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VOID- Delete2019 Adopted Budget Five Year Capital Improvements Plan Town of Avon, Colorado 2019 ADOPTED BUDGET Prepared by: Department of Finance Scott C. Wright, CPA, CPFO, Acting Town Manager TOWN OF AVON, COLORADO 2019 ADOPTED BUDGET Town Council Jennie Fancher, Mayor Sarah Smith Hymes, Mayor Pro Tem Megan Burch Matt Gennett Amy Phillips Scott Prince Jake Wolf Leadership Team Scott Wright, Acting Town Manager / Finance Director Preston Neill, Deputy Town Manager 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, Mobility Director Cover Photo: Nottingham Lake with view of the Pavilion by Max Phannenstiel Town of Avon 2019 Adopted Budget Table of Contents I. Introduction and Budget Structure 1-8 Budget Message 9 Organizational Chart 10-12 Profile of the Town 13-24 2019 Strategic Plan 25-27 Fund Descriptions and Basis of Budgeting 28-31 Financial and Budgetary Policies II. Financial Overview and Fund Summaries Consolidated Financial Schedules and Graphs: 1 Financial Overview - Total All Funds 2-3 Financial Overview - Total By Fund - 2019 Adopted Budget 4 Graphs - 2019 and 2018 Total Operating Revenues by Major Source 5 Graph and Table - 2019 Taxes by Type 6 Graphs - Property Taxes 7 Graphs - 2019 and 2018 Total Expenditures by Major Function 8 Graph and Table - 2019 Expenditures by Fund Type 9 Graphs - 2019 and 2018 Fund Balances by Fund 10 Graphs - 2019 and 2018 Personnel Expenditures Fund Summaries General Fund 11 Fund Summary 12 Graphs - Operating Revenues and Operating Expenditures 13 Graph and Table - Tax Revenue 14 Graph and Table - Expenditures by Object Class and Function 15-17 Revenue Detail 18-19 Department Expenditure Summaries 20-21 Departmental Operating Costs 22-25 Avon Urban Renewal Authority Fund 26-27 Community Enhancement Fund 28-30 Water Fund 31-32 Affordable Housing Fund 33-34 Exterior Energy Offset Fund 35-36 Disposable Paper Bag Fee Fund 37-38 Debt Service Fund 39-42 Mobility Enterprise Fund 43-45 Fleet Maintenance Enterprise Service Fund 46-58 Equipment Replacement Internal Service Fund Page 1 Town of Avon 2019 Adopted Budget Table of Contents III. Capital Projects 1 Capital Projects Budget Summary 2 Capital Projects Fund Summary 3-4 Capital Projects Fund 5-Year Plan - Summary 5-6 Capital Projects Fund 5-Year Plan - Inventory Detail 7 Graphs and Table - Funding Sources and Costs by Category 8-14 Capital Project Descriptions IV. Department Summaries 1-17 A. General Government 1-6 B. Human Resources 1-13 C. Finance & IT 1-15 D. Community Development 1-15 E. Police 1-13 F. Public Works 1-11 G. Engineering 1-21 H. Recreation 1-12 I. Mobility 1-7 J. Fleet Maintenance V. Supplemental 1-3 Personnel Schedule - Full-time Employees 4-5 Full-Time Salary Ranges 6 Part-Time Ranges 7 Debt Schedule 8 Legal Dept Margin 9-27 Chart of Accounts 28-30 Resolution No. 18-23 Adoption of Operating Budget 31-32 Resolution No. 18-24 Adoption of CIP Budget 33 Resolution No. 18-25 Property Tax Levy - General Operating Expenses 34-37 Certification of Tax Levies - Town of Avon 38-39 Resolution No. 18-26 Property Tax Levy - General Improvement District No. 1 40-42 Certification of Tax Levies - General Improvement District No. 1 Page 2 January 14, 2019 Mayor, Town Council and Avon Residents: I am pleased to present the Town of Avon 2019 Adopted Budget. This budget document reflects the Town’s commitment to provide high-quality yet cost-effective services while exercising prudent financial management and reflecting the Town’s stable financial position. This budget document provides a detailed description of the Town’s investment of its valuable resources in operations and capital projects. Included in this description is information on the Town’s organizational structure, historic and projected revenues and expenditures, and explanations for how funding decisions are guided. The document also includes a detailed five- year plan for major capital project investments. The budget was adopted by the Town Council on December 11, 2018, after a series of work sessions and public hearings. Strategy and Priorities The 2019 budget is guided by the 2019 Town of Avon Strategic Plan, which was adopted by the Avon Town Council on October 23, 2018, and was developed to help guide decision-making and provide the structure for ensuring that investments and programs reflect Council priorities in achieving the vision and adopted plans of the Town of Avon. The Strategic Plan is updated each year to reflect the important worked planned by the Town. This budget reflects the Town’s commitment to the successful implementation of the Strategic Plan’s vision for the continued growth and development of Avon. Contained within the Strategic Plan, is the Strategic Plan Vision which provides a dynamic overview describing the way of life in Avon, the value the community holds, and serves as a comprehensive statement regarding the focus and directed outcomes of the Town’s work. Strategic Plan Vision “…to provide a high quality of life, today and in the future, for a diverse population; and to promote their ability to live, work, visit and recreate in the community.” From the Strategic Plan Vision, four key outcomes have been identified to set the prioritized work of the Town. The four outcomes are outlined below: •Support a strong community, building on strengths as a year-round mountain resort community; •Preserve and enhance the natural environment; •Develop inclusive and diverse economic, educational, recreational and cultural opportunities; Section I, Page 1 •Provide a responsive, cutting-edge and effective government. Once the Strategic Plan is adopted, the proposed budget is prepared with departments submitting their plans for implementing the strategies necessary to achieve the outcome identified above. Priority Based Budget The 2019 budget utilizes a Priority Based Budget (PBB) 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. The PBB approach requires budget narratives which describe discrete and specific activities and 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. Performance Metrics In addition to the budgets being described and quantified as activities and operations, “performance metrics” for each of the operations are included. Performance metrics are constructed to encourage performance improvement, effectiveness, efficiency, and appropriate levels of internal controls. The results are intended to help all departments incorporate "best practices” into each operation. The incorporation of performance metrics is a delineation of how department effectiveness will be quantified. The metrics, and the use of the results, are expected to evolve as Avon municipal government becomes more adept in defining, using and amending these measurements. Budget Overview Property Tax and Sales Tax Collection The Town’s net assessed valuation increased by 1.96% in 2018, to a total value of $208,910,930. The Town’s mill rate for general operating purposes will remain at 8.956 mills. The Town does not currently have a mill levy for debt service. Sales tax revenues for 2019 are projected to increase by $75,000 over revised 2018 estimates, which were revised up by $216,539, or 2.6% from the original adopted 2018 budget. The increase is projected to come from sales taxes on cigarettes, which are now subject to the Town's 4% sales tax, and from an increase in sales tax licensees resulting from changes in regulations at the Colorado Dept. of Revenue. The new regulations state that sales tax must be collected and remitted on the jurisdiction's tax rate at the point of delivery for the taxable good when taxable goods are delivered to a Colorado address outside the retailer's jurisdiction. Accommodation tax revenues for 2019 are projected to increase by 2% over revised 2018 estimates which were revised up by $40,145 or 3.1% from the original adopted 2018 budget. Section I, Page 2 All Funds: The Town’s total 2019 appropriations for all funds equals $30,013,091. Total estimated revenues for 2019 are $28,593,474 and estimated total ending fund balances are $15,905,310. Taxes make up 70.42% of estimated operating revenues, with charges for services making up 15.74% and intergovernmental revenues 8.01%. Transportation and fleet maintenance constitute the highest percentage of operating expenditures at 18.11%, with public works and engineering at 17.48%, public safety at 14.93%, general government and finance at 14.84%, recreation at 6.27%, and community development at 5.73%. General Fund: General Fund operating revenues are budgeted at $16,963,158 in 2019, with taxes accounting for the majority of revenues ($13,446,397; 79.27%). Sales and accommodation taxes represent 73.5% of total taxes, with general property taxes representing 13.95%. Appropriations for 2019 General Fund operating expenditures total $15,301,928. Expenditures for public works make up the largest portion (29.0%), with public safety at 25.42%, general government 25.15%, recreation 10.68%, and community development 9.75%. Fund balances in the General Fund are budgeted to decrease by $68,659 to a total estimated ending balance of $5,802,539 for 2019. The estimated ending fund balance represents 33.6% of 2019 General Fund appropriations or the equivalent of over four (4) months of operations. The Town, as a resort community, retains this level of fund balance because of its heavy reliance on sales and property tax revenues, which can fluctuate due to the weather conditions related to winter snowfall and drought periods, the national economy, and general tourism demand. The Town’s fund balance provides the resources necessary to be more adaptable to the short-term financial environment and reduces the need for long term capital financing. Reserve Policy - General Fund balances reflect an allocation of restricted and unassigned fund balances, including the Town’s policy of maintaining a 25% minimum reserve balance. Restricted fund balances include the 3% TABOR Emergency Reserve. $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 2014 2015 2016 2017 2018 YTD Sales Tax Comparison through October Section I, Page 3 Capital Projects Fund: Total expenditures in the Capital Projects Fund are budgeted at $3,245,379 for 2019. Anticipated major projects include phase two of the Beaver Creek Blvd. street rebuild project, the Avon Recreation Center weight room expansion project, Benchmark Rd. on -street parking project, West Beaver Creek Blvd. railroad crossing improvements, and Nottingham Rd. debris flow improvements. The Town collects a 2% tax on the sale price of real property within the Town. These monies are dedicated to capital improvement projects. Real estate transfer tax collections totaled $4,449,530 in 2017, are estimated at $3,500,000 for 2018, and are budgeted at $2,775,000 for 2019. Demand continues to grow for residential and retail/commercial real estate, and local construction contractors indicate strong demand for work in Eagle County. Debt Service Fund: Appropriations in the Debt Service Fund equal $1,018,354 for 2019. Revenues for payment of debt service come from transfers-in from the Capital Projects Fund and interest earnings on bond reserves. All current outstanding debt issues are certificates of participation. Mobility Fund: Appropriations for the Mobility Fund, (formerly the Transit Fund) an enterprise fund, total $2,916,023 in 2019. Revenues in support of the expenditures include $1,200,000 from the 2019 General Fund operating subsidy; property taxes of $41,592 from General Improvement District No. 1; charges for services from Beaver Creek of $124,000 for skier and evening restaurant shuttles, and $146,806 from bus wash revenues by both third party and Town departments; other revenues of $114,192 for the lease of bus parking spaces to ECO and others, and $18,000 in advertising revenues. Total estimated ending fund balance is $386,326. Fleet Maintenance Fund: A second enterprise fund, Fleet Maintenance, has budgeted operating revenues of $1,214,791 from charges for services provided to both third parties and Town departments. An additional $550,000 in other sources is provided through a General Fund operating transfer. Appropriations are budgeted at $1,801,273. The total estimated ending fund balance is $19,326. Other Funds: The Urban Renewal, Community Enhancement, Water, Affordable Housing, Exterior Energy Offset, and Disposable Paper Bag Fee funds provide for the accounting of dedicated revenues to specific types of expenditures. Revenues to these funds generally are aggregated over a period of years into their respective fund balances, and then spent for prioritized projects. 