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Finance Committee Packet 2025.11.03NOVEMBER 3, 2025; FINANCE COMMITTEE MEETING AGENDA PAGE 1 FINANCE COMMITTEE MEETING AGENDA MONDAY, NOVEMBER 3, 2025 MEETING BEGINS AT 12:00 PM 100 MIKAELA WAY, AVON CO 81620 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF JULY 7,2025 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. GENERAL UPDATE ON 2025 FINANCIALS (CHIEF FINANCIAL OFFICER PAUL REDMOND) 5. GENERAL UPDATE ON 2026 PROPOSED BUDGET (CHIEF FINANCIAL OFFICER PAUL REDMOND) 6. DISCUSSION: BUDGET POLICIES (CHIEF FINANCIAL O FFICER PAUL REDMOND) 7. DOWNTOWN DEVELOPMENT AUTHORITY PLANNING AREA A FINANCIAL PROJECTIONS (CHIEF FINANCIAL OFFICER PAUL REDMOND) 8. ADJOURNMENT 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 Minutes July 7, 2025 DRAFT Page 1 of 3 FINANCE COMMITTEE MEETING MINUTES MONDAY, JULY 7, 2025 1. ROLL CALL Present in Person: Committee members John Widerman, Lisa Post, Steve Coyer, Markian Fedeschuk, Gregg Cooper, Cathy Krajicek and Rick Sudekum. Clark Rogers joined the meeting a few minutes after the roll call at 12:08 p.m. Present Virtually: Councilor Lindsay Hardy, Town Manager Eric Heil joined virtually at 12:20 p.m. Absent: Councilor Kevin Hyatt Staff: Deputy Town Manager Patty McKenny, Chief Finance Officer Paul Redmond, Financial Analyst Chase Simmons and Chief Administrative Officer Ineke de Jong as Secretary. The meeting was called to order by CFO Paul Redmond at 12:01 p.m. 2. APPROVAL OF MAY 5TH, 2025 MINUTES Committee member Lisa Post moved to approve the minutes. Committee member John Widerman seconded that motion and it passed 4 to 0 with the 4 following committee members voting: John Widerman, Lisa Post, Steve Coyer and Markian Fedeschuk. The 3 new members abstained from the vote since they just joined the committee today. 3. PUBLIC COMMENT There was no public comment. 4. NEW COMMITTEE MEMBERS: INTRODUCTION OF NEW FINANCE COMMITTEE MEMBERS (CFO PAUL REDMOND) Chief Finance Officer Paul Redmond welcomed three new members, Gregg Cooper, Rick Sudekum III and Cathy Krajicek. The group went around the table for short introductions. Committee Member Clark Rogers joined the meeting at 12:08 p.m. 5. PUBLIC HEARING: EARLY CHILDHOOD EDUCATION CENTER FUNDING AGREEMENT (CFO PAUL REDMOND) Chief Financial Officer Paul Redmond re-introduced the plans for the Early Childhood Education Center which broke ground last month (June 2025). He recapped what the school will provide and Avon’s contribution and Avon’s rights in return for those contributions. The Avon DDA plan has rules for how projects are being done if they are financed by the DDA. The Town offered $400K in funding for the build of this center, coming from Avon DDA funds and paid out over a 2-year period. The Avon DDA and PZC must discuss and approve it. The Finance committee has a public hearing today at this meeting to review the funding agreement and as a next step this is going to the Town Council at the July 22 regular meeting to approve. Some questions & comments raised by the committee: Finance Committee Meeting Minutes July 7, 2025 DRAFT Page 2 of 3 (1) This seems like the right fit and a great fit for the Town (2) This will serve many Avon community members and is planned at a great location. Town Manager Eric Heil joined the meeting at 12:20 p.m. There were no public comments. Committee member Clark Rogers moved to approve the funding agreement. Committee member Cathy Krajicek seconded that motion and it passed 8 to 0. 6. WORK SESSION: PRESENTATION ON 15 SUN ROAD (PAUL REDMOND, CHIEF FINANCE OFFICER) Chief Finance Officer Paul Redmond presented plans for redevelopment at the 15 Sun Road Site and said staff is currently going to RFP for a transportation study. Along with that, there will be a design study as well as a fiscal analysis to follow up on the former two. He expressed that while we are working in the early stages of this redevelopment, the Town learned that the 15 Sun Rd lot has come up for sale. The Town has decided to go under contract and purchase the lot so that the Town has control over it when this is ready for redevelopment. The Town has looked at different financing options to finance the purchase which are laid out in the memo. Because there is a lease in place for the Walgreens building on this site, the annual rent payments and other income we can collect is estimated to be about $500K a year. Some questions & comments raised by the committee: (1) Is the Town going into the rental business? (2) What happens if Walgreens wants to renew their lease in 2037? How would/could we incentivize them to move elsewhere? Relocating them would come at a significant cost but it could help accelerate the rest of the redevelopment. (3) What happens if Walgreens want to close up shop before 2037? Staff confirmed they would have to buy out the lease. (4) It is no secret that Walgreens is going through some turmoil in their stores (5) Would the Town take $1.5M from the general fund? (6) The Town has an A+ bond rating. Would a reduction in reserves to finance this acquisition jeopardize our A+ bond rating? Staff will follow up with Piper Sandler to look into that. (7) Is the Town of Avon the best credit entity to make this purchase? Or would it be better for the DDA to make this purchase and be the owner of this asset? This asset would be cash neutral, should it be owned by DDA if the DDA’s creditworthiness is equal? Staff said they will ask these questions but suspect that in order to get best interest rate, having the Finance Committee Meeting Minutes July 7, 2025 DRAFT Page 3 of 3 Town back the loan is probably best, but the Town Manager and CFO will check with Piper Sandler. (8) Acquiring this site, is in line with Sun Road Redevelopment plan, but every step will be expensive. There is a big financial cost to realize this project and create housing and a regional transit hub. (9) Are we having the land appraised? And will the appraisers run a scenario where Walgreens does not renew their lease in 2037, what is the appraised value then. Staff will ask that question. (10) The scenario of the $5.5 M illion COP bonds, where the property can carry itself seems like a great option. (11) Did the Town look at 30yr COP’s in addition to the 20yr COP’s. (12) What will happen with the USPS site and relocation of USPS. The Town met with them last week and the postal service is aware of the redevelopment plans and the Town growing in size and demands with the Village at Avon and actively pursuing community housing so USPS will outgrow its current capacity in the future. A combination of those two and others, may help advocate for a different location and possibly remote boxes. The conversation with Town Staff has been encouraging and Town is speaking with the right person to explore ideas and work collaboratively on future needs. (13) A lot of good work has been done and ownership of this lot is worth a shot for the Town. Committee Member Clark Rogers made a motion to support the purchase of the 15 Sun Road Lot. Committee Member Rick Sudekum seconded that motion and it passed 8 to 0. 7. NEXT COMMITTEE MEETING DATE Monday, September 8th at 12:00 p.m. Staff said we are about to start budget season and will look at revenue projections for 2026 and other budget items for 2026. 8. ADJOURNMENT Committee Chair John Widerman moved to adjourn the meeting. Committee member Lisa Post seconded that motion and the meeting adjourned, the time was 12:54 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. 970-748-4044 dstockdale@avon.org TO: Honorable Mayor Tamra N. Underwood and Council Members FROM: Dean Stockdale, Senior Accountant RE: Financial Report – August 2025 & September 2025 data DATE: October 28th, 2025 SUMMARY: This report presents the revenues for sales, accommodations, tobacco and cigarette, and short-term rental tax for August 2025 and the recreation fees, real estate transfer tax, and use tax for CH revenues for September 2025. BACKGROUND: The percentage variance, or comparative change is reflected in the analysis portion of this report in respect to each individual section for August revenues in 2025 and September 2025. 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 SUMMARY: Tax Revenue Comparison – 2024 v 2025: All taxes except the Cigarette Tax are favorable for 2025 compared to 2024. Below is a table which reflects the dollar change and percentage variance. Total revenue for 2025 is reflecting a favorable variance to 2024. Adopted Budget 2025 v Actual 2025: All taxes except Sales Tax and STR Tax for CH reflect an unfavorable variance over the 2025 budget. Rec Center revenue is favorable compared to the 2025 budget. Total revenue for 2025 is reflecting a favorable variance to the 2025 budget. Below is a table which reflects the dollar change and percentage variance. 2024 v 2025 YTD REVENUE COMPARISON 2024 2025 Dollar Variance Percentage Variance Sales Tax $8,606,808.74 $8,807,191.89 $200,383.15 2.33% Acc. Tax $1,542,308.60 $1,638,358.36 $96,049.76 6.23% STR Tax for CH $696,608.19 $753,122.67 $56,514.48 8.11% Tobacco Tax $217,620.74 $224,110.66 $6,489.92 2.98% Cigarette Tax $160,635.54 $141,081.00 ($19,554.54) (12.17%) Use Tax for CH $0.00 $234,553.93 $234,553.93 N/A Rec Admissions $926,392.25 $932,676.75 $6,284.50 0.68% Rec Program Fees $360,051.13 $382,663.64 $22,612.51 6.28% TOTAL $12,510,425.19 $13,113,758.90 $603,333.71 4.82% Page 2 of 11 REVENUE ANALYSIS: Sales Tax: Revenues – August 2025: August sales tax revenues totaled $963,109. This is an increase of $52,379 or 5.75% compared to August 2024 sales tax revenue of $910,730. AUGUST 2024 v AUGUST 2025 SALES TAX COMPARISON BY INDUSTRY August 2024 August 2025 Increase/Decrease Home/Garden $86,302.07 $81,461.20 ($4,840.87) Grocery/Specialty/Health $206,964.56 $221,979.26 $15,014.70 Sporting Goods Retail/Rental $50,334.95 $65,578.90 $15,243.95 Miscellaneous Retail $29,268.46 $24,122.24 ($5,146.22) Accommodations $156,422.42 $151,575.77 ($4,846.65) Restaurants/Bars $199,152.50 $195,888.76 ($3,263.74) Other $9,445.99 $17,645.22 $8,199.23 Service Related $19,715.95 $23,991.85 $4,275.90 Liquor Stores $25,796.06 $23,086.19 ($2,709.87) E-Commerce Retail $74,893.62 $77,362.88 $2,469.26 Manufacturing/Wholesale $11,245.43 $27,800.08 $16,554.65 Construction Related Services $32,186.65 $35,577.22 $3,390.57 Digital Media Suppliers/Sellers $6,965.01 $13,655.83 $6,690.82 Commercial/Industrial Equipment $879.95 $2,301.09 $1,421.14 Special Events $1,156.40 $1,082.57 ($73.83) TOTAL $910,730.02 $963,109.06 $52,379.04 2025 REVENUE COMPARISON – BUDGET V ACTUAL Budget Actual Dollar Variance Percentage Variance Sales Tax $8,558,789.54 $8,807,191.89 $248,402.35 2.90% Acc. Tax $1,764,644.97 $1,638,358.36 ($126,286.61) (7.16%) STR Tax for CH $718,638.57 $753,122.67 $34,484.10 4.80% Tobacco Tax $244,348.83 $224,110.66 ($20,238.17) (8.28%) Cigarette Tax $162,235.46 $141,081.00 ($21,154.46) (13.04%) Use Tax for CH $375,000.00 $234,553.93 ($140,446.07) (37.45%) Rec Admissions $832,627.82 $932,676.75 $100,048.93 12.02% Rec Program Fees $347,384.67 $382,663.64 $35,278.97 10.16% TOTAL $13,003,669.86 $13,113,758.90 $110,089.04 0.85% Page 3 of 11 Sales Tax: July 2025 Budget v Actual Collections: August 2025 sales tax revenues totaled $963,109. This is an increase of $47,521 over the August 2025 estimate of $915,58. This is 5.19% above the adopted 2025 budget (based on a 3-year average). AUGUST 2025 BUDGET v ACTUAL COLLECTIONS - SALES TAX 2025 Budget 2025 Actual Dollar Variance Percentage Variance August $915,587.36 $963,109.06 $47,521.70 5.19% Accommodation Tax: Revenues – August 2025: Accommodation tax revenues totaled $154,522 for the month of August. This is a decrease of $4,627 or 2.91% compared to August 2024 accommodation tax revenues, which totaled $159,149. Accommodation tax collections by industry type for August 2025 compared to August 2024 reported an increase for Hotel, while Vacation Rentals and Time Share were down. AUGUST 2024 v AUGUST 2025 ACCOMMODATION TAX COMPARISON BY INDUSTRY August 2024 August 2025 Increase/(Decrease) Timeshares $23,616.43 $18,487.17 ($5,129.26) Hotels $67,379.36 $72,406.16 $5,026.80 Vacation Rentals $68,154.19 $63,628.85 ($4,525.34) TOTAL $159,149.98 $154,522.18 ($4,627.80) 863,504.26 939,057.45 891,159.97 910,730.02 $963,109.06 8.75% -5.10% 2.20% 5.75% $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 2021 2022 2023 2024 2025 2021-2025 August Sales Tax Revenue Trend Page 4 of 11 August 2025 Budget v Actual Collections: August 2025 accommodation tax revenues totaled $154,522. This is a decrease of $17,780 over the August 2025 estimates of $172,302. This is 10.32% below the adopted 2025 budget (based on a 3-year average). AUGUST 2025 BUDGET v ACTUAL COLLECTIONS - ACCOMMODATIONS TAX 2025 Budget 2025 Actual Dollar Variance Percentage Variance August $172,302.31 $154,522.18 ($17,780.13) (10.32%) Short Term Rental Tax for CH: Revenues – August 2025: STR Tax for Community Housing totaled $69,256 for the month of August. This is a decrease of $822 or 1.17% compared to August 2024. The Westin Hotel is classified as a hotel in our MuniRevs system, although they are zoned as residential. AUGUST 2024 v AUGUST 2025 STR TAX FOR CH COMPARISON BY INDUSTRY August 2024 August 2025 Increase/(Decrease) Timeshares $11,808.22 $9,243.58 ($2,564.64) Hotels $26,134.20 $30,308.73 $4,174.53 Vacation Rentals $32,136.32 $29,704.37 ($2,431.95) TOTAL $70,078.74 $69,256.68 ($822.06) 186,774 175,378 157,269 159,150 154,522 -6.10% -10.33% 1.20% -2.91% $0 $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 $225,000 $250,000 $275,000 2021 2022 2023 2024 2025 2021-2025 August Accommodation Tax Revenue Trend Page 5 of 11 Tobacco & Cigarette Tax: Revenues – August 2025: Tobacco tax revenues totaled $30,003 and cigarette tax revenues totaled $18,393 for August 2025. Compared to August 2024 revenues, this is an increase of $4,059 for tobacco tax revenues, which totaled $25,944 and a decrease of $3,74 for cigarette tax revenues, which totaled $21,864. 