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TC Packet 06-23-2026_____________________________________________________________________________________ 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 INDIVIDUALS WITH DISABILITIES ARE ENCOURAGED TO PARTICIPATE IN ALL PUBLIC MEETINGS SPONSORED BY THE TOWN OF AVON. IF YOU REQUIRE A DISABILITY ACCOMMODATION, PLEASE CONTACT THE TOWN CLERK, MIGUEL JAUREGUI CASANUEVA, AT 970-748-4001 OR MJAUREGUI@AVON.ORG WITH YOUR REQUEST. REQUESTS SHOULD BE MADE AS SOON AS POSSIBLE BUT NO LATER THAN 72 HOURS BEFORE THE SCHEDULED PUBLIC EVENT. AVON TOWN COUNCIL MEETING AGENDA TUESDAY, June 23, 2026 MEETING BEGINS AT 5:00 PM Hybrid meeting; in-person at Avon Town Hall, 100 Mikaela Way or virtually through Zoom, Zoom registration is on the header at Avon.org AVON TOWN COUNCIL PUBLIC MEETING BEGINS AT 5:00 PM 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF AGENDA 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS 4. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA Public comments are limited to three (3) minutes. The speaker may be given one (1) additional minute subject to Council approval. 5. CONSENT AGENDA 5.1. Approval of June 9, 2026 Regular Council Meeting Minutes (Town Clerk Miguel Jauregui Casanueva) 5.2. ACTION: Appointments to the Avon Downtown Development Authority Board (Chief Administrative Office Ineke de Jong) 6. BUSINESS ITEMS 6.1. PRESENTATION: Eagle Valley Community Foundation Updates (EVCF Director of Development & Marketing Grace Anshutz and Development Officer Hillary Scanlan) 6.2. PRESENTATION: Energy Smart Colorado Updates and 2025 accomplishments (Walking Mountains Sustainability Programs Director Nikki Maline) 6.3. ACTION: Swearing In & Badge Pinning of Detective Corey Baldwin and Sergeant Alan Hernandez (Chief of Police Greg Daly) 6.4. PRESENTATION: Police Presentations & Awards (Chief of Police Greg Daly) • Presentation of Avon Police Department 2025-2026 Awards • Annual report presentation/PowerPoint and a presentation by the Avon Police Criminal Investigation Bureau on Leveraging Technology to Bring Justice to our Crime Victims. 6.5. ACTION: Approval of Axon Contract Renewal (Chief of Police Greg Daly) 6.6. PRESENTATION: Overview of DestiMetrics Reports & Graphs (Financial Analyst Chase Simmons) 6.7. PRESENTATION: Colorado Energy Office Local Implementation, Mitigation, and Policy Action (“IMPACT”) Accelerator Grant Introduction (Sustainability Manager Charlotte Lin) 6.8. ACTION: Acceptance of 2025 Annual Comprehensive Financial Report (Chief Financial Officer Paul Redmond) 7. WRITTEN REPORTS 7.1. Planning & Zoning Commission June 8 Meeting Minutes (Development Coordinator Emily Block) 7.2. Monthly Financials (Senior Accountant Dean Stockdale) 7.3. Quarterly Sustainability Report (Sustainability Manager Charlotte Lin) 7.4. Updated Facial Recognition Accountability Report (Chief of Police Greg Daly) _____________________________________________________________________________________ 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 INDIVIDUALS WITH DISABILITIES ARE ENCOURAGED TO PARTICIPATE IN ALL PUBLIC MEETINGS SPONSORED BY THE TOWN OF AVON. IF YOU REQUIRE A DISABILITY ACCOMMODATION, PLEASE CONTACT THE TOWN CLERK, MIGUEL JAUREGUI CASANUEVA, AT 970-748-4001 OR MJAUREGUI@AVON.ORG WITH YOUR REQUEST. REQUESTS SHOULD BE MADE AS SOON AS POSSIBLE BUT NO LATER THAN 72 HOURS BEFORE THE SCHEDULED PUBLIC EVENT. 8. MAYOR AND COUNCIL COMMENTS & MEETING UPDATES 9. ADJOURN Public Comments: Council agendas shall include a general item labeled “Public Comment” near the beginning of all Council meetings. Members of the public who wish to provide comments to Council greater than three minutes are encouraged to schedule time in advance on the agenda and to provide written comments and other appropriate materials to the Council in advance of the Council meeting. The Mayor shall permit public comments during any agenda item and may limit public comment to three minutes per individual, which limitation may be waived or increased by a majority of the quorum present. The timer for public comment shall begin promptly after the speaker states their name and place of residence. Article VIII. Public Comments, Avon Town Council Simplified Rules of Order, Amended and Readopted by Resolution No. 24-17. AVON REGULAR MEETING MINUTES TUESDAY JUNE 9, 2026 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 1 1. CALL TO ORDER AND ROLL CALL The meeting was held in a hybrid format, in person at Avon Town Hall and virtually via Zoom. Mayor Tamra N. Underwood called the Regular Council Meeting of June 9, 2026, to order at 5:13 p.m. At roll call, Councilors present in person were Chico Thuon, Ruth Stanley, Lindsay Hardy, Kevin Hyatt, Mayor Pro Tem Richard Carroll, and Mayor Tamra N. Underwood. Councilor Gary Brooks was absent. Also present were Town Manager Eric Heil, Deputy Town Manager Patty McKenny, Chief Administrative Officer Ineke de Jong, Town Attorney Nina Williams, Town Clerk Miguel Jauregui Casanueva, Recreation Director Michael Labagh, Financial Analyst Chase Simmons, Public Works Director Mike Jackson, Community Development Director Matt Pielsticker, Planning Manager Jena Skinner, IT Administrator Andrew Bare, and Police Chief Greg Daly. 2. APPROVAL OF AGENDA Video Start Time: 00:13:40 Mayor Underwood opened consideration of the agenda, and during discussion requested that Business Items 6.3 and 6.4 be removed to allow for additional work. Mayor Pro Tem Carroll then moved to approve the agenda as amended, which was seconded by Councilor Hardy and passed unanimously, 6–0. 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS Video Start Time: 00:14:45 Mayor Underwood asked whether there were any conflicts of interest related to agenda items, and none were disclosed. 4. PUBLIC COMMENT Video Start Time: 00:14:55 Mayor Underwood explained the public comment process, noting that comments could be provided in person, via Zoom, by telephone, or by email. Public comment was limited to items not listed on the agenda, with a three‑minute time limit per speaker and an additional minute at Council’s discretion. Justin Chesney, an Avon resident and Westin Riverfront employee, addressed Council in person and expressed appreciation for the Town’s support of Mountain Pride’s Pride in the Park celebration during Pride Month in June, which celebrates the culture, history, and civil rights achievements of the LGBTQ+ community. He noted that the Pride in the Park event is scheduled for Saturday, June 13, 2026, from 12:00 p.m. to 7:00 p.m. at Harry A. Nottingham Park and referenced a Pride Month proclamation issued by Eagle County. He also recognized the Westin Riverfront’s commitment to hosting and supporting related Pride events. Tim McMahon, an Avon resident, addressed Council and questioned the Town’s approach to water usage for Town-owned elements, expressing concern regarding potential circumvention of existing water restrictions and whether such practices demonstrated leadership by example. He noted that the Town of Vail is no longer washing its buses and requested that the Town of Avon consider a similar approach. He also provided information that Eagle County Paramedics offers free Narcan kits in Edwards, noting that availability may vary based on stock. AVON REGULAR MEETING MINUTES TUESDAY JUNE 9, 2026 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 2 Chris Miller, an Edwards resident, addressed Council and expressed concern regarding changing weather patterns, severe drought conditions, and fire danger, and spoke in opposition to the use of fireworks. She referenced a prior fireworks-related incident at the park in 2015 and noted that fireworks have caused fires and that embers can travel significant distances from the launch area, creating ongoing risks and impacts on local fire service personnel. She further emphasized the potential negative impacts on wildlife during a drought-sensitive seasonal period. She stated that drone light shows are a safer alternative and requested that the Town adopt a permanent policy banning fireworks in Avon. Andie Noakes, an Eagle resident and candidate for Eagle County Assessor, addressed Council and presented his candidacy. Becky Close, an Eagle resident and candidate for Eagle County Clerk and Recorder, addressed Council and presented her candidacy. No additional public comment was received at that time, either in person or virtually. 5. CONSENT AGENDA Video Start Time: 00:29:30 Mayor Underwood introduced the Consent Agenda, which included: 5.1. ACTION: Approval of May 26, 2026 Regular Council Meeting Minutes (Town Clerk Miguel Jauregui Casanueva) 5.2. ACTION: Approval of Amendment to the Town Manager Employment Agreement (Mayor Tamra N. Underwood) Councilor Thuon moved to approve the Consent Agenda, as presented. Councilor Stanley seconded the motion. The motion passed unanimously, 6-0. 6. BUSINESS ITEMS 6.1. PRESENTATION: Speak Up Reach Out (SURO Program and Events Director Laura Alvarez) Video Start Time: 00:30:00 SURO Program and Events Director Laura Alvarez delivered a presentation related to Speak Up Reach Out activities in the Valley. She introduced SpeakUp ReachOut, a community-based initiative focused on reducing suicide in Eagle County through education, awareness, and connection. She stated it emphasizes that open conversations about suicide can promote healing and reduce stigma, while presenting local data showing suicide trends and highlighting that rates in Eagle County are higher than the national average, particularly among middle-aged men and certain occupations. The presentation also noted encouraging trends from youth surveys, indicating declines in self-harm, depression, and suicidal ideation among students. The presentation outlined a comprehensive prevention framework centered on partnerships, training, and community engagement, including peer support groups, school programs, professional training, and public events. It stressed the importance of compassionate, person-first language and practical prevention strategies such as increasing access to mental health resources and reducing access to lethal means, including firearm safety measures. AVON REGULAR MEETING MINUTES TUESDAY JUNE 9, 2026 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 3 She underscored that community involvement, education, and accessible support services are key to preventing suicide and promoting mental well-being. Mayor Underwood highlighted the positive news that suicides statistics are down in our community. As this was a presentation to Council, no public comment was received. 6.2. ACTION: Development Plan Extension - Lot 3 (Mountain Vista) (Community Development Director Matt Pielsticker) Video Start Time: 00:41:25 Community Development Director Matt Pielsticker delivered a presentation related to the Development Plan Extension - Lot 3 (Mountain Vista). The presentation outlined the status and proposed extension of the Lot 3 Mountain Vista development project in Avon’s Town Core. It summarized the project timeline, including Council approval of the major development plan in 2023, execution of the development agreement in 2024, and subsequent minor plan updates and permit submission in 2025. Council previously approved a short extension in March 2026, and the current request sought additional time before the existing approvals expire. The presentation also highlighted key modifications from the original approval, including a shift from a 158-room hotel to a 111-unit condo-hotel with short-term rentals, slight adjustments to parking, building coverage, landscaping, and architectural elements, while maintaining height limits. Director Pielsticker concluded by presenting options for Council consideration and recommending approval of a one-year extension through June 27, 2027, to allow the project to proceed under the updated plan. Brian Smith, Director of Development for Copford Capital Management, and Mike Warren, its General Counsel, presented a request to extend the Lot 3 Mountain Vista development agreement by 12 months due to delays caused by contractor availability, repricing, and permitting challenges. They reviewed the project’s background and prior approvals, noting the evolution from an original hotel concept to a mixed hotel/condo development with upgraded design, amenities, and branding, and provided updates on ongoing progress, including near-complete permitting and coordination with project partners. They explained that additional time is needed to complete contractor reselection, finalize project pricing, secure financing, and commence construction, and formally requested an extension to June 27, 2027 to allow the project to proceed while addressing issues with the originally selected contractor, including identified inconsistencies and necessary repricing of the plans. Mayor Pro Tem Carroll asked why the project shifted from a hotel-only model to a hotel/condo mix, and the applicant explained that the revised approach allows the developer to retain additional units while reducing overall capitalization requirements for the project. He also asked about the use of stacked parking at the site, and the applicant stated that valet parking will be mandatory, while adding the project exceeds minimum parking requirements, and stacked parking would not be utilized by valet operators unless the lot reaches full capacity. He further inquired whether the developer was confident in selecting a contractor in the next 12 months, and the applicant responded that they are confident in doing so, while noting that the contractor will ultimately drive the construction start timeline. AVON REGULAR MEETING MINUTES TUESDAY JUNE 9, 2026 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 4 Mayor Underwood asked whether a building permit had been issued, and the applicant responded that it had not yet been pulled but was near completion, noting that most outstanding items relate to contractor logistics rather than design. She also inquired why representatives from Stonebridge LLC were not present, and Mike Warren explained that this was due to a corporate reorganization and did not reflect any change in ownership. She expressed enthusiasm for the project’s interest in utilizing the Town’s heat recovery system and asked Director Pielsticker to assist with the energy offset program related to snowmelt, noting that the program remains under development and details are still to be determined. She further inquired about the smaller connection behind Avon Town Hall and asked about that feature, which was addressed by Planning Manager Jena Skinner. Mayor Underwood opened the floor to public comment. No public comment was received at that time, either in person or virtually. Mayor Pro Tem Carroll thanked the presenters and wished them success in replacing the contractor, and Councilors Thuon, Hardy, Stanley, and Hyatt likewise expressed appreciation for the presentation, including the proposed use of the Town’s heat recovery system, and offered their support, with Council collectively indicating consensus in favor of the requested extension. Mayor Underwood also thanked the applicants, expressed support for the proposed active restaurant and bar as a contributor to area vibrancy, and raised concerns regarding parking availability, noting the need for the Town to accelerate development of additional parking given this project and the upcoming Summit development. Following deliberation, Councilor Stanley moved to approve the extension of the Lot 3 Mountain Vista for one year, to June 27, 2027. Councilor Hardy seconded the motion. The motion passed unanimously, 6–0. 6.3. ORDINANCE 26-06: First Reading Construction Noise Regulations (Community Development Director Matt Pielsticker) 6.4. ACTION: Notice of Award for Avondale Apartments (Community Development Director Matt Pielsticker) 6.5. ORDINANCE 26-09, First Reading Code Text Amendment for RETT Exemptions (Financial Analyst Chase Simmons) Video Start Time: 01:13:45 Financial Analyst Chase Simmons introduced the topic of Ordinance 26-09: First Reading Code Text Amendment for RETT Exemptions, indicating the proposed Ordinance presents amendments to the Town of Avon’s Real Estate Transfer Tax (RETT) primary residence exemption application process, primarily to streamline administration and align with recent Council precedent. He indicated currently, applications must be filed within four months of property transfer, with late submissions requiring Council review; however, staff notes that Council has recently approved applications up to one year after transfer. He added the proposed ordinance extends the application deadline from four to twelve months and removes the “good cause” exception, thereby simplifying the process and reducing administrative burden on both staff and Council and emphasized that the proposed changes are AVON REGULAR MEETING MINUTES TUESDAY JUNE 9, 2026 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 5 procedural in nature with no financial impact, while promoting efficiency and consistency within the Municipal Code. Mayor Underwood opened the floor to public comment, and no comments were received either in person or virtually. Councilor Thuon then moved to approve first reading of Ordinance 26-09, amending Chapter 3.12.070 regarding Real Property Transfer Tax exemption applications and appeals, with second reading scheduled for July 28, 2026, which was seconded by Councilor Stanley. The motion passed unanimously, 6–0. 6.6. WORK SESSION: Private Parking Regulations, discussion of new parking fine complaints and direction on Private Parking Regulation options, including criminal penalties for fraudulent and deceptive practices, additional regulations or prohibition of automated private parking management systems, and referral of ballot question to the November 2026 election to impose tax on parking fines, and additional regulations as deemed appropriate and necessary (Town Manager Eric Heil and Town Attorney Nina Williams) Video Start Time: 01:18:15 Town Manager Eric Heil introduced a work session on private parking regulations with Town Attorney Nina Williams, explaining that it was prompted by recent complaints involving multiple commercial properties, particularly concerns about fines being issued by mail without notice at the time of violation. He noted that this practice reflects negatively on the Town of Avon and that, while the full extent of reputational impact is difficult to quantify, it remains a significant concern. Mayor Underwood expressed concern regarding private parking enforcement practices, noting that property owners had previously agreed to provide free parking in good faith, yet current practices, particularly delayed ticketing issued weeks or months after the violation, have negatively impacted tenants and visitors. She questioned whether the proposed regulation referencing a “minimum time frame” should instead be a maximum time frame, which Town Manager Heil clarified was the intent, and emphasized her preference for violations to be addressed in real time rather than through delayed enforcement. She wondered if this is a tortious interference. Councilor Stanley asked whether the Town could regulate limits on excessive parking penalties, and Town Attorney Nina Williams indicated that the proposed ordinance could address this through business licensing requirements by establishing a maximum allowable fine and signage. She asked if the system is automated, and was advised it is by Town Manager Heil. Councilor Hyatt asked whether the Town could require that citations be postmarked rather than sent within five days of the violation, citing concerns with postal reliability, and Town Manager Heil confirmed that this could be explored. Mayor Underwood expressed concern that automated or remote enforcement systems may be perceived as predatory, noting that members of the public may not understand they are entering into a private parking agreement when using what appears to be free parking, which can result in delayed $30 penalties, and stated her preference for on-site enforcement through ticket kiosks or personnel. Councilor Hardy also raised concerns regarding the collection and potential misuse of personal data required for parking registration. AVON REGULAR MEETING MINUTES TUESDAY JUNE 9, 2026 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 6 Mayor Underwood opened the floor to public comment. Brian Nolan, a local business owner and restauranteur, addressed Council virtually and expressed strong concerns regarding private parking enforcement, describing the current system as reflecting “the worst hospitality” the Town can offer. He stated that the number of complaints heard by the Town likely represents only a fraction of those affected, emphasized that the system is not working, and urged the Town to take action to correct the issue. No additional public comment was received at that time, either in person or virtually. Mayor Pro Tem Carroll thanked staff for promptly addressing the issue and summarized the history of ongoing concerns with private parking enforcement, expressing frustration with the lack of follow- through from property managers and the negative impacts on tenants and businesses. He characterized the requirement to register or be fined for “free” parking as misleading, stating that free parking should not require registration, and described the practice as, at a minimum, deceptive and akin to a scam. Councilor Stanley stated she is disappointed there is not more public participation on this topic. Using mayoral discretion, Michelle Geringer, a Director of Property Management with Hoffman Properties, provided public comment virtually after the close of the public comment period, noting she participates in meetings when notified and had only learned of this work session the previous day. She stated she was present primarily to listen and did not offer a definitive position but explained that continued parking registration requirements are intended to maintain consistent user behavior between winter and summer seasons, and expressed a willingness to work collaboratively with Town Manager Heil to identify solutions. Mayor Pro Tem Carroll thanked her for participating and asked whether she would be the appropriate point of contact for ongoing coordination, which she confirmed, noting she is involved along with "5 Star" (Five Star Valet) and "PRRS" (Parking Revenue Recovery Services) which operate the private parking and enforcement systems for Hoffmann Commercial Real Estate in Avon; he also expressed concern based on prior experiences and inquired about follow-up, to which she indicated that Town Manager Heil has her contact information. No additional public comment was received. As this was a work session, staff received feedback to continue their work as directed. 6.7. PUBLIC HEARING: ORDINANCE 26-04 Enacting Avon Municipal Code 5.14 – Private Parking Lot Regulations on One Reading as Necessary for the Immediate Preservation of the Public Health and Safety (Town Manager Eric Heil) Video Start Time: 01:48:35 Town Manager Eric Heil delivered a presentation related to ORDINANCE 26-04 Enacting Avon Municipal Code 5.14 – Private Parking Lot Regulations on One Reading as Necessary for the Immediate Preservation of the Public Health and Safety. He introduced Ordinance 26-04, which established new regulations under Avon Municipal Code Chapter 5.14 governing private parking lots in response to concerns about signage, transparency, and enforcement practices. The presentation illustrated existing conditions at locations such as Hoffman Properties and Avon Town Square, highlighting inconsistent signage, registration requirements, and user confusion, and emphasized the need for clearer standards. A key provision of the ordinance proposed that the maximum total AVON REGULAR MEETING MINUTES TUESDAY JUNE 9, 2026 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 7 rate, fee, or penalty for a single visit be clearly posted in a visible and numerical format, regardless of how the charge is labeled, to ensure transparency for users. The presentation concluded with a proposed motion to approve the ordinance on first and final reading as necessary to protect public health and safety. Mayor Underwood asked how many iterations of the ordinance had been brought forward for Council consideration, and Town Clerk Jauregui Casanueva identified prior versions presented on December 9 and December 30, 2025, and January 9, April 7, 2026, and this evening, with Town Manager Heil adding that the ordinance and underlying issues are not new. Councilor Stanley asked about the timeline for the ordinance to take effect, and Town Manager Heil explained that the standard effective date is 30 days after adoption, allowing sufficient time for property owners to update signage to comply with the ordinance. Mayor Underwood also asked when Community Development would provide guidance for compliant signage, and Town Manager Heil indicated that the policies would be distributed directly to private parking operators and posted on the Town’s website. Mayor Underwood opened the public hearing to public comment, and Michelle Geringer, a property manager with Hoffman Properties, provided comment virtually, stating that they had previously requested additional time and an extension prior to adoption of the ordinance in order to review and provide feedback on the proposed regulations. She noted the presence of multiple past iterations of signage standards and requested clearer direction, indicating that there had not appeared to be consistent Council consensus historically. Mayor Underwood responded that additional clarity would be provided following Council discussion, and no further public comment was received at that time, either in person or virtually. Town Attorney Nina Williams noted that a prior version of the ordinance had last been discussed in April and was placed on hold until August based on a good faith understanding that enforcement would be discontinued, while Town Manager Heil advised that staff would provide private parking operators with draft signage standards by the end of the week to facilitate compliance. He further emphasized that a primary focus of the ordinance is to establish a maximum timeframe for issuing citations by mail, addressing concerns about delayed enforcement, which has been identified as a key issue negatively affecting businesses and visitors. Mayor Underwood clarified that the primary concern raised in complaints relates to what she described as deceptive and misleading enforcement practices, particularly the imposition of fines for failure to register. She noted that while base penalties may be approximately $30, additional charges can increase totals significantly, and emphasized that the issue is not the ability to charge for parking after a certain period, but rather the perception of predatory practices that are negatively impacting visitors, businesses, and the Town’s reputation. Mayor Underwood read into the record a couple of corrections to the proposed ordinance, directing Town Attorney Nina Williams to incorporate the revisions into the final adopted version, including AVON REGULAR MEETING MINUTES TUESDAY JUNE 9, 2026 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 8 clarifying language in Section 5.14.060(c) to end with “, officers and managers,” and adding a second sentence to Section 5.14.080(b)(6) as follows: “This includes any total amount charged to a customer or individual, whether such dollar amount is called a rate, charge, cost, fee, penalty, fine, assessment, failure to register penalty, or the like." Councilor Thuon stated that the issue has negatively impacted the Town’s image, while Councilor Hyatt noted that paid parking systems were originally implemented to prevent skier parking from displacing customers at local businesses, but expressed concern that the current practices have gone too far and are no longer serving their intended purpose. Following deliberation, Mayor Pro Tem Carroll moved to approve Ordinance 26-04 Enacting Avon Municipal Code 5.14 – Private Parking Lot Regulations on One Reading as Necessary for the Immediate Preservation of the Public Health and Safety, including the following clarifying language in Section 5.14.060(c) to end with “, officers and managers,” and adding a second sentence to Section 5.14.080(b)(6) as follows: “This includes any total amount charged to a customer or individual, whether such dollar amount is called a rate, charge, cost, fee, penalty, fine, assessment, failure to register penalty, or the like.". Councilor Stanley seconded the motion. The motion passed unanimously, 6–0. 7. WRITTEN REPORTS 7.1. May 21 Draft CASE Committee Meeting Minutes (Special Events Coordinator Emily Dennis) 7.2. June 1 Draft DDA Board Meeting Minutes (Financial Analyst Chase Simmons) 7.3. Sustainability Fair Event Debrief (Special Events Coordinator Emily Dennis) 7.4. State Primary Elections Update (Eagle County Clerk & Recorder Becky Close) 7.5. Review of All-Electric Public Works Garage Utility Bills (Public Works Director Mike Jackson) 8. MAYOR AND COUNCIL COMMENTS & MEETING UPDATES Video Start Time: 02:17:55 Mayor Pro Tem Carroll thanked Becky Close for her update, noting it was helpful, and thanked Public Works Director Mike Jackson for Item 7.5. He requested that staff continue to monitor the program as the Town approaches the next winter season and encouraged promotion of its success, particularly highlighting the reduction in utility costs at the Public Works garage. Mayor Pro Tem Carroll noted that the CORE Transit meeting would take place the following day and shared that he attended a recent Mayors and Managers meeting on behalf of Mayor Underwood. He reported that discussions included emergency preparedness and highlighted a regional reduction in water usage attributable to Eagle River Water & Sanitation District, including decreases in higher-tier usage levels, and commended staff for their efforts in promoting conservation. Mayor Underwood requested an update on the Town’s use of fescue hybrid grass, noting its reduced water demands and asking about the initial establishment period and whether it had been completed. Public Works Director Mike Jackson responded that newly installed turf required irrigation for approximately two to three weeks during the establishment phase, and that irrigation has since been reduced to once per week across most landscaped areas, with more frequent watering maintained only in high-traffic areas AVON REGULAR MEETING MINUTES TUESDAY JUNE 9, 2026 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 9 such as the upper and lower fields and the park. Councilor Hardy noted that flows at the headwaters of the Colorado River were significantly below typical peak levels, dropping from approximately 2,000 cubic feet per second to 200 cubic feet per second, and expressed concern about the resulting environmental impacts, including algae blooms and stress on fish populations during the summer months. She also announced that Pride in the Park would be held in Avon on June 13, highlighted planned activities, and shared her support for the LGBTQ+ community, including for immigrants, reading a prepared statement into the record and expressing pride in the Town’s commitment to inclusion before closing her remarks by wishing everyone a happy Pride. Councilor Stanley invited the public to attend AvonLIVE! and SunsetLIVE!, noting that AvonLIVE! takes place weekly on Wednesday evenings through August, and SunsetLIVE! occurs every Sunday through September. Mayor Underwood invited the public to attend the EagleBend Pocket Park ribbon cutting ceremony, scheduled for Tuesday, June 16, 2026, at 5:30 p.m. at the park site. 9. EXECUTIVE SESSION Video Start Time: 02:34:15 Mayor Underwood requested a motion from her fellow councilors to proceed into Executive Session. Mayor Pro Tem Carroll motioned to retire into Executive Session for the purpose of receiving legal advice on specific legal questions pursuant to C.R.S. § 24-6-402(4)(b), regarding the East Park Restroom project (Town Attorney Nina Williams). Councilor Stanley seconded the motion. The motion carried unanimously, 6-0. Councilor Brooks was absent. The time was 07:35 p.m. The Executive Session commenced at 07:44 p.m. At the roll call, all members of Council were present as indicated above with Councilor Hardy joining one minute later at 07:45 p.m. Also present were Town Manager Eric Heil, Deputy Town Manager Patty McKenny, Chief Administrative Officer Ineke de Jong, and Town Attorney Nina Williams. The Executive Session adjourned at 07:54 p.m. 10. ADJOURN There being no further business before Council, Mayor Underwood moved to adjourn the regular meeting. The time was 07:54 p.m. These minutes are a summary of the proceedings of the meeting and are not intended to be comprehensive or to include each statement, identify each speaker, or reflect the proceedings with complete accuracy. The most accurate record of the meeting is the audio recording maintained in the Town Clerk’s Office and the video recording available for a limited time at High Five Media at www.highfivemedia.org. [SIGNATURE PAGE FOLLOWS] AVON REGULAR MEETING MINUTES TUESDAY JUNE 9, 2026 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 10 RESPECTFULLY SUBMITTED: ________________________________ Miguel Jauregui Casanueva, Town Clerk APPROVED: Mayor Underwood ___________________________________ 970.748.4013 idejong@avon.org TO: Honorable Mayor Underwood and Council Members FROM: Ineke de Jong, Chief Administrative Officer RE: Appointments to the Avon Downtown Development Authority (DDA) Board DATE: June 12, 2025 SUMMARY: The Avon Downtown Development Authority (“DDA”) has two (2) immediate open seats to fill out of the five (5) to eleven (11) required for this board. Staff posted a notice of Vacancies on the Board of Directors for the Avon DDA on June 2 with an application deadline of June 16. The two current members who have expiring terms both wish to continue on this board and are seeking reappointment. ELIGIBILITY: Rules for the formation of the Board of Directors of the Avon DDA include: 1. Its composition will include at least one (1) Councilor; and up to a maximum of ten (10) Directors but cannot be less than five (5) Directors. CO Rev Stat § 31-25-805(1) 2. To be eligible, Directors must reside, be a business lessee, or own real property in the Avon DDA. CO Rev Stat § 31-25-806(1), provided that a majority of Directors must own or reside within the Avon DDA boundaries. CO Rev Stat § 31-25-805(1) BOARD COMPOSITION: Provided in the table below is a summary of the current board members along with their eligibility. *The letters of interest and resumes were submitted and are enclosed in Attachments A & B. Board Member Term Expires DDA Eligibility Status Chico Thuon December 2026 Council Member Council appointment in January 2027 Wayne Hanson June 30, 2027 Landowner Up for renewal 2027 Matthew Fitzgerald June 30, 2027 Lessee Up for renewal 2027 Chris Neuswanger June 30, 2027 Landowner Up for renewal 2027 Brandt Marott June 30, 2027 Lessee Up for renewal 2027 Marcus Lindholm June 30, 2028 Landowner Up for renewal 2028 Rob Tartre June 30, 2028 Landowner Up for renewal 2028 Tony Emrick June 30, 2029 Landowner Up for renewal 2029 Gregg Cooper June 30, 2029 Landowner Up for renewal 2029 Lisa Mattis* June 30, 2026 Lessee Seeking reappointment Scott Tarbet* June 30, 2026 Landowner Seeking reappointment 970.748.4013 idejong@avon.org RECOMMENDATION: I recommend that Council reappoint the existing members for another four (4) years. Please note that three applications were received – Lisa Mattis, Scott Tarbet and one person that lives outside the Town and DDA boundary. PROPOSED MOTION: “I move to reappoint Lisa Mattis and Scott Tarbet for positions on the Avon DDA Board of Directors, for terms expiring on June 30, 2030.” Thank you, Ineke ATTACHMENT A Application Materials Lisa Mattis ATTACHMENT B Application Materials Scott Tarbet Avon Town Clerk Avon, Colorado LISA MATTIS @gmail.com Lisa Mattis Linked In Mobile: June 1, 2026 Dear Council Members, I write to express my strong desire to be re-elected to the Avon Downtown Development Authority Board. A 10-year member of the Avon community, I lead Can Do MS, a mission-focused organization located in Avon. I also live in the Riverfront complex, at Riverfront Lodge. At this crucial time for our community, I would welcome the opportunity to help lead and support the development of community housing along with core infrastructure in the Sun Road project. I believe that my collaborative, enterprising approach to leadership that’s based in service to others and character is a good fit for this important work to envision and build our community. What a phenomenal opportunity to DO GOOD in Avon over these next several years. I would be honored to be considered, once again, as a candidate and to be of service to our residents, businesses, and community. Warmly, Lisa Mattis ATTACHMENT A LISA MATTIS Momentum Leadership Organizational Transformation @gmail.com / LinkedIn.com Avon, Colorado SKILLS • Collaborative Leadership • Partnerships & Relationships • Stability in Cultural Transformation • Revenue & Fundraising • Strategic Budget Management • High Performing Boards • Experiential Education Process • Scholarships SUMMARY Galvanizing change over 25 years, I lead mission-based growth focusing on team strength, technology, and stakeholder engagement. I am known for creating big momentum, effective change management, and on-target budgets. PROFESSIONAL EXPERIENCE President & CEO 2016-Present Can Do Multiple Sclerosis Vail, CO • Increased mission impact 16X to 250K and doubled revenue to $3.1M. • Led team of 18 through culture change using product evolution and capacity building intiatives. • Re-engineered organizational technology to integrate modern platform, increased market reach and data, and reduced fixed costs by 30%. Principal 2014-2016 Catalyst Philanthropy Denver, CO • Acted as Interim CEO/Executive Director, strategic planning, and board development consultant. • Transformed organizations, leadership, teams, and development capacity to create change and improve mission impact. • Clients: Can Do Multiple Sclerosis, Food Bank of the Rockies, Foundation for Colorado Community Colleges, and The Joshua School. STRENGTHS Leadership. Put the ‘learner’ at the center, drove vision, stakeholder engagement, and growth that flipped culture and budget, and re-energized the organization. Revenue Generation & Market Reach. Doubled fundraising to $3.1M and created strategic partnerships that increased reach 16X. Team Coaching & Growth. Strengthened board and staff expertise by leveraging mission-critical moments as growth opportunities. EDUCATION MPA, Nonprofit Management & Policy, Columbia University, NY BA, Business & Marketing, Fordham University, NY
 Leadership Development, Center for Creative Leadership, CO LISA MATTIS Momentum Leadership Organizational Transformation @gmail.com / LinkedIn.com Avon, Colorado PROFESSIONAL EXPERIENCE - Continued Executive Director 2010-2014 Big City Mountaineers Golden, CO • Revitalized the organization, built capacity, and directed a significant growth plan. Strengthened fundraising and budgets, built the board and local leadership structures, and bolstered staffing and culture. • Realized 100% student and revenue growth, 1,000+ students and $1.5M fundraised support. Increased operational efficiency, systems, delivery model benchmarking, and number of markets across the country. National Director 2001-2010 Outward Bound USA Garrison, NY • Leader and catalyst for change in a nationwide consolidation effort across three positions, including individual giving, alumni relations, and scholarships. • Generated $6M in peer-to-peer giving, directed 1M+ alumni community, built $5M/2,500 student scholarship program with endowments of $16M. • Coached eight regional advisory boards and staff teams to increase fundraising and stakeholder engagement. • Directed scholarship strategic planning, policy, portfolio, committee management, and donor relations. • Led strategic partnerships initiatives and managed brand review process. RADIO COMMUNICATIONS CAREER Radio Professional 1991-1996 Major Markets • ‘New Rock’ stations market launch specialist, including Chicago, Atlanta, Milwaukee, and Norfolk stations. • On-air talent in each market. • Developed communications plans, creative promotions programs, on-air presentation, and content to generate revenue quickly. • Acted as director for music, research, promotions, and production positions. Achieved goal of #1 station 18-24 age demographic in 13 weeks in Milwaukee and Norfolk. AFFILIATIONS / THOUGHT LEADERSHIP Professional Ski Instructors of America Member 2000-Present Vail Ski School Instructor 2010-Present Hunter Ski School Instructor 2004-2010 PSIA/AASI Education Foundation Committee Chair 2018-Present Colorado Mountain College Advisory Committee 2016-Present Avon, CO Culture Arts & Special Events Chair 2016-2023 Colorado Fourteeners Initiative Board of Directors 2011-2016 PASSIONS Skiing, gravel biking, and my favorite band, Roger Clyne & the Peacemakers 1776 Peachtree St, Suite #720S, Atlanta, GA 30309 / Mailing: 575 Pharr Rd #550634, Atlanta, GA 30355 ATTACHMENT B June 2, 2026 Ineke de Jong idejong@avon.org Re: Avon Downtown Development Authority Board of Directors Dear Ineke, I welcome the opportunity to re-join the Avon DDA Board. Having served on the DDA Board since 2023 has been a privilege and something I would like to continue to do. My partners and I have owned and operated the commercial portion of The Seasons at Avon since December of 2021 and have worked tirelessly to upgrade the asset, tenant mix and operations ever since. Having grown up in Aspen, I understand the importance of thoughtful planning and development. Further, we have commercial interests in other markets throughout Western Colorado giving us a unique approach and set of experiences. Some highlights on my resume and experience: -Born and raised in Aspen, CO -Founding Principal of Gibson Avenue Capital (www.gibsonavecapital.com) -18 years of commercial real estate investment experience across $2B+ of assets -Deep knowledge of real estate and development in Western Colorado with holdings in Basalt, New Castle, Snowmass, and Pagosa Springs. I look forward to continuing serving Avon and the DDA and hope I can help in any way possible. Thank you, Scott Tarbet 1776 Peachtree St, Suite #720S, Atlanta, GA 30309 / Mailing: 575 Pharr Rd #550634, Atlanta, GA 30355 ‘Resume’ Scott Tarbet is the Founder and Managing Partner of Gibson Avenue Capital. Prior to founding the firm in December 2017, Scott spent 11 years at a middle market private equity firm, Argonne Capital Group / RCG Ventures. Scott served as SVP and Director of Acquisitions at RCG / ACG, where he was responsible for identifying, sourcing, and ultimately acquiring value-add single and multi-tenant opportunities. In addition to acquiring assets, Scott was responsible for the sale/leaseback, disposition, and lease management of ACG’s single-tenant operating portfolio with the primary task of maximizing real estate value by leveraging ACG’s ownership of various businesses. Gibson Avenue Capital has completed ~$2.3B in transactions across retail, office, manufactured housing, land, and net lease since 2017. Between RCG / ACG and Gibson, Scott has transacted on over $3B across 130 deals. Scott graduated from the University of Georgia with a major in Finance and a minor in Spanish. He lives in Atlanta with his daughters, Poppy, Georgie and son, Rowan. 970-748-4013 idejong@avon.org TO: Honorable Mayor Underwood and Council members FROM: Ineke de Jong, Chief Administrative Officer RE: Energy Smart Colorado Updates DATE: June 19, 2026 SUMMARY: Council approved $40,000 in funding for the Energy Smart Colorado program at Walking Mountains Science Center in 2023, 2024, 2025 and 2026. This funding directly supports Avon's energy efficiency and electrification initiatives, including energy coaching, home energy assessments, and rebates for businesses and homes. Nikki Maline, Sustainability Programs Director at Walking Mountains, will attend the upcoming Council meeting to provide an update on Energy Smart Colorado’s impact in 2025 (ATTACHMENT A) and deliver an annual presentation with updates (ATTACHMENT B). This presentation is for informational purposes only; no action is required by the Council. Thank you, Ineke ATTACHMENT A: 2025 Annual Report / Final Impact Report ATTACHMENT B: June 2026 Presentation of the Town of Avon Energy Rebates 2025 Town of Avon Community Energy Efficiency Program FINAL REPORT – page 1 updated 6/16/2026 2025 Final Report for the TOWN OF AVON Community Energy Efficiency Program 1/1/2025 through 12/31/2025 CONTACT INFORMATION Walking Mountains Contact: Nikki Maline, Energy Programs Director P.O. Box 9469, Avon, CO 81620 Email: nikkim@walkingmountains.org Office Phone: 970-328-8777 Website: www.walkingmountains.org/energy ORGANIZATION PROFILE The mission of Walking Mountains is to “awaken a sense of wonder and inspire environmental stewardship and sustainability through natural science education”. Walking Mountains is a community-based nonprofit 501c3 organization in Avon, Colorado that educates residents and visitors while helping businesses, individuals and local governments become more environmentally sustainable. Walking Mountains Sustainability Department’s objective is to act as an agent of change to achieve local climate action goals and improve the social, economic, and environmental resilience of the Eagle County community. We serve as a resource and education hub to inspire action from local to global. Through this objective our staff implement multiple strategies to educate, outreach, and provide opportunities for action. Sustainability staff work across various sectors including energy & buildings, climate action, sustainable business, and waste diversion and reduction while using a lens of equity. The Energy Smart Colorado (ESC) program at Walking Mountains provides energy coaching, comprehensive home energy assessments (highly discounted), and rebates to businesses and homes. Through ReEnergize Eagle County a free assessment and free home improvements are available to local working households (and retirees), homeowners and renters, with a max 150% Area Median Income (AMI). SUMMARY OF 2025 PROGRAM, PARTNERSHIP, AND PURPOSE The purpose of the partnership between the Town of Avon and Walking Mountains is to create a system of incentives that are specific and targeted for the Town of Avon community in order to help locals decrease their energy burden and make living environments safer and healthier. Through participation in the Energy Smart Colorado program, homes & business are provided education and recommendations after an in person visit, and incentives for making recommended upgrades. In additional to a reduced energy burden and a healthier living environment, homes and buildings that invest in improvements rebated through the Energy Smart Colorado program for Energy Efficiency, Renewable Energy, and Building Electrification significantly help our community reach our local climate action plan goal of an overall 50% reduction of greenhouse gas emissions by 2030 (from a 2014 baseline). The Town of Avon has implemented an action- based, town specific, Climate Action Plan schedule based on this goal. And, Avon is a key partner, involved in the local Climate Action Collaborative Board and Working Groups. By partnering with Walking Mountains, the Town of Avon is able to implement a program that is accessible, available, and affordable to all homes & business. In 2016 the Town of Avon approved the adoption of the Exterior Energy Offset Program (EEOP), which brings funds in from those implementing outdoor energy use without on-site offsets. The intended use of these funds is for energy improvements within the Avon. These funds can be used to offer energy efficiency incentives to residents and partner ATTACHMENT A 2025 Town of Avon Community Energy Efficiency Program FINAL REPORT – page 2 updated 6/16/2026 with Walking Mountains to administer these rebates. This partnership between Walking Mountains and the Town of Avon specifically focuses on community energy use (in homes and businesses) within the Town of Avon. Through this partnership in 2025, an accessible community energy efficiency program was available for Town of Avon residents, facilitated by Walking Mountains, a known local resource for learning about energy in homes & buildings. Households and Businesses in the Town of Avon accessed: A qualified contractor network for Energy Assessments and Improvements Low-cost comprehensive home energy assessments Rebates for home and business energy improvements Energy Coaching and information on stackable incentives available Energy efficiency & electrification education Direct bi-lingual outreach to households that need the most help BUDGET & GOALS The top five (5) lines are flow-through funds, and estimated amounts, in order to respond to varying community interest there can be flexibility between these lines. Assessments & Rebates are limited to the amount of total funds available at any given time. Walking Mountains will notify the Town of Avon if we get close to running out of funds for these incentives, at which time the Town of Avon can choose to contribute more funding, or end the special incentives for the remainder of the year. If annual ESC funds are depleted, flow-through funds remaining above may be used to pay any full ESC rebates still needing fulfilled, for Town of Avon residents. Incentive/Hard Cost Details Budget Estimated Annual MtCO2e reduced Home Energy Assessments Goal of thirty (30) (assume $62/home, details listed above) $1,860 2 $300 Rebates Goal of twelve+ (12+) $300 rebates (listed above) $3,640 7 $500 Rebates Goal of thirteen (13) $500 rebates (listed above) $6,500 25 $1,000 Rebates Goal of eight (8) $1,000 rebates (listed above) $8,000 25 ReEnergize Eagle County Help (2) ReEnergize homes in the Town of Avon to maximize the upgrades completed & homes reached $10,000 7 Marketing & Outreach Hard costs for marketing, outreach and communication in order to increase participation (includes marketing staff time and hard costs of ads & print) $2,000 n/a Program Administration Hard costs for program management, staffing, on-going energy coaching and contractor referrals includes energy coaching for homeowners and businesses, program management, contractor referrals, and communications: 2 hours avg. for each assessment x 30 assessments = 60; 2.5 hours avg. for each rebate x 33 rebates = 82.50; 142.5 hours x $60/hour = $8,550 $8,000 (max) n/a Town of Avon Specific Incentives: $40,000 66 MtCO2e estimated 2025 Town of Avon Community Energy Efficiency Program FINAL REPORT – page 3 updated 6/16/2026 Incentive Details: Town of Avon – 2025 Community Specific Incentives, for homes and businesses/buildings, and town employees: Home Energy Assessments – o $50 Flat Fee for homes up to 3,000 sq. ft. to homeowner at time of assessment. TOA covers 80% of the charges (capped at $400) for additional square footage above $50 flat fee; o $25 Flat Fee for Community Priority homes up to 3,000 sq. ft. to homeowner at time of assessment. TOA covers 80% of the charges (capped at $400) for additional square footage above $25 flat fee. deed restricted, childcare staff, first responders, local government employees, non-profit employees, teacher/school employee, veteran/active military, or max 150% AMI); o April Net Zero Building Expo Event Enrollment-FREE to homeowner in Town of Avon (TOA to pay full cost IF homeowner attends this event and signs up at the event) Weatherization BONUS Rebate - up to $500 for completing an air sealing and/or insulation upgrade Heat Pump BONUS Rebate - up to $500 for installing a ducted or mini-split heat pump, heat pump water heater, and/or heat pump dryer Induction Range (gas to electric) BONUS Rebate - up to $500 for installing an electric induction range/stove, must convert gas range to electric induction Electric Fireplace BONUS Rebate - up to $300 for installing an electric fireplace, must eliminate an existing gas fireplace, must cap gas line at appliance E-lawn Care Rebate - up to $300 for new battery or corded electric equipment, including: electric mowers (push or riding), electric snow blowers, electric chainsaws, electric trimmers, electric pruners, electric leaf blowers, or electric power washers (no energy assessment required for e-lawn care rebate) Electric Vehicle Purchase Rebate - up to $1,000 for the purchase or lease of a new or used Electric Vehicle or Plug-in EV, must provide registration and proof of purchase/invoice EV Charger Installation for Multifamily Buildings Rebate - up to $1,000 for installing an EV Charger in a common space for a multifamily building, must be a 2-port charger, level II or III, available to all occupants of the building Battery Storage (home/building) Rebate - up to $1,000 for installing storage that is grid-connected, must enroll in Holy Cross Energy’s Time of Use rate OR Power+ FLEX specifically (Power+ not eligible for a rebate); can be stand-alone batteries (on-site Solar PV is not required) Solar PV Rebate - up to $1,000 for on-site, grid-tied Solar PV, existing buildings only (home or business) ReEnergize Eagle County (max 150% AMI) - up to $5,000 per home to maximize work that can be done in homes within the Town of Avon, at no cost to the resident Above incentives may be stacked with regular Energy Smart CO rebate, ReEnergize incentives, utility rebates, and potential state incentives. The above will not exceed 75% of the project cost when all incentives are combined (with the exception of ReEnergize Eagle County homes who may have up to 100% of costs covered). Bonus rebates must meet/exceed requirements of the regular ESC rebate program. 2025 FINAL IMPACT DETAILS (NEXT PAGE) 2025 Town of Avon Community Energy Efficiency Program FINAL REPORT – page 4 updated 6/16/2026 To w n o f A v o n C Y 2 0 2 5 - $ 4 0 , 0 0 0 Go a l Bu d g e t TO T A L # TO T A L $ Ho m e E n e r g y A s s e s s m e n t s - 5 R e E n e r g i z e , 5 C o m m u n i t y P r i o r t y , 0 E m p l o y e e s 30 $ 1 , 8 6 0 27 $ 1 , 3 1 0 . 5 9 1 . 8 8 $3 0 0 R e b a t e s - E- l a w n C a r e ( 1 ) 12 + $ 3 , 6 4 0 1 $ 3 0 0 . 0 0 $5 0 0 R e b a t e s - He a t P u m p s ( 6 ) , HP D r y e r ( 1 ) , We a t h e r i z a t i o n ( 5 ) , In d u c t i o n ( 2 ) 13 $ 6 , 5 0 0 14 $ 6 , 8 3 1 . 6 2 $1 , 0 0 0 R e b a t e s - S o l a r P V ( 2 ) , B a t t e r i e s ( 2 ) , EV ( 1 ) 8 $ 8 , 0 0 0 5 $ 5 , 0 0 0 . 0 0 Re E n e r g i z e E a g l e C o u n t y - 5 t o t a l h o m e s h e l p e d i n T O A 2 $ 1 0 , 0 0 0 2 $ 9 , 7 4 3 . 4 0 1 . 1 2 Ma r k e t i n g & O u t r e a c h $2 , 0 0 0 $2 , 0 0 0 . 0 0 $8 , 0 0 0 $6 , 2 4 0 . 0 0 TO T A L $4 0 , 0 0 0 $3 1 , 4 2 6 2 6 . 4 1 $8 , 5 7 4 go a l = 6 6 M t C O 2 e No b u s i n e s s e s g o t t o w n s p e c i f i c r e b a t e s We a t h e r i z a t i o n = a i r s e a l i n g a n d / o r i n s u l a t i o n no t r e a c h i n g g o a l d u e t o n o C o m m e r c i a l / B u s i n e s s re b a t e , n o m a j o r u p g r a d e s i n R E h o m e s , a n d n o t u s i n g al l o f f u n d s . Pr o g r a m A d m i n i s t r a t i o n ( $ 6 0 / h o u r ) re m a i n i n g ( r o l l e d i n t o 2 0 2 6 ) up d a t e d : 6 / 1 2 / 2 6 N M es t Mt C O 2 e re d u c e d a n n u a l l y 23 . 4 1 1 Sustainability Programs - Energy & Buildings ATTACHMENT B To awaken a sense of wonder and inspire environmental stewardship and sustainability through natural science education. Our Mission Our mission is more relevant today than ever before. OUR MISSION Total Lives Reached Last Year 418,408 Program Areas Youth & School Programs Community Programs Sustainability Programs ●Avon Tang Campus ●Nature Discovery Center, Vail ●Vail Nature Center, Ford Park ●Precourt Family Sweetwater Campus, Western Eagle County People Reached Last Year 373,000+ Sustainability Programs Home Energy Assessments and Business Walkthroughs 222 Pounds of Waste Diverted 66,000+ Climate Action • Energy Efficiency & Assistance • Recycling & Waste Diversion • Sustainable Destinations & Tourism • Sustainable Business Our Goal: To Reduce Greenhouse Gas Emissions in Eagle County 50% by 2030 and 100% by 2050. Climate Action Collaborative A collaboration comprised of local governments, businesses, schools, special districts and nonprofits tasked to implement the recommendations of the Climate Action Plan for the Eagle County Community. walkingmountains.org/energy Energy Team 970-328-8777 energy@walkingmountains.org Mady Ponce Bi-lingual Outreach Coordinator Cat Moloney Sustainable Business Coordinator Nikki Maline Program Director Courtney Bryan Residential Energy Coordinator Hannah Remke Communications & Outreach Coordinator Energy & Buildings ●Available to all Eagle County household / business ●Energy Smart Colorado -no income limits ●ReEnergize Eagle County -max 150% AMI ●Comprehensive home energy assessments ●Free energy coaching ●Local qualified contractor list ●Rebates, and information about all stackable incentives available ●Sustainable Business Support ●Radon awareness Energy Team walkingmountains.org/energy How We Can Help Take these steps for a more Comfortable & Energy Efficient home or building! Step 1:Information Get an Energy Visit to determine areas of improvement and gather data Step 2:Workforce Use our local preferred Contractor List to complete upgrades while receiving free energy coaching from a local Energy Smart Colorado professional Step 3:Incentives Obtain Energy Smart Colorado and local town rebates from Walking Mountains; learn about local utility rebates & potential tax incentives available from your energy coach www.walkingmountains.org/energy 2026 ESC Home Energy Assessments Required for all Walking Mountains rebates (except e-lawn care) ●$100 anywhere in Eagle County -up to 3,000 sq. ft. ●Over 3,000 sq. ft. ○$0.05/sq. ft. 3,001 to 6,000 sq. ft. ○$0.10/sq. ft. 6,001+ sq. ft. ●$50 flat cost -within Town of Vail, Town of Minturn, Edwards Metro, Town of Eagle ●$50 flat cost (up to 3,000 sq. ft.)-Town of Avon (additional sq. ft. cost split with household) ●$25 flat cost -Community Priority *Community Priority homes can get a $25 home energy assessment: deed restricted home, childcare staff, first responder/ski patrol, local government employee, non-profit employee, teacher/ school district employee, veteran/ active military, or have a max household income of 150% AMI (Area Median Income). www.walkingmountains.org/energy Energy Team Energy Smart Colorado Rebates Rebates max at 25% of project cost ●Air Sealing & Insulation ●Cold Climate Heat Pumps & Heat Pump Water Heaters ●Induction Cooktops ●Smart Electric Controls ●Solar PV & Battery Storage ●Radon Mitigation ●Commercial Refrigeration & LEDs ●and More walkingmountains.org/rebates Energy Team walkingmountains.org/ReEnergize ReEnergize Eagle County Max household income 150% AMI (Area Median Income) ●Full time Eagle County household ●Free energy visit & energy coaching ●Free critical home energy improvements ●Household income must qualify Town Rebates Location Specific ●E-Lawn Care ●Electric Fireplace ●Duct Sealing -Vail Only ●Electric Vehicles ●EV Charging ●Battery Storage ●Window/Door replacement www.walkingmountains.org/rebates ●Building Envelope BONUS ●Induction Range BONUS ●Automation BONUS ●Community Priority Home BONUS ●Heat Pump BONUS Vail, Minturn, Avon, Eagle, Edwards Metro: household must qualify as IQ on this website & choose a contractor listed & approved by the state: https://energyoffice.colorado.gov/ho me-energy-rebates Taking applications through 8-1-26 only… limited funds! Projects must be pre-approved through the contractor STATE Rebates -Offered through Contractor Incentives 2025 www.walkingmountains.org/energy Incentives 2026 Incentives 2026 Incentives 2026 www.walkingmountains.org/energy Avon Trained Analysts ●Certifications & Trainings ●Home Energy Assessments = 14 (6 in Town of Avon) ●More assessments = more comfortable & efficient ●Positive feedback from active analysts 2026 Marketing Efforts ●Walking Mountains Marketing Tool Kit ●Posters Distributed in Avon ●Social Media Posts ●Newsletters ●Avon Sustainability Fair ●Vail Daily Advertising ●Neighborhood visits with MIRA ●Targeted Emails to Avon Residents ●Town of Avon Bus Ad ●Avon Kiosk Poster 2026 Marketing Efforts Historically ●Town support for Community Energy Efficiency started in 2018 ○Home Energy Assessments (8.5 years): ■164 home energy assessments completed ■20 completed on average/year ■Above average last 3 years: 2023-31,2024-33,2025-27 ○Town Specific Rebates (started in 2022; 4.5 years): ■89 town specific rebates provided = $75,282 ■On track in 2026 to meet or exceed 25 for the year, which has been the max/year ●More rebate funds put out into the community = more projects & bigger projects (more impactful) Eye on the Future www.walkingmountains.org/energy ●State Rebates going away! ●Business Rebates are unknown in the future. ●More rebate funds = more impactful projects (heat pumps & commercial upgrades). ●What are other mountain towns doing? Mady Ponce Bi-lingual Outreach Coordinator Cat Moloney Sustainable Business Coordinator Nikki Maline Program Director Courtney Bryan Residential Energy Coordinator Hannah Remke Communications & Outreach Coordinator walkingmountains.org/energy Energy Team 970-328-8777 energy@walkingmountains.org (970) 748-4040 gdaly@avon.org TO: Honorable Mayor Underwood and Avon Town Council members FROM: Chief Greg Daly RE: Swearing in and Badge Pinning Ceremony for Sergeant Hernandez and Detective Baldwin DATE: June 23, 2026 Swearing In and Badge Pinning Ceremony This evening, we will honor Sergeant Hernandez, and Detective Baldwin as they formally take their oaths of office and receive their sergeant, detective and police officer badges. We are pleased to share this special moment with them, their families, and the community. Sergeant Alan Hernandez began his journey with the Avon Police Department as an intern while attending Battle Mountain High School. He went on to earn his bachelor’s degree in criminal justice from Colorado Mesa University, graduated from the police academy, and was sworn in as a police officer in December 2018. In 2021, Alan was selected to serve as a detective in the Criminal Investigations Bureau, where he demonstrated strong investigative skills and professionalism. He recently his master’s degree in social work—an accomplishment that reflects his commitment to personal and professional growth. Alan tested for Sergeant in December 2024, earning the #1 position on the eligibility list. Since then, he has been proactively preparing for this role through supervisory and leadership training. Detective Corey Baldwin has served the Avon Police Department with distinction for over 13 years, demonstrating consistent professionalism, dedication, and leadership. Throughout his career, he has developed a reputation as a reliable team member and a respected leader among his peers. Detective Baldwin has conducted numerous complex investigations, bringing extensive experience, sound judgment, and a detail-oriented approach to his current role within the Criminal Investigations Bureau. In addition to his investigative responsibilities, Detective Baldwin serves as a Defensive Tactics and Arrest Control Instructor. He is also an Assistant Team Leader with the Eagle County Special Operations Unit, where he contributes to high-risk and specialized operations. Prior to joining the Avon Police Department, Detective Baldwin served as a Deputy with the Eagle County Sheriff’s Office in the Detentions Division. He is also a United States Army veteran, having served six and a half years on active duty as a Combat Medic. During his military service, he earned a position on the All- Army Wrestling Team in 1996. Detective Baldwin is a devoted husband and proud father of three adult children. He is also a grandfather to three grandchildren, with a fourth expected in July. Page 2 of 2 Badge Pinning Tradition The Badge Pinning Ceremony is a cherished tradition in law enforcement, symbolizing the officer’s role, authority, responsibility, and the trust placed in them by the community. This ceremony is held upon graduation from the Police Academy and for subsequent promotions within the department. Mayor Underwood will preside over the swearing-in, and Deputy Town Clerk Brenda Torres will administer the Oath of Office. • Sergeant Alan Hernandez badge will be pinned by his wife Diana and daughter Salome. • Detective Corey Baldwin badge will be pinned by his wife JoAnn. We are proud to recognize these officers and thank them for their dedication and service to the Town of Avon. Please join us in celebrating their achievements and welcoming them into their new roles. Thank you, Chief Greg Daly ### (970)748-4040 gdaly@avon.org TO: Honorable Mayor Underwood and Council members FROM: Greg Daly, Chief of Police RE: Avon Police Department Presentation of 2025-2026 PD Awards DATE: June 23, 2026 SUMMARY: Honorable Mayor and Council, there are several elements to the Police Department presentation on Tuesday evening: •Swearing in of Detective Corey Baldwin and Sergeant Alan Hernandez •Presentation of Avon Police Department 2025-2026 Awards •Annual report presentation/PowerPoint and a presentation by the Avon Police Criminal Investigation Bureau on leveraging technology to bring justice to our crime victims. PRESENTATION OF AVON POLICE DEPARTMENT 2025-2026 AWARDS: As Chief of Police, it is with great pleasure and honor that I present the following Avon Police Department Awards for the second half of 2025 and the first half of 2026. These awards recognize staff members who have made exceptional and valiant individual contributions above and beyond their normal duties with the Avon Police Department. In addition, we are recognizing other town employees and community members for their contributions to the Town of Avon's citizens, residents, and guests. Citizen’s Award of Commendation – An award presented to a citizen who tangibly and conspicuously provides outstanding assistance to the agency. Presented to Kacy Carmichael, Aquatics Superintendent, Avon Recreation Department. The Avon Police Department would like to formally recognize Kacy Carmichael for her exceptional service and dedication as a First Responder CPR Instructor. Kacy recently completed the recertification training for all Avon Police Department officers, ensuring that our personnel remain current, confident, and prepared to provide lifesaving medical assistance during emergencies and critical incidents. Her professionalism, extensive knowledge, and ability to effectively instruct and engage first responders greatly contributed to the success of this important training. Kacy’s commitment to public safety and emergency preparedness directly supports the mission of the Avon Police Department and enhances the level of care and service our officers can provide to the community. Her willingness to share her expertise and dedication to maintaining high standards of training are sincerely appreciated and serve as an example of excellence in public service. The Avon Police Department expresses gratitude and appreciation for her continued support and contributions to our agency and community. On behalf of the citizens and residents of the Town of Avon and from the men and women of the Avon Police Department, THANK YOU! Page 2 of 7 Citizen’s Award of Commendation – An award presented to a citizen who tangibly and conspicuously provides outstanding assistance to the agency.  Presented to Robert McKenner, Carlos Molina, and Andrew Bare, Avon IT Department. The Avon Police Department would like to formally recognize the Town of Avon Information Technology Department for their exceptional support, professionalism, and continued dedication to the operational success of the Avon Police Department. Throughout the past year, the IT Department has played a critical role in supporting and evaluating numerous public safety technology programs and initiatives, including the deployment, maintenance and security of mobile data terminals (MDTs), integration and support of various camera systems, code enforcement vehicle technology installations, enterprise wide security enhancements to the Town of Avon IT systems to adhere to the strict requirements of the new Federal Bureau of Investigation Criminal Justice Information Services (CJIS) security rule requirements, and enhancement of security protocols regarding artificial intelligence report writing assistance. The IT Department’s responsiveness, technical expertise, and willingness to work collaboratively with police personnel have greatly enhanced the efficiency, reliability, and effectiveness of our daily operations. Their behind-the-scenes efforts ensure that officers and staff have dependable access to critical technology and information systems necessary to safely and effectively serve the community. The Avon Police Department sincerely appreciates the partnership, dedication, and professionalism consistently demonstrated by the Town of Avon Information Technology Department. Their contributions reflect the highest standards of public service and teamwork. On behalf of the citizens and residents of the Town of Avon and from the men and women of the Avon Police Department, THANK YOU! Letter of Commendation – For outstanding performance by members on difficult police operations, projects, programs, or situations requiring exceptional dedication.  Presented to Officer Andres Sandoval For recognition of outstanding performance over the last year for enforcing 18 DUI arrests. Officer Andres Sandoval is commended for his outstanding dedication to traffic safety and his exceptional efforts in impaired driving enforcement. Over the past year, Officer Sandoval has made 18 DUI arrests—demonstrating a proactive commitment to protecting lives and keeping our roadways safe. His vigilance, professionalism, and consistent enforcement of DUI laws not only reflect a high level of personal initiative but also contribute significantly to the department’s mission of reducing impaired driving-related incidents. Officer Sandoval’s work embodies the values of accountability and public service, making a measurable impact on community safety and setting a strong example for his peers. His courageous and selfless actions reflect the highest standards of the Avon Police Department and reflected great credit upon himself and the Avon Police Department this day.  Presented to Chief of Police Greg Daly For recognition of outstanding performance over the last year for enforcing 18 DUI arrests. Chief Greg Daly is commended for his outstanding dedication to traffic safety and his exceptional efforts in impaired driving enforcement. Over the past year, Chief Daly has made 18 DUI arrests— demonstrating a proactive commitment to protecting lives and keeping our roadways safe. His vigilance, professionalism, and consistent enforcement of DUI laws not only reflect a high level of Page 3 of 7 personal initiative but also contribute significantly to the department’s mission of reducing impaired driving-related incidents. Chief Daly’s work embodies the values of accountability and public service, making a measurable impact on community safety and setting a strong example for his peers. His courageous and selfless actions reflect the highest standards of the Avon Police Department and reflected great credit upon himself and the Avon Police Department this day. Leadership Excellence Award – For recognition of outstanding leadership during a major incident or over a period of time.  