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HomeMy WebLinkAbout2007-06-05 Support Documentation Town Council Evening Session PART 2 OF 3 VAIL TOWN COUNCIL EVENING, SESSION AGENDA 6:00 P.M. TUESDAY, JUNE 5, 2007 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 • ITEMITOPIC: Citizen Participation. (10 min.) 2. Stan Zemler ITEMlTOPIC: Town Manager's Report. (10 min.) • Revenue Update. • Construction Update 3• ITEM/TOPIC: Consent Agenda. (5 min.) • Approval of 05.01.07 and 05.15.07 Minutes. 4• ITEM/TOPIC: Presentation of 2006 Audit Report. (15 min.) ACTION REQUESTED OF COUNCIL: The 2006 audit report is presented for Council information; no action is requested. BACKGROUND RATIONALE: In accordance with section 9.11 of the Vail Town Charter, an independent audit shall be made of all town accounts at least annually. The audit shall be conducted by certified public accountants and copies made available for public inspection at the municipal building. The 2006 audit was conducted by McMahan and Associates, LLC. Michael N. Jenkins, C.A., C.P.A, and a principal of the firm will present the results of the audit to the Council and the public. 5. Stan Zemler ITEM/TOPIC: LionsHead Structure Redevelopment. (10 min.) 6. Todd Scholl ITEM/TOPIC: The Town has received approval from San Joaquin RTD to utilize one of it's options from a contract with Gillig Corp. to purchase a 40' low floor hybrid bus. The purchase price is $515,771, the Town has an FTA grant for $382,976, so the Town's portion to fund this purchase $132,795. We are asking for approval to enter into a contract with Gillig to purchase this bus. (10 min.) 7. Matt Mire ITEMlTOPIC:, First reading of Ordinance No. 16, Series 2007. An Ordinance to Prohibit the Possession, Sale or Use of Fireworks within the Town of Vail; and setting forth details in regard thereto. (10 min.) ACTION REQUESTED OF COUNCIL: Approve, amend or deny first reading of Ordinance No. 16, Series 2007. BACKGROUND: Pursuant to C.R.S. §12-28-107, the Town is authorized to adopt an ordinance establishing prohibitions upon the sale, use, and possession of fireworks, including "permissible fireworks" as defined in C: R.S. § 12-28-101, within the corporate limits of the town. STAFF RECOMMENDATION: Approve, amend or deny first reading of Ordinance No. 16, Series 2007. 8. Warren Campbell ITEMlTOPIC: First reading of Ordinance No. 15, Series of 2007, an ordinance amending the official zoning map for the Town of Vail in accordance with Title 12, Zoning Regulations, Chapter 5, Zoning Map; Rezoning Lot 21, Buffher Creek Subdivision, from Primary/Secondary (P/S) district to Low Density Multiple-family (LDMF) district, and setting forth details in regard thereto. (15 min.) ACTION REQUESTED OF COUNCIL: Approve, Approve with modifications, or Deny Ordinance No. 15, Series of 2007 on first reading. BACKGROUND RATIONALE: On May 14, 2007, the Town of Vail Planning and Environmental Commission held a public hearing on the request to amend the Official Zoning Map of the Town of Vail. Upon consideration of the request, the Commission unanimously approved a motion recommending approval with a condition of the rezoning request to the Vail Town Council. The Planning and Environmental Commission placed the following condition on the recommendation; "That Lot 21, Buffehr Creek Subdivision, shall be limited to no more that six (6) dwelling units regardless of that allowable under Low-Density Multiple Family District zoning." STAFF RECOMMENDATION: The Community Development Department recommends that the Vail Town Council approves Ordinance No. 15, Series of 2007, on first reading. 9• ITEM/TOPIC: Adjournment. (7:30 p.m.) l NOTE UPCOMING MEETING START TIMES BELOW: (ALL TIMES ARE APPROXIMATE AND SUBJECT TO CHANGE) THE NEXT VAIL TOWN COUNCIL REGULAR WORK SESSION WILL BEGIN AT TBD, TUESDAY, JUNE 19, 2007 IN THE VAIL TOWN COUNCIL CHAMBERS. Sign language interpretation available upon request with 48-hour notification. Please call 479-2106 voice or 479-2356 TDD for information. TOWN OF VAIL REVENUE HIGHLIGHTS May 29, 2007 Sales Tax Sales tax collections for the month of April are expected to be $1.3 million, up 3.4% from last year. Year-to-date collections through April are expected to be $9.8 million, up 5.8% from the same period last year. For comparison, inflation as measured by the consumer price index was up 2.6% in April compared with the prior year. Ski Lift Tax Although ski lift tax collections for the month of April are up 19.3% from the previous year following a slight downturn in the month of March (1.4%). Year-to-date collections through April are up 6.4% from last year, while. the ski season to date (November -April) is up 4.7%. Construction Permit Fee Revenue Construction permit revenue, which can be considered an indicator of redevelopment activity, continues its strong trend with year-to-date construction permit fees of $812,961 up 41 % from the first five months of last year. Year-to-date permit fees include $513,780 from major construction projects: the Arrabelle at Vail Square, Forest Place, Four Seasons, Lodge Tower, Lodge at LionsHead, Manor Vail, Mountain View (formerly Apollo Park), Ritz Carlton, Solaris, Vail Plaza Hotel, Westhaven Condominiums, and the Willows. Major projects accounted for approximately 63% of the fees in 2007 and 65% in 2006. Construction permit fees include building, electrical, mechanical, plumbing and sprinkler permits. Real estate Transfer Tax (RETT) Year-to-date RETT collections through May 29, 2007, total $2.2 million compared with $2.1 million for the same time period last year, , an increase of 2.7%. Major redevelopment projects including Gore Creek Place and Forest Place contributed $202,500 or 9% of the total in 2007 while no major redevelopment projects closed in the first five months of 2006. 