26,253 32,754 38,240 25,944 30,004 24.76% 16.75% -32.15% 15.65% - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 2021 2022 2023 2024 2025 2021-2025 August Tobacco Tax Revenue Trend 23,967 24,503 26,745 21,864 18,393 2.24%9.15% -18.25% -15.88% - 5,000 10,000 15,000 20,000 25,000 30,000 2021 2022 2023 2024 2025 2021-2025 August Cigarette Excise Tax Revenue Trend Page 6 of 11 August 2025 Adopted Budget v Actual Collections: August 2025 tobacco and cigarette tax revenues totaled $30,003 and $18,393, respectively. This is a decrease of $3,626 over the August 2025 budget for tobacco tax, which is $33,630 and a decrease of $5,718 over the August 2025 budget for cigarette tax estimates, which is $24,111 which is based on a 3-year average. AUGUST 2025 BUDGET v ACTUAL COLLECTIONS - TOBACCO AND CIGARETTE TAX REVENUES 2025 Budget 2025 Actual Dollar Variance Percentage Variance Tobacco $33,630.07 $30,003.72 ($3,626.35) (10.78%) Cigarettes $24,111.60 $18,393.00 ($5,718.60) (23.72%) Total ($9,344.95) Use Tax for Community Housing: Revenues – September 2025: There was no September 2025 use tax for community housing. AUGUST 2025 BUDGET v ACTUAL COLLECTIONS – USE TAX REVENUES 2025 Budget 2025 Actual Dollar Variance Percentage Variance Use Tax for CH $41,666.67 $0.00 ($41,666.67) (100.00%) Page 7 of 11 Real Estate Transfer Tax: Revenues – September 2025: September 2025 real estate transfer tax totaled $284,243. Compared to September 2024, which totaled $821,720, this is a decrease of $537,477. This is a decrease of $82,169 over the September 2025 budget which was based on a 3-year average. 2025 BUDGET v ACTUAL COLLECTIONS – REAL ESTATE TRANSFER TAX REVENUES 2025 Budget 2025 Actual Dollar Variance Percentage Variance Real Estate Transfer Tax $366,413.27 $284,243.32 ($82,169.95) (22.43%) $573,822 $218,696 $387,859 $821,721 $284,243 -61.89% 77.35% 111.86% -65.41% $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 2021 2022 2023 2024 2025 Real Estate Transfer Tax September Revenue Trends Page 8 of 11 Recreation Center Fees: Revenues – September 2025 Admissions & Program Fees: Recreation admission revenues for September 2025 totaled $83,348 is an increase of $6,547 compared to September 2024 which totaled $76,801. This is $13,199 above the adopted 2025 budget estimates of $70,149. Recreation program fee revenues for September 2025 totaled $32,543. This is a decrease of $6,598 compared to 2024, which totaled $39,141. This is $7,000 below the adopted 2025 budget estimates of $39,544, which is calculated based on a 3-year average. 62,217 67,541 72,093 76,801 83,349 8.56%6.74%6.53% 8.53% - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 2021 2022 2023 2024 2025 Recreation Admissions September Revenue Trends $28,029 $38,196 $33,070 $39,142 $32,544 36.27% -13.42% 18.36% -16.86% $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 2021 2022 2023 2024 2025 Recreation Program Fees September Revenue Trends Page 9 of 11 Real Estate Transfer Tax: Revenues 2025 2025 BUDGET/PRIOR YEAR v ACTUAL COLLECTIONS – REAL ESTATE TRANSFER TAX REVENUES 2025 Budget 2025 Actual Dollar Variance Percentage Variance Real Estate Transfer Tax $3,337,155.51 $2,751,928.45 ($585,227.06) (17.54%) 2024 Actual 2025 Actual Dollar Variance Percentage Variance Real Estate Transfer Tax $5,340,187.76 $2,751,928.45 ($2,588,259.31) (48.47%) New and Renewed Business and STR Licenses – 2024 v 2025: The total number of 2025 business licenses issued through September was 836. This was down 34 licenses or 3.9% for the year to date. The total number of STR licenses issued through September was 147. Compared to 2024 the STR licenses were up 25 licenses or 20.5% for the year to date. 2024 v 2025 – BUSINESS AND STR LICENSES – YEAR TO DATE 2024 2025 License Variance Percentage Variance Business License - Vendor 636 615 (21) (3.3%) Business License – Fixed Location 155 158 3 1.9% Business License – Home Occupation 49 38 (11) (22.4%) Business License – Special Event 30 25 (5) (16.7%) TOTAL BUSINESS LICENSES 870 836 (34) (3.9%) STR License 122 147 25 20.5% Page 10 of 11 - 100.00 200.00 300.00 400.00 500.00 600.00 700.00 800.00 Business License - Vendor Business License - Fixed Location Business License - Home Occupation Business License - Special Event Business Licenses Issued 1/1 -9/30 2023 2024 2025 0 20 40 60 80 100 120 140 160 STR License STR Licenses Issued 1/1 -9/30 2022 2023 2024 Page 11 of 11 EXPENDITURES: SEPTEMBER 2025 General Fund YTD Actuals v 2025 Budget: General Fund expenditures through September 2025 total $17,832,706 which is 67.78% 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 2025 Budget: Mobility Fund expenditures through September 2025 total $1,802,555 which is 63.64% of the total adopted budget. These expenditures include the cost for wages, health benefits, consulting services, and utilities. Fleet Maintenance YTD Actuals v 2025 Budget: Fleet Maintenance expenditures through September 2025 total $1,741,657 which is 77.27% of the total adopted budget. These expenditures include wages, health benefits, fuel, vehicle maintenance, utilities, equipment, and operating supplies. Capital Projects Fund YTD Actuals v 2025 Budget: The Capital Improvement expenditures through September 2025 total $5,738,665 which is 52.58% of the total adopted budget. These expenditures were made up of primarily the Public Works garage and Recycling Center project. Thank you, Dean 970.748.4088 predmond@avon.org TO: Finance Committee Members FROM: Paul Redmond, Chief Financial Officer RE: 2026 Proposed Budget DATE: October 28, 2025 SUMMARY: The 2026 budget was presented to Avon Town Council and the Avon community at the October 21, 2025 Budget Retreat. The focus of this budget retreat was to review all Funds for the Town and changes from 2025 to 2026. The budget is structured to meet the goals, priorities and directives of Council on behalf of the Avon community. Overall, Avon’s finances are healthy, and the budget supports basic year-to-year operations. Budget challenges for 2026 are primarily a flattening of sales and accommodations tax revenues and the response to present equally flat changes in expenses. Expenses increase year to year even without any additions to Staff, programs or projects because (1) there are reoccurring supply and equipment costs which increase by inflation, (2) personnel costs increase to remain competitive and support retention to avoid the high cost of employee turn-over and (3) health care costs continue to increase at a rate that is 2-4 times the rate of inflation. Staff have managed departmental expenses conservatively to preserve current staffing and service levels while delivering a balanced budget. Conservative budgeting practices have kept fund balances strong. The CIP Fund includes many projects, and we continue to prioritize and adjust capital improvement projects to balance our financial resources with realistic schedules and reasonable workloads. 2026 BUDGET: Every year a budget is presented to Council which balances the projected operating revenues for the next year with projected operating expenses. Staff budgeted both revenues and expenses conservatively. Actual revenues usually come in higher than budgeted. Expenses are budgeted for 100% employment for all positions throughout the year; however, Avon is never 100% staffed so we typically realize some personnel savings. These conservative budgeting practices and year end savings illustrate the fiscal responsibility of Avon. After the Budget Retreat the General Fund shows a deficit for 2026 of $42,500. Council approved several contributions to our Community Partners, leading to this shortfall. Contributions include donations to the Rodeo Ice Rink and Tree Top Advocacy Center. Avon maintains fiscal stability and ensures that resources are available for essential services. Avon’s reserves have increased dramatically over the last several years largely due to the conservative budgeting approach and the post pandemic demand, increasing sales tax revenues. From reserves, Council may approve additional expenditures from the unrestricted reserves whenever it deems them beneficial and appropriate for the Avon community. We recommend that use of unrestricted general fund reserves may be appropriate to maintain existing staffing levels through temporary downturns or for one-time expenditures that are not re-occurring every year. REVENUE PROJECTIONS: Revenue projections were presented to Council at the September 23rd meeting. The projections are modest and conservative as revenues normalize post COVID. Inflation is moving closer to the Federal Reserve’s target rate of 2%. Considering a more normalized economy sales tax projections are consistent with current year budget. However, the slight increase in sales tax projections is driven by new ACE Hardware and Phase II of Frontgate reaching full occupancy. Page 2 of 3 Economic Development: We believe it is timely to raise the topic of considering proactive strategies to improve Avon’s economy. A flat revenue budget is not sustainable, and we do not foresee any economic growth on the horizon for the next several years. The most readily available economic growth is basic “heads in beds” or seeking to boost occupancy rates at our Avon lodges. Specific near term activities include: (1) rejoining Destimetrics to have more lodging data (occupancy, room rates, booking forecasts), (2) increased marketing and shifting from “Avon’s Community Values” to “Come Visit Avon”, and (3) exploring a potential spring and fall 3 day bluegrass festival projected to bring in 5,000 to 6,000 people when our occupancy rates are low. Rejoining Destrimetrics = $35,000 Increase Marketing = $50,000 Host Three Day Ticketed Festival = breakeven at 4,000 tickets PERSONNEL GROWTH COST: "The overall personnel budget has grown as the number of full-time positions has risen in recent years, and competitive salary increases have been implemented to support recruitment and retention. The year-over-year increase reflects the addition of staff to maintain core governmental services and expand focus on events, sustainability, community housing, and parking management. The local labor market is highly competitive because many employers compete for the same labor pool, and high housing costs create a significant barrier to successfully recruiting out-of-county employees. Avon is budgeting for a merit increase pool of 3% of the overall personnel salary expenses, which is down from 4% in 2025. The reduction of the merit increase pool is due to a decrease in inflation. The draft budget includes salary increase pool of 3% of overall personnel salary expense for the second half of 2026. In summary, next year’s staffing remains similar to 2025. CAPITAL IMPROVEMENT PROJECTS AND LONG-RANGE PLAN: The Capital Projects Fund balance for the next five years is healthy with at least $1 million. Avon’s policy is to keep a minimum $1 million in the CIP fund balance. The General Fund unrestricted reserves are also considered as sources of funds for payments on capital improvements. The Town’s need for capital improvements will include several new projects as well as an established and robust schedule for the maintenance of existing facilities and roads/streets infrastructure, transitioning fleet purchases from lease purchase arrangements to cash purchases and improvements to town owned parks. COMMUNITY HOUSING FUND: Avon voters approved a 2% short-term rental tax in November, 2021. Revenues are projected to increase to $1,013,112 in the 2026 Budget. The 1.2% increase stems primarily from issuing short-term licenses following the completion of the Frontgate and One Riverfront buildings. Several of the local Short-Term rental companies based in Avon are increasing their marketing campaigns to increase visitors to the Avon and Beaver Creek area. These revenues are dedicated to community housing projects and staff is reviewing several future projects. Avon will continue to fund the Mi Casa/Good Deeds and MEHOP programs in 2026 by approximately $2.4 million. 