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HomeMy WebLinkAbout2005-08-02 Support Documentation Town Council Evening Sessionb TOWN COUNCIL EVENING SESSION AGENDA 6:00 P.M., TUESDAY, AUGUST 2, 2005 VAIL TOWN COUNCIL CHAMBERS 75 S. Frontage Road W. .Vail, CO 81657 NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what time Council will consider an item. 1. ITEMROPIC: Citizen Input (10 min.) 2. Jack Taylor ITEMITOPIC: Referendum C & D information presentation. (15 min.) 3. Diane Johnson ITEM/TOPIC: Early Childhood Initiative. (10 min.) Kathleen Forinash BACKGROUND RATIONALE: The Early Childhood Initiative is a community effort to identify early childhood needs and develop a shared plan to meet those needs. This brief presentation will share the scope of the initiative and the outcomes for children and families. Your recommendations are invited. The final report of the Initiative will be completed in the first quarter of 2006. 4.. ITEMITOPIC: Consent Agenda. Approval of 07.05:05 and 07.21.05 Evening Session Minutes. (5 min.) 5. Greg Hall Construction Update..(5 min.) 6. Bill Gibson ITEM/TOPIC: Second reading of Ordinance No. #17, Series of 2004, an ordinance amending Special Development District #4, Cascade Village, to allow for the creation of Development Area E, located at Tract K, Glen Lyon Subdivision, and setting forth details in regard thereto. (5 min.) ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, deny, or table the second reading of Ordinance No. #17, Series of 2004. The applicant is requesting that the Town Council table the second reading of Ordinance No. #17, Series of 2004, to September 6, 2005. BACKGROUND RATIONALE: On July 12, 2004 the Town of Vail Planning and Environmental Commission voted 42 to forward a recommendation of approval, with conditions, for the proposed amendments to Special Development District #4, Cascade Village. On August 3, 2004 by a vote of 7-0 the Town Council approved the first reading of Ordinance No. #17, Series of 2004, with a condition that the applicant, Vail Resorts, resolve any issues related to the Protective Covenants of Glen Lyon Subdivision, prior to the second reading of this ordinance. On August 17, 2004; October 5, 2004; January 4, 2005; May 3, 2005; and June 21, 2005, the Town Council tabled the second reading of Ordinance No. #17, Series of 2004, to allow the applicant additional time to resolve issues related to the protective covenants. The outstanding protective covenant issues have not yet been resolved; therefore, Vail Resorts is requesting that the second reading of Ordinance No. #17, Series of 2004, again be tabled to a future Town Council meeting. STAFF RECOMMENDATION: Table the second reading of Ordinance No. #17, Series of 2004, to September 6, 2005. 7. Matt Gennett ITEM/TOPIC: First reading of Ordinance No. #17, Series of 2005, an ordinance amending the Vail Land Use, Plan pursuant to Chapter VIII of the Vail Land Use Plan, adding the Chamonix Parcel as Tract 43 in the "Inventory and Assessment of Town Owned Property" contained in Chapter VII, Community Facilities, and setting forth details in regard thereto. (20 min.) ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. 17, Series of 2005. BACKGROUND RATIONALE: On July 20, 2004, upon the recommendation of acouncil-citizen-staff review committee, the Vail Town Council authorized the Town Manager to hire the planning team of Davis Partnership/Michael Hazard Associates'to facilitate a master land use plan centered on a fire station for the town-owned Chamonix property at 2310 Chamonix Road. On January 24, 2005, the Planning arid Environmental Commission (PEC) held a work session to consider a proposed draft Land Use Plan for the Chamonix parcel, hear public input, and discuss the other possible uses on site which would be in addition to the primary fire station use. On June 27, 2005, the Planning and Environmental Commission unanimously approved a proposed land use plan and an attached site plan produced by the collaborative efforts of the committee, staff, and Davis Partnership/Michael Hazard. Associates to be used as a guide for future land uses on the Chamonix Parcel. STAFF RECOMMENDATION: The Community Development Department. is recommending that the Towne Council approves Ordinance No: 47, Series of 2005, upon first reading. d 8. Warren Campbell ITEMITOPIC: First Reading of Ordinance No. #1, Series of 2005, an ordinance establishing Special Development District No. #39, Crossroads, and setting forth details in regard thereto. (4 hrs.) ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. #1, Series of 2005. BACKGROUND RATIONALE: On April 25, 2005, the Town of Vail Planning and Environmental Commission held a public hearing on a request to establish Special Development District No. #39, Crossroads. The purpose of the new Special Development District is to facilitate the redevelopment of Crossroads, located at 141 and 143 Meadow Drive. Upon review of the request, the Planning and Environmental Commission voted 7-0-0 to forward a recommendation of approval of the request to establish Special Development District No. 39, Crossroads, to the Vail Town Council. Please refer to the staff memorandum to the Vail Town Council dated June 21, 2005, for further details (attached). On June 21, 2005, the Town Council tabled the First Reading of Ordinance No. 1, Series of 2005, and directed staff and the applicant to address several comments. STAFF RECOMMENDATION: The Community Development Department recommends that the Vail Town Council approves Ordinance No. 1, Series of 2005; on first reading. 9. Warren Campbell ITEMITOPIC: First Reading of Ordinance No. #16, Series of 2005, an ordinance amending Title 12, Zoning Regulations, Vail Town Code, to amend the Commercial Service Center (CSC) District to add "bowling alley° as a conditional use to the District and to add a definition of a "bowling alley" to the Vail Town Code, and setting forth details in regard thereto. (30 min.) ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. #16, Series of 2005 on first reading.. BACKGROUND RATIONALE: On April 25, 2005, the Town of Vail Planning and Environmental Commission voted 6-0-0 (Gunion absent) to forward a recommendation of approval for a proposed text amendment to the Commercial Service Center (CSC) District to add "bowling alley° as a,conditional use and. to add a definition fora "bowling alley" to the Vail Town Code. On June 21, 2005, the Town Council tabled the First Reading of Ordinance No. #16, Series of 2005, without hearing any presentation. . STAFF RECOMMENDATION: The Community Development Department recommends that the Vail Town Council approves Ordinance No. #16, Series of 2005, on first reading. 10. George Ruther ITEMITOPIC: First Reading of Ordinance No. #18, Series of 2005, an ordinance amending Section 12-7H-12, Density (Dwelling Units Per Acre), Vail Town Code, to allow multiple attached accommodation units within a dwelling unit located within the Lionshead Mixed Use 1 zone district, and setting forth details in regard thereto. (30 min.) ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. #18, Series of 2005 on first reading. BACKGROUND RATIONALE: On June 27, 2005, the Planning and Environmental Commission held a public hearing on a request for a final review of a text amendment to Section 12-7H- 12, Density (Dwelling Units Per Acre), Vail Town Code, pursuant to Chapter 12-3, Amendments, Vail Town Code, to allow multiple attached accommodation units within a dwelling unit, and setting ` forth details in regard thereto (PEC05-0040). Upon consideration of the text amendment request, the Commission voted 5-0 to forward a recommendation of approval of the request to the Vail Town Council. STAFF RECOMMENDATION: The Community Development Department recommends that the Vail Town Council approves Ordinance No. #18, Series of 2005, on first reading. 11. ITEM/TOPIC: Town Manager's Report (10 min..) 12. ~ ITEMITOPIC: Adjournment (12:15 a.m.) NOTE UPCOMING MEETING ART TIMES BELOW: (ALL TIMES ARE APPROXIMATE AND SUBJECT TO CHANGE) THE NEXT VAIL TOWN COUNCIL REGULAR EVENING MEETING WILL BEGIN AT 6 P.M. TUESDAY, AUGUST 16, 2005, IN VAIL TOWN COUNCIL CHAMBERS Sign language interpretation available upon request with 24-hour notification. Please call 479-2106 voice or 479-2356 TDD for information Vail Town Council Evening Meeting Minutes Tuesday, July 5, 2005 6:00 P.M. Vail Town Council Chambers The regular meeting of the Vail Town Council convened at approximately 6:00 p.m. on Tuesday, July 5, 2005. Council Members present: Rod Slifer, Mayor Dick Cleveland, Mayor Pro-Tem Diana Donovan Farrow Hitt Kent Logan Kim Ruotolo Greg Moffet Staff Members Present: Stan Zemler, Town Manager Pam Brandmeyer, Asst. Town Manager Matt Mire, Town Attorney Council members present: Cleveland, Donovan, Hitt, Logan, Ruotolo, Slifer, Moffet The first item on the agenda was Citizen Input. Mark Gordon, a member of the Special Events Commission, thanked Council for its support of the Fourth of July activities. He also thanked Laurie Asmussen of Eagle Valley Events for her efforts in organizing the parade. Representing Vail Mountain Rescue, Bob Armour thanked Mike Rose, John Sheehan, Stan Zemler and Suzanne Silverthorn for their facilitation and promotion of a recent international mountain rescue field, exercise. Armour stated crews from seven countries and 14, states, participated in the event. Rick Scalpello, president of the Meadow Drive Partnership, thanked the town for its recent efforts facilitating construction. He specifically thanked Leonard Sandoval of the town and Jim Boyd of the. Eagle River Water and Sanitation District. The second item on the agenda was the Construction Update. Public Works Director Greg Hall stated the majority of construction in town on the public right-of--way is complete. He also said the Children's Fountain is operational. Pedestrian access in LionsHead would continue to be improved. Utility work in the West Vail roundabout would continue in the evenings from 9:00 p.m. to 6:00 a.m. He then thanked Wenk and Associates for their work on streetscape design. Logan expressed gratitude to town staff for the excellent construction coordination. Slifer stated the newly renovated Children's Fountain was a great success. The third item on the agenda was the Conference Center ballot language. Town Attorney Matt Mire and town consultant Dee Wisor asked Council to review the revised ballot questions contained in the Council packets, discuss any desired changes to the draft questions, and provide direction to staff with regard fo preparation of a final draft of the ballot questions for approval by Council. Wisor clarified, "If this (ballot question) fails, it would effectively repeal the 2002 question." Ruotolo expressed concern regarding proposed increased taxes for guests (increasing only lodging taxes) out of fear of harming small and medium-sized hotels. Moffet moved to direct staff and consultants pursuant to the second option (emphasizing incremental language) of the two questions presented. Logan seconded. The motion passed unanimously, 7-0. The fourth item on the agenda was the Consent Agenda approval of the 06.07.05 & 06.21.05 Minutes. Ruotolo moved with Moffet seconding a motion to approve the 06.07.05 and 06.21.05 minutes. Donovan requested a minor amendment to item ten on the 06-21-05 meeting, regarding comments she had made in reference to a resolution honoring Betty Ford. The fifth item on the agenda was the Timber Ridge Affordable Housing Corporation (TRAHC) Board Update. Town Manger Stan Zemler summarized the redevelopment request for proposals process. He emphasized, "VVe don't want to get too far into concepts." Zemler stated by the 14~' of September, it is possible very preliminary ideas will be discussed with Council. "We want to take our time with the concept phase." Mire stated a written agreement between the two entities was needed. Zemler suggested an advisory committee be formed with the TRAHC board and two reps from the Housing Authority and Council. Moffet encouraged the suggestion and volunteered to serve on the committee. Ruotolo and Logan volunteered as well. The sixth item on the agenda was the I-70 Noise Quarterly Update. Police Chief Dwight Henninger provided an update of the Police Department's year long education and traffic enforcement pilot program on I-70. Staff recommended Council authorize the following: 1. Continuation of the I-70 noise and speed education and enforcement program by the Police Department, at a cost of $24,000 for the remainder of 2005. Henninger and Zemler recommended. I-70 Noise Mitigation capital funds be used for funding this project. 2. Direct the Town Manager to include this additional peace officer position in the 2006 budget request. To date, the program has resulted in 900 stops and 150 tickets. Henninger thanked Silverthorn for efforts in promoting the program. The recently completed community survey indicated 78% of respondents were aware of the program and 44% had changed their driving behavior. Henninger stated he believed the trucking community had changed its behavior as well. He then thanked Hall for working with the Colorado Department of Transportation (CDOT) to provide additional signage along I-70. Moffet asked what else had .been going on toward noise reduction. Zemler stated, "We have turned the heat up on quiet asphalt." Hall reported CDOT continues work on the development of an asphalt mixture suitable to alpine .environments. Hall said voided (porous) asphalt seemed to be the most effective- in reducing noise. Zemler stated he would soon update Council on his efforts to receive federal funding for a quiet asphalt pilot program. Henninger stated his officers needed more work and training on utilizing noise meters. Moffet stated, "We have to keep this up. I think its working.° Cleveland requested a full time position be created to provide 40 hours of enforcement on I-70 per week. Donavan stated the town should: request funding from the county for I-70 speed enforcement. Moffet moved to include an additional peace officer position to provide 40 hours of noise enforcement a week on I-70 in the 2006 budget, with Cleveland seconding. The motion passed unanimously, 7-0. The seventh item on the agenda was the Review of Vail Visitor Information Center Proposals and Selection of Third-Party Operator. Zemler stated the town solicited proposals to operate and manage the Vail Visitor Information Centers beginning Oct. 1, 2005, and continuing for athree-year period. The Visitor Information Centers are currently managed by the Vail Valley Chamber 8~ Tourism Bureau (WCTB) under a contract ending Sept. 30, 2005. In preparation for the solicitation, of proposals, a Council Visitor Information Center Committee (CVICC) was established to develop recommendations and strategies for a fair and impartial decision-making process. That process included preparation and distribution of a Request for Proposals (RFP) issued April 20, 2005; responses from three potential operators by the June 1, 2005, deadline (Vail Brochure Delivery, Vail Chamber & Business Association (VCBA) and WCTB); evaluation of the proposals by the committee; and a selection recommendation forwarded to Council for consideration. The CVICC unanimously recommended selection of Vail Brochure Delivery to operate the Vail Visitor Information Centers. The Committee further requested Council authorize the Town Manager to negotiate a three year operating contract with a not to exceed amount identified by Council. It was additionally recommended the contract include six month reviews during the first and second years. Zemler noted a lack of enthusiasm when interviewing the VCBA and WCTB. He emphasized the importance of developing new ideas to match the changing times in Vail. He also stated he was looking for an organization aligned with the direction of the town. "We need clear separation and focus." Ruotolo, CVICC member, stated Vail . Brochure's mission statement and singular focus impressed her. Hitt, CVICC member, thanked the three groups for their contributions to the community. He stated it became apparent after studying information centers around the state that Vail needed to change. He said he was encouraged by Vail Brochure's, "enthusiasm to raise the bar." During the public comment period, Bill Jewitt, Mike Griffin, Sue Mason, Robert Aikens, Emily McCormick, Katie Barnes, Dave Dempsey, Amber Keith, Rob Levine, Mark Gordon, Brian Nolan, Mickey Cooke, Annette Ramer and Iva Scott spoke in support of the WCTB. Joe Staufer stated he was concerned someone (Vail Brochure) was being set up in private business by way of public subsidy. Stephen Connolly encouraged Council to accept the staff recommendation of Vail Brochure. Bobby Banks and Mary Ellen Welch, owners of Vail Brochure, spoke in support of their potential. Responding to public comment Hitt stated, "I don't see anyone leading the charge for valley wide marketing down valley." Ruotolo emphasized Welch had previous experience operating visitor centers in Steamboat Springs. Silverthorn stated she appreciated Vail Brochure's emphasis on aesthetics and their fresh ideas approach. Moffet "stated for the record he owns a company with membership in the WCTB. "Successful business people have to execute to make the mortgage payment...lt generates a different kind of desire." Cleveland began his comments by stating he supported the town running the centers, "although change might need to occur." Donovan stated she supported Vail only, and the town needed to be in control of the asset (visitor centers). "We need to go in a new direction because we are tired of dealing with petty issues.° Logan stated he did not think now was the time for change and noted the group with the most experience had the lowest bid. Slifer stated change right now might not be prudent, and experience is important. He also agreed with Donovan stating he believed it should be a one year contract. Moffet moved to support the staff recommendation of a three year contract with six month mandatory reviews. Hitt seconded. Cleveland supported one year, with a two year extension. The motion passed 5-2, with Logan and Slifer dissenting. The eighth item on the agenda was the Colorado Inspection Agency (CIA) contract for conducting plan review and inspection services for the Four Seasons project. Community Development Director Russ Forrest and Chief Building Official Charlie Davis stated the town is experiencing an unprecedented amount of construction. The Chief Building Official for the Town of Vail met with general contractors from the various commercial projects to determine the time frame and quantity of inspections required for the various commercial projects. At the same time, staff is mindful of the direction received from Council that residential builders should not be unduly impacted by the high level of commercial construction. The town has budgeted additional resources and anticipated the need to contract resources for conducting plan reviews. At this time staff has concluded demand for building inspections if Four Seasons or another large project initiates construction will exceed the town's capacity to provide those services. Staff obtained proposals from four companies that provide inspection and plan review services in the event contract resources would be needed. CIA provided the most qualified staff and had the best experienc8 and references. They also provided a competitive rate when compared to their competition. Davis said he sent out fifteen RFP's. He also emphasized CIA serves as a building department in two other Colorado jurisdictions. Hitt asked if Davis would have final say over decisions and interpretations. Davis answered yes. Logan clarified revenue from Crossroads would pay for the services in 2005. Logan asked why the work load wasn't anticipated. Forrest stated plan reviews were anticipated, although the intensity of inspection demands was not. Zemler stated the. contract was not cost neutral. Cleveland asked if the permit fees covered the actual cost of services. Forrest stated the town's fee structure was back end loaded. Cleveland also inquired about liability issues. Mire stated CIA would assume the liability. Moffet moved with Ruotolo seconding a motion to approve. The motion passed unanimously, 7-0. Donovan expressed concern over fire inspections. Zemler stated he was not prepared to discuss fire inspections. Representing CIA, David Thomson stated he had 24 employees in Colorado and the company had the capacity to service the Vail projects. The ninth item on the agenda was the Joint Use Agreement for the Town of Vail Gymnastics Center. Town Attorney Matt Mire asked, Council to authorize the Town Manager to execute a Joint Use Agreement for the Gymnastics Center between the town, Eagle County School District RE-50J and the Vail Recreation District (VRD). The agreement is for the joint use of the 8;742 sq. foot gymnastics center owned by the town and located at 545 N. Frontage Road. The gymnastics center was funded in part by the town, the, school district,. VRD, Eagle River Water & Sanitation District and Vail Resorts. The primary purpose of the facility is to provide gymnastics training for residents of the town- and Eagle County while also providing additional recreational uses for the school and community at large. Mire clarified ,there was currently a lease in place: Cleveland asked why a ten year term was proposed. "I am concerned with long-term leases on new projects.fl Brandmeyer stated she believed it was because it' coincided with the termination of the town's other leases with the VRD. Moffet clarified the town would not be held° responsible for normal maintenance. Brandmeyer stated the town had already received the yearly capital construction payment and capital- improvement sinking fund 4 allocation. Moffet moved and Ruotolo seconded a motion to approve. Mire was asked to clarify a 180 day termination provision. The motion passed unanimously, 7-0. The tenth item on the agenda was the Town Manager's Report. There was no report. The eleventh item on the agenda was Adjournment. Moffet moved and Hitt seconded a motion to adjourn at approximately 8:30 p.m. The motion passed unanimously, 7-0. Respectfully Submitted, Rodney E. Slifer, Mayor ATTEST: Lorelei Donaldson, Town Clerk Minutes provided by Corey Swisher. Vail Town Council Evening Meeting Minutes Tuesday, July 19, 2005 6:00 P.M: Vail Town Council Chambers The regular meeting of the Vail Town Council convened at approximately 6:00 p.m. on Tuesday, July 19, 2005. Council Members present: Rod Slifer, Mayor Dick Cleveland, Mayor Pro-Tem Diana Donovan Kent Logan Kim Ruotolo Not Present: Farrow Hitt Greg Moffet Staff Members Present: Stan Zemler, Town Manager Matt Mire, Town Attorney The first item on the agenda is Citizen Input. Rick Sackbauer, representing the Vail Valley Exchange, thanked Council for its continued support of the exchange program. He stated a local group,, including Councilwoman Ruotolo, would be embarking to Australia very soon. He then reported he was working with the ski club in Mansfield, Australia, to develop an exchange with Ski Club Vail. Brian Nolan, representing the Vail Valley Chamber:and Tourism Bureau (WCTB), announced a board meeting of the organization would be held in the near future. He then asked if Council preferred to support the message "Vail only" in regards to potential marketing. Donovan emphasized the message "Vail first," and stated it was illegal to . spend. local marketing dollars supporting activity outside of town. limits. Logan suggested the WCTB review its organizational structure to better accommodate. avail-only or Vail- firstapproach. Kaye. Ferry announced the. outdoor film screening of "E.T.n at Crossroads on Meadow Drive was a success with approximately 300 attendees. Ferry asked. for the town's help in cleaning the parking lot in preparation for the second show. The second item on the agenda was a Construction Update. During an update on construction, Public Works Director Greg Hall announced work continues with installation-of a new water ,line. on East Gore Creek Drive;. while- Sundial .plaza in LionsHead would be paved shortly. The West Vail interchange will. be open to two way traffic very soon and the Vail Plaza Hotel is starting on temporary stone sewer work on the Frontage Road. ~ Zemler. then stated there would be potholing on Vail Road as part of the Four Seasons project. 1 The third item on the agenda was a Timber Ridge Affordable Housing Corporation (TRAHC) update. The TRAHC provided Council with financial and operating information based on reporting requirements. Council also requested updates concerning progress toward mold remediation and sale or redevelopment of the property (Timber Ridge). This update, by TRAHC Chairman Zemler included an overview of a potential agreement between Council and TRAHC. This agreement is recommended by legal counsel. The agreement would have TRAHC employ the town as its agent to solicit proposals for redevelopment. The Request For Proposals (RFP) for Timber Ridge will be issued by the town and the town's recommendation would then be forwarded to TRAHC, who upon payment of their debt would make the property available for redevelopment. Logan inquired about the financial reporting of the $700,000 loan recently made by the town to the TRAHC as well as accounting for the depletion of the replacement reserve held by US Bank, as required by the bond documents. Housing Coordinator Nina Timm said the financial reports provided were through May, 2005; the loan was not funded until July, 2005. Camp will follow up with the auditors regarding accounting for the depletion of the replacement reserve. Bill Jewitt asked about what he perceived was the potential structuring of an endless loop between Council and the TRAHC Board. Mire stated the TRAHC Board was merely divesting its authority to Council to determine the appropriate use of the property. Jim Lamont, representing the Vail Village Homeowners Association, confirmed the RFP has been posted on the town's web site at www.vailgov.com. He also asked if any non-deed restricted residential units were proposed for the property so as not to create a ghetto. Housing Coordinator Nina Timm responded the property as it currently exists is a special development district with no underlying zoning. The fourth item on the agenda was Local Licensing Authority (the "LLA")Appointment. There was one vacancy on the LLA. The town received one application for the vacancy. Cleveland moved and Ruotolo seconded a motion to appoint Robert McKown. The motion passed unanimously, 5-0. All LLA members must be citizens of the United States, qualified electors of the town,. and have resided in the town for not less than two years preceding appointment, and shall have no direct financial interest in any license to sell alcoholic beverages or any location having any such license. Duties of the five- member board include reviewing town liquor license applications. Slifer thanked outgoing LLA member Rob Rothenberg for his three years of service on the board. The fifth item on the agenda was a Vail Conference Center Update. Community Development Director Russ Forrest announced on June 7, the Council authorized additional funds to continue working on the conference center. As part of that authorization, $30,000 was budgeted for additional operational studies. He then said the Conference Center Oversight Committee would like to retain a qualified professional to evaluate price sensitivity for a proposed increase in the lodging tax and its impact on lodging. The Committee requested Council authorization to spend up to $10,000 to evaluate this question. He then reported July 13, the Committee met and reviewed the current conference center ballot language. The lodging representatives on the Committee requested two issues be discussed with the Town Council: 1. Complete an analysis of price sensitivity in the resort lodging market place to increases in lodging tax. Specifically the lodging community would like to know if raising lodging tax will negatively impact lodging business or if there is a threshold which should be recognized. Currently a guest checking out of a Vail lodging property pays an 11.8% tax (sales and lodging tax). 2. Request to Council to discuss sun setting the lodging tax. The Lodging community would be very interested in sun setting all or a portion of the tax. This matter could be considered more fully once a final tax increase is determined based on a guaranteed maximum price from Mortenson Construction which will be available in August: Cleveland stated conference center funds were not intended to provide sensitivity tests. Donovan stated she did not believe there was any value in it. Ruotolo stated she did not believe the lodging community supported an additional lodging tax. Logan stated he did not believe there was any elasticity for the percentage increase of lodging tax increase being discussed. Council agreed suggesting a sales tax was unacceptable. The sixth item ,on. the agenda. was the First- Reading of Ordinance No. #1,: Series of 2005, an~ `Ordinance establishing Special Development District No. #39, Crossroads. The Community Development Department recommended Council table the First Reading of Ordinance No. #1, Series of 2005. Cleveland moved and Logan seconded a motion to table. The motion passed unanimously, 5-0: The seventh item on the agenda was consideration of an Intergovernmental Agreement ("IGA'°) between Vail Square Metropolitan Districts 1, 2 and 3 (the "Districts) and the Town.: of Vail. regarding operation and maintenance of the On-Site Streetscape Improvements and the LionsHead Place Improvements. The IGA was approved as to form, as Exhibit D, to the Consolidated Service Plan for Vail Square Metropolitan Districts 1, 2 and 3, which was approved by the Town Council via Resolution No. 8, 2005, on May 3, 2005. It was represented at that time that a final version of the IGA would be brought back to Council• for review and approval prior to its execution. No substantive changes were made to the IGA since Council last reviewed it on May 3, 2005. Logan moved and Cleveland seconded a motion approve. The motion passed unanimously, 5-0. The eighth item on the agenda .was Resolution No. `#12, Series 2005, A resolution approving. the amendment to core site development agreement (the "Amendment") among the Town of Vail (the "Town"), Vail Reinvestment Authority (the "Authority"), and the ,Vail Corporation, d/b/a Vail. Associates; Inc., a Colorado corporation ("Vail Associates"), which amendment pertains to certain respective rights and responsibilities of the• Town, the Authority and Vail Associates in relation to the core site development. proposed to be undertaken by Vail Associates and- affiliates: The topic was an amendment to the Core Site Development Agreement ("DIA"). Because the original DIA .was negotiated and adopted prior to final- design approvals, there were several housekeeping matters that needed to be amended in order to comply with certain conditions adopted by the PEC. The main items are as follows: 1) The town is agreeing to various easement dedications subject to final review by the town staff._ These were anticipated by the original DIA and the Amendment sets them out with specificity: 2) The town is agreeing to designate Vail Associates and its designees (contractors and utility companies) to install the off--site improvements. The original DIA mandated Vail Associates do the work. This amendment authorizes and, enables Vail Associates to do the work. 3) The. town and Vail Associates are agreeing as to the areas of responsibility on an ongoing basis for utilities and off-site improvements. The original DIA did not specify in detail these areas. 4) The town is agreeing to give Vail Associates a .license agreement for various encroachments for footings, etc. The original DIA called for transfer of ownership of the property. 5) The town is agreeing to transfer the $4,300,000 obligation for additional parking to the Core Site. The Original DIA tied the obligation to 3 the Gore Creek Town homes. This was an accounting issue which served to properly allocate the money to the Core Site. The condition, as before, is a personal obligation of Vail Associates and was not conditioned upon the building of the Core Site. The amendment does not limit the effect of any condition to closing under the original DIA which presently remains unsatisfied. The amended agreement will update the original Core Site Development Agreement based upon all current approvals as set forth above. Due to apre-determined conflict of interest, Slifer recused himself from the item. Ruotolo moved with Logan seconding a motion to approve. The motion passed, 4-0. The ninth item on the agenda was Resolution No. #13, Series of 2005, a Resolution approving the parking capital investment agreement between the Town of Vail (The "Town") and the Vail Corporation, D/B/A Vail Associates, Inc., A Colorado Corporation (Vail Associates") which agreement relates to the Arrabelle at Vail Square Development by Vail Associates. Resolution No. #13, Series 2005, operates to amend the original Parking Capital Investment Agreement. The amended agreement will transfer the $4,300,000 obligation for additional parking to the ~ Core Site. The obligation was originally tied to the Gore Creek. Town homes. This was an accounting issue which served to properly allocate the money to the Core Site. The condition, as before, is a personal obligation of Vail Associates and is not conditioned upon the building of the Core Site. Ruotolo moved with Logan seconding a motion to approve. The motion passed 5-0. . The tenth item on the agenda was Resolution No. #14, Series 2005, a Resolution approving the adoption and confirming the effect of the intergovernmental agreement by and among the Authority, The Vail Square Metropolitan District No.'s 1, 2, and 3, and the Vail Corporation, D/B/A Vail Associates. Resolution #14, Series 2005, is simply an acknowledgement by the Town Council that the condition of approval for the Consolidated Service Plan for Vail Square Metropolitan Districts 1,. 2 and 3 (the "Districts°) has been satisfied. Cleveland moved with Ruotolo seconding. ,The motion passed unanimously, 5-0. The eleventh item on the agenda was the Town Manager's Report. Zemler stated House Bill 1177,. commonly known as the `Interbasin Compact' or the `Colorado Water for the 21~ Century Act. He then reported the bill created nine basin roundtables covering geographic areas in Colorado. These roundtables would serve the primary bodies for on-going discussions related to needs within each basin and the basins' interaction with each other. Caroline Bradford, Eagle River Watershed Council, coordinated a meeting of the municipalities on July .11: At this meeting., the following towns were represented: Basalt, Gypsum, Eagle, Avon, Mintum and Vail. Consensus on the municipalities' single appointment was required by July 15, 2005. The county will also be allowed to i~ppoint one candidate. Unanimously, the, six towns agreed to nominate Chuck Ogilby as their collective representative. The twelfth item on the agenda was. Adjournment. Logan moved with Ruotolo seconding a motion to adjourn at approximately 6:45 p.m. The motion passed unanimously, 5-0. Respectfully Submitted, 4 Rodney E. Slifer, Mayor ATTEST: Lorelei Donaldson, Town Clerk Minutes provided by Corey Swisher. MEMORANDUM TO: Vail Town Council FROM: Community Development Department DATE: August 2, 2005 SUBJECT: First Reading of Ordinance No. 17, Series of 2005, amending the Vail Land Use Plan pursuant to Chapter VIII of the Vail Land Use Plan, adding the Chamonix Parcel as Tract 43 in the "Inventory and Assessment of Town Owned Property" contained in Chapter VII, Community Facilities, and setting forth details in regard thereto. Applicant: The Town of Vail, represented by Suzanne Silverthorne Planner: Matt Gennett DESCRIPTION OF THE REQUEST The applicant, The Town of Vail, represented by Suzanne Silverthorne, is requesting a first reading of Ordinance No. 17, Series of 2005, an ordinance amending the Vail Land Use Plan pursuant to Chapter VIII, Vail Land Use Plan, adding the Chamonix Parcel as Tract 43 in the "Inventory and Assessment of Town Owned Property" contained in Chapter VII, Community Facilities, and setting forth details in regard thereto (Attachment A). The purpose of Ordinance No. 17, Series of 2005, is to establish a land use plan for a fire station and other uses on the Chamonix Parcel, located at 2310 Chamonix Road/Tract D, Vail Das Schone Filing 1 (Attachment B, Vicinity Map). The staff and applicant are requesting that the Town Council approve Ordinance No. 17, Series of 2005, upon first reading. II. BACKGROUND On July 20, 2004, upon the recommendation of acouncil-citizen-staff review committee, the Vail Town Council authorized the Town Manager to hire the planning team of Davis Partnership/Michael Hazard Associates to facilitate a master land use plan centered on a fire station for the town-owned Chamonix property at Tract D, Vail Das Schone Filing 1/2310 Chamonix Road. On January 24, 2005, the Planning and Environmental Commission (PEC) held a work session to consider a proposed draft Land Use Plan for the Chamonix parcel, hear public input, and discuss the other possible uses on site which would be in addition to the primary fire station use. On June 27, 2005, the Planning and Environmental Commission unanimously approved a proposed land use plan produced by .the collaborative efforts of the committee, staff, and Davis Partnership/Michael Hazard Associates to be used as a guide for future land uses on the Chamonix Parcel. I11. STAFF RECOMMENDATION The Community Development Department recommends that the Vail Town Council approves Ordinance No. 17, Series of 2005, upon first reading. IV. ATTACHMENTS A. Ordinance 17, Series of 2005 B. Vicinity Map C. Chapter VII -Community Facilities, 1 Inventory and Assessment of Town Owned Property, Coarse Screen of Sites, Vail Land Use Plan D. TABLE OF CONTENTS, Vail Land Use Plan E. Figure 5-W, Vail Land Use Plan, with proposed amendment F. Proposed APPENDIX F, Land Use Plan for the Chamonix Parcel 2 Attachment: A ORDINANCE NO. 17 Series of 2005 AN ORDINANCE AMENDING CHAPTER VII, PART 1, INVENTORY AND ASSESSMENT OF TOWN OWNED PROPERTY, VAIL LAND USE PLAN, PURSUANT TO CHAPTER VIII, PART 3B, PLANNING AND ENVIRONMENTAL COMMISSION OR TOWN COUNCIL AMENDMENTS, VAIL LAND ISE PLAN, TO ALLOW FOR AN AMENDMENT TO ADD THE CHAMONIX PARCEL AS TRACT 43 IN THE INVENTORY AND ASSESSMENT OF TOWN OWNED PROPERTY, CHAPTER VII,. PART 1, VAIL LAND ISE PLAN; ADD THE LAND USE PLAN FOR THE CHAMONIX PARCEL AS APPENDIX F, VAIL LAND USE PLAN; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, amendments to the Vail Land Use Plan are permitted pursuant to parameters set forth for such in Chapter VII, Pdrt 1 of the Vail Land Use Plan of the Town of Vail; and WHEREAS, the Planning and Environmental Commission of the Town of Vail held public hearings on January 24, 2005, and again on June 27, 2005, following which the Planning and Environmental Commission forwarded a recommendation of approval to the Vail Town Council of the proposed amendments based on the criteria and findings presented in the staff memorandum; and WHEREAS, staff is proposing to add the Chamonix Parcel to the list of public properties contained in the Inventory and Assessment of Town Owned Property, Chapter VII, Part 1, Vail Land Use Plan; and WHEREAS, staff is proposing to add the Land Use Plan for the Chamonix Parcel as Appendix F of the Vail Land Use Plan; and WHEREAS, Chapter VII, Part 2, Facility/Service Requirements, Fire Protection, Vail Land Use Plan, states that an additional fire station is warranted to serve the West Vail Area; and WHEREAS, the Medium Density Residential land use designation, which the Chamonix Parcel is designated, has fire stations listed as a permitted use under such categorization; and WHEREAS, the Town Council convened a neighborhood committee comprised of citizens and elected officials and commissioned a study to be performed which led to the establishment of Ordinance No. 17, Series 2005 this ordinance; and WHEREAS, the Town Council finds that the proposed text amendment furthers the general and specific purposes of the Vail Land Use Plan, and those of Title 12, Zoning Regulations, Vail Town Code; implements and achieves the applicable elements of the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; demonstrates how conditions have substantially changed since the adoption of the subject plan; and provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives; and WHEREAS, the Vail Town Council finds it in the interest of the public health, safety, and welfare to adopt this amendment to the Vail Land. Use Plan. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. The proposed text amendments are as follows: (Deletions are shown in c+riLe +~r,,,,,.ti~additions are shown bold) Chapter VII -Community Facilities, 1 Inventory and Assessment of Town Owned Property, Coarse Screen of Sites (Attachment C) Tract 43 -Chamonix Parcel The 3.6 acre Chamonix Parcel has been identified for the "location of a fire station as the primary use on the site and which may include other Town of Vail uses. Secondary uses on the site include a medium density residential development, recreational areas, and open space buffers. A Land Use Plan depicting the location of the future uses has been prepared as the result of a comprehensive planning process and is included as Appendix F of this document. TABLE OF CONTENTS (Attachment D) (...)APPENDIX E APPENDIX F CHAMONIX PARCEL LAND USE PLAN Ordinance No. 17, Series 2005 2 Figure 5-W (Chamonix Parcel vicinity shaded and numbered - Attachment E) Appendix F, Land Use Plan for the Chamonix Parcel (Attachment F) Section 2. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 3. The Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. Section 4. The amendment of any provision of the Town Code as provided in this ordinance shall not' affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective.date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 5. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. Ordinance No. 17, Series 2005 3 INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 2"d day of August, 2005 and a public hearing for second reading of this Ordinance set for the 16th day of August, 2005, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Rodney E. Slifer, Mayor ATTEST: Lorelei Donaldson, Town Clerk READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this 16th day of August, 2005. Rodney E. Slifer, Mayor ATTEST: Lorelei Donaldson, Town Clerk Ordinance No. 17, Series 2005 4 m ~ F`~,~: Tract D, Vail Das Schone Filing 1 (Chamonix Parcel) U yam". Q „c .,, -'I' 2310 Chamonix Road Vail Town Council .August 2, 2005 ~,~~tr S! ,,~ ~~` ~ ~;'t= _~~~~ _a .~~ ~- F~ ~ 1tL ~= ` ' 1 ~~~ T .Z,~~ ~i ~`' r 1l~ } xl ~ x -; ~ ~~ : J "rrY " IYI l ~. ~ ~I r ~ -~ , ,r- e ~y ~~~ ~ ~ >4~ ~. r l r ~ p,' ,/.~<T rt rte: ~' r`, ~ i '. ~ Y ~ s I ~ ~ 3 ~ ~_... '~ ~$?;`~ '~ ,r ~ ~ _i1 fit. ~'k+rl' ~~~ ~ *~~ a ~'r" r ~ .,F i y '. ~' ~., ;~ d f.1 y 4 .~ ~~ ~ ~" ~~ ti F±, ~, e ~M.~ / i. _, f ~ r ~~ E ~ t.. 47 -: ~`4 J~~'-~ 6- ~ ., it ~.~< ~_ _ , ~, ~. ._ ~- .g 3 ~ r~ i4 1 ~. ~r*"^ J r it 7r:~' ~ w~l ~ '~-j, ti. ,~ c i i_, r ". ~ ~ i t .-C~~ .I ~~.fi sT ,. ,, ~ ;~ ~ a S ~ ~ _ ~ ti ~ ,, +..i:A' ~ rr ~ i r { ~- ~ ~ ,, ) ' i i~ ~ ~ "~ ~~ F ~ ~~~ `'L " if ~, ~' ~ ''~ i ~ .S :: .. •~~ v 4 :c r _.. v c ~_ ,~~~ ~ ~ 4, ,.f `:{ "Y fir, .~ -: any t 7r `. ~.~.. ( ~ r z ,~ 4 I` J i,~ I r t~_ ~~n~ ~~ t ~~ r" ~ ~ r ~~ ~~ . ~ ~' . r~ - '~ z ,~ ~ ~' ~, I r , r I ~ '.~,c w -,. ~ .r- , 3 t '9 .: {~ Y - r "I!;'~C'a ~ 1;t E'..ank ~, 1' s. y5 ~,r .r .k•; ~µ" . ..1~~ .~ ~,+~ ! ~ F Sr a \ ~ ~ any 'a ~ C~ ~ ~ J ~ : . ~ r~I ~ a g r ~ t "~3~ t ~". . ~~t 4`i r`~t ~~M ./ r ~ r L ~ ~7 '^+~'~'~ s ~~ ~Y!, 3 st /-- ~`'':4, ~ y f ~t~ ~ 'J Ci' "4ta~~~a"` ~d',i <>r-~' t" l`r~i F,- ~Fhi ~.r ~^' +~~f ~ {tic,, ,r - _ ~, t A~ >~ ~ ~ ~ ~ ~P ~ ~ a ,R~ n~ ~ -'°~ _ l~ yr~ the ~ ~ "~ ' ~a a: w ~, <~f ~~~ ~~ ~ .._.-ut. ~~~ ~ ~ A yf ~~'" `'~`` k,.'~1. ~, ~ r i^Jrst Vail , - ~ ,~ t? b r; ~ f ! / ~- f~ ~~ E.if ~~ ~ r ~ ~ y c ~ ~'. r ~ ~ ,1; r > ~,~ .~~.. r~'qy~ ~ e, ' •~ -.,~r~' ® 100 0 100 Feet ~ f~ .150/ This map was created by the Town of Veil GIS Depadmanl. Use o/this map should be for general purposes only. The Town of Vail does not wanam the accuracy of tha Information mnlained herein. (pared Ilna work is approximate) Attachment: C CHAPTER VII - COMMUNITY FACILITIES 1. Inventory and Assessment of Toivn.Qwned Property The initial section of the study provides a general evaluation of the suit- i ability of the numerous .town owned sites to accommodate development. The term development is used in its generic sense in that land which may ~ currently be void of any activity or could be improved or developed to .. i accommodate a public or private use. ' An initial screening of the properties is presented in which the site and location is presented. The physical character of the site is briefly described as is its current use. Finally, an assessment of the suitability of a site is based on a number of factors including the following: ~ - Size. The;site may be too small to accommodate any active or passive ~ function. ~ - Physical Constraints. The_site .may be subject to flooding, may con- . tain geologic hazards or severe slope conditions. - Accessibility. The site may contain significant limitations on access which may suggest only certain types of use. Existing Use There may be an existing public use on the site which is providing a valu- ~> able service to the community and likely not to change. ~ (Note: for pur- ~'=` poses of this assessment, the planning horizon of the Year 2000 is used as .the basis for commenting on future needs of the community.) ~_ Restrictions on Use L A number of parcels of land which have been deeded to the Town of Vail con- _. tain convenant restrictions as to their use. These restrictions could pre- elude certain activities and dictate: site utilization. This initial evaluation would be termed a coarse screening of the town properties: The intent is to identify those parcels which are likely not to change from their current use or activity and to eliminate them from - further discussion. Conversely, those tracts of land which do represent opportunities fo;r change or development will be analyzed further for their potential. Coarse Screen of; Sites Following is a listing of identified Town of Vail owned properties and comments as to their character and suitability. The parcels are numbered generally from the east part of the community to the west and are located on Figure 5 - Inventory of Town Properties. _ 42 • _. ... - Attachment: D - „ _ .. • TABLE OF CONTENTS ~ . PAGc CHAPTER I INTRODUCTION ~ - 1 CHAPTER II LAND USE PLAN GOALS - - 6 CHAPTER III _ OPPORTUNITIES ANO CONSTRAINTS" - ;:~. - - ;. - 9 ~- - " CHAPTER IV EXISTIraG LAND USE -_ ~ • ': - - 11 ~ti CHAPTER V ~ SOCIOECONOMIC PROFILE - 17 CHAPTER _ VI PROPOSED LAND USE - ~~ ~' ~ 29 i CHAPTER VII COMMUNITY FACILITIES _ - 41 ~. CHAPTER. VIII IMPLEMENTATION ~ ~ - _ ' 59 .. -.. APPENDIX - A -- . CO;~C4UNITY QUESTIONNAIRE - SUhU•1ARY RESULTS ~ _: A-1 .. .. . 6 1 - - APPENDIX B ADDITIONAL GOALS - B-1 - 2 APPENDIX C ADDITIONAL SOURCES C-1 APPENDIX D ECONOMIC AND DEMOGRAPHIC OVERYIEiI D-1 - 12 - j APPENDIX -~ E TOWN OF VAIL FORECAST METHODOLOGY E-1 - 16 - % •\•\ .\ 6 o~ / • \ 'tf~'~9e~ i ~ g~llar Creek Fd. \.J • Bit ... - ~ •\ ,.. +• ~ •\ ... -:% ~ . •. ' /~•\: % . ~ \• . \ •-~ Chamonix tJr• \• ^ ~v _ / ~o .\~ ~\~ ~% ' / ~ T'~ h pr1t1~`i ~~~~: 6~ • ~ / ~ is ~1p i ... .. ............. ~i • 40 d a ...:.....,:: G~ . ~98v ~ r•.% ~ G~uoa s~i9v. ,n •~ ~~treek or ham °/ ~o yr / pa p~' k~ Gore / \•\' ,7a'a9L•` ~ 43 sir?~~..~• vermaru Pd~ . \• \ .` .` tlerlllower Blvd, "'pnnrc ~ ~ ~6o°•~a'~ \•~./ '~'a~i°'ai~ •\,J/ Figure 5-W ~~~~=~: 9e~e°~ °'BS~ Inventory. of . Town Owned Property - - _. Eland '. 'a~'a ~ ~, . ~'0S. ! ~ LAND USE PLAN - KEY /' ~•e ~ 1 ~)- - ~~ D rt Land Uss Plan Boundary.-..~, - ~... ~ . ~ ^nd Town Boundary.-.. _ ~ .~, ' _ - are the same s~caPl whw ^Aown. ~"' r • M+ ' o.r. _ _ E.tiar_ tD r~1. m L1 Land Use Plan Summary: The land use plan defines four areas on the Chamonix property. The blue area defines the proposed fire station location. The fire station is located on the southernmost portion of the site so if will have the lowest impact to the existing residential neighborhood. Its uses are similar to the existing heavy service uses along the North Frontage Road.. The yellow area defines a development zone that would be used as a transition zone between the heavy service district to the south and the residential neighborhood to the north. This development zone could include medium density residential uses. The orange areas define zones for recreational use that could include small parks or open space. The green zone defines an open space buffer that would blend the development zone and the fire station into the existing neighborhood. -~''/ } I ~,,. / ~ /' / \ 1 ~.. RESIDENTIA\ -' ~ / I I ~__ I RESIDENTIAL ~ I ~ ~ i I ' ~ ' RESIDENTIAL ' i _ ~ r - i /~ L,I f ~_~ ~~i ~~ ~ ~ ~ ~ _, ~~ ~ ~ ~ RESIDENTIAL CHAMONIX LANE \ l .~ ~. ----~ OPEN SPACE ---_ `~ ~ - --X -. Msp~ u -- ~ n -_ - - _ _~ _ CF ~~ __ .~ ~_' .------- ~ n p j -- _ -~ ~~ ------ .