REVENUE PROJECTIONS (CHIEF FINANCIAL OFFICER
PAUL REDMOND)
8. DISCUSSION: COMMITTEE EXPIRATION ON DECEMBER 31, 2024 AND DESIRE TO EXTEND (TOWN MANAGER
ERIC HEIL)
9. NEXT COMMITTEE MEETING DATE:
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.
10. ADJOURNMENT
FUTURE AGENDAS:
AVON RECREATION CENTER EXPANSION
EPS AVON REVENUE & ECONOMIC STUDY
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. GENERAL UPDATE ON 2024 FINANCIALS (CHIEF FINANCIAL OFFICER PAUL REDMOND)
Chief Financial Officer Paul Redmond delivered his presentation on the financial results year to
date. As this was a work session, no action was taken.
5. USE TAX (CHIEF FINANCIAL OFFICER PAUL REDMOND)
Chief Financial Officer Paul Redmond delivered his presentation on Use Tax. As this was a work
session, no action was taken.
6. VILLAGE (AT AVON) (CHIEF FINANCIAL OFFICER PAUL REDMOND)
Chief Financial Officer Paul Redmond introduced the topic of the Village at Avon. As this was a ork
session, no action was 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. As this was a work session, no action was 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. As this was a work session, no action was 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 MANAGER ERIC 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 State 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.
FINANCE COMMITTEE MEETING
MONDAY, JULY 15, 2024
HYBRID MEETING; IN-PERSON AND ON TEAMS
Finance Committee Meeting, July 15, 2024 1 | 2
1. ROLL CALL
Present in Person: Committee members Craig Ferraro and Lisa Post and Councilors Rich Carroll and
Tamra Underwood.
Present Virtually: Courtney Sievers with Magellan Strategies and Town of Avon Marketing &
Communications Manager Elizabeth Wood.
Absent: Committee Members Clark Rogers, John Widerman, Markian Fedeschuk and Steve Coyer.
Staff: Town Manager Eric Heil, Deputy Town Manager Patty McKenny, Chief Financial Officer Paul
Redmond and Chief Administrative Officer Ineke de Jong, as Secretary.
The meeting was called to order at 5:13 p.m. Town Manager Eric Heil expressed we don’t have a quorum
for the finance committee meeting but no decisions will be made this evening as all items are work
sessions for informational purposes.
2. APPROVAL OF MAY 20TH, 2024 MINUTES
The minutes did not get approved as there was no quorum for a meeting.
3. PUBLIC COMMENT
There was no public comment.
4. USE TAX VOTER P OLLING UPDATE (CHIEF FINANCIAL OFFICER PAUL REDMOND)
Chief Financial Officer Paul Redmond introduced Courtney Sievers with Magellan Strategies who
delivered her presentation on the results of the Use Tax voter polling survey performed in June
2024 by Magellan Strategies. She answered questions from the committee members, councilors
and staff. As this was a work session, no action was taken.
5. GENERAL UPDATE ON 2024 FINANCIALS (CHIEF FINANCIAL OFFICER PAUL REDMOND)
Chief Financial Officer Paul Redmond delivered his presentation on the financial results through
end of April 2024. As this was a work session, no action was taken.
6. VILLAGE (AT AVON) (CHIEF FINANCIAL OFFICER PAUL REDMOND AND TOWN MANAGER ERIC HEIL)
Chief Financial Officer Paul Redmond and Town Manager Eric Heil delivered the slides on the
Village at Avon financials. As this was a work session, no action was taken.
7. FISCAL PEER COMMUNITY COMPARISON STUDY (CHIEF FINANCIAL OFFICER PAUL REDMOND)
Chief Financial Officer Paul Redmond delivered his slides on the Fiscal Peer Community
Comparison Study. He explained the last study was completed in 2022 and the Town is looking to
create an updated report in 2025. As this was a work session, no motion was made.
8. NEXT COMMITTEE MEETING DATE
During it’s last meeting, the Finance Committee Members agreed to meet bi-monthly on the 3rd Monday
of the month. The next meeting is Monday September 16, 2024 at 5:00 p.m. (or earlier) at the Mount
Holy Cross meeting room at Avon Town Hall. The agenda will include consideration for a resolution to
support a use tax ballot question. There would be a review of the RFP for the 2025 fiscal peer
community comparison study and a few other items. The 2 members present expressed they are
flexible with the meeting time on September 16 and asked staff to check with the other 4 members on
FINANCE COMMITTEE MEETING
MONDAY, JULY 15, 2024
HYBRID MEETING; IN-PERSON AND ON TEAMS
Finance Committee Meeting, July 15, 2024 2 | 2
their preferred meeting time for that day and future meetings.
The 3rd Monday in November conflicts with the Planning & Zoning Commission due to a schedule
adjustment for the Thanksgiving holiday in the 4th week. The 2 members present suggested we can
skip the November meeting (& reconvene in January) as the finance team and Town staff will be very
busy with the 2025 proposed budget process and in general it’s a busy time of year for everyone. Staff
said there would be a committee appreciation dinner for all Avon boards, committees & the planning &
zoning commission on Tuesday December 17. A save the date will follow.
9. ADJOURNMENT
The meeting adjourned, the time was 7:37 p.m.
Respectfully Submitted by:
Ineke de Jong, Chief Administrative Officer.
These minutes are action minutes and only a summary of the proceedings of the meeting. They are not intended to be
comprehensive or to include each statement, person speaking or to portray with complete accuracy. The most accurate records
of the meeting are the audio of the meeting, which is housed in the Town Clerk' s office.
970.748.4088 predmond@avon.org
TO: Finance Committee Members
FROM: Paul Redmond, Chief Finance Officer
RE: Resolution 24-01 Support of the Use Tax on Construction
Materials Ballot Question
DATE: September 13, 2024
SUMMARY: Resolution 24-01 expresses the Avon Finance Committee’s support of Ballot Issue 2C, the
Use Tax on New Construction question placed on the November 5, 2024, ballot.
BACKGROUND: Avon Town Council Ordinance No. 24-12 Use Tax on Construction Materials was
approved by Council at the August 27, 2024, Council Meeting, at the second and final reading. Ordinance
No. 24-12 referred a ballot question to the November 5, 2024, election. The Ordinance also amended the
Avon Municipal Code to establish Chapter 3.09, Use Tax on Construction Materials. The Use Tax would
only apply to new construction and includes an exemption of $125,000 in total building materials value and
limits the exemption value of building materials for building permits over a three-year period.
SAMPLE MOTION:
“I move to approve Resolution 24-01 Supporting Town of Avon Ballot Issue 2C, Use Tax on Construction Materials to
benefit Community Housing”.
The Towns Clerks office will post this Resolution 24-01 in the following locations:
Avon Town Hall: 100 Mikaela Way, Avon Colorado, 81620
Avon Public Library: 200 Benchmark Rd, Avon Colorado, 81620
Avon Recreation Center: 90 Lake St, Avon Colorado, 81620
Thank you, Paul
ATTACHMENT A – RESOLUTION 24-01
ATTACHMENT B – AVON TOWN COUNCIL ORDINANCE NO. 24-12
Resolution No. 24-24
September 24, 2024
Page 1 of 1
RESOLUTION 24-01
SUPPORTING TOWN OF AVON BALLOT ISSUE 2C
USE TAX ON CONSTRUCTION MATERIALS TO BENEFIT COMMUNITY HOUSING
WHEREAS, the Colorado Fair Campaign Practices Act expressly authorizes local
governments to pass a resolution taking a position of advocacy and reporting the passage of,
and distributing, the resolution through established and customary means by C.R.S. §1-45-
117(1)(b)(III), and
WHEREAS, the Avon Finance Committee finds that Ballot Issue 2C will promote the
sustainability of the Avon community by asking registered Avon voters to impose a 4% use tax
on construction materials to fund community housing as part of the General Election on
November 5th, 2024; and
WHEREAS, the Committee acknowledges that there is a dire need for community housing and
Avon Town Council has declared the development and acquisition of workforce housing to be
the number one priority; and
WHEREAS the imposition of the 4% use tax on construction materials is not a new tax but
rather replaces the existing 4% sales tax, and allows for the collection of the tax on construction
materials purchased outside Avon and dedicates the new revenue to support and secure the
additional funding needed to make vital improvements for local community housing; and
WHEREAS, the Town of Avon has adopted the Community Housing Plan in 2018 to help
address the housing challenges with dedicated Real Estate Transfer Tax Revenues to programs
such as the establishment of a homebuyer assistance program for Avon residents, potential use
of town owned land for affordable housing, as well as secured state grants for regional housing
planning efforts; and
NOW, THEREFORE, BE IT RESOLVED, the Avon Finance Committee hereby supports and
endorses Town of Avon Ballot Issue 2C for Use Tax on Construction Materials to benefit
community housing in the upcoming November 5, 2024 General Election, as a measure that will
improve funding for community housing and promote increased livability, sustainability and
economic vitality for Avon and the Eagle County region.