070605 Revenue Highlights - 1 - Vail Town Council Evening Meeting Minutes Tuesday, May 1, 2007 6:00 P.M. Vail Town Council Chambers The regular meeting of the Vail Town Council was called to order at approximately 6:00 P.M. by Mayor Rod Slifer. Members present: Rod Slifer, Mayor Greg Moffet Kim Newbury Mark Gordon Kevin Foley Not present: Kent Logan Farrow Hitt, Mayor Pro-Tem Staff Members: Stan Zemler, Town Manager Matt Mire, Town Attorney Pam Brandmeyer, Assistant Town Manager The first item on the agenda was Citizen Participation. Representing Eagle County Animal Services, Natalie Duck presented information about a campaign on safe human/dog interaction. She invited representatives of the town to attend an informational meeting on May 22. The second item on the agenda was the Consent Agenda. Approval of 04.03.07 &04.17.07 minutes Moffet moved to approve the minutes without amendments with Newbury seconding. The motion passed unanimously, 5-0. The third item on the agenda was the Town Manager's Report. • Revenue Update. Finance Director Judy Camp announced that although ski lift tax collections for the month of March are down slightly from the previous year (1.4%), year-to-date collections through March are up 4.7% from last year. The ski season to date (November -March) is up 3.4%. Construction permit revenue, which can be considered an indicator of redevelopment activity, is off to a good start in 2007. Year-to-date construction permit fees of $601,515 include $427,759 from major construction projects: the Arrabelle at Vail Square, Forest Place, Four Seasons, Lodge Tower, Lodge at LionsHead, Manor Vail, Mountain View (formerly Apollo Park), Ritz Carlton, Vail -Plaza Hotel, Westhaven Condominiums, and the Willows. This is a 27% increase in total over the first four months of 2006, with the major projects accounting for approximately 71 % of the fees in 2007 and 75% in 2006. Construction permit fees include building, electrical, mechanical, plumbing and sprinkler permits. Year-to-date Real Estate Transfer Tax (RETT) collections through April 23, 2007, total $1.7 million compared with $1.6 million for the same time period last year, an increase of 6.1 %. Major redevelopment projects including Gore Creek Place and Forest Place contributed $202,500 or 12% of the total in 2007 while no major redevelopment projects closed in the first four months of 2006. • Wildlife Resistant Containers. Police Chief Dwight Henninger said he believed residential customers were approximately 75% compliant with the wildlife protection ordinance. Henninger then outlined the extensive public awareness campaign. Year-to-date the Police Department has answered calls to three bear sightings. Foley clarified summons would be issued for non-compliance the next day (as opposed to written warnings). The fourth item on the agenda was a Construction Update. Public Works Director Greg Hall announced snowmelt installation at Meadow Drive and Slifer Plaza are continuing. "Decorative planters are being put in by the Children's Fountain...Work surrounding Manor Vail has started. The Vail Plaza Hotel is finishing median work on the South Frontage Road...The Four Seasons will be generating a lot of heavy truck traffic... Crossroads will begin demolition on May 7." Slifer encouraged appropriate signage be used to identify the hospital detour. The fifth item on the agenda was a LionsHead Parking Structure RFP Update. Town Manager Stan Zemler said ~ he would bring potential options for Timber Ridge to Council during the May 15 meeting. "We are working to improve communication among the various groups...Sometimes aconference call just doesn't do it...We need to-make some significant progress in a relatively short amount of time." Zemler discussed potential parking options including the possibility of using the Ever Vail construction site. Representing the Vail Chamber and Business Association, Kaye Ferry said the Vail business community would not support redevelopment of the LionsHead parking structure without a West Vail parking structure iri place. Representing the Vail Village Homeowners Association Jim Lamont suggested working out a business plan for the conference center (included in the proposed development) prior to approval of the project. The sixth item on the agenda was First Reading of Ordinance No. 11, Series of 2007, an ordinance amending Special Development District (SDD) No. 4, Cascade Village, to allow for a new development area located at Tract K, Glen Lyon Subdivision. Town Planner Bill Gibson explained that on April 9, 2007, the PEC held a public hearing on a request for a major amendment to SDD No. 4, Cascade Village, to allow for a new development area located at Tract K, Glen Lyon