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TC Packet 06-12-2018 TOWN OF AVON, COLORADO TOWN OF AVON MEETINGS FOR TUESDAY, JUNE 12, 2018 AVON LIQUOR AUTHORITY MEETING BEGINS AT 5:00 PM AVON TOWN COUNCIL REGULAR MEETING BEGINS AT 5:05 PM AVON TOWN HALL, ONE LAKE STREET _______________________________________________________________________________ MEETING AGENDAS & PACKETS ARE FOUND AT: HTTP://WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, AVON PUBLIC LIBRARY & AVON ELEMENTARY SCHOOL IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK DEBBIE HOPPE AT 970-748-4001 OR EMAIL DHOPPE@AVON.ORG WITH ANY SPECIAL REQUESTS. 1 AVON TOWN COUNCIL REGULAR MEETING BEGINS AT 5:05 PM (SEE AGENDA BELOW) AVON LIQUOR LICENSING AUTHORITY MEETING BEGINS AT 5:00 PM (SEE SEPARATE AGENDA PAGE 3) 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF AGENDA 3. MEETING PROCEDURES FOR THE MEETING OF JUNE 12, 2018 ACTION ITEMS • PRESENTATION OF ITEM • PUBLIC COMMENT * • COUNCIL DISCUSSION • MOTION • COUNCIL DISCUSSION • VOTE WORK SESSION AND PRESENTATIONS • PRESENTATION OF ITEM • COUNCIL DISCUSSION • PUBLIC COMMENT* • COUNCIL DIRECTION 4. PUBLIC COMMENT: COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA * AN INITIAL THREE (3) MINUTE LIMIT ALLOWED TO EACH PERSON WISHING TO SPEAK. SPEAKER MAY REQUEST MORE TIME AT THE END OF THE THREE (3) MINUTES, WHICH MAY BE APPROVED BY A MAJORITY OF THE COUNCIL. 5. MAYOR’S PRESENTATION OF GFOA AWARD TO THE AVON FINANCE DEPARTMENT (5 MINUTES) 6. ACTION ITEMS 6.1. PRESENTATION OF THE 2017 TOWN AUDIT AND MOTION TO ACCEPT (ACTING TOWN MANAGER SCOTT WRIGHT, MCMAHAN & ASSOC., CPAS) (20 MINUTES) 6.2. PUBLIC HEARING SECOND READING OF ORDINANCE 18-06 ADOPTING SMALL CELL REGULATIONS (TOWN ATTORNEY ERIC HEIL) (5 MINUTES) 6.3. PUBLIC HEARING ON MAJOR DEVELOPMENT PLAN APPLICATION FOR LOT 4, 5, AND 6, RIVERFRONT SUBDIVISION (PLANNING DIRECTION MATT PIELSTICKER) (30 MINUTES) 6.4. PUBLIC HEARING LETTUCE PATCH PRODUCTIONS PERMIT APPLICATION FOR OUTDOORS USE OF SOUND AMPLIFICATION SYSTEM FOR LAKE STREET MARKET ON JUNE 20 AND 27, 2018 AND JULY 11, 18 AND 25, 2018 (INTERIM SPECIAL EVENTS MANAGER LOUISE DUNCAN) (5 MINUTES) 6.5. PUBLIC HEARING PEAK PRODUCTIONS PERMIT APPLICATION FOR OUTDOORS USE OF SOUND AMPLIFICATION SYSTEM FOR AVON LIVE! ON JULY 11, 18 AND 25, 2018 AND AUGUST 1, 2018 (INTERIM SPECIAL EVENTS MANAGER LOUISE DUNCAN) (5 MINUTES) 6.6. CONSENT AGENDA (5 MINUTES) 6.6.1. APPROVAL OF AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE EAGLE COUNTY SCHOOL DISTRICT RE-50J AND THE TOWN OF AVON (MOBILITY DIRECTOR EVA WILSON) TOWN OF AVON, COLORADO TOWN OF AVON MEETINGS FOR TUESDAY, JUNE 12, 2018 AVON TOWN COUNCIL REGULAR MEETING BEGINS AT 5:05 PM AVON LIQUOR AUTHORITY MEETING BEGINS AT 5:00 PM AVON TOWN HALL, ONE LAKE STREET ___________________________________________________________________________________________ MEETING AGENDAS & PACKETS ARE FOUND AT: HTTP://WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, AVON PUBLIC LIBRARY & AVON ELEMENTARY SCHOOL IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK DEBBIE HOPPE AT 970-748-4001 OR EMAIL DHOPPE@AVON.ORG WITH ANY SPECIAL REQUESTS. 2 6.6.2. APPROVAL FOR RENEWABLE ENERGY CREDIT SALE AND ASSIGNMENT CONTRACT AND GENERATOR INTERCONNECTION AGREEMENT WITH HOLY CROSS ENERGY FOR PHOTOVOLTAIC PANELS LOCATED ON NEW TOWN HALL (TOWN ENGINEER JUSTIN HILDRETH) 6.6.3. APPROVAL OF PAY ADJUSTMENT FOR ACTING TOWN MANAGER SCOTT WRIGHT (HUMAN RESOURCES DIRECTOR LANCE RICHARDS) 6.6.4. APPROVAL OF MINUTES FROM MAY 22, 2018 COUNCIL MEETING (DEPUTY TOWN CLERK BRENDA TORRES) 6.6.5. APPROVAL OF MINUTES FROM MAY 8, 2018 COUNCIL MEETING (TOWN CLERK DEBBIE HOPPE) 6.6.6. APPROVAL OF MINUTES FROM MAY 31, 2018 SPECIAL MEETING (TOWN CLERK DEBBIE HOPPE) 7. WORK SESSION 7.1. JOINT WORK SESSION WITH THE AD HOC SPECIAL EVENTS COMMITTEE (INTERIM SPECIAL EVENTS MANAGER LOUISE DUNCAN) (60 MINUTES) 7.2. REVIEW OF THE TOWN OF AVON FISCAL TAX STUDY (ACTING TOWN MANAGER SCOTT WRIGHT) (60 MINUTES) 7.3. REVIEW AND DIRECTION REGARDING SHORT TERM RENTAL TAX STUDY (ACTING TOWN MANAGER SCOTT WRIGHT) (15 MINUTES) 8. WRITTEN REPORTS 8.1. ABSTRACT FROM MAY 15, 2018 PLANNING AND ZONING COMMISSION MEETING (PLANNING DIRECTOR MATT PIELSTICKER) 8.2. CONFLICTS OF INTEREST (TOWN ATTORNEY ERIC HEIL) 9. MAYOR & COUNCIL COMMENTS & MEETING UPDATES (10 MINUTES) 10. ADJOURNMENT _________________________________________________________________________________________________________________________________________________________________________________________________________ *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 for any action item or work session item, and may permit public comment for any other agenda item, and may limit such public comment to three minutes per individual, which limitation may be waived or increased by a majority of the quorum present. Article VI. Public Comments, Avon Town Council Simplified Rules of Order, Adopted by Resolution No. 17-05. TOWN OF AVON MEETINGS FOR TUESDAY, JUNE 12, 2018 AVON LIQUOR AUTHORITY MEETING BEGINS AT 5:00 PM AVON TOWN HALL, ONE LAKE STREET _______________________________________________________________________________ MEETING AGENDAS & PACKETS ARE FOUND AT: HTTP://WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, AVON PUBLIC LIBRARY & AVON ELEMENTARY SCHOOL IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK DEBBIE HOPPE AT 970-748-4001 OR EMAIL DHOPPE@AVON.ORG WITH ANY SPECIAL REQUESTS. 3 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF AGENDA 3. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA 4. RENEWAL OF LIQUOR LICENSES 4.1. APPLICANT: Y&Z, INC. D/B/A NOZAWA SUSHI & KITCHEN LOCATION: 240 CHAPEL PLACE, UNIT 115 & 116 TYPE: HOTEL AND RESTAURANT MANAGER: YONG HU YUAN 4.2. APPLICANT: PROST LLC D/B/A IAN PROSIT FINE BEER & SAUSAGES LOCATION: 82 E. BEAVER CREEK PLACE, SUITE M107 TYPE: HOTEL AND RESTAURANT MANAGER: SCOTT POHLMAN 5. PUBLIC HEARING SPECIAL EVENTS PERMIT 5.1. APPLICANT NAME: WALKING MOUNTAINS SCIENCE CENTER EVENT NAME: TASTE OF NATURE GALA EVENT DATE: JULY 10, 2018; 5:00 PM UNTIL 11:00 PM LOCATION: WALKING MOUNTAINS SCIENCE CENTER EVENT MANAGER: KATHERINE BRENNAND PERMIT TYPE: MALT, VINOUS & SPIRITUOUS LIQUOR 5.2. APPLICANT NAME: WALKING MOUNTAINS SCIENCE CENTER EVENT NAME: VAIL VALLEY BREW FEST AT AVON EVENT DATE: JULY 30, 2018; 12:00 PM UNTIL 4:00 PM LOCATION: WALKING MOUNTAINS SCIENCE CENTER EVENT MANAGER: LOUISE DUNCAN PERMIT TYPE: MALT, VINOUS & SPIRITUOUS LIQUOR 5.3. APPLICANT NAME: VAIL VALLEY SOCCER CLUB EVENT NAME: LAKE STREET MARKET EVENT DATES: JUNE 20 & 27, 2018 AND AUGUST 8, 15 & 22, 2018; 4:00 PM UNTIL 10:00 PM LOCATION: ONE LAKE STREET EVENT MANAGER: LOUISE DUNCAN PERMIT TYPE: MALT, VINOUS & SPIRITUOUS LIQUOR 6. APPROVAL OF THE MINUTES FROM MAY 22, 2018 MEETING 7. ADJOURNMENT TOWN OF AVON, COLORADO AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, MAY 22, 2018 AVON TOWN HALL, ONE LAKE STREET Page 1 1. CALL TO ORDER AND ROLL CALL Chairwoman Fancher called the meeting to order at 5:00 p.m. A roll call was taken and Board members present were Sarah Smith Hymes, Megan Burch, Scott Prince and Jake Wolf. Matt Gennett and Amy Phillips were absent. Also present were Town Attorney Eric Heil, Deputy Police Chief Coby Cosper, Deputy Town Manager Preston Neill and Secretary Brenda Torres. 2. APPROVAL OF AGENDA There were no changes to the agenda. 3. PUBLIC COMMENT – COMMENTS ARE WELCOME ON TOPICS NOT ON THE AGENDA No public comments were made. 4. RENEWAL OF LIQUOR LICENSES Start time: 00:00:42 4.1. Applicant: YERF LLC d/b/a Ticino Italian Restaurant Location: 100 W. Beaver Creek Blvd. #127 Type: Hotel & Restaurant Manager: Charles Frey The application was presented with no concerns. Board member Burch moved to approve the renewal application for YERF LLC d/b/a Ticino Italian Restaurant. Board member Prince seconded the motion and it passed unanimously by Board members present. Board members Gennett and Phillips were absent. 5. PUBLIC HEARING SPECIAL EVENTS PERMIT Start time: 00:01:38 5.1. Applicant Name: Beaver Creek Resort Company of Colorado Event Name: Beaver Creek Rodeo Series Event Dates: June 21, July 5, 12, 19, August 2 & 9, 2018; 4:00 p.m. until 10:00 p.m. Location: Traer Creek Lot 1 Event Manager: Rachel Laux Permit Type: Malt, Vinous & Spirituous Liquor Chairwoman Fancher opened the public hearing and no comments were made. Elizabeth Jones and Rachel Laux were present to answer any questions. Board member Prince moved to approve the special event permit applicaton for the Beaver Creek Resort Company of Colorado Beaver Creek Rodeo Series. Vice Chairwoman Smith Hymes seconded the motion and it passed unanimously by Board members present. Board members Gennett and Phillips were absent. 5.2. Applicant Name: Eagle Valley Humane Society Event Name: Salute to U.S.A. Event Date: July 3, 2018; 4:00 p.m. until 10:30 p.m. Location: Nottingham Park Event Manager: Char Gonsenica Permit Type: Malt, Vinous & Spirituous Liquor Chairwoman Fancher opened the public hearing and no comments were made. Char Gonsenica was TOWN OF AVON, COLORADO AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, MAY 22, 2018 AVON TOWN HALL, ONE LAKE STREET Page 2 present to answer any questions. Vice Chairwoman Smith Hymes moved to approve the special event permit applicaton for the Eagle Valley Humane Society Salute to U.S.A. event on July 3, 2018. Board member Burch seconded the motion and it passed unanimously by Board members present. Board members Gennett and Phillips were absent. 5.3. Applicant Name: Bright Future Foundation for Eagle County Event Name: Cover Rock Music Festival Event Dates: June 22 & 23, 2018; 10:00 a.m. until 11:00 p.m. Location: Nottingham Park Event Manager: Ted Wenninger Permit Type: Malt, Vinous & Spirituous Liquor Chairwoman Fancher opened the public hearing and no comments were made. Board member Burch moved to approve the special event permit applicaton for the Bright Future Foundation for Eagle County Cover Rock Music Festival with the recommended amendment to the Alcohol Management Plan. Board member Wolf seconded the motion and it passed unanimously by Board members present. Board members Gennett and Phillips were absent. Board member Gennett arrived at 5:09 p.m. 5.4. Applicant Name: Team Evergreen Event Name: Triple Bypass Bicycle Tour Event Dates: July 14, 2018; 10:00 a.m. until 8:00 p.m. July 15, 2018; 10:00 a.m. until 4:00 p.m. Location: Nottingham Park Event Manager: Sabra Nagel Permit Type: Malt, Vinous & Spirituous Liquor Chairwoman Fancher opened the public hearing and no comments were made. Sabra Nagel was present to answer any questions. Vice Chairwoman Smith Hymes moved to approve the special event permit applicaton for the Team Evergreen Triple Bypass Bicycle Tour on July 14 & 15, 2018. Board member Wolf seconded the motion and it passed unanimously by Board members present. Board member Phillips was absent. 5.5. Applicant Name: Town of Avon Event Name: Town Clean -Up Day Event Date: May 24, 2018; 5:30 p.m. until 8:00 p.m. Location: Performance Pavilion Event Terrace Deck/Nottingham Park Event Manager: Louise Duncan Permit Type: Malt, Vinous & Spirituous Liquor Chairwoman Fancher opened the public hearing and no comments were made. TOWN OF AVON, COLORADO AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, MAY 22, 2018 AVON TOWN HALL, ONE LAKE STREET Page 3 Vice Chairwoman Smith Hymes moved to approve the special event permit applicaton for the Town of Avon Clean-Up Day on May 24, 2018. Board member Burch seconded the motion and it passed unanimously by Board members present. Board member Phillips was absent. 6. APPROVAL OF THE MINUTES FROM MAY 8, 2018 MEETING Start time: 00:13:59 Board member Prince moved to approve the minutes from the May 8, 2018, Liquor Authority meeting. Board member Burch seconded the motion and it passed unanimously by Board members present. Board member Phillips was absent. 7. ADJOURNMENT There being no further business to come before the Board, Chairwoman Fancher moved to adjourn the liquor meeting. Board member Gennett seconded the motion and it passed unanimously by Board members present. Board member Phillips was absent. The time was 5:15 p.m. RESPECTFULLY SUBMITTED: ____________________________________ Brenda Torres, Secretary APPROVED: Jennie Fancher ______________________________________ Sarah Smith Hymes ______________________________________ Jake Wolf ______________________________________ Megan Burch ______________________________________ Matt Gennett ______________________________________ Scott Prince ______________________________________ Amy Phillips ______________________________________ TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Scott Wright, Interim Town Manager Date: June 12, 2018 Topic: 2017 Comprehensive Annual Financial Report and Communication with Governing Body ACTION BEFORE COUNCIL On Tuesday evening, Paul Backes with McMahon & Associates, the Town’s independent auditing firm, will present their audit findings to the Avon Town Council. In addition, I will have a brief PowerPoint presentation covering the financial highlights from 2017. RECOMMENDED MOTION After presentation of the audit report from the auditors, the Town Council should accept the report. The recommended motion would be “Move to accept the 2017 Comprehensive Annual Financial Report”. BACKGROUND In addition to presenting their audit findings, it is common for the 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. These recommendations are included in the Communication with Governing Board letter attached to this memo. Below are staff's responses to the recommendations made by McMahan & Associates. • Payroll and Human Resources. The process of on-boarding and terminating employees has always been the function of the Human Resources department. However, in the past the physical task of adding and removing employees from our payroll processing software system has been performed by the Payroll Specialist position. The Finance and Human Resources departments are currently evaluating the most efficient way to revise this process and shift the responsibility of setting-up new employees to the Human Resources department. • Paid Time Off (PTO). The Human Resources director has revised the PTO policy to address carryforwards of PTO over and above the end-of-year limit. The revised policy will be forwarded to the Town Attorney for review and then incorporated into the Town's personnel policy manual. ATTACHMENT: Communication with Governing Body McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.co Member: American Institute of Certified Public Accountants Paul J. Backes, CPA, CGMA Avon: (970) 845-8800 Michael N. Jenkins, CA, CPA, CGMA Aspen: (970) 544-3996 Daniel R. Cudahy, CPA, CGMA Frisco: (970) 668-3481 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, 2017. 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. 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. We evaluated the key factors and assumptions used to develop estimates above and found that they are reasonable in relation to the financial statements taken as a whole. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. 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. There were no misstatements detected as a result of audit procedures which were material, either individually or in the aggregate, to the financial statements taken as a whole. To the Honorable Mayor and Town Council Town of Avon, Colorado Page 2 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. Payroll and Human Resources: A basic premise of internal controls is segregating duties to ensure that no one individual has access to an entire transaction cycle. The Town’s payroll specialist currently processes payroll and has the ability to add and remove employees from the payroll system. The Town should consider separating these duties by having the Human Resources department add and remove employees, while the payroll specialist would be limited to processing payroll. Proper segregation of duties will decrease the chance of an error or irregularity going undetected. We also noted in interviews,the information technology department indicated that communication regarding terminated employees should be modified to include technology options such as voicemail and email forwarding options, and other IT functionality requirements. The addition and termination of new employees should include IT in this communication process to ensure network access and other IT functions are handled properly. Paid Time Off: The Town’s policy regarding paid time off provides that “hours may exceed the limit throughout the calendar year; however, the amount of PTO on record at the end of the year must be at or below the limit unless approval is obtained from Human Resources.” The Town properly records all PTO as a liability at year end on the Town’s financial statements. In reviewing the liability, it was noted that a large number of Town employees are exceeding the carryforward amount. The Town should consider liquidating this liability down to the carryforward balance or amending the policy regarding carryforwards to comply with the Town’s current carryforward practice. Governmental Accounting Standards Board Statement 75: Financial reporting standards for the Town are promulgated by the Governmental Accounting Standards Board (“GASB”).GASB has issued Statement 75 (Accounting and Financial Reporting for Postemployment Benefits Other than Pensions) which requires employers to recognize their long-term obligation for other post-employment benefits as a liability on the Statement of Net Assets.The Statement also requires significant revised and new note disclosures and required supplementary information (RSI).Recording the Town’s share of the Fire and Police Pension Association (“FPPA”) net benefit liability relating to your participation in FPPA’s Statewide Death and Disability Fund will likely have a material impact on the Town’s financial statements.GASB 75 is required to be implemented for periods beginning after June 15, 2017. To the Honorable Mayor and Town Council Town of Avon, Colorado Page 3 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. May 16, 2018 Town of Avon, Colorado Comprehensive Annual Financial Report for the year ended December 31, 2017 Prepared by: Department of Finance Scott C. Wright, CPA, CPFO Asst. Town Manager / Director of Finance TOWN OF AVON, COLORADO LIST OF ELECTED AND APPOINTED OFFICIALS December 31, 2017 TOWN COUNCIL Jennie Fancher, Mayor Sarah Smith Hymes, Mayor Pro Tem Megan Burch Matt Gennett Amy Phillips Scott Prince Jake Wolf MANAGEMENT Virginia Egger, Town Manager Preston Neill, Executive Assistant to the Town Manager Scott Wright, Asst. Town Manager / Finance Director John Curutchet, Recreation Director Greg Daly, Police Chief Justin Hildreth, Town Engineer Rego Omerigic, Fleet Director Gary Padilla, Public Works Director Matt Pielsticker, Planning Director Lance Richards, Human Resources Director Eva Wilson, Transportation Director i TOWN OF AVON, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2017 TABLE OF CONTENTS INTRODUCTION 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 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds Statement of Net Position – Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds Statement of Cash Flows – Proprietary Funds Notes to the Financial Statements Required Supplemental 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 Supplemental Information Page iv-x xi xii 1-2 3-16 17 18-19 20-21 22-23 24 25 26-27 28-54 55 56 57 TOWN OF AVON, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2017 TABLE OF CONTENTS - CONTINUED ii Other Supplemental 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: Water Fund Community Enhancement Fund Affordable Housing Fund Exterior Energy Offset Fund Debt Service Fund Capital Projects Fund Transit 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 Schedule of Capital Project Fund Project Expenditures (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 59 60 61 62 63 64 65 66 67 70-71 72-73 76-77 79 80-81 82-84 86-87 88-89 92-93 94-97 98-99 100 101 102 103 104 105 106 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 107 108-109 110 111 112 113 114-115 INTRODUCTION Letter of Transmittal Town of Avon, Colorado May 17, 2018 v 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. 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 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 2010 Census reported a population of 6,447. 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. Policy-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. Council members are elected to four- year staggered terms with three council members elected in November, 2016, and the remaining four to be elected in November, 2018. 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. Letter of Transmittal Town of Avon, Colorado May 17, 2018 vi 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 accommodations within the Town. The Town also collects a 2% real estate transfer tax on all sales of real property located within the Town. An important exception is within The Village at Avon Planned Unit Development where, in accordance with the Annexation and Development Agreement of October 13, 1998, and as subsequently amended, the Town does not currently collect these taxes. The Town has the power by state statute to extend its corporate limits by annexation, which is done periodically when deemed appropriate by the Town Council. The Town provides a full range of municipal services including police protection; the construction and maintenance of parks, streets and roads, and infrastructure; recreational amenities and cultural activities and events; community planning and zoning; and general administrative services. 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, 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. Letter of Transmittal Town of Avon, Colorado May 17, 2018 vii Factors Affecting Financial Condition 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. Skier and snowboarder visits at Vail and Beaver Creek Resort account for almost 20% of the total such visits in Colorado. Called “A skier’s Disneyland” Skinet.com ranked Vail as the #6 ski resort in the West for the 2016-2017 season, while Beaver Creek Resort was ranked 9th. 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 a 4th of July fireworks display; multiple sporting events, such as Colorado’s annual Triple Bypass Bike Tour; and family-friendly activities like the Father’s Day Fishing Derby. Avon’s Whitewater Park, with three distinct water features, is also open all summer for boaters and spectators to enjoy. 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 thirty 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. Overall, real property values in Eagle County increased by 6.6 percent for the 2017 assessment, after increasing by 0.55 percent from the previous year. In Avon, real property values increased by a net 5.63 percent in 2017 which resulted in an increase of approximately $139,337 annually in general fund revenues used for basic municipal services. Strategic Plan Strategic Planning. Town Council updated and approved its 2017-19 Town of Avon Strategic Plan on July 25, 2017. The 2017-18 budget utilizes a priority-based budget approach for using a strategic decision-making process in funding programs and services to best ensure effective use of the Town’s limited resources. This process is intended to evolve over time to provide more useful information as to the relative importance of individual programs and services which can then be prioritized within and across departments. This budget approach requires budget narratives which Letter of Transmittal Town of Avon, Colorado May 17, 2018 viii describe discrete and specific activities and/or operations for each Town fund and program. Each operation is then quantified in terms of estimated personnel and nonpersonnel costs providing a total cost for the operation. Current Initiatives Avon’s strategic plan recognizes the importance of vibrancy and activity within the Town and states that it will be supported by partnering with existing special events and attracting an array of new and diverse cultural, educational and recreational events to Avon which meet the Town’s brand and are in concert with the values of our community. The 2018 budget has been developed to address priorities identified in the Strategic Plan with major emphasis on the following: • Town of Avon Properties Development Strategies. o Finalize the development strategies for Tract G, Lot 5, and Swift Gulch, including an evaluation of the expansion of the Avon Recreation Center and a parking garage. • Investment in Multi-modal Improvements. o Complete the Beaver Creek Blvd. rebuild/walkability project; o Design the Nottingham, Road / I70 / Avon Road Overpass Improvements o Support Avon Transit as a key element of a walkable community; o Implement the Zagster bike share program.  Climate Action Plan. o Implement the new paper bag fee; o Incorporate paperless workflows and waste reduction strategies. For 2018, the Finance and Human Resources departments are implementing processes and software products based on and an optimization study conducted in the prior year that analyzed work efficiencies surrounding the use of mission critical software systems. The Community Development department also conducted a similar optimization study and is evaluating software products for implementation in 2019.  Inclusive and Diverse Economic, Educational, Recreational and Cultural Opportunities. o Complete the Destination Jump, Splash, Learn playground, which is funded with a GOCO grant and Community Enhancement funds; o Implement the action plan to pursue a Colorado Creative District designation; o Issue a Community Survey; o Continue to solicit, develop and fund, in partnership with qualified producers, a diverse program of special events; o Continue the Town’s significant investment in special events with several new and returning events for 2018. A total budget of $400,000 is budgeted for special events, with another $100,000 set aside in fund balances for events unnamed at the time the budget was adopted. Letter of Transmittal Town of Avon, Colorado May 17, 2018 ix Implement Marketing Plan Priorities.o Pool marketing resources among departments for cross promotion andintegrated communication; o Develop partnerships with local and regional businesses to stay updated on Town priorities and activities;o Continue Town Council festival booth outreach, host coffee chats andcreate stand-alone displays;o Expand wayfinding for the visitor/resident experience; o Create a regional media strategy and focus social media by audience. Community Support and Funding. Funding for some of the more significant programs and agencies included in the 2018 budget are as follows:o $15,000 to the Vail Valley Partnership;o $15,000 to Mountain Family Health Centers; o $20,000 to Youth Power 365; o $30,000 for the Walking Mountains Science Center;o $20,000 for the Eagle Air Alliance Capital Improvement Projects. The Town updates its capital improvements long-range plan annually. Several improvement projects are approved for 2018 that have been in the planning and design stage for several years. Most of the anticipated major projects will be carried-forward from 2017 and include the new Town Hall tenant finish, the Nottingham Park playground, and the Beaver Creek Blvd. Rebuild project. 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 comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2016. This was the twenty-fifth 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 CAFR. This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. 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 FINANCIAL SECTION McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.com Member: American Institute of Certified Public Accountants Paul J. Backes, CPA, CGMA Avon: (970) 845-8800 Michael N. Jenkins, CA, CPA, CGMA Aspen: (970) 544-3996 Daniel R. Cudahy, CPA, CGMA Frisco: (970) 668-3481 1 M & A INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Town Council Town of Avon, Colorado Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund,and the aggregate remaining fund information of Town of Avon, Colorado, Colorado (the “Town”), as of and for the year ended December 31, 2017, and the related noted to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Town’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Town of Avon, Colorado, Colorado as of December 31, 2017, 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. Other Matters Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis on pages 3-16 be presented to supplement the basic financial statements. Such information, 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 accordance with auditing standards generally accepted in the United States of America, 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. INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Town Council Town of Avon, Colorado 2 Other Matters (continued) The budgetary comparison information on pages 55-57 is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. The budgetary comparison information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s financial statements taken as a whole. The introductory section, combining fund financial statements,individual fund budgetary information, the Debt Schedule, the Local Highway Finance Report, and the statistical section listed in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the Town’s financial statements. The combining fund financial statements, the individual fund budgetary information,the Debt Schedule, detailed budgetary schedules and the Local Highway Finance Report on pages 59-89 are the responsibility of management and were derived from and relate 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 financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America.In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. McMahan and Associates, L.L.C. Avon, Colorado May 16, 2018 3 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, 2017. 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, 2017 by $95,305,386 (net position). Of this amount, $21,039,526 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 $83,704. •As of the close of the fiscal year, the Town’s governmental funds reported combined endingfund balances of $19,800,674, an increase of $939,462 from the prior year. Approximately 25.9 percent of this total amount, $5,125,805, is available for spending at the Town’s discretion (unassigned fund balance). •The unassigned fund balance for the General Fund was $5,125,805, or 30.6 percent of total General Fund expenditures and other financing uses. This represents a $187,145 decrease from the prior year. •The Town of Avon’s long-term liabilities increased by a net $2,107,901 during the current fiscal year. Regular principal payments were made on bonded debt of $1,234,638, and capital leases of $177,066. New debt of $3,355,818 was issued. 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. This 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 and liabilities, with the difference between the two reported as net position. Over time, increases or 4 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 transportation and fleet maintenance operations. The government-wide financial statements include not only the Town of Avon itself (known as the primary government), but also the Avon Urban Renewal Authority, a legally separate entity, which 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 government-wide financial statements can be found on pages 17-19 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. However, 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. 5 The Town of Avon maintains seven 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, Water Fund, Debt Service Fund and Capital Projects Fund, all of which are considered to be major funds. Data from the other two nonmajor governmental funds (community enhancement fund, affordable housing 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 20-23 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 transportation 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. The 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 transit 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 24-27 of this report. 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 pages 28-54 of this report. Required Supplemental 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 55-56 of this report. Other Supplemental 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 this section on pages 59-89 of this report. 6 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 $95,305,386 as of December 31, 2017. The largest portion of the Town’s net position (71.5%) reflects its investment in capital assets (e.g. land, buildings, machinery and equipment, and infrastructure), 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 (6.4%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position (22.1%) may be used to meet the Town’s ongoing obligations to citizens and creditors. Condensed Net Position Governmental Activities Business-type Activities Total Government 2017 2016 2017 2016 2017 2016 Current and Other Assets Restricted Assets Capital Assets, net Total Assets $ 25,384,703 4,879,406 77,452,494 107,716,603 $ 22,060,949 7,065,106 76,741,508 105,867,563 $ 958,937 - 13,990,735 14,949,672 $ 1,088,169 - 14,201,730 15,289,899 $ 26,343,640 4,879,406 91,443,229 122,666,275 $ 23,149,118 7,065,106 90,943,238 121,157,462 Deferred Outflows of Resources Other Liabilities Noncurrent Liabilities Total Liabilities Deferred Inflows of Resources - 1,598,588 21,112,349 22,710,937 1,835,120 - 2,243,412 19,004,448 21,247,860 1,737,308 - 153,863 2,614,114 2,767,977 46,855 - 82,862 2,821,824 2,904,686 45,926 - 1,752,451 23,726,463 25,478,914 1,881,975 - 2,326,274 21,826,272 24,152,546 1,783,234 Net Position: Net Investment in Capital Assets Restricted Unrestricted Total Net Position 56,693,531 6,147,917 20,329,098 $ 83,170,546 58,088,785 8,452,322 16,341,288 $ 82,882,395 11,424,412 - 710,428 $ 12,134,840 11,430,538 - 908,749 $ 12,339,287 68,117,943 6,147,917 21,039,526 $ 95,305,386 69,519,323 8,452,322 17,250,037 $ 95,221,682 Analysis of the Town’s Operations Overall, the Town’s net position increased by $83,704 for 2017. Governmental activities increased net position by $288,151, while business-type activities decreased net position by $204,447. The largest contributor to this increase was the issuance of $3 million in tax increment revenue bonds to finance the tenant finish construction of a new Avon Town Hall, and the issuance of $355,818 in capital lease proceeds to purchase a new snowplow and electricians lift truck. The Town also received a federal grant in the amount of $328,000 for purchase of a new bus in the Transit Fund. 7 Change in Net Position Governmental Activities Business-type Activities Total Government 2017 2016 2017 2016 2017 2016 REVENUES Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions General Revenues: Taxes: Property Taxes Real Estate Transfer Tax Sales and Accommodation Taxes Other Taxes Unrestricted Investment Earnings Unrestricted Grants & Contributions Miscellaneous Total Revenues $ 2,561,842 84,761 31,237 2,876,177 4,411,530 9,437,658 1,385,171 178,997 913,784 589,767 22,470,924 $ 2,741,179 104,217 1,816,456 3,315,020 3,497,602 9,540,260 1,389,896 139,665 513,912 558,618 23,616,825 $ 1,482,770 - 328,000 40,297 - - - - - - 1,851,067 $ 1,557,439 - 100,000 40,258 - - - - - - 1,697,697 $ 4,044,612 84,761 359,237 2,916,474 4,411,530 9,437,658 1,385,171 178,997 913,784 589,767 24,321,991 $ 4,298,618 104,217 1,916,456 3,355,278 3,497,602 9,540,260 1,389,896 139,665 513,912 558,618 25,314,522 EXPENSES Program Activities: Governmental Activities: General Government Community Development Public Safety Public Works and Utilities Recreation Interest on Long-term Debt Business-type Activities: Transportation Fleet Maintenance Total Expenses 3,500,101 1,617,329 3,703,871 9,026,700 1,684,492 754,238 - - 20,328,955 3,291,190 1,202,097 3,214,680 9,656,808 1,584,531 754,238 - - 19,703,544 - - - - - - 2,253,558 1,655,774 3,909,332 - - - - - - 1,963,223 1,623,046 3,586,269 3,500,101 1,617,329 3,703,871 9,026,700 1,684,492 754,238 2,253,558 1,655,774 24,238,287 3,291,190 1,202,097 3,214,680 9,656,808 1,584,531 754,238 1,963,223 1,623,046 23,289,813 Excess (Deficiency) Before Contributions and Transfers Capital Contributions Transfers Increase (Decrease) in Net Position Net Position, Beginning of Year Net Position, Ending 2,141,969 (103,403) (1,750,415) 288,151 88,882,395 $ 83,170,546 3,913,281 (150,215) (1,584,994) 2,178,072 80,704,323 $ 82,882,395 (2,058,265) 103,403 1,750,415 (204,447) 12,339,287 $12,134,840 (1,888,572) 150,215 1,584,994 (153,363) 12,492,650 $12,339,287 83,704 - - 83,704 95,221,692 $ 95,305,386 2,024,709 - - 2,024,709 93,196,973 $ 95,221,692 Expenses and Program Revenues – Governmental Activities $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 GeneralGovernment Comm Dev Public Safety Public Works andUtilities Recreation Interest on Long-term Debt Expenses Program Revenues 8 Revenues by Source – Governmental Activities Business-type activities. Net position of business-type activities decreased by $204,447 in 2017. The key element of this decrease was depreciation of capital assets held by the Transit and Fleet Maintenance Enterprise Funds. Expenses and Program Revenues – Business-type Activities Property Taxes12.80% RETT Taxes19.63% Sales and Accommodation Taxes42.00% Other Taxes6.16% Charges for Services11.40% Investment Earnings0.80%Miscellaneous2.63% Grants0.52%Intergovernmental4.07% $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Transportation Fleet Maintenance Expenses Program Revenues 9 Revenues by Source – Business-type Activities Financial Analysis of the Town’s Funds The following schedule presents a summary of governmental fund revenues for the year ended December 31, 2017 and the amount and percentage of increases and decreases in relation to the prior year. Revenues 2017 Amount Percent of Total 2016 Amount Amount of Increase (Decrease) Percent Increase (Decrease) Taxes Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Investment Earnings Other Revenues $18,148,536 374,311 1,029,782 2,005,812 94,311 178,997 664,037 80.68% 1.66% 4.58% 8.91% 0.42% 0.80% 2.95% $17,742,776 259,997 2,868,277 1,772,510 91,014 139,665 651,603 $ 405,760 114,314 (1,838,495) 233,302 3,297 39,332 12,434 2.29% 43.97% (64.10%) 13.16% 3.62% 28.16% 1.91% Total $22,495,786 100.00% $23,525,842 $ (1,030,056) Total tax collections increased by $405,760 from the prior year. Property taxes decreased by $439,930 due to a decrease in the mill rate. The general operating mill rate for the Town remained the same at 8.956 mills and the debt service mill rate of 2.809 mills was eliminated due to the final maturity of the Town's general obligation debt in 2016. Net assessed values decreased by 0.3% or $602,950. Sales taxes decreased by $117,164 or 1.3% from the previous year while accommodations taxes increased by 3.4% or $44,060. Charges for Services40.02% Capital Grants8.85%Property Taxes1.09% Transfers In47.25% Capital Contributions 2.79% 10 The Town collects a 2% tax from all sales of real property within the Town. These revenues are dedicated solely for capital improvement projects. Real estate transfer tax collections increased by 47.6%, from $3,497,602 in 2016 to $4,448,666 in 2017. License and permit revenues increased by $114,314 from the previous year. However, construction permit values decreased $5,847,589 in total from the prior year with commercial permits valued at only $143,337 and six residential units valued at $18,930,069. The primary reason for this unusual anomaly was the permitting of the Joint Public Safety Facility in 2015 which was exempted from paying building permit fees by an Intergovernmental Agreement with the Eagle River Fire Protection District. Intergovernmental revenues decreased in 2017 by $1,838,495 due to grants received in 2016 from the Department of Transportation and Eagle County totaling $1,814,136 for the construction of Phase 3 of the Eagle County Regional Trail. Charges for services increased $233,302 due primarily to an increase in water tap fees and surcharges of $46,276, and an increase in Avon Recreation Center admission fees and other recreation fees of approximately $166,452. Investment earnings increased in 2017 by $39,332 due to higher yields offered by investments in U.S Government Treasury and Agency securities and by the Colotrust local government investment pool that the Town utilizes. The following schedule presents a summary of governmental fund expenditures for the year ended December 31, 2017 and the amount and percentage of increases and decreases in relation to the prior year. Expenditures 2017 Amount Percent of Total 2016 Amount Amount of Increase (Decrease) Percent Increase (Decrease) Current: General Government Community Development Public Safety Public Works and Utilities Parks and Recreation Capital Improvements Debt Service: Principal Interest Bond Issuance Costs Fiscal Charges $ 3,379,282 1,505,073 3,416,991 4,318,222 1,436,483 6,721,147 1,239,743 746,385 81,625 41,162 14.76% 6.57% 14.93% 18.87% 6.28% 29.37% 5.42% 3.26% 0.36% 0.18% $ 3,119,007 1,201,086 3,122,942 5,067,825 1,293,277 8,864,565 1,382,506 473,674 147,270 54,071 $ 260,275 303,987 294,049 (749,603) 143,206 (2,143,418) (142,763) 272,711 (65,645) (12,909) 8.34% 25.31% 9.42% (14.79%) 11.07% (24.18%) (10.33%) 57.57% (44.57%) (23.87%) Total $22,886,113 100.00% $24,726,223 $(1,840,110) Overall, total governmental fund expenditures decreased by $1,840,110 in 2017. This was largely due to decreases in spending in 2016 in the areas of capital improvements and utilities, offset by small increases in operating costs within departmental budgets. One major capital improvement project was completed during the 2017 year - the Joint Public Safety Facility - with 11 2017 expenditures of $3,803,705 and total project expenditures of $6,390,304. Projects completed in 2016 included the purchase of the new Avon Town Hall building, ($1,504,751), the Metcalf Rd. bike lane ($1,035,873), and the Eagle Valley Trail Phase 3 ($2,341,526). Expenditures in 2017 in public works and utilities are back to normal levels after a large increase in 2016 for a financial contribution of $855,707 towards the construction of the Mountain Star water tank. Other departmental operating expenditures remained fairly stable with only small percentage increase due mainly to continuation of the Town’s salary step program, launched in January 2014, and small increases in group health insurance and commodities. At the end of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $19,800,674, an increase of $939,462 from the prior year. Of this total, $6,147,917 is restricted due to external limitations on its use, such as by debt covenants, legal restrictions, or intention of grantors, donors or trustees. A total of $8,526,952 has been committed or assigned meaning there are limitations resulting from its intended use, such as construction of capital assets, affordable housing, and for other purposes. The remaining $5,125,805 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, unassigned fund balance of the General Fund is $5,125,805, while total fund balance is $5,814,591. 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 sources. Unassigned fund balance represents 30.6% of total fund expenditures and other financing uses, while total fund balance represents 34.7% of that same amount. The fund balance of the General Fund decreased by $249,300, or 4.1%, in 2017. This increase is due largely to a flattening of tax revenues compared to the previous year and less than expected departmental expenditure savings. The fund balance of the General Fund represents approximately 35% of 2018 General Fund appropriations or the equivalent of approximately 4.2 months of operations. The Town has felt it necessary to retain this level of fund balance because of its heavy reliance on sales tax revenues. 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. Avon Urban Renewal Fund. At the end of the current fiscal year, the Avon Urban Renewal Fund had an ending fund balance of $1,357,451. Of this amount, $639,711 is restricted as a bond reserve and $717,740 is restricted for urban renewal projects. The fund issues $3 million in tax increment revenue bonds in 2017 to finance the tenant finish for the Town's new town hall. The net proceeds at issuance were transferred to the Capital Projects Fund to be expended. Fund balance increased by $169,688 in 2017, primarily due to property tax increment revenues exceeding required payments for debt service. 12 Debt Service Fund. The Debt Service Fund has a fund balance at the end of the fiscal year of $535,590, all of which is restricted for the payment of debt service. Capital Projects Fund. The Capitals Project Fund has an ending fund balance at the end of the fiscal year of $11,282,615. Restricted fund balances include unspent bond proceeds in the amount of $2,653,917 and escrowed monies for future asphalt repairs pursuant to a lawsuit settlement in the amount of $720,000. The remaining amount of $7,908,698 is committed entirely to capital improvement projects. Non-major Funds. The aggregate non-major funds have a combined fund balance of $843,791. The net increase in fund balance during the current fiscal year in the aggregate non-major funds was $152,144. Three of the four non-major funds had surplus changes in fund balances which offset a deficit change in fund balance in the Community Enhancement Fund resulting from an operating transfer-out to the Capital Projects Fund in the amount of $140,750. The Water Fund had a surplus net change of $112,278 resulting from tap fees and surcharges collected in excess of its operating budget. The Affordable Housing Fund had a surplus net change of $69,303 due to the payoff of an employee housing loan. A new fund, the Exterior Energy Offset Fund has a surplus and ending fund balance of $32,768 from the collection of fees intended to be used to create financial assistance, rebates, and incentives to promote energy efficient projects within the Town. General Fund Budgetary Highlights The 2017 budget was guided by the 2017-2018 Town of Avon Strategic Plan, which was updated and approved by the Town Council on June 28, 2016. The 2017 budget was developed to address priorities identified in the Strategic Plan with major emphasis on the following: •Planning for the construction of new facilities incorporating paperless workflows and strategies to reduce waste into several areas of the budget. •Partnering with existing special events and attracting an array of new and diversecultural, educational and recreational events to Avon which meet the Town’s brand and are in concert with the values of the community. •Solicit and develop a diverse program of arts, educational, cultural and recreationalofferings, and continue to expand the use of the Nottingham Park Pavilion. •Implement marketing plan priorities, including pooling marketing resources among departments for cross promotion and integrated communication. •Investing in multi-modal improvements prioritizing walkability and bicycle use onstreets, with transit, parking and wayfinding. •Preparing a master land use plan for Town-owned properties including Tract G, Lot 5 and Swift Gulch. Evaluate expansion of the Avon Recreation Center and a parking garage. A number of budget changes are typically made throughout the year and at the Town’s adoption of its final revised budget in October. For the most part these changes are very minor and the increases and decreases are offsetting. The difference between the original budget and the final amended budget resulted in a net increase of $303,729 in expenditure appropriations and an increase of $1,168,415 in appropriated transfers-out for the 2017 budget year. Estimated 13 revenues were increased by $1,072,547 from the original budget, and beginning fund balance was increased by $1,487,197. Actual revenues further failed to meet estimates by a total of $262,822. Sales and accommodation tax revenues were flat most of the year and ended the year with a decline of 1.3% and a gain of 3.9%, respectively over the prior year. Departmental expenditures ended the year under the final revised budget by a net total of $172,641. 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, 2017, amounts to $91,443,229 (net of accumulated depreciation). This investment in capital assets includes land, land improvements, public art, water rights, construction in progress, buildings and building improvements, utility systems, machinery and equipment, and infrastructure (see table below). The total increase in the Town’s investment in capital assets for the current fiscal year was 0.55% (a 0.93% increase for governmental activities and a 1.5% decrease for business-type activities). Major capital assets events during the current fiscal year included the following: •Capital Project Fund capital improvement expenditures totaled $6,688,496 in 2017. •One major project began the year in construction-in-progress: the Joint Public Safety Facility. During the year ended December 31, 2017, the building was completed and capitalized at a total cost of $5,990,300. In 2016, land cost for the Joint Public SafetyFacility was capitalized in the amount of $852,042. •Significant projects remaining in construction in progress include New Town Hall ($262,088), East and West B/C Blvd. street rebuild ($198,943), the Nottingham Park Playground ($329,386), and the Nottingham Road paving and street improvement project(604,383). •Other Governmental-type capital assets added during the year included the Nottingham Park restroom remodel ($348,970), and lighting upgrades at the Interstate 70 Overpass ($28,354), and Nottingham Park ($110,905). In addition, parking improvements for the Nottingham Road trailhead of $59,661 was capitalized. •In Business-type activities, a new bus was purchased in the Transit fund for $415,415, and two bus shelters in the amount of $103,403 were constructed. •In the Equipment Replacement Fund a total of $1,059,496 in equipment was capitalized including a new phone system ($38,365), network firewall ($6,509), Toughbook laptopcomputers ($26,008) and fingerprinting system ($27,252) for the Police Department, a rock climbing wall at the Recreation Center ($8,943) and the Joint Public Safety Facility security system, elevator, and HVAC systems ($860,130) identified above in the total capitalized cost of the facility. 14 Town of Avon’s Capital Assets (net of depreciation) Governmental Activities Business-type Activities Total 2017 2016 2017 2016 2017 2016 Land Public Art Water Rights Constr. in Prog. Buildings Utilities Mach. & Equip. Infrastructure $ 11,626,736 1,361,400 1,792,959 1,539,297 14,788,183 3,127,457 2,613,989 40,602,473 $ 11,588,728 1,361,400 1,792,959 2,469,920 10,592,227 3,245,234 2,002,829 43,688,211 $ 411,834 - - - 11,658,613 - 1,920,288 - $ 411,834 - - - 11,948,849 - 1,841,047 - $12,000,562 1,361,400 1,792,959 2,469,920 22,541,076 3,245,234 3,843,876 43,688,211 $12,000,562 1,361,400 1,792,959 2,469,920 22,541,076 3,245,234 3,843,876 43,688,211 Total $77,452,494 $76,741,508 $13,990,735 $14,201,730 $90,943,238 $90,943,238 Additional information on the Town of Avon’s capital assets can be found in Note 4 on pages 40-41 of this report. Long-term debt. At the end of the current fiscal year, the Town of Avon had total long-term debt outstanding in the amount of $22,365,362. Certificates of Participation which evidence assignments of proportionate interests in the right to receive payments pursuant to annually renewable lease agreements total $14,140,000. The remainder of the Town’s debt, $8,225,362, represents bonds secured solely by specified revenue sources (i.e. revenue bonds). Town of Avon’s Outstanding Debt Governmental Activities Business-type Activities Total 2017 2016 2017 2016 2017 2016 G. O. Bonds Revenue Bonds Certificates of Participation $ - 8,225,362 11,675,000 $ - 5,790,000 12,235,000 $ - - 2,465,000 $ - - 2,605,000 $ - 8,225,362 14,140,000 $ - 5,790,000 14,840,000 Total $19,900,362 $18,025,000 $ 2,465,000 $ 2,605,000 $22,365,362 $20,630,000 The Town of Avon’s long-term debt increased by a net amount of $1,735,362 during the current fiscal year. Certificates of Participation in the amount of $3 million were issued in 2017 and all regular principal payments totaling $1,234,638 were made on outstanding bonded debt. 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 $48,495,645. The Town has no outstanding general obligation bonds outstanding as of December 31, 2017. In addition, the Town’s total debt per capita is $3,535. Additional information on the Town’s long-term debt can be found in Note 5 on pages 41-47 of this report. Economic Factors and Next Year’s Budget and Rates The 2018-19 budget is guided by the 2017-2019 Town of Avon Strategic Plan, which was updated and approved by the Town Council on July 25, 2017. The Strategic Plan is updated 15 each year to reflect dynamic change and to present to the Avon community the important work planned by the Town over the next year. The four key outcomes identified in the Strategic Plan are: •Support a strong community, building on strengths as a year-round mountain resort community; •Preserve and enhance the natural environment; •Develop inclusive & diverse economic, educational & cultural opportunities; •Provide a responsive, cutting-edge & effective government 2018 Budget Highlights The 2018 budget has been developed to address priorities identified in the Strategic Plan with major emphasis on the following: •Town of Avon Properties Development Strategies.o Finalize the development strategies for Tract G, Lot 5, and Swift Gulch, including an evaluation of the expansion of the Avon Recreation Center and a parking garage. •Investment in Multi-modal Improvements.o Complete the Beaver Creek Blvd. rebuild/walkability project;o Design the Nottingham, Road / I70 / Avon Road Overpass ImprovementsoSupport Avon Transit as a key element of a walkable community; o Implement the Zagster bike share program. •Climate Action Plan.o Implement the new paper bag fee; Incorporate paperless workflows and wastereduction strategies. For 2018, the Finance and Human Resources departments are implementing processes and software products based on and an optimization study conducted in the prior year that analyzed work efficiencies surrounding the use of mission critical software systems. •Inclusive and Diverse Economic, Educational, Recreational and Cultural Opportunities. o Complete the Destination Jump, Splash, Learn playground, which is funded with a GOCO grant and Community Enhancement funds; o Implement the action plan to pursue a Colorado Creative District designation;o Issue a Community Survey;o Continue to solicit, develop and fund, in partnership with qualified producers, a diverse program of special events; o Continue the Town’s significant investment in special events with several new and returning events for 2018. A total budget of $400,000 is budgeted for special events, with another $100,000 set aside in fund balances for events unnamed at the time thebudget was adopted. •Implement Marketing Plan Priorities. o Pool marketing resources among departments for cross promotion and integrated communication;o Develop partnerships with local and regional businesses to stay updated on Town priorities and activities; o Continue Town Council festival booth outreach, host coffee chats and create stand- alone displays; BASIC FINANCIAL STATEMENTS TOWN OF AVON, COLORADO STATEMENT OF NET POSITION DECEMBER 31, 2017 Governmental Business-type Activites Activities Total ASSETS Cash and Cash Equivalents 11,572,694$ 136,921$ 11,709,615$ Investments 6,198,598 - 6,198,598 Receivables 7,513,411 223,828 7,737,239 Internal Balances 100,000 (100,000) - Prepaid Expenses - 163,283 163,283 Inventory - 534,905 534,905 Restricted Assets - Cash and Cash Equivalents 4,879,406 - 4,879,406 Capital Assets, net of accumulated depreciation: Nondepreciable 16,320,392 411,834 16,732,226 Depreciable 61,132,102 13,578,901 74,711,003 Total Assets 107,716,603 14,949,672 122,666,275 LIABILITIES Accounts Payable 394,083 114,097 508,180 Accrued Liabilities 168,359 30,653 199,012 Accrued Interest Payable 47,647 9,113 56,760 Deposits and Reserves 974,721 - 974,721 Unearned Revenues 13,778 - 13,778 Noncurrent Liabilities: Due Within One Year 1,737,307 264,474 2,001,781 Due In More Than One Year 19,375,042 2,349,640 21,724,682 Total Liabilities 22,710,937 2,767,977 25,478,914 DEFERRED INFLOWS OF RESOURCES Property Tax Revenue 1,835,120 41,532 1,876,652 Gain on Advance Refunding of Debt - 5,323 5,323 Total Deferred Inflows of Resources 1,835,120 46,855 1,881,975 NET POSITION Net Investment in Capital Assets 56,693,531 11,424,412 68,117,943 Restricted For: Emergencies 688,786 - 688,786 Debt Service 1,175,301 - 1,175,301 Capital Improvements 3,373,917 - 3,373,917 Urban Renewal 717,740 - 717,740 Purposes of Grantors 192,173 - 192,173 Unrestricted 20,329,098 710,428 21,039,526 Total Net Position 83,170,546$ 12,134,840$ 95,305,386$ The accompanying notes are an integral part of the financial statements. 17 TOWN OF AVON, COLORADO STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2017 Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Governmental Activities: General Government, Finance and Administration 3,500,101$ 294,431$ -$ -$ Community Development 1,617,329 396,731 - - Public Safety 3,703,871 64,275 84,761 1,237 Public Works and Utilities 9,026,700 287,151 - 30,000 Recreation 1,684,492 1,519,254 - - Interest and Fiscal Charges on Long-term Debt 796,462 - - - Total Governmental Activities 20,328,955 2,561,842 84,761 31,237 Business-type Activities: Transportation 2,253,558 353,346 - 328,000 Fleet Maintenance 1,655,774 1,129,424 - - Total Business-type Activities 3,909,332 1,482,770 - 328,000 Total Primary Government 24,238,287$ 4,044,612$ 84,761$ 359,237$ General Revenues: Property Taxes Real Estate Transfer Taxes Sales and Accommodation Taxes Other Taxes Unrestricted Investment Earnings Grants and Contributions Not Restricted to Specific Programs Miscellaneous Capital Contributions Transfers Total General Revenues and Transfers Increase (Decrease) in Net Position Net Position - Beginning of Year Net Position - End of Year The accompanying notes are an integral part of the financial statements. Program Revenues 18 Governmental Business-type Activities Activities Total (3,205,670)$ -$ (3,205,670)$ (1,220,598) - (1,220,598) (3,553,598) - (3,553,598) (8,709,549) - (8,709,549) (165,238) - (165,238) (796,462) - (796,462) (17,651,115) - (17,651,115) - (1,572,212) (1,572,212) - (526,350) (526,350) - (2,098,562) (2,098,562) (17,651,115) (2,098,562) (19,749,677) 2,876,177 40,297 2,916,474 4,411,530 - 4,411,530 9,437,658 - 9,437,658 1,385,171 - 1,385,171 178,997 - 178,997 913,784 - 913,784 589,767 - 589,767 (103,403) 103,403 - (1,750,415) 1,750,415 - 17,939,266 1,894,115 19,833,381 288,151 (204,447) 83,704 82,882,395 12,339,287 95,221,682 83,170,546$ 12,134,840$ 95,305,386$ Net (Expense) Revenue and Changes in Net Position 19 TOWN OF AVON, COLORADO BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2017 Avon Urban Debt Capital Other General Renewal Service Projects Governmental Fund Fund Fund Fund Funds ASSETS Cash and Cash Equivalents 2,085,501$ 718,040$ 25,648$ 4,798,846$ 685,742$ Investments 2,997,790 - - 3,200,808 - Receivables: - Interest 5,430 - - 6,178 - - Taxes 3,578,131 - - 99,220 - - Accounts 8,433 - - - 78,689 - Intergovernmental 120,557 - - - 58,800 - Employees 15,104 - - - - Due from Other Funds 100,000 - - - - Notes Receivable - - - - 20,560 Restricted Assets - Cash and Cash Equivalents 80,222 639,711 509,942 3,373,917 - Total Assets 8,991,168$ 1,357,751$ 535,590$ 11,478,969$ 843,791$ LIABILITIES Accounts Payable 195,676$ 300$ -$ 193,021$ 5,060$ Accrued Liabilities 167,738 - - - 621 Deposits and Reserves 971,098 - - - 3,623 Unearned Revenues 6,945 - - 3,333 3,500 Total Liabilities 1,341,457 300 - 196,354 12,804 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Notes Receivable - - - - 20,560 Unavailable Revenue - Property Taxes 1,835,120 - - - - Total Deferred Inflows of Resources 1,835,120 - - - 20,560 FUND BALANCES Restricted For: Emergencies 688,786 - - - - Urban Renewal - 717,740 - - - Water Projects - - - - 192,173 Capital Improvements - - - 3,373,917 - Debt Service - 639,711 535,590 - - Committed For: Capital Improvements - - - 7,908,698 - Exterior Energy Offset Programs - - - - 32,768 Assigned For: Affordable Housing - - - - 585,486 Unassigned 5,125,805 - - - - Total Fund Balances 5,814,591 1,357,451 535,590 11,282,615 810,427 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 8,991,168$ 1,357,751$ 535,590$ 11,478,969$ 843,791$ The accompanying notes are an integral part of the financial statements. 20 RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCE TO NET POSITION OF GOVERNMENTAL ACTIVITIES DECEMBER 31, 2017 Total 8,313,777$ Total Governmental Fund Balances 19,800,674$ 6,198,598 Amounts reported for governmental activities in the 11,608 Statement of Net Position are different because: 3,677,351 87,122 Capital assets used in governmental activities are not financial 179,357 resources and therefore are not reported as an asset in the 15,104 governmental funds. 100,000 - Capital assets 130,270,291 20,560 - Accumulated depreciation (55,869,309) 4,603,792 74,400,982 23,207,269$ 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. 394,057$ - Tax Increment Revenue Bonds payable (8,225,363) 168,359 - Capital Leases Payable (80,204) 974,721 - Certificates of Participation payable (11,675,000) 13,778 - Unamortized bond premium (292,371) - Compensated absences payable (353,386) 1,550,915 (20,626,324) Notes receivable are not available to pay for current period 20,560 expenditures and are deferred in the governmental funds.20,560 1,835,120 Long-term receivables which are not available to pay for current period 1,855,680 expenditures and are not reported in the governmental funds.3,522,309 Accrued interest payable is recognized for governmental activities but is not due and payable in the current period and therefore is not 688,786 reported as a liability in the governmental funds.