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TC Packet 12-10-2019 _______________________________________________________________________________ MEETING AGENDAS AND PACKETS ARE FOUND AT: WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, AVON RECREATION CENTER, AND AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, C ALL TOWN C LERK BRENDA TORRES AT 970-748-4001 OR EMAIL BTORRES@AVON.ORG WITH ANY SPECIAL REQUESTS. 1 AVON TOWN COUNCIL MEETING AGENDA TUESDAY, DECEMBER 10, 2019 AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO AVON TOWN COUNCIL PUBLIC MEETING BEGINS AT 5:00 PM 1. CALL TO ORDER AND ROLL CALL 5:00 2. APPROVAL OF AGENDA 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS 4. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA [AN INITIAL THREE (3) MINUTE LIMIT ALLOWED TO EACH PERSON WISHING TO SPEAK. SPEAKER MAY REQUEST MORE TIME AT THE END OF THE THREE (3) MINUTES, WHICH MAY BE APPROVED BY A MAJORITY OF THE COUNCIL.] 5:05 5. BUSINESS ITEMS 5.1. ONE BOOK ONE VALLEY (OBOV) KICKOFF 2020! (Mayor Sarah Smith Hymes) (5 minutes) 5:10 5.2. PUBLIC HEARING for the Adoption of the 2019 Final Revised Budgets, 2020 Operating Budget, 2020 Capital Projects Fund Budget & Long-Range Capital Program and Tax Levies (Finance Director Scott Wright) (25 minutes) 5:15 o Resolution 19-20, Amending the 2019 Town of Avon Operating Funds Budgets o Resolution 19-21, Amending the 2019 Town of Avon Capital Projects Fund Budget o Resolution 19-22, Adopting the 2020 Town of Avon Operating Funds Budget o Resolution 19-23, Adopting the Town of Avon Long-Range Capital Program and Simultaneously Adopt the 2019 Capital Projects Fund Budget o Resolution 19-24, Levying General Property Taxes for the Avon General Improvement District No. 1 for the 2020 Budget Year o Resolution 19-25, Levying General Property Taxes for the Town of Avon for the 2020 Budget Year 5.3. Approval of 2019 Audit Engagement Letter with McMahan and Associates, L.L.C., Certified Public Accountants (Finance Director Scott Wright) (5 minutes) 5:40 5.4. Approval of Minutes from November 19, 2019 Regular Council Meeting (Town Clerk Brenda Torres) (5 minutes) 5:45 RECESS TO ALLOW AVON TOWN COUNCIL TO CONVENE AS THE AVON URBAN RENEWAL AUTHORITY BOARD 5:50 RECONVENE AVON TOWN COUNCIL MEETING 6:00 6. WRITTEN REPORTS 6.1. Opportunity Zone Prospectus Update (Planning Director Matt Pielsticker) _______________________________________________________________________________ MEETING AGENDAS AND PACKETS ARE FOUND AT: WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, AVON RECREATION CENTER, AND AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, C ALL TOWN C LERK BRENDA TORRES AT 970-748-4001 OR EMAIL BTORRES@AVON.ORG WITH ANY SPECIAL REQUESTS. 2 6.2. December 3rd Planning and Zoning Commission Meeting Abstract (Planning Director Matt Pielsticker) 6.3. Upper Eagle Regional Water Authority November 21, 2019 Meeting Summary (Mayor Smith Hymes) 6.4. Mobility Grants Update (Mobility Director Eva Wilson) 6.5. Monthly Financial Report (Senior Accountant Joel McCracken) 7. MAYOR & COUNCIL COMMENTS & MEETING UPDATES (1 0 MINUTES) 6:00 8. EXECUTIVE SESSION: 8.1. For the purpose of receiving legal advice from the Town Attorney and for the purpose of determining positions relative to negotiations pursuant to CRS Sec. 24-6-402(4)(b) and (e) concerning a potential Community Housing project on Tract Y, Avon, Colorado. (Town Attorney Paul Wisor) 8.2. For the purpose of receiving legal advice from the Town Attorney pursuant to CRS Sec. 24- 6-402(4)(b) concerning debt refinancing by Traer Creek Metropolitan District. (Town Attorney Paul Wisor) (90 minutes) 6:10 9. RECONVENE FOR P OTENTIAL ACTIONS ON TRACT Y COMMUNITY HOUSING PROJECT (Town Attorney Paul Wisor) (10 minutes) 7:40 10. ADJOURN 7:50 *Public Comments: Council agendas shall include a general item labeled “Public Comment” near the beginning of all Council meetings. Members of the public who wish to provide comments to Council greater than three minutes are encouraged to schedule time in advance on the agenda and to provide written comments and other appropriate materials to the Council in advance of the Council meeting. The Mayor shall permit public comments for any action item or work session item, and may permit public comment for any other agenda item, and may limit such public comment to three minutes per individual, which limitation may be waived or increased by a majority of the quorum present. Article VI. Public Comments, Avon Town Council Simplified Rules of Order, Adopted by Resolution No. 17-05. _______________________________________________________________________________ MEETING AGENDAS AND PACKETS ARE FOUND AT: WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, AVON RECREATION CENTER, AND AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, C ALL TOWN C LERK BRENDA TORRES AT 970-748-4001 OR EMAIL BTORRES@AVON.ORG WITH ANY SPECIAL REQUESTS. 1 AVON URBAN RENEWAL AUTHORITY MEETING AGENDA TUESDAY, DECEMBER 10, 2019 AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO AVON URBAN RENEWAL AUTHORITY MEETING BEGINS AT 5:00 PM OR AS SOON THEREAFTER AS POSSIBLE 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF AGENDA 3. PUBLIC COMMENT 4. BUSINESS ITEMS 4.1. PUBLIC HEARING: RESOLUTION 19-02, AMENDING THE 2019 AVON URBAN RENEWAL AUTHORITY BUDGET (TREASURER SCOTT WRIGHT) 4.2. PUBLIC HEARING: RESOLUTION 19-03, ADOPTING THE 2020 AVON URBAN RENEWAL AUTHORITY BUDGET (TREASURER SCOTT WRIGHT) 4.3. APPROVAL OF FEBRUARY 12, 2019 URA MEETING MINUTES (AUTHORITY CLERK BRENDA TORRES) 5. ADJOURN *Public Comments: Council agendas shall include a general item labeled “Public Comment” near the beginning of all Council meetings. Members of the public who wish to provide comments to Council greater than three minutes are encouraged to schedule time in advance on the agenda and to provide written comments and other appropriate materials to the Council in advance of the Council meeting. The Mayor shall permit public comments for any action item or work session item, and may permit public comment for any other agenda item, and may limit such public comment to three minutes per individual, which limitation may be waived or increased by a majority of the quorum present. Article VI. Public Comments, Avon Town Council Simplified Rules of Order, Adopted by Resolution No. 17-05. AVON URBAN RENEWAL AUTHORITY COMMISSIONERS REPORT To: Chairperson Sarah Smith Hymes and URA Commissioners From: Scott Wright, Authority Treasurer Date: December 10, 2019 Re: 2020 Proposed and 2019 Revised Budgets Action Before the Board Adoption of the 2020 Proposed and 2019 Final Revised Avon Urban Renewal Authority annual budgets. Proposed Motion “I move to approve Resolutions 19-02 and 19-03 to adopt the 2020 annual budget and amend the 2019 annual budget for the Avon Urban Renewal Authority.” Summary Attached are the final proposed and revised budget resolutions for the Avon Urban Renewal Authority. The Authority is considered a separate legal entity from the Town authorized by the Colorado Urban Renewal Act. The Authority’s budget summary is attached as an exhibit to this memorandum and is also included for informational purposes in the Town’s budget summary as a component unit of the Town. Public Hearing. Public hearings have been previously been held on November 12 and November 19, 2019. Recommendation Staff recommends that the Board adopt the resolutions as presented. Exhibits and Attachments: Attachment A - Resolution No. 19-02 Attachment B - Resolution No. 19-03 Attachment C - Avon Urban Renewal Authority Fund Summary Resolution No. 19-02 December 10, 2019 Page 1 of 2 AVON URBAN RENEWAL AUTHORITY TOWN OF AVON, COLORADO RESOLUTION NO. 19-02 SERIES OF 2019 A RESOLUTION AMENDING THE 2019 AVON URBAN RENEWAL AUTHORITY BUDGET WHEREAS, the Board of Commissioners of the Avon Urban Renewal Authority has previously adopted the 2019 budget; and WHEREAS, the Board of Commissioners of the Avon Urban Renewal Authority reviewed the revised estimated revenues and expenditures for all funds for 2019; and WHEREAS, the Board of Commissioners of the Avon Urban Renewal Authority finds it necessary to amend the 2019 budget to more accurately reflect the revenues and expenditures for 2019; and WHEREAS, upon due and proper notice, published or posted in accordance with the law, the proposed budget amendment to the 2019 budget was open for inspection by the public at a designated place, a public hearing was held on December 10, 2019 and interested taxpayers were given the opportunity to file or register any objections to the proposed budget amendment; and WHEREAS, whatever increases may have been made in the expenditures, like increases were added to the revenues so that the budget remains in balance as required by law. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE AVON URBAN RENEWAL AUTHORITY: Section 1. That estimated revenues and expenditures for the Avon Urban Renewal Authority are revised as follows for 2019: Original or Previously Amended 2019 Budget Current Proposed Amended 2019 Budget Avon Urban Renewal Authority Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses Ending Fund Balance $ 497,102 1,435,028 1,295,150 $ 636,980 $ 473,959 1,429,171 1,267,958 $ 635,172 ATTACHMENT A Resolution No. 19-02 December 10, 2019 Page 2 of 2 Section 2. That the budget, as submitted and amended hereby is approved and adopted as the budget of the Avon Urban Renewal Authority for the year stated above. Section 3. That the budget hereby approved and adopted shall be signed by the Chairman and made part of the public record of the Authority. ADOPTED this 10th day of December, 2019. AVON URBAN RENEWAL AUTHORITY ______________________________ Sarah Smith Hymes, Chairman ATTEST: _____________________________ Scott Wright, Treasurer CERTIFIED: _____________________________ Brenda Torres, Authority Clerk ATTACHMENT A Resolution No. 19-03 December 10, 2019 Page 1 of 2 AVON URBAN RENEWAL AUTHORITY TOWN OF AVON, COLORADO RESOLUTION NO. 19-03 SERIES OF 2019 A RESOLUTION SUMMARIZING EXPENDITURES AND REVENUES AND ADOPTING A BUDGET FOR THE AVON URBAN RENEWAL AUTHORITY FOR THE CALENDAR YEAR BEGINNING ON THE FIRST DAY OF JANUARY, 2020, AND ENDING ON THE LAST DAY OF DECEMBER, 2020. WHEREAS, the Board of Commissioners of the Avon Urban Renewal Authority has directed the Authority’s Executive Director to prepare and submit a proposed budget for its consideration; and WHEREAS, Scott Wright, Treasurer, has submitted a proposed budget and held a budget retreat with said governing body on October 30, 2019; and WHEREAS, upon due and proper notice, published or posted in accordance with the law, said proposed budget was open for inspection by the public at a designated place, public hearings were held on November 12 and November 19, 2019 and interested taxpayers were given the opportunity to file or register any objections to said proposed budget; and WHEREAS, whatever increases may have been made in the expenditures, like increases were added to the revenues so that the budget remains in balance, as required by law. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE AVON URBAN RENEWAL AUTHORITY: Section 1. That estimated revenues and expenditures for the Avon Urban Renewal Authority are as follows for 2020: 2020 Proposed Budget Avon Urban Renewal Authority Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 635,172 1,626,550 1,598,825 Ending Fund Balance $ 662,897 ATTACHMENT B Resolution No. 19-03 December 10, 2019 Page 2 of 2 Section 2. That the budget, as submitted, hereby is approved and adopted as the budget of the Avon Urban Renewal Authority for the year stated above. Section 3. That the budget hereby approved and adopted shall be signed by the Chairman and made part of the public record of the Authority. ADOPTED this 10th day of December, 2019. AVON URBAN RENEWAL AUTHORITY ______________________________ Sarah Smith Hymes, Chairman ATTEST: _____________________________ Scott Wright, Treasurer CERTIFIED: _____________________________ Brenda Torres, Authority Clerk ATTACHMENT B Original or Final Prev. Amend.Revised Proposed Actual Budget Budget Budget 2018 2019 2019 2020 Personnel Services -$ -$ -$ -$ Commodities - - - - Contract Services 3,000 3,450 1,000 1,000 Other Operating Costs 41,567 42,646 42,404 48,231 Debt Service 850,136 849,054 849,554 849,594 Capital Outlay - - - - Total 894,703$ 895,150$ 892,958$ 898,825$ EXPENDITURES BY CATEGORY The Urban Renewal Fund's main source of funding is property tax increment revenues for Urban Renewal Plan areas within the Town. The Town Center West Urban Renewal Plan Area was created in 2007, and is the only urban renewal plan area within Avon. The plan area has a 25-year life for tax increment financing. Property tax increment revenues for 2020 are based upon a preliminary increment of $24,539,910 and an overlapping mill rate of 63.380, resulting in a 13.7% increase in TIF revenues from the previous year. BUDGET SUMMARY: AVON URBAN RENEWAL FUND ADMINISTRATION OF THE FUND The Avon Urban Renewal Fund is administered by the AURA Treasurer / Town of Avon Finance Director. FINANCIAL SUMMARY ATTACHMENT C Page 1 Fund Summary Original or Final Prev. Amend.Revised Proposed Actual Budget Budget Budget 2018 2019 2019 2020 REVENUES Taxes 1,417,775$ 1,419,328$ 1,413,471$ 1,607,703$ Investment Earnings 13,436 15,700 15,700 18,847 Total Operating Revenues 1,431,211 1,435,028 1,429,171 1,626,550 TOTAL REVENUES 1,431,211 1,435,028 1,429,171 1,626,550 EXPENDITURES Current: General Government 3,000 3,450 1,000 1,000 Treasurer Fees 41,567 42,646 42,404 48,231 Debt Service: Principal 576,079 595,998 595,998 616,063 Interest 271,907 252,556 252,556 232,531 Fiscal Charges 2,150 500 1,000 1,000 Total Operating Expenditures 894,703 895,150 892,958 898,825 Other Uses Transfers Out - Capital Projects Fund 1,420,000 400,000 375,000 700,000 TOTAL EXPENDITURES 2,314,703 1,295,150 1,267,958 1,598,825 NET SOURCE (USE) OF FUNDS (883,492) 139,878 161,213 27,725 FUND BALANCES, Beginning of Year 1,357,451 497,102 473,959 635,172 FUND BALANCES, End of Year 473,959$ 636,980$ 635,172$ 662,897$ FUND BALANCES: Restricted For: Debt Service 628,240$ 628,240$ 628,240$ 628,240$ Urban Renewal (154,281) 8,740 6,932 34,657 TOTAL FUND BALANCES 473,959$ 636,980$ 635,172$ 662,897$ AVON URBAN RENEWAL AUTHORITY #22 Summary ATTACHMENT C Page 2 Debt Service Summary Original or Final Prev. Amend.Revised Adopted Account Actual Budget Budget Budget Number Description 2018 2019 2019 2020 DEBT SERVICE 932 Series 2013, Tax Increment Revenue Bonds 65101 Principal 410,000$ 425,000$ 425,000$ 440,000$ 65102 Interest 189,904 175,472 175,472 160,512 65103 Fiscal Agent Fees - - 500 500 65108 Arbitrage Compliance Fees 1,750 - - - 933 Series 2017, Tax Increment Revenue Bonds 65101 Principal 166,079 170,998 170,998 176,063 65102 Interest 82,003 77,084 77,084 72,019 65103 Fiscal Agent Fees 400 500 500 500 65108 Arbitrage Compliance Fees - - - - 60000 TOTAL DEBT SERVICE 850,136$ 849,054$ 849,554$ 849,594$ AVON URBAN RENEWAL AUTHORITY Debt Service ATTACHMENT C Page 3 CIP Projects Inventory Original or Final Prev. Amend.Revised Adopted Account Actual Budget Budget Budget Number Description 2018 2019 2019 2020 CAPITAL IMPROVEMENT PROJECTS Facilities Cultural and Recreational Facilities 15001 Hahnewald Barn Study -$ -$ -$ -$ Roads and Streets: Street Improvements: 32018 Nottingham Road Streetlights - - - - Utilities 41008 Heat Recovery Study - - - - Total Capital Improvement Projects -$ -$ -$ -$ AVON URBAN RENEWAL AUTHORITY Capital Projects ATTACHMENT C Page 4 TOWN OF AVON, COLORADO MINUTES FOR THE URBAN RENEWAL AUTHORITY MEETING FOR FEBRUARY 12, 2019 AVON TOWN HALL, 100 MIKAELA WAY 1. CALL TO ORDER & ROLL CALL Chairwoman Smith Hymes called the meeting to order at 5:05 p.m. A roll call was taken, and Authority members present were Jennie Fancher, Scott Prince, Jake Wolf, Amy Phillips, Chico Thuon and Tamra Underwood. Also present were Treasurer Scott Wright, Town Attorney Eric Heil, Police Chief Greg Daly, Planning Director Matt Pielsticker, Town Engineer Justin Hildreth, Deputy Town Manager Preston Neill and Authority Clerk Brenda Torres. 2. A PPROVAL OF AGENDA Start time: 00:03:04 There were no changes to the agenda. 3. PUBLIC C OMMENT – C OMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA No comments were made. 4. ACTION ITEMS Start time: 00:03:32 4.1. RESOLUTION 19-01, DESIGNATING LOCATIONS FOR POSTING THE NOTICES OF PUBLIC MEETINGS Authority member Prince corrected the address in the Resolution. Authority member Underwood moved to approve Resolution 19-01 Designating Locations for Posting the Notices of Public Meetings as amended. Vice Chairwoman Phillips seconded the motion and the motion passed unanimously by Authority members present. 4.2. APPROVAL OF DECEMBER 11, 2018 URA MEETING MINUTES Start time: 00:04:21 Authority member Prince moved to approve the minutes from December 11, 2018 URA meeting. Authority member Wolf seconded the motion and the motion passed on a vote 5 to 2. Authority members Underwood and Chico Thuon abstained from the vote as they were not present. 5. ADJOURNMENT There being no further business to come before the Authority, Authority member Underwood moved to adjourn the meeting. Vice Chairwoman Phillips seconded the motion and it passed unanimously. The time was 5:07 p.m. TOWN OF AVON, COLORADO MINUTES FOR THE URBAN RENEWAL AUTHORITY MEETING FOR FEBRUARY 12, 2019 AVON TOWN HALL, 100 MIKAELA WAY These minutes are only a summary of the proceedings of the meeting. They are not intended to be comprehensive or to include each statement, person speaking or to portray with complete accuracy. The most accurate records of the meeting are the audio of the meeting, which is housed in the Town Clerk' s office, and the video of the meeting, which is available at www.highfivemedia.org. RESPECTFULLY SUBMITTED: ______________________________ Brenda Torres, Authority Clerk APPROVED: Sarah Smith Hymes ___________________________________ Amy Phillips Jake Wolf Chico Thuon Jennie Fancher Scott Prince Tamra Underwood 5.1 One Book One Valley Kickoff 2020! Materials to be provided at the Council Meeting TOWN COUNCIL REPORT To: Honorable Mayor Sarah Smith Hymes and Avon Town Council From: Scott Wright, Asst. Town Manager / Finance Director Date: December 10, 2019 Re: Budget Resolutions Action Before Council Adoption of the final revised 2019 operating funds and capital projects fund budgets, adoption of the proposed 2020 operating funds and capital projects fund and long-range capital improvements program, and property tax levies for general operations and for the Avon General Improvement District No.1. Proposed Motion “I move to approve Resolutions 19-20 through 19-25 as listed on the Town Council meeting agenda for December 10, 2019. Adopting the final revised 2019 operating funds and capital projects fund budgets, adopting the proposed 2020 operating funds and capital projects fund and long-range capital improvements program, and levying property taxes for general operations and for the Avon General Improvement District No.1." Summary 2019 Final Revised Budgets Resolutions No. 19-20 and 19-21 presenting the Town’s final revised operating budgets and capital project fund budgets for 2019 are hereby submitted for adoption by the Avon Town Council. There have been no changes since the October 30 Council budget retreat. 