--. i a Q ~~ -- I I - i ~ I I ''~ mxsYYXS~XEE~ ~Xn°Y, EUNYiC6. fLA014W AK11 GRGtlbal°i R10.RRdl9~ 138YFARENBION b17E N0. Attachment: F z° wp ~ ~ 0_w 0 0 ^ tL~ Oa >~0 o0J ~Z ~LLO 00 F ~ zIJ ~ Q ~ > U ~~ 0 ^ LAND USE PLAN ~ LAND USE PLAN '° '° °° ~, , _,o_o ~. B>_ w>E m/a/m dUYN BY YR, BP aR'D BY 9!, YX BIfEi iIIF ll Ap IYRess eL saes ~~ L1 D.P.A. PROJECTB aax.ao MEMORANDUM TO: Town Council FROM: Community Development Department DATE: August 2, 2005 SUBJECT: Ordinance No. 16, Series of 2005, an ordinance amending Title 12, Zoning Regulations, Vail Town Code, to amend the Commercial Service Center (CSC) District to add "bowling alley" as a conditional use and to add a definition of a "bowling alley" to the Vail Town Code, and setting forth details in regard thereto. On April 25, 2005, the Town of Vail Planning and Environmental Commission voted 6-0-0 (Gunion absent) to forward a recommendation of approval for a proposed text amendment to the Commercial Service Center (CSC) District to add "bowling alley" as a conditional use to the District and to add a definition fora "bowling alley" to the Vail Town Code. On June 21, 2005, the Town Council tabled the First Reading of Ordinance No. 16, Series of 2005, without hearing any presentation. Attached to this memorandum is a copy of Ordinance 16, Series of 2005. Text which is to be added is indicated as bold italics. The Town Council can vote to approve, approve with modifications, or deny Ordinance No. 16, Series of 2005. The Community Development Department recommends that the Vail Town Council approves Ordinance No. 16, Series of 2005, on first reading. ORDINANCE NO. 16 Series of 2005 AN ORDINANCE AMENDING SECTION 12-2-2, DEFINITIONS OF WORDS AND TERMS, VAIL TOWN CODE, TO CREATE A DEFINITION FORA "BOWLING ALLEY" AND SECTION 12-7E-4, CONDITIONAL USES, VAIL TOWN CODE, TO ALLOW FOR THE ADDITION OF A "BOWLING ALLEY" AS A CONDITIONAL USE WITHIN THE COMMERCIAL SERVICE CENTER DISTRICT AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Planning and Environmental Commission of the Town of Vail has held public hearings on the proposed amendments in accordance with the provisions of the Town Code of the Town of Vail; and WHEREAS, the Planning and Environmental Commission finds that the proposed amendments further the development objectives of the Town of Vail; and WHEREAS, the Planning and Environmental Commission of the Town of Vail has recommended approval of this text amendment by a vote of 6-0-0 (Gunion absent) at its April 25, 2005, meeting, and has submitted its. recommendation to the Town Council; and WHEREAS, the Vail Town Council finds that the amendments are consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and WHEREAS, the Vail Town Council finds that the amendments further the general and specific purposes of the Zoning Regulations; and WHEREAS, the Vail Town Council finds that the amendments promote the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF Ordinance No. 16, Series of 2005 VAIL, COLORADO, THAT: Section 1. Section 12-2-2 (Definitions) of the Vail Town Code shall hereby be amended as follows: (Text which is to be added is indicated as bold italics.) BOWLING ALLEY: A recreation and entertainment facility where the sport of bowling takes place. A bowling alley may also includes accessory entertainment facilities and uses such as eating and drinking facilities, retail shops, night clubs, arcade facilities, billiards, ping pong, darts, meeting rooms, and similar uses. Section 2. Section 12-7H-4 (Conditional Uses) of the Vail Town Code shall hereby be amended as follows: (Text which is to be added is indicated as bold italics.) Any use permitted by Section 12-7E-3 of this article, which is not conducted entirely within a building. Bed and breakfast as further regulated by Section 12-14-18 of this title. Bowling Alley Brew pubs. Child daycare center. Commercial laundry and cleaning services. Dog kennel. Major arcade. Multiple-family dwellings and lodges. Outdoor operation of the accessory uses set forth in Section 12-7E-5 of this article. Private clubs. Public buildings. Public park and recreation facilities. Ordinance No. 16, Series of 2005 2 Public utility and public service uses. Ski lifts and tows. Theaters, meeting rooms, and convention facilities. Type 111 employee housing units (EHU) as provided in Chapter 13 of this title. Section 3. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. Section 4. The Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. Section 5. The amendment of any provision of the Town Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 6. All bylaws, orders, resolutions and ordinances, or parts thereof, Ordinance No. 16, Series of 2005 3 inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 2"d day of August, 2005, and a public hearing at 6:00 p.m. for second reading of this Ordinance set for the 16'h day of August, 2005, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. ATTEST: Lorelei Donaldson, Town Clerk Rod Slifer, Mayor READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this 16'h day of August, 2005. ATTEST: Lorelei Donaldson, Town Clerk Rod Slifer, Mayor Ordinance No. 16, Series of 2005 4 ORDINANCE NO. 18 SERIES OF 2005 WHEREAS, Vail Resorts Development Company has submitted an application for a text amendment to .the Lionshead Mixed Use 1 zone district to allow for multiple attached accommodation units within dwelling units located in the Lionshead Mixed Use 1 zone district, subject to the issuance of a conditional use permit; and, WHEREAS, the Zoning Regulations currently allow only one attached accommodation unit per dwelling unit; and, WHEREAS, the Planning and Environmental Commission of the Town of Vail has held a public hearing on the proposed amendments in accordance with the provisions of the Vail Town Code; and, WHEREAS, the Planning and Environmental Commission finds that the proposed amendments further the development objectives of the Town of Vail; and, WHEREAS, the Planning and Environmental Commission of the Town of Vail has recommended approval of these amendments at its June 27, 2005, public hearing and has submitted its recommendation to the Town Council; and, WHEREAS, the Vail Town Council finds that the amendments are consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and, WHEREAS, the Vail Town Council finds that the amendments further the general and specific purposes of the Zoning Regulations outlined in Section 12-1-2, Purpose, Vail Town Code; and, WHEREAS, the Vail Town Council finds that the amendments promote the health, safety, morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established Ordinance No. 18, Series of 2005 1 character as a resort and residential community of the highest quality. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. The purpose of this ordinance is to amend Title 12, Zoning Regulations, to allow for multiple attached accommodation units within dwelling units located in the Lionshead Mixed Use 1 zone district subject to the issuance of a conditional use permit, and setting forth details in regard thereto. Section 2. Section 12-2-2 Definitions of Words and Terms, Section 12-7H-2 (C) Conditional Uses, Section 12-7H-3 (C) Conditional Uses, Section 12-7H-4 (A) Permitted Uses, Section 12-7H-12, Density, (Dwelling Units PerAcre), and Section 12-10-10 Parking Requirements Schedules, Vail Town Code, shall hereby be amended as followings: (deletions are shown in s#fi#Ee t~n~# and additions are shown in bold) Section 12-2-2 Definitions of Words and Terms Accommodation Unit, Attached: A room connected to a dwelling unit within a multiple family building without kitchen facilities designed for or adapted to occupancy by guests which is accessible from a common corridor, walk, or balcony without passing through another accommodation unit, attached accommodation unit, or dwelling unit. Section 12-7H-2 (C) Conditional Uses: The following uses shall be permitted in basement or garden levels within a structure, subject to issuance of a conditional use permit in accordance with the provisions of Chapter 16 of this Title: Accommodation Units Attached Accommodation Units Conference facilities and meeting rooms. Liquor stores. Lodges Major arcade. Multiple-family residential dwelling units, time-share units, fractional fee clubs, lodge dwelling units, and employee housing units (Type III (EHU) as provided in Chapter 13 of this Title). Radio, TV stores, and repair shops. Theaters. Additional uses determined to be similar to conditional uses described in this subsection, in accordance with the provisions of Section 12-3-4 of this Title. Section 12-7H-3 (C) Conditional Uses: Ordinance No. 18, Series of 2005 2 The following uses shall be permitted on the first floor or street levels within a structure, subject to issuance of a conditional use permit in accordance with the provisions of Chapter 16 of this Title: Accommodation Units Attached Accommodation Units Conference facilities and meeting rooms. Liquor stores. Lodges . Major arcade. Multiple-family residential dwelling units, time-share units, fractional fee clubs, lodge dwelling units, and employee housing units (Type III (EHU) as provided in Chapter 13 of this Title). Radio, TV stores, and repair shops. . Theaters. Additional uses determined to be similar to conditional uses described in this subsection, in accordance with the provisions of Section 12-3-4 of this Title. Section 12-7H-4 (A) Permitted Uses: Permitted Uses; Exception: The following uses shall be permitted on those floors above the first floor within a structure: Accommodation Units Attached Accommodation Units Lodges . Multiple-family residential dwelling units, timeshare units, fractional fee clubs, lodge dwelling units, and employee housing units (type III (EHU) as provided in chapter 13 of this title). Additional uses determined to be similar to permitted uses described in this subsection, in accordance with the provisions of section 12-3=4 of this title. 12-7H-12: Density (dwelling units per acre): Up to a thirty three percent (33%) increase over the existing number of dwelling units on a property or thirty five (35) dwelling units per acre, whichever is greater shall be allowed. For the purpose of calculating density, employee housing units, accommodation units, attached accommodation units, time share units, and fractional fee club units shall not be counted as dwelling units. Additionally, a "lodge dwelling unit", as defined herein, shall be counted as twenty five percent (25%) of a dwelling unit for the purpose of calculating density. Section 12-10-10: PARKING REQUIREMENTS SCHEDULES: Off street parking requirements shall be determined in accordance with the following schedules: A. Schedule A applies to properties within Vail's "Commercial Core Areas" (as defined on the town of Vail core area parking maps I and II, incorporated by reference and available for inspection in the office of the town clerk): Use Parking Requirements accommodation unit (includes attached Ordinance No. 18, Series of 2005 3 accommodation units time-share units, fractional fee units, and other forms of interval ownership units) 0.7 spaces per accommodation unit Dwelling unit Hotels with conference facilities or meeting rooms Banks and financial institutions Eating and drinking establishments Medical and dental offices Other professional and business offices Recreational facilities, public or private Retail stores, personal services and repair shops 1.4 spaces per dwelling unit 0.7 spaces .per accommodation unit, plus 1.0 space per 330 square feet of seating .floor area devoted to conference facilities or meeting rooms 3.7 spaces per 1,000 square feet of net floor area 1.0 space per 250 square feet of seating floor area; minimum of 2 spaces. 2.7 spaces per 1,000 square feet of net floor area 2.7 spaces per 1,000 square feet of net floor area Parking requirements to be determined by the planning and environmental commission 2.3 spaces per 1,000 square feet of net floor area Theaters, meeting rooms,. conference facilities 1.0 space per 165 square feet of seating floor area Any use not listed Parking requirements to be determined by the planning and environmental commission Section 3. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not effect the validity of the remaining portions of this ordinance; and the Town Council hereby declares it would have passed this ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses,or phrases be declared invalid. Section 4. The Town Council hereby finds, determines and declares that this ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. Ordinance No. 18, Series of 2005 4 Section 5. The amendment of any provision of the Town Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceeding as commenced under or by virtue of the provision amended. The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. Section 6. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, theretofore repealed. INTRODUCED, .READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 2"d day of August, 2005, and a public hearing for second reading of this Ordinance set for the 16th day of August, 2005, at 6:00 P.M. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Rodney E. Slifer, Mayor ATTEST: Lorelei Donaldson, Town Clerk INTRODUCED, READ, ADOPTED AND ENACTED ON SECOND READING AND ORDERED PUBLISHED IN FULL this 16th day of August, 2005. ATTEST: Rodney E. Slifer, Mayor Lorelei Donaldson, Town Clerk Ordinance No. 18, Series of 2005 5 MEMORANDUM TO: Planning and Environmental Commission FROM: Community Development Department DATE: June 27, 2005 SUBJECT: A request for final review of a text amendment to Section 12-7H-12, Density (Dwelling Units Per Acre), Vail Town Code, pursuant to Chapter 12-3, Amendments, Vail Town Code, to allow multiple attached accommodation units within a dwelling unit, and setting forth details in regard thereto.(PEC05-0040) Applicant: Vail Resorts, represented by Braun Associates, Inc. Planner: George Ruther I. SUMMARY The applicant, Vail Resorts, represented by Braun Associates, Inc., is proposing a text amendment to Section 12-7H-12, Density (Dwelling Units Per Acre), Vail Town Code, to allow multiple attached accommodation units within a dwelling unit, and setting forth details in regard thereto. The Zoning Regulations currently permit only one attached accommodation unit within dwelling unit in a multiple family building located in the Lionshead Mixed Use - 1 zone district. Based upon Staff's review of the criteria in Section V of this memorandum and the evidence and testimony presented, the Community Development Department recommends the Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council for the proposed text amendment, subject to the findings noted in Section VI of this memorandum. II. DESCRIPTION OF THE REQUEST The intent of this application is to amend Chapter 7, Article H, of the Title 12, Zoning Regulations to allow ,multiple (more than one) attached accommodation units within dwelling units constructed in a multiple family building located in the Lionshead Mixed Use - 1 zone district, subject to the issuance of a conditional use permit and demonstrated compliance with the off-street parking requirements. In order to facilitate this text amendment, staff has identified a number of other text amendments that must also be made. For example, definitions and parking requirements The proposed text amendments to the Title 12, Zoning Regulations, Vail Town Code, are as follows (deletions are shown in additions are shown in bold): 1 ~-2-2: Definitions of Words and Terms: Accommodation Unit, Attached: A room connected to a dwelling unit within a multiple family building without kitchen facilities designed for or adapted to occupancy by guests which is accessible from a common corridor, walk, or balcony without passing through another accommodation unit, attached accommodation unit, or dwelling unit. 12-7H-2 (C) Conditional Uses: The following uses shall be permitted in basement or garden levels within a structure, subject to issuance of a conditional use permit in accordance with the provisions of Chapter 16 of this Title: Accommodation Units Attached Accommodation Units Conference facilities and meeting rooms. Liquor stores.. Lodges . Major arcade. Multiple-family residential dwelling units, time-share units, fractional fee clubs, lodge dwelling units, and employee housing units (Type III (EHU) as provided in Chapter 13 of this Title). Radio, TV stores, and repair shops. Theaters. Additional uses determined to be similar to conditional. uses described in this subsection, in accordance with the provisions of Section 12-3-4 of this Title. 12-7H-3 (C) Conditional Uses: The following uses shall be permitted on the first floor or street levels within a structure, subject to issuance of a conditional use permit in accordance with the provisions of Chapter 16 of this Title: Accommodation Units Attached Accommodation Units Conference facilities and meeting rooms. Liquor stores. Lodges . Major arcade. Multiple-family residential dwelling units, time-share units, fractional fee clubs, lodge dwelling units, and employee housing units (Type III (EHU) as provided in Chapter 13 of this Title). Radio, TV stores, and repair shops. Theaters. Additional uses determined to be similar to conditional uses described in this subsection, in accordance with the provisions of Section 12-3-4 of this Title. 2 12-7H-4 (A) Permitted Uses: Permitted Uses; Exception: The following uses shall be permitted on those floors above the first floor within a structure: Accommodation Units Attached Accommodation Units Lodges .;.,,~ ,,,.~.,...,,,,,,.~..+•,,., ..,;+~ Multiple-family residential dwelling units, timeshare units, fractional fee clubs, lodge dwelling units, and employee housing units (type III (EHU) as provided in chapter 13 of this title). Additional uses Betermined to be similar to permitted uses described in this subsection, in accordance with the provisions of section 12-3-4 of this title. 12-7H-12: Density (dwelling units per acre): Up to a thirty three percent (33%) increase over the existing number of dwelling units on a property or thirty five (35) dwelling units per acre, whichever is greater shall be allowed. For the purpose of calculating density, employee housing units, accommodation .units, attached accommodation units, time share units, and fractional fee club units shall not be counted as dwelling units. Additionally, a "lodge dwelling unit", as defined herein, shall be counted as twenty five percent (25%) of a dwelling unit for the purpose of calculating density. Wig- 2-10-10: PARKING REQUIREMENTS SCHEDULES: Off street parking requirements shall be determined in .accordance with the following schedules: A: Schedule A applies to properties within Vail's "Commercial Core Areas" (as defined on the town of Vail core area parking maps I and II, incorporated by reference and available for inspection in the office of the town clerk): Use accommodation unit (includes attached accommodation units time-share units, fractional fee units, and other forms of interval ownership units) Dwelling unit Parking Requirements 0.7 spaces per accommodation unit 1.4 spaces per dwelling unit Hotels with conference facilities or meeting rooms 0.7 spaces per accommodation unit, plus 1.0 space per 330 square feet of seating floor area devoted to conference facilities or meeting rooms Banks and financial institutions 3.7 spaces per 1,000 square feet of net floor area Eating and drinking establishments 1.0 space per 250 square feet of seating floor area; minimum of 2 spaces Medical and dental offices 2.7 spaces per 1,000 square feet of net floor area Other professional and business offices 2.7 spaces per 1,000 square feet of net floor area Recreational facilities, public or private Parking requirements to be determined by the planning and environmental commission Retail stores, personal services and repair shops 2.3 spaces per 1,000 square feet of net floor area Theaters, meeting rooms, conference facilities ~ 1.0 space per 165 square feet of seating floor area Any use not listed Parking requirements to be determined by the planning and environmental commission BACKGROUND On December 15, 1998, the Vail Town Council adopted the Lionshead Redevelopment Master Plan. A primary goal of the Master Plan was to establish a new zone district which would further the goals, policies and objectives outlined in the Master Plan. On April 6, 1999, the Vail Town Council adopted Ordinance No. 3, Series of 1999, an ordinance which established the Lionshead Mixed Use 1 zone district. Upon the adoption of Ordinance No 3., the current language regarding attached accommodation units and dwelling units was created. On September 27, 2004, the Arrabelle Hotel was approved by the Town of Vail Planning & Environmental Commission and has since commenced construction. 4 The Arrabelle Hotel includes, amongst other things, 67 dwelling units and 85 accommodation units, of which 49 are "attached" to a dwelling. unit. IV. ROLES OF REVIEWING BODIES Order of Review: Generally, text amendment applications will be reviewed by the Planning and Environmental Commission and the Commission will forward a recommendation to the Town Council. The Town Council will then review the text amendment application. Planning and Environmental Commission: The Planning and Environmental Commission is responsible for the review of a text amendment application, pursuant to Section 12-3-7, Amendment, Vail Town Code, and forwarding of a recommendation to the Town Council. Design Review Board: The Design Review Board has no review authority over a text amendment to the Vail Town Code. Town Council: The Town Council is responsible for final approval, approval with modifications, or denial of a text amendment application, pursuant to Section 12-3-7, Amendment, Vail Town Code. The Town Council has the authority to hear and decide appeals from any decision, determination, or interpretation by the Planning and Environmental Commission and/or Design Review Board. -The Town Council may also call up a decision of the Planning and Environmental Commission and/or Design Review Board. Staff: The Town Staff facilitates the .application review process. Staff reviews the submitted application materials for completeness and general compliance with the appropriate requirements of the Town Code. Staff also provides the Planning and Environmental Commission a memorandum containing a .description and background of the application; an evaluation of the application in regard to the criteria and findings outlined by the Town Code; and a recommendation of approval, approval with modifications, or denial. V. REVIEW CRITERIA The review criteria and factors for consideration for a text amendment application are established by the provisions of Section 12-3-7, Amendments, Vail Town Code. According to the Vail Town Code, the following review criteria shall be used to evaluate a text amendment to the Zoning Regulations, 1. The extent to which the text amendment furthers the general and specific purposes of the Zoning Regulations; and, Staff believes this text amendment furthers the general and specific purposes of the zoning regulations. The general and specific purposes of the Zoning Regulations can be found in Chapter 1 of the Title 12 of the Vail Town Code. According to Section 12-1-2, Purpose, Vail Town Code, the general and specific purposes of the Zoning Regulations are, "These regulations are enacted for the purpose of promoting the health, safety, morals, and general welfare of the Town, and to promote the coordinated and harmonious development of the Town in a manner that will conserve and enhance its natural environment and its established character as a resort and residential community of high quality. " And, "These regulations are intended to achieve the following more specific purposes: 1. To provide for adequate light, air, sanitation, drainage, and public facilities. 2. To secure safety from fire, panic, flood, avalanche, accumulation of snow, and other dangerous conditions. 3. To promote safe and efficient pedestrian and vehicular traffic circulation and to lessen congestion in the streets. 4. To promote adequate and appropriately located off-street parking and loading facilities. 5. To conserve and maintain established community qualities and economic values. 6. To encourage a harmonious, convenient, workable relationship among land uses, consistent with Municipal development objectives. 7. To prevent excessive population densities and overcrowding of the land with structures. 8. To safeguard and enhance the appearance of the Town. 9. To conserve and protect wildlife, streams, woods, hillsides, and other desirable natural features. 10. To assure adequate open space, recreation opportunities, and other amenities and facilities conducive to desired living quarters. 11. To otherwise provide for the growth of an orderly and viable community. " Upon review of the stated general and specific purposes of the Zoning Regulations, staff believes that the proposed text amendment complies with the general purpose of the Zoning Regulations and with numbers 4, 5, 6, and 11 of the list outlined above. Staff does not believe that the other seven specific purposes are directly related to the proposed text amendments. 2. The extent to which the text amendment would better implement and better achieve the applicable elements of the adopted goals, objectives, and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and, Staff believes this text amendment would better implement and achieve the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan by creatirfg additional and more diverse guest lodging opportunities for the guests and visitors of Vail. For example, according to the Lionshead Redevelopment Master Plan, Policy Objective 2.3.3 states, "In order to enhance the vitality of Vail, renewal and redevelopment in Lionshead must promote improved occupancy rates and the creation of additional bed base ("live beds" or "warm beds' through new lodging products." In order to achieve the Town's objectives and policies the zoning regulations must keep pace with changes in the market. Staff believes that in the instance of attached accommodation units, the Town's current regulations fails to acknowledge the additional lodging opportunity that multiple attached accommodation units can create. However, we also acknowledge that it may be possible to have "too much of a good thing': For that reason staff is recommending that additional attached accommodation units should be reviewed and approved subject to the issuance of a conditional use permit and assurance of adequate off-street parking. It is further recommended that a conditional use permit application would be reviewed in accordance with the procedures outlined in Chapter 16 of the Zoning Regulations and the proposed off-street parking requirement for an attached accommodation unit should be 0.7. spaces per units. As a note of caution, however, an attached accommodation unit is only beneficial to the Town and the unit owner when it is rented and made available for short term occupancy. At this time, staff is not recommending a rental requirement regulation. Because no "additional" GRFA or other development standard incentives are being proposed or offered with the construction of an attached accommodation unit, staff does not believe that it is necessary to attempt to regulate occupancy. Instead, staff believes that the economic incentives to an owner and the demands of the market will adequately regulate occupancy. 3. .The extent to which the text amendment demonstrates how conditions have substantially changed since the adoption of the subject regulation and how the existing regulation is no longer appropriate or is inapplicable; and, The Lionshead Redevelopment Master Plan acknowledges the need for "warm beds" and a diverse base of lodging product. It can be clearly documented in the Town's development regulations (ie, fractional fee club units) and trends in the lodging market that our guests and visitors demand many different forms of lodging opportunities. For example, some guests prefer the short-term rental of a private resident on the golf. course while others opt for a lesser priced stay at the Roost Lodge. Between these two ends of the lodging opportunity spectrum lie numerous other forms of lodging choices (fractional fee ownership, whole ownership, accommodation units of varying quality and amenities, etc.). Staff believes that the availability of attached accommodation units is just 7 one of the many choices that our guests and visitors should have with the more choices that can be provided the better. 4. The extent to which the text amendment provides a harmonious, convenient, workable relationship among land use regulations consistent with municipal development objectives; and, Staff believes this text amendment will ensure a harmonious, convenient, workable relationship among land use regulations consistent with the Town's development objectives. As proposed, the potential negative impacts (ie, parking) of multiple attached accommodation units has been addressed. 5. Such other factors and criteria the Commission and/or Council deems applicable to the proposed text amendment. The Community Development Department has identified a number of issues that we believe need to be addressed during the review and consideration of this text amendment proposal. The following is a list of issues: Employee Housing Requirements - staff recommends that an attached accommodation unit be assessed an employee housing requirement identical to an accommodation unit (.75 - '1.25 employees per unit) 2. Traffic Impact Fees -staff recommends that a trip generation requirement be assessed for an attached accommodation unit identical to that of an accommodation unit. VI. STAFF RECOMMENDATION The Community Development Department recommends the Planning and Environmental Commission forwards a recommendation of approval to the Vail Town Council of a proposed text amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code; to Section 12-7H-12, Density (Dwelling Units Per Acre), Vail Town Code, to allow multiple attached accommodation units within a dwelling unit, and setting forth details in regard thereto. This recommendation is based upon the review of the criteria outlined in Section V of this memorandum and the evidence and testimony presented. Should the Planning and Environmental Commission choose to forward a recommendation of approval to' the Vail Town Council for the proposed text amendment, the Community Development Department recommends the Commission pass the following motion: "The Planning and Environmental Commission forwards a recommendation of approval to the. Vail Town Council of a proposed text amendment, pursuant to Section 12-3-7, Amendment, Vail Town Code, to Section 12-7H-12, Density (Dwelling Units Per Acre), Vail Town Code, to allow multiple attached accommodation units within a dwelling unit, and setting forth details in regard thereto." Should the Planning and Environmental Commission choose to forward a recommendation of approval to the Vail Town Council for the proposed text amendment, the Community Development Department recommends the Commission makes the following findings: "Based upon the review of the criteria outlined in Section V this memorandum, and the evidence and testimony presented, the Planning and Environmental Commission finds: 1. That the amendment is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the Town; and 2. That the amendment furthers the general and specific purposes of the Zoning Regulations outlined in Section 12-1-2, Purpose, Vail Town Code; and 3. That the amendment promotes the health, safety, morals, and general welfare of the Town and promotes the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality. " PLANNING AND ENVIRONMENTAL COMMISSION PUBLIC MEETING i June 27, 2005 TOiI?NOFYAiI , PROJECT ORIENTATION -Community Development Dept. PUBLIC WELCOME 11:00 am MEMBERS PRESENT MEMBERS ABSENT Chas Bernhardt Anne Gunion Doug Cahi11 Bill Jewitt (absent following item #9) Rollie Kjesbo George Lamb David Viele DRB Members Sherry Dorward Pete Dunning Lynne Fritzlen Site Visits: 1. Selby Residence -1463 Aspen Grove Lane 2. Seven Vails, Inc. - 1837 Alpine Drive 3. Cascade Village Metropolitan District - Westhaven Drive Bridge 4. Treetops Condominiums - 450 East Lionshead Circle 5. Vail Valley Medical Center -181 East Meadow Drive 6. Stephenson Residence - 1448 Vail Valley Drive Driver: George Public Hearing -Town Council Chambers 2:00 pm 1. Joint worksession with the Design Review Board: A request for a final review of a conditional use permit, pursuant to~5ection 12-9C-3, Conditional Uses, Vail Town Code, to allow for a public convention facility and public parking facilities and structures, located at 395 East Lionshead Circle/Lot 1, Bfock 2, Vail Lionshead Filing 1, and setting forth details in regard thereto. Applicant: Town of Vail, represented by Pylman & Associates, Inc. Planner: Bill Gibson ACTION: Tab{ed to July 11, 2005 MOTION: Jewitt SECOND: Kjesbo VOTE: 5-0-1(Viele recused) Bill Gibson made a presentation according to the memorandum. The applicant's representative, Rick Pylman; Chris Fasching, the Town of Vail's traffic consultant; Greg Hall; Public Works Director; and Mark DeVoss, the applicant's traffic consultant, gave an overview of the proposed traffic/circulation plan and study. Na public comment was added. 2. Joint worksession with the Design Review Board: A request for a correction to the Vail Land Use Plan to designate the Lionshead Redevelopment Master Plan Area and an amendment to the Doug Cahill thought that it would benefit the Town to include the site within the Lionshead Master Plan area. George Ruttier pointed out that issues including the maintenance of accommodation units, service and delivery access, pedestrian connections, traffic/congestion, etc should eventually be studied and added to Chapter 5 of the LRMP. TJ Brink expressed. his wish to avoid another joint application with the Medical Center. Chas Bernhardt asked if this was a time sensitive issue. The applicant replied in the negative, stating, however, that a re-zoning application and other applicable requests would follow which would warrant expedited review. 10. A request for final review of a text amendment to Section 12-7H-12, Density (Dwelling Units Per Acre), Vail Town Code, pursuant to Chapter 12-3, Amendments, Vail Town Code, to allow multiple attached accommodation units within a dwelling unit, and setting forth details in regard thereto. Applicant: Vail Resorts; represented by Braun Associates, Inc. Planner: George Ruttier ACTION: Recommendation of approval MOTION: Kjesbo SECOND: Lamb VOTE: 5-0-0 George Ruttier presented the project according to the memorandum. Jay Peterson, representing Vail Resorts Development Company, asked Staff about several possible corrections which should be reflected within the memorandum. He also asked about employee housing and traffic impact fees and requirements. There had been substantial interest for more than one lock off unit within the Arabelle. The only negative to the scenario, he continued, would be "an extra door into the hallway". Owners who were not interested in renting a second unit, would not ask for this privilege through a conditional use request. Rollie Kjesbo commented that the idea of more "warm beds" within the Town seemed like a good idea. George Lamb said that this proposal would give certain owners a chance to increase rental income. . Chas Bernhardt agreed that this proposal seemed to be a good one. He thought that the employee housing requirement was a bit "stiff', however. Point 2 (.2) seemed like a better solution. Regarding traffic impact fees, he had no feelings on that matter. Doug Cahill agreed with the benefits of the proposal and stated that he hoped the concept might be applicable to other developments within the Town. George Ruttier commented that employee housing requirement numbers were an attempt at remaining consistent with other approvals within the Town. The generation of new employees was minimal regardless of the number of new attached accommodation units. 11. A request for a final review of a variance from Chapter 14-6, Grading Standards, Vail Town Code, pursuant to Chapter 12-17, Variances, Vail Town Code, to allow for a retaining wall in excess ~of 3 feet in height located in the front setback, located at 1837 Alpine Drive/Lot 49, Vail Village West Filing 1, and setting forth details in regard thereto. Applicant: Seven Vails, Inc., represented by David Flinn T1WJlICV July 27, 2005 Overall May sales tax increased 11.1% with Retail decreasing 4.2%, Lodging increased 18.1%, Food and Beverage increased 10.8% and Utilities/Other (which is mainly utilities but also includes taxable services and rentals) increased 29.1 %. . Town of Vail sales tax forms, the Vail Business Review and the sales tax worksheet are available on the Internet at www.vailgov.com. You can subscribe to have the Vail Business Review and the sales tax worksheet e-mailed to you automatically from www.vail ov.com. Please remember when reading the Vail Business Review that it is produced from sales tax collections, as opposed to actual gross sales. If you have any questions or comments please feel free to call me at (970) 479-2125. Sincerely, n n ~ t~.J~C.~ Sally Lorton Sales Tax Administrator May 2005 SALES TAX VA/L VILLAGE May May May 2004 2005 A.~~. .1!. __. w_~~. w~_ Retail Lodging Food & Beverage Other Total VVIICVIIVII, VVIICVLIVII, VIIQII(~G 36,944 33,529 -9.2% 19,669 15,921 -19.1 ' 41,518 41,996 1.2% 2,226 3,014 35.4% i 100,357 94,460 -5.9% -_J L/ONSHEAD May 2004 Collections Retail Lodging Food & Beverage Other Total 11,752 15,667 May May 2005 Collections Change 10,639 -9.5% 18,686 19.3% 14,343 14,101 2,831 3,524 44,593 46,950 -1.7% 24.5% 5.3% ., May 2005 SALES TAX CASCADE V/LLAGE/EAST VA/L/SANDSTONE/WEST VA/L May May .May 2004 2005 A_~~_ A~_ ^^ _ Retail Lodging Food & Beverage Other Total ~.~~~C~~~v~~s ~.~~icc~i~ns ~.nan e ~,; ~., * 8244~7~x ,"rr~~82;11'2- xt t f ~~ ~`~0~4~% ' . "'` f, ~ ~ ' ~ ' ~ ' ~ ~ ` 1 F ~~{;~ s ~ , ` "` ' 1 1M702 i 21;904 ~#~. 87-2%a ~ ~ie.f t~C~r;-r v ~ + fr. L ~~ ~ ti s~~s ~ ~ k 1 ' x ~~~ r s_ r 'G+' F f ~ ;,,. r a .c . ~ Y. , ~ ~. "` ~i -xf . ,~ _. 26%i092~'~~~'"' X34,885 ~~ ~ 337% , ,~, ~ ,o-. ,{ 3 qvC y }Y S yk !5 1. ». 3 +. 'Y ~. '1 ~ r "y~Et .. _ Y i ,j -.. , ~ ~ . s ~' y , ~~ ,w7 3;088 3;315 , ~i ~7 G~; 4'% ~. . n ~•~' ~ of i`f ~ a %~ ~ ~." r~C ~x~~(( r ~'~ ,~ ; it '1~ ~` . - F »,. s ~ N. k ~ .~C P9 ~ '~ i y :. ~. x~ '~ f ~ ~ ~ ~~ ~~ _ ` ` ~' ~ ' % ` 123 32 9 ~ ~ ~ -14 2 216 ~~ ~ " ~ 15 3~ , i OUT OF TOWN May May May 2004 2005 Retail Lodging Food & Beverage Utilities & Other Total 111,916 . ;1;45,1.27 ;: 297% 142,936 - 1.73,293.. 21.2% Collections Collections Change ~x 29,511 _ 27,5:72 -6 6% ,, 1;271 547 -57 0%n <µ~r 238 47 -8:0 3%x ,, May 2005 SALES TAX TOTAL May ~ May May . 2004 2005 .. .. .... Retail Lodging Food & Beverage Utilities & Other Total ~.vn~cti~ns ~.vn~ctivn5 ~.nan e 160,654 1.53,852 -4.2%' 48,309 57,058 18.1 82,191 91,029 10..8% 120,061 154,980 29..1 411,215 456,919 11.1 RETAIL SUMMARY May 2004 Collections May 2005 Collections May % Change FOOD 60,166 59,380 -1.3% LIQUOR 11,748 11,503 -2.1% APPAREL 13,946 10,983 -21.2% SPORT ~ 12,604 14,302 13.5% JEWELRY 6,983 6,340 -9.2% GIFT 3,249 3,072 -5.4% GALLERY 1,883 704 -62.6% OTHER 49,196 47,459 -3.5% HOME 879 109 -87.6% OCCUPATION TOTAL 160,654 153,852 -4.2% ~.. -- _a Core Swisher Re toda s Vail Dail a icl 7 w~ ...Y Y' Y rt e /25 Page 1 1 ,~- _ _~ _ z _.~ -~ .~__ From: Kim Ruotolo To: bill@claggettrey.com Date: 7/27/200511:15:16 PM Subject: Re: today's Vail Daily article 7/25 Bill, Thanks for copying us on your email to Scott and for your comments. I will forward this to Corey Swisher to ensure that it is part of the public record for Crossroads. Kim Ruotolo Vail Town Council Member »> "Bill Rey" <bill@claggettrey.com> 07/25/0510:37 AM »> Dear Scott, After reading today's article regarding growth in the Vail Valley and particularly crossroads I believe that the new comers to Vail are missing the point. Yes, we all want to see Crossroads re-developed if it is more sensitive to the surrounding buildings in scale and there is a bit more creativity from the architectural side in designing a building that fits and becomes a jewel of the village. As far as the amenities go, that the young set and newcomers want, they are underground and thus they have lost the point of what Luc Meyer and Elaine Kelton are saying. It is about the scale and mass, what is above ground, not the amenities! I give little credibility to anyone that see's a benefit in allowing this huge project to go forward as planned. Once you destroy the character of the town it is over and there is no going back. What if the city of Beaune in the heart of Burgundy or the city of St. Remy in the south of France would have allowed an insensitive project like Crossroads, they would have destroyed the integrity of the city and would have forever destroyed the charm that has become the draw and the reason for the cities success. Those cities are hundreds of years old, and we are only 40, but we must defend the town so that hundreds of years from now those who come to visit are glad we cared enough to preserve the character of the village. If anyone on the town council approves this project as stands based on the much needed revenue issue, then I say shame on them! They have missed the point of their job in doing what is best for the town. Selling out for the financial quick fix is unconscionable. The short term dollars will be greatly offset by the long term pain and the lack of tourism through disgust of a once great mountain village. This town council needs to demand quality and integrity in every project and preserve the scale of the village. What is wrong with smaller and nicer development? Where is the heart of a community that allows a developer the ability to destroy the character of what it is. I believe that the so called old timers are the only ones that should be heard, as they are the ones that built this town and have cared enough to stay here. The newcomers must remember that the reason they came here is the charm and integrity those old timers created. If they don't like what was here before than leave. We should not homogenize this community to be like every other suburb in America. Bigger is not better! Bowling in Vail? what will be next Strip clubs and gambling? Finally in response to the down valley issues, Costco! are you kidding, why would anyone want another box store that leaches from a community. What can they provide that does not already exist, except for more pavement, energy consumption and visual pollution. These box store care nothing fora community, Nothing!!! -- - _ _ ~ ,..d _ n~,. _ .. Corey Swisher Re today's Vail Daily article 7/25 WPage 2 ~_ ..~-,,,.A~.~~..r_w I love this valley and it's people, and I can only hope that some start to think of generations to come not their own instant gratification. Thank you for keeping us informed. Sincerely, Bill Rey Claggett/Rey Gallery Vail Village No virus found in this outgoing message. Checked by AVG Anti-Virus. Version: 7.0.338 /Virus Database: 267.9.4/57 -Release Date: 7/22/2005 CC: cswisher@vailgov.com F - - :~ - :. ~tlCe. an app~lCatl©tl 5 : really outside the confines of pub filed, strlCf rules.: fake. licmeetings - -` ~EX what? - • effect ~ But with na applzcatian filed; Fla u. . . herty's ~meeUngs with Gmn didn't ^ part" of Town'. Council~`members' ` .. _- violate those rules, sand Boots Fergu- • " "problems __~' hearing -` btg, • ®y Scott N Mifter , son, an Aspen-based attorney work-" ' com licated 'inatteES ts,`, ex :,% {-, D~ari,Y STru~ R~xi>Ex _ iaig for the: town. Ferguson gave;each P ~.` counc~-memb~r a thick':handout of', -Parte:~ (pronounced.,:. "par-tay°} : `' ntl[NTUIZN ; No application,. n_ o the rules regarding conflict of mferest ~ ",eommurneatton foul` _ - ~ and otheF'problems that, crop up:dur ~ ~" - = ~~ ,That's the. ruling from an attorney. ing developmes~t~"applications .:,like •~ According to: an ` article.. ~n warkmg for 1Vlinturn regarding some . Ginn.'s `Government and Administrative discussions. Mayor; Gordon` "Hawk ::. While `."Flaherty's meetwgs wigs Law `News, ° ex pane ~ ';>- eye" Flaherty had: withF~lorida-based Ginn, weren't unpioper,_news of'tfie conirnunication` involves ~` • developer Bgbby Ginn ut.May :~ meetings; did-; raise- eyebrriws- `and conversation between a-"eat~nett ~. - Flahe vLSltei Ginn's' M~nturn .questions;.. whicha is': wlZy Ferguson rtY ., member- ~ and : ` applicant . or ` bff°tce and talked "to the _developer„ toldd• council members they need to be ." ttterrtbeF of the public" : that d and'the twodrove togetherao look at careful. ' ~ happEns "outside ` a pubticK ; the "area around Bolts Laker. Y• , '' But the rules •about. talking about. , hearing; like at a gas stattoit; , ~`Ginn~liad fzleri lus propasaP to, °. applications outside `of'meetings'can` . ~ N: bu~ld::raugbly 14(3U hames.on, 5,400 be,hard'to abide by an"d even-iardeT:` Since = ~ ;, tfiose ~ -. outside°-= acres between IVlinture and.Red..Cliff•. to explain, said one council member ~' conversations could provide the;., • when those canver"satrons.toolcplace,~ "When,we can't talk, then the pub- -basis for a eaurt• challenge` of a ~_; Flaherty would have vinTated towr# lic. says ,°we're.; bemg'~`secretive•," board clectston; .board memkiers. and .:state. iyles Those rules prohibit Councilman Dare11. Wegert said. ~ - - - ~ eleetgd officials. ~fioin talking. about "That's when.you tell' people~you `are gehera!!y told : by them " businesstlie council will-rule on with -understand"=Fer « .:Pawyers to ~• avoid those " ~~ guson ephed but : d-s ,. CUSS1onS _.°~ ~~. applicants ~--= or -much of anyone, ~~... please'came to. the meetings" ~,., ' i P{ •u. i MEMORANDUM July 27, 2005 To: Vail Town Council Stan Zemler Pam Brandmeyer Judy Camp From: Sally Lorton Re: June Sales Tax On the reverse side, please find the latest sales tax worksheet. I estimate I'll collect another $23,000.00 in June sales tax to bring June collections to $829,577.00. If so, we will be up 19.05% or $132,774.00 from budget and up 13.31% or $97,464.00 from June 2004. Attached please find two worksheets that report on the conference center tax collection. Town of Vail Conference Center Lodging Tax (1.5%)Worksheet 7/27/2005 % Change % Change Month 2005 Budgef from from 2003 2004 Budget Co/%ctions Variance 2004 Budget ~+ , January 258,035 304,140 276,303 308,662 32,359 1.49% 11.71 February 314,645 354,159 321,744 365,053 43,309 3.08% 13.46% March 342,984 333,006 302,527 411,385 108,858 23.54% 35.98% April 64,246 87,147 79,171 70,244 ($,927) -19.40% -11.28% May 15,964 18,027 16,377 21,334 4,957 18.34% 30.27% June - 54,153 56,662 51,476 67,298 15,822 18.77% 30.74% Z- z~ ~ - 4 'k~.~: 4 Total 1,050,027 1,153,141 1,047,598 1,243,976 196,378 7.88% 18.75% '- ~: July i 84,422 94,611 85,951 August 81,820 82,900 75,312 September 42,569 48,706 44,248 October 25,131 28,707 26,080 November 29,089 33,037 30,013 December 260,232 289,276 262,798 t'S.~{ s~i Y~t'~ ~{.~~,1 ~yy, ~ A ~"ua ' yfwla~4 iyt ,. ~Si.P1-'.1 .. ".c. 7 ~ ~ . Total 1, 5 73, 290 1, 730, 3 78 1, 5 72, 000 1, 243, 976 196, 378 onth 2003 Town of Vail Conference Center Retail Tax (.5%) Worksheet 7/27/2005 2005 Budget 2004 Budget Co/%ctions Valiance Change from 2004 Change from Budget i . } ., January 233,274 267,013 .245,637 271,474 25,837 1.67% 10.52% February 250,236 283,480 260,830 290,995 30,165 2.65% 11.57% March 283,013 284,547 258,952 333,540 74,588 17.22% 28.80% April 99,694 115,624 109,419 106;640 (2,779) -7.77% -2.54% May ~ 46,376 46,172 45,406 50,503 5,097 9.38% 11.23% June 83,981 83,918 80,741 94,740 13,999 12.90% 17.34% .. :: ~,.. Total 996,574 1,080,754 1,000,985 1,147,892 146,907 6.21°„ 14,68% .