ADOPTED SEPTEMBER 16, 2024 BY THE AVON FINANCE COMMITTEE
By: Attest:___________________________
Finance Committee Miguel Jauregui Casanueva, Town Clerk
ATTACHMENT A
Avon
COLORADO
ORDINANCE NO.24-12
REFERRING A BALLOT QUESTION REGARDING USE TAX ON
CONSTRUCTION MATERIALS TO THE NOVEMBER 5, 2024
ELECTION AND AMENDING THE AVON MUNICIPAL CODE TO
ESTABLISH CHAPTER 3.09 USE TAX ON CONSTRUCTION
MATERIALS
WHEREAS, pursuant to C.R.S. §31- 15-103 and §31-15-104, and pursuant to the home rule
powers of the Town of Avon ("Town"), the Avon Town Council ("Council") has the power to
make and publish ordinances necessary and proper to provide for the safety, preserve the health,
promote the prosperity, and improve the morals, order, comfort, and convenience of its
inhabitants; and
WHEREAS, Council finds that the referral of a 4% Use Tax on Construction Materials to the
Avon electorate is appropriate and beneficial for the Avon community in order to reduce the
administrative burden of Town and builders, to adopt a use tax that matches the Town's sales
tax, to increase the collection of revenues related to new construction for general government
purposes and to increase revenues in the Village (at Avon) for the purpose of accelerating the
satisfaction of the Town's tax credit obligations; and
WHEREAS, the Council finds that adoption of a use tax will promote the health, safety and
general welfare of the Avon community; and,
WHEREAS, approval of this Ordinance on first reading is intended only to confirm that the
Town Council desires to comply with the requirement of Section 6.5(d) of the Avon Home Rule
Charter by setting a public hearing in order to provide the public an opportunity to present
testimony and evidence and that approval of this Ordinance on first reading does not constitute a
representation that the Town Council, or any member of the Town Council, has determined to
take final action on this Ordinance prior to concluding the public hearing on second reading.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN
OF AVON, COLORADO the following:
Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein
by reference and adopted as findings and determinations of the Town Council.
Section 2. Chapter 3.09 Enacted. A new Chapter 3.09 - Use Tax on Construction Materials
in the Avon Municipal Code, set forth in EXHIBIT A: Chapter 3.09 attached hereto, is hereby
enacted subject to voter approval as described in Section 3 of this Ordinance.
Section 3. Election and Effective Date. Under Article X, Section 20 of the Colorado
Constitution, the Council refers the tax increase provided in this ordinance to the qualified
electors of the Town for approval at the regular Town election scheduled for November 5, 2024.
Ord 24-12 Use Tax on Construction Materials
August 23, 2024 — SECOND READING
Page 1 of 2
ATTACHMENT B
If approved by a majority of the electors voting thereon, this ordinance shall become effective
when the Town Clerk or other designated election official duly files the required certificate of
election, or on January 1, 2025, whichever occurs last.
Section 4. Ballot Title and Questions. The ballot title and question submitted to the
electors shall be as follows:
Ballot Title: USE TAX ON NEW CONSTRUCTION TO FUND COMMUNITY
HOUSING
Ballot Question: SHALL THE TOWN OF AVON'S TAXES BE INCREASED BY FOUR MILLION
DOLLARS ($4,000,000) IN THE FIRST YEAR 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 $125,000 IN CONSTRUCTION MATERIALS BE EXEMPT FROM
PAYING THE USE TAX; ALL IN ACCORDANCE WITH, AND FURTHER DEFINED BY, TOWN OF
AVON ORDINANCE NO.24-12; 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 WHOULD OTHERWISE APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO
CONSTITUTION OR ANY OTHER LAW.
INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC
HEARING by the Avon Town Council on August 13, 2024, and setting such public hearing for
August 27, 2024 at the Council Chambers of the Avon Municipal Building, located at 100
Mikaela Way, Avon, Colorado.
Phijllips, Mayor
ATTEST:
Miguel Jauregui
ED ON SECOND AND FINAL READING by the Avon T
2024, after conducting a public hearing.
ATTEST:
Miguel Jan
APPROVED AS TO FORM:
Nina Williams, Town Attorney
Ord 24-12 Use Tax on Construction Materials
August 23, 2024 — SECOND READING
Page 2 of 2
eva, T
Council on
ATTACHMENT B
EXHIBIT A: Chapter 3.09 — Use Tax on Construction Materials
CHAPTER 3.09 — Use Tax on Construction Materials
3.09.010 — Title, Purpose, and Applicability.
a) This Chapter shall be known and may be cited as "The Town of Avon Use Tax on
Construction and Building Materials."
b) The purpose of this Chapter is to raise revenue for the Community Housing Fund. The
Town Council find that every person who uses or consumes in the Town any
construction and building materials is exercising a taxable privilege.
c) Subject only to the exemptions set out at Section 3.09.040, the use tax imposed herein
shall apply to any use or consumption in the Town of construction and building
materials purchased at retail on or after January 1, 2025.
3.09.020 — Definitions
When not otherwise clearly indicated by the context, the following words and phrases, as
used in this chapter, shall have the following meanings:
Building permit means a permit, issued by the Town, allowing the permit holder to
construct, enlarge, repair, move, demolish, or change the occupancy of a building or structure, or
to erect, install, enlarge, alter, repair, remove, convert, or replace any electrical, gas, mechanical,
or plumbing system regulated by the adopted building codes of the Town. A building permit shall
not include any permit for demolition or dewatering.
Charitable organization means any entity which has been certified as a nonprofit
organization under Section 501(c)(3) of the Internal Revenue Code.
Construction equipment means any equipment, including mobile machinery and mobile
equipment, which is used to erect, install, alter, demolish, repair, remodel, or otherwise make
improvements to any real property, building, structure, or infrastructure, whether leased or owned.
Construction Materials means tangible personal property which, when combined with
other tangible personal property, loses its identity to become an integral and inseparable part of a
structure or project including public and private improvements. Construction Materials include,
but are not limited to, such things as: asphalt, bricks, builders' hardware, caulking material, cement,
concrete, conduit, electric wiring and connections, fireplace inserts, electrical heating and cooling
equipment, flooring, glass, gravel, insulation, lath, lead, lime, lumber, macadam, millwork, mortar,
oil, paint, piping, pipe valves and pipe fittings, plaster, plumbing fixtures, putty, reinforcing mesh,
road base, roofing, sand, sanitary sewer pipe, sheet metal, site lighting, steel, stone, stucco, tile,
trees, shrubs and other landscaping materials, wall board, wall coping, wallpaper, weather
stripping, wire netting and screen, water mains and meters, and wood preserver. The above
materials, when used for forms, or other items which do not remain as an integral and inseparable
part of completed structure or project are not construction materials.
1
ATTACHMENT B
Construction valuation means the total value of the work, including labor and construction
and building materials, for which a permit is issued, including leased construction equipment,
electrical, gas, mechanical, plumbing equipment and permanent systems, as determined by the
building department or building official.
Consumption means the act or process of consuming, and includes waste, destruction, or
use. Consumption is the normal use of property for the purpose for which it was intended.
Contractor means any person who shall build, construct, reconstruct, alter, expand, modify,
or improve any building, dwelling, structure, infrastructure, or other improvement to real property
for another party pursuant to an agreement. For purposes of this definition, Contractor also
includes subcontractor.
Director means the Chief Finance Officer for the Town or such person's designee.
Person means any individual, firm, partnership, joint venture, corporation, limited liability
company, estate or trust, receiver, trustee, assignee, lessee, or any person acting in a fiduciary or
representative capacity, whether appointed by court or otherwise, or any group or combination
acting as a unit.
Purchase or sale means the acquisition for any consideration by any person of tangible
personal property by way of purchase, lease, or rental, including capital leases, installment and
credit sales, and lease -purchase, rental or grant of a license to use, which consideration may include
money, exchange of property or services, or any other thing of value.