(47,647) 717,740 192,173 The internal service fund is used by management to charge the rental 3,373,917 cost of certain vehicles and equipment to individual funds. The assets 1,175,301 and liabilities of the internal service fund is included in governmental activities in the statement of net position.6,099,992 7,908,698 32,768 Net Position of Governmental Activities 83,170,546$ 585,486 5,125,805 19,800,674 23,207,269$ 21 TOWN OF AVON, COLORADO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2017 Avon Urban Debt CapitalGeneralRenewalServiceProjectsFundFundFundFundRevenues Taxes 12,562,229$ 1,136,777$ -$ 4,449,530$ Licenses and Permits 341,543 - - - Intergovernmental 959,782 - - 70,000 Charges for Services 1,716,388 - - - Fines and Forfeitures 94,311 - - - Investment Earnings 126,329 7,114 5,023 39,811 Other Revenues 408,720 - - 99,002 Total Revenues 16,209,302 1,143,891 5,023 4,658,343 ExpendituresCurrent: General Govt., Finance & Administration 3,356,161 - - - Community Development 1,505,073 - - - Public Safety 3,416,991 - - - Public Works and Utilities 4,180,010 - - - Recreation 1,436,483 - - - Capital Improvements - 32,651 - 6,688,496 Debt Service: Principal - 564,637 560,000 115,106 Interest - 282,253 457,469 6,663 Bond Issuance Costs - 81,625 - - Fiscal Charges - 34,662 6,500 - Total Expenditures 13,894,718 995,828 1,023,969 6,810,265 Excess (Deficiency) of Revenues Over (Under) Expenditures 2,314,584 148,063 (1,018,946) (2,151,922) Other Financing Sources (Uses) Transfers In 226,327 - 1,017,969 4,264,125 Transfers Out (2,870,415) (2,978,375) - (1,244,296) Debt Issuance Proceeds 80,204 3,000,000 - - Total Other Financing Sources (Uses)(2,563,884) 21,625 1,017,969 3,019,829 Net Change in Fund Balances (249,300) 169,688 (977) 867,907 Fund Balances, Beginning of Year 6,063,891 1,187,763 536,567 10,414,708 Fund Balances, End of year 5,814,591$ 1,357,451$ 535,590$ 11,282,615$ The accompanying notes are an integral part of the financial statements. 22 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, 2017 Net change in fund balances - Total Governmental Funds 939,462$ Other Governmental Amounts reported for governmental activities in theFundsTotalStatement of Activities are different because: -$ 18,148,536$ Governmental funds report capital outlays as expenditures. However,32,768 374,311 for governmental activities, those capital outlays other than - 1,029,782 noncapitalizable items are shown in the Statement of Activities and the289,424 2,005,812 cost of those assets is allocated over their estimated useful lives and- 94,311 reported as depreciation expense: 720 178,997 - Capital outlay 4,577,299 156,315 664,037 - Depreciation (4,387,958) 189,341 479,227 22,495,786 Expenses reported in the Statement of Activities that do not require the use of current financial resources are not reported as expendituresin governmental funds. 23,121 3,379,282 - Loss on Disposal of Capital Assets (16,292) - 1,505,073 - Change in compensated absences payable (1,661) - 3,416,991 - Change in accrued interest payable on outstanding bonds 62,876 138,212 4,318,222 - Amortization of bond premium 9,834 - 1,436,483 54,757 - 6,721,147 Debt issuance proceeds are reported as Other Financing Sources in- 1,239,743 the governmental funds, but are reported as noncurrent liabilities in - 746,385 the Statement of Net Position (3,080,204) - 81,625 - 41,162 Payment received on affordable housing notes receivable are reportedas revenue in the governmental funds, but the repayment reduces 161,333 22,886,113 notes receivable in the Statement of Net Position (74,270) Repayment of bond and lease principal are reported an expenditure in 317,894 (390,327) the governmental funds, but the repayment reduces long-term liabilitiesin the Statement of Net Position: - Certificates of Participation retirements 560,000 - 5,508,421 - Tax Increment Revenue Bond principal retirements 564,637 (165,750) (7,258,836) 1,124,637 - 3,080,204 The internal service fund is used by management to charge the rental(165,750) 1,329,789 cost of certain vehicles and equipment to individual funds. The decrease in net position of the internal service fund is included in152,144 939,462 governmental activities.1,134,428 658,283 18,861,212 Change in Net Positon of Governmental Activities 288,151$ 810,427$ 19,800,674$ 23 TOWN OF AVON, COLORADO STATEMENT OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2017 GovernmentalFleetActivities - Transit Maintenance InternalFundFundTotalsService Fund ASSETSCurrent Assets:Cash and Cash Equivalents 136,921$ -$ 136,921$ 3,258,917$ Receivables: - Taxes 41,532 - 41,532 - - Accounts 2,304 1,382 3,686 - - Intergovernmental 49,203 129,407 178,610 - Deferred Expense 163,283 - 163,283 - Due From Other Funds 357,238 - 357,238 - Inventory - 534,905 534,905 - Restricted Assets - Cash and Cash Equivalents - - - 275,614 Total Current Assets 750,481 665,694 1,416,175 3,534,531 Noncurrent Assets: Capital Assets: - Land 281,450 130,384 411,834 - - Buildings 9,928,323 5,639,287 15,567,610 1,704,285 - Machinery and Equipment 4,355,632 284,117 4,639,749 6,324,655 - Accumulated Depreciation (3,588,050) (3,040,408) (6,628,458) (4,977,428) Total Noncurrent Assets 10,977,355 3,013,380 13,990,735 3,051,512 Total Assets 11,727,836 3,679,074 15,406,910 6,586,043 LIABILITIES Current Liabilities:Accounts Payable 12,457 101,640 114,097 26 Accrued Liabilities 18,085 12,568 30,653 - Accrued Interest Payable - 9,113 9,113 - Compensated Absenses Payable 17,943 35,171 53,114 - Due to Other Funds - 457,238 457,238 - Certificates of Participation - Current - 147,496 147,496 - Capital Leases Payable - Current 58,821 5,043 63,864 154,365 Total Current Liabilities 107,306 768,269 875,575 154,391 Noncurrent Liabilities: Certificates of Participation - 2,349,640 2,349,640 - Capital Leases Payable - - - 331,660 Total Noncurrent Liabilities - 2,349,640 2,349,640 331,660 Total Liabilities 107,306 3,117,909 3,225,215 486,051 DEFERRED INFLOWS OF RESOURCES Property Tax Revenue 41,532 - 41,532 - Gain on Advance Refunding of Debt - 5,323 5,323 - Total Deferred Inflows of Resources 41,532 5,323 46,855 - NET POSITIONNet Investment in Capital Assets 10,918,534 505,878 11,424,412 2,565,487 Unrestricted 660,464 49,964 710,428 3,534,505 Total Net Position 11,578,998$ 555,842$ 12,134,840$ 6,099,992$ The accompanying notes are an integral part of the financial statements. Business-Type Activities - Enterprise Funds 24 TOWN OF AVON, COLORADO STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2017 Governmental Fleet Activities - Transit Maintenance Internal Fund Fund Totals Service Fund Operating Revenues: Charges for Services 267,215$ 1,127,815$ 1,395,030$ 646,800$ Other Operating Revenues 86,131 1,609 87,740 - Total Operating Revenues 353,346 1,129,424 1,482,770 646,800 Operating Expenses: Cost of Operations 1,661,559 1,403,972 3,065,531 61,030 Depreciation and Amortization 588,784 141,029 729,813 502,667 Total Operating Expenses 2,250,343 1,545,001 3,795,344 563,697 Operating Income (Loss)(1,896,997) (415,577) (2,312,574) 83,103 Nonoperating Revenues (Expenses): Taxes 40,297 - 40,297 - Capital Grants 328,000 - 328,000 - Gain (Loss) on Disposal of Capital Assets - - - 14,070 Interest Expense (3,215) (110,773) (113,988) - Total Nonoperating Revenues (Expenses)365,082 (110,773) 254,309 14,070 Income (Loss) Before Contributions and Transfers (1,531,915) (526,350) (2,058,265) 97,173 Capital Contributions and Transfers Contributed Capital 103,403 - 103,403 1,037,255 Transfers In (Out)1,390,415 360,000 1,750,415 - Total Capital Contributions and Transfers 1,493,818 360,000 1,853,818 1,037,255 Change in Net Position (38,097) (166,350) (204,447) 1,134,428 Net Position, Beginning of Year 11,617,095 722,192 12,339,287 4,965,564 Net Position, End of Year 11,578,998$ 555,842$ 12,134,840$ 6,099,992$ The accompanying notes are an integral part of the financial statements. Business-Type Activities - Enterprise Funds 25 TOWN OF AVON, COLORADO STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2017 Governmental Fleet Activities - Transit Maintenance Internal Fund Fund Totals Service Fund Cash Flows From Operating Activities Cash Received from Customers and Users 266,441$ 514,140$ 780,581$ -$ Cash Received from Interfund Services Provided - 584,919 584,919 646,800 Cash Payments to Suppliers (781,924) (760,409) (1,542,333) (61,004) Cash Payments to Employees (782,655) (494,580) (1,277,235) - Cash Payments for Interfund Services Used (261,222) (74,379) (335,601) - Other Operating Revenues 86,131 1,609 87,740 - Net Cash Provided by (Used in) Operating Activities (1,473,229) (228,700) (1,701,929) 585,796 Cash Flows From Noncapital Financing Activities Taxes Received 40,297 - 40,297 - Grants Received 328,000 - 328,000 - Net Borrowings (To) From Other Funds (457,238) 457,238 - - Repayments of Borrowings From Other Entities 335,406 (335,406) - - Transfers In from Other Funds 1,390,415 360,000 1,750,415 - Net Cash Provided by Noncapital Financing Activities 1,636,880 481,832 2,118,712 - Cash Flows From Capital Financing Activities Acquisition and Construction of Capital Assets (415,415) - (415,415) (137,348) Proceeds from Sales of Capital Assets - - - 46,362 Proceeds from Debt Issuance - - - 275,614 Interest Paid on Long-term Debt (3,215) (108,177) (111,392) - Principal Paid on Long-term Debt (57,005) (144,955) (201,960) - Net Cash Provided by (Used in) Capital Financing Activities (475,635) (253,132) (728,767) 184,628 Net Increase (Decrease) in Cash and Cash Equivalents (311,984) - (311,984) 770,424 Cash and Cash Equivalents, Beginning of Year 448,905 - 448,905 2,764,107 Cash and Cash Equivalents, End of Year 136,921$ -$ 136,921$ 3,534,531$ The accompanying notes are an integral part of the financial statements. Business-Type Activities - Enterprise Funds 26 Governmental Fleet Activities - Transit Maintenance Internal Fund Fund Totals Service Fund RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Operating Income (Loss)(1,896,997)$ (415,577)$ (2,312,574)$ 83,103$ Adjustments to Reconcile Operating Loss to Net Cash Provided by (Used in) Operating Activities Depreciation and Amortization 588,784 141,029 729,813 502,667 Change in Assets and Liabilities: (Increase) Decrease in Accounts Receivable (774) (2,942) (3,716) - (Increase) Decrease in Intergov. Receivable 4,875 (31,698) (26,823) - (Increase) in Deferred Expense (163,283) - (163,283) - Decrease in Inventory - 6,528 6,528 - Increase in Accounts Payable 3,462 61,425 64,887 26 Increase in Accrued Liabilities 4,165 2,328 6,493 - Increase (Decrease) in Comp. Absences Payable (13,461) 10,207 (3,254) - Total Adjustments 423,768 186,877 610,645 502,693 Net Cash Provided by (Used in) Operating Activities (1,473,229)$ (228,700)$ (1,701,929)$ 585,796$ NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Noncash Transactions Affecting Financial Position Contributions of Capital Assets from Governmental Activities 103,403$ -$ 103,403$ 922,148$ Capital Assets Disposed - - - (18,892) Principal on Capital Leases Paid from Governmental Activities - - - 115,107 103,403$ -$ 103,403$ 1,018,363$ Business-Type Activities - Enterprise Funds 27 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 28 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 Comprehensive Annual 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 unit are – Avon Urban Renewal Authority (AURA) – The AURA is a body corporate duly organized and existing as an urban renewal authority established by the Town of Avon, Colorado pursuant to the Urban Renewal Law of the State of Colorado for undertaking certain urban renewal activities within the Town. The boundaries of the AURA are coterminous with the boundaries of the Town. The bylaws of the AURA provide that the members of the Avon Town Council shall constitute the Commissioners of the AURA. The Mayor of the Town services as Chairman, the Mayor Pro-Tem serves as Vice Chairman, the Town Manager serves as the Executive Director and Secretary, the Finance Director serves as Treasurer, and the Town Clerk serves as the AURA Clerk. For financial reporting purposes, the AURA is blended into the Town’s financial statements and is reported in a single special revenue fund as a blended component unit. A separate budget is adopted for the AURA, however separate financial statements of the AURA are not issued. 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 the services to be provided within and for the District include transportation and recreation 29 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. For financial reporting purposes, the District is blended into the Town’s financial statements and is reported in the Transit enterprise fund as a blended component unit. Separate budgets and financial statements of the District are not adopted or issued. 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 particular 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. This 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. Depreciation is computed and recorded as an operating expense. Expenditures for property, plant and TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 30 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. 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 31 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: • Transit 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 Outflows/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 is 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. 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. Investment income is recognized when earned. TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 32 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. Restricted Assets. Restricted assets in the amount of $80,222 are reported in the General Fund. This amount consists of unspent capital lease proceeds held in an escrow account at Commerce Bank for the purchase of equipment. Restricted assets in the amount of $639,711 are reported in the Avon Urban Renewal Fund. This consists of a $628,240 required debt service reserve plus additional funds of $11,471 both held in a separate Colotrust fund for purposes of the Authority’s 2013 Tax Increment Revenue Bonds. Restricted assets in the amount of $509,942 are reported in the Debt Service Fund. This amount consists of a $509,875 required debt service reserve, $42 in a base rental fund for the Series 2010 Certificates of Participation, and $25 in a base rental fund for the Series 2014B Certificates of Participation. These reserves are all held in UMB Bank’s trust department. Restricted assets in the amount of $3,373,917 are reported in the Capital Project Fund. This consists of unspent bond proceeds of $2,652,084 for the Series 2017 Tax Increment Revenue Bonds issued on January 5, 2017 for the construction of tenant finishes at the new Avon Town Hall, and an additional $721,833 held in 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. Restricted assets in the amount of $275,614 are reported in the Equipment Replacement Fund. This amount consists of unspent capital lease proceeds held in an escrow account at Commerce Bank for the purchase of equipment. 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 are recorded at their estimated fair market value at the date of contribution. Major outlays for capital improvement projects are capitalized as projects are completed. The Town’s infrastructure consists of streets and roads, bridges, storm drainage, water rights and storage, heat recovery system, irrigation ditches, bike paths, and public parking. TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 32 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. Restricted Assets. Restricted assets in the amount of $80,222 are reported in the General Fund. This amount consists of unspent capital lease proceeds held in an escrow account at Commerce Bank for the purchase of equipment. Restricted assets in the amount of $639,711 are reported in the Avon Urban Renewal Fund. This consists of a $628,240 required debt service reserve plus additional funds of $11,471 both held in a separate Colotrust fund for purposes of the Authority’s 2013 Tax Increment Revenue Bonds. Restricted assets in the amount of $509,942 are reported in the Debt Service Fund. This amount consists of a $509,875 required debt service reserve, $42 in a base rental fund for the Series 2010 Certificates of Participation, and $25 in a base rental fund for the Series 2014B Certificates of Participation. These reserves are all held in UMB Bank’s trust department. Restricted assets in the amount of $3,373,917 are reported in the Capital Project Fund. This consists of unspent bond proceeds of $2,652,084 for the Series 2017 Tax Increment Revenue Bonds issued on January 5, 2017 for the construction of tenant finishes at the new Avon Town Hall, and an additional $721,833 held in 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. Restricted assets in the amount of $275,614 are reported in the Equipment Replacement Fund. This amount consists of unspent capital lease proceeds held in an escrow account at Commerce Bank for the purchase of equipment. 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. The Town’s infrastructure consists of streets and roads, bridges, storm drainage, water rights and storage, heat recovery system, irrigation ditches, bike paths, and public parking. TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 34 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. There is no liability for unpaid accumulated sick leave since the Town’s policy is to not pay for accumulated sick leave when employees separate from service. The liability for compensated absences is recorded as a non-current liability in the government-wide financial statements. The current portion of this debt is estimated based on historical trends. In the fund financial statements governmental funds report a compensated liability payable only if they have matured, for example, as a result of employee resignations and retirements, while the proprietary funds report the liability as it is incurred. Within the governmental funds, the General Fund typically is used to liquidate any liabilities for compensated absences. 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: • 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; 35 • 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; • 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 fund 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 of $292,371 are reflected in noncurrent liabilities. Premiums 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 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 36 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. 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 Debt Service Fund, Transit Fund and Fleet Maintenance Fund expenditures exceeded budgeted appropriations during 2017. This may be a violation of Colorado budget law. Note 3. Cash and Investments Cash and investments as of December 31, 2017 are classified in the accompanying financial statements as follows: Cash and Cash Equivalents Investments Restricted Assets - Cash and Cash Equivalents $ 11,709,615 6,198,598 4,879,406 Total $ 22,787,619 Cash and investments as of December 31, 2017 consist of the following: Cash on Hand Demand Deposits Other Deposits with Financial Institutions Local Government Investment Pools Investments $ 4,925 618,057 4,239,695 11,726,344 6,198,598 Total $ 22,787,619 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 37 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. At December 31, 2017, the Town had the following recurring fair value measurements: Fair Value Measurements Using Investments Measured at Fair Value Total Level 1 Level 2 Level 3 U.S. Government Treasury Securities Federal Instrumentality Securities $ 498,690 5,699,908 $ 498,690 5,699,908 $ - - $ - - Total $ 6,198,598 $ 6,198,598 $ - $ - Investments Measured at Net Asset Value Total Colotrust $11,726,344 Debt and equity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Debt and equity securities classified in Level 2 are valued using the following approaches: • U.S. Government treasury securities, U.S. Government agency securities, and commercial paper: quoted prices for identical securities in markets that are not active; • Corporate and municipal bonds: quoted prices for similar securities in active markets; • Repurchase agreements, negotiable certificates of deposit, and collateralized debt obligations: matrix pricing based on the securities’ relationship to benchmark quoted prices. At December 31, 2017, unrealized losses were $46,780 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 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 38 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. At 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: Weighted Average Maturity (in Years) U.S. Government Treasury Notes U.S. Government Agency Securities: Federal Home Loan Bank Federal National Mortgage Assn. Federal Farm Credit Bank Colotrust $ 498,690 2,997,790 993,350 1,708,768 11,726,344 1.915 2.061 0.953 1.798 NA Total $ 17,924,942 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, 2017. 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 investments in commercial paper at December 31, 2017. 39 Investments in any one issuer (other than U.S. Treasury obligations, mutual funds, and local government investment pools) that represent 5% or more of total Town investments are as follows: Issuer Investment Type Reported Amount % of Total Investments Federal Home Loan Bank Federal National Mortgage Assn. Federal Farm Credit Bank Federal Instrumentality Securities Federal Instrumentality Securities Federal Instrumentality Securities $ 2,997,790 993,350 1,708,768 16.70% 5.54% 9.543% 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 $618,057 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. TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 40 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. The trusts value their shares based on a stable net value of $1.00 per share. 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. As of December 31, 2017, the Town of Avon held investments in the Colorado Local Government Liquid Asset Trust (Colotrust Plus portfolio). The Plus portfolios 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. At December 31, 2017, the Town’s investments in COLOTRUST were 65.4% of the Town’s investment portfolio. Note 4. Capital Assets Capital asset activity for the year ended December 31, 2017 was as follows: Governmental Activities: Beginning Balance Increases Decreases Ending Balance Capital Assets, Not Being Depreciated: Land and Land Improvements Public Art Water Rights Construction in Progress Total Capital Assets, Not Being Depreciated $ 11,588,728 1,361,400 1,792,959 2,469,920 17,213,007 $ 38,008 - - 5,600,063 5,638,071 $ - - - (6,530,686) (6,530,686) $ 11,626,736 1,361,400 1,792,959 1,539,297 16,320,392 Capital Assets, Being Depreciated: Buildings Utilities Machinery and Equipment Infrastructure Total Capital Assets, Being Depreciated 19,808,907 4,484,891 5,435,323 85,980,572 115,709,693 4,895,700 91,065 1,059,496 483,149 6,529,410 (90,100) - (170,164) - (260,264) 24,614,507 4,575,956 6,324,655 86,463,721 121,978,839 Less Accumulated Depreciation: Buildings Utilities Machinery and Equipment Infrastructure Total Accumulated Depreciation (9,216,680) (1,239,657) (3,432,494) (42,292,361) (56,181,192) (683,452) (208,842) (429,444) (3,568,887) (4,890,625) 73,808 - 151,272 - 225,080 (9,826,324) (1,448,499) (3,710,666) (45,861,248) (60,846,737) Total Capital Assets, Being Depreciated, Net 59,528,501 1,638,785 (35,184) 61,132,102 Governmental Activities Capital Assets, Net $ 76,741,508 $ 7,276,856 $ (6,565,870) $ 77,452,494 41 Business-type Activities: Beginning Balance Increases Decreases Ending Balance Capital Assets, Not Being Depreciated: Land Capital Assets, Being Depreciated: Buildings Machinery and Equipment Total Capital Assets, Being Depreciated $ 411,834 15,464,207 4,234,112 19,698,319 $ - 103,403 415,415 518,818 $ - - (9,778) (9,778) $ 411,834 15,567,610 4,639,749 20,207,359 Less Accumulated Depreciation: Buildings and Facilities Machinery and Equipment Total Accumulated Depreciation (3,515,358) (2,393,065) (5,908,423) (393,639) (336,174) (729,813) - 9,778 9,778 (3,908,997) (2,719,461) (6,628,458) Total Capital Assets, Being Depreciated, Net 13,789,896 (210,995) - 13,578,901 Business-type Activities Capital Assets, Net $ 14,201,730 $ (210,995) $ - $ 13,990,735 Depreciation expense was charged to functions/programs of the Town as follows: Governmental Activities: General Government Community Development Public Safety Public Works and Utilities, including depreciation of general infrastructure assets Recreation and Culture $ 136,833 1,414 204,952 4,186,406 361,020 Total Depreciation Expense – Governmental Activities $ 4,890,625 Business-type Activities: Transportation Fleet Maintenance $ 588,784 141,029 Total Depreciation Expense – Business-type Activities $ 729,813 Note 5. Long-term Debt Revenue Bonds and Loans – Avon Urban Renewal Authority. Pursuant to the Urban Renewal Plan adopted for the Town Center West Urban Renewal Project Area (Project Area), generally known as Avon Town Center West, the Avon Urban Renewal Authority issued $25 million in Series 2008 Tax Increment Adjustable Rate Revenue Bonds (Series 2008 Bonds) in February 2008 for financing the cost of constructing traffic, street and pedestrian improvements. In 2009, the Avon Urban Renewal Authority entered into a Series 2009 Variable Rate Loan Agreement (Series 2009 Loan) in the amount of $7,200,000 with Vectra Bank for refinancing the Authority’s Series 2008 Tax Increment Adjustable Rate Revenue Bonds. Net proceeds from the Series 2009 Loan, along with unused proceeds and TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 42 the reserve account balance from the Series 2008 bonds, were used to redeem the Series 2008 bonds. 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. The 2013 Bonds have a reserve requirement of $628,240. If, at any time, the balance of the Reserve Account is less than the Reserve Requirement the Town Council has agreed to consider but is not obligated to, replenish the Reserve Account balance to the Reserve Requirement. The Bonds shall be subject to optional redemption on any interest payment date with a redemption price of the Bonds not exceeding 101% of the principal amount so redeemed. 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. The 2013 and 2017 Bonds 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. Pledged revenues also include all amounts appropriated to the Authority to replenish reserves along with applicable investment earnings and any other legally available moneys which the Town determines, in its sole discretion, to deposit in the Bond Account. Revenue bonds and loans outstanding at December 31, 2017, are as follows: Purpose Interest Rates Amount General Government – Avon Urban Renewal Authority 2.9% - 3.52% $ 8,225,362 Annual debt service requirements to maturity for revenue bonds outstanding at December 31, 2017, are as follows: Year Ending Avon Urban Renewal Authority December 31 Principal Interest 2018 2019 2020 2021 2022 2023-2027 2028 $ 410,000 425,000 440,000 455,000 470,000 2,615,000 580,000 $ 189,904 175,472 160,512 145,024 129,008 384,736 20,416 Total $ 8,225,362 $ 1,205,072 43 Certificates of Participation. In 1998, the Town of Avon Finance Authority issued Certificates of Participation to finance the cost of constructing a fleet maintenance facility. The Certificates evidence assignments of proportionate interest in rights to receive payments pursuant to an annually terminable Lease Purchase and Sublease Agreement, dated as of July 1, 1998, between the Authority as lessor, and the Town of Avon as lessee. In 1999, the fleet maintenance facility was completed and the proceeds from the Certificates that were used directly in the construction of the fleet maintenance facility in the amount of $5,141,250 (approximately 75%) were capitalized in the Fleet Maintenance Fund. 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 an interest rates 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. Certificates of Participation outstanding at December 31, 2017, are as follows: Purpose Interest Rates Amount General Government – Refunding and Capital 2.0% - 5.0% $14,140,000 Annual debt service requirements to maturity for Certificates of Participation outstanding at December 31, 2017, are as follows: TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 44 Year Ending December 31 Governmental Activities Business Activities Principal Interest Principal Interest 2018 2019 2020 2021 2022 2023-2027 2028-2032 2033-2035 $ 630,000 650,000 675,000 695,000 710,000 3,910,000 3,150,000 1,255,000 $ 381,855 362,707 342,413 324,167 302,944 1,153,746 457,995 76,050 $ 145,000 150,000 155,000 160,000 170,000 980,000 705,000 - $ 109,357 104,825 99,575 94,150 86,150 297,725 64,350 - Total $ 11,675,000 $ 3,401,877 $ 2,465,000 $ 856,132 Capital Lease Obligations. The following leases are renewable on an annual basis, at the option of the Town, for consecutive one-year periods. Upon final payment, title to the leased assets will pass to the Town. • Lease obligation for equipment with a total cost of $563,811 and a book value net of accumulated depreciation at December 31, 2017 of $285,487. Due in four remaining semi-annual installments of $45,210 through August 2018. Amortization is based on an interest rate of 3.162%. The Town may terminate the lease by paying the applicable purchase option on any scheduled payment. Balance at December 31, 2017, is $88,320. • Lease obligation for equipment with a total cost of $217,004 and a book value net of accumulated depreciation at December 31, 2017 of $109,414. Due in five remaining semi-annual installments of $16,803.27 through March 2019. Amortization is based on an interest rate of 2.19%. The Town may terminate the lease by paying the applicable purchase option price on any scheduled payment. Balance at December 31, 2017, is 49,326. • Lease obligation for equipment with a total cost of $208,418 and a book value net of accumulated depreciation at December 31, 2017 of $139,489. Due in four semi-annual installments of $18,397 through August 2018. Amortization is based on an interest rate of 1.77%. The Town may terminate the lease by paying the applicable purchase option on any scheduled payment. Balance at December 31, 2017 is $36,312. • Lease obligation for equipment with a total cost of $168,986 and a book value net of accumulated depreciation at December 31, 2017 of $122,092. Due in ten semi- annual installments of $13,139 through July 2021. Amortization is based on an interest rate of 2.10%. The Town may terminate the lease by paying the applicable purchase option on any scheduled payment. Balance at December 31, 2017 is $100,319. • Lease obligation for equipment with a total cost of $355,818 and a book value net of accumulated depreciation at December 31, 2017 of $0. Due in seven annual installments beginning with the first installment in November 2018 of $55,720 through November 2024. Amortization is based on an interest rate of 2.35%. The 45 Town may terminate the lease by paying the applicable purchase option on any scheduled payment. Balance at December 31, 2017 is $355,818. Annual debt service requirements to maturity for Capital Lease Obligations outstanding at December 31, 2017, are as follows: Year Ending December 31 Governmental Activities Business-type Activities Principal Interest Principal Interest 2018 2019 2020 2021 2022 2023-2024 Total $ 165,129 89,905 74,947 76,647 51,969 107,632 $ 566,229 $ 12,360 8,897 7,052 5,352 3,751 3,809 $ 41,221 $ 63,864 - - - - - $ 63,864 $ 1,466 - - - - - $ 1,466 Changes in Long-term Liabilities. Long-term liability activity for the year ended December 31, 2017, was as follows: Beginning Balance Additions Deletions Ending Balance Due Within One Year Governmental Activities: Bonds Payable: - Revenue Bonds - Certificates of Participation - Bond Premium Total Bonds Payable Capitalized Leases Payable Compensated Absences $ 5,790,000 12,235,000 18,025,000 302,205 18,327,205 325,518 351,725 $ 3,000,000 - 3,000,000 - 3,000,000 355,818 632,811 $ 564,638 560,000 1,124,638 9,834 1,134,472 115,106 631,150 $ 8,225,362 11,675,000 19,900,362 292,371 20,192,733 566,230 353,386 $ 576,079 630,000 1,206,079 12,712 1,218,791 165,130 353,386 Governmental Activity Long- term Liabilities $19,004,448 $ 3,988,629 $ 1,880,728 $21,112,349 $ 1,737,307 Business-type Activities: Certificates of Participation Bond Premium Total Bonds Payable Capitalized Leases Payable Compensated Absences $ 2,605,000 34,632 2,639,632 125,824 56,368 $ - - - - 104,421 $ 140,000 2,496 142,496 61,960 107,674 $ 2,465,000 32,136 2,497,136 63,864 53,115 $ 145,000 2,496 147,496 63,864 53,115 Business-type Activity Long- term Liabilities $ 2,821,824 $ 104,421 $ 312,130 $ 2,614,115 $ 264,475 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 46 Conduit Debt Obligations. The Town has sponsored the issuance of revenue bonds in prior years to provide financial assistance to private-sector entities for the acquisition and construction of facilities deemed to be in the public interest. Neither the Town, the State of Colorado, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying general purpose financial statements. Conduit debt obligations at December 31, 2017, are described as follows: Eaglebend Affordable Housing Corporation. The Eaglebend Affordable Housing Corporation (Eaglebend) was formed on October 23, 1990, to help provide for affordable housing within the Town of Avon. Eaglebend operates exclusively on behalf and for the benefit of the Town to operate a 294-unit apartment project within the Town. 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 outstanding indebtedness of Eaglebend. On August 30, 2006, Eaglebend issued $18,495,000 of Multifamily Housing Project Revenue Refunding Bonds Series 2006A, Series 2006B, and Series C Subordinate Multifamily Housing Project Bonds to defease $17,455,000 of outstanding Series 1997A Eaglebend Affordable Housing Corporation Revenue Refunding Bonds, and $1,355,000 of outstanding Series 1997B&C Subordinate Eaglebend Affordable Housing Corporation Revenue Refunding Bonds. In June 2017 the Series 2006A and 2006C were paid in full by the execution of a promissory note collateralized by a deed of trust on the property and issued in order to pay off all outstanding bonds and fund a construction project on the property. Eaglebend Dowd Affordable Housing Corporation. The Eaglebend Dowd Affordable Housing Corporation (Dowd) was formed on March 24, 1998, to help provide for affordable housing within Eagle County. Dowd 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. The Town, however, is in no way obligated to pay the debt service on 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. As of December 31, 2017, there was $8,336,216 outstanding in Series 2014A Multifamily Housing Project Refunding Revenue Bonds, and $1,600,000 outstanding in Series 1998 B&C Subordinate Revenue Bonds. 47 Buffalo Ridge I and II Apartment Project. The Buffalo Ridge I Apartment Project consists of 68 units composed of 2 and 3-bedroom units in four buildings located on the north side of Interstate 70 east of the Town of Avon municipal fleet maintenance facility. The owner of the Buffalo Ridge I Apartments is the Buffalo Ridge Affordable Housing Corporation. In 2002 the Project issued Multifamily Housing Project Revenue Bonds, Series 2002 in order to finance construction costs relating to the Project. As part of the transaction, the lender originated a mortgage loan to the Project insured by the FHA, which was secured by a promissory note and a deed of trust. In addition, to provide security for the Bonds, the Project entered into a Financing Agreement among the Project, the lender and Wells Fargo Bank, NA, as trustee for the Bonds, pursuant to which the Project directed the Trustee to use proceeds of the Bonds to purchase from the lender fully modified mortgage-backed securities secured by the Government National Mortgage Association (the “GNMA Securities”). The bonds were redeemed in 2011 upon the sale of the GNMA Securities. Pursuant to the plan of financing, this project will be transferred to the Town of Avon upon the repayment in full of the outstanding debt. The project above is part of a total development comprised of 244 units. The Buffalo Ridge II Apartment Project consists of approximately 176 units in eleven (11) three-story buildings. The Town of Avon issued multifamily housing revenue bonds dated May 1, 2002, to provide financing to Buffalo Ridge II, LLLP, a Colorado limited liability partnership formed for the principal purpose of owning the project. On January 11, 2012, the $14,940,000 outstanding in the Series 2002A Multifamily Housing Project Revenue Bonds and outstanding Series 2002B Taxable Multifamily Housing Project Revenue Bonds were defeased in full. Defeased Debt. Certain other bonds previously issued by the Town have been defeased by the issuance of refunding bonds. As of December 31, 2017, there are no amounts outstanding on any refunded bonds. Note 6. 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 19 participants, and (2) the Town of Avon General Employee Money Purchase Pension Plan of which there are 108 participants as of December 31, 2017. 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. TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 48 All full-time employees are required to participate in one of the above retirement plans upon employment with the Town. The 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. Forfeitures 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 $42,595 were used in 2017 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, 2017, are as follows: 2017 2016 2015 Employee Contributions $ 659,359 $ 607,999 $ 577,084 Town Contributions $ 659,359 $ 607,999 $ 577,084 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 2017. 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 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. 49 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. Taxes are paid when funds are withdrawn from the plan. Contributions made by plan members and the Town for the three years ended December 31, 2017, are as follows: 2017 2016 2015 Employees $33,993 $36,031 $36,655 Town $26,697 $25,239 $25,490 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, 2017, there were 117 participants in this plan. Note 7. 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. As of December 31, 2017, there were 48 participants in the 457 plan. Note 8. 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 $35,000 and aggregate total yearly claims in excess of $1,721,178. Settled benefit claims did not exceed the aggregate total yearly claims for 2017. As of December 31, 2017, the Town held reserves for future claims in the amount of $449,162. TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 50 The following represents the changes in the claims reserve for the Town for 2017 and 2016: 2017 2016 Claims Reserve for Future Claims, Beginning of Year Current Year Deposits for Estimated Claims Excess Stop Loss Refunds for Specific (Individual) Claims Claim Payments $ 615,630 1,484,558 240,840 (1,891,866) $ 472,594 1,537,574 78,413 (1,472,951) Claims Reserve for Future Claims, End of Year $ 449,162 $ 615,630 Note 9. 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”. These interfund receivables and payables are expected to be repaid within the next year. The composition of these interfund balances as of December 31, 2017, is as follows: Receivable Fund Payable Fund Amount General Fund Transit Fund Fleet Maintenance Fund Fleet Maintenance Fund $ 100,000 357,238 Total $ 457,238 Interfund Transfers: Fund Transfers In Transfers Out Major Funds: General Fund Urban Renewal Authority Fund Debt Service Capital Projects Fund Transit Enterprise Fund Fleet Maintenance Enterprise Fund Nonmajor Funds: Water Fund Community Enhancement Fund Transfer In of Non-financial Resources: Transit Enterprise Fund Internal Service Fund Total $ 226,327 - 1,017,969 4,264,125 1,390,415 360,000 - - 7,258,836 103,403 1,037,255 $ 8,399,494 $ 2,870,415 2,978,375 - 1,244,296 - - 25,000 140,750 7,258,836 - - $ 7,258,836 51 In the fund financial statements, total transfers in of $8,399,494 are greater than total transfers out of $7,258,836 because of the treatment of transfers of non-financial resources to the Transit enterprise fund and the internal service fund. During the year, capital assets purchased in 2017 related to governmental funds, with a book value of $103,403 and $922,148 were transferred to the Transit enterprise fund and internal service fund, respectively. In addition, capital lease principal payments of $115,107 were made on behalf of 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 a transfer in for the capital resources received. Note 10. 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. Construction Contract Commitments. As of December 31, 2017, the Town had several construction contract commitments outstanding in the amount of $819,536. Intergovernmental Agreement. The Town entered into an Intergovernmental Agreement (IGA) with the Eagle River Fire Protection District (Fire District) on April 28, 2015 for jointly designing, financing, and constructing a Joint Public Safety Facility in the Town of Avon. The IGA expires on June 2, 2020. The IGA provides for many covenants and mutual agreements including temporary financing, design, construction bid process, construction financing, sale and conveyance of land, and construction. As of December 31, 2017, there have been three amendments to the IGA including entering into a memorandum of agreement regarding cost sharing, and the waiver of various fees by both parties. 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 take action 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 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 52 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, 2017 in the amount of $688,786. Town management believes it is in compliance with the provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of the provisions, including the interpretation of how to calculate Fiscal Year Spending limits will require judicial interpretation. Note 11. 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 228 municipalities and 41 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’s annual contribution to CIRSA amounted to $201,512 for 2017. 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. 53 Note 12. 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, 2017, the Authority had debt with maturities through the year 2039. 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 2017, the Authority collected $154,459 in water surcharges for the Town. TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2017 54 Note 13. Tax Abatements The Town has entered into various agreements in order to meet development goals within certain areas of 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 $3,921,493 100% tax credit against sales, accommodations and real estate transfer taxes paid within the development area. Riverfront PUD Property Tax Increment Intergovernmental Agreement $ 319,232 100% tax rebate of incremental property taxes received from Avon Station Metropolitan District, excluding Lot B. Note 14. Major Taxpayers For the year ended December 31, 2017 forty-seven percent (47%) of the Town’s sales tax revenues were received from the ten highest-paying companies. REQUIRED SUPPLEMENTAL INFORMATION TOWN OF AVON, COLORADO REQUIRED SUPPLEMENTAL INFORMATION GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2017 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes 12,245,424$ 12,770,684 12,562,229$ (208,455)$ Licenses and Permits 206,100 323,878 341,543 17,665 Intergovernmental 1,010,926 1,055,129 959,782 (95,347) Charges for Services 1,504,782 1,665,189 1,716,388 51,199 Fines and Forfeitures 92,445 92,445 94,311 1,866 Investment Earnings 25,000 135,000 126,329 (8,671) Other Revenues 314,900 429,799 408,720 (21,079) Total Revenues 15,399,577 16,472,124 16,209,302 (262,822) Expenditures Current: General Govt., Finance & Administration 3,330,643 3,427,608 3,356,161 71,447 Community Development 935,279 1,533,484 1,505,073 28,411 Public Safety 3,370,680 3,304,540 3,416,991 (112,451) Public Works 4,442,906 4,389,796 4,180,010 209,786 Recreation 1,434,122 1,411,931 1,436,483 (24,552) Contingency 250,000 - - - Total Expenditures 13,763,630 14,067,359 13,894,718 172,641 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,635,947 2,404,765 2,314,584 (90,181) Other Financing Sources (Uses) Transfers In: Capital Projects Fund 226,327 226,327 226,327 - Transfers Out: Capital Projects Fund (120,000) (1,120,000) (1,120,000) - Transit Enterprise Fund (1,182,000) (1,390,415) (1,390,415) - Fleet Maintenance Enterprise Fund (400,000) (360,000) (360,000) - Debt Issuance Procceds - 80,000 80,204 204 Total Other Financing Sources (Uses)(1,475,673) (2,564,088) (2,563,884) 204 Net Change in Fund Balances 160,274 (159,323) (249,300) (89,977) Fund Balances, Beginning of Year 4,576,694 6,063,891 6,063,891 - Fund Balances, End of year 4,736,968$ 5,904,568$ 5,814,591$ (89,977)$ Budgeted Amounts 55 TOWN OF AVON, COLORADO REQUIRED SUPPLEMENTAL 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, 2017 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes 1,000,832$ 1,124,116$ 1,136,777$ 12,661$ Investment Earnings 4,712 6,282 7,114 832 Total Revenues 1,005,544 1,130,398 1,143,891 13,493 Expenditures Current: General Government 3,450 3,450 - 3,450 Capital Improvements - 50,000 32,651 17,349 Debt Service: Principal 545,000 564,637 564,637 - Interest 282,569 282,253 282,253 - Bond Issuance Costs 90,000 81,625 81,625 - Fiscal Charges 39,500 34,500 34,662 (162) Total Expenditures 960,519 1,016,465 995,828 20,637 Excess (Deficiency) of Revenues Over (Under) Expenditures 45,025 113,933 148,063 34,130 Other Financing Sources (Uses) Transfers Out: Capital Project Fund (2,900,000) (2,978,375) (2,978,375) Debt Issuance Proceeds 3,000,000 3,000,000 3,000,000 - Total Other Financing Sources (Uses)100,000 21,625 21,625 - Net Change in Fund Balances 145,025 135,558 169,688 34,130 Fund Balances, Beginning of Year 1,162,585 1,187,763 1,187,763 - Fund Balances, End of year 1,307,610$ 1,323,321$ 1,357,451$ 34,130$ Budgeted Amounts 56 57 TOWN OF AVON, COLORADO NOTES TO REQUIRED SUPPLEMENTAL INFORMATION DECEMBER 31, 2017 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). 58 THIS PAGE INTENTIONALLY LEFT BLANK SUPPLEMENTAL SECTION 59 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. 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 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. Affordable Housing Fund – This fund is used to accumulate and account for resources received and restricted for use in the Town’s affordable housing program. 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. TOWN OF AVON, COLORADO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2017 Total Community Affordable Exterior Energy Nonmajor Water Enhancement Housing Offset Governmental Fund Fund Fund Fund Funds ASSETS Cash and Cash Equivalents 138,541$ (78,545)$ 592,978$ 32,768$ 685,742$ Receivables: - Accounts - 78,545 144 - 78,689 - Intergovernmental 58,800 - - - 58,800 Notes Receivable - - 20,560 - 20,560 Total Assets 197,341$ -$ 613,682$ 32,768$ 843,791$ LIABILITIES Accounts Payable 4,547$ -$ 513$ -$ 5,060$ Accrued Liabilities 621 - - - 621 Deposits and Reserves - - 3,623 - 3,623 Unearned Revenue - - 3,500 - 3,500 Total Liabilities 5,168 - 7,636 - 12,804 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Notes Receivable - - 20,560 - 20,560 Total Deferred Inflows of Resources - - 20,560 - 20,560 FUND BALANCES Restricted For: Water Projects 192,173 - - - 192,173 Affordable Housing Programs - - 585,486 - 585,486 Exterior Energy Offset Programs - - - 32,768 32,768 Total Fund Balances 192,173 - 585,486 32,768 810,427 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 197,341$ -$ 613,682$ 32,768$ 843,791$ Special Revenue Funds 60 TOWN OF AVON, COLORADO COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2017 Total Community Affordable Exterior Energy Nonmajor Water Enhancement Housing Offset Governmental Fund Fund Fund Fund Funds Revenues Licenses and Permits - - - 32,768 32,768 Charges for Services 275,490 - 13,934 - 289,424 Investment Earnings - - 720 - 720 Other Revenues - 78,545 77,770 - 156,315 Total Revenues 275,490 78,545 92,424 32,768 479,227 Expenditures Current: General Government - - 23,121 - 23,121 Public Works and Utilities 138,212 - - - 138,212 Total Expenditures 138,212 - 23,121 - 161,333 Excess (Deficiency) of Revenues Over (Under) Expenditures 137,278 78,545 69,303 32,768 317,894 Other Financing Sources (Uses): Transfers Out: Capital Projects Fund (25,000) (140,750) - - (165,750) Net Change in Fund Balances 112,278 (62,205) 69,303 32,768 152,144 Fund Balances, Beginning of Year 79,895 62,205 516,183 - 658,283 Fund Balances, End of year 192,173$ -$ 585,486$ 32,768$ 810,427$ Special Revenue Funds 61 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, 2017 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Charges for Services 211,200$ 213,475$ 275,490$ 62,015$ Total Revenues 211,200 213,475 275,490 62,015 Expenditures Current: Public Works and Utilities 157,977 156,424 138,212 18,212 Total Expenditures 157,977 156,424 138,212 18,212 Excess (Deficiency) of Revenues Over (Under) Expenditures 53,223 57,051 137,278 80,227 Other Financing Sources (Uses) Transfers Out: Capital Projects Fund - (25,000) (25,000) - Net Change in Fund Balances 53,223 32,051 112,278 80,227 Fund Balances, Beginning of Year 38,173 79,895 79,895 - Fund Balances, End of year 91,396$ 111,946$ 192,173$ 80,227$ Budgeted Amounts 62 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, 2017 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Other Revenues 84,000$ 80,000$ 78,545$ (1,455)$ Total Revenues 84,000 80,000 78,545 (1,455) Expenditures Current: Public Works and Utilities - - - - Total Expenditures - - - - Excess (Deficiency) of Revenues Over (Under) Expenditures 84,000 80,000 78,545 (1,455) Other Financing Sources (Uses): Transfers Out: Capital Projects Fund (158,000) (142,000) (140,750) 1,250 Net Change in Fund Balances (74,000) (62,000) (62,205) (205) Fund Balances, Beginning of Year 74,469 62,205 62,205 - Fund Balances, End of year 469$ 205$ -$ (205)$ Budgeted Amounts 63 TOWN OF AVON, COLORADO AFFORDABLE HOUSING FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2017 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Earnings 721$ 721$ 720$ (1)$ Charges for Services - - 13,934 13,934 Other Revenues 3,020 72,425 77,770 5,345 Total Revenues 3,741 73,146 92,424 19,278 Expenditures Current: General Government 25,000 26,000 23,121 2,879 Total Expenditures 25,000 26,000 23,121 2,879 Net Change in Fund Balances (21,259) 47,146 69,303 22,157 Fund Balances, Beginning of Year 506,220 516,183 516,183 - Fund Balances, End of year 484,961$ 563,329$ 585,486$ 22,157$ Budgeted Amounts 64 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, 2017 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Licenses and Permits -$ 32,768$ 32,768$ -$ Total Revenues - 32,768 32,768 - Expenditures Current: Community Development - - - - Total Expenditures - - - - Net Change in Fund Balances - 32,768 32,768 - Fund Balances, Beginning of Year - - - - Fund Balances, End of year -$ 32,768$ 32,768$ -$ Budgeted Amounts 65 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, 2017 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes: Property Taxes -$ -$ -$ -$ Investment Earnings 2,100 4,500 5,023 523 Total Revenues 2,100 4,500 5,023 523 Expenditures Debt Service: Principal 560,000 560,000 560,000 - Interest 457,469 457,469 457,469 - Fiscal Charges 10,000 5,000 6,500 (1,500) Total Expenditures 1,027,469 1,022,469 1,023,969 (1,500) Excess (Deficiency) of Revenues Over (Under) Expenditures (1,025,369) (1,017,969) (1,018,946) (977) Other Financing Sources (Uses) Transfers In: Capital Projects Fund 1,025,369 1,017,969 1,017,969 - Net Change in Fund Balances - - (977) (977) Fund Balances, Beginning of Year 530,467 536,567 536,567 - Fund Balances, End of year 530,467$ 536,567$ 535,590$ (977)$ Budgeted Amounts 66 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, 2017 Variance withFinal Budget - Actual PositiveOriginalFinalAmounts(Negative)RevenuesTaxes: Real Estate Transfer Tax 2,200,000$ 4,200,000$ 4,449,530$ 249,530$ Intergovernmental 390,000 420,000 70,000 (350,000) Investment Earnings 10,460 75,000 39,811 (35,189) Other Revenues 80,000 80,000 99,002 19,002 Total Revenues 2,680,460 4,775,000 4,658,343 (116,657) ExpendituresCapital Projects: Facilities 2,961,841 7,153,034 4,370,924 2,782,110 Land and Land Improvements 1,220,150 1,260,703 700,987 559,716 Roads and Streets 3,110,000 5,120,671 1,458,111 3,662,560 Water Fund Projects 25,000 25,000 24,618 382 Strategic Planning - 75,000 95,856 (20,856) Other - 38,000 38,000 - Debt Service: Capital Leases 121,770 121,770 121,769 1 Total Expenditures 7,438,761 13,794,178 6,810,265 6,983,913 Excess (Deficiency) of Revenues Over (Under) Expenditures (4,758,301) (9,019,178) (2,151,922) 6,867,256 Other Financing Sources (Uses)Transfers In: General Fund 120,000 1,120,000 1,120,000 - Avon Urban Renewal Fund 2,900,000 2,978,375 2,978,375 - Water Fund - 25,000 25,000 - Community Enhancement Fund 158,000 142,000 140,750 (1,250) Transfers Out: General Fund (226,327) (226,327) (226,327) - Debt Service Fund (1,025,369) (1,017,969) (1,017,969) - Total Other Financing Sources (Uses)1,926,304 3,021,079 3,019,829 (1,250) Net Change in Fund Balances (2,831,997) (5,998,099) 867,907 6,866,006 Fund Balances, Beginning of Year 4,840,168 10,416,611 10,414,708 (1,903) Fund Balances, End of Year 2,008,171$ 4,418,512$ 11,282,615$ 6,864,103$ Budgeted Amounts 67 68 THIS PAGE INTENTIONALLY LEFT BLANK 69 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. Transit 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. TOWN OF AVON, COLORADO TRANSIT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2017 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Taxes 40,397$ 40,297$ 40,297$ -$ Intergovernmental 328,000 328,000 328,000 - Charges for Services 239,930 219,351 267,215 47,864 Other Revenue 93,940 93,940 86,131 (7,809) Total Revenues 702,267 681,588 721,643 40,055 Expenditures: Administration 247,060 258,360 247,658 10,702 Operations 1,571,189 1,727,168 1,754,258 (27,090) Wash Bay 130,110 146,534 135,278 11,256 Total Expenditures 1,948,359 2,132,062 2,137,194 (5,132) Excess (Deficiency) of Revenues Over (Under) Expenditures (1,246,092) (1,450,474) (1,415,551) 34,923 Other Financing Sources (Uses): Transfers In: General Fund 1,182,000 1,390,415 1,390,415 - Net Change in Fund Balances (64,092) (60,059) (25,136) 34,923 Fund Balances, Beginning of Year 630,441 685,600 685,600 - Fund Balances, End of Year 566,349$ 625,541$ 660,464$ 34,923$ Fund Balances at December 31, 2017, is computed as follows: Current Assets 750,481$ Less: Current Liabilities and Deferred Inflows of Resources (148,838) Add: Current Portion of Capital Leases Payable 58,821 Fund Balances - December 31, 2017 660,464$ Budgeted Amounts 70 RECONCILIATION OF NET CHANGE IN FUND BALANCES (BUDGETARY BASIS) TO CHANGE IN NET POSITION (GAAP BASIS) Net Change in Fund Balances (Budgetary Basis)(25,136)$ Adjustments to Reconcile Budgetary Basis to GAAP Basis Capitalization of Capital Assets 415,415 Principal Paid on Capital Leases 57,005 Transfers In of Non-financial Resources 103,403 Depreciation (588,784) Total Adjustments (12,961) Change in Net Position (GAAP Basis)(38,097)$ 71 TOWN OF AVON, COLORADO FLEET MAINTENANCE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2017 Variance with Final Budget - Actual Positive Original Final Amounts (Negative)Revenues: Charges for Services: Third-party Fleet Maintenance Charges 758,240$ 758,240$ 516,781$ (241,459)$ Departmental Fleet Maintenance Services 511,186 511,186 584,919 73,733 Fuel Mark-up 10,000 10,000 26,115 16,115 Other Revenues - - 1,609 1,609 Total Revenues 1,279,426 1,279,426 1,129,424 (150,002) Expenditures: Fleet Maintenance 1,652,546 1,622,757 1,662,609 (39,852) Total Expenditures 1,652,546 1,622,757 1,662,609 (39,852) Excess (Deficiency) of Revenues Over (Under) Expenditures (373,120) (343,331) (533,185) (189,854) Other Financing Sources (Uses): Transfers In: General Fund 400,000 360,000 360,000 - Net Change in Fund Balances 26,880 16,669 (173,185) (189,854) Fund Balances, Beginning of Year 139,750 223,149 223,149 - Fund Balances, End of Year 166,630$ 239,818$ 49,964$ (189,854)$ Fund Balances at December 31, 2017, is computed as follows: Current Assets 665,694$ Less: Current Liabilities (768,269) Add: Current Portion of Certificates of Participation 147,496 Add: Current Portion of Capital Leases Payable 5,043 Fund Balances - December 31, 2017 49,964$ Budgeted Amounts 72 RECONCILIATION OF NET CHANGE IN FUND BALANCES (BUDGETARY BASIS)TO CHANGE IN NET POSITION (GAAP BASIS) Net Change in Fund Balances (Budgetary Basis)(173,185)$ Adjustments to Reconcile Budgetary Basis to GAAP Basis Principal Paid on Certificates of Participation 140,000 Principal Paid on Capital Lease Obligations 4,955 Amortization of Premium and Gain on Advance Refunding of Debt 2,909 Depreciation (141,029) Total Adjustments 6,835 Change in Net Position (GAAP Basis)(166,350)$ 73 74 THIS PAGE INTENTIONALLY LEFT BLANK 75 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. 