Presented to Deputy Chief Coby Cosper Deputy Chief Coby Cosper exemplifies the highest standards of leadership and service at the Avon Police Department. A true servant leader, he has been instrumental in fostering a culture of professionalism, accountability, and trust that has resulted in exceptional morale and performance throughout the organization. Deputy Chief Cosper consistently demonstrates initiative, reliability, and strategic vision. His commitment to continuous improvement and operational excellence ensures the department maintains the highest standards of service. As a trusted mentor and counselor, he invests in the professional and personal development of others, empowering staff through encouragement, accountability, and meaningful feedback. Drawing upon his service in the U.S. Navy, graduation from the FBI National Academy, completion of the FBI-LEEDA leadership trilogy, and a master’s degree in emergency management, Deputy Chief Cosper brings exceptional expertise to planning and emergency preparedness. His leadership in the Wildridge Wildfire Evacuation Exercise, countywide active shooter response training, Salute, Triple ByPass and police academy instruction reflects his commitment to collaboration, preparedness, and mentorship. Deputy Chief Cosper actively seeks innovative solutions to enhance departmental operations. He has implemented new technologies and best practices, updated the Town's Continuity Plan and the department's Continuity of Operations Plan, and strengthened emergency response capabilities. His ability to lead through complex challenges with transparency, adaptability, and professionalism has earned the respect and confidence of peers and subordinates alike. Deputy Chief Cosper's unwavering dedication, strategic leadership, and commitment to developing others have made him an invaluable asset to the Avon Police Department and the Town of Avon. His influence has strengthened the organization and exemplifies the very best of public safety leadership. Due to his leadership, Deputy Chief Cosper has reflected great credit upon himself and the Avon Police Department. Leadership Excellence Award – For recognition of outstanding leadership during a major incident or over a period of time.  Presented to Detective Corey Baldwin Detective Corey Baldwin is a highly respected senior officer with over thirteen (13) years of service with the Avon Police Department. Throughout his career, Detective Baldwin has consistently demonstrated exceptional professionalism, dedication, and reliability. He is widely regarded as a leader among his Page 4 of 7 peers and serves as an Assistant Team Leader for the Special Operations Unit (SOU), where his tactical knowledge, experience, and calm leadership have made him a critical asset to team operations. Detective Baldwin routinely accepts assignments from command staff, supervisors, and fellow officers without hesitation and approaches every task with a positive attitude and a strong sense of duty. He leads, by example, sets high professional standards, and consistently fosters teamwork, trust, and morale within the department. Throughout his tenure, Detective Baldwin has maintained strong working relationships across all ranks and units. He is consistently sought out for his advice, technical expertise, and leadership presence during critical incidents and specialized operations. Due to his actions, Detective Baldwin has reflected great credit upon himself and the Avon Police Department. Leadership Excellence Award – For recognition of outstanding leadership during a major incident or over a period of time.  Presented to Detective Theresa Reno Detective Theresa Reno is a highly respected investigator whose professionalism, initiative, and leadership have made her an invaluable member of the Avon Police Department. She consistently demonstrates exceptional dedication to duty, sound judgment, and a commitment to excellence in every aspect of her work. Most recently, Detective Reno served as the lead investigator in what began as a routine theft case but quickly developed into a complex, multi-jurisdictional organized retail crime investigation. Through her diligence, analytical skills, and investigative expertise, she identified critical links connecting the incident to a larger criminal enterprise operating across multiple states. As the lead investigator, Detective Reno coordinated investigative efforts, managed evidence collection, developed intelligence, and maintained effective communication among numerous law enforcement partners. Her leadership and attention to detail were instrumental in advancing the investigation and ensuring critical information was identified, preserved, and shared. Detective Reno consistently accepted additional responsibilities without hesitation and demonstrated the ability to successfully lead a complex investigation while maintaining the highest standards of professionalism and accountability. Her efforts ultimately contributed to the Colorado Attorney General’s Office assuming responsibility for the case due to its scope and significance. Throughout the investigation, Detective Reno exemplified the qualities of a leader through her dedication, work ethic, and commitment to achieving successful outcomes. Due to her actions, Detective Reno has reflected great credit upon herself, the Criminal Investigations Bureau, and the Avon Police Department. Department Teamwork Citation – For a group of employees that came together and achieved exceptional results relating to a specific incident or event.  Presented to Sergeant Tyler Churches, Officer Cirilo Zarate, Officer Stephany Villegas, and Detective Theresa Reno For actions in coordinated and sustained investigative efforts that resulted in the identification, arrest, and successful prosecution of two suspects involved in a series of residential burglaries. Beginning on March 6, 2026, the Avon Police Department initiated a burglary investigation after a victim reported multiple unlawful entries and thefts from her storage unit located at 137 Benchmark Road, Avon, Page 5 of 7 Colorado. The investigation revealed a complex case spanning multiple incidents over several months, involving key access misuse, surveillance review, and coordination with property management, witnesses, and community members. Through collaborative teamwork, the investigative group leveraged public assistance, internal records, surveillance analysis, and witness cooperation, ultimately identifying the suspects. The team’s collective efforts led to the recovery of stolen property, submission of arrest warrants, and the subsequent arrest of both suspects. This investigation exemplifies effective teamwork through sustained coordination over an extended investigative timeline, the sharing of information across functions and ranks, and a unified commitment to case resolution. The collective efforts of Officer Stephany Villegas, Cirilo Zarate, Sergeant Tyler Churches, and Detective Theresa Reno produced exceptional results, including the arrest of two burglary suspects and the return of stolen property to the victim. This exceptional team's collaborative efforts embody the highest ideals of teamwork, compassion, and community service and reflected great credit upon themselves and the Avon Police Department that day.  Presented to Detective Theresa Reno, Officer Halsey Lucas, Officer Andres Sandoval, Officer Cirilo Zarate, Sergeant Tyler Churches, ECSO Deputy Jordan Harrison, and Vail PD Sergeant Jeffrey Mattson For actions in coordinated response and investigative teamwork during an armed suspect incident that resulted in the safe apprehension of the suspect and the seizure of multiple firearms and ammunition. On August 3, 2025, Avon Police Department officers responded to a critical incident involving a report of an armed male subject with a long gun inside the Buffalo Ridge Apartments. During the incident, a firearm was discharged inside an occupied apartment building, placing residents at significant risk. Responding officers immediately established a perimeter, conducted evacuations and protective sweeps, and coordinated with partner agencies to locate and apprehend the suspect. Officer Halsey Lucas and Officer Andres Sandoval coordinated with responding officers to secure the scene and develop suspect information. Avon Police Officer Cirilo Zarate, Sergeant Tyler Churches, Eagle County Sheriff’s Office Deputy Jordan Harrison, and other responding officers formed an immediate action team equipped with patrol rifles, less-lethal options, and a rifle-rated shield to safely address the ongoing threat. A protective search of the involved apartment was conducted under exigent circumstances to ensure no victims were present. Sergeant Churches and Vail Police Department Sergeant Jeffery Mattson provided effective command presence, tactical coordination, and scene safety during the incident. Detective Theresa Reno assisted with the execution of a search warrant and the systematic documentation and seizure of firearms, ammunition, and related evidence. This exceptional team's collaborative efforts embody the highest ideals of teamwork, compassion, and community service and reflected great credit upon themselves and the Avon Police Department that day.  Presented to Officer Andres Sandoval, Officer Cirilo Zarate, and Officer Stephany Villegas For actions in coordinated response and investigative teamwork which resulted in the identification, disruption, and arrest of a suspect involved in the sexual assault of a child victim. On December 7, 2025, at approximately 2254 hours, Officer Andres Sandoval, while on routine patrol, initiated a lawful traffic stop on West Beaver Creek Boulevard which unexpectedly developed into a complex sexual assault investigation. During the initial contact, Officer Sandoval observed a female child passenger who appeared notably young and avoided eye contact, displaying behavior consistent with distress. Continued investigation exposed inconsistencies in the suspect’s statements who ultimately admitted to Page 6 of 7 sexually assaulting the child earlier. Officer Stephany Villegas arrived on scene as a cover officer and assumed responsibility for protective custody, parental notification, and transport of the child victim ensuring her immediate safety and separation from the suspect. Officer Cirilo Zarate arrived on scene with evidence collection items then secured and safeguarded the suspect’s vehicle. This action ensured scene stability and allowed investigative officers to remain focused on the felony investigation resulting in the arrest of the suspect. Due to these officers’ actions that evening, a child victim was removed from an ongoing pattern of sexual abuse and preventing continued victimization and further sexual assault by the suspect. The child victim received medical evaluation and treatment within hours of the incident, ensuring evidence preservation, victim care and a forensic interview. This exceptional team's collaborative efforts embody the highest ideals of teamwork, compassion, and community service and reflected great credit upon themselves and the Avon Police Department that day. Medal of Merit – For contribution to the Avon Police Department in an exemplary manner which typify excellence in leadership, the mission, and values of the organization and have contributed to the police profession in an outstanding manner  Presented to Officer Michael Carlton, Officer Rio Burgess, and Officer Stephany Villegas This award recognizes and acknowledges your leadership and initiative on July 3, 2025, at approximately 1429 hours, when Avon Police Department officers responded to reports of a structure fire at the Aspens Mobile Home Park, 901 W Beaver Creek Boulevard. Upon arrival, the first three officers on scene—Officers Stephany Villegas, Michael Carlton, and Rio Burgess—observed heavy smoke and active flames originating from a shed adjacent to mobile home unit #110, with rapidly spreading fire conditions threatening adjacent residences. The officers were fully aware that the fire posed an imminent threat of death or serious bodily injury to any occupants who may have remained inside the affected trailer homes. Before the arrival of fire suppression units, Officers Villegas, Carlton, and Burgess made the immediate decision to enter the trailer structures including units 110, 109, and 114, which received significant fire damage, to evacuate residents and conduct rapid checks to ensure no occupants or pets remained inside. As a direct result of their decisive and courageous actions, residents were safely removed from the immediate danger area, no occupants were trapped inside the involved units, and loss of human life was prevented. The officers continued coordinating evacuations and maintaining scene safety until relieved by fire department personnel and unified command. You are a true credit to the Town of Avon and the law enforcement profession. Lifesaving Medal – Awarded to members directly responsible for saving/prolonging a human life.  Presented to Officer Trevor Roszczewski and Officer Andres Sandoval On April 6, 2026, at approximately 1843 hours, Avon Police Department officers were dispatched to Christie Lodge for a report of a male party who was unconscious and not breathing. Dispatch information indicated the patient was a 70-year-old male, unconscious, with breathing status unknown, and no AED available. The call was classified as a cardiac or respiratory arrest. Upon arrival, Officer Andres Sandoval observed the manager of Christie Lodge performing CPR on the patient. Officer Sandoval immediately assessed the patient and observed that the patient was unconscious, not breathing, not moving, had no detectable pulse, and his lips were turning purple due to oxygen deprivation. Recognizing the patient was in cardiac arrest, Officer Sandoval immediately took over Page 7 of 7 CPR and began providing high-quality chest compressions. Shortly thereafter, Officer Trevor Roszczewski arrived on scene and immediately assisted Officer Sandoval with CPR efforts. As a direct result of the officers’ continued lifesaving actions, the patient began breathing again and regained a pulse prior to full transfer of care. Officer Roszczewski and Officer Sandoval’s courageous and selfless actions under pressure reflect the highest standards of the Avon Police Department and reflected great credit upon himself and the Avon Police Department that day. Thank you, Chief Greg Daly ATTACHMENT A: Avon Police Department Annual Report PowerPoint Presentation # # # Avon PoliceDepartment AnnualReport 2025 June 23, 2026 CALEA National Accreditation ATTACHMENT A Message from the Chief............................3 Department Overview...............................6 2025 By the Numbers................................7 Activity Statistics.......................................9 Highlights...................................................11 Community Initiatives & Partnerships..12 Staffing Changes.......................................13 Staffing Challenges...................................14 CIB 2025 In-Brief.......................................15 Table of Contents Message From the Chief As I reflect on another year of service at the Avon Police Department , I am reminded of a commentary/poem “What Is a Policeman?” written by Paul Harvey, a famous broadcaster, in the 1970's. The poem outlined the dualities and high-pressure realities of a police officer 's daily life, noting that an officer must be: A diplomat: Able to settle disputes so that both parties feel they won. A genius: Expected to support a family on a policeman's salary. A medical responder: Required to be the first at an accident and know how to start breathing, stop bleeding, and tie splints. A quick decision-maker: Forced to make split-second choices that would take a lawyer months to deliberate. A versatile professional: Part minister, social worker, tough guy, and gentle person Decades later, the law enforcement profession has evolved but its underlying message still rings true. The women and men of the Avon Police Department give their hearts, minds, bodies, and souls to this profession. They are dedicated to protecting and serving the Avon community, its residents, and the thousands of guests who visit our town each year. While they strive to leave work behind and focus on their families and loved ones, that is not always easy. The tragedies they encounter, the trauma they witness, and the anguish experienced by families who have lost loved ones often remain with them long after a shift has ended. Yet , day after day, they return to work committed to our mission of service and to making our community a better and safer place. We train to be resilient and to work on our mental health. All officers complete crisis intervention training to repond to our community ’s needs. Message From the Chief Our personnel have embraced technology to enhance efficiency and better serve those who rely on us. License plate reader technology helps us solve crimes and locate wanted individuals and stolen vehicles. Automated speed enforcement cameras reduce dangerous driving behaviors and make our walkable community safer for pedestrians. Artificial intelligence assists officers with drafting and editing reports, improving accuracy while reducing administrative burdens so they can spend more time serving the public. These tools are not replacements for the human element of policing; rather they enable our staff to provide more professional , effective, and efficient service. Every interaction—every call for service, every traffic stop, and every conversation—is an opportunity for community policing. We recognize that these moments allow us to educate, build trust , and positively influence behavior. As a profession, we have long memories. We remember Jack Ladesic, who was struck by a vehicle and left on the side of the road to die. We continue to pursue every lead in our commitment to seeking justice on his behalf. We also remember Pablo Jose Araya Rojas, who has been missing since October 21, 2025. His disappearance remains an active investigation, and we continue to work closely with our state and federal partners while pursuing multiple leads. In closing, I want our community to know that the women and men of the Avon Police Department stand ready to answer your call for service twenty- four hours a day, seven days a week. It is both an honor and a privilege to serve this remarkable community. We remain committed to earning your trust, protecting those who live, work , and visit the “heart of the valley ”, and continue to uphold our motto: Avon PD, Count on Us! Thank you, Chief Greg Daly on behalf of the women and men of the Avon Police Department APD Overview Chief of Police Greg Daly MSCr. FBI National Academy Graduate Session 263 Deputy Chief Coby Cosper MS HSSE FBI National Academy Graduate Session 287 As of December 31, 2025, the Avon Police Department maintained an authorized strength of 23 out of 23 sworn officer positions, along with two Code Enforcement Officers and three civilian professional staff members. The breakdown of authorized sworn positions by rank is provided to the left. 12 Officers & 2 Detectives 5 Sergeants 2 Code Enforcement Officers 3 Administrative Services Officers 1 Commander 80% 2025 By the Numbers Total Calls for Service 2 2 ,0 1 0 Traffic Stops 2,375 Traffic Accidents 146 Calls Officers Dispatched To 4,645 Self-Initiated Calls 17,158 Response to Resistance 19 Total Arrests 307 Up from 17 Up from 2,085 Up from 145 Down from 440 Up from 21,018 Down from 4,920 Up from 16,880 Of Total Calls for Service DUI Related (8) 2025 By the Numbers Total Crimes reported (442) 36.40% Decrease from 2024 Assaults (57) 18.57% Decrease from 2024 Motor Vehicle Thefts (9) (Seven (7) Recovered. Four (4) additional out of area cars recovered by Flock Hits 200% Increase from 2024 Sex Offenses (11) 8.33% Decrease from 2024 Burglary (12) 09.09% Increase from 2024 DUI Arrests (86) 20.37% Decrease from 2024 Larceny (160) 53.13% Decrease from 2024 Domestic Violence (37) 7.5% Decrease from 2024 Traffic Accidents (146) 0.69% Increase from 2024 Animal Control Summonses (9) 12.50% Increase from 2024 24.95% Hispanic males and 9.03% Hispanic females. This compares with 39% of our 2020 census population who report Hispanic heritage. 38.46% of our traffic stops were with Caucasian males 20.58% of our traffic stops were with Caucasian females 2.35% were with African males 0.78% was with African American females Avon PD Activity Statistics 2025 Traffic Enforcement Ethnic Breakdown Mental Health Related Incidents Avon police officers responded to 107 Welfare Checks, 7 Mental Health Holds, 24 Suicidal calls, and and additional 50 Calls for Service related to Hope Center/Referral 2025 Calls For Service by Nature Code Unknown 911 172 Directed Patrol 4423 Abduction/Kidna pping 0 Robbery 0 Alarm 193 Disturbanc e 130 Liquor Violation 0 Reports 1928 Animal Compliant 182 Intoxicated Party 40 School Lock Down 1 Runaway 0 Armed Party w/Weapon 3 Domestic Disturbanc 81 Lost Property 153 Security Checks 65 Arrest Generic 19 Drugs 11 Medical 121 Registered Sex Offenders 9 Assault 34 Drug Task Force 1 Mental Health Hold 7 Shooting or Shots Fired 5 Assist 1323 Evidence Processing 61 Missing Overdue Party 27 Mud/Rock/Sno w Slide 0 Attempt to Locate 50 Fight 26 Motor Vehicle Accident 378 Special Assignment/Dut 48 Bar Check 318 Fingerprint s 0 Negative Contact 4 Suicidal Party 24 Bear Call 86 Fire 54 Noise Complaint 130 Suspicious Occurrence 409 Bicycle Accident 0 Fireworks 0 Open Door/Windows 10 Traffic Stop 2374 Bike Patrol 25 Found Property 91 Ordinance Violation 38 Theft 120 Bomb Threat 2 Follow Up 2122 Parking Problem 669 Towed Vehicle 26 Shift Briefing 11 Foot Patrol 794 Patrol/Radar 260 Training 40 Burglary 5 Found 2 Prisoner Processing 5 Traffic Complaint 217 Business Check 1898 Fraud 43 Prowler 6 Travelers Aid 5 Chain Law 0 Person with a gun 2 Clear/List Person or Vehicle 7 Traffic Control 40 Civil Standby/Matte 169 CBI Firearms 0 Clear Person or Vehicle 4 Trespassing 80 Contact 544 Harassmen t 84 Recovered Stolen 0 Unknown Nature 63 Construction Incident 1 ID Dispute 0 REDDI 85 Criminal Injury to Property 8 Community- Oriented 411 Interview 5 Relay 269 Abandoned Vehicle 43 Damage 35 Investigati ons 1 Restraining Order Violation 21 Walk Through 13 Death 4 Juvenile Problem 34 Road Debris 114 Welfare Check 107 Worked with Community Development, Engineering, Public Ops and Facilities to implement a Wildland Fire Alternate Evacuation route from the Wildridge subdivision. Another successful Wildland fire Evacuation exercise Maintain a Safe Community Meetup spot at the PD Participated in multiple Special Olympic fundraiser events, including Tip a Cop, Torch Run, and Polar Plunge ONLY AGENCY IN COLORADO to have all officers complete the following de-escalation training: Ethical Decision Making Under Stress (EDMUS), Integrated Communications and Training (ICAT), Active Bystandership in Law Enforcement (ABLE), and Crisis Intervention Training (CIT) training provided by CO POST 90% of all officers have attended a 40 hour SWAT course. Extreme risk protection order (Red flag): Avon PD granted the first one for law enforcement in Eagle County and recently renewed it for a fourth time. Two graduations from Denver University Daniels School Public Leadership program Shop with a Cop, almost 50 children served with over $10,000 raised. We continue as a nationally accredited agency through the Commission on Accreditation for Law Enforcement Agencies (CALEA) Another successful Law Enforcement Ski Program at Beaver Creek and Vail Mental Health Wellness, constantly working on our own wellness via Peer Support and mandatory annual wellness check-ins for all officers with a licensed clinician. Officer Baldwin and Master Sergeant Lovins participated in the Police Memorial Week in Washington, D.C Chief Daly serveed on both the Colorado Peace Officers and Standards Training Board, Speak Up Reach out, Vail Valley Foundation, 800 Mhz radio governing board amongst other boards Deputy Chief Cosper served on both the 5th Judicial District’s Victims Assistance and Law Enforcement Board (VALE) as the chair and the Eagle County 911 Authority Board as a member Avon PD participated in the national Coffee with a Cop campaign Training. Avon PD officers complete over 120 hours of in-service training per year to ensure officer safety, community safety, adherence to the rule of law, adherence to national accreditation, and reduced risk mitigation. Response to resistance. There were 19 incidents in 2025 where Avon Officers had to use force. Force includes directing a weapon in a high-risk situation. In 11 incidents a police firearm was pointed at a suspect, a TASER was pointed 3 times and a TASER was deployed 1 time. There were no serious injuries to officers or suspects in all of these encounters. There were three professional standards inquiry (PSI)/ internal affairs investigations in 2025. Three were sustained for minor policy violations. APD officers taught at the Spring Valley CMC, Breckenridge CMC, and Eagle County Regional Reserve police academies. Highlights Community Initiatives & Partnerships Law Enforcement Immigrant Alliance, National Drug Takeback Program, Annual Food Drive, Law Enforcement Ski Program at Beaver Creek, Speak Up Reach Out Suicide Prevention, Vail Health Behavioral Health, Victims Assistance and Law Enforcement Board, Treetop Forensic Interview and Child Advocacy Center, Facebook, Department Chaplains, 911 Authority Board, Public Safety Council, National Night Out, School Resource Officer Program, Latino Academy, Citizen's Academy, Riverbridge Forensic Interview and Child Advocacy Centers, Mountain Pride, Colorado Peace Officers and Standards Training Board, Shop with a Cop, Colorado Special Olympics, My future Pathways, Vail Valley Latino Show, Corazon de Mujer/Hearts Reign Organization, Kids, Cops and Hoops, Faith and Blue Weekend, Coffee with a Cop, Pride in the Park, Daily Drug Takeback Safe, Sexual Assault Awareness Month, Safe Meetup Spot 4 Staffing Changes 2025 1 2 3 Hired for vacant position 605, 613, 621, and 622 graduated the police academy on May 2, 2025. Academy graduation of police officer candidates 5 613 withdrew from FTO program 07/2025 Vacant position 613 position filled 12/2025 APD FULLY STAFFED 605, 621, and 622 graduated FTO mid November 2025. Field training program for police officer candidates Hired for vacant positions 621 position filled 1/2025 641 CEO position filled 1/2025 Staffing Challenges 2025 In 2025, the Avon Police Department continued to face significant recruitment and staffing challenges, largely attributable to evolving national perceptions of law enforcement careers. During this period, the agency hired one sworn officer and filled one of two code enforcement officer positions. Four officer candidates successfully graduated from the police academy and completed the department’s 10-week in-house training program. They subsequently entered a four-month Field Training Officer (FTO) program. Of these, three candidates successfully completed the FTO program, while one withdrew. A replacement officer candidate was hired later in 2025. Although staffing conditions were strained—particularly with four of twelve patrol officers simultaneously in training—the department was ultimately able to fill all authorized vacancies. This ensured the continued delivery of professional police services and the maintenance of the agency’s service and safety standards for the Avon community. Criminal Investigation Bureau Criminal Investigations Bureau (CIB) The Criminal Investigations Bureau is a specialized unit within the Avon Police Department responsible for investigating serious and complex crimes affecting the community. The unit is staffed by one Detective Sergeant and two full-time Detectives. Core Responsibilities • Investigate felony-level crimes, including theft, assault, sexual offenses, and complex fraud • Conduct interviews, interrogations, and forensic evidence collection • Prepare and execute search and arrest warrants • Collaborate with local, state, and federal law enforcement partners • Provide investigative support to patrol operations and assist with specialized training Criminal Investigation Bureau In 2025, the Criminal Investigations Bureau worked 47 cases, the majority involving felony-level person and property crimes. CIB investigators were requested to assist with two homicide investigations within our Judicial District and also participated in two Colorado Organized Crime Control Act (COCCA) cases. One investigation expanded statewide after Avon Police Department investigators identified suspects involved in an organized crime group operating along the Front Range. The group was responsible for gun store burglaries, robberies, homicides, and motor vehicle thefts, and Avon PD played a key role in identifying suspects and establishing a crime pattern across the State of Colorado. A second investigation involved a retail theft network responsible for hundreds of thousands of dollars in losses to big-box retailers across the western United States. Through collaboration with local, state, and federal law enforcement, the organization was identified and dismantled. The case is now being prosecuted by the Colorado Attorney General’s Office. A third investigation involved a violent residential burglary in which a suspect forced entry into the victim’s home, threw a rock that narrowly missed the victim, and then assaulted him before fleeing after the victim defended himself. CIB investigators used digital forensics, License Plate Reader (LPR) technology, advanced interviewing techniques, and crime scene analysis to quickly identify and apprehend the suspect before he could leave the county. Avon PD, Count on us! (970) 748-4040 gdaly@avon.org TO: Honorable Mayor Underwood and Avon Town Council Members FROM: Greg Daly, Chief of Police RE: Axon contract renewal DATE: June 23, 2026 SUMMARY: This report provides an update on the Avon Police Department's existing contracts with Axon and requests approval to consolidate nine of the Department's current eleven contracts into a single five- year agreement beginning July 1, 2026, subject to annual appropriation. Axon is Avon Police Department's sole provider of TASER conducted energy weapons (CEWs), body-worn cameras, in-car camera systems, automated license plate reader (ALPR) technology, digital evidence management, AI-assisted report drafting, and automated video labeling services. Axon (formerly TASER International) has been a trusted vendor and technology partner of the Avon Police Department for more than sixteen years. BACKGROUND: Axon is the industry leader in conducted energy weapons and has expanded its public safety technology portfolio to include body-worn cameras, in-car camera systems, records and evidence management, computer-aided dispatch integration, ALPR technology, artificial intelligence applications, and Drone as First Responder programs. Over time, the Avon Police Department entered into eleven separate agreements with Axon as technology needs evolved and additional equipment was deployed. Each purchase of body-worn cameras, TASER devices, Automated External Defibrillators (AED), or in-car camera systems required a separate contract, resulting in increased administrative and contract management responsibilities for both Police Department and Finance Department staff. The Avon Police Department was the first law enforcement agency in Eagle County to fully adopt body- worn cameras. Body-worn cameras enhance transparency, strengthen community trust, improve evidence collection, and protect officers from unfounded or malicious complaints. Colorado law now requires peace officers to wear and activate body-worn cameras during enforcement-related contacts with members of the public. The Department's fleet camera systems provide front-facing video evidence of traffic violations, crashes, and enforcement actions. Rear detainee compartment cameras document detainee transport activities. Additionally, the front-facing camera systems incorporate ALPR technology that automatically alerts officers to stolen vehicles, stolen license plates, AMBER Alerts, Medina Alerts, Silver Alerts, Missing Indigenous Person Alerts (MIPA), and terrorism-related notifications. License plate reader data is retained for 30 days and automatically deleted thereafter. Any officer-initiated search of ALPR data requires documented justification. Over the past several months, staff have worked with Axon to consolidate nine of the Department's existing contracts into a single agreement. The proposed five-year agreement would streamline administration, modernize equipment, provide new operational capabilities, and lock pricing through the contract term. Page 2 of 3 Two existing contracts associated with our previous purchase of Zoll AED devices cannot be included in the consolidation because Axon no longer maintains its previous partnership with Zoll. PROPOSED CONTRACT BENEFITS The proposed agreement provides several operational, financial, and administrative benefits:  Consolidates nine existing contracts into a single agreement, reducing administrative burden and simplifying contract management.  Replaces aging body-worn cameras, in-car camera systems, and TASER devices with new- generation equipment.  Locks pricing for five years, avoiding anticipated rate increases beginning in 2027.  Provides a 10% early-renewal discount, representing approximately $77,681 in savings, if executed by June 30, 2026.  Includes one additional fleet camera system at no cost.  Includes virtual reality training equipment and software for TASER and handgun proficiency training at no additional cost.  Includes direct integration between Axon and the Colorado Crime Information Center (CCIC), eliminating the current manual process of downloading and uploading hot lists for stolen vehicles, missing persons, and active alerts. This integration represents an approximate $3,000 value.  Maintains annual appropriation protections under Section 17 of the Master Services and Purchasing Agreement, allowing the Town to modify or terminate the agreement should future funding be reduced. NEW TECHNOLOGY ENHANCEMENTS For a modest increase in annual cost, the Department will receive three significant new capabilities: 1. CCIC-Integrated ALPR Technology  Provides real-time access to statewide criminal justice databases and vehicle intelligence.  Eliminates manual data management processes currently performed by staff. 2. AI Assistant with Real-Time Language Translation  Enables officers to communicate in more than 50 languages directly through their body-worn cameras.  Allows immediate translation during field contacts, improving officer safety, communication, and service delivery.  Reduces reliance on telephonic language translation services and eliminates delays associated with connecting to interpreters. 3. Immersive Virtual Reality Training  Provides realistic scenario-based training for TASER deployment and handgun proficiency.  Enhances officer preparedness while reducing training costs and logistical challenges. Page 3 of 3 The AI Assistant feature carries an annual cost of $9,365. However, when combined with the savings generated through contract consolidation and negotiated pricing, the net increase remains minimal while significantly expanding department capabilities. ZOLL AED CONTRACTS The proposed Axon agreement does not include the Department's two existing Zoll AED contracts. The Avon Police Department currently maintains 22 AED units purchased through separate financing agreements. These devices are critical life-saving tools that enable officers to provide immediate defibrillation prior to the arrival of fire or emergency medical services. Avon officers have successfully utilized AEDs on numerous occasions to save lives. The remaining obligations are: 18 AED units through December 2027 at an annual cost of $9,504. 4 AED units through January 2028 at an annual cost of $2,640. At the conclusion of the current lifecycle, replacement AEDs will require future capital funding consideration. LEGAL ANALYSIS: Our Town Attorney’s Office has reviewed and approved the contract with three additions; no waiver of governmental immunity, Colorado Taxpayer’s Bill of Rights (TABOR) and indemnification. FINANCIAL CONSIDERATIONS: The Department's existing Axon contracts total $150,934.97 annually. Of that amount, $12,144 is associated with the two separate Zoll AED agreements that cannot be consolidated. The net annual cost of the existing Axon-related contracts is $138,790.97. The proposed consolidated Axon agreement totals $139,627 annually, representing an increase of $836 per year. The proposed agreement includes $30,694 which has already been invoiced by Axon for the current contracts. These funds will be rolled into the proposed contract. STAFF RECOMMENDATION: Staff recommends approval of the proposed Axon contract consolidation and five-year agreement. The proposal modernizes critical public safety technology, streamlines contract administration, replaces aging equipment, provides significant operational enhancements, and secures long-term pricing stability while maintaining annual appropriation protections for the Town. MOTION: “I move to approve the Axon Contract for five years subject to annual budget appropriation.” Thank you, Chief Greg Daly ATTACHMENT A: Axon five-year renewal quote ATTACHMENT B: Axon contract # # # RENEWAL QUOTE Avon Police Department Colorado 5-YEAR RENEWAL QUOTE QUOTE REFERENCE : AVON -PD -2026 ISSUED: APRIL 2026 EXPIRES : JUNE 30, 2026 ATTACHMENT A S T R AT E G I C V I S I O N Project Objectives Key goals and benefits of the Avon PD program upgrade. 1. Technology Modernization Upgrade to the latest Axon ecosystem, integrating advanced AI capabilities to future-proof department technology and ensure Avon PD remains at the forefront of modern policing tools. 2. Officer Safety Provide enhanced situational awareness and reliable less- lethal options (TASER 10) to maximize safety for both officers and the community during critical incidents. 3. Evidence Management Streamline the entire digital evidence workflow with unlimited cloud storage on Axon Evidence, ensuring secure, accessible, and easily shareable data across the justice system. 4. Operational Efficiency Empower officers with AI Assistant capabilities — Live Translation for breaking language barriers in the field and Policy Chat for instant access to department procedures. Combined with automated transcription and intelligent evidence tagging to reduce administrative burden and get officers back on patrol faster. Strategic Vision • Avon Police Department Renewal Axon Enterprise, Inc. — Confidential F E AT U R E C O M PA R I S O N Current vs New Contract Continuing what works — enhanced with key new capabilities for Avon PD. ✓C ONT INU ING CAPA BI L IT IE S 8 features What you have today, still included. Body-Worn Cameras ⚡TASER 10 Fleet 3 Unlimited Auto-Transcribe Auto-Tagging ☁Unlimited Storage Live Streaming Camera Refreshes ⭐NE W I N T HI S C ON T R ACT 3 additions Expanding your capabilities.  N EWALPR Integration into CCIC License plate recognition data shared directly with the Colorado Crime Information Center for faster, integrated intelligence.  N EWAI Assistant Live Translation for breaking language barriers in the field and Policy Chat for instant access to department procedures.  N EWVR Training Officer competence and safety training for TASER 10 and Handgun — included at no cost. AVON P OLI CE DE PARTM EN T • COLO R ADO AXO N E NTE R P RI S E , I N C. — C ON FI D EN T I AL C O S T A N A LY S I S Current Spend Comparison AVO N P D • C O LO R A D O S C E N A R IO 1 Current Spend WITH ZOLL 11 Contracts Total Covering TASER, BWC, Fleet, + ZOLL TOTAL CONTRACT VALUE (5 YEARS) $754,674.85 YEARLY COST $150,934.97 S C E N A R IO 2 Current Spend WITHOUT ZOLL 9 Contracts Total Covering TASER, BWC, and Fleet TOTAL CONTRACT VALUE (5 YEARS) $693,954.85 YEARLY COST $138,790.97 S U P P O R T E D E Q U I P M E N T C OV E R E D BODY-WORN CAMERAS 25 Units TASERS 23 Units FLEET CAMERAS 22 Total (20 Active, 2 Reserve) Comparison based on 5-year term.R ENE WA L • SI MPL E C ONT RACT C O M PAR I SO N P R O A C T I V E R E N E WA L Contract Consolidation Consolidating 9 active contracts into 1 unified agreement and 1 invoice — ahead of 2027 renewals. 9 AC T I V E C O NT R ACT S TO DAY  2027 RENEWAL1 U N I F I E D C O N T R AC T + I N VOIC E  Body-Worn Cameras Continue deploying advanced video evidence capture. QUANTITY 25 Units ⚡ TASER 10 Advanced energy weapon platform for officer safety. QUANTITY 23 Units  Fleet 3 with ALPR Integrated in-car video system with license plate recognition. QUANTITY 22 Units Proactive Renewal: Lock in today's rates and avoid 2027 inflation — all current software still included. A N N U A L I N V E S T M E N T $136,514.02 / year T O TA L C O N T R A C T VA L U E (5 Y E A R S ) $682,570.11 Consolidation • 9 contracts → 1 contract • 1 invoice • Proactive 2027 renewal Axon Enterprise, Inc. — Confidential O P T I O N A L C A PA B I L I T I E S Add-On Products Breakdown Enhance your ecosystem with these powerful productivity tools. AI Assistant AI-powered tools to streamline reporting and workflow efficiency across the platform. (25 units, 59 months) ADD-ON COST $47,922.75 ALPR Integration Included service for license plate recognition (Fleet 3 ALPR API integration into CCIC). ADD-ON COST Included VR Training Officer competence and safety training for TASER 10 and Handgun. Immersive virtual reality scenarios for de-escalation, use-of-force decision making, and weapons proficiency. ADD-ON COST Included  C O M B I N E D VA L U E Total Add-On Investment AI Assistant cost shown; ALPR Integration and VR Training included at no charge. $47,922.75 Pricing reflects individual add-on costs. Terms may vary. S T R AT E G I C I N V E S T M E N T O P T I O N S Recommended Investment - Option 1 (5-Year) Avon PD's selected program for the next 5 years. S E L ECT E DOption 1 - 5-Year Standard Comprehensive 5-year technology program 10% Discount – Contingent on signature by June 2026 TOTA L C O N T R AC T $776,814.30 -10% Early Signing Discount: -$77,681.43 $699,132.87  ANNUAL PAYMENT $139,626.57 / year *After $1,000 down payment I N C L U D E S : 25 Body-Worn Cameras (BWC) ⚡23 TASERs 22 Fleet 3 AI Assistant Unlimited Auto-Transcribe Auto-Tagging ALPR Integration Service Quote Ref: Q-AVON-PD-RENEWAL Axon Enterprise, Inc. — Confidential C O N T R AC T D E TA I L S Detailed Product Breakdown Complete SKU line items for Option 1 (5-Year) ITEM DESCRIPTION QTY TERM TOTAL P ROG RA M 100553 TRANSFER BALANCE - SOFTWARE AND SERVICES 1 —($40,380.82) 100552 TRANSFER BALANCE - GOODS 1 —$9,687.07 Fleet3ARe Fleet 3 Advanced Renewal 22 60 $250,232.40 HWCNAB4 AB4 CONNECTED HARDWARE BUNDLE 25 60 $0.00 B00088 OSP-UNLIMITED (NO VR)2 60 $20,149.13 M00049 OFFICER SAFETY PLAN T10 23 59 $323,400.09 V00026 UPGRADE 2026 TASER SKILLS TO FULL VR PLAN 23 60 $0.00 A LA CAR T E H AR DWA R E H00002 AB4 Multi Bay Dock Bundle 4 —$0.00 A LA CAR T E S O F T WA RE 73682 AXON EVIDENCE - AUTO TAGGING LICENSE 25 59 $15,974.25 11521 AXON FLEET - CRADLEPOINT NETCLOUD ESSENTIALS RENEWAL - 5YR 22 60 $23,430.00 85760 AXON AUTO-TRANSCRIBE - UNLIMITED SERVICE 25 59 $39,943.00 102011 AXON AI ASSISTANT 25 59 $47,922.75 ProLicense Pro License Bundle 3 60 $8,775.00 TOTAL CONTRACT $699,132.87 Includes A la Carte Service: AXON FLEET 3 - ALPR API INTEGRATION (included at no charge).QUOTE REF: Q-AVON-PD-RENEWAL | AXON ENTERPRISE, INC. — CONFIDENTIAL F I N A N C I A L P L A N N I N G Invoice Payment Schedule 5-Year payment schedule for the selected Option 1 program. $1,000 down payment due in July 2026 upon equipment shipment. Annual payments begin January 2027 through January 2031. Payment Summary $Total Contract:$699,132.87 Term Length:5 Years ↓Down Payment:$1,000.00 Annual Payment:$139,626.57 First Payment:July 2026 Final Payment:January 2031 Milestone Timeline July 2026 Down Payment Jan 2027 First Annual Installment Jan 2028 - 2030 Annual Installments Jan 2031 Final Payment Option 1 - Selected (5-Year Standard) Total: $699,132.87 SELECTED July 2026 (Down Payment)$1,000.00 January 2027 $139,626.57 January 2028 $139,626.57 January 2029 $139,626.57 January 2030 $139,626.57 January 2031 $139,626.57 Payment schedule is an estimate. Final dates dependent on exact contract signature.Axon Enterprise, Inc. — Confidential ?  S U P P O R T & L O G I S T I C S Frequently Asked Questions Common inquiries regarding contract terms, implementation logistics, and billing. What are Transfer Credits and Debits? This represents the reconciliation of the previous contract. It is the total amount that was owed on the last contract for services rendered and used but not yet paid for (debits), or conversely, services that were paid for but not rendered (credits). This ensures a clean financial transition to the new program. When will the equipment ship? For the majority of standard hardware items (BWC, TASER, sensors), shipping occurs typically 30-60 days after contract signature. Specialized DFR (Drone as First Responder) line items may take up to 120 days depending on current manufacturing backlog and configuration requirements. What does training look like? We will be fully involved in the setup of your new program. Along with your account representative, you will be assigned a designated Deployment Manager. They will coordinate training for your entire PD, manage timelines, and ensure every aspect of the transition moves smoothly from day one. What happens if the department loses funding? Your investment is protected. Section 17 of our MSPA (Master Services and Purchasing Agreement) specifically entitles you to rework or cancel the contract in the event that your department or city's budget is cut. This clause provides the necessary flexibility for long-term planning. Quote Ref: Q-AVON-PD-2026 AXON ENTERPRISE, INC. — CONFIDENTIAL Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 1 of 44 This Master Services and Purchasing Agreement ("Agreement") is between Axon Enterprise, Inc. ("Axon"), and the Customer listed below or, if no Customer is listed below, the customer on the Quote (as defined below) ("Customer"). This Agreement is effective as of the later of the (a) last signature date on this Agreement or (b) date of acceptance of the Quote ("Effective Date"). Axon and Customer are each a "Party" and collectively "Parties". This Agreement governs Customer’s purchase and use of the Axon Devices and Services detailed in the Quote. It is the intent of the Parties that this Agreement will govern all subsequent purchases by Customer for the same Axon Devices and Services in the Quote, and all such subsequent quotes accepted by Customer shall be also incorporated into this Agreement by reference as a Quote. The Parties agree as follows: 1.Definitions. 1.1. "Axon Cloud Services" means Axon’s web services, but excludes third-party applications, hardware warranties, and my.evidence.com. 1.2. "Axon Device" means all hardware provided by Axon under this Agreement. Axon-manufactured Devices are a subset of Axon Devices. 1.3. "Quote" means an offer to sell and is only valid for devices and services on the offer at the specified prices. Any inconsistent or supplemental terms within Customer’s purchase order in response to a Quote will be void. Orders are subject to prior credit approval. Changes in the deployment estimated ship date may change charges in the Quote. Shipping dates are estimates only. Axon is not responsible for typographical errors in any Quote by Axon, and Axon reserves the right to cancel any orders resulting from such errors. 1.4. "Services" means all services provided by Axon under this Agreement, including software, Axon Cloud Services, and professional services. 2.Term. This Agreement begins on the Effective Date and continues until all subscriptions hereunder have expired or have been terminated ("Term"). 2.1. All subscription plans begin on the date stated in the Quote. Each subscription term ends upon completion of the subscription stated in the Quote ("Subscription Term"). 2.2. Upon completion of the Subscription Term, the Subscription Term may renew upon mutual written agreement of the Parties for a mutually agreeable term ("Renewal Term"). For purchase of TASER 7 or TASER 10 as a standalone, Axon may increase pricing to its then-current list pricing for any Renewal Term. New devices and services may require additional terms. Axon will not authorize new services until Axon receives a signed Quote or accepts a purchase order, whichever is first. 3.Payment. Axon invoices for Axon Devices upon shipment, or on the date specified within the invoicing plan in the Quote. Payment is due net 30 days from the invoice date. Axon invoices for Axon Cloud Services on an upfront annual basis prior to the beginning of the Subscription Term and upon the anniversary of the Subscription Term. Payment obligations are non-cancelable. Unless otherwise prohibited by law, Customer will pay interest on all past-due sums at the lower of one-and-a-half percent (1.5%) per month or the highest rate allowed by law. Customer will pay invoices without setoff, deduction, or withholding. If Axon sends a past due account to collections, Customer is responsible for collection and attorneys’ fees. 4.Taxes. Customer is responsible for sales and other taxes associated with the order unless Customer provides Axon a valid tax exemption certificate. 5.Shipping. Axon may make partial shipments and ship Axon Devices from multiple locations. All shipments are EXW (Incoterms 2020) via common carrier. Title and risk of loss pass to Customer upon Axon’s delivery to the common carrier. Customer is responsible for any shipping charges in the Quote. 6.Returns. All sales are final. Axon does not allow refunds or exchanges, except warranty returns or as provided by state or federal law. 7.Warranty. 7.1. Limited Warranty. Axon warrants that Axon-manufactured Devices, except for TASER devices covered under the TASER Appendix, are free from defects in workmanship and materials for one (1) year from the date of Customer’s receipt, except Signal Sidearm which Axon warrants for thirty (30) months from Customer’s receipt and Axon-manufactured accessories, which Axon warrants for ninety (90) days from Customer’s receipt, respectively, from the date of Customer’s receipt. Extended warranties run from the expiration of the one- (1-) year hardware warranty through the extended warranty term purchased. 7.2. Disclaimer. All software and Axon Cloud Services are provided "AS IS," without any warranty of any kind, either express or implied, including without limitation the implied warranties of merchantability, fitness for a particular purpose and non-infringement. Axon Devices and Services that are not manufactured, published or performed by Axon ("Third-Party Products") are not covered by Axon’s ATTACHMENT B Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 2 of 44 warranty and are only subject to the warranties of the third-party provider or manufacturer. If Customer purchases Axon Loki, Customer acknowledges the Loki device is designed for operation in enclosed, controlled environments and must be used in compliance with all applicable laws and safety guidelines. Operation in open or unapproved areas may result in signal interference, loss of control, or damage, and Axon assumes no liability for improper use, including any resulting harm or regulatory violations. 7.3. Claims. If Axon receives a valid warranty claim for an Axon-manufactured Device during the warranty term, Axon’s sole responsibility is to repair or replace the Axon-manufactured Device with the same or like Axon- manufactured Device, at Axon’s option. A replacement Axon-manufactured Device will be new or like new. Axon will warrant the replacement Axon-manufactured Device for the longer of (a) the remaining warranty of the original Axon-manufactured Device or (b) ninety (90) days from the date of repair or replacement. 7.3.1. If Customer exchanges an Axon Device or part, the replacement item becomes Customer’s property, and the replaced item becomes Axon’s property. Before delivering an Axon-manufactured Device for service, Customer must upload Axon-manufactured Device data to Axon Evidence or download it and retain a copy. Axon is not responsible for any loss of software, data, or other information contained in storage media or any part of the Axon-manufactured Device sent to Axon for service. 7.4. Spare Axon Devices. At Axon's reasonable discretion, Axon may provide Customer a predetermined number of spare Axon Devices as detailed in the Quote ("Spare Axon Devices"). Spare Axon Devices are intended to replace broken or non-functioning units while Customer submits the broken or non-functioning units, through Axon’s warranty return process. Axon will repair or replace the unit with a replacement Axon Device. Title and risk of loss for all Spare Axon Devices shall pass to Customer in accordance with shipping terms of this Agreement. Axon assumes no liability or obligation in the event Customer does not utilize Spare Axon Devices for the intended purpose. 7.5. Limitations. Axon’s warranty excludes damage related to: (a) failure to follow Axon Device use instructions; (b) Axon Devices used with equipment not manufactured or recommended by Axon; (c) abuse, misuse, or intentional damage to Axon Device; (d) force majeure; (e) Axon Devices repaired or modified by persons other than Axon without Axon’s written permission; or (f) Axon Devices with a defaced or removed serial number. Axon’s warranty will be void if Customer resells Axon Devices. 7.5.1. To the extent permitted by law, the above warranties and remedies are exclusive. Axon disclaims all other warranties, remedies, and conditions, whether oral, written, statutory, or implied. If statutory or implied warranties cannot be lawfully disclaimed, then such warranties are limited to the duration of the warranty described above and by the provisions in this Agreement. Customer confirms and agrees that, in deciding whether to sign this Agreement, Customer has not relied on any statement or representation by Axon or anyone acting on behalf of Axon related to the subject matter of this Agreement that is not in this Agreement. 7.5.2. Axon’s cumulative liability to any party for any loss or damage resulting from any claim, demand, or action arising out of or relating to this Agreement will not exceed the purchase price paid to Axon for the Axon Device, or if for Services, the amount paid for such Services over the twelve (12) months preceding the claim. Neither Party will be liable for special, indirect, incidental, punitive or consequential damages, however caused, whether for breach of warranty or contract, negligence, strict liability, tort or any other legal theory. 7.6. Online Support Platforms. Use of Axon's online support platforms (e.g., Axon Academy and MyAxon) is governed by the Axon Online Support Platforms Terms of Use Appendix available at www.axon.com/sales- terms-and-conditions. 7.7. Third-Party Hardware, Software and Services. Use of hardware, software, or services other than those provided by Axon is governed by the terms, if any, entered into between Customer and the respective third- party provider, including, without limitation, the terms applicable to such software or services located at www.axon.com/sales-terms-and-conditions, if any. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 3 of 44 7.8. Axon Aid. Upon mutual agreement between Axon and Customer, Axon may provide certain products and services to Customer, as a charitable donation under the Axon Aid program. In such event, Customer expressly waives and releases any and all claims, now known or hereafter known, against Axon and its officers, directors, employees, agents, contractors, affiliates, successors, and assigns (collectively, "Releasees"), including but not limited to, on account of injury, death, property damage, or loss of data, arising out of or attributable to the Axon Aid program whether arising out of the negligence of any Releasees or otherwise. Customer agrees not to make or bring any such claim against any Release, and forever release and discharge all Releasees from liability under such claims. Customer expressly allows Axon to publicly announce its participation in Axon Aid and use its name in marketing materials. Axon may terminate the Axon Aid program without cause immediately upon notice to the Customer. 8. Free Trial. 8.1. Trial Period and License. At any time during the Term, Customer and Axon may elect to enter a free trial of Axon Devices and Services new to the Customer for a designated period (“Trial Period”) as described in a quote issued (“Trial Quote”). During the Trial Period, Axon grants Customer a nonexclusive, terminable, non- transferable, license to use new Axon Devices and Services provided for trial to the Customer (“Trial Products”). Trial Products may include Axon beta software or firmware which additional terms may be required and included within the Trial Quote. Axon may limit the number of Trial Products Customer receives within the Trial Quote. Axon may supply refurbished Trial Products. ALL FREE TRIAL PRODUCTS INCLUDING, WITHOUT LIMITATION, AXON CLOUD SERVICES, ARE PROVIDED “AS IS” AND TO THE EXTENT NOT PROHIBITED BY LAW, AXON DISCLAIMS ALL LIABILITY REGARDLESS OF THE CLAIM. 8.2. Trial Quote Termination. Upon at least 10 business days’ prior written notice to Axon at any time prior to the end of the Trial Period, Customer may as its sole option, terminate the free Trial Period and underlying Trial Quote associated with the Trial Products for convenience. Customer’s rights to the Trial Products will immediately terminate at the end of the Trial Period, and Customer will return any Trial Products hardware to Axon within 10 days after the effective date of such termination or at the end of the Trial Period, excluding used CEW cartridges. If any individual component of the Trial Products is not returned, Axon will invoice Customer the MSRP of the unreturned items. Customer agrees to pay the invoice along with any applicable taxes and shipping. Customer will return the Trial Products to Axon in good working condition, minus normal wear and tear. Axon may charge Customer if there is damage beyond normal wear and tear. Any Customer Content shall be stored and returned pursuant to the Axon Cloud Services Terms of Use Appendix 9. Statement of Work. Certain Axon Devices and Services, including, but not limited to, Axon Interview Room, Axon Channel Services, Axon Justice Implementation, FUSUS, and Axon Fleet, may require a Statement of Work that details Axon’s Service deliverables ("SOW"). In the event Axon provides an SOW to Customer, Axon is only responsible for the performance of Services described in the SOW. Additional services outside of the SOW, Quote, or this Agreement are out of scope. The Parties must document scope changes in a written and signed change order. Changes may require an equitable adjustment in fees or schedule. Any applicable SOW is incorporated into this Agreement by reference. 10. Axon Device Warnings. See www.axon.com/legal for the most current Axon Device warnings. 11. Design Changes. Axon may make design or feature changes to any Axon Device or Service without notifying Customer or making the same change to Axon Devices and Services previously purchased by Customer. 12. Combined Offerings. Some offerings in a Quote combine existing and pre-released Axon Devices or Services. Some offerings may not be available at the time of Customer’s purchase. Axon will not provide a refund, credit, or additional discount beyond what is in the Quote due to delay of availability or Customer’s choice not to utilize any portion of a combined offering. 13. Insurance. Axon will maintain General Liability, Workers’ Compensation, and Automobile Liability insurance. Upon request, Axon will supply certificates of insurance. 14. IP Rights. Axon owns and reserves all right, title, and interest in Axon-manufactured Devices and Services and suggestions to Axon, including all related intellectual property rights. Customer will not cause any Axon proprietary rights to be violated. 15. Indemnification. 15.1. IP Indemnification. Axon will indemnify Customer against all claims, losses, and reasonable expenses from any third-party claim alleging that the use of Axon-manufactured Devices, Axon Cloud Services or Axon software (“Axon Products”) infringes or misappropriates the third-party’s intellectual property rights. Customer must promptly provide Axon with written notice of such claim, tender to Axon the Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 4 of 44 defense or settlement of such claim at Axon’s expense and cooperate fully with Axon in the defense or settlement of such claim. Axon’s IP indemnification obligations do not apply to claims based on (a) modification of Axon Products by Customer or a third-party not approved by Axon; (b) use of Axon Products in combination with hardware or services not approved by Axon; (c) use of Axon Products other than as permitted in this Agreement; or (d) use of Axon Products that is not the most current software release provided by Axon. 15.2. Axon Indemnification. To the fullest extent permitted by law, Axon shall indemnify, defend, and hold harmless the Customer, its members, affiliates, officers, directors, partners, employees, and agents from against all third-party claims, damages, losses, and expenses, including but not limited to reasonable attorney’s fees, arising out of the performance of the Services, provided that any such claim, damage, loss or expense is caused by any negligent act or omission of Axon, anyone directly or indirectly employed by Axon, or anyone for whose acts Axon may be liable, except to the extent any portion is caused in part by a party indemnified hereunder. Notwithstanding the foregoing, Axon’s indemnification obligations for TASER devices or TASER-related services under this Agreement are limited solely to third-party product liability Claims arising from a defect in such devices. Axon will have no indemnification obligation for Claims or Damages arising from Customer’s misuse or use of TASER devices inconsistent with Axon’s documentation, instructions, or training. 16. Customer Responsibilities. Customer is responsible for (a) Customer’s use of Axon Devices; (b) Customer or a Customer-authorized user’s breach of this Agreement or violation of applicable law; (c) disputes between Customer and a third-party over Customer’s use of Axon Devices; (d) secure and sustainable destruction and disposal of Axon Devices at Customer’s cost; and (e) any regulatory violations or fines, as a result of improper destruction or disposal of Axon Devices. 17. Termination. 17.1. For Breach. A Party may terminate this Agreement for cause if it provides thirty (30) days written notice of the breach to the other Party, and the breach remains uncured thirty (30) days after written notice. If Customer terminates this Agreement due to Axon’s uncured breach, Axon will refund prepaid amounts on a prorated basis based on the effective date of termination. 17.2. By Customer. If sufficient funds are not appropriated or otherwise legally available to pay the fees, Customer may terminate this Agreement. Customer will deliver notice of termination under this section as soon as reasonably practicable. 17.3. Effect of Termination. Upon termination of this Agreement, Customer rights immediately terminate. Customer remains responsible for all fees incurred before the effective date of termination. If Customer purchases Axon Devices for less than the manufacturer’s suggested retail price ("MSRP") and this Agreement terminates before the end of the Term, Axon will invoice Customer the difference between the MSRP for Axon Devices procured, including any Spare Axon Devices, and amounts paid towards those Axon Devices. Only if terminating for non- appropriation, Customer may avoid the MSRP fee by returning Axon Devices to Axon within thirty (30) days of termination. MSRP is the standalone price of the individual Axon Device at the time of sale. For multiple Axon Devices that may be combined as a single offering on a Quote, MSRP is the standalone price of all individual components. 18. Confidentiality. "Confidential Information" means nonpublic information designated as confidential or, given the nature of the information or circumstances surrounding disclosure, should reasonably be understood to be confidential. Each Party will take reasonable measures to avoid disclosure, dissemination, or unauthorized use of the other Party’s Confidential Information. Unless required by law, neither Party will disclose the other Party’s Confidential Information during the Term and for five (5) years thereafter. To the extent permissible by law, Axon pricing is Confidential Information and competition sensitive. If Customer receives a public records request to disclose Axon Confidential Information, to the extent allowed by law, Customer will provide notice to Axon before disclosure. Axon may publicly announce information related to this Agreement. 19. General. 19.1. Force Majeure. Neither Party will be liable for any delay or failure to perform due to a cause beyond a Party’s reasonable control. 19.2. Independent Contractors. The Parties are independent contractors. Neither Party has the authority to bind the other. This Agreement does not create a partnership, franchise, joint venture, Customer, fiduciary, or employment relationship between the Parties. 19.3. Third-Party Beneficiaries. There are no third-party beneficiaries under this Agreement. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 5 of 44 19.4. Non-Discrimination. Neither Party nor its employees will discriminate against any person based on race; religion; creed; color; sex; gender identity and expression; pregnancy; childbirth; breastfeeding; medical conditions related to pregnancy, childbirth, or breastfeeding; sexual orientation; marital status; age; national origin; ancestry; genetic information; disability; veteran status; or any class protected by local, state, or federal law. 19.5. Compliance with Laws. Each Party will comply with all applicable federal, state, and local laws, including without limitation, import and export control laws and regulations as well as firearm regulations and the Gun Control Act of 1968. Customer acknowledges that Axon Devices and Services are subject to U.S. and international export control laws, including the U.S. Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR). Customer represents and warrants that neither it nor any End User is a "Restricted Person," meaning any individual or entity that (1) is subject to U.S. sanctions or trade restrictions, (2) appears on any U.S. government restricted party list, (3) engages in prohibited weapons proliferation activities, or (4) is owned or controlled by, or acting on behalf of, such persons or entities. Customer must promptly notify Axon of any change in status, and Axon may terminate this Agreement if Customer or any End User becomes a Restricted Person or violates export laws. 19.6. Assignment. Neither Party may assign this Agreement without the other Party’s prior written consent. Axon may assign this Agreement, its rights, or obligations without consent: (a) to an affiliate or subsidiary; or (b) for purposes of financing, merger, acquisition, corporate reorganization, or sale of all or substantially all its assets. This Agreement is binding upon the Parties respective successors and assigns. 19.7. Waiver. No waiver or delay by either Party in exercising any right under this Agreement constitutes a waiver of that right. 19.8. Severability. If a court of competent jurisdiction holds any portion of this Agreement invalid or unenforceable, the remaining portions of this Agreement will remain in effect. 19.9. Survival. The following sections will survive termination: Payment, Warranty, Axon Device Warnings, Indemnification, IP Rights, Customer Responsibilities and any other Sections detailed in the survival sections of the Appendices. 19.10. Governing Law. The laws of the country, state, province, or municipality where Customer is physically located, without reference to conflict of law rules, govern this Agreement and any dispute arising from it. The United Nations Convention for the International Sale of Goods does not apply to this Agreement. The Parties expressly agree that either Party may appear for and attend all matters, remotely via teleconference or videoconference at the party’s discretion, to the extent allowable by court. 19.11. Notices. All notices must be in English. Notices posted on Customer’s Axon Evidence site are effective upon posting. Notices by email are effective on the sent date of the email. Notices by personal delivery are effective immediately. Notices to Customer shall be provided to the address on file with Axon. Notices to Axon shall be provided to Axon Enterprise, Inc. Attn: Legal, 17800 North 85th Street, Scottsdale, Arizona 85255 with a copy to legal@axon.com. 19.12. Entire Agreement. This Agreement, the Appendices, including any applicable Appendices not attached herein for the products and services purchased, which are incorporated by reference and located in the Master Purchasing and Services Agreement located at https://www.axon.com/sales-terms-and-conditions, Quote and any SOW(s), represents the entire agreement between the Parties. This Agreement supersedes all prior agreements or understandings, whether written or verbal, regarding the subject matter of this Agreement. This Agreement may only be modified or amended in a writing signed by the Parties. 19.13. No Waiver of Governmental Immunity. Nothing in this Agreement shall be construed to waive, limit, or otherwise modify any governmental immunity that may be available by law to the Customer, its officials, employees, contractors, or agents, or any other person acting on behalf of the Town and, in particular, governmental immunity afforded or available pursuant to the Colorado Governmental Immunity Act, Title 24, Article 10, Part 1 of the Colorado Revised Statutes. 19.14. Article X, Section 20/TABOR. The Parties understand and acknowledge that the Customer is subject to Article X, § 20 of the Colorado Constitution (“TABOR”). The Parties do not intend to violate the terms and requirements of TABOR by the execution of this Agreement. It is understood and agreed that this Agreement does not create a multi-fiscal year direct or indirect debt or obligation within the meaning of TABOR and, therefore, notwithstanding anything in this Agreement to the contrary, all payment obligations of the Town are expressly dependent and conditioned upon the continuing availability of funds beyond the term of the Town's current fiscal period ending upon the next succeeding December 31. Upon the failure to appropriate such funds, this Agreement shall be terminated subject to Section 17 of this Agreement. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 6 of 44 Each Party, by and through its respective representative authorized to execute this Agreement, has duly executed and delivered this Agreement as of the date of signature. AXON: CUSTOMER: Axon Enterprise, Inc. Town of Avon Police Department Signature: Signature: Name: Name: Title: Title: Date: Date: Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 7 of 44 Axon Cloud Services Terms of Use Appendix 1. Definitions. 1.1. “Data Controller” means the natural or legal person, public authority, or any other body which alone or jointly with others determines the purposes and means of the processing of Personal Data. 1.2. “Data Processor” means a natural or legal person, public authority or any other body which processes Personal Data on behalf of the Data Controller. 1.3. "Customer Content" is data uploaded into, ingested by, or created in Axon Cloud Services within Customer’s tenant, including media or multimedia uploaded into Axon Cloud Services by Customer. Customer Content includes Evidence but excludes Non-Content Data. 1.4. "Evidence" is media or multimedia uploaded into Axon Evidence as 'evidence' by Customer. Evidence is a subset of Customer Content. 1.5. “End User” means the natural person subject to Customer’s authorized license grant who ultimately uses the Cloud Services as provided under this Agreement. End Users must adhere to the terms of use and are subject to any usage restrictions or limitations specified in this Agreement. 1.6. "Non-Content Data" is data, configuration, and usage information about Customer’s Axon Cloud Services tenant, Axon Devices and client software, and users that is transmitted or generated when using Axon Devices. Non-Content Data includes data about users captured during account management and customer support activities. Non-Content Data does not include Customer Content. 