Purchase price means the aggregate value in money of anything or things paid or delivered
or promised to be paid or delivered by a purchaser to a retailer or any person in the consummation
of a retail sale as defined herein, without any deduction therefrom for the cost of the property sold,
cost of materials used, labor or service cost, or any other expense whatsoever, and provided that
when articles of tangible personal property are sold after manufacture or after having been made
to order, the gross value of all materials, labor, service, and profit thereon shall be included in the
purchase price; provided that the purchase price shall not include any direct tax imposed by the
United States government, the state, or this chapter.
Retail Sale or Purchased at Retail means any purchase or sale of tangible personal
property, except a wholesale sale or purchase made for taxable resale.
Taxpayer means any person obligated to collect and/or pay tax under this Code.
Town means the Town of Avon.
Use means the exercise, for any length of time, by any person with the Town of any right,
power or dominion over tangible personal property or services when rented, leased, or purchased
at retail from sources within or with the Town; or tangible personal property used in the
2
ATTACHMENT B
performance of a contract in the Town, whether or not owned by the taxpayer. Use also includes
withdrawal of items from inventory for consumption.
Wholesale sales mean a sale to a licensed retailer, jobber, dealer, or other wholesaler for
resale. Sales by wholesalers to consumers, including persons who use or consume construction
and building materials, as defined by this Section, are not wholesale sales. Sales by wholesalers to
non -licensed retailers are not wholesale sales.
Wholesaler means any person selling to retailers, jobbers, dealers, or other wholesalers, for
the purpose of resale and not for storage, use, consumption, or distribution.
3.09.030 — Use tax imposed.
a) There is hereby imposed and levied in the Town, and shall be collected and paid, a use
tax on the privilege of using or consuming within the Town construction and building
materials of every kind and form purchased or leased inside or outside the Town.
b) The use tax imposed by this Chapter shall be at the rate of four percent (4%) of the
cost of construction and building materials used or consumed in the Town, including
leased equipment. For purposes of this Chapter, the cost of construction and building
materials is deemed to be fifty percent (50%) of the construction valuation.
c) Any construction and building material used or consumed on a project which has
received all final development review approvals required by Title 7 of the Avon
Municipal Code on or before December 31, 2024, shall not be subject to the use tax
imposed herein. If any approval expires by its terms after December 31, 2024, such
application for development review shall then be subject to the use tax imposed by
this Chapter.
3.09.040 — Exemptions.
The following are exempt from the use tax imposed by this chapter, provided that the list
of exemptions cannot be increased by implication or similarity and the burden of proof is upon the
taxpayer to establish an exemption:
a) The use or consumption of construction and building materials the sale of which is
subject to a retail sales tax imposed by the Town;
b) The use or consumption of construction and building materials purchased for resale
in the Town, either in their original form or as an ingredient of a manufactured or
compounded product, in the regular course of business;
c) The use or consumption of construction and building materials by the United States
government; by the State, its departments or institutions or political subdivisions
thereof in their governmental capacities only; or by the Town; providing, however,
that no commercial, industrial or other banking institution, organized or chartered by
3
ATTACHMENT B
the United States government, any agency or department thereof, or by the State, shall
be considered a governmental institution for the purpose of this exemption;
d) The use or consumption of construction and building materials by charitable
organizations in the conduct of their regular charitable functions; except that nothing
herein contained shall be deemed to exempt use of construction and building material
or supplies used by a contractor for the construction of an improvement for a
charitable organization;
e) The use or consumption of construction and building materials by a person engaged
in the business of manufacturing or compounding for sale, profit, or use of any article,
substance, or commodity, which construction and building materials enters into the
processing of or becomes an ingredient or component part of the product or service
which is manufactured, compounded, or furnished, and the container, label, or the
furnished shipping case thereof,
f) The use or consumption of construction and building materials if a written contract
for the purchase thereof was entered into prior to January 1, 2025;
g) The use or consumption of construction and building materials required or made
necessary in the performance of any construction contract bid, let, or entered into at
any time prior to January 1, 2025;
h) The storage of construction and building materials;
i) A building project or projects, subject to a Town of Avon Building Permit or Permits
issued within a three arperiod, with a total ^enstr- ietion valuation building material
value of one hundred twenty thousand dollars ($125,000.00) or less;
j) The use or consumption of construction and building materials in the Town on which
the use tax imposed by this Chapter has already been paid; and
k) Any transaction which the Town is prohibited from taxing under applicable law.
3.09.050 — Credit for taxes paid to another taxing authority.
a) The Town's use tax shall not apply to the use or consumption of any construction and
building materials the sale or use of which has already been subjected to a legally
imposed sales or use tax of another statutory or home rule town, city, or city and
county equal to or in excess of the use tax imposed herein.
b) A credit shall be granted against the Town's use tax in an amount equal to lawful tax
previously paid by the purchaser or user to another taxing authority, provided that the
amount of credit shall not exceed the amount of use tax imposed by this Chapter.
c) The burden of proof is upon the taxpayer to establish the right to any credit claimed.
4
ATTACHMENT B
d) It is the intent of this Chapter for Town taxes to be paid at the time a building permit
is issued. Once such permit is issued, persons engaged in construction projects in the
Town are considered to be the end users of construction and building materials and
must not pay municipal sales tax to a retailer in another jurisdiction for materials to be
used or consumed in the Town. No refund or credit of another municipality's tax will
be allowed unless such tax is legally imposed.
3.09.055 — Tax credit for the Village (at Avon).
RESERVE. I Netwithstandiag any ethpr-. of this Ghaptef:, there shall be gr-anted
MOM!
3.09.056 - Tax credit for Community Housing.
Notwithstanding any other provision of this Chapter, there may be granted a tax credit to
each person owing tax on the use or consumption of construction and building materials and
fixtures used in a Community Housing project provided that such use tax credit is approved by
Council by resolution in accordance with Chapter 3.14. Neither the ability of the Town to grant
this tax credit nor the repeal or termination of this tax credit shall constitute a tax rate increase, the
imposition of a new tax or a tax policy change.
3.09.057 - Temporary tax credit for renewable energy production components.
Notwithstanding any other provision of this Chapter, there shall be granted a temporary
tax credit to each person owing tax on the use or consumption of components used in the
production of electricity, generation of heat or cooling of air, from a renewable energy source,
including but not limited to wind, solar, solar thermal systems, and geothermal energy systems,
provided that this temporary tax credit shall commence on the effective date of this ordinance and
shall continue until December 31, 2024, whereupon this temporary tax credit shall automatically
expire unless extended by adoption of an ordinance. Neither the ability of the Town to grant the
temporary tax credit nor the termination of the credit shall constitute a tax increase, the imposition
of a new tax or a tax policy change.
3.09.060 — Collection and administration.
a) The administration of this chapter is hereby vested in the Director, who shall prescribe
forms and promulgate rules and regulations for the proper administration and
5
ATTACHMENT B
enforcement of this chapter. The Director may delegate to any person the power and
authority necessary for the proper administration and enforcement of this chapter.
b) The use tax required by this Chapter shall initially be made by estimate, which
estimated amount must be paid at or prior to the time any permit for building or
construction within the Town is issued. No permit shall be issued by the Town
Building Official, or any other town employee, to any person requesting a permit for
construction within the Town until such estimated use tax has been paid, except as
described below for single-family and duplex residential building_ permits. The tax
estimate shall be made by the Director, working with the Community Development
Department to determine the Construction Valuation. A single family or duplex
building permit applicant may request deferral of the payment of the Use Tax until
completion of construction whereupon payment in full shall be a condition of issuing
a Temporary Certificate Occupancy or Certificate of Occupancy.
c) All use taxes due to the Town must be paid in full before a final building inspection
may take place and a permanent or temporary certificate of occupancy issued. The
Director may determine the amount of use taxes due to the Town before final
inspections occur or certificates of occupancy issue. To assist in this determination,
the Director may request information from the taxpayer, who shall timely provide it,
which information may include proof of actual amounts paid for construction and
building materials used or consumed in the building project.
d) A person engaged in a construction project in the Town who does not apply for and
have issued a permit or who seeks and obtains prior approval of the Director to remit
use taxes in accordance with this Subsection (d) shall, on or before the twentieth day
of each succeeding month following the start of construction, file a return with the
Director attaching all statements and invoices establishing the price paid for building
and construction materials used in the local project, along with a summary sheet for
materials purchased the previous month, and shall thereupon pay to the Town the full
amount of use tax due for the preceding month or months. Any failure to make such
return and payment of such use tax shall be deemed a violation of this Chapter, which
may, upon conviction, subject the violator to penalties provided.