Subdivision. Upon review of the request, the PEC voted 7-0-0 to forward a recommendation of approval, with conditions, of the request to amend SDD No. 4, Cascade Village, to Council. These recommended conditions have been integrated into Ordinance No. 11, Series of 2007. Moffet clarified with the applicant's representative Jay Peterson, that previous neighborhood concerns surrounding the ordinance had been quelled. Peterson answered yes. Representing the Vail Village Homeowners Association, Jim Lamont spoke in support of the ordinance. Moffet moved to approve the ordinance with Newbury seconding. The motion passed unanimously, 5-0. Foley clarified the affected parcel was not zoned as Natural Area Preservation. The seventh item on the agenda was an appeal, pursuant to Section 12-3-3, Appeals, Vail Town Code, of the Town of Vail PEC's decision to uphold an administrative action determining that Condominium Unit E within the Covered Bridge Building is the "street level" of the building, located at 227 Bridge Street Lots C & D, and the southwesterly four feet of Lot B, Block 5-B, Vail Village First Filing. Acting Community Development Director George Ruther explained that on February 12, 2007, the Town of Vail Planning & Environmental Commission held a public meeting to hear an appeal of an administrative action determining that Condominium Unit E within the Covered Bridge Building is the "street level" of the building. Upon presentation of evidence and testimony, the PEC made eight findings of fact and voted unanimously to uphold the previous decision of the administrator. On April 3, 2007, Council granted a continuance of the public hearing on the appeal to the May 1, 2007, Town Council meeting at the request of the staff and the appellant. The Community Development Department recommended Council uphold the February 12, 2007, decision of the PEC, based upon the evidence and testimony presented and the eight findings of fact made by the PEC. Town Attorney Matt Mire acknowledged Council had visited the site earlier in the day. Representing the appellant, Paul Dunkelman argued the PEC changed the facts and modified the interpretation of Town Code to come to a predetermined decision. Newbury clarified Dunkelman referred to the unit as being on the first floor. Representing the Vail Village Homeowners Association, Jim Lamont spoke in support of the staff recommendation. Representing the Vail Chamber and Business Association, Kaye Ferry spoke in support of the staff recommendation. Ruther established the zoning of the building regulated uses that could occur within it. Dunkelman stated, "You can't amend the code and just say you are interpreting them...This is not about any other unit, business, or applicant." Moffet moved to uphold the, PEC decision based upon the relevant findings provided by staff with Newbury seconding. The motion passed unanimously, 5-0. The eighth item on the agenda First reading of Ordinance No. 14, Series 2007. An Ordinance Amending Sections 5-1-7(H)(2)(d) Vail Town Code Regarding the Regulation of Amplified Sound for Commercial Purposes. Police Commander Steve Wright reported that during the Council meeting of April 17, 2007, the Council directed the staff to provide an ordinance amending the current town code section 5-1-7, extending the time periods for allowable outdoor entertainment. The Council asked to extend the time which amplified-sound equipment may be used for commercial purposes on Friday and Saturday nights from 10 p.m. to 11 p.m. Gordon clarified .special events were not subject to this ordinance and were handled in a different manner. "I think this is a very reasonable compromise." Gordon moved to pass the ordinance with Foley seconding. Representing the Vail Chamber and Business Association, Kay Ferry spoke in support of the ordinance. She also encouraged .further lengthening the allowed times. Representing the Vail Village Homeowners Association, Jim Lamont encouraged Council to maintain the status -quo: He asked for more communication with affected lodging properties between first and second reading of the ordinance. The motion passed unanimously, 5-0. The ninth item on the agenda was Second Reading of Ordinance No. 13, Series of 2007, an Ordinance making supplemental appropriations to the Town of Vail General Fund, Capital Projects Fund, and Real Estate Transfer Tax Fund of the 2007 Budget for the Town Vail, Colorado; and authorizing the expenditures of said appropriations as set forth herein. Moffet moved to approve the ordinance with Newbury seconding. The motion passed unanimously, 5-0. The tenth item on the agenda was Adjournment. Moffet moved to adjourn with Newbury seconding at approximately 7:30 p.m. The motion passed unanimously, 5-0. Rodney E. Slifer, Mayor ATTEST: Lorelei Donaldson, Town Clerk Minutes provided by Corey Swisher. 