1.7. "Personal Data" means any information relating to an identified or identifiable natural person. An identifiable natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, an online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person. 1.8. "Provided Data" means de-identified, de-personalized, data derived from Customer's TASER energy weapon deployment reports, related TASER energy weapon logs, body-worn camera footage, and incident reports. 1.9. “Subprocessor” means any third party engaged by the Data Processor to assist in data processing activities that the Data Processor is carrying out on behalf of the Data Controller. 1.10. "Transformed Data" means the Provided Data used for the purpose of quantitative evaluation of the performance and effectiveness of TASER energy weapons in the field across a variety of circumstances. 2. Access. Upon Axon granting Customer a subscription to Axon Cloud Services, Customer may access and use Axon Cloud Services to store and manage Customer Content. Customer may not exceed the total number of End Users specified in the Quote. Axon Air requires an Axon Evidence subscription for each drone operator. For Axon Evidence access granted solely for TASER, Customer may access and use Axon Evidence only to store and manage TASER CEW data ("TASER Data") and Customer may not upload non-TASER Data to Axon Evidence. 3. Customer Owns Customer Content. Customer controls and owns all rights, title, and interest in Customer Content. Except as outlined herein, Axon obtains no interest in Customer Content, and Customer Content is not Axon’s business records. Customer is solely responsible for uploading, sharing, managing, and deleting Customer Content. Axon will only have access to Customer Content for the limited purposes set forth herein. Customer agrees to allow Axon access to Customer Content to (a) perform troubleshooting, maintenance, or diagnostic screenings; and (b) enforce this Agreement or policies governing use of the Axon products. 4. Security. Axon will implement commercially reasonable and appropriate measures to secure Customer Content against accidental or unlawful loss, access or disclosure. Axon will maintain a comprehensive information security program to protect Axon Cloud Services and Customer Content including logical, physical access, vulnerability, risk, and configuration management; incident monitoring and response; encryption of uploaded digital evidence; security education; and data protection. Axon agrees to the Federal Bureau of Investigation Criminal Justice Information Services Security Addendum for its digital evidence or records management systems. 5. Customer Responsibilities. Customer is responsible for (a) ensuring Customer owns Customer Content or has the necessary rights to use Customer Content (b) ensuring no Customer Content or Customer End User’s use Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 8 of 44 of Customer Content or Axon Cloud Services violates this Agreement or applicable laws; (c) maintaining necessary computer equipment and Internet connections for use of Axon Cloud Services and (d) verify the accuracy of any auto generated or AI-generated reports. If Customer becomes aware of any violation of this Agreement by an End User, Customer will immediately terminate that End User’s access to Axon Cloud Services. 5.1. Customer will also maintain the security of End User usernames and passwords and security and access by end users to Customer Content. Customer is responsible for ensuring the configuration and utilization of Axon Cloud Services meet applicable Customer regulation and standards. Customer may not sell, transfer, or sublicense access to any other entity or person. If Customer provides access to unauthorized third-parties, Axon may assess additional fees along with suspending Customer’s access. Customer shall contact Axon immediately if an unauthorized party may be using Customer’s account or Customer Content, or if account information is lost or stolen. 5.2. To the extent Customer uses the Axon Cloud Services to interact with YouTube®, such use may be governed by the YouTube Terms of Service, available at https://www.youtube.com/static?template=terms. 6. Privacy. Customer’s use of Axon Cloud Services is subject to the Axon Cloud Services Privacy Policy, a current version of which is available at https://www.axon.com/legal/cloud-services-privacy-policy. Customer agrees to allow Axon access to Non-Content Data from Customer to (a) perform troubleshooting, maintenance, or diagnostic screenings; (b) provide, develop, improve, and support current and future Axon products and related services; and (c) enforce this Agreement or policies governing the use of Axon products. 7. Axon Body Wi-Fi Positioning. Axon Body cameras may offer a feature to enhance location services where GPS/GNSS signals may not be available, for instance, within buildings or underground. Customer administrators can manage their choice to use this service within the administrative features of Axon Cloud Services. If Customer chooses to use this service, Axon must also enable the usage of the feature for Customer’s Axon Cloud Services tenant. Customer will not see this option with Axon Cloud Services unless Axon has enabled Wi-Fi Positioning for Customer’s Axon Cloud Services tenant. 8. Storage. For Axon Unlimited Device Storage subscriptions, Customer may store unlimited data in Customer's Axon Evidence account only if the Axon Device data is shared to Customer through Axon Evidence from a partner agency using Axon Evidence, or the data originates from Axon Capture or an Axon Device. Axon may charge Customer additional fees for exceeding purchased storage amounts. Axon may place Customer Content that Customer has not viewed or accessed for six (6) months into archival storage. Customer Content in archival storage will not have immediate availability and may take up to twenty-four (24) hours to access. 8.1. Third-Party Unlimited Storage. For Third-Party Unlimited Storage the following restrictions apply: (i) it may only be used in conjunction with a valid Axon Evidence user license; (ii) is limited to data of the law enforcement Customer that purchased the Third-Party Unlimited Storage and the Axon Evidence End User; (iii) Customer is prohibited from storing data for other customers or law enforcement agencies; and (iv) Customer may only upload and store data that is directly related to (1) the investigation of, or the prosecution or defense of a crime, (2) common law enforcement activities, or (3) any Customer Content created by Axon Devices or Axon Evidence. 8.2. Location of Storage. Axon may transfer Customer Content to third-party subcontractors for storage. Axon will determine the locations of data centers for storage of Customer Content If Customer is located in the United States, Canada, or Australia, Axon will ensure all Customer Content stored in Axon Cloud Services remains in the country where Customer is located Ownership of Customer Content remains with Customer. 9. Suspension. Axon may temporarily suspend Customer’s or any End User’s right to access or use any portion or all of Axon Cloud Services immediately upon notice, if Customer or End User’s use of or registration for Axon Cloud Services may (a) pose a security risk to Axon Cloud Services or any third-party; (b) adversely impact Axon Cloud Services, the systems, or content of any other customer; (c) subject Axon, Axon’s affiliates, or any third- party to liability; or (d) be fraudulent. Customer remains responsible for all fees incurred through suspension. Axon will not delete Customer Content because of suspension, except as specified in this Agreement . 10. Axon Cloud Services Warranty. Axon disclaims any warranties or responsibility for data corruption or errors before Customer uploads data to Axon Cloud Services Service Offerings will be subject to the Axon Cloud Services Service Level Agreement, a current version of which is available at https://www.axon.com/products/axon-evidence/sla. 11. Roles of the Parties. To the extent that Customer is the Data Controller of Personal Data, Axon is its Data Processor. To the extent that Customer is a Data Processor of Personal Data, Axon is its Subprocessor. Notwithstanding the foregoing, to the extent any usage data (including query logs and metadata) Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 9 of 44 and/or operations data (including billing and support data) in connection with Customer’s use of the Services (collectively “Usage and Operations Data”) is considered Personal Data, Axon is an independent Data Controller and shall Process such data in accordance with the Agreement and applicable data protection laws to develop, improve, support, and operate its products and services. For the avoidance of doubt, Axon will not disclose any Usage and Operations Data that includes confidential information with a third party except (a) in accordance with the relevant confidentiality provisions in the Agreement, or (b) to the extent the Usage and Operations Data is, in accordance with applicable data protection laws, anonymized, de-identified, and/or aggregated such that it can no longer directly or indirectly identify Customer or any particular individual. 12. TASER Data Science Program. Axon will provide a quantitative evaluation on the performance and effectiveness of TASER energy weapons in the field across a variety of circumstances. 12.1. If Customer purchases the TASER Data Science Program, Customer grants Axon, its affiliates, and assignees an irrevocable, perpetual, fully paid, royalty-free, and worldwide right and license to use Provided Data solely for the purposes of this Agreement and to create Transformed Data. Customer shall own all rights and title to Provided Data. Axon shall own all rights and title to Transformed Data and any derivatives of Transformed Data. 12.2. Axon grants to Customer an irrevocable, perpetual, fully paid, royalty-free, license to use to TASER Data Science report provided to Customer for its own internal purposes. The Data Science report is provided “as is” and without any warranty of any kind. 12.3. In the event Customer seeks Axon’s deletion of Provided Data, it may submit a request to privacy@axon.com. Where reasonably capable of doing so, Axon will implement the request but at a minimum will not continue to collect Provided Data from Customer. 13. Axon Records. The following terms apply to Axon Records. Customers may purchase Axon Records either as part of an OSP 7 or OSP 10 plan or individually through a Quote. 13.1. Axon Record subscription begins on the later of the (1) start date of the Quote, or (2) the date Axon provisions Axon Records to Customer. The Axon Records Subscription Term will end upon the completion of the Axon Records Subscription as documented in the Quote, or if purchased as part of an OSP 7 or OSP 10 plan, upon completion of the OSP 7 or OSP 10 Term ("Axon Records Subscription Term"). 13.2. An "Update" is a generally available release of Axon Records that Axon makes available from time to time. An "Upgrade" includes (i) new versions of Axon Records that enhance features and functionality, as solely determined by Axon; and/or (ii) new versions of Axon Records that provide additional features or perform additional functions. Upgrades exclude new products that Axon introduces and markets as distinct products or applications. During the Customer’s Axon Records Subscription Term Axon will provide Update and Upgrade releases to the Customer on an if-and-when available basis. 13.3. New or additional Axon products and applications, as well as any Axon professional services needed to configure Axon Records, are not included as part of the Axon Records Subscription. 13.4. End Users of Axon Records may upload files to entities (incidents, reports, cases, etc.) in Axon Records with no limit to the number of files and amount of storage. Notwithstanding the foregoing, Axon may limit usage should the Customer exceed an average rate of one-hundred (100) GB per user per year of uploaded files. Axon will not bill for overages. 14. FUSUS. If Customer purchases a subscription to FUSUS, the following terms apply: 14.1. License and Storage. The specific license number(s) and associated data storage terms for FUSUS subscription and Axon Devices shall be set forth in the applicable Quote provided by Axon. 14.2. Third party Components. Customer is responsible for use of any internet access devices and/or all third- party hardware, software, services, telecommunication services (including Internet connectivity), or other items used by Customer to access the service (“Third-Party Components”) are the sole and exclusive responsibility of Customer, and Axon has no responsibility for such Third-party Components, FUSUS cloud services, or Customer relationships with such third parties. Customer agrees to at all times comply with the lawful terms and conditions of agreements with such third parties. Axon does not represent or warrant that the FUSUS cloud services and the Customer Content are compatible with any specific third-party hardware or software or any other Third-Party Components. Customer is responsible for providing and maintaining an operating environment as reasonably necessary to accommodate and access the FUSUS cloud services. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 10 of 44 14.3. Data Privacy. Axon may collect, use, transfer, disclose and otherwise process Customer Content in the context of facilitating communication of data with Customer through their use of FUSUS cloud services FUSUS app (iOS or Android interface), complying with legal requirements, monitoring the Customer’s use of FUSUS systems, and undertaking data analytics. 14.4. Hardware Allowance. If Customer purchases a hardware allowance, Customer may select hardware up to the value if the allowance. Axon does not provide refunds for unused portions of the allowance. 15. Carbyne Products and Services 15.1. Privacy Policy. Carbyne Privacy Policy governs the collection, use and disclosure of certain data provided to Axon in connection with Customer’s use of the Carbyne products and services. The current policy is located: https://carbyne.com/app-privacy-policy/ and is incorporated into this Agreement by reference. 15.2. Data Retention and Storage. Unless Customer provides Axon with written instruction otherwise, Axon will retain Customer Content which uploaded to the Carbyne cloud services or which is recorded or stored in the course of your use of the Carbyne products and services, for a period of two years (the period we retain your data referred to as the “Data Retention Period”), provided that Customer acknowledges it is responsible for your compliance with any applicable data retention laws. Customer Content is automatically deleted after the Data Retention Period; however, at any time prior to such deletion, Customer may download Customer Content which has been stored on the Carbyne Cloud Services. Customer is solely responsible for the retention of such data for any applicable retention periods and for the purpose of any subsequent data requests. 15.3. Disclaimer. CUSTOMER ACKNOWLEDGES THE CARBYNE PRODUCTS DO NOT PROVIDE TELEPHONE SERVICES, INTERCONNECTED VOIP SERVICES, OR 911 SERVICES. AXON MAKES NO REPRESENTATION THAT CARBYNE PRODUCTS ARE AN INTERCONNECTED VOIP SERVICE. 16. Prepared Products and Services. 16.1. Prepared product deployment timelines for Prepared products within the Scope of Work (SOW) shall be mutually agreed to by the Parties in the SOW. The initial deployment of Assistive Call Taking (ACT) may take up to 12 months from the execution of the SOW and the service start date listed in the Agreement; deployments of the remaining Prepared products may take up to twenty-four (24) months from the execution of the SOW. Axon must confirm feasibility based on technical requirements for Prepared products prior to the execution of the SOW. 16.2. Customers using Solacom (Comtech CHE) call handling equipment in a multi-tenant configuration are not eligible for Prepared ACT or Prepared AQA, as call audio cannot be isolated to a single agency. Such Customers remain eligible for ANET and Assistive Dispatch. Customers on Solacom single-tenant configurations are eligible for all Prepared products, subject to SPAN port fees described below. 17. Axon Community Request Storage. If Community Request is included as part of Customer’s Quote or combined offering, Customer may store an unlimited amount of data submitted through the public portal ("Portal Content"), within Customer’s Axon Evidence instance. The post-termination provisions outlined in the Axon Cloud Services Terms of Use Appendix also apply to Portal Content. 18. Performance Auto-Tagging Data. If Axon Performance is included in Customer’s Quote or a combined offering, Axon will store call for service data from Customer’s CAD or RMS in order to provide services and features of Axon Performance to Customer. 19. Axon Cloud Services Restrictions. Customer and Customer End Users (including employees, contractors, agents, officers, volunteers, and directors), may not, or may not attempt to: 19.1. copy, modify, tamper with, repair, or create derivative works of any part of Axon Cloud Services; 19.2. reverse engineer, disassemble, or decompile Axon Cloud Services or apply any process to derive any source code included in Axon Cloud Services, or allow others to do the same; 19.3. access or use Axon Cloud Services with the intent to gain unauthorized access, avoid incurring fees or exceeding usage limits or quotas; 19.4. use trade secret information contained in Axon Cloud Services, except as expressly permitted in this Agreement; Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 11 of 44 19.5. access Axon Cloud Services to build a competitive device or service or copy any features, functions, or graphics of Axon Cloud Services; 19.6. remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon’s or Axon’s licensors on or within Axon Cloud Services; or 19.7. use Axon Cloud Services to store or transmit infringing, libelous, or other unlawful or tortious material; material in violation of third-party privacy rights; or malicious code. 20. After Termination. Axon will not delete Customer Content for ninety (90) days following termination. Axon Cloud Services will not be functional during these ninety (90) days other than the ability to retrieve Customer Content. Customer will not incur additional fees if Customer downloads Customer Content from Axon Cloud Services during this time. Axon has no obligation to maintain or provide Customer Content after these ninety (90) days and will thereafter, unless legally prohibited, delete all Customer Content. Upon request, Axon will provide written proof that Axon successfully deleted and fully removed all Customer Content from Axon Cloud Services. 21. Post-Termination Assistance. Axon will provide Customer with the same post-termination data retrieval assistance that Axon generally makes available to all customers. Requests for Axon to provide additional assistance in downloading or transferring Customer Content, including requests for Axon’s data egress service, will result in additional fees and Axon will not warrant or guarantee data integrity or readability in the external system. 22. U.S. Government Rights. If Customer is a U.S. Federal department or using Axon Cloud Services on behalf of a U.S. Federal department, Axon Cloud Services is provided as a "commercial item," "commercial computer software," "commercial computer software documentation," and "technical data", as defined in the Federal Acquisition Regulation and Defense Federal Acquisition Regulation Supplement. If Customer is using Axon Cloud Services on behalf of the U.S. Government and these terms fail to meet the U.S. Government’s needs or are inconsistent in any respect with federal law, Customer will immediately discontinue use of Axon Cloud Services. 23. Survival. Upon any termination of this Agreement, the following sections in this Appendix will survive: Customer Owns Customer Content, Privacy, Storage, Axon Cloud Services Warranty, Customer Responsibilities and Axon Cloud Services Restrictions. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 12 of 44 AI Technology Appendix This AI Technology Appendix shall only apply to Customers who license Axon Cloud Services in a Quote that specifically utilizes AI Technology. Unless explicitly defined otherwise, capitalized terms used in this Appendix have the same meaning as those in the Agreement. 1. Definitions. 1.1. AI Technology. Refers to artificial intelligence functionalities embedded in Axon’s Cloud Services, which may include: (a) Enhanced Evidence Management; (b) AI-powered redaction tools; (c) Large Language Model-based tools (e.g., "Draft One" “Policy Chat”); (d) Predictive Analytics for operational insights; or (e) Natural Language Processing (NLP) for text and speech analysis. 1.2. Model Drift. The degradation of AI model performance due to changes in input data or external conditions, requiring retraining or updates. 1.3. Bias Mitigation. Strategies and techniques used to identify, measure, and minimize bias in AI Technology. 2. Integration. Axon AI Technology is intended to improve public safety, streamline operations, and ensure data accuracy. The AI functionalities will only be used as described in the Agreement or applicable documentation. 3. Data Use. Axon acts as a Data Processor for AI Technology. All inquiries submitted are processed solely to provide accurate responses based on Customer Content submitted. Customer remains the Data Controller of all Customer Content. Axon and Axon’s subprocessors do not train their models on Customer Content. Customers who elect to participate in Axon’s ACEIP program can enter into custom agreements to assist in product development efforts like AI model training. Even in those cases, Axon operates carefully on redacted data and not on Customer Content. 4. Automatic Data Collection. AI Technology may automatically collect Non-Content Data about user interactions with the service and their devices to enhance the functionality and security of the system. The details collected include, but are not limited to, the following: 4.1. User Engagement and Activity Metrics. AI Technology may track key engagement statistics, including Daily Active Users (DAUs), Weekly Active Users (WAUs), and Monthly Active Users (MAUs). Additional metrics include new user activations, repeat usage rates, total queries submitted, follow-up query volume, session lengths, retention rates, and user satisfaction ratings (e.g., thumbs up/down feedback). 4.2. Sales and Adoption Tracking. Axon monitors the number of licenses and agencies purchasing the service, including those in trial phases, fully deploying the service, and conversion rates from trials to paid subscriptions. 4.3. End User inputs. Axon may process de-identified end-user inputs to the AI Technology, excluding Customer Content or any data that directly or indirectly identifies individuals. 5. Axon Responsibilities. 5.1. Ethical AI Development. Axon shall: (a) Follow its responsible innovation framework; (b) Engage with the Ethics and Equity Advisory Council (EEAC) for feedback; (c) Conduct testing to minimize bias and ensure reliability; and (d) Implement Bias Mitigation techniques in model development and deployment. 5.2. Security Program. Axon will maintain a comprehensive information security program, including logical and physical access, vulnerability, risk, and configuration management; incident monitoring and response; encryption of digital evidence; and security education. 5.3. Transparency. Axon will provide documentation describing AI functionalities and their intended use and disclose any material limitations, risks, or Model Drift incidents. 5.4. Incident Response. Axon will promptly address and rectify anomalies in AI functionalities, as outlined in its incident management procedures. 5.5. Compliance. Axon will ensure compliance with applicable laws, regulations, and standards, including but not limited to the EU AI Act, NIST AI standards, and ISO/IEC 27001. 6. Customer Responsibilities. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 13 of 44 6.1. Ownership of Customer Content. Customer controls and owns all rights, title, and interest in Customer Content. Axon obtains no interest in Customer Content and will only access Customer Content for limited purposes as outlined in the Agreement. 6.2. Use of AI Technologies. Customer must: (a) review AI-generated outputs to ensure accuracy and appropriateness; (b) maintain control over Customer Content shared with AI Technologies (c) comply with applicable laws when using Axon AI Technology and Axon Services; (d) monitor for potential issues with AI outputs, including false positives or negatives; (e) actively opt-in for programs involving data sharing through Axon’s ACEIP program; and (f) provide timely feedback on Axon AI Technology performance . 6.3. Restrictions. AI Technology is not designed for emergencies, and in such cases, users should contact appropriate emergency services directly. Axon disclaims liability for queries containing prohibited content, such as hate, sexual material, or violence, and reserves the right to restrict such usage. Axon translation products may not be used by healthcare providers (doctors, nurses, paramedics, etc.) for the purpose of providing healthcare services and are only meant to allow healthcare providers to de-escalate confrontations. 7. Policy Chat. This section outlines the specific terms and conditions related to the use of Policy Chat by the Customer. By utilizing Policy Chat, the Customer agrees to comply with the following provisions: 7.1. License and Content Restrictions. Any uploads beyond 5,000 pages may be limited by Axon. It is the Customer's responsibility to manage uploads to ensure system efficiency and compliance with these terms. 7.2. Data Processing. Inquiries submitted to Policy Chat are processed solely to provide accurate responses based on existing policy documents provided by the Customer. The Customer remains the Data Controller of all policy content, and Axon's role is strictly limited to facilitating access to this information through Policy Chat. 7.3. Policy Chat Restrictions. The information provided by Policy Chat is for informational purposes only and is based on the policy documents uploaded by the Customer. Axon does not guarantee the accuracy, completeness, or timeliness of the information, and disclaims all liability for any reliance placed on such information. Policy Chat is not a substitute for official policy documents, legal advice, or comprehensive training. Users should consult their supervisors, legal advisors, or official sources for the most accurate and up-to-date policy guidance. Changes to policies may not be reflected immediately, and it is the Customer's responsibility to ensure data integrity by uploading the most current documents and removing outdated versions. 8. Draft One. Specifically for Customers who utilize Draft One, Axon may impose usage restrictions if a single user generates more than three hundred (300) reports per month for two or more consecutive months. 9. Brief One. Brief One includes automatic summarization of all products that can be transcribed. If Customer subscribes to Brief One, Customer may utilize Brief One with no limit on the number of pieces of evidence or cases. Notwithstanding the foregoing, Axon may limit evidence and case summaries for cases with over one thousand (1000) pieces of evidence or after three hundred (300) cases per End User per month for two (2) consecutive months in a row. 10. Auto-Transcribe. This section outlines licensing terms for Customer’s subscription of Auto-Transcribe: 10.1. A-La-Carte Minutes. Upon Axon granting Customer a set number of minutes, Customer may utilize Axon Auto-Transcribe, subject to the number of minutes allowed on the Quote. Customers cannot roll over unused minutes to future Auto-Transcribe terms. Axon may charge Customer additional fees for exceeding the number of purchased minutes. Axon Auto-Transcribe minutes expire one year after being provisioned to Customer by Axon. 10.2. Axon Unlimited Transcribe. Upon Axon granting Customer an Unlimited Transcribe subscription to Axon Auto-Transcribe, Customer may utilize Axon Auto-Transcribe with no limit on the number of minutes. Unlimited Transcribe includes automatic transcription of all Axon BWC and Axon Capture footage. With regard to Axon Interview Room, Axon Fleet, Axon Community Request, or third-party transcription, transcription must be requested on demand. Notwithstanding the foregoing, Axon may limit usage after 5,000 minutes per user per month for multiple months in a row. Axon will not bill for overages. 11. Prepared Products. This section applies to a Customer’s AI Eras subscription for Prepared products: 11.1. Deploying Assistive Dispatch may require Axon to procure additional third party-licensing. Axon reserves the right to pass through these third-party costs to the Customer. Assistive Dispatch may also require Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 14 of 44 additional third-party hardware or services to be purchased by the Customer directly from the third-party vendor. AI Era pricing does not include these third-party hardware or services costs. 11.2. Assistive Dispatch is available for Customers using supported CAD and radio console configurations. A technical assessment will determine eligibility. Customers with analog radio consoles or unsupported digital console configurations are not eligible for Assistive Dispatch but may use other Prepared products included in AI Era (ACT, AQA, ANET). Axon will conduct eligibility assessment only when explicitly requested by customer. 11.3. PSAP eligibility for Prepared products under the AI Era Plan requires that AI Era licenses purchased to represent at least one-third (33%) of the total sworn officer count associated with the PSAP. For PSAPs serving multiple agencies, eligibility is calculated based on the aggregate AI Era licenses purchased by all participating agencies relative to the combined sworn officer count served by that PSAP. Axon retains sole discretion to determine PSAP eligibility, and may consider additional factors including call volume, deployment feasibility, and PSAP configuration in making its determination. If customer is interested in Prepared products as part of the purchase of AI Era Plan, Customer to assist Axon in making all eligibility determinations within 90 days of the date of quote signature. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 15 of 44 Axon Customer Experience Improvement Program Appendix The ACEIP is designed to accelerate Axon’s development of technology, such as building and supporting automated features, aiming to increase safety within communities and efficiency in public safety. Axon may make limited use of Customer Content from participating customers to provide, develop, improve, and support current and future Axon products (collectively, “ACEIP Purposes”). ACEIP has 2 modes of participation, Basic and Custom. Customer is enrolled in ACEIP Basic by default. If Customer does not want to participate in ACEIP Basic, ACEIP Custom, or both, Customer can revoke its consent at any time via email to aceip@axon.com. Axon Obligations ACEIP Basic When Axon uses Customer Content for ACEIP Purposes, Axon will:  Use Customer Content only for ACEIP Purposes.  Prohibit direct human access to Customer Content, including by Axon personnel and subprocessors, except as needed to perform or validate deletion.  Retain Customer Content only as long as needed to create Transformed Content (defined below) and validate the transformations.  Apply privacy-preserving transformations that remove identifying information appropriate to the use case (“Transformed Content”). AI model weights and similar insights that do not contain Customer Content are Transformed Content. Transformed Content is not Customer Content.  Retain and permit direct human access to Transformed Content for ACEIP Purposes.  Maintain security, privacy, and data governance programs as described in the Axon Cloud Services Terms Appendix, and apply them to ACEIP. Transparency Portal Publication Before activating a use case, Axon will publish it on the Axon Transparency Portal, including the product development purpose, data types involved, and privacy-preserving techniques used. Axon will also notify ACEIP participants when the Transparency Portal is updated with a new or materially changed use case. Fifteen (15) calendar days after notification, Axon may activate the use case for all Basic participants. Opt Out Customer may opt out of ACEIP Basic at any time via aceip@axon.com. Axon endeavors to implement opt outs within fifteen (15) calendar days. Transformations of Customer Content cease when Axon implements the opt out. Axon may retain Transformed Content created before it implemented the opt out request. ACEIP Custom Custom use cases may be governed by separate written terms between Axon and Customer. Those terms will control that use case. Please direct inquiries regarding Custom participation to aceip@axon.com. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 16 of 44 Professional Services Appendix If any of the Professional Services specified below are included on the Quote, this Appendix applies. 1. Utilization of Services. Customer must use professional services as outlined in the Quote and this Appendix within six (6) months of the Effective Date. 2. Axon Full Service (Axon Full Service). Axon Full Service includes advance remote project planning and configuration support and up to four (4) consecutive days of on-site service and a professional services manager to work with Customer to assess Customer’s deployment and determine which on-site services are appropriate. If Customer requires more than four (4) consecutive on-site days, Customer must purchase additional days. Axon Full- Service options include: System set up and configuration  Instructor-led setup of Axon View on smartphones (if applicable)  Configure categories and custom roles based on Customer need  Register cameras to Customer domain  Troubleshoot IT issues with Axon Evidence and Axon Dock ("Dock") access  One on-site session included Dock configuration  Work with Customer to decide the ideal location of Docks and set configurations on Dock  Authenticate Dock with Axon Evidence using admin credentials from Customer  On-site assistance, not to include physical mounting of docks Best practice implementation planning session  Provide considerations for the establishment of video policy and system operations best practices based on Axon’s observations with other customers  Discuss the importance of entering metadata in the field for organization purposes and other best practices for digital data management  Provide referrals of other customers using the Axon camera devices and Axon Evidence  Recommend rollout plan based on review of shift schedules System Admin and troubleshooting training sessions Step-by-step explanation and assistance for Customer’s configuration of security, roles & permissions, categories & retention, and other specific settings for Axon Evidence. Axon instructor training (Train the Trainer) Training for Customer’s in-house instructors who can support Customer’s Axon camera and Axon Evidence training needs after Axon has fulfilled its contractual on-site obligations. Evidence sharing training Tailored workflow instruction for Investigative Units on sharing cases and evidence with local prosecuting agencies. Users go-live training and support sessions  Assistance with device set up and configuration  Training on device use, Axon Evidence, and Evidence Sync Implementation document packet Axon Evidence administrator guides, camera implementation guides, network setup guide, sample policies, and categories & roles guide. Post go-live review 3. Body-Worn Camera Starter Service (Axon Starter). Axon Starter includes advance remote project planning and configuration support and one (1) day of on-site Services and a professional services manager to work closely with Customer to assess Customer’s deployment and determine which Services are appropriate. If Customer requires more than one (1) day of on-site Services, Customer must purchase additional on-site Services. The Axon Starter options include: System set up and configuration (Remote Support)  Instructor-led setup of Axon View on smartphones (if applicable)  Configure categories & custom roles based on Customer need Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 17 of 44  Troubleshoot IT issues with Axon Evidence and Dock access Dock configuration  Work with Customer to decide the ideal location of Dock setup and set configurations on Dock  Authenticate Dock with Axon Evidence using "Administrator" credentials from Customer  Does not include physical mounting of docks Axon instructor training (Train the Trainer) Training for Customer’s in-house instructors who can support Customer’s Axon camera and Axon Evidence training needs after Axon’s has fulfilled its contracted on-site obligations User go-live training and support sessions  Assistance with device set up and configuration  Training on device use, Axon Evidence, and Evidence Sync Implementation document packet Axon Evidence administrator guides, camera implementation guides, network setup guide, sample policies, and categories & roles guide 4. Body-Worn Camera Virtual 1-Day Service (Axon Virtual). Axon Virtual includes all items in the BWC Starter Service Package, except one (1) day of on-site services. 5. CEW Services Packages. CEW Services Packages are detailed below: System set up and configuration  Configure Axon Evidence categories & custom roles based on Customer need.  Troubleshoot IT issues with Axon Evidence.  Register users and assign roles in Axon Evidence.  For the CEW Full-Service Package: On-site assistance included  For the CEW Starter Package: Virtual assistance included Dedicated Project Manager Assignment of specific Axon representative for all aspects of planning the rollout (Project Manager). Ideally, Project Manager will be assigned to Customer 4–6 weeks before rollout. Best practice implementation planning session to include:  Provide considerations for the establishment of CEW policy and system operations best practices based on Axon’s observations with other customers.  Discuss the importance of entering metadata and best practices for digital data management.  Provide referrals to other customers using TASER CEWs and Axon Evidence.  For the CEW Full-Service Package: On-site assistance included.  For the CEW Starter Package: Virtual assistance included. System Admin and troubleshooting training sessions On-site sessions providing a step-by-step explanation and assistance for Customer’s configuration of security, roles & permissions, categories & retention, and other specific settings for Axon Evidence. Axon Evidence Instructor T raining  Provide training on the Axon Evidence to educate instructors who can support Customer’s subsequent Axon Evidence training needs.  For the CEW Full-Service Package: Training for up to 3 individuals at Customer’s facility  For the CEW Starter Package: Training for up to 1 individual virtually TASER CEW inspection and device assignment Axon’s on-site professional services team will perform functions check on all new TASER CEW Smart weapons and assign them to a user on Axon Evidence. Post go-live review For the CEW Full-Service Package: On-site assistance included. For the CEW Starter Package: Virtual assistance included. 6. Smart Weapon Transition Service. The Smart Weapon Transition Service includes: Archival of CEW Firing Logs Axon’s on-site professional services team will upload CEW firing logs to Axon Evidence from all TASER CEW Smart Weapons that Customer is replacing with newer Smart Weapon models. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 18 of 44 Return of Old Weapons Axon’s on-site professional service team will ship all old weapons back to Axon’s headquarters. Axon will provide Customer with a Certificate of Destruction. *Note: CEW Full-Service packages for TASER 7 or TASER 10 include Smart Weapon Transition Service instead of 1-Day Device Specific Instructor Course. 7. VR Services Package. VR Service includes advance remote project planning and configuration support and one (1) day of on-site service and a professional services manager to work with Customer to assess Customer's deployment and determine which Services are appropriate. The VR Service training options include: System set up and configuration (Remote Support) • Instructor-led setup of Axon VR headset content • Configure Customer settings based on Customer need • Troubleshoot IT issues with Axon VR headset Axon instructor training (Train the Trainer) Training for up to five (5) Customer in-house instructors who can support Customer's Axon VR CET and SIM training needs after Axon has fulfilled its contracted on-site obligations. Classroom and practical training sessions Step-by-step explanation and assistance for Customer's configuration of Axon VR CET and SIM functionality, basic operation, and best practices. 8. Axon Air, On-Site Training. Axon Air, On-Site training includes advance remote project planning and configuration support and one (1) day of on-site Services and a professional services manager to work closely with Customer to assess Customer's deployment and determine which Services are appropriate. If Customer requires more than one (1) day of on-site Services, Customer must purchase additional on-site Services. The Axon Air, On-Site training options include: System set up and configuration (Remote Support) • Instructor-led setup of Axon Air App (ASDS) • Configure Customer settings based on Customer need • Configure drone controller • Troubleshoot IT issues with Axon Evidence Axon instructor training (Train the Trainer) Training for Customer's in-house instructors who can support Customer's Axon Air and Axon Evidence training needs after Axon’s has fulfilled its contracted on-site obligations Classroom and practical training sessions Step-by-step explanation and assistance for Customer's configuration of Axon Respond+ livestreaming functionality, basic operation, and best practices 9. Axon Air, Virtual Training. Axon Air, Virtual training includes all items in the Axon Air, On-Site Training Package, except the practical training session, with the Axon Instructor training for up to four hours virtually. 10. Signal Sidearm Installation Service. a. Purchases of 50 SSA units or more: Axon will provide one (1) day of on-site service and one professional services manager and will provide train the trainer instruction, with direct assistance on the first of each unique holster/mounting type. Customer is responsible for providing a suitable work/training area. b. Purchases of less than 50 SSA units: Axon will provide a 1-hour virtual instruction session on the basics of installation and device calibration. 11. Axon Justice Implementation. Axon Justice Implementation includes advanced remote project planning, configuration support, and training. Axon Justice Implementation includes : System set up and configuration  Axon performs discovery to understand and document the Agency’s needs.  Axon collaborates with the Client to configure workflows, permissions, and privileges within Axon Evidence based on the Client’s needs.  Axon will facilitate a workflow discussion with the core admin team. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 19 of 44 Disclosures  Axon enables the Client to share digital evidence to the defense through the following methods as determined by Client and Axon: 1. Public Defender Case Sharing 2. Disclosure Portal 3. Download Links Training  Agency Trainers. Axon works with the Agency to identify the Agency trainers receiving instruction on the product. Axon provides a training guide that outlines the covered topics, intended audience, facility needs, and duration of the training. Axon will schedule a cadence of remote training sessions as needed, which are not to exceed three (3) 2-hour training sessions for Agency staff. Each session can accommodate up to 20 users and will train them in full system functionality. Training sessions provided by Axon are conducted on consecutive weekdays (Tuesday-Thursday) during normal business hours (9am-6pm with an hour break in between sessions). After the initial training, is responsible for any future training. Axon provides all training materials for successful training.  Partner Agencies: Axon will provide Train the Trainer training to the Agency so that it is equipped to train and support their partner agencies. Ensuring the partner agencies are trained to follow the ingestion method is the Agency’s responsibility. Go-Live Plan  Axon works in partnership with the Agency to build, coordinate, and execute a Go-Live plan to ensure successful system acceptance. Axon coordinates the Go-Live event. Implementation document packet  Axon Evidence administrator guides, camera implementation guides, network setup guide, sample policies, and categories & roles guide Post go-live review 12. Out of Scope Services. Axon is only responsible to perform the professional services described in the Quote, this Appendix, and any applicable SOW. Any additional professional services are out of scope. The Parties must document scope changes in a written and signed change order. Changes may require an equitable adjustment in the charges or schedule. 13. Delivery of Services. Axon personnel will work Monday through Friday, 8:30 a.m. to 5:30 p.m., except holidays. Axon will perform all on-site tasks over a consecutive timeframe. Axon will not charge Customer travel time by Axon personnel to Customer premises as work hours. 14. Access Computer Systems to Perform Services. Customer authorizes Axon to access relevant Customer computers and networks, solely for performing the Services. Axon will work to identify as soon as reasonably practicable resources and information Axon expects to use and will provide an initial itemized list to Customer. Customer is responsible for and assumes the risk of any problems, delays, losses, claims, or expenses resulting from the content, accuracy, completeness, and consistency of all data, materials, and information supplied by Customer. 15. Site Preparation. Axon will provide a hardcopy or digital copy of current user documentation for the Axon Devices ("User Documentation"). User Documentation will include all required environmental specifications for the professional services and Axon Devices to operate per the Axon Device User Documentation. Before installation of Axon Devices (whether performed by Customer or Axon), Customer must prepare the location(s) where Axon Devices are to be installed ("Installation Site") per the environmental specifications in the Axon Device User Documentation. Following installation, Customer must maintain the Installation Site per the environmental specifications. If Axon modifies Axon Device User Documentation for any Axon Devices under this Agreement, Axon will provide the update to Customer when Axon generally releases it. Additional Trainings. If the Customer purchases a training voucher, Customer must use the voucher within one (1) year of issuance, or the voucher will be void. The voucher has no cash value. Customer cannot exchange it for another device or service. Unless stated in the Quote, the voucher does not include travel expenses and will be Customer responsibility. 16. Acceptance. When Axon completes professional services, Axon will present an acceptance form ("Acceptance Form") to Customer. Customer will sign the Acceptance Form acknowledging completion. If Customer reasonably believes Axon did not complete the professional services in substantial conformance with this Agreement, Customer Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 20 of 44 must notify Axon in writing of the specific reasons for rejection within seven (7) calendar days from delivery of the Acceptance Form. Axon will address the issues and re-present the Acceptance Form for signature. If Axon does not receive the signed Acceptance Form or written notification of reasons for rejection within seven (7) calendar days of delivery of the Acceptance Form, the professional services will be deemed accepted by Customer. 17. Customer Network. For work performed by Axon transiting or making use of Customer’s network, Customer is solely responsible for maintenance and functionality of the network. In no event will Axon be liable for loss, damage, or corruption of Customer’s network from any cause. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 21 of 44 Technology Assurance Plan Appendix If Technology Assurance Plan ("TAP") or a combined offering including TAP is on the Quote, this appendix applies. 1. Officer Safety Plan. If Customer purchases an Officer Safety Plan ("OSP"), Customer will receive the deliverables detailed in the Quote. Customer must accept delivery of the TASER CEW and accessories as soon as available from Axon. 2. OSP 7 or OSP 10 Term. OSP 7 or OSP 10 begins on the date specified in the Quote ("OSP Term"). 3. TAP Refresh. If Customer has no outstanding payment obligations and purchased TAP, Axon will provide Customer a new Axon Device ("Device Refresh") as scheduled in the Quote. If Customer purchased TAP, Axon will provide a Device Refresh that is the same or like Axon Device, at Axon’s option. Axon makes no guarantee the Device Refresh will utilize the same accessories or Axon Dock. 4. Dedrone Refresh. Under the Dedrone Refresh Program (“Program”), you will receive replacement hardware for each covered product purchased under the Program. The replacement hardware will be the same model as, or a comparable model to, the original. The Program does not require Axon to provide next-generation or upgraded versions. You are not required to return the original hardware upon receipt of the replacement. 5. TAP Dock Refresh. If Customer has no outstanding payment obligations and purchased TAP, Axon will provide Customer a new Axon Dock, if required for an Axon Device, as scheduled in the Quote ("Dock Refresh"). Accessories associated with any Dock Refreshes are subject to change at Axon discretion. Dock Refreshes will only include a new Axon Dock Bay configuration unless a new Axon Dock core is required for Axon Device compatibility. If Customer originally purchased a single-bay Axon Dock, the Dock Refresh will be a single-bay Axon Dock model that is the same or like Axon Device, at Axon’s option. If Customer originally purchased a multi-bay Axon Dock, the Dock Refresh will be a multi-bay Axon Dock that is the same or like Axon Device, at Axon’s option. 6. Refresh Delay. Axon may ship the Axon Device and Dock Refreshes as scheduled in the Quote without prior confirmation from Customer unless the Parties agree in writing otherwise at least ninety (90) days in advance. Axon may ship the final Axon Device and Dock Refreshes as scheduled in the Quote sixty (60) days before the end of the Subscription Term without prior confirmation from Customer. 7. Upgrade Change. If Customer wants to upgrade Axon Device models from the current Axon Device to an upgraded Axon Device, Customer must pay the price difference between the MSRP for the current Axon Device and the MSRP for the upgraded Axon Device. If the model Customer desires has an MSRP less than the MSRP of the offered Axon Device Refreshes or Dock Refresh, Axon will not provide a refund. The MSRP is the MSRP in effect at the time of the upgrade. For Dedrone devices Axon does not guarantee that next-gen products will be available at the time of refresh. 8. Return of Original Axon Device. Except for any Dedrone devices, within thirty (30) days of receiving a Deviceor Dock Refresh, Customer must return the original Axon Devices to Axon or destroy the Axon Devices and provide a certificate of destruction to Axon including serial numbers for the destroyed Axon Devices. If Customer does not return or destroy the Axon Devices, Axon will deactivate the serial numbers for the Axon Devices received by Customer. For Dedrone hardware, the Customer has no obligation to return or destroy the hardware under the TAP program. 9. Termination. If TAP or OSP terminates or expires: 9.1. TAP and OSP coverage terminate as of the date of termination and no refunds will be given. 9.2. Axon will not and has no obligation to provide the Upgrade Models. 9.3 Customer must make any missed payments due to the termination before Customer may purchase any future TAP or OSP. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 22 of 44 TASER Device Appendix This TASER Device Appendix applies to Customer’s TASER 7, TASER 10, OSP 7, OSP 10, OSP Plus, OSP 7 Plus Premium OSP 10 Plus Premium and the TASER component of any TASER mounted drones purchased from Axon, if applicable. 1. Duty Cartridge Replenishment Plan. If the Quote includes "Duty Cartridge Replenishment Plan", Customer must purchase the plan for each CEW user. A CEW user includes officers that use a CEW in the line of duty and those that only use a CEW for training. Customer may not resell cartridges received. Axon will only replace cartridges used in the line of duty. 2. Training. If the Quote includes a TASER On Demand Certification subscription, Customer will have on-demand access to TASER Instructor and TASER Master Instructor courses only for the duration of the TASER Subscription Term. Axon will issue a maximum of ten (10) TASER Instructor vouchers and ten (10) TASER Master Instructor vouchers for every one thousand TASER Subscriptions purchased. Customer shall utilize vouchers to register for TASER courses at their discretion; however, Customer may incur a fee for cancellations less than 10 business days prior to a course date or failure to appear to a registered course. The voucher has no cash value. Customer cannot exchange voucher for any other Device or Service. Any unused vouchers at the end of the Term will be forfeited. A voucher does not include any travel or other expenses that might be incurred related to attending a course. 3. Limited Warranty. 3.1. “Deployment” means use of the TASER weapon resulting in the discharge of the conducted energy weapon (“CEW”) cartridge probe. For TASER 10 each probe discharged is consider one Deployment and for TASER 7 the dual probe discharged is considered one Deployment. 3.2. Single User Warranty. If the TASER Device is assigned and used by a single user, Axon warrants that Axon- manufactured TASER Device is free from defects in workmanship and materials for the earlier of: one (1) year from the date of Customer’s receipt or 100. 3.3. Pooled User Warranty. If the TASER Device is assigned and used by multiple users, Axon warrants that Axon- manufactured TASER Device is free from defects in workmanship and materials for the earlier of: one (1) year from the date of Customer’s receipt or, 100 Deployments. 3.4. Training User Devices. If the TASER Device is used for training, Axon warrants that Axon-manufactured TASER Device is free from defects in workmanship and materials for the earlier of: one (1) year from the date of Customer’s receipt or 100 Deployments. 3.5. TASER 10L Devices. If the TASER Device is a TASER 10L (TASER 10 Light) as defined in the Quote, Axon warrants that the TASER Device is free from defects in workmanship and materials for the earlier of one (1) year from the date of Customer’s receipt or 100 Deployments. 3.6. CEW Cartridges. Used CEW cartridges are deemed to have operated properly. 3.7. Remaining Terms. The remaining Warranty terms of the Agreement including Disclaimer, Claims, Spare Axon Devices and Limitations shall apply to this TASER Device Appendix. 3.8. Registration. Prior to use of the TASER Device, Customer must register each TASER Device in TASER Device Axon Evidence tenancy as a single user, pooled or training device. Failure to properly register the TASER Device prior to its use may void the warranty at Axon’s sole discretion. 4. Extended Warranty. If the Quote includes an extended warranty, the extended warranty coverage period begins upon the expiration of the Limited Warranty and continues for the period defined in the Quote. Each additional year of warranty purchased will be in accordance with the applicable Limited Warranty category above. The maximum warranty period that may be purchased for an individual TASER Device will be the earlier of five (5) years or 500 Deployments, this includes the Limited Warranty. Limited Warranty. Reduced Life TASER 10L device has a maximum warranty that may be purchased will be the earlier of two (2) years or 200 including the Limited Warranty. 5. Upgrade Change. If Customer wants to upgrade TASER Device from the current TASER Device to an upgraded Axon TASER Device that was not available at the time the parties entered into the original Quote, Customer must pay the price difference between the MSRP for the current TASER Device and the MSRP for the upgraded TASER Device. If the model Customer desires has an MSRP less than the MSRP of the offered new TASER Device, Axon will not provide a refund. The MSRP is the MSRP in effect at the time of the upgrade. 6. Trade-in. If the Quote contains a discount on CEW-related line items and that discount is contingent upon the trade- Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 23 of 44 in of hardware, Customer must return used hardware and accessories associated with the discount ("Trade-In Units") to Axon within the below prescribed timeline. Customer must ship batteries via ground shipping. Axon will provide Customer with a pre-paid shipping label for the return of the Trade-In Units. If Axon does not receive Trade-In Units within the timeframe below, Axon will invoice Customer the value of the trade-in credit. Customer may not destroy Trade-In Units and receive a trade-in credit. Customer Size Days to Return from Start Date of TASER 10 Subscription Less than 100 officers 60 days 100 to 499 officers 90 days 500+ officers 180 days 7. Customer Warranty. If Customer is located in the US, Customer warrants and acknowledges that TASER 10 is classified as a firearm and is being acquired for official Customer use pursuant to a law enforcement agency transfer under the Gun Control Act of 1968. 8. Purchase Order. To comply with applicable laws and regulations, Customer must provide a purchase order to Axon prior to shipment of TASER 10. 9. Apollo Grant (US only). If Customer has received an Apollo Grant from Axon, Customer must pay all fees in the Quote prior to upgrading to any new TASER Device offered by Axon. 10. Termination. If payment for TASER Device is more than thirty (30) days past due, Axon may terminate Customer’s TASER Device plan by notifying Customer. Upon termination for any reason, then as of the date of termination: 10.1. TASER Device extended warranties and access to Training Content will terminate. No refunds will be given. 10.2. Customer will be responsible for payment of any missed payments due to the termination before being allowed to purchase any future TASER Device plan. 10.3. Axon will invoice Customer the remaining MSRP for TASER Devices received before termination. If terminating for non-appropriation, Axon will not invoice Customer if Customer returns the TASER Device, rechargeable battery, holster, dock, core, training suits, and unused cartridges to Axon within thirty (30) days of the date of termination. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 24 of 44 Axon Auto-Tagging Appendix If Auto-Tagging is included on the Quote, this Appendix applies. 1. Scope. Axon Auto-Tagging consists of the development of a module to allow Axon Evidence to interact with Customer’s Computer-Aided Dispatch ("CAD") or Records Management Systems ("RMS"). This allows End Users to auto-populate Axon video meta-data with a case ID, category, and location-based on data maintained in Customer’s CAD or RMS. 2. Support. For thirty (30) days after completing Auto-Tagging Services, Axon will provide up to five (5) hours of remote support at no additional charge. Axon will provide free support due to a change in Axon Evidence , if Customer maintains an Axon Evidence and Auto-Tagging subscription. Axon will not provide support if a change is required because Customer changes its CAD or RMS. 3. Changes. Axon is only responsible to perform the Services in this Appendix for Auto-Tagging and any applicable SOW. Any additional Services are out of scope. The Parties must document scope changes in a written and signed change order. Changes may require an equitable adjustment in fees or schedule. 4. Customer Responsibilities. Axon’s performance of Auto-Tagging Services requires Customer to: 4.1. Make available relevant systems, including Customer’s current CAD or RMS, for assessment by Axon (including remote access if possible); 4.2. Make required modifications, upgrades or alterations to Customer’s hardware, facilities, systems and networks related to Axon’s performance of Auto-Tagging Services; 4.3. Provide access to the premises where Axon is performing Auto-Tagging Services, subject to Customer safety and security restrictions, and allow Axon to enter and exit the premises with laptops and materials needed to perform Auto-Tagging Services; 4.4. Provide all infrastructure and software information (TCP/IP addresses, node names, network configuration) necessary for Axon to provide Auto-Tagging Services; 4.5. Promptly install and implement any software updates provided by Axon; 4.6. Ensure that all appropriate data backups are performed; 4.7. Provide assistance, participation, and approvals in testing Auto-Tagging Services; 4.8. Provide Axon with remote access to Customer’s Axon Evidence account when required; 4.9. Notify Axon of any network or machine maintenance that may impact the performance of the module at Customer; and 4.10. Ensure reasonable availability of knowledgeable staff and personnel to provide timely, accurate, complete, and up-to-date documentation and information to Axon. 5. Access to Systems. Customer authorizes Axon to access Customer’s relevant computers, network systems, and CAD or RMS solely for performing Auto-Tagging Services. Axon will work diligently to identify the resources and information Axon expects to use and will provide an initial list to Customer. Customer is responsible for and assumes the risk of any problems, delays, losses, claims, or expenses resulting from the content, accuracy, completeness, and consistency of all data, materials, and information supplied by Customer. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 25 of 44 Axon ALPR Appendix If Axon Fleet 2, Axon Fleet 3, or any future generation of Axon Fleet (collectively, “Axon Fleet”) or Axon Outpost or Axon Lightpost (collectively all “ALPR Products”) is included on the Quote, this Appendix applies. 1. Customer Responsibilities. 1.1. Customer must ensure its infrastructure and vehicles adhere to the minimum requirements to operate Axon ALPR Products as established by Axon during the qualifier call and on-site assessment at Customer and in any technical qualifying questions. If Customer’s representations are inaccurate, the Quote is subject to change. 1.2. Customer is responsible for providing a suitable work area for Axon or Axon third-party providers to install Axon ALPR Products into Customer vehicles and/or at designated installation location(s).s Customer is responsible for making available all vehicles for which installation services were purchased and preparing all installation sites, during the agreed upon onsite installation dates, Failure to make vehicles available or prepare installation sites may require an equitable adjustment in fees or schedule 2. Third-party Installer. Axon will not be liable for the failure of Axon Fleet, Axon Outpost, or Axon Lightpost hardware to operate per specifications if such failure results from installation not performed by, or as directed by Axon. 3. Axon Fleet Specific Terms. 3.1. Cradlepoint. If Customer purchases Cradlepoint hardware, software, or services, Customer will comply with Cradlepoint’s end user license agreement. The term of the Cradlepoint license may differ from the Axon Evidence Subscription. If Customer requires Cradlepoint support, Customer will contact Cradlepoint directly. By accepting a Quote including Cradlepoint products, Customer designates and authorizes Axon as its partner of record for purposes of Cradlepoint product renewals, support coordination, and other relevant functions. This designation applies to all Cradlepoint products acquired by Customer during the Subscription Term of the applicable Quote whether directly from Cradlepoint, through Axon, or through any third-party vendor or distributor. Axon shall have no liability to Customer or any third party arising out of or relating to Axon’s acts or omissions as the Partner of Record. Customer has the right to opt out of this authorization at any time by providing prior written notification to both Axon and Cradlepoint. Upon such notification, the designation will be removed. This authorization remains effective until formally removed in accordance with this section or as otherwise agreed between the parties in the Agreement. 3.2. Axon Vehicle Software License. Axon grants Customer a non-exclusive, royalty-free, worldwide, perpetual license to use ViewXL or Dashboard (collectively, "Axon Vehicle Software".) "Use" means storing, loading, installing, or executing Axon Vehicle Software solely for data communication with Axon Devices. The Axon Vehicle Software term begins upon the start of the Axon Evidence Subscription 3.3. Restrictions. Customer may not: (a) modify, alter, tamper with, repair, or create derivative works of Axon Vehicle Software; (b) reverse engineer, disassemble, or decompile Axon Vehicle Software, apply any process to derive the source code of Axon Vehicle Software, or allow others to do so; (c) access or use Axon Vehicle Software to avoid incurring fees or exceeding usage limits; (d) copy Axon Vehicle Software in whole or part; (e) use trade secret information contained in Axon Vehicle Software; (f) resell, rent, loan or sublicense Axon Vehicle Software; (g) access Axon Vehicle Software to build a competitive device or service or copy any features, functions or graphics of Axon Vehicle Software; or (h) remove, alter or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon or Axon’s licensors on or within Axon Vehicle Software. 12. Axon Outpost Specific Terms. 3.4. Outpost License and Permits. Customers will obtain, maintain all legally required permits, authorizations, and/or licensing in order to place, maintain, and/or remove the Axon Outpost device at the installation location including licenses or permits for fixed installation of poles. If mutually agreed by the parties, Axon or an Axon authorized subcontractor may assist with obtaining the necessary local, state, or Federal approvals before installing Axon Outpost. 13. Installation. Customer will adhere to the installation requirements as agreed in the Outpost SOW. 14. Vandalism or Motor Vehicle Accident Warranty. If Customer purchases the Vandalism and Accident warranty, Axon will provide up to two (2) replacements per warranty purchased if your Outpost is damaged due to vandalism or a motor vehicle accident. Axon will make a commercially reasonable effort to provide new installation free of Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 26 of 44 charge, but installation may require additional cost. Axon does not provide refunds or credits if the warranty is not used during the Term of the Quote. 15. Axon Lightpost Specific Terms. 3.5. Ubicquia. If Customer purchases Lightpost hardware and installation services, any warranties for the hardware are provided exclusively by the third-party manufacturer Ubicquia. All hardware-related support or warranty claims must be directed to the respective third-party provider. Axon is not responsible for servicing or replacing hardware. Axon will provide and support software components in accordance with the applicable Quote. 3.6. Installation. Installation of Axon Lightpost equipment will be performed by a third-party service provider authorized by Axon. Axon does not directly perform installation services. 3.7. Power. Customer agrees to supply a power source, in compliance with Lightpost requirements, at each site where a Lightpost device is installed. The power must be available on a 24-hour, 7 days per week (24/7) basis. 16. Wireless Offload Server 7.1 License Grant. Axon grants Customer a non-exclusive, royalty-free, worldwide, perpetual license to use Wireless Offload Server ("WOS"). "Use" means storing, loading, installing, or executing WOS solely for data communication with Axon Devices for the number of licenses purchased. The WOS term begins upon the start of the Axon Evidence Subscription. 7.2 Restrictions. Customer may not: (a) modify, alter, tamper with, repair, or create derivative works of WOS; (b) reverse engineer, disassemble, or decompile WOS, apply any process to derive the source code of WOS, or allow others to do so; (c) access or use WOS to avoid incurring fees or exceeding usage limits; (d) copy WOS in whole or part; (e) use trade secret information contained in WOS; (f) resell, rent, loan or sublicense WOS; (g) access WOS to build a competitive device or service or copy any features, functions or graphics of WOS; or (h) remove, alter or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon or Axon’s licensors on or within WOS. 7.3 Updates. If Customer purchases WOS maintenance, Axon will make updates and error corrections to WOS ("WOS Updates") available electronically via the Internet or media as determined by Axon. Customer is responsible for establishing and maintaining adequate Internet access to receive WOS Updates and maintaining computer equipment necessary for use of WOS. The Quote will detail the maintenance term. 7.4 WOS Support. Upon request by Axon, Customer will provide Axon with access to Customer’s store and forward servers solely for troubleshooting and maintenance. 17. Acceptance Checklist. If Axon provides Services to Customer pursuant to any statement of work in connection with Axon ALPR Products, within seven (7) days of the date on which Customer retrieves Customer's vehicle(s) from the Axon installer or Axon Outpost or Axon Lightpost installation is complete, said ALPR Products having been installed and configured with tested and fully and properly operational hardware and software identified above, Customer will receive a Professional Services Acceptance Checklist to submit to Axon indicating acceptance or denial of said deliverables. In the event Customer does not respond to the Professional Services Acceptance Checklist within seven (7) business days, the installation of the ALPR Products and services shall be deemed accepted. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 27 of 44 Axon Respond Appendix This Axon Respond Appendix applies to Axon Respond, Axon Respond Device Plus, and Device Connectivity if any are included on the Quote. 1. Axon Respond Subscription Term. If Customer purchases Axon Respond as part of a combined offering on a Quote, the Axon Respond subscription begins on the later of the (1) start date of that offering within the Quote, or (2) date Axon provisions Axon Respond to Customer. If Customer purchases Axon Respond as a standalone, the Axon Respond subscription begins the later of the (1) date Axon provisions Axon Respond to Customer, or (2) first day of the month following the Effective Date. The Axon Respond subscription term will end upon the completion of the Axon Evidence Subscription associated with Axon Respond. 2. Scope of Axon Respond. The scope of Axon Respond is to assist Customer with real-time situational awareness during critical incidents to improve officer safety, effectiveness, and awareness. In the event Customer uses Axon Respond outside this scope, Axon may initiate good-faith discussions with Customer on upgrading Customer’s Axon Respond to better meet Customer’s needs. 