2018 Accomplishments Avon’s Regional Recycle Drop Site Now Housed Next to Home Depot The regional recycling center in Avon has moved from to. The Town of Avon worked with Eagle County to transition the Avon Recycling Center from the site operated by Vail Honeywagon at 160 Nottingham Ranch Road to a new site at 375 Yoder Avenue (Lot 5), a Town-owned parcel, just past the Home Depot. Section I, Page 4 New Avon Town Hall Avon town staff moved into its new headquarters on Monday, October 16, at 100 Mikaela Way. Formerly known as the "Skier Building", the new LEED Gold certified building includes community space and meeting space that is open to the public on the first floor, in addition to staff offices on the second and third floors. Members of the public are invited to an Open House at Avon Town Hall on Tuesday, November 13th at 4:00 p.m. prior to the evening’s Council meeting. Tobacco and Cigarette Regulations In August 2018, the Avon Town Council approved an ordinance which raised the legal age to purchase tobacco products in Avon from 18 to 21 years of age and created a local tobacco sales license. The intent of the ordinance is to make it more difficult for those persons age 18-20 to purchase tobacco products. The Town Council also took action to refer a tax measure on cigarettes, tobacco and nicotine products, which would impose a $3 per pack local excise tax on cigarettes and a 40% local sales tax on the sale of other tobacco products. Town of Avon 40th Anniversary On Thursday, September 13th, the Town of Avon held a community picnic to celebrate its 40th Anniversary. The picnic was held from 5:30 to 7:30 p.m. with free food and drink, and live music provided by the Frisco Funk Collective. Avon Town-owned Properties Development Strategies Since January 2017 the Town has been engaged in developing the Avon Town-owned Properties Plan with Design Workshop, a planning and landscape design firm. Key properties, owned by the Town of Avon, have been studied and discussed over the past year with the community. Comments from an online questionnaire, open houses, and public meetings helped to form the basis for the final plan. As adopted, this plan will serve as a guideline for future development, which includes the following properties: •Tract G. Primarily focused on the east side of Nottingham Park near the old Town Hall and the 351 Benchmark Property (old Fire Station). •Old Wildridge Fire Station •Village at Avon park site •Village at Avon school site (Lot E) •Public Works Site (Lot 5) •Wildwood Properties (Avon Annex Building) Section I, Page 5 Beaver Creek Boulevard Street Improvement Redesign Project The Town of Avon has taken a significant step in bringing walkability, bike safety, and parking and streetscape improvements to the Town in its transformation of Beaver Creek Blvd. through a comprehensive street improvement project of widened sidewalks, modifications of roundabouts, additional on-street parking, improved storm-water treatment, consistent lighting, an east to west bike route through Town, narrowed travel lanes, wayfinding signs, and landscaping improvements. The project was supported by a Walkability Audit completed by world leading walkability expert Dan Burden of Bluezones. Plastic Bag Ban and Paper Bag Fee On May 1, the Avon Town Council enacted a ban on disposable plastic bags being provided by retailers to customers at the point of sale. The goal of the program is to reduce plastic waste by eliminating unnecessary disposable plastic shopping bags. The Town Council is currently researching a further ban on polystyrene. Community Housing Plan The importance of a proactive housing program was reinforced in the Town's 2017 Comprehensive Plan goals and policies, as well as the 2017-2019 Strategic Plan. In March the Town Council conducted a retreat devoted to housing and led by housing professionals from Eagle and Summit counties. The purpose of the retreat was to provide data regarding housing need, review Avon’s current housing stock, learn about successful projects in other jurisdictions, and to develop actionable strategies for the Town. Goals and Objectives of the Community Housing Plan are as follows: • Focus on increasing deed restricted homeownership opportunities for households making equivalent of 140% or less of the Area Median Income - $430,000 for a household of three people in 2018. • Cultivate the goal of homeownership and increase the “missing middle” inventory, in place of additional rental housing stock, to create a more balanced housing portfolio. • Prioritize price point, quality and amenities when considering new rental housing that is attractive to “step up” renters and seniors looking to downsize. • Stabilize or increase the percentage of year-round, Eagle County workforce residents. Richard Wheelock with Agave has entered into a Master Lease Agreement with the Town for the rental of the fire station for the winter season. The aim is to achieve a total occupancy of 25 workers. Richard is working with other local businesses to sublet portions of the leased premises. With several workers already in the process of moving into the building, it is anticipated that the remainder of the rooms will fill up slowly throughout the month as we approach opening day of ski season. Section I, Page 6 Climate Action In December 2017, the Town adopted the 2016 Eagle County Climate Action Plan. With this adoption, Town staff has developed an implementation plan for specific goals. Some of the goals that have been accomplished or are underway include: •Creation of a renewable energy sales tax rebate, •Creation of exterior energy offset regulations and fees, •Extension of the Town's waste heat recovery system to heat New Town Hall, •Join the Colorado Communities for Climate Action (CC4CA) coalition, •Implement a bike share program, •Implement a car pool program, •Plastic bag ban, •Multi-modal plan (see B/C Blvd.) •EV charging stations at New Town Hall, •Conversion of street lighting to LED •New Town Hall LEED Certification •Installation of 150.15kW solar panel array at the Avon Regional Transit Facility and execution of a contract with Holy Cross Energy to sell the Town's energy production back to Holy Cross for 9.572 cents per kWh (Kilowatt Hour). Short-term Rentals In summer of 2017, the Town began a comprehensive program of identifying and licensing short-term rental units within the Town of Avon to ensure compliance with the Town’s licensing and sales tax codes. At the end of the 2017-2018 ski season, a report was given to Town Council containing the following statistical information: •947 total average rental units with online advertisements. These can be active, inactive, short-term, long-term, identified and not identified; •316 average rental units identified. These are rental units that have been linked to a specific parcel number, unit number and property owner; •238 average rental units unable to be identified; •385 average rental units with no active advertised listings. Rental units that are temporarily inactive but that can quickly become actively advertised; •8 average long-term rentals; •Total new short-term rental revenue: $76,356.89; •68 total new short-term rental business licenses. The Town Council is currently evaluation additional zoning code regulations for short-term rentals such as parking requirements, trash, safety requirements such as CO2 alarms, etc. 2019 Budget Expenditure Highlights The 2019 budget has been developed to address priorities identified in the Strategic Plan with major emphasis on the following: Section I, Page 7 •Implement the development strategies identified within the adopted Town of Avon Town- Owned Properties Plan for seven sites including Tract G, Wildridge Fire House, Swift Gulch, the Village at Avon’s “Park Site,” “School Site” (Lot E), Public Works Site (Lot 5), and the Wildwood Properties. •Meet the Comprehensive Plan Housing goals to 1) Achieve a diverse range of housing densities, styles and types, including rental and for sale, to serve all segments of the population; and 2) Coordinate with neighboring communities to provide an attainable housing program that incorporates both rental and ownership opportunities, which are affordable for local working families. •Meet the goals and objectives of the Avon Community Housing Plan. •Invest in Multi-modal Improvements prioritizing walkability and bicycle use on streets, with transit, parking and wayfinding. •Implement the priorities from the 2016 Town of Avon Climate Action Plan Implementation Schedule, adopted on March 28, 2017. •Proactively ensure trees on public and private property do not host and spread viruses; remove dead trees with a well-developed landscape program. •Develop a comprehensive Fire Mitigation Plan for Town-owned properties. •Work with the Eagle River Fire Protection District on planning and implementing an emergency egress for the Wildridge community. •Continue to solicit, develop and fund, in partnership with qualified producers, a diverse program of vibrant arts, educational, cultural and recreational offerings at the Avon Performance Pavilion and Main Street Mall. •Implement the adopted Avon Recreational Trails Plan as prioritized and adopted by the Avon Town Council. •Construct a connecting trail from the southern terminus of Lake Street to the Eagle River Regional Trail. •Implement the action plan to pursue a Colorado Creative District designation. •Rebuild the Eagle River Whitewater Park. None of this effort would have been possible without the continuing support and direction of the Town Council. As representatives of the public interest of the Town of Avon, each member has spent a considerable amount of time and energy in governing the process of preparing this document. In addition, preparation of the annual budget requires a significant effort on the part of department directors and the staff. The staff’s commitment to financial management and efficient and effective operations and services is the key to making the most of every taxpayer dollar spent. Thank you to all who participated in this effort. Respectfully submitted, Scott Wright, CPA, CPFO Acting Town Manager Section I, Page 8 Section I, Page 9 PROFILE OF THE TOWN OF AVON, COLORADO 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 6,541. 