4 Vail Town Council Evening Meeting Minutes Tuesday, May 15, 2007 6:00 P. M. Vail Town Council Chambers The regular meeting of the Vail Town Council was called to order at approximately 6:00 P.M. by Mayor Rod Slifer. Members present: Rod Slifer, Mayor Farrow Hitt, Mayor Pro-Tem Kent Logan Greg Moffet Kim Newbury Mark Gordon Kevin Foley Staff Members: Stan Zemler, Town Manager Matt Mire, Town Attorney Pam Brandmeyer, Assistant Town Manager The first item on the agenda was Citizen Participation. Vail Valley Exchange representative Chip Domke announced McKenzie Stevens from Battle Mountain High School and Axie Navas from Vail Mountain School were to receive the Vail Youth Recognition Awards. Slifer presented each student with a $1,000 check to be put toward their college education. The second item on the agenda was a Construction Update. Public Works Director Greg Hall announced the Manor Vail walkway (to Ford Park) was almost complete. "Storm sewer work to the north of International Bridge...Utility work in front of Austria Haus is underway with asphalt to occur soon...The water line installation on West Meadow Drive continues to progress...Work on the Arrabelle streetscape continues." He then stated that significant work on Forest Road would continue near the Eagle River Water and Sanitation District administrative building. "There are several detours throughout town...We are doing our best to keep the signage up to date." He then clarified construction in the public right-of- way is to be completed on June 22. The third item on the agenda was the Town Manager's Report. Timber Ridge Update. Town Manager Stan Zemler reported there are several physical/structural and financial issues at Timber Ridge. "V1le have experienced decreased revenue from projections due to additional vacancies we did not anticipate...Wastewater issues also created some problems...Expenses are running about $20,000 higher than we expected." He then announced a recent improvement in vacancies had occurred, although several issues surrounding repair and maintenance loomed in the future. "These are capital improvements that are not budgeted...Timber Ridge Affordable Housing committee has engaged Borne Engineering to provide cost estimates for some life-safety repairs." The fourth item on the agenda was the LionsHead Parking Structure Redevelopment and Timber Ridge Redevelopment. Zemler reported that on March 20, 2007, Council directed staff to enter into an exclusive negotiation with Open Hospitality Group/Hillwood Capital Partnership (OHP) for redevelopment of the LionsHead parking structure property and to simultaneously consider OHP's proposal to redevelop Timber Ridge. Staff and OHP, along with the town's respective advisors, have been discussing the projects and negotiating key points. Zemler stated, "I am feeling very good about where we are in the process." Representing OHP, .Mark Masinter said, "I'm thrilled the way the process is going...The process has been very transparent...We have some real expertise at the partner level to help us execute our plan." Town legal representative Malcolm Murray explained that to guarantee completion of the three construction phases for a new parking structure, an irrevocable letter of credit would be implemented during each phase of construction and controlled by the town. If the parking structure is rebuilt, but one or more hotels are incomplete, the developer improvement agreement will contain certain triggers that would enable the town to buy back the development rights and find a new developer. Murray also outlined ~a model for operation and management of the conference center in which the conference center would be owned by a metro district. The metro district would contract with a public entity to act as a convention bureau handling bookings and marketing. The metro district would also enter into a contract with the hotel entity to maintain the space and provide food and beverage services. To cover a possible operational deficit, a lodging tax or public improvement surcharge would be implemented, as well as a possible metro district mill levy which would be confined to the development property. Masinter clarified a focus group suggested the conference center be cutting edge technologically and possess high-end finishes. "We have a new design we will be presenting to town staff." Logan clarified that when the first phase of construction is begun the town will have a fully functional parking garage in Ever Vail. Zemler stated parking continues to be the biggest challenge. "VVe have talked to state (Colorado Department of Transportation) officials and there is an openness to realigning .the South Frontage Road. Referring to parking, Zemler said, "V1le need to have alternatives and those will occur in LionsHead...We are continuing to have regular meetings with Vail Resorts." Logan reinforced the importance of including Vail Resorts in the project discussions. PEC Member Bill Jewitt asked for a contingency plan that would assure the project does not end up half completed. Representing the Vail t Village Homeowners Association, Jim Lamont urged Council to use due diligence when analyzing all issues surrounding the project. LionsHead restaurateur Billy Suarez urged caution in the decision making process, especially as it relates to available parking during construction. "I appreciate Council's due diligence." The fifth item on the agenda was the Second Reading of Ordinance No. 11, Series of 2007, an ordinance amending Special Development District (SDD) No. 4, Cascade Village, to allow for a new development area located at Tract K, Glen Lyon Subdivision. Senior Planner Bill Gibson announced that on May 1, 