3.09.070 — Penalty and Interest.
a) If any person fails, neglects, or refuses to pay the use tax as required by this chapter,
or if any taxpayer fails to remit the proper amount of tax or underpays the tax, then
penalties and interest shall be imposed in accordance with this section.
b) If a person neglects or refuses to pay any use tax as required by this Chapter within
ten (10) days after the same is due, the Director shall make an estimate, based upon
such information as may be available, of the amount of use tax due for the period for
which the taxpayer is delinquent and shall add thereto a penalty equal to the greater of
fifteen dollars ($15.00) or ten percent (10%) of the amount due and interest at the rate
a
ATTACHMENT B
of one -and -a -half percent (1.5%) per month from the time delinquent payment was
due.
c) If any part of the deficiency is due to fraud with the intent to evade the tax, there shall
be added a penalty of one hundred percent (100%) of the total amount of the
deficiency, and in such case the whole amount of the tax unpaid, including the
additions, shall become due and payable ten (10) days after written notice and demand
by the Director, and an additional three percent (3%) per month on said amount shall
be added from the date payment was due, until paid.
d) The Director may, for good cause shown, waive any penalty or interest.
3.09.080 — Remedies not exclusive.
In addition to enforcement remedies expressly provided in this chapter, the Town may pursue any
other remedies available at law or in equity.
3.09.090 — Lien.
The tax imposed by this Chapter, together with accrued interest and penalties, shall be a first and
prior lien on any real property into which the construction and building materials were
incorporated.
3.09.100 — Limitation of Action.
Use tax, interest, and penalties shall be assessed, and any action to collect the same shall be
commenced, within three (3) years of the issuance of a final certificate of occupancy for the
improvement on which the use tax was paid. This period of limitation shall not run for any period
of time covered by an audit if written notice of that audit is given to the taxpayer prior to expiration
of the limitation period.
3.09.110 — Refunds.
a) Upon completion of construction, the taxpayer may apply to the Director for a refund
of overpaid taxes. Such application shall be supported by documentation required by
the Director or as needed to establish actual amounts paid for construction and
building materials used or consumed as part of a building project.
b) A taxpayer claiming an exemption may pay the use tax under protest. Applications for
refund of such protested tax must be made within sixty (60) days of issuance of the
building permit for which the use tax was paid under protest.
c) A taxpayer claiming refund for use tax paid by mistake or in error must make that
claim within three (3) years of the final inspection or issuance of a permanent
certificate of occupancy, whichever comes later, for the improvement on which the
use tax was paid.
7
ATTACHMENT B
d) All claims for refund shall be upon forms prescribed by the Director and made in such
manner as required by the Director. The Director shall promptly review refund claims
and issue a denial in writing, state the reason therefor, or provide the funds requested,
after applying any refund amount against outstanding tax liabilities.
e) If a taxpayer disputes a refund denial, the taxpayer shall provide the Director with a
written protest, filed within 30 days of the Director's notice. The protest shall identify
specific grounds for dispute, including any necessary documentation, and shall request
a hearing before the Director. This protest process, and that of any related appeal, shall
be in accordance with Section 29-2-106.1, Colorado Revised Statutes.
e) The right to refund shall not be assignable.
3.09.120 — Audit.
a) The Town may audit, or the taxpayer request an audit, within three (3) years from the
issuance of any certificate of occupancy for the improvement on which the use tax
was paid. An audit requested by the taxpayer shall be at the taxpayer's sole cost.
b) If the recomputed use tax is less than the amount of use tax paid by the taxpayer, the
difference shall be refunded to the taxpayer within thirty (30) days of the final
determination of the Town. If the recomputed use tax is more than the amount of use
tax paid by the taxpayer, the difference, along with any interest and penalty imposed
by this chapter, shall be due and payable by the taxpayer immediately upon the final
determination of the Town with notice to the taxpayer.
3.09.130 — Book, Records, Reports, and Returns.
a) Every person liable for any use tax imposed by this chapter shall keep and preserve,
for a period of three (3) years from the date of issuance of a final certificate of
occupancy for the improvement on which the use tax was paid, all books, records,
reports and returns necessary to determine the amount of tax liability. All such books,
records, reports, and returns shall be open for examination at any time by the Director.
b) Any information gained by taxpayer disclosure or as part of an audit or investigation
shall be entitled to the same level of confidentiality afford to sales tax information, as
set out in Chapter 3.08 of the Avon Municipal Code.
c) For the purpose of determining the amount of tax due from any taxpayer, the Director
may hold investigations and hearings concerning any matters covered by this Chapter,
and may examine any relevant books, papers, records, or memoranda of any such
person, requiring the attendance of such taxpayer, or any officer or employee of such
taxpayer, or of any person having relevant knowledge, and taking such testimony and
proof as may be necessary to properly ascertain any tax liability. The Director shall
H.
ATTACHMENT B
have power to administer oaths to any person in the course of such investigations or
hearings. Production of documents and attendance of witnesses shall be requested by
the Director on his or her own motion or on motion of any parry; any request for
production or attendance shall inform persons that compliance is voluntary but that, if
the request is not complied with, the Director may apply to the Municipal Judge for
issuance of a subpoena.
d) The Municipal Judge, upon application of the Director, may compel the attendance of
witnesses, the production of books, papers, records or memoranda, and the giving of
testimony before the Director or any of his or her duly authorized agents, by the
issuance and enforcement of subpoenas, in the same manner as production of evidence
may be compelled before the court.
3.09.140 — Violation and Penalty
a) It is a violation of this Chapter for any person subject to the use tax levied by this
chapter to submit any false or fraudulent use tax information to the town, to make any
false statement on any document used to calculate taxes due under this chapter, to fail
or refuse to make payment of any taxes due, to evade the payment of any taxes due,
or to aid or abet another in any attempt to evade the payment of any taxes due under
this chapter.
b) In addition to any other penalty provided in this Chapter, any person who violates any
provision of this Chapter shall be punished in accordance with Section 1.08 of the
Avon Municipal Code.
9
ATTACHMENT B
970-748-4044 dstockdale@avon.org
TO: Honorable Mayor Amy Philips and Council Members FROM: Dean Stockdale, Senior Accountant
RE: Financial Report – July & June 2024 data
DATE: August 15th, 2024
SUMMARY: This report presents the revenues for sales, accommodations, tobacco and cigarette, and
short-term rental tax for June 2024 and the recreation fees and real estate transfer tax revenues for July
2024.
BACKGROUND: The percentage variance, or comparative change is reflected in the analysis portion of
this report in respect to each individual section for June revenues in 2024 and July 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 – June 2024: June sales tax revenues totaled $1,169,041. This is a decrease of
$167,691 or 12.54% compared to June 2023 sales tax revenue of $1,336,733. Decrease to Manufacturing
and Construction sales tax is primarily due to sales tax from the Frontgate project in prior year.
JUNE 2023 v JUNE 2024 SALES TAX COMPARISON BY INDUSTRY
June 2023 June 2024 Increase/Decrease
Home/Garden $156,867.11 $152,752.72 ($4,114.39)
Grocery/Specialty/Health $182,542.05 $178,551.53 ($3,990.52)
Sporting Goods Retail/Rental $45,712.28 $49,397.26 $3,684.98
Miscellaneous Retail $70,414.41 $59,232.67 ($11,181.74)
Accommodations $119,618.16 $105,316.45 ($14,301.71)
Restaurants/Bars $165,196.70 $166,812.23 $1,615.53
Other $38,069.05 $23,177.30 ($14,891.75)
Service Related $128,046.99 $110,677.48 ($17,369.51)
Liquor Stores $21,078.56 $19,935.41 ($1,143.15)
E-Commerce Retail $64,313.63 $89,128.55 $24,814.92
Manufacturing/Wholesale $113,489.83 $66,985.20 ($46,504.63)
Construction Related Services $184,120.81 $95,191.21 ($88,929.60)
Digital Media Suppliers/Sellers $19,615.66 $27,534.13 $7,918.47
Commercial/Industrial Equipment $26,228.64 $22,242.38 ($3,986.26)
Special Events $1,419.74 $2,107.11 $687.37
TOTAL $1,336,733.62 $1,169,041.63 ($167,691.99)
Page 2 of 11
Sales Tax: June 2024 Budget v Actual Collections: June 2024 sales tax revenues totaled $1,169,041.