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 2020, and the remaining four to be elected in November 2022. The mayor and mayor pro-tem are elected from amongst the elected council members by a majority vote. The mayor presides at meetings of council and shall not vote until all other Council members present who are eligible to vote have had reasonable opportunity to vote. The affirmative concurring vote of four (4) Council members is required for the adoption of an ordinance, resolution, order for appropriation, approval of a contract or approval of an intergovernmental agreement. The Town is a home-rule community empowered to levy a property tax on the assessed value of real property located within the Town. The Town collects a 4% sales tax on all retail sales, and a 4% accommodations tax on the lease or rental of hotel rooms, condominium units and other 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 Section I, Page 10 appropriate by the Town Council. On November 1, 2018, the Town began collecting a 4% sales tax on the sale of cigarettes. Additionally, as part of the November 6, 2018 general election, Avon voters approved a new tax of $3 per pack of cigarettes and a 40% on all other tobacco products. 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. Annual Budget. 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 an adopted 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. Strategic Plan. Town Council updated and approved its 2019 Town of Avon Strategic Plan on October 23, 2018. The 2019 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 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. 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 Beaver Creek Resort best for grooming and Vail was ranked best for terrain for the 2019 Resorts of the Year awards. Section I, Page 11 In addition to skiing and associated winter-time activities, the area promotes many 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 spring Easter egg hunt. 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. Section I, Page 12 TOWN OF AVON 2019 STRATEGIC PLAN Adopted by the Avon Town Council Resolution 18-14, Series of 2018 October 23, 2018 Section I, Page 13 Purpose of the Strategic Plan The Strategic Plan is developed and adopted to guide decision-making and provide the structure for ensuring that investments and programs reflect Council priorities in achieving the vision and adopted plans of the Town of Avon. Updated each year to reflect the priorities of the Town Council, the adopted Strategic Plan provides the Avon community information about the important work planned by the Town, over the planning period. Once the Strategic Plan is adopted, a budget is prepared to meet the program, followed by each department submitting a business work plan to the Town Manager, identifying the timing and process for implementing each strategy. Progress on the work plans are monitored to ensure outcomes are met. •The Comprehensive Plan is the key leadership planning document of the Town and leads the Strategic Plan’s Vision, with the identification of tactical actions to meet the Vision. •In July of 2018, the Town Council provided the opportunity for residents and businesses to identify the most important issues in the Town through civic engagement outreach at open houses and through a Community Survey. The results have aided the Council in identifying priorities over the next several years and have provided information as to other methods to engage the public in the vision and strategic planning of the Town. The Strategic Plan is organized as follows: •The Strategic Plan Vision provides a dynamic overview describing the way of life in Avon, the values the community holds and serves as a comprehensive statement regarding the focus and directed outcomes of the Town’s work. The Vision is directed by the Comprehensive Plan. •From the Strategic Plan Vision, four key outcomes have been identified to set the prioritized work of the Town. The four outcomes, with successes and strategies to achieve each vision are detailed, resulting in a Strategic Plan. Section I, Page 14 Strategic Plan Vision “Avon’s vision is to provide a high quality of life, today and in the future, for a diverse population; and to promote their ability to live, work, visit and recreate in the community.” TOWN OF AVON COMPREHENSIVE PLAN, ADOPTED MAY 23, 2017 The Town of Avon, surrounded by natural beauty, is today a strong community, which will maintain a focus on families and workers, and that will build on its strengths to become a nationally and internationally recognized year-round mountain resort community. Committed to providing a high level of municipal services for our citizens and visitors, and the stewardship of our natural resources, Avon will expand its cultural, recreational and educational offerings in partnership with our broader community and regional public and private sector agencies, thereby ensuring sustained economic vitality and a vibrant community experience. Recent resort-oriented accommodations projects in Avon are of a higher standard than the Town attracted at its founding and in its early years. It is this superior level of quality development that Avon believes will be its comparative advantage in the future, and, therefore, will work to attract and promote these types of developments by ensuring Town plans and incentives are constructed in a manner which provides the development community clear and timely information; and, by steadfastly maintaining a professional and solution-oriented municipal business. The Town will continue to value and support our full-time and part-time resident population by providing an exceptional level of municipal services and by working to retain existing businesses as the Town seeks to expand its retail and commercial base, while fostering our sense of community through both our spirit and the built environment. The importance of vibrancy and activity within the Town will be supported by attracting an array of new and diverse cultural and recreational events to Avon which are in concert with the values of our community and serve to nurture a cohesive sense of place and public. It is the Town of Avon’s elected officials and staff commitment to fiduciary responsibility, effectiveness and efficiency in providing government services and a practiced belief in open and transparent governance that will lead the successful implementation of this vision for the growth and development of Avon. Section I, Page 15 Strategic Plan Fiscal Year 2019 SUPPORT A STRONG COMMUNITY, BUILDING ON STRENGTHS AS A YEAR-ROUND MOUNTAIN RESORT COMMUNITY The Town will continue to value and support our community through a strong and diverse economy, attentive to business retention and proactively partnering with the private sector to expand Avon’s retail and commercial base. The Town’s commitment to planning for future growth; to ensuring there is a hierarchy of built forms to reflect the importance of the Town Center; an openness to new community development trends; and, recognition of private property interests and the costs of doing business with the Town, sets forth a dynamic relationship for the successful construction of the built environment and business growth. In its commitment to supporting a strong, mountain resort community, the Town endeavors to create a visually appealing gateway to Avon. RECENT SUCCESSES Adoption of the Town of Avon Town-Owned Properties Plan Adoption of the Avon Community Housing Plan Adoption of the 2017 Town of Avon Comprehensive Plan Completion of “Fiscal Analysis – Peer Community Comparison or Revenues, Budgets and Services and Assessments of Real Estate Transfer Tax Impacts” Report Launch of Tipsy Taxi Program Avon.org website updated Discoveravon.org website launched Launch of Zagster Bike Share Program Voters approved broadband exemption from SB 05-152 STRATEGIES Tier 1 Priorities Meet the Comprehensive Plan Housing goals to 1) Achieve a diverse range of housing densities, styles and types, including rental and for sale, to serve all segments of the population; and 2) Coordinate with neighboring communities to provide an attainable housing program that incorporates both rental and ownership opportunities, which are affordable for local working families. Meet the goals and objectives of the Avon Community Housing Plan. Implement the development strategies identified within the adopted Town of Avon Town-Owned Properties Plan for seven sites including Tract G, Wildridge Fire House, Swift Gulch, the Village at Avon’s “Park Site,” “School Site” (Lot E), Public Works Site (Lot 5), and the Wildwood Properties. o Develop an implementation plan. o Continue working to bring the Hahnewald Barn project from concept through schematic design for further consideration of relocation. Assist the Planning and Zoning Commission and Avon Historic Preservation Advisory Board, collectively the Hahnewald Barn Stakeholder Group, as they review materials and provide formal recommendations to the Council. Council will make final decisions regarding the design of the project, and authorizing next steps moving forward. o Work with Eagle County to ensure a successful transition of the regional recycling center to Lot 5. Section I, Page 16 o Ensure increased access to the Eagle River. o In the interim, construct cleaning and minor facility upgrade budgets for Fire Station 7 and the Wildridge Fire Station for renting to workers and/or working families, with consideration of terms which allow for future renovation. o Evaluate the development of an Ad Hoc Committee to evaluate the expansion of the Avon Recreation Center for the purposes of: 1) involving community in one of the most used and expensive community assets, (2) determining the best uses as desired by the community for the expansion, and (3) allowing a community based support for any taxing ballot question to be established on a grass-roots basis.  Invest in multi-modal improvements prioritizing walkability and bicycle use on streets, with transit, parking and wayfinding. o Complete the Beaver Creek Boulevard Streetscape Improvements Project. o Complete the Town of Avon Multimodal Transportation and Parking Plan o Nottingham Road/I-70-Avon Road Underpass Improvements – Design 1) Nottingham Road drainage improvements to mitigate mud and debris flows; 2) Pedestrian safety improvements including crosswalks and sidewalks; and 3) I-70-Avon Road Underpass Safety/Beautification Entry Improvement. Bid and Construct as designs and funding are approved. o Fully support Avon transit as a key element of a walkable community; stay attentive to the potential role of autonomous cars. o Participate in the development of the ECO Transportation Development Plan and work with the ECO Board to advance Avon initiatives, such as increasing to late night bus service to serve workers.  Evaluate the tiers of the Avon water tap fee to ensure that the fee accounts fairly for residential home sizes.  Maintain the Zagster bike share program, monitor and report on challenges and successes. Explore expansion of stations, sponsorship opportunities, and partnerships with outside organizations.  Define a broadband strategy and develop a broadband plan that identifies current assets and community needs to assist in developing architectural alternative concepts and cost opinions. Once preferred alternatives are identified and a roadmap is put in place, move into the planning phase.  