3. Axon Body LTE Requirements. Axon Respond is only available and usable with an LTE enabled body-worn camera. Axon is not liable if Customer utilizes the LTE device outside of the coverage area or if the LTE carrier is unavailable. LTE coverage is available in the United States including U.S. territories, Additional verification will be required for use in select international regions. Axon may utilize a carrier of Axon’s choice to provide LTE service. Axon may change LTE carriers during the Term without Customer’s consent. 4. Axon Fleet LTE Requirements. Axon Respond is only available and usable with a Fleet 3 system configured with LTE modem and service. Customer is responsible for providing LTE service for the modem. Coverage and availability of LTE service is subject to Customer’s LTE carrier. 5. Axon Respond Service Limitations. Customer acknowledges that LTE service is made available only within the operating range of the networks. Service may be temporarily refused, interrupted, or limited because of: (a) facilities limitations; (b) transmission limitations caused by atmospheric, terrain, other natural or artificial conditions adversely affecting transmission, weak batteries, system overcapacity, movement outside a service area or gaps in coverage in a service area, and other causes reasonably outside of the carrier’s control such as intentional or negligent acts of third parties that damage or impair the network or disrupt service; or (c) equipment modifications, upgrades, relocations, repairs, and other similar activities necessary for the proper or improved operation of service. 5.1. With regard to Axon Body, Partner networks are made available as-is and the carrier makes no warranties or representations as to the availability or quality of roaming service provided by carrier partners, and the carrier will not be liable in any capacity for any errors, outages, or failures of carrier partner networks. Customer expressly understands and agrees that it has no contractual relationship whatsoever with the underlying wireless service provider or its affiliates or contractors and Customer is not a third-party beneficiary of any agreement between Axon and the underlying carrier. 6. Termination. Upon termination of this Agreement, or if Customer stops paying for Axon Respond or combined offerings that include Axon Respond, Axon will end Axon Respond services, including any Axon-provided LTE service. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 28 of 44 Axon Virtual Reality Content Terms of Use Appendix If Virtual Reality is included on the Quote, this Appendix applies. 1. Term. The Quote will detail the products and license duration, as applicable, of the goods, services, and software, and contents thereof, provided by Axon to Customer related to virtual reality (collectively, "Virtual Reality Media"). 2. Headsets. Customer may purchase additional virtual reality headsets from Axon. In the event Customer decides to purchase additional virtual reality headsets for use with Virtual Reality Media, Customer must purchase those headsets from Axon. 3. License Restrictions. All licenses will immediately terminate if Customer does not comply with any term of this Agreement. If Customer utilizes more users than stated in this Agreement, Customer must purchase additional Virtual Reality Media licenses from Axon. Customer may not use Virtual Reality Media for any purpose other than as expressly permitted by this Agreement. Customer may not: 3.1. modify, tamper with, repair, or otherwise create derivative works of Virtual Reality Media; 3.2. reverse engineer, disassemble, or decompile Virtual Reality Media or apply any process to derive the source code of Virtual Reality Media, or allow others to do the same; 3.3. copy Virtual Reality Media in whole or part, except as expressly permitted in this Agreement; 3.4. use trade secret information contained in Virtual Reality Media; 3.5. resell, rent, loan or sublicense Virtual Reality Media; 3.6. access Virtual Reality Media to build a competitive device or service or copy any features, functions, or graphics of Virtual Reality Media; or 3.7. remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon or Axon’s licensors on or within Virtual Reality Media or any copies of Virtual Reality Media. 4. Privacy. Customer’s use of the Virtual Reality Media is subject to the Axon Virtual Reality Privacy Policy, a current version of which is available at https://www.axon.com/axonvrprivacypolicy. 5. Termination. Axon may terminate Customer’s license immediately for Customer’s failure to comply with any of the terms in this Agreement. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 29 of 44 Axon Evidence Local Software Appendix This Appendix applies if Axon Evidence Local is included in the Quote. 1. License. Axon owns all executable instructions, images, icons, sound, and text in Axon Evidence Local. All rights are reserved to Axon. Axon grants a non-exclusive, royalty-free, worldwide right and license to use Axon Evidence Local. "Use" means storing, loading, installing, or executing Axon Evidence Local exclusively for data communication with an Axon Device. Customer may use Axon Evidence Local in a networked environment on computers other than the computer it installs Axon Evidence Local on, so long as each execution of Axon Evidence Local is for data communication with an Axon Device. Customer may make copies of Axon Evidence Local for archival purposes only. Customer shall retain all copyright, trademark, and proprietary notices in Axon Evidence Local on all copies or adaptations. 2. Term. The Quote will detail the duration of the Axon Evidence Local license, as well as any maintenance. The term will begin upon installation of Axon Evidence Local. 3. License Restrictions. All licenses will immediately terminate if Customer does not comply with any term of this Agreement. Customer may not use Axon Evidence Local for any purpose other than as expressly permitted by this Agreement. Customer may not: 3.1. modify, tamper with, repair, or otherwise create derivative works of Axon Evidence Local; 3.2. reverse engineer, disassemble, or decompile Axon Evidence Local or apply any process to derive the source code of Axon Evidence Local, or allow others to do the same; 3.3. access or use Axon Evidence Local to avoid incurring fees or exceeding usage limits or quotas; 3.4. copy Axon Evidence Local in whole or part, except as expressly permitted in this Agreement; 3.5. use trade secret information contained in Axon Evidence Local; 3.6. resell, rent, loan or sublicense Axon Evidence Local; 3.7. access Axon Evidence Local to build a competitive device or service or copy any features, functions, or graphics of Axon Evidence Local; or 3.8. remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon or Axon’s licensors on or within Axon Evidence Local or any copies of Axon Evidence Local. 4. Support. Axon may make available updates and error corrections ("Updates") to Axon Evidence Local. Axon will provide Updates electronically via the Internet or media as determined by Axon. Customer is responsible for establishing and maintaining adequate access to the Internet to receive Updates. Customer is responsible for maintaining the computer equipment necessary to use Axon Evidence Local. Axon may provide technical support of a prior release/version of Axon Evidence Local for six (6) months from when Axon made the subsequent release/version available. 5. Termination. Axon may terminate Customer’s license immediately for Customer’s failure to comply with any of the terms in this Agreement. Upon termination, Axon may disable Customer’s right to login to Axon Evidence Local. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 30 of 44 Axon Application Programming Interface Appendix This Appendix applies if Axon’s API Services or a subscription to Axon Cloud Services are included on the Quote. 1. Definitions. 1.1. "API Client" means the software that acts as the interface between Customer’s computer and the server, which is already developed or to be developed by Customer. 1.2. "API Interface" means software implemented by Customer to configure Customer’s independent API Client Software to operate in conjunction with the API Service for Customer’s authorized Use. 1.3. "Axon Evidence Partner API, API or Axon API" (collectively "API Service") means Axon’s API which provides a programmatic means to access data in Customer’s Axon Evidence account or integrate Customer’s Axon Evidence account with other systems. 1.4. "Use" means any operation on Customer’s data enabled by the supported API functionality. 2. Purpose and License. 2.1. Customer may use API Service and data made available through API Service, in connection with an API Client developed by Customer. Axon may monitor Customer’s use of API Service to ensure quality, improve Axon devices and services, and verify compliance with this Agreement. Customer agrees to not interfere with such monitoring or obscure from Axon Customer’s use of API Service. Customer will not use API Service for commercial use. 2.2. Axon grants Customer a non-exclusive, non-transferable, non-sublicensable, worldwide, revocable right and license during the Term to use API Service, solely for Customer’s Use in connection with Customer’s API Client. 2.3. Axon reserves the right to set limitations on Customer’s use of the API Service, such as a quota on operations, to ensure stability and availability of Axon’s API. Axon will use reasonable efforts to accommodate use beyond the designated limits. 3. Configuration. Customer will work independently to configure Customer’s API Client with API Service for Customer’s applicable Use. Customer will be required to provide certain information (such as identification or contact details) as part of the registration. Registration information provided to Axon must be accurate. Customer will inform Axon promptly of any updates. Upon Customer’s registration, Axon will provide documentation outlining API Service information. 4. Customer Responsibilities. When using API Service, Customer and its End Users shall not: 4.1. use API Service in any way other than as expressly permitted under this Agreement; 4.2. use in any way that results in, or could result in, any security breach to Axon; 4.3. perform an action with the intent of introducing any virus, worm, defect, Trojan horse, malware, or any item of a destructive nature to Axon Devices and Services; 4.4. interfere with, modify, disrupt or disable features or functionality of API Service or the servers or net works providing API Service; 4.5. reverse engineer, decompile, disassemble, or translate or attempt to extract the source code from API Service or any related software; 4.6. create an API Interface that functions substantially the same as API Service and offer it for use by third parties; 4.7. provide use of API Service on a service bureau, rental or managed services basis or permit other individuals or entities to create links to API Service; 4.8. frame or mirror API Service on any other server, or wireless or Internet-based device; 4.9. make available to a third-party, any token, key, password or other login credentials to API Service; 4.10. take any action or inaction resulting in illegal, unauthorized or improper purposes ; or 4.11. disclose Axon’s API manual. 5. API Content. All content related to API Service, other than Customer Content or Customer’s API Client content, is considered Axon’s API Content, including: Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 31 of 44 5.1. the design, structure and naming of API Service fields in all responses and requests; 5.2. the resources available within API Service for which Customer takes actions on, such as evidence, cases, users, or reports; 5.3. the structure of and relationship of API Service resources; and 5.4. the design of API Service, in any part or as a whole. 6. Prohibitions on API Content. Neither Customer nor its End Users will use API content returned from the API Interface to: 6.1. scrape, build databases, or otherwise create permanent copies of such content, or keep cached copies longer than permitted by the cache header; 6.2. copy, translate, modify, create a derivative work of, sell, lease, lend, convey, distribute, publicly display, or sublicense to any third-party; 6.3. misrepresent the source or ownership; or 6.4. remove, alter, or obscure any confidentiality or proprietary rights not ices (including copyright and trademark notices). 7. API Updates. Axon may update or modify the API Service from time to time ("API Update"). Customer is required to implement and use the most current version of API Service and to make any applicable changes to Customer’s API Client required as a result of such API Update. API Updates may adversely affect how Customer’s API Client access or communicate with API Service or the API Interface. Each API Client must contain means for Customer to update API Client to the most current version of API Service. Axon will provide support for one (1) year following the release of an API Update for all depreciated API Service versions. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 32 of 44 Axon Channel Services Appendix This Appendix applies if Customer purchases Axon Channel Service, as set forth on the Quote. 1. Definitions. 1.1. "Axon Digital Evidence Management System" means Axon Evidence or Axon Evidence Local, as specified in the attached Channel Services Statement of Work. 1.2. "Active Channel" means a third-party system that is continuously communicating with an Axon Digital Evidence Management System. 1.3. "Inactive Channel" means a third-party system that will have a one-time communication to an Axon Digital Evidence Management System. 2. Scope. Customer currently has a third-party system or data repository from which Customer desires to share data with Axon Digital Evidence Management. Axon will facilitate the transfer of Customer’s third-party data into an Axon Digital Evidence Management System or the transfer of Customer data out of an Axon Digital Evidence Management System as defined in the Channel Services Statement of Work ("Channel Services SOW"). Channel Services will not delete any Customer Content. Customer is responsible for verifying all necessary data is migrated correctly and retained per Customer policy. 3. Changes. Axon is only responsible to perform the Services described in this Appendix and Channel Services SOW. Any additional services are out of scope. The Parties must document scope changes in a written and signed change order. Changes may require an equitable adjustment in the charges or schedule. 4. Purpose and Use. Customer is responsible for verifying Customer has the right to share data from and provide access to third-party system as it relates to the Services described in this Appendix and the Channel Services SOW. For Active Channels, Customer is responsible for any changes to a third-party system that may affect the functionality of the channel service. Any additional work required for the continuation of the Service may require additional fees. An Axon Field Engineer may require access to Customer’s network and systems to perform the Services described in the Channel Services SOW. Customer is responsible for facilitating this access per all laws and policies applicable to Customer. 5. Project Management. Axon will assign a Project Manager to work closely with Customer’s project manager and project team members and will be responsible for completing the tasks required to meet all contract deliverables on time and budget. 6. Warranty. Axon warrants that it will perform the Channel Services in a workmanlike manner. 7. Monitoring. Axon may monitor Customer’s use of Channel Services to ensure quality, improve Axon devices and services, prepare invoices based on the total amount of data migrated, and verify compliance with this Agreement. Customer agrees not to interfere with such monitoring or obscure from Axon Customer’s use of channel services. 8. Customer’s Responsibilities. Axon’s successful performance of the Channel Services requires Customer: 8.1. Make available its relevant systems for assessment by Axon (including making these systems available to Axon via remote access); 8.2. Provide access to the building facilities and where Axon is to perform the Channel Services, subject to safety and security restrictions imposed by the Customer (including providing security passes or other necessary documentation to Axon representatives performing the Channel Services permitting them to enter and exit Customer premises with laptop personal computers and any other materials needed to perform the Channel Services); 8.3. Provide all necessary infrastructure and software information (TCP/IP addresses, node names, and network configuration) for Axon to provide the Channel Services; 8.4. Ensure all appropriate data backups are performed; 8.5. Provide Axon with remote access to the Customer’s network and third-party systems when required for Axon to perform the Channel Services; 8.6. Notify Axon of any network or machine maintenance that may impact the performance of the Channel Services; and 8.7. Ensure the reasonable availability by phone or email of knowledgeable staff, personnel, system administrators, and operators to provide timely, accurate, complete, and up-to-date documentation and information to Axon (these contacts are to provide background information and clarification of information required to perform the Channel Services). Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 33 of 44 Axon Technical Account Manager Appendix This Appendix applies if Axon Support Engineer services are included in the Quote. 1. Axon Technical Account Manager Payment. Axon will invoice for Axon Technical Account Manager ("TAM") services, as outlined in the Quote, when the TAM commences work on-site at Customer. 2. Full-Time TAM Scope of Services. 2.1. A Full-Time TAM will work on-site four (4) days per week, unless an alternate schedule or reporting location is mutually agreed upon by Axon and Customer. 2.2. Customer’s Axon sales representative and Axon’s Customer Success team will work with Customer to define its support needs and ensure the Full-Time TAM has skills to align with those needs. There may be up to a six- (6-) month waiting period before the Full-Time TAM can work on-site, depending upon Customer’s needs and availability of a Full-Time TAM. 2.3. The purchase of Full-Time TAM Services includes two (2) complimentary Axon Accelerate tickets per year of the Agreement, so long as the TAM has started work at Customer, and Customer is current on all payments for the Full-Time TAM Service. 2.4. The Full-Time TAM Service options are listed below: Ongoing System Set-up and Configuration Assisting with assigning cameras and registering docks Maintaining Customer’s Axon Evidence account Connecting Customer to "Early Access" programs for new devices Account Maintenance Conducting on-site training on new features and devices for Customer leadership team(s) Thoroughly documenting issues and workflows and suggesting new workflows to improve the effectiveness of the Axon program Conducting weekly meetings to cover current issues and program status Data Analysis Providing on-demand Axon usage data to identify trends and insights for improving daily workflows Comparing Customer's Axon usage and trends to peers to establish best practices Proactively monitoring the health of Axon equipment and coordinating returns when needed Direct Support Providing on-site, Tier 1 and Tier 2 (as defined in Axon's Service Level Agreement) technical support for Axon Devices Proactively monitoring the health of Axon equipment Creating and monitoring RMAs on-site Providing Axon app support Monitoring and testing new firmware and workflows before they are released to Customer’s production environment Customer Advocacy Coordinating bi-annual voice of customer meetings with Axon’s Device Management team Recording and tracking Customer feature requests and major bugs 3. Regional TAM Scope of Services. 3.1. A Regional TAM will work on-site for three (3) consecutive days per quarter. Customer must schedule the on- site days at least two (2) weeks in advance. The Regional TAM will also be available by phone and email during regular business hours up to eight (8) hours per week. 3.2. There may be up to a six- (6-) month waiting period before Axon assigns a Regional TAM to Customer, depending upon the availability of a Regional TAM. 3.3. The purchase of Regional TAM Services includes two (2) complimentary Axon Accelerate tickets per year of the Agreement, so long as the TAM has started work at Customer and Customer is current on all payments for the Regional TAM Service. 3.4. The Regional TAM service options are listed below: Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 34 of 44 Account Maintenance Conducting remote training on new features and devices for Customer’s leadership Thoroughly documenting issues and workflows and suggesting new workflows to improve the effectiveness of the Axon program Conducting weekly conference calls to cover current issues and program status Visiting Customer quarterly (up to 3 consecutive days) to perform a quarterly business review, discuss Customer's goals for your Axon program, and continue to ensure a successful deployment of Axon Devices Direct Support Providing remote, Tier 1 and Tier 2 (As defined Axon's Service Level Agreement) technical support for Axon Devices Creating and monitoring RMAs remotely Data Analysis Providing quarterly Axon usage data to identify trends and program efficiency opportunities Comparing Customer's Axon usage and trends to peers to establish best practices Proactively monitoring the health of Axon equipment and coordinating returns when needed Customer Advocacy Coordinating bi-yearly Voice of Customer meetings with Device Management team Recording and tracking Customer feature requests and major bugs 4. Out of Scope Services. The TAM is responsible to perform only the Services described in this Appendix. Any additional Services discussed or implied that are not defined explicitly in this Appendix will be considered out of the scope. 5. TAM Leave Time. The TAM will be allowed up to seven (7) days of sick leave and up to fifteen (15) days of vacation time per each calendar year. The TAM will work with Customer to coordinate any time off and will provide Customer with at least two (2) weeks’ notice before utilizing any vacation days. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 35 of 44 Axon Investigate Appendix If the Quote includes Axon's On Prem Video Suite known as Axon Investigate or Third-Party Video Support License, the following appendix shall apply. 1. License Grant. Subject to the terms and conditions specified below and upon payment of the applicable fees set forth in the Quote, Axon grants to Customer a nonexclusive, nontransferable license to install, use, and display the Axon Investigate software ("Software") solely for its own internal use only and for no other purpose, for the duration of subscription term set forth in the Quote. This Agreement does not grant Customer any right to enhancements or updates, but if such are made available to Customer and obtained by Customer, they shall become part of the Software and governed by the terms of this Agreement. 2. Third-Party Licenses. Axon licenses several third-party codecs and applications that are integrated into the Software. Users with an active support contract with Axon are granted access to these additional features. By accepting this agreement, Customer agrees to and understands that an active support contract is required for all of the following features: DNxHD output formats, decoding files via the "fast indexing" method, proprietary file metadata, telephone and email support, and all future updates to the software. If Customer terminates the annual support contract with Axon, the features listed above will be disabled within the Software. It is recommended that users remain on an active support contract to maintain the full functionality of the Software. 3. Restrictions on Use. Customer may not permit any other person to use the Software unless such use is in accordance with the terms of this Agreement. Customer may not modify, translate, reverse engineer, reverse compile, decompile, disassemble or create derivative works with respect to the Software, except to the extent applicable laws specifically prohibit such restrictions. Customer may not rent, lease, sublicense, grant a security interest in or otherwise transfer Customer’s rights to or to use the Software. Any rights not granted are reserved to Axon. 4. Title. Axon and its licensors shall have sole and exclusive ownership of all right, title, and interest in and to the Software and all changes, modifications, and enhancements thereof (including ownership of all trade secrets and copyrights pertaining thereto), regardless of the form or media in which the original or copies may exist, subject only to the rights and privileges expressly granted by Axon. This Agreement does not provide Customer with title or ownership of the Software, but only a right of limited use. 5. Copies. The Software is copyrighted under the laws of the United States and international treaty provisions. Customer may not copy the Software except for backup or archival purposes, and all such copies shall contain all Axon’s notices regarding proprietary rights as contained in the Software as originally provided to Customer. If Customer receives one copy electronically and another copy on media, the copy on media may be used only for archival purposes and this license does not authorize Customer to use the copy of media on an additional server. 6. Actions Required Upon Termination. Upon termination of the license associated with this Agreement, Customer agrees to destroy all copies of the Software and other text and/or graphical documentation, whether in electronic or printed format, that describe the features, functions and operation of the Software that are provided by Axon to Customer ("Software Documentation") or return such copies to Axon. Regarding any copies of media containing regular backups of Customer's computer or computer system, Customer agrees not to access such media for the purpose of recovering the Software or online Software Documentation. 7. Export Controls. None of the Software, Software Documentation or underlying information may be downloaded or otherwise exported, directly or indirectly, without the prior written consent, if required, of the office of Export Administration of the United States, Department of Commerce, nor to any country to which the U.S. has embargoed goods, to any person on the U.S. Treasury Department’s list of Specially Designated Nations, or the U.S. Department of Commerce’s Table of Denials. 8. U.S. Government Restricted Rights. The Software and Software Documentation are Commercial Computer Software provided with Restricted Rights under Federal Acquisition Regulations and Customer supplements to them. Use, duplication or disclosure by the U.S. Government is subject to restrictions as set forth in subparagraph (c)(1)(ii) of the Rights in Technical Data and Computer Software clause at DFAR 255.227-7013 et. Seq. or 252.211-7015, or subparagraphs (a) through (d) of the Commercial Computer Software Restricted Rights at FAR 52.227-19, as applicable, or similar clauses in the NASA FAR Supplement. Contractor/manufacturer is Axon Enterprise, Inc., 17800 North 85th Street, Scottsdale, Arizona 85255. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 36 of 44 Community Link Terms of Use Appendix 1. Definitions. 1.1. "Community Link" means Axon’s proprietary platform and methodology to obtain and analyze feedback, and other related offerings, including, without limitation, interactions between Community Link and Axon products. 1.2. "Recipient Contact Information" means contact information, as applicable, including phone number or email address (if available) of the individual whom Customer would like to obtain feedback. 1.3. "Customer Data" means 1.3.1. "Community Link Customer Content" which means data, including Recipient Contact Information, provided to Community Link directly by Customer or at their direction, or by permitting Community Link to access or connect to an information system or similar technology. Community Link Customer Content does not include Community Link Non-Content Data. 1.3.2. "Community Link Non-Content Data" which means data, configuration, and usage information about Customer's Community Link tenant, and client software, users, and survey recipients that is Processed (as defined in Section 1.6 of this Appendix) when using Community Link or responding to a Community Link Survey. Community Link Non-Content Data includes data about users and survey recipients captured during account management and customer support activities. Community Link Non-Content Data does not include Community Link Customer Content. 1.3.3. "Survey Response" which means survey recipients' response to Community Link Survey. 1.4. "Community Link Data" means 1.4.1. "Community Link Survey" which means surveys, material(s) or content(s) made available by Axon to Customer and survey recipients within Community Link. 1.4.2. "Aggregated Survey Response" which means Survey Response that has been de-identified and aggregated or transformed so that it is no longer reasonably capable of being associated with, or could reasonably be linked directly or indirectly to, a particular individual. 1.5. "Personal Data" means any information relating to an identified or identifiable natural person. An identifiable natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, an online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural, or social identity of that natural person. 1.6. "Processing" means any operation or set of operations which is performed on data or on sets of data, whether or not by automated means, such as collection, recording, organization, structuring, storage, adaptation or alteration, retrieval, consultation, use, disclosure by transmission, dissemination or otherwise making available, alignment or combination, restriction, erasure, or destruction. 1.7. "Sensitive Personal Data" means Personal Data that reveals an individual’s health, racial or ethnic origin, sexual orientation, disability, religious or philosophical beliefs, or trade union membership. 2. Access. Upon Axon granting Customer a subscription to Community Link, Customer may access and use Community Link to store and manage Community Link Customer Content, and applicable Community Link Surveys and Aggregated Survey Responses. This Appendix is subject to the Terms and Conditions of Axon’s Master Service and Purchasing Agreement or in the event you and Axon have entered into a prior agreement to govern all future purchases, that agreement shall govern. 3. IP address. Axon will not store survey respondents’ IP address. 4. Customer Owns Community Link Customer Content. Customer controls or owns all rights, titles, and interests in Community Link Customer Content. Except as outlined herein, Axon obtains no interest in Community Link Customer Content, and Community Link Customer Content is not Axon’s business records. Except as set forth in this Agreement, Customer is responsible for uploading, sharing, managing, and deleting Community Link Customer Content. Axon will only have access to Community Link Customer Content for the limited purposes set forth herein. Customer agrees to allow Axon access to Community Link Customer Content to (a) perform troubleshooting, maintenance, or diagnostic screenings; and (b) enforce this Agreement or policies governing use of Community Link and other Axon products. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 37 of 44 5. Details of the Processing. The nature and purpose of the Processing under this Appendix are further specified in Schedule 1 Details of the Processing, to this Appendix. 6. Security. Axon will implement commercially reasonable and appropriate measures to secure Customer Data against accidental or unlawful loss, access, or disclosure. Axon will maintain a comprehensive information security program to protect Customer Data including logical, physical access, vulnerability, risk, and configuration management; incident monitoring and response; security education; and data protection. Axon will not treat Customer Data in accordance with FBI CJIS Security Policy requirements and does not agree to the CJIS Security Addendum for this engagement or any other security or privacy related commitments that have been established between Axon and Customer, such as ISO 27001 certification or SOC 2 Reporting. 7. Privacy. Customer use of Community Link is subject to the Cloud Services Privacy Policy, a current version of which is available at https://www.axon.com/legal/cloud-services-privacy-policy. Customer agrees to allow Axon access to Community Link Non-Content Data from Customer to (a) perform troubleshooting, maintenance, or diagnostic screenings; (b) provide, develop, improve, and support current and future Axon products including Community Link and related services; and (c) enforce this Agreement or policies governing the use of Community Link or other Axon products. 8. Location of Storage. Axon may transfer Customer Data to third-party subcontractors for Processing. Axon will determine the locations for Processing of Customer Data. For all Customer, Axon will Process and store Customer Data within the country in which Customer is located. Ownership of Community Link Customer Content remains with Customer. 9. Required Disclosures. Axon will not disclose Customer Data that Customer shares with Axon except as compelled by a court or administrative body or required by any law or regulation. Axon will notify Customer if any disclosure request is received for Customer Data so Customer may file an objection with the court or administrative body, unless prohibited by law. 10. Data Sharing. Axon may share data only with entities that control or are controlled by or under common control of Axon, and as described below: 10.1. Axon may share Customer Data with third parties it employs to perform tasks on Axon’s behalf to provide products or services to Customer. 10.2. Axon may share Aggregated Survey Response with third parties, such as other Axon customers, local city agencies, private companies, or members of the public that are seeking a way to collect analysis on general policing and community trends. Aggregated Survey Response will not be reasonably capable of being associated with or reasonably linked directly or indirectly to a particular individual. 11. License and Intellectual Property. Customer grants Axon, its affiliates, and assignees the irrevocable, perpetual, fully paid, royalty-free, and worldwide right and license to use Customer Data for internal use including but not limited to analysis and creation of derivatives. Axon may not release Customer Data to any third party under this right that is not aggregated and de-identified. Customer acknowledges that Customer will have no intellectual property right in any media, good or service developed or improved by Axon. Customer acknowledges that Axon may make any lawful use of Community Link Data and any derivative of Customer Data including, without limitation, the right to monetize, redistribute, make modification of, and make derivatives of the surveys, survey responses and associated data, and Customer will have no intellectual property right in any good, service, media, or other product that uses Community Link Data. 12. Customer Use of Aggregated Survey Response. Axon will make available to Customer Aggregated Survey Response and rights to use for any Customer purpose. 13. Data Subject Rights. Taking into account the nature of the Processing, Axon shall assist Customer by appropriate technical and organizational measures, insofar as this is reasonable, for the fulfilment of Customer's obligation to respond to a Data Subject Request regarding any Personal Data contained within Community Link Customer Content. If in regard to Community Link Customer Content, Axon receives a Data Subject Request from Customer's data subject to exercise one or more of its rights under applicable Data Protection Law, Axon will redirect the data subject within seventy-two (72) hours, to make its request directly to Customer. Customer will be responsible for responding to any such request. 14. Assistance with Requests Related to Community Link Customer Content. With regard to the processing of Community Link Customer Content, Axon shall, if not prohibited by applicable law, notify Customer without delay after receipt, if Axon: (a) receives a request for information from the Supervisory Authority or any other competent authority regarding Community Link Customer Content; (b) receives a complaint or request from a third party Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 38 of 44 regarding the obligations of Customer or Axon under applicable Data Protection Law; or (c) receives any other communication which directly or indirectly pertains to Community Link Customer Content or the Processing or protection of Community Link Customer Content. Axon shall not respond to such requests, complaints, or communications, unless Customer has given Axon written instructions to that effect or if such is required under a statutory provision. In the latter case, prior to responding to the request, Axon shall notify Customer of the relevant statutory provision and Axon shall limit its response to what is necessary to comply with the request. 15. Axon Evidence Partner Sharing. If Axon Evidence partner sharing is used to share Community Link Customer Content, Customer will manage the data sharing partnership with Axon and access to allow only for authorized data sharing with Axon. Customer acknowledges that any applicable audit trail on the original source data will not include activities and processing performed against the instances, copies or clips that has been shared with Axon. Customer also acknowledges that the retention policy from the original source data is not applied to any data shared with Axon. Except as provided herein, data shared with Axon may be retained indefinitely by Axon. 16. Data Retention. Phone numbers provided to Axon directly by Customer or at their direction, or by permitting Community Link to access or connect to an information system or similar technology will be retained for twenty- four (24) hours. Axon will not delete Aggregated Survey Response for four (4) years following termination of this Agreement. There will be no functionality of Community Link during these four (4) years other than the ability to submit a request to retrieve Aggregated Survey Response. Axon has no obligation to maintain or provide Aggregated Survey Response after these four years and may thereafter, unless legally prohibited, delete all Aggregated Survey Response. 17. Termination. Termination of an Community Link Agreement will not result in the removal or modification of previously shared Community Link Customer Content or the potential monetization of Survey Response and Aggregated Survey Response. 18. Managing Data Shared. Customer is responsible for: 18.1. Ensuring Community Link Customer Content is appropriate for use in Community Link. This includes, prior to sharing: (a) applying any and all required redactions, clipping, removal of metadata, logs, etc. and (b) coordination with applicable public disclosure officers and related legal teams; 18.2. Ensuring that only Community Link Customer Content that is authorized to be shared for the purposes outlined is shared with Axon. Customer will periodically monitor or audit this shared data; 18.3. Using an appropriately secure data transfer mechanism to provide Community Link Customer Content to Axon; 18.4. Immediately notify Axon if Community Link Customer Content that is not authorized for sharing has been shared. Axon may not be able to immediately retrieve or locate all instances, copies or clips of Community Link Customer Content in the event Customer requests to un-share previously shared Community Link Customer Content; 19. Prior to enrollment in Community Link. Prior to enrolling in Community Link, Customer will: 19.1. determine how to use Community Link in accordance with applicable laws and regulations including but not limited to consents, use of info or other legal considerations; 19.2. develop a set of default qualification criteria of what Community Link Customer Content may be shared with Axon; and 19.3. assign responsibilities for managing what Community Link Customer Content is shared with Axon and educate users on what data may or not be shared with Axon. 20. Customer Responsibilities. Customer is responsible for: 20.1. ensuring no Community Link Customer Content or Customer End User’s use of Community Link Customer Content or Community Link violates this Agreement or applicable laws; 20.2. providing, and will continue to provide, all notices and has obtained, and will continue to obtain, all consents and rights necessary under applicable laws for Axon to process Customer Data in accordance with this Agreement; and 20.3. maintaining necessary computer equipment and Internet connections for use of Community Link. If Customer becomes aware of any violation of this Agreement by an End User, Customer will immediately terminate that End User’s access to Community Link. Customer will also maintain the security of End User’s Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 39 of 44 usernames and passwords and security and access by End Users to Community Link Customer Content. Customer is responsible for ensuring the configuration and utilization of Community Link meets applicable Customer regulations and standards. Customer may not sell, transfer, or sublicense access to any other entity or person. Customer shall contact Axon immediately if an unauthorized party may be using Customer's account or Community Link Customer Content or if account information is lost or stolen. 21. Suspension. Axon may temporarily suspend Customer's or any End User’s right to access or use any portion or all of Community Link immediately upon notice, if Customer or End User’s use of or registration for Community Link may (a) pose a security risk to Axon products including Community Link, or any third-party; (b) adversely impact Community Link, the systems, or content of any other customer; (c) subject Axon, Axon’s affiliates, or any third-party to liability; or (d) be fraudulent. Customer remains responsible for all fees, if applicable, incurred through suspension. Axon will not delete Community Link Customer Content or Aggregated Survey Response because of suspension, except as specified in this Agreement. 22. Community Link Restrictions. Customer and Customer End Users, may not, or may not attempt to: 22.1. copy, modify, tamper with, repair, or create derivative works of any part of Community Link; 22.2. reverse engineer, disassemble, or decompile Community Link or apply any process to derive any source code included in Community Link, or allow others to do the same; 22.3. access or use Community Link with the intent to gain unauthorized access, avoid incurring fees or exceeding usage limits or quotas; 22.4. use trade secret information contained in Community Link, except as expressly permitted in this Agreement; 22.5. access Community Link to build a competitive product or service or copy any features, functions, or graphics of Community Link; 22.6. remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon’s or Axon’s licensors on or within Community Link; or 22.7. use Community Link to store or transmit infringing, libelous, or other unlawful or tortious material; to store or transmit material in violation of third-party privacy rights; or to store or transmit malicious code. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 40 of 44 Schedule 1- Details of the Processing 1. Nature and Purpose of the Processing. To help Customer obtain feedback from individuals, such as members of their community, staff, or officers. Features of Community Link may include: 1.1. Survey Tool where Customer may create, distribute, and analyze feedback from individuals it designates. Customer may designate members of the community, staff or officers from whom they would like to obtain feedback; 1.2. Creation of custom forms for surveys. Customer may select questions from a list of pre-drafted questions or create their own; 1.3. Distribution of survey via multiple distribution channels such as text message; 1.4. Ability to access and analyze Survey Response. Axon may also provide Customer Aggregated Survey Responses which contain analysis and insights from the Survey Response; 1.5. Direct integration into information systems including Computer Aided Dispatch ("CAD"). This will enable Customer to share contact information easily and quickly with Axon of any individuals from whom it wishes to obtain feedback, enabling Axon to communicate directly with these individuals; 1.6. Data Dashboard Beta Test ("Data Dashboard") where Survey Response and Aggregated Survey Response will be displayed for Customer use. Customer will be able to analyze, interpret, and share results of the Survey Response. Community Link may provide beta versions of the Data Dashboard that are specifically designed for Customer to test before they are publicly available; 1.7. Survey Responses will be aggregated and de-identified and may be subsequently distributed and disclosed through various mediums to: (1) Customer; (2) other Axon Customer; (3) private companies; and (4) members of the public. The purpose of disclosure is to provide ongoing insights and comparisons on general policing and community trends. Prior to disclosing this information, Axon will ensure that the Survey Response has been de-identified and aggregated or transformed so that it is no longer reasonably capable of being associated with, or could reasonably be linked directly or indirectly to a particular individual; and 1.8. Provide services and materials to engage Customer stakeholders, market the partnership to the public, and facilitate training. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 41 of 44 Axon Event Offer Appendix If the Agreement includes the provision of, or Axon otherwise offers, ticket(s), travel and/or accommodation for select events hosted by Axon (“Axon Event”), the following shall apply: 1. General. Subject to the terms and conditions specified below and those in the Agreement, Axon may provide Customer with one or more offers to fund Axon Event ticket(s), travel and/or accommodation for Customer-selected employee(s) to attend one or more Axon Events. By entering into the Agreement, Customer warrants that it is appropriate and permissible for Customer to receive the referenced Axon Event offer(s) based on Customer’s understanding of the terms and conditions outlined in this Axon Event Offer Appendix. 2. Attendee/Employee Selection. Customer shall have sole and absolute discretion to select the Customer employee(s) eligible to receive the ticket(s), travel and/or accommodation that is the subject of any Axon Event offer(s). 3. Compliance. It is the intent of Axon that any and all Axon Event offers comply with all applicable laws, regulations and ethics rules regarding contributions, including gifts and donations. Axon’s provision of ticket(s), travel and/or accommodation for the applicable Axon Event to Customer is intended for the use and benefit of Customer in furtherance of its goals, and not the personal use or benefit of any official or employee of Customer. Axon makes this offer without seeking promises or favoritism for Axon in any bidding arrangements. Further, no exclusivity will be expected by either party in consideration for the offer. Axon makes the offer with the understanding that it will not, as a result of such offer, be prohibited from any procurement opportunities or be subject to any reporting requirements. If Customer’s local jurisdiction requires Customer to report or disclose the fair market value of the benefits provided by Axon, Customer shall promptly contact Axon to obtain such information, and Axon shall provide the information necessary to facilitate Customer's compliance with such reporting requirements. 4. Assignability. Customer may not sell, transfer, or assign Axon Event ticket(s), travel and/or accommodation provided under the Agreement. 5. Availability. The provision of all offers of Axon Event ticket(s), travel and/or accommodation is subject to availability of funds and resources. Axon has no obligation to provide Axon Event ticket(s), travel and/or accommodation. 6. Revocation of Offer. Axon reserves the right at any time to rescind the offer of Axon Event ticket(s), travel and/or accommodation to Customer if Customer or its selected employees fail to meet the prescribed conditions or if changes in circumstances render the provision of such benefits impractical, inadvisable, or in violation of any applicable laws, regulations, and ethics rules regarding contributions, including gifts and donations. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 42 of 44 Axon Training Pod Appendix 1. Customer Responsibilities. Customer is responsible for: (i) all permits to use the Axon Training Pod; (ii) complying with all applicable laws pertaining to the use of the Axon Training Pod; (iii) any maintenance required for the Axon Training Pod; and (iv) disposal of the Axon Training Pod. 2. Warranties. TO THE EXTENT NOT PROHIBITED BY LAW, AXON TRAINING POD IS SOLD “AS IS” WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON- INFRINGEMENT. 3. Placement. Axon will make its best efforts to work with Customer on the initial placement of the Axon Training Pod. After the initial placement, it is the Customer’s responsibility to make any adjustments to the Axon Training Pod’s placement. 4. Deemed Acceptance. The Axon Training Pod will be deemed accepted by Customer upon delivery. Customer waives any right to reject the Axon Training Pod except in the event of damage during shipment, which must be reported to Axon in writing within five (5) business days of delivery. Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 43 of 44 Dedrone Product Appendix If the Quote includes Dedrone Hardware, Dedrone Software, and/or Airspace Security as a Service (collectively, “Dedrone Products”), this Dedrone Product Appendix shall apply. 1. Definitions. 1.1 “Dedrone Data” means data that Axon maintains regarding a wide variety of drone models and manufacturers in the marketplace (“DedroneDNA”, formerly “DroneDNA”), as well as usability information that Axon collects regarding the performance of the Dedrone Software and Dedrone Hardware, aggregate or de-identified Collected Data compiled or used by Axon in accordance with Section 4.2, and any other information that Axon makes available to Customer by means of the Dedrone Software 1.2 “Dedrone Hardware” means the Axon drone detection hardware sensor or mitigation products set forth on a Quote and does not include any Third-Party Hardware. 1.3 “Sensor” means a radio frequency, video, radar or other hardware sensor for drone detection purchased by Customer from Axon or obtained from any third-party vendor. 1.4 “Dedrone Software” means (i) Axon’s proprietary drone-tracking software, known as DedroneTracker (formerly DroneTracker), whether deployed on-premise or hosted by Axon as a cloud-based solution, (ii) Axon’s video analytics software (currently known as Analytics Server), and/or (iii) software and/or firmware deployed or installed on the Dedrone Hardware or available for download and installation onto Customer’s Third-Party Hardware. 1.5 “Third-Party Hardware” means hardware products owned by Customer or purchased by Customer from third parties that are used by Customer in conjunction with the Software. 2. Customer License. 2.1 Software License. Subject to the terms of this Agreement, Axon grants Customer a royalty-free, nonexclusive, nontransferable, worldwide right during each Quote Term to use the Dedrone Software, including the Dedrone Data and Collected Data, subject to the terms of the Agreement and this Appendix (the “License”). Customer must purchase a License to the Software for each unit of Dedrone Hardware and/or Third-Party Hardware using Dedrone Software. Accordingly, Customer may only use the Software quantity and type of Hardware and/or Third-Party Hardware units specified on the applicable Quote. If Customer purchases additional Licenses during a current Term, the Term of the new License(s) will be pro-rated to terminate at the end of the then-current License Term. Use of the Dedrone Software is subject to the terms of the Agreement between the parties 2.2 Restrictions. Customer will not: (i) use (or allow a third party to use) the Dedrone Products in order to monitor the availability, security, performance, or functionality of the Dedrone Products, or for any other benchmarking or competitive purposes; (ii) market, sublicense, resell, lease, loan, transfer, or otherwise commercially exploit the Dedrone Products; (iii) modify, create derivative works, decompile, reverse engineer, attempt to gain access to the source code, or copy the Dedrone Products or any of their components; (iv) use the Dedrone Products to conduct any fraudulent, malicious, or illegal activities; or (v) use the Dedrone Products in contravention of any applicable laws or regulations (each of (i) through (v), a (“Prohibited Use”). 3. Customer Obligations. 3.1 Compliance. Customer will use the Dedrone Products only in accordance with applicable specifications (the “Specifications”) and in compliance with all applicable laws, including all applicable export laws and regulations of the United States or any other country. Customer acknowledges that due to the nascent nature of drone detection and mitigation technologies applicable laws and regulations may be changing or emerging over time, and agrees that it is Customer’s responsibility to keep itself aware and remain compliant with the current laws and regulations that may apply, including but not limited to those that may apply to advanced features available at Customer’s option in the Dedrone Software. Customer will ensure that none of the Dedrone Products are directly or indirectly exported, re-exported, or used to provide services in violation of such export laws and regulations. Axon reserves the right to suspend use of any Dedrone Products operating in violation of such laws, following written notice to Customer. If Customer uses a radio jammer, or any other controlled device, in connection with the Dedrone Software, Customer represents to Axon that it is authorized to do so by the relevant authorities, that it will do so only in accordance with such authorization, and it will provide supporting documentation regarding such authorization upon request. Customer may be required to obtain legal Master Services and Purchasing Agreement Version: 25.3 Release Date: May 14, 2026 Page 44 of 44 authorization before any purchase or use of hardware sold by third parties. Axon shall not be liable if any government export authorization is delayed, denied, revoked, restricted or not renewed, nor shall any such delay, denial, revocation, restriction or non-renewal shall not constitute a breach of the Agreement by Axon. 3.2 Computing Environment. Customer is responsible for the maintenance and security of its own network and computing environment that it uses to host and/or access the Dedrone Products and for ensuring that any Third- Party Hardware meets the necessary specifications for use with the Dedrone Software. 4. Data Protection. 4.1 Data. If Customer licenses Dedrone Software, as part of its operation, the Dedrone Software may collect and send to servers owned, operated or controlled by Axon data or other information regarding Customer’s use of the Dedrone Software, which may include (i) information generated by each Sensor deployed by Customer, including information related to the date, time, and duration of the detection of the drone, as well as the locations of the detected drones and remote controls and of the Sensor itself (collectively, “Sensor Data”), and (ii) video recording of the detected drones, including flight path ("Video Data") (Sensor Data and Video Data are collectively referred to as “Collected Data”). 4.2 Use of Collected Data. Axon has the right to use Collected Data for any purpose, including: (i) improving any Dedrone Product; (ii) analyzing any Dedrone Product or the performance of any Dedrone Product; or (iii) compiling or using aggregate or de-identified Collected Data with other customers, or government and law enforcement entities, with or without compensation. Customer acknowledges that Axon may learn from the performance or use of any Dedrone Product, and Axon shall have the sole right to exploit any modification, enhancement or improvement of any Dedrone Product resulting from such learning. 4.3 User Data. To the extent Axon uses User login information, including name, email, username, and password (collectively, “User Data”) for any purpose other than to provide services to the Customer, such User Data will be deidentified and anonymized, and will not be identified as having come from Customer, except that Axon may disclose User Data where Axon, in good faith, believes that the law or legal process (such as a court order, search warrant or subpoena) requires Axon to do so. 4.4 Security. Axon maintains industry standard physical, technical, and administrative safeguards (the “Security Measures”) to protect Collected Data. 4.5 No Access. Except for User Data, Axon does not (and will not) collect, process, store, or otherwise have access to any personal information, about End Users or users of Customer’s products or services. 5. Ownership. 5.1 Axon Property. Axon owns and retains all rights, title, and interest in and to the Dedrone Data, Collected Data, the Dedrone Software, and all intellectual property embodied in the Dedrone Hardware, if the Dedrone Hardware is provided by Axon. Except for the limited license granted to Customer in Section 2.1, Axon does not by means of this Agreement or otherwise transfer or license any rights in the Dedrone Products to Customer, whether by implication, estoppel or otherwise. To the maximum extent permitted by applicable law Customer will take no action inconsistent with Axon intellectual property rights in the Dedrone Products or any Dedrone Data. 5.2 Customer Property. Customer owns and retains all right, title, and interest in and to the User Data and does not by means of this Agreement or otherwise transfer any rights in the User Data to Axon, except for the limited rights set forth in Section 4.3. 6. Government Restricted Rights. To the extent that Customer is an agency or instrumentality of the U.S. government, the parties agree that the Dedrone Software and documentation are commercial computer software and commercial computer software documentation, respectively, and Customer’s rights therein are as specified in this License, per FAR 12.212 and DFARS 227.7202-3, as applicable, or in the case of NASA, subject to NFS 1852.22. 7. Updates. The Dedrone Software may include functionality that allows it to automatically download updates that may be made available by Axon. Customer consents to the installation of such functionality. DestiMetrics Lodging Data Program June 23, 2026 DESTIMETRICS Town Council Overview June 23, 2026 Presenter: Chase Simmons, Financial Analyst DestiMetrics Lodging Data Program June 23, 2026 2026 Marketing Direction •DestiMetrics data program - $35K funds access reports and information •Marketing initiatives - $50K supports initiatives that apply DestiMetrics data to visitor, event, and lodging market decisions. •Built for better decisions - Together, the data and activation dollars connect marketing timing, event planning, and lodging performance discussions. •Improves Data for Decision-Making -Provides forward-looking occupancy and revenue data so the Town can identify lodging trends before they fully appear in monthly revenues or tax collections. •Supports Marketing and Economic Goals -Helps staff and Council evaluate visitation patterns, event timing, and broader lodging performance in Avon. •Builds a Repeatable Review Tool -This presentation is intended to help Council independently interpret future DestiMetrics reports. DestiMetrics Lodging Data Program June 23, 2026 WHAT DOES DESTIMETRICS DO FOR AVON? DestiMetrics Lodging Data Program June 23, 2026 HOW TO USE DESTIMETRICS REPORTS •Three Main Reports - •The Reservation Activity Outlook compares the next several months of paid occupancy to prior years. •The Daily Occupancy Report compares total (paid and unpaid occupancy) daily. •The Multi-Destination Comparative Report compares Avon to other mountain resort destinations. •Important Metrics -Occupancy shows demand, ADR shows pricing, and RevPAR combines both into one performance measure. •Focus on Direction -The most useful question is whether trends are improving, weakening, or holding steady relative to prior periods and other resort destinations DestiMetrics Lodging Data Program June 23, 2026 KEY METRICS TO UNDERSTAND •Occupancy -The percent of available rooms booked. This is the best simple indicator of demand. •ADR (Average Daily Rate)-The average price per booked room. This is a pricing strength indicator. •RevPAR -Revenue per available room. This combines occupancy and ADR and is often the best one-number summary of lodging performance. DestiMetrics Lodging Data Program June 23, 2026 RESERVATION ACTIVITY OUTLOOK (RAO) •What it Shows -Forward-looking occupancy, ADR, and RevPAR with historic and current-year information plus up to six months of future booking data. •How to Interpret It -Compare current year to prior year and look at booking pace. Stronger occupancy and improving ADR generally indicate stronger demand. •How We Can Use It -Use it as an early warning or early opportunity tool for upcoming seasons, holiday periods, and event windows. The information can be used to anticipate demand for municipal services or event planning. DestiMetrics Lodging Data Program June 23, 2026 Paid Occupancy DestiMetrics Lodging Data Program June 23, 2026 Average Daily Rate DestiMetrics Lodging Data Program June 23, 2026 Revenue Per Available Room DestiMetrics Lodging Data Program June 23, 2026 DAILY OCCUPANCY REPORT (DOR) •What it Shows -Daily-level destination visitation with a shorter-term forward- looking window, designed for near-term review and broader community use. •How to Interpret It -Look for spikes, dips, weekend patterns, and major changes around events, holidays, or weather windows. •How We Can Use It -Use it to understand what is happening now or in the next several weeks, especially for operations, events, and near-term visitation. DestiMetrics Lodging Data Program June 23, 2026 Daily Occupancy Report DestiMetrics Lodging Data Program June 23, 2026 HOW TO INTERPRET TRENDS •Compare to Prior Year -If occupancy, ADR, or RevPAR are above prior year, that generally suggests improvement. If they are below prior year, it may indicate softening. •Look at Booking Pace -A faster pace means bookings are coming in earlier. A slower pace may suggest weaker confidence or softer demand. •Identify the Driver -Events, weather, school breaks, and broader economic conditions can all affect results. The trend matters more than any single day or month. DestiMetrics Lodging Data Program June 23, 2026 HOW AVON COMPARES TO OTHER DESTINATIONS •What These Reports Show -Compares Avon to reporting DestiMetrics destinations on Occupancy, ADR, and RevPAR and shows Avon against the high, low, and average destination values. •Destinations include Aspen, Jackson Hole, Park City, Vail, Big Sky, Keystone, Snowbird, Whitefish, Breckenridge, Mammoth, Snowmass, Copper, Tahoe and Sun Valley •Last Month (May 2026) Next Month (June 2026) •Occupancy: 31.5% for Avon vs 27.6% average * Occupancy: 34.4% for Avon vs 45.5% average •ADR: $178 for Avon vs $292 average * ADR: $241 for Avon vs $464 average •RevPAR: $56 for Avon vs $80 average * RevPAR: $83 for Avon vs $211 average DestiMetrics Lodging Data Program June 23, 2026 Occupancy DestiMetrics Lodging Data Program June 23, 2026 Average Daily Rate DestiMetrics Lodging Data Program June 23, 2026 Revenue Per Available Room DestiMetrics Lodging Data Program June 23, 2026 Questions? Thank you! Chase Simmons, Financial Analyst csimmons@avon.org 970-748-4083 clin@avon.org TO: Honorable Mayor Underwood and Council members FROM: Charlotte Lin, Sustainability Manager RE: Colorado Energy Office (“CEO”) Local IMPACT Accelerator DATE: June 15, 2026 SUMMARY: The Town of Avon participated in a regional Eagle-Pitkin cohort application to the Colorado Energy Office (“CEO”) Local Implementation, Mitigation, and Policy Action (“IMPACT”) Accelerator, a grant funded through the U.S. Environmental Protection Agency’s Climate Pollution Reduction Grants (“CPRG”) program. The award provides Avon with approximately $431,000 to support building electrification and efficiency upgrades through rebate programs, while also participating in a coordinated regional effort to advance building energy codes. This effort builds on previous Council actions and represents the implementation phase of those commitments. Acceptance of the grant requires the Town to advance policies that exceed State minimum standards—something Avon already largely achieves—while working toward the Regional Net Zero Roadmap’s Step B goals, including all-electric construction where feasible and appropriate. The Town appreciates the cohort management, Community Office of Resource Efficiency (“CORE”) and the lead application, the City of Aspen, in this process. This work session is for informational purposes. Council is welcome to ask questions as staff prepares for grant implementation and future work sessions. BACKGROUND: The Town of Avon participated in a regional Eagle-Pitkin cohort application (Aspen, Avon, Basalt, Eagle County, Minturn, Pitkin County, Snowmass, Eagle, and Vail) to the Colorado Energy Office’s Local Implementation, Mitigation, and Policy Action (Local IMPACT) Accelerator grant program. The Local IMPACT Accelerator grant represents an opportunity for the Town of Avon to: • Receive state and federal funding to support building electrification and efficiency upgrades; • Participate in a coordinated regional effort to adopt Advanced Building Energy Codes; • Advance local climate goals while addressing affordability and workforce considerations. Colorado Energy Office (“CEO”)’s IMPACT Accelerator The Local IMPACT Accelerator provides funding to support local governments in adopting policies that reduce greenhouse gas (“GHG”) emissions, enhance resilience, and advance statewide climate goals. The program is funded through the U.S. Environmental Protection Agency’s Climate Pollution Reduction Grants (“CPRG”) program and is designed to support local policy adoption and implementation beyond state minimum requirements. This grant was first introduced to Avon Council through the Net Zero Analysis Presentation in March 2025 (ATTACHMENT A). Avon’s Prior Action to the Grant In February 2025, Avon Council also adopted Resolution 25-05, formally endorsing the Regional Net Zero Roadmap (“Roadmap”) and committing the Town to work collaboratively with regional partners toward net- zero operational emissions for new construction by 2030. That action did not itself adopt new building codes, but it established the policy direction, stepped goals, and regional alignment that later enabled the 2026 CEO IMPACT grant application. Adoption of the Roadmap established the policy direction and Page 2 of 5 regional alignment necessary to pursue implementation funding, including the 2026 CEO IMPACT Accelerator grant. Other prior related actions include: • Avon’s Resolution 23-18 Net Zero Housing • All-electric Public Works Garage • All-electric Lettuce Patch Early Learning Center • External Energy Offset Program (“EEOP”) and other building & energy codes amendments Grant Process The Eagle-Pitkin cohort application, titled “High-Performing Mountain Communities: A Regional Approach to Energy Code Innovation and Retrofit Implementation,” builds on several years of regional collaboration, including: • The Eagle County Code Cohort (2022–2023) • The Regional Net Zero Roadmap (2024–2025) • Ongoing CEO-supported energy code adoption and enforcement efforts, such as the Energy Code Adoption and Enforcement Grant (2025-2026) The application proposed a coordinated regional approach to: • Align advanced building energy codes development across jurisdictions • Provide financial and state rebates and incentives for existing building retrofits • Support workforce training and implementation capacity More details about the grant process, including an Executive Summary and supporting research, can be seen in the All-Hands Meeting presentation (ATTACHMENT B). The Town formally approved a Letter of Support for the cohort in September 2025 (ATTACHMENT C). ANALYSIS: Results The cohort received the IMPACT Accelerator award approaching its “vision” funding level ($4,024,750) in April 2026. The project period is anticipated to run from summer/fall 2026 through summer/fall 2029. The Town of Avon’s allocation is approximately: $250,000 – Commercial and Multifamily Building Upgrades $181,000 – Residential Building Upgrades Avon’s budget narrative followed an equity and needs-based logic to maximize benefits to our low-income community members. These funds will mainly be deployed through rebate programs. As a reimbursement- based grant, funds are expended first and reimbursed thereafter; staff will work closely with the Finance Department to plan cash flow and budget timing over the grant's timeline. Other activities such as policy & code development, stakeholder engagement, and workforce training, are budgeted for the entire cohort. This allows the participating communities to benefit from certain shared resources without having to administer those elements individually. Page 3 of 5 Front Range Examples The structure of this grant is consistent with broader state and federal implementation models. Notably, in 2024, the Denver Regional Council of Governments (“DRCOG”) received approximately $200 million in CPRG funding to support building electrification, energy efficiency, and code advancement across more than 58 Front Range communities. The DRCOG initiative includes activities similar to our IMPACT Accelerator application, such as centralized rebate and incentive programs, regional coordination on advanced building policies, workforce development and technical assistance and support for local governments to adopt building codes beyond state minimums. The Town’s 3-Year Commitments 1. Program Implementation • Improve and deploy local rebate and incentive programs; • Contract with program administrators through a fair and public procurement process; • Track participation, expenditures, and outcomes. 2. Regional Coordination • Participate in an intergovernmental cohort; • Coordinate grant reporting and reimbursement with the City of Aspen (lead entity); • Contribute to shared learning and case study development. 3. Reporting and Compliance • Comply with state and federal grant requirements, including procurement and documentation standards. 4. Financial Commitment • Provide a 5% local match contribution per grant requirement. 