78 MISCELLANEOUS SCHEDULES TOWN OF AVON, COLORADO DEBT SCHEDULE DECEMBER 31, 2017 Date Interest Maturity Amount Amount Purpose Issued Rate Date Issued Outstanding Principal Interest Revenue Bonds: Series 2013, Avon URA Tax Increment Revenue Bonds 11/27/13 3.52%12/1/28 6,825,000$ 5,395,000$ 410,000$ 189,904$ Series 2017, Avon URA Tax Increment Revenue Bonds 1/5/17 2.90%12/1/31 3,000,000 2,830,362 166,079 82,004 Total Revenue Bonds 9,825,000 8,225,362 576,079 271,908 Certificates of Participation: Series 2010, Certificates of Participation 11/16/10 2.00%-5.00%12/1/30 6,680,000 4,885,000 290,000 216,688 Series 2014B, Certificates of Participation 1/14/15 3.03%12/1/29 3,800,000 3,160,000 220,000 95,748 Series 2016, Certificates of Participation 8/2/16 2.00%-4.00%12/1/35 6,300,000 6,095,000 265,000 178,775 Total Certificates of Participation 16,780,000 14,140,000 775,000 491,211 Capital Lease Obligations Master Lease-Purchase, US Bancorp 8/26/11 3.162%8/26/18 563,811 88,320 88,320 2,100 Master Lease-Purchase, US Bancorp 3/15/12 2.19%3/15/19 217,004 49,326 32,704 902 Master Lease-Purchase, Commerce Bank 8/27/13 1.77%8/27/18 175,326 36,312 36,312 483 Master Lease-Purchase, US Bancorp 7/25/14 2.10%7/15/21 170,246 100,319 24,300 1,979 Master Lease-Purchase, Clayton Holdings 10/5/17 2.35%11/27/24 355,818 355,818 47,358 8,362 Total Capital Lease Obligations 1,482,205 630,095 228,994 13,826 Total Long-term Debt 28,087,205$ 22,995,457$ 1,580,073$ 776,945$ Payments Due Schedule of Indebtedness In 2018 79 TOWN OF AVON, COLORADO DETAILED SCHEDULE OF GENERAL FUND EXPENDITURES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2017 Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) General Government: Mayor and Town Council 210,472$ 218,786$ 218,454$ 332$ Boards and Commissions 15,299 18,192 13,228 4,964 Town Attorney 132,000 132,000 120,393 11,607 Town Clerk 103,471 124,455 106,185 18,270 Municipal Court 129,000 137,287 120,667 16,620 Town Manager 403,797 382,240 349,501 32,739 Community Relations 171,497 187,372 197,403 (10,031) Subtotal General Government 1,165,536 1,200,332 1,125,831 74,501 Human Resources: Human Resources 431,677 445,365 443,676 1,689 Finance and Information Technology: Finance 844,922 886,438 872,178 14,260 Information Systems 406,753 400,647 394,014 6,633 Nondepartmental 481,755 494,826 520,462 (25,636) Subtotal Finance and Administration 1,733,430 1,781,911 1,786,654 (4,743) Total General Government, Finance and Administraion 3,330,643 3,427,608 3,356,161 71,447 Community Development: Planning 263,033 282,393 267,413 14,980 Building Inspection 149,265 148,302 145,487 2,815 Town Produced Events 302,421 598,952 609,604 (10,652) Signature Event Seed Funding 50,000 296,217 309,449 (13,232) Community Grants 170,560 207,620 173,120 34,500 Total Community Development 935,279 1,533,484 1,505,073 28,411 Budgeted Amounts 80 Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) Public Safety: Police Administration 683,437 685,087 686,727 (1,640) Patrol 2,415,803 2,352,401 2,449,547 (97,146) Investigations 271,440 267,052 280,717 (13,665) Total Public Safety 3,370,680 3,304,540 3,416,991 (112,451) Public Works: Engineering 240,776$ 245,969$ 239,144$ 6,825$ Buildings and Facilities 1,152,037 1,218,952 1,121,669 97,283 Roads and Bridges 2,354,312 2,259,519 2,204,890 54,629 Parks and Grounds 695,781 665,356 614,307 51,049 Total Public Works 4,442,906 4,389,796 4,180,010 209,786 Recreation: Administration 227,282 227,743 226,021 1,722 Adult Programs 56,087 55,962 52,019 3,943 Aquatics 558,841 533,684 573,607 (39,923) Fitness 150,785 150,645 148,095 2,550 Guest Services 295,366 308,017 307,098 919 Youth Programs 145,761 135,880 129,643 6,237 Total Recreation 1,434,122 1,411,931 1,436,483 (24,552) Contingency 250,000 - - - TOTAL EXPENDITURES 13,763,630$ 14,067,359$ 13,894,718$ 172,641$ Budgeted Amounts 81 TOWN OF AVON, COLORADO DETAILED SCHEDULE OF GENERAL FUND REVENUES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2017 Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) Taxes: General Property Tax 1,735,425$ 1,735,425$ 1,736,538$ 1,113$ General Property Tax - Delinquent Collections 500 500 22 (478) General Property Tax - Interest and Penalties 1,000 1,673 2,840 1,167 Specific Ownership Tax 120,000 120,000 99,498 (20,502) Sales Tax 7,809,521 8,218,606 8,051,066 (167,540) Utility Tax 110,000 110,000 102,279 (7,721) Accommodations Tax 1,323,978 1,319,538 1,333,939 14,401 Penalties and Interest 25,000 25,000 32,450 7,450 Sales Tax Audit Assessments 5,000 20,000 20,203 203 VAA Retail Sales Fee 700,000 781,822 763,915 (17,907) Franchise Fees 415,000 438,120 419,479 (18,641) Total Taxes 12,245,424 12,770,684 12,562,229 (208,455) Licenses and Permits: Liquor Licenses 7,000 7,000 8,086 1,086 Business Licenses 65,000 84,678 85,425 747 Contractor's Licenses 10,500 10,500 10,765 265 Building Permits 115,000 185,000 200,756 15,756 Road Cut Permits 8,000 11,100 11,361 261 Mobile Vendor Cart Permits 600 600 150 (450) School Site In-lieu-of Payment - 25,000 25,000 - Total Licenses and Permits 206,100 323,878 341,543 17,665 Intergovernmental: Federal: Click It or Ticket 5,500 5,500 4,180 (1,320) Bullet Proof Vest Grant 2,000 2,000 1,237 (763) State: LEAF Grant 23,000 23,000 10,972 (12,028) High Visibility Grants 27,000 27,000 24,524 (2,476) Other State Grants - 34,203 38,608 4,405 Local Government/Other Agency Eagle River Youth Coalition 8,500 8,500 6,477 (2,023) State/County Shared Revenue: Conservation Trust 62,000 72,000 64,771 (7,229) Motor Vehicle Registration 22,000 22,000 24,613 2,613 Highway User's Tax 201,963 201,963 193,875 (8,088) Cigarette Tax 42,000 42,000 37,696 (4,304) County Sales Tax 483,743 483,743 424,225 (59,518) Road & Bridge Fund 132,220 132,220 127,800 (4,420) State Severance Tax 1,000 1,000 804 (196) Total Intergovernmental 1,010,926 1,055,129 959,782 (95,347) Budgeted Amounts 82 Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) Charges for Services: General Government: Photocopying Charges 300$ 300$ -$ (300)$ License Hearing Fees 100 100 - (100) Other Fees and Charges 1,250 1,250 2,576 1,326 Credit Care and Paper Filing Fees - - 2,691 2,691 Plan Check Fees 95,000 95,000 111,012 16,012 Subdivision Review Fees 1,000 1,000 - (1,000) Design Review Fees 14,295 14,295 14,485 190 Animal Control Fees 500 500 120 (380) Abatement Services - - 300 300 Impact Fee Administrative Fees 750 750 1,795 1,045 Police Reports 600 600 620 20 Off-duty Police Employment 25,000 25,000 23,922 (1,078) Fingerprinting Fees 4,500 4,500 5,844 1,344 VIN Inspection Fees 18,000 18,000 13,540 (4,460) False Alarm Fees 500 500 70 (430) National Night Out 2,000 2,000 3,476 1,476 Kids, Cops, Hoops - - 400 400 DUI Reimbursement 24,250 24,250 16,283 (7,967) Subtotal: General Government 188,045 188,045 197,134 9,089 Recreation Center: Admission Fees 888,200 925,000 963,861 38,861 Program Fees 70,610 88,810 87,796 (1,014) Rentals 45,000 45,000 49,543 4,543 Merchandise Sales 8,500 8,500 7,660 (840) Other Recreation Center Services 9,200 9,200 9,531 331 Fitness Program Revenues 52,000 52,000 52,534 534 Other Recreation: Adult Program Revenues 25,350 25,350 19,350 (6,000) Cabin Equipment Rentals 13,500 22,000 24,254 2,254 Athletic Field Rentals - 2,000 2,270 270 Youth Program Revenues 145,565 145,565 170,710 25,145 Ticket Sales - 84,500 80,807 (3,693) Revenues from Vendor Sales - 7,040 6,868 (172) Sponsorships 38,000 25,600 22,175 (3,425) Event Fees 10,525 20,100 10,600 (9,500) Special Event Admission Fees 10,287 16,479 11,295 (5,184) Subtotal: Recreation 1,316,737 1,477,144 1,519,254 42,110 Total Charges for Services 1,504,782 1,665,189 1,716,388 51,199 Budgeted Amounts 83 TOWN OF AVON, COLORADO DETAILED SCHEDULE OF GENERAL FUND REVENUES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2017 (CONTINUED) Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) Fines and Forfeitures: Court Fines - Traffic 51,300$ 51,300$ 63,765$ 12,465$ Court Fines - Criminal 21,000 21,000 16,081 (4,919) Court Fines - Parking 6,735 6,735 3,775 (2,960) Court Costs 7,000 7,000 5,210 (1,790) Jury Fees 100 100 - (100) Bond Forfeitures 100 100 - (100) Police Training Surcharge 6,210 6,210 5,480 (730) Total Fines and Forfeitures 92,445 92,445 94,311 1,866 Investment Earnings 25,000 135,000 126,329 (8,671) Miscellaneous Revenues: Recreational Amenity Fees 235,000 325,000 275,511 (49,489) Bond Issuance Fee 9,800 10,532 10,476 (56) Lease of Town-owned Property 40,000 40,000 37,258 (2,742) Miscellaneous Nonclassified Revenues 30,100 54,267 85,475 31,208 Total Miscellaneous Revenues 314,900 429,799 408,720 (21,079) TOTAL REVENUES 15,399,577$ 16,472,124$ 16,209,302$ (262,822)$ Budgeted Amounts 84 85 THIS PAGE INTENTIONALLY LEFT BLANK TOWN OF AVON, COLORADO SCHEDULE OF CAPITAL PROJECT FUND PROJECT EXPENDITURES (BUDGETARY BASIS) - BUDGET AND ACTUAL FROM INCEPTION AND FOR THE YEAR ENDED DECEMBER 31, 2017 Variance with Total Budget - Prior Current Project Positive Project Description Years Year Total Budget (Negative) CAPITAL IMPROVEMENT PROJECTS Facilities: General Government Facilities: New Town Hall: Tenant Finish Design 37,838$ 163,574$ 201,412$ 219,725$ 18,313$ Tenant Finish Construction 62,447 (1,771) 60,676 2,699,500 2,638,824 Sustainability/Leed Designation - - - 60,000 60,000 Fiber - PSF to NTH - 112,709 112,709 135,275 22,566 Joint Public Safety Facility Project: Design 332,736 119,303 452,039 450,000 (2,039) Construction 2,586,599 3,803,705 6,390,304 6,320,855 (69,449) Fiber - ARTF to PSF - 91,065 91,065 141,305 50,240 Transportation Facilities: Transit Bus Stop - Traer Creek Plaza 57,433 3,082 60,515 60,000 (515) Transit Bus Stop - Eaglebend / US Hwy 6 40,249 2,638 42,887 48,000 5,113 ARTF Doors - 13,137 13,137 55,000 41,863 Cultural and Recreational Facilities: Nottingham Park Pavilion Retractable Doors 4,496 2,807 7,303 204,496 197,193 Other Facilities Avon Elementary Parking Lot Repair - 60,675 60,675 60,676 1 Land and Land Improvements: Nottingham Park Zone C Imp. - Playground 73,966 255,420 329,386 872,266 542,880 Nottingham Park Restroom Remodel - 327,942 327,942 348,430 20,488 Eagle River Whitewater Park Repair - 6,720 6,720 90,000 83,280 Nottingham Park Light Upgrade - 110,905 110,905 125,000 14,095 Roads and Streets: Streetscape Improvements: Avon Rd. / I70 Overpass Pedestrian Safety Imp.12,209 30,799 43,008 88,000 44,992 Wayfinding Signage 24,145 10,497 34,642 59,145 24,503 Avon Rd./I70 Overpass Aesthetics Imp.- - - 270,000 270,000 Actual Amounts 86 Variance with Total Budget - Prior Current Project Positive Project Description Years Year Total Budget (Negative) CAPITAL IMPROVEMENT PROJECTS Roads and Streets (Continued) Street Maintenance and Repair: Microsurface Slurry Seal:-$ 246,023$ 246,023$ 250,000$ 3,977$ Post Blvd. Settlement Repair 9,550 500 10,050 75,000 64,950 Wildwood Road Repair 7,834 1,016 8,850 75,000 66,150 Eaglebend Dr. and Nottingham Rd. Repaving 7,500 664,043 671,543 1,097,500 425,957 Street Improvements: Walkability - East and West B/C Blvd.86,992$ 111,951$ 198,943$ 3,110,739$ 2,911,796$ 2017 Safety Improvements - 2,000 2,000 30,000 28,000 West B/C Blvd. RR Crossing Improvements 5,970 3,861 9,831 110,000 100,169 East Benchmark Rd./Beaver Creek Place - 384,821 384,821 425,587 40,766 Recreational Trails Program: Soft and Hard Surface Trail Improvements 49,115 2,600 51,715 150,000 98,285 2017 Trail Improvements - - - 100,000 100,000 Water Fund Projects: Nottingham Rd. Debris Flow Study - 24,618 24,618 425,000 400,382 Strategic Planning Tract G Core / Parking Plan - 95,856 95,856 75,000 (20,856) Other RETT Rebate - 38,000 38,000 38,000 - Total Capital Improvement Projects 3,399,079$ 6,688,496$ 10,087,575$ 18,269,499$ 8,181,924$ Actual Amounts 87 Financial Planning 02/01 The public report burden for this information collection is estimated to average 380 hours annually. Form # 350-050-36City or County:Town of Avon YEAR ENDING : December 2017This Information From The Records Of (example - City of _ or County of _):Prepared By: Valerie BarryPhone:970-748-4044 A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway-Federal HighwayTaxesTaxesUser Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses3. Minus amount used for nonhighway purposes4. Minus amount used for mass transit5. Remainder used for highway purposes AMOUNT AMOUNTA. Receipts from local sources:A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2)1,601,959 a. Motor Fuel (from Item I.A.5.) 2. Maintenance: b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 367,432 2. General fund appropriations 1,844,654 b. Snow and ice removal 680,447 3. Other local imposts (from page 2)99,498 c. Other 4. Miscellaneous local receipts (from page 2)1,294,887 d. Total (a. through c.)1,047,879 5. Transfers from toll facilities 4. General administration & miscellaneous 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety a. Bonds - Original Issues 6. Total (1 through 5)2,649,838 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.)0 a. Interest 269,791 7. Total (1 through 6)3,239,039 b. Redemption 537,899B. Private Contributions c. Total (a. + b.)807,690C. Receipts from State government 2. Notes: (from page 2)218,489 a. InterestD. Receipts from Federal Government b. Redemption (from page 2)0 c. Total (a. + b.)0E. Total receipts (A.7 + B + C + D)3,457,527 3. Total (1.c + 2.c)807,690 C. Payments to State for highways D. Payments to toll facilitiesE. Total disbursements (A.6 + B.3 + C + D)3,457,527 Opening Debt Amount Issued Redemptions Closing DebtA. Bonds (Total)8,335,190 537,899 7,797,291 1. Bonds (Refunding Portion)B. Notes (Total)0 A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation03,457,527 3,457,527 0Notes and Comments: FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM III. DISBURSEMENTS FOR ROAD V. LOCAL ROAD AND STREET FUND BALANCE ITEM II. RECEIPTS FOR ROAD AND STREET PURPOSES IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) ITEM AND STREET PURPOSES 88 STATE:ColoradoYEAR ENDING (mm/yy):December 2017 AMOUNT AMOUNTA.3. Other local imposts:A.4. Miscellaneous local receipts: a. Property Taxes and Assessments a. Interest on investments b. Other local imposts: b. Traffic Fines & Penalities 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 99,498 g. Other Misc. Receipts 6. Total (1. through 5.)99,498 h. Other Real Estate Xfer Tax 1,294,887 c. Total (a. + b.)99,498 i. Total (a. through h.)1,294,887 (Carry forward to page 1) (Carry forward to page 1) AMOUNT AMOUNTC. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 193,875 1. FHWA (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 24,613 d. Federal Transit Admin d. Other (Specify) - DOLA Grant e. U.S. Corps of Engineers e. Other (Specify) f. Other Federal f. Total (a. through e.)24,613 g. Total (a. through f.)0 4. Total (1. + 2. + 3.f)218,489 3. Total (1. + 2.g) (Carry forward to page 1) ON NATIONAL OFF NATIONALHIGHWAYHIGHWAY TOTAL SYSTEM SYSTEM (a)(b)(c)A.1. Capital outlay: a. Right-Of-Way Costs 0 b. Engineering Costs 0 c. Construction: (1). New Facilities 0 (2). Capacity Improvements 0 (3). System Preservation 0 (4). System Enhancement & Operation 0 (5). Total Construction (1) + (2) + (3) + (4)0 0 0 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5)0 0 0 (Carry forward to page 1) Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL LOCAL HIGHWAY FINANCE REPORT ITEM ITEM ITEM ITEM 89 90 THIS PAGE INTENTIONALLY LEFT BLANK STATISTICAL SECTION 91 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 92-100) – 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 101-105) – 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 106-109) – 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 110-112) – 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 113-115) – 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. TOWN OF AVON, COLORADO NET POSITION BY COMPONENT LAST TEN FISCAL YEARS 2008 2009 2010 2011 Governmental Activities Net Investment in Capital Assets 16,344,236$ 34,458,411$ 35,651,654$ 34,738,700$ Restricted For: Emergencies 566,949 470,037 503,650 447,963 Debt Service 4,962,675 1,258,256 1,055,410 1,047,077 Capital Improvements 14,762,243 - 3,000,722 2,972,175 Urban Renewal - - - 242,620 Purposes of Grantors - - - 2,725,334 Unrestricted 17,245,855 16,488,477 15,935,700 14,345,936 Total Governmental Activities Net Position 53,881,958$ 52,675,181$ 56,147,136$ 56,519,805$ Business-type Activities Net Investment in Capital Assets 2,855,688$ 2,729,412$ 2,154,069$ 1,815,425$ Unrestricted 1,057,813 1,147,965 1,219,055 1,256,004 Total Business-type Activities Net Position 3,913,501$ 3,877,377$ 3,373,124$ 3,071,429$ Primary Government Net Investment in Capital Assets 19,199,924$ 37,187,823$ 37,805,723$ 36,554,125$ Restricted 20,291,867 1,728,293 4,559,782 7,435,169 Unrestricted 18,303,668 17,636,442 17,154,755 15,601,940 Total Primary Government Net Position 57,795,459$ 56,552,558$ 59,520,260$ 59,591,234$ Source: Town of Avon Finance Department Fiscal Year 92 2012 2013 2014 2015 2016 2017 36,904,217$ 34,774,531$ 64,112,399$ 60,000,945$ 58,088,785$ 56,693,531$ 428,947 476,619 598,376 552,335 664,805 688,786 1,015,589 1,139,575 1,136,228 1,157,629 1,169,163 1,175,301 2,530,266 4,635,904 3,386,451 6,198,817 5,921,087 3,373,917 216,002 367,082 305,379 404,048 555,167 717,740 2,238,966 2,007,140 929,226 1,106,628 142,100 192,173 13,544,676 10,217,136 10,466,381 11,283,921 16,341,288 20,329,098 56,878,663$ 53,617,987$ 80,934,440$ 80,704,323$ 82,882,395$ 83,170,546$ 1,761,245$ 12,583,125$ 12,097,298$ 11,633,282$ 11,430,538$ 11,424,412$ 943,960 783,529 843,503 859,368 908,749 710,428 2,705,205$ 13,366,654$ 12,940,801$ 12,492,650$ 12,339,287$ 12,134,840$ 38,665,462$ 47,357,656$ 76,209,697$ 71,634,227$ 69,519,323$ 68,117,943$ 6,429,770 8,626,320 6,355,660 9,419,457 8,452,322 6,147,917 14,488,636 11,000,665 11,309,884 12,143,289 17,250,037 21,039,526 59,583,868$ 66,984,641$ 93,875,241$ 93,196,973$ 95,221,682$ 95,305,386$ Fiscal Year 93 TOWN OF AVON, COLORADO CHANGES IN NET POSITION LAST TEN FISCAL YEARS 2008 2009 2010 2011 Expenses Governmental Activities: General Government 3,082,524$ 2,431,143$ 2,832,514$ 3,539,636$ Community Development 2,212,996 1,286,956 644,968 519,631 Public Safety 4,458,553 2,608,604 2,409,115 2,569,100 Public Works and Utilities 5,024,946 6,302,284 5,948,003 5,821,879 Recreation and Culture 2,572,347 2,752,142 2,437,556 2,276,473 Interest and Fiscal Charges on Long-term Debt 1,225,348 1,195,981 637,344 575,100 Total Governmental Activity Expenses 18,576,714 16,577,110 14,909,500 15,301,819 Business-type Activities: Transportation 2,224,427 1,485,763 1,175,818 1,123,640 Fleet Maintenance 2,424,791 2,325,339 2,076,364 1,618,698 Total Business-type Activity Expenses 4,649,218 3,811,102 3,252,182 2,742,338 Total Primary Government Expenses 23,225,932$ 20,388,212$ 18,161,682$ 18,044,157$ Program Revenues Governmental Activities: Charges for Services: General Government 194,938$ 164,061$ 59,768$ 259,609$ Community Development 325,992 143,826 216,263 230,570 Public Safety 223,056 221,262 376,440 248,442 Public Works and Utilities 1,096,172 504,403 407,391 524,047 Recreation and Culture 1,408,587 1,272,902 1,207,964 1,208,130 Operating Grants and Contributions 21,573 59,857 51,048 59,329 Capital Grants and Contributions 3,458,199 269,853 1,855,346 247,368 Total Governmental Activity Program Revenues 6,728,517 2,636,164 4,174,220 2,777,495 Business-type Activities: Charges for Services 3,084,123 2,437,178 2,081,674 1,520,018 Capital Grants and Contributions 310,624 - - - Total Business-type Activity Program Revenues 3,394,747 2,437,178 2,081,674 1,520,018 Total Primary Government Program Revenues 10,123,264$ 5,073,342$ 6,255,894$ 4,297,513$ Net (Expense) Revenue Governmental Activities (11,848,197)$ (13,940,946)$ (10,735,280)$ (12,524,324)$ Business-type Activities (1,254,471) (1,373,924) (1,170,508) (1,222,320) Total Primary Government Net Expense (13,102,668)$ (15,314,870)$ (11,905,788)$ (13,746,644)$ Fiscal Year 94 2012 2013 2014 2015 2016 2017 3,400,499$ 2,836,303$ 3,186,870$ 3,042,126$ 3,291,190$ 3,500,101$ 421,554 365,960 463,821 1,341,706 1,202,097 1,617,329 2,554,404 2,551,559 2,792,174 3,039,333 3,214,680 3,703,871 5,479,239 4,814,364 7,179,132 8,458,218 9,656,808 9,026,700 2,737,458 3,851,812 2,061,033 1,430,648 1,584,531 1,684,492 516,160 600,367 504,343 639,267 754,238 796,462 15,109,314 15,020,365 16,187,373 17,951,298 19,703,544 20,328,955 1,083,097 1,193,289 1,686,778 1,979,505 1,963,223 2,253,558 1,382,954 1,608,295 1,609,134 1,506,138 1,623,046 1,655,774 2,466,051 2,801,584 3,295,912 3,485,643 3,586,269 3,909,332 17,575,365$ 17,821,949$ 19,483,285$ 21,436,941$ 23,289,813$ 24,238,287$ 183,969$ 135,448$ 163,429$ 219,364$ 239,199$ 294,431$ 225,778 485,406 279,179 380,130 369,867 396,731 52,649 54,205 66,662 69,629 99,862 64,275 278,662 256,749 564,090 764,549 698,195 287,151 1,116,947 1,064,314 1,092,276 1,238,395 1,334,056 1,519,254 39,607 39,217 52,151 11,713 104,217 84,761 1,715,337 7,823,132 1,027,911 61,779 1,816,456 31,237 3,612,949 9,858,471 3,245,698 2,745,559 4,661,852 2,677,840 1,135,929 1,450,388 1,645,083 1,670,213 420,357 681,346 305,351 90,494 - - 1,237,082 1,129,424 1,441,280 1,540,882 1,645,083 1,670,213 1,657,439 1,810,770 5,054,229$ 11,399,353$ 4,890,781$ 4,415,772$ 6,319,291$ 4,488,610$ (11,496,365)$ (5,161,894)$ (12,941,675)$ (15,205,739)$ (15,041,692)$ (17,651,115)$ (1,024,771) (1,260,702) (1,650,829) (1,815,430) (1,928,830) (2,098,562) (12,521,136)$ (6,422,596)$ (14,592,504)$ (17,021,169)$ (16,970,522)$ (19,749,677)$ Fiscal Year 95 TOWN OF AVON, COLORADO CHANGES IN NET POSITION (CONTINUED) LAST TEN FISCAL YEARS 2008 2009 2010 2011 General Revenues and Other Changes in Net Position Governmental Activities: Taxes: Property Taxes 3,340,475$ 3,640,183$ 4,195,297$ 3,672,307$ Real Estate Transfer Taxes 3,093,021 1,761,980 2,159,525 1,616,982 Sales and Accommodation Taxes 6,841,114 5,651,085 5,748,325 6,190,839 Other Taxes 710,624 1,334,692 1,268,120 1,323,246 Unrestricted Investment Earnings 1,496,801 246,225 163,991 87,099 Loss on Disposal of Capital Assets - - - - Grants and Contributions Not Restricted to Specific Programs 890,750 872,084 854,130 857,474 Miscellaneous 532,046 522,920 442,522 372,222 Capital Contributions - - 907,500 - Transfers (1,633,000) (1,295,000) (1,532,175) (950,000) Total Governmental Activities 15,271,831 12,734,169 14,207,235 13,170,169 Business-type Activities: Property Taxes - 42,800 41,580 40,371 Capital Contributions - - (907,500) - Loss on Disposal of Capital Assets - - - - Transfers 1,633,000 1,295,000 1,532,175 950,000 Total Business-type Activities 1,633,000 1,337,800 666,255 990,371 Total Primary Government 16,904,831$ 14,071,969$ 14,873,490$ 14,160,540$ Change in Net Position Governmental Activities 3,423,634$ (1,206,777)$ 3,471,955$ 645,845$ Business-type Activities 378,529 (36,124) (504,253) (231,949) Total Primary Government 3,802,163$ (1,242,901)$ 2,967,702$ 413,896$ Source: Town of Avon Finance Department Fiscal Year 96 2012 2013 2014 2015 2016 2017 3,027,319$ 3,039,132$ 2,873,055$ 2,904,509$ 3,315,020$ 2,876,177$ 1,707,648 1,574,502 3,764,526 2,369,314 3,497,602 4,411,530 6,340,557 7,249,935 8,089,010 8,754,673 9,540,260 9,437,658 499,114 625,756 1,197,603 1,208,352 1,389,896 1,385,171 37,827 21,296 45,844 53,161 139,665 178,997 (30,857) - - - - - 839,112 864,231 883,884 482,769 513,912 913,784 344,503 408,142 500,925 529,843 558,618 589,767 - (10,955,776) 24,063,281 - (150,215) (103,403) (910,000) (926,000) (1,160,000) (1,326,999) (1,584,994) (1,750,415) 11,855,223 1,901,218 40,258,128 14,975,622 17,219,764 17,939,266 40,032 40,375 40,079 40,280 40,258 40,297 - 10,955,776 24,897 - 150,215 103,403 (291,485) - - - - - 910,000 926,000 1,160,000 1,326,999 1,584,994 1,750,415 658,547 11,922,151 1,224,976 1,367,279 1,775,467 1,894,115 12,513,770$ 13,823,369$ 41,483,104$ 16,342,901$ 18,995,231$ 19,833,381$ 358,858$ (3,260,676)$ 27,316,453$ (230,117)$ 2,178,072$ 288,151$ (366,224) 10,661,449 (425,853) (448,151) (153,363) (204,447) (7,366)$ 7,400,773$ 26,890,600$ (678,268)$ 2,024,709$ 83,704$ Fiscal Year 97 TOWN OF AVON, COLORADO CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS 2008 2009 2010 2011RevenuesTaxes 13,985,234$ 11,710,148$ 12,728,883$ 12,083,403$ Licenses and Permits 245,793 124,130 215,635 219,265 Intergovernmental 1,178,614 1,201,794 2,760,524 1,164,171 Charges for Services 2,584,856 1,706,803 1,474,968 1,593,303 Fines and Forfeitures 131,525 129,530 147,057 197,103 Investment Earnings 1,496,801 246,225 163,991 87,099 Other Revenues 498,973 469,688 442,522 368,568 Total Revenues 20,121,796 15,588,318 17,933,580 15,712,912 Expenditures Current: General Government and Housing 3,038,856 3,138,391 2,560,405 3,411,329 Community Development 823,902 697,820 598,692 519,268 Public Safety 2,628,330 2,511,717 2,354,235 2,516,612 Public Works and Utilities 3,725,749 3,660,540 3,224,695 3,429,238 Recreation and Culture 2,579,779 2,375,945 2,144,447 2,054,477 Capital Improvements 9,979,969 2,746,286 5,554,096 1,023,914 Debt Service: Principal 1,407,500 26,416,250 1,495,000 1,195,000 Interest 1,048,416 824,535 543,331 526,288 Fiscal Charges 157,722 57,315 70,657 56,614 Bond Issuance Costs 280,734 160,000 77,695 - Total Expenditures 25,670,957 42,588,799 18,623,253 14,732,740 Excess (Defieiency) of Revenues Over (Under) Expenditures (5,549,161) (27,000,481) (689,673) 980,172 Other Financing Sources (Uses)Transfers In 1,337,667 1,810,032 1,945,004 1,090,335 Transfers Out (2,970,667) (3,105,032) (3,477,179) (2,040,335) Debt Issuance Proceeds 25,000,000 7,200,000 3,310,000 - Premium on Debt Issued - - - - Payments to Escrow Agent - - (92,067) - Sales of Capital Assets - - - - Total Other Financing Sources (Uses)23,367,000 5,905,000 1,685,758 (950,000) Net Change in Fund Balances 17,817,839$ (21,095,481)$ 996,085$ 30,172$ Debt Service as a Percentage of Noncapital Expenditures 13.41%66.88%14.76%12.39% Source: Town of Avon Finance Department Fiscal Year 98 2012 2013 2014 2015 2016 2017 11,574,638$ 12,489,325$ 15,924,194$ 15,236,848$ 17,742,776$ 18,148,536$ 207,670 336,548 210,636 335,741 259,997 374,311 2,594,056 8,324,980 1,963,946 989,546 2,868,277 1,029,782 1,473,552 1,556,262 1,757,625 1,682,724 1,772,510 2,005,812 151,533 104,736 131,513 129,356 91,014 94,311 37,827 21,296 45,827 53,158 139,665 178,997 380,647 531,738 503,354 532,353 651,603 664,037 16,419,923 23,364,885 20,537,095 18,959,726 23,525,842 22,495,786 3,088,911 2,762,979 3,084,616 2,916,095 3,119,007 3,379,282 421,133 369,158 456,063 1,348,166 1,201,086 1,505,073 2,551,488 2,539,475 2,726,711 3,007,164 3,122,942 3,416,991 3,192,763 1,911,225 3,799,489 4,080,272 5,067,825 4,318,222 2,148,410 3,328,177 1,654,078 1,147,149 1,293,277 1,436,483 4,087,083 11,837,101 7,927,709 3,284,852 8,864,565 6,721,147 1,240,000 7,300,000 1,491,042 1,264,966 1,382,506 1,239,743 470,455 423,487 453,883 503,269 473,674 746,385 43,622 39,145 51,007 41,289 54,071 81,625 - 133,330 - 80,569 147,270 41,162 17,243,865 30,644,077 21,644,598 17,673,791 24,726,223 22,886,113 (823,942) (7,279,192) (1,107,503) 1,285,935 (1,200,381) (390,327) 1,591,071 2,081,160 4,888,511 4,361,441 2,819,319 5,508,421 (2,501,071) (3,007,160) (6,048,511) (5,138,440) (4,404,313) (7,258,836) - 6,851,367 - 3,800,000 6,300,000 3,080,204 - - - - 302,205 - - - - - - - 1,151 - - - - (910,000) 5,926,518 (1,160,000) 3,023,001 5,017,211 1,329,789 (1,733,942)$ (1,352,674)$ (2,267,503)$ 4,308,936$ 3,816,830$ 939,462$ 12.60%39.77%12.95%11.37%10.95%10.85% Fiscal Year 99 TOWN OF AVON, COLORADO FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS 2008 2009 2010 2011 2012 General Fund Nonspendable -$ -$ 7,710$ -$ -$ Restricted 566,949 470,037 503,650 447,963 428,947 Assigned - - - 413,251 413,251 Unassigned 5,835,283 3,959,093 3,581,941 3,329,981 3,134,327 Total General Fund 6,402,232 4,429,130 4,093,301 4,191,195 3,976,525 All Other Governmental Funds Nonspendable - - - - - Restricted 22,779,562 3,933,265 6,930,731 6,987,206 6,045,396 Committed 5,701,165 5,539,422 3,968,735 4,100,746 3,656,294 Assigned 1,275,830 1,218,920 1,066,626 810,418 680,408 Unassigned - (57,429) - - - Total All Other Governmental Funds 29,756,557$ 10,634,178$ 11,966,092$ 11,898,370$ 10,382,098$ 2013 2014 2015 2016 2017 General Fund Nonspendable 7,442$ -$ 13,061$ 86,136$ -$ Restricted 476,619 598,376 552,335 664,805 688,786 Assigned 413,251 325,000 47,878 - - Unassigned 4,369,187 3,540,922 5,046,651 5,312,950 5,125,805 Total General Fund 5,266,499 4,464,298 5,659,925 6,063,891 5,814,591 All Other Governmental Funds Nonspendable - 270 - - - Restricted 2,803,943 2,370,833 2,668,305 7,787,517 5,459,131 Committed 3,624,653 3,386,451 6,198,817 4,493,621 7,941,466 Assigned 1,307,854 513,594 517,335 516,183 585,486 Unassigned - - - - - Total All Other Governmental Funds 7,736,450$ 6,271,148$ 9,384,457$ 12,797,321$ 13,986,083$ Source: Town of Avon Finance Department Notes: (1) Fiscal years 2006 through 2010 have been reclassified with implementation of GASB Statement No. 54 in fiscal year 2011. Fiscal Year Fiscal Year 100 TOWN OF AVON, COLORADO TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS Specific Penalties, Interest Delinquent Sales Year General Ownership & Abatements Taxes Tax 2008 3,335,594$ 160,180$ 4,766$ 115$ 6,311,439$ 2009 3,608,547 132,059 12,663 18,973 5,104,620 2010 4,187,345 117,354 6,566 1,387 5,120,543 2011 3,689,677 93,596 (42,784) 25,414 5,461,559 2012 2,953,002 92,105 1,805 (19,593) 5,607,160 2013 2,935,986 96,850 5,421 875 6,492,756 2014 2,824,449 112,848 (64,246) 6 7,777,302 2015 2,783,905 113,308 7,124 172 8,320,021 2016 3,310,530 119,483 4,491 - 8,985,661 2017 2,870,600 99,498 5,555 22 8,868,497 Utility Franchise Accommodations Real Estate Year Tax Tax Tax Transfer Tax Total 2008 153,842$ 396,602$ 529,675$ 3,093,021$ 13,985,234$ 2009 129,118 371,192 570,996 1,761,980 11,710,148 2010 146,852 361,530 627,782 2,159,525 12,728,883 2011 125,155 367,778 746,026 1,616,982 12,083,403 2012 127,060 372,054 733,397 1,707,648 11,574,638 2013 110,474 383,594 888,867 1,574,502 12,489,325 2014 109,441 404,328 995,540 3,764,526 15,924,194 2015 106,786 403,642 1,132,576 2,369,314 15,236,848 2016 102,643 432,488 1,289,879 3,497,602 17,742,776 2017 102,279 419,479 1,333,939 4,448,666 18,148,536 Source: Town of Avon Finance Department Property Tax 101 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 2007 2008 25,836,770$ 110,306,220$ 88,205,160$ 2,153,460$ 226,501,610$ 2008 2009 22,764,190 120,861,970 90,753,760 2,030,920 236,410,840 2009 2010 23,830,510 138,215,140 98,306,000 3,079,680 263,431,330 2010 2011 23,241,510 138,877,350 97,287,710 3,127,070 262,533,640 2011 2012 17,238,450 101,871,140 73,141,140 3,361,120 195,611,850 2012 2013 15,456,680 102,328,980 71,704,020 3,441,730 192,931,410 2013 2014 16,403,340 90,703,150 67,157,140 4,576,530 178,840,160 2014 2015 15,183,630 92,056,060 66,419,690 4,280,110 177,939,490 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 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 2007 2008 2,257,820$ 224,243,790$ 12.271 1,746,859,870$ 12.97% 2008 2009 10,266,600 226,144,240 11.392 1,880,466,430 12.57% 2009 2010 17,517,540 245,913,790 11.208 2,125,079,840 12.40% 2010 2011 17,481,590 245,052,050 11.220 2,127,634,050 12.34% 2011 2012 12,538,960 183,072,890 12.072 1,566,445,080 12.49% 2012 2013 12,511,160 180,420,250 11.983 1,564,516,920 12.33% 2013 2014 12,105,380 166,734,780 12.258 1,406,594,920 12.71% 2014 2015 11,501,900 166,437,590 12.207 1,417,405,720 12.55% 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% 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. 102 TOWN OF AVON, COLORADO DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS Taxing Entity 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 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 3.315 2.436 2.252 2.264 3.116 3.027 3.302 3.251 2.809 0.000 Total Direct 12.271 11.392 11.208 11.220 12.072 11.983 12.258 12.207 11.765 8.956 Eagle County 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 Colleges and School Districts Colorado Mountain College 3.997 3.997 3.997 3.997 3.997 3.997 3.997 3.997 3.997 3.997 Eagle County School District RE-50J 20.051 20.414 19.402 19.474 21.601 21.362 20.826 21.517 20.331 25.209 Metropolitan Districts Avon Metropolitan District 3.281 2.705 2.535 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Avon Station Metropoitan District 45.000 45.000 45.000 45.000 58.000 58.000 58.000 58.000 58.000 63.000 Confluence Metropolitan District 45.000 45.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Mountain Vista Metropolitan District 33.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 Village Metropolitan District 15.000 15.000 15.000 40.000 50.000 50.000 50.000 50.000 50.000 50.000 Other Special Districts Avon General Improvement District No. 1 0.000 9.396 9.396 9.396 15.288 15.288 17.557 17.557 14.077 14.005 Eagle River Fire Protection District 5.550 5.550 5.550 5.550 5.650 7.553 9.238 9.392 8.205 9.740 Eagle Valley Library District 2.750 2.750 2.750 2.750 2.750 2.750 2.750 2.750 2.750 2.750 Eagle River Water and Sanitation Distict 0.826 0.826 0.795 0.796 0.932 0.931 0.946 0.954 1.375 1.385 Colorado River Water Conservancy District 0.191 0.199 0.166 0.188 0.228 0.242 0.254 0.253 0.243 0.253 Eagle County Health Services District 2.019 2.055 1.780 1.768 1.764 2.023 2.006 2.019 2.008 2.755 Source: Eagle County Assessor's Office, Abstract of Assessment Notes: Property tax rates are stated in mills per $1,000 of assessed valuation. The Town's general operating mill rate may be increased only by a majority approval of the Town's residents during a general election. Rates for debt service are set based on each year's debt service requirements. Collection Year 103 TOWN OF AVON, COLORADO PRINCIPAL PROPERTY TAX PAYERS CURRENT YEAR AND NINE YEARS AGO Percentage Percentage of Total of Total Taxable Town of Avon Taxable Town of Avon Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value CSB Properties Holdings LLC 9,710,940$ 1 4.28% Traer Creek-WMT LLC 5,967,740 2 2.63%7,508,370$ 1 3.31% Avon MOB LLC 4,803,630 3 2.12% Traer Creek-HD LLC 4,315,330 4 1.90%5,382,540 4 2.38% Avon Wynfield LLC 3,747,820 5 1.65%2,957,460 10 1.31% Beaver Creek Vacation Ownership Plan 3,740,230 6 1.65% Prime Group Mountain Center LLC 3,654,870 7 1.61% Points of Colorado - Time Share 2,816,750 8 1.24%6,667,680 2 2.94% Riverfront Village Hotel, LLC 2,733,000 9 1.21%3,022,540 7 1.33% Dillon Real Estate Co, Inc 2,412,080 10 1.06%2,174,780 11 0.96% Prime Grou Avon LLC 2,181,200 11 0.96% Mountain Vista Condominium Assoc Inc.2,169,350 12 0.96% Public Service Co. of Colorado (Xcel)2,138,870 13 0.94% Avon Partners II, LLC 1,875,350 14 0.83%5,300,770 5 2.34% Christie Lodge Assoc Ltd 1,708,190 15 0.75% Traer Creek-L2 LLC - NA 0.00%6,051,120 3 2.67% Chapel Square Ventures LP - NA 0.00%3,993,090 6 1.76% CSC Land LLC - NA 0.00%3,044,000 8 1.34% ARI Mountain Center LLC - NA 0.00%2,963,800 9 1.31% Riverview Park Assoc., Inc - NA 0.00%2,082,610 12 0.92% Comcast of Colorado VII, LLC - NA 0.00%2,023,260 13 0.89% Traer Creek-RP LLC - NA 0.00%1,995,310 14 0.88% East Avon-Hudson LLC - NA 0.00%1,560,930 15 0.69% Total Assessed Value of the Fifteen Largest Taxpayers 53,975,350 23.80%56,728,260 25.05% Total Gross Assessed Value of Other Taxpayers 172,786,010 76.20%169,773,350 74.95% Total Gross Assessed Value of All Taxpayers 226,761,360$ 100.00%226,501,610$ 100.00% Source: Eagle County Assessor's Office 2017 2008 104 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 2007 2008 3,243,214$ 3,205,612$ 98.84%115$ 3,205,727$ 98.84% 2008 2009 3,110,763 3,060,762 98.39%21,861 3,082,623 99.10% 2009 2010 3,285,710 3,208,908 97.66%1,387 3,210,295 97.70% 2010 2011 2,789,855 2,704,440 96.94%4,970 2,709,409 97.12% 2011 2012 2,250,055 2,209,593 98.20%(19,296) 2,190,298 97.34% 2012 2013 2,202,287 2,160,634 98.11%875 2,161,509 98.15% 2013 2014 2,083,835 2,042,508 98.02%6 2,042,514 98.02% 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% 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. 105 TOWN OF AVON, COLORADO RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS General Special Certificates Fiscal Obligation Assessment Revenue of Capital Year Bonds Bonds Bonds Participation Loans Leases 2008 4,546,752$ -$ 27,420,000$ 1,083,750$ -$ 665,176$ 2009 3,714,230 - 2,050,000 997,500 7,075,000 503,368 2010 2,842,835 - 1,670,000 3,310,000 6,825,000 335,205 2011 2,411,440 - 1,275,000 3,195,000 6,565,000 420,063 2012 1,960,045 - 870,000 3,075,000 6,295,000 476,227 2013 1,498,650 - 7,270,000 2,950,000 - 516,378 2014 1,017,255 - 6,520,000 2,825,000 - 547,990 2015 520,860 - 6,200,000 6,280,000 - 438,024 2016 - - 5,790,000 12,235,000 - 325,518 2017 - - 8,225,362 11,675,000 - 566,231 Certificates Total Percentage Fiscal of Capital Primary of Personal Per Year Participation Leases Government Income Capita 2008 3,251,250$ 32,822$ 36,999,750$ 1.39%5,348$ 2009 2,992,500 20,954 17,353,553 0.69%2,582 2010 3,419,606 8,621 18,411,267 0.73%2,856 2011 3,302,110 377,753 17,546,366 0.70%2,477 2012 3,174,614 326,774 16,177,660 0.64%2,533 2013 3,047,119 303,251 15,585,398 0.62%2,440 2014 2,914,623 244,259 14,069,127 0.56%2,195 2015 2,777,127 185,937 16,401,948 0.65%2,534 2016 2,605,000 125,825 21,081,343 0.84%3,241 2017 2,465,000 63,864 22,995,457 0.92%3,535 Source: Town of Avon Finance Department Governmental Activities Business-Type Activities 106 TOWN OF AVON, COLORADO DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT DECEMBER 31, 2017 Estimated Estimated Share of Debt Percentage Overlapping Government Unit Outstanding Applicable a Debt Debt Repaid With Property Taxes Confluence Metropolitan District 21,875,000$ 100.00%21,875,000$ Eagle County School District RE-50J 281,775,470 7.48%21,084,510 Eagle River Fire Protection District 23,270,000 20.92%4,867,047 Other Debt Eagle County 15,210,000 7.48%1,138,124 Traer Creek Metropolitan District 32,625,000 100.00%32,625,000 Subtotal - Overlapping debt 81,589,682 Town of Avon Direct Debt 18,350,518 Total Direct and Overlapping Debt 99,940,200$ 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. 107 TOWN OF AVON, COLORADO RATIO OF GENERAL BONDED DEBT OUTSTANDING AND LEGAL DEBT MARGIN LAST TEN FISCAL YEARS 2008 2009 2010 2011 General Bonded Debt Outstanding General Obligation Bonds 3,601,127$ 3,215,000$ 2,805,000$ 2,380,000$ Actual Taxable Property Value 1,746,859,870 1,880,466,430 2,125,079,840 2,127,634,050 Net Assessed Value 224,243,790 226,144,240 245,913,790 245,052,050 Percentage of General Bonded Debt Outstanding to Actual Taxable Property Value 0.21%0.17%0.13%0.11% Town of Avon Population 6,919 6,720 6,447 7,085 Per Capita 520$ 478$ 435$ 336$ Legal Debt Limit 56,060,948$ 56,536,060$ 61,478,448$ 61,263,013$ Total Debt Applicable to Limit (3,601,127) (3,215,000) (2,805,000) (2,380,000) Legal Debt Margin 52,459,821$ 53,321,060$ 58,673,448$ 58,883,013$ Total Debt Applicable to the Limit as a Percentage of Legal Debt Limit 6.42%5.69%4.56%3.88% Source: Eagle County Assessor's Office, State of Colorado Division of Local Governments Fiscal Year 108 2012 2013 2014 2015 2016 2017 2,380,000$ 1,480,000$ 1,005,000$ 515,000$ -$ -$ 1,566,445,080 1,564,516,920 1,406,594,920 1,417,405,720 1,806,178,690 1,825,187,770 183,072,890 180,420,250 166,734,780 166,437,590 194,585,530 193,982,580 0.15%0.09%0.07%0.04%0.00%0.00% 6,393 6,388 6,410 6,472 6,505 6,383 372$ 232$ 157$ 80$ -$ -$ 45,768,223$ 45,105,062$ 41,683,695$ 41,609,398$ 48,646,382$ 48,495,645$ (2,380,000) (1,480,000) (1,005,000) (515,000) - - 43,388,223$ 43,625,062$ 40,678,695$ 41,094,398$ 48,646,382$ 48,495,645$ 5.20%3.28%2.41%1.24%0.00%0.00% Fiscal Year 109 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 $1,000's)Income Age Enrollment Price Index Rate 2008 6,919 53,898 2,740,563$ 49,635$ 35.70 5,445 209.9 3.60% 2009 6,720 55,269 2,511,100 45,430 36.30 6,249 208.5 7.30% 2010 6,447 52,197 2,533,900 44,709 36.60 6,181 212.4 8.80% 2011 7,085 54,212 2,521,062 48,618 36.30 6,344 220.3 8.70% 2012 6,393 51,874 2,515,096 48,485 35.20 6,244 224.6 8.20% 2013 6,388 53,811 2,005,000 48,750 36.00 6,549 230.8 5.20% 2014 6,410 52,460 2,644,828 50,416 36.20 6,713 237.2 4.75% 2015 6,472 53,605 3,065,540 57,927 36.50 6,546 240.0 2.10% 2016 6,505 53,989 3,297,869 61,522 36.70 6,901 246.6 2.81% 2017 6,383 52,576 3,486,688 64,581 35.60 6,959 254.9 2.22% 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. 110 TOWN OF AVON, COLORADO PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO Employer Employees Rank Employees Rank Wal-Mart 286 1 300 1 Westin Riverfront Resort & Spa 265 2 195 2 Home Depot 249 3 120 6 Maya, Mexican Kitchen 150 4 na na City Market 141 5 138 4 Eagle River Water & Sanitation 114 6 90 8 Christie Lodge 104 7 167 3 Town of Avon 89 8 118 7 Colorado Mountain Medical - Avon 68 9 na na Sheraton Mountain Vista 48 10 80 10 Finnegan's 89 9 Restaurant Avondale 135 5 Sources: Various Town of Avon businesses, Department of Labor 2017 2008 111 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 2008 145 11,416 2,525,749$ 15 11,165,780$ 13,691,529$ 2009 91 - 725,000 3 8,683,371 9,408,371 2010 112 16,517 3,215,036 7 9,806,550 13,021,586 2011 125 2,210 922,600 9 8,412,190 9,334,790 2012 126 54,250 11,400,000 8 2,448,500 13,848,500 2013 159 217,293 27,121,876 12 9,027,760 36,149,636 2014 156 - 1,500,000 10 13,735,900 15,235,900 2015 153 114,614 14,336,000 10 6,970,000 21,306,000 2016 15 56,641 16,369,635 7 8,551,360 24,920,995 2017 4 698 143,337 6 18,930,069 19,073,406 Source: Town of Avon Community Development Department Commercial Construction Residential Construction 112 TOWN OF AVON, COLORADO FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 2008 2009 2010 2011 2012General Government Administration 3.75 3.75 3.75 3.75 2.75 Human Resources 2.00 2.00 2.00 2.00 2.00 Finance 7.00 7.00 8.00 8.00 8.00 Nondepartmental 8.00 6.00 5.00 3.00 1.00 Community Development 9.75 7.75 7.75 6.00 5.00 Police 21.00 22.00 22.00 20.00 20.00 Public Works: Engineering 3.00 3.00 3.00 3.00 2.00 Buildings and Facilities 4.00 4.00 3.75 2.75 2.75 Roads and Bridges, Parks 18.00 17.00 16.25 16.25 15.25 Transportation 14.00 8.00 4.50 4.35 4.35 Fleet Maintenance 12.10 13.10 13.10 9.25 7.25 Recreation 10.00 8.00 7.00 8.00 9.00 Total 112.60 101.60 96.10 86.35 79.35 2013 2014 2015 2016 2017General Government Administration 3.75 4.75 4.75 4.60 4.60 Human Resources 2.00 2.00 3.00 3.00 3.00 Finance 8.00 8.00 9.00 8.00 9.00 Nondepartmental 1.00 1.00 1.00 1.00 Community Development 4.00 4.00 4.00 4.00 5.00 Police 20.00 20.00 20.00 20.40 20.40 Public Works: Engineering 2.00 2.00 2.00 2.00 2.00 Buildings and Facilities 3.00 3.00 4.00 4.00 5.00 Roads and Bridges, Parks 16.00 14.00 14.00 15.00 16.00 Transportation 4.00 4.00 6.00 6.00 6.00 Fleet Maintenance 8.00 8.00 8.00 8.00 8.00 Recreation 6.00 7.00 9.00 9.00 10.00 Total 77.75 77.75 84.75 85.00 89.00 Source: Town of Avon Budget Full-time Equivalent Employees as of December 31 113 TOWN OF AVON, COLORADO OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 2008 2009 2010 2011 Town of Avon Facilities and Services: Miles of Streets 23.73 23.73 23.73 23.73 Number of Street Lights 433 433 454 632 Culture and Recreation: Miles of Bike/Pedestrian Paths 5.60 5.60 5.60 8.75 Miles of dirt, singletrack trails 0.00 0.00 0.00 0.00 Parks / Lakes 5/1 5/1 5/1 5/1 Park Acreage 672 672 672 672 Tennis/Volleyball /Basketball Courts/Pickleball Courts 4 / 3 / 3 4 / 3 / 3 4 / 3 / 3 4 / 2 / 3 Recreation Centers 1 1 1 1 Softball / Soccer Fields 1 / 2 1 / 2 1 / 2 1 / 2 Playgrounds 4 4 4 4 Performance Art Pavilion Police Protection: Number of Stations 1 1 1 1 Number of Police Personnel and Officers 18 21 20 18 Number of Patrol Units 14 13 15 15 Number of Law Violations: General Ordinance Violations 267 168 157 218 Traffic Violations 351 287 831 1,204 Parking Violations 3 13 379 285 Facilities and Services Not Included in the Reporting Entity: Libraries: Number of Libraries / Volumes 1 / 76,228 1 / 79,560 1 / 80,054 1 / 83,008 Water System: Miles of Water Mains 24.99 24.99 24.99 24.99 Number of Service Connections 3,761 3,787 3,802 3,799 Daily Average Consumption in Gallons 943,787 687,693 672,789 687,099 Maximum Daily Capacity of Plant in Gallons 10MGD 10MGD 10MGD 10MGD Sanitary Sewer System: Miles of Sanitary Sewers 33.44 33.44 33.44 33.44 Number of Treatment Plants 1 1 1 1 Number of Service Connections 3,821 3,913 3,916 3,933 Maximum Daily Capacity of Treatment Plant in Gallons 4.3MGD 4.3MGD 4.3MGD 4.3MGD Education: Number of Elementary Schools / Instructors 1 / 27 1 / 23 1 / 23 1 / 23 Fire Protection: Number of Stations 9 9 9 9 Number of Fire Personnel and Officers 56 47 56 55 Number of Calls Answered 2,855 2,262 2,167 2,198 Number of Inspections Conducted 565 397 141 166 Fiscal Year 114 2012 2013 2014 2015 2016 2017 23.73 23.73 23.73 23.73 23.73 23.73 632 632 613 619 634 646 8.75 8.75 8.82 8.82 9.32 9.32 0.00 0.00 11.00 11.00 11.00 11.00 5/1 5/1 5/1 5/1 5/1 5/2 672 672 672 672 672 672 4 / 2 / 3 4 / 2 / 3 / 2 4 / 2 / 3 / 2 4 / 2 / 3 / 2 4 / 2 / 3 / 2 4 / 2 / 3 / 2 1 1 1 1 1 1 1 / 2 1 / 2 1 / 2 1 / 2 1 / 2 1 / 2 4 4 4 4 4 4 1 1 1 1 1 1 1 1 1 1 20 20 20 21 23 23 16 16 16 15 15 15 396 207 438 384 419 91 495 285 372 314 543 446 110 165 366 282 234 147 1 / 82,193 1 / 79,405 1 / 80,239 1 / 79,226 1 / 77,490 1 / 78,779 24.99 24.99 24.99 24.99 24.99 24.99 3,814 3,831 3,897 3,917 3,917 3,980 589,567 675,728 706,833 706,833 709,478 712,521 10MGD 10MGD 10MGD 10MGD 10MGD 10MGD 33.44 33.44 33.44 33.44 33.44 33.44 1 1 1 1 1 1 3,953 3,969 4,038 4,086 4,086 4,118 4.3MGD 4.3MGD 4.3MGD 4.3MGD 4.3MGD 4.3MGD 1 / 23 1 / 27 1 / 25 1 / 27 1 / 47 1 / 62 8 5 5 5 6 6 55 66 64 67 68 68 2,089 2,244 2,357 636 670 644 190 154 154 122 175 179 Fiscal Year 115 Heil Law & Planning, LLC E-Mail: ericheillaw@gmail.com HEIL LAW & PLANNING, LLC MEMORANDUM TO: Honorable Mayor Fancher and Town Council members FROM: Eric J. Heil, Town Attorney RE: Ordinance No. 18-06 Small Cell Regulations DATE: June 6, 2018 SUMMARY: Ordinance No. 18-06 is presented for Council for public hearing and second reading. Ord. No. 18-06 would establish new Small Cell Regulations to implement House Bill 17-1193 which was adopted to require expedited permitting of small cell facilities within local government right-of-ways. Small cell facilities are cellular and broadband equipment which is generally smaller in size and which is installed more frequently in urbanized areas to enhance wireless cellular and broadband services. This is an emerging technology that is currently being introduced in metropolitan areas. The Town of Avon currently does not have any procedures or permitting process for small cell facilities. I have reviewed House Bill 17-1193 and reviewed several small cell regulations ranging from small communities (e.g. Town of Morrison) to large cities (e.g. City of Centennial). The proposed regulations are intended to be concise while providing the Town with appropriate design standards and protections. A representive from AT&T reviewed the regulations and provided suggested revisions. I incorporated most of the suggested revisions. Justin Hildreth, Town Engineer, also reviewed regulations with revisions and found the regulations to be acceptable as presented on second and final reading to Council. This memo includes a REDLINE of the regulations showing the changes from the last meeting. PROPOSED MOTION: “I move to approve second and final reading of Ordinance No. 18-06 Adopting a New Chapter 12.20 of Title 12 of the Avon Municipal Code Establishing Small Cell Regulations.” OVERVIEW OF REGULATIONS: House Bill 17-1193 requires expedited permitting for small cell facilities in local government right-of-ways which is a State of Colorado interpretation and implementation of the Federal Telecommunications Act of 1996. It does not require the Town to permit installation of small cell facilities on Town properties which are not right-of-ways. In such case, Town has the discretion as a property owner to permit, or not permit, such installation. Generally, small cell facilities are attached to existing utility poles. Small cell facilities are defined by dimension to not exceed 3 cubic feet for the antenna, 17 cubic feet for primary equipment enclosures, and 24” x 15” x 12” for “micro wireless facilities”. The design standards require, to the greatest extent possible, that the design of such facilities are invisible and not visually intrusive. Many communities state a preference for installation on existing utility poles; however, Avon has very unique light poles for Lake Street and other streets and has higher design utility poles for signage and other purposes in the Town core. Therefore, the proposed regulations expressly allow the Town to refuse installation of small cell facilities on existing poles with elevated design. The minimum permit standards include requirements for indemnification, bonding, removal, and expiration of permits. The permit applications would be administered by the Town Engineer to whom is delegated with discretion to adopt permit application forms, procedures and additional standards which are not inconsistent with Chapter 12.20. The Town Engineer also has discretion to approve alternative designs where necessary provided that such alternative designs meet the purpose and intent of the regulations (i.e. that the small cell facilities are visually invisible or unobtrusive). There is a procedure to appeal a decision Avon Town Council RE: Ordinance No. 18-06 Adopting Small Cell Regulations Date: June 6, 2018 Page 2 of 2 to the Town Council if the Town Engineer denies a permit application. REVISIONS: The following revisions were made to Chapter 12.20: • The Town Engineer must act on application within 90 days per statutory requirement. • The height of small cell facilities was modified to 10’ above existing utility poles in accordance with federal regulations which allows modifications that increase height by 10’. • The setback from single family and residential structures was modified to allow placement between residential properties when the setback would result in lack of service coverage. This primarily affects the Wildridge and Mountain Star residential areas. • The minimum spacing of small cell facilities was reduced from 1,000 feet to 300 feet and language was added that the minimum spacing is for the same provider. The intent was not to allow the first provider to effectively block competitive providers. OPTIONS: Council may continue second reading for more information or move to reject the ordinance. Thank you, Eric ATTACHMENT A: REDLINE of revisions from First Reading ATTACHMENT B: Ordinance No. 18-06 Exhibit A: Chapter 12.20 – Small Cell Regulations Page 1 of 4 EXHIBIT A: Chapter 12.20 – Small Cell Regulations CHAPTER 12.20 – Small Cell Regulations 12.40.01012.20.010 – Purpose and Intent. It is the purpose and intent of this Chapter to adopt Small Cell Regulations to implement House Bill 17- 1193 and revisions to C.R.S. §29-27-401 et. seq. to adopt an expedited permitting process for the installation of small cell facilities and small cell networks with the Town of Avon’s right-of-ways. It is also the purpose and intent of this Chapter to adopt minimum design standards and criteria to insure that the installation of small cell facilities does not result in visual clutter or detract from the existing and planned aesthetic design of the Town of Avon right-of-way streetscapes and that the installation of small cell facilities does not interfere with the existing and future use of Town of Avon right-of-ways. This Chapter 12.20 shall be limited to the installation of small cell facilities in Town of Avon right-of-ways and shall not restrict installation of small cell facilities on private property and shall not authorize installation of small cell facilities on Town of Avon properties which are not right-of-ways. 12.40.02012.20.020 – Definitions. For purposes of this Chapter, the following terms shall have the following meanings: Abandonment means discontinuance of use of a small cell facility for a period of twelve (12) months or the failure to repair a small cell facility within three (3) months. Antenna means communications equipment that transmits or receives electromagnetic radio frequency signals used to provide wireless services. Broadband facility means any infrastructure used to deliver broadband service or for the provision of broadband service. Micro wireless facility means a small wireless facility that is no larger in dimensions than twenty-four inches in length, fifteen inches in width, and twelve inches in height and that has an exterior antenna, if any, that is no more than eleven inches in length. Permittee means the owner of the small cell facility located within the Town of Avon right-of-way. Small cell facility means: (a) A personal wireless service facility as defined by the federal “Telecommunications Act of 1996”, as amended as of August 6, 2014; or (b) A wireless service facility that meets both of the following qualifications: (i) Each antenna is located inside an enclosure of no more than three cubic feet in volume or, in the case of an antenna that has exposed elements, the antenna and all of its exposed elements could fit within an imaginary enclosure of no more than three cubic feet; and ATTACHMENT A: Redline of Regulations Exhibit A: Chapter 12.20 – Small Cell Regulations Page 2 of 4 (ii) Primary equipment enclosures are no larger than seventeen cubic feet in volume. The following associated equipment may be located outside of the primary equipment enclosure and, if so located, is not included in the calculation of equipment volume: Electric meter concealment, telecommunications demarcation box, ground-based enclosures, back-up power systems, grounding equipment, power transfer switch, and cut-off switch; or (c) A micro wireless facility. Tower means any structure built for the sole or primary purpose of supporting antennas licensed or authorized by the federal communications commission and the antennas’ associated facilities, including structures that are constructed for wireless communications services including private, broadcast, and public safety services; unlicensed wireless services; fixed wireless services such as backhaul; and the associated site. Utility pole means any pole within the Avon right-of-way which is used for utilities or signage. Wireless service facility means a facility for the provision of wireless services; except that “wireless service facility” does not include coaxial or fiber-optic cable that is not immediately adjacent to, or directly associated with, a particular antenna. 12.40.03012.20.030 – Unlawful Acts. It is unlawful to install or modify a small cell facility on Avon right-of-ways without a valid permit for small cell facilities. 12.40.04012.20.040 – Permitting Process. The Town Engineer shall review and act upon permit applications for small cell facilities. The Town Engineer may adopt permit application forms, procedures and criteria which are not inconsistent with this Chapter 12.20., which shall include consolidating applications by the same provider for multiple small cell facilities. The Town Engineer may refer permit applications for review and comment by other Town department or by third parties where appropriate. The Town Engineer shall act to approve or deny an application for a small cell facility on or before the 90th day after receipt of a complete application. 12.40.05012.20.050 – Design Standards. (a) Height: All small cell facilities shall not exceed 210 feet above the utility pole or 10 feet above a building structure to which they are attached. When new utility poles are proposed as an alternative, the height of such poles shall be similar to existing utility/light poles in the vicinity, but shall not exceed five (5ten (10) feet higher than existing utility poles in the vicinity. (b) SebackSetback: A new freestanding pole or structure for a small cell facility mustproposed to be setback a minimum oflocated within 250 feet from existing or planned detached single family or duplex residential structures, unless such setback resulted in a lack of service coverage, in which case new freestanding poles or structures shall be located between properties to minimize impacts to views and shall incorporate a camouflaged design with the equipment completely ATTACHMENT A: Redline of Regulations Exhibit A: Chapter 12.20 – Small Cell Regulations Page 3 of 4 enclosed within the pole. (c) Spacing: No small cell facility shall be located within one thousandthree hundred feet (1,000300 ft) of any other such facility by the same provider unless the applicant can demonstrate that such minimum space will inhibit or degrade the provision of service. (d) Design: Small cell facilities shall have a consistent design with the utility pole or structure on which it is installed, including but not limited to: matching paint and color, matching materials, and enclosure design which is similar to the pole or structure. To the greatest degree possible, support equipment shall be located underground. The design of small cell facilities shall blend with the design of existing poles and structures to the greatest degree possible avoid, or minimize if complete avoidance is not possible, the appearance of the small cell facility and increased visual clutter on utility poles and structures. (e) Location: Small cell facilities are permitted in Avon right-of-ways, upon existing or new utility poles or structures owned by the Town, or owned by third parties with permission of such third parties, under the following prioritiespreferences: (i) First, on existing Town-owned utility pole, if any, which shall be removed and replaced with a pole designed to contain all antennae and equipment within the utility pole to conceal any ground-based support equipment and ownership of which pole is conveyed to the Town; provided that the Town may refuse to permit installation on an existing utility pole that is uniquely and intentionally designed as part of the Town’s streetscape plans and where the design of the small cell facility would detract from the utility pole design. Such utility poles include but are not limited to light poles on Lake Street and utility poles for signs and banners throughout the Town core commercial area. (ii) Second, on existing Town-owned utility poles or third party owned utility pole (with the consent of the third party owner), with attachment of the small cell facility in a configuration and design approved by the Town. (iii) Third, on a freestanding or ground mounted facility which is located on Town of Avon right-of- way at a site which does not interfere with existing or planned utilities and right-of-way uses and which utilizes a design that is consistent and compatible with the design of utility poles and structures in the vicinity. The location of new poles or structures shall be sited to minimize visual impacts to adjacent and nearby property owners. (f) Alternative Design: The Town Engineer has the authority to approve alternative designs for small cell facilities which do not meet the standards set forth above with the following findings: (i) Compliance with the Design Standards is not reasonably possible and would impose a significant financial hardship on the small cell facility operator; and (ii) The proposed alternative design meets the purpose and intent of this Chapter 12.20. 12.40.06012.20.060 – Permit Standards. Permits for small cell facilities in Town of Avon right-of- ATTACHMENT A: Redline of Regulations Exhibit A: Chapter 12.20 – Small Cell Regulations Page 4 of 4 ways shall include the following minimum requirements: (a) Indemnification: The permittee shall indemnify the Town from and against all liability and claims arising as a result of that location or attachment, including repair and replacement of damaged utility poles and equipment, in such form approved by the Town Attorney. (b) Bonding: The permittee shall provide a bond, in a form approved by the Town Attorney, to guarantee payment for any damages to real property not owned by the small cell facility owner and to guarantee the removal of the small cell facility or facilities upon abandonment. (c) Relocation and Removal: The permittee shall remove and/or relocate small cell facilities at the permittee’s expense in the event that the Town of Avon’s use of the right-of-way conflicts with or precludes the continued location of such small cell facility. (d) Expiration: A permit for approval of a small cell facility shall expire twelve (12) months after approval unless construction of the permitted structure has commenced. The Town Engineer may grant multiple extensions of a permit approval provided that each such extension shall not exceed twelve (12) months and provided that the permit conforms to any amendments to this Chapter 12.20, including amendments to the design standards and/or permit standards. (e) Consolidated Application: The applicant, at its discretion, may file a consolidated application and receive a single permit for the small cell network. 12.40.07012.20.070 – Appeal to Council. Any person whose application for small cell facility is denied or partially approved may appeal such decision to the Town Council in accordance with the procedures and requirements of this Section. The applicant shall file a written appeal in writing with the Town Clerk within thirty (30) days after the date of transmittal of the decision of the Town Manager or designee to deny such application. The failure to file a written appeal within thirty (30) days after the date of transmittal of the decision to deny the application shall bar any further consideration of the application, shall bar any appeal to the Town Council and shall bar any judicial review by a Colorado court. The written appeal shall state the reasons for the appeal. An appeal which is filed timely shall be considered and acted upon by the Town Council within forty-five (45) days after the date of receipt. The Town shall provide at least three (3) days' prior notice to the applicant stating the date, time and location where the Town Council will consider the appeal. The decision of the Town Council shall be in writing. The Town Council shall determine whether to approve, partially approve or deny the application based on compliance with standards set forthin this Chapter 12.20. The failure by the Town Council to hear and decide an appeal within forty-five (45) days after the receipt of the appeal shall not result in the approval of the application. 