Work progressively with the Union Pacific Railroad to: 1) Verify the railroad ROW through Avon; 2) Gain permits for needed pedestrian infrastructure on WBCB; 3) Sustain continual clean-up of the railroad ROW; 4) Address the Richardson Ground Squirrel population; and 5) Explore opportunities for a cross-country ski track and allowing railbikes from Edwards to Minturn. Tier 2 Priorities  Evaluate the formation of a special improvement district to improve the facades of the Avon Center, Comfort Inn, First Bank, and other properties along E/W Beaver Creek Boulevard, including but not limited to landscaping, streetscape and beautification programs. Include development of public spaces in the district assessment.  Evaluate whether Avon should pursue a Downtown Development Authority to support economic development partnerships.  Support Town Council efforts to develop a Sister City relationship. On-going  Work proactively with the owners of vacant commercial property to find leaseholders and/or redevelopment projects and, when appropriate, 1) Utilize Urban Renewal Authority tax increments Section I, Page 17 generated from the existing district or in a potential new Urban Renewal Authority district, and/or 2) Other economic development incentives including tax rebates, zoning amendments, etc. Maintain a strong partner relationship with the Avon business community, developers, the EGE Air Alliance, Vail Valley Partnership and the Vail Centre. Consistently issue the Avon Quarterly Business Newsletter and hold annual update meetings with Avon business owners and representatives. Support the efforts of the Avon Business Association, when appropriate. Be aware and proactive in Town projects, programs and day-to-day work in the support, retention and development of inclusive neighborhoods, with specific attention to the needs and opportunities for the Avon Elementary School, such as hosting the spring graduation. In the Town’s Swim Program, when appropriate, include Homestake Elementary students in Avon’s school programs. Throughout the year, Liaison Appointees and Town Manager will meet with respective principals for developments in the Town of Avon to discuss current issues, development needs and opportunities. Maintain Google Transit maps for local bus schedules. Section I, Page 18 Strategic Plan Fiscal Year 2019 PRESERVE & ENHANCE THE NATURAL ENVIRONMENT Maintaining a strong foundation for the stewardship of Avon’s natural resources is a top commitment by the Town in order for the Town to protect Avon’s unique setting and its open spaces. Avon will promote sustainability through the funding of programs and projects to protect the Town’s and the regions clean waters and clean air and to conserve environmental resources. RECENT SUCCESSES Completion of the annexation of the East Avon Preserve Walking Mountains Conservation Easement Adoption of the Climate Action Plan for the Eagle County Community and the accompanying Implementation Schedule CLEER Building Energy Navigator software installed in Town facilities Plastic bag ban and paper bag fee adopted by Council and implemented by staff STRATEGIES Tier 1 Priorities From the 2016 Town of Avon Climate Action Plan Implementation Schedule, adopted on March 28, 2017, implement the priorities, including but not limited to: o Establishing the CO2 baseline, modifying municipal buildings and street lights and monitoring. o Amending the Town’s landscape code to more effectively replace vegetation which has been removed and improve water quality in drainages, streams and along in the Eagle River. o With the expertise of the UERWA, developing outdoor landscape guidelines/regulations to reduce water use and off-site impacts, such as fertilizer run-off, which can affect the Eagle River. o Adopt a paperless strategy to reduce waste and support files, etc. o Take the lead role in working with the UERWA to assess and potentially partner with the Aspens Mobile Home Village to improve and/or replace the property’s water distribution system to eliminate water loss. o Partnering with Walking Mountains Science Center and Eagle County to expand the Energy Smart Program and community educational outreach. o Promote investment and use of energy efficient vehicles, including electric vehicles, by evaluating opportunities to add vehicle charging stations throughout the Town of Avon. Evaluate ways to achieve the Town’s adopted goal to “develop and implement a program to run the Town of Avon – Municipality with 100% renewable energy.” Identify and prioritize which municipal and/or land use codes should be revised to fully implement the Plan, including but not limited to a re-evaluation of the Alternative Equivalent Compliance regulation to include a stronger nexus, with specific metrics for performance to the Climate Action Plan and Avon’s housing goals. Develop, with consultant services, the Harry A. Nottingham Landscape Plan, including in the plan timely replacement of the Town's public tree stock; invite Walking Mountains to evaluate biosphere enhancements to the northwest corner of Nottingham Lake during the planning process. Proactively ensure trees on public and private property do not host and spread viruses; remove dead trees with a well-developed landscape program. Develop a comprehensive Fire Mitigation Plan for Town-owned properties. Section I, Page 19 Work with the Eagle River Fire Protection District on planning and implementing an emergency egress for the Wildridge community. Tier 2 Priorities Consider adopting a “pay-as-you-throw” refuse system and evaluate franchise agreements for waste haulers. At such time as the Eagle County Landfill is prepared to receive compostable collected materials, evaluate how to implement collection in Avon and prepare a recommendation for Council action. On-going Continue serving as an active member of the Climate Action Collaborative to fully implement and achieve the goals of the Climate Action Plan for the Eagle County Community. Continue looking for solar panel installation opportunities. Participate as an active member of the Urban Run-off Group and the Eagle River Watershed Council to evaluate and support, as appropriate, needed Eagle River improvements. Work with the Eagle River Water and Sanitation District, as well as other community organizations, to protect the water quality in the Eagle River for all users. Continue participation in the Actively Green Certification Program. Section I, Page 20 Strategic Plan Fiscal Year 2019 DEVELOP INCLUSIVE & DIVERSE ECONOMIC, EDUCATIONAL, RECREATIONAL & CULTURAL OPPORTUNITIES The importance of vibrancy and activity within the Town 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 and serve to nurture a cohesive sense of place and public. Providing an exceptional system of parks, trails, and recreational programs to serve the year-round needs of area residents and visitors is an important Town goal. RECENT SUCCESSES Completion of the Destination Jump, Splash, Learn Playground in Nottingham Park with a GOCO grant and the appropriation of Community Enhancement Fund monies Completion of detailed diagrams for all Avon event venues, including but not limited to dimensions, location of electrical outlets, irrigation system, domestic water hose bib, parking lots, etc. Completion of Eagle Valley Regional Trail and Metcalf Bike Climbing Lane Completion of Nottingham Park Restroom Remodel Appointment of Ad Hoc Special Events Committee STRATEGIES Tier 1 Priorities Under the auspices of the Ad Hoc Special Events Committee, continue to solicit, develop and fund, in partnership with qualified producers, a diverse program of vibrant arts, educational, cultural and recreational offerings at the Avon Performance Pavilion and Main Street Mall. In particular: o Seek to expand live theater as a desired multi-day or evening festival. o Expand use of the Pavilion in shoulder seasons to local band productions, which are low key and low budget, such as a battle-of-the-bands or open mike nights. o Work with Bravo! Vail to pursue performance options at the Avon Performance Pavilion. o Explore a partnership with the Vail Valley Foundation to provide management of non-Town produced special events at the Avon Performance Pavilion o To streamline and assist local and national big city promoters to efficiently produce and market events: Develop best marketing practices and marketing advice for event success in Avon, and coop with any Avon marketing plan, where Avon has provided funding or use of a Town venue. Establish, for ticketed events, procedures and policies to limit poaching of concerts. Implement the adopted Avon Recreational Trails Plan as prioritized and adopted by the Avon Town Council, as soon as possible; and 1) pursue construction grants, when appropriate; and 2) rigorously seek an easement to construct a connecting trail from the southern terminus of Lake Street to the Eagle River Regional Trail. As directed by the Town Council on May 23, 2017, implement the action plan to pursue a Colorado Creative District designation; budget and retain qualified consultant services for development of a strategic plan, as may be needed. Rebuild the Eagle River Whitewater Park. Section I, Page 21  Evaluate the pros and cons of the Town of Avon using its special event liquor permit quota, as allowed for events at a Municipal Arts and Cultural Facility, which may include the Main Street Mall, New Town Hall, Harry A. Nottingham Park and the Avon Performance Pavilion. As part of the evaluation assess alternatives for forming a (Liquor) Entertainment District or liquor license for venue premises.  Continue to actively work with the USFS to identify and plan for improvements to USFS 779 and USFS 717.1B. Tier 2 Priorities  Build photo monuments around the commercial core to memorialize Avon’s history.  Evaluate a Scientific and Cultural District to provide funding for Walking Mountains Science Center’s educational programming and Avon’s cultural activities.  Identify locations for the installation of outdoor percussion instruments, including pianos, and fund in the Capital Projects Fund, when feasible.  Develop a plan for the completion of the Main Street Mall from the existing Mall to Lake Street and Nottingham Park. On-going  Maintain Nottingham Park to a high standard and continue to make it the focal point of the community.  When approving Town funded or supported festivals and events which offer alcoholic libations, require that the sponsoring non-profit is an Avon community grant recipient or locally based nonprofit.  Support regional World Class events and the Walking Mountains Science Center.  As appropriate, share the results of the Community Survey with potential business interests in terms of types of businesses and services desired in Avon.  Support the unmet needs of non-profit organizations in Eagle County, by way of the Town’s annual Community Grant Program, by welcoming applications from organizations and agencies seeking funding for programs, projects, services or activities that support the Town’s stated priorities in the Town’s annual Strategic Plan.  Maximize the grant resources available through potential sources available such as through the Office of Economic Development and International Trade, including its new Outdoor Industry Recreation Office; a Scientific & Cultural Facilities District, and Department of Local Affairs.  Ensure a valley-wide events calendar is maintained through the Vail Valley Partnership.  Be creative in activating the Town public ways with ideas such as bicycle pedal bars or a railroad trolley car.  