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 Page 3 of 3 of projects, water attorney fees and irrigation ditch maintenance. The water surcharges coming into the Water Fund are consistent each year. Water Fund revenues in 2026 remain flat as we continue to receive the water surcharges. New in 2025, Avon began collecting our own water tap fees. These are charged at the same time as building permits. In the past, Eagle River Water and Sanitation District collected these fees when they collected their District’s tap fees. FLEET MAINTENANCE FUND: The Fleet Maintenance Fund operates as an enterprise, accounting for services financed and managed like private businesses. It recovers costs through user charges for services provided to Town departments, other government agencies, and up to 10% private clients. When appropriate, Avon may allocate general tax revenues to the Fleet Maintenance Fund to help ensure a positive annual net income. The Fleet labor billing rates increased by 7% in 2025. The rates will remain the same in 2026. OTHER FUNDS: The Town’s other funds are established to segregate revenues from specific sources for specific purposes, including the Community Enhancement Fund and Exterior Energy Offset Fund are all projected to remain flat in with no increase in 2026. After reducing the Disposable Paper Bag Fee in 2024 we are projecting this fund to increase by $10,000 in 2026. In 2026, the Disposable Paper Bag Fee will fund the Town Cleanup on a different day than the Sustainability Fair. Thank you, Paul ATTACHMENTS: Attachment A: Fund Summaries 3%/3% Original Budget Proposed Actual Budget Amendment Budget 2024 2025 2025 2026 REVENUES Taxes 20,871,834 21,040,289$ 21,040,289$ 21,657,039$ Licenses and Permits 1,251,817 459,175 459,175 477,250 Intergovernmental 1,395,585 1,532,455 1,532,455 1,481,843 Charges for Services 2,674,191 2,090,036 2,081,896 2,338,636 Fines and Forfeitures 86,854 52,200 52,200 187,200 Investment Earnings 2,032,253 1,500,000 1,500,000 1,500,000 Other Revenue 484,990 481,000 481,000 958,462 Total Operating Revenues 28,797,524 27,155,155 27,222,015 28,600,430 Other Sources Transfer-In From Capital Projects Fund & Equipment Replacement 618,487 657,747 657,747 722,998 Total Other Sources 618,487 657,747 657,747 722,998 TOTAL REVENUES 29,416,011$ 27,812,902$ 27,879,762$ 29,323,428$ EXPENDITURES General Government, HR and Finance 7,514,717$ 7,564,478$ 7,571,595$ 7,816,391$ Community Development 1,202,610 996,414 997,914 1,041,680 Public Safety 6,341,901 6,421,938 6,429,022 6,763,994 Public Works 7,095,452 8,374,150 8,480,027 8,312,848 Recreation 2,707,394 3,205,344 3,205,344 3,428,262 Capital Expenditure from Unreserved Fund Balance 2,690,000 800,000 2,200,000 - Total Operating Expenditures 27,552,074 27,362,324 29,057,726 27,363,174 Other Uses Transfers-Out to Debt Service - - - 502,502 Transfers-Out to Mobility Fund 1,500,000 1,500,000 1,500,000 1,500,000 Transfers-Out to Capital Projects Fund (Rec Pool) - - - 2,500,000 Transfers-Out to Fleet Maintenance Fund 155,000 - - - Total Other Uses 1,655,000 1,500,000 1,500,000 4,502,502 TOTAL EXPENDITURES 29,207,074 28,862,324 30,557,726 31,865,676 NET SOURCE (USE) OF FUNDS 208,937 (1,049,422) (2,677,964) (2,542,248) FUND BALANCES, Beginning of Year 21,941,899 19,210,754 22,150,836 19,472,872 FUND BALANCES, End of Year 22,150,836$ 18,161,332$ 19,472,872$ 16,930,624$ FUND BALANCES: Restricted For: 3% TABOR Emergency Reserve 980,080$ 865,870$ 916,732$ 865,895$ Unassigned: 22% Minimum Reserve Balance 6,425,556 6,349,711 6,722,700 6,349,898 Undesignated, Unreserved 14,745,200 10,945,751 11,833,440 9,714,830 TOTAL FUND BALANCES 22,150,836$ 18,161,332$ 19,472,872$ 16,930,624$ Fund Summary MUNICIPAL SERVICES General Fund #10 Original Budget Proposed Actual Budget Amendment Budget Description 2024 2025 2025 2026 Taxes: General Property Tax 2,967,810$ $2,908,568 $2,908,568 3,165,318$ General Property Tax - Delinquencies - 500 500 500 General Property Tax - Interest 3,616 1,900 1,900 1,900 General Property Tax - Abatements 3,534 - - - Specific Ownership Tax 161,888 130,000 130,000 130,000 Sales Tax 13,173,452 13,145,818 13,145,818 13,505,818 Utility Tax 113,191 130,000 130,000 130,000 Accommodation Tax 2,230,500 2,458,503 2,458,503 2,458,503 Penalties and Interest 78,857 50,000 50,000 50,000 Sales Tax Audit Assessments 36,287 50,000 50,000 50,000 VAA Retail Sales Fee 1,083,164 1,100,000 1,100,000 1,100,000 Cigarette Excise Tax 239,593 245,000 245,000 245,000 Tobacco Add-on Sales Tax 314,547 360,000 360,000 360,000 Franchise Fees 465,395 460,000 460,000 460,000 Total Taxes 20,871,834 21,040,289 21,040,289 21,657,039 Licenses and Permits: Liquor Licenses 6,701 7,500 7,500 7,500 Business Licenses 262,105 185,000 185,000 200,000 Contractor's Licenses 29,105 18,625 18,625 20,000 Tobacco/Cigarette Licenses 2,750 1,750 1,750 1,750 Booting/Towing Licenses 450 600 600 600 Building Permits 866,729 225,000 225,000 225,000 Road Cut Permits 83,253 20,000 20,000 20,000 Mobile Vendor Cart Permits 724 700 700 2,400 Total Licenses and Permits 1,251,817 459,175 459,175 477,250 Intergovernmental: Federal Grants: Click It or Ticket - - - - Ballistic Vests Grant 2,166 2,000 2,000 2,000 State Grants - LEAF Grant - 12,500 12,500 12,500 High Visibility Grant 37,975 20,000 20,000 25,000 POST I70 Training Grants 25,912 45,000 45,000 45,000 DOLA Grants - 100,000 100,000 - Avon's Best and Brightest - 25,000 25,000 25,000 Other State Grants 89,848 100,000 100,000 100,000 Local Government/Other Agency Other Local Grants - - - - Revenue Detail MUNICIPAL SERVICES General Fund Original Budget Proposed Actual Budget Amendment Budget Description 2024 2025 2025 2026 Revenue Detail MUNICIPAL SERVICES General Fund State/County Shared Revenue: Conservation Trust 73,445 80,000 80,000 80,000 Motor Vehicle Registration 24,597 26,000 26,000 26,000 Highway User's Tax 223,046 191,805 191,805 236,158 County Sales Tax 691,413 746,750 746,750 746,785 Road & Bridge Fund 219,202 175,000 175,000 175,000 State Severance Tax 509 2,400 2,400 2,400 Retail Delivery Fee 7,472 6,000 6,000 6,000 Total Intergovernmental 1,395,585 1,532,455 1,532,455 1,481,843 Charges for Services: General Government: Photocopying Charges - - - - License Hearing Fees - - - - Other Fees and Charges 1,266 2,500 2,500 2,500 Credit Card and Paper Filing Fees 3,827 2,500 2,500 2,500 Community Development: Plan Check Fees 556,653 150,000 150,000 150,000 Design Review Fees 28,684 45,000 45,000 170,000 Animal Control Fees - - - - Fire Impact Fee Administration Fees 8,100 2,500 2,500 2,500 Public Safety: Police Reports 616 1,000 1,000 1,000 Police Extra Duty 33,676 27,500 27,500 40,000 Fingerprinting Fees 650 750 750 750 VIN Inspection Fees 2,625 2,000 2,000 2,000 False Alarm Fees/Misc Police Dept Fees 20 75 75 75 DUI Reimbursement 12,556 15,000 15,000 15,000 Avon Recreation Center: Admission Fees 1,431,786 1,254,000 1,254,000 1,350,000 Program Fees 31,900 33,000 33,000 30,000 Facility Rentals 22,555 22,000 22,000 22,000 Merchandise Sales 7,642 9,000 9,000 9,000 Other Recreation Services 8,972 8,800 8,800 8,800 Fitness Program Revenues 43,072 42,000 42,000 42,000 Swim Team Revenue 52,299 52,800 52,800 52,800 Private Lessons 23,344 27,500 27,500 20,000 Avon Rec CTR Gift Cards - 1,000 1,000 500 Original Budget Proposed Actual Budget Amendment Budget Description 2024 2025 2025 2026 Revenue Detail MUNICIPAL SERVICES General Fund General Recreation: Adult Program Revenues 34,407 27,500 27,500 34,000 Cabin Equipment Rentals 34,902 35,000 35,000 35,000 Athletic Field Rentals 840 240 240 240 Cabin Concessions 72 500 500 500 Youth Program Revenues 199,902 180,000 180,000 200,000 Special Events: Consession Sales 92,941 94,131 94,131 94,131 Sponsorships 9,000 10,000 10,000 10,000 Event Fees 26,630 36,600 35,100 36,200 Special Event Admission Fees 982 500 500 500 Pavillion Rentals 4,272 6,640 - 6,640 Total Charges for Services 2,674,191 2,090,036 2,081,896 2,338,636 Fines and Forfeitures: Court Fines - Traffic 41,084 23,000 23,000 158,000 Court Fines - Criminal 32,950 20,000 20,000 20,000 Court Fines - Parking 3,390 3,000 3,000 3,000 Court Costs 4,955 3,000 3,000 3,000 Jury Fees - 100 100 100 Bond Forfeitures - 100 100 100 Police Training Surcharge 4,475 3,000 3,000 3,000 Total Fines and Forfeitures 86,854 52,200 52,200 187,200 Investment Earnings:2,032,253 1,500,000 1,500,000 1,500,000 Other Revenues: Recreational Amenity Fees 351,745 345,000 345,000 345,000 Lease of Town-Owned Property 4,650 3,500 3,500 414,462 Restituion and Insurance Reimbursemnet 16,769 - - 20,000 Parking Revenue 10,474 7,500 7,500 12,000 Miscellaneous Reimbursemnets 29,910 - - 30,000 Miscellaneous Nonclassified Revenues 71,442 125,000 125,000 137,000 Total Other Revenues 484,990 481,000 481,000 958,462 TOTAL REVENUES 28,797,524$ 27,155,155$ 27,147,015$ 28,600,430$ Original Budget Proposed Actual Budget Amendment Budget Description 2024 2025 2025 2026 General Government: Mayor and Town Council 280,782$ $280,813 $280,813 275,997$ Town Attorney 322,713 272,020 272,020 272,020 Town Clerk 169,121 202,971 202,971 200,033 Municipal Court 203,432 197,996 197,996 200,617 Administrative Services 900,077 964,370 964,370 999,090 Community Relations 374,510 363,493 363,493 369,560 Economic Development 351,638 215,430 215,430 373,232 Special Events 1,320,326 1,510,463 1,517,580 1,390,007 Community Grants 120,000 108,000 108,000 108,000 Sustainability 212,603 268,272 268,272 216,162 Subtotal General Government 4,255,202 4,383,828 4,390,945 4,404,718 Human Resources: Human Resources 800,835 770,739 770,739 806,984 Finance and Information Technology: Finance 1,090,137 1,156,096 1,156,096 1,212,330 Information Systems 844,995 835,354 835,354 860,588 Nondepartmental 523,548 418,461 418,461 531,771 Subtotal Finance and IT 2,458,680 2,409,911 2,409,911 2,604,689 Total General Government, HR and Finance 7,514,717 7,564,478 7,571,595 7,816,391 Community Development: Planning and Zoning Commission 12,368 14,425 14,425 16,400 Planning 860,329 639,767 641,267 674,531 Building Inspection 329,913 342,222 342,222 350,749 Total Community Development 1,202,610 996,414 997,914 1,041,680 . . . . Police Department: Administration 1,195,160 1,289,337 1,289,337 1,281,833 Patrol 4,259,558 4,259,000 4,266,084 4,769,038 Investigations 552,116 616,124 616,124 407,044 Code Enforcement 335,067 257,477 257,477 306,079 Total Police Department 6,341,901 6,421,938 6,429,022 6,763,994 Department Expenditure Summaries MUNICIPAL SERVICES General Fund Original Budget Proposed Actual Budget Amendment Budget Description 2024 2025 2025 2026 Department Expenditure Summaries MUNICIPAL SERVICES General Fund Public Operations: Administration 440,676 511,668 511,668 410,482 Engineering 396,536 678,199 678,199 889,192 Roads and Bridges 3,333,366 3,844,058 3,844,058 3,893,818 Parks 826,326 1,034,211 1,032,711 885,824 Buildings and Facilities 2,098,548 2,306,014 2,413,391 2,233,532 Total Public Works Department 7,095,452 8,374,150 8,480,027 8,312,848 Recreation Department: Administration 300,111 348,556 348,556 341,780 Adult Programs 53,283 91,150 91,150 114,111 Aquatics 1,002,906 1,044,788 1,044,788 1,154,516 Fitness 274,446 361,592 361,592 331,110 Guest Services 572,015 719,904 719,904 810,682 Youth Programs 247,724 309,342 309,342 352,657 Communtiy Swim Program 256,908 330,012 330,012 323,405 Total Recreation 2,707,393 3,205,344 3,205,344 3,428,262 TOTAL OPERATING EXPENDITURES 24,862,073$ 26,562,324$ 26,683,902$ 27,363,174$ Final Original Revised Proposed Actual Budget Budget Budget 2024 2025 2025 2026 SEE FUND SUMMARY EXPENDITURES BY CATEGORY The Urban Renewal Fund's main source of funding is property tax increment revenues for Urban Renewal Plan areas within the Town. The Town Center West Urban Renewal Plan Area was created in 2007, and is the only urban renewal plan area within Avon. The plan area has a 25-year life for tax increment financing. Property tax increment revenues for 2025 are based upon a preliminary increment of $50,287,670 and a mill rate of 56.56. BUDGET SUMMARY: AVON URBAN RENEWAL FUND ADMINISTRATION OF THE FUND The Avon Urban Renewal Fund is administered by the AURA Treasurer / Town of Avon Chief Finance Officer. FINANCIAL SUMMARY Fund Summary Original Revised Proposed Actual Budget Budget Budget 2024 2025 2025 2026 REVENUES Taxes 2,475,396$ 2,912,197$ 2,912,197$ 2,983,325$ Investment Earnings 2,552 - - - TOTAL REVENUES 2,477,948 2,912,197 2,912,197 2,983,325 EXPENDITURES Current: General Government - 1,000 1,000 1,000 Treasurer Fees 74,076 102,000 102,000 89,500 Debt Service: Principal 648,867 664,728 664,728 679,761 Interest 99,843 84,466 84,466 68,705 Fiscal Charges 400 1,000 1,000 1,000 Total Operating Expenditures 823,186 853,194 853,194 839,966 Other Uses Transfers Out - Capital Projects Fund 1,750,000 1,750,000 1,750,000 1,750,000 TOTAL EXPENDITURES 2,573,186 2,603,194 2,603,194 2,589,966 NET SOURCE (USE) OF FUNDS (95,238) 309,003 309,003 393,359 FUND BALANCES, Beginning of Year 285,495 285,495 190,257 499,260 FUND