12.40.08012.20.080 – Violation; Penalty. It is unlawful and a misdemeanor offense to install or modify small cell facilities without a permit. A person who is convicted of installing or modifying a small cell facility without a permit shall be punished as provided in Chapter 1.08 – General Penalty. ATTACHMENT A: Redline of Regulations Ord 18-06 Small Cell Regulations Final Reading – June 12, 2018 Page 1 of 3 TOWN OF AVON, COLORADO ORDINANCE 18-06 ADOPTING A NEW CHAPTER 12.20 OF TITLE 12 OF THE AVON MUNICIPAL CODE ESTABLISHING SMALL CELL REGULATIONS WHEREAS, the Town of Avon, Colorado (“Town”) is a home rule municipality existing pursuant to the laws of the Colorado Constitution, the Colorado Revised Statutes and the Town's Home Rule Charter; and WHEREAS, the Town Council finds that the passage of House Bill 17-1193 requires an expedited permitting process for small cell facilities and small cell networks within local government right-of-ways for telecommunications providers, including broadband providers; and WHEREAS, the Town Council desires to adopt “Small Cell Regulations” to implement House Bill 17-1193; WHEREAS, the Town has the power to adopt this ordinance pursuant to the powers contained in the Avon Town Charter, and the Town Council finds that the adoption of Small Cell Regulations will promote the health, safety and general welfare of the Avon community; and WHEREAS, approval of this Ordinance on First Reading is intended only to confirm that the Town Council desires to comply the requirements of the Avon Home Rule Charter by setting a public hearing in order to provide the public an opportunity to present testimony and evidence regarding the application and that approval of this Ordinance on First Reading does not constitute a representation that the Town Council, or any member of the Town Council, supports, approves, rejects, or denies this ordinance. NOW, THERFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO the following: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the Town Council. Section 2. Addition of Chapter 12.20 to Title 12 of the Avon Municipal Code. Title 12 of the Avon Municipal Code is hereby amended by the addition of a new Chapter 12.20, to read as set forth in Exhibit A: Addition of Chapter 12.20 to Title 12 of the Avon Municipal Code, attached hereto. Section 3. Codification of Amendments. The codifier of the Town’s Municipal Code, Colorado Code Publishing, is hereby authorized to make such numerical and formatting changes as may be necessary to incorporate the provisions of this Ordinance within the Avon Municipal Code. The Town Clerk is authorized to correct, or approve the correction by the codifier, of any typographical error in the enacted regulations, provided that such correction shall not substantively change any provision of the regulations adopted in this Ordinance. Such corrections may include spelling, reference, citation, enumeration, and grammatical errors. ATTACHMENT B: ORDINANCE NO. 18-06 Ord 18-06 Small Cell Regulations Final Reading – June 12, 2018 Page 2 of 3 Section 4. Severability. If any provision of this Ordinance, or the application of such provision to any person or circumstance, is for any reason held to be invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable. The Town Council hereby declares that it would have passed this Ordinance and each provision thereof, even though any one of the provisions might be declared unconstitutional or invalid. As used in this Section, the term “provision” means and includes any part, division, subdivision, section, subsection, sentence, clause or phrase; the term “application” means and includes an application of an ordinance or any part thereof, whether considered or construed alone or together with another ordinance or ordinances, or part thereof, of the Town. Section 5. Effective Date. This Ordinance shall take effect thirty (30) days after the date of final passage in accordance with Section 6.4 of the Avon Home Rule Charter. Section 6. Safety Clause. The Town Council hereby finds, determines and declares that this Ordinance is promulgated under the general police power of the Town of Avon, that it is promulgated for the health, safety and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The Town Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. Section 7. No Existing Violation Affected. Nothing in this Ordinance shall be construed to release, extinguish, alter, modify, or change in whole or in part any penalty, liability or right or affect any audit, suit, or proceeding pending in any court, or any rights acquired, or liability incurred, or any cause or causes of action acquired or existing which may have been incurred or obtained under any ordinance or provision hereby repealed or amended by this Ordinance. Any such ordinance or provision thereof so amended, repealed, or superseded by this Ordinance shall be treated and held as remaining in force for the purpose of sustaining any and all proper actions, suits, proceedings and prosecutions, for the enforcement of such penalty, liability, or right, and for the purpose of sustaining any judgment, decree or order which can or may be rendered, entered, or made in such actions, suits or proceedings, or prosecutions imposing, inflicting, or declaring such penalty or liability or enforcing such right, and shall be treated and held as remaining in force for the purpose of sustaining any and all proceedings, actions, hearings, and appeals pending before any court or administrative tribunal. Section 8. Publication. The Town Clerk is ordered to publish this Ordinance in accordance with Chapter 1.16 of the Avon Municipal Code. [Execution Page follows] ATTACHMENT B: ORDINANCE NO. 18-06 Ord 18-06 Small Cell Regulations Final Reading – June 12, 2018 Page 3 of 3 INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on May 22, 2018 and setting such public hearing for June 12, 2018 at the Council Chambers of the Avon Municipal Building, located at One Lake Street, Avon, Colorado. BY: ATTEST: ____________________________ ___________________________ Jennie Fancher, Mayor Debbie Hoppe, Town Clerk ADOPTED ON SECOND AND FINAL READING on June 12, 2018. BY: ATTEST: ____________________________ ____________________________ Jennie Fancher, Mayor Debbie Hoppe, Town Clerk APPROVED AS TO FORM: ____________________________ Eric J. Heil, Town Attorney ATTACHMENT B: ORDINANCE NO. 18-06 Exhibit A: Chapter 12.20 – Small Cell Regulations Page 1 of 4 EXHIBIT A: Chapter 12.20 – Small Cell Regulations CHAPTER 12.20 – Small Cell Regulations 12.20.010 – Purpose and Intent. It is the purpose and intent of this Chapter to adopt Small Cell Regulations to implement House Bill 17- 1193 and revisions to C.R.S. §29-27-401 et. seq. to adopt an expedited permitting process for the installation of small cell facilities and small cell networks with the Town of Avon’s right-of-ways. It is also the purpose and intent of this Chapter to adopt minimum design standards and criteria to insure that the installation of small cell facilities does not result in visual clutter or detract from the existing and planned aesthetic design of the Town of Avon right-of-way streetscapes and that the installation of small cell facilities does not interfere with the existing and future use of Town of Avon right-of-ways. This Chapter 12.20 shall be limited to the installation of small cell facilities in Town of Avon right-of-ways and shall not restrict installation of small cell facilities on private property and shall not authorize installation of small cell facilities on Town of Avon properties which are not right-of-ways. 12.20.020 – Definitions. For purposes of this Chapter, the following terms shall have the following meanings: Abandonment means discontinuance of use of a small cell facility for a period of twelve (12) months or the failure to repair a small cell facility within three (3) months. Antenna means communications equipment that transmits or receives electromagnetic radio frequency signals used to provide wireless services. Broadband facility means any infrastructure used to deliver broadband service or for the provision of broadband service. Micro wireless facility means a small wireless facility that is no larger in dimensions than twenty-four inches in length, fifteen inches in width, and twelve inches in height and that has an exterior antenna, if any, that is no more than eleven inches in length. Permittee means the owner of the small cell facility located within the Town of Avon right-of-way. Small cell facility means: (a) A personal wireless service facility as defined by the federal “Telecommunications Act of 1996”, as amended as of August 6, 2014; or (b) A wireless service facility that meets both of the following qualifications: (i) Each antenna is located inside an enclosure of no more than three cubic feet in volume or, in the case of an antenna that has exposed elements, the antenna and all of its exposed elements could fit within an imaginary enclosure of no more than three cubic feet; and ATTACHMENT B: ORDINANCE NO. 18-06 Exhibit A: Chapter 12.20 – Small Cell Regulations Page 2 of 4 (ii) Primary equipment enclosures are no larger than seventeen cubic feet in volume. The following associated equipment may be located outside of the primary equipment enclosure and, if so located, is not included in the calculation of equipment volume: Electric meter concealment, telecommunications demarcation box, ground-based enclosures, back-up power systems, grounding equipment, power transfer switch, and cut-off switch; or (c) A micro wireless facility. Tower means any structure built for the sole or primary purpose of supporting antennas licensed or authorized by the federal communications commission and the antennas’ associated facilities, including structures that are constructed for wireless communications services including private, broadcast, and public safety services; unlicensed wireless services; fixed wireless services such as backhaul; and the associated site. Utility pole means any pole within the Avon right-of-way which is used for utilities or signage. Wireless service facility means a facility for the provision of wireless services; except that “wireless service facility” does not include coaxial or fiber-optic cable that is not immediately adjacent to, or directly associated with, a particular antenna. 12.20.030 – Unlawful Acts. It is unlawful to install or modify a small cell facility on Avon right-of-ways without a valid permit for small cell facilities. 12.20.040 – Permitting Process. The Town Engineer shall review and act upon permit applications for small cell facilities. The Town Engineer may adopt permit application forms, procedures and criteria which are not inconsistent with this Chapter 12.20, which shall include consolidating applications by the same provider for multiple small cell facilities. The Town Engineer may refer permit applications for review and comment by other Town department or by third parties where appropriate. The Town Engineer shall act to approve or deny an application for a small cell facility on or before the 90th day after receipt of a complete application. 12.20.050 – Design Standards. (a) Height: All small cell facilities shall not exceed 10 feet above the utility pole or a building structure to which they are attached. When new utility poles are proposed as an alternative, the height of such poles shall be similar to existing utility/light poles in the vicinity, but shall not exceed ten (10) feet higher than existing utility poles in the vicinity. (b) Setback: A new freestanding pole or structure for a small cell facility proposed to be located within 250 feet from existing or planned detached single family or duplex residential structures, unless such setback resulted in a lack of service coverage, in which case new freestanding poles or structures shall be located between properties to minimize impacts to views and shall incorporate a camouflaged design with the equipment completely enclosed within the pole. ATTACHMENT B: ORDINANCE NO. 18-06 Exhibit A: Chapter 12.20 – Small Cell Regulations Page 3 of 4 (c) Spacing: No small cell facility shall be located within three hundred feet (300 ft) of any other such facility by the same provider unless the applicant can demonstrate that such minimum space will inhibit or degrade the provision of service. (d) Design: Small cell facilities shall have a consistent design with the utility pole or structure on which it is installed, including but not limited to: matching paint and color, matching materials, and enclosure design which is similar to the pole or structure. To the greatest degree possible, support equipment shall be located underground. The design of small cell facilities shall blend with the design of existing poles and structures to the greatest degree possible avoid, or minimize if complete avoidance is not possible, the appearance of the small cell facility and increased visual clutter on utility poles and structures. (e) Location: Small cell facilities are permitted in Avon right-of-ways, upon existing or new utility poles or structures owned by the Town, or owned by third parties with permission of such third parties, under the followingpreferences: (i) First, on existing Town-owned utility pole, if any, which shall be removed and replaced with a pole designed to contain all antennae and equipment within the utility pole to conceal any ground-based support equipment and ownership of which pole is conveyed to the Town; provided that the Town may refuse to permit installation on an existing utility pole that is uniquely and intentionally designed as part of the Town’s streetscape plans and where the design of the small cell facility would detract from the utility pole design. Such utility poles include but are not limited to light poles on Lake Street and utility poles for signs and banners throughout the Town core commercial area. (ii) Second, on existing Town-owned utility poles or third party owned utility pole (with the consent of the third party owner), with attachment of the small cell facility in a configuration and design approved by the Town. (iii) Third, on a freestanding or ground mounted facility which is located on Town of Avon right-of- way at a site which does not interfere with existing or planned utilities and right-of-way uses and which utilizes a design that is consistent and compatible with the design of utility poles and structures in the vicinity. The location of new poles or structures shall be sited to minimize visual impacts to adjacent and nearby property owners. (f) Alternative Design: The Town Engineer has the authority to approve alternative designs for small cell facilities which do not meet the standards set forth above with the following findings: (i) Compliance with the Design Standards is not reasonably possible and would impose a significant financial hardship on the small cell facility operator; and (ii) The proposed alternative design meets the purpose and intent of this Chapter 12.20. 12.20.060 – Permit Standards. Permits for small cell facilities in Town of Avon right-of-ways shall include the following minimum requirements: ATTACHMENT B: ORDINANCE NO. 18-06 Exhibit A: Chapter 12.20 – Small Cell Regulations Page 4 of 4 (a) Indemnification: The permittee shall indemnify the Town from and against all liability and claims arising as a result of that location or attachment, including repair and replacement of damaged utility poles and equipment, in such form approved by the Town Attorney. (b) Bonding: The permittee shall provide a bond, in a form approved by the Town Attorney, to guarantee payment for any damages to real property not owned by the small cell facility owner and to guarantee the removal of the small cell facility or facilities upon abandonment. (c) Relocation and Removal: The permittee shall remove and/or relocate small cell facilities at the permittee’s expense in the event that the Town of Avon’s use of the right-of-way conflicts with or precludes the continued location of such small cell facility. (d) Expiration: A permit for approval of a small cell facility shall expire twelve (12) months after approval unless construction of the permitted structure has commenced. The Town Engineer may grant multiple extensions of a permit approval provided that each such extension shall not exceed twelve (12) months and provided that the permit conforms to any amendments to this Chapter 12.20, including amendments to the design standards and/or permit standards. (e) Consolidated Application: The applicant, at its discretion, may file a consolidated application and receive a single permit for the small cell network. 12.20.070 – Appeal to Council. Any person whose application for small cell facility is denied or partially approved may appeal such decision to the Town Council in accordance with the procedures and requirements of this Section. The applicant shall file a written appeal in writing with the Town Clerk within thirty (30) days after the date of transmittal of the decision of the Town Manager or designee to deny such application. The failure to file a written appeal within thirty (30) days after the date of transmittal of the decision to deny the application shall bar any further consideration of the application, shall bar any appeal to the Town Council and shall bar any judicial review by a Colorado court. The written appeal shall state the reasons for the appeal. An appeal which is filed timely shall be considered and acted upon by the Town Council within forty-five (45) days after the date of receipt. The Town shall provide at least three (3) days' prior notice to the applicant stating the date, time and location where the Town Council will consider the appeal. The decision of the Town Council shall be in writing. The Town Council shall determine whether to approve, partially approve or deny the application based on compliance with standards set forthin this Chapter 12.20. The failure by the Town Council to hear and decide an appeal within forty-five (45) days after the receipt of the appeal shall not result in the approval of the application. 12.20.080 – Violation; Penalty. It is unlawful and a misdemeanor offense to install or modify small cell facilities without a permit. A person who is convicted of installing or modifying a small cell facility without a permit shall be punished as provided in Chapter 1.08 – General Penalty. ATTACHMENT B: ORDINANCE NO. 18-06 Riverfront Subdivision – Major Development Plan Application 1 TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: David Williams, Town Planner Thru: Matt Pielsticker, AICP, Planning Director Meeting Date: June 12, 2018 Agenda Topic: PUBLIC HEARING ON MAJOR DEVELOPMENT PLAN APPLICATION FOR LOT 4, 5, AND 6, RIVERFRONT SUBDIVISION ACTION BEFORE COUNCIL Action on a Major Development Plan Land Use Application for Lot 4, 5, and 6, Riverfront Subdivision. PROPOSED MOTION “I move to approve the Major Development Plan Application for Lot 4, 5, and 6, Riverfront Subdivision, with the findings and conditions listed in staff’s memo dated June 12, 2018.” SUMMARY The Avon Development Code requires final review of Major Development Plan applications, when located in the Town Core, by the Town Council. Before Council is action on a Major Development Plan Application that includes six duplex buildings and one triplex building in the Riverfront Subdivision. The application was reviewed by the Planning and Zoning Commission on May 15, 2018, and June 5, 2018; the Planning and Zoning Commission provided a unanimous (5-0) recommendation for approval. Attached to this report are the application materials, as presented to the Planning and Zoning Commission. TRAIL EASEMENT In December 2017 the Town Council approved a PUD amendment for the Riverfront Subdivision. The amendment provided more flexibility in building massing and footprints on the collective parcels, ultimately reducing the overall bulk of development. The PUD amendment was conditioned upon providing an easement to connect Riverfront Lane to the Eagle Valley Trail. After speaking with the applicant, the concept design for the trail, and other future development, is far enough along to determine that the best trail layout would extend onto Open Space property owned by the Eagle River Water and Sanitation District. The applicant intends to begin the process by meeting with the Eagle River Water and Sanitation District soon. The easement must be dedicated by December 31, 2018. AVAILABLE ACTIONS • Approve Application with staff recommended motion. • Continue Public Hearing to June 26, 2018 Meeting (or any other hearing within 65 days) • Deny Application Riverfront Subdivision – Major Development Plan Application 2 STAFF RECOMMENDATION Staff is recommending that the Town Council take the Planning and Zoning Commission’s recommendation for approval, citing the following Findings and Conditions of approval: Findings: 1. The proposed application was reviewed pursuant to §7.16.080(f), Development Plan, §7.16.090(f), Design Review. The design meets the development and design standards established in the Avon Development Code and the PUD Design Standards; 2. The application is complete; 3. The application provides sufficient information to allow the PZC to determine that the application complies with the relevant review criteria; 4. The application complies with the goals and policies of the Avon Comprehensive Plan; and 5. The design relates the development to the character of the surrounding community. Conditions: 1. A satisfactory irrigation plan that achieves silver or better LEED standards, and demonstrates square footage coverage and hydrozones shall be presented to staff before a building permit will be issued; 2. No trees beyond those indicated on the landscape plan will be removed without the approval of the Town, and special efforts will be made to preserve existing vegetation; 3. Temporary irrigation systems must be removed upon sufficient vegetation establishment, which shall not exceed one (1) year for ground cover, two (2) years for shrubs or three (3) years for trees; 4. The supply of water and fire services will be verified prior to issuing a building permit; and 5. The applicant shall provide a satisfactory snow removal plan on Riverfront Lane. ATTACHMENTS PZC Materials: Staff Report, Application, and Design & Development Plan Drawings June 5, 2018 PZC Meeting – Riverfront Property 1 Staff Report – Major Development Plan June 5, 2018 Planning and Zoning Commission Meeting Case #MJR18005 Project type Major Development Plan Public Hearing Required Legal Description Lot 4 Riverfront Subdivision Zoning Planned Unit Development (PUD) Address 0254 & 0330 Riverfront Lane Prepared By David McWilliams, Town Planner Staff Report Overview This staff report contains one application for consideration by the Planning and Zoning Commission (PZC): Major Development Plan with Design Review for six (6) new duplex houses and one (1) triplex home. At the last public hearing on May 15, PZC continued the hearing pending the outcome of a potential Alternative Equivalent Compliance application, and for some design related considerations, which are addressed in their applicable sections, below. The Planning and Zoning Commission will make a recommendation on the application to the Town Council for final action since the property is in the “Town Core.” All Major Development Plans on this site require final action by Town Council, which is currently scheduled for June 12. Summary of Request Jim Telling (the Applicant) with East West Resort Development proposes a new development on Lot 4. This application presets the first phase of a four (4) phase project. The seven (7) buildings within phase one are located between Riverfront Lane and the Eagle river. The primary access will be along a new one-way driveway. The four (4) buildings closest to Riverfront Lane are two-story on the street side and three-story on the driveway side. Similarly, the buildings closer to the river are two-story on the driveway side and three-story on the river side. There is one (1) triplex and two (2) duplex design types. Each unit is between 2,048 and 2,231 net square feet and include an attached one car garage. The buildings mainly feature shed roofs on the sides and a middle ridge, all at 2:12 pitch. The property’s PUD was amended in 2017 to allow for the uses proposed in this application, including a concept of 15 dwelling units in the current development area. The other phase footprints are outlined in page 1 of the application submittal (attachment B). Public Notice Notice of the public hearing was published in the May 4 edition of the Vail Daily in accordance with Sec. 7.16.020(d) of the Avon Development Code (AMC), and noticed for multiple meeting dates. Mailed notice is not required for this application type. Property Description Via the PUD amendment Lot 4 was reimagined by consolidating what was previously Lots 4, 5, 6, and 7, moving east to west. Preliminary plats were submitted as part of the PUD amendment and a final plat step is required to be completed before any building permits would be issued for this application. June 5, 2018 PZC Meeting – Riverfront Property 2 The consolidated Lot 4 is 3.7 acres located along Riverfront Lane, generally from the cul-de-sac turnaround area to the beginning of the current Riverfront timeshare building. It is zoned PUD and accommodates the duplex and triplex development, per the PUD standards. The property primarily borders the Eagle River and large commercial-residential buildings. The Riverfront PUD includes overall dwelling unit and site coverage requirements that span the entire PUD; the following table demonstrates continued compliance. PUD Tracker Demonstrating Remaining Rights on the Property Planning Analysis Lot Coverage, Setback and Easements: Lot 4 has the following building envelope and easements: Front Side Back (Eagle River) 10’ 0’ 75’ Per the PUD Design Standards, the property is permitted, “limited minor encroachments as allowed in the development plan,” on the river setback, and decks are proposed to in this area. Distance Between Buildings Per AMC section 7.28.090(d)(2), “Building Separation. The minimum separation between residential buildings, including accessory buildings, is fifteen (15) feet. Architectural projections, such as decks, bay windows and roof overhangs, may project into the separation area, but may not encroach into required setbacks.” The revised site plan places all foundations fifteen (15) feet or further from each other. This design modification eliminates the need for an Alternative Equivalent Compliance hearing. In several places the foundations are placed fifteen (15) feet apart, and the building is cantilevered over, June 5, 2018 PZC Meeting – Riverfront Property 3 thus decreasing the separation. For example, the east duplex and it’s neighboring building are overhung over the garage, creating eleven (11) feet of separation at the second floor. The intent of the regulation is to limit a feeling of over-density in an area, and to allow viewsheds. However, compared to the originally approved Riverfront PUD, this project’s limited density is conducive to defining the included overhangs under the “architectural projection” umbrella and allowing the design. Building Height: The maximum building height permitted for this property is fifty-five feet (55’) for “townhome” buildings, which staff interprets using duplex and townhome standards as applicable. The applicant is proposing a maximum building height of 46’ – 2” according to the development plans. Grading Plan The Riverfront property has always been conceived as a phased project. With the PUD amendment in 2017 the scale of the development changed, but the realities of phasing are still present. Staff received a “Phase I Grading Plan” that demonstrates the look of the land after project completion, with the assumption that the next phase may take years to be realized. Staff is satisfied with the result, which shows appropriate sloping off the internal drive and other areas. Design Standards Analysis The PUD has its own Design Standards, which are elaborated on when applicable. In cases where the PUD is silent, AMC standards preside. Parking: The fifteen (15) unit development requires a total of 18 parking spaces, and the applicant proposes thirty-three (33) spaces, which are provided in garages, spaces in front of the garages, and three (3) non-attached spaces near the driveway entrance. Projects with over 25 parking spaces are required Image of development site plan on Google Earth. June 5, 2018 PZC Meeting – Riverfront Property 4 to provide bicycle parking facilities at a rate of one (1) bicycle parking space for every ten (10) vehicle parking spaces or a minimum of four (4) bicycle parking spaces. The applicant proposes three (3) bike parking racks (with six (6) total spaces) on the north side of the central river access path, thereby meeting the standard. Landscaping & Irrigation: The total landscape area proposed is 29,048 square feet, or 45.7% of the total area of the Phase I footprint. 580 landscape units are required, and 792 units are proposed, primarily of fir, maple, Cockspur Hawthorne, aspen, spruce, pine, several deciduous shrub species, native grasses, ground cover, and mulch areas (attachment B, Sheet 2). The applicant has not proposed an irrigation plan, and hydrozones are not expressly demarcated. The applicant states that the landscape plan has been prepared to meet the LEED Gold standard, therefore anticipates an intense focus on water conservation practices. Staff suggests that the application can be approved by PZC with the condition that a satisfactory irrigation plan is presented to staff. The application proposes the partial removal of native or established landscaping within the 75’ river setback. The applicant states that regrading necessitates the removal of certain trees, and that they will be replaced by native trees, grasses, and shrubs between the townhomes and the river. The recently planted large evergreens along the Eagle Valley Trail will remain. Further, the area has already been disturbed by prior grading and soils sampling projects. The PUD Development Plan states, “The 75- foot river setback will be largely left in its natural state”. Staff feels comfortable that removal of remaining flora is proposed to be done prudently. The Applicant states that no trees beyond those indicated on the landscape plan will be removed without the approval of the Town, and special efforts will be made to preserve existing vegetation. Staff suggests making this a condition of approval. The wetlands below the cul-de-sac are proposed to be preserved. Building Design, Building Materials and Colors: The primary exterior building materials are cedar siding (stained brown), and stone tiles (or stained concrete), cement paneling, and cementitious stucco (Attachment B, Sheet 6). Materials and colors were reviewed for conformance with the PUD Development Plan and determined to comply with the design standards. All materials are of high quality and compliment Avon’s built landscape. Since the first public hearing, the Applicant has revised some color and material choices to bring more character along Riverfront Lane and the Eagle Valley Trail, define the entries, provide a better building base, and provide flexibility for walk-out terraces. Retaining Walls: All retaining walls are proposed as boulder materials. There are three retaining walls on the west, near the cul-de-sac, and two small ones within the project. They are between four (4’) and two (2’) feet tall. Roof Material and Pitch: The applicant is proposing 2:12 roof pitches, which conforms with the PUD Development Standards. Materials are proposed to be asphalt shingles and standing seam metal, painted black. Snow Removal: The Riverfront property is responsible for its own snow removal, both internally, and along Riverfront Lane. Staff notes the need for a snow plan on the road side of the property and suggests its satisfactory completion with staff as a condition of approval for this project. June 5, 2018 PZC Meeting – Riverfront Property 5 Exterior Lighting: The proposed exterior building lighting (Attachment B, sheets 6, 8, 10) are flat full cutoff sconces. The locations and brightness comply with AMC requirements. Recessed canopy lighting is also present on the structures, but the locations are not evident on the plans. Entrances: Three (3) buildings in the application are duplexes that front Riverside Lane. For duplexes, AMC sec. 7.28.090(f) states, “Entrances and Porches. Entry features and front doors to units should be the dominant elements facing the street. Entrances should be directly accessed and clearly visible from the street. Duplexes shall provide separate covered entries for each dwelling unit.” While staff recognizes the insular “village” nature of this development as a whole, the conflict with code is noteworthy. The layout of the project with downhill and uphill units addresses the sloping topography of the site, and the restriction for curb cuts along Riverfront Lane necessitate an internal street and walkway to provide automobile and pedestrian access to the proposed townhomes. This organizational framework led to the placement of inward entrances along the new drive. The materials and composition of the north elevation of each of the uphill buildings and the proposed landscaping, with a variety of plant types and species, are proposed to create a pleasant and attractive edge along the Riverfront Lane sidewalk while providing some screening and privacy to the homes. The Applicant has further enhanced the street side since the first public hearing. The triplex (townhome in AMC standards) does not have the same requirement, further pointing to the nebulous utility of the code section in the larger context of this project. Unified Design: The proposal includes three (3) design types for two types of duplex and the triplex. All three incorporate a level of syntropy or mirroring in design, however, it has been diminished since the first public hearing. AMC sec. 7.28.090(d) states, “Duplex, townhome and multi-family developments shall be designed in a manner that creates a single unified structure and site plan. Unified design shall include, but not be limited to, the use of compatible building materials, architectural style, scale, massing, detail, roof forms and landscaping. While "mirror image" units are not supported, the design intent should be one that creates a unified structure with enough variety and architectural interest to distinguish a duplex, townhome or multi-family structure from a single-family home.” Staff is satisfied with the level of modified detailing since the first public hearing, especially on the Riverfront Lane side of the project, that allows units to be distinguished from each other. Major Development Plan & Design Review - Review Criteria § 7.16.080(f), Development Plan 1. Evidence of substantial compliance with the purpose of the Development Code as specified in §7.04.030, Purposes; June 5, 2018 PZC Meeting – Riverfront Property 6 Staff Response: The Application is in compliance with the applicable purposes outlined in the Development Code. Purpose (f) states, “Provide a planned and orderly use of land, protection of the environment and preservation of viability, all to conserve the value of the investments of the people of the Avon community and encourage a high quality of life and the most appropriate use of land throughout the municipality” View roughly from the driveway by the farthest east duplex in Phase I. The lower duplexes start behind the grove of trees on the left. 2. Evidence of substantial compliance with §7.16.090, Design Review; Staff Response: This Major Design and Development Plan Application should be assessed in part with the Design Review criteria of the Development Code. The Design Review section seeks quality development and structures that are visually harmonious with the site and the surrounding vicinity. Conformance with this code section is discussed below and in Staff Analysis. 2. Consistency with the Avon Comprehensive Plan; Staff Response: The site is located in the Riverfront District (District 2 in the Comprehensive Plan), which states, “Visibility from U.S. Highway 6, protection and enhancement of the riparian environment along the Eagle River, and appropriate public access along the river should be taken into consideration with all development.” Select district principles are elaborated below, with staff responses:  Seek easements where appropriate for river access. – An easement to access the river from Riverfront Lane was provided during the 2017 PUD amendment as a condition of approval.  Orient buildings to capitalize on the Eagle River as an amenity. Use sensitive site planning, architectural detailing, articulation, and appropriate setbacks, color, View roughly from the driveway where the lower duplexes start. The pink stake (to the right of the tree grove) represents the corner of “future B” and the yellow (above and to the right) represents the beginning of “TH C”. June 5, 2018 PZC Meeting – Riverfront Property 7 screening, and scale of structure to preserve the character of the river and its associated natural habitat. – The scale and design detail of the buildings do not appear over dominant, and in scale with the river setting.  Limit building height to a scale that is subordinate to Town Center and compatible with the river environment. Buildings should be designed to step down in height as they near the river and in response to the natural topography. – The building height is subordinate to Town Center and the buildings step down with the naturally sloping topography.  Minimize the loss of trees and impact to the riparian area while achieving urban design goals. – The wetland area is preserved and impacts to existing vegetation is minimized. Other general Goals and Policies are listed below: Goal A.1: Promote a compact community form. Goal B.2: Ensure that Avon continues to develop as a community of safe, interactive, and cohesive neighborhoods that contribute to the Town’s overall character and image. Goal B.4: Encourage commercial development that enhances Avon’s overall economic health, contributes to the community’s image and character, and provides residents and visitors with increased choices and services. Goal C.1: Ensure that development is compatible with existing and planned adjacent development and contributes to Avon’s community image and character. Goal E.1: Achieve a diverse range of housing densities, styles, and types, including rental and for sale, to serve all segments of the population. Response: Staff finds substantial consistency with the form, cohesion, compatibility, and housing types offered in this project. 3. Consistency with any previously approved and not revoked subdivision plat, planned development, or any other precedent plan or land use approval for the property as applicable; Staff Response: The application was reviewed for the requirements that accompany the PUD Development Plan and the Avon Development Code, and found to be consistent with them. 4. Compliance with all applicable development and design standards set forth in this Code, including but not limited to the provisions in Chapter 7.20, Zone Districts and Official Zoning Map, Chapter 7.24, Use Regulations, and Chapter 7.28, Development Standards; and Staff Response: The analysis contained in this staff report addresses all applicable Development Code standards. 5. That the development can be adequately served by city services including but not limited to roads, water, wastewater, fire protection, and emergency medical services. Staff Response: The proposal is being reviewed by the Eagle River Water and Sanitation District for compliance with the property’s’ water allocation. Staff suggests that approval from the District be a condition of receiving a building permit. The Fire District had no additional comments and staff suggests their approval be verified before issuing a building permit. All other special services are well established in the subdivision. §7.16.090(f), Design Review Criteria June 5, 2018 PZC Meeting – Riverfront Property 8 1. The design relates the development to the character of the surrounding community; or, where redevelopment is anticipated, relates the development to the character of Avon as a whole; Staff Response: PZC should carefully consider the design of the Riverfront Lane-fronting buildings for compliance with this criterion. 2. The design meets the development and design standards established in this Development Code; and Staff Response: Staff has outlined any nuances regarding compliance with the development and design standards contained in the Development Code. 3. The design reflects the long- range goals and design criteria from the Avon Comprehensive Plan and other applicable, adopted plan documents. Staff Response: Applicable adopted plans include the Avon Comprehensive Plan, provisions of the Development Code, and the PUD Design Standards. The design has been evaluated for conformance with these plans and staff has determined the proposed design meets the requirements as proposed. Staff Recommendation for MJR18005 Major Design & Development Plan: Staff recommends a motion to recommend approval to the Avon Town Council Lot 4 Riverfront Subdivision Major Design and Development Plan with the following Findings and Conditions: Findings: 1. The proposed application was reviewed pursuant to §7.16.080(f), Development Plan, §7.16.090(f), Design Review. The design meets the development and design standards established in the Avon Development Code and the PUD Design Standards; 2. The application is complete; 3. The application provides sufficient information to allow the PZC to determine that the application complies with the relevant review criteria; 4. The application complies with the goals and policies of the Avon Comprehensive Plan; and 5. The design relates the development to the character of the surrounding community. Conditions: 1. A satisfactory irrigation plan that achieves silver or better LEED standards, and demonstrates square footage coverage and hydrozones shall be presented to staff before a building permit will be issued; 2. No trees beyond those indicated on the landscape plan will be removed without the approval of the Town, and special efforts will be made to preserve existing vegetation. 3. Temporary irrigation systems must be removed upon sufficient vegetation establishment, which shall not exceed one (1) year for ground cover, two (2) years for shrubs or three (3) years for trees. 4. The supply of water and fire services will be verified prior to issuing a building permit; and 5. The applicant shall provide a satisfactory snow removal plan on Riverfront Lane. Motion to Recommend Approve the Application: “I move to recommend Avon Town Council approval of Case #MJR18005, an application for Major Design and Development Plan for Lot 4 Riverfront Subdivision, together with the Findings and Conditions as recommended by staff.” June 5, 2018 PZC Meeting – Riverfront Property 9 Attachment A. Application Narrative B. Design & Development Plans ZEHREN AND ASSOCIATES ARCHITECTURE  PLANNING  LANDSCAPE ARCHITECTURE  INTERIORS P.O. BOX 1976, Avon, CO 81620  970.949.0257  www.zehren.com May 25, 2018 Matt Pielsticker / David McWilliams Town of Avon Planning Department Email: cmcwilliams@avon.org / mpielsticker@avon.org Phone: (970)748‐4023 RE: EastWest Partners Riverfront Village Lot 4 Phase 01 – Major Development Application Response to Planning and Zoning Commission Review Dear Matt and David, Please accept this letter in response to the Planning and Zoning Commission comments we received on May 5, 2018. Our responses are organized by site and landscape followed by architecture, to align with the order in which we presented the project to the commission. The following sheets have been revised and are included within the re‐submittal package:  Sheet A0.1, Project Information/ Index  Sheet C‐1, Utility Plan  Sheet C‐2, Phase 1 Grading Plan  Sheet C‐2.1, Overall Grading Plan  Sheet C‐3, Erosion Control Plan  Sheet C‐4, Easement Map  Sheet 1, Overall Illustrative Plan  Sheet 2, Landscape Plan  Sheet 3, Site Plan  Sheet 4, Site Sections  Sheet 5, Site Lighting Plan  Sheet 6, Uphill Townhome A (Plans, Elevations, Materials, Roof Plan)  Sheet 7, Uphill Townhome A (3‐D Views, Section, Exterior Light)  Sheet 8, Uphill Townhome A Triplex (Plans, Elevations, Materials, Roof Plan)  Sheet 9, Uphill Townhome A Triplex (3‐D Views, Section, Exterior Light)  Sheet 10, Downhill Townhome B (Plans, Elevations, Materials, Roof Plan)  Sheet 11, Downhill Townhome B Triplex (3‐D Views, Section, Exterior Light)  Sheet 12, Riverfront Lane Streetscape Comparison Site and Landscape Responses:  Sustainable Landscaping: the proposed landscape is predominantly drought tolerant with adaptable plant species chosen for each specific character area of the project, including riparian plant species along the river, xeric perennials along the internal driveway, and shade tolerant plant species along Riverfront Lane. Dispersed and integrated storm water managements is included in the plan via rain gardens in the landscape areas between driveways, where surface Attachment A ZEHREN AND ASSOCIATES ARCHITECTURE  PLANNING  LANDSCAPE ARCHITECTURE  INTERIORS P.O. BOX 1976, Avon, CO 81620  970.949.0257  www.zehren.com run‐off will be diverted. The proposed landscape plan has been prepared to meet LEED certification and an irrigation plan with hydro‐zones meeting the Town’s code will be prepared as part of the building permit application.  Drive‐way turning radii: a specific study of driveway turning movements has been prepared by Alpine Engineering using ‘auto‐turn’ software applying a large suburban vehicles as the test size vehicle. The study demonstrates the majority of driveways work dimensionally for the test size vehicle. In a few instances the study indicated the vehicle’s wheels encroaching into the landscape zones and to mitigate this condition, 12” wide colored concrete edge restraints around the perimeter of the driveways have been added to the plan, to increase the effective area for turning and to serve as a transition and between the asphalt driveway surface and landscape areas. Also one driveway radius has been adjusted to provide greater clearance (the driveway for the eastern most uphill Townhome).  Tree Protection and Removal: significant trees to be preserved and protected and non‐ significant trees to be removed are indicated in the landscape plan. The Applicant will delineate these areas clearly during construction with surveyor’s tape clearly indicating the trees to be protected and removed. In the course of utility and infrastructure work no trees beyond those indicated on the plan will be removed without the approval of the Town, and special efforts will be made to preserve existing vegetation.  Phase One Grading Plan: a grading plan for phase one is included in the re‐submittal package showing the proposed condition across the site associated with Phase One, and specifically how the areas in future phases are to be graded in the interim condition before their development. Architecture Responses:  Building Distances: We have revised the overall Site Plan to comply with the 15‐foot separation distance required between buildings. We have chosen not to pursue an AEC at this time.  Differentiation along Riverfront Lane: We have modified the materials and hues of the following components to help add color and interest to the Riverfront Lane streetscape, along with the other facades: o Window cladding has been modified to a maroon hue, to complement the Westin campus o Stucco color has been changed o Cementitious panel color has been revised o Materials for two of the Riverfront Lane units have been altered, from cementitious panels to stucco o The landscaping along Riverfront Lane has been adjusted, to reduce the regular spacing of the plantings  Definition of Entries: We feel the entries for both the Uphill A Unit and the Downhill C Unit are well‐defined. On the Uphill A Unit, the entries are recessed and separated by an exterior privacy wall; on the Downhill C Units, the entries are defined by flat roof canopies and timber columns. In both cases, these form distinct “front porches” for the residences.  Protection of Wood Siding Near Grade: We have revised the exterior elevations to indicate metal flashing as a base material where wood siding meets the ground. Another option we are exploring is stone veneer in lieu of this metal base. Attachment A ZEHREN AND ASSOCIATES ARCHITECTURE  PLANNING  LANDSCAPE ARCHITECTURE  INTERIORS P.O. BOX 1976, Avon, CO 81620  970.949.0257  www.zehren.com  Full Cut‐Off Exterior Lights: A new exterior light fixture that meets this requirement has been selected, and included within the revised drawings.  View from River (Recreation) Path: We have added stone veneer to the river side of the Downhill C Units, to provide more richness and interest to these facades.  River Elevation Walk‐Out Terraces: We have provided a study illustrating how this can be accomplished. As mentioned during the P&Z Meeting, this will be a buyer option.  Additional Decks for Units: As mentioned above, the option for walk‐out terraces has been provided at the Downhill C Unit. We have elected not to provide additional decks within the floor plans, due to construction budget targets and, in the case of the Uphill A Unit, the already close proximity from Riverfront Lane to the units. Thank you for your continued guidance and feedback during the review as we prepare for the Planning and Zoning Commission hearing scheduled on June 5, 2018. Please let us know if you need any additional clarifications and information. Sincerely, Pedro Campos, RLA / ASLA David Kaselak, AIA Principal, Landscape Architect & Land Planner Principal, Architect Zehren and Associates, Inc. Zehren and Associates, Inc. Cc: Jim Telling, East West Partners Attachment A Riverfront Lodge and Townhomes Riverfront Village Lot 4 Major Development Application Phase 1 Major Development Application Submitted: Lots 4| Riverfront Village PUD April 24, 2018 Application Narrative Attachment A Riverfront Village Lot 4 ‐ Major Development Application Phase 1 2 | Page A. INTRODUCTION The applicant and owner East West Resorts Development XIV, L.P., L.L.L.P., a Delaware limited partnership registered as a limited liability partnership (“EWRD”) is hereby submitting a Major Development Application for a first phase of development of Lot 4 of the Riverfront Subdivision. This narrative accompanies the Development Plan Submittal drawings submitted under separate cover. Drawings include in progress coordinated architectural, site civil, and landscape plans for Phase One. This development application is submitted per the most recent amendment of the Riverside PUD, and is consistent with the amended PUD guide including the density reduction for Lot 4 and the design guidelines and site development standards of the PUD. This application is for a first phase of development of Lot 4 that includes (15) Townhomes. Additional phase(s) will follow to develop (4) more townhomes, a (36) unit, 4-story condominium building with underground parking, and (3) single family residences on the western end of the site at full build out. This application focuses on the particulars of phase one. In addition to the (15) townhomes this includes the development of the majority of utility, infrastructure and roads in Lot 4. The application includes some aspects of the complete project at full build-out to allow a coordinated review of phase one as part of the overall project framework. Sheet 1 of the Development Plan Submittal – Overall Illustrative Plan with Phase 1 boundary indicated (red dash line). Attachment A Riverfront Village Lot 4 ‐ Major Development Application Phase 1 3 | Page B. PROJECT OVERVIEW Project Layout The project proposes a 4 story (36) unit condominium lodge at the eastern end of the site connected to an enclave of (19) townhomes immediately to its west. Primary access to the site is provided by Riverfront Lane. A 16’ wide one-way driveway with traffic flowing east to west internal to the project reduces the amount of paving on the site and serves as the organizing element of the site plan. An entrance and exit on Riverfront Lane is proposed for the drop-off and check-in area in front of the future lodge. The one-way drive originates at the lodge drop-off and provides access to the condominium garage below grade and to the townhomes to the west. (9) uphill townhomes and (10) downhill townhomes are located along the one-way driveway as it winds through the center of site. Uphill and downhill units have been carefully designed to maximize the views from the site to Beaver Creek and the Eagle River to and minimize conflicts between each other. (2) parking spaces per unit are provided including a one car garage and a parking space in the driveway. The project is specifically laid out to respect the 75’ river setback and creates a buffer of landscape between the proposed buildings, the recreation path and river. The project also respects the 10’ setback along Riverfront Lane and creates a landscape buffer between private residences and the public sidewalk. The project has a strong pedestrian orientation based on close proximity and very good pedestrian connectivity to the Westin Riverfront, to the Gondola, to the transit center, to the Main Street Mall, and to Nottingham Park. Attachment A Riverfront Village Lot 4 ‐ Major Development Application Phase 1 4 | Page Pedestrian routes for the project include the sidewalk along Riverfront Lane to the north and the regional recreation trail long the Eagle River to the south. Internal to the site an at-grade concrete sidewalk along the south shoulder of the one-way drive will connect the site east to west. Two crusher fine pervious pathways wind through the property in the north south direction to connect the townhomes to the regional path below. The existing pathway next to Timeshare West connecting Riverfront Lane to the recreation path below is left intact as part of the development. Perhaps most important, a new trail easement is created by the project. A shared trail easement between East West Partners and Eagle River Water and Sanitation District is proposed at the western-most point of Lot 4 to be dedicated to the Town of Avon to connect Nottingham Park and Lake Street to the regional recreation path along the River, fulfilling a long- term connectivity objective of the Town. Attachment A Riverfront Village Lot 4 ‐ Major Development Application Phase 1 5 | Page Above grade decks and at grade patios are proposed in each of the unit types to maximize the view and solar relationships of the site. Landscaping, with emphasis on adaptable and drought tolerant plant species, is proposed strategically in keeping with the Town standards to add interest and complement the architecture, soften the internal road and driveways, screen and create privacy, and serve as drainage and snow storage areas. Attachment A Riverfront Village Lot 4 ‐ Major Development Application Phase 1 6 | Page C. DEVELOPMENT SUMMARY Site Development Calculations: The total area of the site is: 161,180 sf. The total area proposed in Phase One is 68,210 sf or 42% of the total Lot 4 area. Phase One includes (9) uphill townhomes along Riverfront Lane and (6) downhill townhomes below the one-way drive through the site. The site calculations submitted with this application are generated based on the total area included in Phase One. The following are the major site coverage areas associated with Phase One: Total Lot 4 Area: 161,180 SF / 100% Lot Area Phase 1 Site Area: 68,210 SF / 42% of Lot 4 Total Area Phase 1 Building Footprint Area: 14,314 SF (21% of Phase 1 Site Area) Phase 1 Paved Areas: 19,175 SF (28% of Phase 1 Site Area) Phase 1 Landscape Area: 34,721 SF (51% of Phase 1 Site Area) Phase 1 Snow Storage Area: 5,645 SF (29% of Phase 1 Paved Area Following is a Development Summary for Phase One real estate development: Attachment A Riverfront Village Lot 4 ‐ Major Development Application Phase 1 7 | Page D. PRE-APPLICATION SUMMARY A pre-application meeting was held on March 26, 2018 between the project design team and the Town of Avon Planning Manager and Town Engineer to review the path and process for the formal review of the Riverfront Village Lot 4 project by the Town of Avon. The discussion generally fell into (6) topics that were outlined in advance. Following is a summary: 1) Overall plan layout a. the general layout of the project and confirmed the one-way driveway as primary means of access and circulation. b. the general layout of pedestrian circulation was reviewed, and the existing trail along the east side of Lot 4 was discussed as remaining open during the majority of construction. c. Parking supply and distribution was reviewed consistent with the PUD requirements. d. The 75’ river setback was reviewed as a major influence on the layout of the site plan. 2) Proposed easements / easements to be vacated a. Existing easements were reviewed and confirmed. b. The sewer easement in the center of Lot 4 was discussed to be vacated and provided elsewhere in the project due to the project layout. c. A new easement for the trail connection on the west side of the property was discussed. d. The Town confirmed they have approached Eagle River Water and Sanitation District to discuss sharing the easement across their property in conjunction with East West Partners. 3) Phasing of project and permits a. Phasing of the project application and implementation was reviewed with a first phase of development focused on infrastructure, utilities, with development of approximately 12 to 15 townhome residences. b. A follow-up application for the condominium lodge building was discussed, and that it would include the full level of detail for the lodge units and building. c. The comprehensive review of the project was discussed as part of the first phase development submittal to ensure a complete understanding of bulk, mass, and density at full-build out. 4) Infrastructure permit a. A stand-alone infrastructure permit granted in advance of a complete building permit was discussed to enable an initial phase of site development during the summer months. 5) Final plat a. The timing of final platting of Lot 4 was discussed relative to the phasing of the project and development review and approval. The Planning Manager indicated the final plat could take place at any time during the process and would require both Town Council and Planning Commission review. The Final Plat should only take place once all easements are established. 6) DRB application & path of review a. The path and process for the Town’s formal review process was discussed, including a completeness submittal in mid to late April, and review process in May and June of 2018. b. The Planning Manager confirmed a Major Development Application application process and indicated Planning and Zoning Commission and Town Council public hearings required per the Town Code. c. The Planning Manager confirmed the 10 day completeness review of the application once received and the review of the application by the Planning and Zoning Commission against the PUD design guidelines and development standards. Attachment A © 2018 Zehren and Associates, Inc. east west partners 05.25.2018Riverfront Lodge and Townhomes 1OVERALL ILLUSTRATIVE PLAN PLANNING AND ZONING RE-SUBMITTAL - PHASE 01 Scale: 1” = 30’ 0 30’15’60’ FUTURE RIVERFRONT LODGE River f r o n t L a n e Existi n g R a i l r o a d T r a c k s Existing Timeshare West Condos Entry Exit Exit Ea g l e R i v e r Ex i s t i n g E c o - T r a i l TH A TH C FUTURE TH B FUTURE TH B TH C TH C FUTURE RESIDENCES Trail E a s e m e n t (ER W S D / E W P Prop e r t y ) FUTURE RESIDENCE TRI-PLEX A TH A TH A Phase 1 Site Area (63,521 sf) Total Lot 4 Area (161,180 sf) Note: Phase 1 Site Area is 39.4% of Total Lot 4 Area LEGEND Prop o s e d D r i v e w a y Existing PathBldg Type Gross SF / Unit Net SF / Unit Gross SF / Bldg Unit Qty. Total Gross SF Tri-Plex A (1) 2,533 2,048 7,599 3 7,599 Townhome A (3) 2,682 2,231 5,364 6 16,092 Townhome C (3) 2,497 2,127 4,994 6 14,982 PHASE 1 DEVELOPMENT SUMMARY Totals 15 38,673 Attachment B © 2018 Zehren and Associates, Inc. east west partners 05.25.2018Riverfront Lodge and Townhomes 2 NOTES: 1. TREE, SHRUB, AND PERENNIAL PLANTING AREAS ARE TO RECEIVE A MINIMUM OF 3" DEPTH OF BARK MULCH.2. ALL DISTURBED OR RE-GRADED AREAS TO BERE-VEGETATED WITH A NATIVE WILDFLOWER AND GRASS SEED MIX. 3. IRRIGATION SYSTEM TO BE MOISTURE SENSOR AUTOMATED AND TIME CLOCK OPERATED. SHRUBS, TREES, AND PERENNIALS TO BE DRIP OR MICRO SPRAY TYPE IRRIGATION. TURF AREAS TO BE SPRAY HEAD TYPE IRRIGATION WITH HIGH EFFICIENCY SPRAY NOZZLES. .4. SILT FENCE OR HAY BALES ARE TO BE PLACED AT THELIMIT OF CONSTRUCTION AS NEEDED TO PREVENT EROSION AND SEDIMENTATION. A CONSTRUCTION FENCE WILL BE PLACED AT THE LIMIT OF DISTURBANCE WHERE THE SILT FENCE OR HAY BALES ARE NOT USED. Scale: 1” = 20’ 0 20’10’40’ LANDSCAPE PLAN PLANNING AND ZONING RE-SUBMITTAL - PHASE 01 TH A TRI-PLEX A TH A TH A TH C TH B TH B TH C TH C Phase 1 Site Area (63,521 sf) Note: Native Seed Areas to have temporary irrigation for establishment (Native Seed Areas not Included in Irrigation Calculations) LEGEND Landscape Area Provided 29,048 SF 45.7% Phase 1 Site Area Total Irrigated Area 3,861 SF 13.3% of Landscape Area Spray Area (Perennials) 2,634 SF 68.2% of Total Irrigated Area Drip Area (Trees / Shrubs) 1,227 Sf 31.8% of Total Irrigated Area IRRIGATION AREA CALCULATIONS Attachment B © 2018 Zehren and Associates, Inc. east west partners 05.25.2018Riverfront Lodge and Townhomes 3 NOTES: 1. ALL DRIVEWAYS WILL BE ASPHALT PAVING. 2. NO SNOWMELT IS PROPOSED IN THE PHASE 1 AREA 3. ALL SIDEWALKS WILL BE CONCRETE PAVING. 4. TRASH CONTAINERS SHALL BE STORED WITHIN EACH UNIT. (NO EXTERIOR ENCLOSURES PROPOSED) 5. REFERENCE ARCH ELEVATIONS FOR BLDG HEIGHT AND ROOF LINE RIDGE ELEVATIONS SITE CALCULATIONS: Total Lot 4 Area = 161,180 SF Phase 1 Site Area: 63,521 SF Phase 1 Building Footprint Area: 14,310 SF (22.5% of Phase 1 Site Area) Phase 1 Paved Areas: 20,163 SF (31.7% of Phase 1 Site Area) Phase 1 Landscape Area: 29,048 SF (45.7% of Phase 1 Site Area) Phase 1 Snow Storage Area: 5,288 SF (26.2% of Phase 1 Paved Area) BUILDING TYPES UNITS PARKING CALCULATONS (6) DUPLEX 12 Units 2 Per Unit = 24 Off Street Spaces (1) TRI-PLEX 3 Units 2 Per Unit = 6 Off Street Spaces 15 Total Units 30 Total Off Street Spaces 3 Total Unassigned Spaces (On Street) 33 Total Parking Spaces Scale: 1” = 20’ 0 20’10’40’ SITE PLAN PLANNING AND ZONING RE-SUBMITTAL - PHASE 01 Phase 1 Site Area (63,521 sf) Protective Construction Fence (Limit of Disturbance) LEGEND Attachment B © 2018 Zehren and Associates, Inc. east west partners 05.25.2018Riverfront Lodge and Townhomes 4 Site Section 1 - West Site Section 2 - Center Site Section Key Plan NTS River f r o n t L a n e Ea g l e R i v e r Lodge Timeshare West Section 1 Section 2 Section 3 Site Section 3 - East SITE SECTIONS PLANNING AND ZONING RE-SUBMITTAL - PHASE 01 Scale: 1” = 10’-0” 0 10’5’20’ Attachment B © 2018 Zehren and Associates, Inc. east west partners 05.25.2018Riverfront Lodge and Townhomes 5Scale: 1” = 20’ 0 20’10’40’ SITE LIGHTING PLAN PLANNING AND ZONING RE-SUBMITTAL - PHASE 01 FUTURE RIVERFRONT LODGE River f r o n t L a n e Existing Timeshare West Condos Entry Existing Street Light Exit Exit Ea g l e R i v e r Exi s t i n g E c o - T r a i l TH A TH C FUTURE TH B FUTURE TH B TH C TH C FUTURE RESIDENCE TRI-PLEX A TH A TH A Bollard Light - Qty. (15) Street Light Bollard Light Street Light - Qty. (2) TOA Standard LEGEND equipment, etc. furnish by mechanical - refer to both electrical and electrical apparatus as shown on single line diagram and and mechanical drawing for scope and work and additinal infor- Complete connection of HVAC/Plumbing motor(s), water heater(s), Fire alarm system will be by electrical contractor. Complete provision, installation and connection of lighting fixtures, exit signs and lamps as specified and as shown on drawings. Complete branch circuit wiring required for the connection ofemergency lighting and exit signs to existing emergency stand Complete feeder(s) installation as required for new and/or devices, new control devices, etc. for a complete lighting andincluding new panelboards, new conduits, new wires, new wiringComplete wiring system for new lighting and power as shown, contract. Electrical work shall include, but not limited to, these major as indicated on drawing and as specified, as necessary to complete theSCOPE: Furnish all materials and labor required to execute this work 2. 3. 4. 6. 5. Provide grounding and bonding Facilities. Complete all electrical demolition as required. mation. A. ELECTRICAL SPECIFICATIONS 1. drawings. by power system. and power system. b. a. items: A.Contractor shall submit shop drawings for engineer review and approval. Lighting fixtures. Shop drawing submittal shall include: Panelboard(s). CONDUIT AND WIRE:13. A. B. 2.1. and contractor shall have written approvals from building owner prior Core drilling and patching of existing building structure required for Operating, Maintenance and identification instructions manuals, if electrical work. Core drilling shall follow Building Standard procedures Applicable codes: National Electric Code (2008) PERMITS AND FEES: Obtain and pay for all necessary permits, inspec-tions, examinations and fees or charges necessary for execution and and to the requirements of Federal, State or other City agenciesTown of Avon Electrical Code, pertinent NFPA publicationsConform to the prevailing edition and amendments thereto of the SHOP DRAWINGS AND SUBMITTAL: to start of any work. Test of entire system and work. REGULATIONS AND CODES: having jurisdiction. completion of electrical work. 12. 11. A. 7. 9. 8. 10. any. N. All cabling shall be bundled and properly secured and terminated. warranty period shall begin at the point of system acceptance or beneficial system during this warranty period at no additional cost to the owner. The free of defects of workmanship or products and will inspect and repair the from the date of project completion. The contractor warrants the system to be O. The warranty set forth for this system shall consist of a full three (3) years use, whichever comes later. enclosed within cable trays, raceways or conduit, as specified.engineer. Cabling shall be in the wall, above the ceiling or where exposed, M. No exposed wiring will be accepted unless approved in writing by the Care must be taken to ensure cables are not kinked, bent beyond limit, including NEC, EIA/TIA 568,569 and 606, and federal, state and local codes.familiar and install in accordance with all applicable codes and standards, L. All cable hangers shall be no more than 48" apart. Contractor shall be overloaded, over-cinched, crushed, improperly untwisted, etc. A. General Requirements 14. decora style. Finish per owner or architect.Convenience receptacles will be 20 amp, commercial grade Light switches will be 20 amp, commercial grade,B. ELECTRICAL DEVICES A. decora style. Finish per owner or architect. Provide decora style, finish per owner or architect.Dimming switches will be a minimum of 600w or as noted.C. 15. Support all electrical equipment independent of accessible ceilings as required by NEC. SUPPORT A. All mounting heights will conform to ADA guidelines. Typical receptacleD.heights will be +18"AFF and switch heights will be +46"AFFunless noted otherwise. 