This is a decrease of $126,063 over the June 2024 estimates of $1,295,105. This is 9.73% below the
adopted 2024 budget (based on a 3-year average).
JUNE 2024 BUDGET v ACTUAL COLLECTIONS - SALES TAX
2024 Budget 2024 Actual Dollar Variance Percentage Variance
June $1,295,105.17 $1,169,041.63 ($126,063.54) (9.73%)
801,965.52 1,012,305.14 1,116,755.98 1,336,733.62 $1,169,041.63
26.23%
10.32%
19.70%
-12.54%
$300,000
$500,000
$700,000
$900,000
$1,100,000
$1,300,000
2020 2021 2022 2023 2024
2020-2024 June Sales Tax Revenue Trend
Page 3 of 11
Accommodation Tax: Revenues – June 2024: Accommodation tax revenues totaled $113,439 for the
month of June. This is a decrease of $14,900 or 11.61% compared to June 2023 accommodation tax
revenues, which totaled $128,340. Accommodation tax collections by industry type for June 2024
compared to June 2023 reported a decrease for Hotels, Timeshares, and Vacation Rentals.
JUNE 2023 v JUNE 2024 ACCOMMODATION TAX COMPARISON BY INDUSTRY
June 2023 June 2024 Increase/(Decrease)
Timeshares $23,630.23 $21,228.03 ($2,402.20)
Hotels $55,839.83 $46,624.04 ($9,215.79)
Vacation Rentals $48,869.94 $45,587.90 ($3,282.04)
TOTAL $128,340.00 $113,439.97 ($14,900.03)
June 2024 Budget v Actual Collections: June 2024 accommodation tax revenues totaled $113,439. This
is a decrease of $43,012 over the June 2024 estimates of $156,452. This is 27.49% below the adopted
2024 budget (based on a 3-year average).
JUNE 2024 BUDGET v ACTUAL COLLECTIONS - ACCOMMODATIONS TAX
2024 Budget 2024 Actual Dollar Variance Percentage Variance
June $156,452.86 $113,439.97 ($43,012.89) (27.49%)
51,187 158,588 142,677 128,340 113,440
209.82%
-10.03%
-10.05%
-11.61%
$0
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
2020 2021 2022 2023 2024
2020-2024 June Accommodation Tax Revenue
Trend
Page 4 of 11
Short Term Rental Tax for CH: Revenues – June 2024: STR Tax for Community Housing totaled
$47,691 for the month of June. This is a decrease of $7,594 or 13.70% compared to June 2023. The
Westin Hotel is classified as a hotel in our MuniRevs system, although they are zoned as residential.
JUNE 2023 v JUNE 2024 STR TAX FOR CH COMPARISON BY INDUSTRY
June 2023 June 2024 Increase/(Decrease)
Timeshares $11,815.10 $10,614.02 ($1,201.08)
Hotels $20,374.80 $15,986.55 ($4,388.25)
Vacation Rentals $23,095.88 $21,090.49 ($2,005.39)
TOTAL $55,285.78 $47,691.06 ($7,594.72)
Tobacco & Cigarette Tax: Revenues – June 2024: Tobacco tax revenues totaled $24,579 and cigarette
tax revenues totaled $20,193 for June 2024. Compared to June 2023 revenues, this is a decrease of
$7,296 for tobacco tax revenues, which totaled $31,876 and a decrease of $411 for cigarette tax revenues,
which totaled $20,604.
15,707 22,965 27,785 31,877 24,580
46.21%
20.99%
14.73%
-22.89%
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2020 2021 2022 2023 2024
2020-2024 June Tobacco Tax Revenue Trend
Page 5 of 11
June 2024 Adopted Budget v Actual Collections: June 2024 tobacco and cigarette tax revenues totaled
$24,579 and $20,193, respectively. This is a decrease of $4,449, over the June 2024 budget for tobacco
tax, which is $29,029 and a decrease of $529 over the June 2024 budget for cigarette tax estimates, which
is $20,722 which is based on a 3-year average.
JUNE 2024 BUDGET v ACTUAL COLLECTIONS - TOBACCO AND CIGARETTE TAX REVENUES
2024 Budget 2024 Actual Dollar Variance Percentage
Variance
Tobacco $29,029.08 $24,579.89 ($4,449.19) (15.33%)
Cigarettes $20,722.64 $20,193.00 ($529.64) (2.56%)
Total ($4,978.83)
24,732 22,932 20,889 20,604 20,193
-7.28%
-8.91%-1.36%-1.99%
-
5,000
10,000
15,000
20,000
25,000
30,000
2020 2021 2022 2023 2024
2020-2024 June Cigarette Excise Tax Revenue
Trend
Page 6 of 11
Real Estate Transfer Tax: Revenues – July 2024: July 2024 real estate transfer tax totaled $282,466.
Compared to July 2023, which totaled $268,804, this is an increase of $13,662. This is a decrease of
$255,008 over the July 2024 budget which was based on a 3-year average.
JULY 2024 BUDGET v ACTUAL COLLECTIONS – REAL ESTATE TRANSFER TAX REVENUES
2024 Budget 2024 Actual Dollar Variance Percentage
Variance
Real Estate Transfer Tax $537,475.19 $282,466.58 ($255,008.61) (47.45%)
$234,702 $463,720 $453,491 $268,804 $282,467
97.58%
-2.21%
-40.73%
5.08%
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
2020 2021 2022 2023 2024
Real Estate Transfer Tax July Revenue Trends
Page 7 of 11
Recreation Center Fees: Revenues – July 2024 Admissions & Program Fees: Recreation admission
revenues for July 2024 totaled $113,109 is a decrease of $1,856 compared to July 2023 which totaled
$114,965. This is $11,955 above the adopted 2024 budget estimates of $101,154. Recreation program fee
revenues for July 2024 totaled $36,990. This is a decrease of $8,933 compared to 2023, which totaled
$45,924 This is $3,531 below the adopted 2024 budget estimates, which is $40,522 which is calculated
based on a 3-year average.
22,390 92,029 79,235 114,966 113,109
311.03%
-13.90%
45.09%
-1.61%
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2020 2021 2022 2023 2024
Recreation Admissions July Revenue Trends
$42,861 $44,413 $26,704 $45,925 $36,991
3.62%
-39.87%
71.98%
-19.45%
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
2020 2021 2022 2023 2024
Recreation Program Fees July Revenue Trends
Page 8 of 11
Tax Revenue Comparison – 2023 v 2024: All taxes and Rec Admissions 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 $6,824,829.06 $6,697,823.80 ($127,005.26) (1.86%)
Acc. Tax $1,374,907.32 $1,216,137.65 ($158,769.67) (11.55%)
STR Tax for CH $620,319.85 $553,891.91 ($66,427.94) (10.71%)
Tobacco Tax $180,304.46 $161,885.07 ($18,419.39) (10.22%)
Cigarette Tax $117,211.50 $116,175.00 ($1,036.50) (0.88%)
Rec Admissions $703,389.81 $700,312.78 ($3,077.03) (0.44%)
Rec Program Fees $256,377.11 $259,485.55 $3,108.44 1.21%
TOTAL $10,077,339.11 $9,705,711.76 ($371,627.35) (3.69%)
2024 Revenue Comparison – Budget v Actual
Budget Actual Dollar Variance Percentage
Variance
Sales Tax $6,891,957.94 $6,697,823.80 ($194,134.14) (2.82%)
Acc. Tax $1,342,930.81 $1,216,137.65 ($126,793.16) (9.44%)
STR Tax for CH $613,693.35 $553,891.91 ($59,801.44) (9.74%)
Tobacco Tax $172,855.86 $161,885.07 ($10,970.79) (6.35%)
Cigarette Tax $115,010.10 $116,175.00 $1,164.90 1.01%
Rec Admissions $569,020.03 $700,312.78 $131,292.75 23.07%
Rec Program Fees $207,436.77 $259,485.55 $52,048.78 25.09%
TOTAL $9,912,904.86 $9,705,711.76 ($207,193.10) (2.09%)
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 $4,182,990.71 $4,086,111.97 ($96,878.74) (2.32%)
2023 Actual 2024 Actual Dollar Variance Percentage
Variance
Real Estate Transfer Tax $2,508,084.28 $4,086,111.97 $1,578,027.69 62.92%
New and Renewed Business and STR Licenses – 2023 v 2024: The total number of 2024 business
licenses issued through July was 640. This was down 40 licenses or 5.9% for the year to date. The total
number of STR licenses issued through July was 108. Compared to July 2023 the STR licenses were down
17 licenses or 13.6%.