BALANCES, End of Year 190,257$ 594,498$ 499,260$ 892,619$ AVON URBAN RENEWAL AUTHORITY #22 Summary Debt Service Summary Final Original Revised Proposed Account Actual Budget Budget Budget Number Description 2024 2025 2025 2026 DEBT SERVICE 932 Series 2013, Tax Increment Revenue Bonds 65101 Principal -$ -$ -$ -$ 65102 Interest - - - - 65103 Fiscal Agent Fees - - - - 65108 Arbitrage Compliance Fees - - - - 933 Series 2017, Tax Increment Revenue Bonds 65101 Principal 197,867 203,728 203,728 209,761 65102 Interest 50,215 44,355 44,355 38,321 65103 Fiscal Agent Fees 500 500 500 500 65108 Arbitrage Compliance Fees - - - - 934 Series 2020, Tax Increment Revenue Bonds 65101 Principal 451,000 461,000 461,000 470,000 65102 Interest 49,627 40,111 40,111 30,384 65103 Fiscal Agent Fees 500 500 500 500 65108 Arbitrage Compliance Fees - - - - 60000 TOTAL DEBT SERVICE 749,709$ 750,194$ 750,194$ 749,466$ AVON URBAN RENEWAL AUTHORITY Debt Service Final Original Revised Proposed Actual Budget Budget Budget 2024 2025 2025 2026EXPENDITURES BY CATEGORY SEE FUND SUMMARY The Community Enhancement Fund (CEF) originates from the Franchise Agreement the Town of Avon has with Holy Cross Energy to sell electricity to the Town. One percent (1%) of the revenue generated by Holy Cross Energy in the Town of Avon is placed in the Community Enhancement Fund and is restricted to the following uses: beautification projects, energy conservation projects, equipment and technology upgrades for schools, scholarship funds, acquisition of open space and/or park land and development, sponsorship of special community events, and undergrounding of overhead electric and other utility lines. Recently added to the list are distributed generation and alternative energy projects. The CEF generates approximately $90,000/year and at the end of 2025 there is estimated be $32,078 available in the CEF Fund Balance. BUDGET SUMMARY: COMMUNITY ENHANCEMENT FUND ADMINISTRATION OF THE FUND The Town Engineer administers the Community Enhancement Fund. FINANCIAL SUMMARY Fund Summary Original Revised Proposed Actual Budget Budget Budget 2024 2025 2025 2026 REVENUES Other Revenue: Community Enhancement Fees 88,478$ 90,000$ 90,000$ 90,000$ Total Operating Revenues 88,478 90,000 90,000 90,000 Other Sources Transfers In - General Fund - - - - TOTAL REVENUES 88,478 90,000 90,000 90,000 EXPENDITURES Public Works: Community Enhancement 14,277 20,000 20,000 20,000 Total Operating Expenditures 14,277 20,000 20,000 20,000 Other Uses Transfers Out - Capital Projects Fund 100,000 361,000 361,000 - TOTAL EXPENDITURES 114,277 381,000 381,000 20,000 NET SOURCE (USE) OF FUNDS (25,799) (291,000) (291,000) 70,000 FUND BALANCES, Beginning of Year 348,877 319,774 323,078 32,078 FUND BALANCES, End of Year 323,078$ 28,774$ 32,078$ 102,078$ FUND BALANCES: Restricted For: Community Enhancement Projects 323,078$ 28,774$ 32,078$ 102,078$ TOTAL FUND BALANCES 323,078$ 28,774$ 32,078$ 102,078$ MUNICIPAL SERVICES Community Enhancement Fund #23 Revenue Detail Final Original Revised Proposed Account Actual Budget Budget Budget Number Description 2024 2025 2025 2026 Other Revenues: 58106 Community Enhancement Fees 88,478$ 90,000$ 90,000$ 90,000$ 58000 Total Other Revenues 88,478 90,000 90,000 90,000 Other Sources: 59201 Transfers In - General Fund - - - - 59000 Total Other Sources - - - - 50000 TOTAL REVENUES 88,478$ 90,000$ 90,000$ 90,000$ MUNICIPAL SERVICES Community Enhancement Fund #23 Section II, Page 8 EXHIBIT B COMMUNITY ENHANCEMENT FUND HISTORY Original Revised Calendar Amount Budget Budget Actual Ending Year Received Budget Request Amount Amount Expenditure Balance 2001 1 4,000$ -$ -$ -$ 4,000$ 2001 1 32,356 - - - 36,356 2002 1 42,824 - - - 79,180 2003 1 44,766 - - - 123,946 2004 1 50,664 - - - 174,610 2005 1 60,699 - - - 235,309 2006 64,133 - - - 299,442 Purchase of Wind Power 60,000 - - 2007 2 62,907 Energy Audit - 28,000 26,252 336,097 Whitewater Rodeo 36,000 36,000 36,000 LED Holiday Lighting 10,800 10,800 10,800 2008 74,585 Appraisal for Open Space 15,000 15,000 15,000 348,882 Fleet Maintenance Lighting 20,000 20,000 20,000 Ironkids 30,000 30,000 30,000 2009 70,136 LED Holiday Lighting 10,000 10,000 10,000 359,018 Avon Rec Center Lighting 40,000 29,000 29,000 Ironkids 20,000 20,000 20,000 Nottingham Park Pavilion 3 200,000 40,000 40,000 2010 71,067 Fishing Pier 20,000 20,000 20,000 321,085 Ironkids 10,000 10,000 10,000 World Alpine Championships 50,000 - - 2011 74,383 Undergrounding 4 100,000 - - 385,468 2012 72,862 Mall Improvement Project 5 250,000 - - Undergrounding 4 100,000 - - 458,330 2013 84,398 Heat Recovery Expansion 6 350,000 - - 542,728 2014 78,268 Nottingham Park Restrooms 275,000 - - Avon Mall Improvement - 608,000 608,000 12,996 2015 77,473 Nothing Budgeted - - - 90,469 2016 71,736 Undergrounding 100,000 - - 62,205 2017 78,545 Undergrounding 158,000 142,000 140,750 - 2018 83,009 Undergrounding 80,000 80,000 - 83,009 2019 83,072 Nothing Budgeted - - - 166,081 2020 81,392 Dancing in the Park - 30,000 - 247,473 Page 1 EXHIBIT B COMMUNITY ENHANCEMENT FUND HISTORY 2021 82,448 Undergrounding 120,000 - - 329,921 W. Avon Preserve 28,500 28,500 28,500 301,421 Dancing in the Park 30,000 - - 301,421 2022 87,665 Undergrounding 120,000 - - 389,086 Building Electrification Conference 16,000 - 11,312 377,774 2023 91,103 Undergrounding 120,000 - 120,000 348,877 Building Electrification Conference - - - 348,877 2024 88,478 Undergrounding 100,000 - 100,000 337,355 Building Electrification Conference 20,000 - 14,277 323,078 2025 90,000 Undergrounding 361,000 - 361,000 52,078 Building Electrification Conference 20,000 - 17,390 34,689 2026 90,000 Undergrounding - - - 124,689 Building Electrification Conference 20,000 - - 104,689 Notes: 6) The original proposal to extend the Town's Heat Recovery system along the length of the Mall and connect with the Wyndham and Avon Station was re-evaluated during the process for approving the Wyndham development on Lot 61. 1) Amounts received from 2001-2005 were accounted for in the General Fund. In 2006 a separate fund was established for the Community Enhancement monies. A transfer from the General Fund in the amount of $235,309 was made to establish the new Community Enhancement Fund. Because of an oversight, the amount transferred was $2,000 more than the actual amounts received from 2001 -2005. 2) In 2007, the Town budgeted $60,000 for purchasing wind power. It was subsequently learned that the use of Community Enhancement funds was not allowed for this purpose. Subsequently, $26,252 was used for an energy audit of the Town's facilities. 3) The Nottingham Park Pavilion project for which Community Enhancment funds were approved in the amount of $200,000, was subsequently removed from the Town's long-range CIP program due to the cost of the project and lack of Town funds available. A total of $40,000 in Community Enhancement funds was used for the design cost, with the remained turned back as unused. 4) The US Hwy 6 Trail undergrounding project has been delayed due to high project costs related to the Eagle Valley Trails projects. 5) The Mall Improvement Project was delayed due to the impending development of Lot 61. Page 2 Final Original Revised Proposed Actual Budget Budget Budget 2024 2025 2025 2026 Personnel Services 35,283$ 75,934$ 75,934$ 44,461$ Commodities - - - - Contract Services 10,474 41,000 41,000 51,369 Other Operating Costs 31,500 31,500 31,500 31,500 Capital Outlay - 4,000 4,000 4,000 Total 77,257$ 152,434$ 152,434$ 131,330$ Water Utilities 77,257$ 152,434$ 152,434$ 131,330$ Total 77,257$ 152,434$ 152,434$ 131,330$ EXPENDITURES BY PROGRAM PROGRAM ACTIVITIES AND OPERATIONS: WATER FUND Management of Water Fund Capital Improvement Projects: Includes initial planning, engineering, design and construction of water-related improvements. Long-Range Planning: Includes oversight of water rights and work on the resolution of issues with the Water Authority as identified in the Strategic Plan. BUDGET SUMMARY: WATER FUND ADMINISTRATION OF THE FUND The Water Fund is administered by the Town Engineer. Approximately 20% of the Engineer's total administration time is charged to the Water Fund. FINANCIAL SUMMARY EXPENDITURES BY CATEGORY 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 $3.25/SFE/month fee on the water bill. Expenditures in the Water Fund include engineering and construction of projects, water attorney fees and irrigation ditch maintenance. In addition, revenues are contributed to third parties for water quality monitoring, river clean-up and associated projects. Fund Summary Original Revised Proposed Actual Budget Budget Budget 2024 2025 2025 2026 REVENUES Charges for Services: Water Surcharges 175,381$ 170,000$ 170,000$ 170,000$ Tap Fees (23,200) 25,000 25,000 25,000 Tap Fees - Mountain Star - 4,000 4,000 4,000 Total Charges for Services 152,181 199,000 199,000 199,000 Other Revenues Nonclassified Revenues - - - - TOTAL REVENUES 152,181$ 199,000$ 199,000$ 199,000$ EXPENDITURES Water Utilities 77,257 152,384 121,602 131,330 Total Operating Expenditures 77,257 152,384 121,602 131,330 Other Uses Transfers Out - Capital Projects Fund 500,000 100,000 - - TOTAL EXPENDITURES 577,257 252,384 121,602 131,330 NET SOURCE (USE) OF FUNDS (425,076) (53,384) 77,398 67,670 FUND BALANCES, Beginning of Year 430,707 399,386 5,631 83,029 FUND BALANCES, End of Year 5,631$ 346,002$ 83,029$ 150,699$ MUNICIPAL SERVICES Water Fund #24 Current Original Revised Proposed Actual Budget Budget Budget 2024 2025 2025 2026 REVENUES Taxes: Short-term Rental Tax 999,737$ 1,001,099$ 1,001,099$ 1,013,112$ Use Tax on Construction Materials - 500,000 500,000 400,000 Intergovernmental: More Housing NOW Grant 61,868 160,000 216,000 - Local Planning Capacity Grant - - - 220,000 Charges for Services: Rental Revenues - Employees 80,483 87,000 87,000 138,300 Rental Revenues - Employees Investment Earnings - - - - Other Revenue: Misc Revenue 9,927 9,000 9,000 9,000 Loan Principal Repayment - - - - Nonclassified Revenues - - - - Total Operating Revenues 1,152,015 1,757,099 1,813,099 1,780,412 Other Sources Operating Transfers-In (RETT)652,909 500,000 781,961 500,000 Total Other Sources 652,909 500,000 781,961 500,000 TOTAL REVENUES 1,804,924 2,257,099 2,595,060 2,280,412 EXPENDITURES General Government: Planning and Consulting 245,893 1,180,000 1,995,735 - Sherwood Meadows Special Assessment 48,892 - - - Mi Casa Good Deeds 664,230 600,000 1,685,338 1,750,000 MEHOP 250,000 500,000 375,000 625,000 Grant Consulting 27,000 26,000 26,000 24,000 Tract Y Contribution - - 600,000 - R&M Rental Town Owned Units - 20,000 20,000 20,000 Personnel Expenses - 131,163 131,163 145,291 Other Professional Services - - - 4,000 Professional Development - - - 2,750 Community Housing Operating Expenditures 1,112 18,366 18,366 30,000 TOTAL EXPENDITURES 1,237,127 2,475,529 4,851,602 2,601,041 NET SOURCE (USE) OF FUNDS 567,797 (218,430) (2,256,542) (320,628) FUND BALANCES, Beginning of Year 3,048,139 1,169,299 3,615,936 1,359,394 FUND BALANCES, End of Year 3,615,936$ 950,869$ 1,359,394$ 1,038,766$ Fund Summary MUNICIPAL SERVICES Community Housing Fund #25 CAPITAL PROJECTS FUND 5-YEAR PLAN INVENTORY DETAIL CARRYFORWARD Current Total 2024 and Original Revised Proposed Project Prior Yr.Current year Budget Budget Budget Project #Community Housing Projects Budget Actuals 2025 2025 2025 2026 2027 2028 2029 2030 Planning and Consulting: 10002 East Parcels 210,000 30,034 - 50,000 179,966 - - - - - 10004 Lot 5 Employee Housing - Design 1,500,000 257,894 8,728 500,000 1,242,106 - - - - - 10005 Eagle County Regional Housing Action Plan 224,000 152,205 48,694 - 133,663 - - - - - 10006 Potential Housing Projects 400,000 7,909 - 200,000 - - - - - - 10007 Slopeside 450,000 - 147,170 50,000 150,000 - - - - - 10009 State Land Board Housing Developmnet 160,000 - - 30,000 30,000 - - - - - Multi Jurisdictional Housing Authory 200,000 200,000 200,000 - Wildridge Annex 75,000 75,000 30,000 - East Avon Preserve 75,000 75,000 30,000 - West PA 140,000 - Facilities: NEW Town Owned Community Housing - - - - - - - - - - Total Community Housing Projects 1,710,000$ 287,928$ 204,592$ 1,180,000$ 1,995,735$ -$ -$ -$ -$ -$ Projected Final Original Revised Proposed Actual Budget Budget Budget 2024 2025 2025 2026 SEE FUND SUMMARY EXPENDITURES BY CATEGORY BUDGET SUMMARY: EXTERIOR ENERGY OFFSET FUND The Exterior Energy Offset Fund (EEOP) was established to encourage sustainable, energy efficient, exterior heating solutions that conserve energy and natural resources. EEOP considers exterior energy uses over a nominal amount and establishes fees based on average British Thermal Units (BTUs) required for such amenities over a 20-year period in our climate. Fees are exempted if renewable energy system(s) are installed on-site prior to completion of the amenity which generate the equivalent of 50% of the energy needed for the exterior energy use. Any partial renewable offsets and/or energy efficiency rebates earned may be credited accordingly. System design, calculations, and field