2020 Proposed Budgets Resolutions No. 19-22 and 19-23 presenting the Town’s proposed operating budgets and capital project fund budgets and long-range capital improvements program for 2020 are hereby submitted for adoption by the Avon Town Council. The Town Manager and staff presented the proposed budgets at a Council budget retreat held on October 30. The following changes have been made to the operating budgets subsequent to the retreat: Updates and Changes • Decreased projected sales tax revenue increase from 2.6% down to 1.6%; • Increased operating reserve from 25% to 27% of budgeted xxpenditures; • Added matching Funds for two electric buses ($400,000 match for potential $1.6M grant); • Allocated 2019 “Surplus Revenues” for the following budget items: • $450,000 transfer to Capital Fund • $250,000 transfer to Housing Fund • $220,827 one-time equipment purchases for Police and Public Works • Moved $10,000 in Bond Issuance Fees to Affordable Housing Fund from General Fund 2019 Property Tax Mill Levies Resolutions No. 19-24 and 19-25 levying property taxes for Town of Avon general operating and the Avon General Improvement District No. 1 are hereby submitted for adoption. The property tax mill rates will be levied as follows: • General operating purposes - 8.956 mills, no change from the previous year; • Avon General Improvement District No. 1 – 15.186 mills, an increase of 1.181 mills from the previous year due to a reduction in assessed values within the District of $231,040. According to State Statute, because the Town levies a property tax, the budget must be adopted by December 15, and filed with the Division of Local Governments no later than January 31. This budget meets this and all other legal requirements for submission. Notice from Eagle County Assessor Notice was received from the Eagle County Assessor's Office that there will be a re- certification of the Town's 2019 assessed values. The re-certification figures will not be available until after the December 10 packet materials have been released. It is not believed that the changes to property tax revenues will be material. If necessary, revised resolutions for the property tax levies will be presented to Council at the December 10 Council meeting. Public Hearings. As required by Town Charter, public hearings have previously been held regarding the proposed 2020 budget on November 12 and November 19, 2019. On December 10, 2019 a public hearing will be held for members of the public to comment on the final supplemental amendment to the 2019 budget. Recommendation: Staff recommends that Council adopt the resolutions discussed above as presented. Exhibits and Attachments: Attachment A - Resolution No. 19-20 Attachment B - Resolution No. 19-21 Attachment C - Resolution No. 19-22 Attachment D - Resolution No. 19-23 Attachment E - Resolution No. 19-24 Attachment F - Resolution No. 19-25 Attachment G - Financial Overview, Total All Funds Resolution No. 19-20 December 10, 2019 Page 1 of 3 TOWN OF AVON, COLORADO RESOLUTION NO. 19-20 A RESOLUTION TO AMEND THE 2019 TOWN OF AVON OPERATING BUDGET A RESOLUTION SUMMARIZING EXPENDITURES AND REVENUES BY FUND AND AMENDING THE 2019 OPERATING BUDGETS FOR THE TOWN OF AVON, COLORADO, FOR THE CALENDAR YEAR BEGINNING ON THE FIRST DAY OF JANUARY, 2019 AND ENDING ON THE LAST DAY OF DECEMBER, 2019 WHEREAS, the Town Council of the Town of Avon has previously adopted the 2019 budget; and WHEREAS, the Town Council reviewed the revised estimated revenues and expenditures for all operating funds for 2019; and WHEREAS, the Town Council finds it necessary to amend the 2019 budget to more accurately reflect the revenues and expenditures for 2019; and WHEREAS, upon due and proper notice, published or posted in accordance with the law, the proposed supplemental amendment to the 2019 budget was open for inspection by the public at a designated place, a public hearing was held on December 10, 2019 and interested taxpayers were given the opportunity to file or register any objections to the proposed budget amendment; and WHEREAS, whatever increases may have been made in the expenditures, like increases were added to the revenues so that the budget remains in balance as required by law. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Section 1. That estimated revenues and expenditures for the following funds are revised as follows for 2019: Original or Previously Amended 2019 Budget Current Proposed Amended 2019 Budget General Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 6,304,042 17,301,088 17,285,744 $ 6,304,042 18,537,651 17,092,515 Ending Fund Balance $ 6,319,386 $ 7,749,178 ATTACHMENT A Resolution No. 19-20 December 10, 2019 Page 2 of 3 Original or Previously Amended 2019 Budget Current Proposed Amended 2019 Budget Community Enhancement Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 80,000 80,000 80,000 $ 83,009 80,000 0 Ending Fund Balance $ 80,000 $ 163,009 Water Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 99,200 180,000 274,991 $ 184,902 180,000 114,991 Ending Fund Balance $ 4,209 $ 249,911 Affordable Housing Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 593,027 38,742 10,000 $ 716,549 38,742 60,000 Ending Fund Balance $ 621,769 $ 695,291 Exterior Energy Offset Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 37,768 5,000 0 $ 83,552 5,000 12,000 Ending Fund Balance $ 42,768 $ 76,552 Disposable Paper Bag Fee Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 18,000 18,000 5,000 $ 21,227 70,000 5,000 Ending Fund Balance $ 31,000 $ 86,227 Debt Service Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 535,590 1,019,207 1,019,207 $ 534,816 1,020,657 1,020,657 Ending Fund Balance $ 535,590 $ 534,816 ATTACHMENT A Resolution No. 19-20 December 10, 2019 Page 3 of 3 Mobility Enterprise Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses Original or Previously Amended 2019 Budget $ 590,306 2,712,043 2,916,023 Current Proposed Amended 2019 Budget $ 620,288 1,861,983 1,863,366 Ending Fund Balance $ 386,326 $ 618,905 Fleet Maintenance Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 55,808 1,764,791 1,801,273 $ 32,334 1,764,791 1,773,462 Ending Fund Balance $ 19,326 $ 23,663 Equipment Replacement Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 3,332,770 746,437 843,822 $ 3,352,436 746,437 884,377 Ending Fund Balance $ 3,235,385 $ 3,214,496 Section 2. That the budget, as submitted, amended, and hereinabove summarized by fund, hereby is approved and adopted as the budget of the Town of Avon for the year stated above. Section 3. That the budget hereby approved and adopted shall be signed by the Mayor and made part of the public record of the Town. ADOPTED this 10th day of December, 2019. AVON TOWN COUNCIL By:______________________________ Attest:________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk ATTACHMENT A Res. No. 19-21 December 10, 2019 Page 1 of 2 TOWN OF AVON, COLORADO RESOLUTION NO. 19-21 SERIES OF 2019 A RESOLUTION TO AMEND THE 2019 TOWN OF AVON CAPITAL PROJECTS FUND BUDGET A RESOLUTION SUMMARIZING EXPENDITURES AND REVENUES AND AMENDING THE 2019 CAPITAL PROJECTS FUND BUDGET FOR THE TOWN OF AVON, COLORADO, FOR THE CALENDAR YEAR BEGINNING ON THE FIRST DAY OF JANUARY 2019 AND ENDING ON THE LAST DAY OF DECEMBER 2019 WHEREAS, the Town Council of the Town of Avon has previously adopted the 2019 Capital Projects Fund budget; and WHEREAS, the Town Council reviewed the revised estimated revenues and expenditures for 2019; and WHEREAS, the Town Council finds it necessary to amend the 2019 Capital Projects Fund budget to more accurately reflect the revenues and expenditures for 2019; and WHEREAS, upon due and proper notice, published or posted in accordance with the law, the proposed supplemental amendment to the 2019 budget was open for inspection by the public at a designated place, a public hearing was held on December 10, 2019 and interested taxpayers were given the opportunity to file or register any objections to the proposed budget amendment; and WHEREAS, whatever increases may have been made in the expenditures, like increases were added to the revenues so that the budget remains in balance as required by law. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Section 1. That estimated revenues and expenditures for the Capital Projects Fund are revised as follows for 2019: ATTACHMENT B Res. No. 19-21 December 10, 2019 Page 2 of 2 Original or Previously Amended 2019 Budget Current Proposed Amended 2019 Budget Capital Projects Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 7,940,477 3,498,750 6,700,115 $ 7,940,477 3,370,000 6,420,340 Ending Fund Balance $ 4,739,112 $ 4,890,137 Section 2. That the Capital Projects Fund budget, as submitted, amended, and hereinabove summarized by fund, hereby is approved and adopted as the capital program budget of the Town of Avon for the year stated above. Section 3. That the Capital Projects Fund budget as hereby approved and adopted shall be signed by the Mayor and made part of the public record of the Town. ADOPTED this 10th day of December 2019. AVON TOWN COUNCIL By:______________________________ Attest:________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk ATTACHMENT B Res. No. 19-22 December 10, 2019 Page 1 of 2 TOWN OF AVON, COLORADO RESOLUTION NO. 19-22 SERIES OF 2019 A RESOLUTION TO ADOPT THE 2020 TOWN OF AVON BUDGET A RESOLUTION SUMMARIZING EXPENDITURES AND REVENUES FOR EACH FUND AND ADOPTING A BUDGET FOR THE TOWN OF AVON, COLORADO, FOR THE CALENDAR YEAR BEGINNING ON THE FIRST DAY OF JANUARY, 2020 AND ENDING ON THE LAST DAY OF DECEMBER, 2020 WHEREAS, the Town Council of the Town of Avon has appointed the town Manager to prepare and submit a proposed budget to said governing body for its consideration; and WHEREAS, upon due and proper notice, published and posted in accordance with the law, said proposed budget was open for inspection by the public at a designated place. Public hearings were held on November 12 and November 19, 2019, and interested taxpayers were given the opportunity to file or register any comment to said proposed budget; and WHEREAS, whatever increases may have been made in the expenditures, like increases were added to the revenues so that the budget remains in balance, as required by law. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Section 1. That estimated revenues and expenditures for the Operating Funds of the Town of Avon are presented as follows for 2020: 2020 Proposed Budget General Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 7,749,178 18,470,951 19,475,771 Ending Fund Balance $ 6,744,358 Community Enhancement Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 163,009 80,000 0 Ending Fund Balance $ 243,009 ATTACHMENT C Res. No. 19-22 December 10, 2019 Page 2 of 2 Water Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses 2020 Proposed Budget $ 249,911 360,000 126,488 Ending Fund Balance $ 483,423 Affordable Housing Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 695,291 314,478 10,000 Ending Fund Balance $ 999,769 Exterior Energy Offset Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 76,552 5,000 0 Ending Fund Balance $ 81,552 Disposable Paper Bag Fee Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 86,227 45,000 30,000 Ending Fund Balance $ 101,227 Debt Service Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 534,816 1,022,763 1,022,763 Ending Fund Balance $ 534,816 Mobility Enterprise Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 618,905 3,557,207 3,981,766 Ending Fund Balance $ 194,346 ATTACHMENT C Res. No. 19-22 December 10, 2019 Page 3 of 2 2020 Proposed Budget Fleet Maintenance Enterprise Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 23,663 1,922,495 1,905,281 Ending Fund Balance $ 40,877 Equipment Replacement Internal Service Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 3,214,496 746,437 944,191 Ending Fund Balance $ 3,016,742 Section 2. That the budget, as submitted, amended, and hereinabove summarized by fund, hereby is approved and adopted as the budget of the Town of Avon for the year stated above. Section 3. That the budget hereby approved and adopted shall be signed by the Mayo r and made part of the public record of the Town. ADOPTED this 10th day of December 2019. AVON TOWN COUNCIL By:______________________________ Attest:________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk ATTACHMENT C Res. No. 19-23 December 10, 2019 Page 1 of 2 TOWN OF AVON, COLORADO RESOLUTION NO. 19-23 SERIES OF 2019 A RESOLUTION TO ACCEPT THE PROPOSED TOWN OF AVON LONG-RANGE CAPITAL PROGRAM AND SIMULTANEOUSLY ADOPT THE YEAR 2020 CAPITAL PROJECTS FUND BUDGET A RESOLUTION SUMMARIZING EXPENDITURES AND REVENUES FOR THE CAPITAL PROJECTS FUND AND ADOPTING A BUDGET FOR THE CALENDAR YEAR BEGINNING ON THE FIRST DAY OF JANUARY 2020 AND ENDING ON THE LAST DAY OF DECEMBER 2020 WHEREAS, the Town Council of the Town of Avon has appointed the Town Manager to prepare and submit a long-range capital program to said governing body for its consideration; and WHEREAS, the Town Council of the Town of Avon has appointed the Town Manager to prepare and submit a proposed Capital Projects Fund budget to said governing body for its consideration; and WHEREAS, upon due and proper notice, published and posted in accordance with the law, said proposed budget was open for inspection by the public at a designated place. Public hearings were held on November 12 and November 19, 2019, and interested taxpayers were given the opportunity to file or register any comment to said proposed budget; and WHEREAS, whatever increases may have been made in the expenditures, like increases were added to the revenues so that the Capital Projects Fund budget remains in balance, as required by law. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Section 1. That long-range capital program as submitted to the Town Council is hereby accepted as an official Town document and planning tool, and that the information contained therein may be revised or extended each year with regard to capital improvements. Section 2. That estimated revenues and expenditures for the Capital Projects Fund are as follows for 2020: ATTACHMENT D Res. No. 19-23 December 10, 2019 Page 2 of 2 2020 Proposed Budget Capital Projects Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 4,890,137 4,259,000 5,884,514 Ending Fund Balance $ 3,264,623 Section 3. That the budget, as submitted, and hereinabove summarized by fund, hereby is approved and adopted as the Capital Projects Fund budget of the Town of Avon for the year stated above. Section 4. That the Capital Projects Fund budget hereby approved and adopted shall be signed by the Mayor and made part of the public record of the Town. ADOPTED this 10th day of December 2019. AVON TOWN COUNCIL By:______________________________ Attest:________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk ATTACHMENT D TOWN OF AVON RESOLUTION NO. 19-24 SERIES OF 2019 A RESOLUTION LEVYING GENERAL PROPERTY TAXES FOR THE TOWN OF AVON GENERAL IMPROVEMENT DISTRICT NO. 1 FOR THE YEAR 2019, TO HELP DEFRAY THE COSTS OF GOVERNMENT FOR THE TOWN OF AVON, COLORADO, FOR THE 2020 BUDGET YEAR WHEREAS, on August 28, 2007, the Town Council of the Town of Avon passed on second reading Ordinance No. 07-07 declaring the Town of Avon General Improvement District No. 1 (District) organized and submitted to the electors of the District the question of imposing an ad valorem tax to pay the annual expenses of the District; and WHEREAS, on November 6, 2007, an election was held under the requirements and procedures of the Uniform Election Code, the Mail Ballot Election Act, and TABOR, and a majority of the votes cast on the question were in favor of incurring such levy as provided in such question; and WHEREAS, the Town Council is authorized to act as the ex-officio Board of Directors of the District and is authorized to proceed with the necessary action to levy the ad valorem taxes so authorized; and WHEREAS, the authority to levy ad valorem taxes as conferred by the results of the election, is deemed and considered a continuing authority to levy the ad valorem taxes so authorized; and WHEREAS, the Town Council of the Town of Avon has adopted the annual budget in accordance with the Local Government Budget Law and Town Charter on December 11, 2018; and WHEREAS, the estimated cost of providing transportation and recreation services to and within the District is $41,597; and WHEREAS, the 2019 net total assessed valuation for the property included in the District as certified by the County Assessor is $2,739,130. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Section 1. That for the purpose of providing transportation and recreation services to and within the District during the 2019 budget year there is levied a tax of 15,186 mills ATTACHMENT E upon each dollar of the net total assessed valuation of all taxable property within the District for the year 2019. Section 2. That the Mayor is hereby authorized and directed to certify to the County Commissioners of Eagle County, Colorado, the mill levies for the Town of Avon Local Improvement District No. 1 as hereinabove determined and set. ADOPTED this 10th day of December 2019. AVON TOWN COUNCIL By:______________________________ Attest:________________________ Sarah Smith Hymes Mayor Brenda Torres, Town Clerk ATTACHMENT E TOWN OF AVON RESOLUTION 19-25 SERIES OF 2019 A RESOLUTION LEVYING GENERAL PROPERTY TAXES FOR THE YEAR 2019, TO HELP DEFRAY THE COSTS OF GOVERNMENT FOR THE TOWN OF AVON, COLORADO, FOR THE 2020 BUDGET YEAR WHEREAS, the Town Council of the Town of Avon has adopted the annual budget in accordance with the Local Government Budget Law and Town Charter on December 10, 2019; and WHEREAS, the amount of money necessary to balance the budget for general operating purposes from property tax revenue is $2,045,905; and WHEREAS, the 2019 net total assessed valuation for the Town of Avon, as certified by the County Assessor is $228,439,560. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Section 1. That for the purpose of meeting all general operating expenses of the Town of Avon during the 2020 budget year there is levied a tax of 8.956 mills upon each dollar of the net total assessed valuation of all taxable property within the Town of Avon for the year 2019. Section 2. That the Mayor is hereby authorized and directed to certify to the County Commissioners of Eagle County, Colorado, the mill levies for the Town of Avon as hereinabove determined and set. ADOPTED this 10th day of December 2019. AVON TOWN COUNCIL By:______________________________ Attest:________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk ATTACHMENT F Original or Final Prev. Amend.Revised Proposed Actual Budget Budget Budget 2018 2019 2019 2020 REVENUES Taxes 18,148,426$ 17,682,317$ 18,169,349 18,653,565$ Licenses and Permits 398,860 349,100 989,734 453,100 Intergovernmental 1,574,176 2,167,399 1,334,734 2,957,079 Charges for Services 4,024,563 3,969,665 4,010,938 4,496,843 Fines and Forfeitures 52,220 71,200 49,500 43,500 Investment Earnings 398,998 247,694 403,944 356,983 Other Revenue 909,189 720,118 788,190 731,459 Total Operating Revenues 25,506,432 25,207,493 25,746,389 27,692,529 Other Sources Sales of Fixed Assets 26,601 35,000 35,000 35,000 Capital Lease Proceeds 258,258 - - - Transfers-In From Other Funds 5,016,471 3,556,593 3,323,043 4,682,352 Total Other Sources 5,301,330 3,591,593 3,358,043 4,717,352 TOTAL REVENUES 30,807,762 28,799,086 29,104,432 32,409,881 EXPENDITURES General Government and Finance 4,584,949 4,854,199 4,845,415 5,314,063 Community Development 436,177 523,484 537,015 500,102 Public Safety 3,690,530 3,974,829 3,919,153 4,320,911 Public Works, Engineering and Utilities 4,310,596 4,604,545 4,571,966 4,950,558 Transportation and Fleet Maintenance 3,488,837 4,717,296 3,636,828 5,632,472 Recreation 1,585,571 1,709,774 1,709,361 1,880,856 Total Operating Expenditures 18,096,660 20,384,127 19,219,738 22,598,962 Debt Service 2,047,229 1,967,063 1,969,013 2,208,931 Capital Improvements and Equipment Replacement 9,351,926 6,094,817 5,957,872 5,489,354 Contingency - 145,000 45,000 - Other Uses Transfers-Out To Other Funds 5,016,471 3,640,318 3,323,043 4,682,352 TOTAL EXPENDITURES 34,512,286 32,231,325 30,514,666 34,979,599 NET SOURCE (USE) OF FUNDS (3,704,524) (3,432,239) (1,410,234) (2,569,718) FUND BALANCES, Beginning of Year 24,052,115 20,084,090 20,347,591 18,937,357 FUND BALANCES, End of Year 20,347,591$ 16,651,851$ 18,937,357$ 16,367,639$ TOTAL - ALL FUNDS TOWN OF AVON Financial Overview ATTACHMENT G TOWN COUNCIL REPORT To: Honorable Mayor and Town Council From: Scott Wright, Asst. Town