16. At fire rated wall space electrical boxes at opposite sides of the wall no less than 24" horizontal distance. ELECTRICAL BOXES A. When phone, TV & power receptacles are shown on plan next to each other.Locate respective receptacles next to each other on site with no more B. than 1" seperating cover plates. Provide GFI type receptacles at kitchens, bathrooms, garages, exterior etc. as required by code. E. H/P HEAT/PHOTOELECTRIC SMOKE DETECTOR ELECTRICAL LEGEND (NOT ALL SYMBOLS REQUIRED FOR THIS PROJECT) RECESSED OR SURFACE DOWNLIGHT WALL MOUNTED LIGHT FIXTURE RECESSED FLUOR. LIGHT FIXTURE SURFACE FLUOR. LIGHT FIXTUREAa Aa FIXTURE DESIGNATIONS: UPPER CASE - FIXTURE TYPE LOWER CASE - SWITCH DESIGNATION SHADING ON FIXTURE INDICATES EMERG. BATTERY BACKUP FLUORESCENT STRIP FIXTURE TRACK LIGHT AS NOTED OR SCHEDULED WALL WASHER POLE-MOUNTED FIXTURE POST (BOLLARD) FIXTURE CEILING OR WALL MOUNTED EXIT LIGHT EMERGENCY BATTERY LIGHTS DUPLEX RECEPTACLE @ 18" UNLESS NOTED DOUBLE DUPLEX RECEPTACLE @ 18" UNLESS NOTED SPECIAL OUTLET AS NOTED FLUSH FLOOR DUPLEX RECEPTACLE DUPLEX RECEPTACLE HALF-SWITCHED @ 18" UNLESS NOTED TELE-POWER POLE JUNCTION BOX IN FLOOR, CEILING OR IN WALL MULTI-OUTLET PLUG STRIP COMPUTER/TELEPHONE OUTLET IN FLOOR OR WALL CONDUIT RUN CONCEALED IN WALL OR ABOVE CEILING TELEPHONE BACKBOARD CIRCUIT HOMERUN CONDUIT RUN BELOW FLOOR OR GRADE CONDUIT STUB-UP - CAP & MARK LIGHT SWITCH AT 46" UNLESS NOTEDSUBSCRIPTS:2 = 2-POLE SWITCH3 = 3-WAY SWITCH4 = 4-WAY SWITCH K = KEY-OPERATED SWITCHTO = THERMAL OVERLOAD SWITCHP = SWITCH WITH PILOT LIGHT DIMMER SWITCH W/ WATTAGE MAGNETIC MOTOR STARTER DISCONNECT SWITCH TRANSFORMER GROUND PUSHBUTTON CONTROL STATION PHOTOELECTRIC CELL TIME SWITCH THERMOSTAT AT 60" UNLESS NOTED DIVISION 15 EQUIPMENT CIRCUIT BREAKER MOTOR OUTLET AUTOMATIC TRANSFER SWITCH FOOD SERVICE EQUIPMENT PC TS T ABBREVIATIONS - ABOVE COUNTERACAFF - ABOVE FINISHED FLOOR- ABOVE FINISHED GRADEAFG - ALUMINUMAL - EMERGENCYEM - GROUNDGND- GROUND FAULT INTERRUPTERGFI NIC - NOT IN CONTRACTNL - NIGHT LIGHTNTS - NOT TO SCALE UG - UNDERGROUND WP - WEATHER PROOFXFMR - TRANSFORMER+18" - MOUNTING HEIGHT TO CENTERLINE OF DEVICE AFF OR AFG FIRE ALARM SYSTEM FIRE ALARM CONTROL PANEL FIRE ALARM ANNUNCIATOR PANEL FIRE ALARM PULL STATION ALARM HORN OR SPEAKER COMBINATION HORN/STROBE OR SPEAKER/STROBE THERMAL HEAT DETECTORH SMOKE/IONIZATION DETECTORI PHOTOELECTRIC SMOKE DETECTORP DUCT DETECTOR SPRINKLER SYSTEM FLOW SWITCH SPRINKLER SYSTEM TAMPER SWITCH STROBE SMOKE/FIRE DAMPER CONNECTION REMOTE INDICATOR LIGHT COMMUNICATION SYSTEM SPEAKER IN CEILING OR WALL VOLUME CONTROL AT 60" UNLESS NOTED MICROPHONE OUTLET IN FLOOR BOX OR WALL CALL-IN SWITCH PROGRAM BELL INTERCOM CLOCK AMPLIFIER TELEVISION OUTLET CONTACT DOOR SWITCH IN JAMB OR HINGE SECURITY SYSTEM KEY-OPERATED ACCESS SWITCH SURVEILLANCE CAMERA DISTRIBUTION EQUIPMENT SYMBOLS DISCONNECT SWITCH FUSES CIRCUIT BREAKER CURRENT TRANSFORMER TRANSFORMER METER CU - COPPER STEP LIGHT FACP M = MOTION-OPERATED SWITCH POP-UP RECEPTACLE - ELECTRICAL CONTRACTOREC - AUTHORITY HAVING JURISDICTIONAHJ - MECHANICAL CONTRACTORMC - PLUMBING CONTRACTORPC UTP - UNSHIELDED TWISTED PAIR - GENERAL CONTRACTORGC - REFERENCEREF THE ELECTRICAL CONTRACTOR WILL PROVIDE A WALK THROUGH WITH THEOWNER/ARCHITECT PRIOR TO FINAL ROUGHIN AS FOLLOWS:•CONFIRM ALL LOCATIONS FOR LIGHT SWITCHES; ADD THREE WAYS IFFOUND NECESSARY.•REVIEW RECEPTACLE LOCATIONS; MOVE AS REQUIRED. PROVIDEUNIT PRICING IF ADDITIONAL RECEPTACLES ARE REQUIRED.•REVIEW RECEPTACLE LOCATIONS AT COUNTERS AND CONFIRM IFTHOSE RECEPTACLES SHOULD BE ABOVE COUNTER OR BELOW. MOVEAS REQUIRED.IN GENERAL CONFIRM POWER AND LIGHTING REQUIREMENTS. THEELECTRICIAN SHOULD BE PREPARED TO REWORK SOME DEVICE LOCATIONS.SIGNIFICANT REWORK SHOULD BE FLAGGED AND UNIT PRICING PROVIDEDAND WRITTEN AUTHORIZATION FOR ADDITIONAL COSTS APPROVED PRIORTO PROCEEDING. CONDUCTOR SIZES AND TYPES: For sizes #1/0 AWG and larger, usecoppper THW or aluminum XHHW. For sizes #1 AWG and smaller, use only copper wire with 600V insulation, types TW, THHN, or THW - stranded in sizes #8 and larger, solid in sizes #10 and smaller. Control wiring shall be #14,stranded. Use type THHN for wires entering or passing through fluorescent lighting fixtures. All motors shall be wired with copper conductors only. UNO - UNLESS NOTED OTHERWISE 48" WIRE PANCAKE.10-TURNS OF #4 BARE COPPERGROUND PLATE (COPPER) OR TWO LAYERS #15 FELT 8x8 WIRE BASKET CONDUIT & WIRING #4 VERTICAL REBARS (6 REQ'D) NO SCALE POLE BASE DIAGRAM 24" DIA FIXTURE TYPE "LF-A" GROUND LEVEL 30" WIRE PANCAKE.10-TURNS OF #4 BARE COPPERGROUND PLATE (COPPER) OR TWO LAYERS #15 FELT 8x8 WIRE BASKET CONDUIT & WIRING #4 VERTICAL REBARS (6 REQ'D) NO SCALE POLE BASE DIAGRAM 12" DIA FIXTURE TYPE "LF-B" GROUND LEVEL A 3/21/14 50% DD REVIEW B 4/4/14 90% DD REVIEW C 4/25/14 50% CD REVIEW Copyright © 2014 by Zehren & Associates Inc.C 5/9/14 90% CD REVIEW D 5/15/14 BID SET Submitting Agency:Description:3120 42 LED WHT53K MVOLT FT PL DSPFGProject:AVON ROAD STATUE & PED MALL - PEDESTRIAN MALLNotes: Type:LF-B ©2014 Acuity Brands Lighting, Inc. 7/11/143120_LED 9144 Deering Avenue, Second Floor • Chatsworth, CA 91311 • www.hydrel.com Phone: 866.533.9901 • Fax: 866.533.5291 ORDERING INFORMATION EXAMPLE: 3120 36 LED WHT53K MVOLT SYM BL DESCRIPTIONThe 3120 BOLLARD is a low level area lighting luminaire that combines visual appeal with superior performance and unequalled quality. It is designed to work in building perimeter areas and public spaces completing a wide variety of architectural styles. Superior performance extends to the detailed finish of the louvers. Matte black finish of top surface provides IES cut off performance while gloss white on bottom extends reflective light to economize on spacing of fixtures. Custom finish available on top louver surface. CATALOG NUMBER NOTES TYPE NOTE: Hydrel Reserves The Right To Modify Specification Without Notice. Any dimension on this sheet is to be assumed as a reference dimension: “Used for information purposes only. It does not govern manufacturing or inspection requirements.” (ANSI Y14.5-1973) 3120 LEDRound LouverBollard Flat 3120 36 LED WHT53K Model Height LED Array Color 3120 36 42 LED WHT30K 3000ºK Color Temp WHT53K 5300ºK Color Temp MVOLT SYM BL Voltage Distribution Options4 Finish 1202 2772 347 MVOLT Internal FT5 Forward Throw, 180º SYM Symmetric, 360º BLS6 Bi-Level Switching (Motion Activated) GFCI3 Receptacle ELN6 Emergency Battery Backup (1000 lumen output) BL Black BZ Bronze DDB Dark Bronze DNA Natural Aluminum GN Green GR Gray SND Sand STG Steel Gray TVG Terra Verde Green WH White CF Custom __Z7 Zinc Undercoat (i.e. BLZ) Optional Louvers Painted1 ___/PL Louvers painted to match fixture (top only) The 3120 BOLLARD offers a patented impact resistant mounting and leveling design ensuring life long performance. Four leveling pads within the base mounting plate are easily accessible through the access panel. The leveling pads provide full contact with the concrete pad, providing a high degree of stability. The base mounting plate is fully welded to the bollard post, providing complete structural support from all directions, giving the bollard superior vandal resistance. Motion Sensing Bi-Level Switching (BLS option) is now possible through the use of a fixture-integrated microwave occupancy sensor. Mounted in the head of the fixture, within the sealed light engine compartment, the sensor is protected from moisture damage, as well as potential damage due to vandalism. The sensor provides up to 20’ of motion coverage in the 360 deg area around the bollard (see diagram on the next page). When motion is detected bollard will illuminate at full output (60 Watts). After approx 5 min, bollard will drop to 1/4 full output (15 Watts). MATERIAL: Copper-free Aluminum, A360. LED ARRAY: 60.3W (total system input wattage) Lumen maintenance of individual light sources have been independently tested to IESNA LM-80 standards. VOLTAGE: MVOLT 50/60Hz DISTRIBUTION: SYM Symmetric, FT Forward Throw. LENS: Frosted Borosilicate Glass. BALLAST: Integrally mounted LED driver with operating temperature of -30° to 60°C. FASTENERS: Stainless Steel. FINISH: See ordering guide. LISTING: CSAUS, CSA FEATURES & SPECIFICATIONS Specifications L:8” 203 mm W:9” Dia. 229 mm H:40” or 34” 1016 mm or 864 mm Notes:1 Louvers will be black unless otherwise specified (top only). 2 Only valid with ELN or BLS. 3 Only valid with 120 Volt. 4 Options not valid with 50Hz. 5 FT not available with BLS. 6 ELN and BLS require 120 or 277 voltage, not MVOLT or 347. Choose only one.7 Add Zinc undercoat for harsh environments. Top 6" 8" 9" Dia. 40"34" 8" 36"LCL30"LCL 9" Top 6" 8" 9" Dia. 40"34" 8" 36"LCL30"LCL 9" Top 6" 8" 9" Dia. 40"34" 8" 36"LCL30"LCL 9" THE LIGHTING AGENCY TYPE CATALOG NUMBER NOTES THE LIGHTING AGENCY TYPE CATALOG NUMBER NOTES CONTRACTOR TO VERIFY: Voltage: Colors/ Finishes: Ceiling Type: Specific Dimming Ballasts (if required): Row Information: Switching Options: Suspension Lengths: Other: DSPFG DSPFG -RUST Phase 1 Site Area (63,521 sf) Attachment B © 2018 Zehren and Associates, Inc. 05.25.2018Riverfront Lodge and Townhomeseast west partners 6PLANNING & ZONING RE-SUBMITTAL | PHASE 01 UPHILL TOWNHOME A - DUPLEX | 3BR UNIT Exposed Timber Structure 1/8” = 1’-0” ENTRY ELEVATION 1/8” = 1’-0” SIDE ELEVATION Channel Rustic Cedar Siding Metal and Wood Guardrail Standing Seam Metal Roof Accents Metal Fascia Fiber Cement Panel (Nichiha) Wood-Metal Clad Windows (Sierra Pacific) Adhered Thinstone (Telluride Stone - “Sebastian Sawn”) Exposed Timber Structure Channel Rustic Cedar Siding Metal Fascia Fiber Cement Panel (Nichiha) Wood-Metal Clad Windows (Sierra Pacific) Adhered Thinstone (Telluride Stone - “Sebastian Sawn”) or Stained Concrete Fiber Cement Panel (Nichiha) Adhered Thinstone (Telluride Stone - “Sebastian Sawn”) Cementitious Stucco (Integral Color) Channel Rustic Cedar Siding 1/8” = 1’-0” LOWER LEVEL FLOOR 1/8” = 1’-0” MAIN LEVEL FLOOR PLAN 1/8” = 1’-0” UPPER LEVEL FLOOR PLAN 898 SF (SALEABLE) 1,041 SF (SALEABLE) TOTAL | 2,231 SF 292 SF (SALEABLE) Metal and Wood Guardrail 1/8” = 1’-0” ROOF PLAN 1/8” = 1’-0” REAR ELEVATION Metal Corner Trim Westin-Style Chimney Caps Westin-Style Chimney Caps Adhered Thinstone (Telluride Stone “Sebastian Sawn”) Fiber Cement Panel (Nichiha “ ArchitecturalBlock™”) Channel Rustic Cedar Siding (Stained) Metal Corner Trim (XtremeTrim) Cementitious Stucco (Integral Color) Composit Shingles (Timberline HD) Standing Seam Metal Roof (Berridge) +122-0” +111-0” +100-0” Existing Grade Existing Grade Existing Grade Cementitious Stucco (Integral Color) Proposed Grade Standing Seam Metal Roof (Berridge)11’-0”~+139-10”11’-0”~17’-10”~+137-3” +122-0” ~+131-7” +111-0”11’-0”~9’-7”~5’-8”Proposed Grade Proposed Grade Sconce +100’-0” DATUM = 7419.5’ ABOVE SEA LEVEL Wood-Metal Clad Windows (Sierra Pacific “Harvest Cranberry”) Attachment B © 2018 Zehren and Associates, Inc. 05.25.2018Riverfront Lodge and Townhomeseast west partners 7PLANNING & ZONING RE-SUBMITTAL | PHASE 01 UPHILL TOWNHOME A - DUPLEX | 3BR UNIT NTS SOUTHWEST VIEW NTS SOUTHEAST VIEW NTS NORTHWEST VIEW 1/8” = 1’-0” BUILDING SECTION Existing Grade Proposed Grade NTS PROPOSED EXTERIOR FIXTURE Sonneman - flat box™ LED Panel Sconce 7” 6” 17” 2” 2 1/2” Attachment B © 2018 Zehren and Associates, Inc. 05.25.2018Riverfront Lodge and Townhomeseast west partners 8PLANNING & ZONING RE-SUBMITTAL | PHASE 01 Exposed Timber Structure Channel Rustic Cedar Siding Metal and Wood Guardrail Metal Fascia Adhered Thinstone (Telluride Stone - “Sebastian Sawn”) Channel Rustic Cedar Siding Fiber Cement Panel (Nichiha) 1/8” = 1’-0” LOWER LEVEL FLOOR PLAN 268 SF (SALEABLE) Wood-Metal Clad Windows (Sierra Pacific) Standing Seam Metal Roof Accents UPHILL TOWNHOME A - TRIPLEX | 3BR UNIT 1/8” = 1’-0” ENTRY ELEVATION 1/8” = 1’-0” SIDE ELEVATION 1/8” = 1’-0” ROOF PLAN 1/8” = 1’-0” REAR ELEVATION Westin-Style Chimney Caps Westin-Style Chimney Caps 1/8” = 1’-0” UPPER LEVEL FLOOR PLAN 835 SF (SALEABLE) 1/8” = 1’-0” MAIN LEVEL FLOOR PLAN 945 SF (SALEABLE) TOTAL | 2,048 SF Adhered Thinstone (Telluride Stone - “Sebastian Sawn”) Cementitious Stucco (Integral Color) Adhered Thinstone (Telluride Stone “Sebastian Sawn”) Cementitious Stucco (Integral Color) Fiber Cement Panel (Nichiha) Channel Rustic Cedar Siding Fiber Cement Panel (Nichiha) +122-0” +111-0” +100-0” Existing Grade Existing Grade Existing Grade Adhered Thinstone (Telluride Stone “Sebastian Sawn”) Fiber Cement Panel (Nichiha “ ArchitecturalBlock™”) Channel Rustic Cedar Siding (Stained) Metal Corner Trim (XtremeTrim) Cementitious Stucco (Integral Color) Composite Shingles (Timberline HD) Standing Seam Metal Roof (Berridge) Proposed Grade Standing Seam Metal Roof (Berridge) Timber or Steel Columns 11’-0”11’-0”~+139-10”~17’-10”~+137-3” +122-0” ~+131-7” +111-0”~9’-7” ~5’-8” Proposed Grade Proposed Grade 11’-0”Sconce +100’-0” DATUM = 7421.5’ ABOVE SEA LEVEL Wood-Metal Clad Windows (Sierra Pacific “Harvest Cranberry”) Attachment B © 2018 Zehren and Associates, Inc. 05.25.2018Riverfront Lodge and Townhomeseast west partners 9PLANNING & ZONING RE-SUBMITTAL | PHASE 01 NTS SOUTHWEST VIEW NTS SOUTHEAST VIEW NTS NORTHWEST VIEW 1/8” = 1’-0” BUILDING SECTION UPHILL TOWNHOME A - TRIPLEX | 3BR UNIT NTS PROPOSED EXTERIOR FIXTURE Existing Grade Proposed Grade Sonneman - flat box™ LED Panel Sconce 7” 6” 17” 2” 2 1/2” Attachment B © 2018 Zehren and Associates, Inc. 05.25.2018Riverfront Lodge and Townhomeseast west partners 10PLANNING & ZONING RE-SUBMITTAL | PHASE 01 1/8” = 1’-0” LOWER LEVEL FLOOR PLAN 1/8” = 1’-0” MAIN LEVEL FLOOR PLAN 1/8” = 1’-0” UPPER LEVEL FLOOR PLAN 1/8” = 1’-0” ENTRY ELEVATION 1/8” = 1’-0” SIDE ELEVATION Exposed Timber Structure Channel Rustic Cedar Siding Metal and Wood Guardrail Metal Fascia Adhered Thinstone (Telluride Stone - “Sebastian Sawn”) Cementitious Stucco (Integral Color) Cementitious Stucco (Integral Color) Exposed Timber Structure Channel Rustic Cedar Siding Metal Fascia Cementitious Stucco (Integral Color) Wood-Metal Clad Windows (Sierra Pacific) Cementitious Stucco (Integral Color) 622 SF (SALEABLE) TOTAL | 2,127 SF 1,037 SF (SALEABLE) 468 SF (SALEABLE) Wood-Metal Clad Windows (Sierra Pacific) Wood-Metal Clad Windows (Sierra Pacific) DOWNHILL TOWNHOME C | 3BR UNIT 1/8” = 1’-0” ROOF PLAN 1/8” = 1’-0” REAR ELEVATION Westin-Style Chimney Caps Westin-Style Chimney Caps Existing Grade Proposed Grade Existing Grade+100-0” +111-0” +122-0”+122-0” Adhered Thinstone (Telluride Stone “Sebastian Sawn”) Fiber Cement Panel (Nichiha “ ArchitecturalBlock™”) Channel Rustic Cedar Siding (Stained) Metal Corner Trim (XtremeTrim) Cementitious Stucco (Integral Color) Composite Shingles (Timberline HD) Standing Seam Metal Roof (Berridge) Wood-Metal Clad Windows (Sierra Pacific “Harvest Cranberry”) Existing Grade Cementitious Stucco (Integral Color) Proposed Grade Proposed Grade 11’-0”11’-0”~18’-0”~+140-0”11’-0”~12’-8”~+134-8” ~+138-8” ~+4-0” Sconce +111-0” +100’-0” DATUM = 7411.2’ ABOVE SEA LEVEL6’-2”(146’-2” BLDG HT) Standing Seam Metal Roof Accents Adhered Thinstone (Telluride Stone - “Sebastian Sawn”) Attachment B © 2018 Zehren and Associates, Inc. 05.25.2018Riverfront Lodge and Townhomeseast west partners 11PLANNING & ZONING RE-SUBMITTAL | PHASE 01 NTS SOUTHWEST VIEW NTS NORTHWEST VIEW NTS NORTHEAST VIEW 1/8” = 1’-0” BUILDING SECTION DOWNHILL TOWNHOME C | 3BR UNIT Existing GradeProposed Grade NTS PROPOSED EXTERIOR FIXTURE Sonneman - flat box™ LED Panel Sconce 7” 6” 17” 2” 2 1/2” Attachment B © 2018 Zehren and Associates, Inc. 05.25.2018Riverfront Lodge and Townhomeseast west partners 12PLANNING & ZONING RE-SUBMITTAL | PHASE 01 RIVERFRONT LANE STREETSCAPE COMPARISON Uphill Townhome A - TriplexUphill Townhome A - Duplex Uphill Townhome A - Duplex Uphill Townhome A - Duplex Uphill Townhome A - TriplexUphill Townhome A - Duplex Uphill Townhome A - Duplex Uphill Townhome A - Duplex ORIGINAL STREETSCAPE PROPOSED STREETSCAPE Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Louise Duncan, Interim Manager of Special Events Meeting Date: June 12, 2018 Agenda Topic: PUBLIC HEARING LETTUCE PATCH PRODUCTIONS LLC APPLICATION FOR OUTDOORS USE OF SOUND AMPLIFICATION SYSTEM FOR THE LAKE STREET MARKET JUNE 20, 27, AUGUST 8, 15, 22, 29, SEPTEMBER 5, AND 12, 2018 ACTION BEFORE COUNCIL The Town Council is asked to consider approving an Amplified Sound Permit on June 12, 2018 as requested by Lettuce Patch Productions, LLC. PROPOSED MOTION I move to approve (or approve with conditions or deny) the Amplified Sound Permit for the Lake Street Market on Lake Street on Wednesday June 20, 27, August 8, 15, 22, 29, September 5, and 12, 2018. BACKGROUND Ordinance 15-07 amending AMC 5.24, Section 9.12.080 provides the framework for issuing this type of permit. The Council, in making its decision to issue the Amplified Sound Permit, may consider the following: 1.1. Comments by the public. 1.2. Necessity of the permit for the cultural, historical or social benefit of the community. 1.3. Proximity of the proposed location to residential neighborhoods. 1.4. Proposed direction of sound projection. 1.5. Screening of sound from neighboring properties. 1.6. Compatibility with other uses and activities in the vicinity. The Town Council may prescribe any conditions or requirements deemed necessary to minimize adverse effects upon the community or surrounding neighborhood. ATTACHMENTS ✓ Application for Outdoor Use of Amplified Sound Equipment ✓ Diagram of Proposed Location of Sound Amplification Equipment TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Louise Duncan, Interim Manager of Special Events Meeting Date: June 12, 2018 Agenda Topic: PUBLIC HEARING PEAK PERFORMANCES INC APPLICATION FOR OUTDOORS USE OF SOUND AMPLIFICATION SYSTEM FOR AVON LIVE! JULY 11, 18, 25, AND AUGUST 1, 2018 ACTION BEFORE COUNCIL The Town Council is asked to consider approving an Amplified Sound Permit on June 12, 2018 as requested by Peak Performances Inc. PROPOSED MOTION I move to approve (or approve with conditions or deny) the Amplified Sound Permit for the Avon LIVE! concert series in Harry A. Nottingham Park on Wednesday July 11, 18, 25, and August 1, 2018. BACKGROUND Ordinance 15-07 amending AMC 5.24, Section 9.12.080 provides the framework for issuing this type of permit. The Council, in making its decision to issue the Amplified Sound Permit, may consider the following: 1.1. Comments by the public. 1.2. Necessity of the permit for the cultural, historical or social benefit of the community. 1.3. Proximity of the proposed location to residential neighborhoods. 1.4. Proposed direction of sound projection. 1.5. Screening of sound from neighboring properties. 1.6. Compatibility with other uses and activities in the vicinity. The Town Council may prescribe any conditions or requirements deemed necessary to minimize adverse effects upon the community or surrounding neighborhood. ATTACHMENTS ✓ Application for Outdoor Use of Amplified Sound Equipment ✓ Diagram of Proposed Location of Sound Amplification Equipment 1 Permit Application & Muicipal Code for Outdoor Use of Amplified Sound Systems PERMIT APPLICATION FOR OUTDOORS USE OF SOUND AMPLIFICATION SYSTEM 1.NAME OF APPLICANT:________________________________________________________________ 2.REPRESENTING BUSINESS/ORGANIZATION :_________________________________________________ ADDRESS AND/OR MAILING ADDRESS: _________________________________________________________________________________ 3.ADDRESS OF PREMISE OR LOCATION WHERE SOUND IS TO BE PRODUCED:______________________________ _________________________________________________________________________________ 4.TELEPHONE NUMBER: _____________________ 5.EMAIL ADDRESS: _________________________ 6.PURPOSE FOR OUTDOOR USE OF SOUND AMPLIFICATION SYSTEM: ____________________________________ _______________________________________________________________________________ DATE/S OF PROPOSED USE: _________________ TIME/S OF PROPOSED USE: __________________ 7.ATTACH A MAP OR DIAGRAM DEPICTING THE PROPOSED LOCATION OF SOUND AMPLIFICATION EQUIPMENT, DIRECTION OF SOUND PROJECTION AND POTENTIAL SOUND PROJECTION DISTANCE. 8.DESCRIPTION OF SOUND AMPLIFYING EQUIPMENT:______________________________________________ SIGNATURE OF APPLICANT DATE THE PERMIT APPLICATION IS APPROVED BY THE TOWN OF AVON AS NOTED BY THE SIGNATURES BELOW. THE APPLICANT MUST COMPLY WITH CHAPTER 5.24 OF THE AVON MUNICIPAL CODE AS OUTLINED ON THE BACK OF THIS APPLICATION. ___________________________________________________________________________ TOWN CLERK DATE __________________________________________________________________________ SPECIAL EVENTS STAFF DATE __________________________________________________________________________ AVON POLICE CHIEF OR DESIGNEE DATE TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Eva Wilson, Mobility Director Meeting Date: June 12, 2018 Topic: APPROVAL OF AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE EAGLE COUNTY SCHOOL DISTRICT RE-50J AND THE TOWN OF AVON ACTION BEFORE COUNCIL: Council is asked to approve the attached Intergovernmental Agreement between Eagle County School District RE-50J and the Town of Avon, which allows for school buses to utilize bus stops at Eaglebend and Buffalo Ridge. PROPOSED MOTION: “I move to approve an Intergovernmental Agreement between Eagle County School District RE-50J and the Town of Avon.” SUMMARY: The term of the Agreement continues until either party gives notice (30 days) or fails to substantially perform the duties and obligations of the Agreement. ATTACHMENT: IGA between the Eagle County School District RE-50J and the Town of Avon IGA: Eagle County School District-Town of Avon re: Bus Stops May XX, 2018 Page 1 of 3 INTERGOVERNMENTAL AGREEMENT Between Eagle County School District RE-50J and the Town of Avon This Intergovernmental Agreement (“Agreement”) by and between the Eagle County School District RE-50J (“District”) and the Town of Avon, a Colorado home rule municipality (“Avon”), (individually a “Party” and collectively the “Parties”), is made on June 12, 2018. WHEREAS, the District is hereby requesting the use and sharing, from Avon, of Avon’s transit bus stops located at: Buffalo Ridge and Eaglebend, Colorado (“Bus Stops”); and WHEREAS, Avon is the local traffic regulatory authority on municipal streets; and WHEREAS, the District ensures that said Bus Stops are in compliance with § 42-4-1904(1), C.R.S.; and WHEREAS, the District has scheduled the above listed bus stops so that no students are crossing the roadway and therefore, the buses’ 4-way hazard lamp system is sufficient as a warning for passing motorists that the bus is either receiving or discharging students; and WHEREAS, the use of the 4 way hazards lamps are sufficient and will not impede local area traffic; and WHEREAS, C.R.S. §29-20-101 et seq. enables the Parties to enter into intergovernmental agreements and authorizes each of the Parties to perform the functions described herein, as provided in C.R.S. §29-20-105. NOW THEREFORE THE PARTIES AGREE AS FOLLOWS: 1. USE OF BUS STOPS. Avon hereby authorizes the District’s transportation department to receive and discharge students at the Bus Stops. The District agrees to comply at all times with C.R.S. § 42-4-1901 et seq. and other applicable laws and regulations during the term of this Agreement. 2. EMERGENCY NOTICE. In case of an emergency, the Parties have provided the following primary contacts. Eva Wilson, Mobility Director Office 970-748-4111 Cell 970-390-2014 Fax 970-845-8589 E-Mail Address: ewilson@avon.org Sandra Mutchler, Chief Operations Officer Eagle County Schools Office: 970-328-2747 IGA: Eagle County School District-Town of Avon re: Bus Stops May XX, 2018 Page 2 of 3 Cell: 970-435-5939 Fax: 970-328-1024 E-Mail Address: 3. EMERGENCY INFORMATION. Avon shall safeguard the use of and access to information regarding any emergency situations involving the District, provided that Avon shall at all times comply with the Colorado Open Records Act, CRS § 24-72-201 et. seq. 4. TERM AND TERMINATION. This Agreement will be effective as of the effective date stated above and will continue until terminated. If either Party fails to substantially perform the duties and obligations set forth in this Agreement, either Party may terminate this Agreement upon seven (7) days written notice to the other Party, unless that Party cures the breach within the seven (7) day remedy period. Either Party may terminate this Agreement without cause upon providing thirty (30) days written notice to the other Party. 5. MODIFICATION. This Agreement contains the entire agreement between the Parties, and no agreement shall be effective to change, modify, or terminate in whole or in part unless such agreement is in writing and duly signed by the Party against whom enforcement of such change, modification, or termination is sought. 6. INTERPRETATION. This Agreement shall be interpreted under applicable Colorado law. 7. LIABILITY. The District, its officers and employees, shall not be deemed to assume any liability for intentional or negligent acts, errors, or omissions of Avon or of any officer or employee thereof. Likewise, Avon, its officers and employees, shall not be deemed to assume any liability for intentional or negligent acts, errors or omissions of the District or by any officer or employee thereof. 8. 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 Avon or the District, its officials, employees, contractors, or agents, or any other person acting on behalf of Avon or the District and, in particular, governmental immunity afforded or available pursuant to the Colorado Governmental Immunity Act, C.R.S. § 24-10-101 et seq. 9. NO THIRD PARTY BENEFICIARIES. Nothing contained in this Agreement is intended to or shall create a contractual relationship with, cause of action in favor of, or claim for relief for, any third party, including any agent, sub-consultant or sub-contractor of Avon or District. Absolutely no third party beneficiaries are intended by this Agreement. Any third- party receiving a benefit from this Agreement is an incidental and unintended beneficiary only. IGA: Eagle County School District-Town of Avon re: Bus Stops May XX, 2018 Page 3 of 3 EAGLE COUNTY SCHOOL DISTRICT RE-50J __________________________________________________ _________________ Name / Title Date ATTEST _____________________________________ Secretary TOWN OF AVON __________________________________________________ _________________ Jennie Fancher, Mayor Date ATTEST _____________________________________ Debbie Hoppe, Town Clerk APPROVED TO FORM: _____________________________________ Eric J. Heil, Town Attorney TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Justin Hildreth, Town Engineer Meeting Date: June 12, 2018 Topic: Approval for Renewable Energy Credit Sale and Assignment Contract and Generator Interconnection Agreement with Holy Cross Energy for Photovoltaic Panels Located on New Town Hall ACTION BEFORE COUNCIL Council is asked to approve the Renewable Energy Credit Sale and Assignment Contract and Generator Interconnection Agreement with Holy Cross Energy for Photovoltaic Panels Located on New Town Hall. PROPOSED MOTION “I move to approve the Renewable Energy Credit Sale and Assignment Contract and Generator Interconnection Agreement with Holy Cross Energy for Photovoltaic Panels Located on New Town Hall.” SUMMARY A Photovoltaic Solar Generating Facility (PV Facility) is being installed on the roof of the new Town Hall and Holy Cross Energy requires the Renewable Energy Credit Sale and Assignment agreement to be executed in order obtain energy credits for surplus energy generation and for the Town to receive an incentive of approximately $28,121.21. To be eligible for the incentive, the Town must agree to operate the PV facility for 20-years after the commissioning date. The accompanying Generator Interconnection Agreement outlines the terms to connect the PV facility to the Holy Cross electrical system and is in full force for a period of one (1) year and will remain in effect each year thereafter, unless terminated by either party. BUDGET IMPLICATIONS The agreements will provide the town with a Holy Cross incentive in the amount of $28,121.21 that off-sets the $96,118 installation cost bore by the Town of Avon. ATTACHEMENTS A- Renewable Energy Credit Sale and Assignment Contract B- Generator Interconnection Agreement 3799 HIGHWAY 82∙P.O. DRAWER 2150 GLENWOOD SPRINGS, COLORADO 81602 (970) 945-5491∙FAX (970) 945-4081 Revised May 9, 2014 Page 1 of 3 Renewable Energy Credit Sale and Assignment Contract This Renewable Energy Credit Sale and Assignment Contract (hereafter “Contract” is made and entered into this twelfth day of June, 2018, by and between Holy Cross Electric Association, Inc., dba Holy Cross Energy (“Holy Cross”), a Colorado cooperative electric association, whose address is 3799 Highway 82, Glenwood Springs, CO 81601, and Town of Avon, a Colorado Home Rule Municipality (“Consumer”), whose electric service address is 100 Mikaela Way, Avon, CO 81620 (the “Service Address”). The parties to this Contract may each hereinafter be referred to individually as “Party” or both referred collectively as the “Parties.” In consideration of the mutual covenants set forth herein, the Parties agree as follows: 1. Definitions. Unless otherwise defined herein, all capitalized terms shall use the definitions in the Generator Interconnection Agreement executed in conjunction with this Agreement. 2. Sale and Assignment. Consumer agrees to grant, sell, convey and assign, and Holy Cross agrees to purchase and accept from Consumer, in exchange for the consideration set forth in Section 3 below, all Renewable Energy Credits (“RECs”1) generated by the Generating Facility at the Service Address for the longer of a term of twenty years from the Commissioning Date listed or while the Generating Facility is interconnected to Holy Cross’ distribution system. Holy Cross shall be entitled to all right, title and interest in and associated with such RECs including all REC reporting rights. Consumer warrants that it has not claimed ownership of the RECs or sold the RECs to or exchanged the RECs with any other person or entity, such sale and assignment being the first and only sale and assignment of the RECs by Consumer. Consumer shall not claim ownership of the RECs and Consumer shall not sell the RECs to or exchange the RECs with any other person or entity. 3. Compensation. Holy Cross will pay an amount calculated in accordance with the rules of Holy Cross’ Renewable Incentive Program at the date all requirements of the Generator Interconnection Policy are met. Consumer acknowledges and agrees that such payment constitutes full and complete consideration for the sale and assignment of RECs described in this Contract. Consumer waives on behalf of itself, its successors and assigns, including any subsequent purchaser of the premises at the Service Address, 1 "Renewable Energy Credit" or “REC” means a contractual right to the full set of Green Attributes resulting from one megawatt-hour (MWh) of electric energy generated from an Eligible Energy Resource, as further provided in regulations adopted pursuant to C.R.S. § 40-2-124, currently set forth at 4 CCR 733-3, Rule 3652(n), as may be amended from time to time or as further defined or supplemented by Law. "Green Attributes" mean the full set of environmental, power source and emissions characteristics, whether in the form of credits (including Renewable Energy Credits), benefits, emissions reductions, offsets, allowances or by any other designation, attributable to the generation of electric energy from the Facility. Green Attributes include but are not limited to (1) any avoided emissions of carbon dioxide (CO2), methane (CH4), nitrous oxide, hydrofluoro carbons, perfluoro carbons, sulfur hexafluoride and other greenhouse gases (GHGs) that have been determined by the United Nations Intergovernmental Panel on Climate Change as of the effective date of this agreement, or otherwise under Law, to contribute to the actual or potential threat of altering the Earth's climate by trapping heat in the atmosphere, (2) any avoided emissions of sulfur oxides (Sox), nitrogen oxides (Nox) and carbon monoxide (CO), and of any other pollutant of the air, soil or water (other than GHGs) that is now regulated under Law, including as part of any renewable portfolio standard, or tradable under any registration or trading program; and (3) the right of HCE as the owner or prospective owner of Green Attributes to report the ownership of accumulated Green Attributes to any agency, authority or other party, including without limitation those Green Tag Reporting Rights accruing under Section 1605(b) of The Energy Policy Act of 1992 and any present domestic, international or foreign Law, renewable portfolio standard or registration or trading program. One MWh of energy output generated from the Facility is assumed to be the equivalent to one unit of Green Attributes, subject to applicable Law, standards or trading program requirements. Green Attributes do not include: (i) any energy, capacity, reliability or other power attributes from the Facility; (ii) production tax credits associated with the construction or operation of the energy projects and other financial incentives in the form of credits, reductions, or allowances associated with the project that are applicable to a state or federal income taxation obligation; or (iii) fuel-related subsidies or "tipping fees" that may be paid to Seller to accept or dispose of certain fuels, or local subsidies received by the generator for the destruction of particular pre-existing pollutants or the promotion of local environmental benefits. ATTACHMENT A - RENEWABLE ENERGY CREDIT SALE AND ASSIGNMENT CONTRACT Revised May 9, 2014 Page 2 of 3 any right to claim ownership of, or a right to additional compensation for, the RECs sold and transferred under Section 2 of this Contract. 4. Representations. Consumer hereby makes the following representations and warranties to HCE: a. Consumer warrants that the person executing this Contract is the owner of the Generating Facility, and is duly authorized and legally competent to execute this Contract and to bind Consumer to the terms hereof. b. Consumer receives electric service from Holy Cross at the address set forth above, and is the person in whose name electric service is listed at the Service Address or is the legally authorized representative of such person. 5. Additional Terms and Conditions. a. Consumer agrees that (i) it shall provide a copy of this Contract to any subsequent purchaser of or successor in interest to Consumer’s premises at the Service Address, pursuant to subsection 5(e) below and (ii) it shall notify Holy Cross in the event of sale or removal of the Generating Facility equipment from Consumer’s premises, including the name, address and telephone number of the purchaser of or successor in interest to the premises and/or the removed equipment. b. The Consumer shall maintain the Generating Facility and the individual components of the system in good working order at all times during the term of this Contract. Consumer shall operate the Generating Facility in accordance with (i) the Holy Cross Energy Generator Interconnect Agreement; and (ii) any original equipment manufacturer (OEM) manuals, copies of which shall be furnished to Holy Cross upon demand. If during the term of this Contract the Generating Facility or any of the individual components of the system should be damaged or destroyed, the Consumer shall promptly repair or replace the equipment to its original specification, tilt and orientation at the Consumer’s sole expense. c. In the event that Consumer removes the Generating Facility, or the Generating Facility permanently ceases energy production prior to the end of the term of this Contract, or this Contract is terminated by Holy Cross due to breach by Consumer of Section 4(b) or any other provision of this Contract; then Holy Cross may at its sole discretion recover from the Consumer [and in the event of such demand to Consumer, Consumer shall pay to Holy Cross] all or a portion of the REC incentive payment pro-rated over the then remaining Contract term together with all costs of collection including attorney fees. d. This Contract and the terms contained in the Contract shall be binding upon, shall inure to the benefit of and shall be enforceable against the parties’ successors and assigns. Any purchaser of or successor in interest to Consumer’s premises on which the Generating Facility is located shall be deemed to be an assignee of this Contract and shall be bound by the terms hereof. This Contract shall be governed by and interpreted in accordance with the laws of the State of Colorado. This Agreement may be executed in two or more counterparts, each of which is deemed original but all constitute one and the same instrument. The Parties agree that a facsimile or electronic copy of a signature will be deemed original and binding. This Contract and the rights and obligations of the parties hereunder shall be subject to all state, local, and federal laws, rules, regulations, ordinances, orders, and decisions issued or promulgated for or by any court or regulatory agency having or asserting jurisdiction over this Contract, the services to be performed hereunder, or of the Parties hereto. Time is of the essence of this Contract. ATTACHMENT A - RENEWABLE ENERGY CREDIT SALE AND ASSIGNMENT CONTRACT Revised May 9, 2014 Page 3 of 3 e. In connection with any assignment of this Contract by Consumer, Consumer shall provide to assignee the following documents: Assignment and Acknowledgment, in the form provided by Holy Cross in response to Consumer request, a copy of this Contract, a copy of the Holy Cross Energy Generator Interconnect Policy Agreement and information pertaining to any warranty remaining on the Generating Facility. As a qualified Holy Cross Consumer, I have read, understood, and agreed to the terms of the Contract set forth above and accept the REC incentive payment to be disbursed by Holy Cross. Consumer Name(s) (Printed): Jennie Fancher, Mayor, Town of Avon Consumer Signature: ______________________________________ Date: Consumer Signature:  Date: Relying on the information concerning the Generating Facility provided by Consumer to Holy Cross and contingent on the actual equipment installed and confirmed by an “On-Site” inspection of the Generating Facility by Holy Cross authorized personnel, Holy Cross agrees to the following REC incentive payment to Consumer: Generating Facility size: 28.05 kW The estimated incentive will be the lesser of $28,121.21 or 40% of the actual installed cost (on a $/kW basis) for the first 25 kW of generation associated with any location if installed before August 25, 2018. The actual payment is subject to changes in the WE CARE program, or its successor programs, the continued eligibility of the consumer to receive incentives under the WE CARE program through the date of the Holy Cross witness test, and the availability of funds if the system is not completed within 120 days of the date on which the interconnection application was approved. Estimated annual production: 35,780 kWh Estimated RECs assigned to Holy Cross annually: 35 RECs Actual incentive payment: ____________________ (Amount filled in by Holy Cross) Holy Cross Energy By: ___________________________________________________ Name: ___________________________________________________ Title: ___________________________________________________ Date: ___________________________ Commissioning Date: (Date filled in by Holy Cross) As a requirement to electrically connect to the Holy Cross distribution grid system, the Generating Facility must pass an “On-Site” inspection conducted by authorized Holy Cross personnel. The date said Generating Facility is inspected and approved by Holy Cross shall herein be defined as the “Commissioning Date.” In the event the Generating Facility does not pass the required inspection, any and all deficiencies with the Generating Facility shall be corrected by Consumer and then a re-inspection of the Generating Facility performed by Holy Cross. ATTACHMENT A - RENEWABLE ENERGY CREDIT SALE AND ASSIGNMENT CONTRACT 3799 HIGHWAY 82∙P.O. DRAWER 2150 GLENWOOD SPRINGS, COLORADO 81602 (970) 945-5491∙FAX (970) 945-4081 Revised June 4, 2018 Page 1 of 8 GENERATOR INTERCONNECTION AGREEMENT This Generator Interconnection Agreement (“Agreement”) is made and entered into this twelfth day of June, 2018, by and between Holy Cross Electric Association, Inc., dba Holy Cross Energy (“Holy Cross”), a Colorado cooperative electric association and Town of Avon, a Colorado Home Rule Municipality (“Consumer”). The parties to this Agreement may each hereinafter be referred to individually as “Party” or both referred to collectively as the “Parties”. In consideration of the mutual covenants set forth herein, the Parties agree as follows: 1.Definitions.(a) “Electric Tariffs” means Holy Cross’s Electric Service Tariffs, Rules and Regulations as in effect on the effective date of this Agreement and as the same may be amended from time to time. (b)“Generating Facility” means the Consumer’s device for the production of electricity identified in an interconnection request, but shall not include the Interconnection Facilities not owned by the Consumer, as schematically depicted on Attachment A (if none exist, Attachment A may be omitted), attached hereto and incorporated herein by this reference. (c)“Interconnection Facilities” include Holy Cross’s Interconnection Facilities and the Consumer’s Interconnection Facilities. Collectively, Interconnection Facilities include all facilities and equipment between the Generating Facility and the Point of Interconnection, including any modification, additions, or upgrades that are necessary to physically and electrically interconnect the Generating Facility to Holy Cross’s system. Interconnection Facilities are sole-use facilities and shall not include Distribution Upgrades. (d)“Point of Interconnection” means the point where the Consumer’s Interconnection Facilities connect with Holy Cross’s system. The location of the Point of Interconnection will be determined by Holy Cross in accordance with standard industry practice or as individual circumstances may dictate. (e)“System” means the electric distribution facilities owned, controlled, or operated by HolyCross that are used to provide electric service under the Electric Tariffs. 2.Intent of Parties: It is the intent of the Consumer to interconnect a 28.05 kW DC solar photovoltaic Generating Facility to the System, located at 100 Mikaela Way in Avon, CO. It is the intent of Holy Cross to operate its System in a manner which will maintain a high level of service to all of its customers. It is the intent of both parties to operate the Interconnection Facilities in a manner that ensures the safety of the Consumer, the public, and the employees of each party. 3.Service to be Provided. Holy Cross shall deliver and sell to Consumer, and Consumer shall receive and purchase from Holy Cross, during the term of, and subject to, the provisions of this Agreement, all electric power and energy as may be required by Consumer in addition to the ATTACHMENT B - GENERATOR INTERCONNECTION AGREEMENT Revised June 4, 2018 Page 2 of 8 electric power and energy produced by the Consumer’s Generating Facility. All electric power and energy delivered by Holy Cross to the Consumer at the Point of Interconnection shall be paid for by the Consumer at the applicable rates established in the Electric Tariffs. 4.Term. This Agreement shall be in full force and effect for an initial period of one (1) year from the date hereof, and shall remain in full force and effect each year thereafter, unlessterminated by either party as set forth herein. 5. Facilities Provided by Holy Cross. Holy Cross shall install, own, operate and maintain the System up to the Point of Interconnection. All such facilities will be installed in accordancewith the line extension policy as contained in the Electric Tariffs. 6.Facilities Provided by Consumer. Consumer shall, own, operate, and maintain all facilities on the load side of the Point of Interconnection necessary to enable Consumer to take and use the electric energy provided by Holy Cross in accordance with the Electric Tariffs. Such Consumer facilities shall include the Generating Facility and all appurtenant equipmentnecessary to own, operate, and maintain the Generating Facility. Consumer shall provide suitable space on Consumer’s premises for Holy Cross meters and metering equipment. A utility accessible and lockable switch to disconnect the Generating Facility must be properly labeled and installed at or near the Consumer’s meter panel and labeled with an engraved yellow placard with permanent adhesive designed for outdoor use to ensure adhesion over time through extremeweather conditions. 7. No Construction of Facilities. Holy Cross shall not be required to construct any facilities in order to accommodate the installation or operation of a Generating Facility. 8. Design, Construction, Operation. Consumer shall be responsible for the design, construction, installation, operation, maintenance, and replacement or repair of the Generating Facility and the Consumer’s Interconnection Facilities so that, at all times, the Consumer complies with Holy Cross’s Interconnection Policy and Guidelines as set forth in the ElectricTariffs. Consumer shall also install, operate, and maintain the Generating Facility andInterconnection Facilities in a safe manner in accordance with the rules for safety and reliability set forth in the National Electrical Code, all other applicable local, state, and federal codes, and prudent electrical practices. 9.Design Review. Consumer shall provide Holy Cross an electrical one-line diagram and arelaying and metering one-line diagram prior to completion of detailed designs, unless the Consumer is installing a packaged system that is pre-certified to IEEE 1547.1 and UL 1741 standards. Packaged systems pre-certified under IEEE Standard 1547.1 and UL Standard 1741 will not require a relaying and metering one-line diagram. The submitted application anddiagrams will be processed, reviewed, and acted upon in accordance with the Holy CrossInterconnection Policy. 10.Inspection and Testing. Prior to parallel operation of the Generating Facility, Holy Cross may inspect the Generating Facility for compliance with industry standards and theElectric Tariffs. Holy Cross’s inspection may include a witness test and Holy Cross may require ATTACHMENT B - GENERATOR INTERCONNECTION AGREEMENT Revised June 4, 2018 Page 3 of 8 appropriate metering replacement, if necessary. If the witness test is not satisfactory in the sole judgment of Holy Cross, Holy Cross has the right to disconnect the Generating Facility. The Consumer shall have no right to operate in parallel until a witness test has been performed, or previously waived in writing by Holy Cross. Holy Cross must complete the witness test within ten (10) business days of receipt of a “Certificate of Completion” from the Consumer. The Consumer shall be responsible for all costs associated with witness tests conducted by Holy Cross. 11.Commissioning Tests. Commissioning tests of the Consumer’s installed Generating System shall be performed pursuant to applicable codes and standards, including IEEE 1547.1.Holy Cross must be given at least five (5) business days’ written notice, or as otherwise mutuallyagreed to by the Parties, of the tests and may be present to witness the commissioning tests. The Consumer shall be responsible for all costs associated with Commissioning tests conducted by Holy Cross. 12.Confidentiality. All design features, operating specifications, and metering data providedby the Consumer shall be deemed confidential information by Holy Cross regardless of whether it is clearly marked or otherwise designated as such. Confidential Information shall not include information previously in the public domain or required by governmental authorities to be publicly submitted or divulged. 13. No Company Warranty of Generation Facility. Any approval or acceptance by Holy Cross of Consumer's designs, analyses, operating and maintenance procedures, instructions, drawings, specifications, and installation shall not be construed as confirming or endorsing the design or operation of the Generating Facility or as a warranty of its safety, durability, reliability,or fitness for the purpose intended. Holy Cross shall not, by reason of such review or failure toreview, be responsible or liable for the performance of the Generating Facility in any manner, including, but not limited to, the strength, details of design, adequacy, safety, capacity, or fitness for the purpose intended. 14.Future Design Changes. No changes to the Generating Facility or to the Consumer’sInterconnection Facilities shall be made without the prior written approval of Holy Cross. If changes are made without Holy Cross’s written approval, Holy Cross may, at its sole discretion and upon reasonable notice to the Consumer, require the Consumer to conform the Generating Facility or the Consumer’s Interconnection Facilities to specifications set forth in the ElectricTariffs at the Consumer’s sole expense within thirty (30) days after informing the Consumer ofthe required changes, or Holy Cross may disconnect the Generating Facility from the System and terminate this Agreement. 15.Right to Locate Facilities. Consumer hereby grants to Holy Cross the right to use the premises of Consumer for the purpose of providing the Interconnection Facilities necessary toconnect the Consumer’s Generating Facility to the System, and agrees to provide any required rights-of-way by separate instrument without cost, if so requested by Holy Cross. ATTACHMENT B - GENERATOR INTERCONNECTION AGREEMENT Revised June 4, 2018 Page 4 of 8 16. Access. Holy Cross shall have access to the disconnect switch and metering equipment of the Generating Facility at all times. Holy Cross shall provide reasonable notice to the Consumer when possible prior to using its right of access. 17. Disconnection. The interconnection of the Consumer’s Generating Facility shall not compromise the operational requirements of the System. The operation of the Generating Facility and the quality of electric energy supplied by the Generating Facility shall meet the standards as specified by Holy Cross. If the operation of the Generating Facility or quality of electric energy supplied does not meet the standards as specified, Holy Cross will require the Consumer to take reasonable and appropriate corrective action. Holy Cross shall have the right to disconnect the Generating Facility until compliance is reasonably demonstrated. Holy Cross may in its sole discretion disconnect the Generating Facility from the System without notice if operation of the Generating Facility poses a threat, in Holy Cross’s sole judgment, to life and/or property. 18. Maintenance Outages. Maintenance outages will occasionally be required on the System, and Holy Cross will provide as much notice as practical to the Consumer to minimize downtime. 19. Billing and Payment. Consumer shall reimburse Holy Cross for all of the costs that Holy Cross incurs under this Agreement in accordance with the Electric Tariffs. Holy Cross agrees that, when performing or causing to be performed any work for Consumer's account, Holy Cross will use the same degree of care and diligence in controlling and minimizing the costs of the work it performs as if the work were being performed for Holy Cross's own account. Holy Cross shall invoice Consumer for reimbursement of Holy Cross’s costs, from time to time, as those costs are incurred, but no more frequently than once each month. Payment shall be due within thirty (30) days of the date of Holy Cross’s invoice. If payment in full is not made by the Consumer within that time, the unpaid balance shall bear interest at the rate of one and one half percent (1.5%) per month. If the Consumer is more than ninety (90) days delinquent in reimbursing Holy Cross’s costs, Holy Cross may, in its sole discretion, terminate this Agreement, in which event the Consumer shall be liable for all costs Holy Cross has incurred to the date of termination of this Agreement. If Holy Cross must bring a legal action to obtain reimbursement of its costs from Consumer, Holy Cross shall be entitled to recover from Consumer its reasonable attorney’s fees, expenses, and court costs Notwithstanding anything to the contrary contained in this Agreement, Consumer shall have no obligations under this Agreement after, nor shall any payments be made to Holy Cross in respect of any period after December 31 of any year, without an appropriation therefor by Consumer in accordance with a budget adopted by the Avon Town Council in compliance with Article 25, title 30 of the Colorado Revised Statutes, the Local Government Budget Law (C.R.S. 29-1-101 et. seq.) and the TABOR Amendment (Colorado Constitution, Article X, Sec. 20). 20. Force Majeure. Holy Cross shall not be liable for failure or fault in the delivery of electrical energy to the Consumer or for total or partial interruption of service caused by accidents, breakdown of equipment, acts of God, floods, storms, fires, strikes, riots, war, terrorist attacks, sabotage, labor disputes, shortage of materials, the forces of nature, the authority and ATTACHMENT B - GENERATOR INTERCONNECTION AGREEMENT Revised June 4, 2018 Page 5 of 8 orders of government, and other causes or contingencies of whatever nature beyond the reasonable control of Holy Cross, or which reasonably could not have been anticipated and avoided by Holy Cross. 21.Indemnification. To the maximum extent permitted by law and in good faith, each party shall save and hold harmless the other party, its officers, employees, agents, affiliates, andsubsidiaries from any and all damages, losses, judgments, claims, including claims and actions relating to injury or death of any person or damage to property, demand, suits, recoveries, costs, and expenses, court costs, attorney fees, and all other obligations by or to third parties, arising out of or resulting from the other party’s actions or inactions in performing its obligations underthis Agreement on behalf of the indemnifying party, except in cases of gross negligence orintentional wrongdoing by the indemnified party. In the event of concurrent negligence on the part of each party, there shall be contribution in the percentage of each party’s respective negligence; and, provided further, that each of the parties hereto shall be solely responsible for injury or damage, wherever occurring, due solely to any defect in equipment installed, furnished,or maintained by such party. Nothing in this paragraph or in paragraph 22 concerning insuranceshall be deemed a waiver of any protections available to Consumer under the Colorado Governmental Immunity Act. 22.Limitation of Liability. Each party’s liability to the other party for any loss, cost, claim, injury, liability, judgment or expense, including reasonable attorney fees, relating to or arisingfrom any act or omission in its performance of this Agreement, shall be limited to the amount of direct damage actually incurred. In no event shall either party be liable to the other party for any indirect, incidental, special, consequential, or punitive damages of any kind whatsoever. 23.Insurance. Consumer shall, at its own expense, secure and maintain in effect during theterm of this Agreement, liability insurance in the amounts set forth in Holy Cross’s Interconnection Policy. Such liability insurance shall not exclude coverage for any incident related to the subject Generating Facility, its installation, maintenance, operation, repair, or replacement. Holy Cross shall be named as an additional insured under the liability policy unlessthe system is installed on a residential premise and has a design capacity of 10 kW or less. Theinsurance policy shall include a provision that written notice shall be given to Holy Cross at least thirty (30) days prior to any cancellation or reduction of any coverage. A copy of the liability insurance certificate must be received by Holy Cross prior to the date of interconnection of the Generating Facility. The liability insurance shall include as an endorsement to the policy, thatHoly Cross shall not, by reasons of its inclusion as an additional insured, incur liability to theinsurance carrier for the payment of any premium of such insurance. Certificates of insurance evidencing the requisite coverage and provision(s) shall be furnished to Holy Cross and attached to this Agreement and appended hereto as an attachment prior to the date of interconnection of the Generating Facility. Holy Cross shall be permitted to periodically obtain proof of currentinsurance coverage from the Consumer in order to verify proper liability insurance coverage.Consumer will not be allowed to commence or continue interconnected operations unless evidence is provided that satisfactory insurance coverage is in effect at all times. 24.Termination. This Agreement may be terminated by the Consumer with thirty (30) days written notice to Holy Cross. In the event Consumer terminates this Agreement, Holy Cross shall ATTACHMENT B - GENERATOR INTERCONNECTION AGREEMENT Revised June 4, 2018 Page 6 of 8 have a reasonable amount of time to remove its Interconnection Facilities as described in Paragrahs 15 and 16 of this Agreement. This Agreement may be terminated by Holy Cross for non-performance by the Consumer of any of the terms of this Agreement or the Electric Tariffs. The Consumer shall have thirty (30) days from the date that Holy Cross sends written notice to the Consumer to remedy the item of non-performance. Upon expiration of the thirty (30) day remedy period and if the item of non-performance has not been corrected Holy Cross may terminate this Agreement. Unless terminated earlier by the Consumer or Holy Cross as described herein, this Agreement shall terminate when the Generating Facility is permanently removed from service or becomes inoperative for a period in excess of one year. 25. Governing Law. The validity, interpretation, and enforcement of this Agreement and each of its provisions shall be governed by the laws of the state of Colorado. 26. Amendment. The Parties may amend this Agreement only by a written instrument duly executed by both Parties. 27. No Third-Party Beneficiaries. This Agreement is not intended to and does not create rights, remedies, or benefits of any character whatsoever in favor of any person, corporation, association, or entity other than the parties hereto, their successors and assigns and the obligations herein assumed are solely for the use and benefit of the parties, their successors in interest and, where permitted, their assigns. 28. Waiver. The failure of a party to this Agreement to insist, on any occasion, upon strict performance of any provision of this Agreement will not be considered a waiver of any obligation, right or duty of, or imposed upon, such party. Any waiver at any time by either Party of its respective rights relating to this Agreement shall not be deemed a continuing waiver or a waiver with respect to any other failure to comply with any other obligation, right, duty of this Agreement. Termination or default of this Agreement for any reason by Consumer shall not constitute a waiver of the Consumer’s legal rights to obtain an interconnection from Holy Cross. Any waiver of this Agreement shall, if requested, be provided in writing. 29. Multiple Counterparts. This Agreement may be executed in two or more counterparts, each of which is deemed original but all constitute one and the same instrument. The Parties agree that a facsimile copy of a signature will be deemed original and binding. 30. No Partnership. This Agreement shall not be interpreted or construed to create an association, joint venture, agency relationship, or partnership between the parties or to impose any partnership obligation or partnership liability upon either party. Neither party shall have any right, power or authority to enter into any agreement or undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise bind, the other party. 31. Severability. If any provision or portion of this Agreement shall for any reason be held or adjudged to be invalid or illegal or unenforceable by any court of competent jurisdiction, (1) such portion or provision shall be deemed separate and independent, (2) the parties shall negotiate in good faith to restore insofar as practicable the benefits to each party that were ATTACHMENT B - GENERATOR INTERCONNECTION AGREEMENT Revised June 4, 2018 Page 7 of 8 affected by such ruling, and (3) the remainder of this Agreement shall remain in full force and effect. 32.Subcontractors. Nothing in this Agreement shall prevent a party from utilizing the services of any subcontractor as it deems appropriate to perform its obligations under thisAgreement; provided, however, that each party shall require its subcontractors to comply with allapplicable terms and conditions of this Agreement in providing such services and each party shall remain primarily liable to the other party for the performance of such subcontractor. The creation of any subcontract relationship shall not relieve the hiring party of any of its obligations under this Agreement. The hiring party shall be fully responsible to the other party for the acts oromissions of any subcontractor the hiring party hires as if no subcontract had been made;provided, however, that in no event shall Holy Cross be liable for the actions or inactions of the Consumer or its subcontractors with respect to obligations of the Consumer under this Agreement. Any applicable obligation imposed by this Agreement upon the hiring party shall be equally binding upon, and shall be construed as having application to, any subcontractor of suchparty. The obligations under this article will not be limited in any way by limitation ofsubcontractors’ insurance. 