Schedule Council civic engagement opportunities at the Pavilion Green Room. Section I, Page 22 Strategic Plan Fiscal Year 2019 PROVIDE A RESPONSIVE, CUTTING-EDGE & EFFECTIVE GOVERNMENT Ensure that Town government is managed and operated as a competitive business and in a manner which is client-focused and solution-oriented, meeting the highest standards of fiduciary responsibility, implementing best practices, and using Town resources effectively and efficiently in each department. Provide for the development of capital projects, which support the community-resort economy, and promote the Town brand through a five-year capital investment plan, utilizing appropriate funding mechanisms such as pay-as-you-go, new mill levy and/or current tax receipt long-term debt. Support a work culture that is flexible, innovative and resilient to change RECENT SUCCESSES  New Police Station at the Public Safety Facility completed  New Town Hall completed with a LEED Silver Certification  Civic engagement programs expanded  Balanced budgets achieved  Reserves maintained STRATEGIES Tier 1 Priorities  Continue implementing the Town of Avon Marketing Plan and Avon Brand Guidelines  Monitor and adjust as needed the comprehensive Community Swim Program.  Identify location(s) and cost(s) for the development of one or more dog parks in Avon or nearby in partnership with Eagle-Vail. Tier 2 Priorities  Plan and budget for the development of Lot 5, in the Five-Year Capital Improvements Plan, including adding a reserve line item for an equipment and vehicle storage facility and future office space.  Update Procurement Code, including revisiting the maximum contract authority for the Town Manager, reviewing expenditure approval levels, and adding provisions for the disposal of excess or obsolete property. Also, clarify other areas of authority on easements, leases, property conveyances, license agreements, etc. On-going  Maintain Town infrastructure, including all buildings, roads, parks, preserves and trails; appropriating deferred maintenance funds as required, and seeking long term debt approval, when appropriate.  Provide strategic Council leadership, consistently practicing open and transparent government.  Continue to evaluate staffing levels to ensure a high level of municipal services for our citizens and visitors. Section I, Page 23  Continue holding an annual Town Clean-Up Day event during the evening hours of a weekday in the spring that includes a community gathering after the clean-up event is completed.  Maintain and consistently evaluate a strong civic engagement program, including ad hoc committees, a triannual community survey, volunteerism program, etc. Look to advance the Town’s partnership with staff members, parents and students at Avon Elementary School.  Maintain fund balances, contingency and reserves to guarantee a fiscal position that is resilient to economic fluctuations; transfer surplus funds to capital projects.  Continue to develop annual department work plans, which are measurable and maintain accountability.  Hold annual or bi-annual sessions in joint meeting settings with government partners.  Seek a naming sponsor for the Avon Performance Pavilion. Section I, Page 24 TOWN OF AVON DESCRIPTION OF FUNDS Fund Major Revenue Sources Purpose Fund Balance Restrictions Fund Balance Reserve Policies General Fund General property taxes, sales taxes, utility taxes, lodging taxes, franchise fees, licenses & permit fees, intergovernmental revenues, recreation charges, fines & forfeitures, investment earnings, other miscellaneous revenues. 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. Restricted - 3% TABOR Emergency Reserve 25% of General Fund total operating expenditures and operating transfers-out, excluding contingency and transfers-out to Capital Projects Fund. Avon Urban Renewal Fund Property tax increment revenues, bond proceeds. Used to account for the activities of redevelopment that are undertaken by the Avon Urban Renewal Authority, including issuing debt and constructing public improvements. Restricted - Bond reserve in the amount of $628,240 is held in a separate Colotrust account.None Water Fund Water surcharges, tap fees. 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. Restricted - Water-related improvements None Community Enhancement Fund 1% Community Enhancement Fee from Holy Cross pursuant to franchise agreement. Used to account for revenues received from the 1% Community Enhancement Fee for use for beatification projects, energy conservation projects, equipment and technology upgrades for schools, scholarship funds, acquisition of open space and/or park land, sponsorship of special community events, and undergrounding of overhead electric and other utility lines Restricted - for the purposes identified per the Holy Cross Franchise Agreement.None Affordable Housing Fund Affordable housing exaction fees, rental revenues from housing units. Used to account for accumulation of resources received and restricted for use in the Town's affordable housing program.No legal restrictions.None The Town of Avon provides an extensive range of municipal services. The following is a list of the Town's funds with major revenue sources, purposes restrictions and reserve policies listed. Section I, Page 25 TOWN OF AVON DESCRIPTION OF FUNDS Fund Major Revenue Sources Purpose Fund Balance Restrictions Fund Balance Reserve Policies Exterior Energy Offset Fund Building fees based upon BTUs required for exterior amenities calculated over a 20-year period. Used to account for fees collected at building permit based upon exterior energy uses for such amenities as swimming pools, heated driveways and spas. Restricted for use in the EEOP fund to create financial assistance, rebates, and incentives to promote energy efficient projects within the Town of Avon.None Disposable Paper Bag Fund A 10 cent ($0.10) fee collected for each disposable paper bag sold by retailers. Used to account for fees collected that are restricted for use. Restricted for use in providing reusable bags to Town residents, educating the public on the importance of waste reduction; purchasing recycling containers, training retailers in implementation of the fee; and maintaining a website about the program.None Debt Service Fund Property taxes, transfers-in from other funds. Used to account for the accumulation of resources for the payment of principal and interest on the Town's general obligation and revenue bonds. Restricted - for repayment of bonded indebtedness.None Capital Projects Fund Real estate transfer taxes, transfers-in from other funds. Used to account for the acquisition and construction of major capital facilities and infrastructure. Restricted - for the purpose of capital improvements, including but not limited to, railroad crossings, bridges and streets, payment of principal of premium, if any, and interest on debt incurred by the Town relating to capital improvements or, upon determination of an emergency by unanimous minus one (1) vote of Council Members present, for any valid municipal purpose. (Ord. 87-19 §1; Ord. 80-6 §14). No formal policy. However, staff has informally used a policy of $1.0 - $1.5 million for any given year within the long-range plan Mobility Fund General Improvement District No.1 property taxes, contracts with other local entities and wash bay charges. Use to account for activities involved in operating the Town's transit system.No legal restrictions.None Section I, Page 26 TOWN OF AVON DESCRIPTION OF FUNDS Fund Major Revenue Sources Purpose Fund Balance Restrictions Fund Balance Reserve Policies Fleet Maintenance Fund Charges for services from Town departments and 3rd party entities, and sales of fuel. Used to account for activities involved in performing maintenance of Town fleet and certain other equipment and for certain 3rd party entities.No legal restrictions.None Equipment Replacement Fund Rental charges to other funds and departments for use of equipment, sales of capital assets, and capital lease proceeds. Used to account for the rental of vehicles and equipment to Town departments for the accumulation of funds for future replacement.No legal restrictions. Fund balance generally equals the collected future replacement cost of the assets held in the fund. Section I, Page 27 TOWN OF AVON FINANCIAL AND BUDGETARY POLICIES The following budget policies are intended to help provide general guidance for operating and CIP budget preparation, adoption, and implementation. GENERAL BUDGETARY POLICIES Responsibilities. Prior to the beginning of each fiscal year, the Town Manager shall prepare and submit to the Council a recommended budget for the next fiscal year and an accompanying message. The Town Manager may delegate this responsibility to a budget officer. If so delegated, the budget officer has full responsibility for managing the coordination and administration of the budget process. The budget is a resource-allocation policy document. Council’s primary focus should be on policy issues. Major policy issues such as funding priorities and “macro” problems shall be described in the budget document. As representatives of the public interest, elected officials frequently devote considerable time and energy to examining details of government operations. This watchdog function is important and is an inevitable part of the budget review process. However, excessive review of details may preclude thoughtful study of broader policy issues that rightfully should dominate public policy debate. The Town Manager, Budget Officer, and Department Directors shall be expected to provide sufficient information to help frame the policy review and debate. Communication. The budget document shall be prepared so that it facilitates public study and effectively communicates key economic issues and fiscal policies. The Town should avoid preparing a budget document that is so detailed that it does not communicate effectively with the public. Long-range Planning. The operating budget shall be developed with a focus on long- term financial balance. Long-term financial commitments should be evaluated closely. Nonrecurring revenues and resources should not be used to finance continuing operations. A 5-year, long-range plan providing projections of revenues and expenditures for the general, special revenue, and debt service funds will be prepared and updated annually to provide prospective to each annual budget process. Public Involvement. Opportunities should be provided for public input at the beginning of the budgeting process as well as during the Council’s public review and budget adoption. Efforts to improve the legitimacy of the budgeting process by involving the public shall be encouraged. Town Council and staff should seek to obtain resident and business reactions before the budget becomes adopted. Section I, Page 28 Level of Service. The Town shall endeavor to maintain its current level of service to its citizens. No increase or decrease in service should be planned except for items discussed during the budget planning process. Performance Measurement. Efficiency and economy in the delivery of Town services is always a priority. Where possible, the Town will endeavor to integrate performance measurement and productivity indicators within the budget. FINANCIAL POLICIES Basis of Accounting. All governmental fund budgets are prepared using the modified accrual basis of accounting. Under this method, revenues are recognized when susceptible to accrual, that is, measurable and available. Available means collectible in the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures, other than interest on long-term obligations that is recorded when due, are recognized when they are expected to be liquidated with expendable available