2024 v 2023 – Business and STR Licenses
Period 1/1 – 7/31 2024 2023 License
Variance
Percentage
Variance
Business License - Vendor 456 491 (35) (7.1%)
Business License – Fixed Location 116 119 (3) (2.5%)
Business License – Home Occupation 41 40 1 2.5%
Business License – Special Event 27 30 (3) (10.0%)
TOTAL BUSINESS LICENSES 640 680 (40) (5.9%)
STR License 108 125 (17) (13.6%)
Page 10 of 11
-
100.00
200.00
300.00
400.00
500.00
600.00
Business License - Vendor Business License - Fixed
Location
Business License - Home
Occupation
Business License - Special
Event
Business Licenses Issued 1/1 -7/31
2022 2023 2024
0
20
40
60
80
100
120
140
160
STR License
STR Licenses Issued 1/1 -7/31
2022 2023 2024
Page 11 of 11
EXPENDITURES: JUNE 2024
General Fund YTD Actuals v 2024 Budget: General Fund expenditures through July 2024 total
$12,675,739 which is 48.17% 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 July 2024 total
$1,405,990 which is 39.07% 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 July 2024 total
$1,242,929 which is 57.0% 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 July
2024 total $2,674,046 which is 27.35% of the total adopted budget. These expenditures were made up of
primarily West BC Blvd. street improvements project.
Thank you,
Dean
970.748.4088 predmond@avon.org
TO: Finance Committee Members
FROM: Paul Redmond, Chief Finance Officer
RE: 2025 Budget Update on Revenue Projections
DATE: September 11, 2024
SUMMARY: This report introduces the projected budget revenues for 2025 across several funds. The
Finance Committee has been asked to provide input about the revenue projections presented by the CFO.
Town Council will review the information on September 24, 2024 at the Council Meeting and either make
modifications or approve revenue estimates. Town staff will then continue to build the other budget
components to present the first draft of the 2025 Town Budget on October 22 at the Council’s retreat. The
final budget is slated for final adoption in December.
BUDGET APPROACH: The Town Manager strives to present a balanced budget, where the projected
operating revenues for the next year match or exceed the projected operating expenses. The Town
traditionally budgets conservatively with both revenues and expenses after reviewing historical trends, town
council priorities, and an analysis of capital projects. The town’s actual revenue collections are usually
higher than budgeted revenues. The conservative budgeting practices have helped the Town remain
financially stable and has prevented it from overcommitting to operating expenses that are not sustainable.
REVENUE PROJECTIONS: Revenue projections are modest and conservative. Not included in the
Revenue Projections is the possibility of the Use Tax on Construction materials passing this November.
Staff prefers to wait until the results of the election before including any increased revenues from the
referred 4% Use Tax on Construction Materials. Sales tax projections take into account the likely increase
in sales tax revenue as the newly Spring Hill Suites is completed and Phase II of Frontgate is finished and
occupied.
GENERAL FUND REVENUES: Total tax revenues in 2025 are projected to be relatively flat for 2025
comparted to the 2024 budget.
Property Tax collections are projected to remain the same in 2025 compared to 2024. The increase from
property taxes collections from 2023 to 2024 is 42% or $871,950. Real estate values have seen dramatic
increases over the past several years. To help reduce some of these impacts for property owners, House
Bill 24B-1001 was passed and lowers assessed valuation for lodging property owners, extending rates and
value subtractions ($30,000) for the 2023 property tax year into property tax year 2024. The adopted
legislation also lowers residential assessment rates beginning with the 2025 property tax year for both local
governments and school districts based on the growth rate of actual values statewide from 2024 to 2025.
And lastly, the bill reduces the assessment rates for most types of nonresidential property through the 2027
property tax year.
Sales Tax is the Towns largest revenue stream. In 2021 the Town saw a 26% increase in sales tax revenues
compared to 2020 and then another 14% increase in 2022 (up from 2021). The Town started to see a modest
increase in 2023 as the growth was 2% over the prior year. This year’s collections started flat compared to
2023. However, we have not been realizing the same trends from the two previous years. The second quarter
of 2024 saw a drop in sales tax revenues of approximately 6% from the same time last year. Sales tax
revenues for 2024 is projected to be relatively flat compared to 2023. The Town does expect some growth
in sales tax revenues as a result of the completion of new development; the Spring Hill Suites, One Riverfront
and Frontgate are expected to bring more visitors to Town.
Page 2 of 3
The chart below shows the sales tax collection by quarter and includes the 2024 forecast and 2025
projections for the Town’s 4% Sales Tax.
Licenses and permits are budgeted to increase for 2025 as there continues to be a steady submittal of
building permits year after year. Similarly, plan check fees are projected to increase with our historical
averages. Recreation admission fees and program fees are projected to increase as we continue to see
visitor growth in this department with the programs being offered. Intergovernmental revenues are projected
to increase by $22,000 due to the addition of the Avon Best & Brightest internship program.
The overall budget increase for the General Fund is 1% or $325,111
The General Fund Revenues can be seen on Attachment A.
CIP FUND REVENUES: Real Estate Transfer Tax revenues are conservatively projected at $5,000,000
which are derived from the Town of Avon 2% Real Estate Transfer Tax. It is expected that the completion
and sale of new real estate from the Frontgate projects will offset any decline in revenues from the downturn
in real estate due to interest rate increases. The dedication of Real Estate Transfer Tax revenues to capital
improvements is unique to Avon and has created a stable CIP Fund with adequate fund balances to continue
with street resurfacing, facility replacements, and implementation of community projects identified in the
Town’s Comprehensive Plan documents.
COMMUNITY HOUSING FUND: Avon voters approved a 2% short-term rental tax in November, 2021 that
began generating tax revenues in January, 2022. Estimated tax revenues are projected to decrease to
$1,001,100 in the 2025 Budget. The 5.64% decrease is largely due to fewer short-term licenses being issued.
These revenues are dedicated to community housing projects and staff is currently reviewing several future
projects. If voters approve the Use Tax on Construction Materials, the Community Housing Fund will see an
increase in revenues by approximately $2,000,000, however, this will affect the Sales Tax in the General
Fund as the Sales Tax on Construction Materials will no longer be collected.
$‐
$500,000.00
$1,000,000.00
$1,500,000.00
$2,000,000.00
$2,500,000.00
$3,000,000.00
$3,500,000.00
$4,000,000.00
$4,500,000.00
Jan‐Mar Apr‐Jun Jul‐Sept Oct‐Dec
SALES TAX FOR THE LAST 5 YEARS
2019 2020 2021 2022 2023 2024 2025
Page 3 of 3
WATER FUND: The Water Fund collects revenues which are restricted to water related projects and
expenses. Revenues are generated by a $4,000 per Single Family Equivalent (SFE) water tap fee and a
$3.25/SFE/month fee on the water bill. Expenditures in the Water Fund include engineering and construction
of projects, water attorney fees and irrigation ditch maintenance. The water surcharges coming into the
Water Fund are very consistent every year. Council is asked to consider a proposal to increase these rates
by 2% in 2025. This will have a minimal impact on the consumers as the price per SFE will increase by
approximately six cents. We have reduced the Tap Fees revenues to $25,000 as the Town has not seen an
permits for larger projects in 2025.
FLEET MAINTENANCE FUND: The Fleet Maintenance Fund is an enterprise operation and is used to
account for operations that are financed and operated in a manner similar to private business enterprises,
where the costs of providing services to the Town's departments, other governmental third-party agencies,
and up to 10% private clients, can be fully recovered through user charges. Monies may also be provided to
the Fleet Maintenance Fund from general taxes collected by the Town of Avon, when appropriate, to ensure
a positive net income on an annual basis. The Fleet labor billing will be increased 7% in 2025.
OTHER FUNDS: The Town’s other funds are established to segregate revenues from specific sources for
specific purposes, including the Avon Urban Renewable Fund, Community Enhancement Fund and Exterior
Energy Offset Fund are all projected to remain flat in with no increase in 2025. After reducing the Disposable
Paper Bag Fee in 2024 we are projecting this to increase in 2025 by $10,000 as one local vendor has started
selling paper bags again. We have seen There are no substantial changes to these funds in 2023.