2007, the Vail Town Council approved Ordinance No. 11, Series of 2007, on first reading by a vote of 5-0-0. Moffet moved to adopt the ordinance with Gordon seconding. Representing the applicant, Jay Peterson reported neighborhood concerns surrounding the snowcat access had been alleviated. Representing the Vail Village Homeowners Association, Jim Lamont offered thanks to Hitt for being persistent on the neighborhood covenant concerns surrounding the proposal. The motion passed unanimously, 7-0. The sixth item on the agenda was the Second reading of Ordinance. No. 14, Series 2007. An Ordinance Amending Sections 5-1-7(H)(2)(d) Vail Town Code Regarding the Regulation of Amplified Sound for Commercial Purposes. Town Attorney Matt Mire stated that during the Council meeting of April 17, 2007, the Council directed the staff to provide an Ordinance amending the current town code section 5-1-7, extending the time periods for allowable outdoor entertainment. The Council wishes to extend the time which amplified-sound equipment may be used for commercial purposes on Friday and Saturday nights from 10:00 p.m. to 11:00 p.m. Slifer clarified for the record that several letters in opposition to the ordinance had been received by Council. Vail Village hotelier Paul Johnston spoke in opposition to the ordinance. Representing the Vail Village Homeowners Association, Jim Lamont spoke in opposition to the ordinance. Slifer, a Village resident, then expressed displeasure with the legislation. Representing the Vail Chamber and Business Association, Matt Greene spoke in support of the ordinance. Gordon emphasized the importance of the perception of "Vail is open" during the evening. Gordon then moved to approve the ordinance with Hitt seconding. Hitt asked Police Commander. Steve Wright to strictly enforce the ordinance. Village resident Connie Knight spoke in opposition to the ordinance. Foley professed a willingness to rescind the ordinance if it didn't .work. Newbury said she was trying to balance the comments she had heard throughout the .community. "V1le should evaluate- it and if it isn't working we should reconsider it." The motion passed 5-2, with Slifer and Moffet opposed. The seventh item on the agenda was Resolution No. 12, Series 2007, A Resolution Approving the. Purchase of Property in the Town of Vail Legally Described as Vail Heights Condominium Unit #11, Eagle County, Colorado with a Physical Address of 2079 `Chamonix Lane, Vail Colorado. The Council considers it in the interest of the public health, safety and welfare to purchase the property legally described as Vail Heights Condominium Unit #11 Eagle County, Colorado with a physical address of 2079 Chamonix Lane, Vail Colorado (the "Property") in the amount of $280,000.00. Moffet moved to approve the ordinance with Foley seconding. The unit will be included in the town's employee housing stock. The motion passed unanimously, 7-0. The eighth item on the agenda was Resolution No. 13, Series 2007, A Resolution Approving the Purchase of Property in the Town of Vail Legally Described as Pitkin Creek Park Condominium Unit #6-H, Eagle County, Colorado with a Physical Address of 4011 Bighorn Road, Vail Colorado. Council considered it in the interest of the public health, safety and welfare to purchase the property legally described as Pitkin Creek Condominiums unit 6-H, Eagle County, Colorado with a physical address of 4011 Bighorn Road, Vail Colorado (the "Property") in the amount of $460,000.00. Moffet moved to adopt the ordinance with Newbury seconding. The unit will be included in the town's employee housing stock. The motion passed unanimously, 7-0. The tenth item on the agenda was Adjournment. Newbury moved to adjourn with Moffet seconding. The motion passed unanimously, 7-0. Rodney E. Slifer, Mayor ATTEST: Lorelei Donaldson, Town Clerk 4 1~.5, n~ ~,Q~c,,~u..#~ 1 y I I~\ O ~~~~~~. s# ~PJ r ~ ~~ .e s~',y. ~ 'fr .i - ~ .-'rd- - a ~a 1 ~. ~~~~ f -~ ~~ ~ -~ , ~-- !~ .. o o ,, , a ~ ~ ~ , !_ ~_ '~ ~ ~ ~ ' ~ f ~ '~' °~ ` ~ i ~ ~~ f TH82 ~1 SPRZNQ~ P~R'TY ZN NORTH A~?~R,ZCA* r- ~ ~.Vai! ~~ ~~,iing . w~. wa w Me«urwK rroneua - p-yNw. a~ OF Recap Report prepared especially for Town of Vail CSE presented by Highline Sports & Entertainment APR.zL a-is, aoo~ 2007 Spring Back to Vail Recap Report TOV Commission on Special Events EVENT OVERVIEW - GOALS AND OBJECTIVES • Attract additional Vail Visitors, for the final month of tlae season, from in and out of Colorado. • Entice return destination visits from earlier winter bookings with value packages to include lift tickets and lodging. • Differentiate Vail in the month of April. • Target youth-minded 30 to 45 year olds. • Target attendees with Household Income over $75,000 • Attract incremental Vail spending $$$ (Lodging, Food & Bev, Merchandise, Lift Tickets, Rentals, Etc.) HIGHLIGHTS Overall, the 2007 event was very successful with greatly increased destination visits, lodge bookings and packed restaurants and shops. • Marketing and PR campaigns were very strong in promoting awareness and driving event attendance • Estimated attendance/visitors to Vail during the two weeks of Spring Back to Vail: 150,000 • Kid Rock live in concert at Ford Park • Free concert in Vail Village -Third World with Warren Miller movie