5. Policy Adoption • Participate in the development of advanced building energy codes; • Engage stakeholders, including the building industry and community members; • Support analysis and evaluation of policy options. • Demonstrate good-faith efforts for policy adoptions that are as close to the Roadmap framework as possible. While the regional application identifies advanced building codes, including all-electric components, as a shared goal, neither the State nor the cohort can require policy adoption. The CEO recognizes that local elected bodies retain full decision-making authority. Acceptance of grant funding requires a good-faith effort to advance policy beyond State minimum standards, but each community will determine its final approach based on local conditions and Council direction. In short, the Town is committing to progress, not to a specific code outcome. It is important to note that the Town already adopted Resolution 23-18 in 2023 and has since been operating in that direction. The experiences and successes we have accumulated will enable us to move into future codes with less friction. Page 4 of 5 Energy Outlook Holy Cross Energy, Avon’s primary electric provider, remains a cost-competitive utility and is transitioning toward a 100% renewable energy portfolio. In March 2026, it achieved 100% renewable electricity for an entire month, which is real progress toward its 2030 goal. While broader factors, such as increasing electricity demand and global market conditions, may affect future prices, these are largely outside local control. At the local level, continued investment in renewable generation, storage, and demand management helps the region to maintain reliable and stable electricity costs over time. Measures such as energy efficiency, demand response, and battery storage all help to reduce peak demand and control energy prices. A recent regional modeling study conducted by Group 14, CORE and Walking Mountains (ATTACHMENT D) shows that as buildings move toward higher electrification and efficiency standards, annual energy costs decline across single-family, multifamily, and commercial building types, even when electricity rates exceed natural gas. Regional cases, including Avon’s all-electric Public Works Garage, are beginning to demonstrate that while all-electric buildings may cost more upfront, they are generally cheaper to operate over the long term. Next Steps Finalize grant agreement • Cohort communities will continue coordination to allow the City of Aspen (lead applicant) to complete contract negotiations with the CEO; • An Intergovernmental Agreement (“IGA”) between participating communities will follow. Establish program implementation • Coordinate with the Building Official on technical inputs, timing, and local considerations; • Develop and release Requests for Proposals (“RFPs”) for consultants and rebate program administration through Aspen’s regional contracting process; • Update and expand local rebate programs to align with grant funding and priorities. Advance regional code development • Participate in a regional cohort process as needed; • No building code changes are included in this report; • Future work sessions, led by the Building Official and cohort partners, will present technical analysis and potential code updates for Council review. Expected policy direction • Align with or exceed the State’s Model Low Energy and Carbon Code; • Progress toward all-electric new construction (with defined exceptions) over the next 2–3 years; • Participating jurisdictions may adopt code updates at different paces, and final policy decisions are not required to be identical across the cohort. FINANCIAL CONSIDERATIONS: The grant match required from municipalities is 5%. The initial application asked for a standard (~$2M) and a vision (~$5M) budget, which resulted in a different amount of match from municipalities. Since the cohort was eventually awarded in the ~$4M range, the final match increased from $4,500 to $16,260 for Avon. This will be taken out of the EEOP fund. Instead of a lump sum Page 5 of 5 payment to the City of Aspen, the match is contributed directly through program implementation and requires appropriate tracking and documentation. Thank you, Charlotte ATTACHMENTS: ATTACHMENT A: Net Zero Analysis Presentation (February 2025) ATTACHMENT B: Eagle-Pitkin Cohort All-Hands Meeting Presentation (August 2025) ATTACHMENT C: Town of Avon Letter of Support to the cohort application ATTACHMENT D: Energy Code Impact Study Memo 970-748-4083 clin@avon.org TO: Honorable Mayor Underwood and Council members FROM: Charlotte Lin, Sustainability Manager RE: Net Zero Analysis Presentation DATE: February 25, 2025 SUMMARY: This report presents the findings and recommendations from three key net zero analyses conducted in 2024: the Town's Wedge Analysis, Eagle County's Net Zero Modeling, and the Colorado Priority Climate Action Plan (PCAP) Comparison Analysis. Together, these analyses outline a comprehensive strategy to achieve a 90% reduction in greenhouse gas (GHG) emissions by 2050. The report emphasizes the importance of continued climate action while addressing rapid population growth in Avon. It also underscores the significance of public awareness campaigns, behavioral change education programs and climate adaptation in achieving our Net Zero goals. Council members are encouraged to engage in discussions and ask questions to further refine and support the implementation of these strategies. BACKGROUND: Net Zero is defined by the Intergovernmental Panel for Climate Change (IPCC) as: “When anthropogenic CO2 emissions are balanced globally by anthropogenic CO2 removals over a specified period.” Simply put, at the global level, we need to balance the amount of emissions we put into the atmosphere with the amount we take out. To this goal, several net zero analyses have been conducted at the Town of Avon, Eagle County, and the State of Colorado level. Town Level: The Town finished its first GHG Inventory report in 2023, which was published and presented to Council in January 2024. Over 2024, the Town used the GHG inventory to continue a Wedge Analysis, resulting in 11 top strategies that would lead us to reduce 90% of GHG emissions by 2050 (ATTACHMENT A). County Level: During 2024, Avon also worked with the Town of Vail, Eagle County and the Climate Action Collaborative on a Net Zero Modeling work for the County (Slides as ATTACHMENT B). State Level: In March 2024, the Colorado Energy Office (CEO) released a Priority Climate Action Plan (“PCAP”) as part of the EPA Climate Pollution Reduction Grants (CPRG) application. EPA awarded CEO a $129 million implementation grant in July 2024 to support implementation of the following emissions reduction measures: •Methane Emissions Monitoring and Reduction •Large Building Decarbonization •Local Government Climate Action Accelerator Avon may receive potential funding through the Local Government Climate Action Accelerator based on the strategies outlined in the PCAP. This report includes an evaluation of Avon’s status against the PCAP (PCAP-Avon Comparison Analysis) to see where we stand and to inform future directions (ATTACHMENT C). Outside of net zero analyses, Eagle County recently released its annual Energy Inventory and associated GHG levels of 2023 (Attachment D). A key finding from that report shows that the County’s whole GHG level is leveling out, maintaining the same level as the previous year. This is a very encouraging sign that we have reached the point where emissions will start to decrease if we continue the work. ATTACHMENT A Page 2 of 4 ANALYSIS: The three analyses combined – Wedge Analysis, Eagle County Net Zero Modeling, and the PCAP-Avon Comparison Analysis – create a robust set of Net Zero strategies that will direct Avon on our continued climate action efforts. Continuing to work on Avon’s climate action based on the direction of these strategies is crucial. Overall, this whole set of analyses will be referred to as the Net Zero Analysis. The strategies outlined in the Net Zero Analysis are meant to be high-level, with the Colorado PCAP giving more detailed guidance on how to realize and implement the strategies. Town Level: Wedge Analysis County Level: Eagle County Net Zero Modeling State Level: Colorado Priority Climate Action Plan Commercial Electrification: 75% by 2050 - Natural Gas Expanding the ReEnergize Program Shifting travel to active transportation and transit (biking and walking; buses and trains) Electrify Vehicles (Gasoline): 91% ZEV by 2050 Adopting and implementing the Regional Net Zero Roadmap Zero emission and energy efficient vehicle adoption (through reducing vehicle registration fees, EV ready codes, EV charging permitting) Residential Electrification: 75% by 2050 - Natural Gas Existing building electrification Expanding high quality bicycle and pedestrian infrastructure VMT Reduction (Gasoline): 40% by 2050 Electrification of private vehicles Increased miles of new bicycle or pedestrian infrastructure planned or funded Reduce Waste: 90% by 2050 Electrification of public fleets Adopted roadway design standards with active transportation requirements Electrify Vehicles (Diesel): 80% ZEV by 2050 Cumulative 2020 CAP waste strategies Complete streets policies ECO Transit: Electrify Transit Bus by 2030 - Diesel Dedicated local revenue for active transportation Retrofitting Existing Commercial Buildings: 100% by 2050 - Natural Gas Miles of routes with new transit priority infrastructure planned or funded (transit priority signals, queue jumps) Retrofitting Existing Residential Buildings: 100% by 2050 - Natural Gas Establish transit priority plan with Bus Rapid Transit (BRT) - high quality bus stops, elevated platforms, off-board fare collection VMT Reduction (Diesel): 10% by 2050 Local transportation demand management (TDM) policy adoption - employer parking cash out policy & employer provided transit passes Avon Mobility: Electrify Transit Bus by 2030 - Gasoline Changes in single-occupancy vehicle trips & vehicle miles travelled Decrease in parking spaces added to new developments & changes to parking space utilization (overlap with Land Use policies) Page 3 of 4 Transit ridership & transit pass utilization Reduce barriers to use transit, biking or walking E-bike program Carpooling incentives Reduce-Driving Education Programs Employee teleworking and flexible work schedule policies Increased percentages of new and used vehicle registrations that are EV or low-emission Registration of vehicles by fuel economy Adopt different vehicle fees based on vehicle size or efficiency Adopt state minimum building energy codes, including solar and EV ready codes Adopt building performance standards that exceed state requirements Adopt specific types of building energy code measures Number of incentives awarded for energy efficiency, building electrification, on-site renewable energy, the amount of incentives awarded in total, and estimated energy and emission reduction from these projects Land use code updates that allow additional ADU and middle housing development Provide ADU and middle housing incentives & the value awarded Implement land use code updates that allow additional multifamily and mixed use development incentives & the value awarded Implement policies that discourage greenfield development & the area of land where policies are put into place Implement a local parking reduction ordinance Reduce spaces added to new developments & changes to parking space utilization Collect on-street parking fees Make EV charging permitting process predictable, transparent, and objective Reduce average permitting time for EV charging projects Increase percentage of EV charging permit applications that are approved Update land use codes to provide more predictable, transparent, and objective permitting processes for renewable energy projects Decrease average permitting times for renewable energy projects Increase percentage of approved renewable energy project permit applications Require residential and commercial buildings to offer recycling and composting services Operate a single hauler policy or contract Page 4 of 4 Require diversion of construction and demolition waste Implement a pay-as-you-throw policy Fund or purchase ZEV refuse trucks and report numbers Adopt policies or set goals for ZEV refuse truck adoption For each strategy, specific Avon programs are either already in progress or will be developed accordingly. Moving forward, staff plans to continue strengthening our various climate programs, apply to necessary grants to support them, and finalize a Climate Action Investment Matrix (2025 Official Goal #12) based on this Net Zero Analysis. Altogether, these strategies roughly estimate an average of 90% reduction by 2050 from the 2014 baseline. Achieving a 90% reduction in GHG emissions is a significant milestone and should not be overlooked. The 90% estimate is realistic and responsible due to technological feasibility, economic factors, incremental progress and sectoral challenges present as of 2025. As we progress, solutions to achieve “100% reduction” include carbon capture, utilization, and storage (CCUS) technologies, synthetic fuels, advanced renewable energy, behavioral change, policy and regulation, and nature-based solutions. It is also vital to account for the rapid population growth in Avon and Eagle County as we plan for the detailed implementation of these strategies. Key strategies and solutions to address this concern include compact and dense development, mix-used zoning, public transit expansion, active transportation, vehicle electrification, stringent building energy codes, renewable energy projects, composting, diverting construction and demolition waste, and incentives for sustainability initiatives – all of which are included in this Net Zero Analysis. Finally, it is also important to note the importance of non-GHG-reducing strategies such as public awareness campaigns, culture/behavioral change education programs, and critical climate adaptation actions such as wildfire mitigation, as a part of a holistic effort towards Net Zero. Thank you, Charlotte ATTACHMENT A: Avon Wedge Analysis 2024 ATTACHMENT B: Eagle County Net Zero Modeling 2024 ATTACHMENT C: Colorado Priority Climate Action & Avon Comparison Analysis 2024 ATTACHMENT D: 2023 Eagle County Energy Inventory ALL-HANDS MEETING CEO Local IMPACT Accelerator Grant for the ATTACHMENT B Agenda Introductions Overview of the IMPACT Accelerator Grant Example Codes Funding Match Next Steps Code Package Discussion Sharing the Executive Summary Questions & Concerns Close-out Introductions share your name, role, and organization IMPACT Accelerator Overview I n O c t o b e r 2 0 2 4 , t h e C o l o r a d o E n e r g y O f f i c e (C E O ) w a s a w a r d e d a C l i m a t e P o l l u t i o n R e d u c t i o n G r a n t (C P R G ) f r o m t h e U .S . E n v i r o n m e n t a l P r o t e c t i o n A g e n c y (E P A ). F r o m t h i s f u n d i n g , C E O i s d e d i c a t i n g $5 0 m i l l i o n t o f u n d s u b g r a n t s (i .e . g r a n t s ) t o l o c a l j u r i s d i c t i o n s t o a d v a n c e n e w p o l i c y w o r k t h r o u g h t h e n e w L o c a l I m p l e m e n t a t i o n , M i t i g a t i o n a n d P o l i c y A c t i o n (I M P A C T ) A c c e l e r a t o r . This co l l ab orativ e will p u rsue po l i cy/p r oje c t f u n ding in the build in gs s e ctor b y e nc our ag i n g ad va nc ed b u i ld i n g energ y c od e s . W i t h Asp e n i n the L e ad and CO R E as sup po rt, we a re l ook i n g t o sub mit a le tter of i nte n t fo r round t w o (mus t be inv i t e d to a pp l y ). ReEnergize, Walking Mountains P r o v i d e s s u p p o r t a n d f i n a n c i a l a s s i s t a n c e t o l o w -i n c o m e r e s i d e n t s l o o k i n g t o m a k e e n e r g y u p g r a d e s . 2024 City of Boulder Energy Code Update B o u l d e r r e q u i r e s a l l -e l e c t r i c c o m m e r c i a l n e w c o n s t r u c t i o n t o e x c e e d A S H R A E 9 0 .1 -2 0 2 2 b y a t l e a s t 1 0 %. M i x e d -f u e l p r o j e c t s m u s t e x c e e d b y 1 5 %. T h e s e t h r e s h o l d s a r e s t r i c t e r t h a n t h e M o d e l L o w E n e r g y a n d C a r b o n C o d e a n d t a k e e f f e c t e a r l i e r t h a n t h e s t a t e w i d e 2 0 2 6 d e a d l i n e . E x a m p l e o f e x c e e d i n g s t a t e m i n i m u m s . F l e x i b i l i t y a l l o w e d i n t h e c o d e v i a p e r f o r m a n c e p a t h w a y s p r o v i d e s s o m e i n c e n t i v e , a s p r e s c r i p t i v e i s t y p i c a l l y m o r e e x p e n s i v e , a n d e n c o u r a g e s i n n o v a t i o n . R e s o u r c e s l i k e E n e r g y S m a r t r e b a t e s , g r a n t s a n d l o a n s a r e a v a i l a b l e . 2 0 2 1 I E C C + M o d e l E l e c t r i c a n d S o l a r R e a d y C o d e i s b a s e c o d e . B u i l d S m a r t p r o v i s i o n s e x i s t i n t h e I R C (I n t e r n a t i o n a l R e s i d e n t i a l C o d e ). R e g u l a t e s t h e e n e r g y e f f i c i e n c y o f b u i l d i n g s a n d a l l o w s f o r p e r f o r m a n c e a n d p r e s c r i p t i v e c o m p l i a n c e o p t i o n s . T i e r e d r e q u i r e m e n t s b a s e d o n s q u a r e f o o t a g e a n d c o n s t r u c t i o n t y p e . A l s o g e t s i n t o w a t e r a n d r e s o u r c e c o n s e r v a t i o n . A l l o w s f o r s o m e f l e x i b i l i t y i n a p p r o a c h . C a n f o l l o w t h i s o r t h e 2 0 2 1 I E C C + S t a t e M o d e l a n d E l e c t r i c S o l a r R e a d y . F o r p r e s c r i p t i v e p a t h : B u i l d e r r a c k s u p c r e d i t v a l u e s w i t h e a c h e n e r g y p r o v i s i o n t h e y o p t f o r . M o r e c r e d i t s a r e a l l o t t e d t o i t e m s t h a t w i l l l e a d t o h i g h e r e f f i c i e n c y . C a n g e t 1 c r e d i t f o r e n e r g y a u d i t . Boulder County BuildSmart Program Crested Butte All-Electric Energy Code A d o p t e d i n 2 0 2 1 , C r e s t e d B u t t e p r o h i b i t s n e w n a t u r a l g a s c o n n e c t i o n s i n b u i l d i n g s — a n e a r l y a n d c o m p r e h e n s i v e e l e c t r i f i c a t i o n p o l i c y n o t r e q u i r e d b y t h e s t a t e . I t w a s t h e f i r s t a l l -e l e c t r i c c o d e i n C o l o r a d o . E x a m p l e o f e x c e e d i n g s t a t e m i n i m u m s . R e s i d e n t i a l b u i l d s n e e d t o a c h i e v e Z e r o E n e r g y R e a d y H o m e (Z E R H ) c e r t i f i c a t i o n . G e n e r a l c o n t r a c t o r s m u s t b e E n e r g y S t a r P a r t n e r a n d Z E R H p a r t n e r i f t h e y w a n t t o b e i n c l u d e d o n C r e s t e d B u t t e ’s l i s t o f v e r i f i e d p a r t n e r l i s t t h a t r e s i d e n t s c a n t u r n t o f o r a c h i e v i n g t h e s e r e q u i r e m e n t s . Budget Match O ur cu r r e n t s t r a t e g y i s t o di vi d e m a t c h funds b y t h e n u m be r of p e r m it s i ss u e d to e a ch t ow n T h i s a li g n s w e ll w ith trends i n regi o n a l de v e l o p m e n t P ut t in g al l o f ou r r es ou r ce s to ge th e r sa ve s e v e r yo n e mo n e y a n d m a kes us be tter a p p li c a n ts f o r t h i s g r a n t W e ai m t o hav e al l C it y Counc il ap p rov e d L e t t e r s o f Com m itm e n t (L O C s ) b y Se p t . 3 0t h If you need help getting a LOC from your council, contact Gina McCrackin (gina@aspencore.org) Proposed Code Package T h e a i m o f t h i s p r o j e c t i s t o m o v e u s f r o m a s s e s s m e n t t o a c t i o n , a s o u t l i n e d i n t h e R o a d m a p t o a N e w N e t Z e r o . W e w e l c o m e y o u r t h o u g h t s a n d i d e a s f o r h o w t o b u i l d a c o d e p a c k a g e t h a t a c c o m p l i s h e s t h i s ! A c o de pa ck ag e h as a l re ad y b e en out lined in the Re giona l Roa dm ap t o a N e w Ne t-Zer o W e w a n t to be s u re th at t h is co de add resses e xi st ing b uil di n gs and r e m o d e ls a s w ell a s n ew bu i ld s Why this project? This code update comes at a time where the LIA grant opportunity meets community needs for building retrofits and upgrades. We can address these needs without a benchmarking or BPS program Executive Summary M y a p p l i c a t i o n i n c l u d e s a d o p t i n g A d v a n c e d B u i l d i n g E n e r g y C o d e s t h a t w o u l d b e p a s s e d t h r o u g h a v o t e b y t h e C i t y C o u n c i l s o f A s p e n , V a i l , A v o n , E a g l e , M i n t u r n , S n o w m a s s V i l l a g e , a n d B a s a l t . W e a r e a s k i n g f o r p r o j e c t f u n d s t o 1 ) p u r s u e r e g i o n - w i d e s t a k e h o l d e r e n g a g e m e n t o n a l l -e l e c t r i c c o d e e x c e p t i o n s a n d i m p a c t s , 2 ) h i r e b u i l d i n g c o d e w r i t e r s f o r o u r c o h o r t , 3 ) p r o v i d e i n c e n t i v e s t o d e v e l o p e r s a n d r e b a t e s f o r e x i s t i n g b u i l d i n g s , a n d 4 ) c o n s i d e r a d d i t i o n a l u p d a t e s t o t h e E x t e r i o r E n e r g y O f f s e t P r o g r a m a n d c u r r e n t c o n s t r u c t i o n a n d d e m o l i t i o n p o l i c i e s . I n o r d e r t o p a s s t h e p o l i c y , w e w i l l h i r e e x p e r t s t o w r i t e A d v a n c e d B u i l d i n g C o d e s t a i l o r e d t o e a c h c o m m u n i t y ’s n e e d s a n d a l i g n e d w i t h o u r R e g i o n a l R o a d m a p , t h e n b r i n g t h e s e t o a v o t e b e f o r e e a c h C i t y C o u n c i l . W e i n t e n d t o p a s s a b u i l d i n g c o d e u p d a t e (i n c l u d i n g n e w r u l e s f o r e x i s t i n g b u i l d i n g s ), w h i c h w i l l e x c e e d c u r r e n t s t a t e a n d l o c a l r e g u l a t i o n s b y r e q u i r i n g a n d /o r i n c e n t i v i z i n g n e w b u i l d i n g s t o : m i n i m i z e e m b o d i e d c a r b o n , b e a l l -e l e c t r i c a n d p o w e r e d b y r e n e w a b l e s , a n d r e d u c e p e a k g r i d l o a d s , a l s o m a n d a t i n g h o m e e n e r g y a s s e s s m e n t s o n s i g n i f i c a n t r e m o d e l s . T h e p r o j e c t w o r k w i l l s u p p o r t t h i s A d v a n c e d B u i l d i n g E n e r g y C o d e b y p r o v i d i n g d e v e l o p e r s w i t h i n c e n t i v e s f o r a b o v e -c o d e c o n s t r u c t i o n a n d /o r e a r l y a d o p t i o n , s u p p o r t i n g l o c a l w o r k f o r c e d e v e l o p m e n t a n d t r a i n i n g , a n d b o l s t e r i n g c u r r e n t i n c e n t i v e s f o r e x i s t i n g b u i l d i n g s . Next Steps N e x t m e e t i n g o n M o n d a y , A u g u s t 1 8 t h W o r k o n s t a n d a r d b u d g e t ($2 M ) a n d c o n s t r a i n e d b u d g e t ($5 0 0 k )-T h e r e a r e 3 b u d g e t s r e q u i r e d b y t h i s g r a n t R i g h t -s i z e c o d e a n d p r o j e c t r e q u i r e m e n t s f o r e a c h c o m m u n i t y D i s c u s s i n c e n t i v e s t r u c t u r e s T h e E x e c u t i v e S u m m a r y w i l l b e s h a r e d o u t s o o n i n o u r f o l l o w -u p e m a i l Post Office Box 975 100 Mikaela Way Avon, CO 81620 September 2, 2025 RE: Local IMPACT Accelerator Application Letter of Commitment to Support High-Performing Mountain Communities: A Regional Approach to Energy Code Innovation and Retrofit Implementation Dear Russ Sands, We are writing to confirm the Town of Avon’s commitment to Aspen’s High-Performing Mountain Communities: A Regional Approach to Energy Code Innovation and Retrofit Implementation, which is being submitted for funding under the Local IMPACT Accelerator. Our community is dedicated to supporting the Support High-Performing Mountain Communities: A Regional Approach to Energy Code Innovation and Retrofit Implementation. We feel certain that this initiative will be successful in our jurisdiction because: 1.We have already demonstrated our commitment to advanced building code updates through the Regional Net Zero Roadmap, which Avon adopted in February 2025. This Roadmap outlines steps for participating jurisdictions to achieve net zero standards between 2026 and 2029. 2.Risk of the policy failing has been mitigated through comprehensive regional engagement with town councils, county commissions, and buildings workforce around the Regional Net Zero Roadmap timelines and goals. 3.Avon is additionally committed to net zero objectives of the Eagle County Climate Action Plan. Emissions from buildings account for approximately half of Eagle County’s GHG inventory, which would be partly addressed through the efforts of this grant. We are pleased to contribute staff support from both Avon’s Community Development Department and Sustainability Division. As outlined in the grant application, Avon is committed to the following: 1.Provide a matching fund of up to $4,500 that contributes the $50,000 total required match. This amount was generated based on the ratio of building permits from all participating communities. 2. Collaborating with other cohort communities involved in this application to successfully accomplish what this application details. Please do not hesitate to contact our Sustainability Manager, Charlotte Lin (clin@avon.org) if you require any additional information or documentation. We are enthusiastic about the opportunity to make an impact on the local community. Sincerely, Tamra Underwood Mayor, Town of Avon ATTACHMENT C Energy Code Impact Study Memo Background With grant funds from the Colorado Energy Office, CORE and Walking Mountains hired Group 14 Engineering to produce an energy code cost analysis. The analysis reviews the application of our Regional Net Zero Roadmap’s Step A, B, and C codes, generating modeled outcomes for energy use intensity, annual energy costs, carbon emissions reduction, and first costs across a modeled single family home, multifamily building, and commercial hotel. Below, we share some information to help distill and interpret the findings. Level Setting ●The codes referenced as Step A, or the “current codes” are modeled after Town of Avon’s code. Neighboring jurisdictions across the region have a very similar, if not the same code, which influenced decision making here. ●To review the specific elements of the codes analyzed, refer to pages 4-6 of the study. ●The all electric HVAC under Step A across the three building types models standard heat pumps with an operating temperature down to 40°F. The all electric HVAC under Steps B and C across the three building types models cold climate heat pumps with operating temperatures down to -5°F. Code does not require cold climate heat pumps, rather they are best practice and commonly installed in our region. This enables our model to demonstrate the operating differences between standard and cold climate heat pumps. Refer to page 7, Section 4 for more details. ●Step C costs are tied to assumed increased efficiency requirements in the base 2027 IECC. If the 2027 does not get more efficient, the costs would be the same as the Step B costs, excluding inflation increases. ●The study uses Holy Cross Energy’s electricity rate, and Black Hills Energy’s natural gas rate. ○Disclaimer: this study was completed prior to Holy Cross Energy’s most recent rate change. This rate change is not factored into the study. Findings Highlights ●Single Family Home ○The single family analysis is a 3,100 SF single family home, which is the rough average home size in Eagle and Pitkin Counties. ATTACHMENT D ○ Single family home electrification results in significantly reduced energy use intensity and carbon emissions. Annual operating costs are cheapest under the Step C scenario, which can help offset the first cost increases, which increased under both Step B and C scenarios as compared to Step A codes. First cost increases should be weighed against annual energy costs, which are lowest under the Step C option. Step A all electric is more expensive to operate due to the use of standard heat pumps instead of cold climate heat pumps. ● Multifamily Housing ○ The multifamily analysis is a 3-story building (42,000 sf of conditioned floor area) with 1 story of below-grade garage parking (22,500 sf). ○ Multifamily housing electrification results in an exponential decrease in energy use intensity and carbon emissions. Encouragingly, and similar to the single family home, annual operating costs decrease as full electrification under Step C codes is pursued. We do see increased first costs in tandem with code advancement for multifamily housing, but decreased operating costs help offset that. ○ The Step B mixed fuel scenario has the lowest first costs, comparatively, however has the highest annual energy cost. Interestingly, the Step A mixed fuel scenario has the highest Step A annual energy cost, despite the standard heat pumps modeled under Step A’s all electric options. ● Commercial (Hotel) ○ The commercial analysis is a 50,000 sf, 3-story hotel building with metal-framed walls. ○ Commercial hotel electrification results in an exponential decrease in energy use intensity and carbon emissions. Similarly to the multifamily and single family home analysis, annual operating costs decrease as full electrification under Step C codes is pursued. Encouragingly, Step C first costs are significantly cheaper than Step B first costs. This is due to the reduced energy credit compliance needed for all electric designs as compared to mixed fuel designs. The increased first costs associated with building to Step C can be offset through annual energy savings. Overall Findings ● As the stringency of energy codes per the Regional Roadmap increases, the annual energy costs, energy use intensity, and greenhouse gas emissions of newly constructed buildings decrease significantly, helping to reduce costs, grid demands. and achieve our climate goals. ● Annual energy costs decrease as codes progress, across all building types, despite the fact that natural gas is generally cheaper than electricity. This is due to energy efficiency gains. ● Cold climate heat pumps outperform standard heat pumps in terms of annual energy cost, energy use intensity, and carbon emissions, in all scenarios. Despite not being code-required, cold climate heat pumps are a necessity. ● First costs for Steps B and C are higher than for Step A in all scenarios, however, there is nuance here: ○ For the single family and multifamily models, first costs generally increase as the code progresses. Interestingly, the single family home all electric model under Step B is lower in first costs as compared to the mixed fuel option. ○ First costs for the commercial hotel are cheaper under Step C than Step B. ○ First cost increases can be offset through long term annual energy cost savings. ○ When communicating first cost increases, benefits of increased comfort, reduced energy consumption, improved indoor air quality, and reduced emissions should be highlighted. 970-748-4088 predmond@avon.org TO: Honorable Mayor Tamra N. Underwood and Council Members FROM: Paul Redmond, Chief Finance Officer RE: 2025 Annual Comprehensive Financial Report and Communication with Governing Board DATE: June 1, 2026 SUMMARY: Avon’s Annual Comprehensive Financial Report (Attachment A) is presented in front of Council for its acceptance. On Tuesday evening, Paul Backes with McMahan & Associates, the Town’s independent auditing firm, will present their audit findings to the Avon Town Council. COMMUNICATION WITH GOVERNING BOARD: In addition to presenting their audit findings, it is common for auditors to make recommendations regarding internal controls and policies and procedures to help the Town operate as efficiently as possible with the highest degree of transparency and integrity. PROPOSED MOTION: " I move to accept the 2025 Annual Comprehensive Financial Report." Thank you, Paul ATTACHMENTS: Attachment A 2025 Annual Comprehensive Financial Report Annual Comprehensive Financial Report for the year ended December 31, 2025 Town of Avon 100 Mikaela Way ▪ Avon, CO ▪ 81620 ▪ www.avon.org Prepared by Finance Department PRELIMINARY DRAFT ATTACHMENT A i TOWN OF AVON, COLORADO ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2025 TABLE OF CONTENTS INTRODUCTORY SECTION Elected Officials Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting Town of Avon Organization Chart FINANCIAL SECTION Independent Auditor’s Report Management’s Discussion and Analysis Basic Financial Statements Government-wide Financial Statements: Statement of Net Position Statement of Activities Fund Financial Statements: Balance Sheet – Governmental Funds Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds Reconciliation of Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities Statement of Net Position – Proprietary Funds Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds Statement of Cash Flows – Proprietary Funds Notes to the Financial Statements Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balances (Budgetary Basis) – Budget and Actual – General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances (Budgetary Basis) – Budget and Actual – Avon Urban Renewal Authority Fund Notes to Required Supplementary Information Page iv v-ix x xi A1-A3 B1-B14 C1 C2 C3 C4 C5 C6 C7 C8 C9-C10 D1-D24 E1 E2 E3 PRELIMINARY DRAFT TOWN OF AVON, COLORADO ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2025 TABLE OF CONTENTS - CONTINUED ii Other Supplementary Information Nonmajor Governmental Funds Combining Balance Sheet – Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds Schedules of Revenues, Expenditures and Changes in Fund Balances (Budgetary Basis) - Budget and Actual: Community Enhancement Fund Water Fund Community Housing Fund Avon Downtown Development Authority Fund Exterior Energy Offset Fund Disposable Paper Bag Fee Fund Debt Service Fund Capital Projects Fund Mobility Fund Fleet Maintenance Fund Equipment Replacement Fund Miscellaneous Schedules: Debt Schedule Detailed Schedule of General Fund Expenditures (Budgetary Basis) – Budget and Actual Detailed Schedule of General Fund Revenues (Budgetary Basis) – Budget and Actual Local Highway Finance Report STATISTICAL SECTION Net Position by Component Changes in Net Position Changes in Fund Balances, Governmental Funds Fund Balances, Governmental Funds Tax Revenues by Source, Governmental Funds Assessed Value and Actual Value of Taxable Property Direct and Overlapping Property Tax Rates Principal Taxpayers Property Tax Levies and Collections Ratios of Outstanding Debt by Type Page F F1 F2 F3 F4 F5 F6 F7 F8 F9 F10 F11 F12 F13 G1 G2-G3 G4-G5 G6-G7 H1-H2 H3-H6 H7-H8 H9 H10 H11 H12 H13 H14 H15 PRELIMINARY DRAFT TOWN OF AVON, COLORADO ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2025 TABLE OF CONTENTS - CONTINUED iii STATISTICAL SECTION (continued) Direct and Overlapping Governmental Activities Debt Ratio of General Bonded Debt Outstanding and Legal Debt Margin Demographic and Economic Statistics Principal Employers Commercial and Residential Construction Full-time Equivalent Employees by Function / Program Operating Indicators by Function / Program Page H16 H17-H18 H19 H20 H21-H22 H23 H24-H25 PRELIMINARY DRAFT TOWN OF AVON, COLORADO LIST OF ELECTED AND APPOINTED OFFICIALS December 31, 2025 TOWN COUNCIL Tamra N. Underwood, Mayor Rich Carroll, Mayor Pro Tem Gary Brooks Lindsay Hardy Kevin Hyatt Ruth Stanley Chico Thuon MANAGEMENT Eric Heil, Town Manager Patty McKenny, Deputy Town Manager Michael LaBagh, Recreation Director Greg Daly, Police Chief Matt Pielsticker, Community Development Director Mike Jackson, Public Works Director Paul Redmond, Chief Finance Officer iv PRELIMINARY DRAFT v Post Office Box 975 100 Mikaela Way Avon, CO 81620 June 23, 2026 To the Honorable Mayor, Members of the Town Council and Citizens of the Town of Avon: Town Charter and State statutes require that the Town of Avon (Town) issue a complete set of financial statements presented in conformance with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed independent certified public accountants. Pursuant to these requirements, we hereby issue the annual comprehensive financial report of the Town of Avon for the fiscal year ended December 31, 2025. This report consists of management’s representations concerning the finances of the Town of Avon. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the Town of Avon has established a comprehensive internal control framework that is designed both to protect the Town’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Town of Avon’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh the benefits, the Town of Avon’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The Town of Avon’s financial statements have been audited by McMahan and Associates, L.L.C., a firm of certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the Town of Avon for the fiscal year ended December 31, 2025, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. T he independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the Town of Avon’s financial statements for the fiscal year ended December 31, 2025 are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Town of Avon’s MD&A can be found immediately following the report of the independent auditors. PRELIMINARY DRAFT Letter of Transmittal Town of Avon, Colorado June 23, 2026 vi Profile of the Town The Town of Avon was incorporated in 1978 and is located in Eagle County, eight miles west of the Town of Vail and seventeen miles east of the Town of Eagle. The Town sits north of U.S. Highway 6, directly adjacent to the Beaver Creek Resort and is bisected by Interstate Highway 70 from east to west. The primary transportation route to and from Avon is I-70. Aviation services and transportation are available at the Eagle County Airport, 24 miles west of the Town. The Town provides bus transportation services within the Town and offers, in funding partnership with the Beaver Creek Resort Company, a high-speed gondola that provides direct access to Beaver Creek Resort. Avon is also served by the CORE Transit formally known as the Eagle County Regional Transit Authority which provides bus service throughout Eagle County. Eagle County encompasses approximately 1,694 square miles and spans from the summit of Vail Pass to Glenwood Canyon. Approximately 80% of Eagle County’s land is public –comprised of National Forests, wilderness areas, Bureau of Land Management properties, and state and local public lands. The Town of Avon currently encompasses approximately 8¼ square miles. The Census Bureau’s population estimate as of April 2020 was 6,072. This figure represents the permanent resident population. Total population increases significantly during the winter tourist ski season. The Town operates under the council/manager form of government. P olicy-making and legislative authority are vested in the Town Council, which consists of a mayor and a six-member council. The Town Council is responsible, among other things, for passing ordinances, adopting the budget, and appointing a Town Manager, Town Attorney, Town Prosecutor and Municipal Judge. The Town Manager is responsible for carrying out the policies and ordinances of the Council, overseeing the day-to-day operations of the Town, and for appointing the heads of the Town’s departments. The Council is elected on a non-partisan basis. C ouncil members are elected to four-year staggered terms with three council members elected in November 2024, and the remaining four to be elected in November 2026. The mayor and mayor pro-tem are elected from amongst the elected council members by a majority vote. The mayor presides at meetings of council and shall not vote until all other Council members present who are eligible to vote have had reasonable opportunity to vote. The affirmative concurring vote of four (4) Council members is required for the adoption of an ordinance, resolution, order for appropriation, approval of a contract or approval of an intergovernmental agreement. The Town is a home-rule community empowered to levy a property tax on the assessed value of real property located within the Town. The Town collects a 4% sales tax on all retail sales, and a 4% accommodations tax on the lease or rental of hotel rooms, condominium units and other accommodation within the Town. Beginning January 1, 2022, with voter approval, the Town began levying a 2% short-term rental tax on all residential short-term rentals. These funds are earmarked for community housing purposes. Effective January 1, 2019,with voter approval,the Town began levying a $3 per pack excise tax on the sale of cigarettes and a 40% tax on other nicotine and tobacco products. The Town also collects a 2% real estate transfer tax on all sales of real property located within the Town. The Town has the power by state statute to extend its PRELIMINARY DRAFT Letter of Transmittal Town of Avon, Colorado June 23, 2026 vii corporate limits by annexation, which is done periodically when deemed appropriate by the Town Council. Effective January 1, 2025, the Avon voters approved a 4% use tax on construction materials.The revenue from the construction use tax will be dedicated to Community Housing. The construction use tax is a form of use tax levied on building materials. The use tax is collected at the time a building permit is issued. The use tax amount is determined by multiplying the use tax rate by the cost of the building materials using a predetermined formula. A common method is to determine that the cost of building materials to be fifty percent (50%) of the total valuation of the construction project. The builder then provides the building permit to the materials supplier to prove that use tax has already been paid and then is exempt from paying a corresponding municipal sales tax in other locations. The Town provides a full range of municipal services including general administrative services; community planning and zoning and building permitting and inspection services; municipal law enforcement; public works including management and maintenance of Town parks and landscaping, Nottingham Lake, bridges, streets and roads, trails, buildings, facilities and infrastructure; operation and management of the Avon Recreation Center and other youth, adult and senior recreation programs; and, special events and cultural activities. The annual budget serves as the foundation for the Town of Avon’s financial planning and control. No later than October 15th, the Town Manager submits to the Mayor and Town Council a proposed budget for the calendar year commencing the following January 1st. The budget is prepared by fund, department, program, and project and includes information on the prior year, current estimates and requested appropriations and estimated revenues for the upcoming year. The Town Council holds public hearings and may change appropriations except for expenditures required by law for debt service or for estimated cash deficits. No change to the budget may increase the authorized expenditures to any amount greater than the total amount of funds available. The Town Council must adopt the budget by resolution prior to December 15th. Once adopted, the Town Council may at any time, by resolution, amend the budget. In addition, the Town Manager may transfer part or all of any unencumbered appropriation balance among programs within a department. A department is defined by the Town as a distinct, principal, or specialized division (e.g. the department of public works). Expenditures may not legally exceed budgeted appropriations at the fund level. Budget to actual comparison are provided in this report for all funds and are presented at a lower-than-required level of control to facilitate detailed financial analysis. Budgetary comparisons for the Town’s General Fund and its major special revenue fund, the Avon Urban Renewal Authority,the Avon Downtown Development Authority are presented as required supplemental information in this report. Budget to actual comparisons for all other Town funds are included as other supplemental information in this report. Factors Affecting Financial Condition PRELIMINARY DRAFT Letter of Transmittal Town of Avon, Colorado June 23, 2026 viii The information presented in the financial statements is best understood when considered from a broader perspective rather than just the specific environment in which the Town operates. Local Economy. Year-round tourism and winter recreation-related businesses account for a significant portion of the employment and earned income of area residents. S kier and snowboarder visits at Vail and Beaver Creek Resort account for almost 20% of the total such visits in Colorado. Both resorts are perennially ranked among the top ten ski resorts in the country. In addition to skiing and associated winter-time activities, the area promotes a number of summer activities. The Town of Avon sponsors numerous special events throughout the year to area residents and visitors including Avon's Salute to the USA -a July 4th fireworks display typically held on July 3rd, and Avon LIVE!, a free Wednesday evening live music series; and family-friendly activities like the Avon Easter Egg Hunt. The Avon Recreation Center is a spacious 40,000 sq. ft. multi-use facility featuring a large aquatics area with a 5-lane lap pool, lazy river, kid’s pool, 140 foot water slide, Aquaclimb climbing wall and diving well; a 2,560 sq. ft. advanced weight training room; a fitness room with treadmills, elliptical motion trainers, upright and recumbent bikes; and, separate Yoga/Tai Chi and multi-purpose training studios.Nottingham Park and Nottingham Lake serve as the Town’s central headquarters for summer activities including standup paddleboard, pedal boat, and kayak rentals; fishing, beach volleyball, Fitness Court, and Destination Jump, Splash, Learn. Avon’s Whitewater Park, with three distinct water features, is open all summer for rafters and kayakers to enjoy. The West Avon Preserve offers more than 11 miles of mountain bike trails accessible from the Town's paved bike paths with a variety of terrain for all ability levels. Offering several championship golf courses, Eagle County has earned a rating by Golf Digest Magazine as one of the top 40 golf communities in which to live. Other summer activities include hiking, horseback riding, bicycling, kayaking, and rafting, as well as other recreational sports. Property Values. Property tax, which is based on assessed property values and a mill rate, represents approximately fifteen percent of the Town’s total tax revenues. Assessed values are dependent upon real property growth and market values of property, along with assessment ratios established by the State legislature. Current Initiatives Council continues to prioritize maintaining existing service levels. For the purpose of supporting community stability and the local economy, new initiatives include rejoining Destimetrics to expand lodging data, increasing marketing through a shift from “Avon Community Values” to “Come Visit Avon,” and hosting a three-day fall bluegrass festival projected to attract 2,500–3,000 visitors during a low-occupancy period. Community Housing. In 2026, the Avon Town Council continues to fund the buyer assistance, deed restriction purchase program originally began in 2020 called Mi Casa Avon! which has been very successful. In 2025, the Town of Avon partnered with the Eagle County Good Deeds program, as the Town will now help buyers purchase properties in the Avon area.Now with the 2% short-term rental tax on all residential short-term rentals earmarked for community housing purposes, the Town has begun feasibility studies and preliminary design on employee rental housing on certain town-owned properties. PRELIMINARY DRAFT Letter of Transmittal Town of Avon, Colorado June 23, 2026 ix The Town is currently reviewing and ordering schematic designs for future construction of Community Housing within the Town. Avon has recently purchased two properties within the Town limits for the development of future community housing. Capital Improvement Projects The Town updates its capital improvements long-range plan annually. Substantial expenditures are planned in 2026 from the Capital Projects Fund.A significant portion of the expenditures are planned for road and street maintenance, a public works garage and repairs and multi-modal / alternative mobility projects including a $4.6 million project for the US Hwy 6 & Stonebridge Road, which is proposed to be funded through various federal, state and local grants. The previously approved $5.5 million H.A. Nottingham Park East Improvement project has received grant funding and began construction in 2025. The original project included landscaping upgrades, recreation path repairs, and the construction of additional public restrooms on the north and east side of the park. The dedication of real estate transfer tax revenues to capital improvements is unique to Avon and has created a stable Capital Projects Fund with adequate fund balances to continue with street resurfacing, facility replacements, and implementation of community projects identified in the Town’s Comprehensive Plan documents. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Avon for its annual comprehensive financial report (ACFR) for the fiscal year ended December 31, 2024. This was the thirty-second consecutive year that the Town has received this prestigious award. In order to be awarded a Certificate of Achievement, the Town published an easily readable and efficiently organized ACFR. This report satisfies both GAAP and applicable legal requirements. The preparation of this report could not have been possible without the efficient and dedicated services of the entire staff of the Finance Department. Each member of the department has my sincere appreciation for the contributions made in the preparation of this report. Due credit should also be given to the Mayor, Town Council, and Town Manager for their interest, support and leadership in planning and conducting the operations of the Town in a responsible and progressive manner. Respectfully Submitted, Paul Redmond Chief Finance Officer PRELIMINARY DRAFT Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Town of Avon Colorado For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2024 Executive Director/CEO x PRELIMINARY DRAFT Council Elected by Citizens - 7 Members Council appoints Mayor, Legal Counsel, Municipal Judge, Town Manager, Boards, Commissions and Committees Council serves as Local Liquor Authority, Board of Adjustments, and Board of Directors for Avon Urban Renewal Authority Town Attorney Municipal Prosecutor Special Legal Counsel TOWN MANAGER Oversees Departments and Personnel, Prepares Budget, Administers Contracts, Implements Policies and Projects as Directed by Council Municipal Judge Avon Citizens Home Rule Charter adopted and amended by Avon voters Planning & Zoning Commission (PZC) Culture, Arts & Special Events Committee (CASE) Finance Committee Health & Recreation Committee DEPARTMENTS Community Development Municipal Court Planning ORGANIZATIONAL CHART General Government Police Public Works Recreation Building Inspections Public Operations Mobility Fleet Maintenance Building & Facility Maintenance Recreation Programs Admin Investigation Patrol Human Resources Risk Management Finance IT Admin & Council Support Marketing & Communications Town Clerk Sustainability Culture, Arts & Special Events Admin Engineering Asset Management CIP & Construction GIS Water xi PRELIMINARY DRAFT McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.McMahanCPA.com Main Office: (970) 845-8800 Member: American Institute of Certified Public Accountants Denver, Colorado Avon, Colorado Florence, Alabama A1 M & A INDEPENDENT AUDITOR'S REPORT To the Mayor and Town Council Town of Avon, Colorado Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Avon, Colorado (the “Town”), as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the Town‘s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town as of December 31, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“U.S. GAAS”) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Town and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements The Town’s management is responsible for the preparation and fair presentation of the financial statements in accordance with U.S. GAAP, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town‘s ability to continue as a going concern for one year after the date that the financial statements are issued. PRELIMINARY DRAFT INDEPENDENT AUDITOR’S REPORT To the Mayor and Town Council Town of Avon, Colorado A2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with U.S. GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with U.S. GAAS, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Required Supplementary Information U.S. GAAP require that the Management’s Discussion and Analysis in section B be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in section B in accordance with U.S. GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. PRELIMINARY DRAFT INDEPENDENT AUDITOR’S REPORT To the Mayor and Town Council Town of Avon, Colorado A3 Required Supplementary Information (continued) The budgetary comparison information in section E is not a required part of the basic financial statements but is supplementary information required by U.S. GAAP. The budgetary comparison information in section E is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with U.S. GAAS. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The combining non-major fund financial statements, individual fund budgetary comparison information, and the Local Highway Finance Report in Section F are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining non-major fund financial statements, individual fund budgetary comparison information, and the Local Highway Finance Report in Section F is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with U.S. GAAS. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory section and statistical section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. McMahan and Associates, L.L.C. Avon, Colorado PRELIMINARY DRAFT B1 Management’s Discussion and Analysis As management of the Town of Avon, we offer readers of the Town of Avon’s financial statements this narrative overview and analysis of the financial activities of the Town of Avon for the fiscal year ended December 31,2025. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report. Financial Highlights The assets of the Town exceeded its liabilities and deferred inflows at the close of its fiscal year ended December 31, 2025 by $147,072,687 (net position). Of this amount, $42,993,376 is unrestricted and may be used to meet the Town’s ongoing obligations to citizens and creditors in accordance with the Town’s fund designation and fiscal policies as more fully described below. The Town’s total net position increased by $4,584,032. As of the close of the fiscal year, the Town’s governmental funds reported combined ending fund balances of $38,302,243, an decrease of $8,035,321 from the prior year. Approximately 49.54%of this total amount, $18,975,197,is available for spending at the Town’s discretion (unassigned fund balance). The unassigned fund balance for the General Fund was $18,975,197, or 48.83%of current year General Fund expenditures and other financing uses. The Town of Avon’s long-term liabilities increased by a net $4,547,515 during the current fiscal year. Regular principal payments were made on bonded debt, leases, and subscription liabilities.The Town issued new certificates of participation in 2025. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the Town of Avon’s basic financial statements. The Town’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. T his report also contains required supplementary information and other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the Town of Avon’s finances, in a manner similar to a private sector business. The statement of net position presents information on all of the Town of Avon’s assets, deferred outflows of resources, liabilities,and deferred inflows of resources.The difference between the Town’s assets and deferred outflows of resources and the Town’s liabilities and deferred inflows of resources is reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating. The statement of activities presents information showing how the Town’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused compensated absences). Both of the government-wide financial statements distinguish functions of the Town of Avon that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Town of Avon include general government, community development, public safety, public works and utilities, and recreation and culture. The business-type activities of the Town include mobility and fleet maintenance operations. PRELIMINARY DRAFT B2 The government-wide financial statements include not only the Town of Avon itself (known as the primary government), but also two component units. The first,Avon Urban Renewal Authority (“AURA”), a legally separate entity, was established in August 2007 to undertake urban renewal plans and projects with the Town. All members of the governing body are Town Council members. For financial reporting purposes, AURA is blended into the Town’s financial statements and is reported as a major fund in the basic financial statements.The second, Avon Downtown Development Authority (“ADDA”), a legally separate entity, was established in 2023 to undertake downtown development plans and projects within the Town. All members of the governing body are Town Council members. For financial reporting purposes, ADDA is blended into the Town’s financial statements and is reported as a non-major fund in the basic financial statements. The government-wide financial statements can be found on pages C1-C2 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town of Avon, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town can be divided into two categories: governmental funds and proprietary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. H owever, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflow and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the Town’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town of Avon maintains ten individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Avon Urban Renewal Authority Fund, Debt Service Fund and Capital Projects Fund, all of which are considered to be major funds. Data from the other six nonmajor governmental funds (Water Fund, Community Enhancement Fund, Downtown Development Authority Fund, Affordable Housing Fund, Exterior Energy Offset Fund, and Disposable Paper Bag Fee Fund) are combined into a single, aggregate presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements can be found on pages C3-C6 of this report. Proprietary funds. The Town of Avon maintains two different types of proprietary funds. Enterprise funds are used to report the same function presented as business-type activities in the government-wide financial statements. The Town of Avon uses enterprise funds to account for its mobility operations and its fleet maintenance operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the Town’s various functions. T he Town of Avon uses an internal service fund to account for the rental of vehicles and equipment to Town departments for the accumulation of funds for future replacement. Because this service predominately benefits governmental rather than business-type functions, it has been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the mobility fund and the fleet maintenance fund operations. Separate information is also provided for the Town’s internal service fund. The basic proprietary fund financial statements can be found on pages C7-C9 of this report. PRELIMINARY DRAFT B3 Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on section D of this report. Required Supplementary Information. In addition to the basic financial statements and accompanying notes, this report also presents certain other required supplemental information. The Town of Avon adopts an annual appropriated budget for its General Fund and major special revenue fund. Budgetary comparison statements have been provided for the General Fund and the Avon Urban Renewal Authority Fund to demonstrate compliance with these budgets and can be found on pages E1 and E2 of this report. Other Supplementary Information. The combining statements referred to earlier in connection with nonmajor governmental funds are presented under other supplemental information immediately following the required supplemental information. Individual fund statements and schedules and other miscellaneous schedules can also be found in sections F and G of this report. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the Town of Avon, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $147,072,687 as of December 31, 2025. The largest portion of the Town’s net position reflects its investment in capital assets (e.g.,land, buildings, utilities, machinery and equipment, infrastructure, and right-to-use lease assets), net of any related debt used to acquire those assets that is still outstanding. The Town uses these assets to provide services to citizens, consequently, these assets are not available for future spending. Although the Town’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the Town’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position may be used to meet the Town’s ongoing obligations to citizens and creditors. PRELIMINARY DRAFT B4 Condensed Net Position A summary of the Town’s statement of net position as of December 31, 2025 and 2024 for governmental and business- type activities is as follows: 2025 2024 2025 2024 2025 2024 Cu rre nt Assets 58,453,571 61,217,878 3,013,238 2,843,734 61,466,809 64,061,612 Re stricted Assets 505,630 503,442 - - 505,630 503,442 Ca pital A ssets , n et 100,953,309 83,313,203 13,350,341 13,953,818 114,303,650 97,267,021 Total A ssets 159,912,510 145,034,523 16,363,579 16,797,552 176,276,089 161,832,075 Deferred Ou tflo w o f Re sources 67,294 80,097 9,132 10,873 76,426 90,970 Cu rrent Liabilit ie s 4,751,214 3,498,549 642,721 617,433 5,393,935 4,115,982 Cu rrent Po rt io n of Long-Term Liabilit ie s 1,932,041 1,695,112 218,436 273,258 2,150,477 1,968,370 No ncurre nt Liabilit ie s 13,874,084 9,427,985 863,309 944,000 14,737,393 10,371,985 Total Lia bilit ie s 20,557,339 14,621,646 1,724,466 1,834,691 22,281,805 16,456,337 De ferre d In flows of Re sources 6,925,583 2,908,568 72,440 69,485 6,998,023 2,978,053 Net Po sition: Ne t In vestment in Capital A ssets 84,966,850 72,826,656 12,406,341 12,789,095 97,373,191 85,615,751 Re stricted 6,621,120 6,259,643 85,000 - 6,706,120 6,259,643 Un restricted 40,908,912 48,498,107 2,084,464 2,115,154 42,993,376 50,613,261 Total Net Po sition 132,496,882 127,584,406 14,575,805 14,904,249 147,072,687 142,488,655 Go vernmental A ctiv itie s Bu sines s-type Activities To tal Government PRELIMINARY DRAFT B5 Change in Net Position A summary of the Town’s changes in net position for 2025 and 2024 for governmental and business-type activities is as follows: 2025 2024 2025 2024 2025 2024 REVEN UES Program Revenues: Ch arges fo r Servic es 5,430,240 5,281,635 3,315,338 3,337,993 8,745,578 8,619,628 Op erating Gr ants a nd Co ntrib utions 837,010 1,785,449 - 338,398 837,010 2,123,847 Ca pital Grants a nd Co ntrib utions 949,518 925,584 481,536 - 1,431,054 925,584 Ge neral Revenues: Ta xes: Pro perty Taxes 6,094,795 5,659,627 70,353 73,037 6,165,148 5,732,664 Re al Estate Transfer Tax 5,297,273 7,980,409 - - 5,297,273 7,980,409 Sale s and Accommo dation Taxes 15,960,802 15,592,383 - - 15,960,802 15,592,383 Ot her Taxes 2,445,483 2,019,273 - - 2,445,483 2,019,273 In vestment Ea rn ings (Lo ss)2,326,828 2,663,857 - - 2,326,828 2,663,857 Un rest ri cted Grants & C ontributions 1,773,196 2,164,618 - - 1,773,196 2,164,618 Miscellaneous 629,692 690,082 8,586 38,673 638,278 728,755 Total Revenues 41,744,837 44,762,917 3,875,813 3,788,101 45,620,650 48,551,018 EXPENSES Governmental Activities: General Govern me nt 9,065,691 9,206,664 - - 9,065,691 9,206,664 Commu nity Develo pment 1,387,311 1,270,522 - - 1,387,311 1,270,522 Pu blic Sa fe ty 7,121,416 6,416,591 - - 7,121,416 6,416,591 Pu blic W orks a nd Ut ilit ie s 13,029,436 11,834,149 - - 13,029,436 11,834,149 Recreation 3,794,326 3,427,244 - - 3,794,326 3,427,244 In teres t on Lo ng-term De bt 300,356 303,666 - - 300,356 303,666 Bu siness-type Activities: M obilit y - - 3,591,610 3,465,348 3,591,610 3,465,348 Fle et Maintenance - - 2,746,472 2,675,263 2,746,472 2,675,263 To tal Exp enses 34,698,536 32,458,836 6,338,082 6,140,611 41,036,618 38,599,447 Exces s (De fic ie ncy) Before Contrib utions and Transfers 7,046,301 12,304,081 (2,462,269) (2,352,510) 4,584,032 9,951,571 Transfers (2,133,825) (2,048,002) 2,133,825 2,048,002 - - In creas e (Decrease) in Ne t Po sition 4,912,476 10,256,079 (328,444) (304,508) 4,584,032 9,951,571 Net Po sition, Begin ning of Year 127,584,406 117,328,327 14,904,249 15,208,757 142,488,655 132,537,084 Ne t Po sition, Ending 132,496,882 127,584,406 14,575,805 14,904,249 147,072,687 142,488,655 Go vern me ntal A ctivities Bu siness-type Activities Total Government PRELIMINARY DRAFT B6 Analysis of the Town’s Operations Overall, the Town’s net position increased by $4,584,032 for 2025. Governmental activities increased net position by $4,912,476, while business-type activities decreased net position by $328,444. The largest contributor to the overall increase was increased tax revenues (excluding real estate transfer taxes, which significantly declined from 2024) while expenses increased year-over-year for both governmental and business-type activities. Revenues by Source –Governmental Activities Amount of Pe rc ent In creas e In creas e 2025 Pe rc ent of To tal 2024 (De crease)(Decrease) Ch arges fo r Se rv ic es 5,430,240 13.01%5,281,635 148,605 2.81% Gr ants 3,559,724 8.53%4,875,651 (1,315,927) -26.99% Taxes 29,798,353 71.38% 31,251,692 (1,453,339) -4.65% In vestme nt In come 2,326,828 5.57%2,663,857 (337,029) -12.65% Miscella neous 629,692 1.51%690,082 (60,390) -8.75% Total 41,744,837 100.00%44,762,917 (3,018,080) Ch arge s for Se rvices, 13.01% Grants , 8.53% Ta xe s, 71.38% Inve stment Income, 5.57% Mi scella neo us , 1.51% The Town’s governmental revenues decreased by $3.0mm year-over-year. Grant revenues decreased by 27% year- over-year as the Town expended its final allocation of ARPA funds in 2024. Tax revenues decreased by 4.65%, chiefly driven by a multi-million drop in Real Estate transfer taxes, which vary annually and are tied to home purchases within the Town. Investment income decreased by 12.65% year-over-year as market rates decreased and the Town had lower cash available to invest compared to previous years. PRELIMINARY DRAFT B7 Expenses by Source –Governmental Activities . Amount of Pe rc en t In creas e In creas e 2025 Perc en t of To tal 2024 (De creas e)(De creas e) General Government 9,065,691 26.13%9,206,664 (140,973) -1.53% Commu nity De velo pment 1,387,311 4.00%1,270,522 116,789 9.19% Pu blic Sa fety 7,121,416 20.52%6,416,591 704,825 10.98% Pu blic W orks a nd Ut ilit ie s 13,029,436 37.55%11,834,149 1,195,287 10.10% Recreation 3,794,326 10.94%3,427,244 367,082 10.71% In terest on Lo ng-term De bt 300,356 0.87%303,666 (3,310) -1.09% Total 34,698,536 100.00% 32,458,836 2,239,700 Ge neral Government, 26.13% Co mmunity De ve lo pm ent, 4.00% Pu bl ic Safety, 20.52% Pu bl ic Works and Utilities, 37.55% Re cre ation , 10.94% Inte rest on Lo ng-te rm D ebt, 0.87% The Town’s governmental expenses increased by $2.2mm year-over-year. The majority of the expense increase was attributed to public safety and public works government functions as the Town continues to expand its operations, provide services to residents and visitors, maintain and repair its infrastructure, and compensate employees. Other functions saw increases due to general inflationary activity and increased activities. PRELIMINARY DRAFT B8 Revenues by Source –Business-Type Activities Amount of Perc ent In creas e In creas e 2025 Perc ent of Total 2024 (Decreas e)(De creas e) Ch arges fo r Serv ic es 3,315,338 85.54%3,337,993 (22,655) -0.68% Gr ants 481,536 12.42%338,398 143,138 42.30% Taxes 70,353 1.82%73,037 (2,684) -3.67% Miscella neous 8,586 0.22%38,673 (30,087) -77.80% Total 3,875,813 100.00%3,788,101 87,712 Ch arge s fo r Se rvi ce s, 85.54% Grants , 12.42% Ta xe s, 1.82%Mi scella neous, 0.22% The Town’s business-type revenues increased by $87k year-over-year. Increased grant revenues in 2025 occurred as the Town received one-time capital grants for capital projects at the Town’s transportation facility. PRELIMINARY DRAFT B9 Expenses by Source –Business-type Activities Amount of Perc ent In creas e In creas e 2025 Pe rc ent of Total 2024 (De crease)(De crease) M obilit y 3,591,610 56.67%3,465,348 126,262 3.64% Fleet Main tenance 2,746,472 43.33%2,675,263 71,209 2.66% Total 6,338,082 100.00%6,140,611 197,471 Mo bility, 56.67% Fl eet Ma intenance, 43.33% The Town’s business-type expenses increased by $197k year-over-year due to increased operations and general inflationary activity. Financial Analysis of the Town’s Funds The following schedule presents a summary of governmental fund revenues for the year ended December 31, 2025 and the amount and percentage of increases and decreases in relation to the prior year. Amount of Pe rc en t In creas e In creas e 2025 Pe rc ent of To tal 2024 (De creas e)(De crease) Taxe s 30,960,229 77.44%32,334,856 (1,374,627) -4.25% Licens es a nd Permit s 676,102 1.69% 1,270,081 (593,979) -46.77% In tergovernmental 2,658,811 6.65% 3,133,422 (474,611) -15.15% Ch arges fo r Serv ic es 2,646,246 6.62% 2,898,758 (252,512) -8.71% Fin es and Fo rfeit ures 90,000 0.23%86,854 3,146 3.62% In vestme nt Ea rn in gs 2,173,566 5.44% 2,490,368 (316,802) -12.72% Le ases 74,838 0.19%- 74,838 100.00% Ot her Rev enues 697,551 1.74%710,432 (12,881) -1.81% Total 39,977,343 100.00% 42,924,771 (2 ,9 47,428) -6 .8 7% Overall governmental fund revenues decreased by $2.95mm in 2025. Tax revenues decreased by 4.25% from the prior year due to decreased Real Estate Transfer Tax revenues due to a slower real estate market.The general operating mill rate for the Town remained the same at 8.956 mills. License and permit revenues decreased by 46.77% from last year as last year saw major development activity in the Town that did not occur at the same level in 2025.Intergovernmental revenues decreased 15.15% from last year as the Town expended its remaining ARPA funds in 2024. The Town PRELIMINARY DRAFT B10 continues to prioritize investment earnings, which decreased 12.72% from 2024 due to a decrease in cash and reduced yields. The following schedule presents a summary of governmental fund expenditures for the year ended December 31, 2025,and the amount and percentage of increases and decreases in relation to the prior year. Amount of Pe rc ent In creas e In creas e 2025 Percent of To tal 2024 (De creas e)(De crease) Current: General Government 17,917,980 34.48% 8,600,002 9,317,978 108.35% Commu nity De velo pment 1,087,731 2.09% 1,248,629 (160,898) -12.89% Pu blic Safe ty 6,591,686 12.68% 6,341,901 249,785 3.94% Pu blic W orks and Ut ilit ie s 8,304,585 15.98% 7,186,986 1,117,599 15.55% Recreation 3,037,376 5.84% 2,707,393 329,983 12.19% Ca pital Improvements 13,207,393 25.41% 7,963,093 5,244,300 65.86% De bt Service: Prin cipal 1,505,699 2.90% 1,453,215 52,484 3.61% In teres t 270,098 0.52%305,096 (34,998) -11.47% Fiscal Charges 44,685 0.09%4,156 40,529 975.19% Total 51,967,233 100.00% 35,810,471 16,156,762 45.12% Overall, total governmental fund expenditures increased by $16.3mm in 2025. These increases are chiefly due to major capital expenditures in 2025, as the Town had major building purchases.Additionally,the Town continues to invest heavily in attracting, retaining, and compensating personnel across all functions and expects to see personnel costs increase in future periods. At the end of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $38,302,243, a decrease of $8,035,321 from the prior year. Of this total,$2,414,341 is restricted due to external limitations on its use such as legal restrictions, or intention of grantors, donors,or trustees. A total of $12,595,482 for Capital Improvements,$153,281 for Exterior Energy Offset Programs, $193,542 for Waste Reduction Programs, $47,463 for Debt Service, and $3,660,144 for Community Housing Projects havebeen committed or assigned meaning there are limitations resulting from its intended use, such as construction of capital assets, community housing, and for other purposes. The remaining $18,975,197 is unassigned and can be used for any lawful purpose. General Fund. The General Fund is the chief operating fund of the Town. At the end of the current fiscal year, the unassigned fund balance of the General Fund is $18,975,197, while total fund balance is $20,519,990. As a measure of the General Fund’s liquidity, it is useful to compare the unassigned fund balance and total fund balance to total fund expenditures and other financing uses. Unassigned fund balance represents 48.83%of total fund expenditures and other financing uses, while total fund balance represents 52.81%of that same amount.The Town has felt it necessary to retain this level of fund balance because of its heavy reliance on sales tax revenues which can fluctuate significantly in times of economic turmoil. The Town’s position as a resort community also places a heavy reliance upon several other factors including weather, the national economy, and tourism in general. The Town’s fund balance provides the resources necessary to be more adaptable to the short-term financial environment and limits the need for capital financing. The fund balance of the General Fund decreased by $4,320,847,in 2025. This decrease is due primarily to the Town’s purchase of the Walgreens building in 2025, which was a major General Fund expenditure. Avon Urban Renewal Fund. At the end of the current fiscal year, the Avon Urban Renewal Fund had an ending fund balance of $309,021. This amount is restricted for use for urban renewal projects within the Town Center West Urban Renewal Plan Area. Fund balances increased by $118,764 in 2025 due to property tax receipts exceeding continued payments on tax increment revenue bonds. PRELIMINARY DRAFT B11 Debt Service Fund. The Debt Service Fund has a fund balance at the end of the fiscal year of $47,463, all of which is assigned for the payment of debt service. Fund balances increased by $4,$151 in 2025 due to investment earnings. Capital Projects Fund. The Capital Project Fund has an ending fund balance at the end of the fiscal year of $13,044,712, a decrease of $3,880,369 from the prior year. Restricted fund balances represent escrowed monies for future asphalt repairs pursuant to a lawsuit settlement in the amount of $449,230. The remaining amount of $12,595,482 is committed entirely to capital improvement projects. Non-major Funds. The aggregate non-major funds have a combined fund balance of $4,381,057. Fund balances in the aggregate non-major funds increased by $46,980. This increase was due to receipts of community enhancement funds, water tap fees, short-term rental taxes, and exterior energy offset fees that remained largely unspent by the end of the fiscal year. General Fund Budgetary Highlights Salary Cost Increases: In 2022 the Town transitioned from a step salary system to merit-based salary increases which will follow annual performance evaluations. The Town shifted performance evaluations from the anniversary of an employee’s hiring date to a unified schedule in the fall. This common schedule allows for training of directors and supervisors to conduct performance evaluations and the ability to include the cost of salary increase recommendations into the budget before final adoption in December of each year. Generally, the range will be 0-6 percent with the ability to consider increases above 6%. The 2025 budget provided for a merit-based salary increase of 5% in order to establish an adequate budget for salary adjustments. An additional 4% salary adjustment was provided for in order to remain competitive due to lagging behind the Town's peer communities in ending the COVID-19 based salary freezes. General fund revenues exceeded budgeted amounts by $858,892 in 2025. The chief driver of this variance was conservative budgeting of significant revenue sources. General fund expenditures were over budget by $7,876,123 in 2025 due to a large unexpected capital outlay expenditure associated with the Town’s purchase of the Walgreens building. A detailed schedule of General Fund revenues and expenditures compared to budget can be found in pages G2-G5 of this report. Capital Assets and Debt Administration Capital assets. The Town of Avon’s investment in capital assets for its governmental and business-type activities as of December, 31, 2025, amounts to $97,373,191 (net of accumulated depreciation and outstanding capital-related debt). T his investment in capital assets includes land and land improvements, public art, water rights, deed restrictions, construction in progress, buildings, utilities, machinery and equipment, infrastructure, and right-to-use assets (see table below). T he total increase in the Town’s investment in capital assets for the current fiscal year was $11,757,440. PRELIMINARY DRAFT B12 The Town continued to prioritize Capital improvement projects during 2025. Notable capital asset events during the fiscal year are as follows: The Town upgraded significant portions of its vehicle fleet The Town continued to expend funds on improvements and upgrades at the Avon Recreation Center, Nottingham Park upgrades, and reconstruction and upgrades of pedestrian trails The Town continued to expend funds on roads and general infrastructure, including asphalt overlay projects, reconstruction and upgrades of roundabouts, manhole repairs, and utility undergrounding The Town purchased a large building to support its overall long-term development strategy The Town completed construction of a new Public Works garage A total of fifty three projects were included in Construction in Progress at the end of the fiscal year. Town of Avon’s Capital Assets (net of depreciation) 2025 2024 2025 2024 2025 2024 La nd 11,953,790 11,953,790 411,834 411,834 12,365,624 12,365,624 Pu blic A rt 1,391,400 1,391,400 - - 1,391,400 1,391,400 Water Rig hts 1,792,959 1,792,959 - - 1,792,959 1,792,959 Deed Re stric tions 5,502,105 3,339,670 - - 5,502,105 3,339,670 Co nstruction in Pro gres s 15,567,133 9,601,846 - - 15,567,133 9,601,846 De preciable Land Improv.250,186 265,905 - - 250,186 265,905 Bu ild in gs 27,998,630 15,716,352 9,423,787 9,860,424 37,422,417 25,576,776 Ut ilit ie s 1,551,228 1,781,639 - - 1,551,228 1,781,639 Mach & Equip 5,894,683 5,583,057 3,514,720 3,681,560 9,409,403 9,264,617 Infrastru cture 28,981,434 31,744,218 - - 28,981,434 31,744,218 Le ase As sets - Equipment 69,761 126,110 - - 69,761 126,110 Su bscrip tion Assets - 16,257 - - - 16,257 Total 100,953,309 83,313,203 13,350,341 13,953,818 114,303,650 97,267,021 Go vern me ntal Activities Bu siness-type Activities Total Govern me nt Additional information on the Town of Avon’s capital assets can be found in Note 4 in section D of this report. Long-term debt. At the end of the current fiscal year, the Town of Avon had total long-term debt outstanding related to Certificates of Participation, Revenue Bonds, Leases and Subscription liabilities, and Accrued Compensated Absences. Town of Avon’s Outstanding Debt 2025 2024 2025 2024 2025 2024 Re venue Bo nds 2,795,528 3,460,256 - - 2,795,528 3,460,256 Ce rt ific ates o f Part icip ation 11,752,000 6,632,000 944,000 1,124,000 12,696,000 7,756,000 Un amortize d Bo nd Dis counts (91,606) - - - (91,606) - Un amortize d Bo nd Premiums 180,363 195,712 - - 180,363 195,712 Le ases Pa yable 61,092 119,989 - 40,723 61,092 160,712 Su bscrip tions Pa yable - 12,074 - - - 12,074 Accrued Co mp ensated Absences 1,108,748 703,066 137,745 52,535 1,246,493 755,601 Total 15,806,125 11,123,097 1,081,745 1,217,258 16,887,870 12,340,355 Go vernmental A ctiv it ie s Bu siness-type Activities Total Government All regular principal payments were made on debt, lease, and subscription liabilities. A new Certificate of Participation was issued in 2025 to support the Town’s purchase of the Walgreens building. PRELIMINARY DRAFT B13 The Avon Town Charter limits the amount of general obligation debt the Town may issue to 25% of assessed valuation of all taxable property within the Town, or $15 million, whichever is greater. The current legal debt margin for the Town is $79,858,505. The Town has no outstanding general obligation bonds outstanding as of December 31, 2025. Additional information on the Town’s long-term debt can be found in Note 5 on Section D of this report. Economic Factors and Next Year’s Budget and Rates Next Year’s Budget Highlights Compensation: The Town has transitioned from a step salary system to merit-based salary increases with annual performance evaluations. Performance evaluations are now given on a unified basis in late fall. This common schedule allows us to train supervisors on conducting effective evaluations and gives us the ability to include the cost of salary increase recommendations into the budget before final adoption in December of each year. This 2026 budget provides for an average of 3% merit-based salary increase. Actual salary increases are determined individually based on performance evaluations. The increase is an overall budgetary amount that is estimated to cover the cumulative cost of all salary increases not an indication of individual salary increases. Economic Development: 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. 