Manager / Finance Director Date: December 10, 2019 Agenda: 2019 Audit Engagement Letter Action Before Council An engagement letter with McMahan and Associates for the 2019 calendar year audit is included for approval by motion. Proposed Motion "I move to approve the Audit Engagement Letter with McMahan and Associates for the 2019 calendar year independent audit." Background The engagement letter is in the standard form recommended by the AICPA for local government engagements. The 2019 audit will be billed to the Town based on actual hours spent at standard rates with a fee not to exceed $22,300. The previous year's fee was $22,000. Audit field work is scheduled to begin April 6, 2020. In 2015, with the assistance of Councilors Scott Prince and Megan Burch, an RFP was issued for auditing services. The Town received 3 proposals. Based on the scores from the Audit Proposal Evaluation Matrix and discussion, the unanimous selection was McMahan and Associates. The proposal, provided for a three year fee commitment along with an option to renew the engagement for an additional two years. The fee above corresponds to the fees quoted in the proposal. The Finance Department is planning on issuing an RFP for audit services again in 2020. The engagement letter has been reviewed by the Town Attorney. Attachment 2019 Audit Engagement Letter McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.com Member: American Institute of Certified Public Accountants Paul J. Backes, CPA, CGMA Avon:(970) 845-8800 Michael N. Jenkins, CA, CPA, CGMA Aspen: (970) 544-3996 Daniel R. Cudahy, CPA, CGMA Frisco: (970) 668-3481 M & A November 18, 2019 Town of Avon, Colorado P.O. Box 975 Avon, CO 81620 We are pleased to confirm our understanding of the services we are to provide Town of Avon, Colorado for the year ended December 31, 2019. We will audit the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, including the related notes to the financial statements, which collectively comprise the basic financial statements of Town of Avon, Colorado as of and for the year ended December 31, 2019. Accounting principles generally accepted in the United States of America provide for certain required supplementary information (“RSI”), such as management’s discussion and analysis (“MD&A”), to supplement Town of Avon, Colorado’s basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board,who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to Town of Avon, Colorado’s RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited: 1)Management’s Discussion and Analysis. We have also been engaged to report on RSI other than MD&A and supplementary information other than RSI that accompanies Town of Avon, Colorado’s financial statements. We will subject the following RSI and supplementary information to the auditing procedures applied in our audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. We intend to provide an opinion on the following RSI and supplementary information in relation to the financial statements as a whole: 1)Budgetary schedules for the General Fund and major special revenue funds 2)Budget schedules for all other funds 3)Combining statements 4)Local Highway Finance Report 5)Debt Schedule November 18, 2019 Town of Avon, Colorado Page 2 The following other information accompanying the financial statements will not be subjected to the auditing procedures applied in our audit of the financial statements, and our auditor’s report will not provide an opinion or any assurance on that other information: 1)Introductory information 2)Statistical information Audit Objective The objective of our audit is the expression of opinions as to whether the Town’s basic financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America and to report on the fairness of the supplementary information referred to in the fourth paragraph when considered in relation to the financial statements as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and will include tests of the accounting records and other procedures we consider necessary to enable us to express such opinions. If our opinions on the financial statements are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or to issue a report as a result of this engagement. Management Responsibilities Management is responsible for the basic financial statements and all accompanying information as well as all representations contained therein. As part of our engagement, we will assist with preparation of your financial statements and related notes. You are responsible for making all management decisions and performing all management functions; for designating an individual with suitable skill, knowledge, or experience to oversee our assistance with the preparation of your financial statements and related notes and any other non-attest services we provide; and for evaluating the adequacy and results of those services and accepting responsibility for them. Management is responsible for establishing and maintaining effective internal controls, including monitoring ongoing activities; for the selection and application of accounting principles; and for the preparation and fair presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America. Management is also responsible for making all financial records and related information available to us and for ensuring that management is reliable and that financial information is reliable and properly recorded. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud or illegal acts affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud or illegal acts could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting Town of Avon received in communications from employees,former employees, regulators, or others. In addition, you are responsible for identifying and ensuring that Town of Avon complies with applicable laws and regulations. November 18, 2019 Town of Avon, Colorado Page 3 Management Responsibilities (continued) You are responsible for the preparation of the supplementary information in conformity with accounting principles generally accepted in the United States of America. You agree to include our report on the supplementary information in any document that contains and indicates that we have reported on the supplementary information. You also agree to include the audited financial statements with any presentation of the supplementary information that includes our report thereon. Your responsibilities include acknowledging to us in the representation letter that (1) you are responsible for presentation of the supplementary information in accordance with accounting principles generally accepted in the United States of America; (2) that you believe the supplementary information, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America; (3) that the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. With regard to using the auditor’s report, you understand that you must obtain our prior written consent to reproduce or use our report in bond offering official statements or other documents. With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document. Audit Procedures—General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us, even though the audit is properly planned and performed in accordance with auditing standards generally accepted in the United States of America. In addition, an audit is not designed to detect immaterial misstatements, or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform the appropriate level of management of any material errors or any fraudulent financial reporting or misappropriation of assets that come to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will require certain written representations from you about the financial statements and related matters. November 18, 2019 Town of Avon, Colorado Page 4 Audit Procedures—Internal Control Our audit will include obtaining an understanding of the Town and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. An audit is not designed to provide assurance on internal control or to identify deficiencies in internal control. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards. Audit Procedures—Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of Town of Avon’s compliance with the provisions of applicable laws, regulations, contracts, and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. Engagement Administration, Fees, and Other We understand that your employees will prepare all cash or other confirmations we request and will locate any documents selected by us for testing. Paul J. Backes,C.P.A.is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. Additional firm personnel will be assigned to the engagement as considered necessary. We will begin our audit and issue our reports on a mutually agreed-upon date. At the conclusion of our audit engagement, we will communicate to the Governing Board the following significant findings from the audit: Our view about the qualitative aspects of the entity’s significant accounting practices; Significant difficulties, if any, encountered during the audit; Uncorrected misstatements, other than those we believe are trivial, if any; Disagreements with management,if any; Other findings or issues, if any, arising from the audit that are, in our professional judgment, significant and relevant to those charged with governance regarding their oversight of the financial reporting process; Material, corrected misstatements that were brought to the attention of management as a result of our audit procedures; Representations we requested from management; Management’s consultations with other accountants, if any; and Significant issues, if any, arising from the audit that were discussed, or the subject of correspondence, with management. November 18, 2019 Town of Avon, Colorado Page 5 Engagement Administration, Fees, and Other (continued) Our fee for these services will be at our standard hourly rates plus out-of-pocket costs (such as report reproduction, word processing, postage, travel, copies, telephone, etc.) except that we agree that our gross fee, including expenses will not exceed $22,300 for the 2019 engagement. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to the engagement. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended if your account becomes overdue and may not be resumed until your account is paid in full.If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report, and you will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination. Our fee estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. significant additional time is necessary, we will keep you informed of any problems we encounter and our fees will be adjusted accordingly. We want the Town to feel that the value of services provided by our firm is commensurate with the fee charged. We appreciate the opportunity to be of service to Town of Avon, Colorado and believe this letter accurately summarizes the significant terms of our engagement.If you have any questions, please let us know.If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy, and return it to us. Sincerely, McMAHAN and ASSOCIATES, L.L.C. RESPONSE: This letter correctly sets forth the understanding of Town of Avon, Colorado with respect to services to be provided by McMahan and Associates, L.L.C. Town of Avon, Colorado BY: ________________________________________________ Signature ________________________________________________ Title ________________________________________________ Date AVON REGULAR MEETING MINUTES TUESDAY, NOVEMBER 19, 2019 AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO EXECUTIVE SESSION REGARDING A PERSONNEL MATTER UNDER C.R.S. §24-6-402(2)(F) CONCERNING THE TOWN MANAGER’S ANNUAL PERFORMANCE EVALUATION Mayor Smith Hymes convened an Executive Session regarding a personnel matter under C.R.S. §24-6-402(2)(f) concerning the town manager’s annual performance evaluation. Council members present were Tamra Underwood, Jennie Fancher, Chico Thuon, and Amy Phillips. Councilor Prince and Councilor Wolf were absent. Also present were Town Attorney Paul Wisor and Human Resources Director Lance Richards. The time was 4:00 p.m. Councilor Prince joined at 4:03 p.m. Executive Session ended at 4:45 p.m. 1. CALL TO ORDER AND ROLL CALL Mayor Smith Hymes called the meeting to order at 5:00 p.m. A roll call was taken, and Council members present were Tamra Underwood, Jennie Fancher, Chico Thuon, Scott Prince, and Amy Phillips. Councilor Wolf was absent. Also present were Town Manager Eric Heil, Town Attorney Paul Wisor, Executive Assistant to the Town Manager Ineke de Jong, Police Chief Greg Daly, Recreation Director John Curutchet, Finance Director Scott Wright, Planning Director Matt Pielsticker, Deputy Town Manager Preston Neill and Town Clerk Brenda Torres. 2. APPROVAL OF AGENDA Start Time: 00:00:25 Mayor Smith Hymes requested that item 6.3 “2019 Capital Projects Update” written report be pulled for discussion as the first item of business after the public comment period. Council agreed to the change. Councilor Fancher moved to approve the agenda, as amended. Councilor Underwood seconded the motion and the motion passed unanimously by those present. Councilor Wolf was absent. 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS Start Time: 00:02:02 No conflicts of interest were disclosed. 4. PUBLIC COMMENT Start Time: 00:02:10 Greg Anderson brought up a safety issue on the sidewalk by The Westin. He explained that he was walking with his kids and dog along the sidewalk and they were met with large amounts of nails and construction debris in their path. Town Manager Eric Heil stated that he would reach out to the construction company to request that the area be cleaned up and to talk remediation. Kathleen Walsh commented about the Town of Avon’s records request policy. Staff committed to working with Ms. Walsh to ensure that she views the document she was looking to see. Councilor Wolf arrived at 5:14 p.m. AVON REGULAR MEETING MINUTES TUESDAY, NOVEMBER 19, 2019 AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO 5. BUSINESS ITEMS 6.3. 2019 CAPITAL PROJECTS UPDATE (TOWN ENGINEER JUSTIN HILDRETH) Start Time: 00:19:04 Town Engineer Justin Hildreth answered questions from Council regarding the Water Park Repair Project. 5.1. PUBLIC HEARING : P ROPOSED 2020 BUDGET (TOWN M ANAGER ERIC HEIL AND FINANCE DIRECTOR SCOTT WRIGHT ) Start Time: 00:23:03 Finance Director Scott Wright gave an update on the changes made to the 2020 Budget. A final public hearing will be held on December 10th to adopt various resolutions that would amend the 2019 Operating and Capital Projects budgets and to adopt the 2020 Operating and Capital Projects budgets. Mayor Smith Hymes opened the public hearing and no public comments were made. 5.2. JOINT WORK SESSION WITH THE PLANNING AND ZONING COMMISSION Start Time: 00:26:30 Planning and Zoning Commission members present were Alex Dammeyer, Kenneth Howell, Rebecca Smith, Lindsay Hardy, Steven Nusbaum, and Marty Golembiewski. Commissioner Barnes was absent. Planning Director Matt Pielsticker mentioned that Commissioner Howell will move out of the town and there will be a vacancy on the P&Z Board for a term expiring in May. A presentation was given by Roger Michaud. After thorough discussion and questioning by Council, Town Manager Eric Heil explained that it is probable that an Executive Session will be held on December 10th regarding a potential Community Housing project planned for Tract Y, a vacant property located on Metcalf Road in the Light Industrial and Commercial zone district. 5.3. APPOINTMENTS TO AD HOC HEALTH AND RECREATION COMMITTEE (RECREATION DIRECTOR JOHN CURUTCHET ) Start Time: 02:02:31 Recreation Director John Curutchet introduced the applicants and requested that Council formally appoint the applicants to the Committee. Councilor Underwood moved to approve the appointment of Kathy Ryan, Pat Nolan, Thomas Kiddoo, and Pam Warren to the Ad Hoc Health and Recreation Committee. She further moved to make Jake Wolf and two alternates Sarah Smith Hymes and Scott Prince as the ex-officio non-voting members to the Committee. Mayor Pro Tem Phillips seconded the motion and the motion passed unanimously. 5.4. PUBLIC HEARING : SECOND READING ORDINANCE 19-05 ADOPTING INCREASED RETT EXEMPTION FOR PRIMARY RESIDENCES (TOWN MANAGER ERIC HEIL ) Start Time: 02:12:24 Town Manager Eric Heil gave a presentation. Council discussed the ordinance and various amendments were proposed by members of Council. Mayor Smith Hymes opened the public hearing and no public comments were made. Councilor Fancher moved to approve Ordinance 19-05 Adopting Increased RETT Exemption for Primary Residence, as amended. Mayor Pro Tem Phillips seconded the motion and it passed unanimously. AVON REGULAR MEETING MINUTES TUESDAY, NOVEMBER 19, 2019 AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO 5.5. FIRST READING: ORDINANCE 19-11 ADOPTING A NEW CHAPTER 8.40 OF TITLE 8 OF THE AVON MUNICIPAL CODE ESTABLISHING PROVISIONS REGARDING BAN ON USE OF POLYSTYRENE FOAM (DEPUTY TOWN MANAGER PRESTON NEILL) Start Time: 03:06:01 Deputy Town Manager Preston Neill gave a brief summary on Ordinance 19-11. After Council discussion, several edits and amendments to the ordinance were suggested. Councilor Underwood moved to continue first reading of Ordinance 19-11. The motion did not receive a second and the motion failed. Councilor Wolf moved to approve the first reading of Ordinance 19-11 Adopting a New Chapter 8.40 of Title 8 of the Avon Municipal Code Establishing Provisions Regarding Ban of Use of Polystyrene Foam, with the various amendments as agreed to by Council. Councilor Fancher seconded the motion and the motion passed with a vote of 6 to 1. Councilor Underwood voted no. 5.6. APPROVAL OF MINUTES FROM NOVEMBER 12, 2019 REGULAR COUNCIL MEETING (TOWN CLERK BRENDA TORRES) Start Time: 03:30:49 Councilor Prince moved to approve the minutes from the November 12, 2019 regular council meeting. Mayor Pro Tem Phillips seconded the motion and the motion passed on a vote of 6 to 1. Councilor Wolf voted no. 6. WRITTEN REPORTS 6.1. POLICE DEPARTMENT SIX-MONTH REPORT (POLICE CHIEF GREG DALY) 6.2. UPDATE ON MARKETING ACTIVITIES AND OUTREACH EFFORTS (COMMUNICATIONS AND MARKETING MANAGER LIZ WOOD) 7. MAYOR & COUNCIL C OMMENTS & MEETING UPDATES Start Time: 03:31:49 Mayor Smith Hymes announced the departure of Deputy Town Manager Preston Neill, as he was recently hired to serve in the role of Town Manager for the Town of Ridgway, Colorado. Council members thanked and congratulated Preston. Mayor Smith Hymes thanked Chief of Police Greg Daly for his excellent written report to Council. Mayor Smith Hymes talked about the skier shuttle Beaver Creek opening schedule. Mayor Smith Hymes reminded the community about Colorado Gives Day on December 10th. 8. A DJOURN There being no further business to come before the Council, Mayor Smith Hymes adjourned the regular meeting. The time was 8:44 p.m. AVON REGULAR MEETING MINUTES TUESDAY, NOVEMBER 19, 2019 AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO These minutes are only a summary of the proceedings of the meeting. They are not intended to be comprehensive or to include each statement, person speaking or to portray with complete accuracy. The most accurate records of the meeting are the audio of the meeting, which is housed in the Town Clerk' s office, and the video of the meeting, which is available at www.highfivemedia.org. RESPECTFULLY SUBMITTED: Brenda Torres, Town Clerk APPROVED: Sarah Smith Hymes ___________________________________ Amy Phillips Jake Wolf Chico Thuon Jennie Fancher Scott Prince Tamra Underwood UPDATE ON OPPORTUNITY ZONE PROSPECTUS PAGE 1 | 1 TO: Honorable Mayor Smith Hymes and Council FROM: Matt Pielsticker, Planning Director RE: Update on Opportunity Zone Prospectus DATE: December 5, 2019 SUMMARY: This report is provided to update Council on the Opportunity Zone Prospectus project. Grant: Staff successfully acquired a grant from the Department of Local of Affairs (DOLA) for $25,000. The technical assistance grant is for professional services and based upon 50% of the estimated cost to complete the project. The Town’s match of $25,000 was included in the general fund budget amendment this past summer, and is included within Community Development’s budget. Contract with Ricker-Cunningham: After a competitive RFP process, the Town engaged a consultant team to assist with the creation of Avon’s Opportunity Zone Prospectus. The team is led by Anne Ricker and Bill Cunningham of Ricker-Cunningham, along with Mark Diemer of DHM Design. Work to Date: Since the contract was signed with Ricker-Cunningham, the following work has taken place:  Photos  Development Concept (narrative)  Investment Impacts  Challenges to Development  Opportunities for Investment (market findings)  Development Proforma (gap analysis)  Implementation Strategies and Tools  Concept Illustrations Schedule: The project is behind the initial schedule due to time involved to conduct meetings with individual owners of potential investment properties and to determine individual property owners’ preferences for participation in the Opportunity Zone Prospectus. Documents are expected for completion the first week of January, with a presentation to Avon Town Council at the January 29, 2020 meeting. The results from that meeting, including any additional modifications to the document, would be completed as soon as possible. Once the Prospectus is published it will be posted on the Town’s website and the State of Colorado Office of Economic Development and International Trade’s webpage devoted to Opportunity Zone information. Submit Draft Prospectus for Staff Review: Friday, December 13, 2019 Return Comments to Consultants: Friday, December 20, 2019 Submit Final Draft Materials for January Town Council Meeting: Wednesday, January 8, 2020 Town Council Presentation: Tuesday, January 14, 2020 Post Prospectus on Avon Website, Forward as Appropriate: By January 31, 2020 1 Tuesday, December 3, 2019 Planning and Zoning Commission Meeting Planning & Zoning Commission Meeting Abstract Tuesday, December 3, 2019 I. Call to Order – The meeting was called to order at 5:05 pm. II. Roll Call – All Commissioners were present with the exception of Commissioner Nusbaum. III. Conflicts of Interest – No conflicts were disclosed. IV. Additions & Amendments to the Agenda – There were no additions or amendments to the agenda. V. Major Development Plan & Alternative Equivalent Compliance– 5792 Wildridge Road East – CONTINUED PUBLIC HEARING File: MJR19008 & AEC19008 Applicant: Luis Vasquez with TAB and Associates Property: Lot 2 Block 4 Wildridge Subdivision Summary: Application for an addition to a single-family house. Action: Commissioner Golembiewski motioned to approve the AEC application with the following findings: 1. The proposed application was reviewed pursuant to §7.16.120, Alternative Equivalent Compliance; 2. The proposed alternative achieves the intent of §7.28.090(j)(4)(viii), Building Materials, to the same or better degree than the subject standard; 3. The proposed alternative achieves the goals and policies of the Avon Comprehensive Plan to the same or better degree than the subject standard; 4. The proposed alternative results in benefits to the community that are equivalent to or better than compliance with the subject standard; and 5. The proposed alternative imposes no greater impacts on adjacent properties than would occur through compliance with the specific requirements of the Code. Commissioner Smith seconded the motion and it carried unanimously 5-0. Action: Commissioner Smith motioned to approve the MJR application with the following findings and conditions: Findings: 1. The proposed application was reviewed pursuant to §7.16.080(f), Development Plan, §7.16.090(f), Design Review. The design meets the development and design standards established in the Avon Development Code; 2. The application is complete; 3. The application provides sufficient information to allow the PZC to determine that the application complies with the relevant review criteria; 4. The application complies with the goals and policies of the Avon Comprehensive Plan; 5. The demand for public services or infrastructure exceeding current capacity is mitigated by the application; and 6. The design relates the development to the character of the surrounding community. Conditions: 2 Tuesday, December 3, 2019 Planning and Zoning Commission Meeting 1. The successful completion of any Eagle River Water & Sanitation District requirements shall be verified before a building permit will be issued; and 2. Dark Sky compliant fixtures will be demonstrated to staff before a building permit will be issued. Commissioner Dammeyer seconded the motion and it carried unanimously 5-0. VI. Consent Agenda A. PZC Meeting Minutes – November 19, 2019 Action: Commissioner Hardy motioned to approve the consent agenda. Commissioner Dammeyer seconded the motion and it carried unanimously 4-0 with Commissioner Barnes abstaining. VII. Adjourn – The meeting was adjourned at 5:35 pm. M E M O R A N D U M TO: Board of Directors FROM: Catherine Hayes, Board Secretary DATE: Nov. 24, 2019 RE: Summary of Authority’s Nov. 21, 2019, Board Meeting The following is a summary of items discussed at the Nov. 21, 2019, Authority Board Meeting: Board members present and acting included: Chair George Gregory, Vice Chair Sarah Smith Hymes, Secretary Kim Bell Williams, Treasurer Geoff Dreyer, Pam Elsner and Mick Woodworth. Introductions Staff introductions were made, including Kira Koppel, sustainability coordinator, and new water manager, Brad Zachman. Public Comment County Commissioner Matt Scherr was welcomed; he wanted to introduce himself in his new commissioner role. He invited the board and staff to a Jan. 22 meeting on behalf of the local Climate Action Collaborative, which is hosting the meeting to present updated information on climate and water supply conditions and discuss community efforts to continue to reduce the impacts of climate change. Privacy Policy Jim Collins discussed a privacy policy, approval of which is required by new state legislation. The policy ensures protection of private customer information, for which the District and Authority already ensure the highest level of protection. The board unanimously approved the policy. Public Hearing re 2020 Budget A public hearing was held to discuss the proposed 2020 budget; no public comment was received. The board unanimously approved the budget and related resolutions to appropriate sums of money and adopt the 2020 rates. Discussion ensued regarding planned public outreach to communicate the upcoming rate increases, which are larger than in years past. Colorado Special District Property and Liability Pool (Pool) Hero Award Customer Service Specialist Julie Stuck was introduced. She is part of the District’s safety committee and chosen from among all nominees statewide for the Pool’s hero award for her efforts to address administrative safety risks throughout the organization. She acknowledged the support of Dan Siebert, Safety Coordinator, and the safety culture of the District. 2018 Macroinvertebrate Sampling Results Siri Roman presented the results of the annual macroinvertebrate sampling. The state implemented new monitoring metrics in its multimetric index version 4, which replaces version 3. Version 4 has more focus on extremely sensitive macroinvertebrates. Siri noted passing scores on Red Sandstone Creek and the Eagle River using version 3. Using version 4, those same sites on Red Sandstone are failing, as are most sample sites on Gore Creek. Board Member Input Sarah Smith Hymes thanked Linn Brooks for agreeing to serve on the town of Avon’s citizen finance committee. Climate Impact Award Catherine Hayes summarized the Climate Impact Award received by the District at the recent Actively Green awards ceremony. The award was given to an Actively Green-certified business that significantly reduced its green house gas emissions in the past year. The District’s reductions through energy efficiency, use of electric Summary of Authority’s Nov. 21, 2019, Board Meeting Page 2 of 3 vehicles, and waste diversion, were equivalent to taking 12 passenger vehicles off the road for one year. Catherine thanked Kira Koppel, the District’s sustainability coordinator, and the board for its support of sustainability initiatives. Quarterly Finance Report James Wilkins discussed the quarterly finance report. He said the Authority would likely exceed revenue projections for the year, due to water use in the higher tiers of the Authority’s rate structure. The board and staff discussed water budgeting, how to incentivize efficient water use, and the positive response to reduction requests during the last drought. Wastewater Projects Update Jason Cowles discussed an undersized sewer pipe that was discovered near the river east of the Arrowhead golf course. The operational plan for the Avon WWTF nutrient upgrade project calls for bypassing all wastewater to Edwards WWTF, but the undersized pipe may not accommodate this plan. Staff is working on gathering data to model scenarios based on this new information. Avon WWTF Nutrient Upgrade Project Overview Jeff Schneider and Melissa Marts discussed the previous week’s pre-construction tour of the Avon Wastewater Treatment Facility, attended by staff, some board members, and other project experts. The tour highlighted the planned upgrades, which will require large capital investment, needed approvals from various entities, and mitigation of anticipated project impacts. Engineering Update Jason Cowles updated on engineering projects. A draft water system master plan was recently received from AE2S, the consultant on the project. Staff will p resent a related 10-year capital plan at the January meeting. Staff also plans to present information on a proposed water efficiency rebate program in December. Eagle River Village Mobile Home Park Water Issues Jason Cowles discussed