screening • On-mountain events included World Pond Skimming Championships and Malay Day • Largest World Pond Skimming Championships event to date. • Apres and after dark parties took place on eight nights during Spring Back. Additional parties and special promotions, which were not part of the official SBTV schedule, were held in town after each concert. • Out of State visitors up week 1- 85% YOY and week 2 - 5% YOY • Vail lodging up 31.6% YOY • Week 1 - 69% of visitors were from out of State and 19% outside U.S. • Week 2 - 56.3% of visitors were from out of State and 8.3% outside U.S. • 85% of all event attendees came from places outside of the Vail Valley EVENT BUDGET REVENUES: Actual CSE Contribution $65,000 Concert Ticket Sales 1 55,590 Sponsorship (Net) 328,000 F & B Sales 59,310 Entry Fees 2,565 Total Revenues $610,465 EXPENSES: Event Site: Licenses & Permits $575 575 Talent, Equipment & Rental Expenses: Signage & Decorations 11,755 Rental Items (dumpsters, porta potties, 20,556 barricades, etc.) Bands, Sound, Support, etc. 327,119 Purse & Course Items 9,217 Misc. Event Needs (credentials, t-shirts, travel, misc.) 24,904 393,551 Manpower & Related Expenses: Labor/Announcers 62,106 Town of Vail Police, Security 1 3,940 76,046 Public Relations/Marketing/Advertising: Public Relations 1 1,075 Advertising/Marketing 26,177 37,252 Administrative: Proposals/Insurance/Supplies/Phone/Postage 29,353 Management Fee 25,000 54,353 Sponsor Relations: Lodging/Entertainment/Gifts/Transportation 1 7,232 17,232 Other: F & B 26,1 76 Venue Rentals 2,500 28,676 Total Expenses: $607,685 Net Income: $2,780 MARKETING OVERVIEW ' See Media Highlights RESULTS • Estimated Spring Back to Vail attendance: 26,000 • Estimated Incremental Room Nights and Revenue Generated by Spring Back to Vail. The ' numbers below are final estimates for the 2007 event. ' Incremental Room Nights Estimated event attendance: 26,000 Those who came dust for the event: 65% Those staying in Town of Vail lodging: 50% ' Average nights stay in Vail: 4.5 Total Incremental Room Nights: 38,025 ' Incremental Spending Estimated attendance per day: 2,000 Average amount spent: $100 Event Days: 13 Subtotal spent on dining & shopping: $2,600,000 Average lodging price per person per night: $99 Incremental room nights: 38,025 Subtotal spent on lodging: $3,764,475 Number of days in Vail not for event: 1.0 ' Number of people staying additional days: 2,500 Average amount spent per day: $100 Subtotal spent on non-event days: 250,000 Total Estimated Incremental Spending: $6,614,475 ' POTENTIAL FOR GROWTH AND DEVELOPMENT FOR SPONSORSHIP AND MEDIA EXPOSURE Spring Back to Vail has made big strides in just four years of existence. For 2008, Vail Resorts ' has committed to continuing to assist in underwriting the event to bring in national acts that draw large crowds and destination visitors. This will be especially important with an Easter free April. We have a tried and tested foundation in place from which to continue expanding the reach of ' the event. We will look to continue to build upon sponsorship and TOV tax revenue generation. ' HOW DID THE EVENT IMPACT VAIL'S "SENSE OF COMMUNITY"? Spring Back to Vail impacts Vail's sense of community like no other event. The event, especially the headliner concerts and the Pond Skimming World Champs has truly become a springtime fixture for the Vail Valley. ' SPRINGBACKTOVAIL.COM http://springbacktovail.com/ ,x - r _ ~ . * ~ -~° ~~ to ~ ~ `~ t,~ o ~ ~ ~ y ~ ~, _ ~ ~, ~! ' d ._~ .- .... r' ~ .w._~, -"`i ~ _ ton . _.r"^'' ~ y r `:' i ~: ~ - SD~.~Tune, '~ Event - i~., o aY no a•. _1'' X as. .... h ,~ S`' F •v' .- ,AF _ r".per., ~ Mon 7:oopm-on B-Ball and Beers Party - IdCAA Tap Room ~ d/a Finals r ... T._._ .. __ __._.. __ ._-- --- --_._ _ _____ ___~._ _.. _ _..__ _ _. __._ _ _ _. _... _._.... Tne 3:oo-bsoopm Apres Ski Party Los Amigos 4/3 Wed 3:00-6 oopm Apres Ski Party Vendettas 4/4 Tlttt Malay Day (Click here for more info) Vail Terrain 4/S Park _- -_._. Fri S:oopm-on Bar Party The George 4/6 Sat S:oo-iO:oopm Free Concert with Third World Crossroads 4/7 Featuring Warren Miller Movie Screening it-Z:oopm Initfortim Band MidVail ~ ffiun Daily Ski and Ride Vail 4/8 Easter Mountain Mott Daily Ski and Ride Vail 4/9 Mountain Tone 3 oo-b:oopm __., ___ Apres Ska Party Los Amigos ~b/IIo Wed S:oopm-on Ski Party The Cluls 4/ii ---- - -_-.m _ ___._ _ _ _ _ Thu e•o ppm-on Streetwater Brush Battle F3 Body Samana t8/SR Art featuring AquadruBn LiveY Fri S:oopm-on Bar Party ~ `~ The George ~ 4/i3 __.. _____ _ _ _.. _... T_ ___.. __ . __ _ _ ... _. SaE s:oo-S:oopm World Pond Skimming Golden Peak 4/Yd Championships ~ S:oo-io:ooprn Headliner Concert -Kid Rock Ford Park CLICK FIERE TO I'URCIIE+ASE TICKETS OPILINE Sttn Daily Ski and Ride Vail 4/i5 Mountain 'lofl "Schedule and acts are subject to change without notice 5/20/07 9:40 AM ~' ,, Skiin FP 4C 1 Februa 400,000 FP 4C 1 March/April 400,000 Ski FP 4C 1 January 400,000 FP 4C 1 March/April 400,000 Skinet.com Ongoing 400,000 Ski.net e-newsletter - 400,000 Table Ma azine FP 4C 1 Feb/A ril 25,000 ~°IA"Q ' . • _~i~ ': ' .,. ~ -.',~ . , .' ~ :. Qr3-3(17=51 Billboard S Colorado Blvd 228 e/s 500/o Evans 1 4 weeks N Federal 3109 w/s n/o S eer Blvd 1 4 weeks 6th Ave Osa a n/s 500 e/o I-25 1 4 weeks Westword 