Thank you, Paul
ATTACHMENT A - General Fund Revenues
Parent Budget 2025 %
Account Number
2022
Total Activity
2023
Total Activity
2024
YTD Activity
2024
2024 2024 Projection
2025
2025
Increase /
(Decrease)
Category: 51000 ‐ Taxes
Revenue
PROPERTY TAX ‐ CURRENT 2,107,960.86 2,086,973.67 2,958,923.62 2,961,699.00 2,958,923.62 2,961,699.00 ‐0%
PROPERTY TAX ‐ DELINQUENT 8.08 181.99 ‐ 500.00 ‐ 500.00 ‐0%
CURRENT & DELINQUENT INTERE 2,391.03 2,274.95 2,210.72 1,900.00 2,210.72 1,900.00 ‐0%
PROPERTY TAX ‐ ABATEMENTS (913.34) (1.01)(3,462.00) ‐ (3,462.00) ‐ ‐0%
SPECIFIC OWNERSHIP TAXES 130,200.79 137,110.68 94,688.19 130,000.00 189,376.38 130,000.00 ‐0%
GENERAL SALES TAX 13,186,930.70 13,054,192.74 6,666,699.32 14,079,150.00 13,184,366.39 14,079,150.00 ‐0%
UTILITY TAX 139,369.68 154,918.47 67,254.84 120,000.00 115,294.01 120,000.00 ‐0%
ACCOMMODATIONS TAX 2,494,535.14 2,323,443.40 1,239,096.05 2,558,503.00 2,152,523.37 2,558,503.00 ‐0%
PENALTIES & INTEREST 59,338.20 64,547.59 31,274.78 50,000.00 53,613.91 50,000.00 ‐0%
SALES TAX AUDIT ASSESSMENTS 4,917.78 13,299.69 36,286.79 50,000.00 45,000.00 50,000.00 ‐0%
EAGLE COUNTY SALES TAX 712,986.76 693,826.06 349,109.85 746,750.00 698,219.70 746,750.00 ‐0%
EAGLE COUNTY ROAD & BRIDGE 155,134.94 153,590.39 215,418.00 150,000.00 215,418.00 175,000.00 25,000.00 17%
VAA RETAIL SALES FEE 991,380.51 1,051,948.55 620,142.58 1,100,000.00 1,063,101.57 1,100,000.00 ‐0%
CIGARETTE EXCISE TAX 247,799.31 254,013.96 116,175.00 245,000.00 247,350.00 245,000.00 ‐0%
SALES TAX ‐ TOBACCO PRODUCTS 348,916.91 374,119.86 161,885.07 360,000.00 338,770.14 360,000.00 ‐0%
FRANCHISE FEE 487,722.68 504,749.07 270,409.13 440,000.00 463,558.51 460,000.00 20,000.00 5%
Total Revenue: 21,068,680.03 20,869,190.06 12,826,111.94 22,993,502.00 22,198,965.29 23,038,502.00 45,000.00 ‐28%
Total Category: 51000 ‐ Taxes:21,068,680.03 20,869,190.06 12,826,111.94 22,993,502.00 22,198,965.29 23,038,502.00 45,000.00
Category: 52000 ‐ Licenses and Permits
Revenue
LIQUOR LICENSES 6,130.00 9,103.75 3,276.25 7,500.00 6,552.50 7,500.00 ‐0%
BUSINESS LICENSES 177,400.00 228,125.00 111,725.00 185,000.00 223,450.00 185,000.00 ‐0%
CONTRACTOR'S LICENSES 21,270.00 23,280.00 13,425.00 18,625.00 26,850.00 18,625.00 ‐0%
TOBACCO/CIGARETTE LICENSES 1,250.00 3,000.00 1,000.00 1,750.00 2,000.00 1,750.00 ‐0%
BOOTING & TOWING LICENSES 300.00 450.00 300.00 600.00 600.00 600.00 ‐0%
BUILDING PERMITS 1,234,979.54 276,074.80 307,987.58 190,000.00 350,000.00 225,000.00 35,000.00 18%
ROAD CUT PERMITS 64,892.57 60,937.00 22,503.00 9,000.00 30,000.00 20,000.00 11,000.00 122%
MOBILE VENDOR CART PERMIT 175.00 700.00 525.00 700.00 1,050.00 700.00 ‐0%
Total Revenue:1,506,397.11 601,670.55 460,741.83 413,175.00 640,502.50 459,175.00 46,000.00 0%
Total Category: 52000 ‐ Licenses and Permit 1,506,397.11 601,670.55 460,741.83 413,175.00 640,502.50 459,175.00 46,000.00
Category: 53000 ‐ Intergovernmental
Revenue
CLICK IT OR TICKET ‐ ‐ ‐ 3,000.00 ‐ ‐ (3,000.00) ‐100%
BULLET PROOF VEST GRANT 2,134.69 2,143.44 ‐ 2,000.00 2,000.00 2,000.00 ‐0%
LEAF GRANT 12,148.60 ‐ ‐ 12,500.00 12,500.00 12,500.00 ‐0%
HIGH VISIBILITY GRANT 19,820.35 27,777.38 19,651.17 20,000.00 19,651.17 20,000.00 ‐0%
COLORADO POST GRANTS 34,396.66 3,441.40 25,912.72 45,000.00 25,912.72 45,000.00 ‐0%
AVONS BEST & BRIGHTEST 15,166.71 525.60 ‐ ‐ 22,000.00 25,000.00 25,000.00 0%
OTHER STATE GRANTS 78,840.69 24,317.89 67,898.55 ‐ 80,000.00 ‐ ‐0%
CONSERVATION TRUST 78,579.43 84,408.39 39,994.94 80,000.00 80,000.00 80,000.00 ‐0%
MOTOR VEHICLE REGISTRATION 26,062.64 23,745.55 14,336.14 26,000.00 28,000.00 26,000.00 ‐0%
HIGHWAY USERS TAX 197,952.30 192,134.66 109,916.19 191,805.00 191,000.00 191,805.00 ‐0%
SEVERANCE TAX 2,406.70 1,333.31 ‐ 2,400.00 2,400.00 2,400.00 ‐0%
RETAIL DELIVERY FEE ‐ 6,931.78 3,662.69 6,000.00 5,500.00 6,000.00 ‐0%
LOCAL INTERGOVERNMENTAL PA ‐ 7,500.00 ‐ ‐ ‐ ‐ ‐0%
OTHER GRANTS 1,306.87 810.00 ‐ ‐ ‐ ‐ ‐0%
Total Revenue:468,815.64 375,069.40 281,372.40 388,705.00 468,963.89 410,705.00 22,000.00 ‐100%
Total Category: 53000 ‐ Intergovernmental: 468,815.64 375,069.40 281,372.40 388,705.00 468,963.89 410,705.00 22,000.00
GENERAL FUND
ATTACHEMENT A
Parent Budget 2025 %
Account Number
2022
Total Activity
2023
Total Activity
2024
YTD Activity
2024
2024 2024 Projection
2025
2025
Increase /
(Decrease)
GENERAL FUND
Category: 54000 ‐ Charges for Services
Revenue
PHOTOCOPYING CHARGES ‐ ‐ ‐ 100.00 ‐ ‐ (100.00) ‐100%
LICENSE HEARING FEES ‐ ‐ ‐ 100.00 ‐ ‐ (100.00) ‐100%
OTHER FEES & CHARGES 1,035.43 528.94 703.72 3,500.00 950.00 2,500.00 (1,000.00) ‐29%
CC & PAPER FILING FEE 3,498.99 3,412.97 1,564.03 2,500.00 2,000.00 2,500.00 ‐0%
PLAN CHECK FEES 796,624.57 168,369.68 194,668.00 120,000.00 194,668.00 150,000.00 30,000.00 25%
DEVELOPMENT REVIEW FEES 20,355.00 6,029.00 13,713.48 15,000.00 15,000.00 15,000.00 ‐0%
ANIMAL CONTROL FEES ‐ ‐ ‐ 150.00 ‐ ‐ (150.00) ‐100%
IMPACT FEE ADMIN CHARGE 10,428.24 4,407.84 4,399.98 1,500.00 4,400.00 2,500.00 1,000.00 67%
POLICE REPORTS 798.35 811.66 462.00 1,000.00 900.00 1,000.00 ‐0%