the water issues at the ERV. The owners have been conducting sampling and are researching additional treatment options. Though the water meets state drinking water regulations, the majority of park residents purchase expensive bottled water rather than using the ERV’s water system, which has taste, color, and odor issues. Urban Land Institute (ULI) Information Session in Edwards Jason Cowles summarized a recent information session to discuss the west Edwards area, which aimed to improve community health, traffic, and pedestrian movement in the area. Discussion ensued regarding a previous community plan, which is at odds with what the ULI is proposing. Public Affairs Update Diane Johnson updated on recent developments, including the passage of proposition DD in the recent election. Proposition DD legalizes sports betting and includes a tax, which will be used to fund water projects identified in Colorado’s Water Plan. She briefly discussed drought contingency planning undertaken by the Colorado Water Conservation Board. Communications Update Diane Johnson discussed various outreach efforts. She is working with journalists and publications on some water-related stories, including the Vail Daily. The District’s energy efficiency efforts are featured in this month’s Holy Cross Energy newsletter. The Homestake Partners’ continued work on a proposed Whitney Creek reservoir is receiving press, and Diane clarified that the Authority and District support any partners in the Eagle River MOU to pursue permitted projects; it is up to the permitting agencies to determine the viability of such projects. Eagle Park Reservoir Diligence Application The board unanimously approved the filing of the diligence application for the Eagle Park Reservoir and East Fork Pump Station water rights. Summary of Authority’s Nov. 21, 2019, Board Meeting Page 3 of 3 Colorado River Compact Mr. Porzak discussed the possibility of a Compact Call, which some of the Colorado River Basin states now believe is inevitable. Discussion ensued regarding climate change and its effect on water supply, the overuse by lower basin states, and how a compact call would ultimately be handled and potentially litigated if the prior appropriation system were not followed. TO: Honorable Mayor Smith Hymes and Council FROM: Eva Wilson, Mobility Director RE: Update on 2019 Mobility Grant Efforts DATE: December 5, 2019 SUMMARY: This report is provided to update Council on 2019 Mobility grant efforts. 1. Federal Transit Administration (FTA) and Colorado Department of Transportation (CDOT): - Grant: FTA Section 5311 Administrative and Operating Grant - Purpose: To provide operating assistance funds for operating expenses that are directly related to transit system operations - Awarded: $245,980 - Performance Period: 2020 2. Charge Ahead Colorado: - Grant: Electric Vehicle Supply Equipment (EVSE) - Purpose: To promote the installation of electric vehicle charging stations throughout Colorado, increase the number of electric vehicles purchased in Colorado, reduce harmful air pollution and greenhouse gas emissions associated with gasoline and diesel vehicles, gather data on electric vehicles and charging stations to better understand their usage, and to support the implementation of the Colorado Electric Vehicle Plan. - Awarded: $30,000 to install a Level III Fast Charging Station at the public parking lot by Pier One and Sun & Ski - Local Matches: Avon – Installation ~ $30,000; Holy Cross – Electrical Upgrade ~ $30,000 - Performance Period: Installation is planned to occur in summer 2020 3. FTA and CDOT: - Grant: FTA Section 2339 Formula program for Bus and Bus Facilities - Purpose: To assist rural communities in acquiring rolling stock to replace existing rolling stock - Requested: $1,600,000 to purchase two electric buses ($1,000,000 cost each) - Local Match: Avon - $400,000 - Award Announcement: February 2020 - Projected Performance Period: If awarded; anticipated delivery is summer 2021 due to the lead time to order electric buses TOWN COUNCIL REPORT To: Honorable Mayor Sarah Smith Hymes and Avon Town Council From: Joel McCracken, Senior Accountant Meeting Date: December 10, 2019 Agenda Topic: Fiscal Year 2019 Financial Report – September 2019 Revenues SALES TAX Sales tax revenue for the month of September totaled $841,689 a 23.65% increase from the previous year and a 21.86% positive variance over the monthly budget, which is based on the average of the relative monthly percentages of taxes collected over a 5-year period. Year-to-date sales tax revenues through September have increased 6.22% over the previous year, which is $386,530 over the previous year and $368,399 over original budget estimates. Monthly sales tax collections by industry compared to one year ago have increased $37,982 for Home/Garden, $151,553 for Other, $37,478 for Service-Related businesses, and $25,412 for Miscellaneous Retail. Month sales tax collections have decreased ($27,188) for Grocery/Specialty/Health, ($9,189) for Liquor Stores, ($2,020) for Sporting Goods Retail/Rental, ($7,057) for Accommodations, and ($4,828) for Restaurants/Bars. $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 2015 2016 2017 2018 2019 Year Sales Tax Collections for September Page 1 New and Renewed Business, Contractor & Sales Tax Licenses Issued in September Business License - Fixed Location 26 Business License - Home Occupation 4 Business License - Short Term Accommodation 20 Business License – Special Event 1 Business License - Vendor 90 Contractor License 24 Liquor License 0 Sales Tax License 35 Grand Total 200 ACCOMMODATIONS TAX Accommodation tax revenue for the month of September totaled $89,362.90, a 4.81% increase from the previous year and a 14.29% positive variance over the monthly budget, which is based on the average of the relative monthly percentages of taxes collected over a 5-year period. Year-to- date accommodation tax revenues through September have increased 9.79% over the previous year, which is $102,621 over the previous year and $84,490 over original budget estimates. Monthly accommodation tax collections increased $2,006 for time shares and $10,389 for Vacation Rentals. While monthly accommodation tax collections decreased ($8,318) for Hotels compared to September 2018. - 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 Sales Tax Comparison by Industry Sep-18 Sep-19 Page 2 CIGARETTE AND TOBACCO TAX In summary, a grand total of $92,596 has been collected in cigarette and tobacco tax for the 3rd quarter. This figure includes: • $53,457 for the per pack excise tax. • $38,974 has been collected for the 40% sales tax on other tobacco tax. • $165 has been collected for penalties and interest. $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 2015 2016 2017 2018 2019 Accommodations Tax Collections for September - 10,000.00 20,000.00 30,000.00 40,000.00 50,000.00 60,000.00 Time Shares Hotels Vacation Rentals Accommodation Tax by Type Sep-18 Sep-19 Page 3 Of the quarterly total, $32,012 was collected in July, $32,545 in August, and $28,039 in September. As all businesses have properly adjusted to reporting deadlines, penalty and interest has been significantly reduced compared to the 1st and 2nd quarter revenues ($5,856 and $874, respectively). The original 2019 adopted budget estimated revenues of $150,000 for the cigarette excise tax and $25,000 for the tobacco sales tax. After the 3rd quarter, the Town has collected a total of $265,256, a positive variance of $90,256. Jul Aug Sep Tobacco Tax - Per Pack Fee 18,693.15 19,413.15 15,351.00 Tobacco Tax - 40% Rate-VAA 33.72 24.98 17.15 Tobacco Tax - 40% Rate 13,285.21 12,942.23 12,670.59 Tobacco- Penalty 143.02 Tobacco- Interest 21.45 - 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00 30,000.00 35,000.00 Cigarette & Tobacco Tax Revenue 3rd Quarter 6231 6471 5117 0 1000 2000 3000 4000 5000 6000 7000 July August September Number of Cigarette Packs Sold 3rd Quarter Total Page 4 REAL ESTATE TRANSFER TAX Real estate transfer tax collections for the month of September totaled $604,158.92, an increase of 94.25% from the previous year and a positive variance of 119.15% over the cumulative monthly budgets, which is based on average of the relative monthly percentages of taxes collected over a 5- year period. Year-to-date revenues total $2,471,297 which is $303,702 below the annual estimated revenues with three months to go in the year. RECREATION CENTER ADMISSIONS September admission fees totaled $55,599, a 12.74% increase from the previous year. This is a 12.43% positive variance compared to the monthly budget, which is based on average of the relative monthly percentages of fees collected over a 5-year period. $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 2015 2016 2017 2018 2019 Year Real Estate Transfer Tax for September $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2015 2016 2017 2018 2019 Recreation Center Admissions September Page 5 RECREATION CENTER PROGRAM FEES September program fees totaled $34,705 which is a 16.30% decrease from the previous year. This is a 6.06% negative variance compared to the monthly budget, which is based on average of the relative monthly percentages of fees collected over a 5-year period. Expenditures General Fund expenditures through September 2019 total 66.70% of the total budget. These expenditures include insurance premiums, computer services, events, community grants, equipment replacement, contract services, janitorial and legal services. Fleet expenditures through September 2019 total 75.81% of the total budget. These costs include expenditures of stock parts, fleet maintenance, debt service interest, and insurance premiums. Mobility funds are September 2019 total 48.05% of the total budget. These expenditures include costs of diesel, fleet maintenance, equipment replacement, capital lease payments, and insurance premiums. $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 2015 2016 2017 2018 2019 Recreation Center Program Fees September 2019 Page 6