33.Notices. Notices to be given hereunder shall be deemed sufficiently given and served after receipt of notice sent by United States certified mail, return receipt requested andrespectively addressed as follows: Holy Cross: Holy Cross Energy Power Supply and Contracts Department P.O. Box 2150 Glenwood Springs, CO 81602-2150 Consumer : Town of Avon PO Box 975 Avon, CO 81620 34.Assignment-Consent. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the respective parties hereto, and shall not be assigned by eitherparty without the written consent of the other party, which consent shall not be unreasonably withheld. 35.Total Agreement. Subject to the Electric Tariffs, this Agreement, together with the Generator Interconnect Policy and its Attachments, represents the entire agreement between theparties relating to the rates, terms, and conditions for electric service provided to Consumer by Holy Cross and to electric energy supplied to Holy Cross by the Consumer. 36.Binding Effect. This Agreement, as it may be amended from time to time, shall be binding upon and inure to the benefit of the parties hereto and their respective successors, legalrepresentatives, assigns, affiliates and subsidiaries. 37.Breaches Ongoing. All breaches of this Agreement shall be considered ongoing breaches until such breaches are remedied or until there may be a written waiver of the breach by thenonbreaching party. ATTACHMENT B - GENERATOR INTERCONNECTION AGREEMENT Revised June 4, 2018 Page 8 of 8 38.Remedies for Breach. This Agreement and the respective rights and duties of the partiesare unique and of such a special nature that it is enforceable through the remedy of specific performance and injunctive relief, in addition to any other remedies that may exist at law or in equity. 39.Disputes. In the event of a dispute related to this Agreement, either party may exercisewhatever rights and remedies it may have at law or in equity consistent with the terms of this Agreement. The prevailing party shall be entitled to recover from the nonprevailing party its reasonable attorney fees, expenses, and costs of any civil legal action brought for the purpose of resolving the dispute or enforcing its rights under the Agreement. IN WITNESS WHEREOF, the Parties have caused this Interconnection Agreement to be executed in their respective names by the proper officers hereunto duly authorized as of the date and year first above written. AGREED TO BY: Consumer Holy Cross ____________________________ _____________________________ Name: Jennie Fancher Name: _______________________ Title: Mayor Title: _______________________ Date: June 12. 2018 Date: _______________________ ATTACHMENT B - GENERATOR INTERCONNECTION AGREEMENT Page 1 of 1 TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Lance J. Richards, Human Resources Director Meeting Date: June 12, 2018 Agenda Topic: Pay Adjustment for Acting Town Manager Scott Wright SUMMARY Town Council has appointed Scott Wright as Acting Town Manager, a role which is anticipated to continue until November at least. Scott’s current pay is market priced against that of a Finance Director, and reflects his years in that role. As a consistent practice, when the Town has appointed someone into an Interim Role, we have adjusted their pay into the appropriate pay slot for that role. In the event the individual does not continue in the role past an interim period, their pay is returned to the original amount when they return to their original job. When we look at the Town Manager pay, as with other jobs, we look at total cash compensation, which for this position has been a base salary, plus a car/housing allowance. Based upon Scott’s current compensation, and the pay ranges for the Town Manager position, I recommend that Scott be paid a salary (annualized) of $170,000, plus a car/housing allowance of $1000 per month, for the period of time he is Acting Town Manager. At the point that a Town Manager is hired and begins work, and Scott returns to his prior role as ATM/Finance Director, his base salary and auto allowance would return to its prior point. This increase would be made retroactive to Friday, June 1, 2018. This approval is included in tonight’s Consent Agenda. PROPOSED MOTION “I move to approve a pay adjustment for Scott Wright, as recommended, for the duration of his role as Acting Town Manager.” TOWN OF AVON, COLORADO AVON REGULAR MEETING MINUTES FOR TUESDAY, MAY 22, 2018 AVON TOWN HALL, ONE LAKE STREET Page 1 1. A CALL TO ORDER & ROLL CALL Mayor Fancher called the meeting to order at 5:15 p.m. A roll call was taken and Council members present were Megan Burch, Jake Wolf, Scott Prince, Matt Gennett and Sarah Smith Hymes. Amy Phillips was absent. Also present were Town Manager Virginia Egger, Town Attorney Eric Heil, Deputy Police Chief Coby Cosper, Mobility Director Eva Wilson, Town Engineer Justin Hildreth, Deputy Town Manager Preston Neill and Deputy Town Clerk Brenda Torres. 2. APPROVAL OF AGENDA Mayor Fancher moved to remove the minutes from the May 8, 2018 Council meeting from the Consent Agenda, to be discussed for approval at the June 12, 2018 Council meeting. Mayor Pro Tem Smith Hymes seconded the motion and it passed unanimously by Council members present. Councilor Phillips was absent. 3. MEETING PROCEDURES FOR THE MEETING OF MAY 22, 2018 4. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA* There were no comments made. 5. ACTION ITEMS Start time: 16:53 Part One 5.1. PUBLIC HEARING SECOND READING OF ORDINANCE 18-05, APPROVING THE REZONING APPLICATION FOR THE COLORADO WORLD RESORTS (FOLSON) ANNEXATION PROPERTY, FROM PLANNED UNIT DEVELOPMENT TO THE RESIDENTIAL HIGH DENSITY, OPEN SPACE, LANDSCAPING, AND DRAINAGE, AND SHORT TERM RENTAL OVERLAY ZONE DISTRICTS (PLANNING DIRECTOR MATT PIELSTICKER) Councilor Prince recused himself from the discussion. Mayor Fancher opened the public hearing and no comments were made. Mayor Pro Tem Sarah Smith Hymes moved to approve Ordinance 18-05, thereby approving a Rezoning Application for the Folson Annexation Property from PUD to the RH, OLD, and STRO zone districts. Councilor Burch seconded the motion and it passed with a vote of 5 to 0. Councilor Prince abstained from the vote. Councilor Phillips was absent. 5.2. PUBLIC HEARING BEAVER CREEK RESORT COMPANY PERMIT APPLICATION FOR OUTDOORS USE OF SOUND AMPLIFICATION SYSTEM FOR BEAVER CREEK RODEO SERIES ON JUNE 21, 28, JULY 5, 12, 19, AUGUST 2 AND 9, 2018 (INTERIM SPECIAL EVENTS MANAGER LOUISE DUNCAN) Start time: 19:40 Part One Mayor Fancher opened the public hearing and no comments were made. Mayor Pro Tem Sarah Smith Hymes moved to approve the Amplified Sound Permit for Beaver Creek Rodeo Series on Thursday June 21, June 28, July 5, July 12, July 19, August 2, and August 9, 2018. Councilor Burch seconded the motion and it passed unanimously by Council members present. Councilor Phillips was absent. TOWN OF AVON, COLORADO AVON REGULAR MEETING MINUTES FOR TUESDAY, MAY 22, 2018 AVON TOWN HALL, ONE LAKE STREET Page 2 5.3. PUBLIC HEARING TRUE LOCAL EVENTS, LLC PERMIT APPLICATION FOR OUTDOORS USE OF SOUND AMPLIFICATION SYSTEM FOR COVER ROCK FESTIVAL ON JUNE 21, 22 AND 23, 2018 (INTERIM SPECIAL EVENTS MANAGER LOUISE DUNCAN) Start time: 21:12 Part One Mayor Fancher opened the public hearing and no comments were made. Councilor Wolf moved to approve the Amplified Sound Permit for Cover Rock Music Festival in Harry A. Nottingham Park on Thursday June 21, Friday June 22, and Saturday June 23, 2018. Councilor Gennett seconded the motion and it passed unanimously by Council members present. Councilor Phillips was absent. 5.4. PUBLIC HEARING WALKING MOUNTAINS SCIENCE CENTER PERMIT APPLICATION FOR OUTDOORS USE OF SOUND AMPLIFICATION SYSTEM FOR FUNDRAISING EVENT ON JULY 10, 2018 (INTERIM SPECIAL EVENTS MANAGER LOUISE DUNCAN) Start time: 24:44 Part One Mayor Fancher opened the public hearing and no comments were made. Mayor Pro Tem Sarah Smith Hymes moved to approve the Amplified Sound Permit for a fundraising event at Walking Mountains Science Center, 318 Walking Mountains Lane, on Tuesday July 10, 2018. Councilor Burch seconded the motion and it passed unanimously by Council members present. Councilor Phillips was absent. 5.5. AUTHORIZATION TO APPROPRIATE UP TO $15,000 FROM THE TOWN PROPERTIES CONTINGENCY LINE ITEM IN THE CAPITAL PROJECTS FUND BUDGET FOR LOT 5 RECYCLE CENTER PLANNING AND DESIGN SERVICES (DEPUTY TOWN MANAGER PRESTON NEILL) Start time 26:18 Part One Mayor Pro Tem Sarah Smith Hymes moved to appropriate up to $15,000 from the Town Properties Contingency line item to temporarily house a regional recycle site at Lot 5. Councilor Gennett seconded the motion and it passed unanimously by Council members present. Councilor Phillips was absent. 5.6. AUTHORIZATION FOR THE MAYOR TO PROVIDE A TOWN OF AVON COMMENT LETTER TO THE UNITED STATES FOREST SERVICE ON THE BEAVER CREEK RESORT - MCCOY PARK TERRAIN DEVELOPMENT (TOWN MANAGER VIRGINIA EGGER) Start time: 67:08 Part One Councilor Wolf moved to authorize Mayor Jennie Fancher to sign a Town of Avon comment letter to the United States Forest Services for the Beaver Creek Resort – McCoy Park Terrain Development, representing the Council comments provided during today’s meeting, including, but not limited to, helping with modes of transportation, parking, and moving people from the Town to the mountain and back (mobility). Councilor Gennett seconded the motion and it passed with a vote of 5 to 1. Mayor Pro Tem Smith Hymes voted no. Councilor Phillips was absent. TOWN OF AVON, COLORADO AVON REGULAR MEETING MINUTES FOR TUESDAY, MAY 22, 2018 AVON TOWN HALL, ONE LAKE STREET Page 3 5.7. FIRST READING OF ORDINANCE 18-06 ADOPTING SMALL CELL REGULATIONS (TOWN ATTORNEY ERIC HEIL) Start time: 83:15 Part One Councilor Gennett moved to approve first reading of Ordinance No. 18-06 Adopting a New Chapter 12.20 of Title 12 of the Avon Municipal Code Establishing Small Cell Regulations. Councilor Wolf seconded the motion and it passed unanimously by Council members present. Councilor Phillips was absent. 5.8. CONSENT AGENDA Start time: 94:13 Part One 5.8.1. APPROVAL OF THE REQUEST TO JOIN THE NWCCOG WITH 2018 MEMBERSHIP DUES OF $5,528 FROM THE GENERAL FUND CONTINGENCY (DEPUTY TOWN MANAGER PRESTON NEILL) 5.8.2. APPROVAL OF MINUTES FROM MAY 8, 2018 COUNCIL MEETING (TOWN CLERK DEBBIE HOPPE) Councilor Burch moved to approve the Consent Agenda, minus the May 8, 2018 Council Meeting Minutes. Councilor Smith Hymes seconded the motion and it passed unanimously by Council members present. Councilor Phillips was absent. 6. WORK SESSION Start time: 94:44 Part One 6.1. REVIEW AND FINALIZATION OF 2018 TOWN OF AVON COMMUNITY SURVEY INSTRUMENT (ADAM PROBOLSKY, PROBOLSKY RESEARCH) Council provided direction on the questions for the upcoming Community and Business surveys, drafted and submitted by Probolsky Research. 7. PRESENTATIONS Start time: 00:02 Part Two 7.1. ERWSD/UERWA REGIONAL WATER EFFICIENCY PLAN PRESENTATION Maureen Mulcahy and Amy Schweig presented an overview of the draft Eagle River Regional Water Efficiency Plan and solicited feedback for possible inclusion in the final plan. Diane Johnson also presented current snowpack/drought/water supply information. 7.2. MOBILITY DEPARTMENT AND MOBILITY WORK GROUP PRESENTATION, INCLUDING SUMMER PILOT PROGRAMS (MOBILITY DIRECTOR EVA WILSON) Eva Wilson gave a presentation on 2018 Mobility programs. 8. WRITTEN REPORTS 8.1. MONTHLY FINANCIALS REPORT (SENIOR ACCOUNTANT MARTHA ANDERSON) 8.2. UPDATE ON THE HAHNEWALD BARN REQUEST FOR PROPOSAL(S) (TOWN MANAGER VIRGINIA EGGER) 8.3. ABSTRACT FROM MAY 15, 2018 PLANNING AND ZONING COMMISSION MEETING (PLANNING DIRECTOR MATT PIELSTICKER) TOWN OF AVON, COLORADO AVON REGULAR MEETING MINUTES FOR TUESDAY, MAY 22, 2018 AVON TOWN HALL, ONE LAKE STREET Page 4 9. MAYOR & COUNCIL COMMENTS & MEETING UPDATES (15 MINUTES) Start time: 74:47 Part Two Mayor Fancher mentioned the following items: 1) Town Clean Up Day on May 24th, 2) Pop Up Concert on May 28th, 3) Postmaster Installation at the Pavilion on May 25th, 4) Last week's Business Outreach Meetings, 5) Beaver Creek Boulevard Construction Project, 6) Development of the new Discover Avon website, 7) Shout out to the great work of the Public Works Department. Councilor Burch thanked the Police Department for their participation at the Bike Build event. She also mentioned the success of the new playground in Nottingham Park and the Colorado Health Foundation's meeting in Eagle on June 13th. She reminded Council members and viewers that the Avon School-Based Health Center at Avon Elementary School, a branch of Mountain Family Health Centers, is available. Councilor Wolf sent condolences to Police Chief Greg Daly. 10. ADJOURNMENT There being no further business to come before the Council, Mayor Fancher moved to adjourn the regular meeting. The time was 9:37 p.m. These minutes are only a summary of the proceedings of the meeting. They are not intended to be comprehensive or to include each statement, person speaking or to portray with complete accuracy. The most accurate records of the meeting are the audio of the meeting, which is housed in the Town Clerk’s office, and the video of the meeting, which is available at www.highfivemedia.org. RESPECTFULLY SUBMITTED: ________________________________ Brenda Torres, Deputy Town Clerk APPROVED: Jennie Fancher ___________________________________ Sarah Smith Hymes ___________________________________ Jake Wolf ________________________________ Megan Burch ________________________________ Matt Gennett ________________________________ Scott Prince ________________________________ Amy Phillips ________________________________ TOWN OF AVON, COLORADO AVON REGULAR MEETING MINUTES FOR TUESDAY, MAY 8, 2018 AVON TOWN HALL, ONE LAKE STREET Page 1 1. A CALL TO ORDER & ROLL CALL Mayor Fancher called the meeting to order at 4:32 p.m. A roll call was taken and Council members present were Megan Burch, Sarah Smith Hymes and Amy Phillips. Jake Wolf arrived at 4:34 p.m. Matt Gennett and Scott Prince were absent. Also present were Town Manager Virginia Egger, Town Attorney Eric Heil, Deputy Police Chief Coby Cosper, Planning Director Matt Pielsticker, Deputy Town Manager Preston Neill and Town Clerk Debbie Hoppe. 2. APPROVAL OF AGENDA There were no changes to the agenda. 3. MEETING PROCEDURES FOR THE MEETING OF MAY 8, 2018 4. PRESENTATION EAGLE RIVER FIRE PROTECTION DISTRICT PRESENTATION (KARL BAUER, ERFPD FIRE CHIEF) Start time: 01:00 Part One 4.1.1. CURRENT ASSESSMENT OF GENERAL PREPAREDNESS FOR WILDFIRES 4.1.2. DECLARATION PROCESS AND PROCEDURES Start time: 01:26 Part One Chief Karl Bauer, Community Risk/PIO Traci LeClair, Wildfire Mitigation Specialist Jeff Zechman and Deputy Police Chief Coby Cosper presented the fire season outlook and the work the Eagle River Fire Protection District has been doing leading up to this season. Scott Prince arrived at 4:50 p.m. Peter Warren asked if there is a solution over and above the proposed evacuation route that has been mapped out by the police department and that might be made available during an evacuation of the Wildridge community. Peter suggested June Creek Trail, as it intersects with June Creek Gulch Road. It is blocked off by boulders currently. He proposed that the boulders could simply be replaced with a locked gate, accessible only by the Avon Police Department and Eagle River Fire Protection District. Deputy Police Chief Coby Cosper responded that that route has been looked at and that there are a couple of points where the topography is so close it may be risky to put people on that road. He added that it could be something to consider in the future. 5. LIQUOR LICENSING AUTHORITY MEETING Mayor Fancher moved to continue the Regular meeting and convene into the Liquor Licensing Authority Meeting. Councilor Prince moved reconvene into the Regular meeting. Councilor Wolf seconded the motion and it passed unanimously by Council members present. Councilor Gennett was absent. 6. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA* No public comments were made. TOWN OF AVON, COLORADO AVON REGULAR MEETING MINUTES FOR TUESDAY, MAY 8, 2018 AVON TOWN HALL, ONE LAKE STREET Page 2 7. ACTION ITEMS Start time: 60:14 Part One 7.1. PUBLIC HEARING: REVIEW AND ACTION ON PRELIMINARY PUD APPLICATION, PLANNING AREA F, VILLAGE AT AVON PUD (PLANNING DIRECTOR MATT PIELSTICKER) Mayor Fancher, Councilor Prince and Councilor Phillips recused themselves from the discussion. Mayor Pro Tem Smith Hymes moved to waive the conflict of interest for Mayor Fancher and Councilor Prince and Councilor Phillips in the consideration of Village at Avon PUD, planning Area F. Councilor Wolf seconded the motion and it passed with a vote of 3. Councilor Gennett was absent. Councilor Prince elected to leave the room. Matt Gennett arrived at 6:00 p.m. Councilor Phillips moved to approve the preliminary PUD amendments with the findings as listed and with the conditions as listed and with a request for the final PUD amendment to also include a little more detail on the planning for transportation stops and how it would integrate into the transportation plan. Councilor Burch seconded the motion. Mayor Pro Tem Smith Hymes proposed an amended motion to remove the commercial requirement. Councilor Phillips did not agree to the amendment. The original motion made by Councilor Phillips and seconded by Councilor Burch passed with a vote of 4. Mayor Fancher and Mayor Pro Tem Smith Hymes voted no. Councilor Prince abstained from the vote. 8. WORK SESSION Start time: 00:06 Part Two 8.1. PRESENTATION OF THE EAGLE RIVER VALLEY HOUSING NEEDS AND SOLUTIONS 2018 REPORT (EAGLE COUNTY HOUSING DIRECTOR KIM BELL WILLIAMS) Kim Bell Williams presented the recently completed Eagle River Valley Housing Needs and Solutions 2018 Report. 8.2. REVIEW AND DIRECTION FOR FINALIZING THE TOWN OF AVON WORKFORCE HOUSING PLAN (PLANNING DIRECTOR MATT PIELSTICKER) Start time: 28:04 Part Two Willa Williford of Williford, LLC, presented the draft Avon Workforce Housing Plan 2018-2021. Council provided feedback and direction to finalize the draft for adoption at a future Council meeting. 9. ACTION ITEMS Council moved to item 9.2. 9.2. REVIEW AND RECOMMENDATION REGARDING MOTORIZED WINTER ACCESS ON USFS 779, 774 AND/OR 717.1B (PLANNING DIRECTOR MATT PIELSTICKER) Start time: 65:33 Part Two TOWN OF AVON, COLORADO AVON REGULAR MEETING MINUTES FOR TUESDAY, MAY 8, 2018 AVON TOWN HALL, ONE LAKE STREET Page 3 Mayor Fancher opened the discussion for comments. Lance Trujillo suggested opening USFS 779 because it is close to where the area is groomed. Peter Warren mentioned that it would be helpful for the Wildridge residents to understand the facts of what may take place depending on which solution is ultimately decided on to pursue. Councilor Gennett left the meeting. Councilor Prince made a motion to direct staff to write a comment letter to the USFS supporting winter motorized access as discussed. Councilor Burch seconded the motion and it passed unanimously by Council members present. Councilor Gennett was absent. Council moved to item 9.1. 9.1. PUBLIC HEARING: FIRST READING OF ORDINANCE 18-05, REVIEW AND ACTION ON THE REZONING APPLICATION FOR THE FOLSON ANNEXATION PROPERTY, FROM PLANNED UNIT DEVELOPMENT TO THE RESIDENTIAL HIGH DENSITY, OPEN SPACE, LANDSCAPING, AND DRAINAGE, AND SHORT-TERM RENTAL OVERLAY ZONE DISTRICTS (PLANNING DIRECTOR MATT PIELSTICKER) Start time: 116:48 Part Two Councilor Prince recused himself from the discussion. Councilor Gennett returned the meeting. Mayor Fancher opened the public hearing and no comments were made. Councilor Gennett moved to approve Ordinance 18-05 (ATTACHMENT A), thereby approving a Rezoning Application for the Folson Annexation Property from PUD to the RH, OLD, and STRO zone districts. Councilor Phillips seconded the motion and it passed unanimously by Council members present. Councilor Prince abstained from the vote. Council moved to item 9.3. 9.3. PUBLIC HEARING: REVIEW AND ACTION ON AN APPEAL OF A DENIAL OF A REAL ESTATE TRANSFER TAX APPLICATION (TOWN ATTORNEY ERIC HEIL) Start time: 128:18 Part Two Mayor Fancher opened the public hearing and no comments were made. Sarah Baker spoke on behalf of Trinity-Sunroad LLC. Councilor Phillips moved to deny the Trinity-Sunroad LLC appeal, dated March 15, 2018, concerning the imposition of the Real Estate Transfer Tax to the Total Sales Price stated in the Real Property Transfer Declaration. Councilor Prince seconded the motion and it passed unanimously by Council members present. TOWN OF AVON, COLORADO AVON REGULAR MEETING MINUTES FOR TUESDAY, MAY 8, 2018 AVON TOWN HALL, ONE LAKE STREET Page 4 9.4. AUTHORIZATION TO APPROPRIATE UP TO $15,000 FROM THE TOWN PROPERTIES CONTINGENCY LINE ITEM IN THE CAPITAL PROJECTS FUND BUDGET FOR LOT 5 RECYCLE CENTER PLANNING AND DESIGN SERVICES (DEPUTY TOWN MANAGER PRESTON NEILL) Start time: 146:41 Part Two Council moved to continue to the item to the next Council meeting and asked staff to present cost share estimates to house a recycle center on Lot 5. 9.5. ACTION ON A REQUEST TO APPROPRIATE $21,000 FROM THE CONTINGENCY LINE ITEM IN THE GENERAL FUND BUDGET FOR THE PRESENTING SPONSORSHIP OF THE LAKE STREET MARKET – A WEEKLY EVENING MARKET FROM JUNE 20 TO SEPTEMBER 12 (INTERIM SPECIAL EVENTS MANAGER LOUISE DUNCAN) Start time: 165:16 Part Two Derick George presented the item and was available to answer any questions. Mayor Pro Tem Smith Hymes moved to approve the Lake Street Market as presented, with sponsorship appropriated from the 2018 General Fund Contingency in the amount of $21,000.00. Councilor Wolf seconded the motion and it passed with a vote of 5. Councilor Burch voted no. 9.6. APPROVAL OF MINUTES FROM APRIL 10, 2018 COUNCIL MEETING (TOWN CLERK DEBBIE HOPPE) Start time: 193:10 Part Two Councilor Gennett moved to approve the April 10, 2018 Council Meeting minutes with modifications as provided. Councilor Phillips seconded the motion and it passed unanimously by Council members present. 10. WRITTEN REPORTS 10.1. MONTHLY FINANCIALS REPORT (SENIOR ACCOUNTANT MARTHA ANDERSON) 10.2. ABSTRACT FROM MAY 1, 2018 PLANNING AND ZONING COMMISSION MEETING (PLANNING DIRECTOR MATT PIELSTICKER) 11. MAYOR & COUNCIL COMMENTS & MEETING UPDATES Start time: 195:08 Part Two Councilor Wolf mentioned that he was sorry to see Montana’s go and he said they served the community well. He also congratulated Dana Harrison as the new principal for Avon Elementary School. 12. EXECUTIVE SESSION 12.1. EXECUTIVE SESSION WITH THE TOWN ATTORNEY FOR THE PURPOSE OF RECEIVING LEGAL ADVICE UNDER C.R.S. §24- 6-402(2) (A) CONCERNING POTENTIAL LIABILITY 12.2. EXECUTIVE SESSION REGARDING A PERSONNEL MATTER UNDER C.R.S. §24-6-402(2) (F) CONCERNING THE TOWN MANAGER’S ANNUAL PERFORMANCE EVALUATION Mayor Fancher moved to convene into Executive Session with the Town Attorney for the purpose of receiving legal advice under C.R.S. §24- 6-402(2) (A) Concerning Potential Liability and TOWN OF AVON, COLORADO AVON REGULAR MEETING MINUTES FOR TUESDAY, MAY 8, 2018 AVON TOWN HALL, ONE LAKE STREET Page 5 regarding a Personnel Matter under C.R.S. §24-6-402(2) (f) Concerning the Town Manager’s Annual Performance Evaluation. Councilor Phillips seconded the motion and it passed with a vote of 6. Councilor Wolf voted no. The time was 10:40 p.m. Council convened into Executive Session at 10:50 p.m. Executive Session ended at 11:23 p.m. Council reconvened into the Regular meeting at 11:23 p.m. 13. ADJOURNMENT There being no further business to come before the Council, Mayor Fancher moved to adjourn the regular meeting. The time was 11:23 p.m. These minutes are only a summary of the proceedings of the meeting. They are not intended to be comprehensive or to include each statement, person speaking or to portray with complete accuracy. The most accurate records of the meeting are the audio of the meeting, which is housed in the Town Clerk’s office, and the video of the meeting, which is available at www.highfivemedia.org. RESPECTFULLY SUBMITTED: ________________________________ Debbie Hoppe, Town Clerk APPROVED: Jennie Fancher ___________________________________ Sarah Smith Hymes ___________________________________ Jake Wolf ________________________________ Megan Burch ________________________________ Matt Gennett ________________________________ Scott Prince ________________________________ Amy Phillips ________________________________ TOWN OF AVON, COLORADO AVON SPECIAL MEETING MINUTES FOR THURSDAY, MAY 31, 2018 AVON TOWN HALL, ONE LAKE STREET Page 1 1. A CALL TO ORDER & ROLL CALL Mayor Fancher called the meeting to order at 6:30 p.m. A roll call was taken and Council members present were Megan Burch, Amy Phillips, Matt Gennett, Jake Wolf, Scott Prince and Sarah Smith Hymes. Also present were Town Attorney Eric Heil, Deputy Town Manager Preston Neill and Town Clerk Debbie Hoppe. 2. APPROVAL OF AGENDA No changes to the agenda were requested. 3. PUBLIC COMMENT No comments were made. 4. BUSINESS ITEM – CONSIDERATION OF TERMS AND POTENTIAL ACTION CONCERNING THE TOWN MANAGER EMPLOYMENT AGREEMENT Mayor Pro Tem Smith Hymes moved to terminate the Town Manager’s employment without cause in accordance with section 9.1 of the Town Manager Agreement with Virginia Egger. Councilor Phillips seconded the motion and it passed unanimously by Council present. Councilor Wolf moved to appoint Assistant Town Manager Scott Wright as Acting Town Manager in accordance with section 8.2 of the Avon Home Rule Charter. Councilor Gennett seconded the motion and it passed unanimously by Council present. 5. ADJOURNMENT There being no further business to come before the Council, Mayor Fancher moved to adjourn the regular meeting. Councilor Phillips seconded the motion and it passed unanimously by Council members present. The time was 6:35 p.m. These minutes are only a summary of the proceedings of the meeting. They are not intended to be comprehensive or to include each statement, person speaking or to portray with complete accuracy. The most accurate records of the meeting are the audio of the meeting, which is housed in the Town Clerk’s office, and the video of the meeting, which is available at www.highfivemedia.org. TOWN OF AVON, COLORADO AVON SPECIAL MEETING MINUTES FOR THURSDAY, MAY 31, 2018 AVON TOWN HALL, ONE LAKE STREET Page 2 RESPECTFULLY SUBMITTED: ______________________________________ Debbie Hoppe, Town Clerk APPROVED: Jennie Fancher ________________________________ Sarah Smith Hymes ________________________________ Jake Wolf ________________________________ Megan Burch ________________________________ Matt Gennett ________________________________ Scott Prince ________________________________ Amy Phillips ________________________________ TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Avon’s Ad Hoc Special Events Committee Date: May 12, 2018 Agenda Topic: JOINT WORK SESSION WITH THE AD HOC SPECIAL EVENTS COMMITTEE AGENDA TOPICS The Ad Hoc Special Events Committee (AHSEC) looks forward to meeting with you on June 12th. As time allows, we hope to discuss the following topics: 1. Role of Town Council in reviewing and acting on the Special Events Committee recommendation for funding 2. 2018 Special Events Update a. Number and type of Events b. Efforts to attract additional concerts, with reserves from postponed events c. Post-Event Surveys 3. Town of Avon Cultural Plan Draft (Section 1) a. Purpose: i. Please note, sections of the Town of Avon Cultural Plan Draft have been underlined by Committee Vice Chair, Lisa Mattis, that would be particularly helpful to the AHSEC to discuss. b. Major Elements i. Signature Events ii. Special Events iii. Community Engagement Events iv. Investments in Facilities 4. 2019 Event Solicitation & Funding a. Recommend adding Salute to the USA budget ($100,000) to the Special Events Reserve b. RFP for all types of events c. RFP for promoter to produce two major music events d. Recommend major music and/or events such as literary and film be granted funding in 2018 with contracts signed in early October to align with booking schedules of artists 5. Formation of a Special Events Standing Committee a. Number b. Membership requirements Thank you, Bobby Bank (Committee Chair), Lisa Mattis (Committee Vice Chair), Kathy Ryan, Pedro Campos Timothy Haley, Chris Cofelice, Derek George, Ruth Stanley and Tom Butz PAGE 1 OF 11 SECTION 1: TOWN OF AVON CULTURAL PLAN DRAFT TOWN OF AVON CULTURAL PLAN 2018 – 2021 ADOPTED BY RESOLUTION 18 - # [DATE] PAGE 2 OF 11 Table of Contents Page 3 Background & Introduction Page 4 Vision, Mission, Purpose, Strategies Page 5 Tactics Introduction Page 5 Tactics – Signature Events Page 6 Tactics - Special Events Page 7 Tactics – Community Enrichment Events Page 8 Tactics - Invest in Facility Development Page 8 Tactics - Establish Avon’s Special Events Committee and Coordinate with the Avon Creative Founding Committee Page 9 Communication, Cooperation and Coordination Page 9 Funding, Application and Post-Event Review Process Page 10 Avon Town Council & Ad Hoc Special Events Committee PAGE 3 OF 11 Background & Introduction Avon’s highly valued quality of life and includes the variety of signature, special and community enrichment events. Throughout Town are art installations and new investments in event venues, improved streetscapes and initiatives to improve mobility. The recently adopted Town of Avon Properties Plan envisions an educational/entrepreneurial/cultural and recreational center in Avon. Taken together, these attributes comprise key elements of Avon’s culture, contributing to building community spirit, social cohesion, community engagement and positive experiences. Daily life and tourism centered on music, arts, events, festivals, and heritage thrive in a vibrant cultural environment. Equally important are the Town’s cultural enterprises to Avon’s business community in Colorado’s competitive resort communities. Jobs are generated and Avon’s businesses benefit from tourist visits. The potential to have a seasonal balance in Avon’s sales and lodging taxes is a viable outcome from investments in cultural offerings and the creative arts. Avon is particularly well poised to continue to create, support and monitor cultural initiatives that nurture community vitality and creativity. The Town of Avon Cultural Plan is a tool to transform vision into strategies, which:  Attract and develop cultural, artistic, educational, enrichment and recreational and events that enhance and contribute to Avon's reputation as a great place to live, work, visit and create, and have a positive impact on the community.  Deliver exceptional experiences through a variety of music, recreational, theatre, education and community enrichment programs to our guests and residents  Attract destination guests; in-state, out-of-state and international; providing a superior community and guest experience  Drive positive economic impact; increase lodging occupancy, restaurant and retail sales.  Demonstrate that cultural activities are a revenue provider for the town, while simultaneously making Avon a more vibrant place to live, work and play.  Cultivate creative, educational and enrichment events, stimulating intellectual dialogue.  Grow the status of Avon as a mountain community model with respect to development and implementation of a special events strategy delivering significant economic benefits.  Achieve an optimal and diverse event and cultural activities calendar.  Align events with the Avon Brand Platform and be of a quality commensurate with Avon's image as a community.  Draw local, regional and national media exposure.  Encourage activation of events to create an expanded presence throughout the community and encourage merchants, residents, restaurants, and lodges participation. The adoption of the Town of Avon Cultural Plan is a key step in leading the special events, arts and creative growth of Avon. The Town’s Special Events Committee leads plan crafting, annual review, revisions, and recommendation to Town Council. An update will be scheduled for 2022. PAGE 4 OF 11 Vision Avon thrives, with vibrant culture and events. Mission Strengthen the vibrancy and activity of the Avon community by recommending and overseeing an annual portfolio of cultural, artistic, educational, recreational, special events and activities. Purpose The purpose of the Town of Avon Cultural Plan is to establish priorities and initiatives which will guide the Town of Avon in developing and supporting a calendar of events, activities and programs that uphold the Avon Brand Platform. Strategies One. Attract, Retain and Support Special Events The Town will seek to attract, retain and support three categories of special events: 1.1 Develop and Retain Signature Events A signature event is synonymous with the Town of Avon. Recognition of a strong Avon brand for the event must be equal to or greater than the brand and/or name of the sponsoring organization, producer or owner of the event. The event must attract a minimum of 4,000 persons per day and drive overnight visitation with economic benefits, including but not limited to increased lodging stays and higher retail and restaurant sales. The promotion and marketing of the event has wide and successful exposure in State and national markets. Community benefits are required, including participation which reflects the demographic profile of the Town. The event provides a superior community and guest experience’ 1.2 Develop and Support a Portfolio of Diverse Special Events Events, which have attracted or are expected to attract participants from Avon residents, the Vail Valley and guests from outside of the Vail Valley, are defined as special events. The special events provide entertainment, educational, recreational and/or artistic programming. These events are important economic drivers for Avon businesses and are destination events. The special event must also be supported by Avon residents and its workforce, with a either ticketed, volunteer or free attendance. Over time, a special event may become a signature event. 1.3 Develop and Nurture Community Enrichment Events Community celebration events, which contribute to a sense of community, vitality and fun, are encouraged. Community enrichment events are important to a balanced, year-round cultural activity calendar, are appealing to Avon’s diverse demographic population because the opportunities are valued and accessible. PAGE 5 OF 11 Two. Establish Avon’s Special Events Committee and Coordinate with the Avon Cultural Founding Committee Adopt an ordinance establishing the Town of Avon’s Special Events Committee to oversee all special events, including but not limited to purposes, authority, membership numbers, qualifications, and residency requirements. The Avon Special Events Committee will coordinate with the Cultural Founding Committee regarding funding for the arts, creative industries and actions to obtain a Creative District designation. Three. Identify and Support in Facility Development Identify and support event facilities and public spaces to meet the needs of all cultural events and community programming. Venues should reflect Avon’s creative spirit, with public art and design which supports the Avon brand. Tactics Introduction Tactics are the methods and actions to implement the Cultural Plan strategies. Some tactics are singular actions, while others require longer term development to fully achieve the objective. IMPLEMENTATION TACTICS 1.1 Develop and Retain Signature Events TACTIC SUCCESS MEASURE 1 Recommend designation of Salute to the USA as a signature event, secure funding Sustained number of attendees of approximately 19,000 persons; High Net Promoter Score 2 Annually evaluate special events as potential Signature Events Signature event criteria applied PAGE 6 OF 11 IMPLEMENTATION TACTICS 1.2 Develop and Support a Portfolio of Diverse Special Events TACTIC SUCCESS MEASURE 1 Ensure that the special event funding and use of facilities are commensurate with the investment of public funds Post-Event Report, with budget/actual information 2 Attract and develop special events, including entertainment, educational, artistic and recreational, which enhance and contribute to strengthen Avon's reputation and have a positive impact on businesses and the community Number and type of events; Post-Event Reports; MuniRev and Innotopia Data; High Net Promoter Score 3 Develop and implement a strategy to attract two (2) annual top tier major music events, including but not limited to releasing a RFP to hire a promoter and accelerating funding and contracting for these music events Major music events are held successfully as evaluated through Post-Event Reporting 4 Ensure that events are sustainable: Implement sustainability requirements, including but not limited to: Event pro forma presents projection of profitability in three (3) years; environmental practices at the event; funds are leveraged with a significant ratio of sponsorship and vendor sales Applications from producers meet sustainability criteria; Post-Event Reports 5 With the Creative Founding Committee, identify activities which can align/interface with special events Increased cultural interactivity; and creative activities provided in event production elements 6 Develop an Entertainment District, which includes the Avon Performance Pavilion, Nottingham Park’s upper field and adjacent eastern properties and the Main Street Mall District established 7 Determine gaps in event calendar and types of events desired; solicit events to fill gaps 12-month calendar; diverse events 8 Annually assess whether any special events should be designated as a Signature Event Review of Post-Event Surveys 9 Intentionally left blank for Town Council additions PAGE 7 OF 11 IMPLEMENTATION TACTICS 1.3 Develop and Nurture Community Enrichment Events TACTIC SUCCESS MEASURE 1 Ensure that the special event funding and use of facilities are commensurate with the investment of public funds. Post-Event Report, with budget/actual information 2 Ensure that events are sustainable: Implement sustainability requirements, including but not limited to: Event pro forma presents projection of profitability in three (3) years; environmental practices at the event; funds are leveraged with a significant ratio of sponsorship and vendor sales Applications from producers meet sustainability criteria; Post-Event Reports 3 Encourage activation of events to create an expanded presence throughout the community and stimulate the participation of the merchants, residents and bars restaurants, and lodges. Post-Event Report; Diversity of participants 4 With the Creative Founding Committee, identify activities which can align/interface with community enrichment events Increased cultural interactivity; and creative activities provided in event production elements 5 Determine gaps in event calendar and types of community enrichment events desired; solicit events 12-month calendar; diverse events 6 Intentionally left blank for Town Council additions 7 Intentionally left blank for Town Council additions 8 Intentionally left blank for Town Council additions PAGE 8 OF 11 Two. Establish Avon’s Special Events Committee and Coordinate with the Avon Cultural Founding Committee TACTIC SUCCESS MEASURE 1 Develop Special Events standing committee ordinance recommendations for Town Council consideration Ordinance adopted by the Town Council and implemented 2 Create and maintain civic engagement and active participation of Avon's creatives to maximize and expand cultural resources, enjoyment and opportunities with special events and activities The significance of arts, special events and culture will be raised and leveraged in the Town of Avon; a strong community based alliance will form 3 With the Creative Founding Committee, identify activities which can align/interface with community enrichment events Increased cultural interactivity; and creative activities provided in event production elements Three. Invest in Facility Development TACTIC SUCCESS MEASURE 1 For all special event venues: Complete a facility evaluation of other similar venues in Colorado constructing a comparative list with Avon’s facilities and recommendations for investments Evaluation completed and prioritized capital and resource plan developed for funding 2 Engage the creative community in identifying art opportunities, such as interactive art, additions of spoken performance, ah haa moments, etc. in the built and performance spaces Avon has a reputation as being creative and culturally rich 3 Develop a guide for all venues including potential layouts, size, location, capacity, operational and production requirements Guide completed and provided to promoters 4 Develop a marketing tool kit for promoting Avon’s event venues for different types of cultural events, with maps and pictures to create allure, appeal and attract cultural events Tool kit completed and disseminated PAGE 9 OF 11 Communication, Cooperation and Coordination Communication, cooperation and coordination are essential for the success of Avon’s special events and cultural activities. Key guidelines to meet these important, on-going actions include but are not limited to:  Engage the Avon community to ensure cultural offerings enrich quality of life  Ensure that event investments are closely coordinated with community economic needs, with financial input solicited from Avon businesses and Vail Valley Partnership.  Annually provide data from MuniRevs and Innotopia hotel occupancy reports and Post- Event surveys to local businesses.  Outreach to the local business community and organizations to ensure that event investments have a positive impact and to welcome new ideas or initiatives for events  Create an accurate calendar of special events to share with organizations, guests, community members, businesses and other governmental agencies.  Maintain coordination and communication among Town committees, including the Special Events Committee, Trails Committee, Creative Founding Committee, and with Vail Valley Partnership, Beaver Creek Resort Company and other Eagle County governmental agencies through staff meetings and announcements.  Disseminate to the public the Town’s primary points of contact for funding, administration, production, marketing, communication and facility use.  Continue to foster a culture that welcomes special events and provides a “can do” attitude of cooperation between town departments, event producers and local businesses.  Develop marketing recommendations to assist in successful participation.  Continue development of producer handbooks for facility use and resource selection.  Provide special event activity report updates to Avon Town Council twice annually. Funding, Application and Post-Event Review Process In keeping with the public trust and economic realities, every event investment will be held to a high level of accountability. It is the responsibility of the Special Events Committee to annually solicit special events and activities through a written Request for Proposals, recommend funding and/or facility dates to the Avon Town Council for approval, attend events and conduct Post- Event surveys to determine event success. The Special Events Committee will:  Encourage and recruit independent event organizers to produce events in Avon by identifying new possible events, seeking funding for the development of new events, as well as funding consideration for existing events that continue to contribute to the vitality of the community.  Provide guidance to event producers on date recommendations, event concepts, sponsorship, venue, marketing and any other relevant topics, as appropriate.  Ensure events support the Avon brand and contribute to community spirit, social cohesion, community engagement and positive experiences. The Committee is entrusted to ensure all events provide measurable results in terms of specific goals: economic impact, optimization of the event calendar, positive community experience and integration, as well as positive Net Promoter Score results that lead to future loyalty. The PAGE 10 OF 11 Committee also will communicate to producers that events not performing up to the stated criteria in the approved application/or event agreement will be put “on notice” . The process the Committee follows to meet funding, application and post-event review responsibilities is as follows: 1. Makes recommendations to Town Council for changes to the Town of Avon Cultural Plan 2. Provides a request for cultural event funding to the Town Council during budget preparation 3. Identifies specific changes to calendar dates and/or types of special events and activities which the Committee would like to attract to Avon 4. Develops the application form(s), which include, at a minimum:  Committee’s Evaluation Criteria and Scorecard for applicants  Requirements for environmentally sustainable event practices in order to preserve our surrounding environment  Three (3) year projection of attendance and funding requests; with statement regarding ability to reach profitability within three (3) years  Previous year’s event actuals and next year event budget  Marketing program and expenditures to meet marketing requirements set forth by the Committee  Post-event Report i. Intercept or Post-Event report and analysis ii. Total attendance versus projected iii. Actual versus budget financials iv. Statement of successes and challenges v. Meeting with the Committee prior to release of final Town monies, if awarded 5. Releases a Request for Proposals 6. Receives and vets applications making funding recommendations to the Town Council 7. Monitors events once funded 8. Oversees Town’s post-event survey process and results  The event recap template is comprehensive and serves as a detailed guideline for the event producer to present results, successes and areas for improvement for his/her event and build partnership with the Town for a future event  Each event recap answers these strategic questions as well as others and is accompanied by a detailed report on specifics:  Did the event investment increase Avon's economic performance?  Is the event investment being fully leveraged to increase both revenue and marketing reach?  Does the event contribute to a strong sense of community and better quality of life?  What is the potential for event growth?  How did the event results meet the AHSEC scorecard criteria?  Was the event budget maximized for best results? 9. Annually presents a cultural events summary report to Town Council PAGE 11 OF 11 Avon Town Council & Ad Hoc Special Events Committee Avon Town Council Jennie Fancher, Mayor Sarah Smith Hymes, Mayor Pro tem Megan Burch, Councilor & AHSEC Liaison Matt Gennett, Councilor Amy Phillips, Councilor Scott Prince, Councilor Jake Wolf, Councilor & AHSEC Liaison Ad Hoc Special Events Committee (AHSEC) Bobby Bank, Chair Lisa Mattis, Vice-chair Tom Butz, Member Pedro Campos, Member Chris Cofelice, Member Derek George, Member Timothy Haley, Member Kathy Ryan, Member Ruth Stanley, Member TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Scott Wright, Interim Town Manager Date: June 12, 2018 Topic: Work Session Presentation of Fiscal Analysis ACTION BEFORE COUNCIL On Tuesday evening, Brian Duffany, with the consulting firm of Economic and Planning Systems, Inc. (EPS) will present a fiscal analysis comparing the Town of Avon's revenue structure, budget, and services to other peer communities, and assessing the Town's real estate transfer tax impacts. RECOMMENDED MOTION None. This is a work session item for discussion purposes only. BACKGROUND The Town's 2017-2019 Strategic Plan, under the vision to Support a Strong Community, Building On Strengths As a Year-Round Mountain Resort Community, includes a Tier 1 priority to "Retain consultant services to analyze total revenues collected (all major sources) and revenue tax share from the Real Estate Transfer Tax rate, including the primary exemption of $160,000 as a mechanism to increase affordable opportunities for homeownership in Avon to support employee housing shortages for Avon businesses." This is the follow-up to that effort. ATTACHMENT: FISCAL ANALYSIS - Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Transfer Tax Impacts Fiscal Analysis Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Transfer Tax Impacts Prepared for: Town of Avon, CO Prepared by: Economic & Planning Systems, Inc. June 7, 2018 EPS #173082 Table of Contents 1. EXECUTIVE SUMMARY .............................................................................................. 1 Introduction ........................................................................................................... 1 Summary of Findings and Recommendations .............................................................. 2 2. TOWN OF AVON BUDGET AND SERVICES......................................................................... 9 Town Profile ........................................................................................................... 9 Town Services ........................................................................................................ 9 General Fund Budget ............................................................................................. 10 Real Estate Transfer Tax ........................................................................................ 12 Capital Projects .................................................................................................... 14 3. PEER COMMUNITY ECONOMIC TRENDS ......................................................................... 15 Tax Revenues ....................................................................................................... 15 Real Estate and Construction .................................................................................. 17 Typical Home Listings ............................................................................................ 19 4. PEER COMMUNITY GENERAL FUNDS ............................................................................ 23 Selected Communities ........................................................................................... 23 General Fund Revenues ......................................................................................... 24 General Fund Expenditures ..................................................................................... 26 Level of Service Comparison ................................................................................... 28 5. PEER COMMUNITY TAX RATES AND REVENUE SOURCES ..................................................... 29 Property Tax Rates ................................................................................................ 29 Metropolitan Districts............................................................................................. 29 Peer Community RETT ........................................................................................... 32 Sales and Lodging Tax Rates .................................................................................. 35 Lodging Tax ......................................................................................................... 37 Lift Tax ................................................................................................................ 38 Use Tax ............................................................................................................... 38 Marijuana Tax ...................................................................................................... 39 Table of Contents (continued) 6. CAPITAL FUNDING AND DEVELOPMENT CHARGES ............................................................. 40 Capital Funding .................................................................................................... 40 Construction Use Tax ............................................................................................. 43 Development Excise Tax ........................................................................................ 44 Development Fee and Tax Comparison ..................................................................... 44 7. OTHER REVENUE OPTIONS ....................................................................................... 47 Construction Use Tax and Excise Tax ....................................................................... 47 Vehicle Use Tax .................................................................................................... 50 Gallagher Amendment Impacts ............................................................................... 50 List of Tables Table 1 Peer Communities and Services Provided ........................................................... 2 Table 2 Use Tax in Peer Communities ........................................................................... 7 Table 3 Capital Funding Revenue Options ...................................................................... 8 Table 4 Avon Demographics ........................................................................................ 9 Table 5 Avon General Fund Revenue Summary 2016 .................................................... 10 Table 6 Avon General Fund Expenditures Summary 2016 .............................................. 11 Table 7 Real Estate Transfer Tax Trend in Avon ........................................................... 13 Table 8 Comparison Community Key Indicators ........................................................... 23 Table 9 Peer Community General Fund Revenues (2016 Estimated) ................................ 25 Table 10 Expenditure Summary of Comparison Communities General Fund Budget 2016 ..... 27 Table 11 Peer Community 2016 Mill Levies ................................................................... 30 Table 12 Major HOA and Special District Mill Levies ........................................................ 31 Table 13 RETT Rates in Colorado Communities .............................................................. 32 Table 14 Real Estate Transfer Tax of Comparison Communities ........................................ 33 Table 15 Sales and Lodging Tax Rates .......................................................................... 35 Table 16 Taxable Sales in Comparison Communities ....................................................... 36 Table 17 Lodging Tax Use........................................................................................... 38 Table 18 Peer Community Use Tax Rates and Allocation Purpose ...................................... 39 Table 19 Marijuana Tax Rates ..................................................................................... 39 Table 20 Capital Projects Funding Sources, 2012-2016 Average ....................................... 42 Table 21 Peer Community Use Tax Rates and Allocation .................................................. 43 Table 22 Residential Development Fee and Tax Comparison ............................................ 45 Table 23 Commercial Development Fee and Tax Comparison ........................................... 46 Table 24 Construction Valuation Trends ........................................................................ 48 Table 25 Annual Construction Use Tax Estimates ........................................................... 48 Table 26 Annual Excise Tax Estimates .......................................................................... 49 Table 27 Combined Use Tax and Excise Tax Estimates .................................................... 49 Table 28 Estimated Annual Vehicle Use Tax .................................................................. 50 List of Figures Figure 1 Peer Community Revenue Diversity .................................................................. 3 Figure 2 Vail Valley Mill Levies ...................................................................................... 4 Figure 3 Development Fees for New Residential Construction ............................................ 5 Figure 4 Avon Full-time Equivalent Employees, 2007-2017 ............................................. 12 Figure 5 Sales Tax Revenue Trend, 2007-2016 ............................................................. 15 Figure 6 Lodging Tax Revenue, 2007-2016 ................................................................... 16 Figure 7 Lodging Tax Indexed to 2007 ......................................................................... 16 Figure 8 Residential Building Permits Issued, 2007-2016 ................................................ 17 Figure 9 Home Sales Volume, 2007-2017 ..................................................................... 18 Figure 10 Average Home Sale Price, 2007-2017.............................................................. 18 Figure 11 General Fund Expenditures Per Capita and Per Housing Unit indexed to Avon ........ 28 Figure 12 Capital Project Funding Sources, 2012-2016 Average ........................................ 41 Economic & Planning Systems, Inc. 1 173082-Revenue Analysis 06-07-2018 1. EXECUTIVE SUMMARY Introduction The Town of Avon’s 2017 – 2019 Strategic Plan directed that consultant services be retained to analyze total revenues collected (all major sources) and revenue share from the Real Estate Transfer Tax (RETT) rate. As part of the Strategic Plan for fiscal years 2017-2018, a tier one priority is to utilize the RETT to bolster affordable, workforce housing. This report provides information and analysis on how Avon’s revenue structure (taxes and fees) compares to surrounding communities, including an assessment of the impact of the RETT on the local real estate market; and, options for the $160,000 local resident exemption. The revenue implications for modifying the RETT are also discussed. The Taxpayers Bill of Rights (TABOR) does not allow any new or increased RETT, any reduction or repeal of the RETT would be permanent. This information can be used by the Town to inform any considerations it may make in altering its revenue structure, taxes, and/or fees. This report is not suggesting or recommending any new taxes or tax rate increases; rather, it discusses tax options which have been implemented by Peer communities for informational purposes only. To inform the Town Council and staff, this report contains detailed evaluations and comparisons of the revenue structure and budgeting practices of several peer communities in nearby Eagle and Summit Counties. The peer communities selected for analysis are Vail, Gypsum, Breckenridge, Frisco, Silverthorne, and Steamboat Springs. One of the criteria used for selecting these communities was the existence of a Real Estate Transfer Tax (RETT), a revenue source that is no longer allowed to be adopted as a new revenue source but has been grandfathered where it existed when the Taxpayer Bill of Rights (TABOR) was passed in 1992. Golden in Jefferson County was also included as a comparison to a suburban Front Range community but is not the focus of the analysis. The report is organized into seven chapters, outlined below: 1. Executive Summary – Summarizes the key findings and considerations on Avon’s revenue structure compared to surrounding communities and an assessment of the impacts of the 2.0 percent RETT on the local real estate market. Included are other revenues collected by the comparative communities, which are today not collected by Avon that could be considered if changes in the RETT or other taxes or fees resulted in lower revenues for capital projects funding. 2. Town of Avon Budget and Services – Provides a demographic snapshot of the Town, description of the services provided by the Town, and a summary of the General Fund and major revenue sources and expenditures. 3. Economic and Real Estate Conditions – Presents trend data on major economic indicators such as residential construction (building permits), sales and lodging tax collections, and residential sales volume and average prices for the Eagle County peer communities. 4. Peer Community General Funds – Contains budget data categorized into common categories for comparison across communities and compares General Fund expenditures per- capita and per housing unit as a gauge of the level of service provided by each community. Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 2 Fiscal Analysis 5. Peer Community Tax Rates and Revenue Sources – Summarizes tax rates, revenue sources, and the uses of specific revenue sources including sales tax, lodging tax, RETT, and other revenues. 6. Capital Funding and Development Charges – Documents and compares the capital funding sources and practices of the peer communities to Avon. Also compares development fee and tax levels to determine where Avon’s taxes and fees lie from a competitive perspective. 