resources. All proprietary fund budgets are also prepared using the modified accrual basis of accounting. While this method is not recognized as generally accepted for proprietary funds, it remains the most practical for the Town of Avon for budgetary purposes. Budgetary Control. Budgetary control is maintained at the departmental level as directed by the Town Charter. All non-capital fund appropriations lapse at the end of the Town’s fiscal year. The Finance Department operates and maintains the Town’s centralized accounting system. Accounting records are maintained in accordance with all legal requirements and generally accepted accounting principles. This automated accounting system, including the Finance Department’s policies and procedures and organizational struct ure, provide multiple levels of controls on expenditures of funds. In addition to the Town’s internal controls, the Town employs a Certified Public Accounting Firm to annually audit its accounting records and review its internal controls. The Town also submits its Comprehensive Annual Financial Report to the Government Finance Officers Association for review regarding conformance to financial reporting standards. The Town has received the Certificate of Achievement for excellence in Financial Reporting each year since 1991. Fund Balances. Fund balances shall be maintained at levels sufficient to absorb unpredictable revenue shortfalls and to insure desired cash flow levels. Fund balances should also be maintained at levels sufficient to avoid undesirable borrowing. “Surplus” fund balances should be committed first to capital needs. Section I, Page 29 Revenues. Revenues provide the resources by which the Town carries out its mission, goals and objectives. Revenue policies in general shall strive to improve the equity and efficiency of the Town’s revenue structure. The Town shall strive to diversify and broaden its supporting revenue base. Cost Recovery Fees and User Fee Levels. Cost recovery fees, where appropriate, should be established to ensure that rates are equitable and cover the total cost of providing the service or that portion of the total cost deemed appropriated by the Town. All fee schedules should be reviewed annually as a part of the budget process and adjusted accordingly. Grants. The Town shall aggressively seek a fair share of available State and Federal financial support unless conditions attached to such assistance are contrary to the Town’s interest. Prior to applying for and accepting intergovernmental aid, the Town will examine the matching requirements so that the source and availability of these funds may be determined before the grant application is made. The Town shall assess the merits of a particular program as if it were funded with local tax dollars. Local tax dollars will not be used to make up for losses of intergovernmental aid without first reviewing the program and its merits. Balanced Budget. The Town of Avon will develop balanced budgets in which current resources (current revenues plus beginning fund balance) will equal or exceed current expenditures. The Town will avoid budgetary and accounting procedures which balance the budget at the expense of future budgets, such as: postponing expenditures, accruing future years revenues, or rolling over short-term debt. The budget will provide for adequate maintenance and replacement of capital plant and equipment. All budgetary procedures will conform with existing state and local regulations. Contingencies. The budget shall include a line item for contingencies for unexpected or unplanned expenditures and emergencies. No transfer from this line item shall be made without the approval of the Town Council. The amount provided for shall be a minimum of 0.5% of total operating expenditures within the General Fund. Procurement. Procurement practices should promote maximum value and economy through a competitive process. Vendors and Service providers should be selected using processes that minimize opportunities for favoritism. The Town’s purchasing and procurement process should encourage life-cycle costing, value analysis, cooperative purchasing, and efficient disposition of surplus assets. Local vendors should be preferred only when such practices are shown to benefit Town citizens and taxpayers. Emergency purchases should be minimized. CAPITAL IMPROVEMENT AND DEBT FINANCING POLICIES Capital improvement policies provide for the systematic repair and/or replacement of existing capital assets. Section I, Page 30 Capital Improvement Program. The Town will plan for capital improvements over a multi-year period of time. The Capital Projects Fund 5-Year Plan represents the Town’s commitment to a multi-year CIP program and relates directly to other long-range plans and policies of the Town. The plan will be updated each year as part of the budget planning process. The plan may include (in years other than the first year of the plan) “unfunded” projects that carry out the Towns strategic and general objectives, but it should also include capital spending that identifies specific projects that can and will be completed with known funding sources. The capital improvements program will incorporate in its projections of expenditures and funding sources any amounts relating to previous year’s appropriations, but which have yet to be expended. The first year of the 5-Year Plan will be used as the basis for formal fiscal year appropriations during the annual budget process. Appropriations made in prior years for which expenditures have not been changed nor projects completed will be reevaluated and incorporated into appropriations for the next fiscal year. Operating Impacts. An economic impact analysis and a maintenance impact statement shall be prepared by staff when submitting a major capital improvement project to Council for consideration for inclusion in the CIP program and 5-Year Plan. Operating fund budgets to maintain capital improvements and additional staff needs must be identified, estimated and amended if necessary, prior to making a final decision to approve and undertake a specific capital improvement project. Technology. New and emerging technologies should be evaluated for opportunities for use. Where new technologies permit labor savings or allow other cost reductions capital spending can help balance future budgets. Capital Financing. Capital improvements will be financed primarily through the Town’s Real Estate Transfer Tax, other user fees, service charges, assessments, or developer agreements when benefits can be specifically attributed to users. Development impact fees should be created and implemented at levels sufficient to ensure that new development pays its fair share of the cost of constructing necessary community facilities. Debt financing is appropriate only as a means of matching facilities’ costs with the benefits enjoyed by future residents. Projects should be categorized as follows, with financing noted for each category: (1) Replacement – capital expenditures relating to normal replacement of worn or obsolete capital plant should be financed on a pay-as-you-go basis, with debt Section I, Page 31 financing only considered when appropriate. Depreciable assets should, whenever possible, be financed through internal service funds; (2) Expansion – capital expenditures relating to the construction of new or expanded facilities necessitated by growth should be financed primarily on a pay-as-you-go basis, but when new improvements can be determined to benefit the overall population in the future, debt financing may be appropriate; (3) Unusual – some capital expenditures for improvements enhance the quality of life in the Town of Avon and are consistent with the Town’s goals but cannot be categorized as essential for the provision of basic services or maintenance of the useful life of existing facilities. The source of funding in this category shall be determined by looking to the ultimate beneficiary of the capital improvement. Section I, Page 32 Original or Final Prev. Amend.Revised Adopted Actual Budget Budget Budget 2017 2018 2018 2019 REVENUES Taxes 18,188,833$ 17,288,894$ 18,093,394 17,684,524$ Licenses and Permits 374,311 231,100 345,600 367,100 Intergovernmental 1,357,782 1,419,926 2,315,573 2,011,585 Charges for Services 4,047,642 3,972,258 3,252,465 3,953,660 Fines and Forfeitures 94,311 92,445 61,375 65,200 Investment Earnings 178,997 186,974 200,571 247,694 Other Revenue 751,777 687,542 740,542 782,118 Total Operating Revenues 24,993,653 23,879,139 25,009,520 25,111,881 Other Sources Sales of Fixed Assets 32,962 23,000 45,000 35,000 Capital Lease Proceeds 355,818 325,000 258,258 - Bond and Loan Proceeds 3,000,000 - - - Transfers-In From Other Funds 7,258,836 4,970,971 5,136,471 3,446,593 Total Other Sources 10,647,616 5,318,971 5,439,729 3,481,593 TOTAL REVENUES 35,641,269 29,198,110 30,449,249 28,593,474 EXPENDITURES General Government and Finance 3,379,282 3,608,291 3,646,443 3,866,146 Community Development 1,505,073 1,392,985 1,384,862 1,492,126 Public Safety 3,416,991 3,697,529 3,740,346 3,889,510 Public Works, Engineering and Utilities 4,318,222 4,692,091 4,499,617 4,553,094 Transportation and Fleet Maintenance 3,799,803 3,381,757 3,498,097 4,717,296 Recreation 1,436,483 1,504,825 1,464,614 1,634,493 Total Operating Expenditures 17,855,854 18,277,478 18,233,979 20,152,665 Debt Service 2,108,915 2,085,410 2,087,602 2,009,709 Capital Improvements and Equipment Replacement 6,919,525 11,581,467 11,667,865 3,890,399 Contingency - 235,578 41,512 200,000 Other Uses Transfers-Out To Other Funds 7,258,836 4,970,971 5,138,971 3,760,318 TOTAL EXPENDITURES 34,143,130 37,150,904 37,169,929 30,013,091 NET SOURCE (USE) OF FUNDS 1,498,139 (7,952,794) (6,720,680) (1,419,617) FUND BALANCES, Beginning of Year 22,547,468 23,762,320 24,045,607 17,324,927 FUND BALANCES, End of Year 24,045,607$ 15,809,526$ 17,324,927$ 15,905,310$ TOTAL - ALL FUNDS TOWN OF AVON Financial Overview Section II, Page 1 Urban Community Affordable Exterior General Renewal Enhancement Water Housing Energy Offset Fund Fund Fund Fund Fund Fund REVENUE Taxes 13,446,397$ 1,421,535$ -$ -$ -$ -$ Licenses and Permits 344,100 - - - - 5,000 Intergovernmental 925,585 - - - - - Charges for Services 1,569,376 - - 180,000 35,000 - Fines and Forfeitures 65,200 - - - - - Investment Earnings 175,000 15,700 - - 519 - Other Revenue 437,500 - 80,000 - 3,223 - Total Operating Revenues 16,963,158 1,437,235 80,000 180,000 38,742 5,000 Other Sources Sales of Fixed Assets - - - - - - Transfers-In From Other Funds 240,111 - - - - - TOTAL REVENUES 17,203,269 1,437,235 80,000 180,000 38,742 5,000 EXPENDITURES General Government, Housing and Finance 3,847,696$ 3,450 - - 10,000 - Community Development 1,492,126 - - - - - Police 3,889,510 - - - - - Public Works, Engineering and Utilities 4,438,103 - - 114,991 - - Transportation and Fleet Maintenance - - - - - - Recreation and Culture 1,634,493 - - - - - Total Operating Expenditures 15,301,928 3,450 - 114,991 10,000 - Debt Service - 891,700 - - - - Capital Expenditures - - - - - - Contingency 100,000 - - - - - Other Uses Transfers-Out To Other Funds 1,870,000 400,000 80,000 160,000 - - TOTAL EXPENDITURES 17,271,928 1,295,150 80,000 274,991 10,000 - NET SOURCE (USE) OF FUNDS (68,659) 142,085 - (94,991) 28,742 5,000 FUND BALANCES, Beginning of Year 5,871,198 497,102 80,000 99,200 593,027 37,768 FUND BALANCES, End of Year 5,802,539$ 639,187$ 80,000$ 4,209$ 621,769$ 42,768$ Special Revenue Funds TOTAL - BY FUND TOWN OF AVON Financial Overview