{ ,~, July 122,562 130,300 124,611 August 119,843 115,092 109,760 September 78,107 - 87,126 83,472 October 57,330 60,325 58,721 November 67,602 71,641 68,792 December ~ 253,449 276,725 260,659 Total 1,695,467 1,821,963 1,707,000 1,147,892 146,907 Village Inn Plaza, Phase III, Condominium Association ' 100 East Meadow Drive, Vail, Colorado 81657 July 28, 2005 Vail Town Council 75 Frontage Road Vail, Colorado 81657 RE: Ordinance for Special Development District No. 39 to Allow for the Redevelopment of Crossroads Dear Members of the Vail 'own Council: I am writing to you as President of the Board of Village Inn Plaza, Phase III, Condominium Association regarding the request to establish Special Development District No. 39, Crossroads. As you know we are the only immediately adjacent property owner to Crossroads. We are very pleased that the developer, in his most recent plans for Crossroads, has lowered the heights of the western wing of the building next -to .us considerably more than on the eastern wing. We feel that it is unfortunate that the heights along the Crossroads side adjacent to us are not more in keeping with the existing scale and step downs of our building and that no changes. at all were made to the huge south facade of the central core of the new building. Even at the newly reduced heights of the western facade, the building exceeds the heights called for in Vail's master plan. Using the developer's requested floor plate height of 11.5 feet and moving from the South Frontage Road to East Meadow Drive along the western facade, at each 25 feet of the proposed Crossroads building (please note that all measurements are from the plans and are approximate) the heights and stories above grade are as follows: Location NW corner of building Next 25 feet Next 25 feet Next 25 feet Next 25 feet Heig~it of Buil 67 feet 5.83 80 feet 6.96 77.5 feet 6.74 72 feet 6.26 81.5 feet 7.09 dins stories stories stories stories stories RE: Crossroads Redevelopment Ordinance Next 25 feet * 60 feet 5.22 stories Next 25 feet * 61.5 feet 5.35 stories * Next 25 feet * 69 feet 6 stories Next 25 feet 63 feet 5.48 stories Next 25 feet 63 feet 5.48 stories Next 25 feet 59 feet 5.13 stories Next 25 feet 55 feet 4.78 stories Next 17.5 feet 49 feet 4.26 stories (SW corner of building) page 2 * These height measurements are taken from the landscaping grade, not the pedestrian grade, which would add on average 10.5 feet to the building height. Particularly since the developer has said that it is not at all feasible to have the new Crossroads step back in increments from its base along the western facade, we would certainly like to see it step down more (as indicated in numerous earlier communications with you and with the developer) as it moves from the South Frontage Road to East Meadow Drive. Regarding the loading dock which is included in the Crossroads plans at the request of the Town of Vail, we have been referred to Mr. Tom Rassmel of the Town for further information regarding our requests for information on how this facility will be operated, hopefully with no line up of trucks idling right next to our building awaiting entry to the Crossroads loading dock. We are very pleased that some language regarding the landscaping in the vicinity of our joint property line has been included in the site plan dated August 2, 2005. We request that before final approval of the Special Development District ordinance for Crossroads some additional language and/or plans for the recirculating, cascading stream which we have discussed both with the developer and with the Town staff could be included. The purpose of the stream which would run from approximately from May to October would be to have an very attractive water feature there and to provide "water noise" to help block out traffic sounds. The Town staff has agreed to work with us and the developer to seek a solution to replace the stairways (approximately .eight steps each as shown on current plans) connecting our properties at the southwest corner of Crossroads and along what might be called the east-west connector path. We look forward to a successful solution for the elimination of the stair steps. We do not believe that Crossroads, as currently designed, meets the compatibility and public benefits requirements necessary for approval of the Special Development District ordinance before you. • RE: Crossroads Redevelopment Ordinance page 3 Village Inn Plaza, Phase III, Condominium Association requests that you deny the Crossroads project's application until such time as there are some further reductions in its size, height, bulk and mass. Please let me repeat from an earlier letter to you: It would appear that the Town of Vail is starting a move away from previously accepted building design and scale standards for our Town and is inching towards new ones, perhaps typified by the current Crossroads proposal. We would urge much wider public input regarding the Town's design and scale intentions for new construction projects and some clearly stated declaration by the Town of Vail of such a change rather than having it made in not-clearly-discernable steps which are not initially apparent to all of our citizens. We will continue to be available to work with the Town, the developer, and other interested parties to seek a solution which will make the new, and much needed, Crossroads fit more amicably into our community. Respectfully submitted, ~~ ~<< D. Deane Hall, Jr. President, Board of Managers Village Inn Plaza, Phase III, Condominium Association cc: Peter Rnobel Dominic Mauriello Town Planning Staff TOWN OF VAIL REVENUE HIGHLIGHTS August 2, 2005 Sales and Related Taxes In spite of construction activity during the month of June, sales tax collections continue to exceed budget and all previous years. The 4% general sales tax for June is estimated at $829,577, up 19.1% from budget and 13.3% from last year. The next highest June was in 2001 with $751,439 in collections. Year-to-date through June collections estimated at $9.7 million will exceed budget by 13.4% and last year by 6.7%. The next highest year-to-date also occurred in 2001 with January through June collections of $9.4 million. Conference center sales and lodging taxes also continue to be favorable with total conference center taxes for June of $162,038 up 22.6% from budget and 15.3% from last year. Total year-to- date conference center taxes of $2,391,868 are up 14.4% from budget and up 7.1% from last year. Although both segments of conference center taxes are up, lodging has increased more than sales tax with lodging up 7.9% year-to-date vs. last year and sales tax up 6.2%. The month of June began with the Teva Mountain Games and ended with the LaCrosse Shootout and Bravo! Rochester Philharmonic Orchestra. Budweiser Hot Summer Nights and the Vail Farmer's Market began mid-June and continue through the summer. Other Bents during June included Vail King of the Mountain Open, The Graze, and Top of the Rockies Softball Tournament. The national economy remained good and the dollar remained weak, encouraging travel to the U.S. The consumer price index increased 2.5% from June 2004 to June 2005. Construction Permit Fee Revenue Construction permit fees have also reached record levels as a result of major redevelopment projects. With fees of $1,086,712 through July 26, 2005, revenue already exceeds the full year amount for 2004 ($920,219) and all previous years. Building permit fees for the month of July. are $529,778 including the building permit for the Arrabelle. This amount exceeds any previous month and exceeds the full-year amount for 2002 and all previous years. Six major projects, Arrabelle, Forest Place, Gore Creek Place, One Willow Bridge Road, Sonnenalp Resort (20 Vail Road), and Vail Plaza Hotel account for $748,221 of the revenue to date. The full year budget for construction permit fees is $2.2 million including $1.7 million for major redevelopment projects. The ability to meet the budget for major projects is dependent upon the timing of projects such as Manor Vail, Four Seasons, and Crossroads. Revenue from residential and smaller projects is tracking on budget. Construction permit fees include building, electrical, mechanical, plumbing, and sprinkler permits. Recreational Amenities Fees The recreational amenities fee is a separate fee charged on all new residential square footage at the time a building permit is issued. This fee is recorded in the Real Estate Transfer Tax (RETT) Fund. Redevelopment projects are also having a major impact on this revenue. $337,935 has been remitted during the first seven months of 2005 compared with $55,603 for the same time period last year. Year-to-date revenue already exceeds the full-year budget of $194,600 which will be amended with the next supplemental appropriation. Four major projects (Arrabelle, Forest Place, Gore Creek Place, and Sonnenalp Resort) generated $304,557 of the year-to-date revenue. 050802 Revenue Highlights - 1 - Real Estate Transfer Tax (RETT) RETT collections through the end of July are $3.5 million compared with $2.4 million through the end of July last year. Over $1 million was collected from real estate sales related to major transactions (over $10 million selling price) including: sale of the Chateau to the Four Seasons developer; continued sales of Crossroads units to the developer; sales to the public of Vail Mountain Lodge timeshares; sales to the public at Founders' Park Garage; and sale of the Vail Marriott. 050802 Revenue Highlights - 2 - MCMAHAN AND ASSOCIATES, L.L.C. Certified Public Accountants Timber Ridge Affordable Housing Corporation (A Colorado Non-Profit Corporation and A Component Unit of the Town of Vail, Colorado) - Financial Statements December 31, 2004 and 2003 ' Timber Ridge Affordable Housing Corporation (A Colorado Non-Profit Corporation and A Component Unit of the Town of Vail, Colorado) ' December 31, 2004 and 2003 ' TABLE OF CONTENTS ' INDEPENDENT AUDITOR'S REPORT Statement of Financial Position Statement of Activities ' Statement of Cash Flows Notes to the Financial Statements Page 1 2 3 4 5-17 MCMAHAN AND ASSOCIATES, L.L.C. Certified Public Accountants and Consultants ' WEB SITE: WWW.MCMAHANCPA.COM SUITE 222/AVON CENTER TELEPHONE: (970) 845-8800 100 WEST BEAVER CREEK BLVD. FACSIMILE: (970) 845-085 I F.O. BOX 5850 AvoN, CO 8 1620 E-MAIL: MCMAHAN@MCMAHANCPA.COM I INDEPENDENT AUDITOR'S REPORT I I To the Board of Directors Timber Ridge Affordable Housing Corporation Vail, Colorado I We have audited the accompanying statement of financial position of Timber Ridge Affordable Housing Corporation (the "Corporation"), a Colorado non-profit corporation and a component unit of the Town of Vail, Colorado, as of December 31, 2004 and 2003 and the related statements of activities, and cash flows for the periods then ended. These financial statements are the responsibility of the management of the Corporation. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial ' statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our I opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the I financial position of Timber Ridge Affordable Housing Corporation as of December 31, 2004 and 2003, and the changes in its net assets and its cash flows for the periods then ended, in conformity with U.S. generally accepted accounting principles. ' The accompanying financial statements have been prepared assuming that Timber Ridge Affordable Housing Corporation will continue as a going concern. As discussed in Note 14. to the financial statements, the Corporation has experienced limitations of rental revenues and increased costs I associated with the identification and remediation of potential and identified mold problems within rental units. Moreover, the Corporation faces rising debt service costs as a result of increases in the bases underlying the weekly interest rates payable on certain bonds. Because operations of the Corporation could be substantially impeded as a result of this limitation of revenues and ongoing, substantial debt I service requirements, these factors raise substantial doubt about the Corporation's ability to continue as a going concern. The Board of Directors of the Corporation has developed plans to address these concerns, which are also described in Note 14. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. ~~' ~ ~~~ ~L~. ~ ' McMahan and Associates, L.L.C. February 17, 2005 I Performing services throughout Colorado D. Jerry McMahan, C.P.A. Daniel R. Cudahy, C.P.A. Paul J. Backes, C.P.A. Michael N. Jenkins, C.A., C.P.A. ' Members: American Institute o~ Certified Public l~ccountants/~.'olaraclo Society o~ C'erti~ied Public Accountants A Timber Ridge Affordable Housing Corporation ' (A Colorado Non-Profit Corporation and A Component Unit of the Town of Vail, Colorado) Statement of Financial Position ' December 31, 2004 and 2003 Assets: 2004 2003 ' Current Assets: Cash and cash equivalents -Unrestricted 14,802 296,412 Accounts receivable -Tenants 3,345 16 923 I Accounts receivable -Other - , 4,035 Prepaid expenses 5,380 5,610 Total -Current Assets 23,527 322,980 Restricted Assets: Cash and cash equivalents -Restricted 349,612 538,174 ' Total -Restricted Assets 349,612 .538,174 Bond issue costs, net of accumulated amortization 763,830 805;422 ' Fixed assets, net of accumulated depreciation 19,242,122 19,767,568 Total Assets 20,379,091. 21,434,144 ' Liabilities and Net Assets: Liabilities: ' Current Liabilities: Accounts payable 114,740 170 041 Deferred revenues 32,159 , 17 217 ' Tenant security deposits 18,303 , 25 025 Accrued interest payable on long-term debt 69,442 , 36 542 Current portion of long-term debt 130,000 , 115 000 Total -Current Liabilities 364,644 , 363,825 Long-term debt, net of current portion 21,350,000 21,480,000 ' Total Liabilities 21,714,644 21,843,825 Net Assets (Deficit) -Unrestricted (1,335,553) (409,681) ' Total Liabilities and Net Assets 20,379,091 21,434,144 The accompanying notes are an integral part of these financial statement s. 2 Timber Ridge Affordable Housing Corporation (A Colorado Non-Profit Corporation and ' A Component Unit of the Town of Vail , Colorado) Statement of Activities For the Year Ended December 31 , 2004 ' (With Comparative Amounts for the Period Ended December 31, 2003) 2004 2003 Revenues: - ' Rent 1,118,405 796,986 Laundry room lease 15,434 5,740 Interest income 3,916 3,478 ' Other 16,170 g6g Total Revenues 1,153,925 807,173 Expenses: ' Advertising 13,050 3,439 Office expenses 13,036 8,252 Management fee 58,675 44,658 ' Telecommuhications 12,486 4,859 Wages -Administrative 75,187 44,385 Wages -Maintenance and other 111,550 58,525 Repairs and maintenance 26,452 21,479 Electric 90,493 15,730 Water and sewer 67,171 37,430 Trash removal 11,383 8,968 ' Snow removal 6,911 2,416 Fire, life, safety, and security 1,843 11,566 Property insurance 62,606' 27,186 ' Audit and legal 6,278 _ Bad debts 7,737 _ Miscellaneous 4,434 12,730 ' - Mold remediation 252,655 372,470 Interest expense 416,918 160,220 Depreciation 525,446 240 829 Financing fees 273,144 , 121,986 ' Amortization of bond issue costs 42,342 19 726 Total Expenses 2,079,797 , 1,216,854 ' Change in Net Assets (925,872) (409,681) Net Assets (Deficit) -Unrestricted -Beginning (409,681) _ ' Net Assets (Deficit) -Unrestricted -Ending (1,335,553) (409,681) ' The accompanying notes are an integral part of these financial statements. 3 Timber Ridge Affordable Housing Corporation (A Colorado Non-Profit Corporation and ' A Component Unit of the Town of Vail, Colorado) Statement of Cash Flows For the Year Ended December 31, 2004 (With Comparative Amounts for the Period Ended December 31, 2003) ' 2004. 2003 Cash Flows from Operations: Cash received from tenants for rent 1,154,929 780,613 Cash received from (refunded to) tenants for security deposits, net (6,722) - 25,025 Interest received 3,916 3,478 Other cash receipts 27,635 23,376 Cash paid for goods and services (1,150,162) (575,660) ' Net Cash Provided by Operating Activities 29,596 256,832 Cash Flows from Financing Activities: Cash received on issuance of bonds and notes - 709,829 Principal repaid on bonds and notes (115,000) - Cash drawn on line of credit 285,893 86,921 Repayment of amounts drawn on line of credit (285,893) (86,921) Interest paid (384,768) (123,678) Net Cash Provided (Used) by Financing Activities (499,768) 586,151 ' Cash Flows from Investing Activities: Purchase of fixed assets _ (8 397) Net Cash (Used) by Investing Activities _ (g,g97) ' Net Increase (Decrease) in Cash and Cash Equivalents (470,172) 834,586 Cash and Cash Equivalents -Beginning 834,586 - Cash and Cash Equivalents -Endin g 364,414. 834,586 Cash and Cash Equivalents -Ending is comprised of: Cash acid cash equivalents -Unrestricted 14,802 296 412 Cash and cash equivalents -Restricted 349,612 , 538,174 Total -Cash and Cash Equivalents 364,414 834,586 ' Reconciliation of Change in Net Assets to Net Cash Provided by Operating Activities: Change in net assets (925,872) (409,681) Adjustments to reconcile: Depreciation 525,446 240,829 Interest expense 416,918 160,220 Amortization of bond issue costs 42,342 19,726 Financing fees paid with bond proceeds - 60,023 (Increase) decrease in accounts receivable 17,613 (20,958) ' (Increase) decrease in prepaid expenses 230 (5,610) Increase (decrease) in accounts payable (55,301) 170,041 Increase (decrease) in deferred revenues 14,942 17,217 Increase (decrease) in tenant security deposits (6,722) 25,025 ' Total Adjustments 955,468 666,513 Net Cash Provided by Operating Activities 29,596 256,832 t _ Non-cash Financing and.lnvesting Activities: Principal issuance of bonds and note payable - 21,595,000 Purchase of fixed assets upon issuance of bonds & notes - (20,000,000 1 Financing fees paid upon issuance of bonds and note - (60,023) Bond issue costs paid upon issuance of bonds and note (825,148) The accompanying notes are an Integra{ part of these financial statements. 4 1 , 1 1 1 1 1 1 ' 1 1 1 1 1 1 1 1 Timber Ridge Affordable Housing Corporation (A Colorado Non-Profit Corporation and A Component Unit of the Town of Vail, Colorado) Notes to the Financial Statements December 31, 2004 and 2003 Organisation Timber Ridge Affordable Housing Corporation ("Corporation") was incorporated on July 9, 2003 as a Colorado non-profit corporation to provide affordable housing for persons employed in the Town of Vail (the "Town") or Eagle County, Colorado. The Corporation owns and operates, exclusively on behalf of and for the benefit of the Town, a 198-unit rental housing project'(the "Project") located in the Town. The formation of Corporation was approved by the Town, and its operations are governed by a Board of Directors comprised solely of members of the Town Council of the Town. Upon dissolution of the Corporation and retirement of all liabilities, all property of the Corporation is to be transferred to the Town. The acquisition of the Project was financed through the issuance of revenue bonds and a note payable to the Town. While the Town is not legally obligated to pay the indebtedness of the Corporation, the Town has agreed to consider providing funds, if needed, to the Corporation to make the scheduled debt service payments of the Corporation. The Town has a right to obtain title to the Project at any time by defeasing all outstanding bonds of the Corporation. The Corporation is considered to be a component unit of the Towh, and its financial position, activities and cash flow are included in the Town's separate 2004 and 2003 financial statements. The Corporation began operations on July 17, 2003. These financial statements present the Corporation's financial position as of December 31, 2004 and 2003, and its activities and cash flows for the year ended December 31,.2004 and for the period from inception of operations, July 17, 2003, to December 31, 2003. Summary of Significant Accounting Policies A. B. C Reporting Entity The Corporation was formed under the laws of the State of Colorado and operates under an elected Board of Directors (the "Board"). As required by generally accepted accounting principles, the financial statements of the reporting entity include those of Corporation. No additional separate governmental units, agencies, or non-profit corporations are included in the financial statements of the Corporation since none were discovered to fall within the oversight responsibility based upon the application of the following criteria: financial accountability, appointment of a voting majority of the organization's governing body, ability to impose its will on the organization, a potential for the organization to provide specific financial benefits or burdens, and fiscal depehdency. The Corporation does not exercise oversight responsibility over any other entity. However, the Corporation is a component unit of the Town. Basis of Accounting The Corporation utilizes the accrual basis of accounting, whereby revenues are recognized when earned and expenses are recognized when incurred. Cash Equivalents For the purposes of the Statement of Cash Flows, the Corporation defines cash equivalents as all cash, money market, and savings accounts, plus all investments with original maturities of three months or less. Timber Ridge Affordable Housing Corporation (A Colorado Non-Profit Corporation and A Component Unit of the Town of Vail, Colorado) Notes to the Financial Statements December 31, 2004 and 2003 ' (Continued) ' 2. Summary of Significant Accounting Policies (continued) D. Restricted Assets ' Certain of the Corporation's assets are classified as restricted assets because their use is restricted to specific purposes by bond indentures or other binding commitments. ' E. Allowance for Uncollectible Accounts The Corporation uses the allowance method to recognize the potential uncollectibility of receivables. No allowance for uncollectible accounts was recorded at December 31, ' 2004 and 2003, since all such amounts were considered collectible. F. Bond Issue Costs ' Costs incurred by the Corporation in connection with the issuance of bonds used to finance the acquisition of the Project are amortized over the term to maturity of the bonds, using the bonds outstanding method, which approximates the effective interest method. ' G. Fixed Assets Fixed assets are recorded at cost and are depreciated using the straight-line method over the following estimated useful lives of the underlying assets: Buildings 30 years ' Furniture and equipment 5 years Land is reported at cost and is not subject to depreciation. H. Federal and State Income Tax The Corporation was formed in accordance with Internal Revenue Service Revenue ' Procedure 95-48, which provides that an "affiliate of a governmental unit" is exempt from federal income tax filing requirements. As a result, the Corporation is also exempt from Colorado state income tax. I. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting ' principles requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. ~ ~, Timber Ridge Affordable Housing Corporation ' (A Colorado Non-Profit Corporation and A Component Unit of the Town of Vail, Colorado) Notes to the Financial Statements December 31, 2004 and 2003 (Continued) 3. Trust Indentures A. Adjustabie Rate Housing Facilities Revenue Bonds, Series 2003A ' The Corporation's Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A (the "2003A Bonds") are secured by a trust indenture (the "2003A Indenture") under which the Corporation granted U.S. Bank National Association (the "Trustee") a security interest in ' ~ rents and other receipts from operation of the Project, net of the Project's actual operating expenses (the "Pledged Revenues"). Certain capitalized terms in the 2003A Indenture are further defined in Note 6.A., below. t Under the terms of the 2003A Indenture, the Pledged Revenues are to be deposited with the Trustee as follows: a. Bond Interest Fund - By each interest payment date, the Trustee is to deposit funds into this account which have been received from the Corporation (or drawn on the Credit Facility if the 2003A Bonds are not converted to a Fixed Rate), in an amount sufficient to make the required interest payment on the 2003A Bonds. ' b. Commercial Short-Term Fund -Amounts drawn on the Credit Facility are deposited_into this account, until transferred to the Bond Interest Fund to make the required interest payment. The Corporation has no right, title or interest in this account. ' _ c. Bond Principal Fund - If the 2003A Bonds have not been converted to a Fixed Rate by December 1, 2032, the Trustee is to deposit funds into this account which have been received either from the Corporation or drawn on the Credit Facility, in an amount sufficient to make the required principal payment on the 2003A Bonds. If the 2003A Bonds are converted to a Fixed Rate, the Trustee is to make semi-annual deposits, in May and November, of funds received from the Corporation, in an amount sufficient to make the required principal payments on ' the 2003A Bonds. d. Redemption Fund -Money on deposit in this account is to be first used to cure any deficiencies in the Bond Interest Fund, then to cure any deficiencies in the Bond Principal Fund, and then to purchase or redeem the 2003A Bonds. e. Bond Reserve Fund -The Trustee is to deposit $317,094 from the proceeds of issuance of the 2003A Bonds into this account, with an additional $278,063 to be deposited by July 15, 2004 (collectively, the "Bond Reserve Requirement"). Annually, on May 2 and November 2, the Trustee is to ensure that the value of the Bond Reserve Fund meets the Bond Reserve Requirement, with any shortfall to be cured by the Corporation by May 20 or November 20. In the event that the ' Corporation cannot cure the deficiency, the Trustee will request that the Town replenish the Bond Reserve Fund, but the Town's failure to do so will not constitute an Event of Default. Moneys in this account are to be used by the Trustee to pay the principal, premium, and interest on the 2003A Bonds while not ' bearing interest at a Fixed Rate, or to reimburse draws on the Credit Facility~in the event that moneys in the Bond Interest Fund, Bond Principal Fund or Redemption Fund are insufficient to make required payments of interest, principal ' or redemption on the required dates. At maturity of the 2003A Bonds, the Bond Reserve Fund may be transferred to the Bond Interest Fund and the Bond Principal Fund to fund the final principal and interest payments. At the written direction of the Trustee, moneys in the Bond Reserve Fund may be released to ' the Corporation to pay operating and maintenance expenses of the Project. 7 Timber Ridge Affordable Housing Corporation (A Colorado Non-Profit Corporation and A Component Unit of the Town of Vail, Colorado) Notes to the Financial Statements December 31, 2004 and 2003 (Continued) 3. Trust Indentures (continued) A. Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A (continued) ' f. Expense Fund -Funds in this account were disbursed by the Trustee to pay issuance expenses, with any remaining amount transferred to the Bond Interest Fund. ' g. Bond Purchase Fund - As long as the 2003A Bonds are not converted to a Fixed Rate of interest, this account is to hold any moneys received from remarketing of Tendered Bonds, moneys drawn on the Credit Facility by the Trustee to pay the purchase price of Tendered Bonds, moneys received from the underwriter or ' purchaser of Tendered Bonds upon conversion to a Fixed Rate of interest, and moneys received from the Corporation, if requested by Trustee, to fund the purchase price of Tendered Bonds. ' Additionally, the 2003A Indenture imposes requirements regarding the Project's operations, budgeting, insurance and management. ' B. Subordinate Housing Facilities Revenue Bonds, Series 20038 The Corporation's Subordinate Housing Facilities Revenue Bonds, Series 20036 (the ' "20038 Bonds") are secured by a trust inderiture (the "20036 Indenture") under which the Corporation granted U.S. Bank National Association (the "Trustee") a security interest in rents and other receipts from operation of the Project, net of the Project's actual operating expenses (the "Pledged Revenues"), subject to the prior claim on the Pledged Revenues granted under the terms of the 2003A Indenture. Certain capitalized terms in the 20036 Indenture are further defined in Note 6.B., below. Under the terms of the 20038 Indenture, the Pledged Revenues are to be deposited with ' ~ the Trustee as follows: a._ Expense Fund -Funds in this account were disbursed by the Trustee to pay ' issuance expenses, with any remaining amount transferred to the Bond Fund. b. Bond Fund -This account is used solely for required payments of interest and principal of the 20036 Bonds, using moneys received from the Corporation or transferred from the Bond Reserve Fund. c. Bond Reserve Fund -The Trustee is to deposit $222,813 from the proceeds of issuance of the 20036 Bonds into this account. If additional bonds are issued on parity with the 20038 Bonds, additional moneys are to be deposited to this account to equal $222,813 plus the maximum annual debt service due on the additional bonds at issuance (collectively, the "Bond Reserve Requirement"). Annually, on May 2 and November 2, the Trustee is to ensure that the value of the Bond Reserve Fund meets the Bond Reserve Requirement, with any shortfall ' to be cured by the Corporation by May 20 or November 20. In the event that the Corporation cannot cure the deficiency, the Trustee will request that the Town replenish the Bond Reserve Fund, but the Town's failure to do so will not constitute an Event of Default. Moneys in this .account are to be used by the Trustee to pay the principal, premium, and interest on the 20036 Bonds if the balance in the Bond Fund is insufficient to make required payments of interest, principal or redemption on the required dates. At maturity of the 20036 Bonds, the Bond Reserve Fund may be transferred to the Bond Fund to fund the final principal and interest payments. Timber Ridge Affordable Housing Corporation (A Colorado Non-Profit Corporation and A Component Unit of the Town of Vail, Colorado) Notes to the Financial Statements December 31, 2004 and 2003 (Continued) 3. Trust Indentures (continued) B. Subordinate Housing Facilities Revenue~Bonds, Series 20038 (continued) Additionally, the 20038 Indenture imposes requirements regarding the Project's operations, budgeting, insurance and management. 4. Cash and Cash Equivalents Cash and Cash Equivalents -Unrestricted: ' Cash in bank -Checking Cash in bank -Money market Total Cash and Cash Equivalents -Unrestricted Cash and Cash Equivalents -Restricted: Restricted for Tenant Security Deposits: t Cash in bank -Money market Restricted -Held by Trustee - 2003A Bonds: Replacement Reserve account -Money market ' Bond Interest Fund -Money market Bond Reserve Fund -Money market Restricted -Held by Trustee - 20036 Bonds: ' _ Bond Fund -Money market Bond Reserve Fund -Money market ' Total Cash and Cash Equivalents -Restricted ' 5. Fixed Assets ' Land Buildings Furniture and equipment Fixed assets - at cost ' Less: Accumulated depreciation Fixed Assets, net of Accumulated Depreciation 2004 2003 $ 100 100 14,702 .296,312 14,802 296,412 $ 17,941 29,775 90,812 90,311 - 1,004 17,477 194,072 108,289 285,387 - 65 223,382 222,947 223,382 223,012 $ 349,612 538,174 2004 2003 $ 4,399,500 4,399,500 15,578,000 15,578,000 30,897 30,897 20,008,397 20,008,397 (766,275) (240,829) $ 19,242,122 19,767,568 9 1 Timber Ridge Affordable Housing Corporation ' (A Colorado Non-Profit Corporation and A Component Unit of the Town of Vail, Colorado) Notes to the Financial Statements December 31, 2004 and 2003 ' (Continued) ' 6. Long-term Debt A. Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A ' The 2003A Bonds were issued July 15, 2003 in the principal amount of $19,025,000 as limited obligations of the Corporation, and not indebtedness of the Town. The 2003A Bonds are payable solely from the Pledged Revenues and the various reserve funds and ' .other monies pledged under the terms of the 2003A Indenture. The 2003A Bonds bear interest at the Weekly Rate established by the Remarketing Agent until converted to another "mode", including a Fixed Rate, by the Corporation. While in any interest rate mode other than a Fixed Rate, the 2003A Bonds are subject to repurchase upon demand by any bondholder at 100% of the outstanding principal amount plus accrued interest. All tendered bonds are then to be subsequently remarketed by the Remarketing Agent, as further described in Note 8.A., below. The 2003A Bonds are subject to redemption prior to Maturity (December 1, 2032 or specific maturity date, if converted to Fixed Rate) at the Corporation's option, using moneys in the Redemption Fund, as follows: ^ 2003A Bonds in a Daily Mode or Weekly Mode - on any date prior to Maturity at 100% of the principal amount, plus accrued interest. ^ 2003A Bonds in a Commercial Long-Term Mode -after the following No-Call Period and at the following redemption prices, plus accrued interest: Length of Rate Period Greater than 12 years No-Call Period 10 years from the Rate Change Date .Redemption Price 101%, declining 0.5% per 6 months to 100% Greater than 4 years, but less than 12 years Less than or equal to 4 years Until 2 years prior to the end of the Rate Period Length of the Rate Period 100% Not subject to optiorial redemption ^ 2003A Bonds bearing a Fixed Rate -after the following No-Call Period and at the following redemption prices, plus accrued interest: Length of Rate Period Greater than 12 years No-Call Period 10 years from the Conversion Date Redemption Price 101 %, declining 0.5% per 6 months to 100% Greater than 4 years, but less than 12 years Until 2 years prior to Maturity 100% Less than or equal to Term to Maturity Not subject to optional 4 years redemption 10 Timber Ridge Affordable Housing Corporation (A Colorado Non-Profit Corporation and A Component Unit of-the Town of Vail, Colorado) Notes to the Financial Statements December 31, 2004 and 2003 (Continued) Long-term Debt (continued) A. Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A (continued) From the date of issuance through December 31, 2004, the 2003A Bonds have been in the Weekly Mode, with interest rates set by the Remarketing Agent. Interest rates on the 2003A Bonds ranged from 1.19% to 2.54% per annum in 2004, and from 1.20% to 1.27% per annum from issuance through December 31, 2003. At December 31, 2004, the interest rate on the 2003A Bonds was 2.52% per annum (1.22% at December 31, 2003). Total interest expense for 2004 incurred in respect of the 2003A Bonds was $304,444 ($108,359 for the period ended December 31, 2003). As of December 31, 2004, annual debt requirements to maturity for the 2003A Bonds (assuming that the 2003A Bonds remain at the year-end interest rate and mode) are as follows: Years 2005 2006 2007 2008 2009 2010 - 2014 2015 - 2019 2020 - 2024 2025 - 2029 2030 - 2032 Principal $ - 405,000 2,385,000 3,100,000 4,035,000 5,235,000 3,865,000 Interest 479,430 479,430 479,430 479,430 479,430 2,232,216 1,897,308 1,462,230 896,616 198,072 Total 479,430 479,430 479,430 479,430 884,430 4,617,216 4,997,308 5;497,230 6,1,31,616 4;063,072 $ 19,025,000 9,083,592 28,108,592 B. Subordinate Housing Facilities Revenue Bonds, Series 20036 The 20036 Bonds were issued July 15, 2003 in the principal amount of $1,570,000 as subordinated, limited obligations of the Corporation, and not indebtedness of the Town. The 20036 Bonds are payable solely from the Pledged Revenues and the various reserve funds and other monies pledged under the terms of the 20038 Indenture, but the pledge of security interest in the Pledged Revenues is subordinated to the pledge of these same revenues for payment of the 2003A Bonds. The 20038 Bonds bear interest at the rate of 6.25% per annum, with semi-annual blended payments of interest and principal on June 1 and December 1 annually. During 2004, the Corporation incurred interest expense totaling $97,474 in respect of the 20036 Bonds ($44,986 for the period ended December 31, 2003). The 20038 Bonds mature December 1, 2013 but are subject to prior redemption, at the ' Corporation's option, at 100% of the principal amount, plus accrued interest; provided that redemption of the bonds is not from the proceeds of refunding bonds or other financing by the Corporation. 11 Timber Ridge Affordable Housing Corporation (A Colorado Non-Profit Corporation and A Component Unit of the Town of Vail, Colorado) Notes to the Financial Statements December 31, 2004 and 2003 (Continued) ~ , Long-term Debt (continued) B Subordinate Housing Facilities Revenue Bonds, Series 20038 (continued) As of December 31, 2004, annual debt requirements to maturity for the 20036 Bonds are as follows: Years 2005 2006 2007 2008 2009 2010 - 2013 Principal $ 130,000 140, 000 145,000 155,000 145,000 740,000 Interest 90,938 82,813 74,063 65,000 55,313 120,625 $ 1,455,000 C. 488,752. Total Promissory Note -Town of Vail 220,938 222,813 219,063 220,000 200,313 860,625 1,943,752 In connection with the Corporation's purchase of the Project, the Town advanced $1,000,000 to the Corporation upon execution of a promissory note (the "Town Note"). The Town Note, which bears interest at the rate of 1.5% per annum, matures December 1, ,2032. The Town Note is payable solely from the Pledged Revenues, but the pledge of security interest in the Pledged Revenues is subordinated to the pledge of these same revenues for payment of the 2003A Bonds and the 20038 Bonds. The Town Note is payable to the extent that the Corporation has determined that excess ' net revenues of the Project, after provision for necessary operating or capital reserves, have accumulated semi-annually on the business day following debt service on the 20036 Bonds. The Town Note may be repaid by the Corporation at any time without penalty. ' In the event that the a shortfall arises in the Bond Reserve Funds for the 2003A Bonds and/or the 20038 Bonds which !s not cured within the prescribed deadlines by the Corporation, the Trustee will request that the Town replenish the deficient Bond Reserve ' Fund, and the Town has agreed to consider such requests but is not obligated to do so. Any funds advanced by the Town to replenish Bond Reserve Funds will be considered additional loans by the Town, subject to the same terms as the original Town Note. The Town's failure to replenish any deficiency in the Bond Reserve Funds will not constitute ' an Event of Default for the 2003A Bonds or the 20038 Bonds. The Corporation incurred interest expense totaling $15,000 during 2004 ($6,875 for the period ended December 31, 2003) in respect of the Town Note. At December 31, 2004, ' the Corporation had accrued a tots! of $21,875 ($6,875 at December 31, 2003) in interest payable to the Town under,the terms of the Town Note. 12 Timber Ridge Affordable Housing Corporation ' (A Colorado Non-Profit Corporation and A Component Unit of the Town of Vail, Colorado) Notes to the Financial Statements December 31, 2004 and 2003 ' (Continued) 7. Credit .Facility and Reimbursement Agreement In connection with the issuance of the 2003A Bonds, an irrevocable, stand-by, direct pay letter of credit (the "CredifiFacility') in the amount of $19,207,432 was established July 17, 2003 by U.S. ' Bank, National Association ("U.S. Bank") in favor of the Trustee for the 2003A Bonds. Under the terms of the Credit Facility, up to $19,025,000 may be drawn to pay principal amounts of the 2003A Borids, and up to $182,432 may be drawn to pay up to 35 days' accrued interest on the ' 2003A Bonds at a maximum rate of 10% per annum. Available credit under the Credit Facility will be permanently and proportionately reduced upon notice from the Trustee of redemption of less than all of the 2003A Bonds. ' The Credit Facility expires at the earlier of: a. July 17, 2008, although it automatically renews for successive one-year terms (unless U.S. Bank notifies the Trustee that the Credit Facility has not been renewed), ' b. 15 days following notice by U.S. Bank requiring payment of all outstanding 2003A Bohds due to Default, c. The date of acceleration or redemption of all 2003A Bonds, d. The second business day after conversion of the 2003A Bonds to a Fixed Mode interest rate, or e. The date of surrender of the Credit Facility for cancellation, as required by the Indenture. Concurrent with the Credit Facility, the Corporation executed a Reimbursement Agreement and a Demand Note in favor of U.S. Bank, evidencing the Corporation's obligation to repay all advances under the Credit Facility, together with interest on all such draws. All amounts drawn on or ' charged against the Credit Facility bear interest at the Bank Rate, which is equal to U.S. Bank's Prime Rate plus 200 Basis Points. The Credit Facility automatically renews each year, subject to the Corporation's compliance with requirements as to operational performance of the Corporation, ' provision of certain records to the Trustee, and payment of all fees (including annual stand-by fees equal to 125 Basis Points calculated on the original credit commitment, plus U.S. Bank's standard fees and charges for processing draws on the Credit Facility). ' Pursuant to this arrangement, the Corporation incurred financing fees during 2004 totaling $243,759 ($111,154 for the period ended December 31, 2003) for U.S. Bank in respect of stand- by fees for the Credit Facility. During the period ended December 31, 2003, U.S. Bank was paid an origination fee in connection with the Credit Facility of $192,074 (2004 - $0) from the proceeds ' on issuance of the 2003A Bonds, which has been capitalized as Bond Issue Costs. During 2004, the Corporation drew and repaid $285,893 ($86,921 for the period ended December ' 31, 2003) of advances on the Credit Facility. At December 31, 2004 and 2003, no balance was outstanding on the Credit Facility. The Reimbursement Agreement imposes the following funding commitments on the Corporation: ' a. Commencing January 1, 2009, the Corporation is to deposit into the Bond Principal Fund an amount.equal to 1/12th of the scheduled principal reductions for the 2003A Bonds, to be used by the Trustee to pay for optional redemptions as provided in the 2003A Indenture. b. $90,000 was paid from the proceeds of issuance of the 2003A Bonds into a Replacement Reserve account. Annually thereafter, the Corporation is to deposit an equal amount ' increased by 3% per annum into the Replacement Reserve account, with usage of such funds restricted to capital improvements to the Project approved by U.S. Bank. The Replacement Reserve Account is pledged to U.S. Bank and not the owners of the 2003A ' Bonds. 13 Timber Ridge Affordable Housing Corporation ' (A Colorado Non-Profit Corporation and A Component Unit of the Town of Vail, Colorado) Notes to the Financial Statements December 31, 2004 and 2003 (Continued) ' 7. Credit Facility and Reimbursement Agreement (continued) c. The Corporation is required to deposit all security deposits received from tenants of the Project into a separate account. d. Commencing August 1, 2004 and annually thereafter, the Corporation is to deposit into a Rate Cap Escrow Account an amount not less than $45,000, to be used only to pay for required rate protection agreements. ' As required by the Reimbursement Agreement and for as long as the Credit Facility is outstanding, the Corporation is required to have in effect a rate protection agreement at a fixed interest rate acceptable to U.S. Bank in an amount equal to the then-outstanding principal amount ' of the Credit Facility, with a floating rate payer acceptable to U.S. Bank. The Corporation's rate protection agreement is described in Note 8.6., below. ' 8. Significant Agreements and Contracts A. Remarketing Agreement ' Under the terms of the 2003A Indenture, George K. Baum & Company ("Baum") is appointed Remarketing Agent and is responsible for determining the interest rates applicable to the outstanding 2003A Bonds. The interest rate to be set by Baum at each ' Rate Determination Date is to be the minimum rate of interest necessary to enable Baum to sell the 2003A Bonds at that Date at a price equal to the principal amount plus accrued interest, but will not exceed 10% per annum. Baum is to be reimbursed for all expenses incurred in its duties as Remarketing Agent plus, while the 2003A Bonds do not bear a ' ~ Fixed Rate of interest, an annual fee equal to 1 /8th of 1 % of the weighted daily principal amount outstanding. Baum and the Corporation will negotiate Baum's fees for remarketing services if the 2003A Bonds are converted to a Fixed Rate. In 2004, the Corporation incurred fees totaling $23,781 ($10,832 during the period ended December 31, 2003) for Baum in respect to its services as Remarketing Agent. B. Rate Protection Agreement Effective July 15, 2003, the Corporation entered into a Rate Protection Agreement with SMBC Derivative Products Limited ("SMBC") whereby SMBC agreed to limit the Corporation's interest payable on the 2003A Bonds to 4% per annum through August 1, t 2006. During the period ended December 31, 2003, SMBC was paid a fee of $133,000 (2004 - $0) for its services under the Rate Protection Agreement, which has been capitalized as Bond Issue Costs. ' C. Management Agreement Effective July 17, 2003, the Corporation entered into an agreement with Corum Real Estate Group, Inc. ("Corum"), whereby Corum is to provide management of the day-to- day operations of the Project. The agreement has aone-year term and is subject to automatic renewal for additional one-year periods unless otherwise terminated as ' ~ provided in the agreement. Under the terms of the agreement, Corum is to be reimbursed for all charges, including staffing, incurred on behalf of the Corporation in the management of the Project. Corum is also to be paid a management fee equal to the greater of $8,000 per month or 5% of total gross collected income from the property. Effective January 1, 2004, the Corporation and Corum informally agreed to amend the management fee calculation to equal the greater of $4,000 per month or 5% of total gross collected income from the property. 1 14 Timber Ridge Affordable Housing Corporation ' (A Colorado Non-Profit Corporation and A Component Unit of the Town of Vail, Colorado) Notes to the Financial Statements December 31, 2004 and 2003 ' (Continued) ' 8. Significant Agreements and Contracts (continued) C: Management Agreement (continued) Total expenses, including reimbursements, incurred under the management contract for 2004 and for the period ended December 31, 2003 were as follows: ' 2004 2003 Advertising $ 11,099 2,162 Office expenses 5,902 2,803 ' Management fee 58,675 44,658 Telecommunications 5,315 2,553 Wages -Administrative 75,187 44,385 Wages -Maintenance and other 111,550 56,494 Repairs and maintenance 2,310 32 Miscellaneous 1,612 545 Mold remediation 15,087 10,034 Subtotal -Expenses 286,737 163,666 Equipment purchased and capitalized - 8,397 ' Totals $ 286,737 172,063. The Corporation had balances of $18,212 and $24,093 payable to Corum at December ' 31, 2004 and 2003, respectively. D. Laundry Room Lease ' During the period ended December 31, 2003, the Corporation entered into an agreement with Automatic Laundry Company, Ltd. ("Automatic"), under which the Corporation leased space at the Project to Automatic for the installation and operation of coin laundry ' facilities. The lease, which has an initial term of 10 years and automatically renews for similar 10-year periods unless otherwise terminated, requires Automatic to pay monthly lease payments equal to the greater of $5 or 90% of the gross monthly collections in excess of $34 (as adjusted for cost-of-living index changes) per machine. The lease also calls for Automatic to pay a rental premium during the first 27 months of the initial lease term equal to the greater of $667 per month or 14% of Automatic's gross monthly collections. As required by the lease, Automatic paid the Corporation a prepaid rental ' premium of $18,000 during the period ended December 31, 2003, which is being amortized to the Corporation's income over the first 27 months of lease agreement, with the unearned portion of this prepayment included in Deferred Revenues. ' E. Master Lease Agreement Effective November 1, 2003, the Corporation entered into cone-year master lease agreement (the "Master Lease") with The Vail Corporation d/b/a Vail Associates, Inc. ("Vail Associates") under which Vail Associates agreed to lease from the Corporation, for sublet to its employees, $0 - 52 units at a monthly rental rate of $1,125 per unit. Effective November 1, 2004, the Master Lease was amended to increase the number of leased ' units to 95, reduce the monthly rental rate to $1,075, and extend the term of the agreement to October 31, 2006. 15 Timber Ridge Affordable Housing Corporation ' (A Colorado Non-Profit Corporation and A Component Unit of the Town of Vail, Colorado) Notes to the Financial Statements December 31, 2004 and 2003 (Continued) ' 9. Concentrations Lease payments received by the Corporation during 2004 under the terms of the Master Lease with Vail Associates constituted approximately 68% of the Corporation's rental revenues (72% for ' the period ended December 31, 2003). 10. Net Assets (Deficit) ' The Corporation had a deficit of net assets of $1,335,553 and $409,681 at December 31, 2004 and 2003, respectively. ' 11. Mold Remediation During the period ended December 31, 2003, the Corporation began remediation and other ' precautionary renovations to the Project to alleviate potential and identified mold problems in 90 rental units. Additional units were renovated during 2004. The Corporation incurred mold remediation costs totaling $252,655 during 2004 ($372,470 for the period ended December 31, 2003). Costs of further remediation and renovations will be charged to operations in future ' periods, as the extent of such additional repairs has not been determined at December 31, 2004. 12. Compliance with Trust Indenture and Reimbursement Agreement ' As described in Note 3.A.e., above, the 2003A Indenture establishes initial funding of the Bond Reserve Fund for the 2003A Bonds at $317,094 and requires additional funding during 2004. However, the 2003A Indenture also permits the Trustee to release moneys in the Bond Reserve ' Fund to the Corporation to pay operating and maintenance expenses of the Project. During 2004, a total of $176,788 ($123,212 for the period ended December 31, 2003) was released to the Corporation pursuant to these provisions in the 2003A Indenture. As a result, balances at ' December 31, 2004 and 2003 in the Bond Reserve Fund for the 2003A Bonds were less than the Bond Reserve Requirement of $595,157 and $317,094, respectively. As described in Note 7, above, the Reimbursement Agreement with U.S. Bank requires the Corporation to fund a Replacement Reserve in 2003 and annually thereafter. While the Corporation made the required deposit to the Replacement Reserve account for 2003, the additional funding requirement for 2004 ($92,700) was not deposited to the Replacement Fund. Consequently, the balance in the Replacement Reserve account at December 31, 2004 is $91,888 less than required by the Reimbursement Agreement. The Reimbursement Agreement also requires that, commencing August 1, 2004 and annually thereafter, the Corporation deposit into a Rate Cap Escrow account an amount not less than. $45,000, to be used only to pay for required rate protection agreements. As of December 31, 2004, the Corporation had not made the required deposit into a Rate Cap Escrow account. 13. Concentration of Credit Risk - 2003 The Corporation maintains its cash balances with a financial institution located in Greenwood ' Village, Colorado. These balances are insured by the Federal Deposit Insurance Corporation up to $100,000. At December 31, 2003, the Corporation's uninsured cash balances totaled $328,563 .