2026 Landscape Strategy:The Town of Avon is planning to increase maintaining our landscaping beds in 2026. This includes streetscape plantings, parks, and miscellaneous planting beds like in front of Avon Town Hall. The Town is investing an additional $86k, which increases the landscaping budget from $193,633 to $280,000. This includes an increase in plant materials of $49,000 and an increase in seasonal employees from three to nine. The seasonal employees will also help with general park maintenance, special events support, and miscellaneous projects such as removing the barbed wire along the Union Pacific railroad track. Special Events: The Council’s focus for 2026 is to focus on community events that will attract more modest attendance. Town staff will continue to work with CASE and Town Council to develop a strategic plan that provides event programing that is robust, provides community and economic benefits and meets budgetary constraints. Capital Improvements: The Capital Improvements Plan presents the projects staff believe are appropriate for maintenance of existing infrastructure and implements projects identified by Council. However, several major potential capital improvements, such as Community Housing projects, are not included in the Capital Projects Long-Range Plan because cost estimates are not yet available and Council and community priorities still need to be determined. Avon’s maintains a minimum CIP fund balance of $1 million and holds an additional $9 million General Fund unrestricted reserves. These funding limits drove the creation of the Downtown Development Authority, as additional revenue is needed to address even a portion of the community’s housing needs. GENERAL FUND: General Fund appropriated expenditures ($31,886,676) are estimated to exceed revenues ($29,323,426) by $2,563,248. The Town is planning to use a $2,500,000 contribution from the undesignated, unreserved fund balance for the Avon Recreation Center Aquatics Refurbishment. Estimated beginning-of-year fund balances are $19,345,817 and end-of-year fund balances are projected at $16,782,569. Town budget policies require maintaining reserves equal to 22% of operating expenditures plus an additional 3% for TABOR emergencies. PRELIMINARY DRAFT B14 General Fund Revenues: Tax revenues for 2026 are projected to remain relatively flat. Sales tax is projected to increase with the rate of inflation, while intergovernmental revenues are expected to remain unchanged. Charges for services are projected to grow by $256,740, primarily due to continued growth in Avon Recreation Center admissions and programs. Other Revenues are projected to increase as the Town will receive additional lease revenues from the purchase of 15 Sun Road and the addition of speed cameras. General Fund Expenditures: 2026 personnel cost highlights include a merit-based overall salary cost increase of 3% on January 1. Overall personnel costs in the General Fund are budgeted to increase by 8.16% over the final revised 2025 budget. Furthermore, there is a one-time contribution in the 2026 budget for the Recreation Centers Aquatics area. General Fund Reserves:Reserves remained stable in the 2025 budget with a 3% Emergency Reserve required by TABOR ($866,525); a 22% Minimum Operating Reserve per Budget Policies ($9,561,525) and a remaining Undesignated amount ($8,944,205), resulting in a total fund balance of $16,782,569 a 13% decrease from the original 2025 budget. For 2025, the Minimum Operating Reserves were reduced from 27% to 22% as we strive to find more affordable housing for locals. Requests for Information This financial report is designed to provide a general overview of the Town of Avon’s finances for all those with an interest in the Town’s fiscal management. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Chief Finance Officer, Town of Avon, Colorado, PO Box 975, Avon, CO 81620. Paul Redmond Chief Finance Officer PRELIMINARY DRAFT TOWN OF AVON, COLORADO STATEMENT OF NET POSITION DECEMBER 31, 2025 Governmental Business-type Activities Activities Total ASSETS Cash and Cash Equivalents 23,805,837 1,834,677 25,640,514 Investments 20,323,933 - 20,323,933 Receivables 13,961,008 566,877 14,527,885 Internal Balances 100,000 (100,000) - Prepaid Expenses 262,793 - 262,793 Inventory - 711,684 711,684 Restricted Assets - Cash and Cash Equivalents 505,630 - 505,630 Capital Assets Not Being Depreciated 36,207,387 411,834 36,619,221 Capital Assets, Net of Accumulated Depreciation 64,745,922 12,938,507 77,684,429 Total Assets 159,912,510 16,363,579 176,276,089 DEFERRED OUTFLOW OF RESOURCES Deferred Charge on Refunding of Debt 67,294 9,132 76,426 LIABILITIES Accounts Payable 1,052,948 114,870 1,167,818 Accrued Liabilities 577,998 526,334 1,104,332 Retainages Payable 744,231 - 744,231 Accrued Interest Payable 55,486 1,517 57,003 Deposits and Reserves 1,933,666 - 1,933,666 Unearned Revenues 386,885 - 386,885 Noncurrent Liabilities: Due Within One Year 1,932,041 218,436 2,150,477 Due In More Than One Year 13,874,084 863,309 14,737,393 Total Liabilities 20,557,339 1,724,466 22,281,805 DEFERRED INFLOWS OF RESOURCES Lease-Related 3,761,854 - 3,761,854 Property Taxes 3,163,729 72,440 3,236,169 Total Deferred Inflows of Resources 6,925,583 72,440 6,998,023 NET POSITION Net Investment in Capital Assets 84,966,850 12,406,341 97,373,191 Restricted For: Emergencies 1,282,000 85,000 1,367,000 Capital Improvements 449,230 - 449,230 Urban Renewal 309,021 - 309,021 Downtown Development 152,349 - 152,349 Purposes of Grantors 4,428,520 - 4,428,520 Unrestricted 40,908,912 2,084,464 42,993,376 Total Net Position 132,496,882 14,575,805 147,072,687 The accompanying notes are an integral part of these financial statements. C1 PRELIMINARY DRAFT TOWN OF AVON, COLORADO STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2025 Operating Capital Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities: General Government 9,065,691 1,341,398 143,668 - (7,580,625) - (7,580,625) Community Development 1,387,311 181,347 660,743 - (545,221) - (545,221) Public Safety 7,121,416 60,925 32,599 - (7,027,892) - (7,027,892) Public Works and Utilities 13,029,436 1,827,880 - 876,882 (10,324,674) - (10,324,674) Recreation 3,794,326 2,018,690 - 72,636 (1,703,000) - (1,703,000) Interest on Long-term Debt 300,356 - - - (300,356) - (300,356) Total Governmental Activities 34,698,536 5,430,240 837,010 949,518 (27,481,768) - (27,481,768) Business-type Activities: Mobility 3,591,610 621,392 - 481,536 - (2,488,682) (2,488,682) Fleet Maintenance 2,746,472 2,693,946 - - - (52,526) (52,526) Total Business-type Activities 6,338,082 3,315,338 - 481,536 - (2,541,208) (2,541,208) Total Primary Government 41,036,618 8,745,578 837,010 1,431,054 (27,481,768) (2,541,208) (30,022,976) General Revenues and Transfers: General Revenues: Property Taxes 6,094,795 70,353 6,165,148 Real Estate Transfer Taxes 5,297,273 - 5,297,273 Sales and Accommodation Taxes 15,960,802 - 15,960,802 Other Taxes 2,445,483 - 2,445,483 Unrestricted Investment Earnings 2,326,828 - 2,326,828 Grants and Contributions Not Restricted to Specific Programs 1,773,196 - 1,773,196 Miscellaneous 629,692 8,586 638,278 Transfers (2,133,825) 2,133,825 - Total General Revenues and Transfers 32,394,244 2,212,764 34,607,008 Increase (Decrease) in Net Position 4,912,476 (328,444) 4,584,032 Net Position - Beginning of Year 127,584,406 14,904,249 142,488,655 Net Position - End of Year 132,496,882 14,575,805 147,072,687 Net (Expense) Revenue and Changes in Net PositionProgram Revenues The accompanying notes are an integral part of these financial statements. C2 PRELIMINARY DRAFT TOWN OF AVON, COLORADO BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2025 Avon Urban Debt Capital Total General Renewal Service Projects Nonmajor Fund Fund Fund Fund Funds Total ASSETS Cash and Cash Equivalents 12,910,868 255,315 45,061 4,387,480 4,220,690 21,819,414 Investments 7,410,360 - - 9,384,835 - 16,795,195 Receivables: - Interest 15,010 - - 7,722 - 22,732 - Accounts 15,431 - - - - 15,431 - Taxes 6,137,582 - - 217,509 246,204 6,601,295 - Intergovernmental 21,258 1,959 - - 14,171 37,388 - Leases 3,761,854 - - - - 3,761,854 Prepaid Items 262,793 - - - - 262,793 Internal balances 100,000 - - - - 100,000 Restricted Assets - Cash and Equivalents - 51,747 4,653 449,230 - 505,630 Total Assets 30,635,156 309,021 49,714 14,446,776 4,481,065 49,921,732 LIABILITIES Accounts Payable 345,947 - 2,251 612,147 90,781 1,051,126 Accrued Liabilities 570,371 - - - 7,627 577,998 Retainages Payable - - - 744,231 - 744,231 Unearned Revenue 341,199 - - 45,686 - 386,885 Deposits and Reserves 1,932,066 - - - 1,600 1,933,666 Total Liabilities 3,189,583 - 2,251 1,402,064 100,008 4,693,906 DEFERRED INFLOWS OF RESOURCES Lease-Related 3,761,854 - - - - 3,761,854 Unavailable Revenue - Property Taxes 3,163,729 - - - - 3,163,729 Total Deferred Inflows of Resources 6,925,583 - - - - 6,925,583 FUND BALANCES Nonspendable 262,793 - - - - 262,793 Restricted For: Emergencies 1,282,000 - - - - 1,282,000 Water Projects - - - - 187,759 187,759 Community Enhancement - - - - 33,982 33,982 Capital Improvements - - - 449,230 - 449,230 Urban Renewal Projects - 309,021 - - - 309,021 Downtown Development Projects - - - - 152,349 152,349 Committed For: Capital Improvements - - - 12,595,482 - 12,595,482 Exterior Energy Offset Programs - - - - 153,281 153,281 Waste Reduction Programs - - - - 193,542 193,542 Assigned For: Debt Service - - 47,463 - - 47,463 Community Housing - - - - 3,660,144 3,660,144 Unassigned 18,975,197 - - - - 18,975,197 Total Fund Balances 20,519,990 309,021 47,463 13,044,712 4,381,057 38,302,243 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 30,635,156 309,021 49,714 14,446,776 4,481,065 49,921,732 The accompanying notes are an integral part of these financial statements. C3 PRELIMINARY DRAFT RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCE TO NET POSITION OF GOVERNMENTAL ACTIVITIES DECEMBER 31, 2025 Total Governmental Fund Balances 38,302,243 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported as an asset in the governmental funds. - Capital assets 184,958,790 - Accumulated depreciation / amortization (89,900,160) 95,058,630 Some liabilities, including bonds, notes and leases payable, and compensated absences are not due and payable in the current period and therefore are not reported as liabilities in the governmental funds. - Tax Increment Revenue Bonds payable (2,795,528) - Certificates of Participation payable (11,752,000) - Unamortized bond discount 91,606 - Unamortized bond premium (180,363) - Lease liability (61,092) - Compensated absences payable (1,108,748) (15,806,125) Long-term receivables which are not available to pay for current period expenditures and are not reported in the governmental funds.3,522,309 Deferred outflows of resources are not available to pay for current period expenditures and therefore are deferred in the funds. - Deferred Charge on Refunding of Debt 67,294 Accrued interest payable is recognized for governmental activities but is not due and payable in the current period and therefore is not reported as a liability in the governmental funds.(55,486) The internal service fund is used by management to charge the rental cost of certain vehicles and equipment to individual funds. The assets and liabilities of the internal service fund is included in governmental activities in the statement of net position.11,408,017 Net Position of Governmental Activities 132,496,882 The accompanying notes are an integral part of these financial statements. C4 PRELIMINARY DRAFT TOWN OF AVON, COLORADO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2025 Avon Urban Debt Capital Total General Renewal Service Projects Nonmajor Fund Fund Fund Fund Funds Total Revenues Taxes 21,201,133 2,697,003 - 5,297,273 1,764,820 30,960,229 Licenses and Permits 659,540 - - - 16,562 676,102 Intergovernmental 1,577,839 - - 937,304 143,668 2,658,811 Charges for Services 2,265,658 - - - 380,588 2,646,246 Fines and Forfeitures 90,000 - - - - 90,000 Investment Earnings 1,699,607 2,188 - 471,771 - 2,173,566 Leases 74,838 - - - - 74,838 Other Revenues 512,292 - - 3,330 181,929 697,551 Total Revenues 28,080,907 2,699,191 - 6,709,678 2,487,567 39,977,343 Expenditures Current: General Government 15,722,486 80,833 - - 2,114,661 17,917,980 Community Development 1,027,304 - - 60,427 1,087,731 Public Safety 6,591,686 - - - - 6,591,686 Public Works and Utilities 8,178,760 - - - 125,825 8,304,585 Recreation 3,037,376 - - - - 3,037,376 Capital Improvements - - - 12,646,758 560,635 13,207,393 Debt Service: Principal 70,971 664,728 770,000 - - 1,505,699 Interest 1,027 84,466 184,605 - - 270,098 Fiscal Charges 38,285 400 6,000 - - 44,685 Total Expenditures 34,667,895 830,427 960,605 12,646,758 2,861,548 51,967,233 Excess (Deficiency) of Revenues Over (Under) Expenditures (6,586,988) 1,868,764 (960,605) (5,937,080) (373,981) (11,989,890) Other Financing Sources (Uses) Debt issuance 5,890,000 - - - - 5,890,000 Discount on debt issuance (91,606) - - - - (91,606) Transfers In 657,747 - 960,756 5,226,000 781,961 7,626,464 Transfers Out (4,190,000) (1,750,000) - (3,169,289) (361,000) (9,470,289) Total Other Financing Sources (Uses)2,266,141 (1,750,000) 960,756 2,056,711 420,961 3,954,569 Net Change in Fund Balances (4,320,847) 118,764 151 (3,880,369) 46,980 (8,035,321) Fund Balances, Beginning of Year 24,840,837 190,257 47,312 16,925,081 4,334,077 46,337,564 Fund Balances, End of year 20,519,990 309,021 47,463 13,044,712 4,381,057 38,302,243 The accompanying notes are an integral part of these financial statements. C5 PRELIMINARY DRAFT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2025 Net change in fund balances - Total Governmental Funds (8,035,321) Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, for governmental activities, those capital outlays other than noncapitalizable items are shown in the Statement of Activities and the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense: - Capital outlay 21,682,339 - Depreciation / Amortization (4,353,858) 17,328,481 Expenses reported in the Statement of Activities that do not require the use of current financial resources are not reported as expenditures in governmental funds. - Change in compensated absences payable (405,682) - Change in accrued interest payable (32,405) - Amortization of bond premiums and deferred charges on refunding 2,546 (435,541) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction has any effect on net position. - Proceeds from issuance of Certificates of Participation (5,890,000) - Discount on issuance of Certificates of Participation 91,606 - Repayment of Tax Increment Revenue Bonds 664,728 - Repayment of Certificates of Participation 770,000 - Repayment of Lease liability 58,897 - Repayment of SBITA liability 12,074 (4,292,695) The internal service fund is used by management to charge the rental cost of certain vehicles and equipment to individual funds. The change in net position of the internal service fund is included in governmental activities.347,552 Change in Net Position of Governmental Activities 4,912,476 The accompanying notes are an integral part of these financial statements. C6 PRELIMINARY DRAFT TOWN OF AVON, COLORADO STATEMENT OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2025 Governmental Fleet Activities - Mobility Maintenance Internal Fund Fund Totals Service Fund ASSETS Current Assets: Cash and Cash Equivalents 1,079,370 755,307 1,834,677 1,986,423 Investments - - - 3,528,738 Receivables: - Taxes 72,440 - 72,440 - - Accounts - 494,437 494,437 - Internal balances - (100,000) (100,000) - Inventory - 711,684 711,684 - Total Current Assets 1,151,810 1,861,428 3,013,238 5,515,161 Noncurrent Assets: Capital Assets: - Land 281,450 130,384 411,834 - - Buildings 11,720,946 5,639,286 17,360,232 - - Machinery and Equipment 6,325,736 648,070 6,973,806 12,429,572 - Accumulated Depreciation (7,293,496) (4,102,035) (11,395,531) (6,534,894) Total Noncurrent Assets 11,034,636 2,315,705 13,350,341 5,894,678 Total Assets 12,186,446 4,177,133 16,363,579 11,409,839 DEFERRED OUTFLOW OF RESOURCES Deferred Charge on Refunding of Debt - 9,132 9,132 - Total Deferred Outflow of Resources - 9,132 9,132 - LIABILITIES Current Liabilities: Accounts Payable 23,436 91,434 114,870 1,822 Accrued Liabilities 228,924 297,410 526,334 - Accrued Interest Payable - 1,517 1,517 - Compensated Absences Payable 15,679 18,758 34,436 - Certificates of Participation - Current - 184,000 184,000 - Total Current Liabilities 268,039 593,119 861,157 1,822 Noncurrent Liabilities: Certificates of Participation - 760,000 760,000 - Compensated Absences Payable 47,036 56,273 103,309 - Total Noncurrent Liabilities 47,036 816,273 863,309 - Total Liabilities 315,075 1,409,391 1,724,466 1,822 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes 72,440 - 72,440 - Total Deferred Inflows of Resources 72,440 - 72,440 - NET POSITION Net Investment in Capital Assets 11,034,635 1,371,706 12,406,341 5,894,678 Restricted for Emergencies 85,000 - 85,000 - Unrestricted 679,296 1,405,168 2,084,464 5,513,339 Total Net Position 11,798,931 2,776,874 14,575,805 11,408,017 Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. C7 PRELIMINARY DRAFT TOWN OF AVON, COLORADO STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2025 Governmental Fleet Activities - Mobility Maintenance Internal Fund Fund Totals Service Fund Operating Revenues: Charges for Services 505,506 2,693,944 3,199,450 1,448,022 Other Operating Revenues 121,109 3,364 124,473 - Total Operating Revenues 626,615 2,697,308 3,323,923 1,448,022 Operating Expenses: Cost of Operations 2,874,297 2,582,350 5,456,647 - Depreciation and Amortization 717,312 148,556 865,868 1,129,944 Total Operating Expenses 3,591,609 2,730,906 6,322,515 1,129,944 Operating Income (Loss)(2,964,994) (33,598) (2,998,592) 318,078 Nonoperating Revenues (Expenses): Taxes 70,353 - 70,353 - Grants 481,536 - 481,536 - Investment Earnings - - - 153,263 Gain (Loss) on Disposal of Capital Assets - - - 31,400 Interest Expense - (15,566) (15,566) - Total Nonoperating Revenues (Expenses)551,889 (15,566) 536,323 184,663 Income (Loss) Before Contributions and Transfers (2,413,105) (49,164) (2,462,269) 502,741 Capital Contributions and Transfers Contributed Capital In (Out)- - - 134,811 Transfers In (Out)1,700,000 433,825 2,133,825 (290,000) Total Capital Contributions and Transfers 1,700,000 433,825 2,133,825 (155,189) Change in Net Position (713,105) 384,661 (328,444) 347,552 Net Position, Beginning of Year 12,512,036 2,392,213 14,904,249 11,060,465 Net Position, End of Year 11,798,931 2,776,874 14,575,805 11,408,017 Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. C8 PRELIMINARY DRAFT TOWN OF AVON, COLORADO STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2025 Governmental Fleet Activities - Mobility Maintenance Internal Fund Fund Totals Service Fund Cash Flows From Operating Activities Cash Received from Customers and Users 595,374 2,583,140 3,178,514 - Cash Received from Interfund Services Provided - - - 1,448,022 Cash Payments to Suppliers (1,403,512) (1,529,419) (2,932,931) - Cash Payments to Employees (1,274,122) (993,923) (2,268,045) - Cash Received from Other Operating Activities 121,109 3,364 124,473 - Net Cash Provided by (Used in) Operating Activities (1,961,151) 63,162 (1,897,989) 1,448,022 Cash Flows From Noncapital Financing Activities Taxes Received 70,667 - 70,667 - Grants Received 481,536 - 481,536 - Transfers In (Out) from Other Funds 1,700,000 433,825 2,133,825 (290,000) Net Cash Provided by Noncapital Financing Activities 2,252,203 433,825 2,686,028 (290,000) Cash Flows From Capital Financing Activities Acquisition and Construction of Capital Assets - (262,388) (262,388) (1,312,428) Sales of Capital Assets - - - 38,500 Interest Paid on long-term debt and leases - (13,825) (13,825) - Principal Paid on long-term debt and leases (40,723) (180,000) (220,723) - Net Cash Used in Capital Financing Activities (40,723) (456,213) (496,936) (1,273,928) Cash Flows From Investing Activities Acquisition of Securities, Net of Maturities - - - (153,263) Investment Earnings - - - 153,263 Net Cash Used in Investing Activities - - - - Net Increase (Decrease) in Cash and Cash Equivalents 250,329 40,774 291,103 (115,906) Cash and Cash Equivalents, Beginning of Year 829,041 714,533 1,543,574 2,102,329 Cash and Cash Equivalents, End of Year 1,079,370 755,307 1,834,677 1,986,423 Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. C9 PRELIMINARY DRAFT TOWN OF AVON, COLORADO STATEMENT OF CASH FLOWS (CONTINUED) PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2025 Governmental Fleet Activities - Mobility Maintenance Internal Fund Fund Totals Service Fund RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Operating Income (Loss)(2,964,994) (33,598) (2,998,592) 318,078 Adjustments to Reconcile Operating Loss to Net Cash Provided by (Used in) Operating Activities Depreciation and Amortization 717,312 148,556 865,868 1,129,944 Change in Assets and Liabilities: (Increase) Decrease in Accounts Receivable 89,868 (110,804) (20,936) - (Increase) Decrease in Deferred Expense 172,904 2,830 175,734 - (Increase) Decrease in Inventory - (30,560) (30,560) - Increase (Decrease) in Accounts Payable (234,714) (134,505) (369,219) - Increase (Decrease) in Accrued Liabilities 217,685 176,821 394,506 - Increase (Decrease) in Compensated Absences 40,788 44,422 85,210 - Total Adjustments 1,003,843 96,760 1,100,603 1,129,944 Net Cash Provided by (Used in) Operating Activities (1,961,151) 63,162 (1,897,989) 1,448,022 NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES Noncash Transactions Affecting Financial Position Contributions of Capital Assets from Governmental Activities - - - 134,811 Total - - - 134,811 Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. C10 PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D1 The financial statements of the Town of Avon have been prepared in conformity with generally accepted accounting principles (“GAAP”) as applied to governmental entities. The Governmental Accounting Standards Board (“GASB”) is the accepted standard-setting board for establishing governmental accounting and financial reporting principles. The following notes are an integral part of the Town’s Annual Comprehensive Financial Report. Note 1. Summary of Significant Accounting Policies A. Financial Reporting Entity Primary Government. The Town of Avon, Colorado, was incorporated as a Town on April 24, 1978. On June 13, 1978, the citizenry voted to become a Home Rule City, as authorized by Article 20 of the Colorado State Constitution. The Town operates under a Council-Manager form of government and provides the following services as authorized by its charter: public safety, highways and streets, culture-recreation, public improvements, community development, planning and zoning, transportation, and general administrative services. As required by generally accepted accounting principles, these financial statements present the Town of Avon (the primary government) and its component unit for which the Town is considered financially accountable. Financial accountability exists if the Town appoints a voting majority of an organization’s governing board and is able to impose its will on the organization, or if the organization provided benefits to, or imposes financial burdens upon the Town.Blended component units, although legally separate entities, are, in substance, part of the Town’s operations,so data from these units are combined with data of the Town. The Town’s blended component units are – Avon Urban Renewal Authority –The Avon Urban Renewal Authority (AURA)was created pursuant to Urban Renewal Law of the State of Colorado on June 26, 2007 by Town Resolution No. 07-20 for the purpose of undertaking certain urban renewal activities within the Town. The boundaries of the AURA are coterminous with the boundaries of the Town. T he bylaws of the AURA provide that the members of the Avon Town Council shall constitute the Commissioners of the AURA and the Town Manager serves as the Executive Director and Secretary. While the AURA is a separate legal entity, for financial reporting purposes it is blended with the Town’s financial statements and is reported in a special revenue fund as a blended component unit. The Town has a “moral obligation” for the repayment of urban renewal authority bonds. The Town accounts for the collection of tax increment property tax revenues and maintains all accounting records. A separate budget is adopted by the AURA Commissioners. Avon General Improvement District No. 1 –The Town of Avon General Improvement District No. 1 was organized on August 28, 2007,by adoption of Ordinance No. 07-07. The services to be provided within and for the District include transportation and recreation services and include the property known as Lots 1 and 2 of the final plat of the Chateau St. Claire subdivision, now commonly known as the Ascent. The members of the Avon Town Council constitute the Board of the District. The District levies a property tax to be used for transportation operations.Because the governing body of the District is substantively the same as the Town and there is a financial benefit between the District and the Town, for financial reporting purposes the District is blended into the Town’s financial statements and is reported in the Mobility enterprise fund as a blended component unit. Separate budgets and financial statements of the District are not adopted or issued. Avon Downtown Development Authority –The Town of Avon Downtown Development Authority (“DDA”) was organized on September 26, 2023, by adoption of Ordinance No. 23-02, for the purpose of undertaking community housing projects and additional public improvements. The boundaries of the DDA encompass the West Town Center, East Town Center, and the valley floor area of the Village at Avon. The bylaws of the DDA provide that at least one member of the Avon Town Council must be a board member and that the Town Manager serves as the Executive Director. While the DDA is a separate legal entity, for financial reporting purposes it is PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D2 blended with the Town’s financial statements and is reported in a special revenue fund as a blended component unit. The Town accounts for the collection of tax increment property tax revenues and maintains all accounting records. A separate budget is adopted by the DDA Commissioners. B. Government-wide and Fund Financial Statements Government-wide Financial Statements. The government-wide financial statements (i.e. the Statement of Net Position and the Statement of Activities) report information on all non-fiduciary activities of the Town (the primary government) and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which primarily rely on fees and charges for support. Generally, interfund activity has been eliminated from the government-wide financial statements except for interfund services provided and used. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or business segment are offset by program revenues and helps identify the extent to which each is self-financing or draws from the general revenues of the Town. Direct expenses are those that are clearly identifiable with a specific function or business segment. Program revenues include 1) charges to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and, 2) grants and contributions that are restricted to meeting the operational or capital requirements of a function or business segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Fund Financial Statements.Fund financial statements report detailed information about the Town with the focus on major funds rather than on reporting funds by type. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Nonmajor funds are aggregated and presented in a single column. The internal service fund is presented in a single column on the face of the proprietary fund statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation Measurement Focus and Basis of Accounting. The government-wide financial statements have been prepared using the economic resources measurement focus and the accrual basis of accounting. T his is the same approach used in the preparation of the proprietary fund financial statements. Revenues are recognized when earned and expenses are recognized when the liability is incurred regardless of the timing of related cash flows. D epreciation is computed and recorded as an operating expense. Expenditures for property, plant and equipment are shown as increases in assets and redemption of bonds and notes are recorded as a reduction in liabilities. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenue is recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period (60 days). The major sources of revenue which are susceptible to accrual are property taxes, accommodations and sales taxes, and certain intergovernmental revenues. Expenditures generally are recorded when the liability is incurred, as under full accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Financial Statement Presentation –Fund Accounting. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts which are segregated for the purpose of accounting for specific activities. The Town uses funds to report results of operations and financial position, and demonstrate compliance with legal, contractual and regulatory requirements. PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D3 The Town’s funds are classified into two broad fund categories and six generic fund types for financial reporting purposes: Governmental funds include the general, special revenue, debt service, and capital projects funds. Proprietary funds include enterprise funds and an internal service fund. The Town’s major governmental funds are: General Fund –This is the Town’s primary operating fund. It is used to account for all activities of the Town not required to be accounted for in some other fund. Avon Urban Renewal Fund –This fund is used to account for the receipt of tax increment revenues and the activities of redevelopment that are undertaken by the Avon Urban Renewal Authority, including issuing debt and constructing public improvements. Debt Service Fund –This fund is used to account for the accumulation of resources and payment of principal and interest on the Town’s general obligation and sales tax revenue bonds. Capital Projects Fund –This fund is used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of all the Town’s enterprise and internal service funds are charges to customers for sales and services. Operating expenses for enterprise and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. The Town’s major proprietary funds are: Mobility Fund –This fund is used to account for the activities involved in operating the Town’s transportation system. Fleet Maintenance Fund –This fund is used to account for the accumulation and allocation of costs associated with the maintenance of vehicles and rolling stock for the Town and certain other third-party governmental entities. The Town’s only internal service fund is the Equipment Replacement Fund. This fund is used to account for the rental of certain vehicles and equipment to other departments for the accumulation of funds for future replacement. D. Budget Information Budgets are adopted on a basis consistent with generally accepted accounting principles for all funds, except for proprietary funds which are budgeted on the modified accrual basis of accounting. According to the Town’s Charter, all appropriations except for capital projects or special revenue funds lapse at fiscal year-end. However, as a matter of practice, the Town adopts annual budgets for all funds. During the year, changes may be made to budgets by adoption of supplemental amendments by resolution of the Town Council. E. Assets, Liabilities, and Deferred Outflow/Inflows of Resources Cash, Cash Equivalents,and Investments. The Town concentrates the cash resources of its various funds to facilitate the management of cash. The balance in this concentration account is available to meet the Town’s current operating requirements. Cash resources more than current requirements are invested in various interest- bearing securities and disclosed as part of the Town’s investments. Cash and cash equivalents include amounts in demand deposits as well as short-term investments with a maturity date within 3 months of the date acquired by the Town. PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D4 Town Charter and Colorado State statutes authorize the Town to invest its excess funds in direct U.S. Government treasury and agency securities, bonds and other obligations of states and political subdivisions, corporate bonds, and local government investment pools. Investments are stated at fair value. The change in fair value of investments is recognized as an increase or decrease to investment assets and investment income. Inventories. Inventories are valued at cost using the first-in/first-out (FIFO) method. The costs of any governmental fund inventories are recorded as expenditures when consumed rather than when purchased. Prepaid Items. Payments made to vendors for services that will benefit periods beyond December 31, 2025 are recorded as prepaid items using the consumption method by recording an asset for the prepaid amount and reflecting the expenditure/expense in the year in which the services are consumed. At the fund reporting level, an equal amount of fund balance is reported as non-spendable as this amount is not available for general appropriation. Restricted Assets. Restricted assets in the amount of $505,630 are reported in the Capital Projects Fund, Urban Renewal Fund, and Debt Service Fund. This consists of an escrow account with FirstBank for accumulating funds for asphalt overlay in the Village at Avon pursuant to the Town’s lawsuit settlement agreement with Traer Creek Metropolitan District and the developer, as well as restricted accounts for Urban Renewal projects and Debt Service payments. When both restricted and unrestricted resources are available for use, it is the Town’s policy to use unrestricted resources first, then restricted, as they are needed. Capital Assets. Capital assets, which include property, plant, equipment, and infrastructure assets are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. It is the Town’s policy to capitalize expenditures with a cost greater than $5,000 and an estimated useful life of more than one year. All purchased capital assets are stated at cost or estimated historical cost if actual historical records are not available. Donated capital assets and donated works of art and similar items are recorded at acquisition value at the date of contribution. Major outlays for capital improvement projects are capitalized as projects are completed. Land, public art, water rights, deed restrictions and construction in progress are not depreciated/amortized. Infrastructure consists of streets and roads, bridges, storm drainage, water rights and storage, heat recovery system,irrigation ditches, bike paths, and public parking. The costs of normal maintenance and repair that do not add to the value of the asset or extend the estimated useful life are not capitalized but charged to operations as incurred. Depreciation of property, plant and equipment is computed using the straight-line method over the following estimated useful lives: Buildings 10-50 years Utilities 10-50 years Machinery and Equipment 3-15 years Infrastructure 10-100 years Right-to-Use Leased and Subscription Assets 3-6 years Deferred Outflow/Inflows of Resources. Deferred outflows of resources represent a consumption of net assets that applies to future periods that will not be recognized as an outflow of the resources (expenditure) until the future period. At the end of the current fiscal year, the Town had a deferred outflow of resources for unamortized deferred refunding losses. In the government-wide and proprietary funds statement of net position deferred charge on refunding of debt is the result of the difference between the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the life of the refunding bonds. PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D5 Deferred inflows of resources represent an acquisition of net assets that applies to future periods that will not be recognized as an inflow of resources (revenue) until that time. The Town has one item that qualifies for reporting in this category: unavailable revenue. Unavailable revenue is reported in the government-wide and proprietary fund statement of net position and in the governmental funds balance sheet. The Town reports unavailable revenue from one source: property taxes:unavailable revenue –property taxes is reported in the government-wide and proprietary funds statement of net position and in the governmental funds balance sheet. T hese amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Deferred outflows of resources are presented below the total assets on the government-wide, proprietary, and governmental fund statements. Deferred inflows of resources are presented below the total liabilities on the government-wide, proprietary, and governmental fund statements. Long-term Obligations. In the government-wide and proprietary fund statement of net position long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method, which approximates the interest method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds are reported as debt service expenditures. F. Property Taxes Property taxes are levied by the Town Council. The levy is based on the assessed valuation of property located within the Town as determined by the County Assessor generally as of January 1 of each year. The levy is normally set by December 15 by certification to the County Commissioners. The County Treasurer collects the property taxes during the ensuing calendar year and remits the taxes collected to the Town on a monthly basis. Property taxes are payable in full by April 30, or if in two equal installments, by February 28 and June 15. Delinquent taxpayers are notified in August and generally sales of the tax liens on delinquent properties are held in November or December. Property taxes, net of estimated uncollectible taxes, are recorded as receivable in the year levied and offset to deferred inflows of resources as unavailable revenue since they typically do not meet the availability criterion. G. Compensated Absences It is the Town’s policy to permit employees to accumulate earned but unused personal time off (a combination of vacation and holidays) and sick pay benefits. The Town estimates how much of accrued live is more likely than not to be used or paid out in future periods and recognizes that portion as a liability for compensated absences. The liability for compensated absences is reported as a non-current liability in the government-wide financial statements.The current portion of this liability is estimated based on historical trends. Proprietary funds report the total compensated absence liability in each individual fund at the fund reporting level. Governmental funds report the compensated absence liability at the fund reporting level only if it has matured, for example, as a result of employee resignations and retirements. H. Fund Equity The following fund balance classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used: PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D6 Nonspendable fund balance –amounts that are not in a spendable form (such as inventory or prepaid charges) or are required to be maintained intact; Restricted fund balance –amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation; Committed fund balance –amounts constrained to specific purposes by a government itself, using its highest level of decision-making authority. In Avon’s case this is an ordinance adopted by the Town Council. To be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest-level action to remove or change the constraint; Assigned fund balance –amounts a government intends to use for a specific purpose; intent can be expressed by the governing body or an official or body to which the governing body delegates the authority. As a general rule, assigned fund balances are established through the budget adoption process by the Town Council. Unassigned fund balance –amounts that are available for any purpose; positive amounts are reported only in the general fund. The Town establishes (and modifies or rescinds) fund balance commitments by passage of an ordinance. A f und balance commitment is further indicated in the budget document as a designation or commitment of the fund. Assigned fund balance is established by the Town Council through adoption or amendment of the budget as intended for a specific purpose (such as the purchase of capital assets, construction, debt service, or other purposes). When fund balance resources are available for a specific purpose in more than one classification, it is the Town’s policy to use the most restrictive funds first in the following order: restricted, committed, assigned, and unassigned as they are needed. The Town considers all unassigned fund balances to be “reserves” for future operations or capital replacement as defined within Article X, Section 20 of the Constitution of the State of Colorado (see Note 10). I. Statements of Cash Flows For purposes of the statement of cash flows, the Town considers all highly liquid investments with a maturity when purchased of three months or less and all local government investment pools to be cash equivalents. J.Debt Costs Unamortized premiums and discounts of $88,757 are reflected in noncurrent liabilities. Premiums and discounts are amortized over the remaining lives of the related debt issues using the effective interest method. Note 2. Legal Compliance –Budgets No later than October 15th, the Town Manager submits to the Mayor and Town Council a proposed budget for the calendar year commencing the following January 1st. The budget is prepared by fund, department, program and project and includes information on the prior year, current estimates and requested appropriations and estimated revenues for the upcoming year. The Town Council holds public hearings and may change appropriations except for expenditures required by law for debt service or for estimated cash deficits. No change to the budget may increase the authorized expenditures to any amount greater than the total amount of funds available. The Town Council must adopt the budget by resolution prior to December 15th. Once adopted, the Town Council may at any time, by resolution, amend the budget. In addition, the Town Manager may transfer part or all of any unencumbered appropriation balance among programs within a department. A department is defined by the Town as a distinct, principal,or specialized division (e.g.,the Department of Public Works). PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D7 Expenditures may not legally exceed budgeted appropriations at the fund level. Budgetary comparisons in the accompanying combined financial statements and in the individual fund statements are presented at a lower- than-required level of control to facilitate detailed financial analysis.The General Fund expenditures exceeded budgeted appropriations during 2025. This may be a violation of Colorado budget law. Note 3. Cash and Investments Cash and investments as of December 31, 2025 are classified in the accompanying financial statements as follows: Ca sh and cas h equivalents - u nres tric ted 25,640,514 In ves tments 20,323,933 Re stricted a ssets - c as h and cas h equivalents 505,630 Tot al 46,470,077 Cash and investments as of December 31, 2025, are classified as follows: Petty cas h 5,525 De ma nd depos it s 2,443,798 Ot her d eposit s wit h financial institutions 505,630 Lo cal g overn me nt in vestme nt pools 38,482,389 In vestments 5,032,735 Total 46,470,077 Investments Authorized by the Town of Avon Investment Policy The table below identifies the investment types that are authorized for the Town by the Town’s investment policy. The table also identifies certain provision of the Town’s investment policy that address interest rate risk, credit risk, and concentration of credit risk. Authorized Investment Type Maximum Maturity Maximum Percentage Of Portfolio Maximum Investment In One Issuer U.S. Government Treasury Securities U.S. Government Agency Securities Repurchase Agreements Commercial Paper General Obligation Debt Revenue Obligation Debt Local Government Investment Pools 5 years 5 years 180 days 270 days 5 years 5 years N/A None None None 20% None None None None None None 5% None None None Fair Value of Investments The Town measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows: Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs. PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D8 At December 31, 2025, the Town had the following recurring fair value measurements: To tal Le vel 1 Le vel 2 Le vel 3 U.S. Government Treas ury Se curit ie s 5,032,735 5,032,735 - - Co lo trust Ed ge 15,291,198 15,291,198 - - Total 20,323,933 20,323,933 - - In ve stme nts Measured at Fai r Val ue Fa ir Value M eas uremen ts Us in g Total Co lo trust Plus 23,191,191 In ve stme nts Measured at Net As set Val ue Debt and equity securities classified in Level 1 are valued using prices quoted in active markets for those securities. At December 31, 2025 unrealized gains were $47,682 which reflects changes in the fair market value of investments. Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The investment policy of the Town states that, to the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. Unless matched to a specific cash flow requirement, the Town will not invest in securities maturing more than five years from the date of purchase. In addition, the Town shall maintain at least 15% of its total investment portfolio in investments maturing in 120 days or less. A t least 10% of the portfolio shall be invested in overnight investments or securities that can be sold to raise cash on one day’s notice. Information about the sensitivity of the fair values of the Town’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the Town’s investments by maturity: Weig hted Avera ge Maturit y (in y ears) U.S. Government Treas ury Securit ie s 5,032,735 1.315 Co lo trust Ed ge 15,291,198 N/A 20,323,933 Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating, as required by the Town’s investment policy, for investments of the Town as of December 31, 2025. PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D9 Ratings Standard & Poor’s Investment AAAm AA+ AA+ AA+ AA+ AA+ AA+ Colotrust US Treasury Government National Mortgage Assoc. Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loan Mortgage Corporation Federal National Mortgage Corporation Concentration of Credit Risk Except for commercial paper investments, the investment policy of the Town contains no limitations on the amount that can be invested in any one issuer. Commercial paper issuers are limited to no more than 5% of the Town’s portfolio. The Town had no direct investments in commercial paper at December 31, 2025. The Town did not have any investments in any one issuer (other than U.S. Treasury obligations and local government investment pools) that represented 5% or more of total Town investments. Custodial Credit Risk Deposits. Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the Town would not be able to recover its deposits or would not be able to recover collateral securities that are in the possession of an outside party. The Town’s deposits are entirely covered by federal depository insurance (“FDIC”) or by collateral held under Colorado’s Public Deposit Protection Act (“PDPA”). The FDIC insures the first $250,000 of the Town’s deposits at each financial institution. Deposit balances over $250,000 are collateralized as required by PDPA. The Colorado Public Deposit Protection Act (PDPA) requires that cash be deposited in eligible public depositories and that deposits in excess of federal insurance levels must be collateralized. The eligible collateral is determined by the PDPA. PDPA allows the institution to create a single collateral pool for all public funds with the Town being a named participant in the single institution collateral pool. The minimum pledging requirement is 102% of the uninsured deposits. The Colorado State Banking Board verifies the market value at least monthly. Bank assets (usually securities) are required by PDPA to be delivered to a third-party institution for safekeeping and pledged to the Colorado Division of Banking. Based on the above, the Colorado State Auditor has concluded that there is no custodial risk for public deposits collateralized under PDPA.The carrying amount of the Town’s demand deposits was $3,911,017 at year end. Investments. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, the Town would not be able to recover the value of its investment or collateral securities that are in the possession of another party. The Town’s investment policy provides that all investment securities, except certificates of deposit, local government investment pools, and money market funds purchased by the Town shall be settled on a delivery versus payment basis and will be delivered by either book entry or physical delivery and will be held in third-party safekeeping by the Town’s approved custodian bank, its correspondent bank or the Depository Trust Company. An approved Safekeeping Agreement must be executed with each custodian bank prior to utilizing that bank’s safekeeping services. PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D10 Local Government Investment Pools Local government investment pools are trusts established for local government entities in Colorado to pool surplus funds. The State Securities Commissioner administers and enforces all State statutes governing the trusts. A designated custodial bank serves as custodian pursuant to a custodian agreement. The custodian acts as safekeeping agent for the trusts’ investment portfolios and provides services as the depository in connection with direct investments and withdrawals. The custodian's internal records segregate investments owned by the trusts. The Town of Avon invests its surplus funds in the Colorado Local Government Liquid Asset Trust’s Colotrust Plus+and Colotrust Edge funds. The Plus+fund may invest in U.S. Treasury securities and repurchase agreements collateralized by U.S. Treasury securities as well as in certain obligations of U.S. government agencies, highest rated commercial paper and repurchase agreements collateralized by certain obligations of U.S. government agencies. The Plus+fund is a stable $1.00 net asset value (NAV) fund that offers daily liquidity. At December 31, 2025, the Town’s investment in Colotrust Plus+was 49.91%of the Town’s investment portfolio. The Edge fund is an enhanced cash, variable rate NAV fund that is managed to approximate a $10.00 per share and offers weekly liquidity. As of December 31, 2025, the Town’s investment in Colotrust Edge was 39.74%of the Town’s investment portfolio. THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D11 Note 4. Capital Assets Capital asset activity for the year ended December 31, 2025 was as follows: 01/01/25 12/31/25 Ba la nce In creas es De creas es Ba la nce Gove rnme ntal Acti vi ti es : Capital assets n ot being depreciated: La nd and la nd improvements 11,953,790 - - 11,953,790 Pu blic art 1,391,400 - - 1,391,400 Water rights 1,792,959 - - 1,792,959 Deed restrictions 3,339,670 2,162,435 - 5,502,105 Co nstruction in pro gres s 9,601,846 11,626,352 (5,661,065) 15,567,133 To tal capital assets n ot being depreciated:28,079,665 13,788,787 (5,661,065) 36,207,387 Capital assets b eing depreciated: Depreciable la nd improvements 505,242 - - 505,242 Bu ild in gs 30,411,000 13,554,617 - 43,965,617 Ut ilit ie s 4,823,613 - - 4,823,613 Machinery and equip me nt 11,063,990 1,448,669 (83,087) 12,429,572 In fra stru cture 99,044,187 - - 99,044,187 Rig ht-t o-use le ase as set - e quipment 311,268 - - 311,268 Su bscrip tion as set 101,475 - - 101,475 To tal capital assets b eing depreciated:146,260,775 15,003,286 (83,087) 161,180,974 Less accumulated depreciation: Depreciable la nd improvements (239,337) (15,719) - (255,056) Bu ild in gs (14,694,648) (1,272,339) - (15,966,987) Ut ilit ie s (3,041,974) (230,411) - (3,272,385) Machinery and equip me nt (5,480,933) (1,129,943) 75,987 (6,534,889) In fra stru cture (67,299,969) (2,762,784) - (70,062,753) Rig ht-t o-use le ase as set - e quipment (185,158) (56,349) - (241,507) Su bscrip tion as set (85,218) (16,257) - (101,475) To tal accumulated depreciation:(91,027,237) (5,483,802) 75,987 (96,435,052) To tal capital assets b eing depreciated, n et 55,233,538 9,519,484 (7,100) 64,745,922 Go vern me ntal capital assets, n et 83,313,203 23,308,271 (5,668,165) 100,953,309 PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D12 01/01/25 12/31/25 Ba la nce In creas es De creas es Ba la nce Busine ss-type Ac ti vi ti es : Capital assets n ot being depreciated: La nd and la nd improvements 411,834 - - 411,834 To tal capital assets n ot being deprecia ted:411,834 - - 411,834 Capital assets b eing depreciated: Bu ild in gs 17,360,232 - - 17,360,232 Machinery and equip me nt 6,711,415 262,391 - 6,973,806 To tal capital assets b eing deprecia ted:24,071,647 262,391 - 24,334,038 Le ss accumulated depreciation: Bu ild in gs (7,499,808) (436,637) - (7,936,445) Machinery and equip me nt (3,029,855) (429,231) - (3,459,086) To tal accumulated depreciation:(10,529,663) (865,868) - (11,395,531) To tal capital assets b eing deprecia ted, net 13,541,984 (603,477) - 12,938,507 Bu si ness-type capital assets, n et 13,953,818 (603,477) - 13,350,341 Depreciation/amortization expense was charged to functions/programs of the Town as follows: Gove rnme ntal activities : Ge neral g overnment 676,461 Pu blic s afety 370,973 Pu blic wo rks a nd utilitie s, in cluding general in fra stru cture as sets 3,760,085 Re creation 676,283 Total depreciati on/amor ti zati on expe ns e - g overnme ntal activities 5,483,802 Busine ss-type ac ti vi ti es : Trans portation 717,312 Fleet ma in tenance 148,556 Total depreciati on e xpense, bu siness type ac ti vi ti es :865,868 PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D13 Note 5. Leases Town as lessor: The Town leases a building to Walgreens at an annual interest rate of 4.40%. At the commencement of a lease, the Town initially measures the lease receivable and corresponding deferred inflows of resources at the present value of payments expected to be made during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments made and the deferred inflow of resources is amortized on a consistent basis over the life of the lease. Key estimates and judgments related to leases include how the Town determines the following: Discount Rate: The Town uses the interest rate charged on its related certificates of participation as the discount rate to discount the expected lease payments to present value. Lease Term: The lease term includes the noncancellable period of the lease and extended term(s) that the Town and Lessee is reasonably certain to exercise. Lease Payments: Lease payments included in the measurement of the lease receivable are composed of fixed payments. The Town monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. Changes in the Town’s leases receivable consisted of the following for the year ended December 31, 2025: 01/01/25 12/31/25 Du e Within Ba la nce In creas es De creas es Ba la nce On e Ye ar Go ve rnme ntal Ac ti vi ti es : Le as es Receivable - 3,836,692 (74,838) 3,761,854 250,074 To tal - 3,836,692 (74,838) 3,761,854 250,074 The Town recognized the following lease revenues during 2025: Ge nera l Fund Le ase re venues : Prin cipal 74,838 In teres t 27,810 Va ria ble 3,150 Total 105,798 PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D14 Future minimum payments due under the term of the lease are as follows: Ye ar Ended December 31,Prin cipal In teres t Total 2026 250,074 160,518 410,592 2027 261,301 149,291 410,592 2028 273,033 137,559 410,592 2029 285,292 125,300 410,592 2030 298,101 112,491 410,592 2031-2035 1,703,700 349,260 2,052,960 2036-2037 690,353 28,184 718,537 3,761,854 1,062,603 4,824,457 Town as lessee: The Town is lessee for noncancellable leases of various equipment. The Town recognizes a lease liability and an intangible right-to-use lease asset. The Town recognizes lease liabilities with an initial, individual value of $5,000 or more. At the commencement of a lease, the Town initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to leases include how the Town determines the following: Discount Rate: The Town uses the interest rate charged by the lessor as the discount rate to discount the expected lease payments to present value. When the interest rate charged by the lessor is not provided, the Town uses its incremental rate of borrowing. Lease Term: The lease term includes the noncancellable period of the lease and extended term(s) that the Town is reasonably certain to exercise. Lease Payments: Lease payments included in the measurement of the lease liability are composed of fixed payments along with purchase options that the Town is reasonably certain to exercise. The Town monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the Statement of Net Position. During the year ended December 31, 2025, the Town did not enter into any new long-term lease agreement as the lessee for the acquisition and use of equipment. The Town has two governmental leases outstanding for Police Department body cameras and in-car cameras. As of December 31, 2025, the value of the lease liabilities were $61,092. The Town is required to make annual principal and interest payments ranging from $29,888 to $32,112. The Town’s outstanding leases have interest rates of 0.69%to 2.37%. The value of the right-to-use lease assets as of the end of the current fiscal year were $311,268 and had accumulated amortization of $241,507. The future principal and interest payments as of December 31, 2025, were as follows: PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D15 Ye ar Ended De cember 31,Prin cipal In terest Total 2026 61,092 910 62,002 61,092 910 62,002 Go vern me ntal A ctivities Note 6. Subscription-Based Information Technology Arrangements Subscription Assets. T he Town is lessee for noncancellable leases of various subscription-based IT arrangements (“SBITA’s”). The Town recognizes a lease liability and an intangible right-to-use lease asset. The Town recognizes lease liabilities with an initial, individual value of $5,000 or more. At the commencement of a lease, the Town initially measures the subscription liability at the present value of payments expected to be made during the lease term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. The subscription asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight-line basis over its useful life. Key estimates and judgments related to subscriptions include how the Town determines the following: Discount Rate: The Town uses the interest rate charged by the lessor as the discount rate to discount the expected lease payments to present value. When the interest rate charged by the lessor is not provided, the Town uses its incremental rate of borrowing. Subscription Term: The Subscription term includes the noncancellable period of the subscription and extended term(s) that the Town is reasonably certain to exercise. Subscription Payments: Subscription payments included in the measurement of the subscription liability are composed of fixed payments along with purchase options that the Town is reasonably certain to exercise. The Town monitors changes in circumstances that would require a remeasurement of its subscription and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability. Subscription assets are reported with other capital assets and subscription liabilities are reported with long-term debt on the Statement of Net Position. During the year ended December 31, 2025, the Town did not enter into any new subscription arrangements. As of December 31, 2025, the value of the subscription liabilities was $0. The value of the right-to-use subscription assets as of the end of the current fiscal year was $101,475 and had accumulated amortization of $101,475. The Town has no future principal and interest payments as of December 31, 2025 for any of its SBITA’s. Note 7. Long-term Debt Revenue Bonds and Loans –Avon Urban Renewal Authority. In 2013, the Avon Urban Renewal Authority issued Series 2013 Tax Increment Revenue Bonds to refinance outstanding obligations of the Authority and to finance certain capital improvements. In 2017, the Avon Urban Renewal Authority issued Series 2017 Tax Increment Revenue Bonds to finance tenant improvements related to the future occupancy of a new Town Hall. In 2020, the Avon Urban Renewal Authority issued its Series 2020 Tax Increment Revenue Refunding Loan in the amount of $4,111,000 with an interest rate of 2.11%. This loan along with the release of the Series 2013 debt service reserve of $628,240 was used to refund the outstanding Series 2013 Tax Increment Revenue Bonds in the aggregate principal amount of $4,560,000. The refunding resulted in an economic gain of $176,403 with a cash flow savings of $883,089. PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D16 The 2017 Bonds and the 2020 Loan constitute a pledge of, and an irrevocable first lien (but not an exclusive first lien), on all pledged revenues.Pledged revenues include the portion of the ad valorem proprietary taxes produced by the levies at the rates fixed each year by the governing bodies of the various taxing jurisdictions within the Urban Renewal Project Area.The levies are assessed upon that portion of the valuation for assessment of all taxable property in excess of a defined property tax base amount.The pledged revenues are reduced by a) any County collection fee (b) tax increment revenues required to be remitted by the Authority to the Confluence Metropolitan District pursuant to the Avon Station/Confluence IGA; and (c) ad valorem property taxes produced by a mill levy of any special district formed after May 28, 2009. Revenue bonds and loans outstanding at December 31, 2025, are as follows: Pu rp ose In teres t Ra tes Amount Ge nera l Govern me nt - A von Urb an Re newa l A uthorit y 2.11% - 2.90%2,795,528 Annual debt service requirements to maturity for revenue bonds outstanding at December 31, 2025, are as follows: Ye ar Ended December 31,Prin cipal In teres t Total 2026 679,762 68,705 748,467 2027 695,974 52,575 748,549 2028 712,372 36,050 748,422 2029 228,958 19,124 248,082 2030 235,740 12,343 248,083 2031 242,722 5,361 248,083 2,795,528 194,158 2,989,686 Avon Urb an Re newa l Authorit y Certificates of Participation. On November 16, 2010, the Town issued $6,680,000 of Series 2010 Certificates of Participation with interest rates of 2% to 5%. The Certificates evidence a proportionate interest in the base rentals and other revenues under an annually renewable lease purchase agreement dated as of November 1, 2010, between UMB Bank, solely in its capacity as trustee under the Indenture, as lessor,and the Town of Avon, as lessee. These Certificates were used to refund the outstanding 1998 Certificates of Participation in the aggregate principal amount of $3,990,000. The refunding resulted in an economic gain of $43,298 with a cash flow savings of $904,642. The remaining funds from the 2010 Certificates were used as matching funds for the construction of the Avon Regional Transit Facility, which was completed and placed into service in October 2013. On January 14, 2015, the Town issued $3,800,000 of Series 2014B Certificates of Participation with an interest rate of 3.03% to finance the cost of street improvements. The Certificates evidence a proportionate interest in the base