Section II, Page 2 Debt Service Internal Fund Service Disposable Capital Percent Paper Bag Bond Projects Mobility Fleet Equipment of Fee Fund Redemption Fund Fund Maintenance Replacement Total Total -$ -$ 2,775,000$ 41,592$ -$ -$ 17,684,524$ 70.42% 18,000 - - - - - 367,100 1.46% - - 40,000 1,046,000 - - 2,011,585 8.01% - - - 270,806 1,214,791 683,687 3,953,660 15.74% - - - - - - 65,200 0.26% - 12,725 43,750 - - - 247,694 0.99% - - 80,000 153,645 - 27,750 782,118 3.11% 18,000 12,725 2,938,750 1,512,043 1,214,791 711,437 25,111,881 100.00% - - - - - 35,000 35,000 - 1,006,482 450,000 1,200,000 550,000 - 3,446,593 18,000 1,019,207 3,388,750 2,712,043 1,764,791 746,437 28,593,474 5,000 - - - - - 3,866,146 19.18% - - - - - - 1,492,126 7.40% - - - - - - 3,889,510 19.30% - - - - - - 4,553,094 22.59% - - - 2,916,023 1,801,273 - 4,717,296 23.41% - - - - - - 1,634,493 8.11% 5,000 - - 2,916,023 1,801,273 - 20,152,665 100.00% - 1,019,207 98,802 - - - 2,009,709 - - 3,046,577 - - 843,822 3,890,399 - - 100,000 - - - 200,000 - - 1,250,318 - - - 3,760,318 5,000 1,019,207 4,495,697 2,916,023 1,801,273 843,822 30,013,091 13,000 - (1,106,947) (203,980) (36,482) (97,385) (1,419,617) 18,000 535,590 5,614,158 590,306 55,808 3,332,770 17,324,927 31,000$ 535,590$ 4,507,211$ 386,326$ 19,326$ 3,235,385$ 15,905,310$ Enterprise Funds TOTAL - BY FUND TOWN OF AVON Financial Overview Section II, Page 3 REVENUES TOWN OF AVON Financial Overview Taxes 70.42% Intergovernmental 8.01% Charges for Services 15.74% Investment Earnings 0.99%Licenses, Fines, Other 4.84% 2019 Total Operating Revenues By Major Source Taxes 72.35% Intergovernmental 9.26% Charges for Services 13.00% Investment Earnings 0.80%Licenses, Fines, Other 4.59% 2018 Total Operating Revenues By Major Source Section II, Page 4 Original or Final Prev. Amend.Revised Adopted Actual Budget Budget Budget 2017 2018 2018 2019 TAXES General Property Tax 2,916,474$ 3,298,945$ 3,321,761$ 3,339,161$ Specific Ownership Tax 99,498 120,000 105,000 105,000 Real Estate Transfer Tax 4,449,530 3,000,000 3,500,000 2,775,000 Sales Tax 8,051,066 8,218,606 8,435,145 8,510,145 Cigarette, Tobacco, Utility and Other Taxes 154,932 140,000 165,000 325,000 Accomodations Tax 1,333,939 1,306,343 1,346,488 1,373,418 VAA Retail Sales Fee 763,915 775,000 795,000 826,800 Franchise Fees 419,479 430,000 425,000 430,000 Total Taxes 18,188,833$ 17,288,894$ 18,093,394$ 17,684,524$ REVENUES TOWN OF AVON Financial Overview The Town of Avon anticipates collecting approximately $17,684,524 or 70.44% of its operating revenues, through an assortment of taxes in 2019. The chart and table below depicts the amount and type of taxes projected for 2019. The Town's sales tax rate is 4.0%. The sales tax is deposited into the General Fund to partially finance the operating costs associated with providing general governmental type services to the community. The Town also has a 2.0% real estate transfer tax. The tax is charged on all sales of real estate within the Town. Proceeds from this tax are deposited into the Town's Capital Projects Fund and help pay for major capital improvement projects. General Property Tax 18.88% Specific Ownership Tax 0.59% Real Estate Transfer Tax 15.69% Sales Tax 48.12% Cigarette, Tobacco, Utility and Other Taxes 1.84% Accomodations Tax 7.77% VAA Retail Sales Fee 4.68%Franchise Fees 2.43% 2019 Taxes By Type Section II, Page 5 REVENUES TOWN OF AVON Financial Overview Property Tax For 2019, the Town's property tax rate for the General Fund will remain at 8.956 mills. In addition, the Avon Urban Renewal Authority has budgeted $1,421,535 in property tax increment. Total property tax revenues for the Town are budgeted at $3,339,161 or 18.88% of total tax revenues. The two charts below show the Town's historical property tax levies and assessed valuations for the past ten years. $- $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Year Historical Assessed Values $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Year Property Tax Levy Section II, Page 6 *Total expenditures excluding operating transfers and contingencies EXPENDITURES TOWN OF AVON Financial Overview General Government and Finance 11.40% Community Development 4.33% Public Safety 11.69% Public Works, Engineering and Utilities 14.07% Transportation and Fleet Maintenance 10.94% Recreation 4.58% Debt Service 6.53% Capital Improvements and Equipment Replacement 36.47% 2018 Total Expenditures By Major Function* General Government and Finance 14.84% Community Development 5.73% Public Safety 14.93% Public Works, Engineering and Utilities 17.48% Transportation and Fleet Maintenance 18.11% Recreation 6.27% Debt Service 7.71% Capital Improvements and Equipment Replacement 14.93% 2019 Total Expenditures By Major Function* Section II, Page 7 Original or Final Prev. Amend.Revised Adopted Actual Budget Budget Budget 2017 2018 2018 2019 EXPENDITURES Governmental Funds: General Fund 16,765,133$ 17,014,188$ 16,913,283$ 17,271,928$ Special Revenue Funds 4,301,286 2,608,665 2,609,357 1,665,141 Debt Service Funds 1,023,969 1,016,854 1,018,354 1,019,207 Capital Projects Fund 8,054,561 12,544,923 12,219,215 4,495,697 Total 30,144,949 33,184,630 32,760,209 24,451,973 Proprietary Fund Types: Transit Fund 2,137,194 1,687,784 1,774,242 2,916,023 Fleet Maintenance Fund 1,662,609 1,693,973 1,723,855 1,801,273 Equipment Replacement Fund 198,378 584,517 911,623 843,822 Total 3,998,181 3,966,274 4,409,720 5,561,118 TOTAL EXPENDITURES 34,143,130$ 37,150,904$ 37,169,929$ 30,013,091$ EXPENDITURES TOWN OF AVON Financial Overview General Fund 57.55% Special Revenue Funds 5.55% Debt Service Funds 3.40% Capital Projects Fund 11.46% Transit Fund 9.72% Fleet Maintenance Fund 6.00% Equipment Replacement Fund 1.02% 2019 Total Expenditures By Fund Type Section II, Page 8 Original or Final Prev. Amend.Revised Adopted Actual Budget Budget Budget 2017 2018 2018 2019 Fund Balances General Fund 5,814,591$ 5,380,433$ 5,871,198$ 5,802,539$ Capital Projects Fund 11,282,615 4,715,192 5,614,158 4,507,211 Debt Service 535,590 536,567 535,590 535,590 Equipment Replacement 3,534,505 3,309,580 3,332,770 3,235,385 Enterprise Funds 710,428 730,128 646,114 405,652 Special Revenue Funds 2,167,878 1,137,626 1,325,097 1,418,933 Total 24,045,607$ 15,809,526$ 17,324,927$ 15,905,310$ FUND BALANCES General Fund 36.48% Capital Projects Fund 28.34% Debt Service 3.37% Equipment Replacement 20.34% Enterprise Funds 2.55% Special Revenue Funds 8.92%2019 Fund Balances By Fund TOWN OF AVON Financial Overview General Fund 33.89% Capital Projects Fund 32.41% Debt Service 3.09% Equipment Replacement 19.24% Enterprise Funds 3.73% Special Revenue Funds 7.65%2018 Fund Balances By Fund Section II, Page 9 Original or Final Prev. Amend.Revised Adopted Actual Budget Budget Budget 2017 2018 2018 2019 PERSONNEL COSTS Salaries and Wages: Full-time Employees 6,012,861$ 6,173,674$ 6,170,024$ 6,980,272$ PTS Employees 678,363 741,892 730,030 798,461 Overtime & Other Misc. Wages 429,494 497,369 563,194 401,384 Benefits: Insurance 2,000,202 2,405,343 2,367,320 2,386,992 Taxes 99,981 107,355 108,020 118,317 Retirement 689,010 727,934 726,961 802,857 Other Benefits 25,810 23,135 28,182 28,001 Total Personnel Costs 9,935,721$ 10,676,702$ 10,693,731$ 11,516,284$ EXPENDITURES TOWN OF AVON Financial Overview Full-time Employees 60.61%PTS Employees 6.93% Overtime & Other Misc. Wages 3.49% Insurance 20.73% Taxes 1.03% Retirement 6.97%Other Benefits 0.24% 2019 Personnel Expenditures Full-time Employees 57.70%PTS Employees 6.83% Overtime & Other Misc. Wages 5.27% Insurance 22.14% Taxes 1.01% Retirement 6.80%Other Benefits 0.26% 2018 Personnel Expenditures Section II, Page 10 Original or Final Prev. Amend.Revised Adopted Actual Budget Budget Budget 2017 2018 2018 2019 REVENUES Taxes 12,562,229$ 12,828,034$ 13,109,453$ 13,446,397$ Licenses and Permits 341,543 226,100 340,600 344,100 Intergovernmental 959,782 1,029,926 1,045,685 925,585 Charges for Services 1,716,388 1,615,108 1,584,360 1,569,376 Fines and Forfeitures 94,311 92,445 61,375 65,200 Investment Earnings 126,329 135,000 140,000 175,000 Other Revenue 408,720 420,300 455,300 437,500 Total Operating Revenues 16,209,302 16,346,913 16,736,773 16,963,158 Other Sources Capital Lease Proceeds 80,204 - - - Transfer-In From Capital Projects Fund 226,327 233,117 233,117 240,111 Total Other Sources 306,531 233,117 233,117 240,111 TOTAL REVENUES 16,515,833$ 16,580,030$ 16,969,890$ 17,203,269$ EXPENDITURES General Government 3,356,161$ 3,579,841$ 3,617,993$ 3,847,696$ Community Development 1,505,073 1,392,985 1,384,862 1,492,126 Public Safety 3,416,991 3,697,529 3,740,346 3,889,510 Public Works 4,180,010 4,547,942 4,355,468 4,438,103 Recreation 1,436,483 1,504,825 1,464,614 1,634,493 Total Operating Expenditures 13,894,718 14,723,122 14,563,283 15,301,928 Contingency - 109,066 - 100,000 Other Uses Transfers-Out to Capital Projects Fund 1,120,000 600,000 600,000 120,000 Transfers-Out to Transit 1,390,415 1,167,000 1,200,000 1,200,000 Transfers-Out to Fleet Maintenance 360,000 415,000 550,000 550,000 Total Other Uses 2,870,415 2,182,000 2,350,000 1,870,000 TOTAL EXPENDITURES 16,765,133 17,014,188 16,913,283 17,271,928 NET SOURCE (USE) OF FUNDS (249,300) (434,158) 56,607 (68,659) FUND BALANCES, Beginning of Year 6,063,891 5,814,591 5,814,591 5,871,198 FUND BALANCES, End of Year 5,814,591$ 5,380,433$ 5,871,198$ 5,802,539$ FUND BALANCES: Restricted For: 3% TABOR Emergency Reserve 688,786$ 688,786$ 688,786$ 688,786$ Assigned For: Special Events - 100,000 - - Unassigned: 25% Minimum Reserve Balance 3,911,283 4,076,281 4,078,321 4,262,982 Undesignated, Unreserved 1,214,522 515,367 1,104,091 850,771 TOTAL FUND BALANCES 5,814,591$ 5,380,433$ 5,871,198$ 5,802,539$ Fund Summary MUNICIPAL SERVICES General Fund #10 Section II, Page 11 MUNICIPAL SERVICES General Fund Taxes 79.27% Licenses and Permits 2.03% Intergovernmental 5.46% Charges for Services 9.25% Fines and Forfeitures 0.38%Investment Earnings 1.03%Other Revenue 2.58% 2019 Operating Revenues General Government 25.15% Community Development 9.75% Public Safety 25.42% Public Works 29.00% Recreation 10.68% 2019 Operating Expenditures Section II, Page 12 Original or Final Prev. Amend.Revised Adopted Actual Budget Budget Budget 2017 2018 2018 2019 TAXES General Property Tax 1,739,400$ 1,838,085$ 1,837,820$ 1,876,034$ Specific Ownership Tax 99,498 120,000 105,000 105,000 Sales Tax 8,051,066 8,218,606 8,435,145 8,510,145 Accommodation Tax 1,333,939 1,306,343 1,346,488 1,373,418 Cigarette and Tobacco Taxes - - - 175,000 Utility and Other 154,932 140,000 165,000 150,000 VAA RSF 763,915 775,000 795,000 826,800 Franchise Fees 419,479 430,000 425,000 430,000 TOTAL TAXES 12,562,229$ 12,828,034$ 13,109,453$ 13,446,397$ Revenues MUNICIPAL SERVICES General Fund General Property Tax 13.95% Specific Ownership Tax 0.78% Sales Tax 63.29% Accommodation Tax 10.21% Cigarette and Tobacco Taxes 1.30% Utility and Other 1.12% VAA RSF 6.15% Franchise Fees 3.20% 2019 Taxes Section II, Page 13 Other Personnel Contracted Operating Capital Services Commodities Services Costs Outlay Total EXPENDITURES General Government 2,585,818$ 64,729$ 655,028$ 523,196$ 18,925$ 3,847,696$ Community Development 591,085 53,589 121,533 720,869 5,050 1,492,126 Public Safety 2,901,319 158,553 73,066 720,742 35,830 3,889,510 Public Works 2,228,030 417,784 784,871 979,418 28,000 4,438,103 Recreation and Culture 1,310,181 82,299 43,147 196,716 2,150 1,634,493 TOTAL OPERATING EXPENDITURES 9,616,433$ 776,954$ 1,677,645$ 3,140,941$ 89,955$ 15,301,928$ Expenditures MUNICIPAL SERVICES General Fund