(2004 - $0). 16 Timber Ridge Affordable Housing Corporation (A Colorado Non-Profit Corporation and A Component Unit of the Town of Vail, Colorado) Notes to the Financial Statements December 31, 2004 and 2003 (Continued) 14. Going Concern The Corporation's total expenses exceeded aggregate revenues by $925,872 for 2004. This ' follows the Corporation's $409,681 reduction of net assets in the period from inception of operations, July 1.7, 2003, to December 31, 2003. While the Corporation's revenues did increase in 2004 from the preceding period, the ability of the Corporation to further increase rental revenues is limited because mold problems in the remaining rental units in the Project must first ' be remediated, at substantial cost to the Corporation. Since the inception of operations, the Corporation has incurred mold remediation costs totaling $625,125, which represents a considerable portion of the Corporation's expenses. As of December 31, 2004, 84 of the 198 units at the Project were unavailable for rental due to mold concerns. t The Corporation's liquidity position has also declined in 2004, as cash and current receivables decreased by $299,223 from December 31, 2003 without a significant corresponding decrease in ' current liabilities. In addition to limitations on the Corporation's revenue base and reduced liquidity, the Corporation has substantial long-term debt obligations. As detailed in Note 6.A., above, the 2003A Bonds ' currently bear a variable weekly interest rate. Short-term interest rates have increased steadily since the issuance of these bonds in 2003, and have trended higher in 2005. Higher interest costs will have a significant adverse impact on the Corporation's cash flows. ,Since the Corporation's revenue base is limited without further significant expenditures on mold remediation, interest rates payable on the Corporation's debt are climbing, and since the Corporation has already taken some measures to control operating costs and may not be able to t further reduce discretionary spending, the above factors may impact the Corporation's ability to meet obligations as they come due. ' The Corporation's Board considers the above factors significant to its future operations and has developed the following plans to address the Corporation's cash flow issues in the short term and to pursue redevelopment of the Project in the longer term. • 44 units at the Project have been identified for remediation at an estimated cost of $8,000 to $9;000 per unit. A master lessee for these units has been identified and the Board expects each unit to generate approximately $1,000 per month after incremental expenses, beginning ' ~ as early as October 2005. • The Town has agreed to make a loan of $700,000 to the Corporation to cover remediation costs and other cash requirements through the end of 2005. The loan from the Town is conditioned upon the Corporation's Board obtaining a signed master lease before proceeding ' with the planned remediation of selected units, and upon the Corporation's distribution to interested parties in June 2005 of a request for proposal ("RFP") for redevelopment of the Project. This additional loan will advanced under the same terms and conditions as the existing Town Note described in Note 6.c., above, and will be similarly subordinated to the ' 2003A Bonds and the 20036 Bonds. The Corporation's Board projects that, upon remediation and rental of the additional units; rental ' revenues will be sufficient to cover operating expenses and debt service for the next three to four years. During that-time, the Board will actively pursue redevelopment of the property, beginning with the issuance of a RFP in June 2005. 17 MCMAHAN AND ASSOCIATES, L.L.C. Certified Public Accountants and Consultants SUITE 222/AVON CENTER 100 WEST BEAVER CREEK BLVD. P.O. Box 5850 AvoN, CO 8 1620 To the Board of Directors Timber Ridge Affordable Housing Corporation Vail, Colorado WEB SITE: WWW.MCMAHANCPA.COM TELEPHONE: (970) 845-8800 FACSIMILE: (970) 845-0851 E-MAIL: MCMAHAN~Q MCMAHANCPA.COM We have recently completed the audit of the financial statements for Timber Ridge Affordable Housing Corporation ("TRAHC") as of and for the year ended December 31, 2004. In connection with our audit, we noted the following matters which are presented for your further consideration. Going Concern At the end of 2004, TRAHC had a deficit net asset balance of $1,335,553 which represents a decline of $925,872 from December 31, 2003. This deterioration in financial position is largely attributable to the impact of mold remediation at the project: vacancy rates have exceeded expectations and significant, unanticipated remediation costs have been incurred ($625,125 from inception of operations). While approximately 60% of the units at the project are now rentable, it is uncertain whether TRAHC will be able to meet future debt service obligations at this level of operations. If interest rates continue to increase beyond the level at the year-end, TRAHC's cash flows will be significantly and adversely affected. Further, TRAHC will begin principal repayments in 2009 on the Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A (the "2003A Bonds"), which will impose even greater cash flow demands through maturity in 2032. At current operating levels, TRAHC appears unlikely to make these scheduled debt repayments. Given these factors, our audit opinion includes an explanatory paragraph noting the adverse pressures on TRAHC and our uncertainty as to its ability to continue as a going concern. It is imperative that TRAHC and the Town of Vail (the "Town") continue to work with lenders, vendors, and other concerned parties to arrive at a viable plan for the future of the project. Compliance with Trust Indenture The Trust Indenture for the 2003A Bonds required TRAHC to deposit $317,094 from the proceeds of issuance into a Bond Reserve Fund, with an additional $278,063 to be deposited by July 15, 2004. Semi- annually, the Trustee (U.S. Bank) is to determine if the balance in the Bond Reserve Fund meets the Bond Reserve Requirement (i.e., 50% of the maximum annual principal and interest due on the 2003A Bonds) and to request that TRAHC cure any shortfall. If TRAHC is unable to cure the deficiency, the Trustee is obliged to request that the Town replenish the Bond Reserve Fund, although the Town may decline this request without triggering default on the 2003A Bonds. The Trust Indenture also permits the Trustee to release moneys in the Bond Reserve Fund to TRAHC to pay operating and maintenance expenses of the Project. Pursuant to these provisions in the Trust Indenture, a total of $300,000 has been released to TRAHC through December 31, 2004 ($176,788 during 2004 and $123,212 for the period ended December 31, 2003). As a result, the balance in the Bond Reserve Fund at December 31, 2004 and 2003 was $577,681 less than the required balance established by the Trust Indenture. While the Trustee has not yet called upon either TRAHC or the Town to correct the shortfall in the Bond Reserve Fund, TRAHC should incorporate funding of this amount into future operating budgets. Performing services throughout Colorado D. Jerry McMahan, C.P.A. Daniel R. Cudahy, C.P.A. Paul J. Backer, C.P.A. Michael N. Jenkins, C.A., C.P.A. Members: American Institute o~ Certi~ied Public Accountants/Colorado Society o~ C'erti~ied Public Accountants ~'`fo the Board of Directors Tauber Ridge Affordable Housing Corporation Page 2 of 2 Compliance with Reimbursement Agreement In conjunction with the issuance of the 2003A Bonds, TRAHC entered into a Reimbursement Agreement with U.S. Bank. The Reimbursement Agreement required TRAHC to deposit $90,000 from the proceeds of issuance of the 2003A Bonds into a Replacement Reserve account, with annual deposits of an equal amount increased by 3% per annum. TRAHC did not make the required deposit of $92,700 into the Replacement Reserve acxount for 2004. Consequently, the balance in the Replacemen# Reserve account at December 31, 2004 was $91,888 less than required by the Reimbursement Agreement. The Reimbursement Agreement also requires that, commendng August 1, 2004 and annually thereafter, the Corporation deposit into a Rate Cap Escrow acxount an amount not less than $45,000, to be used only to pay for required rate protection agreements. As of December 31, 2004, the Corporation had not made the required deposit into a Rate Cap Escrow account. While U.S. Bank has not yet called upon TRAHC to correct the shortfalls in the Replacement Reserve and Rate Cap Escrow accounts, TRAHC should incorporate funding of this amount into future operating budgets. Exemption from Sales Taxes In testing TRAHC's 2004 disbursements, we noted instances in which TRAHC paid vendor billings for federal exdse or sales taxes, state sales taxes, or local sales or franchise taxes. As an "affiliate" of a local government, TRAHC should be exempt from such charges. Personnel at TRAHC's management company, forum Real Estate Group, Inc. ("forum°), have indicated that forum's acxounting staff was aware of this and was working with on-site staff to ensure that all vendors recognize TRAHC's tax-exempt status. Record Retention -Meeting Minutes We were unable to locate minutes for two scheduled meetings of TRAHC's Board during 2004 for which agendas were prepared. While it is not readily apparent if these meetings actually took place, the Board's Secretary should ensure that complete minutes are taken for all meetings, and retained for future reference. Changes to Management Contract Effective January 1, 2004, TRAHC and forum informally agreed to amend the management fee calculation specified in the management contract executed July 17, 2003. While management fees charged by forum during 2004 complied with the revised calculation, there is no record of the approval of this change in minutes of Board meetings or in a document signed by both parties. Modifications of significant contract terms should be approved by the Board (with such approval noted in meeting minutes) and documentation executed to darify the understanding of both parties as to their respective rights and responsibilities under the new arrangement. We would be pleased to further discuss our comments with you at your convenience, or to assist with implementation of recommendations. Yours very truly, /`~C ~~C amt ~sa~ ~ PLC" . McMahan and Associates, L.L.C. February 17, 2005 Vail Local Marketing District (A Component Unit of the Town of Vail, Colorado) Financial Report December 31, 2004 Vail Local Marketing District (A Component Unit of the Town of Vail, Colorado) Financial Report December 31, 2004 Table of Contents INDEPENDENT AUDITOR'S REPORT Management's Discussion and Analysis Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets Statement of Activities Fund Financial Statements: Balance Sheet -Governmental Fund -General Fund Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Fund -General Fund Notes to the Financial Statements Required Supplementary Information: Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual -General Fund Page Al B1 - B5 C1 C2 C3 C4 D1 : D6 E 1 - E2 MCMAHAN AND ASSOCIATES, L.L.C. Certified Public Accountants and Consultants WEB SITE: WWW.MCMAFiANCPA.COM SUITE 222/AVON CENTER TELEPHONE: (970) 84S-88O0 I OO WEST BEAVER CREEK BLVD. FACSIMILE: (970) $4S-O8S I P.O. BOX 5850 AvoN, CO $ 1620 E-MAIL: MCMAHAN@MCMAHANCPA.COM INDEPENDENT AUDITOR'S REPORT To the Board of Directors Vail Local Marketing District Vail, Colorado We have audited the accompanying basic financial statements of Vail Local Marketing District ("the District"), a component unit of the Town of Vail, Colorado, as of and for the year ended December 31, 2004, as listed in the table of contents. These financial statements are the responsibility of the District's management. Our responsibility is to express opinions on these financial statements based on our audit. ' We conducted our audit in accordance with U.S. generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Vail Local Marketing District as of December 31, 2004, and the changes in its financial position for the year then ended in conformity with U.S. generally accepted accounting principles. Management's Discussion and Analysis in section B is not a required part of the basic financial ' statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. ' However, we did not audit the information and express no opinion on it. The budgetary comparison schedule in section E is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. The ' budgetary fund information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. 1 ~I `~`~ /UII Guno1 7~5~ ~ ~G~' . t McMahan and Associates, L.L.C. March 15, 2005 Performing services for local governments throughout Colorado ' D. Jerry McMahan, C.P.A. Daniel R. Cudahy, C.P.A. Paul J. Backes, C.P.A. Michael N. Jenkins, C.A., C.P.A. Members: American Institute of C'erti{ied Public Accountants/Colorado Society of Certified Public Accountants ' National and Colorado Government Finance O{~icers Association/Colorado Municipal I,ea~ue Al MANAGEMENT'S DISCUSSION AND ANALYSIS ' Vail Local Marketing District Management's Discussion and Analysis December 31, 2004 As management of the Vail Local Marketing District (the "District"), we offer readers of the District's financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended December 31, 2004. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the District's basic financial statements. The District's basic financial statements comprise three components: 1) government-wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. Government-wide financial statements: w The government-wide financial statements are designed to provide readers with a broad overview of the District's finances, in a manner similar to aprivate-sector business. The Statement of Net Assets presents information on all the District's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The Statement of Activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. The governmental activity of the District is economic development and marketing of businesses in the Town of Vail, Colorado (the "Town"). The District does not currently conduct business-type activities, nor are there currently any component units of the District. However, the District is a component unit of the Town. The government-wide financial statements can be found on pages C1 and C2 of this report. Fund financial statements: A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District currently has one fund, the General Fund, which is a governmental fund. Governmental funds: ' Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial ' statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing ' decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 1 B1 Overview of the Financial Statements (continued) Governmental funds (continued): The basic governmental fund financial statements can be found on pages C3 and C4 of this report. The District adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund on pages E1 and E2 to demonstrate compliance with this budget, as amended. Notes to the Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes provide a background of the District's operations and governing statutes, and discuss the accounting policies utilized by the District. The Notes to the Financial Statements can be found on pages D1 through D6 of this report. Government-wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the District, assets exceeded liabilities by $488,899 at the close of the most recent fiscal year. Approximately 10% of the District's net assets represent resources that are subject to external restrictions on how they may be used. While the remaining balance of unrestricted net assets ($441,889) may generally be used to meet the District's obligations to citizens and creditors, the District's Board has designated $237,000 for future repayment of working capital advanced by the Town. This leaves the District with $158,917 or approximately 33% of net assets available to fund future operations. The District has no net assets invested in capital assets at December 31, 2004. The following is a summary of the District's net assets at December 31, 2004 and 2003: Vail Local Marketing District's Net Assets 2004 2003 Assets: Current and other assets $ 544,250 563,449 Total Assets 544,250 563,449 Liabilities: Other liabilities Total Liabilities Net Assets: Restricted Unrestricted Total Net Assets 55,351 37,663 55,351 37,663 47,000 56,000 441,899 469,786 488,899 525,786 The District's net assets decreased by $36,887 during the current fiscal year; primarily because expenses associated with economic development exceeded lodging tax revenues. B2 ' Government-wide Financial Analysis (continued) The following is a summary of the changes in the District's net assets for 2004 and 2003: ' Vail Local Marketing District's Changes in Net Assets 2004 2003 ' Revenues Program revenues -Operating transfer from Town of Vail $ - 150,000 General revenues -Lodging tax 1,555,305 1,501,403 ' General revenues -Other income 7,628 - General revenues -Interest income 3,290 5,122 Total Assets 1,566,223 1,656,525 ' Expenses: Economic development/marketing 1,603,110 1,841,609 Total Expenses 1,603,110 1,841,609 ' Change in Net Assets (36,887) (185,084) Net Assets -January 1 525,786 710,870 Net Assets -December 31 $ 488,899 525,786 ' Governmental Activities: Because the District has a single governmental fund, its General Fund, all changes in the District's net ' assets are attributable to governmental activities. Financial Analysis of the District's Funds t As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. ' The focus of the District's governmental fund -the General Fund - is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of a fiscal year. The General Fund is the operating fund of the District. At the end of the current fiscal year, unreserved fund balance of the General Fund was $395,917; although the Board has designated $237,000 of this total for future repayment of funding advanced by the Town in 2001 as working capital for the District. As a measure of the General Fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 25% of total General ' Fund expenditures for 2004, while total fund balance represents 31 % of that same amount. The District's General Fund's fund balance decreased by $36,887 during 2004. The District budgeted an $83,000 decrease in fund balance in order to increase marketing expenses as anticipated lodging tax ' revenues were not expected to keep pace with expenditures. Actual lodging tax revenues exceeded budgeted amounts by $67,305, which resulted in the District having a positive variance from the total budget by $46,113. 1 63 Financial Analysis of the District's Funds (continued) Purchased services (contracted public relations, marketing coordination, etc.) comprise the largest source of expenditures for the District, at 62% of total 2004 expenditures. The following is a graphical summary of the District's expenditures for 2004: Vail Local Marketing District's Expenditures Groups and Meetings 21% Front Range 11% Purchased services 62 Destination 6% General Fund budgetary highlights: The District's 2004 budget was approved at the end of 2003, and amended once during 2004. The following are primary differences between the original budget and the final amended budget: • Total budgeted expenditures increased $30,000, as the advertising focus of each category for marketing was adjusted to meet the objectives of the District. Significant variances from the final 2004 budget were observed as follows: Variance Positive Account Final Budget Actual (Negative) Reason Revenues: The budget anticipated Lodging tax $ 1,488,000 1,555,305 67,305 reduced lodging tax due to construction. Expenses: Direct expenses for destination tourists Destination 123,000 91,160 31,840 decreased as the District joined into marketing partnerships. Higher than budgeted Purchased services 936,000 987,087 (51,087) Partnership marketing costs. B4 Capital Assets and Debt Administration The District has no capital assets and no long-term debt as of December 31, 2004, Economic Factors and Next Year's Budgets and Rates The Board considered many economic factors when preparing the District's budget for the 2005 fiscal year. During the current fiscal year, unreserved fund balance in the General Fund increased to $395,917. The District has approved budgeted expenditures of $1,547,300 for 2005 (which is 3% lower than 2004 actual expenditures), in recognition of the re-development occurring in Town, which may impact lodging tax revenues. Requests for Information This financial report is designed to provide a general overview of the Disfrict's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: Vail Local Marketing District c/o Town of Vail 75 South Frontage Road Vail, Colorado, 81657 65 GOVERNMENT-WIDE FINANCIAL STATEMENTS Vail Local Marketing District (A Component Unit of the Town-of Vail, Colorado) Statement of Net Assets December 31, 2004 Assets: Current assets: Cash and cash equivalents 153,946 Accounts receivable: Taxes and fees 344,322 Prepaid expenses 45,982 Total Assets 544,250 Liabilities: Current Liabilities: Accounts payable 55,351 Total Liabilities 55,351 Net Assets: Restricted for emergency reserves 47,000 Unrestricted 441,899 Total Net Assets 488,ggg The accompanying notes are an integral part of these financial statements. C1 Vail Local Marketing District (A Component Unit of the Town of Vail, Colorado) Statement of Activities For the Year Ended December 31, 2004 Program Expenses -Governmental Activities: Economic development/marketing Total Expenses Net Program Expenses -Governmental Activities General Revenues: Lodging tax Other income Interest income Total General Revenues Change in Net Assets Net Assets -January 1 Net Assets -December 31 The accompanying notes are an integral part of these financial statements. C2 1, 603,110 1,603,110 (1,603,110) 1,555,305 7,628 3,290 1,566,223 (36,887) 525,786 488,899 Vail Local Marketing District (A Component Unit of the Town of Vail, Colorado) Balance Sheet Governmental Fund -General Fund December 31, 2004 Assets: Cash and cash equivalents Accounts receivable: Taxes and fees Prepaid expenses Total Assets Liabilities and Fund Balance: Liabilities: Accounts/vouchers payable Total Liabilities Fund Balance: Reserved for prepaid expenses Reserved for emergency reserves Designated for repayment of working capital to Town of Vail Unreserved Total Fund Balance Total Liabilities and Fund Balance 153,946 344,322 45,982 544,250 55,351 55,351 45,982 47,000 237,000 158,917 488,899 544,250 Reconciliation to Net Assets per Statement of Net Assets: Fund Balance -Governmental Fund (General Fund) 488,899 Amounts reported for governmental activities in the Statement of Net Assets are not different. Net Assets -Governmental Activities 48g,ggg The accompanying notes are an integral part of these financial statements. C3 Vail Local Marketing District (A Component Unit of the Town of Vail, Colorado) Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Fund -General Fund For the Year Ended December 31, 2004 Revenues: Lodging tax 1,555,305 Other income 7,628 Interest income 3,290 Total Revenues 1,566,223 Expenditures: Destination 91,160 Front Range 184,645 Groups and meetings 340,218 Purchased services 987,087 Total Expenditures 1,603,110 (Deficiency) of Revenues Over Expenditures (36,887) Fund Balance -January 1 525,786 Fund Balance -December 31 488,899 Reconciliation to Change in Net Assets per Statement of Activities: Net Change in Fund Balance -Governmental Fund (General Fund) 488,899. Amounts reported for governmental activities in the Statement of Activities are not different. Change in Net Assets -Governmental Activities 488,899 The accompanying notes are an integral part of these financial statements. C4 Vail Local Marketing District (A Component Unit of the Town of Vail, Colorado) ' . Notes to the Financial Statements December 31, 2004 1. Summary of Significant Accounting Policies ' Vail Local Marketing District (the "District') was established pursuant to Part 1 of Article 25, Title 29 of the Colorado Revised Statutes (the "Act") to promote the continued vitality of commercial business areas within the Town of Vail, Colorado (the "Town"), and to perform other public ' purposes specified in the Act. The District was authorized on November 2, 1999, by the Town's electorate in a general election, which also established a 1.4% tax on lodging within the Town's boundaries, effective January 1, 2000. Proceeds from the tax are to be used by the District for organization, management, promotion, and marketing of public events, for business recruitment, and for tourism promotion. ' The District's financial statements are prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), as applied to government units. The Governmental Accounting Standards Board ("GASB") is responsible for establishing GAAP for state and local governments ' through its pronouncements (Statements and Interpretations). The more significant accounting policies established by GAAP used by the District are discussed below. A. Reporting Entity ' The reporting entity consists of the primary government (i.e., the District) and all organizations for which the District is financially accountable. The District is considered ' financially accountable for legally separate organizations if it is able to appoint a voting majority of an organization's governing body and is either able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the District. Consideration is also given to other organizations, which are fiscally dependent; i.e., unable to adopt a budget, levy taxes, or issue debt without approval by the District. Organizations for which the nature and significance of their relationship with the District are such that exclusion would ' cause the reporting entity's financial statements to be misleading or incomplete are also included in the reporting entity. Based on the criteria above, the District is not financially accountable for any other entity However, the District is considered a component unit of the Town, since the District is governed by a Board of Directors (the "Board") consisting of members of the Town Council. Pursuant to the Act, the Town Council may appoint members of the Board, but ' the Town Council will continue to act as ex-officio members of the Board. B. Government-wide and Fund Financial Statements ' The District's basic financial statements include both government-wide (reporting the District as a whole) and fund financial statements (reporting the District's major funds). Both the government-wide and fund financial statements categorize primary activities as either governmental (i.e., normally supported by taxes and intergovernmental revenues) ' or business (i.e., relying to a significant extent on fees and charges for support) type activities. Currently, the District performs only governmental activities. 1. Government-wide Financial Statements In the government-wide Statement of Net Assets, the governmental activities columns are reported on a full accrual, economic resource basis, which ' recognizes all long-term assets and receivables as well as long-term debt and obligations. The District's net assets are reported in two parts-invested in capital assets, net of related debt, and unrestricted net assets.' D1 Vail Local Marketing District (A Component Unit of the Town of Vail, Colorado) Notes to the Financial Statements December 31, 20Q4 (Continued) Summary of Significant Accounting Policies (continued) B Government-wide and Fund Financial Statements (continued) Government-wide Financial Statements (continued) The government-wide Statement of Activities demonstrates the extent to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment, and 2} grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported as general revenues. The government-wide focus is on the sustainabi{ity of the District as an entity and the change in the District's net assets resulting from the current year's activities. 2. Fund Financial Statements The financial transactions of the District are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self-balancing accounts that comprises its assets, liabilities, reserves, fund equity, revenues and expenditures/expenses The fund focus is on current available resources and budget compliance. The District reports only one fund -the General Fund -which accounts for all activities of the general government not accounted for in some other fund. Lodging tax revenues and other sources of revenue used to finance the fundamental operations of the District are included in this fund. C. Measurement Focus and Basis of Accounting Measurement focus refers to whether financial statements measure changes in current resources only (current financial focus) or changes in both current and long-term resources (long-term economic focus). Basis of accounting refers to the point at which reverues, expenditures, or expenses are recognized in the accounts and reported in the financial statements. Long-term Economic Focus and Accrual Basis Governmental activities in the government-wide financial statements use the long-term economic focus and are presented on the accrual basis of accounting Revenues are recognized when earned and expenses are recognized when incurred, regardless of the timing of the related cash flows. D2 Vail Local Marketing District (A Component Unit of the Town of Vail, Colorado) Notes to the Financial Statements December 31, 2004 (Continued) I. Summary of Significant Accounting Policies (continued) ' C. Measurement Focus and Basis of Accounting (continued) ' 2. Current Financial Focus and Modified Accrual Basis ' The governmental fund financial statements use the current financial focus and are presented on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual; i.e., both measurable and available. "Available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are generally recognized when the related liability is incurred. The exception to this general rule is that principal and interest on general long-term debt, if any, are recognized when due. ' D. Financial Statement Accounts 1. Cash and Cash Equivalents Cash and cash equivalents are defined as deposits that can be withdrawn at any time without notice or penalty, and investments with original maturities of three months or less. 2. Receivables Receivables are reported net of an allowance for uncollectible accounts. ' However, no allowance for uncollectible accounts has been established, as the District considers all accounts to be collectible. ' 3. Prepaid Expenses Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. 4. Fund Equity In both government-wide and fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific ' purpose. 5. Use of Estimates ' The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and ' disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. D3 Vail Local Marketing District (A Component Unit of the Town of Vail, Colorado) Nates to the Financial Statements December 31, 2004 (Continued) Reconciliation of Government-wide and Fund Financial Statements A. Explanation of certain differences between the governmental fund Balance Sheet and the government-wide Statement of Net Assets The governmental fund Balance Sheet includes a reconciliation between Fund balance - Governmenta/ funds and Nef assets -Governmental activities as reported in the government-wide Statement of Net Assets. -The District does not have any reconciling items at December 31, 2004. B. Explanation of certain differences between the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balance and the government-wide Statement of Activities The governmental fund Statement of Revenues, Expenditures and Changes in Fund Balance includes a reconciliation between Net change in fund balance -Governmental funds and Changes in net assets -Governmental activities as reported in the government-wide Statement of Activities. The District does not have any reconciling items at December 31, 2004.. Stewardship, Compiiance, and Accountability A. Budgetary Information The District adopts an annual budget on a basis consistent with U.S. GAAP, with annual appropriations for all funds. Expenditures may not legally exceed appropriations at the fund level. All appropriations lapse at year end. As required by Colorado statutes, the District complied with the following schedule in preparing, approving, and enacting its budget for 2004: (1) On or before September 30, 2003, the District submitted to the Board a recommended budget that details the revenues necessary to meet the District's operating requirements. This was done on September 16, 2003. (2) After appropriate public notice and a required public hearing, the Board adopted the proposed budget and an appropriating resolution that legally appropriated expenditures for the upcoming year on or before December 5, 2003. The Board adopted the 2004 budget on December 16, 2003. (3) After adoption of the initial budget resolution, the District may make the following changes: (a} supplemental appropriations to the extent of revenues in excess of the estimated in the budget; (b) emergency appropriations; and (c) reduction of appropriations for which originally estimated revenues are insufficient. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed by the District because it is at present considered not necessary to assure effective budgetary control or to facilitate effective cash planning and control. During the year, supplemental appropriations were required. D4 Vail Local Marketing District ' (A Component Unit of the Town of Vail, Colorado) Notes to the Financial Statements December 31, 2004 ' (Continued) III. Stewardship, Compliance, and Accountability (continued) B. TABOR Amendment In November 1992, Colorado voters amended Article X of the Colorado Constitution by ' adding Section 20, commonly known as the Taxpayer's Bill of Rights ("TABOR"). TABOR contains revenue, spending, tax and debt limitations that apply to the State of Colorado and local governments. TABOR requires, with certain exceptions, advance voter ' approval for any new tax, tax rate increases, a mill levy above that for the prior year, extension of any expiring tax, or tax policy change directly causing a net tax revenue gain to any local government. Except for refinancing banded debt at a lower interest rate or adding new employees to existing pension plans, TABOR requires advance voter approval for the creation of any multiple-fiscal year debt or other financial obligation unless adequate present cash reserves are pledged irrevocably and held for payments in all future fiscal years. TABOR also requires local governments to establish emergency reserves to be used for declared emergencies only. Emergencies, as defined by TABOR, exclude economic conditions, revenue shortfalls, or salary or fringe benefit increases. These reserves are required to be 3% or more of fiscal year revenue. As required by TABOR, the District has reserved $47,000 of its fund balance in the General Fund for emergencies, which is the approximate required reserve at December 31, 2004. The ballot question approved by voters on November 2, 1999, which established the 1.4% tax on lodging within the Town's boundaries also authorized the District to collect and spend the proceeds of the lodging tax, investment income, and all other revenues, without regard to the limitations imposed by TABOR, effective January 1, 2000. The District's management believes it is in compliance with the financial provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of its provisions will require judicial interpretation. IV. Detailed Notes on All Funds ~ A. Deposits and Investments ' The Colorado Public Deposit Protection Act (the "PDPA") requires that all units of local government deposit cash in eligible public depositories; eligibility is determined by State regulators. Amounts on deposit in excess of Federal Deposit Insurance Corporation ("FDIC") insurance levels must be collateralized. The eligible collateral is determined by the PDPA, which allows participating financial institutions to create a single collateral pool for all public funds. The pool is to be maintained by another institution or held in trust for all uninsured public deposits as a group. The market value of the collateral must be at ' least equal to the aggregate uninsured deposits. GASB pronouncements have established the following three categories of deposit credit risk: (1) Insured or collateralized with securities held by the entity or by its agent in the entity's name; ' (2) Collateralized with securities held by the pledging financial institution's trust department or agent in the entity's name; (3) Uncollateralized. This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or ' agent but not in the entity's name. D5 Vail Local Marketing District (A Component Unit of the Town of Vail, Colorado) Notes to the Financial Statements December 31, 2004 (Continued) IV. Detailed Notes on All Funds (continued) A. Deposits and Investments (continued) At December 31, 2004, the District's cash deposits had a bank balance of $153,946, of which $100,000 was covered by FDIC insurance (Category 1) and $53,946 was collateralized by the financial institution as required by PDPA (Category 2). The difference between the bank and book amounts represents outstanding items which had not cleared the bank at year-end. B. Receivables At December 31, 2004, the District's receivables were comprised solely of 2004 lodging taxes collected by the Colorado Department of Revenue and remitted to the District in 2005. C. Reservation and Designation of Fund Balances At December 31, 2004, the fund balance of the District's General Fund was reserved for prepaid items ($45,982) and, as further described in Note III.B., above, the TABOR emergency reserve ($47,000). During 2001, the Town advanced $317,000 to provide working capital for the District. At December 31, 2004, the Town had designated a total of $80,000 of the $317,000 to be a permanent donation. Therefore, the District has designated $237,000 of its December 31, 2004 year-end fund balance in the General Fund for eventual repayment of this amount when the District is able to do so. V Other Information A. Risk Management The District is exposed to various risks of loss related to torts; theft of; damage to and destruction of assets; errors and omissions; workers compensation; general liability unemployment; and employee benefit expenses related to health, dental, and vision programs. The District has obtained commercial coverage for these risks and claims, if any, are not expected to exceed covered amounts. B. Related Party Transactions The District has executed a Coordination Agreement with Vail Valley Chamber & Tourism Bureau ("VVCTB") under which WCTB provides marketing coordination services to the District in return for a fee equal to 7% of total lodging taxes collected by the District. The District paid WCTB $108,871 for its services in 2004. The Codrdination Agreement also requires the District to pay 1 % of total lodging taxes collected by the District to the Town, as a fee for accounting services provided by the Town. Fees totaling $15,553 were incurred by the District during 2004 for accounting services provided by the Town. C. Compliance with State Statutes For the year ended December 31, 2004, the District's expenditures exceeded budgeted appropriations by $32,110; which may be a violation of Colorado budget laws D6 REQUIRED SUPPLEMENTARY INFORMATION Vail Local Marketing District ' (A Component. Unit of the Town of Vail, Colorado) Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual General Fund ' For the Year Ended December 31, 2004 (With Comparative Actual Amounts for 2003) 2004 Revenues: ' Lodging tax Other income Interest income ~~~~ Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual 1,488,000 1,488,000 1,555,305 67,305 1,501,403 7,628 7,628 - 3,290 3,290 5,122 ' Total Revenues 1,488,000 1,488,000 1,566,223 78,223 1,506,525 Expenditures: Destination: ' Advertising 205,000 123,000 91,160 31,840 318,710 Web marketing 35,000 - - - 17,500 Cross-sell 30,000 - - - 18,195 E-mail marketing 28,000 - - - 23,200 Database management 30,000 29,855 Partnerships 13,500 - - - _ Event marketing 50,000 - - - ~ 30,000 Cultural alliance 30,000 - 60,000 Co-op -Conventional ~ = 15,000 Co-op -Database - _ _ _ g,gOg Total -Destination 421,500 123,000 91,160 31,840 522,368 ' Front Range: Direct mail marketing 40,000 - - - 43,162 Advertising 98,500 184,000 184,645 (645) 158,764 Event marketing - - 20,000 ' Collateral 30,000 ~ ~ 44,191 Co-op -Conventional - - - - 15,000 Co-op -Database - - - - 10,000 Total -Front Range' 168,500 184,000 184,645 (645) 291,117 Groups and Meetings: Print advertising 95,000 95,000 100,468 (5,468) 90,741 Marketing services 36,000 36,000 36,182 (182) 32,858 ' Travel/tradeshows 85,000 95,000 95,153 (153) 135,767 Memberships 7,000 7,000 6,665 335 8,125 Collateral 40,000 40,000 40,972 (972) 504 Telemarketing 10,000 - 10,000 ' Database/postcard program = ~ 30,015 Familiarization trips 50,000 45,000 50,750 (5,750) 37,460 Public relations 5,000 1.0,000 10,028 (28) - Total -Groups and Meetings 328,000 328,000 340,218 (12,218) 345,470 ' .. (continued) ' The accompanying notes are an integral part of these financial statements. E1 Vail Local Marketing District (A Component Unit of the Town of Vail, Colorado) Statement of Revenues, Expenditures, and Changes in Fund Balance -Budget and Actual General Fund For the Year Ended December 31, 2004 (With Comparative Actual Amounts for 2003) (Continued) . Expenditures {continued}: Purchased Services: Public relations Call center fulfillment Photography Research Miscellaneous Database management/direct mail Insurance Advertising production Collateral Web and a-mail marketing Event Cross-sell Media agent fees Legal and accounting Advertising agent fees Marketing coordination - WCTB Public/media relations Web site Strategic advisory fees Professional fees - Othec Partnership Air service Total -Purchased Services Total Expenditures (Deficiency) of Revenues Over Expenditures Other Financing Sources: Transfer from Town of Vail Total Other Financing Sources (Deficiency) of Revenues and Other Financing Sources Over Expenditures Fund Balance -January 1 Fund Balance =December 31 2004 2003 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual 164,000 64,000 53,793 10,207 75,003 15,000 15,000 9,173 5,827 18,025 40,000 33,500 26,200 7,300 44,568 73,000 76,000 81,075 (5,075) 66,547 3,000 5,345 (2,345) 3,593 - 70,000 80,332 (10,332) - - - - - 2,134 - 45,000 53,922 (8,922) - - 35,000 31,000 4,000 - - 57,000 54,950 2,050 - - 80,000 30,000 50,000 - - 43,000 37,960 5,040 - - 20,000 20,000 - - 18,000 18,000. 18,498 (498) 17,189 104,000 84,000 86,500 (2,500) 136,595 104,000 104,000 108,871 (4,871) 105,098 - - - - 100,000 43,000 43,000 46,990 (3,990) 43,088 50,000 20,000 20,000 - 70,814 - 100,000 100,002 (2) - 12,000 25,500 117,476 (91,976) - - - 5,000 (5,000) - 623,000 936,000 987,087 (51,087) 682,654 1,541,000 1,571,000 1,603,110 (32,110) 1,841,609 (53,000) (63,000) (36,887) 46,113 (335,084) - - - - 150,000 - - - - 150,000 (53,000) (83,000) (36,887) 46,113 (185,084) 483,823 483,823 525,786 41,963 710,870 430,823 400,823 488,899 88,076 525,786 The accompanying notes are an integral part of these financial statements. E2 MCMAHAN AND ASSOCIATES, L.L.C. Certified Public Accountants Town of Vail, Colorado ' Financial Statements ' December 31, 2004 ' Town of Vail, Colorado Financial Statements December 31, 2004 Table of Contents Page INDEPENDENT AUDITOR'S REPORT Al - A2 Management's Discussion and Analysis 61 - B7 Government-wide Financial Statements: Statement of Net Assets _ C1 ' Statement of Activities C2 Fund Financial Statements: Governmental Funds: Balance Sheet C3 Statement of Revenues, Expenditures and Changes in Fund Balances C4 ' Proprietary Funds: Statement of Net Assets C5 Statement of Revenues, Expenses and Changes in Fund Net Assets C6 Statement of Cash Flows C7 Fiduciary Funds: Statement of Fiduciary Net Assets Cg Statement of Changes in Fiduciary Net Assets C9 Notes to the Financial Statements D1 - D31 Required Supplementary Information: General Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual E1 - E2 Major Special Revenue Funds: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual: Capital Projects Fund E3 Real Estate Transfer Tax Fund E4 ' Conference Center Fund E5 Vail Marketing Fund E6 Vail Local Marketing District E7 1 Vail Reinvestment Authority Eg Supplementary Information: Debt Service Fund: ' Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual F1 Enterprise Funds: ' Schedule of Revenues, Expenses and Change in Fund Net Assets - Budget (GAAP Basis) and Actual - Timber Ridge Affordable Housing Corporation F2 Schedule of Revenues, Expenses, Transfers and Change in Fund Net Assets - ' Budget (Non-GAAP Basis) and Actual -With Reconciliation to GAAP Basis - Dispatch Services Fund F3 Internal Service Funds: Schedule of Revenues, Expenses and Change in Fund Net Assets - Budget (Non-GAAP Basis) and Actual -With Reconciliation to GAAP Basis - Heavy Equipment Fund ~ F4 Schedule of Revenues, Expenses and Change in Fund Net Assets - ' Budget (GAAP Basis) and Actual -Health Insurance Fund F5 Town of Vail, Colorado Financial Statements December 31, 2004 Table of Contents (Continued) Page Supplementary Information (continued): Internal Service Funds (continued): Combining Statement of Net Assets F6 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets F7 Combining Statement of Cash Flows F8 Major Special Revenue Funds: Schedule of Project Expenditures -Budget (GAAP Basis) and Actual: Capital Projects Fund F9 Real Estate Transfer Tax Fund F10 Local Highway Finance Report F11 - F12 Single Audit Reports and Schedules: Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards G 1 Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 G2 - G3 Schedule of Findings and Questioned Costs G4 Schedule of Prior Audit Findings and Questioned Costs G5 Schedule of Expenditures of Federal Awards G6 Undertaking to Provide Continuing Disclosure: Table I -Debt Service Coverage H1 Table III -History of Town 4% Sales Tax Receipts H1 Table IV -Monthly Comparison of Collections of Sales Tax H1 Table V -Sales Tax Collections by Principal Sales Tax Generators H2 Table VI -Capital Projects Fund - 2004 Actual /Projected 2005 -2008 H2 Table XIX -History of General Fund Revenues, Expenditures and Changes in Fund Balance H3 Table XX -General Fund - 2004 Budget Summary and Actual Comparison / 2005 Budget H4 Table XXI -Outstanding Revenue Obligations H4 MCMAHAN AND ASSOCIATES, L.L.C. Certified Public Accountants and Consultants ' WEB SITE: WWW.MCMAHANCPA.COM SUITE 222~AVON CENTER TELEPHONE: (970) 845-8800 I OO WEST BEAVER CREEK BLVD. FACSIMILE: (970) 84S'O8S I P.O. Box 5850 AvoN, CO 8 1620 E-MAIL: MCMAHAN ~U MCMAHANCPA.COM ' INDEPENDENT AUDITOR'S REPORT ' To the Mayor and Members of Town Council Town of Vail ' Vail, Colorado We have audited the accompanying financial statements of the governmental activities, business-type ' activities, each major fund, and the aggregate remaining fund information of the Town of Vail (the "Town"), as of and for the year ended December 31, 2004, which collectively comprise the Town's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the management of the Town. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards and Government ' Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the ' amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. ' In our opinion, the financial statements referred to above presently fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Vail, as of December 31, 2004, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended ' in conformity with U.S. generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated March 25, 2005 on our consideration of the Town of Vail's internal control over financial reporting and on our tests of its compliance with provisions of laws, regulations, contracts, and grants. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of the testing, and not to provide an opinion on the internal control of financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. ' The accompanying financial statements have been prepared assuming that Timber Ridge Affordable Housing Corporation (the "Corporation"), a blended component unit of the Town, will continue as a going concern. Because operations of the Corporation could be substantially impeded as a result of limitations of revenues and ongoing, substantial debt service requirements, these factors raise substantial doubt ' about the Corporation's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. t Performing services for local governments throughout Colorado ' D. Jerry McMahan, C.P.A. Daniel R. Cudahy, C.P.A. Paul J. Backes, C.P.A. Michael N. Jenkins, C.A., C.P.A. Members: American Institute of Certi~ied Public Accountants/Cojorado Society o{ Certified Public Accountants ' National and Colorado Government Finance O{{icers Association/Cojorado Municipal League Al To the Mayor and Members of Town Council Town of Vail The Management's Discussion and Analysis in Section B is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board ("GASB"). We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. The budgetary fund information for the General Fund and major special revenue funds in Section E is not a required part of the basic financial statements but is supplementary information required by the GASB. This budgetary fund information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The accompanying financial information presented as supporting schedules and the Schedule of Expenditures of Federal Awards in Section G are presented for purposes of additional analysis and as required by the U.S. Office of Management Budget Circular A-133, Audits of Sfates and Local Governments, and Non-Profit Organizations, and are not a required part of the basic financial statements of the Town of Vail, Colorado. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town's basic financial statements. The accompanying supplementary information in Section F, including individual fund budgetary statements, combining internal service fund financial statements, budgetary statements for project expenditures, and the Local Highway Finance Report, and tables included for the undertaking to provide continuing disclosure in Section H are presented for purposes of additional analysis and are not a required part of the basic financial statements. The individual fund budgetary statements, combining internal service fund financial statements, budgetary statements for project expenditures, and the Local Highway Finance Report have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The tables included for the undertaking to provide continuing disclosure have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. ~1~~ ~ ~~ ~ ~~~ McMahan and Associates, L.L.C. March 25, 2005 A2 MANAGEMENT'S DISCUSSION AND ANALYSIS Town of Vail, Colorado Management's Discussion and Analysis December 31, 2004 ' As management of the Town of Vail, Colorado (the "Town"), we offer readers of the Town's financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended December 31, 2004. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Town's basic financial statements. The Town's basic financial statements include three components: 1) government-wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report 1 also contains other supplementary information in addition to the basic financial statements. Financial Highlights: • The assets of the Town exceeded its liabilities at the close of the 2004 fiscal year by $89,309,943 (net assets). Of this amount, the unrestricted net assets of $31,934,167 may be used to meet the Town's ongoing obligations to citizens and creditors. • The Town's total net assets increased in the 2004 fiscal year by $13,590,443 which was attributable to an increase from governmental activities of $12,746,820 and an increase of $843,623 from business-type activities. • At December 31, 2004, the unrestricted and undesignated fund balance of the General Fund was ' $9,214,346, or approximately 44% of total fiscal year 2004 General Fund expenditures. Government-wide financial statements: The government-wide financial statements are designed to ' provide readers with a broad overview of the Town's finances in a manner similar to aprivate-sector business. The Statement of Net Assets presents information on the Town's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating. ' The Statement of Activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected grant revenues or earned but unused vacation leave.) Both of the government-wide financial statements distinguish functions of the Town that are principally ' supported by taxes and intergovernmental revenues (governmental activities) and those that are supported by external revenues (business-type activities). The governmental activities of the Town include general government, public safety, public works, transportation, and economic development. The business-type activities of the Town consist of housing conducted through Timber Ridge Affordable ' Housing Corporation (a component unit of the Town}, and dispatch services, conducted through Vail Public Safety Communications Center (an enterprise fund of the Town). ' The government-wide financial statements include not only the Town itself (known as the primary government), but also a legally separate marketing district (Vail Local Marketing District), a legally separate urban renewal authority (Vail Reinvestment Authority), and anon-profit housing corporation (Timber Ridge Affordable Housing Corporation) for which the Town is financially accountable. Because ' these component units function for all practical purposes as departments of the Town, their financial position and activities have been included as an integral part of the primary government. ' The government-wide financial statements can be found on pages C1 and C2 of this report. B1 Overview of the Financial Statements (continued) Fund Financial Statements: A fund is an accounting entity that has a set of self-balancing accounts that records all financial transactions for specific activities or governmental functions. The Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. The Town's funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the governments' near-term financing decisions. Both the governmental fund Balance Sheet and the governmental Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town's governmental funds include the General Fund, Debt Service Fund, and four special revenue funds -Capital Projects Fund, Real Estate Transfer Tax Fund, Vail Marketing Fund and Conference Center Fund - as well as the Vail Local Marketing District and the Vail Reinvestment Authority, which are component units of the Town. The Town adopts an annual appropriated budget for all governmental funds. A budgetary comparison statement has been provided for all funds to demonstrate compliance with the state budget statute. The basic governmental fund financial statements can be found on pages C3 and C4 of this report. Proprietary Funds: The Town reports two categories of proprietary funds -Internal Service and Enterprise. The Heavy Equipment Fund and Health Insurance Fund are internal service funds, while Timber Ridge Affordable Housing Corporation (a component unit of the Town) and the Dispatch Services Fund are reported as enterprise funds. As their name implies, the internal service funds provide services to the Town's governmental activities. Timber Ridge Affordable Housing Corporation provides affordable rental housing to people who work in Vail and the Dispatch Services Fund provides dispatch services to emergency service agencies throughout Eagle County. Enterprise fund functions are presented as business-type activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The basic proprietary fund financial statements can be found on pages C5 through C7 of this report. The Town also presents separate budgetary comparisons for its proprietary funds. Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Town's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements, for the Town's pension and deferred compensation plans, can be found on pages C8 and C9 of this report. Notes to the Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the government-vvide and fund financial statements. The Notes to the Financial Statements can be found on pages D1 through D31 of this report. B2 Overview of the Financial Statements (continued) Government-wide Financial Analysis: As previously mentioned, the government-wide financial statements are designed to provide readers with a broad overview and long-term analysis of the Town's finances, in a manner similar to aprivate-sector business. Net assets may serve over time as a useful indicator of a government's financial position. In the case of the Town, assets exceeded liabilities by $88,876,001 at the close of the most recent fiscal year. Approximately 64% of the Town's net assets are invested in capital assets (land, buildings, equipment), less related outstanding debt. Since the Town uses these capital assets to provide services to citizens, these assets are not available for future spending, including provision of resources to repay the debt. The table below shows the Town's net assets for 2004 and 2003. Town of Vail's Net Assets Governmental Activities Assets: Current and other assets Capital assets Total Assets 2004 2003 $ 39,205,200 35,739,058 72,023,141 63,525,886 111,228,341 99,264,944 Liabilities: Long-term liabilities outstanding Other liabilities Total Liabilities Net Assets: Invested in capital assets, net of related debt Restricted Unrestricted Total Net Assets 14,337,218 15,860,968 8,015,122 7,274,795 22,352,340 23,135,763 56,498,141 46,395,886 1,508,505 1,241,202 30,869,355 28,492,093 $ 88,876,001 76,129,181 Business-type Activities Totals 2004 2003 2004 2003 1,393,992 1,676,576 20,849,130 19,767,568 22,243,122 21,444,144 40,599,192 37,415,634 92,872,271 83,293,454 133,471,463 120,709,088 21,389,669 21,490,000 419,511 363,825 21,809,180 21,853,825 35,726,887 37,350,968 8,434,633 7,638,620 44;161,520 44,989,588 (630,870) (1,837,432) 55,867,271 44,558,454 - - 1,508,505 1,241,202 1,064,812 1,427,751 31,934,167 29,919,844 433,942 (409,681) 89,309,943 75,719,500 The Town's long-term liabilities from governmental and business-type activities decreased due to principal payments on outstanding debt. The Town's 2002A General Obligation debt will be retired in 2005; the 19988 Sales Tax Revenue Bonds in 2007; and the 1998A and 20028 Sales Tax Revenue Bonds in 2012. Bonds issued by Timber Ridge Affordable Housing Corporation mature in 2032. Additional information regarding the town's long-term debt is disclosed in the Notes to the Financial Statements, which are available on pages D21 - D31 of this report. B3 Overview of the Financial Statements (continued) The chart below provides financial information from the Town's Statement of Activities for the years 2004 and 2003. Town of Vail's Changes in Net Assets Governmental Activities Revenue: Program revenue: Charges for services Operating grants Capital grants General revenue: Property and ownership tax Sales and lodging tax Other taxes Interest and other revenue Transfers Total Revenue Expenses; General government Public safety Public works and transportation Culture and recreation Economic development Housing Interest Total Expenses Business-type Activities Totals 2004 2003 2004 2003 2004 $ 7,427,665 6,023,028 2,332,890 802,726 1,191,357 1,163,302 369,000 - 1,452,420 689,806 662,804 - 2,651,245 2,857,814 - - 21,238,411 20,019,704 - - 8,1.12,297 6,221,813 - - 2,470,232 2,082,890 473 4,447 (1,222,280) - 1,222,280 - 43,321,347 39,058,357 4,587,447 807,173 9,760,555 1,560,357 2,115,224 2,651,245 21,238,411 8,112,297 2,470,705 2003 6,825,754 1,163,302 689,806 2,857,814 20,019,704 6,221,813 2,087,332 47,908,794 39,865,530 4,688,296 5,173,930 - - 4,688,296 5,173,930 6,279,865 6,250,156 1,664,027 - 7,943,892 6,250,156 12,512,204 10,836,819 - - 12,512,204 10,836,819 4,171,745 3,659,250 - - 4,171,745 3,659,250 2,239,643 2,004,352 - - 2,239,643 2,004,352 - - 2,079,797 1,216,854 2,079,797 1,216,854 682,774 725,778 - - 682,774 725,778 30,574,527 28,650,285 3,743,824 1,216,854 34,318,351 29,867,139 Change in Net Assets 12,746,820 10,408,072 843,623 (409,681) 13,590,443 9,998,391 , Net Assets -January 1 76,129,181 65,721,109. (409,681) - 75;719,500 65,721,109 Net Assets -December 31 $ 88,876,001 76,129,181 433,942 (409,681) 89,309,943 75,719,500 ' Governmental Activities: Governmental activities increased the Town's net assets by $12,746,820 in ' 2004. Key elements of this increase are as follows: • The Town implemented sales and lodging taxes in 2003 for the purpose of building and operating a ' conference center. Sirice the conference center is still in the planning and design stage, taxes collected exceeded related expense by $2.7 million, increasing net assets by that amount. • Revenue exceeded expenditures in the General Fund and the Real Estate Transfer Tax Fund by $2.4 million and $0.6 million, respectively. , • Capital outlays exceeded depreciation during the year by $9.8 million. Business-type Activities: Business-type activities are comprised of: Timber Ridge Affordable Housing ' Corporation, a component unit of the Town established to provide affordable housing to people working in Vail, and Vaif Pubiic Safety Communications Center, an enterprise fund providing dispatch services to emergency service agencies throughout Eagle County. B4 Financial Analysis of the Town's Funds As previously mentioned, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds: The focus of the Town's governmental funds is to provide information on near- term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town's financing requirements. In particular, fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town's governmental funds reported combined ending fund balances of $31,316,381; an increase of $2,879,525 from the prior year's ending fund balances. The following details ending fund balances for the past five years: Fund General Fund Capital Projects Fund Real Estate Transfer Tax Fund Conference Center Fund Vail Marketing Fund Vail Local Marketing District Debt Service Fund Vail Reinvestment Authority Totals 2000 2001 2002 2003 2004 $ 4,724,309 6,289,386 8,784,044 10,376,744 11,053,614 8,624,485 10,020,101 8,942,580 8,054,258 8,190,903 7,762,562 6,522,669 5,084,315 6,280,458 5,682,551 - - - 3,026,538 5,691,334 28,292 34,451 38,326 42,862 25,590 355,394 417,214 710,870 525,786 488,899 170,352 131,948 58,940 130,210 182,238 - - - - 1,252 $ 21,665,394 23,415,769 23,619,075 28,436,856 31,316,381 The General Fund balance has grown steadily over the past five years, while the Capital Projects Fund and the Real Estate Transfer Tax Fund have fluctuated as funds have been spent on major projects. The Conference Center Fund was created in 2003 to administer the sales and public accommodations taxes that went into effect on January 1 for the purpose of building and operating a conference center in the Town. The Vail Reinvestment Authority was added in 2004 to administer an urban renewal authority established in the Lionshead area of the Town. 65 Financial Analysis of the Town's Funds (continued) MAJOR FUND BALANCES $12,000 $10,000 $8,000 N 9 C ~ $8,000 7 O L H $4,000 $2,000 $- ^General Fund ^Capital Projects Fund O Real Estate Transfer Tax Fund OConference Center Fund ^AIl Other Funds Proprietary Funds: The Town's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets for the Town's two internal service funds -the Heavy Equipment Fund and the Health Insurance Fund -were $775,784 and $907,318 at the end of 2004, respectively. The Dispatch Services Fund, which is an enterprise fund, had unrestricted net assets of $162,487 at the end of the year. Budget Variances in the General Fund: General Fund revenue was higher than the amended budget by $1,126,178 or 5%, including: Construction Fees up $454,755; Parking up $332,265; and Rents up $96,797. Expenditures were below budget by $571,753 or 3%, primarily due to conservative budgeting. Capital Assets: The Town's government-wide capital assets, net of accumulated depreciation, increased $9,578,817. Capital additions included eight buses, streetscape improvements, the Vail Gymnastics Center, computer-aided dispatch and records management system and various other projects. Additional information and a detailed classification of the Town's net capital assets can be found in the Notes to the Financial Statements on pages D19 through D20 of this report. Long-term Debt: As of the end of the current fiscal year, the Town had $15,525,000 in general obligation and sales tax revenue bonds outstanding, of which $1,695,000 in bond principal is due within one year. Debt related to Timber Ridge Affordable Housing Corporation totaled $21,480,000 of which $130,000 is due within one year. Additional information regarding the Town's debt can be found on pages D21 through D28 in the Notes to the Financial Statements. B6 2000 2001 2002 2003 2004 Financial Analysis of the Town's Funds (continued) Sales Tax and Public Accommodations Tax: The Town has a 4% general sales tax that supports governmental operations, including capital expenditures, and a .5% sales tax dedicated to the conference center. There is also a 1.5% public accommodations tax that is dedicated entirely to the conference center. The following chart shows changes in the general sales tax for the past five years. TOWN OF VAIL GENERAL SALES TAX $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4, 000, 000 $2, 000, 000 $- Next Year's Budget and Rates: The Town's General Fund balance at the end of the current fiscal year was $11,053,614; which represents 47% of annual revenue for the General Fund. The Town anticipates using none of this fund balance in 2005. Request for information This financial report is designed to provide a general overview of the Town's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report should be addressed to the Town of Vail, Finance Director, 75 S. Frontage Road, Vail, CO 80435. 67 2000 2001 2002 2003 2004 GOVERNMENT-WIDE FINANCIAL STATEMENTS Town of Vail, Colorado Statement of Net Assets December 31, 2004 Governmental Business-type Activities Activities Total Assets: Equity in pooled cash and investments 29,021,230 257,023 29,278,253 Cash and cash equivalents -Unrestricted 173,213 14,802 188,015 Receivables, net of allowance for uncollectible accounts: Property taxes assessed 2,473,458 - 2,473,458 Other taxes 4,305,745 - 4,305,745 Other governments 5,000 - 5,000 Employees 116,730 - 116,730 Other 1,243,831 3,345 1,247,176 Inventory .224,245 - 224,245 Prepaid expenses 321,896 5,380 327,276 Cash and cash equivalents -Restricted - 349,612 349,612 Interest receivable 21,875 - 21,875 Loans receivable: Collectible within one year 5,000 - 5,000 Collectible in more than one year 1,040,000 - 1,040,000 Bond issue costs, net of accumulated amortization 252,977 763,830 1,016,807 Property, plant and equipment, net of accumulated depreciation 72,023,141 20,849,130 92,872,271 Total Assets 111,228,341 22,243,122 133,471,463 Liabilities: Accounts payable 1,595,354 125,266 1,720,620 Due to other governments 100 - 100 Retainage payable 219,021 - 219,021 Accrued salaries and wages 296,330 17,895 314,225 Interest payable 51,112 69,442 120,554 Deferred property taxes 2,473,458 - 2,473,458 Other deferred revenue 697,629 32,159 729,788 Deposits payable 648,973 18,303 667,276 Compensated absences: Due within one year 338,145 26,446 364,591 Due in more than one year 507,218 39,669 546,887 Bonds payable: Due within one year 1,695,000 130,000 1,825,000 Due in more than one year 13,830,000 20,350,000 34,180,000 Notes payable - 1,000,000 1,000,000 Total Liabilities 22,352,340 21,809,180 44,161,520 Net Assets: Invested in capital assets, net of related debt 56,498,141 (630,870) 55,867,271 Restricted for. Retirement of bonded debt 178,513 - 178,513 Symposium 10,992 - 10,992 Emergencies 1,319,000 - 1,319,000 Unrestricted 30,869,355 1,064,812 31,934,167 Total Net Assets 88,876,001 433,942 89,309,943 The accompanying notes are an integral part of these financial statements. C1 Town of Vail, Colorado Statement of Activities For the Year Ended December 31, 2004 Functions/Programs: Governmental activities: General government Public safety Public works and transportation Culture and recreation Economic development Interest on long-term debt Total Governmental Activities Business-type activity: Dispatch services Housing Total Business-type Activities Total Program Revenues Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Net (Expense) Revenue and Change in Net Assets Governmental Business-type Activities Activities Total 4,688,296 3,306,503 52,423 - (1,329,370) (1,329,370) 6,279,865 298,602 - - (5,981,263) (5,981,263) 12,512,204 3,487,874 1,105,248 1,452,420 (6,466,662) (6,466,662) 4,171,745 334,686 33,686 - (3,803,373) (3,803,373) 2,239,643 - - - (2,239,643) (2,239,643) 682,774 - - - (682,774) (682,774 30,574,527 7,427,665 1,191,357 1,452,420 (20,503,085) _ (20,503,085) 1,664,027 1,182,881 369,000 662,804 550,658 550,658 2,079,797 1,150,009 - - (929,788) (929,788) 3,743,824 2,332,890 369,000 662,804 (379,130) _ (379,130) 34,318,351 9,760,555 1,560,357 2,115,224 (20,503,085) (379,130) (20,882,215) General Revenues: Taxes: Sales taxes 17,952,728 - 17,952,728 Real estate transfer taxes 4,850,152 - 4,850,152 Lodging taxes 3,285,683 - 3,285,683 Property and specific ownership taxes 2,651,245 - 2,651,245 Ski area lift ticket admissions tax _ 2,496,162 - 2,496,162 Franchise taxes 676,538 - 676,538 Cigarette taxes 89,445 - 89,445 Investment earnings 462,769 10,233 473,002 (Loss) on sale of fixed assets (37,474) (9,760) (47,234) Miscellaneous 2,044,937 - 2,044,937 Transfers 110,000 (110,000) - Special item - Transfer of assets (1,332,280) 1,332,280 - Total General Revenues and Special Items 33,249,905 1,222,753 34,472,658 Change in Net Assets 12,746,820 843,623 13,590,443 Net Assets -January 1 76,129,181 (409,681) 75,719,500 Net Assets -December 31 88,876,001 433,942 89,309,943 The accompanying notes are an integral part of these financial statements. C2 i. it l~ i~ ~ r ^~ ~ ~ ~ i ~ ~ i^ . ~ i^^~ ~ ~ Town of Vail, Colorado Balance Sheet Governmental Funds December 31, 2004 1 Capital Real Estate Conference Vall Vail Local Vafl Debt Total ' General Projects Transfer Tax Center Marketing Marketing Reinvestment Service Governmental Fund Fund Fund Fund Fund District Authority Fund Funds Assets: Equity in pooled cash and investments 11,277,885 4,767,939 5,609,346 5,473,883 25,590 - - 182,238 27,336,881 Cash and cash equivalents -Unrestricted 15,346 - - - - 153,946 3,921 - 173,213 ' Receivables, net of allowance for uncollectible accounts: Property taxes assessed 2,473,458 - - - - - - - 2,473,458 Other taxes 808,405 2,411,026 166,639 575,353 - 344,322 - - 4,305,745 Other governments 5,000 - - - - - - - 5,000 Employees 116,730 116,730 ' Other 623,031 511,516 6,600 1,141,147 Loans receivable 1,045,000 1,045,000 Prepaid expenses 253,147 50 749 45,982 299,928 Total Assets 15,573,002 8,735,481 5,782,635 6,049,985 25,590 544,250 3,921 182,238 36,897,102 Liabilities and Fund Equity: LIabIllties: Accounts payable 467,095 324,480 97,174 358,651 - 55,351 2,669 - 1,305,420 Due to other governments 100 - - - - - - - 100 Retainage payable - 219,021 - - - - - 219,021 ' Accrued payroll and related liabilities 232,133 1,077 2,910 = 236,120 Deferred revenue 697,629 697,629 Deferred property taxes not collectible until subsequent year 2,473,458 - - - - - - - 2,473,458 Deposits payable 648,973 - - - - - 648,973 Total Liabilities 4,519,388 544,578 100,084 358,651 55,351 2,669 5,580,721 Fund Balances: Reserved for: Prepaid expenses 253,147 - 50 749 - 45,982 - - 299,928 ' Retirement of bonded debt 162,238 182,238 Symposium 10,992 10,992 Emergencies 1,272,000 - - - - 47,000 - - 1,319,000 Unreserved: Designated for housing loan program Designated for police seizures 200,000 103,129 - - - - - - - 200,000 103,129 Designated for repayment of working capital 237,000 237,000 Designated for subsequent years' expenditures - 2,259,947 217,887 - - - - 2,477,834 Undesignated 9,214,346 5,930,956 5,464,614 5,690,565 25,590 158,917 1.252 26,486,260 Total Fund Balances 11,053,614 8,190,903 5,682,551 5,691,334 25,590 488,699 1,252 182,238 31,316,381 ' Total Liabilities and Fund Balances 15,573,002 8,735,481 .5,782,635 6,049,985 25,590 544,250 3,921 182,236 Amounts reported for governmental activkies In the Statement ' of Net Assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 68,803,017 Other long-term assets are not available for cuttent period expenditures and, therefore, are not reported in the funds. 274,652 ' Internal service funds are used by management to charge the costs of heavy equipment and health insurance to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Assets. 4,903,226 Long-term liabilities, including bonds payable, interest payable, and compensated absences, are not due and payable ' in the current period and, therefore, are not reported in the funds. (16,421,475) Net Assets of Governmental Activities 88,876,001 The accompanying notes are an integral part of these financial statements. C3 Town of Vail, Colorado 1 Statement of Revenues, Expenditures and Changes in Fund B alances Governmental Funds For the Year Ended December 31, 2004 ' Capital Real Estate Conference Vail Vail Local Vail Debt Total General Projects Transfer Tax Center Marketing Marketing Reinvestment Service Governmental Fund Fund Fund Fund Fund District Authority Fund , Funds Revenues: Taxes 14,698,784 6,700,095 4,850,152 3,567,070 - 1,555,305 - - 31,371,406 Permits and licenses 1,685,277 - - - 308,198 - - - 1,993,475 Intergovemmerrtal revenue 1,435,982 1,818,930 33,686 - - - - - 3,288,598 Charges for services 5,107,409 201,942 334,686 - - - - 5,644,037 Investment income 172,806 64,475 104,372 67,603 940 7,628 28 9,621 427,473 Miscellaneous 359,829 1,309,215 91,600 3,290 93,288 1,857,222 Total Revenues 23,460,087 10,094,657 5,414,496 3,634,673 309,138 1,566,223 93,316 9,621 44,582,211 Expenditures: ' General government 5,065,363 - - - - - - 1,400 5,066,763 Public safety 5,885,632 - - - - - - - 5,885,632 Public works and transportation 8,252,331 10,634,112 - - - - - - 18,886,443 Culture and recreation 1,833,526 - 4,854,763 - - - - - 6,688,289 Economic development - - - 969,877 326,410 1,603,110 92,064 - ' 2,991,461 Debt service: Principal - - - - - - - 1,605,000 1,605,000 Interest 689,098 689,098 Total Expenditures 21,036,852 10,634,112 4,854,763 969,877 326,410 1,603,110 92,064 2,295,498 41,812,686 Excess (Deficiency) of Revenues ' Over Expenditures 2,423,235 (539,455 559,733 2,664,796 (17,272) (36,887) 1,252 (2,285,877) 2,769,525 Other Financing Sources (Uses): Transfers in 27,435 3,014,005 - - - - - 2,337,9D5 5,379,345 Transfers (out) (1,773,800) (2,337,905) (1,157,640) - - (5,269,345) Total Other Financing Sources (Uses) (1,746,365L 676,100 (1,157,640) - - - 2,337,905 110,000 Net Change in Fund Balances 676,870 136,645 (597,907) 2,664,796 (17,272) (36,887) 1,252 52,028 2,879,625 Fund Balances -January 1 10,376,744 8,054,258 6,280,458 3,026,538 42,862 525,786 130,210 ' 28,436,856 Fund Balances-December 3l 11,053,614 8,190,903 5,682,551 5,691,334 25,590 488,899 1,252 182,238 31,316,381 Net Change in Fund Balances of Governmental Funds 2,879,525 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expenses. This is the amount by which capital outlay exceeded depreciation during the year. Repayment of bond and lease principal are expenditures in the governmental funds, but the repayment retluces long-term liabilities in the Statement of Net Assets. This is the amount of principal repaymerrts. Internal service funds are used by management to charge the cost of heavy equipment and health insurance to individual funds. This is the amount of internal service fund change in net assets for the year. Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. in the Statement of Activities, only the gain or loss on the sale and disposal of assets is reported, whereas, in governmental funds, only the proceeds which increase curcent available resources is reported. This amount represents the amount by which the book value of the disposed assets exceeded proceeds received. Due to changes in its operations, the Dispatch Services Fund changed from an internal service fund to an enterprise fund in 2004. As a result, the net assets of this fund were transferred from governmental activities to business-type activities on the Statement of Activities. Change in Net Assets of Governmental Activities 9,803,122 1,605,000' (3,675) 15,000 , (140,472) (79,400) (1,332,280)' 12,746,82D The accompanying notes are an integral part of these financial statements. C4 Town of Vail, Colorado Proprietary Funds Statement of Net Assets December 31, 2004 Business-ty pe Activities Enterprise Fund - Enterprise Fund - Timber Ridge Dispatch Affordable Housing Services Corporation Fund Assets: Current Assets: Equity in pooled cash and investments Cash and cash equivalents -Unrestricted Accounts receivable ,net of allowance for uncollectibles Inventory Prepaid expenses Total Current Assets ' Non-current Assets: Cash and cash equivalents -Restricted Bond issue costs, net of accumulated amortization Property, plant, and equipment, net of accumulated ' depreciation Total Non-current Assets ' ~ Total Assets Liabilities: ' Current Liabilities: Accounts payable Tenant security deposits Deferred lease revenue ' Accrued interest payable Accrued salaries and wages Current portion of bonds payable ' Current portion of compensated absences Total Current Liabilities Non-current Liabilities: Bonds payable, net of current portion Notes payable Compensated absences, net of current portion ' Total Non-current Liabilities Total Liabilities ' Net Assets (Deficit): Invested in capital assets, net of related debt Unrestricted ' Total Net Assets (Deficit) Governmental Activities - I nternal Service Funds - 257,023 1,684,349 14,802 - - 3,345 - 102,684 - - 224,245 5,380 - 21,968 23,527 257,023 2,033,246 349,612 763, 830 19,242,122 1,607,008 3,220,123 20,355, 564 1, 607, 008 .3,220,123 20,379,091 1,864,031 5,253,369 114,740 10,526 289,934 18,303 - - 32,159 - - 69,442 - - - 17,895 13,322 130,000 - - - 26,446 18,755 364,644 54,867 322,011 20,350,000 - - 1,000,000 - - - 39, 669 28,133 21,350,000 39,669 28,133 21,714,644 94,536 350,144 (2,237,878) 1,607,008 3,220,123 902,325 162,487 1,683,102 (1,335,553) 1,769,495 4,903,225 ' The accompanying notes are an integral part of these financial statements. C5 Town of Vail, Colorado Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Assets For the Year Ended December 31, 2004 Operating Revenues: Charges for services -Internal Charges for services - External Rent Laundry room lease Insurance reimbursements Other Total Operating Revenues Operating Expenses: Operations Health claims and premiums Depreciation Total Operating Expenses Operating (Loss) Non-Operating Revenues (Expenses): Intergovernmental revenues Gain (loss) on disposal of assets Investment income Interest expense Financing fees Amortization of bond issue costs Total Non-Operating Revenues (Expenses) (Loss) Before Transfers and Capital Contributions Transfers Out Capital Contributions, Net Change in Net Assets Net Assets (Deficit) -January 1 Net Assets (Deficit) -December 31 Business-ty pe Activities Enterprise Fund - Enterprise Fund - Governmental Timber Ridge Dispatch Activities - Affordable Housing Services lnternal Corporation Fund Service Funds - 463,813 3,544,954 - 719,068 256,479 1,118,405 - - 15,434 - - - - 87,240 16,170 100,475 1,150,009 1,182,881 3,989,148 821,947 1,507,477 1,536,133 - - 1,908,139 525,446 156,550 610,773 1,347,393 1,664,027 4,055,045 (197,384) (481,146) (65,897) - 369,000 - - (9,760) (26,809) 3,916 6,317 20,296 (416,918) - - (273,144) - - (42,342) - - (728,488) 365,557 (6,513) (925,872) (115,589) (72,410) - (110,000) - - 662,804 225,187 (925,872) 437,215 152,777 409,681 1,332,280 4,750,448 (1, 335, 553) 1, 769,495 4,903,225 The accompanying notes are an integral part of these financial statements. C6 Town of Vail, Colorado Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2004 Cash Flows From Operating Activities: Cash received from other funds Cash received from tenants for rent Cash received from (refunded to) tenants for security deposits, net Other cash receipts Cash paid for goods and services Cash paid to employees Net Cash Provided (Used) by Operating Activities ' Cash Flows From Non-Capital Financing Activities: Transfer (to) other funds Cash received from operating grants Net Cash Provided by Non-Capital Financing Activities ' Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets Principal repaid on bonds and notes Cash drawn on line of credit Repayments of amounts drawn on line of credit Interest paid Financing fees paid Acquisition and construction of capital assets for other funds ' Acquisition and construction of capital assets Net Cash (Used) by Capital and Related Financing Activities Cash Flows From Investing Activitie§: ' Interest on investments Net Cash Provided by Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents ' Cash and Cash Equivalents -Beginning Cash and Cash Equivalents -Ending Cash and Cash Equivalents -End of Period is Comprised of: ' Equity in pooled cash and investments Cash and cash equivalents -Unrestricted Cash and cash equivalents -Restricted Total -Cash and Cash Equivalents ' Reconciliation of Operating (Loss) to Net Cash Provided by Operating Activities: Operating (loss) Adjustments: Depreciation (Increase) decrease in accounts receivable (Increase) decrease in inventory (Increase) decrease in prepaid expenses Increase (decrease) in accounts payable Increase (decrease) in tenant security deposits Increase (decrease) in prepaid rent Increase (decrease) in deferred lease revenue ' Increase (decreases) in accrued wages and' benefits Total Adjustments Net Cash Provided (Used) by Operating Activities ' Schedule of Non-Cash Investing, Capital and Financing Activities: Assets donated by Capital Projects Fund Business-twe Activities Enterprise Fund - Enterprise Fund - Timber Ridge Dispatch Affordable Housing Services Corporation Fund 463,813 3,545,230 1,154,929 - - (6,722) - - 27,635 719,068 344,528 (877,018) (634,300) (2,593,439) (888,363) (915,150) 298,824 (339,782) 381,169 Governmental Activities - Internal Service Funds (110,000) 369,000 259,000 - - 41,925 (115,000) - - 285,893 - - (285,893) - - (384,768) - - (273,144) - - - - (33,328) (120,299) (341,192) (772,91 (120,299) (332,595) 3,916 6,317 20,296 3,916 6,317 20,296 (470,172) (194,764) 68,870 834,586 451,787 1,615,479 364,414 257,023 1,684,349 257,023 1,937,544 14,802 - - 349,612 - - 364,414 257,023 1,937,544 (197,384) (481,146) (65,897) 525,446 i 56,550 610,773 17,613 - (99,390) - - 2,366 230 - (13,835) (55,301) 5,412 (26,388) (6,722) - - 22,946 - - - (20,598) (26,460) 496,208 141,364 447,066 298,824 (339, 782) 381,169 - 662,804 258,515 The accompanying notes are an integral part of these financial statements. C7 Tawn of Vail, Colorado Fiduciary Funds Statement of Fiduciary Net Assets December 31, 2004 Assets: Cash and investments -Restricted Accounts receivable Other prepaid Loans to participants Total Assets Liabilities: Accrued liabilities Total Liabilities Net Assets: Held in trust for pension benefits and other purposes Total Net Assets Pension Trust 33,740,458 50,416 85,840 252,611 34,129, 325 189,276 - 189,276 - 33,940,049 33,940,049 3,448,625 3,448,625 Deferred Compensation Plan 3,448,625 3,448,625 The accompanying notes are an integral part of these financial statements. C8 Town of Vail, Colorado Fiduciary Funds Statement of Changes in Fiduciary Net Assets For the Year Ended December 31, 2004 Additions: Contributions Investment income Total Additions Deductions: Professional fees Benefits paid Total Deductions Change in Net Assets Net Assets -January 1 Net Assets -December 31 Pension Trust 1,980,797 3,372,968 5,353,765 43,281 1,283,576 1,326,857 4,026,908 29,913,141 33,940,049 Deferred Compensation Plan 486,770 351,775 838,545 13,644 169,369 183,013 655, 532 2,793,093 3,448,625 The accompanying notes are an integral part of these financial statements. C9 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 ' I. Summary of Significant Accounting Policies ' The Town of Vail, Colorado (the "Town") was incorporated in 1972, under the provisions of Article XX of the Colorado Constitution and Municipal Home Rule Act of 1971. The Town operates under aCouncil-Manager form of government. The Town's major operations include public safety, public works and transportation, culture and recreation, economic development, ' administration (general government), and housing. The Town's financial statements are prepared in accordance with generally accepted accounting principles ("GAAP"). The Governmental Accounting Standards Board ("GASB") is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). Governments are also required to follow the pronouncements of the Financial Accounting Standards Board ("FASB") issued through November 30, 1989, when applicable, that ' do not conflict with or contradict GASB pronouncements. The more significant accounting policies established by GAAP used by the Town are discussed below. A. Reporting Entity ~ The reporting entity consists of (a) the primary government; i.e., the Town, and (b) organizations for which the Town is financially accountable. The Town is considered financially accountable for legally separate organizations if it is able to appoint a voting majority of an organization's governing body and is either able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the Town. Consideration is also given to other organizations which are fiscally dependent; i.e., unable to adopt a budget, levy taxes, or issue debt without approval by the Town. Organizations for which the nature and significance of their relationship with the Town are such that exclusion would ' cause the reporting entity's financial statements to be misleading or incomplete are also included in the reporting entity. The accompanying financial statements present the primary government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the Town's operations. There are three blended component units ' reported in the Town's financial statements: Vail Local Marketing District (the "District"), Timber Ridge Affordable Housing Corporation (the "Corporation") and Vail Reinvestment Authority (the "Authority"). The financial statements of theses entities can be obtained ~, from the Town's administrative offices. 1. Vail Local Marketing District ' The District was authorized on November 2, 1999 by a general election that established a 1.4% tax on lodging within the Town's boundaries, beginning January 1, 2000. Proceeds from the tax are to be used for organization, management, promotion; and marketing of public events, for business ' recruitment, and for tourism promotion. Town Council members also act as the District's Board of Directors. The District is reported. as a special revenue fund. D1 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) Summary of Significant Accounting Policies (continued) A. Reporting Entity (continued) 2. Timber Ridge Affordable Housing Corporation The Corporation was incorporated on July 9, 2003 as a Colorado non-profit corporation to provide affordable housing for persons employed in the Town or Eagle County, Colorado. The Corporation owns and operates, exclusively on behalf of and for the benefit of the Town, a 198-unit rental housing project (the "Project") located in the Town. The formation of the Corporation was approved by the Town, and its operations are governed by a Board of Directors comprised solely of members of the Town Council. Upon dissolution of the Corporation and retirement of all liabilities, all property of the Corporation is to be transferred to the Town. The acquisition of the Project was financed through the issuance of revenue bonds and a note payable to the Town. While the Town is not legally obligated to pay the indebtedness of the Corporation, the Town has agreed to consider providing funds, if needed, to the Corporation to make the scheduled debt service payments of the Corporation. The Town has a right to obtain title to the Project at any time by defeasing all outstanding bonds of the Corporation. The Corporation is reported as an enterprise fund. The Corporation's total expenses exceeded aggregate revenues by $925,872 for 2004. This follows the Corporation's $409,681 reduction of net assets in the period from inception of operations, July 17, 2003, to December 31, 2003. While the Corporation's revenues did increase in 2004 from the preceding period, the ability of the Corporation to further increase rental revenues is limited because mold problems in the remaining rental units in the Project must first be remediated, at substantial cost to the Corporation. Since the inception of operations, the Corporation has incurred mold remediation costs totaling $625,125, which represents a considerable portion of the Corporation's expenses. As of December 31, 2004, 84 of the 198 units at the Project were unavailable for rental due to mold concerns. The Corporation's liquidity position has also declined in 2004, as cash and current receivables decreased by $299,223 from December 31, 2003 without a significant corresponding decrease in current liabilities. In addition to limitations on the Corporation's revenue base and reduced liquidity, the Corporation has substantial long-term debt obligations. As detailed in Note IV.G.1., a significant portion of the Corporation's bonds currently bear a variable weekly interest rate. Short-term interest rates have increased steadily since the issuance of these bonds in 2003, and have trended higher in 2005. Higher interest costs will have a significant adverse impact on the Corporation's cash flows. Since the Corporation's revenue base is limited without further significant expenditures on mold remediation, interest rates payable on the Corporation's debt are climbing, and since the Corporation has already taken some measures to control operating costs and may not be able to further reduce discretionary spending, the above factors may impact the Corporation's ability to meet obligations as they come due. D2 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) Summary of Significant Accounting Policies (continued) A. Reporting Entity (continued) 2. Timber Ridge Affordable Housing Corporation (continued) The Corporation's Board considers the above factors significant to its future operations and has developed the following plans to address the Corporation's cash flow issues in the short term and to pursue redevelopment of the Project in the longer term: • 44 units at the Project have been identified for remediation at an estimated cost of $8,000 to $9,000 per unit. A master lessee for these units has Been identified and the Board expects each unit to generate approximately $1,000 per month after incremental expenses, beginning as early as October 2005. • The Town executed a loan of $700,000 to the Corporation to cover remediation costs and other cash requirements through the end of 2005. This additional loan was advanced under the same terms and conditions as the existing Town Note described in Note IV.G.3, and is similarly subordinated to the 2003A Bonds and the 2003B Bonds. The Corporation's Board projects that, upon remediation and rental of the additional units, rental revenues will be sufficient to cover operating expenses and debt service for the next three to four years. 3. Vail Reinvestment Authority The Authority was created on November 4, 2003 pursuant to the Colorado Urban Renewal Law (C.R.S. 31-25-1) to oversee development and redevelopment of identified blights areas within the Town. The Town Council approved the formation of the Authority at a public hearing, and filed applicable certification of compliance with the Division of Local Government. Its operations are governed by a Board of Commissioners comprised solely of members of the Town Council. The Authority is reported as a special revenue fund. B. Government-wide and Fund Financial Statements The Town's basic financial statements include both government-wide (reporting the Town as a whole) and fund financial statements (reporting the Town's major funds). Government-wide financial statements report on information of all of the nonfiduciary activities of the Town and its component units. Both the government-wide and fund financial statements categorize primary activities as either governmental or business- type. The Town's public safety, public works and transportation, culture and recreation, economic development, and administration functions are. classified as governmental activities. The Corporation and emergency dispatch services of the Town are classified as business-type activities. D3 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) Summary of Significant Accounting Policies (continued) B. Government-wide and Fund Financial Statements (continued) The government-wide Statement of Activities reports both the gross and net cost of each of the Town's governmental functions and business-type activities. The governmental functions are also supported by general government revenues (sales taxes, property and specific ownership taxes, investment earnings, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, operating and capital grants. Program revenues must be directly associated with the governmental function or a business-type activity. Operating grants include operating-specific and discretionary (either operating or capital) grants while the capital grants column reflects capital-specific grants. The government-wide focus is on the sustainability of the Town as an entity and the change in the Town's net assets resulting from the current year's activities. C. Fund Financial Statements The financial transactions of the Town are reported in individual.funds in the fund financial statements. Each fund is accounted for by providing a separate set of self- balancing accounts that comprises its assets, liabilities, fund equity, revenues and expenditures/expenses. The fund focus is on current available resources and budget compliance. The Town reports the following major governmental funds: The General Fund is the Town's primary operating fund. It accounts for all financial resources of the Town, except those required to be accounted for another fund. The Capital Projects Fund accounts for a portion of the Town's sales tax and intergovernmental revenue which are restricted for the acquisitions of and improvements to the Town's governmental assets. The Real Estate Transfer Tax Fund is used to account for the collection of a real estate transfer tax which is specifically restricted for acquiring, maintaining, and improving real property for parks, recreation, open space and similar purposes. The Conference Center Fund is used to account for the collection of a sales tax and a public accommodations tax which are specifically restricted for the financing of the construction and operations of a conference center in the Town. The Vail Marketing Fund accounts for the collection of business license fees which are specifically restricted for expenditures related to the marketing of the Town. The Vail Local Marketing District is used to account for the activities of the District. The Vail Reinvestment Authority is used to account for the activities of the _ Authority. D4 Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2004 (Continued) ' 1. Summary of Significant Accounting Policies (cantinued) ' C. Fund Financial Statements (continued) The Town reports the following major proprietary or business-type funds: ' ~ Timber Ridge Affordable Housing Corporation accounts for the activities of the Corporation. The Dispatch Services Fund accounts for the emergency dispatch services provided by the Town within Eagle County, Colorado. Additionally, the Town reports the following fund types: Internal service funds account for the repair and maintenance costs and purchase of Town vehicles and equipment, excluding buses and fire trucks. In ' addition, internal service funds are used to account for the health insurance plan provided to Town employees. Trust funds are used to account for the accumulation of resources for pension ' benefit payments to qualified Town employees and to account for assets held for employees in accordance with the provisions of Internal Revenue Code section 457. ' D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Measurement focus refers to whether financial statements measure changes in current 1 resources only (current financial focus) or changes in both current and long-term resources (long-term economic focus). Basis of~accounting refers to the point at which revenues, expenditures, or expenses are recognized in the accounts and reported in the I financial statements. Financial statement presentation refers to classification of revenues by source and expenses by function. 1. Long-term Economic Focus and Accrual Basis Both governmental and business-type activities in the government-wide financial statements and the proprietary and fiduciary fund financial statements use the long-term economic focus and are presented on the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred, regardless of the timing of the related cash flows. 2. Current Financial Focus and Modified Accrual Basis The governmental fund financial statements use the current financial focus and are presented on the modified accrual basis of accounting. Under the modified ' accrual basis of accounting, revenues are recorded when susceptible to accrual; i.e., both measurable and available. "Available" means collectible within the current period or soon enough thereafter (60 days) to be used to pay liabilities of the current period. Expenditures are generally recognized when the related liability is incurred. The exception to this general rule is that principal and interest on general long-term debt and compensated absences are recorded only when payment is due. D5 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) Summary of Significant Accounting Policies (continued) D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued) 3. Financial Statement Presentation Amounts reported as program revenues include 1) charges to customers and applicants for goods, services or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non- operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenue of the Town's enterprise funds are rental from individuals employed in the Town and charges for services related to emergency dispatch. Operating expenses for the enterprise fund includes operating expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. E. Financial Statement Accounts Equity in Pooled Cash and Investments The Town has a policy of central cash management for all funds except the Pension Trust Fund and the Deferred Compensation Plan Fund. In addition, the component units do not participate in the Town's central cash management. Equity in pooled cash and investments include demand deposits, short-term investments with original maturities of three months or less from the date of acquisition, and long-term investments in U.S. government obligations. Investments are stated at fair market value. 2. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and investments with original maturities of three months or less from the date of acquisition. Restricted cash and cash equivalents represent amounts restricted by bond indentures and other binding commitments. 3. Receivables Receivables are reported net of an allowance for uncotlectible accounts. 4. Property Taxes Property taxes are assessed in one year as a lien on the property, but not collected by the governmental unit until the subsequent year. In accordance with GAAP, the assessed but uncollected property taxes have been recorded as a receivable and as deferred revenue. D6 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) . Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued] 5. Inventory Inventory is valued at lower of cost or market using the first-in, first-out method. Inventory in the Heavy Equipment Fund consists of expendable supplies held for consumption. 6. Prepaid Expenses Payments made to vendors for services that will benefit periods beyond December 31, 2004 are recorded as prepaid expenses. 7. Bond Issuance Costs Issuance costs for bonds payable are deferred and amortized over the term of the loan using the straight-line method for governmental activities. The Corporation uses the bonds outstanding method, which approximates the effective interest method, to amortize these costs. 8. Interfund Receivables and Payables Balances at year-end between funds are reported as "due to /from other funds" in the fund financial statements. Any residual balances not eliminated between the governmental and business-type activities are reported as "internal balahces" in the government-wide financial statements. 9. Capital Assets Capital assets, which include land, buildings, improvements, equipment, vehicles and infrastructure assets, are reported in the applicable governmental or business-type activity columns in the government-wide financial statements. Capital assets are defined by the Town as assets with an initial cost of $5,000 or more and an estimated useful life in excess of one year. Such assets are recorded at cost where historical records are available and at an estimated historical cost where no historical record exists. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Capital outlay for projects is capitalized as projects are constructed. Interest incurred during the construction phase is capitalized as part of the value of the assets. Capital assets (excluding land) are depreciated using the straight-line method. D7 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 10. Deferred Revenue For governmental funds, deferred revenues arise when potential revenue does not meet both the "measurable" and uavailable" criteria for recognition in the current period. For proprietary funds, deferred revenues arise when potential revenue is unearned. In subsequent periods, when revenue recognition criteria are met, or when the Town has legal claim to the resources, the liability for deferred revenue is removed and revenue is recognized. 11. .Compensated Absences Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as expenditure and a fund liability of the governmental fund that will pay it. Amounts of vested or accumulated vacation leave that are not expected to be liquidated with expendable available financial resources are reported in the governmental activities column in the government-wide financial statements. Vested or accumulated vacation leave of the proprietary fund type is recorded as an expense and liability of that fund as the benefits accrue to employees. In accordance with the provisions of GASB Statement No. 16, Accounting for Compensated Absences, no liability is recorded for non-vesting accumulating rights to receive sick pay benefits. 12. Fund Equity Governments report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. At December 31, 2004, the Town reported $1,508,505 of restricted net assets which was comprised of $178,513 restricted for debt service payments, $10,992 restricted for a.symposium, and $1,319,000 restricted for emergencies (as subsequently explained in Notes III.E. and F.). Designations of fund balance represent tentative management plans that are subject to change. Designations of fund balance are reported only on fund financials and not on the government-wide financial statements. 13. Interfund Transactions Quasi-external transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures or expenses initially made from it that are properly applicable to another fund, are recorded as expenditures or expenses in the reimbursing fund and as reductions of expenditures or expenses in the fund that is reimbursed. All other interfund transactions, except quasi-external transactions and reimbursements, are reported as transfers. D8 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) Summary of Significant Accounting Policies (continued) F. Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires the Town's management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and ' liabilities at the date of the financial statements, and the reported amount of revenues and expenditures or expenses during the reporting period. Actual results could differ from those estimates. 2. Proprietary Funds As required by GASB Statement No. 20, Accounting and Financial Reporting for ' Proprietary Funds and Other Governmental Entities that use Proprietary Fund Accounting, the Town has elected to follow for its proprietary funds, all (1) GASB pronouncements and (2) FASB Statements and Interpretations, APB Opinions, and Accounting Research Bulletins issued on or before November 30, 1989, ' except those that conflict with a GASB pronouncement. 3. Investment Risk The Town's investments, with the exception of investments held within the . Pension Trust Fund and the Deferred Compensation Plan Fund, are invested primarily in COLOTRUST and government obligations. In addition, the Town ' invests in some derivatives and money market mutual funds. The Pension Trust and Deferred Compensation Plan Funds investments are held in mutual funds. The value of investments fluctuates as market conditions change. ' GASB Technical Bulletin No. 94-1 defines derivatives as "contracts whose value depends on, or derives from, the value of an underlying asset, reference rate, or index." At December 31, 2004, the Town held the following investments that may be considered derivatives under this definition: of Book Market Investment Value Value Pool Adjustable rate SBA pools $ 153,222 153,222 0.52% Adjustable rate government agency mortgage pools: ' GNMA 302,478 302,478 1.03% FNMA 913,216 913,216 3.12% FHLMC 375,333 375,333 1.28% The Town recognizes that investment risks can result from credit risk, market risk, and legal risk. The Town seeks to minimize these risks by investing in seasoned SBA pools and adjustable rate mortgages that are backed by the U.S. government. The Town's intent in investing in these instruments is to achieve long-term rates ' of return with the decreased volatility of fixed rate, short-term instruments. D9 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) Summary of Significant Accounting Policies (continued) F. Significant Accounting Policies (continued) 4. Credit Risk The receivables of the various funds of the Town are primarily due from other governments. Management believes that the credit risk related to the receivables is minimal. 5. Restricted and Unrestricted Resources When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. Reconciliation of Govemment~vide and Fund Financial Statements A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Govemment~vide Statement of Net Assets The governmental fund Balance Sheet includes reconciliation between the fund balance of total governmental funds and net assets of governmental activities as reported in the government-wide Statement of Net Assets. One element of that reconciliation explains "Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds". This $68,803,017 difference is related to property, plant and equipment of $99,632,497 less accumulated depreciation of $30,829,480. Another element of that reconciliation explains "Other long-term assets are not available for current period expenditures and therefore are not reported in the funds". This $274,852 difference is bond issue costs of $433,388, less accumulated amortization of $180,411, and interest receivable of $21,875. Additionally, the reconciliation states that long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. This $16,421,475 difference is related to bonds and notes payable of $15,525,000, accrued compensated absences of $845,363, and interest payable of $51,112. B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenue, Expenditures and Changes in Fund Balances and the Govemmentanride Statement of Activities The governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances includes reconciliation between net change in fund balances of governmental funds and changes in net assets of governmental activities as reported in the government-wide Statement of Activities. One element of that reconciliation explains "Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense." The details of this $9,803,122 difference are comprised of capital outlay of $12,345,129, less depreciation expense of $2,542,007. D10 Town of Vail, Colorado Notes to the Financial Statements ' December 31, 2004 (Continued) , ' III. Stewardship, Compliance, and Accountability A. Budgetary Information An annual budget and appropriation ordinance is adopted by Town Council in accordance with the Town's Home Rule Charter. ' Budgets are prepared on the basis of GAAP for all funds except the Heavy Equipment Fund and the Dispatch Services Fund. The budgets for these funds have been adopted on a non-GAAP budget and are reconciled to GAAP below: Heavy Dispatch Equipment Services ' Fund Fund Change in Net Assets -Budget Basis $ 173,959 (179,578) add/(less): ' Contribution from other fund 258,515 662,804 Contributions to others (33,328) Capitalized assets 341,192 120,299 Depreciation (610,773) (156,550) ' Net book value of disposed assets (68,734) (9,760) ~ Change in Net Assets - GAAP Basis $ 60,831 437,215 Annual appropriations are adopted for all funds. Expenditures may not legally exceed appropriations at the fund level. All appropriations lapse at year-end. The Town followed these procedures in preparing, approving, and enacting its budget for 2004. (1) For the 2004 budget year, prior to August 25, 2003, the County Assessor sent the Town a certified assessed valuation of all taxable property within the Town's boundaries. (2) Prior to the end of the 2003 fiscal year, the Town Manager submitted to the Town Council a budget and accompanying message. (3) Prior to December 15, 2003, the Town computed and certified to the County Commissioners a levy rate that derived the necessary property taxes as computed in the proposed budget. (4) After a required publication of "Notice of Proposed Budget", the Town adopted the proposed budget and an appropriation resolution which legally appropriated expenditures for the upcoming year. (5) After adoption of the budget ordinance, the Town may make the following changes: a) transfer appropriated money between funds; b) approve supplemental appropriations to the extent of revenues in excess of those estimated in the budget; c) approve emergency appropriations; and d) reduce appropriations for which originally estimated revenues are insufficient. D11 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) Stewardship, Compliance, and Accountability (continued) A. B. C Budgetary Information (continued) Taxes levied in one year are collected in the succeeding year. Thus, taxes certified in 2003 were collected in 2004 and taxes certified in 2004 will be collected in 2005. Taxes are due on January 1st in the year of collection; however, they may be paid in either one installment (no later than April 30th) or two equal installments (not later than February 28th and June 15th) without interest or penalty. Taxes that are not paid within the prescribed time bear interest at the rate of one percent (1 %) per month until paid. Unpaid amounts and the accrued interest thereon become delinquent on June 16th. During the year, supplemental appropriations were necessary. The budgetary comparison statements reflect the original budget and the final budget after legally authorized revisions were made. Budgetary Information -Vail Local Marketing District The District's budget timetable varies from the Town's. The District followed these procedures in preparing, approving, and enacting its budget for 2004. (1) On or before September 30, 2003, the District must submit to the Board a recommended budget that details the revenues necessary to meet the District's operating requirements. This was done on September 17, 2003. (2) After appropriate public notice and a required public hearing, the Board must adopt the proposed budget and an appropriating resolution that legally appropriated expenditures for the upcoming year on or before December 5, 2003. The Board adopted the 2004 budget on December 17, 2003. (3) After adoption of the initial budget resolution, the District may make the following changes: a) approve supplemental appropriations to the extent of revenues in excess of those estimated in the budget; b) approve emergency appropriations; and c) reduce appropriations for which originally estimated revenues are insufficient. During the year, supplemental appropriations were necessary. The budgetary comparison statements reflect the original budget and the final budget after legally authorized revisions were made. The District's expenditures exceeded budgeted expenditures by $32,110. This may be a violation of state statutes. Deficit Net Assets -Timber Ridge Affordable Housing Corporation The Corporation had a deficit of net assets at December 31, 2004 of $1,335,553. D12 Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2004 (Continued) III. Stewardship, Compliance, and Accountability (continued) D. Compliance with Trust Indentures -Timber Ridge Affordable Housing Corporation The bond indenture for the Corporation's Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A (the "2003A Bonds"), establishes initial funding of a bond reserve ' fund at $317,094 but permits the trustee to release moneys in the bond reserve fund to the Corporation to pay operating and maintenance expenses of the Project. During the 2004, a total of $176,788 ($123,212 for the period ended December 31, 2003) was ' released to the Corporation pursuant to these provisions in the indenture of the 2003A Bonds. As a result, the balance in the bond reserve fund for the 2003A Bonds at December 31, 2004 was less than the requirement of $595,157. ' As described in Note IV.J., the Reimbursement Agreement with U.S. Bank requires the Corporation to fund a Replacement Reserve in 2003 and annually thereafter. While the Corporation made the required deposit to the Replacement Reserve account for 2003, the additional funding requirement for 2004 ($92,700) was not deposited to the Replacement Fund. Consequently, the balance in the Replacement Reserve account at December 31, 2004 is $91,888 less than required by the Reimbursement Agreement. The Reimbursement Agreement also requires that, commencing August 1, 2004 and annually thereafter, the Corporation deposit into a Rate Cap Escrow account an amount not less than $45,000, to be used only to pay for required rate protection agreements. As of December 31; 2004, the Corporation had not made the required deposit into a Rate Cap Escrow account. E. TABOR Amendment In November 1992, Colorado voters amended Article X of the Colorado Constitution by adding Section 20, commonly know as the Taxpayer's Bill of Rights ("TABOR"). TABOR contains revenue, spending, tax and debt limitations that apply to the State of Colorado and local governments. TABOR requires, with certain exceptions, advance voter approval for any new tax, tax rate increase, mill levy above that for the prior year, extension of any expiring tax, or tax policy change directly causing a net tax revenue gain to any local government. Except for refinancing bonded debt at a lower interest rate or adding new employees to existing pension plans, TABOR requires advance voter approval for the creation of any multiple-fiscal year debt or other financial obligation unless adequate present cash reserves are pledged irrevocably and held for payments in all future fiscal years. TABOR also requires local governments to establish an emergency reserve to be used for declared emergencies only. Emergencies, as defined by TABOR, exclude ecohomic conditions, revenue shortfalls, or salary or fringe benefit increases. The reserve is calculated at 3% of fiscal year spending for fiscal years ending after December 31, 1995. ' Fiscal year spending excludes bonded debt service and enterprise spending. The Town has reserved a portion of the December 31, 2004 fund balance in the General Fund for this purpose in the amount of $1,272,000 which is the approximate required reserve. ' The initial base for local government spending and revenue limits is December 31, 1992 fiscal year spending. Future spending and revenue limits are determined based on the prior year's fiscal year spending adjusted for inflation in the prior calendar year plus ' annual local growth. Fiscal year spending is generally defined as expenditures and reserve increases with certain exceptions. Revenue, if any, in excess of the fiscal year spending limit must be refunded in the next fiscal year unless voters approve retention of ' such revenue. D13 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) Stewardship, Compliance, and Accountability (continued) E. TABOR Amendment (continued) On November 16, 1993, voters of the Town approved the collection and expenditure of all revenues generated, including reduction in debt service during 1993 and each subsequent year (not including revenue generated from ad valorem property taxes) without any increase in such tax rates and the expenditure of such revenues for debt service, municipal operations, and capital projects, effective January 1, 1994. On November 7, 2000, the Town's electorate approved the collection and expenditure of all revenues received from ad valorem property taxes levied in 2000 and each year thereafter. The remaining restrictions~of the TABOR Amendment apply, which are: • Voter approval of all new taxes and tax rate increases; • Voter approval for new or additional Town debt; No increase or imposition of a new real estate transfer tax; and, • All election requirements remain in effect. The Town's management believes it is in compliance with the financial provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of its provisions, including the interpretation of how to calculate fiscal year spending limits, will require judicial interpretation. F. TABOR Amendment -Vail Local Marketing District As required by TABOR, the District has reserved $47,000 of its fund balahce for emergencies, which is the approximate required reserve at December 31, 2004. The ballot question approved by voters on November 2, 1999, which established the 1.4% tax on lodging within the Town's boundaries also authorized the District to collect and spend the proceeds of the lodging tax, investment income, and all other revenues, without regard to the limitations imposed by TABOR, effective January 1, 2000. The District's management believes it is in compliance with the financial provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of its provisions, will require judicial interpretation. IV. Detailed Notes on all Funds A. Cash and Investments 1. Authorization for Deposits and Investments Pursuant to its charter, the Town has adopted, by ordinance, an investment policy governing the types of institutions and investments with which it may deposit funds and transact business. Under this policy, the Town may invest in federally insured banks, debt obligations of the U.S. Government, its agencies and instrumentalities, governmental mutual funds and pools, and repurchase agreements subject to policy requirements. The Town also accounts for the operations of the employees' pension plans that are.administered by select employees acting as trustees who are governed by a trust agreement. The trust agreement gives the trustees considerable latitude with investment alternatives. As a result, all pension investments are considered legal under the trust agreement. D14 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) IV, Detailed Notes on all Funds A. Cash and Investments (continued) 2. Deposits and Investments ' The Town maintains a cash and investment pool in which all funds participate except the Deferred Compensation Plan Fund and the Pension Trust Fund. Each fund's position in this pool is displayed on the Statement of Net Assets as "Equity in Pooled Cash and Investments." In addition, several of the Town's funds may include investments held separately that are restricted for various purposes. ' The Colorado Public Deposit Protection Act (the "PDPA") requires that all units of local government deposit cash in eligible public depositories; eligibility is determined by state regulators. Amounts on deposit in excess of federal insurance levels must be collateralized. The eligible collateral is determined by the PDPA. The PDPA allows the institution to create a single collateral pool for all public funds. The pool is to be maintained by another institution or held in ' trust for all the uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the uninsured deposits. The amount of total bank balance may be classified among the following three categories on the basis of credit risk: (1) Insured or collateralized with securities held by the entity or by its agent or by its agent in the entity's name; ' (2) Collateralized with securities held by the pledging financial institution's trust department or agent in the entity's name; ' (3) Uncollateralized. This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust ' department of agent but not in the entity's name. At December 31, 2004, the carrying value of the Town's deposits (which includes component units) was $4,180,436. The bank balance of these accounts was ' $5,451,865; of which $525,003 was covered by FDIC insurance, $4,91.8,108 was collateralized in institution pools as described above, and $8,754 was uncollateralized. The difference between carrying and bank balances represents items that had not cleared the bank at year-end. GASB has determined three levels of credit risk that apply to the Town's investments: t (1) Insured or registered, with securities held by the Town, Pension Trust Fund or its agent in the Town's or Pension Trust Fund's name. ' (2) Uninsured or unregistered, with securities held by the counter party's trust department or agent in the Town's or Pension Trust Fund's name. ' (3) Uninsured or unregistered, with securities held by the counter party, or by its trust department or agent but not in the Town's or Pension Trust Fund's name. D15 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) IV. Detailed Notes on all Funds A. Cash and Investments (continued) 2. Deposits and Investments (continued) At December 31, 2004, the Town had invested $20,009,474 in the Colorado Government Liquid Asset Trust (COLOTRUST), an investment vehicle established for local government entities in Colorado to pool surplus funds. These funds operate similarly to a money market fund and each share is equal in value to $1. Investments of these funds consist of U.S. Treasury bills, notes and note strips and repurchase agreements collateralized by U.S. Treasury securities. A designated custodial bank provides safekeeping and depository services in connection with the direct investment withdrawal functions. In addition, the Town (including component units) had invested $279,655 in money market mutual funds at December 31, 2004. Investments in COLOTRUST and mutual funds are not categorized as described above since such investments are not evidenced by specific securities that exist in physical or book form. Following is a summary of the Town's categorized investments at amortized cost and market which approximates market, based upon aforementioned levels of risk at December 31, 2004. Carrying Value Category 1 Category 2 U.S. Government agencies $ 5,331,168 1,000,000 4,331,168 The Town's total cash deposits and investments, including those of the Pension Trust Fund and the Deferred Compensation Plan Fund, at December 31, 2004 were as follows: Cash on hand Money market/checking accounts Certificates of deposit Statutory government pools U.S. government obligations Publicly-traded mutual funds Money market mutual funds Totals Pension All Other Trust Funds Fund $ 15,147 - 2,579,392 1,601,044 20,009,474 5,331,168 279,655 Deferred Compensation Plan Fund Total - 15,147 33,740,458 3,488,625 2,579,392 1,601;044 20,009,474 5,331,168 37,229,083 279,655 $ 29,815,880 33,740,458 3,488,625 67,044,963 Investments in the Deferred Compensation Plan and the Pension Trust Funds are held by trustees and are not categorized because they are not evidenced by specific securities that exist in physical or book form. D16 1 Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2004 (Continued) S IV. Detailed Notes on all Funds A. Cash and Investments (continued) 2. Deposits and Investments (continued) ' Financial statement captions at December 31, 2004 are as follows: Government-wide Statement of Net Assets: ' Equity in pooled cash/investments $ 29,278,253 Cash and cash equivalents -Unrestricted 188,015 Cash and cash equivalents -Restricted 349,612 ~ 29,815,880 ' Fiduciary Funds: Pension Trust Fund: ' Cash and investments -Restricted Deferred Compensation Plan Fund: 33,740,458 Cash and investments -Restricted 3,488,625 ' 37,229,083 Total $ 67,044,963 ' B. Receivables Receivables as of year-end for the Town's funds, including applicable all owances for ' uncollectible accounts, are as follows: Capital Real Estate Conference General Projects Transfer Center ' Fund Fund Tax Fund Fund Receivables: Property taxes $ 2,473,458 - - - ' Other taxes 808,405 2,411,026 166,639 575,353 Other governments 5,000 - - Employees 116,730 - - = ' Other 624,031 511,516 6,600 - Gross Receivables 4,027,624 2,922,542 173,239 575,353 Less: Allowance for uncollectibles 1,000 - - - ' Net Receivables 4,026,624 2,922,542 173,239 575,353 1 D17 IV. ' Town of Vail Colored o Notes to the Financial Statements December 31, 2004 ' (Continued) Detailed Notes on all Funds (continued) B. Receivables (continued) , Heavy Health Marketing Timber Equipment Insurance District Ridge Fund Fund Total Receivables: Property taxes $ - - - - 2,473,458 Other taxes 344,322 - - - 4,305,745 Other governments - - - - 5,000 ' Employees - - - - 116,730 Other - 3,345 102,270 414 1,248,176 Gross Receivables 344,322 3,345 102,270 414 8,149,109 , Less: Allowance for uncollectibles - - - - 1,000 , Net Receivables 344,322 3,345 102,270 414 8,148,109 Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Total ' deferred revenue for governmental activities totaled $3,171,087 and is comprised of the following: General Property taxes assessed but not collectible until 2005 $ 2,473,458 Other deferred revenues: Business licenses 48,981 Library grants 65,667 Pension forfeitures 582,981 Total 3,171,087 Deferred. revenue. for business.-type activities. in the amount of $32;.159 is related to prepaid rent. D18 IV. Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) Detailed Notes on all Funds (continued) C. Capital Assets Capital asset activity for the year ended December 31, 2004 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated: Land $ 22,158,831 - - 22,158,831 Total Capital Assets, Not Being Depreciated 22,158,831 - - 22,158,831 Capital Assets, Being Depreciated: Buildings and improvements 51,574,015 3,123,222 (14,145) 54,683,092 Infrastructure and improvements 5,148,348 6,512,002 - 11,660,350 Equipment and vehicles 18,534,202 3,104,427 (2,169,897) 19,468,732 Total Capital Assets Being Depreciated 75,256,565 12,739,651 (2,184,042) 85,812,174 Less Accumulated Depreciation For: Buildings and improvements (22,091,483) (1,465,693) 1,980 (23,555,196) Infrastructure and improvements (129,355) (277,193) - (406,548) Equipment and vehicles (11,668,672) (1,409,894) 1,092,446 (11,986,120) Total Accumulated Deprecation (33,889,510) (3,152,780) 1,094,426 (35,947,864) Total Capital Assets, Being Depreciated, Net 41,367,055 9,586,871 (1,089,616) 49,864,310 Govemrr~ental Activities Capital Assets, Net $ 63,525,886 9,586,871 (1,089,616) 72,023,141 Business-type Activities Capital Assets, Not Being Depreciated: Land $ 4,399,500 - - 4,399,500 Total Capital Assets,. Not Being Depreciated 4,399,500 - - 4,399,500 Capital Assets, Being Depreciated: Buildings and improvements Equipment Total Capital Assets Being Deprecated Less Accumulated Depreciation For: Buildings and improvements Equipment Total Accumulated Depreciation Total Capital Assets, Being Depreciated, Net Business-type Activities Capital Assets, Net 15,578,000 14,145 - 15,592,145 30,897 2,279,565 (79,924) 2,230,538 15,608,897 2,293,710 (79,924) 17,822,683 (237,997) (521,813) - (759,810). (2,832) (680,575) 70,164 (613,243) (240,829) (1,202,388) 70,164 (1,373,053) 15,368,068 1,091,322 (9,760) 16,449,630 $ 19,767,568 1,091,322 (9,760) 20,849,130 D19 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) IV Detailed Notes on all Funds (continued) C. D. E. Capital Assets (continued) Depreciation expense was charged to functions of the Town as follows: Governmental Activities: General government $ 220,172 Public safety 260,764 Public works and transportation 1,530,206 Culture and recreation 513,163 Economic development 17,702 Total Depreciation Expense -Governmental Activities $ 2,542,007 Business-type Activities: Dispatch services $ 156,550 Housing 525,446 Total Depreciation -Business-type Activities $ 156,550 Depreciation on fixed assets is recorded using the following estimated useful lives: Years Buildings 25 - 40 " Building improvements 7 - 25 Infrastructure 5 - 30 Vehicles 5 - 15 Equipment 5 -10 At December 31, 2004, the Town had $3,492,067 of fully depreciated assets. Operating Leases The Town is committed under various leases for buildings, office space, and equipment. For accounting purposes, these leases. are considered.to be operating leases, and therefore, the liability and the related assets have not been recorded in these financial statements. Interfund Receivables, Payables, and Transfers There were no interfund balances at December 31, 2004. Interfund transfers during the year ended December 31, 2004 were as follows: Transferred to: Transferred from: Amount Purpose Capital Projects Dispatch Services $ 110,000 Funding for capital acquisitions Capital Projects General 1,773,800 Funding for capital acquisitions Capital Projects Real Estate Transfer Tax 1,130,205 Funding for capital acquisitions Debt Service Capital Projects 2,337,905 Transfer sales tax for debt service payment General Real Estate Transfer Tax 27,435 Transfer surplus from manhole cover sales D20 Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2004 (Continued) . ' IV. Detailed Notes on all Funds (continued) F. Long-term Liabilities -Governmental Activities ' The Town has the following long-term debt outstanding for governmental activities: ' 1. Tax-Exempt Sales Tax Revenue Refunding Bonds, Series 1998A The Town issued $8,760,000 of insured Tax-Exempt Sales Tax Revenue ' Refunding Bonds (the "1998A Bonds") dated September 1, 1998. Proceeds of the 1998A and 19986 Bonds (described below) were used to refund the outstanding principal balance on bonds issued in 1991 and 1992, which are considered to be defeased. The interest rate on the 1998A Bonds ranges from 4.25% to 4.5%. Coupon payment dates for the 1998A Bonds are June 1 and December 1 annually. ' The Bonds are revenue obligations of the Town payable solely from the Town's 4% sales tax. The 1998A Bonds are secured by a lien on, but not an exclusive lien on, the sales tax. ' 1998A Bonds maturing on and after December 1, 2009 are subject to redemption prior to maturity at the option of the Town, in whole or in part, on December 1, 2008 and thereafter, at a redemption price equal to par, plus accrued interest to ' the redemption date. 2. Taxable Sales Tax Revenue Refunding Bonds, Series 19986 The Town issued $735,000 of insured Taxable Sales Tax Revenue Refunding Bonds (the "19988 Bonds") dated September 1, 1998. The interest rate ranges from 6.00% to 6.05%. Coupon payments are due June 1 and December 1 ' annually. The 19988 Bonds are revenue obligations of the Town payable solely from the Town's 4% sales tax. The bonds are secured by a lien on, but not an exclusive lien on, the sales tax. ' The 19986 Bonds are not subject to redemption prior to maturity. 3. General Obligation Refunding Bonds, Series 2002A The Town issued $3,205,000 of General Obligation Refunding Bonds dated September 1, 2002 (the "2002A Bonds"). Proceeds from the 2002A bonds were used to refund 1992 bonds. The interest rate on the 2002A Bonds ranges from ' 3.0% to 4.0% and is payable on December 1 annually through December 2005. The 2002A Bonds are general obligations of the Town, payable from ad valorem property taxes to be levied without limitation as to rate or amount against all taxable property in the Town. The Series 2002A Bonds are not subject to early redemption. ' D21 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) IV. Detailed Notes on all Funds (continued) F. Long-term Liabilities -Governmental Activities (continued) 4. Sales Tax Revenue Refunding Bonds, Series 20026 The Town issued $5,570,000 of Sales Tax Revenue Refunding Bonds dated September 1, 2002 (the "20028 Bonds"). Proceeds from the 2002B Bonds were used to refund outstanding 1992 bonds. The interest rate on the 20028 Bonds ranges from 2.5% to 4.0% and is payable on June 1 and December 1 annually through December 1, 2012. The 20028 Bonds are special limited obligations of the Town payable solely from the Town's existing 4% sales tax and from any legally available tax or taxes or fees (other than general ad valorem tax). The 20026 Bonds constitute an irrevocable lien (but not an exclusive lien) upon the pledged revenues, on parity with the 1998 Bonds. 20026 Bonds maturing on or before December 1, 2011 are not subject to prior redemption. 20026 Bonds maturing on or after June 1, 2012 are subject to redemption prior to their maturities, at the option of the Town, in whole or in part, on December 1, 2011 or thereafter, at a redemption price equal to the principal amount redeemed, plus a redemption premium equal to 1 % of the principal redeemed, plus accrued interest to the redemption date. G. Long-term Liabilities -Business-type Activities The Town has the following long-term debt outstanding for business-type activities: Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A The 2003A Bonds were issued July 15, 2003 in the principal amount of $19,025,000 as limited obligations of the Corporation and not indebtedness of the Town. The 2003A Bonds are payable solely from the rents and other receipts from operation of the Project, net of the Project's actual operating expenses (the "Pledged Revenues") and the various reserve funds and other monies pledged under the terms of the 2003A indenture. Certain capitalized terms are further described in the 2003A indenture. The 2003A Bonds bear interest at the Weekly Rate established by the George K. Baum & Company (the "Remarketing Agent") until converted to another "mode", including a Fixed Rate, by the Corporation. While in any interest rate mode other than a Fixed Rate, the 2003A Bonds are subject to repurchase upon demand by any bondholder at 100% of the ou#standing principal amount plus accrued interest: All tendered bonds are then to be subsequently remarketed by the Remarketing Agent. D22 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) j IV Detailed Notes on all Funds (continued) G. Long-term Liabilities -Business-type Activities (continued) 1. Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A (continued) The 2003A Bonds are subject to redemption prior to maturity (December 1, 2032 or specific maturity date, if converted to Fixed Rate) at the Corporation's option, using moneys in the Redemption Fund, as follows: • 2003A Bonds in a Daily Mode or Weekly Mode - on any date prior to Maturity at 100% of the principal amount, plus accrued interest. • 2003A Bonds in a Commercial Long-Term Mode -after the following No-Call Period and at the following redemption prices, plus accrued interest: Length of Rate Period No-Call Period Redemption Price Greater than 12 years 10 years from the Rate 101 %, declining 0.5% per Change Date 6 months to 100% Greater than 4 years, but less than 12 years Until 2 years prior to the end of the Rate Period 100% Less than or equal to 4 years Length of the Rate Period Not subject to optional redemption • 2003A bearing a Fixed Rate -after the following No-Call Period and at the following redemption prices, plus accrued interest: Length of Rate .Period Greater than 12 years Greater than 4 years, but less than 12 years Less than or equal to 4 years No-Call Period 10 years from the Conversion Date Until 2 years prior to Maturity Term to Maturity Redemption Price 101 %, declining 0.5% per 6 months to 100% 100% Not subject to optional redemption From the date of issuance through December 31, 2004, the 2003A Bonds were ih the Weekly Mode, with interest rates set by the Remarketing Agent at 1.19% - 2.54% per annum through December 31, 2004 and from 1.20% to 1.27% per annum from issuance through December 31, 2003. At December 31, 2004, the interest rate on the 2003A Bonds was 2.52% per annum. D23 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 _ (Continued) IV Detailed Notes on all Funds (continued) G. Long-term Liabilities -Business-type Activities (continued) 2. Subordinate Housing Facilities Revenue Bonds, Series 20036 ("20038 Bonds") The 20036 Bonds were issued July 15, 2003 in the principal amount of $1,570,000 as subordinated, limited obligations of the Corporation and not indebtedness of the Town. The 20036 Bonds are payable solely from the Pledged Revenues and the various reserve funds and other monies pledged under the terms of the 20036 indenture, but the pledge of security interest in the Pledged Revenues is subordinated to the pledge of these same revenues for payment of the 2003A Bonds. The 20038 Bonds bear interest at the rate of 6.25°/a per annum, with semi-annual blended payments of interest and principal on June 1 and December 1 annually. The 20036 Bonds mature December 1, 2013 but are subject to prior redemption, at the Corporation's option, at 100% of the principal amount, plus accrued interest; provided that redemption of the bonds is not from the proceeds of refunding bonds or other financing by the Corporation. Promissory Note -Town of Vail (the "Town Note") In connection with the Corporation's purchase of the Project, the Town advanced $1,000,000 to the Corporation upon execution of a promissory note (the "Town Note"). The Town Note, which bears interest at the rate of 1.5% per annum, matures December 1, 2032. The Town Note is payable solely from the Pledged Revenues, but the pledge of security interest in the-Pledged Revenues is subordinated to the pledge of these same revenues for payment of the 2003A Bonds and the 20038 Bonds. The Town Note is payable to the extent that the Corporation has determined that excess net revenues of the Project, after provision for necessary operating or capital reserves, have accumulated semi-annually on the business day following debt service on the 20038 Bonds. The Town Note may be repaid by the Corporation at any time without penalty. In the event that the a shortfall arises in the Bond Reserve Funds (as defined in the 2003A and 20038 Indentures) for the 2003A Bonds and/or the 20036 Bonds which is not cured within the prescribed deadlines by the Corporation, U.S. Bank National Association (the "Trustee") will request that the Town replenish the deficient Bond Reserve Fund, and the Town has agreed to consider such requests but is not obligated to do so. Any funds advanced by the Town to replenish Bond Reserve Funds will be considered additional loans by the Town, subject to the same terms as the original Town Note. The Town's failure to replenish any deficiency in the Bond Reserve Funds will not constitute an Event of Default (as defined in the 2003A and 20036 Indentures) for the 2003A Bonds or the 20036 Bonds. D24 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) ' IV. Detailed Notes on all Funds (continued) I H. Long-term Liabilities -Compensated Absences The Town has a policy allowing the accumulation of paid vacation and sick leave, subject to certain maximum limits. In accordance with GAAP, the Town's approximate liability for ' vacation pay earned by employees at December 31, 2004 has been reflected in the proprietary type fund financial statements and in the governmental activities column of the government-wide financial statements. ' Accumulated sick pay of approximately $2,115,000 at December 31, 2004 has not been reflected in the Town's financial statements as the amount is partially insured by an independent insurance company and the amounts are not payable at termination. I. Long-term Liabilities -Activity and Debt Service Schedules ' Long-term liability activity for the year ended December 31, 2004 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Govemmerrtal Activities: General Obligation Bonds: Refunding Bonds, Series 2002A $ 2,065,000 - (1,295,000) 770,000 770,000 ' Sales Tax Revenue Bonds: Tax-l=xempt Refunding Bonds, Series 1998A 8,760,000 - - 8,760,000 - Taxable Refunding Bonds, ' Series 19986 735,000 = - 735,000 - Refunding Bonds, Series 20028 5,570,000 (310,000) 5,260,000 925,000 Compensated absences 747,187 98,176 - 845,363 338,145 ' Total Governmental Activities Long-term Liabilities $ 17,877,187 98,176 (1,605,000) 16,370,363 2,033,145 ' Business-type Activities: Housing Faalities Revenue Bonds: Adjustable Rate, Series 2003A $ 19,025,000 - - 19,025,000 - Subordinated, Series 20036 1,570,000 - (115,000) 1,455,000 130,000 ' Promissory note 1,000,000 - - 1,000,000 - Compensated absences 92,732 (26,617) 66,115 26,446 Total Business-type Activities Long-term Liabilities $ 21,687,732 - (141,617) 21,546,115 156,446 D25 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) IV Detailed Notes on all Funds (continued) I. Long-term Liabilities -Activity and Debt Schedules (continued) J Debt service requirements at December 31, 2004 were as follows: Governmental Activities: 2005 2006 2007 2008 2009 2010-2012 Total Governmental Activities Business-type Activities 2005 2006 2007 2008 2009 2010-2014 2015-2019 2020-2024 2025-2029 2030-2032 Total Business-type Activities Principal $ 1,695,000 1,755,000 1,810,000 1,890,000 1,965,000 6,410,000 15,525,000 $ 130,000 140,000 145,000 155,000 550,000 3,125,000 3,100,000 4,035,000 5,235,000 4,865,000 21,480,000 Interest Total 620,299 562, 324 512,099 432,396 355,165 548,563 3,030,846 2,315,299 2,317,324 2,322,099 2,322,396 2, 320,165 6,958,563 18,555,846 585,368 577,243 568,493 559,430 549,743 2,427,841 1,972,308 1,537,230 971,616 221,197 9,970,469 715,368 717,243 713,493 714,430 1,099,743 5,552,841 5,072,308 5,572,230 6,206,616 5,086,197 31,450,469 Included in debt service requirements for business-type activities above are principal and interest payments due to the Town in the amounts of $1,000,000 and $428,125, respectively. Credit Facility and Reimbursement Agreement -Timber Ridge Affordable Housing Corporation Certain capitalized terms are defined in the 2003A Bonds Indenture. In connection with the issuance of the 2003A Bonds, an irrevocable, stand-by, direct pay letter of credit (the "Credit Facility') in the amount of $19,207,432 was established July 17, 2003 by U.S. Bank, National Association ("U.S. Bank") in favor of the Trustee for the 2003A Bonds. Under the terms of the Credit Facility, up to $19,025,000 may be drawn to pay principal amounts of the 2003A Bonds, and up to $182,432 may be drawn to pay up to 35 days' accrued interest on the 2003A Bonds at a maximum rate of 10% per annum. Available credit under the Credit Facility will be permanently and proportionately reduced upon notice from the Trustee of redemption of less than all of the 2003A Bonds. D26 Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2004 (Continued) I IV. Detailed Notes on all Funds (continued) J. Credit Facility and Reimbursement Agreement -Timber Ridge Affordable Housing Corporation (continued) The Credit Facility expires at the earlier of: ' a. July 17, 2008, although it automatically renews for successive one-year terms (unless U.S. Bank notifies the Trustee that the Credit Facility has not been renewed); b. 15 days following notice by U.S. Bank requiring payment of all outstanding 2003A Bonds due to Default; c. The date of acceleration or redemption of all 2003A Bonds; ' d. The second business day after conversion of the 2003A Bonds to a Fixed Mode interest rate; or e. The date of surrender of the Credit Facility for cancellation, as required by the ' Indenture. Concurrent with the Credit Facility, the Corporation executed a Reimbursement Agreement and a Demand Note in favor of U.S. Bank, evidencing the Corporation's ' obligation to repay all advances under the Credit Facility, together with interest on all such draws. All amounts drawn on or charged against the Credit Facility bear interest at the Bank Rate, which is equal to U.S. Bank's Prime Rate plus 200 Basis Points. The Credit Facility automatically renews each year, subject to the Corporation's compliance with requirements as to operational performance of the Corporation, provision of certain records to the Trustee, and payment of all fees (including annual stand-by fees equal to 125 Basis Points calculated on the original credit commitment, plus U.S. Bank's standard fees and charges for processing draws on the Credit Facility). Pursuant to this arrangement, the Corporation incurred financing fees during 2004 totaling $243,759 for U.S. Bank in respect of stand-by fees for the Credit Facility. During the period ended December 31, 2003, U.S. Bank was paid aone-time origination fee of $192,074 from the proceeds on issuance of the 2003A Bonds, which has been capitalized in Bond Issue Costs. t During 2004, the Corporation drew and repaid $285,893 of advances on the Credit Facility. At December 31, 2004, no balance was outstanding on the Credit Facility. The Reimbursement Agreement imposes the following funding commitments on the Corporation: a. Commencing January 1, 2009, the Corporation is to deposit into the Bond Principal Fund an amount equal to 1/12th of the scheduled principal reductions for the 2003A Bonds, to be used by the Trustee to pay for optional redemptions as provided in the 2003A Indenture. b. $90,000 was paid from the proceeds of issuance of the 2003A Bonds into a Replacement Reserve account. Annually thereafter, the Corporation is to deposit an equal amount increased by 3% per annum into the Replacement Reserve ' account, with usage of such funds restricted to capital improvements 4o the Project approved by U.S. Bank. The Replacement Reserve Account is pledged to U.S. Bank and not the owners of the 2003A Bonds. c. The Corporation is required to deposit all security deposits received from tenants of the Project into a separate account. d. Commencing August 1, 2004 and annually thereafter, the Corporation is to deposit into a Rate Cap Escrow Account an amount not less than $45,000, to be ' used only to pay for required rate protection agreements. D27 Town of Vail, Colorado Notes to the Financial Statements ' December 31, 2004 (Continued) IV Detailed Notes on all Funds (continued) , J. Credit Facility and Reimbursement Agreement -Timber Ridge Affordable Housing , Corporation (continued) As required by the Reimbursement Agreement and for as long as the Credit Facility is outstanding, the Corporation is required to have in effect a rate protection agreement at a fixed interest rate acceptable to U.S. Bank in an amount equal to the then-outstanding principal amount of the Credit Facility, with a floating rate payer acceptable to U.S. Bank. The Corporation's rate protection agreement is subsequently described. V Other Information A. Pension Plans The Town offers two defined contribution pension plans to cover all permanent paid employees of the Town. In addition, employees of Vail Recreation District ("VRD") participate and are subject to the same plan provisions, other than contribution rates. The Town established these qualified money purchase pension plan under Internal Revenue Code section 401(a), and may amend all of the plan provisions. The first plan covers all full time and qualified seasonal employees other than sworn police officers and firefighters; the second plan covers all full time and qualified seasonal employees of the Town's Police and Fire departments. The plan provisions are the same for both plans. In defined contribution plans, benefits depend solely on amounts contributed to the plans plus investment earnings. Employees are eligible to participate in the plans from the date of employment or the effective date of the plans, January 1, 1983, whichever is later. The plans provide for contributions to be made by the Town of 12.6% of regular compensation for the first year of employment and 17.6% thereafter. For employees hired after April 1, 1986, the Town's contribution is 11.15% of regular compensation for the first year, and 16.15% thereafter. Employees have the option to make voluntary contributions of up to 10% of their compensation. In the event of continued long-term disability of an employee, the Town's disability insurance will continue to make contributions to the plan for the employee through age 60 at the rate on the date .of disability. For employees hired before July 1, 1986, vesting of the Town's contributions is 77.5% after the first year of employment with an additional vesting of 7.5% per year through the fourth year, when vesting is 100%. For employees hired after June 30, 1986, vesting of the Town's contributions to the employees is 20% after the first year of employment with additional vesting of 20% per year through the fifth year, when vesting is 100%. If an employee dies, becomes disabled, or attains the age of 60, their entire interest in the plans becomes vested; normal retirement age is 60 with early retirement at age 50 and four years of service. In 1991, the Town established a defined contribution pension plan for seasonal employees who work for the Town longer than 6 weeks. Seasonal employees are required to contribute 6% of regular compensation to the plan and the Town contributes 1.5%. Seasonal employees are 100% vested after their first contribution. Employees covered under the regular and seasonal pension plans do not participate in the Social Security system. D28 Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2004 (Continued) ' V. Other Information (continued) A. Pension Plans (continued) The annual pension cost is the Town's contributions less forfeitures from the prior year. The plans' invested assets at December 31, 2004 of $33,740,458 are stated at market value. All earnings, losses, expenses and changes in the fair market value of the trust fund will be apportioned at least annually among the participants in proportion to each participant's current share of the Trust Investment Fund. The Town has no liability for unfunded future vested employee benefits. The trustees and administrators of the plans are the Retirement Boards. The Retirement Boards determine investment options made available to participants, in adherence with ' an adopted investment policy statement. The total amount of the Town's 2004 covered payroll was $12,668,833, of which ' $11,327,695 was for permanent employees and $1,341,138 was for seasonal staff. Total 2004 payroll for all Town employees was $12,791,605. B. Retirement Savings Plan -Deferred Compensation Plan - IRC 457 ' The Town offers its employees a deferred compensation plan (the "457 Plan") created in accordance with Internal Revenue Code section 457. The 457 Pian, avaiiable to all Town employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or uriforeseeable emergency. ' All amounts of compensation deferred under the 457 Plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are to be held in trust for the exclusive benefit of the 457 Plan participants and their beneficiaries. 