rentals and other revenues under an annually renewable lease purchase agreement dated as of January 14, 2015, between UMB Bank, N.A., solely in its capacity as trustee under the Indenture, as lessor, and the Town of Avon, as lessee. On May 3, 2016, the Town held a special election concerning the financing for a joint public safety facility in partnership with the Eagle River Fire Protection District. The election was successful and on August 2, 2016, the Town issued $6,300,000 of Series 2016 Certificates of Participation with interest rates of 2% to 4%. The Certificates evidence a proportionate interest in the base rentals and other revenues under an annually renewable lease purchase agreement dated as of August 2, 2016, between UMB Bank, N.A., solely in its capacity as trustee under the Indenture, as lessor, and the Town of Avon, as lessee. On September 2, 2020, the Town issued $3,983,000 of Series 2020 Certificates of Participation with an interest rate of 1.23%. These Certificates, along with the release of the Series 2010 debt service reserve of $508,700 were used to refund the outstanding 2010 Certificates of Participation in the aggregate principal amount of PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D17 $4,300,000. The refunding resulted in an economic gain of $640,454 with a cash flow savings of $1,227,703. The Certificates evidence a proportionate interest in the base rentals and other revenues under an annually renewable lease purchase agreement dated as of September 2, 2020, between UMB Bank, solely in its capacity as trustee under the Indenture, as lessor, and the Town of Avon, as lessee. On September 24, 2025, the Town issued $5,890,000 of Series 2025 Certificates of Participation with interest rates of 4.40% to 6.00%. These Certificates were used to fund the purchase of a building within the Town’s limits. The Certificates evidence a proportionate interest in the base rentals and other revenues under an annually renewable lease purchase agreement dated as of September 24, 2025, between UMB Bank, N.A., solely in its capacity as trustee under the Indenture, as lessor, and the Town of Avon, as lessee. Certificates of Participation outstanding at December 31, 2025, are as follows: Pu rp ose In teres t Ra tes Amount Ge nera l Govern me nt - Refunding and Ca pital 1.23% - 4.0%12,696,000 Annual debt service requirements to maturity for Certificates of Participation outstanding at December 31, 2025, are as follows: Ye ar Ended De cember 31,Prin cipal In teres t Total Principal In teres t Total 2026 914,000 540,222 1,454,222 184,000 11,611 195,611 2027 992,000 464,101 1,456,101 187,000 9,348 196,348 2028 1,025,000 431,326 1,456,326 189,000 7,048 196,048 2029 1,057,000 397,190 1,454,190 191,000 4,723 195,723 2030 774,000 361,867 1,135,867 193,000 2,374 195,374 2031-2035 3,280,000 1,447,857 4,727,857 - - - 2036-2041 1,975,000 1,032,950 3,007,950 - - - 2042-2045 1,735,000 268,200 2,003,200 - - - 11,752,000 4,943,714 16,695,714 944,000 35,104 979,104 Go vern me ntal A ctivities Bu siness-Type Activities THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D18 Changes in Long-term Liabilities. Long-term liability activity for the year ended December 31, 2025, was as follows: 01/01/25 12/31/25 Du e Within Ba la nce In creas es De creas es Ba la nce On e Ye ar Go ve rnme ntal Ac ti vi ti es: Bonds Pa yable: Re venue Bonds 3,460,256 - (664,728) 2,795,528 679,762 Ce rt ific ates o f Part icip ation 6,632,000 5,890,000 (770,000) 11,752,000 914,000 Bo nd Dis counts - (91,606) - (91,606) - Bo nd Pre mi ums 195,712 - (15,349) 180,363 - To tal Bonds Pa yable 10,287,968 5,798,394 (1,450,077) 14,636,285 1,593,762 Le ases Pa yable 119,989 - (58,897) 61,092 61,092 Su bscrip tion Liabilit ie s 12,074 - (12,074) - - Co mp ensated Absences *703,066 405,682 - 1,108,748 277,187 To tal Lo ng-term Li abilities 11,123,097 6,204,076 (1,521,048) 15,806,125 1,932,041 Business-Type Acti vi ti es : Bo nds Pa yable: Ce rt ific ates o f Part icip ation 1,124,000 - (180,000) 944,000 184,000 To tal Bonds Pa yable 1,124,000 - (180,000) 944,000 184,000 Le as es Pa yable 40,723 - (40,723) - - Co mp ens ated Absences *52,535 85,210 - 137,745 34,436 To tal Lo ng-term Li abilities 1,217,258 85,210 (220,723) 1,081,745 218,436 *The change in compensated absences is presented as a net change. The compensated absence liability will be paid from the following funds from which the employees’ salaries are paid: General Fund, Water Fund, Mobility Fund, and Fleet Maintenance Fund.The Town issued Series 2025 Certificates of Participation to fund the purchase of a building. All regular principal and interest payments were made on bonded debt and leases. Conduit Debt Obligations. In prior years, the Town has sponsored the issuance of revenue bonds to provide financial assistance to private-sector entities for the acquisition and construction of facilities deemed to be in the public interest. Eaglebend Dowd Affordable Housing Corporation. The Eaglebend Dowd Affordable Housing Corporation (Dowd) was formed on March 24, 1998, to help provide affordable housing within Eagle County. D owd operates a 50-unit apartment project within Eagle County. The Town approved the formation and the issuance of the revenue bonds to finance the project and will obtain full legal title to the land, buildings,and equipment upon payment in full of the bonds. In 2003, the Town approved the issuance by Dowd of $9,520,000 in Series 2003 Refunding Revenue Bonds to defease the outstanding Series 1998A Revenue Bonds by placing the proceeds of the Series 2003 bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. In August 2013, Dowd issued $8,450,000 in Series 2013 Multifamily Housing Project Refunding Revenue Bonds to refund the Series 2003 Bonds. In November 2014, Dowd issued $8,850,000 of Multifamily Housing Project Refunding Revenue Bonds, Series 2014A to refund and defease the Series 2013 bonds. In November, 2022 the Public Finance Authority (“PFA”) issued Series 2022 Refunding Revenue Bonds in the amount of $13,000,000 to refund and defease all the outstanding Series 2014A Multifamily Refunding Revenue Bonds and Series 1998 B&C Subordinate PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D19 Revenue Bonds, and the finance a portion of the costs to complete project improvements to the project. The bonds are special limited obligations of Dowd and are payable solely from payments made by Dowd pursuant to the financing agreement. The bond holders have a lien on the assets of the project. The bonds do not constitute an obligation or liability of the State of Colorado, the Town, or any other political subdivision of the State of Colorado. Accordingly, the PFA issued Series 2022 Refunding Revenue Bonds do not constitute conduit debt of the Town, nor are the bonds reported as liabilities in the accompanying general purpose financial statements. As of December 31, 2025, the Town has no conduit debt obligations outstanding. Defeased Debt. Certain other bonds previously issued by the Town have been defeased by the issuance of refunding bonds. As of December 31, 2025, there are no amounts outstanding on any refunded bonds. Note 8. Employee Retirement Plans Full-time Employees. The Town maintains two single-employer, defined contribution pension plans for full- time employees: (1) the Town of Avon Police Officers Money Purchase Pension Plan of which there are 37 participants, and (2) the Town of Avon General Employee Money Purchase Pension Plan of which there are 175 participants as of December 31, 2025.Plan administration and recordkeeping of these plans is provided by The Principal Financial Group. A defined contribution pension plan has terms that specify how contributions to an individual’s account are to be determined rather than the amount of pension benefits the individual is to receive. In a defined contribution plan, the pension benefits a participant will receive depend only on the amount contributed to the participant’s account, earnings on investments of those contributions, and forfeitures of other participant’s benefits that may be allocated to the participant’s account. All full-time employees are required to participate in one of the above retirement plans upon employment with the Town. T he type of plan that an employee participates in is dependent on the type of employee (police officer or general government employee). Town ordinance provides that both the employee and the Town will contribute an amount equal to 11% of the employee’s base salary each month. Employees hired prior to September 30, 1990, become vested in accordance with a vesting schedule which is dependent on the type of employee and hire date. All employees hired after September 30, 1990, start partial vesting after two years of service and are fully vested after five years of service. In addition, if an employee reaches normal retirement age, dies, or becomes totally and permanently disabled his account becomes fully vested regardless of length of service. F orfeitures by employees who leave employment before being fully vested are applied, first, to offset administrative expenses of the plans, and second, to reduce matching employer contributions. Forfeitures totaling $84,937 were used in 2025 for administrative expenses. No forfeitures were used to reduce matching employer contributions. Contributions made by employees and the Town for the three years ended December 31, 2025, are as follows: 2025 2024 2023 Emp lo yee Co ntrib utions 1,232,583 1,144,314 1,038,814 Town Contrib utions 1,232,583 1,144,314 1,038,814 Both the Town and the covered employees each made the required 11% contributions to the plans. There are no liabilities for benefits beyond the Town’s matching payments. No changes in the various plan’s provisions occurred in 2025. Part-time, Temporary and Seasonal Employees. On October 14, 1997, the Town adopted a PTS Retirement Plan administered by the ICMA Retirement Corporation and established under Section 457 of the Internal Revenue PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D20 Code that pertains to deferred compensation plans. Plan administration and recordkeeping of this plans was transferred to The Principal Financial Group in November 2017. The PTS plan is designed specifically for employees who are part-time, temporary, or seasonal, and is defined as a Social Security replacement retirement plan. The PTS plan allows participants to defer federal and state income taxes on savings until retirement. The PTS plan requires a minimum contribution of 7.5% of an employee’s salary per plan year. This 7.5% may be the employee’s contribution, the employer’s contribution,or a combination of both. The Town elected to have 3.75% contributed by the employee and 3.75% matched by the Town. Employees also have the option to contribute additional amounts. Upon separation of service, participants may withdraw the account balance in a lump-sum payment, roll the account balance over into another 457 plan, or continue to allow the account balance earn interest tax free. T axes are paid when funds are withdrawn from the plan. Contributions made by plan members and the Town for the three years ended December 31, 2025, are as follows: 2025 2024 2023 Emp lo yee Co ntrib utions 74,683 59,945 51,231 To wn Contrib utions 62,901 54,823 46,412 Both the Town and the covered employees each made the required 3.75% contributions to the plan. There are no liabilities for benefits beyond the Town’s matching payments.As of December 31, 2025,there were 397 participants in this plan. Note 9. 457 Deferred Compensation Plan The Town offers its full-time employees an optional supplemental deferred compensation plan created in accordance with Internal Revenue Code Section 457. Plan administration and recordkeeping is provided by The Principal Financial Group. The 457 plan allows eligible participants the opportunity to accumulate additional retirement savings with certain tax advantages. Deposits into the 457 plan are not subject to state or federal income taxes at the time of deposit, and earnings on these deposits are deferred until withdrawn. A s of December 31, 2025,there were 52 participants in the 457 plan. Note 10. Employee Health Care The Town has a self-insurance plan for employee health and dental care. A third-party administrator processes individual employee claims and negotiates excess stop-loss insurance policies. Excess stop-loss insurance policies are purchased to cover individual claims in excess of $40,000 and aggregate total yearly claims in excess of $2,268,696. Settled benefit claims did not exceed the aggregate total yearly claims for 2025. As of December 31, 2025, the Town held reserves for future claims in the amount of $1,651,011. The following represents the changes in the claims reserve for the Town for 2025 and 2024: 2025 2024 Cla ims Re serv e fo r Fu ture Cla ims, Begin ning of Year 1,632,128 1,562,530 Cu rrent Ye ar Depos it s fo r Estima ted Cla ims 2,360,054 2,491,958 Excess St op Lo ss Re fu nds fo r Sp ecific (In dividual) Cla ims 1,288,231 712,251 Cla im Payments (3,629,402) (3,134,611) Cla ims Re serv e fo r Fu ture Cla ims, End of Year 1,651,011 1,632,128 PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D21 Note 11. Interfund Receivables, Payables and Transfers Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are reported in the fund financial statements as “due to/from other funds”. T hese interfund receivables and payables are expected to be repaid within the next year. The composition of these interfund balances as of December 31, 2025, is as follows: Re ceivable Fu nd Pa yable Fu nd Amount Ge neral Fu nd Fle et Maintenance Fu nd 100,000 Interfund Transfers for the year ended December 31, 2025, consisted of the following: Fu nd Transfers In Tran sfers Ou t Major Fu nds: Ge nera l Fu nd 657,747 4,190,000 Urb an Renewal A uthorit y Fu nd - 1,750,000 De bt Serv ic e Fu nd 960,756 - Ca pital Pro je cts Fund 5,226,000 3,169,289 Mobilit y En terpris e 1,700,000 - Fle et Maintenance En terpris e 433,825 - Eq uipment Re placement Fu nd 135,000 425,000 Ot her Fu nds: Co mmu nity En hancement - 361,000 Co mmu nity Ho us in g Fu nd 781,961 - Total 9,895,289 9,895,289 Transfers are used to (1) move unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations, (2) segregate money for anticipated capital projects, (3) provide additional resources for current operations or debt service, and (4) return money from the fund from which it was originally provided once a project is completed. All transfers in 2025 occurred for one of the above reasons. During the year,capital assets purchased in 2025 related to governmental funds, with book values of $134,811 were transferred to the internal service fund. No amounts were reported in the governmental funds as the amounts did not involve the transfer of financial resources. However, the internal service fund reported contributed capital in for the capital resources received. Note 12. Commitments and Contingencies Litigation. The Town is a party to various legal proceedings. Town management believes ultimate disposition of those subsequent pending claims and legal proceedings will not likely have a material adverse effect, if any, on the financial condition of the Town. PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D22 Construction Contract Commitments. As of December 31, 2025,the Town had the following construction contract commitments outstanding: Pro je ct Ve ndor Co mmi tment Co mp le ted Re ma in in g US 6 Sa fety Improveme nts JARCCO Co nstruction 4,221,688 (3,303,912) 917,776 PW Garage/ARTF Up grades Ba ke r Build ers 4,647,743 (2,315,140) 2,332,603 No ttingham Pa rk Improvements Ba ke r Build ers 4,057,627 (2,950,984) 1,106,643 Avon Ro ad Cr os swalk Improvements Morton Ele ctric 1,023,868 (465,497) 558,371 Ea glebend Pa rk Up grades R&M Ge neral Contractors 724,838 (667,163) 57,675 Total s 14,675,764 (9 ,702,696) 4,973,068 Intergovernmental Agreement. The Town has entered into an Intergovernmental Agreement (IGA) with the Eagle River Fire Protection District (Fire District) for the ownership, construction, operation, and maintenance of a joint fire-police station facility. The IGA provides for many covenants and mutual agreements including the amendment and replacement of previous IGAs, conveyance of the real property interest, construction financing, waiver of building permit fees, construction, apportionment of costs, termination of existing leases, use and occupancy, and operation and maintenance of the joint public safety facility. The IGA continues in perpetuity until amended or terminated by either party. Tax, Spending and Debt Limitations. Article X, Section 20 of the Colorado Constitution, commonly known as the Taxpayer’s Bill of Rights (TABOR) contains tax, spending, revenue,and debt limitations which apply to the State of Colorado and all local governments. Spending and revenue limits are determined based on the prior year’s Fiscal Year Spending adjusted for allowable increases based upon inflation and local growth. Fiscal Year Spending is generally defined as expenditures plus reserve increases with certain exceptions. Revenue in excess of the Fiscal Year Spending limit must be refunded unless the voters approve retention of such revenue. In November 1997, voters within the Town passed a ballot issue which permanently authorizes the Town, without an election, to act on all spending and revenue raising measures which are limited by TABOR. In addition, voters authorized the Town to keep and spend all revenue collected by the Town regardless of any limitation contained in TABOR. The only exceptions are proposed sales or use tax rate increases and property tax rate increases which must be submitted to the voters, unless otherwise allowed by law. Enterprises, defined as government-owned business authorized to issue revenue bonds and receiving less than 10 percent of annual revenue in grants from all state and local governments combined, are excluded from the provisions of TABOR. TABOR also requires local governments to establish Emergency Reserves. These reserves must be at least 3% of Fiscal Year Spending (excluding bonded debt service). Local governments are not allowed to use the emergency reserves to compensate for economic conditions, revenue shortfalls, or salary or benefit increases. The Town has established an emergency reserve in the General Fund for the year ended December 31, 2025 in the amount of $1,282,000 and an emergency reserve in the Mobility Fund for the year ended December 31, 2025 in the amount of $85,000. Town management believes it is in compliance with the provisions of TABOR. However, TABOR is complex and subject to interpretation. M any of the provisions, including the interpretation of how to calculate Fiscal Year Spending limits will require judicial interpretation. PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D23 Note 13. Risk Management The Town is exposed to various risks of loss related to torts; thefts of, damage to, and destruction of assets; errors or omissions; injuries to employees; and natural disasters. The Town is a member of the Colorado Intergovernmental Risk Sharing Agency (CIRSA). CIRSA is a joint self-insurance pool created by intergovernmental agreement of 250+municipalities and special districts to provide property, general and automobile liability and public officials coverage to its members. CIRSA is governed by a seven-member Board elected by and from its members. Coverage is provided through pooling of self-insured losses and the purchase of excess insurance coverage. CIRSA has a legal obligation for claims against its members to the extent that funds are available in its annually established loss fund and that amounts are available from insurance providers under excess specific and aggregate insurance contracts. Losses incurred in excess of loss funds and amounts recoverable from excess insurance are direct liabilities of the participating members. CIRSA has indicated that the amount of any excess losses would be billed to members in proportion to their contributions in the year such excess occurs, although it is not legally required to do so. The Town has not been informed of any excess losses that may have been incurred by the pool. The Town continues to carry commercial insurance coverage for other risks of loss including workers compensation. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years. Note 14. Upper Eagle Regional Water Authority The Town is a participant in the Upper Eagle Regional Water Authority. The Authority was formed pursuant to an establishing contract on September 18, 1984, by the following municipal and quasi-municipal corporations (Members) located in Eagle County, Colorado. Arrowhead Metropolitan District Beaver Creek Metropolitan District Berry Creek Metropolitan District Eagle-Vail Metropolitan District Edwards Metropolitan District Town of Avon The Authority also provides water services to the Cordillera and Bachelor Gulch developments through contracts with Members. The Authority was formed to make the best practicable use of the Members’joint resources in supplying water to the members and to further develop water resources and facilities in Eagle County. The Authority may not be terminated so long as bonds, notes or other obligations are outstanding, unless provision for full payment of such obligations has been made. At December 31, 2025, the Authority had debt with maturities through the year 2053. The Town has a service contract with the Authority whereby the Authority provides and bills residents of the Town with water at a rate which is expected to cover its costs in providing water services and other functions. Such costs specifically include debt service requirements, depreciation, and operations and maintenance, including maintenance of the Town’s water distribution system. As part of the agreement, the Town conveyed its water distributions facilities and leased its water rights, associated easements,and improvements to the Authority at no cost. In consideration, the Authority has agreed to maintain the associated improvements and to administer and protect the Town’s plan for augmentation and water decrees at no cost. During 2025, the Authority collected $174,115 in water surcharges for the Town. PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025 D24 Note 15. Tax Abatements The Town has entered into various agreements in order to meet development goals within certain areas of the Town. The following areas have continuing development requirements or abatement agreements requiring disclosure. Development Area Revenues Impacted Governing Document Amount Requirements Village at Avon PUD Sales Tax, Accommodation Tax, Real Estate Transfer Tax Consolidated, Amended and Restated Annexation and Development Agreement $6,844,131 100% tax credit against sales, accommodations and real estate transfer taxes paid within the development area. Riverfront PUD Property Tax Increment Intergovernmental Agreement $891,201 100% tax rebate of incremental property taxes received from Avon Station Metropolitan District, excluding Lot B. Note 16. Major Taxpayers For the year ended December 31, 2025,approximately fifty-eight percent (58%)of the Town’s sales tax revenues were received from the ten highest-paying companies. PRELIMINARY DRAFT TOWN OF AVON, COLORADO REQUIRED SUPPLEMENTARY INFORMATION GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2025 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes 21,040,289 21,040,289 21,201,133 160,844 Licenses and Permits 459,175 459,175 659,540 200,365 Intergovernmental 1,526,455 1,526,455 1,577,839 51,384 Charges for Services 2,090,036 2,156,896 2,265,658 108,762 Fines and Forfeitures 52,200 52,200 90,000 37,800 Investment Earnings 1,500,000 1,500,000 1,699,607 199,607 Leases --74,838 74,838 Other Revenues 487,000 487,000 512,292 25,292 Total Revenues 27,155,155 27,222,015 28,080,907 858,892 Expenditures Current: General Government 7,446,515 7,525,632 15,722,486 (8,196,854) Community Development 996,415 998,765 1,027,304 (28,539) Public Safety 6,421,940 6,486,348 6,591,686 (105,338) Public Works 8,374,152 8,575,679 8,178,760 396,919 Recreation 3,205,348 3,205,348 3,037,376 167,972 Debt Service: Principal --70,971 (70,971) Interest --1,027 (1,027) Fiscal Charges --38,285 (38,285) Total Expenditures 26,444,370 26,791,772 34,667,895 (7,765,840) Excess (Deficiency) of Revenues Over (Under) Expenditures 710,785 430,243 (6,586,988) (6,906,948) Other Financing Sources (Uses) Debt Issuance --5,890,000 5,890,000 Discount on Debt Issuance --(91,606) (91,606) Transfers In 657,747 657,747 657,747 - Transfers Out (1,500,000) (4,190,000) (4,190,000) - Total Other Financing Sources (Uses)(842,253) (3,532,253) 2,266,141 5,798,394 Net Change in Fund Balances (131,468) (3,102,010) (4,320,847) (1,108,554) Fund Balances, Beginning of Year 24,840,837 24,840,837 24,840,837 - Fund Balances, End of year 24,709,369 21,738,827 20,519,990 (1,108,554) Budgeted Amounts See the accompanying notes to RSI. E1 PRELIMINARY DRAFT TOWN OF AVON, COLORADO REQUIRED SUPPLEMENTARY INFORMATION AVON URBAN RENEWAL AUTHORITY FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2025 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes 2,912,197 2,912,197 2,697,003 (215,194) Investment Earnings - - 2,188 2,188 Total Revenues 2,912,197 2,912,197 2,699,191 (213,006) Expenditures Current: General Government 103,000 103,000 80,833 22,167 Debt Service: Principal 664,728 664,728 664,728 - Interest 84,466 84,466 84,466 - Fiscal Charges 1,000 1,000 400 600 Total Expenditures 853,194 853,194 830,427 22,767 Excess (Deficiency) of Revenues Over (Under) Expenditures 2,059,003 2,059,003 1,868,764 (190,239) Other Financing Sources (Uses) Transfers Out (1,750,000) (1,750,000) (1,750,000) - Net Change in Fund Balances 309,003 309,003 118,764 (190,239) Fund Balances, Beginning of Year 190,257 190,257 190,257 - Fund Balances, End of year 499,260 499,260 309,021 (190,239) Budgeted Amounts See the accompanying notes to RSI. E2 PRELIMINARY DRAFT TOWN OF AVON, COLORADO NOTES TO REQUIRED SUPPLEMENTAL INFORMATION DECEMBER 31, 2025 Note 1. Budgetary Information An annual budget is legally adopted on a basis consistent with generally accepted accounting principles for all funds, with the exception of proprietary funds which are budgeted on the modified accrual basis of accounting. Appropriations lapse at fiscal year-end except for capital projects and special revenue funds which may have project-length budgets that carryover from year-to-year. However, as a matter of practice, the Town adopts annual budgets for all funds. The budget is prepared by fund, department, program, object and project. Expenditures may not legally exceed budgeted appropriations at the fund level. The Town Council holds public hearings and may change appropriations except for expenditures required by law for debt service or for estimated cash deficits. No change to the budget may increase the authorized expenditures to any amount greater than the total amount of funds available. The Town Council must adopt the budget by resolution prior to December 15th. Once adopted, the Town Council may at any time, by resolution, amend the budget. In addition, the Town Manager may transfer part or all of any unencumbered appropriation balance among programs within a department. A department is defined by the Town as a distinct, principal or specialized division (e.g., the Department of Public Works). E3 PRELIMINARY DRAFT NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Community Enhancement Fund – This fund is used to account for revenues received from a franchisee and restricted for use for beautification projects, energy conservation projects, equipment and technology upgrades for schools, scholarship funds, acquisition of open space and/or park land and development thereof, sponsorship of special community events, and undergrounding of overhead electric and other utility lines. Water Fund – This fund is used to account for the cost of maintaining certain water-related assets and for the receipt of water surcharges and tap fees within the Town limits. Community Housing Fund – This fund is used to accumulate and account for resources received and restricted for use in the Town’s community housing program. Downtown Development Authority Fund – This fund is used to account for the receipt of tax increment revenues and the activities of redevelopment that are undertaken by the Avon Downtown Development Authority, including issuing debt and undertaking community housing projects and additional public improvements. Exterior Energy Offset Fund – This fund is used to account for fees collected at building permit to create financial assistance, rebates, and incentives to promote energy efficient projects within the Town of Avon. Fees are established based on a formula using BTUs required for certain amenities over a 20-year period. Disposable Paper Bag Fee Fund - This fund is used to account for fees received by the Town from retailers who are required to pay ten cents ($0.10) for each disposable paper bag used during a retail purchase. Effective May 1, 2018 it became unlawful for retailers to provide plastic bags to customers at point of sale. The intent is to encourage the use of reusable bags. Fees are restricted for use to programs and education related to waste reduction, and for providing reusable bags to Town residents and guests. F PRELIMINARY DRAFT TOWN OF AVON, COLORADO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2025 Disposable Total Community Community Downtown Exterior Energy Paper Bag Nonmajor Enhancement Water Housing Development Offset Fee Governmental Fund Fund Fund Authority Fund Fund Fund Funds ASSETS Cash and Cash Equivalents - 174,981 3,552,359 152,349 153,281 187,720 4,220,690 Receivables: - Taxes 90,770 - 146,549 - - 8,885 246,204 - Intergovernmental - 14,171 - - - - 14,171 Total Assets 90,770 189,152 3,698,908 152,349 153,281 196,605 4,481,065 LIABILITIES Accounts Payable 56,788 1,393 29,537 - - 3,063 90,781 Accrued Liabilities - - 7,627 - - - 7,627 Deposits and Reserves - - 1,600 - - - 1,600 Total Liabilities 56,788 1,393 38,764 - - 3,063 100,008 FUND BALANCES Restricted For: Water Projects - 187,759 - - - - 187,759 Community Enhancement 33,982 - - - - - 33,982 Downtown Development Projects 152,349 152,349 Committed For: Exterior Energy Offset Programs - - - - 153,281 - 153,281 Waste Reduction Programs - - - - - 193,542 193,542 Assigned For: Community Housing Programs - - 3,660,144 - - - 3,660,144 Total Fund Balances 33,982 187,759 3,660,144 152,349 153,281 193,542 4,381,057 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 90,770 189,152 3,698,908 152,349 153,281 196,605 4,481,065 Special Revenue Funds F1 PRELIMINARY DRAFT TOWN OF AVON, COLORADO COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2025 Disposable Total Community Community Downtown Exterior Energy Paper Bag Nonmajor Enhancement Water Housing Development Offset Fee Governmental Fund Fund Fund Authority Fund Fund Fund Funds Revenues Taxes - - 1,456,238 308,582 - - 1,764,820 Licenses and Permits - - - - 16,562 - 16,562 Intergovernmental - - 143,668 - - - 143,668 Charges for Services - 289,088 91,500 - - - 380,588 Other Revenues 90,770 - 15,788 - - 75,371 181,929 Total Revenues 90,770 289,088 1,707,194 308,582 16,562 75,371 2,487,567 Expenditures Current: General Government - - 2,084,315 - - 30,346 2,114,661 Community Development - - - - 60,427 - 60,427 Public Works and Utilities 18,866 106,959 - - - - 125,825 Capital Improvements - - 360,635 200,000 - - 560,635 Total Expenditures 18,866 106,959 2,444,950 200,000 60,427 30,346 2,861,548 Excess (Deficiency) of Revenues Over (Under) Expenditures 71,904 182,129 (737,756) 108,582 (43,865) 45,025 (373,981) Other Financing Sources (Uses): Transfers In - - 781,961 - - - 781,961 Transfers Out (361,000) - - - - - (361,000) Total Other Financing Sources (Uses)(361,000) - 781,961 - - - 420,961 Net Change in Fund Balances (289,096) 182,129 44,205 108,582 (43,865) 45,025 46,980 Fund Balances, Beginning of Year 323,078 5,630 3,615,939 43,767 197,146 148,517 4,334,077 Fund Balances, End of year 33,982 187,759 3,660,144 152,349 153,281 193,542 4,381,057 Special Revenue Funds F2 PRELIMINARY DRAFT TOWN OF AVON, COLORADO COMMUNITY ENHANCEMENT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2025 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Other Revenues 90,000 90,000 90,770 770 Total Revenues 90,000 90,000 90,770 770 Expenditures Current: Public Works and Utilities 20,000 20,000 18,866 1,134 Total Expenditures 20,000 20,000 18,866 1,134 Excess (Deficiency) of Revenues Over (Under) Expenditures 70,000 70,000 71,904 1,904 Other Financing Sources (Uses) Transfers Out (361,000) (361,000) (361,000) - Net Change in Fund Balances (291,000) (291,000) (289,096) 1,904 Fund Balances, Beginning of Year 323,078 323,078 323,078 - Fund Balances, End of Year 32,078 32,078 33,982 1,904 Budgeted Amounts F3 PRELIMINARY DRAFT TOWN OF AVON, COLORADO WATER FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2025 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Charges for Services: Water Surcharges 170,000 170,000 174,115 4,115 Tap Fees 25,000 25,000 114,973 89,973 Total Charges for Services 195,000 195,000 289,088 94,088 Total Revenues 195,000 195,000 289,088 94,088 Expenditures Current: Public Works and Utilities 152,435 152,435 106,959 45,476 Total Expenditures 152,435 152,435 106,959 45,476 Excess (Deficiency) of Revenues Over (Under) Expenditures 42,565 42,565 182,129 139,564 Other Financing Sources (Uses) Transfers Out (100,000) - - - Net Change in Fund Balances (57,435) 42,565 182,129 139,564 Fund Balances, Beginning of Year 5,630 5,630 5,630 - Fund Balances, End of year (51,805) 48,195 187,759 139,564 Budgeted Amounts F4 PRELIMINARY DRAFT TOWN OF AVON, COLORADO COMMUNITY HOUSING FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2025 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes: Short-term Rental Tax 1,501,099 1,501,099 1,456,238 (44,861) Intergovernmental: State Grants 160,000 160,000 143,668 (16,332) Charges for Services: Rental Revenues - Employees 87,000 87,000 91,500 4,500 Other Revenues: Miscellaneous 25,000 25,000 15,788 (9,212) Total Revenues 1,773,099 1,773,099 1,707,194 (65,905) Expenditures Current: General Government 1,275,163 2,235,501 2,084,315 151,186 Capital Improvements 1,182,000 2,558,516 360,635 2,197,881 Total Expenditures 2,457,163 4,794,017 2,444,950 2,349,067 Excess (Deficiency) of Revenues Over (Under) Expenditures (684,064) (3,020,918) (737,756) 2,283,162 Other Financing Sources (Uses) Transfers In 500,000 781,961 781,961 - Net Change in Fund Balances (184,064) (2,238,957) 44,205 2,283,162 Fund Balances, Beginning of Year 3,615,939 3,615,939 3,615,939 - Fund Balances, End of year 3,431,875 1,376,982 3,660,144 2,283,162 Budgeted Amounts F5 PRELIMINARY DRAFT TOWN OF AVON, COLORADO AVON DOWNTOWN DEVELOPMENT AUTHORITY FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2025 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes 401,091 401,091 308,582 (92,509) Total Revenues 401,091 401,091 308,582 (92,509) Expenditures Capital Improvements 325,000 325,000 200,000 125,000 Total Expenditures 325,000 325,000 200,000 125,000 Excess (Deficiency) of Revenues Over (Under) Expenditures 76,091 76,091 108,582 32,491 Other Financing Sources (Uses) Transfers Out - - - - Net Change in Fund Balances 76,091 76,091 108,582 32,491 Fund Balances, Beginning of Year 43,767 43,767 43,767 - Fund Balances, End of year 119,858 119,858 152,349 32,491 Budgeted Amounts F6 PRELIMINARY DRAFT TOWN OF AVON, COLORADO EXTERIOR ENERGY OFFSET FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2025 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Licenses and Permits: Exterior Energy Offset Fee 25,000 25,000 16,562 (8,438) Total Revenues 25,000 25,000 16,562 (8,438) Expenditures Current: Community Development 84,000 106,000 60,427 45,573 Total Expenditures 84,000 106,000 60,427 45,573 Net Change in Fund Balances (59,000) (81,000) (43,865) 37,135 Fund Balances, Beginning of Year 197,146 197,146 197,146 - Fund Balances, End of year 138,146 116,146 153,281 37,135 Budgeted Amounts F7 PRELIMINARY DRAFT TOWN OF AVON, COLORADO DISPOSABLE PAPER BAG FEE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2025 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Other Revenues: Disposable Paper Bag Fee 35,000 35,000 75,359 40,359 Miscellaneous - - 12 12 Total Revenues 35,000 35,000 75,371 40,371 Expenditures Current: General Government 42,460 42,460 30,346 12,114 Total Expenditures 42,460 42,460 30,346 12,114 Net Change in Fund Balances (7,460) (7,460) 45,025 52,485 Fund Balances, Beginning of Year 148,517 148,517 148,517 - Fund Balances, End of year 141,057 141,057 193,542 52,485 Budgeted Amounts F8 PRELIMINARY DRAFT TOWN OF AVON, COLORADO DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2025 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Total Revenues - - - - Expenditures Debt Service: Principal 770,000 770,000 770,000 - Interest 184,606 184,606 184,605 1 Fiscal Charges 6,150 6,150 6,000 150 Total Expenditures 960,756 960,756 960,605 151 Excess (Deficiency) of Revenues Over (Under) Expenditures (960,756) (960,756) (960,605) 151 Other Financing Sources (Uses) Transfers In 960,756 960,756 960,756 - Net Change in Fund Balances - - 151 151 Fund Balances, Beginning of Year 47,312 47,312 47,312 - Fund Balances, End of year 47,312 47,312 47,463 151 Budgeted Amounts F9 PRELIMINARY DRAFT TOWN OF AVON, COLORADO CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2025 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes: Real Estate Transfer Tax 5,000,000 5,000,000 5,297,273 297,273 Intergovernmental 5,116,000 5,116,000 937,304 (4,178,696) Investment Earnings 200,000 200,000 471,771 271,771 Other Revenues 15,000 15,000 3,330 (11,670) Total Revenues 10,331,000 10,331,000 6,709,678 (3,621,322) Expenditures Capital Projects 7,302,986 22,062,388 12,646,758 9,415,630 Total Expenditures 7,302,986 22,062,388 12,646,758 9,415,630 Excess (Deficiency) of Revenues Over (Under) Expenditures 3,028,014 (11,731,388) (5,937,080) 5,794,308 Other Financing Sources (Uses) Transfers In 2,636,000 5,226,000 5,226,000 - Transfers Out (3,611,702) (3,965,691) (3,169,289) 796,402 Total Other Financing Sources (Uses)(975,702) 1,260,309 2,056,711 796,402 Net Change in Fund Balances 2,052,312 (10,471,079) (3,880,369) 6,590,710 Fund Balances, Beginning of Year 16,925,081 16,925,081 16,925,081 - Fund Balances, End of Year 18,977,393 6,454,002 13,044,712 6,590,710 Budgeted Amounts F10 PRELIMINARY DRAFT ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises – where the intent of the Town Council is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered through user charges: or where the Town Council has decided that periodic determination of net income is appropriate for accountability purposes. Mobility Fund – This fund is used to account for the activities involved in operating the Town’s transportation system. Fleet Maintenance Fund – This fund is used to account for the accumulation and allocation of costs associated with the maintenance of vehicles and rolling stock for the Town and certain other third-party governmental entities. PRELIMINARY DRAFT TOWN OF AVON, COLORADO MOBILITY FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) WITH RECONCILIATION TO GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2025 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Taxes 69,487 69,487 70,353 866 Intergovernmental 254,000 254,000 481,536 227,536 Charges for Services 406,611 406,611 505,506 98,895 Other Revenue 118,869 118,869 121,109 2,240 Total Revenues 848,967 848,967 1,178,504 329,537 Expenses: Administration 366,821 366,821 383,386 (16,565) Operations 1,769,701 1,807,781 1,859,876 (52,095) Wash Bay 287,505 341,505 369,502 (27,997) Mobility Programs 367,116 369,816 261,468 108,348 Total Expenses 2,791,143 2,885,923 2,874,232 11,691 Excess (Deficiency) of Revenues Over (Under) Expenses, Non-GAAP Basis (1,942,176) (2,036,956) (1,695,728) 341,228 Other Financing Sources (Uses): Transfers In (Out)1,700,000 1,700,000 1,700,000 - Total Other Financing Sources (Uses)1,700,000 1,700,000 1,700,000 - Change in Net Position (Budgetary Basis)(242,176) (336,956) 4,272 341,228 Adjustments to Reconcile Budgetary Basis to GAAP Basis Principal Paid on Leases 40,723 Change in accrued compensated absences (40,788) Depreciation and amortization (717,312) Total Adjustments (717,377) Change in Net Position (GAAP Basis)(713,105) Budgeted Amounts F11 PRELIMINARY DRAFT TOWN OF AVON, COLORADO FLEET MAINTENANCE FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) WITH RECONCILIATION TO GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2025 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Charges for Services Third-party Fleet Maintenance Charges 1,253,941 1,253,941 1,509,016 255,075 Departmental Fleet Maintenance Services 815,313 815,313 1,070,759 255,446 Fuel Mark-up 45,000 45,000 114,169 69,169 Other Revenues - - 3,364 3,364 Total Revenues 2,114,254 2,114,254 2,697,308 583,054 Expenses: Fleet Maintenance 2,045,619 2,045,619 2,582,350 (536,731) Capital Outlay 14,820 14,820 262,391 (247,571) Debt Service: Principal 178,000 178,000 180,000 (2,000) Interest 15,682 15,682 13,825 1,857 Total Expenses 2,254,121 2,254,121 3,038,566 (784,445) Excess (Deficiency) of Revenues Over (Under) Expenses, Non-GAAP Basis (139,867) (139,867) (341,258) (201,391) Other Financing Sources (Uses): Transfers In (Out)433,825 433,825 433,825 - Total Other Financing Sources (Uses)433,825 433,825 433,825 - Change in Net Position (Budgetary Basis)293,958 293,958 92,567 (201,391) Adjustments to Reconcile Budgetary Basis to GAAP Basis Principal Paid on Certificates of Participation 180,000 Capitalization of Capital Assets 262,391 Amortization of Deferred Charge on Refunding of Debt (1,741) Depreciation Expense (148,556) Total Adjustments 292,094 Change in Net Position (GAAP Basis)384,661 Budgeted Amounts F12 PRELIMINARY DRAFT INTERNAL SERVICE FUNDS Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the Town and to other government units, on a cost reimbursement basis. Equipment Replacement Fund – This fund is used to account for the rental of certain vehicles and equipment to other departments for the accumulation of funds for future replacement. PRELIMINARY DRAFT TOWN OF AVON, COLORADO EQUIPMENT REPLACEMENT FUND SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) WITH RECONCILIATION TO GAAP BASIS FOR THE YEAR ENDED DECEMBER 31, 2025 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Charges for Services: Equipment Replacement Charges 1,448,022 1,448,022 1,448,022 - Investment Earnings 120,000 120,000 153,263 33,263 Total Revenues 1,568,022 1,568,022 1,601,285 33,263 Expenses: Capital Outlay: Fleet and Heavy Equipment 1,896,266 920,627 978,003 (57,376) Recreation Center Equipment & Improvements 49,930 49,930 65,840 (15,910) Computer and Office Equipment 109,766 109,766 152,539 (42,773) Machinery and Equipment 59,210 129,210 117,476 11,734 Total Expenses 2,115,172 1,209,533 1,313,858 (104,325) Excess (Deficiency) of Revenues Over (Under) Expenses, Non-GAAP Basis (547,150) 358,489 287,427 (71,062) Other Financing Sources (Uses): Transfers In (Out)434,375 434,375 (290,000) (724,375) Proceeds from Sale of Capital Assets 120,000 120,000 38,500 (81,500) Total Other Financing Sources (Uses)554,375 554,375 (251,500) (805,875) Change in Net Position (Budgetary Basis)7,225 912,864 35,927 (876,937) Adjustments to Reconcile Budgetary Basis to GAAP Basis Capitalization of Capital Assets 1,313,858 Book Value of Capital Assets Disposed (7,100) Transfers In of Non-financial Resources 134,811 Depreciation Expense (1,129,944) Total Adjustments 311,625 Change in Net Position (GAAP Basis)347,552 Budgeted Amounts F13 PRELIMINARY DRAFT TOWN OF AVON, COLORADO DEBT SCHEDULE DECEMBER 31, 2025 Date Interest Maturity Amount Amount Purpose Issued Rate Date Issued Outstanding Principal Interest Revenue Bonds: Series 2017, Avon URA Tax Increment Revenue Bonds 1/5/17 2.90%12/1/31 3,000,000 1,355,528 209,762 38,321 Series 2020, Avon URA Tax Increment Revenue Loan 5/1/20 2.11%12/1/28 4,111,000 1,440,000 470,000 30,384 Total Revenue Bonds 7,111,000 2,795,528 679,762 68,705 Certificates of Participation: Series 2014B, Certificates of Participation 1/14/15 3.03%12/1/29 3,800,000 1,180,000 280,000 35,754 Series 2016, Certificates of Participation 8/2/16 2.00%-4.00%12/1/35 6,300,000 3,760,000 325,000 120,625 Series 2020, Refunding Certificates of Participation 9/2/20 1.23%12/1/30 3,983,000 1,866,000 363,000 22,952 Series 2025, Certificates of Participation 10/1/25 4.40%-6.00%12/1/45 5,890,000 5,890,000 130,000 372,502 Total Certificates of Participation 19,973,000 12,696,000 1,098,000 551,833 Total Long-term Debt 27,084,000 15,491,528 1,777,762 620,538 Payments Due Schedule of Indebtedness In 2026 G1 PRELIMINARY DRAFT TOWN OF AVON, COLORADO DETAILED SCHEDULE OF GENERAL FUND EXPENDITURES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2025 Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) General Government: Mayor and Town Council 280,814 280,814 341,931 (61,117) Town Attorney 272,020 272,020 309,873 (37,853) Town Clerk 202,971 202,971 191,283 11,688 Municipal Court 197,996 197,996 207,120 (9,124) Administrative Services 964,370 964,370 1,035,611 (71,241) Human Resources 770,740 770,740 704,389 66,351 Community Relations 363,494 363,494 342,882 20,612 Economic Development 215,430 225,430 8,227,328 (8,001,898) Special Events 1,510,464 1,517,580 1,376,445 141,135 Community Grants 108,000 108,000 107,750 250 Sustainability 150,305 150,305 237,448 (87,143) Subtotal General Government 5,036,604 5,053,720 13,082,060 (8,028,340) Finance and Information Technology: Finance 1,156,096 1,166,096 1,257,119 (91,023) Information Systems 835,355 835,355 831,794 3,561 Nondepartmental 418,461 470,461 551,513 (81,052) Subtotal Finance and Administration 2,409,912 2,471,912 2,640,426 (168,514) Total General Government, Finance and Administration 7,446,516 7,525,632 15,722,486 (8,196,854) Community Development: Boards and Commissions 14,425 14,275 15,891 (1,616) Planning 639,767 645,267 663,568 (18,301) Building Inspection 342,222 339,222 347,845 (8,623) Total Community Development 996,414 998,764 1,027,304 (28,540) Public Safety: Police Administration 1,289,337 1,289,337 1,144,258 145,079 Patrol 4,259,001 4,312,409 4,511,113 (198,704) Investigations 616,124 616,124 637,917 (21,793) Code Enforcement 257,478 268,478 298,398 (29,920) Total Public Safety 6,421,940 6,486,348 6,591,686 (105,338) Budgeted Amounts G2 PRELIMINARY DRAFT TOWN OF AVON, COLORADO DETAILED SCHEDULE OF GENERAL FUND EXPENDITURES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2025 (CONTINUED) Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) Public Works Administration 511,668 530,818 365,041 165,777 Engineering 678,199 753,199 774,994 (21,795) Roads and Bridges 3,844,059 3,844,059 3,872,446 (28,387) Parks and Grounds 1,034,211 1,034,211 855,136 179,075 Buildings and Facilities 2,306,015 2,413,392 2,311,143 102,249 Total Public Works 8,374,152 8,575,679 8,178,760 396,919 Recreation: Administration 348,556 349,556 340,945 8,611 Adult Programs 91,151 91,151 69,459 21,692 Aquatics 1,044,789 1,044,789 1,045,262 (473) Fitness 361,593 361,593 313,776 47,817 Guest Services 719,904 719,904 722,364 (2,460) Youth Programs 309,343 308,343 301,942 6,401 Community Swim Program 330,013 330,013 243,628 86,385 Total Recreation 3,205,349 3,205,349 3,037,376 167,973 Debt Service: Principal - - 70,971 (70,971) Interest - - 1,027 (1,027) Fiscal Charges - - 38,285 (38,285) Total Debt Service:- - 110,283 (110,283) TOTAL EXPENDITURES 26,444,371 26,791,772 34,667,895 (7,876,123) Budgeted Amounts G3 PRELIMINARY DRAFT TOWN OF AVON, COLORADO DETAILED SCHEDULE OF GENERAL FUND REVENUES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2025 Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) Taxes: General Property Tax 2,908,568 2,908,568 2,914,651 6,083 Specific Ownership Tax 130,000 130,000 170,637 40,637 Sales Tax 13,195,818 13,195,818 13,491,782 295,964 Utility Tax 130,000 130,000 110,217 (19,783) Accommodations Tax 2,458,503 2,458,503 2,298,238 (160,265) Penalties and Interest 52,400 52,400 64,488 12,088 VAA Retail Sales Fee 1,100,000 1,100,000 1,161,875 61,875 Cigarette and Tobacco Tax 605,000 605,000 535,949 (69,051) Franchise Fees 460,000 460,000 453,296 (6,704) Total Taxes 21,040,289 21,040,289 21,201,133 160,844 Licenses and Permits: Business Licenses 185,000 185,000 271,545 86,545 Contractor's Licenses 18,625 18,625 25,655 7,030 Building Permits 225,000 225,000 349,675 124,675 Road Cut Permits 20,000 20,000 250 (19,750) Other Licenses and Permits 10,550 10,550 12,415 1,865 Total Licenses and Permits 459,175 459,175 659,540 200,365 Intergovernmental: Federal Grants:2,000 2,000 2,363 363 State Grants:302,500 302,500 392,726 90,226 Other Local Grants:- - 16,764 16,764 State/County Shared Revenue: Conservation Trust 80,000 80,000 72,636 (7,364) Motor Vehicle Registration 26,000 26,000 24,755 (1,245) Highway User's Tax 191,805 191,805 226,229 34,424 County Sales Tax 746,750 746,750 627,626 (119,124) Road & Bridge Fund 175,000 175,000 214,525 39,525 State Severance Tax 2,400 2,400 215 (2,185) Total Intergovernmental 1,526,455 1,526,455 1,577,839 (87,019) Budgeted Amounts G4 PRELIMINARY DRAFT TOWN OF AVON, COLORADO DETAILED SCHEDULE OF GENERAL FUND REVENUES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2025 (CONTINUED) Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) Charges for Services: General Government: Miscellaneous Fees and Charges 5,000 5,000 4,696 (304) Community Development: Plan Check Fees 150,000 150,000 160,444 10,444 Other Fees and Charges 47,500 122,500 20,903 (101,597) Public Safety: Police Fees and Charges 46,325 46,325 60,925 14,600 Culture and Recreation: Avon Recreation Center 1,450,100 1,450,100 1,621,257 171,157 General Recreation 243,240 243,240 288,332 45,092 Special Events 147,871 139,731 109,101 (30,630) Total Charges for Services 2,090,036 2,156,896 2,265,658 108,762 Fines and Forfeitures: Court Fines and Costs 52,200 52,200 90,000 37,800 Total Fines and Forfeitures 52,200 52,200 90,000 37,800 Investment Earnings 1,500,000 1,500,000 1,699,607 199,607 Leases --74,838 74,838 Miscellaneous Revenues: Recreational Amenity Fees 345,000 345,000 343,592 (1,408) Parking Revenue 7,500 7,500 28,848 21,348 Miscellaneous Revenues 134,500 134,500 139,852 5,352 Total Miscellaneous Revenues 487,000 487,000 512,292 25,292 TOTAL REVENUES 27,155,155 27,222,015 28,080,907 858,892 Budgeted Amounts G5 PRELIMINARY DRAFT Form Approved The public report burden for this information collection is estimated to average 380 hours annually. OMB No. 2125-0032 STATE:COUNTY: COLORADO Avon YEAR ENDING (mm/yy): December 2025 This Information From The Records Of:Prepared By:Chase Simmons 970-748-4019 A. Local B. Local C. Receipts from D. Receipts from ITEM Motor-Fuel Motor-Vehicle State Highway-Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes ITEM AMOUNT AMOUNT A. Receipts from local sources:A. Local highway expenditures: 1. Local highway-user taxes 1. Capital outlay (from page 2)-$ a. Motor Fuel (from Item I.A.5.)-$2. Maintenance:6,173,628.11$ b. Motor Vehicle (from Item I.B.5.)-$3. Road and street services: c. Total (a.+b.)-$a. Traffic control operations 108,794.26$ 2. General fund appropriations 4,135,129.26$ b. Snow and ice removal 1,115,790.97$ 3. Other local imposts (from page 2)170,637.24$c. Other 4. Miscellaneous local receipts (from page 2)3,601,783.31$ d. Total (a. through c.)1,224,585.23$ 5. Transfers from toll facilities 4. General administration & miscellaneous 6. Proceeds of sale of bonds and notes:5. Highway law enforcement and safety 441,234.34$ a. Bonds - Original Issues 6. Total (1 through 5)7,839,447.68$ b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.)-$a. Interest 44,086.51$ 7. Total (1 through 6)7,907,549.81$ b. Redemption 275,000.00$ B. Private Contributions c. Total (a. + b.)319,086.51$ C. Receipts from State government 2. Notes: 250,984.38$a. Interest D. Receipts from Federal Government b. Redemption -$c. Total (a. + b.)-$ E. Total receipts (A.7 + B + C + D)8,158,534.19$ 3. Total (1.c + 2.c)319,086.51$ C. Payments to State for highways D. Payments to toll facilities E. Total expenditures (A.6 + B.3 + C + D)8,158,534.19$ Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total)1,475,000.00$ 275,000.00$1,200,000.00$ 1. Bonds (Refunding Portion)-$ B. Notes (Total)-$ A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation 8,158,534.19$ 8,158,534.19$ -$ Notes and Comments: FORM FHWA-536 (Rev.06/2000) PREVIOUS EDITIONS OBSOLETE Excel (Next Page) LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE II. RECEIPTS FOR ROAD AND STREET PURPOSES III. EXPENDITURES FOR ROAD AND STREET PURPOSES ITEM (from page 2) (from page 2) IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) V. LOCAL ROAD AND STREET FUND BALANCE (RECEIPTS AND DISBURSEMENTS ONLY) G6 PRELIMINARY DRAFT STATE: COLORADO YEAR ENDING (mm/yy): December 2025 AMOUNT AMOUNT A.3. Other local imposts:A.4. Miscellaneous local receipts: a. Property Taxes and Assesments a. Interest on investments b. Other local imposts:b. Traffic Fines & Penalties 1. Sales Taxes c. Parking Garage Fees 2. Infrastructure & Impact Fees d. Parking Meter Fees 3. Liens e. Sale of Surplus Property 4. Licenses f. Charges for Services 5. Specific Ownership &/or Other 170,637.24$ b. Traffic Fines & Penalties 6. Total (1. through 5.)170,637.24$ h. Other CIP 3,601,783.31$ c. Total (a. + b.)170,637.24$ i. Total (a. through h.)3,601,783.31$ AMOUNT AMOUNT C. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes (from Item I.C.5.)226,229.14$ 1. FHW A (from Item I.D.5.)-$ 2. State general funds 2. Other Federal agencies: 3. Other State funds:a. Forest Service a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 24,755.24$d. Federal Transit Administration d. DOLA Grant e. U.S. Corps of Engineers e. Other f. Other Federal ARPA f. Total (a. through e.)24,755.24$g. Total (a. through f.)-$ 4. Total (1. + 2. + 3.f)250,984.38$ 3. Total (1. + 2.g)-$ ON NATIONAL OFF NATIONAL HIGHW AY HIGHW AY TOTAL SYSTEM SYSTEM (a)(b)(c) A.1. Capital outlay: a. Right-Of-W ay Costs -$ b. Engineering Costs -$ c. Construction: (1). New Facilities -$ (2). Capacity Improvements -$ (3). System Preservation -$ (4). System Enhancement And Operation -$ (5). Total Construction (1)+(2)+(3)+(4)-$-$-$ d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.4)-$-$-$ Notes and Comments: FORM FHWA-536 LOCAL HIGHWAY FINANCE REPORT II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL ITEM ITEM (Carry forward to page 1) (Carry forward to page 1) ITEMITEM (Carry forward to page 1) (Carry forward to page 1) III. EXPENDITURES FOR ROAD AND STREET PURPOSES - DETAIL (Carry forward to page 1) G7 PRELIMINARY DRAFT STATISTICAL SECTION This section of the Town of Avon’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Town’s overall financial health. Financial Trends (Pages H1-H9) –These schedules contain trend information to help readers understand how the Town’s financial performance and well-being have changed over time. Revenue Capacity (Pages H10-H14) –These schedules contain information to help readers understand and assess the factors affecting the Town’s ability to generate its own-source revenues, specifically property taxes. Debt Capacity (Pages H15-H18) –These schedules present information to help readers understand and assess the Town’s debt burden and ability to issue additional debt. Demographic and Economic Information (Pages H19-H22) –These schedules offer demographic and economic information to help readers understand the environment in which the Town’s financial activities take place and to provide information that facilitates comparisons of financial statement information over time and among other local governments. Operating Information (Pages H23-H25) –These schedules contain service and infrastructure information to help readers understand how the information in the Town’s financial report relates to the services the Town provides and the activities it performs. PRELIMINARY DRAFT TOWN OF AVON, COLORADO NET POSITION BY COMPONENT LAST TEN FISCAL YEARS 2016 2017 2018 2019 Governmental Activities Net Investment in Capital Assets 58,088,785$ 56,693,531$ 60,092,867$60,035,630$ Restricted For: Emergencies 664,805 688,786 693,001 805,865 Debt Service 1,169,163 1,175,301 1,163,056 1,162,093 Capital Improvements 5,921,087 3,373,917 702,390 657,821 Urban Renewal 555,167 717,740 - - Downtown Developent Purposes of Grantors 142,100 192,173 267,911 691,828 Unrestricted 16,341,288 20,329,098 20,540,937 22,762,477 Total Governmental Activities Net Position 82,882,395$ 83,170,546$ 83,460,162$86,115,714$ Business-type Activities Net Investment in Capital Assets 11,430,538$ 11,424,412$ 10,877,907$10,401,752$ Restricted For: Emergencies - - - - Unrestricted 908,749 710,428 652,622 540,075 Total Business-type Activities Net Position 12,339,287$ 12,134,840$ 11,530,529$10,941,827$ Primary Government Net Investment in Capital Assets 69,519,323$ 68,117,943$ 70,970,774$70,437,382$ Restricted 8,452,322 6,147,917 2,826,358 3,317,607 Unrestricted 17,250,037 21,039,526 21,193,559 23,302,552 Total Primary Government Net Position 95,221,682$ 95,305,386$ 94,990,691$97,057,541$ Source: Town of Avon Finance Department Fiscal Year H1 PRELIMINARY DRAFT 2020 2021 2022 2023 2024 2025 59,208,071$ 60,606,346$ 64,269,372$ 67,538,798$ 72,826,656$ 84,966,850$ 829,650 980,080 1,101,215 1,167,831 1,195,000 1,282,000 ------ 657,821 451,280 450,230 423,144 449,230 449,230 22,942 95,276 177,047 285,495 190,257 309,021 43,767 152,349 886,122 1,023,435 3,015,098 3,827,722 4,381,389 4,428,520 29,333,839 34,975,834 40,410,798 44,085,337 48,498,107 40,908,912 90,938,445$ 98,132,251$ 109,423,760$ 117,328,327$ 127,584,406$ 132,496,882$ 10,299,819$ 10,940,758$ 12,946,887$ 13,432,704$ 12,789,095$ 12,406,341$ -----85,000 914,845 1,955,681 1,894,570 1,776,053 2,115,152 2,084,464 11,214,664$ 12,896,439$ 14,841,457$ 15,208,757$ 14,904,247$ 14,575,805$ 69,507,890$ 71,547,104$ 77,216,259$ 80,971,502$ 85,615,751$ 97,373,191$ 2,396,535 2,550,071 4,743,590 5,704,192 6,259,643 6,706,120 30,248,684 36,931,515 42,305,368 45,861,390 50,613,259 42,993,376 102,153,109$ 111,028,690$ 124,265,217$ 132,537,084$ 142,488,653$ 147,072,687$ Fiscal Year H2 PRELIMINARY DRAFT TOWN OF AVON, COLORADO CHANGES IN NET POSITION LAST TEN FISCAL YEARS 2016 2017 2018 2019 Expenses Governmental Activities: General Government 3,291,190$ 3,500,101$ 3,661,274$ 5,968,157$ Community Development 1,202,097 1,617,329 1,454,581 557,539 Public Safety 3,214,680 3,703,871 3,983,349 4,310,801 Public Works and Utilities 9,656,808 9,026,700 9,448,309 8,134,954 Recreation and Culture 1,584,531 1,684,492 1,978,431 2,160,389 Mobility ---- Interest and Fiscal Charges on Long-term Debt 754,238 796,462 720,441 617,694 Total Governmental Activity Expenses 19,703,544 20,328,955 21,246,385 21,749,534 Business-type Activities: Transportation 1,963,223 2,253,558 2,272,401 2,502,195 Fleet Maintenance 1,623,046 1,655,774 1,720,433 1,780,524 Total Business-type Activity Expenses 3,586,269 3,909,332 3,992,834 4,282,719 Total Primary Government Expenses 23,289,813$ 24,238,287$ 25,239,219$ 26,032,253$ Program Revenues Governmental Activities: Charges for Services: General Government 239,199$ 294,431$ 272,153$ 280,165$ Community Development 369,867 396,731 395,239 843,810 Public Safety 99,862 64,275 93,646 60,017 Public Works and Utilities 698,195 287,151 233,982 484,271 Recreation and Culture 1,334,056 1,519,254 1,458,802 1,385,312 Operating Grants and Contributions 104,217 84,761 75,430 89,873 Capital Grants and Contributions 1,816,456 31,237 491,600 815 Total Governmental Activity Program Revenues 4,661,852 2,677,840 3,020,852 3,144,263 Business-type Activities: Charges for Services 1,557,439 1,482,770 1,564,465 1,644,868 Operating Grants and Contributions --75,000 245,980 Capital Grants and Contributions 100,000 328,000 -- Total Business-type Activity Program Revenues 1,657,439 1,810,770 1,639,465 1,890,848 Total Primary Government Program Revenues 6,319,291$ 4,488,610$ 4,660,317$ 5,035,111$ Net (Expense) Revenue Governmental Activities (15,041,692)$ (17,651,115)$ (18,225,533)$ (18,605,271)$ Business-type Activities (1,928,830) (2,098,562) (2,353,369) (2,391,871) Total Primary Government Net Expense (16,970,522)$ (19,749,677)$ (20,578,902)$ (20,997,142)$ Fiscal Year H3 PRELIMINARY DRAFT 2020 2021 2022 2023 2024 2025 5,809,422$ 6,169,567$ 6,028,279$ 7,399,224$ 9,206,664$ 9,065,691$ 513,004 536,564 658,989 925,098 1,270,522 1,387,311 4,466,597 4,372,460 4,792,423 5,804,502 6,416,591 7,121,416 8,245,335 8,481,110 9,094,216 11,447,522 11,834,149 13,029,436 1,814,889 1,917,182 2,196,340 2,812,965 3,427,244 3,794,326 -84,167 88,266 91,785 -- 538,010 412,275 380,278 343,233 303,666 300,356 21,387,257 21,973,325 23,238,791 28,824,329 32,458,836 34,698,536 2,325,260 2,465,889 2,926,168 3,009,782 3,465,348 3,591,610 1,784,854 1,637,288 1,849,994 2,150,931 2,675,265 2,746,472 4,110,114 4,103,177 4,776,162 5,160,713 6,140,613 6,338,082 25,497,371$ 26,076,502$ 28,014,953$ 33,985,042$ 38,599,449$ 41,036,618$ 197,989$ 333,474$ 358,198$ 81,956$ 1,176,213$ 1,341,398$ 421,822 604,037 2,213,641 212,229 585,337 181,347 41,786 30,031 30,279 32,033 50,144 60,925 195,682 319,428 524,886 624,048 1,444,420 1,827,880 744,429 1,141,324 1,587,555 1,867,988 2,025,521 2,018,690 826,152 104,842 182,916 1,204,555 1,785,449 837,010 37,206 48,128 47,135 -925,584 949,518 2,465,066 2,581,264 4,944,610 4,022,809 7,992,668 7,216,768 1,813,132 1,656,035 1,989,517 2,143,269 3,337,993 3,315,338 646,470 1,025,745 431,912 400,563 338,398 - -967,643 1,576,477 838,719 -481,536 2,459,602 3,649,423 3,997,906 3,382,551 3,676,391 3,796,874 4,924,668$ 6,230,687$ 8,942,516$ 7,405,360$ 11,669,059$ 11,013,642$ (18,922,191)$ (19,392,061)$ (18,294,181)$ (24,801,520)$ (24,466,168)$ (27,481,768)$ (1,650,512) (453,754) (778,256) (1,778,162) (2,464,222) (2,541,208) (20,572,703)$ (19,845,815)$ (19,072,437)$ (26,579,682)$ (26,930,390)$ (30,022,976)$ Fiscal Year H4 PRELIMINARY DRAFT TOWN OF AVON, COLORADO CHANGES IN NET POSITION (CONTINUED) LAST TEN FISCAL YEARS 2016 2017 2018 2019 General Revenues and Other Changes in Net Position Governmental Activities: Taxes: Property Taxes 3,315,020$ 2,876,177$ 3,260,557$ 3,226,470$ Real Estate Transfer Taxes 3,497,602 4,411,530 3,621,125 5,001,145 Sales and Accommodation Taxes 9,540,260 9,437,658 10,595,905 11,438,117 Other Taxes 1,389,896 1,385,171 641,144 990,898 Unrestricted Investment Earnings 139,665 178,997 398,998 549,998 Grants and Contributions Not Restricted to Specific Programs 513,912 913,784 932,146 968,549 Miscellaneous 558,618 589,767 772,766 847,185 Capital Contributions (150,215) (103,403) -(61,539) Transfers (1,584,994) (1,750,415) (1,707,492) (1,700,000) Total Governmental Activities 17,219,764 17,939,266 18,515,149 21,260,823 Business-type Activities: Property Taxes 40,258 40,297 41,566 41,630 Capital Contributions 150,215 103,403 -61,539 Miscellaneous Transfers 1,584,994 1,750,415 1,707,492 1,700,000 Total Business-type Activities 1,775,467 1,894,115 1,749,058 1,803,169 Total Primary Government 18,995,231$ 19,833,381$ 20,264,207$ 23,063,992$ Change in Net Position Governmental Activities 2,178,072$ 288,151$ 289,616$ 2,655,552$ Business-type Activities (153,363) (204,447) (604,311) (588,702) Total Primary Government 2,024,709$ 83,704$ (314,695)$ 2,066,850$ Source: Town of Avon Finance Department Fiscal Year H5 PRELIMINARY DRAFT 2020 2021 2022 2023 2024 2025 3,727,486$ 3,672,627$ 3,996,579$ 4,001,831$ 5,659,627$ 6,094,795$ 5,998,950 7,354,186 5,971,192 6,529,287 7,980,409 5,297,273 11,303,195 13,820,404 16,868,418 16,419,000 15,592,383 15,960,802 996,839 2,120,037 2,345,389 2,554,707 2,019,273 2,445,483 288,927 (7,865) 452,949 2,338,345 2,663,857 2,326,828 918,375 1,052,084 1,173,123 1,376,087 2,164,618 1,773,196 2,392,866 667,854 949,072 1,585,596 690,082 629,692 ------ (1,881,716) (2,093,460) (2,172,578) (2,098,766) (2,048,002) (2,133,825) 23,744,922 26,585,867 29,584,144 32,706,087 34,722,247 32,394,244 41,633 42,069 46,707 46,696 73,037 70,353 ------ 38,673 8,586 1,881,716 2,093,460 2,676,567 2,098,766 2,048,002 2,133,825 1,923,349 2,135,529 2,723,274 2,145,462 2,159,712 2,212,764 25,668,271$ 28,721,396$ 32,307,418$ 34,851,549$ 36,881,959$ 34,607,008$ 4,822,731$ 7,193,806$ 11,289,963$ 7,904,567$ 10,256,079$ 4,912,476$ 272,837 1,681,775 1,945,018 367,300 (304,510) (328,444) 5,095,568$ 8,875,581$ 13,234,981$ 8,271,867$ 9,951,569$ 4,584,032$ Fiscal Year H6 PRELIMINARY DRAFT TOWN OF AVON, COLORADO CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS 2016 2017 2018 2019 Revenues Taxes 17,742,776$ 18,148,536$ 18,118,731$ 20,656,630$ Licenses and Permits 259,997 374,311 398,860 752,345 Intergovernmental 2,868,277 1,029,782 1,499,176 1,156,632 Charges for Services 1,772,510 2,005,812 1,927,701 2,181,861 Fines and Forfeitures 91,014 94,311 52,220 51,535 Investment Earnings 139,665 178,997 398,998 549,998 Leases ---- Other Revenues 651,603 664,037 748,101 838,635 Total Revenues 23,525,842 22,495,786 23,143,787 26,187,636 Expenditures Current: General Government and Housing 3,119,007 3,379,282 3,636,761 4,982,737 Community Development 1,201,086 1,505,073 1,342,798 521,129 Public Safety 3,122,942 3,416,991 3,690,530 3,984,465 Public Works and Utilities 5,067,825 4,318,222 4,310,596 4,397,725 Recreation and Culture 1,293,277 1,436,483 1,585,571 1,703,007 Capital Improvements 8,864,565 6,721,147 8,449,771 3,532,547 Debt Service: Principal 1,382,506 1,239,743 1,371,210 1,335,902 Interest 473,674 746,385 666,120 624,162 Bond Issuance Costs 147,270 41,162 -- Fiscal Charges 54,071 81,625 63,337 10,060 Total Expenditures 24,726,223 22,886,113 25,116,694 21,091,734 Excess (Defieiency) of Revenues Over (Under) Expenditures (1,200,381) (390,327) (1,972,907) 5,095,902 Other Financing Sources (Uses) Transfers In 2,819,319 5,508,421 3,266,471 1,623,043 Transfers Out (4,404,313) (7,258,836) (5,016,471) (3,323,043) Debt/Lease Issuance Proceeds 6,300,000 3,080,204 258,258 - Payments to Escrow Agent ---- Total Other Financing Sources (Uses)4,715,006 1,329,789 (1,491,742) (1,700,000) Net Change in Fund Balances 3,514,625$ 939,462$ (3,464,649)$ 3,395,902$ Debt Service as a Percentage of Noncapital Expenditures 10.95%10.85%10.65%10.61% Source: Town of Avon Finance Department Fiscal Year H7 PRELIMINARY DRAFT 2020 2021 2022 2023 2024 2025 22,026,470$ 26,967,254$ 29,181,578$ 29,504,825$ 32,334,856$ 30,960,229$ 388,494 461,647 1,636,380 638,122 1,270,081 676,102 1,781,733 1,205,054 1,403,174 1,817,431 3,133,422 2,658,811 1,173,521 1,742,352 2,974,983 2,818,254 2,898,758 2,646,246 39,693 45,753 28,191 44,705 86,854 90,000 288,927 (8,035) 415,982 2,190,478 2,490,368 2,173,566 -----74,838 2,367,398 669,460 920,665 669,842 710,432 697,551 28,066,236 31,083,485 36,560,953 37,683,657 42,924,771 39,977,343 5,522,841 6,081,429 6,807,714 7,086,072 8,600,002 17,917,980 500,739 551,138 653,294 949,715 1,248,629 1,087,731 4,050,935 4,169,397 5,044,825 5,516,773 6,341,901 6,591,686 4,067,683 4,612,171 6,084,870 8,259,626 7,186,986 8,304,585 1,311,887 1,622,206 2,018,510 2,450,098 2,707,393 3,037,376 2,111,194 4,542,239 5,153,940 5,063,521 7,963,093 13,207,393 1,414,010 1,387,925 1,386,616 1,421,365 1,453,215 1,505,699 429,221 403,078 371,833 340,382 305,096 270,098 113,525 ----- 7,084 9,351 7,946 6,620 4,156 44,685 19,529,119 23,378,934 27,529,548 31,094,172 35,810,471 51,967,233 8,537,117 7,704,551 9,031,405 6,589,485 7,114,300 (11,989,890) 2,205,115 2,238,633 3,622,088 4,507,571 4,583,520 7,626,464 (4,086,831) (4,607,093) (5,805,869) (7,112,259) (7,284,060) (9,470,289) 6,084,000 -134,662 --5,798,394 (6,850,698) ----- (2,648,414) (2,368,460) (2,049,119) (2,604,688) (2,700,540) 3,954,569 5,888,703$ 5,336,091$ 6,982,286$ 3,984,797$ 4,413,760$ (8,035,321)$ 10.07%11.05%8.23%6.71%6.23%4.00% Fiscal Year H8 PRELIMINARY DRAFT TOWN OF AVON, COLORADO FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS Fiscal Year 2016 2017 2018 2019 2020 General Fund Nonspendable 86,136$ -$-$-$-$ Restricted 664,805 688,786 693,001 805,865 829,650 Assigned ----- Unassigned 5,312,950 5,125,805 5,611,041 7,392,670 9,373,237 Total General Fund 6,063,891 5,814,591 6,304,042 8,198,535 10,202,887 All Other Governmental Funds Nonspendable ----- Restricted 7,787,517 5,459,131 2,133,357 2,511,742 1,566,885 Committed 4,493,621 7,941,466 7,336,358 8,218,307 11,657,356 Assigned 516,183 585,486 716,549 832,594 2,193,502 Unassigned --(154,281) (29,251) - Total All Other Governmental Funds 12,797,321$ 13,986,083$ 10,031,983$ 11,533,392$ 15,417,743$ 2021 2022 2023 2024 2025 General Fund Nonspendable -$-$-$-$262,793$ Restricted 980,080 1,101,215 1,167,831 1,195,000 1,282,000 Assigned ----- Unassigned 13,587,481 19,210,640 20,774,068 23,645,837 18,975,197 Total General Fund 14,567,561 20,311,855 21,941,899 24,840,837 20,519,990 All Other Governmental Funds Nonspendable ----- Restricted 1,569,991 3,642,375 5,704,192 1,011,962 1,132,341 Committed 13,479,429 13,948,835 15,404,799 16,821,514 12,942,305 Assigned 1,303,307 35,942 40,745 3,663,251 3,707,607 Unassigned ----- Total All Other Governmental Funds 16,352,727$ 17,627,152$ 21,149,736$ 21,496,727$ 17,782,253$ Source: Town of Avon Finance Department Fiscal Year H9 PRELIMINARY DRAFT TOWN OF AVON, COLORADO TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS Avon Urban Penalties, Interest Delinquent Specific Year General Renewal Authority & Abatements Taxes Ownership 2016 2,284,282 1,026,248 4,491 -119,483 2017 1,733,823 1,136,777 5,555 22 99,498 2018 1,829,624 1,428,646 1,106 181 105,234 2019 1,839,155 1,386,475 12 828 113,657 2020 2,041,834 1,568,090 3,128 -114,434 2021 2,045,147 1,628,814 (1,635)301 126,985 2022 2,154,594 1,887,132 1,422 138 130,201 2023 2,086,974 1,912,402 180 2,275 137,110 2024 2,974,960 2,475,396 3,534 3,616 161,888 2025 2,914,651 2,697,003 313 3,909 170,637 Real Estate Sales Utility Accommodations Village at Avon Year Transfer Tax Tax Tax Tax Retail Sales Fee 2016 3,497,602 8,250,381 102,643 1,289,879 735,280 2017 4,448,666 8,104,582 102,279 1,333,939 763,915 2018 3,621,125 8,475,940 105,881 1,334,306 785,659 2019 5,001,145 9,146,851 107,293 1,486,842 804,424 2020 5,998,950 9,214,444 102,442 1,217,787 870,964 2021 7,354,186 11,608,048 115,387 2,212,356 877,862 2022 5,971,192 13,251,187 139,370 2,494,535 991,380 2023 6,529,287 13,054,193 154,918 2,323,443 1,051,948 2024 7,980,409 13,173,452 113,191 2,230,500 1,083,164 2025 5,297,273 13,491,782 110,217 2,298,238 1,161,875 Cigarette Tobacco Franchise Short-term Year Excise Tax Tax Fees Rental Tax Total 2016 --432,488 -17,742,777 2017 --419,479 -18,148,536 2018 --430,029 -18,117,731 2019 189,305 146,016 434,627 -20,656,630 2020 250,995 214,907 428,495 -22,026,470 2021 258,573 301,631 439,599 -26,967,254 2022 247,799 348,917 487,722 1,122,696 29,228,285 2023 254,014 374,120 504,749 1,041,364 29,426,977 2024 239,592 314,547 465,395 999,737 32,219,381 2025 210,507 325,442 453,296 1,456,238 30,591,381 Source: Town of Avon Finance Department Property Tax H10 PRELIMINARY DRAFT TOWN OF AVON, COLORADO ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Total Gross Levy Collection Vacant Residential Commercial Other Assessed Year Year Land Property Property Property Value 2015 2016 14,261,780 121,724,600 70,940,420 3,929,820 211,061,910 2016 2017 13,201,140 123,870,280 69,822,570 4,310,460 211,204,450 2017 2018 12,927,680 129,786,330 79,660,040 4,387,310 226,761,360 2018 2019 11,625,280 131,277,920 83,581,320 3,901,750 230,386,270 2019 2020 12,669,770 146,905,210 89,774,540 3,291,140 252,640,660 2020 2021 10,282,760 151,345,100 89,159,320 3,212,590 253,999,770 2021 2022 10,934,940 166,148,630 83,772,920 3,374,840 264,255,860 2022 2023 10,313,740 164,347,040 83,678,830 3,564,390 261,904,000 2023 2024 12,336,830 242,961,960 104,622,300 3,344,630 363,265,720 2024 2025 10,394,230 263,213,990 122,226,810 3,595,900 376,237,450 Less TIF Total Net Direct Actual Value as a Levy Collection District Assessed Tax Taxable Percentage of Year Year Increment (1)Value Rate Value Actual Value 2015 2016 16,476,380 194,585,530 11.765 1,806,178,690 11.69% 2016 2017 17,221,870 193,982,580 8.956 1,825,187,770 11.57% 2017 2018 21,857,430 204,903,930 8.956 2,104,646,220 10.77% 