1/2P BW 2 28-Mar 4-A r 265 000 Email Blast 1 2-A r 265,000 Online Banner Ad On oin 265 000 Newsletter 6-A r 265,000 The Onion FC 1/2P 2 4-A r 11-A r 45,000 Newsletter 3 27-Mar, 3-A r, 10-A r 45,000 ~ti~,kr`,E~ ~ ~`) ar,iz; ~~~~ Vail Dail FP 4C 22 On oin 15,000 70%P 4C 5 On oin 15,000 1/2P4C 1 25-Mar 15,000 Kid Rock 47%P 4C 4 6-A r, 8-A r, 11-A r, 13-A r 15,000 Summit Dail - Hi hline FP 4C 10 28-Mar, 29-Mar, 30-Mar, 31-Mar, 6-Apr, 7-Apr, 8-Apr, 9-Apr, 11- A r, 13-A r 12,000 Summit Dail -Vail 1/2P 4C 3 24-Mar, 28-Mar 31-Mar 12,000 Summit Dail -Vail 1/4P 4C 4 2-A r 6-A r 11-A r 13-A r 12,000 As en Times - Hi hline FP 4C 9 28-Mar, 29-Mar, 30-Mar, 31-Mar, 6-Apr, 7-Apr, 8-Apr, 10-Apr, 11- A r 11,500 As en Times-Vail 1/2P4C 3 24-Mar 28-Mar 31-Mar 11,500 As en Times -Vail 1/4P 4C 4 2-A r, 6-A r, 11-A r, 13-A r 11,500 Glenwood Post Inde endent FP 4C 9 28-Mar, 29-Mar, 30-Mar, 31-Mar, 6-Apr, 7-Apr, 10-Apr, 12-Apr, 13- A r 11,500 Leadville Chronicle FP 4C 2 29-Mar, 12-A r 4,000 Gam? ~a _ Q~9 ' ', ~o_~_,,,~,~,; - ~. t - (i`~ KYZR 60 s ots 140 Weekl KTCL 10 to s Numerous Weekl KBPI 10 to s Bacardi Numerous Weekl KBPI 10 to s Co Crush Numerous Weekl KCUV 60 s ots 20 Weekl Jack FM 60 s ots 40 Weekl Steamboat Radio 60 s ots 40 Weekl As en Radio 60 s ots 40 Weekl KEKB 60 s ots 10 2-A r-14-A r 95 Rock 60 s ots 15 Weekl K stal93 Liners Numerous Weekl KILO 60 s ots 87 26-Mar-15-A r KJAC 60 s ots 20 Weekl KJAC 10 s ots 20 Weekl KCUV 60 s ots 21 Weekl KKNN 60 s ots 15 2-A r-14-A r ~.~! _ - • ~ ~`"i may: ~ .GTi'~ Vail Resorts Vail OOS S82V 2 26-Jan, 20-Mar 45,000 Vail OOS Retail E-mail 1 22-Feb 47,000 Vail IS SB2V 2 15-Mar, 2-A r 11,000 Vail Stee savers Newsletter Mention 3 29-Mar 5-A r 12-A r 125,000 Colorado Pass Club Emails Ticket Promo 3 4-A r, 11-A r 13-A r 75,000 Vail.com Si nature Events Pa a SB2V All Season 22,000 Events Calendar w/ Link Calendar of Events All Season 4,119,500 Home Pa a Presence Event feature 22-Feb-15-A r 7,023,854 TV 8 N S of 1 1-Jan-15-A r Live interviews -HSE 15 February-April Live interviews -Vail 2 Mentions On oin Weekl Giveawa s On oin Weekl Plum TV Channel 16 Live interviews -HSE 2 25-Mar, 7-A r Colorado Crush Pro ram 1/2P 4C 3 4-Mar, 10-Mar 16-Mar Halftime S of :30 s of 3 4-Mar, 10-Mar, 16-Mar Pond Foota a Durin Game 1 4-Mar Jumbotron SB2V Lo 0 4 er Game 4-Mar, 10-Mar 16-Mar Bar Parties Denver area Street Teams Boulder Team of 3 29-Mar Denver Team of 3 30-Mar Broomfield Team of 3 2-A r DU, Ca ital Hill Team of 3 3-Apr ~ ', Eve U~v~W~W I L- '~,~ Spring Back to Vail is recognized as the TOWNOFVAlL Nation's #1 spring party in the mountains. I Covering an entire two weeks, April 2-15, 2007, S62V featured tens of thousands of i ~~ ~VaII. attendees and a full compliment of not-to- ............... ' be-missed events including Kid Rock live in concert, apres & nightly bar parties, a free '! Third World reggae concert, Warren Miller ~~ movie screening, and the ever-popular ~I World Pond Skimming Championships. skiing ~~ ~~. BACARDI T~OWt~OF VAIL ' Va~lm Thero's no cemparison• i • • ~~ ~. 1 .~ o , ~7 ~ r ~`' 1 -i r~1.1 skiing ~~\ ~~ BACARDI~ ' ~~v~w~v Town of Vail's Integrated Components Print Spring Back to Vail was promoted across the U.S. via national, regional and local publications. Multiple 4-color ads promoting the event were published in national print magazines Ski and Skiing. Additionally, numerous ads ran in the Front Range via the Westword and The Onion, and in the high country's Aspen Times, Summit Daily News, Glenwood Independent, Leadville Chronicle and the Vail Daily. PR Multiple Press Releases were sent to local, regional and national media outlets to garner exposure, increase participation and ultimately continue to elevate the awareness and interest of Spring Back to Vail as the biggest spring party in the mountains. Large Format Billboards Multiple Spring Back to Vail billboards featuring Town of Vail's logo were placed in prominent areas throughout the Denver metro area. Direct Email Permission-based emails featuring Town of Vail's logo and I.D. were sent out to a qualified database highlighting Spring Back to Vail offerings. The emails included event schedules, upcoming concert reminders, and other pertinent information. Online newsletters from Vail Resorts, Skinet.com, Westword, In Ticketing, and The Onion also featured Spring Back to Vail. ~ .~ , a ao . ; a ~~ j' T~OWNOFYAi~ ' 'I ,~ D J ~- skiing ~~\ ~~ BACARDI~ ' ntie~w~:,e-w Town of Vail's Integrated Components (Cont.) Event Collateral Collateral materials were distributed throughout the Rocky Mountain and Front Range regions. Materials included full-color posters and handbills with Town of Vail's logo prominently featured . Television Multiple television interviews, mentions, giveaways and Spring Back to Vail features were broadcast throughout the Vail Valley, including KVBA TV8 and Plum TV Channel 16. On-air personalities mentioned Town of Vail multiple times throughout. Radio More than four hundred fifty (450) radio spots, live mentions and in- studio interviews promoted Spring Back to Vail and its sponsors, including Town of Vail. Radio buys were placed on KBPI, JACK FM, Vail's KZYR The Zephyr 97.7 FM, as well as stations covering Aspen and Steamboat Springs to Summit County and the Front Range. Online SpringbacktoVail.com