inspection are required and must be verified by the Town's Building Official. (b) The following EEOP fees shall apply at the time of Building Permit. Fees collected at building permit are placed in the EEOP fund to create financial assistance, rebates, and incentives to promote energy efficient projects elsewhere within the Town of Avon. Expenditures of EEOP funds shall be used for: a) Provide educational materials and outreach for Town of Avon residents, businesses, employees and building owners including but not necessarily limited to printed guides, efficient building educational events, a webpage with available resources, links, and information. (b) Planning, design and implementation of renewable energy generation projects. (c) Providing a community grant and/or rebate program for energy efficiency enhancements or renewable energy generation projects. (d) Funding other resources and administrative costs associated with green building and environmental sustainability oriented efforts. (e) Special consideration is given to projects that positively affect occupants of local affordable housing or low income residents in Town of Avon ADMINISTRATION OF THE FUND The Town Manager administers the Exterior Energy Offset Fund. FINANCIAL SUMMARY Original Revised Proposed Actual Budget Budget Budget 2024 2025 2025 2026 REVENUES Licenses and Permits: Exterior Energy Offset Fee 18,264$ 25,000$ 25,000$ 25,000$ Total Operating Revenues 18,264 25,000 25,000 25,000 TOTAL REVENUES 18,264 25,000 25,000 25,000 EXPENDITURES Community Development: Project Planning & Consulting - 44,000 44,000 15,000 Energy Efficiency Projects 46,019 40,000 40,000 40,000 Total Operating Expenditures 46,019 84,000 84,000 55,000 TOTAL EXPENDITURES 46,019 84,000 84,000 55,000 NET SOURCE (USE) OF FUNDS (27,755) (59,000) (59,000) (30,000) FUND BALANCES, Beginning of Year 224,901 198,222 197,146 138,146 FUND BALANCES, End of Year 197,146$ 139,222$ 138,146$ 108,146$ Fund Summary MUNICIPAL SERVICES Exterior Energy Offset Fund #27 Original Revised Proposed Actual Budget Budget Budget 2024 2025 2025 2026 REVENUES Other Revenues Disposable Paper Bag Fee 66,157$ 25,000$ 25,000$ 45,000$ Resale of Trash & Recycling Bins 8,276 - - - Total Operating Revenues 74,433 25,000 25,000 45,000 TOTAL REVENUES 74,433 25,000 25,000 45,000 EXPENDITURES General Government: Waste Reduction and Recycling 19,978 45,440 45,440 73,100 Total Operating Expenditures 19,978 45,440 45,440 73,100 TOTAL EXPENDITURES 19,978 45,440 45,440 73,100 NET SOURCE (USE) OF FUNDS 54,455 (20,440) (20,440) (28,100) FUND BALANCES, Beginning of Year 94,062 82,602 148,517 128,077 FUND BALANCES, End of Year 148,517$ 62,162$ 128,077$ 99,977$ Fund Summary MUNICIPAL SERVICES Disposable Paper Bag Fee Fund #28 Final Original Revised Proposed Actual Budget Budget Budget 2024 2025 2025 2026 SEE FUND SUMMARY The Debt Service fund is used to account for the accumulation of resources for the payment of principal and interest on the Town's debt not accounted for in any other fund. Accounted for in this fund are the Series 2020 Refunding Certificates of Participation issued for the Regional Transportation Facility, the Series 2014B Certificates of Participation issued for street improvements, and the Series 2016 Certificates of Participation that were issued to finance the construction of a new public safety facility. BUDGET SUMMARY: DEBT SERVICE FUND ADMINISTRATION OF THE FUND The Chief Finance Officer administers the Debt Service Fund. FINANCIAL SUMMARY EXPENDITURES BY CATEGORY Fund Summary Original Revised Proposed Account Actual Budget Budget Budget Number Description 2024 2025 2025 2026 REVENUES 57101 Investment Earnings 173$ -$ -$ -$ 58999 Miscellaneous Nonclassifed Revenues - - - - Other Sources: 59201 Transfers-In from General Fund - - - 502,502 59201 Transfers-In from Capital Projects Fund 962,124 960,756 960,756 960,756 50000 TOTAL REVENUES 962,297 960,756 960,756 1,463,258 EXPENDITURES Debt Service: Series 2025, Certificates of Participation (Walgreens) 65101 Principal - - - 130,000 65102 Interest - - - 372,502 65103 Fiscal Agent Fees - - - 1,500 65109 Cash Management Fees - - - 50 924 Series 2010, Certificates of Participation 65101 Principal - - - - 65102 Interest - - - - 65103 Fiscal Agent Fees - - - - 65108 Arbitrage Compliance Fees - - - - 65109 Cash Management Fees - - - - 926 Series 2014B, Certificates of Participation (Street Improvements) 65101 Principal 265,000 275,000 275,000 280,000 65102 Interest 52,116 44,087 44,087 35,754 65103 Fiscal Agent Fees 1,500 1,500 1,500 1,500 65109 Cash Management Fees 2 50 50 50 927 Series 2016, Certificates of Participation (Public Safety Facility) 65101 Principal 305,000 320,000 320,000 325,000 65102 Interest 136,175 127,025 127,025 120,625 65103 Fiscal Agent Fees - 2,250 2,250 2,500 65108 Arbitrage Compliance Fees - - - - 65109 Cash Management Fees 2 50 50 50 928 Series 2020, Refunding Certificates of Participation (Series 2010 New Money) 65101 Principal 178,000 175,000 175,000 179,000 65102 Interest 15,683 13,494 13,494 1,134 65103 Fiscal Agent Fees 2,250 2,250 2,250 2,500 65108 Arbitrage Compliance Fees - - - - 65109 Cash Management Fees 2 50 50 50 Total Debt Service Expenditures 955,730 960,756 960,756 1,452,215 NET SOURCE (USE) OF FUNDS 6,567 - - 11,043 FUND BALANCES, Beginning of Year 40,745 40,258 47,312 40,258 FUND BALANCES, End of Year 47,312$ 40,258$ 40,258$ 51,301$ MUNICIPAL SERVICES Debt Service Fund #31 Year Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2025 355,000.00 27,318.30 461,000.00 40,111.10 203,727.73 44,354.89 320,000.00 127,025.00 275,000.00 44,086.50 2026 363,000.00 22,951.80 470,000.00 30,384.00 209,761.93 38,320.69 325,000.00 120,625.00 280,000.00 35,754.00 2027 369,000.00 18,486.90 480,000.00 20,467.00 215,974.84 32,107.78 330,000.00 114,125.00 290,000.00 27,270.00 2028 374,000.00 13,948.20 490,000.00 10,339.00 222,371.78 25,710.84 345,000.00 100,925.00 300,000.00 18,483.00 2029 378,000.00 9,348.00 - - 228,958.19 19,124.43 355,000.00 87,125.00 310,000.00 9,393.00 2030 382,000.00 4,698.60 - - 235,739.68 12,342.94 370,000.00 72,925.00 - - 2031 - - - - 242,721.93 5,360.69 385,000.00 58,125.00 - - 2032 - - - - - - 395,000.00 48,018.76 - - 2033 - - - - - - 405,000.00 37,650.00 - - 2034 - - - - - - 420,000.00 25,500.00 - - 2035-2045 - - - - - - 430,000.00 12,900.00 - - Total 2,221,000.00$ 96,751.80$ 1,901,000.00$ 101,301.10$ 1,559,256.08$ 177,322.26$ 4,080,000.00$ 804,943.76$ 1,455,000.00$ 134,986.50$ Funding: Interest Dates: Date of Issue: Interest Rate: Issue Amount:$3,983,000 $4,111,000 $3,800,000 Series 2016Series 2017 2.00% - 4.00%2.90% $6,300,000$3,000,000 Real Estate Transfer Taxes, General Revenues of the Town Urban Renewal Fund Tax Increment Revenues June 1 and December 1June 1 and December 1 December 1, 2035December 1, 2031September 2, 2020 May 1, 2020 December 1, 2029 1.230%2.110%3.03% Real Estate Transfer Taxes, Fleet Maintenance Revenues Urban Renewal Fund Tax Increment Revenues Real Estate Transfer Taxes, General Revenues of the Town June 1 and December 1 June 1 and December 1 June 1 and December 1 Series 2020 Series 2020 Series 2014B Refunding Certificates of Participation Tax Increment Revenue Refunding Loan Certificates of ParticipationCertificates of ParticipationTax Increment Revenue Bonds TOWN OF AVON Self-Supported Bonded Debt Original Revised Proposed Actual Budget Budget Budget 2024 2025 2025 2026 REVENUES Taxes 73,037$ 69,487$ 69,487$ 72,000$ Intergovernmental 338,398 294,000 294,000 254,000 Charges for Services 504,656 379,869 379,869 459,869 Fines and Forfeitures - - - Other Revenues 54,280 145,611 145,611 153,153 Total Operating Revenues 970,371 888,967 888,967 939,022 Other Sources Transfers In from General Fund 1,500,000 1,500,000 1,500,000 1,500,000 Transfers In from Capital Projects Fund 200,000 200,000 200,000 200,000 Total Other Sources 1,700,000 1,700,000 1,700,000 1,700,000 TOTAL REVENUES 2,670,371 2,588,967 2,588,967 2,639,022 EXPENDITURES Administration 292,638 366,821 366,821 357,673 Transit Operations 1,687,989 1,772,701 1,810,781 1,900,850 Washbay 275,006 287,505 341,505 318,941 Mobility Programs 510,651 367,116 369,816 349,600 Parking Management - - - - TOTAL EXPENDITURES 2,766,284 2,794,143 2,888,923 2,927,064 NET SOURCE (USE) OF FUNDS (95,913) (205,176) (299,956) (288,042) FUND BALANCES, Beginning of Year 896,717 1,098,870 800,804 500,848 FUND BALANCES, End of Year 800,804$ 893,694$ 500,848$ 212,806$ Fund Summary MUNICIPAL SERVICES Mobility Fund #52 Final Original Revised Proposed Actual Budget Budget Budget 2024 2025 2025 2026 REVENUES Intergovernmental -$ -$ -$ -$ Charges for Services 2,833,337 2,114,254 2,114,254 2,461,890 Other Revenue 17,728 - - - Total Operating Revenues 2,851,065 2,114,254 2,114,254 2,461,890 Other Sources Transfers-In from General Fund - - - - Transfers-In from Capital Projects Fund 348,022 433,825 433,825 495,611 Total Other Sources 348,022 433,825 433,825 495,611 TOTAL REVENUES 3,199,087 2,548,079 2,548,079 2,957,501 EXPENDITURES Public Works: Fleet Maintenance 2,698,986 2,254,121 2,254,121 2,447,844 Total Operating Expenditures 2,698,986 2,254,121 2,254,121 2,447,844 NET SOURCE (USE) OF FUNDS 500,101 293,958 293,958 509,657 FUND BALANCES, Beginning of Year 879,336 813,439 1,379,437 1,673,395 FUND BALANCES, End of Year 1,379,437$ 1,107,397$ 1,673,395$ 2,183,052$ Fund Summary MUNICIPAL SERVICES Fleet Maintenance Enterprise Fund #61 Final Original Revised Proposed Actual Budget Budget Budget 2024 2025 2025 2026 SEE FUND SUMMARY EXPENDITURES BY CATEGORY The Equipment Repacement Fund is used to account for the rental of certain vehicles and equipment to other departments for the accumulation of funds for future replacements. BUDGET SUMMARY: EQUIPMENT REPLACEMENT FUND ADMINISTRATION OF THE FUND The Equipment Replacement Fund is administered by the Chief Finance Officer with assistance from other department directors. FINANCIAL SUMMARY Original Revised Proposed Actual Budget Budget Budget 2024 2025 2025 2026 REVENUES Charges for Services: Equipment Replacement Charges 1,203,761$ 1,448,022$ 1,448,022$ 1,448,022$ Interest Earnings 173,490 120,000 120,000 120,000 Other Revenue: Insurance Claim Reimbursements - - - - Total Operating Revenues 1,377,251 1,568,022 1,568,022 1,568,022 Other Sources Transfers-In from Capital Projects Fund 652,538 859,375 859,375 463,300 Sales of Fixed Assets 103,148 120,000 120,000 120,000 Total Other Sources 755,686 979,375 979,375 583,300 TOTAL REVENUES 2,132,937 2,547,397 2,547,397 2,151,322 EXPENDITURES Capital Outlay: Fleet and Heavy Equipment 870,204 2,115,172 2,115,172 222,269 Recreation Center Equipment 68,342 49,930 49,930 46,538 Computer and Office Equipment 157,772 118,854 11,854 47,754 Machinery and Equipment 372,028 59,210 59,210 104,615 Heat Recovery - - - - Total Operating Expenditures 1,468,346 2,343,166 2,236,166 421,176 Other Uses: Transfer-Out to Capital Projects Fund - 425,000 425,000 425,000 TOTAL EXPENDITURES 1,468,346 2,768,166 2,661,166 846,176 NET SOURCE (USE) OF FUNDS 664,591 (220,769) (113,769) 1,305,146 FUND BALANCES, Beginning of Year 4,812,821 4,169,800 5,477,412 5,363,643 FUND BALANCES, End of Year 5,477,412$ 3,949,031$ 5,363,643$ 6,668,789$ Fund Summary MUNICIPAL SERVICES Equipment Replacement Internal Service Fund #63 Final Original Revised Proposed Account Actual Budget Budget Budget Number Description 2024 2025 2025 2026 Charges for Services: Equipment Rental Charges 54904 Nondepartmental 175,640$ 144,337 144,337 144,337 54905 Comm Dev - Building Inspection - 8,250 8,250 8,250 54904 Police - Administration 27,222 22,235 22,235 22,235 54904 Police - Patrol 193,289 261,551 261,551 261,551 54904 Police - Investigations 15,705 23,205 23,205 23,205 54904 Engineering 1,324 17,858 17,858 17,858 54904 Code Enfocement - 12,004 12,004 12,004 54904 Public Works - Roads and Bridges 245,060 314,579 314,579 314,579 54904 Public Works - Parks 154,920 141,143 141,143 141,143 54904 Buildings and Facilities 59,883 130,304 130,304 130,304 54904 Mobility - Operations 17,314 35,144 35,144 35,144 54904 Mobility - Wash Bay 106,016 106,016 106,016 106,016 54904 Fleet Maintenance 19,966 48,926 48,926 48,926 54903 Recreation - Administration 19,532 24,656 24,656 24,656 54904 Recreation - Aquatics 17,149 15,054 15,054 15,054 54904 Recreation - Fitness 150,741 142,761 142,761 142,761 54000 Total Charges for Services 1,203,761 1,448,023 1,448,023 1,448,023 57000 Investment Earnings 57101 Investment Earnings 173,490 120,000 120,000 120,000 Other Revenue 58205 Insurance Claim Reimbursements - - - - Other Sources: 59201 Transfers-In from Capital Projects Fund 652,538 859,375 135,000 463,300 59101 Sale of Fixed Assets 103,148 120,000 120,000 120,000 59000 Total Other Sources 755,686 979,375 255,000 583,300 50000 TOTAL REVENUES 2,132,937$ 2,427,398$ 1,703,023$ 2,151,323$ Revenue Detail MUNICIPAL SERVICES Equipment Replacement Internal Service Fund #63 TOWN OF AVON DETAILED BUDGET REQUESTS 2026 Proposed Budget Department:N/A Program:Computers and Office Equipment #813 2026 