1 The modified accrual basis of accounting is used for the 457 Plan. ' The trustees and administrators of the 457 Plan are the Retirement Board, which comprises members of the Town's administration. The Retirement Board determines investment options made available to participants, in adherence to an adopted investment policy statement. The Town has no liability for losses under the 457 Plan but does have the duty of due care that would be required of an ordinary prudent investor. ' The total assets of the 457 Plan were $3,488,625 at December 31, 2004. The assets were invested in mutual funds, as previously described. Pursuant to the Town's adoption of GASB Statement No. 32, Accounting and Financial Reporting for Infernal Revenue Code Secfion 457 Deferred Compensation Plans, the 457 Plan has been included in these financial statements as an expendable trust fund. C. Cafeteria Plan The Town offers a cafeteria compensation plan organized under section 125 of the internal Revenue Code, which includes dependent care and health expense reimbursement. No cost to the Town is recognized as the plan is a salary reduction plan. D29 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) V Other Information (continued) D. Risk Management The Town is exposed to various risks of loss related to workers compensation, general liability, unemployment, torts, theft of, damage to, and destruction of assets, and errors and omissions. The Town carries commercial coverage for these risks and claims and does not expect claims to exceed their coverage. E. Commitments and Contingencies Legal Claims During the normal course of business, the Town may incur claims and other assertions against it from various agencies and individuals. Management of the Town and their legal representatives feel none of these claims or assertions are significant enough that they would materially affect the fairness of the presentation of the financial statements at December 31, 2004. 2. Federal Funds Funds received from Federal grants and programs are subject to audit and disallowance on ineligible costs. Management of the Town feels any potential questioned or disallowed costs would not materially affect the fairness of the presentation of the financial statements at December 31, 2004. 3. Mold Remediation -Timber Ridge Affordable Housing Corporation During the period ended December 31, 2003, the Corporation began remediation and other precautionary renovations to the Project to alleviate potential and identified mold problems in 90 rental units. Additional units were renovated in 2004. The Corporation incurred a total of $252,655 in mold remediation costs during the period ended December 31, 2004 ($372,470 for the period ended December 31, 2003). Costs of future repairs will be "charged to operations in future periods as the extent of such additional repairs had not been determined at December 31, 2004. 4. Contingent Purchase Payment for Timber Ridge Property If, prior to the end of 2005, the Town agrees to sell, lease or otherwise convey the Timber Ridge property, the Town has agreed to pay additional compensation to the prior owner of the property as follows: a. If the property is sold or conveyed for more than $20 million, the Town is to be paid 50% of the net purchase price in excess of $20 million, up to a maximum payment of $3 million. b. If the property is subjected to a ground lease, guaranteed management contract, venture or similar arrangement where payments to the Town over the next 20 years exceeds $1.6 million per year, the Town is to pay 50°10 of the excess of $1.6 million per year, up to a maximum of $3 million. D30 Town of Vail, Colorado Notes to the Financial Statements December 31, 2004 (Continued) ' V. Other Information (continued) F. Rate Protection Agreement -Timber Ridge Affordable Housing Corporation Effective July.15, 2003, the Corporation entered into a Rate Protection Agreement with SMBC Derivative Products Limited ("SMBC") whereby SMBC agreed to limit the ' Corporation's interest payable on the 2003A Bonds to 4% per annum through August 1, 2006. For its services under the Rate Protection Agreement, SMBC was paid a fee of $133,000 during the period ended December 31, 2003, which has been capitalized as ' bond issue costs. G. Related Party Transactions -Vail Local Marketing District The District has executed a Coordination Agreement with Vail Valley Chamber & Tourism Bureau ("WCTB") under which WCTB provides marketing coordination services to the District in return for a fee equal to 7% of total lodging taxes collected by the District. The ' District paid WCTB $108,871 for its services in 2004. The Coordination Agreement also requires the District to pay 1 % of total lodging taxes collected by the District to the Town, as a fee for accounting services provided by the Town. Fees totaling $15,553 were incurred by the District during 2004 for accounting services provided by the Town. H. Conduit Debt -Town of Vail, Colorado Multifamily Housing Revenue Bonds (Middle Creek Village Apartments Project), Series 2003A, 20036 and 2003-T ' These bonds were issued in 2003 in an aggregate principal amount of $16,850;000 to finance construction of multi-family housing projects within the Town. The bonds mature in 2038. The bonds are solely payable from, and are secured by, a pledge of revenue ' from loan agreements between the Town and Middle Creek Village, LLC (as borrower). The borrower's obligation is secured by Deeds of Trust, Security Agreements, Financing Statements and assignment of rents and leases. The bonds are a special limited obligation of the Town, payable solely from the specified revenues of the projects, and do ' not constitute debt or indebtedness of the Town. I. Special Item -Change in Fund Type ' Due to changes in.its operations, the Dispatch Services Fund was changed from an internal service fund to ari enterprise fund in 2004. As a result, the net assets of this fund were transferred from governmental activities to business-type activities on the Statement of Activities. ' D31 REQUIRED SUPPLEMENTARY INFORMATION Town of Vail, Colorado General Fund ' Schedule of Revenues, Expen ditures and Changes in Fund Balances Budget (GAAP) Basis and Actual For the Year Ended December 31, 2004 (With Comparative Actual Amounts for 2003) ' 2004 2003 Final Budget Variance ' Original Final Positive Budget Budget Actual Negative) Actual Revenues: Taxes: ' General sales taxes 8,835,480 8,881,480 8,881,480 - 8,840,731 Property and ownership taxes 2,646,855 2,646,945 2,621,493 (25,452) 2,822,742 Ski area lift ticket admissions tax 2,420,500 2,420,500 2,496,162 75,662 2,273,055 Franchise tax 614,500 639,700 676,538 36,838 592,876 1 Penalties and interest on delinquent taxes 29,000 29,000 23,111 (5,889) 27,635 Total-Taxes 14,546,335 -~- 14,617,625 14,698,784 81,159 14,557,039 Permits and Licenses: Construction fees 904,445 1,153,706 1,608,461 454,755 1,020,917 ' Contractors' licenses 31,500 31,500 27,005 (4,495) 28,499 Other permits and licenses 50,375 50,375 49,811 (564) 46,282 Total -Permits and Licenses 986,320 1,235,581 1,685,277 449,696 1,095,698 Intergovernmental: County sales tax 479,750 479,750 515,268 35,518 484,152 County road and bridge 464,000 450,000 440,550 (9,450) 474,919 Additional motor vehicle registration fees 26,700 26,700 25,834 (866) 25,283 Cigarette tax 87,000 ~ 87,000 89,445 2,445 85,159 ' Highway users tax 199,125 199,125 182,908 (16,217) 195,571 State health inspection 12,400 12,400 14,274 1,874 6,285 Other state sources - 109,225 115,280 6,055 181,140 Federal sources 47,800 104,300 52,423 (51,877) 66,346 Total -Intergovernmental 1,316,775 1,468,500 1,435,982 (32,518) 1,518,855 ' Charges for Services: Management fees -Vail Local Marketing District 15,50b 15,500 15,014 . (486) 14,717 Internal service charge 285,335 425,135 465,586 40,451 266,592 ' Out of district fire response 30,000 12,200 32,091 19,891 35,998 Alarm monitoring fees 59,000 59,000 56,014 (2,986) 58,962 Parking 2,905,000 2,953,667 3,285,932 332,265 2,993,378 Fines and forfeitures 189,250 201,950 210,497 8,547 201,458 Rents 707,142 707,142 803,939. 96,797 616,411 Other charges, services, and sales 155,850 230,650 238,336 7,686 191,403 Total -Charges for Services 4,347,077 4,605,244 5,107,409 502,165 4,378,919 Other Revenues: Interest on investments 109,000 109,000 172,806 63,806 113,270 Other 122,250 297,959 359,829 61,870 234,879 Total -Other Revenues 231,250 406,959 532,635 125,676 348,149 ' Total Revenues 21,427,757 22,333,909 23,460,087 1,126,178 21,898,660 ' (continued) The accompanying notes are an integral part of these financial statements. E1 Town of Vail, Colorado General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2004 (With Comparative Actual Amounts for 2003) (Continued) Expenditures: General Government: Town officials Administrative Community development Total -General Government Public Safety: Police department, Fire department Total -Public Safety Public Works and Transportation: Highways and streets Transportation Parking operations Facility maintenance Total -Public Works and Transportation Culture and Recreation: Contributions and special events Special recreation facilities Library Total -Culture and Recreation Total Expenditures Excess of Revenues Over Expenditures Other Financing Sources (Uses): Transfers out Transfers in Sale of assets Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances • January 1 Fund Balances -December 31 2004 2003 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual 1,012,176 1,049,781 937,265 112,516 967,378 2,591,998 2,553,658 2,482,363 71,295 2,459,754 1,433,348 1,591,396 1,645,735 (54,339) 1,439,134 5,037,522 5,194,835 5,065,363 129,472 4,866,266 4,033,434 4,260,259 4,155,086 105,173 3,828,043 1,675,459 1,730,156 1,730,546 (390) 1,638,685 5,708,893 5,990,415 5,885,632 104,783 5,466,728 2,576,902 2,576,871 .2,390,515 186,356 2,389,431 2,810,383 2,807,981 2,803,253 4,728 2,698,689 569,081 620,107 600,548 19,559 551,116 2,746,548 2,503,448 2,458,015 45,433 2,296,404 8,702,914 8,508,407 8,252,331 256,076 7,935,640 1,167,346 1,030,907 996,662 34,245 1,184,765 - 181,100 178,912 2,188 77,093 702,941 702,941 657,952 44,989 777,318 1,870,287 1,914,948 1,833,526 81,422 2,039,176 21,319,616 21,608,605 21,036,852 571,753 20,307,810 108,141 725,304 2,423,235 1,697,931 1,590,850 - (1,773,800) (1,773,800) - - 27,435 27,435 - - - - - - 1,850 - (1,746,365) (1,746,365) - 1,850 108,141 (1,021,061) 676,870 1,697,931 1,592,700 9,016,571 10,376,744 10,376,744 - 8,784,044 9,124,712 9,355,683 11,053,614 1,697,931 10,376,744 The accompanying notes are an integral part of these financial statements. E2 Town of Vail, Colorado Special Revenue Funds Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2004, (With Comparative Actual Amounts for 2003) 2004 2003 Final Budget Variance ' Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Sales tax 5,890,320 6,118,520 6,700,095 581,575 5,893,821 Intergovernmental: County revenues 555,000 366,000 366,510 510 - CDOT grants = 40,322 40,322 - 167,771 ' Other state revenue 3,000 Federal grants 725,200 1,369,097 1,412,098 43,001 89,700 Total-Intergovernmental 1,280,200 1,775,419 1,818,930 43,511 260,471 Charges for Services: ' Leases - Vaii Commons 150,000 150,000 189,480 39,480 146,147 Resale fees 12,462 12,462 32,573 Total -Charges for Services 150,000 150,000 201,942 51,942 178,720 Other: ' Interest on investments 45,000 45,000 64,475 19,475 84,685 Project reimbursements/shared costs - 1,943,290 1,031,157 (912,133) Other - 250,000 278,058 28,058 181,590 Total- Other 45,000 2,238,290 1,373,690 (864,600) 266,275 Total Revenues 7,365,520 10,282,229 10,094,657 (187,572) 6,599,287 Expenditures: ' Public Works: Capital projects and acquisition 7,828,425 12,722,704 10,634,112 2,088,592 6,776,124 (Deficiency) of Revenues Over Expenditures (462,905 (2,440,475) (539,455) 1,901,020 (176,837) Other Financing Sources (Uses): Sale of assets = - - - 141,135 Transfers in 3,014,005 3,014,005 90,000 Transfers (out) (2,337,897 (2,337,897) (2,337,905) (8) (1,942,620) Total Other Financing Sources (Uses) (2,337,897 676,108 676,100 (8) (1,711,485) Special Item: Proceeds on sale of affordable housing rights Net Change in Fund Balances Fund Balances -January 1 Fund Balances -December 31 - - - - 1,000,000 (2,800,802) (1,764,367) 136,645 1,901,012 (888,322) 3,901,242 8,054,258 8,054,258 - 8,942,580 1,100,440 6,289,891 8,190,903 1,901,012 8,054,258 The accompanying notes are an integral part of these financial statements. E3 Town of Vail, Colorado Special Revenue Funds Real Estate Transfer Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2004 (With Comparative Actual Amounts for 2003) 2004 2003 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Real estate transfer tax 2,750,000 4,225,000 4,850,152 625,152 3,270,723 Intergovernmental Revenue: Lottery revenue 20,000 20,000 21,686 1,686 22,295 Other county revenue - 14,000 12,000 (2,000) 9,000 Other federal grants - - - - 879 Total -Intergovernmental Revenue 20,000 34,000 33,686 (314) 32,174 Charges for Services: Recreation amenities fee 10,000 63,000 226,745 163,745 12,928 Land lease to Vail Recreation District 112,579 112,579 107,941 (4,638) 107,941 Total -Charges for Services 122,579 175,579 334,686 159,107 120,869 Other; Project reimbursements - 50,000 56,600 6,600 38,286 Interest on investments 50,000 50,000 104,372 54,372 65,868 Other - - 35,000 35,000 48,612 Total -Other 50,000 100,000 195,972 95,972 152,766 Total Revenues 2,942,579 4,534,579 5,414,496 879,917 3,576,532 Expenditures: Culture and Recreation: Project management 137,323 304,077 320,478 (16,401) 235,272 Park maintenance 857,281 791,917 749,963 41,954 687,945 Capital projects 3,470,200 3,998,966 3,784,322 214,644 1,457,172 Total Expenditures 4,464,804 5,094,960 4,854,763 240,197 2,380,389 Excess (Deficiency) of Revenues Over Expenditures (1,522,225) (560,381) 559,733 1,120,114 1,196,143 Other Financing (Uses): Transfers (out) - (1,157,640) (1,157,640) - - Net Change in Fund Balances (1,522,225) (1,718,021) (597,907) 1,120,114 1,196,143 Fund Balances -January 1 4,291,484 6,280,458 6,280,458 - 5,084,315 Fund Balances -December 31 2,769,259 4,562,437 5,682,551 .1,120,114 6,280,458 The accompanying notes are an integral part of these financial statements. E4 Town of Vail, Colorado Special Revenue Funds ' Conference Center Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual ' For the Year Ended December 31, 2004 (With Comparative Actual Amounts for 2003) 2004 2003 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual ' Revenues: Taxes: Sales tax 1,655,000 1,740,000 1,828,234 88,234 1,703,864 Lodging tax 1,605,000 1,605,000 1,730,378 125,378 1,573,289 ' Penalties and interest on delinquent taxes 8,458 8,458 4,598 Total -Taxes 3,260,000 3,345,000 3,567,070 222,070 3,281,751 Other: Interest on investments - - 67,603 67,603 18,824 Total Revenues 3,260,000 3,345,000 3,634,673 289,673 3,300,575 Expenditures: Economic Development: Professional fees 163,000 167,250 178,353 (11,103) 163,848 General supplies 5,300 5,300 2,040 3,260 5,751 Capital outlay 200,000 1,100,000 789,484 310,516 104,438 ' Total Expenditures 368,300 1,272,550 969,877 302,673 274,037 Net Change in Fund Balances 2,891,700 2,072,450 2,664,796 592,346 3,026,538 t Fund Balances • January 1 2,918,500 3,026,538 3,026,538 - Fund Balances -December 31 5,810,200 5,098,988 5,691,334 592,346 3,026,538 ' The accompanying notes are an integral part of these financial statements. E5 Town of Vail, Colorado Special Revenue Funds Vail Marketing Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2004 (With Comparative Actual Amounts for 2003) Revenues: Permits and Licenses: Business licenses Other: Interest on investments Total. Revenues Expenditures: Economic Development: Commission on Special Events Administration fee Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing (Uses): Transfers out -Vail Local Marketing District Net Change in Fund Balances Fund Balances -January 1 Fund Balances -December 31 2004 2003 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual 316,000 316,000 308,198 (7,802) 314,867 - - 940 940 2,412 316,000 316,000 309,138 (6,862) 317,279 300,000 311,000 311,000 - 147,000 15,800 15,800 15,410 390 15,743 315,800 326,800 326,410 390 162,743 200 (10,800) (17,272) (6,472) 154,536 - - - - (150,000) 200 (10,800) (17,272) (6,472) 4,536 29,446 42,862 42,862 - 38,326 29,646 32,062 25,590 (6,472) 42,862 The accompanying notes are an integral part of these financial statements. E6 Town of Vail, Colorado Special Revenue Funds ' Vail Local Marketing District Schedule of Revenues, Expenditures and Changes i n Fund Bal ances Budget (GAAP Basis) and Actual ' For the Year Ended December 31, 2004 (With Comparative Actual Amounts for 2003) ' 2004 2003 Final Budget Variance ' Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: ' Lodging tax 1,488,000 1,488,000 1,555,305 67,305 1,501,403 Other: Interest on investments - - 7,628 7,628 5,122 ' Miscellaneous 3,290 3,290 Total -Other 10,918 10,918 5,122 ' Total Revenues 1,488,000 1,488,000 1,566,223 78,223 1,506,525 Expenditures: Economic Development: Destination 421,500 123,000 91,160 31,840 522,368 ' Front Range 168,500 184,000 184,645 (645) 291,117 Groups and meetings 328,000 328,000 340,218 (12,218) 345,470 Purchased services 623,000 936,000 987,087 (51,087) 682,654 Total Expenditures 1,541,000 1,571,000 1,603,110 (32,110) 1,841,609 (Deficiency) of Revenues Over Expenditures (53,000) (83,000) (36,887) 46,113 (335,084) ' Other Financing Sources: Transfers in - 150,000 Net Change in Fund Balances (53,000) (83,000) (36,887) 46,113 (185,084) ' Fund Balances -January 1 483,823 525,786 525,786 710,870 Fund Balances -December 31 430,823 442,786 488,899 46,113 525,786 t The accompanying notes are an integral part of these financial statements. E7 Town of Vail, Colorado Special Revenue Funds Vail Reinvestment Authority Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2004 Revenues: Other: Interest on investments Shared costs/project reimbursements Total Revenues Expenditures: Economic Development: Administration Professional fees Total Expenditures Excess of Revenues Over Expenditures Other Financing Sources: Transfers in Net Change in Fund Balances Fund Balances -January 1 Fund Balances -December 31 Original Variance and Final Positive Budget Actual (Negative) - 28 28 110,250. 93,288 (16,962) 110,250 93,316 (16,934) 5,750 4,372 1,378 104,500 87,692 16,808 110,250 92,064 18,186 - 1,252 1,252 25,000 - 25,000 25,000 1,252 (23,748) 25,000 1,252 (23,748) The accompanying notes are an integral part of these financial statements. E8 Town of Vail, Colorado Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2004 (With Comparative Actual Amounts for 2003) 2004 Revenues: Other: Interest on investments Total Revenues Expenditures: Debt Service: Principal Interest Fiscal agent fees Total Expenditures (Deficiency) of Revenues Over Expenditures Other Financing Sources: Transfers in Net Change in Fund Balances Fund Balances -January 1 Fund Balances -December 31 2003 Original Variance and Final Positive Budget Actual (Negative) Actual - 9,621 9,621 6,148 - 9,621 9,621 6,148 1,605,000 1,605,000 - 1,140,000 689,099 689,098 1 735,948 2,500 1,400 1,100 1,550 2,296,599 2,295,498 1,101 1,877,498 (2,296,599) (2,285,877) 10,722 (1,871,350) 2,337,897 2,337,905 8 1,942,620 41,298 52,028 10,730 71,270 131,948 130,210 (1,738) 58,940 173,246 182,238 8,992 130,210 The accompanying notes are an integral part of these financial statements. F1 Town of Vail, Colorado Enterprise Fund Timber Ridge Affordable Housing Corporation Schedule of Revenues, Expenses and Change in Fund Net Assets Budget (GAAP Basis) and Actual For the Year Ended December 31, 2004 (With Comparative Actual Amounts for 2003) Operating Revenues: Rent Laundry room lease Other Total Operating Revenues Operating Expenses: Advertising Office expenses Management fee Telephone Wages -Administrative Wages -Maintenance and other Repairs and maintenance Electric Water and sewer Trash removal Snow removal Fire, life, safety, and security Property insurance Professional fees Bad debt expense Miscellaneous Depreciation Mold remediation Total Operating Expenses Operating Income (Loss) Non-operating Revenues (Expenses): Interest on investments Interest expense Financing fees Amortization of bond issue costs Total Non-operating Revenue (Expenses) Change in Net Assets 2004 Original Variance and Final Positive Budget Actual (Negative) 2003 Actual 2,131,725 1,118,405 (1,013,320) 796,986 29,570 15,434 (14,136) 5,740 8,150 16,170 8,020 969 2,169,445 1,150,009 (1,019,436) 803,695 18,850 13,050 5,800 3,439 21,913 13,036 8,877 8,252 108,472 58,675 49,797 44,658 7,800 12,486 (4,686) 4,859 98,820 75,187 23,633 44,385 157,224 111,550 45,674 58,525 88,300 26,452 61,848 21,479 22,500 90,493 (67,993) 15,730 85,000 67,171 17,829 37,430 13,200 11,383 1,817 8,968 19,300 6,911 12,389 2,416 2,280 1,843 437 11,566 59,268 62,606 (3,338) 27,186 7,700 6,278 1,422 - 10,000 7,737 2,263 - 16,900 4,434 12,466 12,730 666,666 525,446 141,220 240,829 - 252,655 (252,655) 372,470 '1,404,193 1;347,393 56,800 914,922 765,252 (197,384) (962,636) (111,227) 6,000 3,916 (2,084) 3,478 (345,210) (416,918) (71,708) (160,220) (1,001,088) (273,144) 727,944 (121,986) (40,000) (42,342) (2,342) (19,726) (1,380,298) (728,488) 651,810 (298,454) (615,046) (925,872) (310,826) (409,681) The accompanying notes are an integral part of these financial statements. F2 Town of Vail, Colorado Enterprise Fund ' Dispatch Services Fund Schedule of Revenues, Expenses, Transfers and C hange in Fund Net Assets Budget (Non -GAAP Basis) and Actual With Reconciliation to GAAP Basis For the Year Ended December 3 1, 2004 ' (With Comparative Actual Amounts for 2003) ' 2004 2003 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Charges and Fees: Dispatch service fee 463,815 463,815 463,813 (2) 450,531 ' Dispatching contracts 711,875 711,875 719,068 7,193 674,253 Total Operating Revenues 1,175,690 1,175,690 1,182,881 7,191 1,124,784 Operating Expenses: ' Public Safety: Salaries and benefits 1,276,096 1,276,096 1,290,384 (14,288) 1,289,062 Operating expenses 220,785 234,535 217,093 17,442 112,619 Capital outlay 13,750 119,072 120,299 (1,227) 160,445 ' Total Operating Expenses 1,510,631 1,629,703 1,627,776 1,927 1,562,126 Operating (Loss) -Budget Basis (334,941} (454,013) (444,895) 9,118 (437,342) ' Non-operating Revenues: Capital grant - E-911 Board -Phone system 279,517 Operating grant- E-911 Board 391,648 391,648 369,000 (22,648) 362,970 Interest on investments - - 6,317 6,317 5,335 ' Total Non-operating Revenues 391,648 391,648 375,317 (16,331) 647,822 Income Before Transfers 56,707 (62,365) (69,578) (7,213) 210,480 Transfers Out - (110,000) (110,000) - (90,000) Change in Net Assets -Budget Basis 56,707 (172,365) (179,578) (7,213) 120,480 ' Reconciliation to GAAP Basis: Adjustments: Contribution from Capital Projects Fund 662,804 757,642 Depreciation (156,550) (98,647) Net book value of disposed assets (9,760) (8,717) Capitalized assets 120,299 160,445 Total Adjustments 616,793 810,723 Change in Net Assets - GAAP Basis 437,215 931,203 ' The accompanying notes are an integral part of these financial statements. F3 Town of Vail, Colorado internal Service Funds Heavy Equipment Fund Schedule of Revenues, Expenses and Change in Fund Net Assets Budget (Non-GAAP Basis) and Actual With Reconciliation to GAAP Basis For the Year Ended December 31, 2004 (With Comparative Actual Amounts for 2003) 2004 2003 Final Budget Variance Original Firtal Positive Budget Budget Actual (Negative) Actual Operating Revenues: Charges and Fees: Operating charges 1,923,795 1,501,980 1,442,977 (59,003) 1,341,469 Replacement charges - 454,325 440,173 (14,152) 397,712 Total -Charges and Fees 1,923,795 1,956,305 1,883,150 (73,155) 1,739,181 Other: Insurance reimbursements 37,900 37,900 18,282 (19,618) 22,700 Other - - 100,475 100,475 1,125 Total -Other 37,900 37,900 118,757 80,857 23,825 Total Operating Revenues 1,961,695 1,994,205 2,001,907 7,702 1,763,006 Operating Expenses: Public Works: Vehicle maintenance and fuel 1,517,813 1,551,313 1,536,133 15,180 1,489,931 Capital outlay 567,200 533,700 341,192 192,508 195,109 Total Operating Expenses 2,085,013 2,085,013 1,877,325 207,688 1,685,040 Operating Income (Loss) -Budget Basis (123,318) (90,808) 124,582 215,390 77,966 Non-operating Revenues: Interest on investments 3,400 3,400 7,452 4,052 5,649 Proceeds from sale of assets 47,400 47,400 41,925 (5,475) 119,150 Total Non-operating Revenues: 50,800 50,800 49,377 (1,423) 124,799 Change in Net Assets -Budget Basis (72,518) (40,008) 173,959 213,967 202,765 Reconciliation to GAAP Basis: Adjustments: Contribution from Capital Projects Fund 258,515 552,565 Contribution to Fire Department (33,328) - Net book value of disposed assets (68,734) (19,438) Depreciation (610,773) ~ (633,613) Capitalized assets 341,192 195,109 Total Adjustments (113,128) 94,623 Change in Net Assets - GAAP Basis 60,831 297,388 The accompanying notes are an integral part of these financial statements. F4 Town of Vail, Colorado ' Internal Service Funds Health Insurance Fund Schedule of Revenues, Expenses and Change in Fund Net Assets Budget (GAAP Basis) and Actual ' For the Year Ended December 31, 2004 (With Comparative Actual Amounts for 2003) 2004 Operating Revenues: Charges and Fees: Insurance premiums Insurance premiums -Employee contributions Insurer proceeds Total Operating Revenues Operating Expenses: General Government: Health claims Premiums Administrative fees Short-term disability payments Total Operating Expenses Operating Income (Loss) Non-operating Revenues: Interest on investments Change in Net Assets - GAAP Basis Original Final Budget Budget Final Budget Variance Positive Actual (Negative) 2003 Actual 1,596,000 1,596,000 1,661,804 65,804 1,534,519 207,000 207,000 256,479 49,479 208,979 - - 68,958 68,958 37,506 1,803,000 1,803,000 1,987,241 184,241 1,781,004 1,450,000 1,550,000 1,551,632 (1,632) 1,418,022 309,OD0 243,000 242,510 490 268,737 .27,000 27,000 22,857 4,143 29,968 25,000 91,000 91,140 (140) 15,755 1,811,000 1,911,000 1,908,139 2,861 1,732,482 (8,000) (108,000) 79,102 187,102 48,522 8,000 8,000 12,844 4,844 9,775 - (100,000) 91,946 191,946 58,297 The accompanying notes are an integral part of these financial statements. F5 Town of Vail, Colorado Internal Service Funds Combining Statement of Net Assets December 31, 2004 Assets: Current Assets: Equity in pooled cash and investments Accounts receivable, net of allowance for uncollectibles Inventory Prepaid expenses Total Current Assets Non-current Assets: Property, plant, and equipment, net of accumulated depreciation Total Assets Liabilities: Current Liabilities: Accounts payable Accrued salaries and wages Current portion of compensated absences Total Current Liabilities Nori-current Liabilities: Compensated absences, net of current portion Total Liabilities Net Assets: Invested in capital assets, net of related debt Unrestricted Total Net Assets Heavy Health Equipment Insurance Fund Fund Total 566,546 1,117,803 1,684,349 102,270 414 102,684 224,245 - 224,245 - 21,968 21,968 893,061 1,140,185 2,033,246 3,220,123 - 3,220,123 4,113,184 1,140,185 5,253,369 59,581 230,353 289,934 10,808 2,514 13,322 18,755 - 18,755 89,144 232,867 322,011 28,133 - 28,133 117,277 232,867 350,144 3,220,123 - 3,220,123 775, 784 907, 318 1, 683,102 3,995,907 907,318 4,903,225 The accompanying notes are an integral part of these financial statements. F6 Town of Vail, Colorado Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Assets For the Year Ended December 31, 2004 Operating Revenues: Charges for services -Internal Charges for services -External Insurance reimbursements Other Total Operating Revenues Operating Expenses: Operations Health claims and premiums Depreciation Total Operating Expenses Operating Income (Loss) Heavy Equipment Fund 1,883,150 1,661,804 3,544,954 - 256,479 256,479 18,282 68,958 87,240 100,475 - 100,475 2,001,907 1,987,241 3,989,148 1,536,133 - 1,536,133 - 1,908,139 1,908,139 610,773 - 610,773 2,146,906 1,908,139 4,055,045 (144,999) 79,102 (65,897) Health Insurance Fund Total Non-operating Revenues (Expenses): ' Gain (loss) on disposal of assets (26,809) - (26,809) Investment income 7,452 12,844 20,296 Total Non-operating Revenues (Expenses) (19,357) 12,844 (6,513) ' Income (Loss) Before Transfers and Capital Contributions (164,356) 91,946 (72,410) ' Capital Contributions, Net 225,187 - 225,187 ' Change in Net Assets 60,831 91,946 152,777 Net Assets -January 1 3,935,076 815,372 4,750,448 Net Assets -December 31 3,995,907 907,318 4,903,225 ' The accompanying notes are an integral part of these financial statements. F7 Town of Vail, Colorado Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2004 Cash Flows From Operating Activities: Cash received from other funds Other cash receipts Cash paid for goods and services Cash paid to employees Net Cash Provided by Operating Activities Heary Equipment Fund 1,883,426 19,505 (747,412) (824,799) 330,720 Health Insurance Fund 1,661,804 325,023 (1,846,027) (90,351) 50,449 Total Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets Acquisition and construction of capital assets for other funds Acquisition and construction of capital assets Net Cash (Used) by Capital and Related Financing Activities Cash Flows From Investing Activities: Interest on investments Net Cash Provided by Investing Activities Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents -Beginning Cash and Cash Equivalents -Ending Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities: Operating income (loss) Adjustments: Depreciation (Increase) decrease in accounts receivable (Increase) decrease in inventory (Increase) decrease in prepaid expenses Increase (decrease) in accounts payable Increase (decrease) in accrued wages and benefits Total Adjustments Net Cash Provided by Operating Activities 41,925 (33,328) (341,192) (332,595) 7,452 7,452 5,577 560,969 566,546 3,545,230 344,528 (2,593,439) (915,150) 381,169 - 41,925 - (33,328) - (341,192) - (332,595) 12,844 20,296 12,844 20,296 63,293 68,870 1,054,510 1,615,479 1,117,803 1,684,349 (144,999) 79,102 610, 773 (98,976) 2,366 (11,195) (27,249) 475,719 330,720 (414) (13,835) (15,193) 789 (28,653) 50,449 (65,897) 610, 773 (99,390) 2,366 (13,835) (26,388) (26,460) 447,066 381,169 Schedule of Non-cash Investing, Capital and Financing Activities: Assets donated by Capital Projects Fund 258,515 - 258,515 The accompanying notes are an integral part of these financial statements. F8 Town of Vail, Colorado Special Revenue Funds ' Capita! Projects Fund Schedule of Project Expenditures -Budget (GAAP Basis) and Actual For the Year Ended December 3 1, 2004 ' (With Comparative Actual Amounts for 2003) ' zooa 2003 Variance Project Final Positive Number Project Name Budget Actual (Negative) Actual ' C81003 Town Shop improvements - - - 552,565 C61005 Library building remodel - - - 87,013 C61010 Fire infrastructure improvements 77,367 56,730 20,637 1,970 CBI021 Donovan Park Pavilion 51,465 46,978 4,487 2,133,166 ' CBI022 Dobson Ice Arena 176,250 163,880 12,370 16,636 CBI023 Gymnastics facility 1,677,290 1,451,816 225,474 55,415 CBI025 Town Manager's residence 56,800 56,786 14 - CBI026 Town Manager's office remodel 7,343 8,309 (966) 5,022 ' CEP003 Repower buses 15,484 CEP004 Replace buses 2,377,964 2,295,622 82,342 CEP005 Software/hardware purchases 203,560 205,872 (2,312) 102,671 CEP006 Radio replacement - - - 151,898 ' CEP011 Document imaging 20,440 20,437 3 116,394 CEP016 GPS system for buses 60,000 30,720 29,280 CEP017 Radio tower equipment - - - 10,579 CEP019 CAD/RMS dispatch project 676,600 662,804 13,796 323,842 ' CEP020 East Vail repeater site 345,754 CEP021 Police vehicles purchase 279,200 274,272 4,928 CEP022 Video security for~ai! 11,500 10,628 872 - CEP024 Fire operations vehicles 107,370 108,555 (1,185) - CEP025 Fire operations breathing apparatus 25,000 24,772 228 - ' CEP026 Mobile hardware/laptop 68,485 65,808 2,677 CEP027 Console equipment - 911 upgrade - - - 69,500 CEP028 Council chambers sound system - - - 16,515 CHP001 Buy-down program - - - 2,500 ' CHP003 Mountain Bell housing 35,226 CHP004 Ruins project 16 CHP006 Timber Ridge - - - 52,029 CMP001 Loading and delivery study - - - 8,200 ' CMT003 Bus shelter replacement program 30,250 10,532 19,718 9,750 CMT004 Capital street maintenance 855,000 620,054 234,946 625,580 CMT005 Facility capital 571,286 482,542 88,744 427,374 CMT007 Parking structure maintenance 520,000 520,000 - 271,042 C0T002 Street light improvement program 50,000 62,804 (12,804) 45,480 ' COT003 Drainage improvements 75,000 75,000 15,545 COT004 Fiber-optic connection 15,000 21,650 (6,650) - COT006 Lionshead financing - - - 11,960 COT009 Lionshead improvements 104,616 90,658 13,958 52,503 COT010 Infrastructure improvements -Vail Today 6,390 COT011 I-70 noise mitigation 63,303 58,340 4,963 88,196 COT012 Memorial Park loan - - - 50,000 CSC010 Way-finding improvements 85,573 6,289 79,284 14,426 ' CSC011 West Meadow Drive 204,617 55,256 149,361 134,234 CSC012 Village Streetscape 4,271,425 3,146,998 1,124,427 ` CSR002 Vail Valley Drive - - - 312,567 CSR005 Columbine/Spruce Way - - - 468,383 HSG009 Vail Commons - - - 140,299 Total 12,722,704 10,634,112 2,088,592 6,776,124 ' The accompanying notes are an integral part of these financial statements. F9 Town of Vail, Colorado Special Revenue Funds Real Estate Transfer Tax Fund Schedule of Project Expenditures -Budget (GAAP Basis) and Actual For the Year Ended December 31, 2004 (With Comparative Actual Amounts for 2003) Project Number Project Name 2004 Variance Final Positive Budget Actual (Negative) 2003 Actual RCI01 Gore Creek Promenade bridge - - - 227 RFP005 Alpine Gardens contribution 75,000 75,000 - 50,000 RMT001 Recreation path maintenance 135,200 62,178 73,022 254,107 RMT002 Tree maintenance 33,000 28,410 4,590 14,584 RMT005 Street furniture - Streetscape 25,000 12,969 12,031 18,620 RMT006 Black Gore Creek sand mitigation 150,000 150,000 - 105,750 RMT007 Bear-proof trash containers 9,500 - 9,500 17,100 RPA001 Property acquisition - - - 676 RPD005 Donovan Park -Lower Bench 12,000 3,266 8,734 136,531 RPD006 Whitewater Park 41,683 41,683 - 1,180 RPD008 Red Sandstone Soccer Field - - - 2,300 RPD010 Vail Memorial Park - 2,250 (2,250) 4,325 RP1003 Irrigation control 1,000 1,042 (42) 20,622 RP1007 Pirate Ship Park 332,370 298,782 33,588 235 RPT007 Trailhead signs/development 20,000 3,443 16,557 10,898 RPT008 North Frontage Road 650,000 592,744 57,256 - RPT013 Vail Valley Bike Path - - - 335,000 RRT001 Public Art 64,213 62,555 1,658 74,166 RSS001 Village streetscape 2,450,000 2,450,000 - 410,851 Total 3,998,966 3,784,322 214,644 1,457,172 The accompanying notes are an integral part of these financial statements. F10 _ The ublic re ort burden for this informafion collection is estimated to aveta a 380 hours annuall Financial Planning 02/01 F,.n„ tt ~cnscn_u city or county: VAIL LOCAL HIGHWAY FINANCE REPORT YEAR ENDING December 2004 This Information From The Records Of (example -City of _ or County of Town of Vail Prepared By: Gina Bentz Phone: 970/479-2116 I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE oc ITEM Motor-Fuel Taxes 1. Total recei is available 2. Minus amount used for collection ex eases 3. Minus amount used for non-hi wa u oses 4. Minus amount used for mass transit emam er use or 1 wa oses II. RECEIPTS FOR ROAD AND STREET PURPOSES oc ece><pts rom - ece~pts rom Motor-Vehicle State Highway- Federal Highway Taxes User Taxes Administration II. DISBURSEMENTS FOR ROAD AND STREET PURPOSES T A. Recei is from local sources: AMOUNT A. Local hi hvva disbursements: AMOUNT 1. Local hi wa -user taxes 1. Ca ital outla from a e 2 5 900 347 a. Motor Fuel from Item I.A.S. 2. Maintenance: 1 541,282 b. Motor Vehicle from Item LB.S. 3. Road and street services: c. Total a.+ b.. a. Traffic control o erations 171 936 2. General fund a ro riations 7 219 950 b. Snow and ice removal 563 739 3. Other local im osts from a e 2 583 719 c. Other 4. Miscellaneous local recei is from a e 2 0 d. Total a, throw c. 735 675 5. Transfers from toll facilities 4. General administration & miscellaneou 152 180 6. Proceeds of sale of bonds and notes: 5. Hi wa law enforcement and safet 841 477 a. Bonds - Ori ~nal Issues 6. Total 1 throw 5 9 170,961 b. Bonds -Refundin Issues B. Debt service on local obli ations: c. Notes 1. Bonds: d. Total a. + b. + c. 0 a. Interest 7. Total 1 throw 6 7 803 669 b. Redem tion B. Private Contributions 1 120,204 c. Total a. + b. 0 C. Receipts from State government 2. Notes: from a e 2 247,088 a. Interest D. Receipts from Federal Government b. Redem tion from a e 2 0 c. Total a. + b. 0 of rece- is + + + ota .c + .c C. Pa meats to State for hi hwa s D. Pa meats to toll facilities of is ursements + + + IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at ar O enin Debt Amount Issued Redem tions Closin Debt A. Bonds Total 0 1. Bonds Refundin Portion otes of V. LOCAL ROAD AND STREET FUND BALANCE A. Be 'nnin Balance B. Total Recei is .Total Disbursement D. Endin Balance E: Reconciliation 9 170 961 9 170 961 0 Notes and Comments: FORM FHWA-536 (Rev.01-OS) ri\li V 1V VJ L'iL111V1VJ VDJVLP~1 L' F11 Next rage) . STATE: Colorado LOCAL HIGHWAY FINANCE REPORT YEAR ENDING (mm/yy}: December 2004 IL RECEIPTS FOR ROAD AND STREET PURPOSES -DETAIL ITEM AMOUNT ITEM A.3. Other local im osts: A.4. Miscellaneous local recei ts: AMOUNT a. Pro ert Taxes and Assessments a. Interest on investments b. Other local im osts: b. Traffic Fines & Penalties 1. Sales Taxes c. Parkin Gara e Fees 2. Infrastructure & Im act Fees d. Parlan Meter Fees 3. Liens ~ e. Sale of Su lus Pro 4. Licenses f. Char es for Services 5. Other Ownershi /Road & Brid e 583,719 .Other Misc. Recei is 6. Total 1. throu 5. 583,719 h. Other c. Total a. + b. 583,719 i. Total a. throu h h. 0 (C forward to age 1) (Carry forward to age 1) ITEM AMOUNT ITEM C. Recei is from State Government D. Recei is from Federal Government AMOUNT 1. Hi wa -user taxes 182,908 1. FHWA from Item I.D.S. 2. State eneral funds 2. Other Federal a encies: 3. Other State funds: a. Forest Service a. State bond roceeds b. FEMA b. Pro"ect Match o, HUD c. Motor Vehicle 23 858 d. Federal Transit Admin d. Other S eci DOT Grant 40,322 e. U.S. Co s of En 'neers e. Other S ecif f. Other Federal f. Total a. throu h e. 64,180 .Total a. throu h f. 0 4. Total 1. + 2. + 3. 247,088 3. Total 1. + 2. III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES -DETAIL (Carry forward to a e 1) .1. Ca ital outla a. Ri t-Of-Wa Costs ON NATIONAL HIGHWAY SYSTEM a OFF NATIONAL HIGHWAY SYSTEM TOTAL c 0 b. En 'neerin Costs c. Construction: 1 . New Facilities 684,721 684,721 0 2 . Ca aci Im rovements 0 3 . S stem Preservation 5,215,626 5 215,626 4 . S stem Enhancement & O eration 0 5 . Total Construction 1 + 2 + 3 + 4 0 5,215 626 5 215,626 d. Total Ca ital Outla Lines l.a. + l.b. + I .c.5 0 5,900,347 5,900 347 (C forward to a e 1 ores an omments: FUKM N'HWA-536 (Kev.12-96) YK~VIUUS rlll"11UN5 UliSUL~'1"~ F12 REPORTS AND SCHEDULES FOR REPORTING REQUIREMENTS OF OMB CIRCULAR A-133 MCMAHAN AND ASSOCIATES, L.L.C. Certified Public Accountants and Consultants SUITE 222~AVON CENTER 100 WEST BEAVER CREEK BLVD. P.O. Box 5850 AvoN, CO 8 1620 WEB SITE: WWW.MCMAHANCPA.COM TELEPHONE: (970) 845-8800 FACSIMILE: (970) 845-085 I E-MAIL: MCMAHAN@MCMAHANCPA.COM REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ' Mayor and Members of Town Council Vail, Colorado ' We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the remaining fund information of the Town of Vail (the "Town") as of and for the year ended December 31, 2004, which collectively comprise the Town's basic financial statements and have ' issued our report thereon dated March 25, 2005. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Town's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a ' condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a ' timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. Compliance As part of obtaining reasonable assurance about whether the Town's financial statements are free of ' material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, non-compliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of non-compliance that are required to be reported under Government Auditing Standards. ' This report is intended solely for the information and use of management, federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. ' c s~ ~ LLB . ~~~ ~ ~ , ' McMahan and Associates, L.L.C. March 25, 2005 ' Performing services for local governments throughout Colorado D. Jeny McMahan, C.P.A. Daniel R. Cudahy, C.P.A. Paul J. Backes, C.P.A. Michael N. Jenkins, C.A., C.P.A. ' Members: l~merican Institute o{ Certi~ied Public l~ccountants/Colorado Society o~ Certified Public Accountants National and Colorado Government Finance O~{icers Association/Colorado Municipal League G1 ' MCMAHAN AND ASSOCIATES, L,L.C. Certified Public Accountants and Consultants ' WEB SITE: WWW.MCMAHANCPA.COM SUITE 222/AVON CENTER TELEPHONE: (970) $45'8800 I OO WEST BEAVER CREEK BLVD. FACSIMILE: (J7O) 84S-O8S I P.O. BOX 5850 AVON, CO 8 1620 E-MAIL: MCMAHAN@MCMAHANCPA.COM ' REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 ' Ma or and Members of Town Co n it y uc Vail, Colorado Compliance We have audited the compliance of the Town of Vail (the "Town") with the types of compliance requirements described in the U. S. Office of Management and Budget (OMB) CircularA-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 2004. The Town's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the Town's management. Our responsibility is to express an opinion on the Town's compliance based on our audit. We conducted our audit of compliance in accordance with U.S. generally accepted auditing standards; ' the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and ' perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Town's compliance with those requirements and performing such other procedures as we considered necessary in the ' circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the Town's compliance with those requirements. ' In our opinion, the Town complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 2004. Internal Control Over Compliance ' The management of the Town is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal ' programs. In planning and performing our audit, we considered the Town's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. ' Performing services for local governments throughout Colorado D. Jerry McMahan, C.P.A. Daniel R. Cudahy, C.P.A. Paul J. Backes, C.P.A. Michael N. Jenkins, C.A., C.P.A. ' Members: American Institute o~ Certi~ied Public Accountants/Colorado Society o~ Certi~ied Public Accountants National and Colorado Government Finance ~{~icers Association/Colorado Municipal League G2 Mayor and Members of Council Vail, Colorado Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that non-compliance with applicable requirements of laws, regulations, contracts and grants, caused by error or fraud that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of management, federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. McMahan and Associates, L.L.C. March 25, 2005 G3 Town of Vail, Colorado SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 2004 Part I: Summary of Auditor's Results Financial Statements Type of auditor's report issued Unqualified Internal control over financial reporting: Material weakness identified None noted Reportable condition identified that is not considered to be material weaknesses None reported Noncompliance material to financial statements noted None noted Federal Awards Internal control over major programs: Material weakness identified None noted Reportable conditions identified that is not considered to be material weaknesses None reported Type of auditor's report issued on compliance for major programs Unqualified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133 None noted Major program -Department of Transportation Federal Discretionary Capital Funds CFDA# 20 Dollar threshold used to identify Type A from Type B programs $300,000 Identified as low-risk auditee No Part II: Findings Related to Financial Statem ents Findings related to financial statements as required by Government Auditing Standards None noted Auditor-assigned reference number Not applicable Part III: Findings Related to Federal Awards Internal control findings None noted Compliance findings None noted Questioned costs None noted Auditor-assigned reference number . Not applicable G4 Town of Vail, Colorado SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS ' Year Ended December 31, 2004 Note: There were no findings for the fiscal year ended December 31, 2003. ' G5 ' Town of Vail, Colorado ' Schedule of Expenditures of Federal Awards . For the Year Ended December 31, 2004 Federal CFDA Major Program Title Number Program Expenditures Department of Transportation: Federal Discretionary Capital Funds 20 Yes 1,285,498 Total Department of Transportation 1,285,498 Department of Justice: ' Byrne Formula Grant 16.579 No 75,600 COPS MORE Grant 16.710 No 51,000 Bulletproof vest program 16.607 No 1,286 ' Passed through Eagle County, Colorado: Byrne Formula Grant 16.579 No 50,500 Total Department of Justice 178,386 Total Expenditures 1,463,884 Notes to the Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2004: ' Note 1. Basis of Presentation: The Schedule of Expenditures of Federal Awards includes the federal grant activity of the Town of Vail and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Loca! Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule or used in this schedule may differ from amounts presented in or used in the preparation of the general purpose financial statements. Note 2. Sub-recipients: No federal awards were provided to sub-recipients for the year ended December 31, 2004. The accompanying notes are an integral part of these financial statements. G6 UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Tables I, III, and IV December 31, 2004 TABLE I Debt Service Coverage 2000 2001 2002 2003 Pledged Revenues 15,232,587 15,411,044 15,106,801 14,578,983 Maximum Annual Debt Service 2,324,453 2,324,453 2,324,457 2,324,457 Coverage Factor 6.55x 6.63x 6.50x 6.28x 2004 15,466,981 2,324,457 6.65x TABLE 111 History of Town 4% Sales Tax Receipts 2000 2001 2002 2003 2004 Sales Tax Collections (see Note below) 15,232,588 15,411,044 15,106,801 14,578,983 15,466,979 Per Cent Increase n/a 1.17% -1.97% -3.49% 6.09% Note: The reported Sales Tax Collections vary from the sales tax revenues reported in the Town's audited financial statements because one-time payments of sales tax on, for example, the sale of business assets or the settlement of a sales tax claim, are not included above. TABLE IV Monthly Comparison of Collections of Sales Tax 12-month Period Ended 12-month Period Ended December 31, 2003 December 31, 2004 Percent Change Current Year Current Year Current `Year M~t-h Month To Date Month To Date Month To Date January 1,997,091 1,997,091 2,225,841 2,225,841 11.5% 11 5% February 2,111,163 4,108,254 2,362,825 4,588,666 11.9% . 