OFF‐DUTY POLICE EMPLOYMNT 16,911.00 15,848.50 26,746.00 25,000.00 28,000.00 27,500.00 2,500.00 10%
FINGERPRINTING FEES 930.00 830.00 460.00 500.00 520.00 750.00 250.00 50%
V.I.N. INSPECTION FEES 1,695.00 2,195.42 1,440.21 2,000.00 2,000.00 2,000.00 ‐0%
FALSE ALARM FEES 25.00 30.00 20.00 75.00 50.00 75.00 ‐0%
MISC POLICE DEPT. FEES (DUI, ET 9,619.66 12,319.45 9,787.04 15,000.00 15,000.00 15,000.00 ‐0%
AVON REC CTR ADMISSIONS 1,159,000.47 1,312,760.88 851,457.00 1,140,000.00 1,277,185.50 1,200,000.00 60,000.00 5%
AVON REC CTR PROGRAM FEES 23,638.40 28,746.50 22,005.75 30,000.00 25,000.00 30,000.00 ‐0%
AVON REC CTR FACILITY RENTALS 18,904.22 25,321.69 13,691.37 18,000.00 18,000.00 20,000.00 2,000.00 11%
SALES OF MERCHANDISE 6,012.00 9,471.50 5,236.00 10,000.00 8,500.00 9,000.00 (1,000.00) ‐10%
OTHER SERVICES 8,802.00 10,786.00 6,476.00 8,800.00 8,500.00 8,800.00 ‐0%
FITNESS PROGRAM REVENUES 46,093.50 53,696.00 26,977.50 45,000.00 42,000.00 40,000.00 (5,000.00) ‐11%
SWIM TEAM REVENUE 47,876.70 55,186.52 29,210.16 48,000.00 50,000.00 48,000.00 ‐0%
PRIVATE LESSON REVENUE 14,943.00 19,364.50 18,426.00 30,000.00 22,000.00 25,000.00 (5,000.00) ‐17%
AVON REC CTR GIFT CARDS ‐ 350.00 ‐ 1,000.00 350.00 1,000.00 ‐0%
ADULT PROGRAM FEES 10,950.00 28,765.00 18,837.00 14,000.00 25,000.00 25,000.00 11,000.00 79%
CABIN EQUIPMENT RENTALS 35,976.12 38,325.14 9,508.36 35,000.00 28,525.08 35,000.00 ‐0%
RENTALS‐ATHLETIC FIELDS 500.00 220.00 360.00 240.00 360.00 240.00 ‐0%
CABIN CONCESSIONS ‐ 86.00 68.00 500.00 100.00 500.00 ‐0%
YOUTH PROGRAM REVENUES 129,331.17 162,977.27 139,136.43 150,000.00 175,000.00 180,000.00 30,000.00 20%
CONCESSION SALES 65,092.00 98,045.00 88,652.00 96,130.00 96,000.00 94,131.00 (1,999.00) ‐2%
SPONSORSHIPS ‐ 1,350.00 8,000.00 10,000.00 8,000.00 10,000.00 ‐0%
SPECIAL EVENT FEES 13,780.00 15,573.40 26,005.00 15,850.00 28,000.00 36,600.00 20,750.00 131%
SPECIAL EVENT ADMISSION FEES 2,637.00 1,851.00 ‐ 1,800.00 ‐ 500.00 (1,300.00) ‐72%
PAVILION RENTAL FEES 4,020.00 5,116.00 3,492.00 5,000.00 4,000.00 5,000.00 ‐0%
Total Revenue: 2,449,477.82 2,082,775.86 1,521,503.03 1,845,745.00 2,080,008.58 1,987,596.00 141,851.00 8%
Total Category: 54000 ‐ Charges for Services 2,449,477.82 2,082,775.86 1,521,503.03 1,845,745.00 2,080,008.58 1,987,596.00 141,851.00
Category: 55000 ‐ Fines and Forfeitures
Revenue
COURT FINES ‐ TRAFFIC 21,531.00 18,945.00 18,704.00 23,000.00 22,000.00 23,000.00 ‐0%
COURT FINES ‐ CRIMINAL 1,980.00 18,760.00 23,550.00 6,500.00 23,550.00 15,000.00 8,500.00 131%
COURT FINES ‐ PARKING 2,520.00 2,390.00 2,145.00 3,000.00 3,000.00 3,000.00 ‐0%
COURT COSTS 550.00 2,000.00 2,945.00 3,000.00 3,500.00 3,000.00 ‐0%
JURY FEES ‐ ‐ ‐ 100.00 ‐ 100.00 ‐0%
BOND FORFEITURES ‐ ‐ ‐ 100.00 ‐ 100.00 ‐0%
POLICE TRAINING SURCHARGE 1,610.00 2,610.00 2,595.00 3,000.00 2,595.00 3,000.00 ‐0%
Total Revenue: 28,191.00 44,705.00 49,939.00 38,700.00 54,645.00 47,200.00 8,500.00 0%
Total Category: 55000 ‐ Fines and Forfeiture 28,191.00 44,705.00 49,939.00 38,700.00 54,645.00 47,200.00 8,500.00
ATTACHEMENT A
Parent Budget 2025 %
Account Number
2022
Total Activity
2023
Total Activity
2024
YTD Activity
2024
2024 2024 Projection
2025
2025
Increase /
(Decrease)
GENERAL FUND
Category: 57000 ‐ Investment Earnings
Revenue
INTEREST EARNINGS 444,753.83 1,689,099.08 937,980.63 1,500,000.00 1,550,000.00 1,500,000.00 ‐0%
UNREALIZED GAIN (LOSS) ON INV (14,898.11) 71,450.79 4,101.81 ‐ ‐ ‐ ‐0%
Total Revenue:429,855.72 1,760,549.87 942,082.44 1,500,000.00 1,550,000.00 1,500,000.00 ‐0%
Total Category: 57000 ‐ Investment Earnings 429,855.72 1,760,549.87 942,082.44 1,500,000.00 1,550,000.00 1,500,000.00 ‐
Category: 58000 ‐ Other Revenues
Revenue
RECREATIONAL AMENITY FEES 335,324.98 349,154.62 177,069.12 330,000.00 354,138.24 345,000.00 15,000.00 5%
LEASE OF TOWN OWNED PROPER 4,617.00 4,350.00 ‐ 3,500.00 ‐ 3,500.00 ‐0%
RETURNED CHECK FEE 70.00 ‐ ‐ ‐ ‐ ‐ ‐0%
RESTITUTION & INSURANCE REIM 54,311.62 73,445.03 (1,955.35) ‐ (2,000.00) ‐ ‐0%
MISCELLANEOUS REFUNDS 21,910.33 590.29 6,230.00 ‐ 6,230.00 ‐ ‐0%
CONTRIBUTIONS & DONATIONS 6,000.00 10,583.18 ‐ ‐ ‐ ‐ ‐0%
DEVELOPMENT REIMBURSEMENT ‐ (563.50)‐ ‐ ‐ ‐ ‐0%
PARKING REVENUE ‐ 0.50 6,388.00 ‐ 6,388.00 7,500.00 7,500.00 0%
MISCELLANEOUS REIMBURSEME 37,832.97 47,926.71 ‐ ‐ ‐ ‐ ‐0%
MISC NONCLASSIFIED REVENUE 23,168.30 28,721.01 23,749.30 125,000.00 250,000.00 125,000.00 ‐0%
Total Revenue: 483,235.20 514,207.84 211,481.07 458,500.00 614,756.24 481,000.00 22,500.00 5%
Total Category: 58000 ‐ Other Revenues: 483,235.20 514,207.84 211,481.07 458,500.00 614,756.24 481,000.00 22,500.00
Category: 59000 ‐ Other Sources
Revenue
OPERATING TRANSFERS IN 494,593.00 600,473.00 ‐ 618,487.00 618,487.00 657,747.00 39,260.00 0%
OPERATING LEASE PROCEEDS 134,662.00 122,352.00 ‐ ‐ ‐ ‐ ‐0%
Total Revenue:629,255.00 722,825.00 ‐ 618,487.00 618,487.00 657,747.00 39,260.00 0%
Total Category: 59000 ‐ Other Sources: 629,255.00 722,825.00 ‐ 618,487.00 618,487.00 657,747.00 39,260.00
Report Total: 27,063,907.52 26,970,993.58 16,293,231.71 28,256,814.00 28,226,328.50 28,581,925.00 325,111.00 1%
ATTACHEMENT A