Account Proposed Number Account Name Justification Budget EQUIPMENT REPLACEMENT: Computers and Office Equipment DC-VMHOST 03 19,333 BU-BMHOST 19,333$ 38,666 66402 Computers and Peripherals 66403 Audio / Visual Cameras Recycle Center 9,088 66404 Furniture and Fixtures - 66000 Total Capital Outlay 47,754$ TOWN OF AVON DETAILED BUDGET REQUESTS 2026 Proposed Budget Department:N/A Program:Machinery and Equipment #814 2026 Account Proposed Number Account Name Justification Budget EQUIPMENT REPLACEMENT: Machinery and Equipment Variable Message Signs 10084 Variable Message Signs 10084 Variable Message Signs 10084 SandPro Tiller 22926 ProGator 2030A 42379 Power Steering Machine 2369 Brake Service Machine 4664 Oil Filter Crusher 2025 104,615$ -$ 66499 Other Machinery and Equipment 104,615 66000 Total Capital Outlay 104,615$ TOWN OF AVON DETAILED BUDGET REQUESTS 2026 Proposed Budget Department:N/A Program:Recreation Equipment #812 2026 Account Proposed Number Account Name Justification Budget EQUIPMENT REPLACEMENT: Recreation Center 10 Spin Bikes 29,640 Half Rack Squat 2,030 Plate Loaded Leg Press 6,378$ Plate Loaded Squat Press 5,593 Plate Loaded Seated Calf 2,897 66407 Athletic and Recreational Equipment 46,538 66000 Total Capital Outlay 46,538$ TOWN OF AVON DETAILED BUDGET REQUESTS 2026 Proposed Budget Department:N/A Program: Fleet and Heavy Equipment #811 Account 2026 Proposed Number Account Name Justification Budget EQUIPMENT REPLACEMENT: Fleet and Heavy Equipment General Goverenment: #363 Ford Interceptor 68,188 #226 Plow Truck 44,951 #361 Tahoe PD 54,565 #362 Tahoe PD 54,565 66501 Automobiles and Light-duty Trucks 222,269 66502 Heavy Trucks and Moving Equipment - 66000 Total Capital Outlay 222,269$ Current Original Revised Proposed Actual Budget Budget Budget 2024 2025 2025 2026 REVENUES Taxes 7,980,409$ 5,000,000$ 5,000,000$ 5,000,000$ Intergovernmental 1,683,440 5,116,000 7,561,750 4,319,258 Investment Earnings 455,390 200,000 200,000 200,000 Other Revenue 749 15,000 15,000 - Total Operating Revenues 10,119,988 10,331,000 12,776,750 9,519,258 Other Sources: Operating Transfers-In 5,040,000 2,636,000 2,636,000 4,499,667 Total Other Sources 5,040,000 2,636,000 2,636,000 4,499,667 TOTAL REVENUES 15,159,988 12,967,000 15,412,750 14,018,925 EXPENDITURES Capital Improvements: Facilities 3,190,849 1,090,000 5,343,462 8,628,500 Parks and Open Space 223,101 3,632,986 6,788,833 360,000 Streets and Parking 3,555,237 2,205,000 6,894,584 2,136,701 Drainage 367,350 25,000 187,650 200,000 Utility Projects 380,663 350,000 1,200,272 - Debt Service: Capital Leases 57,627 - - - Total Capital Improvements 7,774,827 7,302,986 20,414,801 11,325,201 Other Uses Operating Transfers-Out 3,279,060 3,611,702 3,169,288 7,666,475 Total Other Uses 3,279,060 3,611,702 3,169,288 7,666,475 TOTAL EXPENDITURES 11,053,887 10,914,688 23,584,089 18,991,676 NET SOURCE (USE) OF FUNDS 4,106,101 2,052,312 (8,171,339) (4,972,751) FUND BALANCE, Beginning of Year 15,508,980 4,677,231 19,615,081 11,443,742 FUND BALANCE, End of Year 19,615,081$ 6,729,543$ 11,443,742$ 6,470,991$ Fund Balances Restricted For: Asphalt Overlay 423,144$ 423,144$ -$ -$ Assigned For: Tract G/URA Projects 844,108 2,429,108 2,812,110 2,812,110 Unassigned: Unreserved 18,347,829 3,877,291 8,631,632 3,658,881 Total Fund Balances 19,615,081$ 6,729,543$ 11,443,742$ 6,470,991$ Fund Summary MUNICIPAL SERVICES Capital Projects Fund #41 CAPITAL PROJECTS FUND 5-YEAR PLAN SUMMARY Original Current Proposed Audited Budget Budget Budget 2024 2025 2025 2026 2027 2028 2029 2030 2031 2032 REVENUES Real Estate Transfer Tax: Base Level 7,980,409$ 5,000,000$ 5,000,000$ 5,000,000$ 5,150,000$ 5,304,500$ 5,463,635$ 5,627,544$ 5,796,370$ 5,854,334 Lot 3 Development (79 Units) - - - - - 1,050,000 1,715,000 - McGrady Acres (12 Units under construction) - - - - 660,000 - - Penalties and Interest - - - - - - - Interest Earnings 455,390 200,000 200,000 200,000 150,000 150,000 150,000 150,000 150,000 150,000 Intergovernmental: Federal/State/County: Colorado Water Conservation Board - - - - - - - - American Recovery Plan Act 1,636,538 - - - - - - - DOLA Grant (East Park Restrooms) 46,902 1,000,000 1,000,000 - - - - - CDOT Transit Grant 2024 Bus - - 2,799,956 - - - - CDOT Transit Grant 2025/6 Bus Charging Equipment 384,000 - CDOT Transit Grant for Fleet Lifts (Washbay) 256,000 - CDOT Transit Grant for Fleet Lifts (Main) 240,000 - CEO Grant - DCFC Plaza Grant (LM - $319,900) 560,000 - GOCO Grant (Eaglebend Playground) - 375,000 375,000 - - - - - Eagle County Contribution (Hwy 6 Roundabout) - 535,000 - - - - - CDOT Revitalize Main Street Grant (Hwy 6 Roundabout) - 1,300,000 2,000,000 - - - - - CDOT Multimodal Options Fund Grant I (Hwy 6 Roundabout) - 2,000,000 1,000,000 - - - - - CDOT Multimodal Options Fund Grant (Hwy 6 Roundabout) 1,600,000 - CDOT Off-System Bridge Grant - 895,302 - CDOT Highway Safety Improvement Grant (Avon Rd - RRFB) 441,000 677,500 - Eagle County Contribution Lot 5 Recycling Center 118,250 - Colorado Parks and Wildlife Grant - - - - - - - - Other Revenues: Local Bank Financing Recreation Center - - 4,200,000 - - Community Contributions - 15,000 15,000 - - - - - Nonclassified 749 - - - - - - - - - Total Operating Revenues 10,119,988 10,331,000 12,776,750 9,519,258 6,520,000 10,704,500 7,328,635 5,777,544 5,946,370 6,004,334 Other Sources: Transfers In - General Fund - Recreation Center Remodel 2,690,000 - - 2,500,000 2,500,000 - - Transfers In - Avon URA - Tract G Projects 1,750,000 1,750,000 1,750,000 1,750,000 1,800,000 2,000,000 2,000,000 1,750,000 1,750,000 1,750,000 - Lot 3 TIF Revenues (est 111 unit condo building)- - - - - 41,279 82,588 82,588 82,588 82,588 Transfers In - Community Enhancement Fund - Powerline Undergrounding/LED Rec Center 100,000 361,000 361,000 - - - - - - - Transfers In - Water Fund - Nottingham Reservior 500,000 100,000 100,000 - - 100,000 - Transfers In - Equipment Replacement Fund McGrady Acres Park Cash-in-Lieu Payment - - - 249,667 - - - Projected CAPITAL PROJECTS FUND 5-YEAR PLAN SUMMARY Original Current Proposed Audited Budget Budget Budget 2024 2025 2025 2026 2027 2028 2029 2030 2031 2032 Projected - Snow Plows - 425,000 425,000 - 450,000 - - - - - Total Other Sources 5,040,000 2,636,000 2,636,000 4,499,667 4,750,000 2,141,279 2,082,588 1,832,588 1,832,588 1,832,588 Total Revenues and Sources of Funds 15,159,988$ 12,967,000$ 15,412,750$ 14,018,925$ 11,270,000$ 12,845,779$ 9,411,223$ 7,610,132$ 7,778,958$ 7,836,922$ EXPENDITURES Capital Improvements: - Facilities 3,190,849 1,090,000 5,343,462 8,628,500 1,210,000 4,200,000 200,000 - - - Parks and Open Space 223,101 3,632,986 6,788,833 360,000 8,650,000 1,000,000 1,200,000 - - - Streets and Parking 3,555,237 2,205,000 6,894,584 2,136,701 3,880,000 4,640,000 2,603,973 1,141,988 40,000 40,000 Drainage 367,350 25,000 187,650 200,000 - - 1,500,000 - - - Reserve Study Projects - - - - 137,950 538,914 99,649 1,005,090 1,394,061 1,047,117 Utility Projects 380,663 350,000 1,200,272 - - - - - - - Debt Service: Capital Leases: - 2017 Commerce Bank, Plow Truck, Electrician Lift Truck 57,627 - - - - - - - - - Total Expenditures 7,774,827 7,302,986 20,414,801 11,325,201 13,877,950 10,378,914 5,603,622 2,147,078 1,434,061 1,087,117 Other Uses: Transfers Out - General Fund: - Engineering Department Salary and Benefits 621,467 657,747 657,747 722,988 751,908 781,984 813,263 845,794 879,625 832,260 Transfers Out - Community Housing Fund: - Mi Casa Program 652,929 500,000 781,961 500,000 515,000 530,450 546,364 562,754 579,637 585,433 Transfers Out - Debt Service Fund: - 2014B COPS (Street Improvements)318,666 320,637 320,637 317,304 318,820 320,033 319,393 - - - - 2016 COPS (Public Safety Bldg.)444,475 449,325 449,325 445,625 444,125 445,925 442,125 442,925.00 443,125.00 - - 2020 Refunding COPs 195,983 190,793 190,793 190,341 191,139 191,900 191,624 191,324.00 - - - Local Bank Loan (5-year term)- - 960,000 960,000 960,000 960,000 Transfers Out - Mobility Fund: - Hybrid Buse (1) 200,000 200,000 200,000 970,000 - - - - Electric Buses (2) - - - 3,071,306 - - - Electric Bus Charging Equipment 480,000 Transfers Out - Fleet Maintenance Fund: - 2020 COPs (Fleet Maintenance Bldg.)193,002 193,825 193,825 195,611 196,348 196,048 195,723 195,374 - - - 80/20 Match on Grant for Lifts (Washbay)- 240,000 240,000 - - - - 80/20 Match on Grant for Lifts (Main)300,000 Transfers Out - Equipment Replacement Fund: - Ballot Box - - - 2,500 - - - - - - - Drain Snake - - - 10,800 - - - - - - - Digital Cable Infrastructure - - - 10,000 - Dump Truck/Road Widener/Roller 316,163 - - - - - - - - - - Digital Signs on Railroad Tracks - - 37,000 - - - - - - - - External Vest Ballistic Plates - 40,000 40,000 - - - - CAPITAL PROJECTS FUND 5-YEAR PLAN SUMMARY Original Current Proposed Audited Budget Budget Budget 2024 2025 2025 2026 2027 2028 2029 2030 2031 2032 Projected - Heavy Duty Dump Trailer - 20,000 20,000 - - - - - Diesel Light Towers (2)- 38,000 38,000 - - - - - Armored Rescue Vehicle 336,375 336,375 - - - - - - Snow Plow - 425,000 - 450,000 450,000 - Total Other Uses 3,279,060 3,611,702 3,169,288 7,666,475 2,867,340 2,466,340 3,468,492 3,198,171 2,862,387 2,377,693 Total Expenditures and Uses of Funds 11,053,887 10,914,688 23,584,089 18,991,676 16,745,290 12,845,254 9,072,114 5,345,249 4,296,448 3,464,810 Net Source (Use) of Funds 4,106,101 2,052,312 (8,171,339) (4,972,751) (5,475,290) 525 339,109 2,264,883 3,482,510 4,372,112 Fund Balance, Beginning of Year 15,508,980 4,677,231 19,615,081 11,443,742 6,470,991 995,702 996,227 1,335,336 3,600,219 7,082,729 Fund Balance, End of Year 19,615,081$ 6,729,543$ 11,443,742$ 6,470,991$ 995,702$ 996,227$ 1,335,336$ 3,600,219$ 7,082,729$ 11,454,841$ Fund Balances Restricted For: Asphalt Overlay 423,144$ 423,144$ -$ -$ -$ -$ -$ Assigned For: Tract G/URA Projects 844,108 2,429,108 2,812,110 2,437,110 537,110 478,389 980,728 2,730,728 4,480,728 6,230,728 Unassigned: . Unreserved 18,347,829 3,877,291 8,631,632 4,033,881 458,592 517,838 354,608 869,491 2,602,001 5,224,113 Total Fund Balances 19,615,081$ 6,729,543$ 11,443,742$ 6,470,991$ 995,702$ 996,227$ 1,335,336$ 3,600,219$ 7,082,729$ 11,454,841$ CAPITAL PROJECTS FUND 5-YEAR PLAN INVENTORY DETAIL * RED signifies "New or Increased Budget" Avon URA/DDA Project Defer to Future Years Project for Grant Funding Funding to Likely Increase Funding to Likely Decrease Discretionary (D)Original Current Proposed Budgeted vs Prior Yr.Budget Budget Budget Project Completion Capital Improvement Projects Non Discretionary (ND) Totals 2025 2025 2026 2027 2028 2029 2030 2031 2032 Date Facilities ATRF ARTF - BAS / HVAC PM 312,000 19,110 - 165,600 - - - - 2025 ARTF - Bus Wash Exit 125,000 25,709 99,291 2025 ARTF - HVAC Separation 170,000 19,110 - 292,890 - - - - 2025 Upgrading ARTF meeting room D 13,500 - 13,500 2026 ARTF roof repairs ND 50,000 - 50,000 2026 ARTF Bus Wash Replumbing ND 15,000 - 15,000 2026 Heat exchangers/pumps for heat recovery system D 100,000 - 100,000 2026 Public Works Garage Public Works Garage (Planning, Design, Mgt) 600,000 361,645 - 238,355 - - - - 2025 Public Works Garage Net:$2,727,500 4,364,038 1,909,500 - 2,454,538 - - - - 2025 ARPA GRANT: ($1,636,538) (1,636,538) Recreation Center Rec Center Office Area Expansion 75,000 - 75,000 30,000 - - - - 2025 Rec Center Surveillance Camera Replacements 60,000 - 60,000 60,000 - - - - 2025 Rec Center Roof Repairs 10,000 - 10,000 10,000 - - - - 2025 Rec Center Painting 20,000 - 20,000 20,000 - - - - 2025 Rec Center Building Key Card Access 62,650 3,702 - 62,650 - - - - 2025 Fitness Area Floor Replacement 110,000 - 110,000 110,000 - - - - 2025 Rec Center Break Room Remodel 15,000 - 15,000 15,000 - - - - 2025 Avon Rec center Hot Water Holding Tank replacement ND 45,000 - 45,000 2026 Rec Center Aquatics D 8,405,000 - 8,405,000 - 2026 Rec center door replacement D 80,000 - 80,000 2027 Fitness Studio/Storage access remodel D 100,000 - 100,000 2027 Rec Center Fitness Expansion D 4,500,000 - - 300,000 4,200,000 2029 Fleet Builidng Fleet Maintenance - HVAC / AC 25,000 10,900 - 14,100 - - - - 2025 Fleet Vehicle Lifts Repair Net $80,000 320,000 - - 320,000 - - - - 2025 CDOT Transit Grant ($240,000) (240,000) Fleet Compressor System 40,000 33,808 - 6,192 - - - - 2025 Fleet Wash Bay Lift Net $44,000 300,000 - 300,000 300,000 2025 CDOT Wash Bay Grant: ($256,000) (256,000) Fleet Maintenance EPDM Roof Replacement 460,000 10,500 - 460,000 - - - - 2025 Fleet Heating Replacement ND 200,000 - 200,000 200,000 - 2025 Facility Office Shop Bldg 351 - Rehab D 950,000 - 150,000 - - 800,000 - 2030 Facility Office Shop D 2,000,000 - - 200,000 1,800,000 2030 Town Hall Building Access Control 82,650 52,311 - 30,339 - - - - 2025 Council AV Improvemnts 125,000 72,391 - 51,009 2025 Town Hall attic ventilation and fire alarm system installation ND 30,000 - 30,000 2026 Public Safety Facility PD Cooling Tower Chemical loop pump 12,000 - - 12,000 - - - - 2025 Town Security Cameras (Avon Station, Pavilion, HAN Park, Courts) 10,000 - 100,000 100,000 - - - - 2025 Total Project Budget Projected