11 7% March 2,372,942 6,481,196 2,344,178 6,932,844 -1.2% . 7 0% April 871,468 7,352,664 992,157 7,925,001 13.8% . 7 8% M2Y 428,919 7,781,583 411,595 8,336,596 -4.0% . 7 1% June 742,755 8,524,338 732,113 9,068,709 -1.4% . 6 4% July 1,075,532 9,599,870 1,128,514 10,197,223 4.9% . 6 2% August 1,029,446 10,629,316 994,445 11,191,668 -3.4% . 5 3% September 679,208 11,308,524 757,033 11,948,701 11.5% . 7% 5 October 508,092 11,816,616 532,537 12,481,238 4.8% . 5 6% November 591,269 12,407,885 623,646 13,104,884 5.5% . 5 6% December 2,171,098 14,578,983 2,362,095 15,466,979 8.8% . 6.1% H1 Town of Vail, Colorado issuer's Annual Report Update of Official Statement Tables to be Updated Tables V and VI December 31, 2004 TABLE V Sales Tax Collections by Principal Sales Tax Generators 2000 2001 2002 Annual Sales Tax Paid by Ten Principal Generators 4,866,152 4,958,904 4,944,937 Total Annual Sales Tax Collected by Town 15,232,588 15,411,044 15,106,801 of Total Annual Sales Tax Collections Generated by Ten Principal Generators 31.9% 32.2% 32.7% TABLE VI Revenues: Sales tax Federal grants Intergovernmental grants Interest on investments Leases -Vail Commons Reimbursements -shared costs Transfer in Other Total Revenues Expenditures: Equipment purchases Maintenance Buildings and improvements Streetscape projects . Housing programs Lionshead redevelopment Other improvements Transfer to Debt Service Fund Total Expenditures Revenues Over (Under) Expenditures Beginning Fund Balance Ending Fund Balance 2003 4,828,717 14,578,983 33.1 4,996,562 15,466,979 32.3% Capital Projects Fund: 2004 Actual /Projected 2005 - 2008 2004 2005 2006 6,700,095 5,949,223 6,008,715 1,412,098 692,000 811,800 406,832 - - 64,475 45,000 45,000 189,480 150, 000 150, 000 1,308,164 - - 3,014,005 - - 13,513 - - 13,108,662 6,836,223 7,015,515 6,068,803 4,536,000 45,000 150,000 2008 6,129,491 1,344,000 45,000 150,000 3,699,490 1,351,900 691,000 1,090,000 4,279,000 1,633,128 1,620,000 1,842,000 1,862,000 1,760,000 1,784,499 15,000 15,000 15,000 ' 15,000 3,208,543 1,969,000 .1,190,000 1,290,000 940,000 - 100,000 100,000 100,000 100,000 90,658 - - 3,750,000 - 217,794 375,000 375,000 375,000 375,000 2,337,905 2,422,154 2,236,200 3,233,497 2,321,825 12,972,017 7,853,054 6,449,200 11,715,497 9,790,825 136,645 (1,016,831) 566,315 (915,694) (2,122,334) 8,054,258 1,100,440 83,609 649,924 (265,770) , 8,190,903 83,609 649,924 (265,770) (2,388,104) H2 ' Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Table XIX December 31, 2004 TABLE XIX History of General Fund Revenues, Expenditures and Changes in Fund Balance 2000 2001 2002 2003 2004 Revenues: General sales taxes Property and ownership taxes Ski area lift ticket admissions tax Franchise fees Penalties and interest on delinquent taxes Licenses and permits Intergovetnmental revenues Charges for services Fines and forfeits Interest Rents Other Total Revenues Expenditures: General government Public safety Public works and transportation Economic development and community assistance Municipal library Total Expenditures Excess of Revenues Over Expenditures Other Financing Sources (Uses): Sale of asset Operating transfers out Total Other Financing Sources (Uses) Excess of Revenues Over Expenditures and Other Financing Sources (Uses) Fund Balance: Beginning Residual equity transfers Ending 8,760,101 8,968,544 10,337,852 8,840,731 8,881,480 2,243,281 2,606,648 2,799,910 2,822,742 2,621,493 1,961,723 2,145,587 2,344,921 2,273,055 2,496,162 576,904 628,427 580,372 592,876 676,538 29,350 56,610 37,315 27,635 23,111 695,711 863,943 932,773 1,095,698 1,685,277 1,376,493 1,388,625 1,349,364 1,518,855 1,435,982 2,217,293 2,729,847 3,162,454 3,561,050 4,092,973 279,367 273,723 226,543 201,458 210,497 391,781 273,496 165,088 113,270 172,806 427,329 552,513 507,211 616,411 803,939 161,024 438,857 280,277 234,879 359,829 19,120,357 20,926,820 22,724,080 21,898,660 23,460,087 4,342,608 4,348,205 4,586,115 4,866,266 5,065,363 4,933,470 5,079,931 5,415,008 5,466,728 5,885,632 7,156,067 7,529,418 7,756,877 7,935,640 8,252,331 900,001 1,357,543 1,518,403 1,261,858 1,175,574 716,577 729,646 953,019 777,318 657,952 18,048,723 19,044,743 20,229,422 20,307,810 21,036,852 1,071,634 1,882,077 2,494,658 1,590,850 2,423,235 1 1 1 1 - - - - 1,850 (317,000) - - (1,773,800) _ (317,000) - - (1,771,950) 1,071,634 1,565,077 2,494,658 1,590,850 651,285 3,652,554 4,724,309 6,289,386 8,784,044 10,376,744 121 - - - - 4,724,309 6,289,386 8,784,044 10,374,894 11,028,029 H3 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Tables XX and XXI December 31, 2004 TABLE XX General Fund 2004 Budget Summary and Actual Comparison / 2005 Budget 2004 Amended 2004 Budget Actual Revenues: General sales taxes 8,881,480 8,881,480 Property and ownership taxes 2,675,945 2,644,604 Resort fees 2,420,500 2,496,162 Franchise fees 639,700 676,538 Licenses and permits 1,235,581 1,685,277 Intergovernmental revenues 1,468,500 1,435,982 Charges for services 3,696,152 4,092,973 Fines and forfeits 201,950 210,497 Interest 109,000 172,806 Rents and other 1,005,101 1,163,768 Total 22,333,909 23,460,087 Expenditures: Town officials 1,049,781 Administrative 2,603,658 Community development 1,596,396 Public safety -Police 4,280,259 Public safety -Fire 1,730,156 Public works 2,586,871 Public transportation 2,812,981 Parking 620,107 Facility maintenance 2,513,448 Public library 702,941 Contributions and special events 1,212,007 Total 21, 708,605 Revenue Over Expenditures 625,304 Other Financing Sources (Uses): Transfer in 27,435 Transfer (out) (1,773,800) Total Other Financing (Uses) (1,746,365) Excess of Revenues Over (Under) Expenditures and Other Financing (Uses) (1,121,061) Fund Balance -January 1 10,376,744 Fund Balance -December 31 9,255,683 TABLE XXI Outstanding Revenue Obligations ! slue Tax-Exempt Sales Tax Revenue Refunding Bonds, Series 1998A Taxable Sales Tax Revenue Refunding Bonds, Series 19986 General Obligation Refunding Bonds, Series 2002A Sales Tax Revenue Refunding Bonds, Series 20028. Housing Facilities Revenue Bonds, Series 2003A Housing Facilities Revenue Bonds Subordinate, Series 20038 Total 937,265 2,482,363 1,645,735 4,155,086 1,730,546 2,390;515 2,803,253 600,548 2,458,015 657,952 1,175,574 21,036,852 2,423,235 2005 Budget 8,772,600 2,661,920 2,438,000 659,500 2,620,450 1,324,597 3,643,337 202,900 120,000 1, 032,815 23,476,119 1,222,434 2,799,535 1,705,551 4,360,334 1,831,053 2,962,216 2,956,599 700,819 2,691,541 732,788 811,876 22, 774, 746 701,373 27,435 - (1,773,800) - (1,746,365) - 676,870 701,373 10,376,744 9,228,248 11,053,614 9,929,621 Outstanding Principal 8,760,000 735,000 770,000 5,260,000 19,025,000 1;455,000 36,005;000 H4 MCMAHAN AND ASSOCIATES, L.L.C. Certified Public Accountants and Consultants WEB SITE: WWW.MCMAHANCPA.COM SUITE 222/AVON CENTER TELEPHONE: (J7O) 84S'8800 100 WEST BEAVER CREEK BLVD. FACSIMILE: (97O) 84S-O8S I P.O. BOX 5850 AVON, CO 8 1620 E-MAIL: MCMAHAN ~Q MCMAHANCPA.COM Town of Vail, Colorado 75 South Frontage Road Vail, Colorado 81657 Attention: Stan Zemler, Town Manager Dear Stan: In planning and performing our audit of the general purpose financial statements of the Town of Vail, Colorado (the "Town") for the year ended December 31, 2004, we considered its internal control in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal controls. In this process, we noted certain matters which we would like to bring to your attention for further consideration. The following is a brief overview of these matters, together with our recommendations and comments on each item. Housing Assistance Program The Town offers a housing assistance program to employees in order to secure a stable work force. If repayment terms are associated with these arrangements, the Human Resources Department is responsible for setting up proper repayment procedures and securing the necessary paperwork to support repayment. This information is sent to the Finance Department so that repayment may be facilitated; typically via recurring payroll deductions. During the year-end review of the housing assistance program, an instance was observed in which a mortgage assistance loan issued to a Town employee in April 2004 had no repayments during the year. Finance Department staff requested repayment documentation on this loan from the Human Resources Department during our fieldwork. Without regular reconciliations between staff in the Finance and Human Resources departments, there is a risk that such an omission could occur again. Management's Response: The Finance Department identified this issue while performing the year-end reconciliation of this account. More frequent reconciliations were not performed previously because of the small number of transactions and relative size of the account compared with those reconciled on a more frequent basis. The Human Resources Department has provided the necessary documents, including a revised amortization schedule, and payroll deductions are now in place to repay the loan by the end of its term as originally stated. At the time a loan is issued, the Human Resources Department sends 1) a copy of the promissory note to Accounts Payable to issue a check and 2) a copy of both the promissory note and the repayment schedule to Payroll to initiate deductions. As an additional control, the Finance Department has implemented a process whereby Accounts Payable notifies Payroll whenever an employee loan is processed. Performing services for local governments throughout Colorado D. Jerry McMahan, C.P.A. Daniel R. Cudahy, C.P.A. Paul J. Backes, C.P.A. Michael N. Jenkins, G.A., C.P.A. Members: American Institute of Certi~ied Public Accountants/Colorado Society o~ Certi~ied Public Accountants National and Colorado Government Finance O{{icers Association/Colorado Municipal League Town of Vaii, Colorado Aftention: Stan Zemler, Town Manager Page 2 of 3 Town of Vail Pension Contributions The Town makes contributions to employee pensions based on years of service. In the third quarter of 2004, Finance Department staff noted that not all employees had received the increased contribution for attaining more than one year of service. This was rectified with aone-time contribution, through payroll processing, for these employees. However, this one-time contribution continued to be remitted by the Town with each pay-period through the fourth quarter of 2004, totaling over $138,000 in overpayments to the pension plan for these individuals. This error was discovered by Finance Department staff during the last payroll of the year, and the third party administrator for the pension plan was contacted in order to recover the overpayments. It is our understanding that, subsequent to year-end, all amounts were properly credited back to the Town, and all individual accounts were reduced by the applicable over payments. We also noted that the Town has accumulated $582,981 in pension forfeitures from employees who terminated before becoming fully vested in the Town's pension plan. Plan documents allow the Retirement Board to apply forfeited amounts toward future contribution requirements of the Town if any forfeited balances remain after payment of the expenses of the plan. Management's Response: Personnel have changed within the Payroll department since this situation occurred. The current Payroll Technician has a "tickler' file for changes and reconciles net payrolls from period to period, taking into consideration reinstatement of any one-time changes. Reconciliations to the plan administrator's records are prepared quarterly, which is as frequently as reports are available from the administrator. The increase in total forfeitures this year was a result of the first step taken by the Retirement Board to clean up the record-keeping for former employees' accounts and to segregate Vail Recreation District ("VRD") employees' records from those of the Town. The next step, which is in process for 2005, is to determine how much of the forfeitures are attributable to former VRD employees and how much relates to former Town employees. This will facilitate moving a portion of both the forfeiture account and the fiduciary fund for the Vail Recreation District Employee Pension P{an to VRD's books. The Retirement Board will then evaluate the remaining forfeiture funds available and determine their use in accordance with the plan and in the best interest of the participants. Currently, forfeitures are used for legal, administrative, and investment advisory fees in accordance with the plan document. Vaii Reinvestment Authority The Vail Reinvestment Authority (the "VRA") is charged a management fee by the Town that is based on a percentage (currently 5%) of expenses undertaken for the Lionshead redevelopment projects. In order to outline the rights and responsibilities of each of these separate legal entities, a written agreement should be entered into by the Town and the VRA. Management's Response: The rights and responsibilities of the Town and the VRA are outlined in the "Cooperation Agreement between the Town of Vail, Colorado and Vail Reinvestment Authority for Administrative Services", which provides that "...the VRA shall reimburse the Town for the applicable percentage of each such employee's wages or salary and benefits." Since the VRA was just beginning operations in 2004, the Town and the VRA informally agreed (and budgeted} reimbursement to the Town equal to 5% of the VRA's operating costs. While this fee is likely not an unreasonable estimate of Town staff costs incurred for the VRA, the Town and the VRA will address this departure from the Cooperation Agreement by executing a memorandum of understanding in 2005 to formalize each party's acceptance of the arrangement utilized in 2004, and approving its application in 2005 and future years. ~. Tawn of Vail, Colorado Rttention: Stan Zemler, Town Manager Page 3 of 3 We. appreciate this opportunity to be of service to the Town of Vail. Should you wish to discuss these matters further, or require assistance in implementing our recommendations, please do not hesitate to contact us. Yours very truly, McMahan and Associates, L.L.C. March 25, 2005 ~~ CROSSROADS REDEVELOPMENT VAIL, COLORADO Sheet Index Rerslered Site %an sre~ G2ding Plan Cmesroatls'Puhllc anpraenents Plan LaMscapeP~ Lan6sapa Areas Padting Lwel S, Pudic ReaOOnmsaM Mailanaal Raan Parh'ng Lerel2, Plera, R6ereurenb, ReUil, Ice Rink, Family Enterlalanent C°mpka, Theamrs arA fivxtirg Play Parking Level 7, Promenade, Raahwara eik Real Lo~y`are,,~nnd°`~'~°`°~°°~ Att h t B Cmtl° LevN Z ac men CaMO Level? Cords Level4 Cords Lere15 Cmdo Levw' fi North Eleua6M East Elevation SouN ElaatiM WestEbvatim New NoM Elevation vs Okl NaMElevatim New Emt Ebva6°nve.Ok Eaal Ekvatixn BARNES COY New SaN Elevation va.Otl Sash Elevation ~ F~ ~`°`~°a°°~°^a^~ ~ ARCHITECTS 9ulltlnp Height Roof Plan (h'nbnc9wde) Archit tr Suildhp Height Roof PW (aaAgrede) Son Study Plan Silo Plan ~ Beaver Creek ka RkrYr Oreday AUGUST 2, 2005 Selmtlc Gawlr~ / ~~ I ~ /: 6J, Il 1= ;~:'', ~. 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N0. 37953 .roe No 39393.00 Ftll AND pl BEIIAfi Q A FNC~16 . \~~ ;~'~; ~ ' \ +i \, ` '_; ~~ ~~~ k~ ~1 r`°~ _- _=_ ~ ~...• -~ _ _ --_-, ~ ~ ~ •..•~•• [~EDfANS AND_bEATED_ DED BY { ~•••...... -- sioEw -- •. D -v ~ - - ~ '- ••••• --CROSSR --- ____~ ~_ ADS - _ -_.._ _ ~~~~ ~,~.•• •~•i••p•it~ ~ • ~.~~• _ ~~- - SDUTH=RONigGE RDAO~ •~•••• •• • •••ti ~ ~ -~ ~~ •~ ~ ~` *~ ~ '^ ~ ~ 1 ~ -- '---_ ~ ___ , ~ _ , ~ ~ .. ~ - _ ~ ~_ ~ ~y _ _ _ _ ~ ••s~ ~ ~ •.. ~ ~ _ •• -, ~' •~''• • ,, ~ '~~~, ~ ~~' -~ '11 ~ ^~"i'~ I ~ ~~ ~' . ~ ~ ~ , ~ _. ~n ='~ "~. ~ ~,~ r~~ ~~ ~~ ~ -5~~E-ETSCAPE fMPRC~VEMEN7S AND Hr=ATED ~ ~ ~ I ~ ~ I _ _ _ ''~~~ LKFUNDE ~'~' I ~ SIDBWA ~ D BY CROSSROADS 1~ ~. ~r ,~ - `~ _= ; ~ ~_ n ~ a ~ ~' ;~ ~ ~; ; ~-ti:J ti ~ , r :: - ~.. '1 - ~--- ~ __~ ~ ~ ~1 r ~~ PARH1NG Si ~~t ~ STREETSCA4~IMPROVEMENTSAND HEATED ~ / ~~ RucxtrR~ ~ ~ --J - SIDEN/AL~I FUNDED BY CROSSROADS ~ QCs ea ~~ 7 ~ 1 x ~i' : ~_ ..., 1 _i ,~ ~i' - I, i y ~ + ~ -~ ~ ~; - ,'~ ~,,I ~ ~,`~ ... , ', ~\ ~. ~~~ v~ i ~ ~ ~ ~~~~~~ ~ ~~~ 1 'mil ~' V~ 1 - V . ~ .. vs ~ - _ ~ ~~ I - r< <~ _ ~ ~'p ~ ~ ~ ~ -~ ~ ~ ~ TO BE CONSTRUCTED BY ,~ ~ ~ 0 ~ ~ . ! ,~ ""' ~o ~~~ i ~ ~ •~ ~ TOWN OF VAIL I ~ ~ - _. I ~ i q ~ i ~ :. ~ \ ~ .nEADOWDRIV~ I'- ` _ ~ 1 "`~ i `1 , $1--~ ~ EAST ~, ^ /' ~ ~ i~ `i _- ^~` -~~ --=--- _ ., ~_ _ . I ~~. _~ - ; ` ,,, __ - ~, ,~ - __ ~, ~ ±. - ~ ~ ~ ~,~~IMf~~OVEMENTS~ ~ ~, -~ C ~ ;' ,,~ ~ FDE~ BYONE swiss ` ~~ $ -~ '~ ~ ~ ~~ ~~WIrLO~W PLACf~~~ ~N,a~er i r ; ~~ ~ ~ '~~~5~,~ ~` -a~ _ I - - ' -- ~ ~ - :~ - ~ ,~ ~ `~ ~.. ~ -f~',~\~ . , CROSSROADS VAIL, COLORADO I~ - „~~~ 1~ ~~ ~'~ TO ~E~L`ONSTRUCTED BY I TOtNN OF VAIL AND OTHERS I ~ ~11,~~ ~ ~""~ 1 0 ~` ~ ~ ~, m ', '~, ~~, ~1 `1 ~ '•, CROSSROADS PUBLIC IMPROVEMENTS PLAN ~ , ~ ~ ~ „ ~~, ~: ~~-~~ BARNES COY 1, 1 " `- ~ ~...-~ ~~ ,~ ~ ~~~.,;~~ ~ ~~.., ARCHITECTS ~ ~ARn~r t: AUGUST 2, 2005 41 ~- LEGEND r ~ ' ~.4 ~ EXISTING DECIDUOUS TREES ,i ~~' /~ 1 I ~ EXISTING SPRUCE TREES / \.I DECIDUOUS TREES T 3 35'-40' SPRUCE TREES ~~ ~/ rfl;~; 20'-25' EVERGREEN TREES ORNAMENTAL TREES\SHR UBS SHRUB PLANTINGS PERENNIALS/ GROUND COVER PLANTING SCHEDULE SCIENTIFlC NAME ~,M COMMON NAME Ott SIZE REMARKS DECIDUOUS TREES PT Populus tremuloidas DUARING ASPEN 167 2.5"-3.D" B&B Staked SPRUCE TREES PA Picee abies COLORADO SPRUCE 26 20'-25 B&B Staked p1 Piceo ables COLORADO SPRUCE 10 35'-40' B&B Staked PB Pinus arislato BRISTLECONE PINE 6 20'-25' B&B Staked ORNAMENTAL TREES SHRUBS AG Acer ginnele GINNAIA MAPLE 14 X15 48" Ht. A4 Amelanchier elnilolie SASKATOON SERVICEBERRY 29 N5 18"-24" Ht. CI Coryopteris intone 'Blue Mist' BLUE MIST SPIREA 19 ~{5 18"-24" Ht. CH Cotonecster horizontals SPREADING CDTONEASTER 31 ~5 18°-24' Ht. PO Physocaryus opufolious b'ablo' DIABLO NINEBARN 3 ~5 18"-24" Hl. PF Potentille frulicoso POTENTILIA 95 M5 18"-24' Hl. CC Cornus stolon. coloradense COLORADO DOGWOOD 13 ~5 1B"-24' HI. CB Comus sericee 'Bailey B41LE1' DOGW000 9 MS 18"-24" Ht. CS Comus stolon. 'IsanM ISANTI DOGWOOD 12 ~5 18"-24" Hl. RA Ribes cureum GOLDEN CURRANT 25 ~5 18"-24" Hl. PC Pmnus cistene PURPLE-LEAF SANDCHERRY 13 ~5 18"-24" Hl. JS Junipereus scopulorum TABLE TOP BLUE JUNIPER 38 ~5 18"-24" Sp. PM Pinus mugs Maps' MINWTURE MUGO 102 ~5 18"-24" Ht. LANDSCAPE NOTES• 1. FINAL PERENNIAL AND GROUND COVER SELECTION TO BE COORDINATED WRH LANDSCAPE CONTRACTDR. 2. TERRACE PLANERS SHALL HAVE A MINIMUM SOIL DEPTH OF 30" FOR SHRUBS AND PERENNIALS AND 36" FOR TREES. CROSSROADS VAIL, COLORADO _-_.~ ~_~ 3PA ~"~--~,~"'-- _ 7PT e a --~_ ~~~ _ ~~ ~1._.dr'' 3PA ]PT ~~ ~ 3PA PEREN ' ~ ~~ ~,. PLANING BED ~- ~_~ PERENN ' ~~- S B PUdJTING BED "~"~~--~-_.,_, _~ SPM 4PT ~------.\~ .,_. ___ 1pg .tea'' 1PA tAA SOUTH-,-_,_FRaNiA6EROAD ~ -~-"--~_ ~ ,t 1Pi ~ ,, C~,.. I a ~ -;~~ PERENNIAL 1~` ' ~ I~ MING BEO ~jM PERE UL ~'"~-~„ T ~ ~ ~ I iT { ', ~ I } \ ~, ,, VIL EIN ~ IPA "' y iC, <,I 5 PM 5M PLANING BED _ ~ CH ~ /~ LAO NPR ~ - . 4J5 3J - ~_ ~ / 2PT Y ~~ I, 1 r i SRA ~ S I/ I I ~~' ° ' _ v I 2 ~``_ r- V T 2PA I ~` ~;'~ F ~': I ~~T '~' PEW1iINGLBED ~~ V ~~ ~ ~ ~ ~ I_ f 1 I - ,, I L _ i- 1 i I>'~ 1 _,, ~~ i ~ r e SP I 3PA ~ ~ I PT _ ~ T FM " ~ ~' ~,~ SPC I _, f C ~ ~ ~ ~ 315 i J {~ I ~~ ~ ~ ~~ ~, I I 1 i ~ ~ .- ~_-- ~~ I _ _, , L I I;~T e --- ___ e M I - l PB I ~+ ~ 2CH t ~ r ,. ~ ~ I t ~ ~ 3P 2CH ~ e ~ ~" :.. M ~ . ~ ~~ I~ I,1 f I a (~L~I aPM ,,,'~ I 6A4 ___ 1.-. I`_` l 2PM 3PMH I 2CH \~`° 2CH PA ' - `< 1 1 1 , ,~ _ I ~ ~ I 7` ~~ ( RKINO STRUCTUR " PT 4RA N,. _ H ~ I p~ IPT' ~_, cH I Ia ~ 'I~ i~-, ~ ~,; ~..- -_. 1 2PF I ~ A / I r I. L: ~0.~ 1PT L~~ 2CH I ° .., : rv ,, I -'"~ PT `, ~~P ~ ~~- SPM r / I ~I T 3P ~ - - c~{ 1 1 ' ( -- __ ~ 2CI -+-- ~ I ~ I rsl~ I ~ ~ - _f f ' ~ 1 '. ~i ~ t ~ 1PT 1P6 ~PA I f~ ~ 1. 3Ci I _ 4 _ .~ ~p~ ~ I ~ 13PT 7C1 ~ ~_ ' I I ~ I~ V I 1Pi I ;}, f ~ I ~ ~ ~ 1~A aP ~ I j;~r I 2P ~ ~ I ~ 1~:~a >3~ /11: _ ~ - It 2 r ~ ~ 75,96 BAST MEADp -.: ~ W DRIVE PUNTINGS UNDER ASPENS \~ 2PM 1PF _ 'PMT PT F2, 1P~ ~ _. '~ ~,. - - 1 '. 1 __ ._~. I v`. ~! -- , .. LANDSCAPE PLAN BARNES COY Sde : 1' = 3tl-0' ARCHITECTS AUGUST 2, 2005 LEGEND ~~~~~C1 ~~? E%ISTING DECIDUOUS TREES \iII: ~ ~.._ ~~;.- E%ISTING SPRUCE TREES ~F DECIDUOUS TREES ,a ~~ ~•/- 75-40' SPRUCE TREES ' 'E ? ,- 20'-25' EVERGREEN TREES ti., ORNAMENTAL TREES\SHRU85 ~~~,+ SHRUB PLANTINGS y~-~~.' PERENNIALS/ GROUND COVER CROSSROADS VAIL, COLORADO ~ "`' ~~ 1 ' ~_~__ !~ I -- /, h: 1, - , . ,`! _._~fs P (~ *ii PARKIry~ STRUCTURE ~ - _ - ,n - ~ "4r i/ ,,,~~~'%'%'% fi (., at '. ~ d ... ~ ~ 1 t~R EN ~ ~~ ~ s ~ C ~,G ~ N1V SWISS CRALEi T Ar - ~ ~ R ~ AREAS OVER 300 S.F. ON-SITE = 20.715 SQ. FT SPL~SMR~ ~ < .~ ~~ ~ ey¢ ~ ! ~ ,~ ~ . ~ AREAS UNDER 300 S.F. ON-SITE = 939 S0. Ff. ~4 . ug t~ ~ y, f ~ ~-~.~I ~- N~-NN 1~i6 ~ - TOTAL ON-SITE SOFTSCAPE = 21,fi5450. FT. } ~ y a 6 y y'~ '~ l' ~ ON-SIIE HAR08CAPE 28 746 S0 F1 ~S ~ <///' ` = , . . x !,, {~,~J Nr ~ OT ON CI AND AP AREA _ 50 400 SO FT ~f ~ ;Ep .~yt5"1 ~ OfF-SITE LANDSCAPING = 16,852 50. FI. f ~~ P j,r m LANDSCAPE AREAS BARNES COY YAk t'=3U-0' 1 , . ° `~" ARCHITECTS - ~nFGmc u ~;~~ e ~.~ '~. ` ~ AUGUST 2, 2005 iPi~ CROSSROADS VAIL, COLORADO I I ns 713 I 116 PUBLIC RESTROOMS 334 TOTAL PARKING SPACES RINK MECHANICAL PARKING LEVEL 3 (+8152.34' DATUM) BARNES COY Sde: l'=16'-0' ARCHITECTS AUGUST 2, 2005 w 1. ' Archit is I T ~ ~ ~ t 46 44 43 42 41 40 39 38 97 36 35 ~ 34 73 3Y 77 70 69 89 87 66 B5 BC 63 fit et 6U 59 ---- ~H' [ IL Ll[ THEATER t STOR. ( i I I ~.' 1775EAT$ L _ PUBLIC PARKING GOWN OWM HEAT y 1 ~ ~ GHANG !~ 57 W 49 ^ /6 47 /6 80 79 70 77 ^ 76 75 )4 73 '°°' ~~ ~ ® ~ _.. THEATER Y ~ mmx< I, 1715EATS W. RR M. RR I STORAGE 61 53 54 ELEVATOR ,___ ELEVATOR S5 6B 57 SB "' VESTIBULE ~i ii VESTIBULE ~ 1 UP ~ m THEATER ~ ~ 7 - ~ ~~~ J, 1~,,.Y~ 97SEAT5 [[ rT T. ~ .. ~ 1 j FRT. j(trr \ \ L ELEV - ~~ ~I ~. ~/_~ I ( FRT. KRCHEN \~\ BOWLING \ ~~~~ ~~ ~~ . 1 ~T' ELEV _ ~ ~ N(ITCHEN \ ~' ~ 1 „C \ \ STAIR4 VG'h' \\ II MENS RETAIL ~ ~ ~RESTAURAN~ \\\\ WOMEN'S ^ ~ ~ °~ //\ F~ ~ BAR \ A //~ 1 WOMEN'S i~iiiiii~ii ii ~ ~ ~ ` / / MEN'S ! ~ ~ I~~IU ,,Q ()() \ ~ . \ RETAIL ~e.~.llllu W __ yl''h' ~ ~ ~ 1V. 4[ I \ n I . ~ ~,~ \II ~ RESTAU ~ ~ ~,~' `k, ~ A Y \\\~ /~ ~\) ~' I I I THEATER SUPPORT RETAIL ~ ~ 6~! 0 A3~d 'N J~°0n~~` 0 ~\\ \~,w I G ~ ~ ~1~ fl ~ ~ OoOpOCOO BASPopHCAOE ~ / ~~\ ,~`~ -~--- ~ ~ °JJ° ~ , 1 ' i RETAIL ~ "` i 1 1 11 RETAIL ~ % i ( ~7 , ' I a 1 0 ~ ~ / 1 1 __ %. I ~ 11 ~ i /~. ,, 1 ELEV L I "' o I a ~' I 11 ~ / ~cjr, . . d ~ .1 ~. I ~I 1 RETAIL `1n 11 ~ ~ ' ~ ~~~~ ~ ~~ ~ ~,, ~Q I __ --~-- -- - -- -- - --- - ~ ~ ~~ ~ l ~-~- --o- - o - o ~. ~ __ _ -- -- CROSSROADS ~- „ PARIQNG LEVEL 2, PLAZA AND RETAIL (+8165,34' DATUM) BARNES COY ~ V~I COLO~O Sok: 1'=16'-0' Y JIB ARCHITECTS ~ arcn;t c5 ~/7 / AUGUST 2, 2005 _ ~ / THEATER 177 SEATS THEATER 722 SEATS THEATER 97 SEATS PROJ ROOM 31 30 29 20 I 27 26 I 25 2/ ~ 23 22 i 21 20 19 f 1B ti 76 m~e. ui~~b~e ~vs` 2 ~~ 'C7 I O ~ ~ 30 PUBLIC PARKING SPACES (/ / i i / i it I f0 II 9 1 0 7~ 6 f fi f 4 0 2 1 ~~ ®~ ® \\ '~,, ~~ ?~ ~ ~ ~ I ~~/ WBY LEVEL ~~ w ~t$ ~ ~ w *,-S ~ ELEV RETAIL (/¶~~~ \~ i ". ~ . .1 ERT. r ELEV O~ I II II I .\~1 RETAIL ~IJL_, __JLI~ rT---~~---IT 1 ~~rr rwl.r~I cl~ L =_ ~~_= J ,I~ 1 4~ ~NI{ / cl~__~r r=~~ ~I I~ a._ ~ I, i I I L b~3 ~ I ~ 11 ~~ _ ~ 1 j~ti<. ~ ~ ~V~ i ~ ~11~ I _ _ I li ~ ~J ~ ~ I -; -~~ ,~\ ~',~ri II / ~~~ /i ~I ~~ ~ I p ~ v`/~ ~t~ , .._. I,.-.--- 1~` ~\I ~~ 111 f RETAIL ~ ~~\` /~_~I /'%' ~~~~.'~ \ i'v I ~ ~ ~ ~ ~._-~. 111 `,II~~~~II' i ~'i ~. II' I ~ ~;~~p--,,~ ~~ I ~ II ~~ .PII1 I ' .y'Y I \ I ~.'~ It '~i ~ ' ~ it ~ l r-' i ~ ~ i I i I ' __ ~ ~ `~ 1 1 ~ .~ ~I `1 ~ ~ I ;' ~ I ~ ~ ~~i~IVI~ 1~~~ I ~'I ~ I RETAIL ~~~ 1 b-I \\ ~' _~ I .,. . `' ~ ~1~~ Z~~~ I ~~ i ~ ~ ~ __L~..41 1 ~ \r ~.i 1 f -t jv ark 1 ~ w ~' ~~ ~~~; , ~ ~ I ~ a', I~ ~~ l .. .. I 1 ,, I 7~ I ~~~ ~ I i r _ ``~~ I I^, ~ ~~ _ 1_~ ~ /~~i I1~ X11 I~r; ~ ~~~~ '?~~rn i ~~ I~7-'~w ~ ( -lip i ~~ v I \\ II I ~ 1 ~-- - -'--- -- ~-'- ~' - - -- -- - --~-- -- = ~ r ~ ~ 4 ~ it ~ ~~1j I ~ 0 0 I I I \` // ,\ ~I ~~ Y =ii ~ i ~' i 1 T --- -- vAI~, co~owwo SOW DRIVE RETAIL RETAIL / ii ,, BIKE BTORAG fi r ~ ~-~ \/ I/~I L~_y l MECH ~\/ ~ \ ~~1: 1 ~\ \i ~ (} RETAIL ~ i i ~ /~ j aETmL y A~ \\~ ~h5 / /7 P° il.\A \ Y~ ~~~~~,~ y_~ y; _ //i ~ ~ ~,~1 ~~ ~ i, ~ r"i,- ~i I ~ ~ 5~, ~ ~ ~? ~ Q ~ ; v' 1 ~ ,lam `' (I 5'( V /-' --T ~\ I~~ ~ ;; , 1 / ,; /' ~ ~1~7 ~~ ~ ~ -- ~;%" ~~ n/ ~~ PARKING LEVEL 1 AND RETAIL (+8179.34' DATUM) BARNES COY ~ ~/ i ; ~%i sue: L~~f~~ ~~ ~( ~ ARCHITECTS ~ ~ Archit ~ .~,a I ' (~ ~~ AUGUST 2, 2005 ~~ i%/~ -.~" ~. ~ ~ A- ~ ~ ' ~ a - h ~~'~``~ ~~ ~` c. ,} ~ . I ~ -~ ti ~ ~ ~I li, ~: ~- -_.~- i ~~,~a .~ _-- ' ,q ~ 3 , ~ (UNR 41~ J- ~~I~7///I~ _.,__ ____ ___________.__ _ ____ A ~~1~~ 1. ®® r i i FIMESi ARG ~rwxmi ~k\I WMING AREA LOBBY m~~~ I~ \U~~ ~ ,° ®® ,euou ~ ERGE ai ~ ~ ~' d ~ , ~II~ sPA, RE~~FI~, / HIS Naiuca Cil ERS ®O ~®®~ ( o~c Ica ( 9J , i^ ~ '~ iRUCN CO0.RI00R ~~ F`1 '; ~ O~"a' ®~ ~ ( L `*p YT ~1 S9H61~ SU SU ~ ~ 'a o ~ .~ _ ~ ~~ C.~ `~ (RUCK (RUCK G~ ~ ~- ~ ~ ~ ~ ~, _ i ~ \I ~ iRUGf iROCN d H _ h ~ .j.LL oc i ELEV. ~~{{pO F :I ,~ r~ ELEV. r4~r A h ~ I~ ~ Yid q Q -- ~-E--.- ~~~ B p n "'ddd l~l I'lal`I ~ ~~~~ ~ i I I` ~ I - II A ~//((~~ _ ~.1 1 FRi. LdPDINCrBB~. • ~... "- ~` .: '~'' ~ ~ ~ .: 1,1-I:Y' - /II~ Ir . i EL OfFEE~ ® a'• / I I ~ ®® n umse®a ~ ~ R ' e ~ 4 LLL JIILL~JJ LLJJLLJJ ,~ 1 iii%, ~a-~~ 3 ~~~ ~, o 34HSQ R. O IBFlN%111 3AFOMCM ~~\I~ ~ ', _ um a a ,I . /~~~ ~ I I ~ ~ ~ ° L ~~ ~' iw n. II ® ~ r 0 4eE i i i ~, I )e I I ~ o~ o ' a I ~ i Y --1~ - 70 ~` aes~ _= ~ RINK ISANNG F'OGL Q -I-_ ~~ ~ \ ~ 11__ \\I -1__ nw ~ : ~Y~ Q \V O 0 ~n p~ r ~ 0' yl ~ R ~{ Q ~~~Q R i 1 'k"~; /~~ .~. ~ , ~~ - ~ ~- 1 I J~ ' ~ , ~ „` R~ - ~ ---- -- ---- 9 a h 0 p •~ V~ ~ ~ ~ ~. ~l>~wa,r~ ~?> ry~'A x 'L~, ~ ~ ~ ' '~ ~ ?r: ' ~ - ^~ l~n ~ . • r~~ ~ L 1 ~~ II . \", X18 ~~A W i •~ ~ 10 ~ I~' f+,, w II u~a -~f-r-' W g J_ j ~iN aem ~ Y ~n 7 VI/p ~1 ~ I ® ~, ® .-~:- 14i., ¢ x ~~ '~ 3 Y LEVEL +8192.34' DATUM) ~/ p36~-3'a~ B NES COY CROSSROADS 1z~N THIS LEVEL HITECTS 0 FFS THIS LEVEL nu sr oz, zoos VAIL, COLORADO ~~~~ e 4 ~X~ a -~~ = _ - ,~ ~ t ~. ---- ~ j ~ a 1- - „ t- - - ~ _ ~,, o eo 0 s ~ x ~~~ J~ ~ ~~~ UNIT ~A NR 21 ~ \~~~ ~ ~ V _ _ _ _____________ ____ _ . / \ II _ _ ___ ___.__ ____ \\\I~ 1 E A.. 3--_ 3___ ______ _ _______ o ~7 t it YpRFY~ o ~~~ ~ ~'r~~i~ ~ r ~s.,- .. E ~2~ ~5 E ,gip 1 ~. I [t """ , O.L O.L ~~ ~~- ~~ 1b^ R~ 6C uy QL pL ®® ®® r _- \ ~ i _ _ ~. ~ _ - ® /aM,~ _. ~ _ _'Lr _ _ \ • _. __ - ~~ ~ . .: s, ~~ ®® ~® -- ~~ /. ~I ~ i~ i ~ i __ i '~ ~ ~~ ~N z.H ~ 14 t09 M 19E ~~~~ ' O S __ _ _ O . .. -. MamWWl.1.1 _-' I t ~ ~,. o '~: o~ ~;` ,,, ~- I =~~r~~~ _~_ -_ --~ •~ ---~ ~/ ~ - ,y 0 ~~ ~r a ,~~~ ~~ ~ ~ , ~~ ' ~~ ~ ~, o ~:~ ~3~ ~" ~ ~ o ~ J y: ['r ~ i W ~ .. =, .~ 1 ~ ~ t. ~ z U o~ ,",ate i CORRIWR ~~.~ 4._. ~ ~~ ' ...,r ~ ~.L g O.L 3 Ff. J 1 `J . Q O.L { a' ~~P~ ~g~ +8203.84' DATUM) B S COY >_ AR TECTS AUGUST ,2005 i 1., 1 r ~ ~® ~ ~- ~ ~ ~U1. ~ ~'' ~~ - -- II - - I- ° =i~li 0 Ii i -~ it ~ ~ =~ ~ j I ~` - !~ 0 -~ i ~,,; CROSSROADS VAIL, WLORADO -~~. li ~~ i oo_ I ~~~ ~ ~ ~ ~0 } ~ ~ i 1, ! -- ~! ~, ~. - - -_- r - - - ~~ ' ~0 , -- --_- • ~ - I ~I~Ii; I~ ---- --- ~3 LEVEL (+821594' DATUM) ~ ES COY _,~ ~TM~,~ ITECTS AUGU 02, 2005 ~~ I -~w_,~ ~+ rl - ~~/" . ' } ~ _~ J<~ x rYG. ~, ,, ~ ~ <_ ~! / \I~ ' . x R. Hx ~n~ kl ~ . '1 f,C.l l.l~ , l ~~ n \~~i~\ ~Ij~ j f (I\\ __ _ O __ __ I ~ __ _ _ _ _ g __ __.__ _ _ _ __ ~x l 5 ~~ o o II/ ~~ ~ ~~ ~~ ~q ~! ~ O.L - . ~ ~~~ ~/ A fT 3 Y pL ~ OL r --~~g9~~ 'I ~ A'11~ ~~ r''~y (/I^I InIm\\\\ 1 , l ' AM __• I 1 ~S~ ~ _ - -_ -_ _-- 0 \\\ // I I ~ ~I _ \ //I ~ I ~~ ~ i I ",I II I !~~ ~I~ ~~~~I I ~~ ~ ~ 1 IIW 1 315afi, a I Laa9elr.~ 30 ~ °°°° 1 ! I II V III IIII III -II III- ___ II VII III I ~I III I ,I ~ ~~ I ~ - _ I _ II I II ' ~ I II .. ~ - 0 - ',, ' _ 1-. IIII) I ~ '~'' I~II I I ~~) . \ ~ { L _ 1 _ - i ill --_._ I - - _ - . III I I _. , ~-, I -_ I -- . - I II _._ __ _ 1 III l i 'I I --:III I~ CROSSROADS - -- VAIL, COLORADO ii; D '/ , sp ~OR\J~ ~~P~O ~5~ ND04 LEVEL 8226.84' DATUM U NES COY ,qu m,,,~~EL CHITECTS i Lo -0~ n~~s ~~ AU ST 02, 2005 .~c~~ ~ '~h V V ~~ O _ v,-, - ~ %~ ~~ __ -'"~ .~ ~~ •L~ i i k ~ 7 ~ 1 ~ ,1 ~w ' ~ c 1~~ ~? ~: ~ - Y ~~~~' t el SSE sprr `C ~~ ~ ' / ~. t ~ .. _ __ ~ ,~~. 1 ~. - ~. _ !. - ~ - '~ f - - - ~~ , ,,~,J ~ ~ ~+a r - ,, ~ ~ f ~ , v _ _ i ~ - - ~ . ~ ~. ~~~~ - - ~ ~ . ~ ~ ~ ~ ~ ~~ ~~ ~r to ~ a1n 5p~.ttAU7 i \ ~ _. n 3az its ,.',: -_ - I ~J / _ _ , ______ n _ _ _._ _ __ __ ~_ _ __ ~ .. ® ___ ~i~ '~~I 0 -~~_ - ______ __ ________ ________ __ ______ __ __ _~~_ - __ __ - \\ ~~^ k ~ ~ H M 3 ri ~A i ~. m. ~,. ~. ~~-~ u~ 5 ~ ~ 5 ~ ~~~ ~~ ~ o gyp ' ~ ~ nc ac ~ ~ ~~~1uw ,~~ ~ ~ ~i :. _ i e: ppp,,, ,,,qqq ~: waxmw i~; ///~~~ ~ nn ~ nrt v Z J/,/II~~~ ~ ~~ ~ ~ ~irp __ neruwa nc N Pw t~ o.c erawrra \ / ' - U l ~ ~ ~ o ®® ®®o ~ _ w ~~ ~ ~ 3 65 ~4 ~, >~ ®® ®® g ;I,. il'~~ n rt. J I PENTHOl15EG ~ ~®~ __ X a 0 0 ~ ~ ; ~ ~ ~ 118541, Fi. (138 uPPPn smar ~ -_ ,Y _ _ - Ye '~. i s ®Pmn \~ ~ - -- - i /® nRiry _ ;nn ~l ~I _ o ® '~ n ~ _ _ _ ---- ~ ~ IT~ C i ~ fll /1~\\ / ~ ®® ®~ r. L~ ~"' ~ _ _- "- _ ® e1/ \ um.vras~ ~1f~ ,lly il `. -.~~_. ~ !I I I I i ~ ' • ®® l 1 ~ ` ~ I ~ _ • sill iiili.i !7 I I II I VIII • 1 ~~ 0 ~~~ 0 0 -- \UI~ ~ 3 1 -~ ~ 0 1~ gOR~~ If WT ROPY ODUx ,10tH) V ~ __ ~ 5 PFOPilM O \ _ _ I __ I i I _ _ Fl 1 ~. rna~ 'SQ n. i0IH7 _ _ ___-- ~ ~5& I / I ( -_ li i~ I 1 ...- __ ~ ~ ~ . • r ~ .- Ali i 1 III III. I ~ ~, -" - 0 t- ___ - I, ~~~ ~ ~I,,~ i~~l °I~Ij ~~ ~~ I~ i~ "'k o , ° ~i, I I~ I I~ - I i~ .I _ ~ - ~~? ~I ~I I ~ , ~' ---~ ii (~ iii 0 - l~ ~. ~~. I~ ~ - I~~ - li il',,"~~' Ii I - - ,~ ~ ,;', i i' I II --'~!~ ;~, II III! - -,~~ - - -- - ~ I ~i - _~; li ~'I --- _ -- ~ I -- ~ o L ~ I~ - !I~~I~= - ~ ~ ~~~, .L Ili -= li - ~;~' o 0 (' ,~,-~~ - _I I ..--..- --- III _ __ / i t '~. __ i i' I~~ ~~~~~ ~~ __ ~~- ~` yr 9 ~ ~' - -_ i I ~~I'~ ~ _ SC I- ~ ~ ~~ y , ~J ~ ~ ~ ~ v _ ; ~ '~- ~~ ~ I~~!~i - -~~I~i~l - I~~i -- i~;i ~ I-- -- _ --- ~ __= ~ ~0 ~P ° - i tl, ~I. is i - -- --- --- • Vf • _ ~ _ 0 5 LEVEL +8238,34' DATUM) gA NES COY ' j ' ' --- -0 =l6 CROSSROADS oiocK TMITMis~va ITECTS ~ I ~ n;L VAIL, L AUG T 02, 2005 ~~~ ~~ r " ~' j 1 1 ~ r t~ i/ 1 <` ~ ~~ ~ . 1 ~~ ~~ ~ ~ ,~ Z ~~ 1~ ~ ,. _ p _. ~ / i - INU ii t'~ s ~J _ -`, _ __ Per ~m .~» ~ - - - '-- ~ ~ fW ¢ _ i~ .~' \ ~ __ ____. ___ ______ ~ ~,_. - --__o L _ _~ _ ___ ~ 1 _ \ ~ ~L /f I.. ~ - - / I W \ I• ~ I, ~I~ ICI ~ `-~~ i ~ - ~ ~ ~ 6 _- ~\~ a~ o~ , ~ - _ \ ~ ,~, .~,.~~ t i ~~ ~f - ~ MEpi - 7~ ~ ac i ~i ~ / Z - MEM .,....~ ~ r~,~ ^ ®® ®® ^ I I ~ ~ --- ~ ~ W 6 67 0 .I -~~'~ ~ - - 0 ®~ ®® -_ _ - 0 0 ~ _ _ ~~~ ~' ~ ~~ g _ t _ (I _ ~,: ~ -}~--ll-=_~ll-- ~~f-F; I o~a~x'~ ~ i I ! I I I __ I ~ ~nanox i \ ~ ~ ~ VIII II i '~ ~~~~ ~ I ~~ • ~~, ~~, (~ I~~!j~l~~l I~ (I I~ I~'~ ~~ .I ji o i ~I 'I ,~I~! I Ig i~.i~ I~ II ~. ~' ~ '. 'I ~ ~ ~i ill ~ ~, ~ I I,~ II, I~,,, ~ Ali 00 i i ', -_ j I ~II_ lii - ~~ ~I 0 , - ~ I.., - ~' ~~ I ~~ Ilillll~ Iii Iii' ~'~' I I'' I- -'-- Iii _..-'-- ;III ---- i l l !, ~ ~, "~_ ~i I - I ~I I ,, ~- ~~ lil _ ~~,~~ --+ III - il~ll II--- 'II(I- -- i~l - --- _ _ a I ~ ', I I ~'I : ~ a ~~ ~~ ~~ - __ _-- ~ - PP7~ _ __ -- _ _. sEmeo rmaouv O P H o __ -.._ _.. ~ I i __ s emaflca n mru~ - 0 -~ =~~ -- - ~r = r N ~ -- = 0 °° ~. - ~a .i 0 r~~ r _- ~ - - r r~„ . ~ ~ ~/ i ~ - ~ ~, I ~ ==~~~1~'~ ~~ ~ -- - ~ _~ _ -- - _ - I: _ -_ i - -- - -- _- - ~!~ ', I~) II ~ I~ ~1, _ _ -- ~ ~ ~ ~ - ~ ~ I I I-~--------- ------ 1;i _-__- I'II~- i -...---- I ' i _ .- --- I -- CROSSROADS - VA[L, WLORADO ~G ~~ . n~\J` EPS~ ~ EAST ELEVATION -JUNE Zl TOWN CWNCIL Ah k 'p NBdB(d' d uin e FbarEneR EOVd Edrg Rhtilkrk °pre weaGaed' 1 n~ m ~ ~ ~ 1'=`R~•Ir"'mlhfM9 (YEf1.®NNV.~d[d hln dp.'MlS~f9 aBn Wf )pole boNds ~9~~~8~ Eh~k Slme ~ bAe row quad Heek TdwdeGOltl y~ tlpnney mes Dressed Tun6e• B~rts Lwl~ mnne7lns and hatlng PvJed Cedar Beams 9 ~. ,. ~ fnlunre xRh 4M ~~ ~ ' ~ ~ ~ ~ ~ , ;'/G ,~/ mnaL'als and hreang, - > .fi ' I I i ~, / wltl.~t Pon ftlkh CON tEYELB ~ 82K9.61' ~ I~rJ!I I`n II ~ _ ~_. a ~ ~ . - .. - _ - ..... _ - _ .. _ - .. -' .I ~ ~ ~+ ~ { I ' III L I "S maf modllk wphAeeL -.CONDO IEVLS _ ~, - ~ ~~ - - - I / I kL nvelduxld' 87x9.31' _.. _.. _.. _.. _.. _ .. _ .. _.. .. yV' - _ _ _ J- f ~ ' CONDO LEVEL/ m e _ _ _ e _ ~ ~ _ ~ _ . C u _ : 1. (I' I _.. _ - -.- - _ BPI6.&' ... - .. - .... _ .. _ _ .. _ ... - _ I.. ~. A. ~I - - - ~ r ~~ I + I ._ _.~ I - ~ ' ~ _ ~ , A{Epu.imne--. _ -CONDO.LEVEL 1i - 81153x' _ . r I _ ~ I - - Te4nde Cad 'Mde ' d le _ . - I ~ I T en mo u , above LdW kVtl .. - .. _ _~ 1 I ~ -GOYD9 LEVEl3 _ } I - - . ~ ~ ~~ L ` , ~.' ~i ~9a ne- '~ - - n ~ W , d , . t~OQ LDBBV. CONDO LEVEL 1 _ .. - .. _ .. - .. _ _ .. - .. _ .. ~. ~ i I _ ~ .. - .?+~P 1. dD!N O ~~ ; .-. ~ ~' _[[ ~ _ _I -~!! T ~ dun? eIA ` ~ ~~ ~ Dry B1a65rm' WIndV4'al Daala~ PAIIKIN6 LEVEL I, - .. - . - .. - .. - .. - -TdB~IdCff~1 .. - .. - .. - .. - .. YYN Clad WOOdaCShe'~ .FETNL PROMENRDE _ r ~ t ~ 'lMge' Module, Recessed eta apefilg mF 8178.34' -r~. . Rnnenade9 Plain Leek 6=typcel PNBOlIG C,ORPf,E ~~_ ~~ Arylad Sandstone IINC L07YER5 PARI(ING LEVEL2 -.._.. _..-..-.. _ Yeye'nnlupviN 54el -.._.. -, _..--.. _ -..-.. - -. _.. _ . PNO RET/uL PIAN Ns~'dRredpal6 We<annh 9i93.3dr Pa'4oM ~ nmLawppoR beans wIU sda' 93Llebad6lron MYSh,dM - _ - PARI(ING tEVEL3 - fnW poses ~.~ EAST ELEVATION -AUGUST 2, 2005 Section • Floor Datum Heights Sde: 1116' =1'-0' B¢k: 1' = 16'-0' PoR RFfERBI~ %IR-C&5 ONLY CROSSROADS REDEVELPOMENT VAIL, COLORADO BARNES COY ARCHITECTS AUGUST 2, 2005 ~. ' ~ Archit tr Alwiimrk' Pre weaha~' double strM~ng seam wt Nge guRa Wsmn R hipk Whe agxguaN Nede sh~a J j (kelW Char Bmms R ~ (dams wither h\\ tanleNOisarid&aang wiaugMlrm Rmsh U6~d Tinka BezmsR &adets wl s0ed - p mnnxtla^s and dadrg 9 Strip Store. ReglorW SaMSIDne 'Small'Rgduk . . meal tlunrd ]drds Ba'mtl- i4nba suppat hams wlths~ bamaadg torn fei~and I -_--Rmha~ _Dry Shdc S~~~- Ttl1aMeGdd - . 'Mei4n' module, - - ahaelabbyksd - SOUTH ELEVATION -JUNE 21 TOWN COUNCIL Stale: 1116" = 1'-0" Wirdowel Daas ~ RhdMnk ° peweatlrael' MehlCkd Wanda Lttl, dalk RZMYgsean wl Rexs9¢d nor apa~g mm ~~. s~ y~ NflWrxslO~. 6' hWd orbs Rpw guard Hede akal OadWOOO a 4uel, Rammed i~ opm'ay min TdRrdeGPld AhetamN ° pre weaUwred' Intl strm wiN nveal P~ Ccdar Brvna ® rybem [slams wiN sled E' hayiol damnry mss ry jpkds mnrkefims aM bradrg Dn~d iYrder Rearts R RdmnY~TmBawppat 8-adak wl sled FbaweA Road Sidiy beams wRh satl NP Stine ~ onmmons and hratlrg (IM.B hall.) hoards balushadrs Iron hn6h,aM "SmalRf rt~edJe ~R Peelal Caesar ReanrsR drtda ~' ren>al damelja~ [alums wiM Red R1elnUnk'prewatlere]' danoV tlksaesem wl ~ ~~ ~ minxtlue aM bra6g, wmxftFaa Ankh e19eg 6rtlple REe J - ~ -i Fbn[enM RaaN Sdn9 , ~ g rye, ~ _~ ~ ~ I 1"k ilI ' (wn Rhal:l aM _ ~ Uess~TrnhaReermR - ~ '- _ r - dxYs6wl sod ~r - _ ~~ .f -;~ I~ 1 r iy -~, ,~ S ~ ~ a~~ - i - L - _ _ ~ ~ a ' y .r_ r I ~ ~ PhtlrmYh' pre weaMa¢C - I - F ~i - ~ double Ra seamw I ~ .. ~ . '„^ * Wbe srw guaN Hede g -~ RR~ .F~dbllf/~Tlmber 511PPOrt I,,e-j{/ bums vqh steel baluAades lmn fMSh, aN hobs pNls. 1 RwN Sldng (sat 8 hale) and tlim h~ SND Ssae - Regional $andROn2 'ldrge' mpollk WRh RPtl nwaN [Rmnd - - t . -.. CANDVf fpl Plm ~. _ .. _ _ .. DrySkd Strxre- TdWeCnld 'la9e'MOduk, PmnHede6 Pkaa Lewis Rhamnmt Bmro Sdrq I set 6ha¢)aM him - . - .. _ .. - . - h~ .. . ~ I DW~~~ TtlNake Gold 'large'Madak, Prmerede RPkaa livet DW Slad Slav ~ Tegurlde Cale _ . ~m'n!>~, .. _ share lohtrf kvtl Ship Stone Ramal SaMSrm "Iar9e'madukwM Red ms~l dramdjoin6 DryLadLae - Tdludde Gold ~1KR~!B 17h6 - .. _ - where asslhk, qdd ENTRANCE TD PARgNG Ifl'HS N1rdw,s I Doors Mdd Dad Wood a Sled, Resent torn Wmtr9 mk . - .. - . _ R"~ ~ - .. - .. Regimal5an~pie 'Ia9e'maduk xRhsktl re+~l d'dMdldri6 ..-..-..- - .. _ _ - ~Tdluride Gdd 7kdun'nndde, ahae lohtrt kvd .-. _..-. .. _ .. - .. _ . ~ielurde Wk Rorteade BB Plae Irks . -..- ENIPANQ TO . - P/RI@lG IfVELS wRndoxs I Doors MBdI Cktl Wand a Ems, Rued iml opening rttin 6" typld CROSSROADS REDEVELPOMENT VAIL, COLORADO SOUTH ELEVATION -AUGUST 2, 2005 Srak: 1116'= I'-0' BARNES COY ARCHITECTS AUGUST 2, 2005 ~. ' ~ Archit is WEST ELEVATION -JUNE 21 TOWN COUNCIL Sale t(16"=1'd' Ahemink"pre w~tleal' LOUde aandFg setm wf n19a 9uderAStmnBtrjie M ' " S~k Rpk~ h6e 5flpv quad Nede a ainank preweedlRai dale staMlrg sam w! ~ 9~ ~ 9Ofda Telluride GaM dlimney mas N n DressM Tim6e~gans8 &arkds wl strd Aheluink'pre weaheed' da6k 4aMing seam wl Nhe snow guaN llezle syaan fdertenttOBaN Siring (teR 6 Mh) aM olm mnnettions aM bradng edge gums s}9en60iple b d d Guards PeeImI CNaB~ms9 e snow glan lo He e ' DresxO imher Bums B fdumns wah steel s/~ rl Brabe6 w(skel oalneTrcsaMtenlg, wlvrgM imn 6nrsh Rha[arlalt 8oad SIOUg maiatlaa ad Gadng (snt, d Mia.) ad tlim ~ «~ ~ ~ ~ ~ ~ >>arAS. typal Vakd Galan BensB CUUnrawlU sRel I ~ I ronretllom aM tradng, y$~ F ., CONDO IEVEl6 _ - - _ wrdgM imn fmSA F" ~. 1 /~ ~ i ~ i 846(1&' Skip Stuce fugkrul Sards[ale - .. _ . . l,y. -~ = r' -. ' \ _ ~~~ ~ 2ae31 'SrreY' motluk w8h ~' ~ I I ', - mall dannrlpias ' l - .. _ .. _~ ; ; - _., -"; :. . ,,,, ,. .. _ .. _ .. - .. - - - -caNDO eiie ea p~ _. _. O , ~ , d~aa xM . ~ ~ .., balmtrada Ira findh, aM I I>z ~ ..:., { _ ~ _ ` 8216.39' DIY Stall Shre' - - •-I _ r' ®. I - - J. I I ~ . } ~ G1~' LIB' ~- f TNkdde Cold , _ ' _ _ ~" 'Medum"module, - . , - .. ~ '- :'.-. ~- .- I, , ~ _ . ~ _ - - - •-+a ~ ' ~ OONDO LEVEL2 _ _ . above Lahtry k"wl 1 ~-,_ ~, f _ _ _ _ _ . 8203.84' _ i '~-~ ~ I: ~ ~ - I _ CANOPY Fpt ~-+ I = CONDO LGBBV,CONDO LEYELt - 4 _ .. _ _ _ ~MQ LOA~ING~QCK . _ _ _ ~ t _ '- - - ' °, .. ets2.34• ~ ~ _ i - - PARKNG LEVEL I, .. _ _ _ .. .. _ _ - - ..L _ .. _.._ _ RETAIL PROMF~NA~E ~ 8778.31' ~~~~ _ _ - . . M ndtlt5mne' I I I I I y Ir II' ' ~ NodJe ~~&~~ .. _ .. _ .. _ .. - . TQSJddp Gdd . ' d Mhncanelt Goad $Idng N 6h i d I_}~ ~i}+I II I II II III Jr-i'"5 N_1 -~ -- ~ ~ PPANING LEVELI RETAIL PIP AN A - ~ aa9 'MOC4e; - . Mareude6MauleMs . ~we , a tf a Cln~ boards - . -- "--` .. ._. . - O l .. _ _ _.._ -..6f85.3dr PWAACi35fOWUWR Sblp6taa~ ~ ~~~ S4pSrrte~ Aiggna15drAWR idmi6e Grid ?Ialum'modk, Bipaal5aY9ule 'Small"mloMkw6h steel "68IaP d "~~, module wM stem reaBl draMN PARKING LEVEL 3 _ _ _ 8783aT above LObLry lyd residurntlpKS pins WEST ELEVATION -AUGUST 2, 2005 Section -Floor Datum Heights Smk: 1116' = f-0' Sak: I' = 16'-0' FOA PEFEAEII~ MRpOSF50NLY CROSSROADS REDEVELPOMENT VAIL, COLORADO BARNES COY ARCHITECTS AUGUST 2, 2005 ~. ' Archit is AUGUST 2 NORTH ELEVATION VS. JUNE 21 NORTH ELEVATION CROSSROADS ~k ,~_,6-0~ BARNES COY ~ VAIL, COLORADO ARCHITECTS Archit is AUGUST 02, 2005 _,._„_.._ CONGO LEVEL6 _ _ _ _ CONGO LEVES 0278.74' CONGO LEVEL/ _. _.._ _..CON00 LEVEl3 0715.7A' _ ,_, _ _.. CONDO LEVEL2 BN17 94' CONDD LOBBY, CONDO LEVELI -.. _.. _.. BNDLOpnINGpgD~. 01B2.k' PARKING LEVEL 1, _„_, _ RETAL PROMENADE 8778 J4' PARKING LEVEL 2 PND NETAIL PLAZA _.._. _ AfS5.3P' _ _ _ _ PARKING LEVEL 7 ei5177' CROSSROADS VAIL, COLORADO AUGUST 2 EAST ELEVATION VS. JUNE 21 EAST ELEVATION - ~k '~=iB-0~ BARNES COY ARCHITECTS AUGUST D2, 2005 1. ' Archit is CONW_ LEVEL6 62496d' CONDO LEVE6 62363a' _. _.._.._.._ CON00 LEVEL4 _ .-Bt76.6nT _.._ _ _.. _. _.. _..CONDO SEVEl3 _.._ 8215.70' _. _.. _.. _.._ .CONGO LEVEL? „_„_ 81936d' CON00 LOBBY, CONDO LEVEL 1 _.. _.. _.. _. ANGLGAO.f,NGPGGK _.._ 8792.34' PARKING LEVEL 7, _. _ _.,_ .RETAIL PROMENADP~ _.,_ 611934' PARKING LEVEL 2 AND RETAIL PWA _.. _.. _.. _.._ _ _6iG`55dr.. _.._ CROSSROADS VAIL,COLORADO AUGUST 2 SOUTH ELEVATION VS. JUNE 21 SOUTH ELEVATION - ~'e '~-'6'-0" BARNES COY ARCHITECTS AUGUSY 02, 2005 1. ' Archit is _, _,._,__. _ CANOO LEVEL6 8769.89' CAN00 LEVL 5 _.. _.._.._ _ 9'!99.94' _.. _.._.._.._ .CONDO LEVEL/ 9276,94' _.. _.._.._ _ .CANTO LEVEL7 6275.31' _. _.. _.. _.. _.. CONDO IEVEl2 9707.84' CONGO LDBBY,CON00 LEVELI _.. _.._ _ 9NOLOPOING ~G(d~ 6192.34' PARKING IEVEl 1, _,._„_.,_„RETAIL PROMENADE 9179.31' PARKING LEVEL 2 ANO RETAIL PLAZA _.. _.. _.._.. _.9{E537' PARKING LEVEL 3 _.. _.. _.._.._. -915931 CROSSROADS VA[L, COLORADO AUGUST 2 WEST ELEVATION VS. JUNE 21 WEST ELEVATION - ~I` '~ = 16°~ BARNES COY ARCHITECTS AUGUST 02, 2005 1. ~Archit is .Y ~ i ~_. ~ i v ~ ~ v AA~d'. v~ .-•. ~---~-... ~, ~~' ~~ I ~---~~ \ '`vr ~ vv f''1~ 7~~ v I -,~ ~ vv t ISM `'~_~ ~ ~ ~ ~,;'~-r ~ ~ ~j i . 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C _.__~ ~`~ _..I h`~~. - _ I , ~, ~ 1 t'~aa.crrl (~~ _ v r ~ -_ - 1 =~'Y - l~ I \\1 \\ \\ _"~'-=~~~ °~ I \\ f,B2a a ~ _ r'i.~rHTri'!p -~..._: ~ ,, I o - ~ _- _ v I 1 ~~ i ~~ ~~ v v I ! ~ ~` ' '°~~"` \ \ \ I ~ v v vv ty,~ ~~ ~ ~ ~ - I I ~ ~ v \ ~ ~ ~r J,i ~~ \~~I \\` \\\!~ r ) ~~~ a I (9aatr x ' ~~)~/ ,/~~ \ ~~,,,r-~~ .rr ~,,; „r\ ~ i~~ •~r. `",}'1,~ ~ I \ > > u7 x. r 1 ~ ,~' ~ ~.I 4. r r , ~~ ~ ~~, ~ h, //~Y~ -I ~~_ _ `~ I I ! ry' '~/ \_/may ~ ,'~-- j I ` ' r-~ '~ ,~ .; I 'i~ ~ - \ •~ a I .,,. ~a,"~2G "'~~~ / ~I ~ ~ 4 it ,c~ 7 r,' r ,'., ~``~`~.F `* I~ _ ~ t~,~ __ v \~. I ~ i ~ ~t h ~ , I ~ - ~I r ~ T i' \,~~~ \ ~\\ ~ I ! ease ~l l I - { I"\~\ „~ ~\ ~~1 i \ ~,~--'~~ I jl` \i~ x~~. \%'y`j ~ ~ ~~~ k,. 1, > I `1Tr~tr I aa~'~1;;~~ n ~r~` i~ 'Y (\\ \~, a_____- ~jr_'.'~ I~ ~ ~ ~i~.` 1\~`\~yYl /~, I ~~~~`..Y a \`\\\ l C X ~ ao I. ~`' i~ i„ ~ ~~I ``~~j l'\, , ~ ill'~___' `~-~~ ~ :I ~ ~ y ~~ ~~ ~~.7 _ 18 ~ ', I~ V CI~~~ ~ i~~~~~ ~ ~ ~'Bree, A ~ it -- __ . ~- ..,~ ~~. /:'~~,, ~ '~, \ ~~ -. __78,6? ~ ~ l.i I ~ -1~ ` ~ ~r "~(r~y 1 \~ ~`,~~~~r~ I~;, ;. r :a~~~ ..;"~ 1~~; 1~ CROSSROADS VAIL, COLORADO , ~` t i (\ I _ ~ `l ~ \^. '' ( rte`=6~~, \ ~J~~~I ~ ~ ~~ 6 ~~ S ~~ I ,, ~i ~ I~ ~ I~ e ~ ~ ~4' i 8r6j l ~' ~• ~ I r -~ _ it ..L- t ~ ~~~ ~ ~ I ~ ~l ~~~~, ~~ i ~~ ~~ r '' ~ 'H~, ~~ ~1> I, ' ~-i EAST _ - fi , ~7r~-.~ --~'" ~ MEADpyV pRIVE ~ r - _° . ~ ~ hf ~~ i1 I ; ' '~ `L. `~ ~~ '. ~ ; --\ ~ ~f;5 fy/~ k ~~rr D ~/ \\ -^ bOOt~-' ii y-~ ~ ~ v Y j, ~,,% \ \\ %sl~'~, = ~L- ~ aW pRNE ~ ~ ~,s = ~~. BUILDING HEIGHT PLAN (historic grade) BARNES COY ~: ,..~~ ARCHITECTS AUGUST 2, 2005 ~'~ ® '= M ®« 1. ' Archit is ~\ j j ~~ ~~ i O °\ ~ it I 1 `~\ ~~l'\ i \ ` ~ \ __'_- \ ~~~ ~ ~ ` ~ r\ ~~ .: ~s _-~ ~'laA~ ''---__~ _ I ~ ~ ~ ~ h' j--~, i i 8, `~--~ ~ ---~ purR„ ~~~ ~~ ~ ~ ~~ ~ .,~ ~, S ; .,. ' ~ ' i ! "--~- ~ f ` ; ~ ; i 8~~ ~^ ~ ~~~ ~ - ~, .` _, ? '~-~ _ ~ ~ GE ROAD ® 0, ~. ~ ~ , ;, _ i ~ ~~/ ' I 1/ r '~ "~ , :- ~~. 1 I'-`, I \ j . -_. V~~(,AGE ~ ,+~, S~\ :. - ~° '~ ~ ' I `~, aye ~ .~i v ~ ~ ; ~ \ ~ } ~ ,-+._ ~` ~ r ry _.~ i ~ o _~ ,may ' ~ ~ _ t i ~ ., , ~ y. ~ ~ ~ I ° g 7-. ~ \~ ~ ~ .}~- ~~ r i ~7_ r ~ ~ _ _^-_ ~ ~.. '~ { f ~ ~ ~ ~ . ~ I 1'II ~ ~ / i ~ ~ i j ,.,? ~~,, , ' , I1~ _' I f ~ ~ ~ ~. ~ `~- ~ `,rte\.' r,.\r.1~ y"fJ~,.,; ~ "\~T y~-~.\'~~~4~~~ ~" 1~7~;'.`. . ~ ~ s e , , i r , ~ ~ ~ _ _" ~ „ i i ~ i i ~ t J `_ ~\ _ t ~ ~ 1 ., ~~ ~* I i ~ i ~ ~ ~~ ~; 0 i l ~'~ ~0p}'faz ~ _ _ ~ ~ ~-^~~ ~: ~ ~.. ~ f ~ r ~,; ~.:. ~ .. T s~ ~ ~1 ., \ ~. .~ 1+ I s T 1 ~ ..-. r'x ... ', i ~ « w 1 ice; .,~~---~; ~; . ~ ~,~ 7- ~ ~ >~~~~ ~~ r' - _ ~ ki • _ ~ „~ , \~ ~`~ :, , ~ f _ ~ ~ i\j~~ _ r iir ~""~a~l' r i 1'/~i '~ r~'~i ~~ 4~ 1 °~ was: _~ ``(~ - _ ..~ ~~ Y\. \~ ~~ \~~~\~ ~_\, `!A. r t. ~' V \ ~ _ ~ _. _„ _- - ~ _ ____ __ _ _ -~ _ _ ~ ,_ yy \, ~ ~~'z~ „ ' .~ ~, - .., ... ~„ - ~~~. ~_ ~ ( .,. ~ faze, ~~ _ ,,~`~;~i~ , l;: r ~`_~`='% \ r ' ` p 10 • "-; ~'°'~ fez ~ g - \~ ~ a o , ~, 8 ~.~.. ., _'~--_ =' ,lane. _,__ _. __ i _ ;-~-_.. ,-I; ., _ __ .. _ -... I. t ~ - `f- \~ I y _-~"-___,~~/~~~yY~'~~ ' I i; I „( IN ~ j ~ ..I: ! ~^.«.: II ~-~°~ fazed kz'x°~.~ o I \ `k' :1~ ~i ^ -r .~.. 1 6` I f f J ~ I ~ ~ f `. - ~ ,, f ,'~_~, . 81 ! Sze ~ ~j~yI"^~ ~I ~ ~ ~\. ,~ -_ ~ ; ; ~~~ y ,~ . , r ---_ r f '1 _ ..- r 'f ~ 1st f =" _ ~ I ; . _ ; ~:::-.- ~ ~ i 4^;~ r i ., ::. ~: I .:~: ;~,~: _. _ f t ii `'~ ~~~~` i ~ . as ~~' ...,..~~ ~ ' ~ _.... I, .`•: ~„ ~~~._~...~y;H~; N ~ Mfr ~ ~ ''~~ , - 4-- ` ((--~~ -f-' ~ ~ ~ .~r~' ~,. ~: ~: __ ~~~, ~ ~ I I, Ji ~.j~~ `, ,. I. fezza„I !I' .~- /: I~~~ ,'i~ ~ ~)(~ t'j~(-~ • -_~lj" '- ~~~~L : - ~ ~ ~ 1 s ~/ '-~,.~ o,', ~ ~ '' ~ ~ ~ e ~ I _.7~ ~ ~i ":r ~~ ~~~ ~ 1 I ~ ~_ _ r ~ -mil ''~,'~f i ~ II - I __ _ _ :- .c; , .., . ..~,- ~ ,~5 ~~ ~ ~ ', I~) I _...~ ~.; ~ii~ ~~\_ ,:," l ,'\~I~ ~.,~ is £r~ ~LK ~ ~Ip V~rf,,. it~_` `!l r r y. Si,~ ?'„ ~- I I ~r ~ ~ I eni.: ~ .C ,: ~~ I`'~, ~' ~ ~' " I !i c , ..1~. \i~% ~I / 1 * I ~,'~'-~i_~' [;`y... i \ I ~~, I 'BO I__. (~ "~'~"' '~ , / ~; / / ~ '~ '~' i ~ ~ ~C? *J/ f I '~` lam` ~ ~ 1 \ ~ ~ .h~~ I -. l 1~`` ff ~I~ rr ~If ~ f aznm - ~ ~ ~~) ~' . n ' it '' ~ `~ zA ~ 2 -~ j ~f ~. \. ,K r ~ ._ ;~~ ~~ ~ ~ l f ~ ~, ~ ,,, .. ~~ l I, ~ I ~' ~` I ~ ` 1r ~t•. '„~ , ~ ~F816g ~ ~` it ~------ _.._ ~~ ~` ~; f~ X11 ~ ` !~ \~ In ~, r _ ~ ~;' ~~ ~~ _~~ r ~~~--- ~~ area ~---~_ ~~ ~"~~ I ~ f~ I ~_=" f~ E TMEADp ti ~ ` I~ ~ I,r u I', ~Tr--rte a ~,~ ~1.. CROSSROADS VAIL, COLORADO m ~~8I9 ~'~ ~i ~ ~i i ~~, i~l~\ 1, i~ V~ ;, \~ : .' "~` ~: _. ~~ WO~y ~ '~" I1 `/ ~\,-_ X816 5~~~ s, y.. '~`~`" ~` BUILDING HEIGHT PLAN (actual grade BARNES COY ~ sde: r=mom ARCHITECTS •- ~Archit is AUGUST 2, 2005 ®, , ~~~ I_ r WINTER SOLSnLE OECEVBER 21, IO:OOam '"'~^ ~~ "~~ ..n, un SOYA AZWIIIH: 150 BECEMBFR 21, IT:OOpm OELEYBER 21, ~2:OOpm SOUR ELEVATION: 21' SOLAR ALMUfN: 178' SODA RIMUni: 20S SOWt ELEVATION: 27 SODA ELEVAnON: 2Y N N ®~ r SPPoNC ANO fell EOWNO% ®" - ~ r SPRNG ANO FALL EOUINO% MAR 20 S SEP 20, t0:00om LV,A 20 @ SEP 20, 12:OOgn ~ ~ EOUINO% SOLAR AZINUnI: 175' SOUR AZIMIRH: 17S AM2+ 20 & SEP 20, 2:OOpm SOLM FLEVARON: /0' SOLAR ELEVATION: 81' SgAA AZIMUTH: 21f SIXAR F1EYAnON: N' CROSS vAIL, coLORa.,EA r JUNE z1, I¢aoam SOIM AZINURI: 110' SOIAA fLEVAnON: 56 JUNE 21, 12N10pn SgAA A21MlIRI: IJ4' SODA EIEVAl70N; 74' BARNES COY JUNE 21, 2:OOpm ARCHITECTS SUN STUDY SUMMER AND WINTER SOLSTICE PLAN solAR A21MlRN: z4S ~ solAA ElEwnoN: Bl.s AUGUST 2, zoos 1, ' Archit tr .~ ?~ ,j1 J M Y J CROSSROADS vAtl, cocoRAOo \~I~~/. BEAVER CREEK ICE RINK COMPARISON BARNES COY ~•°16~~• ARCHITECTS AUGUST 2, 2005 1: r r `~~~~.. , =~ JN PLAZA ~ '~ ~I ~~'_ ~ _____~ - i \ ~ 11 ~, ,~~ti ~ `` ~ ; ~~: ~"il __. \ ~ ~J V~~ _ .- __~ y ~. ~ ^~~ ,x,;55 ~ ~~ ~~~ r- i i ~, ---- --, ,' „~ B ~ B ~ r. ~ ' ' ` 0 ~ i, ~ ~ ~ I ~ ~ I k r ~ ~I I ~ ~ I i ~ b ~ ~ ~ ~ III\ ~ AI, Y ~ ~ I / i f ~ I ~.~i 1 ~„ r ~A I ~ I ~.._~ ~ -r- ~ ,, ~~ ~_ __ _-_- ~ ~ n~- _ ~~ f r ~~/ ~, .. --~--~ ~- ~ - ~~ ~ , ~x ,. ~ ~ , ! ~' ~ -7 ~- i --- ~, 7 ~~~ ~ ' ~ ll ., ~ ~ ~ ; ~ ,~ C i o ~ i , ~ ~ ~~~ r i _ k - i ~-~.'~)- :) - i ~ ,, - .. ,. 1. ~ / / v I ~q, ,~ i &~ ,,~1 ~ ».rn~.wcv,v~: cnvu~~ CROSSROADS VNL, COLOiZ400 i '< ' ~ ~ I~' r 7 I i; ( ~ ~ i t i, ~~~ ~ .:-tom ~ ~ --- i r .', , , ,; ~ i .. _ , - i -- - - ---- ~ ~ , i 5~8' ~ I ~ ~~~ ~ ~~ i / ~ - - --a-- - -- - -. - '-- _ - - ,. i ( ~ ~ ,, , ~ i ~ 0 ~~ I ~ - ~~ ' ~ ~ ~~ II 11- Q ~ ~ i " ~I ~ 'I ~ ~~ 1 ~ ~ ~ -- _ _ - _, 0 _, ,,~ - - _ `,_ ~, 0~ _- t: ~ _ _ _tl -- P i ,a _ _._ - ~ t _ - i ;, __ .., 7 ~ ii ~" ti ..~ /1r~ ~ ~ ~ i d ~" N r ~ ~~ BUILDING DIAGRAM (Extent of Building Beyond 20' Setback) BARNES COY ~ ~ scale :-r' _ t6'=o~~ ARCHITECTS Archit is One story dodo structure within 20' set back AUGUST 2, 2005 ~ Buildable area out of setback 1 I I I ~:1I 1: ~::1 Why get involved? Colorado's boom ended with -~ ~ a recession. _ ~,~, ~ ' _ And a billion dollars in budget cuts hitting Colorado families hard. More cuts are threatening if we don't act now. A temporary "timeout" from TABOR budges limits to provide critical earmarked funding for education, roads and health care. NO new taxes. Just a frugal plan to help move Colorado forward. Join the coalition for Colorado by getting behind Keferenda C & D. It's easy. Start by signing up for the campaign's yard sign team. ~, ~ oar VoteYesonC-D.com Repayment of Jource: Colorado General Assembly Hnuse Rill (1.5-1.x.50 ---- -- ----- ---- --_...__, _...._a_.. _~~_ community colleges. The best way to help pass Referenda C & D is to display a yard sign. Want to do more? Recruit five friends to display yard signs, too. To reserve your signs, complete and return the card below. To help pass Referenda G& D, please complete the information below, detach the card and mail. I've checked the things I'm willing to do to help: ^ I'm voting YES on Referenda C & D. Peel free to add my name to your public list of supporters. ^ Drop a yard sign off at my house in September. ^ I want to join 5~,.,Colorado; send me the organizational kit and I'll find five friends to display a yard sign. ^ Upgrade me to Z~r~,Colorado! I'll await my kit in the mail. REFERENDUM C REFERENDUM D Based on $3.1 billion in TABOR surplus Provides bonding capacity for $1.56 billion in over next five years capital improvements COLORADO'S ECONOMIC RECOVERY PLAN Name W QQW ~~_ A ~ U~,~ 0 OcoV ~~~ OOw >C4 Return the attached reply card letting us know you have pledged to vote for Referenda C & D. We'll add your name to our list of Coloradans endorsing C & D. We'll drop a yard sign off at - your house in September. It's one of the most effective things you can do to show strong support for Referenda C & D. Find five other yard sign locations for the C & D campaign. Check the Sr orColorrrdo box on the reply card and we'll send you an organizational "toolkit" with complete instructions on how to identify five more supporters -and five more yard sign locations -among your friends, neighbors or co-workers. It's a tall order: Recruit 20 of your friends, neigh- bors or co-workers to display a yard sign. In checking the box marked Z~~,,.Colorndo, we'll immediately send you a "toolkit" to help you get A q °~~° started in identifying throughout the summer 20 ~ ~ ~ new supporters -and yard sign locations -for ~ 2 ~ 0 Referenda C & D. ~, ~ U ~~Ow Send in tyre corrrpleted reply cant or si~~r up to truly nt ; w ~ ~ ;~ www.VoteYesonC-D.com ~ooq