2018 2019 21,475,340 208,910,930 8.956 2,121,154,740 10.86% 2019 2020 24,201,100 228,439,560 8.956 2,389,931,130 10.57% 2020 2021 25,630,460 228,369,310 8.956 2,444,013,540 10.39% 2021 2022 29,383,740 234,872,120 8.956 2,662,039,710 9.93% 2022 2023 29,317,470 232,517,570 8.956 2,681,000,040 9.77% 2023 2024 44,473,690 330,694,450 8.956 4,171,154,590 8.71% 2024 2025 51,475,490 324,761,960 8.956 4,927,024,390 7.64% Source: Eagle County Assessor's Office, Abstract of Assessments (1) The Avon Urban Renewal Authority was established in August, 2007. Notes: Property tax rates are stated in mills per $1,000 of assessed valuation. Other property includes state assessed, agricultural, and abatements and corrections. H11 PRELIMINARY DRAFT TOWN OF AVON, COLORADO DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS Taxing Entity 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Town of Avon General Operating 8.956 8.956 8.956 8.956 8.956 8.956 8.956 8.956 8.956 8.956 General Obligation Debt Service 2.809 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Total Direct 11.765 8.956 8.956 8.956 8.956 8.956 8.956 8.956 8.956 8.956 Eagle County 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.399 8.390 Colleges and School Districts Colorado Mountain College 3.997 3.997 3.997 3.997 4.013 4.013 4.085 4.085 2.977 3.230 Eagle County School District RE-50J 20.331 25.209 24.912 25.115 24.240 24.649 24.532 24.532 22.317 21.614 Other Special Districts Eagle River Fire Protection District 8.205 9.740 9.828 10.226 9.766 9.703 10.624 10.624 7.742 7.957 Eagle Valley Library District 2.750 2.750 2.750 2.763 2.763 2.763 2.763 2.763 1.913 2.763 Eagle River Water and Sanitation District 0.852 0.849 0.816 0.815 0.766 0.759 0.765 0.765 0.610 0.608 Colorado River Water Conservancy District 0.243 0.253 0.254 0.256 0.235 0.501 0.501 0.501 0.500 0.501 Eagle County Health Services District 2.008 2.755 2.753 2.766 2.781 2.774 2.755 2.755 2.753 2.773 Metropolitan Districts Avon General Improvement District No. 1 14.077 14.005 14.005 14.005 15.186 15.186 15.640 15.640 15.640 15.640 Avon Station Metropolitan District 58.000 63.000 65.585 65.596 65.572 66.295 67.465 67.465 67.299 55.506 Confluence Metropolitan District 0.000 0.000 0.000 0.000 0.000 0.000 23.000 23.000 0.000 0.000 Mountain Vista Metropolitan District 25.000 25.000 26.155 26.354 26.354 9.250 9.250 9.250 8.200 8.200 The Village Metropolitan District 50.000 50.000 50.000 50.000 15.000 15.000 15.617 15.617 16.503 16.264 Source: Eagle County Assessor's Office, Abstract of Assessment Notes: Property tax rates are stated in mills per $1,000 of assessed valuation. The Town's general operating mill rate may be increased only by a majority approval of the Town's residents during a general election. Rates for debt service are set based on each year's debt service requirements. Collection Year H12 PRELIMINARY DRAFT TOWN OF AVON, COLORADO PRINCIPAL PROPERTY TAX PAYERS CURRENT YEAR AND TEN YEARS AGO Percentage Percentage of Total of Total Taxable Town of Avon Taxable Town of Avon Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Avon Hospitality Borrower LLC 14,041,700$ 1 3.73% CSB Properties Holdings LLC 11,069,120 2 2.94%9,554,910$ 1 4.53% BFG Colorado LLC 7,668,620 3 2.04% Avon MOB LLC 6,480,000 4 1.72% Beaver Creek Vacation Ownership Plan 6,187,850 5 1.64%3,489,410 4 1.65% Avon Piedmoint LLC 6,165,970 6 1.64% Traer Creek-WMT LLC 5,541,890 7 1.47%6,121,680 2 2.90% Beaver Creek Blvd VIII LLC 5,313,470 8 1.41% Mountain Vista Condominium Assoc Inc.4,668,200 9 1.24%2,029,210 10 0.96% Christie Lodge Assoc Ltd 4,351,720 10 1.16% Riverfront Village Hotel, LLC 4,133,540 11 1.10%2,676,550 7 1.27% Traer Creek-HD LLC 3,726,000 12 0.99%4,147,000 3 1.96% GAC Avon LP LLC 3,635,850 13 0.97% Dillon Real Estate Co, Inc 3,252,600 14 0.86%2,353,580 9 1.12% Points of Colorado 3,055,220 15 0.81%3,435,420 5 1.63% Avon Wynfield LLC 2,685,690 6 1.27% Avon Mountain Center LLC 2,555,860 8 1.21% Riverfront Mountain Villas Assoc 1,950,430 11 0.92% Avon Partners II, LLC 1,838,610 12 0.87% Public Service Co. of Colorado (Xcel)1,793,160 13 0.85% Brookside Park Signature Lofts LLc 1,770,480 14 0.84% Traer Creek Plaza LLC 1,566,860 15 0.74% Total Assessed Value of the Fifteen Largest Taxpayers 89,291,750 23.73%47,968,850 22.73% Total Gross Assessed Value of Other Taxpayers 286,945,700 76.27% 163,093,060 77.27% Total Gross Assessed Value of All Taxpayers 376,237,450$ 100.00%211,061,910$ 100.00% Source: Eagle County Assessor's Office 2025 2015 H13 PRELIMINARY DRAFT TOWN OF AVON, COLORADO PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Ratio of (2)Total Tax (1)Current Percent of Delinquent Total Collections Levy Collection Total Tax Current Taxes Tax Tax To Total Year Year Tax Levy Collections Collected Collections Collections Tax Levy 2014 2015 2,071,895 2,029,571 97.96%172 2,029,743 97.97% 2015 2016 2,329,489 2,286,146 98.14%-2,286,146 98.14% 2016 2017 1,777,498 1,736,538 97.70%22 1,736,560 97.70% 2017 2018 1,876,652 1,829,624 97.49%181 1,829,805 97.50% 2018 2019 1,912,703 1,839,155 96.15%828 1,839,983 96.20% 2019 2020 2,087,501 2,083,430 99.80%-2,083,430 99.80% 2020 2021 2,087,252 2,087,123 99.99%301 2,087,424 100.01% 2021 2022 2,149,519 2,154,594 100.24%138 2,154,731 100.24% 2022 2023 2,128,430 2,133,613 100.24%239 2,133,852 100.25% 2023 2024 3,026,666 3,051,404 100.82%117 3,051,521 100.82% 2024 2025 2,978,055 2,985,166 100.24%4,045 2,989,211 100.37% Source: Town of Avon Finance Department Notes: (1) Taxes are due and payable on January 1 based on the prior year's assessed valuation. (2) Information on outstanding delinquent taxes is not available. H14 PRELIMINARY DRAFT TOWN OF AVON, COLORADO RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS General Special Certificates Fiscal Obligation Assessment Revenue of Leases Subscription Year Bonds Bonds Bonds Participation Loans Payable Liability 2016 --5,790,000 12,235,000 -325,518 - 2017 --8,225,362 11,675,000 -566,231 - 2018 --7,649,283 11,324,659 -401,100 - 2019 --7,053,286 10,661,468 -311,195 - 2020 --2,317,223 9,787,797 3,651,000 236,248 - 2021 --2,135,945 9,067,886 3,227,000 159,601 - 2022 --1,949,299 8,338,735 2,794,000 107,632 - 2023 --1,757,123 7,380,000 2,352,000 54,441 - 2024 --1,559,256 6,632,000 1,901,000 119,989 12,074 2025 --1,355,528 11,752,000 1,440,000 61,092 - Certificates Total Percentage Fiscal of Leases Primary of Personal Per Year Participation Payable Government Income Capita 2016 2,605,000 125,825 21,081,343 0.58%3,530 2017 2,465,000 63,864 22,995,457 0.61%3,890 2018 2,349,640 258,258 21,982,940 0.54%3,774 2019 2,197,144 224,979 20,448,072 0.45%3,544 2020 1,826,000 190,561 18,008,829 0.38%2,665 2021 1,655,000 154,967 16,400,399 0.32%2,557 2022 1,480,000 118,157 14,787,823 0.27%2,463 2023 1,301,000 80,087 12,924,651 0.38%2,183 2024 1,124,000 40,723 11,389,042 NA 1,931 2025 944,000 -15,552,620 NA 2,664 Source: Town of Avon Finance Department Governmental Activities Business-Type Activities H15 PRELIMINARY DRAFT TOWN OF AVON, COLORADO DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT DECEMBER 31, 2025 Estimated Estimated Share of Debt Percentage Overlapping Government Unit Outstanding Applicable a Debt Debt Repaid With Property Taxes Confluence Metropolitan District 21,595,000$ 100.00%21,595,000$ Eagle County School District RE-50J 259,485,000 4.59%11,917,812 Eagle River Fire Protection District 19,635,000 13.61%2,672,638 The Village Metropolitan District 70,245,000 100.00%70,245,000 Subtotal - Overlapping debt 106,430,450 Town of Avon Direct Debt 15,552,620 Total Direct and Overlapping Debt 121,983,070$ Source: Various Governmental Entities, Eagle County Finance Department Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Avon. This process recognizes that, when considering the Town's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government. a The basic approach to estimating the applicable percentage of overlapping debt was to divide the assessed value of the portion overlapping the Town to the total assessed value of the overlapping entity. H16 PRELIMINARY DRAFT TOWN OF AVON, COLORADO RATIO OF GENERAL BONDED DEBT OUTSTANDING AND LEGAL DEBT MARGIN LAST TEN FISCAL YEARS 2016 2017 2018 2019 General Bonded Debt Outstanding General Obligation Bonds -$-$-$-$ Actual Taxable Property Value 1,806,178,690 1,825,187,770 2,104,646,220 2,121,154,740 Net Assessed Value 194,585,530 193,982,580 204,903,930 208,910,930 Percentage of General Bonded Debt Outstanding to Actual Taxable Property Value 0.00%0.00%0.00%0.00% Town of Avon Population 6,505 6,383 6,518 6,365 Per Capita -$-$-$-$ Legal Debt Limit 48,646,382$ 48,495,645$ 51,225,982$ 52,227,732$ Total Debt Applicable to Limit ---- Legal Debt Margin 48,646,382$ 48,495,645$ 51,225,982$ 52,227,732$ Total Debt Applicable to the Limit as a Percentage of Legal Debt Limit 0.00%0.00%0.00%0.00% Source: Eagle County Assessor's Office, State of Colorado Division of Local Governments Fiscal Year H17 PRELIMINARY DRAFT 2020 2021 2022 2023 2024 2025 -$-$-$-$-$-$ 2,389,931,130 2,444,013,540 2,639,103,550 4,033,949,340 4,194,422,640 4,898,929,770 228,439,560 228,369,310 234,872,120 319,434,020 376,237,450 412,625,260 0.00%0.00%0.00%0.00%0.00%0.00% 6,145 6,003 6,003 6,003 5,898 5,838 -$-$-$-$-$-$ 57,109,890$ 57,092,328$ 58,718,030$ 79,858,505$ 94,059,363$ 103,156,315$ ------ 57,109,890$ 57,092,328$ 58,718,030$ 79,858,505$ 94,059,363$ 103,156,315$ 0.00%0.00%0.00%0.00%0.00%0.00% Fiscal Year H18 PRELIMINARY DRAFT TOWN OF AVON, COLORADO DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Eagle Eagle County Eagle County Eagle County Denver / Eagle Town of Eagle Personal Per Capita County RE-50J Boulder County Avon County Income Personal Median School Consumer Unemployment Year Population Population (In $1,000's)Income Age Enrollment Price Index Rate 2016 5,911 53,041 3,667,573 69,146 36.70 6,901 246.6 2.81% 2017 5,825 53,724 3,987,664 74,225 35.60 6,959 254.9 2.22% 2018 5,769 54,205 4,437,818 81,871 39.00 6,882 261.9 2.59% 2019 6,758 54,819 4,673,484 85,253 36.50 6,902 267.4 2.25% 2020 6,144 55,624 4,887,792 87,872 37.81 6,931 272.2 5.10% 2021 6,058 55,687 5,760,263 103,440 37.70 6,694 281.8 4.30% 2022 6,003 55,852 6,347,189 113,643 34.68 6,623 304.4 2.80% 2023 5,921 54,381 6,962,998 128,041 38.30 6,687 320.3 2.50% 2024 5,898 54,330 N/A N/A 39.30 6,497 327.6 3.60% 2025 5,838 54,007 N/A N/A 39.30 6,100 335.1 2.80% N/A - Information not available. Information was compiled by the Demographic Section of the Colorado Division of Local Government, Bureau of Labor Statistics and U.S. Census Bureau. School Enrollment was obtained by Eagle County School District Administration Office based on June Enrollment. Per Capita Personal Income obtained from Bureau of Economic Analysis, Regional Economic Accounts. H19 PRELIMINARY DRAFT TOWN OF AVON, COLORADO PRINCIPAL EMPLOYERS CURRENT YEAR AND TEN YEARS AGO Employer Employees Rank Employees Rank East West Hospitality 400 1 Westin Riverfront Resort & Spa 417 2 262 1 Wal-Mart 217 3 250 2 CMM/Vail Health - Avon 1019 6 Home Depot 132 5 130 4 City Market 131 4 130 5 Town of Avon 120 7 82 8 Eagle River Water & Sanitation 178 9 99 6 Slifer Smith & Frampton 86 8 Christie Lodge 65 10 84 7 Sheraton Mountain Vista 40 11 75 9 Vail Valley Foundation 70 12 Montana's Bar & Grill NA Maya, Mexican Kitchen NA Sources: Various Town of Avon businesses, Department of Labor 2025 2015 H20 PRELIMINARY DRAFT TOWN OF AVON, COLORADO COMMERCIAL AND RESIDENTIAL CONSTRUCTION LAST TEN FISCAL YEARS Total Total Building Permits Construction Year Issued Value 2016 158 30,076,507 2017 167 48,228,121 2018 164 52,662,638 2019 177 76,109,352 2020 169 24,772,104 2021 208 33,425,048 2022 215 199,409,400 2023 191 24,707,764 2024 222 147,108,642 2025 264 66,761,301 Source: Town of Avon Community Development Department H21 PRELIMINARY DRAFT TOWN OF AVON, COLORADO COMMERCIAL AND RESIDENTIAL CONSTRUCTION LAST TEN FISCAL YEARS Total Total Building Permits Square No. of Construction Year Issued Footage Value Units Value Value 2015 153 11,614 14,336,000$ 10 6,970,000$ 21,306,000$ 2016 158 90,309 21,525,147 7 8,551,360 30,076,507 2017 167 60,043 29,298,052 6 18,930,069 48,228,121 2018 164 93,579 37,542,440 20 15,120,198 52,662,638 2019 177 23,276 11,851,054 278 64,258,298 76,109,352 2020 169 36,082 14,430,422 12 10,341,682 24,772,104 2021 208 7,900 1,957,878 20 31,467,170 33,425,048 2022 215 131,676 34,500,000 127 164,909,400 199,409,400 2023 179 4,425 1,487,642 12 9,810,000 11,297,642 2024 211 397,087 88,705,693 11 32,905,000 121,610,693 2025 240 13,600 8,981,868 24 14,560,133 23,542,001 Source: Town of Avon Community Development Department Commercial Construction Residential Construction H22 PRELIMINARY DRAFT TOWN OF AVON, COLORADO FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 2016 2017 2018 2019 2020 General Government Administration 4.60 4.60 5.00 6.00 5.00 Special Events 1.00 2.00 2.00 2.00 1.00 Human Resources 3.00 3.00 3.75 3.75 3.75 Finance 8.00 8.00 9.00 9.00 8.50 IT 0.00 0.00 0.00 0.00 0.00 Nondepartmental 1.00 1.00 1.00 1.00 1.00 Community Development 3.00 3.00 3.00 3.75 3.00 Police 20.40 20.40 21.50 22.50 22.50 Public Works: Engineering 2.00 2.00 2.00 2.00 2.00 Buildings and Facilities 4.00 5.00 5.00 5.00 5.00 Roads and Bridges, Parks 15.00 16.00 15.00 16.00 15.00 Mobility 6.00 6.00 8.00 8.00 8.00 Fleet Maintenance 8.00 8.00 8.00 8.00 8.00 Recreation 9.00 10.00 10.00 10.00 9.50 Total 85.00 89.00 93.25 97.00 92.25 2021 2022 2023 2024 2025 General Government Administration 6.00 8.30 8.30 9.00 9.00 Special Events 1.00 2.00 2.00 2.00 2.00 Human Resources 3.00 4.00 4.00 3.00 3.00 Finance 7.50 7.00 7.00 7.00 7.00 IT 0.00 2.00 3.00 3.00 3.00 Nondepartmental 1.00 0.00 0.00 0.00 0.00 Community Development 3.00 6.00 7.00 7.00 7.00 Police 20.50 25.55 25.45 25.75 27.75 Public Works: Administration 0.00 2.00 2.00 2.00 3.00 Engineering 3.00 3.00 5.00 5.00 3.00 Buildings and Facilities 3.00 7.00 7.00 7.00 7.00 Roads and Bridges, Parks 12.00 18.00 18.00 18.00 18.00 Mobility 8.00 10.00 9.00 9.00 9.00 Fleet Maintenance 8.00 9.00 9.00 9.00 9.00 Recreation 10.00 10.00 12.00 12.00 12.00 Total 86.00 113.85 118.75 118.75 119.75 Source: Town of Avon Budget H23 PRELIMINARY DRAFT TOWN OF AVON, COLORADO OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 2015 2016 Town of Avon Facilities and Services: Miles of Streets 23.73 23.73 Number of Street Lights 619 634 Culture and Recreation: Miles of Bike/Pedestrian Paths 8.82 9.32 Miles of dirt, singletrack trails 11.00 11.00 Parks / Lakes 5/1 5/1 Park Acreage 672 672 Tennis/Volleyball /Basketball Courts/Pickleball Courts 4 / 2 / 3 / 2 4 / 2 / 3 / 2 Recreation Centers 1 1 Softball / Soccer Fields 1 / 2 1 / 2 Playgrounds 4 4 Performance Art Pavilion 1 1 Police Protection: Number of Stations 1 1 Number of Police Personnel and Officers 21 23 Number of Patrol Units 15 15 Number of Law Violations: General Ordinance Violations 384 419 Traffic Violations 314 543 Parking Violations 282 234 Facilities and Services Not Included in the Reporting Entity: Libraries: Number of Libraries / Volumes 1 / 80,239 1 / 79,226 Water System: Miles of Water Mains 24.99 24.99 Number of Service Connections 3,897 3,917 Daily Average Consumption in Gallons 706,833 706,833 Maximum Daily Capacity of Plant in Gallons 10MGD 10MGD Sanitary Sewer System: Miles of Sanitary Sewers 33.44 33.44 Number of Treatment Plants 1 1 Number of Service Connections 4,038 4,086 Maximum Daily Capacity of Treatment Plant in Gallons 4.3MGD 4.3MGD Education: Number of Elementary Schools / Instructors 1 / 25 1 / 27 Fire Protection: Number of Stations 5 5 Number of Fire Personnel and Officers 64 67 Number of Calls Answered 2,357 636 Number of Inspections Conducted 154 122 Fiscal Year H24 PRELIMINARY DRAFT 2017 2019 2020 2021 2022 2023 2024 2025 23.73 23.73 23.73 24 24 24 24 25 646 666 699 699 734 764 821 821 9.32 9.44 9.51 9.51 9.51 9.51 9.51 9.51 11.00 11.00 11.00 11.00 11.00 11.00 11.00 11.00 5/2 5/2 5/2 5/2 5/2 5/2 5/2 5/2 672 672 672 672 672 672 672 672 4 / 2 / 3 / 2 4 / 2 / 3 / 2 4 / 2 / 3 / 2 4 / 2 / 3 / 2 2 / 2 / 3 / 6 2 / 2 / 3 / 6 2 / 2 / 3 / 6 2 / 2 / 3 / 6 1 1 1 1 1 1 1 1 1 / 2 1 / 2 1 / 2 0 / 2 0 / 2 0 / 2 0 / 2 0 / 2 4 4 4 4 4 4 4 4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 23 22 23 23 24.5 23.5 24.5 25.75 15 15 15 17 17 17 17 21 91 82 52 51 29 89 128 57 446 226 208 295 235 241 438 601 147 160 157 148 131 182 173 465 1 / 77,490 1 / 78,779 1 / 75,963 1 / 77,318 1 / 78,880 1 / 78,011 1 /83,325 1 /90,435 24.99 24.99 24.99 24.99 24.99 24.99 37 37 3,917 3,980 4,019 4,267 4,323 4,385 4,558 4,530 709,478 712,521 725,684 698,030 744,896 726,025 709,620 706,817 10MGD 10MGD 10MGD 10MGD 10MGD 10MGD 10MGD 10MGD 33.44 33.44 33.44 33.44 33.4 33.4 35.7 35.7 1 1 1 1 1 1 1 1 4,086 4,118 4,157 4,405 4,449 4,511 4,557 4,530 4.3MGD 4.3MGD 4.3MGD 4.3MGD 4.3MGD 4.3MGD 4.3MGD 4.3MGD 1 / 47 1 / 62 1 / 39 1 / 36 1 / 32 1 / 32 1 / 32 1 / 29 6 6 5 5 5 5 5 5 68 68 70 68 67 65 72 73 670 644 564 2,518 634 586 1,155 1,256 175 179 134 127 141 90 168 175 Fiscal Year H25 PRELIMINARY DRAFT McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.McMahanCPA.com Main Office: (970) 845-8800 Member: American Institute of Certified Public Accountants Denver, Colorado Avon, Colorado Florence, Alabama M & A To the Honorable Mayor and Town Council Town of Avon, Colorado We have audited the financial statements of Town of Avon, Colorado for the year ended December 31, 2025. Professional standards require that we provide you with the following information related to our audit. Qualitative Aspects of Accounting Policies Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by Town of Avon, Colorado are described in the Notes to the financial statements.No new accounting policies were adopted and the application of existing policies was not changed during the year. We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: Estimated useful lives for depreciation on fixed assets: Management’s estimate of depreciation is based on industry practice and experience. Allowance for doubtful accounts:The Town has a number of receivables from developers and others. Some of the amounts owed to the Town may be uncollectable. The Town has recorded an allowance for doubtful accounts to reflect any anticipated default on receivables based on management’s experience with customers, together with actual collections history since year-end. Estimated claims reserve: Management’s estimate of the claims reserve liability is based on actual claims activity relative to stop loss refunds and premiums charged to departments. Estimated liability for compensated absences based on historical leave accumulation, usage, and forfeiture data. Estimated discount rate, lease term, and lease payments/receipts used to determine present value of leasing arrangements. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. PRELIMINARY DRAFT To the Honorable Mayor and Town Council Town of Avon, Colorado Page 2 Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. The following material misstatements were detected and corrected as a result of audit procedures: Post net effect of prior year audit adjustments not posted to various funds so January 1, 2025 fund balances match December 31, 2024 audited fund balances. Record a construction payable in the Capital Projects Fund for services performed in 2025 but not invoiced until 2026. Record current capital asset activity on the Town’s proprietary funds Record the Town’s lease with Walgreens in accordance with applicable accounting standards (GASB 87) Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations As is required in an audit engagement we have requested certain representations from management that are included in the management representation letter. Recommendations We noted certain matters related to opportunities for improvement of internal controls and day-to-day operations, which are presented for your consideration below: Stale Checks During the audit, we noted various stale checks dating back to 2019 on the Town’s cash concentration bank account. We recommend the Town review stale checks frequently, follow up with vendors who have not cashed payments, void and reissue significantly aged checks as necessary, and, if necessary, remit unclaimed funds to the State of Colorado via the Great Colorado Payback Program.These steps will improve the Town’s controls over cash disbursements and reduce its susceptibility to potential check fraud. Transit Fund The Town’s Transit fund is currently set up as an enterprise fund. The basic premise of enterprise funds is that they are self-sustained through charges for services. As the Town does not charge for bus ridership, this fund does not meet that criterion and is instead funded by an annual transfer from the general fund. We understand that beginning in 2026, the Town has changed the Transit fund from an enterprise fund to a governmental fund, which is the appropriate classification. We are happy to advise and assist on this migration to the maximum extent allowed by auditor independence requirements. Self-Insurance Fund The Town accounts for its self-insurance plan (for employee health insurance) in its general fund. To align with governmental accounting best practices, we recommended in our 2024 governing board letter that, beginning in 2026, the town create a new internal service fund for self-insurance and account for insurance activities in this fund. We are happy to advise and assist on this migration to the maximum extent allowed by auditor independence requirements. PRELIMINARY DRAFT To the Honorable Mayor and Town Council Town of Avon, Colorado Page 3 Financial Reporting Model Improvements Financial reporting standards for the Town are promulgated by the Governmental Accounting Standards Board, which has issued Statement No. 103,Financial Reporting Model Improvements (“GASB 103”) to improve the effectiveness of financial reporting in certain areas of the financial statements. These improvements include updates to the Management Discussion and Analysis; defining and reporting unusual or infrequent items; changes in the presentation of proprietary fund statements, along with aligning changes in the Statistical Section of Annual Comprehensive Financial Reports; information about major component units in basic financial statements; and budgetary comparison information. GASB 103 is effective for reporting periods beginning after June 15, 2025, and all reporting periods thereafter, so the Town must apply this standard for the 2026 fiscal year. We will work with the Town to assist with implementation of this new standard. This letter is intended solely for the information and use of the Town Council, management, and others within the organization and is not intended to be, and should not be, used by anyone other than those specified parties. Sincerely, McMahan and Associates, L.L.C. Avon, Colorado PRELIMINARY DRAFT 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 INDIVIDUALS WITH DISABILITIES ARE ENCOURAGED TO PARTICIPATE IN ALL PUBLIC MEETINGS SPONSORED BY THE TOWN OF AVON. IF YOU REQUIRE A DISABILITY ACCOMMODATION, PLEASE CONTACT THE COMMUNITY DEVELOPMENT DIRECTOR, MATT PIELSTICKER, AT (970) 748-4413 OR MATT @AVON.ORG WITH YOUR REQUEST. REQUESTS SHOULD BE MADE AS SOON AS POSSIBLE BUT NO LATER THAN 72 HOURS BEFORE THE SCHEDULED PUBLIC EVENT. AVON PLANNING & ZONING COMMISSION Meeting Minutes (DRAFT) Monday, June 8, 2026 Public Meeting Begins at 5:30 PM TEAMS LINK: https://teams.microsoft.com/meet/254678162475363?p=WWgi5TWN1YgrtRPIuU To join meeting via phone, dial (945) 468-5504 and enter conference ID: 135004412# 1. Call to Order and Roll Call (Chairperson) – 5:30 PM Meeting commenced at 5:30 PM. A rollcall was taken, and Planning Commissioners Carly Hansen, Rick Sudekum, Elizabeth Waters, and Nancy Tashman were present. Commissioner Nicole Murad was present remotely. Commissioners Brad Christianson and Brian Sipes were absent. Also present were Planning Manager Jena Skinner, Planner II Claire Perez, Community Development Director Matt Pielsticker, Town Attorney Nina Williams, Town Manager Eric Heil, and Development Coordinator Emily Block. 2. Approval of Agenda ACTION: Commissioner Tashman made a motion to approve the agenda. Commissioner Hansen seconded the motion, and the motion passed unanimously 5-0. 3. Disclosure of any Conflicts of Interest or Ex-Parte Communication Related to Agenda Items 4. Public Comment – Comments are Welcome on Items Not Listed on the Following Agenda Public Comments are limited to three (3) minutes. The speaker may be given one (1) additional minute subject to Planning and Zoning Commission approval. 5. Public Hearing 5.1. CPA26-001 Community Housing Plan Updates (tabled from April 27 meeting) – Jena Skinner, Planning Manager ACTION: Commissioner Hansen made a motion to continue the item to the June 22nd, 2026 meeting. Commissioner Tashman seconded the motion, and the motion passed unanimously 5-0. 6. Consent Agenda 6.1. May 11, 2026 Planning and Zoning Commission Meeting Minutes ACTION: Commissioner Tashman made a motion to approve the meeting minutes. Commissioner Waters seconded the motion, and the motion passed unanimously 5-0. 6.2. Record of Decision: SRU26-001 Walkin the Dog 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 INDIVIDUALS WITH DISABILITIES ARE ENCOURAGED TO PARTICIPATE IN ALL PUBLIC MEETINGS SPONSORED BY THE TOWN OF AVON. IF YOU REQUIRE A DISABILITY ACCOMMODATION, PLEASE CONTACT THE COMMUNITY DEVELOPMENT DIRECTOR, MATT PIELSTICKER, AT (970) 748-4413 OR MATT @AVON.ORG WITH YOUR REQUEST. REQUESTS SHOULD BE MADE AS SOON AS POSSIBLE BUT NO LATER THAN 72 HOURS BEFORE THE SCHEDULED PUBLIC EVENT. ACTION: Commissioner Tashman made a motion to approve the record of decision. Commissioner Hansen seconded the motion, and the motion passed unanimously 5-0. 7. Future Meetings 7.1. June 22, 2026 7.2. July 13, 2026 – Commissioner Sudekum will be absent 8. Recently Approved Applications Summit at Avon Development Agreement (approved by Town Council) 9. Staff Updates 10. Adjourn The meeting was adjourned at 7:46 PM. APPROVED: CHAIRPERSON 970-748-4044 dstockdale@avon.org TO: Honorable Mayor Tamra N. Underwood and Council Members FROM: Dean Stockdale, Senior Accountant RE: Financial Report – April 2026 & May 2026 data DATE: June 12th, 2026 SUMMARY: This report presents the revenues for sales, accommodations, nicotine and cigarette, and short-term rental tax for April 2026 and the recreation fees, real estate transfer tax, and use tax for CH revenues for May 2026. BACKGROUND: The percentage variance, or comparative change is reflected in the analysis portion of this report in respect to each individual section for March and April 2026 revenues. 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. GENERAL FUND REVENUE SUMMARY: Tax Revenue Comparison – 2025 v 2026: Sales tax, Accommodations tax, and Cigarette tax are unfavorable for 2026 compared to 2025. While Nicotine tax, Rec Admissions and Rec Program fees are favorable to 2025. Below is a table which reflects the dollar change and percentage variance. Total revenue for 2026 is reflecting an unfavorable variance to 2025. 2025 v 2026 YTD REVENUE COMPARISON 2025 2026 Dollar Variance Percentage Variance Sales Tax $4,810,475.22 $4,475,640.15 ($334,835.07) (6.96%) Acc. Tax $1,117,797.10 $909,697.88 ($208,099.22) (18.62%) Nicotine Tax $112,001.34 $120,627.28 $8,625.94 7.70% Cigarette Tax $69,315.00 $62,577.00 ($6,738.00) (9.72%) Rec Admissions $516,897.86 $558,102.90 $41,205.04 7.97% Rec Program Fees $205,100.31 $210,101.25 $5,000.94 2.44% TOTAL $6,831,586.83 $6,336,746.46 ($494,840.37) (7.24%) Page 2 of 12 Adopted Budget 2026 v Actual 2026: All taxes reflect an unfavorable variance over the 2026 budget. Rec Center Admissions and Rec Program Fees revenue is favorable compared to the 2026 budget. Total revenue for 2026 is reflecting an unfavorable variance to the 2026 budget. Below is a table which reflects the dollar change and percentage variance. COMMUNITY HOUSING REVENUE SUMMARY: 2026 REVENUE COMPARISON – BUDGET V ACTUAL Budget Actual Dollar Variance Percentage Variance Sales Tax $4,924,184.79 $4,475,640.15 ($448,544.64) (9.11%) Acc. Tax $1,204,094.81 $909,697.88 ($294,396.93) (24.45%) Nicotine Tax $122,440.05 $120,627.28 ($1,812.77) (1.48%) Cigarette Tax $76,212.85 $62,577.00 ($13,635.85) (17.89%) Rec Admissions $495,059.50 $558,102.90 $63,043.40 12.73% Rec Program Fees $187,010.86 $210,101.25 $23,090.39 12.35% TOTAL $7,009,002.86 $6,336,746.46 ($672,256.40) (9.59%) 2025 v 2026 YTD REVENUE COMPARISON 2025 2026 Dollar Variance Percentage Variance STR Tax for CH $517,356.35 $434,116.23 ($83,240.12) (16.09%) Use Tax for CH $125,655.60 $211,765.17 $86,109.57 68.53% TOTAL $643,011.95 $645,881.40 $2,869.45 0.45% 2026 REVENUE COMPARISON – BUDGET V ACTUAL Budget 2026 Dollar Variance Percentage Variance STR Tax for CH $495,628.87 $434,116.23 ($61,512.64) (12.41%) Use Tax for CH $208,333.33 $211,765.17 $3,431.84 1.65% TOTAL $703,962.20 $645,881.40 ($58,080.80) (8.25%) Page 3 of 12 REVENUE ANALYSIS: Sales Tax: Revenues – April 2026: April sales tax revenues totaled $617,010. This is a decrease of $38,239 or 5.84% compared to April 2025 sales tax revenue of $655,250. APRIL 2025 v APRIL 2026 SALES TAX COMPARISON BY INDUSTRY April 2025 April 2026 Increase/Decrease Home/Garden $66,734.29 $76,788.52 $10,054.23 Grocery/Specialty/Health $152,183.09 $146,970.56 ($5,212.53) Sporting Goods Retail/Rental $41,252.85 $37,080.88 ($4,171.97) Miscellaneous Retail $29,203.51 $29,543.43 $339.92 Accommodations $60,184.71 $42,847.47 ($17,337.24) Restaurants/Bars $126,707.14 $99,875.64 ($26,831.50) Other $10,772.35 $17,517.69 $6,745.34 Service Related $23,462.79 $30,035.51 $6,572.72 Liquor Stores $15,802.60 $9,294.96 ($6,507.64) E-Commerce Retail $79,368.79 $71,243.56 ($8,125.23) Manufacturing/Wholesale $11,558.98 $12,155.37 $596.39 Construction Related Services $30,440.54 $36,161.02 $5,720.48 Digital Media Suppliers/Sellers $6,770.94 $6,790.23 $19.29 Commercial/Industrial Equipment $807.54 $705.99 ($101.55) Special Events $0.00 $0.00 $0.00 TOTAL $655,250.12 $617,010.83 ($38,239.29) Sales Tax: April 2026 Budget v Actual Collections: April 2026 sales tax revenues totaled $617,010. This is a decrease of $50,903 over the April 2026 estimate of $667,913. This is 7.62% below the adopted 2026 budget (based on a 3-year average). APRIL 2026 BUDGET v ACTUAL COLLECTIONS - SALES TAX 2026 Budget 2026 Actual Dollar Variance Percentage Variance April $667,913.96 $617,010.83 ($50,903.13) (7.62%) Page 4 of 12 Accommodation Tax: Revenues –April 2026: Accommodation tax revenues totaled $42,834 for the month of April. This is a decrease of $19,441 or 31.22% compared to April 2025 accommodation tax revenues, which totaled $62,276. Accommodation tax collections by industry type for April 2026 compared to April 2025 reported a decrease for Vacation Rentals, Time Share and Hotels. APRIL 2025 v APRIL 2026 ACCOMMODATION TAX COMPARISON BY INDUSTRY April 2025 April 2026 Increase/(Decrease) Timeshares $13,629.30 $8,072.19 ($5,557.11) Hotels $20,999.15 $12,499.25 ($8,499.90) Vacation Rentals $27,647.55 $22,263.07 ($5,384.48) TOTAL $62,276.00 $42,834.51 ($19,441.49) 618,675.15 676,047.57 638,080.60 655,250.12 $617,010.83 9.27% -5.62% 2.69% -5.84% $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 2022 2023 2024 2025 2026 2022-2026 April Sales Tax Revenue Trend Page 5 of 12 April 2026 Budget v Actual Collections: April 2026 accommodation tax revenues totaled $42,834. This is a decrease of $36,972 compared to the April 2026 estimates of $79,807. This is 46.33% below the adopted 2026 budget (based on a 3-year average). APRIL 2026 BUDGET v ACTUAL COLLECTIONS - ACCOMMODATIONS TAX 2026 Budget 2026 Actual Dollar Variance Percentage Variance April $79,807.28 $42,834.51 ($36,972.77) (46.33%) Short Term Rental Tax for CH: Revenues – April 2026: STR Tax for Community Housing totaled $19,328 for the month of April. This is a decrease of $7,901 or 29.02% compared to April 2025. The Westin Hotel is classified as a hotel in our MuniRevs system, although they are zoned as residential. APRIL 2025 v APRIL 2026 STR TAX FOR CH COMPARISON BY INDUSTRY April 2025 April 2026 Increase/(Decrease) Timeshares $6,814.64 $4,036.10 ($2,778.54) Hotels $7,480.82 $4,160.40 ($3,320.42) Vacation Rentals $12,933.86 $11,131.59 ($1,802.27) TOTAL $27,229.32 $19,328.09 ($7,901.23) 91,810 90,543 67,548 62,276 42,835 -1.38% -25.40%-7.80% -31.22% $0 $50,000 $100,000 $150,000 2022 2023 2024 2025 2026 2022-2026 April Accommodation Tax Revenue Trend Page 6 of 12 Nicotine & Cigarette Tax: Revenues – April 2026: Nicotine tax revenues totaled $24,514 and cigarette tax revenues totaled $14,523 for April 2026. Compared to April 2025 revenues, this is an increase of $123 for nicotine tax revenues, which totaled $24,390 and a decrease of $1,830 for cigarette tax revenues, which totaled $16,353. Vapes and all other miscellaneous tobacco and nicotine products are included in the nicotine tax and are subject to the 40% tax rate. 24,663 26,605 22,456 24,391 24,515 7.87% -15.59% 8.62%0.51% - 5,000 10,000 15,000 20,000 25,000 30,000 2021 2022 2023 2024 2025 2022-2026 April Nicotine Tax Revenue Trend 18,234 19,665 19,221 16,353 14,523 7.85% -2.26% -14.92% -11.19% - 5,000 10,000 15,000 20,000 25,000 2021 2022 2023 2024 2025 2022-2026 April Cigarette Excise Tax Revenue Trend Page 7 of 12 April 2026 Adopted Budget v Actual Collections: April 2026 nicotine and cigarette tax revenues totaled $24,514 and $14,523, respectively. This is a decrease of $1,062 over the April 2026 budget for nicotine tax, which is $25,576 and a decrease of $4,314 over the April 2026 budget for cigarette tax estimates, which is $18,837 which is based on a 3-year average. APRIL 2026 BUDGET v ACTUAL COLLECTIONS – NICOTINE AND CIGARETTE TAX REVENUES 2026 Budget 2026 Actual Dollar Variance Percentage Variance Nicotine $25,576.66 $24,514.65 ($1,062.01) (4.15%) Cigarettes $18,837.61 $14,523.00 ($4,314.61) (22.90%) Total ($5,376.61) Use Tax for Community Housing: Revenues – May 2026: The use tax for community housing collected in the month of May 2026 was $114,387. Compared to May 2026 estimate of $41,666, this is an increase of $72,721. MAY 2026 BUDGET v ACTUAL COLLECTIONS – USE TAX REVENUES 2026 Budget 2026 Actual Dollar Variance Percentage Variance Use Tax for CH $41,666.67 $114,387.96 $72,721.29 174.53% Real Estate Transfer Tax: Revenues – May 2026: May 2026 real estate transfer tax totaled $262,466. Compared to May 2025, which totaled $696,262, this is a decrease of $433,796. This is a decrease of $87,748 over the May 2026 budget which was based on a 3-year average. 2026 BUDGET v ACTUAL COLLECTIONS – REAL ESTATE TRANSFER TAX REVENUES 2026 Budget 2026 Actual Dollar Variance Percentage Variance Real Estate Transfer Tax $350,215.10 $262,466.58 ($87,748.52) (25.06%) Page 8 of 12 Real Estate Transfer Tax: Revenues 2026: 2026 real estate transfer tax totals 1,900,062. Compared to 2025, which total $1,917,034, this is a decrease of $16,972. This is an increase of $3,077 compared to the 2026 budget which was based on a 3-year average. 2026 BUDGET/PRIOR YEAR v ACTUAL COLLECTIONS – REAL ESTATE TRANSFER TAX REVENUES 2026 Budget 2026 Actual Dollar Variance Percentage Variance Real Estate Transfer Tax $1,896,985.15 $1,900,062.65 $3,077.50 0.16% 2025 Actual 2026 Actual Dollar Variance Percentage Variance Real Estate Transfer Tax $1,917,034.97 $1,900,062.65 ($16,972.32) (0.89%) $378,321 $433,787 $714,231 $367,503 $365,660 14.66% 64.65% -48.55%-0.50% $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 2022 2023 2024 2025 2026 Real Estate Transfer Tax April Revenue Trends Page 9 of 12 Recreation Center Fees: Revenues – May 2026 Admissions & Program Fees: Recreation admission revenues for May 2026 totaled $88,624 is an increase of $21,614 compared to May 2025 which totaled $67,010. This is $20,538 above the adopted 2026 budget estimates of $68,085. Recreation program fee revenues for May 2026 totaled $41,742. This is an increase of $8,090 compared to 2025, which totaled $33,652. This is $7,011 above the adopted 2026 budget estimates of $34,731, which is calculated based on a 3-year average. 86,023 85,251 58,067 67,010 88,624 -0.90% -31.89% 15.40% 32.25% - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 2022 2023 2024 2025 2026 Recreation Admissions May Revenue Trends $16,893 $33,347 $37,142 $33,653 $41,743 97.41% 11.38% -9.39% 24.04% $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 2022 2023 2024 2025 2026 Recreation Program Fees May Revenue Trends Page 10 of 12 New and Renewed Business and STR Licenses – 2025 v 2026: The total number of 2026 business licenses issued thru May was 323. This was down 94 licenses or 22.5% for the year to date. The total number of STR licenses issued through May was 104, which was flat compared to 2025. - 50.00 100.00 150.00 200.00 250.00 300.00 350.00 Business License - Vendor Business License - Fixed Location Business License - Home Occupation Business License - Special Event Business Licenses Issued 1/1 -5/31 2024 2025 2026 2025 v 2026 – BUSINESS AND STR LICENSES – YEAR TO DATE 2025 2026 License Variance Percentage Variance Business License - Vendor 314 216 (98) (31.2%) Business License – Fixed Location 80 80 0 0.0% Business License – Home Occupation 20 21 1 5.0% Business License – Special Event 3 6 3 100.0% TOTAL BUSINESS LICENSES 417 323 (94) (22.5%) STR License 104 104 0 0.0% Page 11 of 12 EXPENDITURES: May 2026 General Fund YTD Actuals v 2026 Budget: General Fund expenditures through May 2026 total $9,677,688 which is 35.67% 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 2026 Budget: Mobility Fund expenditures through May 2026 total $1,788,281.15 which is 61.09% of the total adopted budget. These expenditures include the cost for wages, health benefits, consulting services, and utilities. Fleet Maintenance YTD Actuals v 2026 Budget: Fleet Maintenance expenditures through May 2026 total $791,962 which is 32.35% 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 2026 Budget: The Capital Improvement expenditures through May 2026 total $2,061,518 which is 10.75% of the total adopted budget. These expenditures were primarily made up from the public works garage, Avon Rd cross walk improvements, and Hwy 6 improvements. DESTIMETRICS ANALYSIS • Booking Pace was slightly negative in May, with bookings for all arrival months except October declining. • The ADR for bookings in May was up over 7% from bookings made last May, helping offset the pace decline. • Overall, seasonal occupancy is up 3.7%, gaining in all months but October. ADR is up 6.4 percent and strengthened during May, & is up in all months. Even better, RevPAR is up a very strong 10.3 percent YOY, with double-digit gains in May, July, and September. • The 4th of July holiday is looking positive, and a long weekend is forming around the event with strong arrivals scheduled for Friday, July 3. • Length-of-Stay has jumped and lead-times are ensuring a good baseline of bookings for July onward. • Canadian travel looks like it may be on the rise, albeit modestly, and is still down dramatically from 2024. • Most of the bottom-line success is coming from the Luxury sector while Economy and Moderate properties keep looking for momentum. 80 85 90 95 100 105 110 STR License STR Licenses Issued 1/1 -5/31 2024 2025 2026 Source: DestiMetrics. Copyright 2026. 27 % 27 % 28 % 31 % 37 % 42 % 36 % 39 % 40 % 38 % 47 % 49 % 51 % 37 % 51 % 54 % 56 % 47 % 51 % 50 % 34 % 33 % 36 % 36 % 44 % 51 % 49 % 37 % 37 % 34 % 32 % 42 % 58 % 53 % 34 % 43 % 43 % 40 % 49 % 59 % 77 % 47 % 45 % 48 % 43 % 46 % 49 % 44 % 35 % 29 % 33 % 35 % 37 % 31 % 28 % 28 % 36 % 37 % 41 % 37 % 39 % 30 % 33 % 40 % 49 % 50 % 49 % 34 % 37 % 35 % 33 % 40 % 40 % 40 % 35 % 58 % 67 % 68 % 58 % 61 % 51 % 35 % 40 % 50 % 48 % 43 % 44 % 42 % 34 % 31 % 33 % 35 % 48 % 52 % 42 % 31 % 31 % 38 % 38 % 50 % 54 % 65 % 37 % 33 % 42 % 45 % 48 % 49 % 43 % 28 % 25 % 26 % 42 % 42 % 33 % 32 % 29 % 27 % 26 % 27 % 32 % 34 % 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1- J u n - 2 6 2- J u n - 2 6 3- J u n - 2 6 4- J u n - 2 6 5- J u n - 2 6 6- J u n - 2 6 7- J u n - 2 6 8- J u n - 2 6 9- J u n - 2 6 10 - J u n - 2 6 11 - J u n - 2 6 12 - J u n - 2 6 13 - J u n - 2 6 14 - J u n - 2 6 15 - J u n - 2 6 16 - J u n - 2 6 17 - J u n - 2 6 18 - J u n - 2 6 19 - J u n - 2 6 20 - J u n - 2 6 21 - J u n - 2 6 22 - J u n - 2 6 23 - J u n - 2 6 24 - J u n - 2 6 25 - J u n - 2 6 26 - J u n - 2 6 27 - J u n - 2 6 28 - J u n - 2 6 29 - J u n - 2 6 30 - J u n - 2 6 1- J u l - 2 6 2- J u l - 2 6 3- J u l - 2 6 4- J u l - 2 6 5- J u l - 2 6 6- J u l - 2 6 7- J u l - 2 6 8- J u l - 2 6 9- J u l - 2 6 10 - J u l - 2 6 11 - J u l - 2 6 12 - J u l - 2 6 13 - J u l - 2 6 14 - J u l - 2 6 15 - J u l - 2 6 16 - J u l - 2 6 17 - J u l - 2 6 18 - J u l - 2 6 19 - J u l - 2 6 20 - J u l - 2 6 21 - J u l - 2 6 22 - J u l - 2 6 23 - J u l - 2 6 24 - J u l - 2 6 25 - J u l - 2 6 26 - J u l - 2 6 27 - J u l - 2 6 28 - J u l - 2 6 29 - J u l - 2 6 30 - J u l - 2 6 31 - J u l - 2 6 Oc c u p a n c y R a t e Day Avon Daily Occupancy Report as of May 31, 2026 "RETAIL REPORT": 60-DAY ADVANCE VIEW 2026 YTD as of 5/31/26 (5 properties included) 2025 YTD as of 5/31/25 (5 properties included) 2025 - historic actuals (5 properties included) Report Date: 5/31/2026 N 970-748-4083 clin@avon.org TO: Honorable Mayor Underwood and Council members FROM: Charlotte Lin, Sustainability Manager RE: Quarterly Sustainability Report DATE: June 20, 2026 SUMMARY: This report provides a consolidated progress update on the Town of Avon’s Climate Action & Sustainability Plan initiatives for the period of January to February 2026. As the manager for the Eagle County Climate Action Plan, adopted by the Town of Avon in 2020, the Sustainability Division coordinates implementation across departments, external partners, and regional collaborators and tracks progress toward Council-adopted goals. No action is required by Council. BACKGROUND: Following the implementation of the Town’s Climate Action & Sustainability Plan in 2023– 2025, the Town continues into 2026 with four official Sustainability Goals and 40 active projects and ongoing programs, all of which have direct impact to Avon’s Community-Wide Greenhouse Gas Inventory as well as Avon’s contribution to the Eagle County Climate Action Plan. The Sustainability Division serves as the coordinating body for the Eagle County Climate Action Plan, responsible for program implementation, interdepartmental alignment, external partnerships, performance tracking, and consolidated reporting to Council. Individual projects are implemented by Sustainability staff and relevant operating Town Departments (Engineering, Public Operations, Community Development, Mobility, Fleet, Special Events, Communication & Marketing) based on functional responsibility. The progress summarized below reflects the contributions of all departments and external partners under this coordinated framework. Official Goals 1. Commercial Composting Pilot Program Implementation and Evaluation o The program has continued with 8 participants, with 3 more in preparation to join. o The Q1 report was released at the end of March (Attachment A). o The Vail Daily reported the program’s progress in April: Avon’s Commercial Composting Pilot Program Shows Early Success. o 25 yards of compost has been returned to the Town (12 yard for the Northside Farm and 13 yard for the Town). Application of the compost will be reported in Q3. 2. Recycling Reinforcement & Compliance o Waste audits continued – Eaglebend was completed in Q2. Staff is working on scheduling Buffalo Ridge 1 & 2, the last properties on the list. o A summary of the audits will be provided when all of them are completed. 3. Town-wide Geothermal Feasibility Study (Phase 1) o The pre-feasibility study grant application to DOLA was submitted in May, and the Town received the award in early June. Staff is working with DOLA on the next steps. 4. Single-use Plastic Ban o The Town aims to align with the Town of Vail on this policy. No public-facing updates are available from March to June 2026. o Vail Health is advancing the topic of microplastics education (Attachment B), which is complementary to the single-use plastics ban. Sustainability Projects Materials Management 5. Extended Producer Responsibility Reimbursement Page 2 of 4 o The Town’s 2 applications (Outreach & Marketing, and the Community Recycling Drop-Site Management) were officially moved into further evaluation in May. Results should be available in late June. 6. Monitor polystyrene recycling program o A pilot volunteer program is planned to help sort the polystyrene collection prior to melting. The pilot will assess the effectiveness and usefulness of volunteers to aid the Public Works team’s daily workload on the polystyrene recycling program. 7. Monitor State polystyrene ban at Avon restaurants o No updates from March to June 2026. 8. Internal Purchasing Policy & Zero Waste at Town o Reinforcement has continued through Town events; no updates from March to June 2026. 9. Track waste diversion data from waste haulers o Staff is waiting for the Town’s Q2 waste diversion data from haulers. o Eagle County’s 2025 Waste Diversion report was released in May (Attachment C). A retroactive adjustment has brought recent diversion rates down by about 1%. Overall, the diversion rates are consistent with a small drop. Eagle County Solid Waste & Recycling suggests that the construction cycles contribute to the ebb and flow, and that the overall amount of solid waste created in the County is increasing, despite recycling efforts. 10. Construction & Demolition waste diversion in Avon o C&D waste collection continues in Avon’s various construction sites. No major updates in March to June 2026. Buildings – Energy Efficiency & Electrification 11. Monitor Energy Smart Rebates o Staff has been promoting the Energy Smart program via news ads, digital ads, social posts, bus ads, and the Sustainability Fair. o WM Energy Team will present 2025 results and 2026 plans to Council in late June. 12. Ensure Avon Building Analysts complete assessment goals o Staff is working with WM Energy team to assign assessments to our existing analysts and provide any assistance as needed to ensure they reach the assessment goals. 13. Municipal buildings benchmarking & electrification progress o The new Public Works Garage is being benchmarked in addition to the 5 municipal buildings already benchmarked. The first operations report was released in June; the building is operating under budget and is expected to sell back energy to Holy Cross. o Staff is working on an energy profile that shows the breakdown between fossil fuels and renewable energy usage in order to better understand an electrification path forward. Energy Supply 14. Track Holy Cross Energy Updates o HCE reported 100% renewable energy in the month of March (Vail Daily article). Transportation & Mobility 15. Track Avon employee carpooling reimbursement o The program is progressing; mid-year data will be reported in Q3. 16. Monitor EV charging in Avon o Public EV charging usage is still increasing at roughly 20%+ year-over-year. Page 3 of 4 o April was flat due to seasonality, but total usage still exceeded last year. Off-season months are useful indicators of local EV adoption because they are less visitor-driven. 17. Monitor progress of DC Fast Charging Plaza o Martin/Martin has been selected/contracted for design work. o Two possible locations are under review: Expansion near the existing Christie Sports chargers & the Sun & Ski parking lot. o Key evaluation factors include power access, drainage, visibility, accessibility, and cost. o Contract is expected around July 15, with design/site evaluation taking about four months. o Construction is now likely targeted for April 2026, depending on final design and contracting. 18. Support CAC’s EV Charging Cohort o The Ark is planning to install 3-4 DC fast chargers on their property. Town Staff and the EV Charging Cohort are working with them through the process. 19. Promote Sole Power and Sole Power+ o The summer competition started on May 25 and will continue to October 12, 2026. A staff kickoff party was held on May 26. 20. Anti-idling: additional signs o No updates from March to June 2026. 21. Shift Bike Progress o The program is progressing; no major updates from March to June 2026. 22. Biodiesel research o No updates from March to June 2026. 23. 10-Year Transit Plan o CDOT’s 10-year planning grant and the Clean Transit Enterprise grants allow the Town to  Conduct necessary planning activities for the future transit center  Determine the number of bus stops needed for Town buses, Bustang, and CORE Transit, as well as their ideal locations.  A new Town bus route up to Beaver Creek is activated for the summer.  Proterra buses are being replaced by two Gillig electric buses in 2027. Climate Action Collaborative 24. Eagle County Climate Action Plan update o Staff has been working with the CAC to finalize the updates to the Eagle County Climate Action Plan. A work session will be scheduled to formally adopt it once finalized. Education & Communication 25. Website updates o Website updates are planned along with the website re-design work in Q2 and Q3. 26. Visitor education o A potential pilot project to design a 3-panel “Sustainability Passport” brochure is planned. 27. Staff Sustainability Training o No major updates from March to June 2026. 28. Sustainability Fair & Town Clean Up o The 2026 Sustainability Fair took place on May 16, along with the week-long Town Clean Up event from May 10 to 16. Page 4 of 4 Sustainability Grants 29. DOLA Admin Grant (for geothermal) o This grant was awarded on June 10. 30. CEO Impact Accelerator Grant o This grant was awarded in April; an education work session about it is scheduled in late June. 31. C3 Grant for composting o Staff aims to apply for this grant in July/August. Sustainability Finance & Investment 32. Economic function added to ClearPath 2.0. o This project is in progress; no major updates from March to June 2026. 33. Research on sustainable banking & finance o No progress was made from March to June 2026. Water, Wildfire & Resiliency 34. Storm Drain Decals o The continuation of this program in 2026 is under discussion. 35. Avon & Regional Water Conservation Programs o The “Garden in a Box” program is back for 2026. o ERWSD-led Water working group:  Live Like a Local Campaign launched in May. The goal is to connect everyone (esp. high users) to the reasons they live here and to encourage water conservation behaviors through smarter irrigation, leak detection, and other conservation practices. 36. Avon & Regional Wildfire Programs o Fire codes were updated by the Community Development Department through Q2. o The Town helped promote the Chipping & Slash Removal Program by Eagle County Wildland. o The Town finalized the $80K contribution to the Eagle River Fire Protection District. The project will reduce wildfire fuel materials in the West Avon Preserve in areas that are closest to existing homes and several areas near adjacent to the I-70 corridor. The work is expected to commence by mid-May. 37. Avon Soil Health & Carbon Sequestration Activities o Avon’s usage of compost from the Commercial Composting Pilot Program is included in Official Goal #1 at the top of this report. o No other major updates from March to June 2026. Thank you, Charlotte ATTACHMENT A: Town of Avon Commercial Composting Program Q1 Compost Report ATTACHMENT B: Vail Health: Microplastics - What Our Community Should Know ATTACHMENT C: 2025 Eagle County Diversion Report Town of Avon Commercial Compost Pilot Program Q1 Compost Report November 26, 2025 through March 30, 2026 Assumptions: Volume to Weight conversion = 5.35 pounds per gallon Calculation based on actual weights of containers collected from the route on January 14, 2026 Cart to Volume conversion = 202 gallons per yard Volume report calculated based on route notes taken by drivers noting how full the containers were at the time of collection. Diversion report: Volume: 4040 gallons / 202 = 20 yards Weight: 4040 gallons * 5.35 = 21,614 pounds 21,614 pounds / 2000 = 10.8 tons of material diverted from the landfill Discussion: Monthly site visits were conducted to check in with the kitchen champions, deliver more compostable bags, and answer questions. Additional spot checks were also conducted on a bi- weekly basis to check for contamination and participation. Site visits occurred on: 11/3/25, 11/24/25, 12/10/25, 1/14/26, and 2/26/26 Notes: Notes from site visits, spot checks and driver observations: -Many of the restaurants had a slow start in participation. With the exception of Foods of Vail who was filling up their container from day one and consistently diverts 60 to 90 gallons of food waste from their prep kitchen every week. -Fiesta Jalisco is diverting the most waste from landfill, they have 300-400 gallons of material in their compost bins on a weekly basis. -A few participants are still ramping up their diversion and figuring out procurement issues to reduce contamination. -Very few contamination events have occurred in the first quarter of the program. The biggest culprits are disposable gloves, non-compostable serviceware (only from one participant) and black plastic bags (only when they run out of compostable bags) -We notice participation increased and contamination decreases in the service days directly following our site visits. -We have identified champions at each participating restaurant to take ownership of the compost program. Champions vary for each location and include: head chefs, prep cooks, owners, and managers. We notice if the champion goes on vacation, participation ATTACHMENT A dwindles while they are gone. We also notice that champions have been actively training their counterparts and direct reports. -Offering training and site visits in Spanish has been extremely well received. Participants with the highest diversion rates and lowest contamination have been those who have a primarily Spanish speaking team in the Back of House operations. -Bear resistant carts seem to be sufficient in the enclosures but two locations have all metal bear proof carts that live outside. With the warmer weather, we will be monitoring these to ensure the safety of wildlife and the community. -Northside has requested 10-15 yards of compost to be delivered to their garden so they can help close the loop on organics recycling locally and promote the program more broadly to the community through their food to table concepts. Local Concern As snow melts, microplastics are carried downstream, contaminating diverse water sources and ecosystems. Action Items Reduce single-use plastics Water bottles, bags, packaging Properly dispose and care for outdoor equipment Fishing line Use PFAS free ski wax Choose clothing made of natural fiber Support watershed volunteer cleanups and restoration groups Eagle River Coalition Share this information - Awareness drives action! Water Sources Atmosphere MICROPLASTICS: WHAT OUR COMMUNITY SHOULD KNOW WHAT ARE MICROPLASTICS? Plastic smaller than 5mm Created when larger plastics breakdown, shed from clothing, tiers, packaging, manufacturing, and outdoor gear. They don’t biodegrade Become smaller and spread globally. WHERE ARE MICROPLASTICS FOUND? Aquatic Health Insects Fish Soil Quality Ecosystem function Bird and Animal ingestion ENVIRONMENTAL IMPACTS HUMAN HEALTH CONCERNS Ocean Lakes Rivers Streams Soil Farmland Human Organs Milk Bottled Water Fish Produce Honey Carry chemicals and heavy metals into the human body Found in human organs Possible impacts Inflammation Hormone disruption Respiratory conditions HOW DO WE MOVE FORWARD? Human Exposure Inhalation Ingestion Dermal Aquatic Life Microplastic Sources Primary SecondaryMicrobeads Fibers Tires Plastic Bottles Deposits ATTACHMENT B 2025 Eagle County Diversion Report Eagle County Diversion Rates Recycled Material (Residential & Commercial) 2010 Tons 2011 Tons 2012 Tons 2013 Tons 2014 Tons 2015 Tons 2016 Tons 2017 Tons 2018 Tons 2019 Tons 2020 Tons 2021 Tons 2022 Tons 2023 Tons 2024 Tons 2025 Tons MSW Recycled Residential and Commercial ab 4,188 7,036 7,595 8,284 9,535 13,683 11,735 10,743 14,006 13,711 16,544 17,108 17,422 15,305 12,147 16,616 Organics c 5,907 4,231 3,856 4,808 6,432 4,798 5,134 4,175 4,007 5,656 7,522 8,307 14,538 10,510 12,737 9,836 Ewaste d 34 55 60 102 125 138 130 144 101 108 100 104 111 110 102 82 -------- - ------- Total MSW Recycled 10,129 11,322 11,510 13,194 16,092 18,619 16,998 15,061 18,114 19,475 24,166 25,519 32,071 25,925 24,986 26,534 Total MSW Disposed e 58,547 47,472 47,336 46,246 48,693 50,549 51,430 52,676 51,583 50,904 53,995 52,600 49,879 56,404 62,729 63,581 Total MSW Generated 68,676 58,794 58,846 59,440 64,785 69,168 68,428 67,737 69,697 70,379 78,161 78,119 81,951 82,330 87,715 90,115 MSW Recycling Rate f 14.7% 19.3% 19.6% 22.2% 24.8% 26.9% 24.8% 22.2% 26.0% 27.7% 30.9% 32.7% 39.1%31.5% 28.5%29.4% Diverted Materials (Industrial)2010 Tons 2011 Tons 2012 Tons 2013 Tons 2014 Tons 2015 Tons 2016 Tons 2017 Tons 2018 Tons 2019 Tons 2020 Tons 2021 Tons 2022 Tons 2023 Tons 2024 Tons 2025 Tons Diverted Materials (non-MSW)855 1,595 2,669 1,583 1,734 521 96 92 4,159 2,863 22,402 21,001 21,249 9,681 13,754 11,445 Total Recovered Material (Residential, Commercial, and Industrial) g 10,984 12,917 14,179 14,777 17,826 19,140 17,094 15,153 22,273 22,337 46,568 46,520 53,321 35,606 38,740 37,980 Total Solid Waste Disposed 86,988 82,539 68,480 69,552 78,862 78,505 82,770 84,022 104,642 90,713 106,193 115,888 115,749 118,742 133,558 136,155 Total Solid Waste Generated 97,972 95,456 82,659 84,329 96,688 97,645 99,863 99,175 126,915 113,050 152,760 162,408 169,070 154,348 172,298 174,134 Diversion Rate 11.2% 13.5% 17.2% 17.5% 18.4% 19.6% 17.1% 15.3% 17.5% 19.8% 30.5% 28.6% 31.5% 23.1% 22.5%21.8% a Includes: Glass, Plastics #1 - #7, OCC, ONP, OP, steel, tires, aluminum, soft plastics b Sources: Vail Resorts, Waste Management, Vail Valley Waste, Honeywagon, Apex, Costco & City Market, Eagle County MRF, Eagle County Landfill, Trinity c Sources: Honeywagon, EverGreen Zero Waste, The Community Market, TOV, TOA, Grub Dump, Eagle County Landfill d Sources: Eagle County HHW, ERI, Metech, Blue Star, G & S Recycling e Total MSW disposed is total landfill tonnage minus diverted materials and industrial (C&D) waste f Total MSW recycled/total MSW generated gTotal MSW recycled + total industrial diverted ATTACHMENT C MSW Recycled Residential and Commercial ab 16,616 Organics c 9,836 Ewaste d 82 Diverted Materials (non-MSW)11,445 Total Solid Waste Disposed 136,155 (970) 748-4040 gdaly@avon.org TO: Honorable Mayor Underwood and Avon Town Council Members FROM: Chief Greg Daly RE: The Avon Police Department’s Updated Accountability Report regarding the request to use Facial Recognition Services in accordance with Colorado Revised Statutes (C.R.S.) 24-18-302 DATE: June 23, 2026 SUMMARY: Facial Identification/facial recognition has evolved into a cutting-edge crime solving/ crime fighting investigative tool. Generally, there are two uses of facial recognition- “live view” at some airports for example, where faces from live footage security cameras are compared against an active database, or the more widely used, post incident/event facial identification comparison of “still” photographs against a photo database of known offenders (typically from arrest booking photographs). This accountability report update centers around “still photograph” facial identification and not live surveillance. Avon PD does not utilize live facial recognition. The comparison of a still photographic image can provide a selection of possible investigative lead photographs that an investigator can compare with and analyze against. The investigator then builds his/her case with other independent evidence. Importantly, while facial recognition service ("FRS") results are valuable, the results of an FRS comparison cannot serve as the sole basis to establish probable cause in a criminal investigation . In June 2022, the Colorado State legislature passed Senate Bill 22-113 (SB113), which enacted C.R.S. §§ 24-18-301 through 24-18-309 imposing new requirements on local government agencies, including law enforcement, related to the use of facial recognition services . Investigative uses of FRS by law enforcement are subject to the statute, C.R.S. § 24-18-301, et seq. SB113 requires that a municipal police department that wishes to use or to continue to use an FRS for investigative purposes must file with its city council a “Notice of Intent” and thereafter an “Accountability Report” related to its proposed use of FRS. In 2023 the Avon Police Department provided an initial notice of intent, held three community public comment/listening sessions, provided a public comment link on our website and presented a final accountability report from the public process. The final report was posted to the Town of Avon website and to the Avon Police Department website. We were required to provide a biannual update accountability report to the Avon Town Council in 2025. This updated report was not completed in 2025, I apologize, but from now on, this report will be scheduled on an annual basis versus the required biannual basis. BACKGROUND: The Avon Police Department has the availability of four facial recognition services (FRS). ➢ The Department of Revenue, Motor Vehicle Investigations Unit, Law Enforcement Communications Center utilizing its database of driver’s license photographs. ➢ The Colorado Bureau of Investigation, utilizing post arrest booking “mugshot” photographs from Sheriff’s Offices primarily in the Denver metro area and from the Federal Bureau of Investigation. ➢ The Colorado Information Sharing Consortium (CISC) Regional Data Warehouse utilizing the Lexis Nexis Accurint Virtual Crime Center information exchange IT platform. CISC is a consortium of Page 2 of 4 one hundred and twenty (120) Colorado law enforcement agencies. The mission statement of CISC is “Making data-driven crime solutions available to all Colorado law enforcement agencies .” The database comprises of post arrest booking “mugshot” photographs from all the Colorado member agencies that submit their booking photographs to the consortium (https://cisc.colorado.gov/). ➢ The Federal Bureau of Investigation (FBI). Facial recognition technology must only be used for legitimate law enforcement purposes. Facial recognition, by Colorado law, CANNOT be used for any immigration enforcement. Authorized uses of facial recognition technology are limited to the following: 1. To identify an individual when there is a basis to believe that such individual has committed, is committing, or is about to commit a crime; 2. To identify an individual when there is a basis to believe that such individual is a missing person, crime victim, or witness to criminal activity; 3. To identify a deceased person. 4. To identify a person who is incapacitated or otherwise unable to identify themselves; 5. To identify an individual who is under arrest and does not possess valid identification, is not forthcoming with valid identification, or who appears to be using someone else’s identification, or a false identification; or 6. To mitigate an imminent threat to health or public safety (e.g., to thwart an active terrorism scheme or plot). Senate Bill 22-113 was passed with an intent to regulate the use of and ensure adherence to many privacy concerns expressed by the legislature at that time. A law enforcement agency shall not apply a facial recognition service to any individual based on the individual's religious, political, social views or activities; participation in a particular noncriminal organization or lawful event; or actual or perceived race, ethnicity, citizenship, place of origin, immigration status, age, disability, gender, gender expression, gender identity, sexual orientation, or other characteristic protected by law. Another major point for consideration from this legislation is that any suspect candidates who are identified by a facial recognition solution are viewed “only” as an investigative lead and should not be viewed as the sole basis for probable cause in a criminal investigation. The results are to be used by officers or detectives merely as possible leads in identifying a suspect in a criminal investigation. The officers and detectives will ensure that their decisions are subject to meaningful human review before proceeding with the investigation in accordance with C.R.S. § 24-18-303. Use of FRS will follow state law, and the limitations of C.R.S. § 24-18-307 will be respected. The act prohibits an agency from using an FRS to engage in ongoing surveillance (like at an airport); conduct real-time or near real-time identification; or start persistent tracking unless the law enforcement agency (LEA) obtains a warrant authorizing such use, such use is necessary to develop leads in an investigation, the LEA has established probable cause for such use, or the LEA obtains a court order authorizing the use of the service for the sole purpose of locating or identifying a missing person or identifying a deceased person. Avon PD does not have any internal resources that would allow for real- time surveillance using FRS, but if we were to request that resource from an outside agency, we would obtain a search warrant per statue. Page 3 of 4 Pursuant to C.R.S. § 24-18-306, an agency must maintain records that are sufficient to facilitate public reporting and auditing of compliance with the agency's facial recognition policies. Accordingly, Avon PD created an internal database to track when officers submit a photograph to any outside agency for facial recognition, tracking the requesting officers name, the case or event number for the inquiry , the type of investigation, the outside FRS agency that we are requesting to conduct a facial recognition search and if the facial recognition comparison led to any outcomes. This information was incorporated into this statistical biannual accountability report for the Town Council. FACIAL RECOGNTITION USE BY AVON PD FROM JUNE 2023 TO JUNE 2026 Since June 2023, Avon PD officers and detectives have used facial recognition in three separate incidents. Facial recognition requires high clarity/ high-definition photographs for successful comparison. Generally, many close circuit security camera systems do not offer a high enough level of resolution for comparison. The breakdown of the incidents where facial recognition requests were completed and the results of those requests are as follows; Investigative Case Summaries Involving Advanced Identification Resources May 22, 2024 – Case #2024-000296 | Death Investigation Two individuals were identified as the last known persons in contact with a missing individual who was later found deceased in the Colorado River under suspicious circumstances. The Colorado Bureau of Investigation (CBI), along with Denver Police Department records, assisted in identifying both individuals through facial recognition technology. One subject was subsequently extradited from California to Eagle County on an unrelated firearms violation warrant initiated by the Avon Police Department. The death investigation ultimately determined the manner of death to be accidental. September 17, 2024 – Case #2024-000582 | Burglary / Organized Crime Initial assistance was requested from CBI but later withdrawn after the suspect was independently identified through fingerprint analysis. The suspect had presented a fraudulent Colombian passport under a fictitious name during contact and arrest by the Steamboat Springs Police Department. Due to the broader scope of the investigation, the case was transferred to CBI and the 18th Judicial District Attorney’s Office as part of an organized crime investigation. This case was linked to a statewide series of residential burglaries targeting Asian households. Nationwide arrest warrants were issued for three suspects. December 30, 2025 – Case #2025-000759 | Trespass / Vehicle Theft Spree A multi-jurisdictional vehicle trespass and case and firearms theft spree occurred in Avon, unincorporated West Vail, and Silverthorne. Surveillance footage from a Silverthorne gas station captured two of the four suspects. The FBI utilized facial recognition technology to identify one individual. An arrest warrant was subsequently issued. This case is an active investigation. Use of Identification Technology In all instances, identification through facial recognition or other advanced methods was used strictly as an investigative lead. When a lead is generated, Officers and Detectives who have completed a system- agnostic foundation for facial examination conducted a thorough review of the suggested comparison photos before proceeding with a lead. These leads were corroborated with independent evidence and additional investigative work to establish probable cause prior to the issuance of search or arrest warrants. Page 4 of 4 PRIVACY CONCERNS: As discussed, Senate Bill 22-113 was specifically created to ensure that privacy concerns are met by statewide law enforcement agencies. The Avon Police Department has and will continue to adhere to the criteria set out by this bill. This system is designed as a crime prevention/investigative tool, to aid officers/detectives in solving crimes against Avon citizens resident and guests and to bring justice for victims of crimes. TRAINING: Avon PD has provided training to its officers educating them on the statutory requirements regarding the use of facial recognition services, its capabilities and limitations, image comparison principles, the procedures for using FRS, ensuring meaningful human review and the method of logging the FRS search on the department official FRS record keeping database. We have provided training to all officers through Ideal Innovations Incorporated for facial identification training courses (recommended by General Counsel of one of the FRS vendors) Each officer has received the basic four-hour class giving a high-level overview of the basic tenets of the Facial Identification discipline and detectives have completed a more advanced 24-hour training that provided participants with a system-agnostic foundation for facial examination. Participants had the opportunity to conduct candidate photo comparisons; learn key definitions, the stability of facial features, and contributions to facial uniqueness. Challenges within the discipline and agencies/organizations that are influencing the discipline were discussed. Officers who use the FRS consult with a detective on the images before they use the information as an investigative lead. FINANCIAL CONSIDERATIONS: There is no cost to FRS use though the Colorado Department of Motor Vehicles, the Colorado Bureau of Investigation or the Federal Bureau of Investigation. There is a cost for Avon PD Officers and Detectives to complete the system-agnostic foundation training for Facial Examination through Ideal Innovations Inc. The four-hour basic course costs $275 and the 24-hour detective level advanced course costs $840. The Avon Police Department is a member of CISC, and there is a cost of subscription of $920 per year for our twenty-three sworn officers (increasing from $25 to $40 per officer per year). Avon PD subscribes to the Lexis Nexus, Accurint® Virtual Crime Center, “a mission-critical investigative tool providing law enforcement the ability to link cross-jurisdictional data quickly and efficiently in urgent situations. This investigative solution combines identity data and nationwide law enforcement data with your data in one powerful search, building a comprehensive profile of an individual, location and incident to reveal non-obvious connections. Accurint Virtual Crime Center also provides jail booking records and photo lineup tools.” CISC agencies utilize Accurint for crime reports information, intelligence, booking photographs sharing, performing robust analytics, mapping patterns, performing link analysis, and access to other public records (for law enforcement use only). Last year Accurint was covered by a grant from Colorado Auto Theft Prevention Authority. However, the Colorado Joint Budget Committee decided to remove the $8 million CATPA General Fund allocation from the FY2027 state budget. We have a current budget line of $4,324 (under Lumen licensing- the previous provider) that will cover the new Accurint cost until end of 2026. Thank you, Chief Greg Daly ###