CAPITAL PROJECTS FUND 5-YEAR PLAN INVENTORY DETAIL Funding to Likely Increase Funding to Likely Decrease Discretionary (D)Original Current Proposed Budgeted vs Prior Yr. Budget Budget Budget Project Completion Capital Improvement Projects Non Discretionary (ND) Totals 2025 2025 2026 2027 2028 2029 2030 2031 2032 Date Total Project Budget Projected EV Charging Station at PD 100,000 73,620 - 100,000 2025 PSF Security Systems (access) 155,000 - - - - 155,000 - - 2027 PSF HVAC BAS 75,000 - - - - 75,000 - - 2027 Monument Signs for Pocket Parks 75,000 68,502 - 6,498 - - - - 2025 Pavilion emergency back up D 15,000 - 15,000 2026 Family Picnic Shelter ND 535,000 - - 35,000 - 500,000 - - 2027 Parks and Open Space HAN Nottingham Park H.A. Nottingham Park East Improvements Net $3,926,552 4,926,552 659,914 2,736,466 4,926,552 2025 DOLA GRANT: ($1,000,000) (1,000,000) Park Water Fountain Replacement 98,000 3,188 - 98,000 2025 Special Events Meridian Barriers 66,983 66,983 31,520 31,520 2025 Art Pedestal Repairs and Solar Light Install 75,000 - - 75,000 2025 HAN Pavilion - Remove Rust and Paint 20,000 - 20,000 20,000 2025 Upper Field Restoration Net $250,000 D 500,000 - - 500,000 2027 Grant Funding 50/50 ($250,000)(250,000) H.A.N. Park North Restrooms ND 759,754 59,754 - - - 700,000 - - 2027 H.A.N. Park West Restrooms ND 760,000 - - 60,000 - 700,000 - - 2027 O'Neal Spur Park O'Neal Spur Park Parking Lot Rebuild* 100,000 - 100,000 - 100,000 - - - 2025 O'Neal Spur Park Improvements Net $250,000 D 200,000 - - - 50,000 - 150,000 - 2025 Grant Funding 50/50 ($250,000)(100,000) Traer Creek Parks Bosk Apt - P1 250,000 - 250,000 250,000 2025 Eaglbend Park Eaglebend Park Improvements Net $515,000 890,000 67,239 300,000 522,761 2025 GOCO GRANT ($375,000) (375,000) Irrigation Repairs Post Blvd Irrigation Repair 150,000 82,238 - 150,000 2025 Irrigation System and Landscape Design* 80,000 - - 80,000 - - - - 2025 H.A.N. Irrigation System Construction 1,500,000 - - - - 750,000 750,000 - 2028 Trails West Avon Preserve Trail Repair 35,000 - 35,000 35,000 2025 Nottingham Park Rec Trail - North (WBCB to Lake Street) D 1,300,000 - - - - 100,000 1,200,000 2029 Saddleridge Park Saddle ridge Park Refresh D 100,000 - - - 100,000 - - - 2025 Pedestiran Mall Pedestrian Mall Extension Net $5,940,000 6,500,000 30,308 100,000 500,000 - 6,000,000 - - 2026 CEO DEFC Plaza Grant ($560,000) (560,000) Misc Relocate Nottingham Historic Shed D 50,000 - 50,000 2026 Wildland Fire Mitigation D 120,000 120,000 40,000 40,000 40,000 2025 Post Blvd Irrigation and Boulders D 20,000 - 20,000 2026 Streets and Parking Safety Improvments CAPITAL PROJECTS FUND 5-YEAR PLAN INVENTORY DETAIL Funding to Likely Increase Funding to Likely Decrease Discretionary (D)Original Current Proposed Budgeted vs Prior Yr. Budget Budget Budget Project Completion Capital Improvement Projects Non Discretionary (ND) Totals 2025 2025 2026 2027 2028 2029 2030 2031 2032 Date Total Project Budget Projected Avon Road Crossings (RRFB-2025) Net $524,657 1,202,157 190,101 300,000 1,012,056 2025 CDOT Hwy Safety Grant ( $677,500) (677,500) US Hwy 6 Safety and Mobility Improvements Project Net $965,000 6,100,000 874,074 1,500,000 4,600,000 2025 Eagle CO Contribution ($535,000) (535,000) CDOT Revitalize Main Street Grant ($2,000,000) (2,000,000) CDOT Multimodal Options Fund Grant ($2,600,000) (2,600,000) Benchmark Rd Crosswalks (2) - - 50,000 50,000 2025 WBCB - Concrete Repairs* 223,701 - - 223,701 - - - - 2025 WBCB River Bridge Deck Repair & Railing Upgrade Net $223,826 1,119,128 53,849 - 196,151 522,000 - - - 2026 CDOT Off-System Bridge Grant ($895,302) (895,302) Old Trail Road Asphalt Overlay* 789,701 - - - 789,701 - - - 2025 I-70 Off-ramp Streetlight Repair 50,000 - - 50,000 2025 Mobile VMS Sign for Code Enforcement - - 35,000 35,000 2025 East Beaver Creek Blvd Childcare Bus Stop - - 150,000 150,000 2025 Asphalt Overlay Post Blvd. Asphalt Overlay 2,750,000 11,760 - 238,240 - 2,500,000 - - 2027 Lake Street / Riverfront Asphalt Overlay 925,000 - - - 75,000 850,000 - - 2027 Avon Road Asphalt Overlay 2,100,000 - - - 100,000 2,000,000 - 2028 Wildridge Road Asphalt Overlay 2,600,000 - - - 100,000 2,500,000 - 2028 Swift Gulch Road - East Asphalt overlay 673,474 624,038 - - - 50,000 400,000 2029 WBCB - Elementary School to Lake St Asphalt Overlay 700,000 - - - - - 50,000 650,000 2029 West Wildwood East 1,129,968 - 1,129,968 2029 West Wildwood West 384,005 - 384,005 2029 Mountain Star South 443,448 - - 443,448 2030 Wildridge Road E 658,540 - - 658,540 2030 Roundabouts RAB1 & 2 Avon Rd Concrete and Landscaping Redesign D 330,000 - 30,000 30,000 300,000 - - - 2026 Retaining walls Metcalf Road - Retaining Wall Stabilization* 80,000 - - 80,000 2025 RAB5 Post Blvd Bridge Wall Repair 100,000 - 100,000 100,000 2025 Town Wide Retaining Wall Structures Analysis 280,000 - - 80,000 200,000 - - - 2026 Guardrails Annual Guard Rail Repiars 673,474 - 40,000 49,436 40,000 40,000 40,000 40,000 40,000 40,000 40,000 POTENTIAL FOR GOING WORKING Seal coats all Town parking lots 110,000 - 110,000 2026 Village at Avon Railing (white) 70,000 33,974 - - 35,000 2026 Brick work at Avon Station 65,000 2026 Construct Cinders Shelter and Paved Access Road - 250,000 2027 Avon Station bollards and concrete 40,000 2027 Drainage Nottingham Rd Basin 4 Erosion Control 400,000 387,350 - 12,650 2025 Nottingham Reservoir Repairs 300,000 - - 100,000 200,000 - - - 2026 Puder Ditch Headgate Repair (Design & Const) Net $750,000 1,575,000 - 25,000 75,000 - - - 1,500,000 2029 Grant Funding ($750,000) (750,000) Utilities Recycling Center Upgrade* 437,215 278,268 - 158,947 - - - - 2025 Power Line Undergrounding* (part East Park) 481,972 10,144 - 481,972 - - - - 2025 IT Upgrades Recreation and Fleet 50,000 - 50,000 50,000 - - - 2025 CAPITAL PROJECTS FUND 5-YEAR PLAN INVENTORY DETAIL Funding to Likely Increase Funding to Likely Decrease Discretionary (D)Original Current Proposed Budgeted vs Prior Yr. Budget Budget Budget Project Completion Capital Improvement Projects Non Discretionary (ND) Totals 2025 2025 2026 2027 2028 2029 2030 2031 2032 Date Total Project Budget Projected Upgrade Nottingham Puder Ditch Pump Station 300,000 - 300,000 300,000 2025 Nottingham Park Wi-Fi Access** 150,000 19,119 - 130,881 - - - - Broadband (Connection to Thor and Avon PD)** 125,000 46,528 - 78,472 - - - - 2025 Reserve Study Avon Recreation Center 345,724 42,332 159,758 644,224 754,033 Town Hall 57,317 220,491 50,530 Avon Regional Transportation Facitlity 137,950 18,984 Fleet Maintence Facility 193,190 597,121 749,837 154,808 Public Safety Facility 27,720 Parks Garage Avon Performance Pavilion 68,762 2025 Total Capital Improvement Projects 59,525,132 6,279,637 7,302,986 20,414,801 11,370,201 13,877,950 10,378,914 5,603,622 4,747,078 1,434,061 1,087,117 - 970.748.4088 predmond@avon.org TO: Finance Committee Members FROM: Paul Redmond, Chief Financial Officer RE: 2026 Financial Policies DATE: October 29, 2025 SUMMARY: Each year Staff asks Council to review the budgetary policies which drive our budget process (Attachment A). The Town of Avon’s financial policies establish a disciplined framework for budget development, fiscal accountability, and long-term planning. The Town Manager leads the budget process, emphasizing transparency, public engagement, and policy-driven resource allocation. Budgets are prepared using modified accrual accounting, with proprietary fund statements presented on a full accrual basis. The Town maintains a 22% emergency reserve in the General Fund and prioritizes balanced budgets that avoid deferring costs to future years. Capital improvement planning spans five years and categorizes projects by replacement, expansion, or enhancement, with funding strategies tailored to each. Procurement practices promote competitive bidding and value-based selection. The Town also integrates performance metrics, evaluates operating impacts of capital projects and seeks equitable cost recovery through user fees. Debt financing is reserved for projects benefiting future residents, ensuring fiscal sustainability and alignment with community goals. ATTACHMENTS: Attachment A: Financial Policies (Clean and Comparison) Thank you, Paul DRAFT FOR 2026. Proposed changes are shown in redline/strike-out. TOWN OF AVON FINANCIAL AND BUDGETARY POLICIES The following budget policies are intended to help provide general guidance for operating and CIPthe budget preparation, adoption, and implementation. These budget policies are intended to be reviewed and updated as appropriate each year. GENERAL BUDGETARY POLICIES 1. Responsibilities. Prior to the beginning of each fiscal year, theThe Town Manager shall prepare and submit to the Council a recommended budget for the next fiscal year and an accompanying message. by October 15. The Town Manager may delegate this responsibility to a budget officer. If so delegated, the budget officer has full responsibility for managing the coordination and administration of the budget process. The budget is a resource-allocation policy document. Council’s primary focus should be on policy issues. Major policy issues such as funding priorities and “macro” problems shall be described in the budget document. As representatives of the public interest, elected officials frequently devote considerable time and energy to examining details of government operations. This watchdog function is important and is an inevitable part of the budget review process. However, excessive review of details may preclude thoughtful study of broader policy issues that rightfully should dominate public policy debate. The Town Manager, Chief Financial Officer, and Department Directors shall be expected to provide sufficient information to help frame the policy review and debate.. 2. Communication. The budget document shall be prepared so that it facilitates public study and effectively communicates key economic issues and fiscal policies. The TownAvon should avoid preparing a budget document that is so detailed that it does not communicate effectively with the public. 3. Long-range Planning. The operating budget shall be developed with a focus on long-term financial balance. Long-term financial commitments should be evaluated closely. Non-recurring revenues and resources should not be used to finance continuing operations. A 3-year, long-range plan providing projections of revenues and expenditures for the general, special revenue, and debt service funds will be prepared and updated annually to provide prospective to each annual budget process. [NOTE: Avon has never prepared a 3 year, long range plan] Public Involvement. Opportunities should be provided for public input at the beginning of the budgeting process as well as during the Council’s public review and budget adoption. Efforts to improve the legitimacy of the budgeting process by involving the public shall be encouraged. Town Council and staff should seek to obtain resident and business reactions before the budget becomes adopted. 4. Level of Service. The TownPublic Involvement. Avon shall comply with Colorado Local Government Budget Law by providing a draft of the budget to the public by October 15. Avon shall strive to review drafts of revenue projections, personnel expenses and Capital Improvements Project budget at regular Council meetings prior to October 15. Specific budget or financial matters may be referred to the Finance Committee when determined appropriate. Council shall schedule public hearings on the draft budget at every regular Council between October 15 and adoption of the budget in December. 4.5. Level of Service. Avon shall endeavor to maintain its current level of service to its citizens. No increase or decrease in service should be planned except for items discussed during the budget planning process. 5.6. Performance Measurement. Efficiency and economy in the delivery of Townpublic services is always a priority. Where possible, the Town Avon will endeavor to integrate performance measurements and productivity indicators within the budget. FINANCIAL POLICIES 1. Basis of Accounting. All governmental fund budgets are prepared using the modified accrual basis of accounting. Under this method, revenues are recognized when susceptible to accrual, that is, measurable and available. Available means collectible in the current period or soo n enough thereafter to be used to pay liabilities of the current period. Expenditures, other than interest on long - term obligations that is recorded when due, are recognized when they are expected to be liquidated with expendable available resources. All proprietary fund financial statements are presented using the accrual basis of accounting. This is the preferred method for proprietary funds under the general accepted accounting principles. When using the accrual basis of accounting revenues are re corded when earned and expenses are recorded at the time of liabilities are incurred. All proprietary fund budgets are also prepared using the modified accrual basis of accounting. While this method is not recognized as generally accepted for proprietary funds, it remains the most practical for the Town of Avon for budgetary purposes. 