7. Other Revenue Options – Identifies three new revenue sources that other communities collect but that Avon does not: construction use tax, construction excise tax, and vehicle use tax. Revenue projections for each source are also provided. These revenues could be considered if supplemental revenues are desired or needed to offset other tax or fee changes or reductions. Summary of Findings and Recommendations 1. The Town of Avon provides nearly the full range of municipal services to its residents and guests at levels similar to surrounding communities. Avon is a full-service municipality with a staff of 89 full time equivalent employees. The Town’s major services include a police department, a public works department, plus City government and administrative functions including the Mayor and Town Council, Planning and Zoning Commission, Town Attorney, Town Clerk, and Municipal Court as shown in Table 1. The Town also operates its own free public transportation system, like Breckenridge and Vail. Vail and Steamboat have their own fire departments; special districts provide fire and EMS coverage in each of the other peer communities. Table 1 Peer Communities and Services Provided Town/City Fire/EMS Police Parks & Rec Rec. Facilities Public Transit Public Works Eagle County Avon - Rec Center  Vail - Rec Center  Gypsum - Rec Center  Summit County Breckenridge - Rec Center  - Nordic Center Silverthorne - Rec Center  - The Pavilion Frisco - Adventure Park  - Marina Routt County Steamboat Springs - Sports Complex  - Howelson Hill Source: Economic & Planning Systems Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 3 Fiscal Analysis In percentage terms, expenditures for major services and departments are similar across the peer communities. In Avon, Vail, Breckenridge, and Silverthorne, Public Works comprises about 25 percent of the General Fund budget. General Government and Administration is approximately 20 percent of the General Fund budget in each community. In Avon, Vail, Breckenridge, and Silverthorne, Police expenditures range from about 15 to 20 percent of the General Fund. Recreation and Culture expenditures in the General Fund vary widely by community according to community priorities, available revenue, and facilities operated. On a per housing unit basis, a proxy for the local + visitor population, Avon’s level of service (spending per housing unit) is about 15 percent higher than Breckenridge, Silverthorne, and Steamboat but 23 percent lower than Vail’s. 2. The percentage of sales tax in the General Fund is a key indicator of revenue diversity which is important to being resilient to economic downturns. Sales tax is 55 percent of Avon’s General Fund revenues, similar to Vail and Gypsum. Steamboat and Silverthorne do not have a property tax, and are therefore more at risk to cutting services if sales tax revenues decline. In Avon, approximately 55 percent of the General Fund revenue comes from sales tax, which is similar to Vail and Gypsum as shown in Figure 1. In Frisco and Silverthorne, sales tax is 60 to 65 percent of the General Fund, and 72 percent in Steamboat. Silverthorne and Steamboat eliminated their property taxes many years ago, making them especially vulnerable to economic cycles and the lack of growth in brick and mortar retailing. In Breckenridge, sales tax is 42 percent of General Fund revenues due to higher lodging and property taxes (and a larger assessed value). Breckenridge is able to generate $2.6 million per year in property tax compared to $1.75 million per year in Avon, with a lower mill levy than Avon, due to the fact that Breckenridge is a larger community with over twice the assessed value of Avon. In Avon, property tax comprises 10 to 12 percent of General Fund revenues, similar to Vail and Breckenridge. Figure 1 Peer Community Revenue Diversity 55.5%55.7%55.7% 42.5% 65.4%63.5%72.0% 11.5%13.3%6.6% 10.7% 1.1% 8.2% 11.5% 9.7% 12.1%13.8%22.6%1.7% 15.1% 31.0%37.8% 23.2%20.7%12.9% 26.4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Avon Vail Gypsum Breckenridge Silverthorne Frisco Steamboat Percent Sales & Use Tax Property Tax Lodging Tax Recreation Fees Intergov. & Other Source: Economic& Planning Systems Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 4 Fiscal Analysis 3. Avon’s total sales tax levels (all rates combined) are similar to the surrounding communities. The total of all property tax mill levies in Avon is higher than some peer communities, but lower than in the major metropolitan districts around the Town except the Edwards/Homestead metropolitan district. The total combined sales tax in Avon (town, State, county, and county transit) is 8.4 percent. This is the same as in Vail, and 1.0 percent higher than Gypsum. Breckenridge has higher sales tax at 8.875 percent due to a higher County transit tax, and the Summit County Regional Housing Authority sales and use tax of 0.725 percent. However, Avon’s combined lodging tax rate is 12.4 percent, which is roughly 2.5 to 3.0 percent higher than the peer communities although room rates are somewhat lower than in Vail and within the Beaver Creek Resort Company boundaries. The total mill levy on most property in Avon is 63.008, compared to 63.201 in Gypsum and just under 50 mills in Vail, Frisco, and Silverthorne, and just over 50 mills in Breckenridge as shown in Figure 2. The roughly 10 mill difference equates to approximately $540 per year in property tax on a $750,000 home. This is due to a higher school district mill levy in Eagle County (25.209), and a higher Town general operating mill levy than the peer communities (8.956 mills). On the other hand, several of the major metropolitan districts in the Vail Valley have higher total mill levies ranging from 55.743 mills in the Edwards (Homestead) Metropolitan District to approximately 75 mills in Eagle-Vail and Arrowhead to over 100 mills in Cotton Ranch in Gypsum and Eagle Ranch in Eagle. Figure 2 Vail Valley Mill Levies 0 20 40 60 80 100 120 AvonGypsumVailBreckenridgeFriscoSilverthorneSteamboatEagle-VailEdwards Metro DistrictArrowhead Metro DistrictBeaver Creek Metro Districtotton Ranch Metro DistrictEagle Ranch Metro DistrictMill Levy County Town Other Local & Special District Metro District Source: Economic& Planning Systems Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 5 Fiscal Analysis In Avon, development fees and materials taxes (sales and use tax) on a three-bedroom home (2,500) square feet are estimated at $41,000, $46,000 in Vail, and $26,000 in Gypsum. In Summit County, total fees range from $27,000 to $32,000. The biggest differences are in the cost of water tap fees which vary widely according to the cost of acquiring water rights and developing the treatment and conveyance systems required to deliver potable water to a tap. Figure 3 Development Fees for New Residential Construction 4. Real Estate Transfer Tax (RETT) Revenues comprise a large portion of funds for capital projects in Avon and the Peer communities. In Avon, the 2.0 percent RETT generates approximately $2.4 million per year on average, with surges during the development of major real estate projects or bulk real estate transactions. Historically, Avon relied almost solely on the RETT for capital projects. Over the past five years however, the RETT comprised approximately 20 percent of Avon’s capital budget of approximately $10.5 million each year compared to about $2.4 to $3.0 million per year previously. A number of large projects required debt financing and general fund transfers. In Vail, the 1.0 percent RETT makes up about 30 percent of the $20.0 million capital budget. In Breckenridge, the 1.0 percent RETT is approximately 46 percent of the $10.2 million capital budget. Frisco’s smaller capital budget of $1.1 million uses 1.0 percent RETT revenues for nearly 30 percent of the funding. Vail, Silverthorne, and Steamboat have additional dedicated capital funding sources including construction use taxes and excise taxes; Avon does not currently collect these revenues. Most peer communities supplement their capital budgets with a portion of the sales tax and transfers of operating revenues from their General Funds. The more a community can rely on dedicated funding sources for capital projects, the less it needs to transfer from general operations and maintenance funding which helps maintain the level of day-to-day Town/City services. $24,946 $30,183 $14,095 $19,903 $14,301 $13,800 $11,716 $2,500 $5,000 $5,000 $4,350 $16,000 $15,600 $12,000 $10,000 $8,000 $8,000 $16,000 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 Avon Vail Gypsum Breckenridge Frsico Silverthorne Steamboat Cost Impact Fees Excise Tax Construction Use Tax Source: Economic& Planning Systems Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 6 Fiscal Analysis 5. Interviews with local realtors indicate that the impact of Avon’s 2.0 percent RETT on the real estate market is minor below approximately $750,000 to $1.0 million. Avon’s location and available housing product types may have more of an impact on the market. Avon’s 2.0 percent RETT is higher than the peer communities which collect a 1.0 percent RETT. However, RETTs and transfer fees are common in the Vail Valley and in other Colorado mountain communities which may make Avon’s RETT less of an anomaly. In addition, some large HOAs and metro districts collect real estate transfer assessments (transfer fees). The Beaver Creek Resort Company collects a 2.375 percent transfer fee, the highest in the Vail Valley. The Arrowhead Metro District collects a 1.5 percent transfer fee, and Eagle Ranch collects a 1.0 percent transfer fee. Edwards does not levy a transfer fee but has a $1,260 ($105/month) HOA fee. The impacts of the RETT on the local market cannot be quantified, but are characterized as minor by area realtors interviewed. For local buyers (under approximately $750,000 to $1.0 million), Avon’s RETT may be a consideration for buyers also looking in Edwards, Eagle, or Gypsum. The housing product choices and comparative pricing in these locations may have more of an impact as buyers can get more home for their money, and a home more suitable for a family, further down valley. In the second home market above $1.0 million, the RETT is not judged to affect buyers’ decisions. The decision on where and what to buy in the upper market segments is more influenced by quality for the price, location, views, and other un- quantifiable buyer preferences. Some have commented that in Avon, the industrial/ commercial gateway to Wildridge and steep access road may have more of a negative impact on values in that area of Avon than Avon’s higher RETT. 6. With lower real estate values than Vail and Beaver Creek, there is still an argument that Avon’s higher RETT is not justified. However, any modifications to the existing RETT structure need to be considered carefully to comply with the Taxpayers Bill of Rights (TABOR) and in the context of the Town’s mix of operating revenues and capital funding sources. TABOR, passed in 1992, prohibited further RETTs from being enacted in Colorado but allowed existing RETTs to continue. Under TABOR, the Town could lower or eliminate its RETT without voter approval. The locals’ exemption could also be increased above $160,000 as it would be effectively a tax decrease, but not lowered or eliminated as it would be a tax increase requiring voter approval. Given that the Town funds approximately 20 percent of its annual capital budget with RETT revenue, if RETT revenues were reduced, the Town would need to find other sources to replace this or accept lower levels of service and investment in community amenities and infrastructure. A TABOR election would be needed to authorize any new taxes to replace reduced revenue from the RETT. 7. The RETT exemption for local resident first time buyers is not large enough to have a measurable impact on attainable home prices or the workforce housing supply. The average home price in Avon was $683,000 at the end of 2017 which requires an income of approximately $150,000 to afford (over 250 percent of the Town’s median household income). The RETT on the average priced home would be $13,660 with the buyer and seller each paying half ($6,830 each) as is the custom in the Eagle County market. The local’s Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 7 Fiscal Analysis exemption on the first $160,000 of the sale price saves $3,200 in RETT—roughly half of the RETT on the average priced home—but only lowers the net purchase price to $679,800, requiring roughly the same household income. The housing affordability challenges in Avon are more related to the price and quality for the price of the existing housing stock than to the RETT. Edwards, Eagle and Eagle Ranch, and Gypsum have developed more housing attainable to locals in recent years, which is drawing more local workforce buyers further down valley. On the other hand, some realtors noted that local buyers do see Avon’s exemption as a “good gesture” even though the financial benefits are modest in the context of a home purchase. 8. Two other revenue sources are forwarded for consideration if new revenues are needed to balance out reductions in other revenues such as the RETT. These are a construction use tax and a construction excise tax, revenues that some peer communities collect but that Avon does not currently. Construction use and construction excise taxes are commonly used for capital projects, as there is a nexus between the impacts of new development and a community’s infrastructure needs. The Town of Avon collects sales tax on building materials through a system of licensing contractors and suppliers, and on-site follow-up by Town staff to ensure that sale tax has been paid. This is an inefficient system and likely results in lost revenue. A more efficient system that would likely generate more revenue would be to collect a construction use tax, paid at time of building permit. A builder then presents the Town’s receipt when purchasing materials for use in Avon and is not double-charged sales or use tax with suppliers. In most communities, the use tax rate is the same as the sales tax rate, which is 4.0 percent in Avon. Construction excise taxes are often charged as a percentage of construction valuation, calculated at the permit counter, or on a per square foot basis. Some communities in Colorado charge both an excise tax and a construction use tax. Excise tax is a good substitute for development impact fees, as it is a more flexible funding source that can be used for maintenance projects as well as projects that serve new development. Impact fees can only be used on projects that are growth-related. Steamboat Springs, for example, repealed its impact fees and replaced them with a voter-approved 1.2 percent excise tax, and has a construction use tax (4.0 percent) as shown in Table 2. Silverthorne does not have a use tax, but charges a $2.00 per square foot excise tax for capital projects. Vail is the only peer community in Eagle or Summit County that charges a construction use tax although many other I-70 corridor communities have this tax including Gypsum, Eagle, Silt, and Rifle. Table 2 Use Tax in Peer Communities Avon Vail Breckenridge Frisco Silverthorne Steamboat Construction Use Tax No Yes No No No Yes Construction Use Tax Allocation N/A Capital N/A N/A N/A Capital Vehicle Use Tax No No No No No Yes Use Tax Rate 4.0%4.0%2.5%2.0%2.0%4.0% Source: Economic & Planning Systems Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 8 Fiscal Analysis As shown below, a 4.0 percent use tax is estimated to generate between approximately $151,000 to $386,000 per year under current market conditions and depending on the pace of real estate development and construction. Since the construction use tax would replace the sales tax on building materials, the amount of ‘net new’ revenue would be less than what is shown below. An excise tax of 1.0 percent would generate between $75,000 and approximately $200,000 per year and would be new revenue if the sales tax on building materials were left in place. If both taxes were implemented, they could generate an estimated $226,000 to $580,000 per year as shown below. Table 3 Capital Funding Revenue Options 9. A vehicle use tax could also be considered as an additional revenue source depending on public support. The advantage in passing construction use and excise taxes with voters is that new development (new residents and second homeowners, new commercial development) pays more of the burden than existing residents. A vehicle use tax would be paid more by existing residents and businesses and may be harder to gain public support for. However, with few other options available, the vehicle use tax was also forwarded for consideration. The only peer community with a vehicle use tax is Steamboat Springs; the Eagle and Summit County peer communities do not collect this tax. We have estimated that a vehicle use tax in Avon would generate between $260,000 to $368,000 per year. 10. A sales or property tax dedicated to capital projects could also be considered. While typically more difficult to pass with voters, sales and property taxes dedicated to special projects, sometimes paid for through a bond issue, have been successfully passed in many Colorado communities. A sales tax that sunsets at a defined time period or at a total revenue trigger could be considered, noting that visitors would be paying a large portion of the total sales tax. A property tax dedicated to capital projects may be a more permanent solution, if the case can be made that second home and other non-local property owners (e.g., lodging/restaurant and national retailers) pay large a portion of the cost, then at least 35 percent of homes are estimated to be second homes. Low High Low High Low High $150,900 $386,400 $75,450 $193,200 $226,350 $579,600 Source: Economic & Planning Systems analysis of Town of Avon CAFR 4.0% Use Tax 1.0% Excise Tax Total if Both Implemented Economic & Planning Systems, Inc. 9 173082-Revenue Analysis 06-07-2018 2. TOWN OF AVON BUDGET AND SERVICES Town Profile Avon is a home rule municipality in Eagle County located along I-70 eight miles west of Vail, Colorado. The Town has a full time resident population of 6,570, as shown in Table 4. It is an important shopping, services, and visitor destination in the Vail Valley and Colorado in general. Avon is a major commercial hub for the region with major shopping locations including a Walmart Supercenter, Home Depot, City Market, several sporting goods stores, and other retail businesses, restaurants, and hotels. Table 4 Avon Demographics While not a pure ski area portal like Vail or Breckenridge, Avon is the primary access point to Beaver Creek Ski Resort (owned by Vail Resorts) which attracts approximately 900,000 annual skier visits compared to 1.4 to 1.6 million at Vail and Breckenridge. Beaver Creek and its associated base village area and nearby developments such as Bachelor Gulch are in unincorporated Eagle County. Avon is connected to Beaver Creek by the Riverfront Gondola which travels to Beaver Creek Landing from Avon Station. The Town also has a free bus service to bring residents and visitors to Avon Station. Town Services Avon is a full-service municipality with a staff of 89 full-time equivalent employees. The Town’s major services include a police department, a public works department, plus Town government and administrative functions including the Mayor and Town Council, Planning and Zoning Commission, Town Attorney, Town Clerk, and Municipal Court. The Town does not have its own fire department; fire protection is provided by the Eagle River Fire Protection District. The Town also operates its own free public transportation system consisting of three in-town shuttles (Blue Line, Red Line, and Avon Loop Night Rider), a skier shuttle to Beaver Creek, and an evening restaurant shuttle connecting Avon with Beaver Creek Resort. The Town’s transit system carries approximately 1.0 million passengers each year on the gondola and the fleet of 10 transit buses. The gondola is operated and funded jointly by the Town and Beaver Creek. The Town’s transit system complements, but is separate from regional commuter service provided by the Eagle County Regional Transit Authority. Indicator Population 6,570 Housing Units 3,657 100.0% Occupied Units 2,365 64.7% Vacant Units 1,292 35.3% Household Income Median $56,223 Average $93,350 Median Home Price $683,000 Jobs 3,915 Source: Colorado Department of Local Affairs; U.S. Census ACS, Land Title Avon Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 10 Fiscal Analysis General Fund Budget Like most communities, the Town’s General Fund is the primary fund for operations, maintenance, and administration. The Town’s major direct services are funded through the General Fund and include police, parks and recreation, cultural support, and general Town administration costs. The General Fund also subsidizes the cost of operating a free transit system, and pays for operation and maintenance of the Town’s vehicle fleet. Revenues As shown in Table 5, the General Fund had revenues of approximately $15.4 million in 2016 and expenditures of $16.5 million, as shown in Table 6. The difference in revenues and expenditures was made up with a drawdown of reserves. Sales tax from the Town’s 4.0 percent sales tax is the largest revenue source, comprising 50 percent of revenues or $7.7 million. Property tax from the 5.285 mill levy generates only 11 percent of General Fund revenue at $1.7 million. The next largest revenue source is the 4.0 percent lodging tax that generates 8.1 percent of General Fund revenues or $1.25 million. The remaining 30 percent of General Fund revenues come from other minor taxes, fees, charges for services, recreation center user fees (8.0 percent), and intergovernmental revenue (largely State and Federal grants). A large portion of the intergovernmental revenue, $471,000, comes from the sharing of the 1.0 percent Eagle County sales tax. Avon receives 15 percent of this revenue back from Eagle County. Of the 1.0 percent Eagle County sales tax, a 0.5 percent rate is dedicated to the Eco Transit service and trail projects. Table 5 Avon General Fund Revenue Summary 2016 Revenues 2016 Final Revised Budget Percent Sales Tax 7,725,601 50.2% Property Tax 1,747,601 11.3% Lodging Tax 1,249,036 8.1% Utility tax 110,000 0.7% Specific Ownership Tax 120,000 0.8% Fines and Forfeits 92,445 0.6% Franchise Fees 415,000 2.7% Charges for Services 191,085 1.2% Recreaction Facility 1,237,939 8.0% Licenses & Permits 206,100 1.3% Intergovernmental 1,004,571 6.5% Other 1,300,135 8.4% Total $15,399,513 100.0% Source: Town of Avon 2017 Adopted Budget, Economic & Planning Systems Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 11 Fiscal Analysis Avon relies heavily on sales tax as its primary general revenue source. Sales tax can fluctuate in poor tourism seasons (e.g. low snow years) and economic downturns. As a safeguard, Avon maintains a 25 percent minimum reserve balance as well as the 3.0 percent TABOR Emergency Reserve required by State law. In 2016, these were $3.6 million and $545,000 respectively. There was also $350,000 in undesignated/unreserved funds. In 2017, Special Events were established in the budget with $390,000 allocated to it. Absent additional revenue or a debt issuance, Avon can fund capital projects or community amenities after all operational needs are funded and reserve requirements are met. Expenditures The General Fund operating expenditures were $16.5 million in 2016, as shown in Table 6. The three largest department expenditures were Public Works, Police, and General Government (town administration). The Public Works department accounted for 24 percent of General Fund expenditures at nearly $4.0 million. The next largest department expenditure was Police at $3.2 million or 19.4 percent of the General Fund budget. General Government costs were $3.2 million or 19 percent. The General Fund also transfers money to other departments and funds for operations and capital projects. The largest operating transfers were to Transit, at $1.1 million, and Fleet Maintenance at $450,000. Transfers to Capital Projects will vary widely from year to year, but were 10 percent of expenditures in 2016 at $1.67 million. Table 6 Avon General Fund Expenditures Summary 2016 Expenditures 2016 Final Revised Budget Percent General Government 3,157,669 19.2% Police 3,204,355 19.4% Public Works & Facilities 3,995,687 24.2% Community & Economic Dev 1,380,476 8.4% Recreation & Culture 1,294,689 7.9% Transfer to Town Center West Fund 95,874 0.6% Transfer to Capital Projects Fund 1,670,000 10.1% Transfer to Transit 1,134,994 6.9% Transfer to Fleet Maintenance 450,000 2.7% Other 99,000 0.6% Total $16,482,744 100.0% Source: Town of Avon 2017 Adopted Budget, Economic & Planning Systems Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 12 Fiscal Analysis The Town’s staffing level declined from 115 full-time equivalent positions (FTE) in 2007 to about 80 FTEs in 2012 and 2013 after the Great Recession. The Town staff has only grown to 89 as of the 2017/18 budget cycle, as shown below in Figure 4. Figure 4 Avon Full-time Equivalent Employees, 2007-2017 R eal Es tate Transfer Tax Many mountain and resort communities in Colorado have a Real Estate Transfer Tax (RETT) enacted under home rule authority prior to TABOR (1992). RETTs range generally from 1.0 to 2.0 percent of the transaction price. It is customary for the buyer and seller to split the cost of transfer fees in a sale. Communities often earmark RETT revenue for capital projects funding and affordable/workforce housing although some use it for general operations and maintenance. The Taxpayers Bill of Rights (TABOR) prohibited further RETTs from being enacted in Colorado but allowed existing RETTs to continue. Several communities have negotiated for real estate transfer assessments (RETAs) to be applied to new development that requires discretionary approvals (e.g. zoning changes and annexations) and/or to mitigate the impacts and costs of new infrastructure and municipal services to new development. A RETA is fee on real estate transactions within a defined area that functions like RETT. It is a fee, not a tax, and is a voluntary agreement implemented by the developer/land owner implemented through a Declaration of Restrictive Covenant. Avon’s 2.0 percent RETT is the primary source of funding for capital improvement projects and is deposited into the Capital Projects Fund. The RETT is a volatile revenue source as it varies with the strength of the real estate market, new real estate development, and major property acquisitions. For example, the Town received $640,000 in additional RETT in 2016 from the sale of vacation club ownership points within the Wyndham Vacation Ownership Club. 0 20 40 60 80 100 120 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 FTE Source: Economic& Planning Systems Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 13 Fiscal Analysis Avon budgets for a base or average level of revenue each year of about $2.2 to $2.4 million. When there are spikes in RETT from events like those described above, the Town keeps these excess monies separate to be earmarked for capital projects and/or community amenities. As part of the Strategic Plan for fiscal years 2017-2018, a tier one priority is to utilize the RETT to bolster affordable, workforce housing. This is a policy and budgeting tradeoff—as more RETT is used for workforce housing initiatives, less will be available for other capital projects absent revenue increases or other revenue sources. Table 7 Real Estate Transfer Tax Trend in Avon RETT Exemption The Town exempts the first $160,000 of a home’s sale price from the RETT when the property is sold to a primary resident. This exemption has been in place for many years and was established to support workforce housing and first-time homebuyers in Avon. This exemption saves buyers who qualify for the exemption $3,200 in RETT payments. On the other hand, the Town forgoes $3,200 per transaction. The Town processes about 100 of these exemptions per year, equating to roughly $320,000 in annual exemptions for primary resident property purchases. Year RETT Change 2007 $2,540,943 2008 3,093,021 17.8% 2009 1,761,980 -75.5% 2010 2,159,525 18.4% 2011 1,616,982 -33.6% 2012 1,707,648 5.3% 2013 1,574,502 -8.5% 2014 3,764,526 58.2% 2015 2,369,314 -58.9% 2016 3,497,602 32.3% Annual Average $2,410,000 Source: Town of Avon CAFR; Economic & Planning Systems Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 14 Fiscal Analysis Capital Projects An important aspect of the continued success and sustainability of Avon is maintaining and enhancing its quality of life through new investments and programs, and keeping up with the maintenance on mature Town infrastructure (roads, utilities, public buildings, parks, etc.). This strategy benefits residents, businesses, and visitors, and is part of economic and community development in most mountain and resort communities in Colorado. Also, like other communities, there is a limited amount of funding for new projects in Avon. When the town paid of bonds in 2016, it retired the debt service mill levy of 2.809. Some of the recent capital expenditures and other potential projects that have been identified are outlined below. • Joint Public Safety Facility – The Town and the Eagle River Fire Protection District are partnering to construct a joint Public Safety Facility (fire and police) at Lot 1B, Buck Creek PUD at 60 Buck Creek Road. The project was completed in September of 2017 at a cost of approximately $6.5 million. • Workforce Housing – The Town Council is interested in ways to fund more workforce housing in the Town. • Hahnewald Barn – This is a barn built around 1910 by the Hahnewald family. It is currently owned by the Eagle River Sanitation District and located on its property. The barn is in severe disrepair and is unsafe for occupancy or use. There are proposals to relocate and reconstruct the barn as an events or educational facility with costs in the several million dollar range. • Recreation Center Expansion – There have been proposals to expand the Avon Recreation Center to add indoor courts and gym facilities, with costs of at least $7.0 million. A vote in 2014 to extend the debt service mill levy was defeated by a narrow margin. • New and Former Town Hall – The Town is relocating its Town Hall to an existing office building it purchased for $1.5 million. The Town is using $3.0 million in financing proceeds and a transfer of $1.4 million from the Urban Renewal Fund to complete renovations and interior finishes. Economic & Planning Systems, Inc. 15 173082-Revenue Analysis 06-07-2018 3. PEER COMMUNITY ECONOMIC TRENDS This chapter provides background trend data on major economic indicators in the peer communities with a focus on Eagle County. As shown in this analysis, each major indicator is either stable or trending upward in Avon and the peer communities. Home sales data was provided by the Avon office of Land Title. Tax Revenues Each peer community has experienced sales tax growth from 2007 through 2016 as shown in Figure 5. Breckenridge had the strongest sales tax growth at 5.3 percent per year, followed by Avon and Vail both at 4.4 percent per year. Figure 5 Sales Tax Revenue Trend, 2007-2016 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Revenue Gypsum Vail Breckenridge Frisco Silverthorne Steamboat Springs Avon Source: Economic& Planning Systems Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 16 Fiscal Analysis Lodging tax has also been growing over the past 10 years. Avon had the strongest growth in lodging tax, at 12.3 percent per year as shown below in Figure 6. Avon’s lodging tax is now at 283 percent of its level in 2007, as shown in Figure 7. Vail’s lodging tax grew at 5.0 percent per year during this time period and Breckenridge’s grew at 5.8 percent per year (corrected for their 2010 lodging tax increase). Figure 6 Lodging Tax Revenue, 2007-2016 Figure 7 Lodging Tax Indexed to 2007 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 RevenueVailBreckenridgeFriscoSilverthorneSteamboat Springs Avon Source: Economic& Planning SystemsSource: Economic& Planning Systems 0.00 50.00 100.00 150.00 200.00 250.00 300.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Index Vail Breckenridge Frisco Silverthorne Steamboat Springs Avon Source: Economic& Planning Systems Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 17 Fiscal Analysis Real Estate and Construction The most comparable peer communities are largely built out and have land constraints, which results in either low numbers of new residential building permits or volatile peaks that correspond with large infill and redevelopment projects. In Avon, there have been approximately 10 residential building permits per year as shown in Figure 8. Gypsum experienced a sharp decline in construction from 2007 through 2011 but has since recovered to about 30 units per year. Vail, Breckenridge, and Silverthorne have seen ups and downs corresponding with larger development projects coming online. Figure 8 Residential Building Permits Issued, 2007-2016 0 20 40 60 80 100 120 140 160 180 200 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Building Permits Gypsum Vail Breckenridge Frisco Silverthorne Avon Source: Economic& Planning Systems Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 18 Fiscal Analysis Sales volume is an indicator of how active a market is and how many buyers and sellers are in the market. Home sales volume has been trending up in Avon since 2011 as shown in Figure 9. The other communities have generally followed the same pattern except for Beaver Creek which has slowed since 2015. Figure 9 Home Sales Volume, 2007-2017 The average sale price in Avon has been largely flat since 2007 with some peaks in 2009 and 2014. The current average price is $683,000 compared to $680,000 in 2007. Bachelor Gulch and Beaver Creek have experience major price increases over the past two years, likely skewed by a small number of very high-priced transactions. Appreciation in Vail was 1.2 percent per year over this time period, 1.5 percent in Eagle Vail, 0.8 percent in Edwards, and 2.0 percent in Eagle. Figure 10 Average Home Sale Price, 2007-2017 0 100 200 300 400 500 600 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Transactions Vail Eagle Vail Beaver Creek Bachelor Gulch Arrowhead Edwards Eagle Gypsum Avon Source: Economic& Planning Systems 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Avg. Price Vail Eagle Vail Beaver Creek Bachelor Gulch Arrowhead Edwards Eagle Gypsum Avon Source: Economic& Planning Systems Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 19 Fiscal Analysis Typical Home Listings In this section, EPS conducted an MLS search for homes priced between approximately $450,000 and $750,000 in Avon, Edwards, and Eagle. The active listing data shows that a broader variety of housing is available in this price range further down valley from Avon. Avon and Vicinity $459,000 Condo 2 bd – 2 ba – 1,149 sq. ft. Built 1980 288 W. Beaver Creek Blvd Avon, CO $475,000 Condo 3 bd – 2 ba – 1,334 sq. ft. Built 1981 39255 Hwy 6 #A304 Avon, CO $519,000 Condominium 1bd – 2ba – 882 sq. ft. Built 1988 1206 Village Rd. #B102 Beaver Creek, CO $525,000 Condominium Studio – 1 ba – 612 sq. ft. Built 1996 51 Offerson Rd. #205 Beaver Creek, CO Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 20 Fiscal Analysis $685,000 Condo 2 bd – 3 ba – 1,125 sq. ft. Built 1981 120 Offerson Rd # 7110 Beaver Creek, CO $715,000 Condo 2 bd – 2 ba – 1,068 sq. ft. Built 1981 120 Offerson Rd #6220 Beaver Creek, CO Edwards $470,000 Condo 3 bd -2 ba – 1,415 sq. ft. Built 1998 1005 Crazy Horse Circle Edwards, CO $520,000 Townhouse 3 bd – 4 ba – 1,719 sq. ft. Built 1994 1000 Homestead Drive Unit 30 Edwards, CO Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 21 Fiscal Analysis $695,000 Condo 2 bd – 2 ba- 1,084 sq. ft. Built 1998 74 Cresta Rd #207 Edwards, CO $719,000 House 3 bd – 3 ba – 2,202 sq. ft. Built 1997 160 Hackamore Road Edwards, CO Eagle $499,000 Condo 2 bd – 2 ba – 1,077 sq. ft. Built 2007 1185 Capitol St. #R-204 Eagle, CO $480,000 Condo 2bd – 2 ba – 1,430 sq. ft. Built 2005 330 Broadway Street Apt F Eagle, CO Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 22 Fiscal Analysis $486,900 Condo 3 bd – 3 ba – 1,203 sq. ft. Built 1980 384 Hilltop St Apt. 5 Eagle, CO $650,000 House 4 bd – 4 ba – 3,000 sq. ft. Built 2006 280 Bluffs Dr Eagle, CO $715,000 House 5 bd – 5 ba – 3,799 sq. ft. Built 2006 278 Longview Ave Eagle, CO Economic & Planning Systems, Inc. 23 173082-Revenue Analysis 06-07-2018 4. PEER COMMUNITY GENERAL FUNDS This chapter reviews the revenue and budget structures of several peer communities and compares them to Avon. The purpose of this analysis is to evaluate Avon’s and the peers’ revenue diversity, and to identify revenue sources that other communities have that Avon may be able to enact. In addition, a comparison of the level of service that each municipality provides (spending per capita and per housing unit) is included at the end of the chapter. Selected Communities Seven mountain communities were chosen to evaluate: Vail, Gypsum, Breckenridge, Frisco, Silverthorne, Steamboat Springs, and Golden as shown in Table 8. A common element is that, with the exception of Steamboat Springs, each peer community has a Real Estate Transfer Tax (RETT). Most of the peer communities are along the I-70 Corridor and three of the seven are ski area portals: Vail, Breckenridge, and Steamboat. Avon is a partial ski area portal as it is closely connected to Beaver Creek but not the direct access point. Frisco and Silverthorne are similar to Avon in that they are closely connected to the resort economies but have more of the supportive commercial services for area communities—large retail centers, light industrial/shop space, maintenance and repair services, and professional offices. Most are similarly sized, with populations ranging from about 4,400 to 7,000. Frisco is the smallest with a population of 2,900. Golden, Colorado was also included as a contrasting community, located on the edge of the Denver Metro area but with a strong outdoor recreation culture. Table 8 Comparison Community Key Indicators Routt County Jefferson County Description Avon Vail Gypsum Brecken- ridge Frisco Silver- thorne Steamboat Golden Ski Area Portal Partial Yes No Yes No No Yes No Population 6,570 5,486 6,983 5,035 2,931 4,402 12,698 20,460 Jobs 3,915 3,799 4,408 3,241 1,886 2,357 7,626 9,975 Housing Units[1]3,657 7,422 2,360 7,267 3,222 2,208 10,207 8,103 Median Home Price $683,000 $2,150,000 $1,195,000 $1,097,000 $639,950 $1,107,500 $672,950 $518,300 Median Household Income $56,223 $73,125 $79,286 $70,972 $73,678 $47,825 $53,996 $59,028 [1] Occupied and second homes Source: Colorado DOLA, U.S. Census ACS, Zillow, Land Title, Economic & Planning Systems Eagle County Summit County Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 24 Fiscal Analysis General Fund Revenues To compare the budgets of each community to Avon, revenues and expenditures from each budget were organized into common categories and summarized by these categories. The result is a more consistent comparison of revenues and expenditures. Some adjustments were also made to transfers and pass through revenues to show more accurately their source or function. In each community, sales and use tax is the largest revenue source. Note that in Avon, this line item is only sales tax; Avon does not have a use tax. In most communities, sales and use tax is 50 to 60 percent of General Fund revenues, as shown in Table 9. In Steamboat, sales tax is 72 percent of revenues as the City does not have a general operating mill levy. Steamboat eliminated its property tax in the 1980s to shift the tax burden to visitors and away from businesses and residents. In Breckenridge, sales tax is 42.5 percent of the revenue due to higher revenues in recreation facility fees (user fees), property tax, and lodging tax. Property tax and lodging tax are the next highest revenues, ranging from about 10 to 13 percent of revenues, although not all communities place lodging tax in their General Funds as discussed below. All other revenues (fees, charges for services, and intergovernmental grants) make up the remaining 25 to 40 percent (approximately) of revenues. In several peer communities, lodging tax is not a General Fund revenue but used for capital projects, parks, trails, amenities, and marketing functions. Additional highlights from selected communities’ budgets are summarized below, and additional information on the uses of specific revenue sources is provided later in this chapter. • Breckenridge – Sales and use tax, lodging tax, real estate transfer tax, and franchise fee revenues are all deposited into the Excise Fund, which is for revenue collection. Excise Fund revenues are transferred into the General Fund, Capital Projects Fund, and other funds as needed. In 2016, about $14 million was transferred into the General Fund from the Excise Fund. • Frisco – Most General Fund revenue comes from sales and use tax and charges for services. Frisco has a medical marijuana excise tax and recreational marijuana tax. These generated $60,000 and $225,000 respectively for the General Fund. • Silverthorne – Silverthorne, like Steamboat, does not levy a general property tax. Silverthorne therefore relies heavily on sales tax. About a quarter of the total sales tax revenues come from the Outlets at Silverthorne. Charges for services and others are the highest revenue sources after sales tax. The other category includes interest, miscellaneous, severance, and other financing sources. Charges for services include the Recreation Center, which generates the most revenue for the category. Silverthorne’s lodging tax is dedicated to recreation and trail projects (85 percent) and marketing the Town (15 percent). Silverthorne also earmarks 60 percent of its sales tax for capital projects. • Vail – Vail allocates about 60 percent of its sales tax to the General Fund and 40 percent to the Capital Fund. • Gypsum – Gypsum is the only community to collect and allocate its RETT to the General Fund. Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 25 Fiscal Analysis Table 9 Peer Community General Fund Revenues (2016 Estimated) Routt County Jefferson County Revenue Avon Vail Gypsum Brecken- ridge Silver- thorne Frisco Steamboat Golden 2016 Final Budget Sales & Use Tax $8,425,601 $20,593,000 $5,040,087 $10,472,870 $7,057,483 $8,517,740 $22,919,957 $12,613,128 Property Tax 1,747,601 4,913,000 593,703 2,628,068 0 143,493 0 6,429,541 Lodging Tax 1,249,036 0 0 2,845,016 0 0 0 0 Utility tax 110,000 0 0 0 0 0 0 0 Specific Ownership Tax 120,000 0 28,205 131,301 0 7,509 0 470,758 RETT 0 0 703,291 0 78,000 0 0 0 Fines and Forfeits 92,445 250,942 35,236 465,797 125,000 0 181,400 773,613 Franchise Fees 415,000 1,181,159 243,941 670,618 284,545 320,432 1,155,000 1,934,029 Charges for Services 191,085 1,001,236 63,574 1,061,565 511,144 351,461 2,082,275 1,504,381 Recreation Fees 1,472,939 0 0 2,985,410 1,490,650 3,025,600 534,272 767,019 Licenses & Permits 206,100 1,594,254 666,542 708,688 269,533 342,930 61,810 670,890 Intergovernmental 1,004,571 1,882,916 374,725 1,223,877 304,787 203,353 4,250,841 682,472 Other 145,400 5,557,556 1,302,021 1,460,704 663,673 504,668 664,061 1,581,218 Total $15,179,778 $36,974,063 $9,051,325 $24,653,914 $10,784,815 $13,417,186 $31,849,616 $27,427,049 Percent Sales & Use Tax 55.5%55.7%55.7%42.5%65.4%63.5%72.0%46.0% Property Tax 11.5%13.3%6.6%10.7%0.0%1.1%0.0%23.4% Lodging Tax 8.2%0.0%0.0%11.5%0.0%0.0%0.0%0.0% Utility tax 0.7%0.0%0.0%0.0%0.0%0.0%0.0%0.0% Specific Ownership Tax 0.8%0.0%0.3%0.5%0.0%0.1%0.0%1.7% RETT 0.0%0.0%7.8%0.0%0.7%0.0%0.0%0.0% Fines and Forfeits 0.6%0.7%0.4%1.9%1.2%0.0%0.6%2.8% Franchise Fees 2.7%3.2%2.7%2.7%2.6%2.4%3.6%7.1% Charges for Services 1.3%2.7%0.7%4.3%4.7%2.6%6.5%5.5% Recreation Fees 9.7%0.0%0.0%12.1%13.8%22.6%1.7%2.8% Licenses & Permits 1.4%4.3%7.4%2.9%2.5%2.6%0.2%2.4% Intergovernmental 6.6%5.1%4.1%5.0%2.8%1.5%13.3%2.5% Other 1.0%15.0%14.4%5.9%6.2%3.8%2.1%5.8% Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% Assessed Value $226,761,360 $136,046,480 $1,174,363,440 $565,153,160 $199,207,520 $189,697,090 $645,973,640 $535,804,114 Source: Economic & Planning Systems Eagle County Summit County Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 26 Fiscal Analysis General Fund Expenditures The size of expenditures in percentage terms is fairly similar across the peer communities. In Avon, Vail, Breckenridge, and Silverthorne, Public Works comprises about 25 percent of the General Fund budget as shown in Table 10. These are largely operations and maintenance functions, not capital projects spending. In all but Gypsum, General Government is approximately 20 percent of the General Fund. It is higher in Gypsum because of the small size of the community and the fixed costs that are necessary to run town administration and government functions. In the communities that have a ski area portal or are closest to one and/or are located along I-70, Police expenditures are highest. In Avon, Vail, Breckenridge, and Silverthorne, Police expenditures range from about 15 to 20 percent of the General Fund. There is a correlation between the number of visitors and I-70 impacts with the level of service needed for law enforcement and public safety. Vail and Steamboat are the only communities that operate their own fire department, which accounts for about 11 percent of their General Funds. Recreation and Culture expenditures in the General Fund vary more widely either according to community priorities or available revenue. These are expenditures on things like event facilities, recreation centers, and parks/trails maintenance. In Vail, parks maintenance is under Public Works and therefore does not register as a large standalone expenditure. In Breckenridge, about 19 percent of the General Fund goes to Recreation including programs, operations, the Nordic Center, and ice rink operations. In Silverthorne, 28 percent of the General Fund goes to Recreation and Culture including a large recreation center, and The Pavilion. The Pavilion is a community facility for public and private events. It recovers 90 percent of operating expenses through private rentals and bar proceeds. Transit and Transportation is another expenditure that varies widely. Vail, Avon, and Breckenridge each operate their own small transit systems. In some cases, these are General Fund transfers to a transit or transportation fund, but have been reclassified here to show the function of the spending. Avon spends 6.9 percent of its General Fund on Transit, compared to 17.5 percent in Vail and 12.3 percent in Breckenridge. Transfers Out Transfers out of the General Fund vary by how each community funds capital projects. Communities such as Vail, Silverthorne, Steamboat, and Breckenridge that have other revenue sources earmarked or dedicated for capital projects transfer out less revenue. Transfers will also vary considerably from year to year depending on capital spending and reserves; this is therefore only a snapshot. In 2016, Avon had the highest percentage transfer out for capital projects, at 10.7 percent ($1.8 million). Avon’s General Fund also subsidizes the transit system with about $1.1 million per year. Frisco also had a large transfer out to capital projects at 32.8 percent ($4.7 million) for revitalization and reconstruction of Main Street, improving recreational pathways, and environmental sustainability projects. Avon also funds the fleet services department through General Fund transfers, at about $450,000 per year. In operating transfers, Steamboat has the largest operating transfer out at $5.9 million largely to subsidize the Howelson Hill ski area and other recreation venues. Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 27 Fiscal Analysis Table 10 Expenditure Summary of Comparison Communities General Fund Budget 2016 Routt County Jefferson County Expenditures Avon Vail Gypsum Brecken- ridge Silver- thorne Frisco Steamboat Golden 2016 Final Budget General Government $3,157,669 $6,497,121 $2,566,215 $3,272,393 $2,219,798 $3,057,593 $8,048,311 $5,161,151 Police/Pub. Safety 3,204,355 5,902,574 904,263 3,655,244 1,997,607 1,464,557 3,977,638 8,570,731 Fire/EMS 0 4,037,519 0 0 0 0 3,639,623 1,765,554 Transit/Transportation 1,134,994 6,436,330 0 3,049,818 0 0 3,449,362 0 Public Works & Facilities 3,995,687 8,595,388 1,615,398 6,531,044 2,623,638 1,680,766 3,536,251 3,854,244 Community & Economic Dev 1,380,476 4,327,430 1,447,053 1,679,684 874,851 1,203,986 862,436 1,467,147 Recreation & Culture 1,294,689 878,404 2,867,577 4,757,389 3,034,165 2,274,104 5,009,085 2,647,861 Transfer Out - Capital 1,765,874 50,000 0 0 0 4,716,665 0 0 Transfer Out - O&M 450,000 0 0 0 0 0 5,920,205 1,032,912 Other 99,000 0 0 1,912,068 0 0 0 1,418,092 Total $16,482,744 $36,724,766 $9,400,506 $24,857,640 $10,750,059 $14,397,671 $34,442,911 $25,917,692 Percent General Government 19.2%17.7%27.3%13.2%20.6%21.2%23.4%19.9% Police 19.4%16.1%9.6%14.7%18.6%10.2%11.5%33.1% Fire/EMS 0.0%11.0%0.0%0.0%0.0%0.0%10.6%6.8% Transit/Transportation 6.9%17.5%0.0%12.3%0.0%0.0%10.0%0.0% Public Works & Facilities 24.2%23.4%17.2%26.3%24.4%11.7%10.3%14.9% Community & Economic Dev 8.4%11.8%15.4%6.8%8.1%8.4%2.5%5.7% Recreation & Culture 7.9%2.4%30.5%19.1%28.2%15.8%14.5%10.2% Transfer Out - Capital 10.7%0.1%0.0%0.0%0.0%32.8%0.0%0.0% Transfer Out - O&M 2.7%0.0%0.0%0.0%0.0%0.0%17.2%4.0% Other 0.6%0.0%0.0%7.7%0.0%0.0%0.0%5.5% Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% Source: Economic & Planning Systems Eagle County Summit County Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 28 Fiscal Analysis Level of Service Comparison A proxy for the level of service a community provides is the spending per capita. In mountain resort areas however, spending per housing unit may be a better indicator. The housing stock in each of these communities contains many second homes and condominium and condohotel units that comprise most of the overnight bed base. Therefore, spending per housing unit better represents spending on municipal services for residents and guests. Per housing unit, Avon has one of the highest levels of service. Vail spends 23 percent more than Avon, as shown in Figure 11, but is a much more visitor-oriented community. Per housing unit, Avon spends approximately 15 percent more than Breckenridge, Silverthorne, and Steamboat on General Fund operations and maintenance indicating that the level of service is generally consistent with its peers. The higher per capita spending in the other communities is a reflection of the larger size of their bed base in proportion to their population compared to Avon’s. Vail’s General Fund spending, for example, is almost three times Avon’s per capita because it has a larger bed base. Breckenridge spends more than twice what Avon spends per capita. Figure 11 General Fund Expenditures Per Capita and Per Housing Unit indexed to Avon 100% 123% 99% 85%83% 109% 84%79% 100% 298% 60% 220% 109% 147% 121% 57% $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 Avon Vail Gypsum Breckenridge Silverthorne Frisco Steamboat Springs Golden Expenditures Per Housing Unit Expenditures Per Capita Source: Census; Economic & Planning Systems Economic & Planning Systems, Inc. 29 173082-Revenue Analysis 06-07-2018 5. PEER COMMUNITY TAX RATES AND REVENUE SOURCES In this chapter, the tax rates and fee levels from each community are compared to Avon’s. These tax and fee rates are what creates the overall revenue mix and balance for each community, and affect how they are able to fund and invest in capital projects. A separate section on the RETT revenues and rates in each community is included, along with a summary of realtor interviews on the impact of the RETT on the local market from buyers’ and sellers’ perspectives. Property Tax Rates The total 2016 mill levy for property centrally located in Avon (county and local taxing districts) is 63.008 dollars per $1,000 of assessed value. This is 0.200 mills lower than Gypsum including Gypsum the WEC Metro Rec District and the Cedar Hill Cemetery districts in that area. . The total mill levy on most property in Avon is 63.008, compared to just under 50 mills in Vail, Frisco, and Silverthorne, and just over 50 mills in Breckenridge as shown in Table 11. The major difference is that the Eagle County school district mill levy is about 5.000 mills higher than in Summit County, and the Town’s operating mill levy of 8.956 is about 3.000 mills higher than some of the others. Golden, which is less comparable, has a much higher mill levy total at over 80 mills largely due to the 42.878 Jefferson County School District mill levy. Metropolitan Districts There is a substantial amount of residential development in unincorporated Eagle County organized under homeowners associations (HOAs) and Title 32 Metropolitan Districts (metro districts). Metropolitan districts are an infrastructure financing mechanism in which a property and/or sales tax is levied on property within the district to fund public improvements, usually water and sewer, and roads. Metro districts are typically formed by the developer and governed by the developer for a period of time until new board elections allow a broader representation of district residents to be elected. The total mill levies in several large development areas in Eagle County are shown below in Table 12 and compared to Avon. Edwards (Homestead Metro District) has the lowest total mill levy at 55.743 in 2016, 7.265 mills lower than Avon, as its debt has been paid off and only the 1.691 operating mill levy remains on top of the other taxing districts. Other metro districts have mill levies for debt and operating ranging from about 14.000 to over 40.000 mills. Cotton Ranch in Gypsum and Eagle Ranch in Eagle have total mill levies over 100.000 mills. Many of these districts also have additional HOA fees, such as the $1,260 per year fee per home in Edwards. Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 30 Fiscal Analysis Table 11 Peer Community 2016 Mill Levies Routt County Jefferson County Tax Authority Avon Gypsum Vail Brecken- ridge Frisco Silver- thorne Steamboat Golden Assessed Value ($Millions)$226.8 $136.0 $1,174.4 $565.2 $199.2 $189.7 $646.0 $535.8 County General Fund 5.285 5.285 5.285 4.817 4.817 4.817 12.124 15.545 Road & Bridge 1.359 1.359 1.359 0.814 0.814 0.814 0.785 1.348 Social Services 0.240 0.240 0.240 0.229 0.229 0.229 0.528 1.326 Health 2.755 2.755 2.755 0.000 0.000 0.000 0.000 0.000 Other 1.615 1.615 1.615 9.226 9.226 9.226 4.130 6.490 Subtotal:11.254 11.254 11.254 15.086 15.086 15.086 17.567 24.709 Local Taxing Districts Town/City 8.956 5.094 4.705 5.070 0.798 0.000 0.000 12.340 School District 25.209 25.209 25.209 20.525 20.525 20.525 18.030 42.878 College District 3.997 3.997 3.997 3.997 3.997 3.997 3.997 0.000 Fire District 9.740 10.504 0.000 9.008 9.003 9.003 0.000 0.000 Water/San 0.849 0.000 0.849 0.000 0.000 0.000 0.000 0.000 Other 3.003 7.143 3.734 0.309 0.309 0.309 5.884 0.557 Subtotal:51.754 51.947 38.494 38.909 34.632 33.834 27.911 55.775 Total Mill Levy:63.008 63.201 49.748 53.995 49.718 48.920 45.478 80.484 Source: Economic & Planning Systems Eagle County Summit County Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 31 Fiscal Analysis Table 12 Major HOA and Special District Mill Levies Avon Eagle-Vail Metro District Berry Creek Metro District (Singletree) Edwards Metro District (Homestead) Arrowhead Metro District Beaver Creek Metro District Cotton Ranch Metro District Eagle Ranch Metro District Metro District Tax Mill Levy 0.000 20.755 14.095 1.691 18.500 25.916 41.230 40.000 Town Mill Levy 8.956 0.000 0.000 0.000 0.000 0.000 5.094 3.853 Tax Mill Rates - Eagle County 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 Colorado Mountain College 3.997 3.997 3.997 3.997 3.997 3.997 3.997 3.997 Eagle County School District RE-50J 25.209 25.209 25.209 25.209 25.209 25.209 25.209 25.209 Eagle River Fire Protection District 9.740 9.740 9.740 9.740 9.740 0.000 0.000 0.000 Eagle Valley Library District 2.750 2.750 2.750 2.750 2.750 2.750 2.750 2.750 Eagle River Water and Sanitation District 0.849 0.849 0.849 0.849 0.849 0.849 0.000 0.000 E.R.W.&S. Water Subdistrict 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Colorado River Water Conservancy District 0.253 0.253 0.253 0.253 0.253 0.253 0.253 0.253 Eagle County Health Services District 2.755 2.755 2.755 2.755 2.755 2.755 2.755 2.755 Vail Park & Rec 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Minturn Cemetery 0.000 0.450 0.000 0.000 0.000 0.000 0.000 0.000 Eagle Cemetery 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.266 Cedar Hill Cemetery 0.000 0.000 0.000 0.000 0.000 0.000 0.490 0.000 Eagle Sanitation 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Greater Eagle Fire 0.000 0.000 0.000 0.000 0.000 0.000 0.000 10.000 Gypsum Fire 0.000 0.000 0.000 0.000 0.000 0.000 10.504 0.000 W.E.C. Metro Rec 0.000 0.000 0.000 0.000 0.000 0.000 3.650 3.650 Total Mill Levy 63.008 75.257 68.147 55.743 72.552 70.228 104.431 101.232 Source: Eagle County, Economic & Planning Systems Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 32 Fiscal Analysis Peer Community RETT As noted in the Introduction, the peer communities were chosen on the criterion that they have a real estate transfer tax. Each peer community has a 1.0 percent RETT on all property sales or transfers with monetary compensation. Avon has a higher RETT at 2.0 percent. When TABOR, passed in 1992, it prohibited new or increased RETTs from being enacted in Colorado but allowed existing RETTs to continue. Under TABOR, the Town could raise or eliminate the locals’ exemption because it would be effectively a tax decrease, but the Town cannot lower or eliminate the local’s exemption because that would be a RETT increase which is prohibited by TABOR. A list of other Colorado municipalities with existing RETTs and corresponding rates are shown below. Table 13 RETT Rates in Colorado Communities RETT revenue is most commonly utilized to fund capital improvement projects. Avon, Breckenridge, and Frisco use the RETT as their key funding source for capital improvements. Vail dedicates its RETT to recreation, parks and open space, and sustainable environmental practices. Gypsum uses its RETT in the General Fund. Silverthorne is the only mountain peer community that does not have a RETT, although it pursues real estate transfer assessments (RETAs or “transfer fees”) on some new developments. Many large HOAs in the area have RETAs including Eagle Ranch (1.0 percent), Arrowhead (1.5 percent), and the Beaver Creek Resort Company (2.375 percent). Community RETT Rate Breckenridge 1.0% Frisco 1.0% Gypsum 1.0% Minturn 1.0% Snowmass Village 1.0% Vail 1.0% Winter Park 1.0% Aspen[1]1.5% Avon 2.0% Crested Butte 3.0% Telluride 3.0% Ophir 4.0% [1] Combined RETT rates of 0.5% and 1.0% Source: Economic & Planning Systmes Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 33 Fiscal Analysis Vail has almost $6.0 million in RETT revenue on average. Breckenridge’s RETT has been about $4.3 million on average as shown in Table 14. These two towns also have the highest property values of the peer communities. Table 14 Real Estate Transfer Tax of Comparison Communities RETT Exemptions Many communities offer exemptions to the real estate transfer tax. There are a variety of standard legal exemptions most communities accept—for example, a gift or charity, sale to a government entity, or due to death. Avon allows a more generous value cap exemption where the first $160,000 of the property value is excluded from the RETT if the property is sold to a full time Eagle County resident. This was intended to assist and encourage first time home buyers by making purchasing a house more affordable. Breckenridge and Vail offer a different type of exemption to promote affordable housing. The RETT can be fully exempt if low or moderate-income persons are purchasing or leasing a low or moderate priced housing unit. To ensure the residential unit continues to be affordable in the future, a form of income restriction is required to be placed on the unit. In Frisco, there is a local exemption for employees or residents in the Town who earn 120 percent of the median income or lower in Summit County. Impact on Real Estate Market The impact of Avon’s RETT on the local market cannot be quantified as there are many other factors that influence real estate markets including location, price, quality for the price, home types available, and schools. Our assessment of the impact on the market in this section is based on the economic and market data presented in Chapter 3, and interviews with realtors working in the Vail Valley. Year Avon Vail Breckenridge Frisco Silverthorne (RETA) 2007 $2,540,943 $6,536,118 $5,675,235 $1,488,980 2008 3,093,021 9,091,917 3,733,785 753,312 2009 1,761,980 2,513,481 2,861,119 501,254 2010 2,159,525 6,950,702 3,662,755 565,093 2011 1,616,982 4,403,706 3,411,973 792,486 2012 1,707,648 5,452,937 3,691,087 805,152 2013 1,574,502 4,725,589 4,462,232 920,533 2014 3,764,526 6,849,449 4,604,914 1,044,365 189,767 2015 2,369,314 6,965,617 5,468,732 1,487,185 256,514 2016 3,497,602 6,500,000 $5,240,098 $1,389,027 202,556 Average $2,408,604 $5,998,952 $4,281,193 $974,739 $216,279 Rate 2.0%1.0%1.0%1.0%1.0% Source: Economic & Planning Systems Summit CountyEagle County Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 34 Fiscal Analysis RETTs and Transfer Fees are common. RETTs and transfer fees are common in the Vail Valley and in other Colorado mountain communities which may make Avon’s higher 2.0 percent RETT less of an anomaly. When a fee or tax is common in competing locations, it helps to level the playing field. Traditional buyer criteria typically outweigh taxes and fees. Buying a home or second home is a personal and emotional decision, not always based purely on economics or cost. Realtors report that buyers first identify what they can afford or want to pay, the type of home and community they are looking for, and then narrow down locations based on those criteria. “Shopping” communities against each other based on RETT or transfer fee rates was reported to be uncommon. The RETT may have minor impacts below $750,000 to $1.0 million. Some realtors reported that the lack of a RETT and lower perceived taxes in Edwards may draw some local buyers to Edwards. Eagle Ranch which has a 1.0 percent RETA was also noted to be competitive for local buyers. However, both of these areas offer a broader array of home types and quality at prices more attainable to local buyers than is available in any significant quantity in Avon. For second home buyers and buyers in the market above $1.0 million, the impact of the RETT was reported to be negligible. Buyers who can afford upper end homes are more focused on the location, quality, design, experience, and other non-tangible factors. The steep access to Wildridge and the commercial/industrial gateway were suggested as factors which may hold values down in this area of Avon. RETTs and transfer fees are split between buyer and seller. The tradition and practice in the Vail Valley market is that they buyer and seller split the transfer fee or tax. Realtors reported that it was highly unusual for one party to pay the full amount. Avon’s $160,000 exemption is not measurably promoting workforce housing. While seen as a “good gesture” by local buyers, the financial benefits of the exemption are minor compared to total housing costs. The average home price in Avon was $683,000 at the end of 2017 which requires an income of approximately $150,000 to afford (approximately 25 percent of Avon’s median income). The RETT on the average priced home would be $13,660 with the buyer and seller each paying half ($6,830 each) as is the custom in the Eagle County market. The local’s exemption on the first $160,000 of the sale price saves $3,200 in RETT – roughly half of the RETT on the average priced home – but only lowers the net purchase price to $679,800 requiring roughly the same household income. Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 35 Fiscal Analysis Sales and Lodging Tax Rates This section compares sales and lodging tax rates in the peer communities to Avon. Sales and lodging tax can generate the most revenue, and are often considered for ballot initiatives to raise these rates for specific capital project or programming purposes. Sales Tax Avon charges a 4.0 percent sales tax (General Fund) on retail purchases including food for home consumption (groceries) as shown in Table 15. When combined with the State, county, and county transit taxes the total sales tax rate is 8.4 percent. The total sales tax paid in Avon is the same as in Vail, and 1.0 percent higher than Gypsum. Only Breckenridge has higher sales tax at 8.875 due to a higher transit tax and the Summit County Regional Housing Authority sales and use tax of 0.725 percent. The town/city General Fund sales tax rates vary from 2.0 to 4.5 percent. The highest at 4.5 percent is Steamboat Springs, while Frisco and Silverthorne have the lowest at 2.0 percent. In Steamboat, 4.0 percent is the general sales tax and 0.5 percent is dedicated to local schools. Summit County has the highest county sales tax rate at 3.475 percent. This includes a 0.725 percent affordable housing tax, of which 0.6 percent is a sales tax only and 0.125 percent is a sales and use tax. This affordable housing tax rate is excluded from groceries or food for home consumption. While these individual layers of sales tax are important to understand, it is the total tax burden that is considered when communities consider a sales tax increase. Table 15 Sales and Lodging Tax Rates Routt County Jefferson County Tax Type Avon Vail Gypsum Brecken- ridge Silver- thorne Frisco Steamboat Golden Sales Tax Town/City Sales Tax 4.000%4.000%3.000%2.500%2.000%2.000%4.500%3.000% State Sales Tax 2.900%2.900%2.900%2.900%2.900%2.900%2.900%4.000% County Sales Tax 1.000%1.000%1.000%2.000%2.000%2.000%1.000%0.500% County Transit Tax 0.500%0.500%0.500%0.750%0.750%0.750%0.000%0.000% Regional Housing Auth.0.000%0.000%0.000%0.725%0.725%0.725%0.000%0.000% Total 8.400%8.400%7.400%8.875%8.375%8.375%8.400%7.500% Lodging Tax Lodging Tax 4.000%1.400%0.000%3.400%2.350%2.000%1.000%0.000% Local Mktg. District 0.000%0.000%0.000%0.000%0.000%0.000%2.000%0.000% Total Combined Rate 12.400%9.800%7.400%12.275%10.725%10.375%11.400%7.500% Ski Lift Tax ---4.000%---4.500%------------ Source: Economic & Planning Systems Eagle County Summit County Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 36 Fiscal Analysis Taxable Sales The definition of taxable goods (tax base) affects the amount of sales tax in each community. Each of the peer communities tax groceries or food for home consumption as shown in Table 16. The communities in Summit County exclude the 5A Affordable Housing tax of 0.725 percent on groceries. The rest of the city/town and county sales tax rates do apply to groceries however. Therefore, the sales tax rate on groceries in Breckenridge is 8.15 percent and 7.65 percent in Frisco and Silverthorne. Breckenridge and Vail each negotiated with Vail Resorts to establish a special tax on lift tickets. The revenue will be used for transportation and parking infrastructure. The Town of Breckenridge has agreed to construct a new parking structure with the revenue. Table 16 Taxable Sales in Comparison Communities Sales Tax Competitiveness In Edwards, the metro district collects a 1.0 percent sales tax bringing the total to 5.4 percent. Some businesses in Edwards, particularly high-end apparel/outdoor gear may have a competitive advantage among residents who comparison shop, but less among visitors. In the grocery segment, Avon is reported to have the best quality supermarket in the Vail Valley which draws shoppers from up and down the valley regardless of the sales tax rate. Item Type Avon Vail Gypsum Brecken- ridge Frisco Silver- thorne Steam- boat Golden Groceries Yes Yes Yes Yes Yes Yes Yes Yes Retail Sales Yes Yes Yes Yes Yes Yes Yes Yes Lift Tickets No Yes N/A Yes N/A N/A No N/A Source: Economic & Planning Systems Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 37 Fiscal Analysis Lodging Tax Most peer communities charge a lodging tax on short term accommodations ranging from 1.0 percent in Steamboat to 4.0 percent in Avon as also shown in Table 15. The lodging tax is on top of the sales tax, making the total lodging tax 12.4 percent in Avon. This is the highest of the peer communities, although room rates are generally lower in Avon than Vail or Breckenridge which results in less of an impact to visitors. Neither Gypsum nor Golden have an additional lodging tax and only apply their sales tax rate. Steamboat has two separate lodging taxes depending on location. If located within the Local Marketing District (LMD) there is an accommodation tax rate of 2.0 percent applied in addition to the normal sales tax rate for a total of 11.4 percent. The Local Marketing District is located around the base of Steamboat Springs Ski Resort and along the corridor of Lincoln Avenue (Highway 40) through downtown Steamboat. It is a special district, and the tax is collected by the State and then paid to the City. The LMD tax is used to guarantee airline seats into the Yampa Valley Regional airport in Hayden. In other locations, only the 1.0 percent lodging tax applies to create a combined rate of 9.4 percent. Lodging Tax Use There are differences in the way each community allocates its lodging tax depending on how much revenue it generates and the communities’ priorities, described below and in Table 17. • Avon – Avon deposits its lodging tax directly into the General Fund as a general operations and maintenance revenue source. • Breckenridge – Breckenridge collects its lodging tax in the Excise Fund to be transferred to the General Fund, Capital Fund, and other funds as needed. Additionally, 1.4 percent of the 3.4 percent lodging tax is dedicated to the Marketing Fund. • Frisco – Frisco earmarks its lodging tax for the Lodging Tax Fund which pays for the Town’s Information Center, plus operations and maintenance of the Town’s recreation amenities, and special events and marketing. • Silverthorne – Silverthorne’s Lodging Tax Special Revenue Fund allocates 85 percent of the lodging tax to parks, trails, and open space capital acquisitions and construction projects. The remaining 15 percent is used for Town marketing. • Steamboat Springs – The 1.0 percent lodging tax is distributed into the Accommodation Tax Fund for regional trail projects in partnership with the U.S. Forest Service, marketing, and improvements to the Haymaker Golf Course. The 2.0 percent LMD tax is used mainly for airline guarantees. • Vail – Vail’s lodging tax is distributed into the Vail Marketing Fund for marketing and promotional services to attract guests. Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 38 Fiscal Analysis Table 17 Lodging Tax Use Lift Tax Vail and Breckenridge have established a ski lift tax of 4.0 percent and 4.5 percent respectively. In Vail, this revenue is deposited into its General Fund. The Town of Vail received about $4.7 million in revenue from its ski lift tax. In Breckenridge, the tax is utilized for transportation services and infrastructure. The tax was approved by voters of Breckenridge in November of 2015 and took effect in July of 2016. Breckenridge estimates about $3.5 million in annual revenue from the lift tax, and Vail Resorts agreed to a revenue guarantee in this amount. Use Tax Use tax is a form of sales tax. Sales tax is collected at the point of sale, and use tax is collected where the good is used or delivered. Vehicle use tax is paid to the town or city where a vehicle is registered regardless of where it was purchased. Use tax is also paid on goods that are delivered from a store in another location (e.g. furniture, building materials). Construction use tax is another form of use tax. Construction use tax is typically collected at the time of building permit issuance. The builder then presents the city/town’s use tax receipt when purchasing materials and is exempted from sales tax. Some communities use construction use tax to supplement capital funding revenues and in most cases the use tax rate is the same as the sales tax rate. Avon does not have a construction use tax (paid at the building permit counter), which is a potential new revenue source for the Town. Rather, Avon collects sales tax on building materials through licensing contractors and suppliers (discussed further in Chapter 7). A construction use tax is collected at building permit in Steamboat Springs and Vail. The use tax rate is the same as the city/town sales tax in Vail. In Steamboat Springs, the use tax is 4.0 percent, which is only the general sales tax and does not include the 0.5 percent dedicated to schools. Avon, Breckenridge, Frisco, and Silverthorne do not have a use tax. These towns instead levy their sales tax rate on delivered construction materials. Lodging Tax Allocation Avon Vail Brecken- ridge Frisco Silver- thorne Steamboat General Fund  Recreation  Marketing  Capital Projects  Lodging Tax 4.0%1.4%3.4%2.4%2.0%1.0% Total Lodging Tax Rate 12.4%9.8%7.4%12.3%10.7%11.4% Source: Economic & Planning Systems Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 39 Fiscal Analysis Table 18 Peer Community Use Tax Rates and Allocation Purpose Marijuana Tax Amendment 64 changed the Colorado Constitution to allow retail sales and taxation of marijuana. The State marijuana tax is distributed similar to cigarette tax and is given out on a monthly basis. Of the 15 percent State marijuana sales tax, 10 percent is distributed to local governments. Local governments share this amount based upon the percentage of retail marijuana sales tax revenues collected within the boundaries of the city, town, or county. If a community does not have retail marijuana sales, it does not receive any of this State revenue. There is no retail marijuana in Avon or Vail, although there are retail dispensaries in Eagle-Vail in unincorporated Eagle County. Breckenridge has an additional 5.0 percent marijuana tax that is placed into its Marijuana Fund along with revenues from the State’s marijuana tax. None of the other peer communities implemented an additional local marijuana tax and only apply the general town/city sales tax. In 2016, Breckenridge received $533,828 in revenue from marijuana. Breckenridge transfers about $200,000 per year from the Marijuana Fund to the Child Care Fund for childcare tuition assistance. The Town also purchased a building to be used as a Montessori preschool. Table 19 Marijuana Tax Rates Avon Vail Breckenridge Frisco Silverthorne Steamboat Construction Use Tax No Yes No No No Yes Vehicle Use Tax No No No No No Yes Allocation N/A Capital N/A N/A N/A Capital Rate 4.0%4.0%2.5%2.0%2.0%4.0% Source: Economic & Planning Systems Marijuana Tax Avon Brecken- ridge Frisco Golden Gypsum Silver- thorne Steamboat Vail State N/A 15.00%15.00%15.00%N/A 15.00%15.00%N/A County Sales Tax N/A 2.00%2.00%0.00%N/A 2.00%1.00%N/A County Transit Tax N/A 0.75%0.75%0.50%N/A 0.75%0.00%N/A Town Sales Tax N/A 2.50%2.00%3.00%N/A 2.00%4.50%N/A Town Marijuana Tax N/A 5.00%0.00%0.00%N/A 0.00%0.00%N/A Total No Retail 25.25%19.75%18.50%No Retail 19.75%20.50%No Retail Source: Economic & Planning Systems Economic & Planning Systems, Inc. 40 173082-Revenue Analysis 06-07-2018 6. CAPITAL FUNDING AND DEVELOPMENT CHARGES This chapter reviews the capital projects funding structures and sources of revenue for the peer communities. It also compiles fees and taxes on new construction and development to compare the development fees in Avon to the peer communities. These two topics are combined because development generates one-time revenues that are better suited to capital projects and projects that serve growth, whereas more stable ongoing revenues such as property tax and sales tax to an extent are better paired with ongoing operations. Capital Funding The RETT is a key funding source for capital projects in four of the six peer communities. To compare the capital funding approaches of the peer communities, the five-year average of capital funding revenues was compiled for each community. This longer time period was used to smooth out the effects of large single-year revenue impacts such as debt issuance, large grants, or a large amount of development fees from a single project. Note that in this section, the comparisons are limited to the most comparable communities; Gypsum and Golden are not included. As shown in Figure 12 and Table 20, Avon, RETT comprised almost 20 percent of Avon’s capital budget or $2.0 million per year on average over the past five years. The remaining 80 percent was comprised of $4.0 million in debt, $2.5 million in grants, and $1.9 million in transfers from the General Fund (18 percent). Historically, Avon relied almost solely on the RETT for capital projects. Over the past five years however, the RETT comprised approximately 20 percent of Avon’s capital budget of approximately $10.5 million each year compared to about $2.4 to $3.0 million per year previously. During the past five years, the Town had three bond issues in 2014, 2015, and 2016 totaling $20.2 million. The major projects in the 2016 CIP included a $6.0 million joint public safety facility, new bus shelters, a $2.4 million trail project with CDOT grants, and $1.0 million for a bicycle climbing lane on Metcalf Road (to Wildridge). In Vail, the five-year average RETT was nearly 30 percent of the CIP budget or $5.9 million. Vail had $1.9 million in affordable housing impact fees in 2018, equating to $580,000 for the five- year average. There were another $2.4 million in developer exactions (project reimbursements) to supplement this. Vail however, uses a much larger proportion of sales tax in its CIP than other communities. Each year, Vail allocates 40 percent of its sales tax to capital projects. Breckenridge also uses the RETT as one of its primary capital funding tools. The RETT average was 46 percent of its capital budget or $4.7 million per year. Frisco has the smallest overall budget of the peer communities; it averaged only $1.06 million in RETT in its capital budget, but as a percentage the RETT was 28 percent of the total. Frisco supplemented the RETT with an average of $1.6 million in transfers from other funds. Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 41 Draft Report Figure 12 Capital Project Funding Sources, 2012-2016 Average 3% 19% 30% 46% 28% 38% 7% 1% 13% 55%23% 83% 24% 42% 12% 32% 9% 71%62% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Avon Vail Breckenridge Silverthorne Frisco Steamboat Percent Development Fees RETT Debt Taxes Other Source: Economic & Planning SystemsSource: Economic & Planning SystemsSource: Economic & Planning SystemsSource: Economic & Planning Systems Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 42 Draft Report Table 20 Capital Projects Funding Sources, 2012-2016 Average Routt County Revenue Source Avon Vail [1]Brecken- ridge Silver- thorne [2] Frisco Steamboat Taxes General Taxes 0 0 2,315,263 0 0 0 Sales Tax 0 9,316,843 0 2,673,443 0 0 Use Tax 0 1,628,151 0 0 0 755,470 Lodging Tax 0 0 0 142,407 0 0 Excise Tax 0 0 0 555,000 0 492,308 Utility tax 0 0 0 0 0 203,072 Specific Ownership Tax 0 0 0 0 0 0 Property Tax 0 0 0 0 0 0 Subtotal $0 $10,944,994 $2,315,263 $3,370,850 $0 $1,450,850 RETT $2,010,293 $5,927,801 $4,685,393 $0 $1,058,467 $0 Percent 19%30%46%0%28%0% Development Fees $0 $580,497 $0 $0 $0 $0 Debt $4,046,241 $0 $0 $300,000 $48,885 $800,000 Other Sources Intergovernmental & Grants 2,449,952 544,186 2,773,123 176,845 28,000 2,410,937 General Fund Transfers 1,947,349 0 103,400 0 0 0 Other Fund Transfers 0 0 173,000 0 1,606,784 975,072 Investments/Interest 12,631 285,658 5,772 10,948 0 0 Other 48,682 1,661,477 164,933 193,739 1,075,932 327,465 Subtotal $4,458,614 $2,491,321 $3,220,228 $381,532 $2,710,717 $3,713,474 Total $10,515,148 $19,944,612 $10,220,884 $4,052,382 $3,818,069 $5,964,324 [1] Vail received $1.9 million in affordable housing mitigation fees in 2015 which are shown here to illustrate their large financial impact. [2] Combined Sales Tax Capital and Lodging Tax Special Revenue Funds Source: Economic & Planning Systems Eagle County Summit County Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 43 Fiscal Analysis Construction Use Tax Construction use tax is a revenue source that is an effective supplement to capital funding yet only two of the peer mountain communities have implemented this revenue source. Construction use tax is collected at building permit issuance and is calculated from the materials portion of the building valuation using the town or city’s valuation schedule. The use tax rate is often the same as the sales tax rate. This differs from the building materials sales tax collection systems used by Breckenridge and Avon. Breckenridge and Avon (and all communities) tax building materials, but at point of sale. This results in significant losses in revenue when building materials are shipped in from other locations, or when building material suppliers are not registered with the Town under a sales tax license. Collecting a use tax at the permit counter is a much more efficient way of collecting this revenue. Vail and Steamboat collect construction use tax at building permit and deposit the money into their capital funds as shown above in Figure 12 and Table 20 and below in Table 21. Table 21 Peer Community Use Tax Rates and Allocation Avon Vail Breckenridge Frisco Silverthorne Steamboat Construction Use Tax No Yes No No No Yes Vehicle Use Tax No No No No No Yes Use Tax Rate 4.0%[1]4.0%2.5%2.0%2.0%4.0% [1] 4.0 percent sales tax on building materials Source: Economic & Planning Systems Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 44 Fiscal Analysis Development Excise Tax An excise tax is a tax paid by the producer of a good or service rather than the end user. Some communities charge both an excise tax and a construction use tax. An excise tax is sometimes use as a substitute for development impact fees. Impact fees are charges on new development used to defray the cost of new capital facilities needed to serve growth. Impact fees can only be used on growth related projects, and the fee can only be assessed on the proportion of the project(s) that is directly attributed to growth (nexus). A limitation of impact fees—compared to an excise tax—is that the fee must be spent on the project type for which it is charged. For example, a transportation fee must be spent on a transportation project. An excise tax gives a community more flexibility to spend money where there are the greatest priorities during that budget cycle. Impact fees however—as fees not taxes—are not subject to voter approval. Steamboat Springs repealed its impact fees and replaced them with a voter-approved excise tax. Steamboat charges a 1.2 percent excise tax on the building’s construction valuation at time of permit and uses the money for capital projects. Steamboat also has a construction use tax (4.0 percent) paid at building permit. Silverthorne does not have a use tax, but charges a $2.00 per square foot excise tax for capital projects. Depending on the rate, it can be effective at generating revenue and could be considered by Avon. Summit Combined Housing Authority In Summit County, the communities have the option to implement and join the 5A Affordable Housing Program. Breckenridge, Frisco, and Silverthorne participate in a program in which the revenues generated are shared among participating local governments. In Frisco and Breckenridge, the excise tax ranges from $0.50 to $2.00 per square foot depending on the size of the home and $2.00 per square foot for commercial development. Homes under 999 square feet are exempt. The funds are used primarily for affordable/workforce housing construction. Development Fee and Tax Comparison In this section, the total development fees and taxes from each community are applied to a home of 2,500 square feet with three bedrooms and two bathrooms, and a 10,000 square foot retail building. The retail building is assumed to have a one-inch water meter. In most areas, water fees (connection and system development fees) are the largest portion of the total fees and taxes. In Avon, the total water fee is $13,900 which is 34 percent of the estimated fees, as shown in Table 22. In Vail, Gypsum, Breckenridge, Silverthorne, and Steamboat Springs water fees are 20 to 30 percent of the total. Water and sewer fees combined are approximately 57 percent of the total in Avon. Breckenridge has the highest combined rate at about 61 percent of the total. In the other areas, water and sewer fees are about 50 percent of the total, except for Steamboat Springs with 37 percent of the total. There is often less flexibility in adjusting water and sewer fees because of the high cost of the infrastructure and water resources, and the lack of other funding to offset fees. Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 45 Fiscal Analysis Table 22 Residential Development Fee and Tax Comparison There are few other impact fees charged except in Vail: $8,233 for transportation and $250 for recreation. The Eagle River Fire Protection District in Avon and the Gypsum Fire Protection District charge impact fees as well. Avon falls on the upper end of the peer communities with total estimated development fees of almost $41,000 and is higher than communities in Summit County. Vail is higher at than Avon at approximately $46,000. The Summit County communities range from approximately $27,000 to $32,400. Compared to water fees, the excise tax in Summit County and in Steamboat makes up a relatively small portion of the total tax and fee burden and could be considered as a new revenue source in Avon. Routt 2,500 Sq. Ft. Home Avon[1]Vail[2]Gypsum Brecken- ridge[1]Frisco[1] Silver- thorne[1]Steamboat Impact Fees Water $13,900 $9,900 $6,000 $8,319 $4,301 $7,600 $7,145 Sewer 9,375 11,800 7,000 11,584 10,000 6,200 4,571 Transportation 0 8,233 0 0 0 0 0 Recreation 0 250 0 0 0 0 0 Town Fire 0 0 0 0 0 0 0 District Fire 1,671 0 1,095 0 0 0 0 Subtotal $24,946 $30,183 $14,095 $19,903 $14,301 $13,800 $11,716 Excise Tax Method N/A N/A N/A $1.00 per SF $2.00 per SF $2.00 per SF 1.2% of Amount $0 $0 $0 $2,500 $5,000 $5,000 $4,350 Construction Use or Sales Tax Rate 4.0%4.0%3.0%2.5%2.0%2.0%4.0% Amount $16,000 $15,600 $12,000 $10,000 $8,000 $8,000 $16,000 Total Fees & Taxes $40,946 $45,783 $26,095 $32,403 $27,301 $26,800 $32,066 Source: Economic & Planning Systems [1] No use tax, instead applies sales tax rate to construction materials [2] Exempts first $10,000 of valuation when calucating construction use tax Eagle County Summit County Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 46 Fiscal Analysis For commercial development, Avon is in the middle of the total with estimated fees and taxes at $95,880 for a 10,000 square-foot retail building. Vail’s fees on commercial development total $211,785 including an $118,000 transportation impact fee. Breckenridge’s fees are almost $129,000 due to nearly $90,000 in water and sewer tap fees. Gypsum does not have a construction use or sales tax on commercial development. Table 23 Commercial Development Fee and Tax Comparison Routt County 10,000 Sq. Ft. Building Avon[1]Vail[2]Gypsum Brecken- ridge[1]Frisco[1] Silver- thorne[1]Steamboat Impact Fees Water $36,086 $25,686 $24,050 $30,812 $30,107 $26,600 $9,187 Sewer 22,279 26,299 12,950 57,920 42,500 21,700 5,978 Transportation 0 118,200 0 0 0 0 0 Recreation 0 10,000 0 0 0 0 0 Town Fire 0 0 0 0 0 0 0 District Fire 5,515 0 5,475 0 0 0 0 Subtotal $63,880 $180,185 $42,475 $88,732 $72,607 $48,300 $15,165 Excise Tax Method N/A N/A N/A $2.00 per SF $2.00 per SF $2.00 per SF Valuation Amount $0 $0 $0 $20,000 $20,000 $20,000 $9,000 Construction Use or Sales Tax Rate 4.0%4.0%N/A 2.5%2.0%2.0%4.0% Amount $32,000 $31,600 N/A $20,000 $16,000 $16,000 $32,000 Total Fees & Taxes $95,880 $211,785 $42,475 $128,732 $108,607 $84,300 $56,165 Source: Economic & Planning Systems [1] No use tax, instead applies sales tax rate to construction materials [2] Exempts first $10,000 of valuation when calucating construction use tax Summit CountyEagle County Economic & Planning Systems, Inc. 47 173082-Revenue Analysis 06-07-2018 7. OTHER REVENUE OPTIONS If the Town were to modify its revenue structure, whether it be the RETT or other taxes or fees, there may be a desire or need to offset any revenue reductions with new revenue sources. This chapter identifies other revenue sources for the Town to consider as needed. The impacts of the Gallagher Amendment are also noted. The revenues forwarded by EPS for consideration are: • Construction use tax, • Construction excise tax, and • Vehicle use tax. Of the local peer communities, only Vail charges a construction use tax, and neither Summit nor Eagle Counties have a vehicle use tax. However, there are few options available that will generate meaningful amounts of revenue. Construction Use Tax and Excise Tax Revenue estimates are presented here for a construction use tax and a construction excise tax. Both taxes would need voter approval, but the Town may be able to position the ballot in a way that highlights the need for growth to pay its way. These taxes are largely paid by new development and much less so by existing residents and businesses. Use tax is typically calculated on construction valuation; the last 10 years of valuation in new construction projects is shown below in Table 24. Valuation is the estimated cost of a project’s materials; it excludes labor and land costs and is based on standards from the International Building Code (IBC). The full 10-year average from 2007 through 2016 contains some large construction projects which may skew the average revenue figures. In 2007, the Westin Riverfront was constructed. In 2013, the Wyndham Resort at Avon was built, followed by Buck Creek Medical Plaza in 2015/16. The full 10-year average is $19.3 million in valuation each year. If 2007 and 2013 are excluded from the average, the total is $15.1 million per year. In the revenue estimates that follow, we base our estimates on these two averages and an additional lower scenario. Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 48 Fiscal Analysis Table 24 Construction Valuation Trends Using a use tax rate equal to the Town’s sales tax rate, annual use tax estimates are shown in Table 25. Using the 10-year average for construction valuation (Scenario A), use tax would be $386,400 per year if development continues at a similar pace. At a more moderate pace, 23 percent slower than the 10-year average (Scenario B), use tax would be just over $300,000 per year. In a slower real estate cycle, 50 percent of Scenario B, use tax would be approximately $150,000 per year. Table 25 Annual Construction Use Tax Estimates Total Total Year Permits Sq. Ft.Valuation Units Valuation Valuation 2007 166 19,242 $25,248,538 93 $10,970,648 $36,219,186 2008 145 11,416 2,525,749 15 11,165,780 13,691,529 2009 91 -725,000 3 8,683,371 9,408,371 2010 112 16,517 3,215,036 7 9,806,550 13,021,586 2011 125 2,210 922,600 9 8,412,190 9,334,790 2012 126 54,250 11,400,000 8 2,448,500 13,848,500 2013 159 217,293 27,121,876 12 9,027,760 36,149,636 2014 156 -1,500,000 10 13,735,900 15,235,900 2015 153 114,614 14,336,000 10 6,970,000 21,306,000 2016 15 56,641 16,369,635 7 8,551,360 24,920,995 Annual Average Increase 2007-2016 62,000 $10,340,000 0 $8,980,000 $19,320,000 Excluding 2007 & 2013 43,000 $6,370,000 0 $8,720,000 $15,090,000 Source: Economic & Planning Systems analysis of Town of Avon CAFR Commercial Construction Residential Construction Scenario Commercial Residential Commercial Residential Total A: 2007-2016 Average per Year $10,340,000 $8,980,000 $206,800 $179,600 $386,400 B: Excluding 2007 & 2013 $6,370,000 $8,720,000 $127,400 $174,400 $301,800 C: 50% of Scenario B $3,185,000 $4,360,000 $63,700 $87,200 $150,900 Source: Economic & Planning Systems analysis of Town of Avon CAFR Ann. Valuation Increase 4.0% Use Tax on 50% of Valuation Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 49 Fiscal Analysis Excise tax can be charged several ways. The most common way is as a percentage of valuation or on a square footage basis. As shown in Table 26, an excise tax of 1.0 percent applied to 100 percent of valuation would generate between $75,000 and approximately $200,000 per year using the same assumptions on annual construction valuation as above. A 2.0 percent excise tax on 100 percent of valuation would generate the same amount of money as the 4.0 percent excise tax on 50 percent of valuation. Table 26 Annual Excise Tax Estimates Use tax and excise tax could also be combined. If both taxes were implemented, they could generate an estimated $226,000 to $580,000 per year as shown in Table 27. Use tax would be entirely new revenue however, as it would replace the sales tax on building materials. Table 27 Combined Use Tax and Excise Tax Estimates Scenario Commercial Residential Commercial Residential Total Commercial Residential Total A: 2007-2016 Average per Year $10,340,000 $8,980,000 $103,400 $89,800 $193,200 $206,800 $179,600 $386,400 B: Excluding 2007 & 2013 $6,370,000 $8,720,000 $63,700 $87,200 $150,900 $127,400 $174,400 $301,800 C: 50% of Scenario B $3,185,000 $4,360,000 $31,850 $43,600 $75,450 $63,700 $87,200 $150,900 Source: Economic & Planning Systems analysis of Town of Avon CAFR Ann. Valuation Increase 1.0% Excise Tax 2.0% Excise Tax Low High Low High Low High $150,900 $386,400 $75,450 $193,200 $226,350 $579,600 Source: Economic & Planning Systems analysis of Town of Avon CAFR 4.0% Use Tax 1.0% Excise Tax Total if Both Implemented Peer Community Comparison of Revenues, Budgets and Services and Assessment of RETT Impacts June 7, 2018 Economic & Planning Systems, Inc. 50 Fiscal Analysis Vehicle Use Tax The only peer community with a vehicle use tax is Steamboat Springs. No local data in Eagle County was available on which to base an estimate for Avon. Looking at the past 10 years of vehicle use tax in Steamboat Springs shows a range of approximately $1,000 to $1,400 in vehicle sales (taxable sales) per capita per year as shown in Table 28. Applying those factors to Avon’s population results in an estimate of $263,000 to $368,000 per year. Table 28 Estimated Annual Vehicle Use Tax Gallagher Amendment Impacts The Gallagher Amendment, passed in 1982, was designed to maintain a constant ratio between the property tax revenue that comes from residential property (approximately 45 percent) and from commercial property (approximately 55 percent). The effect of the Gallagher Amendment over time was to reduce the assessment rate for residential property, as residential property assessed value (AV) has increased faster than commercial property value AV. Commercial property is now assessed at 29 percent of market value while residential property is assessed at 7.2 percent of market value. The same amount of statutory actual value (market value) in commercial development therefore generates four times the revenue as an equivalent amount of residential market value. Residential development has higher service demands but generates less revenue than commercial development; there are exceptions when residential market values are very high. The residential ratio is down approximately 10 percent from 7.96 percent as of 2017. This means that unless a community had more than 10 percent growth in assessed value, it would lose property tax revenue. Based on the current strength of the housing market, the residential assessment ratio could decline further, which will continue to affect local government budgets. Estimate Per Capita Vehicle Sales Volume [1] Avon Population Vehicle Sales Annual 4.0% UseTax Low $1,000 6,570 $6,570,000 $262,800 High $1,400 6,570 $9,198,000 $367,920 [1] Estimated from Steamboat Springs Vehicle Use Tax per capita. Short-Term Rental Compliance Report Martha Anderson Senior Accountant, Town of Avon June 12, 2018 Agenda Public Outreach Activities Short-Term Rentals Compliance Program Results Evaluation of Host Compliance Services Evaluation of LODGINGRevs Services Review of Current Short-Term Rental Requirements Review of Short-Term Rental Requirements in Other Local Governments Recommendations Questions Public Outreach Activities Press release block posted in Vail Daily Short-term rental webpage Letters: To all residential properties in Avon To lodges with a front desk presence To property management companies Short-Term Rental Program Results Total new short-term rental revenue: $76,356.89 Total new short-term rental business licenses: 68 or 41.5% Total compliance letters sent to residents: 65 Rental units that have received letters and are now compliant: 59 or 91% Total compliant rental units: 254 Units that are licensed and in compliance with the Town of Avon Average new rental units per month: 58 New rental units added to the Town of Avon market Average rental units removed per month: 32 Rental units removed from the Town of Avon market Short-Term Rental Program Results Continued… Average rental units in the Town of Avon: 947 Total rental units with online advertisements. These can be active, inactive, short- term, long-term, identified and not identified Average rental units identified: 316 or 57% Rental units that have been linked to a specific parcel number, unit number and property owner Average rental units not identified: 238 or 43% Rentals units that have not been linked to a specific parcel number, unit number and property owner (E.g. 126 Riverfront Ln) Average rental units with no active advertised listings: 385 Rental units that are temporarily inactive and can quickly become actively advertised Average long-term rentals: 8 New Short-Term Rental Revenue Revenue includes business license fees and sales and accommodation taxes. Total new business revenue since August 2017 is $76,356.89 New Short-Term Rental Revenue 46% 47% 7% Sales Tax Accommodations Tax Business License Fee New Short-Term Rental Business Licenses Letter Recipients Two Types: Municipal Code Violation. A resident is operating a short-term rental in a zone that is allowed to do short-term rentals but is not licensed with the Town and is not remitting sales and accommodation taxes to the Town Cease & Desist. A resident is operating a short-term rental in a zone that is prohibited from doing short-term rentals Host Compliance Services Address Identification Online dashboard with complete address information and screenshots of all identifiable STRs in Avon’s jurisdiction Compliance Monitoring Ongoing monitoring of STRs for zoning and permit compliance coupled with systematic outreach to illegal short-term rental operators (Compliance Letters) Rental Activity Monitoring Ongoing monitoring of Avon’s STR listings for signs of rental activity Compliance Program Challenges Host Compliance: Units not identified by Host Compliance found in Eagle County Assessor’s Site Resolution: Training issue with Host Compliance analysts. I trained staff on how to navigate the site and find unit information Revenue estimate for assessment letters incorrect Revenues estimate not accurate Host Compliance was using the date of the review to come up with revenue estimate, this was change to use the date of stay The number of documented stays was different in the revenue estimate than in the rental unit record Resolution: The revenue estimate was only going back 3 years so time constrains were removed and the estimate was extended to 2012 since Host Compliance earliest review in listings in Avon Incorrect recipients Letters sent to previous property owners Resolution: I asked Host Compliance to update their database with Eagle County records on a monthly basis. I showed Host Compliance how to access the database from Assessor’s Site Letters addressed to addresses in Edwards Resolution: Directed Host Compliance to use the mailing address from Eagle County records, HC will change city to Avon. Host Compliance uses google maps to pull addresses Time spent in program administration An average of 12-24 hours a month are spent in updating the license database, answering to residents that received compliance letters, researching new STR license applicants for past documented stays, reviewing letters to be sent out, updating statistics, preparing a reconciliation, researching properties not in compliance and preparing assessment calculations Host Compliance Cost Initial cost paid in 2017: $51,578 Service Single Renewal Multi-Year Renewal Year 2 2-Year 3-Year (10% Discount) Address Identification $19,125 $19,125 $17,213 Compliance Monitoring $5,878 $5,878 $5,290 Rental Activity Monitoring $7,837 $7,837 $7,053 Total Cost:$32,840 $32,840 $29,556 LODGINGRevs Services Monitor Listings Includes property advertisements from 20+ standards rental sites Identify Properties Reverse geocode the address from each listing across all major STR websites and cross- reference that with LODGINGRevs records and Avon records to ensure the address of the property is accurate as well as the contact information for the owner/manager of the property Verify Compliance Determine the status of required licenses for each property Notifications and Receipt Tracking Include registration instructions for MUNIRevs permitting/licensing site. Instructions are easy to follow and include each property’s unique registration number and activation code to register in 3 steps. Once registered, the property owner or manager is presented with all open task for compliance LODGINGRevs Services Continued… Tax Remittance Properties and managers can readily remit required taxes through the integrated MUNIRevs site Complaints A public property complaint form that supports video, text and audio uploads and is available 24/7 for reporting problem properties to Town staff Booking Data Track and store booked dates for properties to show activity on rentals for court cases or tax compliance Permitting/Licensing LODGINGRevs integrates to MUNIRevs licensing and permitting system Reports The dashboard includes easy to use filters, export capabilities and click through functionality to detail LODGINGRevs Cost Initial Investment: $16,000 Pricing includes: Standard features of LODGINGRevs Four 1-hour videoconference training sessions with staff The Initial Census is the period of 45 business days between contract signing and the go live date Platform configuration to our jurisdiction regulations Listing review for compliance Notification template preparation Initial notifications are sent to properties not in compliance Training staff Service Year 1 Year 2 Year 3 Initial Census Cost $4,000 N/A N/A Annual Cost-Billed Monthly $12,000 $12,000 $12,000 Total Cost:$16,000 $12,000 $12,000 LODGINGRevs Features The LODGINGRevs platform integrates directly to our MUNIRevs system for our permitting, licensing or tax collection requirements Established relationship with parent company (Munirevs) Cost-efficient platform Compliance rate of over 95% LODGINGRevs is customizable to our regulations and needs for compliance Ability to automate required affidavits before a new license or permit is issued Dedicated support team hotline for property owners and managers to call with account/licensing/permitting questions Ability to a have a dedicated online portal for neighbors to submit complaints Craigslist is part of the list of sites being monitored for STR’s Colorado clients include the Town of Telluride, Town of Mountain Village, Town of Timnath, Clear Creek County, Town of Snowmass Village and Town of Winter Park Reporting tool included Current Short-Term Rental Requirements Current Requirements for Property Owners: Ensure that the property is located in an area that allows short term rentals Obtain a short-term rental business license and renew annually List short-term rental business license number on all advertisements Remit 4% sales tax and 4% accommodation tax to the Town Current Requirements for Property Management Companies: Current management companies can submit sales and accommodation taxes under their account Obtain a short-term rental business license for every unit they manage Current Requirements for Lodges with Front Desk Presence: Provide a list of units managed by lodge All units are covered under the lodge business license Short-Term Rental Requirements in Other Colorado Local Governments Safety: Initial inspection. Unit required to meet applicable building, health and fire codes. Interior signs with contact numbers and emergency exit locations Parking: Acknowledgment of town parking regulations. Minimum and maximum required off-street parking Noise and trash: Acknowledgment of the Town regulations Neighbor Notification: Written notice to neighbors living close to the boundary of the property (E.g. 100 ft) Occupancy: Maximum occupancy in certain zones Complaints: Having a local agent to handle complaints and problems Registrations: Cap on number of registrations HOA: Verify that short-term rentals are allowed with the HOA, if applicable Recommendations Review of requirements The creation of regulation to enforce our short-term rental requirements and manage complaints Enforcement Regulations Addressing: Complaints Violation of Town requirements and penalties Back taxes collection Provide clarification on who needs a short-term rental license and how to collect taxes for lodges with a front desk presence Short-term rental complaint and resolution process Property owners to provide a notarized affidavit affirming they have met Town requirements Contracting with LODGINGRevs Questions June 5, 2018 Planning and Zoning Commission Meeting Abstract 1 Planning & Zoning Commission Meeting Abstract for Tuesday, June 5, 2018 I. Call to Order The meeting was called to order at 5:05 by Planning Director Matt Pielsticker. II. Town Clerk Swearing in of Commissioners Howell and Golembiewski Debbie Hoppe, Avon Town Clerk, sworn in the continuing Planning and Zoning Commissioners. III. Roll Call All Commissioners were present with the exception of Hardy and Dammeyer were absent. Commissioner Golembiewski acted as interim chairperson until Item VI. Commissioner Barnes arrived after roll call, during Item VI and resumed chair duties. IV. Additions & Amendments to the Agenda Written public comments regarding item X were distributed. V. Conflicts of Interest No Conflicts of interest were disclosed. VI. Consent Agenda: Basecamp Residential Project Entrance Sign – 38359 US 6 Action: Commissioner Nusbaum made a motion to approve consent agenda. Commissioner Glaner seconded the motion. The consent agenda was approved unanimously 5-0. VII. Major Development Plan – 254 Riverfront Lane – CONTINUED PUBLIC HEARING File: MJR18005 Legal Description: Lot 4 Riverfront Subdivision Applicant: Jim Telling with East-West Partners Summary: Application to build one triplex and six (6) duplexes on the property to the west of the Westin hotel and condo property. Continued from the May 15, 2018 meeting. Public Comments: No public comments. Action: Commissioner Nusbaum made a motion to recommend Town Council approval of the application with the following findings and conditions: Findings: 1. The proposed application was reviewed pursuant to §7.16.080(f), Development Plan, §7.16.090(f), Design Review. The design meets the development and design standards established in the Avon Development Code and the PUD Design Standards; 2. The application is complete; 3. The application provides sufficient information to allow the PZC to determine that the application complies with the relevant review criteria; 4. The application complies with the goals and policies of the Avon Comprehensive Plan; and 5. The design relates the development to the character of the surrounding community. Conditions: 1. A satisfactory irrigation plan that achieves silver or better LEED standards, and demonstrates square footage coverage and hydrozones shall be presented to staff before a building permit will be issued; June 5, 2018 Planning and Zoning Commission Meeting Abstract 2 2. No trees beyond those indicated on the landscape plan will be removed without the approval of the Town, and special efforts will be made to preserve existing vegetation. 3. Temporary irrigation systems must be removed upon sufficient vegetation establishment, which shall not exceed one (1) year for ground cover, two (2) years for shrubs or three (3) years for trees. 4. The supply of water and fire services will be verified prior to issuing a building permit; and 5. The applicant shall provide a satisfactory snow removal plan on Riverfront Lane. Commissioner Glaner seconded the motion and the motion passed unanimously 5-0. VIII. Workforce Housing Plan –PUBLIC HEARING File: CPA18001 Summary: Review of the Avon Workforce Housing Plan, with recommendation and findings prepared for Town Council final action. Public Comments: Todd Roehr presented his review of short term rentals and their relationship to workforce housing. Action: Commissioner Glaner made a motion to continue the item to the June 19, 2018 PZC meeting. Commissioner Golembiewski seconded the motion and it passed unanimously 5-0. IX. Special Review Use – 228 and 238 West Beaver Creek Boulevard - CONTINUED PUBLIC HEARING File: SRU15004 Legal Description: Lot 37 A&B Lot 38 A&B Block 2 Benchmark at Beaver Creek Applicant: Todd Roehr Summary: Application to extend the property’s Bed and Breakfast use in perpetuity. PZC asked for more information from the applicant during the initial public hearing. Public Comments: There were no public comments. Action: Commissioner Glaner made a motion to approve the SRU permit with the following findings and conditions: Findings: 1. The Application was reviewed in accordance with Sec. 7.16.100 Special Review Use and determined to be eligible for consideration with the applicable review criteria; 2. The application is complete; 3. The application provides sufficient information to allow the PZC to determine that the application complies with the relevant review criteria; 4. The application complies with the goals and policies of the Avon Comprehensive Plan; 5. The public services and infrastructure needed for this application is provided by current capacity; and 6. The proposed use is consistent with the purpose and intent of the RD zone district, and the scale of adjacent uses and activities. Conditions: 1. Permit is valid for 10 years, until June 5, 2028; 2. The owner shall ensure the duplexes are occupied with an operator; 3. The owner and/or operator shall ensure all guests, visitors, employees, owners and operators of the Bed and Breakfast park on-site; and June 5, 2018 Planning and Zoning Commission Meeting Abstract 3 4. This use is granted to Mein House LLC, under control of Todd Roehr. Any change in ownership shall require advanced notification to Community Development, and re-review by the Planning and Zoning Commission. Commissioner Howell seconded the motion and it carried unanimously 5-0. X. Minor Development Plan – 2011 Beaver Creek Point addition – PUBLIC HEARING File: MNR18014 Legal Description: Lot 111C Block 1 Wildridge Applicant: Tom Rummler Summary: Proposed construction of a garage, deck, and solar panel addition on the south side of the existing house. Public Comments: Written public comments from were referenced, including Doug and Lisa Curry, Emily Horstmann, Debbie Connolly, Isaac Thompson; Richard Clubine, David & Mary Ann Scherpf, Cristian Basso. The following members of the public spoke on the application: David Scherff, 2011 Beaver Creek Point; Prentice O’Leary, 2060 Beaver Creek Point; Hugh Joyce 2001 Beaver Creek Point. Action: Commissioner Howell made a motion to table the item pending further information. Commissioner Glaner seconded the motion and it passed unanimously 5-0. XI. Work Session - Sign Code Summary: Town staff delayed this work session untill June 19, 2018. XII. Action on Meeting Minutes • May 15, 2018 PZC Minutes Action: Commissioner Glaner made a motion to approve the May 15, 2018 meeting minutes. Commissioner Nusbaum seconded the motion, and all were in favor. The motion passed 4-0, with Commissioner Barnes abstaining due to his absence from the previous meeting. XIII. Action on Records of Decision • Major Development Plan and Alternative Equivalent Compliance - 4561 Flat Point Action: Commissioner Howell motioned to approve the record of decision. Commissioner Golembiewski seconded the motion and it carried 4-0 with Commissioner Barnes abstaining due to his absence from the previous meeting. • Major Development Plan - 4250 Wildridge Road West Action: Commissioner Howell motioned to approve the record of decision. Commissioner Golembiewski seconded the motion and it carried 4-0 with Commissioner Barnes abstaining due to his absence from the previous meeting. • Alternative Equivalent Compliance – 2290 Old Trail Road Fence Action: Commissioner Howell motioned to approve the record of decision. Commissioner Golembiewski seconded the motion and it carried 4-0 with Commissioner Barnes abstaining due to his absence from the previous meeting. XIV. Staff Updates • Barn RFP Review • July 3, 2018 meeting is cancelled. XV. Adjourn The meeting was adjourned at 9:33 p.m. Heil Law & Planning, LLC E-Mail: ericheillaw@gmail.com HEIL LAW & PLANNING, LLC MEMORANDUM TO: Honorable Mayor Fancher and Town Council members FROM: Eric J. Heil, Town Attorney CC: Ad Hoc Special Events Committee; Louise Duncan, Interim Special Events Manager; Scott Wright, Acting Town Manager; Preston Neill, Deputy Town Manager RE: Conflicts of Interest DATE: June 6, 2018 SUMMARY: This memorandum brings to Council’s attention some conflict of interest matters that have arisen on the Ad Hoc Special Events Committee (“Events Committee”), which may not be intended or desired. CONFLICTS: Several members of the Events Committee have potential conflicts of interest under the Town Code of Ethics which may disqualify them from participating on the Events Committee. Specifically, Derek George is contracting with the Town to operate a series of farmers’ markets this summer. Pedro Campos is partner with Zehren Associates who is currently submitting a proposal for design services related to the Hannewald Barn project. Timothy Haley works for Alpine Bank who has provided financial services to the Town of Avon, including the current loan for the Avon Urban Renewal Authority. ETHICS CODE: The Town Code of Ethics is set forth in Chapter 2.30 of the Avon Municipal Code (“Ethics Code”). The Ethics Code defines Officer to mean, “any person holding a position by election or appointment in the service of the municipality, whether paid or unpaid, including the members of the Town Council, any other Town board, committee or commission, any employee and any independent contractor.” Thus, Officer includes all members of the Events Committee. In 2015, the Avon Town Council amended the Ethics Code by Ordinance No. 15-05 to add Section 2.30.120 – Public Contracts, which reads as follows: 2.30.120 - Public contracts. (a) The Town shall not enter into any contract with a Town Officer (including spouse or minor children of the Town Officer) to provide any compensation from the Town for the provision of goods or services and shall not approve any vendor permit or privilege to conduct commercial business on Town property during such officer's term, appointment or employment with the Town; provided that this restriction shall not apply to compensation provided to any Town Officer for performance of official duties for the Town. This section shall not operate to restrict the Town from entering into contracts or approving vendor permits and privileges to an organization which employs a Town Officer if such Town Officer is not an owner or controlling officer of such organization that receives such compensation, permits or privileges and such Town Officer declares a conflict of interest in accordance with Section 2.30.060(3) and does not participate in any Town decision related to such public contract. For the purposes of this section, ownership in an organization shall include any ownership interest that is greater than one percent (1%). (b) The provisions of Subsection (a) above shall not apply to: Avon Town Council RE: Events Committee Conflict of Interest Date: June 6, 2018 Page 2 of 3 (1) Investments or deposits in financial institutions which are in the business of loaning or receiving money; or, (2) With respect to which the Town Officer has voted therein in accordance with Section 2.30.100. (c) It shall be a violation of this Chapter for any Town Officer to enter into a contract with the Town or receive compensation or receive vendor permits or privileges from the Town in violation of this section. (d) Any contract approved by the Town or vendor permit or privilege granted by the Town in violation of this section shall be unenforceable against the Town. Section 2.30.120 establishes a strict prohibition that no Town Officer, including Event Committee members, is permitted to enter into any contract for compensation with the Town. Employees of a company who have no ownership interest (less than 1%) are exempt from this rule. This provision of the Ethics Code is more restrictive than the statutory Standards of Conduct. CRS §24-18-201 et. seq. sets forth Proscribed Acts Related to Contracts and Claims. This statute is attached for reference with the relevant wording highlighted. Specifically, this statute permits local government officials to contract with the local government entity if such official is the lowest responsible bidder based on a competitive bidding procedure or if the public official has disclosed his or her interest to the governing body and has not voted on the matter. CONSIDERATIONS: It is my understanding that the Events Committee is intended to include community members with business interests. Inclusion of community members with business interests has inherently greater potential to result in conflicts of interest. Some conflicts of interest may be direct with the activities of the Events Committee, such a contracting with the Town to operate a special event, while other conflicts of interest are indirect, such as providing services to the Town which are unrelated to special events. Council is asked to consider whether the strict application of the Ethics Code with regard to public contracts in relationship to benefit of including Event Committee members with community business interests. OPTIONS: The following options are outlined for Council: 1. No Action: Retain and enforce the Ethics Code as written, which would result in the removal of Event Committee members who have a conflict of interest under AMC § 2.30.120 Public Contracts. 2. Amend Ethics Code to follow the State Standards of Conduct for Public Contracts: Amend the Town Code of Ethics to adopt rules similar to the State Standards of Conduct with regard to public contracts (i.e. Event Committee members are not precluded from contracting with Town on any matters, including special events, if (1) they are lowest responsible bidder in a competitive bidding process or (2) the Event Committee member has disclosed the conflicting interest and has not participated in the vote. 3. Amend Ethics Code to define conflicts to NOT INCLUDE unrelated public contracts: Amend the Town Code of Ethics to state conflicts do not include public contracts by Event Committee members Avon Town Council RE: Events Committee Conflict of Interest Date: June 6, 2018 Page 3 of 3 (and any other advisory committee or advisory board members) which are unrelated to the subject matter of such committee or board. Council may also wish to remand back to the Events Committee for a recommendation on ethics and defining conflicts of interest with contracts. LEGAL CONSEQUENCE OF DEFERRING ENFORCEMENT: AMC § 2.30.140 Enforcement states that the Town Council has the primary responsibility for enforcement of Ethics Code. The Events Committee is primarily an advisory committee; therefore, there is no adverse consequence to the Town of deferring strict enforcement of AMC §2.30.120 Public Contracts if Council desires to consider amendments. Thanks, Eric ATTACHMENTS: CRS §24-18-201 Colorado Statutes Title 24. GOVERNMENT - STATE ADMINISTRATION Article 18. Standards of Conduct Part 2. PROSCRIBED ACTS RELATED TO CONTRACTS AND CLAIMS Current through Chapter 229 of the 2018 Legislative Session § 24-18-201. Interests in contracts (1) Members of the general assembly, public officers, local government officials, or employees shall not be interested in any contract made by them in their official capacity or by any body, agency, or board of which they are members or employees. A former employee may not, within six months following the termination of his employment, contract or be employed by an employer who contracts with a state agency or any local government involving matters with which he was directly involved during his employment. For purposes of this section, the term: (a) "Be interested in" does not include holding a minority interest in a corporation. (b) "Contract" does not include: (I) Contracts awarded to the lowest responsible bidder based on competitive bidding procedures; (II) Merchandise sold to the highest bidder at public auctions; (III) Investments or deposits in financial institutions which are in the business of loaning or receiving moneys; (IV) A contract with an interested party if, because of geographic restrictions, a local government could not otherwise reasonably afford itself of the subject of the contract. It shall be presumed that a local government could not otherwise reasonably afford itself of the subject of a contract if the additional cost to the local government is greater than ten percent of a contract with an interested party or if the contract is for services that must be performed within a limited time period and no other contractor can provide those services within that time period. (V) A contract with respect to which any member of the general assembly, public officer, local government official, or employee has disclosed a personal interest and has not voted thereon or with respect to which any member of the governing body of a local government has voted thereon in accordance with section 24-18-109(3)(b) or 31-4-404(3), C.R.S. Any such disclosure shall be made: To the governing body, for local government officials and employees; in accordance with the rules of the house of representatives and the senate, for members of the general assembly; and to the secretary of state, for all others. Cite as C.R.S. § 24-18-201 History. L. 88: Entire article added, p. 905, § 1, effective July 1. Case Notes: ANNOTATION Local government officials should not be interested in any contract made by them in their official capacity and an official who has a private interest in any matter proposed or pending before the governing body should disclose the interest to the governing body and not vote on it; however, this section specifically exempts any contract awarded to the lowest responsible bidder based on competitive bidding procedures. Indep. Ethics Comm'n Advisory Opinion 12-01. It would not pose a violation of this section for a retired community college accounting professor to enter into a contract with the college since he was not involved in the accounting procedures at the college when he was employed there and the proposed contract ATTACHMENT: CRS §24-18-201 does not involve a matter in which he was directly involved as a professor. Indep. Ethics Comm'n Advisory Opinion 10-08. It would not violate this section for a former employee of the department of health care policy and financing to enter into a contract with a consulting company to work on project management issues relating to a major health care provider, where the state agency indicated there is no conflict. Indep. Ethics Comm'n Letter Ruling 10-02. It would violate this section for a former employee of the department of human services to enter into a contract or seek employment before the passage of six months with one of the direct service organizations that continues to contract with the department since the former employee possesses knowledge not readily available to members of the public as a result of the former state employment. Indep. Ethics Comm'n Letter Ruling 14-02. Because employee's duties as area maintenance manager for the governor's office of information technology (OIT) have been reassigned and he no longer has responsibilities or duties over the site in question and the employee has made a full disclosure to his supervisors and there is no information that he took advantage of information unavailable to others not in government employment, the employee is not in violation of this section if he leases properties owned by a limited liability corporation controlled by his wife to the OIT. Indep. Ethics Comm'n Advisory Opinion 13-05. A state agency is in the best position to determine whether a state employee's future employment outside of state government poses a conflict of interest given the agency's superior understanding of the duties performed by the state employee involved. Indep. Ethics Comm'n Advisory Opinion 13-13. There is no violation of the public trust or appearance of impropriety if state employee receives profits from his patented design since he developed the design at the request of the employer, patented it only after obtaining permission from the agency, and agreed to put the needs of the people of the state first by not charging the department for present or future use of the design. Indep. Ethics Comm'n Advisory Opinion 15-04. ATTACHMENT: CRS §24-18-201