Personnel Expenditures 62.84% Commodities 5.08% Contracted Services 10.96% Other Operating Costs 20.53% Capital Outlay 0.59% 2019 Operating Expenditures By Object Class Section II, Page 14 Original or Final Prev. Amend.Revised Adopted Account Actual Budget Budget Budget Number Description 2017 2018 2018 2019 Taxes: 51101 General Property Tax 1,736,538$ 1,836,085$ 1,836,085$ 1,874,034$ 51102 General Property Tax - Delinquencies 22 500 500 500 51103 General Property Tax - Interest 2,840 1,500 1,500 1,500 51104 General Property Tax - Abatements - - (265) - 51201 Specific Ownership Tax 99,498 120,000 105,000 105,000 51301 Sales Tax 8,051,066 8,218,606 8,435,145 8,510,145 51302 Utility Tax 102,279 110,000 105,000 105,000 51303 Accommodation Tax 1,333,939 1,306,343 1,346,488 1,373,418 51304 Penalties and Interest 32,450 25,000 50,000 35,000 51305 Sales Tax Audit Assessments 20,203 5,000 10,000 10,000 51307 VAA Retail Sales Fee 763,915 775,000 795,000 826,800 51308 Cigarette Excise Tax - - - 150,000 51309 Tobacco Add-on Sales Tax - - - 25,000 51402 Franchise Fees 419,479 430,000 425,000 430,000 51000 Total Taxes 12,562,229 12,828,034 13,109,453 13,446,397 Licenses and Permits: 52101 Liquor Licenses 8,086 7,000 12,500 12,500 52102 Business Licenses 85,425 85,000 95,000 95,000 52103 Contractor's Licenses 10,765 10,500 10,500 10,500 52104 Tobacco/Cigarette Licenses - - - 2,500 52201 Building Permits 200,756 115,000 215,000 215,000 52205 Road Cut Permits 11,361 8,000 7,000 8,000 52207 Mobile Vendor Cart Permits 150 600 600 600 52209 School Site In-lieu-of Payment 25,000 - - - 52000 Total Licenses and Permits 341,543 226,100 340,600 344,100 Intergovernmental: Federal Grants: 53106 Click It or Ticket 4,180 5,500 2,225 5,500 53107 Ballistic Vests 1,237 2,000 1,600 2,000 State Grants 53204 LEAF Grant 10,972 18,000 - - 53206 High Visibility Grant 24,524 20,000 25,000 20,000 53207 POST I70 Training Grants 38,608 21,000 40,976 14,350 Local Government/Other Agency 53900 Eagle River Youth Coalition 6,477 8,500 5,000 5,000 Subtotal: Grants 85,998 75,000 74,801 46,850 Revenue Detail MUNICIPAL SERVICES General Fund Section II, Page 15 Original or Final Prev. Amend.Revised Adopted Account Actual Budget Budget Budget Number Description 2017 2018 2018 2019 Revenue Detail MUNICIPAL SERVICES General Fund State/County Shared Revenue: 53301 Conservation Trust 64,771 72,000 72,000 72,000 53302 Motor Vehicle Registration 24,613 22,000 24,800 24,800 53303 Highway User's Tax 193,875 201,963 253,469 181,675 53304 Cigarette Tax 37,696 42,000 35,000 - 53305 County Sales Tax 424,225 483,743 450,000 463,500 53306 Road & Bridge Fund 127,800 132,220 134,615 135,760 53308 State Severance Tax 804 1,000 1,000 1,000 Subtotal: Shared Revenue 873,784 954,926 970,884 878,735 53000 Total Intergovernmental 959,782 1,029,926 1,045,685 925,585 Charges for Services: General Government: 54102 Photocopying Charges - 300$ 100$ 100$ 54103 License Hearing Fees - 100 100 100 54104 Other Fees and Charges 2,576 1,250 2,000 2,000 54105 CC & Paper Filing Fees 2,691 - 2,500 2,500 54201 Plan Check Fees 111,012 95,000 65,000 50,000 54202 Subdivision Review Fees - 1,000 - - 54203 Design Review Fees 14,485 14,295 22,000 22,000 54204 Animal Control Fees 120 500 150 150 54205 Abatement Services 300 - - - 54206 Fire Impact Fee Administration Fees 1,795 750 1,500 1,500 54301 Police Reports 620 600 500 500 54302 Police Extra Duty 23,922 25,000 50,000 25,000 54303 Fingerprinting Fees 5,844 5,000 3,500 - 54304 VIN Inspection Fees 13,540 5,000 750 750 54305 False Alarm Fees/Misc Police Dept Fees 70 500 75 75 54306 National Night Out 3,476 2,000 3,500 2,500 54307 Kids, Cops, Hoops 400 - - - 54399 DUI Reimbursement 16,283 24,250 40,900 35,000 Subtotal: General Govern.197,134 175,545 192,575 142,175 Recreation Facility: 54601 Admission Fees 963,861 915,000 915,000 915,000 54602 Program Fees 87,796 94,580 94,580 94,580 54603 Rentals 49,543 42,500 54,424 42,500 54604 Merchandise Sales 7,660 8,500 8,600 8,500 54606 Rec Center Services 9,531 10,000 11,296 10,000 54607 Fitness Program Revenues 52,534 50,125 58,000 50,125 Other Recreation: 54651 Adult Program Revenues 19,350 24,921 26,000 24,921 54652 Cabin Equipment Rentals 24,254 17,500 31,350 25,000 54653 Athletic Field Rentals 2,270 2,000 1,500 2,000 54655 Youth Program Revenues 170,710 215,625 168,000 215,625 Section II, Page 16 Original or Final Prev. Amend.Revised Adopted Account Actual Budget Budget Budget Number Description 2017 2018 2018 2019 Revenue Detail MUNICIPAL SERVICES General Fund Special Events: 54670 Ticket Sales 80,807 - - - 54671 Revenues from Vendor Sales 6,868 - - - 54676 Sponsorships 22,175 38,000 7,000 20,000 54678 Event Fees 10,600 10,525 5,550 5,450 54679 Special Event Admission Fees 11,295 10,287 10,485 13,500 Subtotal: Recreation 1,519,254 1,439,563 1,391,785 1,427,201 54000 Total Charges for Services 1,716,388 1,615,108 1,584,360 1,569,376 Fines and Forfeitures: 55101 Court Fines - Traffic 63,765$ 51,300 37,700 40,000 55102 Court Fines - Criminal 16,081 21,000 10,200 11,000 55103 Court Fines - Parking 3,775 6,735 2,890 3,000 55105 Court Costs 5,210 7,000 5,860 6,000 55106 Jury Fees - 100 25 100 55107 Bond Forfeitures - 100 200 100 55110 Police Training Surcharge 5,480 6,210 4,500 5,000 55000 Total Fines and Forfeitures 94,311 92,445 61,375 65,200 Investment Earnings: 57101 Interest 126,329 135,000$ 140,000$ 175,000$ 57000 Total Investment Earnings 126,329 135,000 140,000 175,000 Other Revenues: 58101 Recreational Amenity Fees 275,511 325,000 275,000 275,000 58109 Bond Issuance Fees 10,476 10,200 10,200 10,000 58201 Lease of Town-Owned Property 37,258 40,000 60,000 52,500 58999 Miscellaneous Nonclassified Revenues 85,475 45,100 110,100 100,000 58000 Total Other Revenues 408,720 420,300 455,300 437,500 50000 TOTAL REVENUES 16,209,302$ 16,346,913$ 16,736,773$ 16,963,158$ Section II, Page 17 Original or Final Dept./Prev. Amend.Revised Adopted Div.Actual Budget Budget Budget Number Description 2017 2018 2018 2019 General Government: 111 Mayor and Town Council 218,454$ 232,288$ 232,288$ 262,117$ 112 Boards and Commissions 13,228 16,049 16,049 16,049 113 Town Attorney 120,393 132,000 132,000 155,000 115 Town Clerk 106,185 117,913 118,313 120,800 121 Municipal Court 120,667 148,899 148,899 155,008 131 Town Manager 349,501 367,798 363,558 386,895 133 Community Relations 197,403 196,416 196,416 202,582 Subtotal General Government 1,125,831 1,211,363 1,207,523 1,298,451 Human Resources: 132 Human Resources 443,676 486,153 461,613 537,456 Finance and IT: 141 Finance 872,178 944,349 960,219 997,181 143 Information Systems 394,014 436,762 387,291 431,091 149 Nondepartmental 520,462 501,214 601,347 583,517 Subtotal Finance and IT 1,786,654 1,882,325 1,948,857 2,011,789 Total General Government and Finance 3,356,161 3,579,841 3,617,993 3,847,696 Community Development: 212 Planning 267,413 309,940 296,038 293,353 213 Building Inspection 145,487 151,049 150,591 177,039 215 Town Produced Events 609,604 268,342 274,579 210,019 216 Special Event Funding 309,449 366,620 366,620 500,000 217 Community Grants 173,120 200,034 200,034 201,000 218 Salute to the USA - 97,000 97,000 110,715 Total Community Development 1,505,073 1,392,985 1,384,862 1,492,126 Police Department: 311 Administration 686,727 778,392 795,442 795,463 312 Patrol 2,449,547 2,633,370 2,648,142 2,778,057 313 Investigations 280,717 285,767 296,762 315,990 Total Police Department 3,416,991 3,697,529 3,740,346 3,889,510 Department Expenditure Summaries MUNICIPAL SERVICES General Fund Section II, Page 18 Original or Final Dept./Prev. Amend.Revised Adopted Div.Actual Budget Budget Budget Number Description 2017 2018 2018 2019 Department Expenditure Summaries MUNICIPAL SERVICES General Fund Public Works Engineering: 412 Engineering 239,144 283,636 249,063 275,025 418 Buildings and Facilities 1,121,669 1,260,946 1,212,135 1,169,504 Roads and Bridges: 413 Roads and Bridges 2,204,890 2,331,843 2,246,203 2,321,714 415 Parks and Grounds 614,307 671,517 648,067 671,860 Total Public Works Department 4,180,010 4,547,942 4,355,468 4,438,103 Recreation Department: 514 Administration 226,021 237,063 227,560 244,297 515 Adult Programs 52,019 62,834 61,393 62,701 516 Aquatics 573,607 527,783 509,851 629,604 518 Fitness 148,095 144,227 140,387 136,807 519 Guest Services 307,098 325,124 319,070 336,180 521 Youth Programs 129,643 150,475 149,034 161,580 523 Communtiy Swim Program - 57,319 57,319 63,324 Total Recreation 1,436,483 1,504,825 1,464,614 1,634,493 TOTAL OPERATING EXPENDITURES 13,894,718$ 14,723,122$ 14,563,283$ 15,301,928$ Section II, Page 19 Dept./Purchased &Other Div.Personnel Contracted Operating Capital Number Description Services Commodities Services Costs Outlay Total General Government: 111 Town Council 186,306$ -$ 23,200$ 51,111$ 1,500$ 262,117$ 112 Boards and Commissions 13,299 500 - 2,250 - 16,049 113 Town Attorney - - 155,000 - - 155,000 115 Town Clerk 103,346 2,910 6,599 6,945 1,000 120,800 121 Municipal Court 124,977 200 25,506 2,175 2,150 155,008 131 Town Manager 371,453 75 1,220 11,647 2,500 386,895 133 Community Relations 105,141 125 32,534 62,982 1,800 202,582 Subtotal General Govt 904,522 3,810 244,059 137,110 8,950 1,298,451 Human Resources Department: 132 Human Resources 464,273 15,005 21,617 33,986 2,575 537,456 Finance and IT: 141 Finance Department 847,428 5,636 119,726 23,091 1,300 997,181 143 Information Systems 286,803 2,050 127,786 8,352 6,100 431,091 149 Nondepartmental 82,792 38,228 141,840 320,657 - 583,517 Subtotal Finance and IT 1,217,023 45,914 389,352 352,100 7,400 2,011,789 Total General Govt and Finance 2,585,818 64,729 655,028 523,196 18,925 3,847,696 Community Development: 212 Planning 248,988 810 32,368 9,037 2,150 293,353 213 Building Inspection 169,050 429 2,500 3,910 1,150 177,039 215 Town Produced Events 173,047 850 27,750 6,622 1,750 210,019 216 Special Event Funding - - - 500,000 - 500,000 218 Community Grants - - - 201,000 - 201,000 218 Salute to the USA - 51,500 58,915 300 - 110,715 Total Community Development 591,085 53,589 121,533 720,869 5,050 1,492,126 Public Safety: Police Department: 311 Administration 639,630 23,406 39,913 88,184 4,330 795,463 312 Patrol 1,970,092 126,316 31,353 618,796 31,500 2,778,057 313 Investigations 291,597 8,831 1,800 13,762 - 315,990 Total Public Safety 2,901,319 158,553 73,066 720,742 35,830 3,889,510 Departmental Operating Costs MUNICIPAL SERVICES General Fund Section II, Page 20 Dept./Purchased &Other Div.Personnel Contracted Operating Capital Number Description Services Commodities Services Costs Outlay Total Departmental Operating Costs MUNICIPAL SERVICES General Fund Public Works Engineering: 412 Engineering 247,590 5,839 13,200 7,396 1,000 275,025 413 Buildings & Facilities 480,724 97,992 148,843 439,445 2,500 1,169,504 Roads and Bridges: 415 Roads and Bridges 1,499,716 154,205 330,838 332,805 4,150 2,321,714 418 Parks - 159,748 291,990 199,772 20,350 671,860 Total Public Works 2,228,030 417,784 784,871 979,418 28,000 4,438,103 Recreation: 514 Administration 185,746 6,596 13,230 38,725 - 244,297 515 Adult Programs 56,982 5,719 - - - 62,701 516 Aquatics 537,265 35,094 28,933 27,162 1,150 629,604 518 Fitness 69,947 8,100 - 58,760 - 136,807 519 Guest Services 290,626 12,050 - 32,504 1,000 336,180 521 Youth Programs 134,901 13,170 984 12,525 - 161,580 523 Community Swim Program 34,714 1,570 - 27,040 - 63,324 Total Recreation 1,310,181 82,299 43,147 196,716 2,150 1,634,493 TOTAL OPERATING EXPENDITURES 9,616,433$ 776,954$ 1,677,645$ 3,140,941$ 89,955$ 15,301,928$ Section II, Page 21