2. Budgetary Control. Budgetary control is maintained at the departmentalDepartment level as directed by the Town Charter. All noncapital fund appropriations lapse at the end of the Town’sAvon’s fiscal year. 3. The Finance DepartmentDivision operates and maintains the Town’sAvon’s centralized accounting system. Accounting records are maintained in accordance with all legal requirements and generally accepted accounting principles. This automated accounting system, including the Finance Department’sDivision’s policies and procedures and organizational structure, provides multiple levels of controls on expenditures of funds. 4. In addition to the Town’sAvon’s internal controls, the TownAvon employs a Certified Public Accounting Firm to annually audit its accounting records and review its internal controls. The TownAvon also submits its Comprehensive Annual Financial Report to the Government Finance Officers Association for review regarding conformance to financial reporting standards. The Town Avon has received the Certificate of Achievement for excellence in Financial Reporting each year since 1991. 5. Fund Balances. Fund balances shall be maintained at levels sufficient to absorb unpredictable revenue shortfalls and to ensure desired cash flow levels. Fund balances should also be maintained at levels sufficient to avoid undesirable borrowing. “Surplus” fund balances should be committed first to capital needs. The General Fund emergency reserves shall consist of the State of Colorado’s required 3% TABOR restriction along with an additional emergency reserve of 22% for a total emergency reserve of 25% of Avon’s budgeted General Fund expenditures. Avon has maintained a minimum total emergency reserve of 25% since 2015. 6. Revenues. Revenues provide the resources by which the TownAvon carries out its mission, goals and objectives. Revenue policies in general shall strive to improve the equity and efficiency of the Town’sAvon’s revenue structure. The TownAvon shall strive to diversify and broaden its supporting revenue base. 7. Cost Recovery Fees and User Fee Levels. Cost recovery fees, where appropriate, should be established to ensure that rates are equitable and cover the total cost of providing the service or that portion of the total cost deemed appropriated by the TownAvon. All fee schedules should be reviewed annually as a part of the budget process and adjusted accordingly. 8. Grants. The TownAvon shall aggressively seek a fair share of available State and Federal financial support. unless conditions attached to such assistance are contrary to the Town’s interest. Prior to applying for and accepting intergovernmental aid, the TownAvon will examine the matching requirements so that the source and availability of these funds may be determined before the grant application is made. 9. The TownAvon shall assess the merits of a particular program as if it were funded with local tax dollars. Local tax dollars will not be used to make up for losses of intergovernmental aid without first reviewing the program and its merits. 10. Balanced Budget. The Town of Avon will develop balanced budgets in which current resources (current revenues plus beginning fund balance) will equal or exceed current expenditures. The TownAvon will avoid budgetary and accounting procedures which balance the budget at the expense of future budgets, such as: postponing expenditures, accruing future years ’ revenues, or rolling over short-term debt. The budget will provide for adequate maintenance and replacement of capital plantvehicles and equipment. All budgetary procedures will conform with existing state and local regulations. Contingencies. The budget shall include a line item for contingencies for unexpected or unplanned expenditures and emergencies. No transfer from this line item shall be made without the approval of the Town Council. The amount provided for shall be a minimum of 0.5% of total operating expenditures within the General Fund. Procurement. Procurement practices should promote maximum value and economy through a competitive process. Vendors and Service providers should be selected using processes that minimize opportunities for favoritism. The Town’s purchasing and procurement process should encourage life-cycle costing, value analysis, cooperative purchasing, and efficient disposition of surplus assets. Local vendors should be preferred only when such practices are shown to benefit Town citizens and taxpayers. Emergency purchases should be minimized. 11. Procurement. Avon shall follow Procurement Policies set forth in a resolution adopted by Council. CAPITAL IMPROVEMENT AND DEBT FINANCING POLICIES Capital improvement policies provide for the systematic repair and/or replacement of existing capital assets. Capital Improvement Program. The TownProject Plan (“CIP Plan”). Avon will plan for capital improvements over a multi-year period. The Capital Projects Fund 5-Year Plan represents the Town’s commitmentnext seven years. The CIP Plan shall prioritize maintenance of existing public infrastructure with particular attention to a multi-year CIP programany public safety considerations. The CIP Plan shall be structured to maximize efficiency with staff capacity, achieve positive cash flow, and relates directly to other long-range plans and policies of the Town.implement Council’s priorities for new public infrastructure. . The planCIP Plan will be updated each year as part of the budget planning process. The planCIP Plan may include (in years other than the first year of the plan) “unfunded” projects that carry out the Town’sAvon’s strategic and general objectives, but it should also include capital spending that identifies specific projects that can and will be completed with known funding sources. The capital improvements programCIP Plan will incorporate in its projections of expenditures and funding sources any amounts relating to previous year’s appropriations, but which have yet to be expended. 1. The first year of the 5-Year CIP Plan will be used as the basis for formal fiscal year appropriations during the annual budget process. Appropriations made in prior years for which expenditures have not been changed nor projects completed will be reevaluated and incorporated into appropr iations for the next fiscal year. 2. Operating Impacts. An economic impact analysis, Maintenance and aReplacement Costs. An estimate of operating, maintenance impact statementand replacement costs for new capital improvements shall be prepared by staff when submittingconsidering a major new capital improvement project to Council for consideration for inclusion in the CIP program and 5-Year Plan. Operating fund budgets to maintain capital improvements and additional staff needs must be identified, estimated and amended if necessary, prior to making a final decision to approve and undertake a specific capital improvement project. 3. Technology. New and emerging technologies should be evaluated for opportunities for use. Where new technologies permit labor savings or allow other cost reductions capital spending can help balance future budgets. Capital Financing. Capital improvements will be financed primarily through the Town’sAvon’s Real Estate Transfer Tax, other user fees, service charges, assessments, or developer agreements when benefits can be specifically attributed to users. 4. in a new development and available unrestricted General Fund reserves. Development impact fees should be created and implemented at levels sufficient to ensure that new development pays its fair share of the cost of constructing necessary community facilities. Debt financing is appropriate when there is a current capital improvement demand that cannot be financed with available funds and when the debt service burden shall be borne by existing and future users benefiting from the capital improvement. Caution should be exercised to ensure annual debt service payments do not obligate a disproportionate amount of annually available funds for capital improvements and restrict the flexibility and discretion of future Councils. Debt financing is appropriate only as a means of matching facilities’ costs with the benefits enjoyed by future residents. 5. Projects should be Capital Improvement Categories. Capital improvements shall be categorized as follows, with financing noted for each category: : (1) 1. Replacement (Non-Discretionary) – capital expenditures relating to normal replacement of worn or obsolete capital plantpublic infrastructure, facilities or equipment should be financed on a pay-as-you-go basis, with debt financing only considered when appropriate.the public demand for replacement is immediate and necessary funds are not available . Depreciable assets should, whenever possible, be financed through internal service funds ;. Replacement of existing public infrastructure, facilities or equipment upon reaching the end of its useful life is considered “Non-Discretionary” unless there is no longer a public demand for such capital improvement. 2. Expansion – capital expenditures relating to New Capital Improvements (Discretionary) –the construction of new or expanded facilities necessitated by growthcapital improvements, including public infrastructure, facilities or new equipment, should be financed primarily on a pay-as-you- go basis, but when new improvements can be determined to benefit the overall population in the future, debt financing may be appropriate; (2) 3. Unusual – some. New capital expenditures for improvements enhance the quality of life in the Townhave a lower priority and are secondary to replacement of Avon and are consistent with the Town’s goals but cannot be categorized as essential for the provision of basic services or maintenance of the useful life of existing facilities. The source of funding in this category shall be determined by looking to the ultimate beneficiary of the capital improvement. existing public infrastructure, facilities and equipment. 970.748.4088 predmond@avon.org TO: Finance Committee Members FROM: Paul Redmond, Chief Financial Officer RE: Planning Area A Financial Projections DATE: October 28, 2025 SUMMARY: The financial projections and development metrics for Planning Area A over the next five years outline assessed valuations, tax revenues, and fee structures for retail spaces, restaurant pads, and condominium phases. Key components include property tax calculations based on mill levy and assessment ratios (6.8% for residential, 25% for commercial), annual TIF contributions to the Avon Downtown Development Authority and cumulative tax revenues. It also specifies retail and accommodation sales fees, real estate transfer taxes and water/permit fees. Development phases feature major retail spaces (e.g., Whole Foods), multiple restaurant pads and condo/hotel units; projected buildout values exceed $281M. The model emphasizes incremental and cumulative impacts on local tax revenues, sales tax collections and infrastructure fees, illustrating the long-term economic contribution of Planning Area A to Avon’s growth. This report is informational only. Thank you, Paul ATTACHMENTS: Attachment A: Planning Area A 2026 Assessment Rates Non-Village Residential Commercial Mill Levy Assessment Ratio Assessment Ratio 56.942 6.80% 25.00% Trear Creek Metro District Avon Downtown Development Authority BOSK Avondale Town of Avon WFM Pad #1 Pad #2 Skjol 1A Skjol 1B BOSK Avondale Number of Units 111 50 50 242 40 LSF 26,000 2,500 3,700 - - 45,000 20,000 Value per SF 550.00$ 800.00$ 800.00$ 2,000,000.00$ 2,200,000.00$ 800.00$ 800.00 Value 14,300,000.00$ 2,000,000.00$ 2,960,000.00$ 100,000,000.00$ 110,000,000.00$ 80,000,000.00$ 16,000,000 Assessed Value For Assessor 3,575,000.00$ 500,000.00$ 740,000.00$ 6,800,000.00$ 7,480,000.00$ 5,440,000.00$ 4,000,000$ Annual TIF Property Tax for DDA 170,322.06$ 17,082.60$ 25,054.48$ 387,205.60$ 425,926.16$ 309,764.48$ -$ Retail Sales Fee * 880,000.00$ 60,000.00$ 80,000.00$ 27,918.80$ 27,918.80$ -$ -$ Accommodation Sales Fee -$ -$ -$ 27,918.80$ 27,918.80$ -$ -$ Add on Retail Sales Fee 165,000.00$ 11,250.00$ 15,000.00$ 5,234.78$ 5,234.78$ -$ -$ 4% TOA Sales Tax on Sales Fee 41,800.00$ 2,850.00$ 3,800.00$ 2,442.90$ 2,442.90$ -$ -$ RETT (Recorded at the time of sale)286,000.00$ 40,000.00$ 59,200.00$ 2,000,000.00$ 2,200,000.00$ 1,600,000.00$ -$ Water Tap Fees 51,500.00$ 4,000.00$ 6,900.00$ 180,000.00$ 180,000.00$ 368,000.00$ 180,000.00$ Water Usage Fee $3.25 per SFE 338.00$ 32.50$ 48.10$ 1,755.00$ 1,755.00$ 9,438.00$ 1,560.00$ Totals Traer Creek 1,217,500.00$ 104,000.00$ 146,100.00$ 2,235,837.60$ 2,435,837.60$ 1,968,000.00$ 180,000.00$ Avon DDA 170,322.06$ 17,082.60$ 25,054.48$ 387,205.60$ 425,926.16$ 309,764.48$ -$ Town of Avon 207,138.00$ 14,132.50$ 18,848.10$ 9,432.67$ 9,432.67$ 9,438.00$ 1,560.00$ Totals Traer Creek 8,287,275.20$ Avon DDA 1,335,355.38$ Town of Avon 269,981.94$ RETAIL: CONDO: One to Five Years