featured event information, Town of Vail logo hyperlinks, pictures and much more. Spring Back to Vail also received features and hyperlinks on popular sites globally, including Vail.com skinet.com, visitVailvalley.com and freeskier.com. Signa_ge Town of Vail's logo was included on the double-sided 4' x 20' Town banner positioned in Lionshead and on chairlift signage at the Vista Bahn and Gondola base areas. On-site, Town of Vail signage was featured at the Kid Rock concert at Ford Park, Third World concert at Crossroads, and the World Pond Skimr~jng Championships. ~ ~-1... ~;'~.: % . ~~ _~• ::, ,' T10WN OF YAIL Va~lm T1tero's no comparisorr• • .b ~ Dt _r ~ f~~~~~~ skiing ~~~ ~,~ BACARDI~ ' ~~v~w~v Town of Vail's Integrated Components (Cont.) VIP Hospitality Town of Vail`s logo was featured on sponsor T-shirts provided in all VIP gift bags. Event Announcer The event's professional announcer mentioned Town of Vail multiple times throughout the many SB2V events. ~~~. o •~ /~ e D ~ y r-.r l TOWN OF VAIL ' Va~lm TTroro's no armpomon• ,~~J p ~ skiing BACARDI. TIQWNOFVAi~ ` • Va~im T)rere's no corr)p3n'son• ~\ ' I;` ~ `'',' ~~_ A~ a e~x~e /yam '- ~ -^~i"~'.\-^/' p gt.4 ZN~ a /"r ~u!. );j.. P3 19PP3N pA,,, ~~i' SL r r_tl- Tx ~`~ ~p wog ~~~ _, J .,o a ~ "(~ ~,R~L 2 20 .. -15~.: O? s - - ~4~ _ ~ ~?- ~ ., - _- 'y^~-~'p m ' O ~~ GETYO PRING BACK ~~.., R17! ~` ( 0 r'.S~'"~~ n. en n i 9e m e a w~ a -- 111 ._~~" v e mna a iin e r aat ~n aline e e o ---___,_- _,.-~ ~~~~,.-~ o_,..re~t : t Partia d a aY mi th ; e~-PaP br:.e. ~ ~a .. a...~.. e.~ ~ e w _ ie Peaa ski i e cn mai nin : ....~....~....~u....~w~~.<.,,, ' Town of Vail Banner ~, `~t . d i $ U ty~ i ~:~r APR3L_2-15 2'OO ~:~._ ' ~ ;~~-~ ,,.,~,~ .~~ ~ ~ ~,---~ 1 ~~~:~OCr~~1 ~~ BACARDI~ Actual 4'x20' Double-Sided Banner ji TOWN OF VAIL ' Va~lm Tifaro's no wmparison• • • . 'D D p s skiing ~~\ ~~ BACARDI® A~~x:~:~ ~ e~ee~x~e ~p RT.Y ~~,., i ° !~ ~~ B ' i t1~0~R~CK ~~ Ol:1`rY1F1'Y d oQ;yF3;r~;aC o!:lii3alF3~,z~ ~ .~.~~ 0 ~° .." zY mcum ' ~Q1p~a®mzmimam~omn~na~yymQp .SAP ~~2~~~~~~~ Event Poster yan_azn osaTr [ ~oRTB ~>u' anxn~• ~_ .. I:h{ ,: `! 0 ~'" r i vVail ®~~ ~~ Silting Concert Poster Actual 11'x17' Posters ~, TIOWNOF VAIL ' ~1 • Va~lm Thnro's no comAanson• A~ a ea¢e~z~t .. _ _ o d D'~ ~ ~ ,_ w ~;, Handbill .bo ~ ~~ 1'~J f`~ r'~ N~~'SIlOIll of /~\ BACARDI~ Actual 2'x6' Handbill }~ F Ty(/ ~,4, ~~oi r~ ` • Va~l~ TTtere's no ctrrrtp:ttisan• j~-~i ~~ • ~ ..b~~~ ~~~~ ~~7GG~~] BACARDI. A~~a;~;~.~ ~ e~ee~z~e ~- +I i _; :<i ~, '~ !~ f ~" Credentials _ - --~ ~' i~ .li. ~j~r ij,..~. ~ v i ~: i, f t ~. I iE ~ i:t I~ ~ ;~ 11 I I~i'f Actual Credentials `_ ~ ~~~ p ~~i1:N~n ~: b,~i K~ ~( c--= ~ ~ - _~ _ r'- _-~ r ..,~,.~.~, ..--_, , ,r -, ~ ~~ ~'~ G ~ ~~__~ )~ ~v.i ~s ~ - rvv Na ~4i~ 1 ~\ '.'.r TOWNOFVAIL ' U BACARDI~ ' 1 • • Pocket Schedule Front ' rf u7,~ ~~ J7 . ~ ~ ~~~ ~~~ f 1.. . 7p+TMO++ e•eaa 4 nw.. pAnf • t.+p nxm CAA YiuAif i~G-0RGm Apr!! 6kl wrty laf Aml~m 7CWpm April 6L parry ~~ L:M~tn MatAy oay ltil rerr+lla wrx t9',1 ~ i7.\'/-\ 3 (112- 6C'm0^ ear pa.n .:::Tra CaeflY .., s{1CO. c+stee c^pcerr o•Im r^!rd wbrrd~ Cecsroadf raarvrina purca XlSlcr xovle screceleg 1 _ Dally 6ki aaa nine Fearer ~"c UMUwral^ p:+0y ' ~ 8ki end 0.lde ~ I ,Mau ieen ii:^^pm Aprb Ski party Lo Axlgm tS'iN'ila""J.3:LV Il~.I'1' ~ _ ]{;^plya Aprb flki PAny w. The rMa[}r ~::n>?xv~~avt~:rr ns;m•rm slrwvuer eR.h n.nM U ~~~'Aemaan easy An wrariag AQa,.dr,<+a c;.a ~Y411SL!'I:! fill. - apa+0a nAr piny .>'rhe ce<i~e r ; + : • t / zs:^^c~ +rarln pond akimming ,.: ac:dc~ pr:a CetmplorraAl~ 5-'A COpa nardliaer Cnmv+-S,id aoek and wr4 Jr . ._%: DaU9 5k1 amd aldA .. ~sll MounC^ • Sceod We A^d acu Are A^Llocl w ceangY arireom aorlre Pocket Schedule Back ,I , ~ r ~ III . I I C I I 1 1 1 , I ~$; I I I i ~V81~. %'~ BACARDI tm~ $~~~ ~ Chairlift Signage • Va~Im Ttroro's no comparison . ~ G ', b°~~~~ t ~~~-' . .~ skiing t TOWN OF YAIL ' Va~lm T1rore's no eomparisan • • '\ ;_ ~ D i V O r- d ,I~ f skiing A~vx;~:.,~ a e~¢P~x~~¢ mxmns Ri ff~PS ~i~erl ~ ~ I Q tiTggi~irBYRSNO~P_ARTY INS J N a;T AM®AS a. _ / ~. `-~ l~'11TORTH AASID RZOA ~1 ~,.. . _ , 4t ~_ ~ _ ~- ~~:~ ~ . . ~' ~ ~ ~. 9. I ~ i I i ~ I9 J 4 I ~ tics I ~ ~` { I ~I i ' I ' ' ~ 1'~ !~ Nail ~ m~ ~n9 ,:~ n ff I ~~ I Vail Daily Concert Ad J ,r "7 f ~~ f , p-eauep.err Pant' vv v.oem '. 7pID~ NCAa PIw1a LN kmigaa I ;,yQPPyI APrb Bki Mrq ' Para vicedettu 1 m 1 Y' HeTertain Par=~ q,3ypPm lµalaYnaY _ 1[e6G r$ epmga Der Party .. .'':S ~oopPmlP~Conc¢rtaillrWrd World C*°m°ada I n M• rc MiIIN ,~ s n;na 1 ,dPr;~~ ~ t ~-Wn ~ apd Rid 6aerer i ~...-.-.~ DadY ~ .k.,an.m.wo...ewm<°,°n.ua.a.+a o: ~~~~ •.~e~~![aYe~t~2;.tr;~etaiv..9ai`a•.a>rs9- ~ ~~a~e~aemo ; ~A 'F,~L~2 -a ~5~2tO07" r ~ ~ > - _~x~:~. - ......._.. ,, .~ ~.. Nail ~ SFGi I _...~ ...~.... i Skiing Magazine Ad --`.` ~ ~-r- T..>sr _~ K rssn (. ''-` ,~ P ~ $ ~~ -_ --,`~ _ i ~~ ll ~ ~.~/u~.-'v.'f3e Val Yu°°wn 1 Y , 1 APrta SL ParlY to AmiA°1 m ~i rec Ciub i AP~bdk3Part1' ~=gym"""" 1 eProoP rerewee p eod9~Poararing AVLadr`16~Lt 1 ~ ' Sea GeerAe J 2_ippPm World POnLL ar.~o.....ro CeamDieaabiM k Pord PUk ylpapPy fteadliner Coccert-Ald Aae • yae atoonulP Da119 t Bki aed Ride ...~.....,...+Mw+wvee~°.~uwmw+ I i i ~Wdl~ ~ ~~' S{ttQ7g NK'AWN Vail Daily W2 Schedule Ad GIDp ~,/81~ ~ FNCANDI. ui~1 ~"' ^~ m°m Vail Daily W1 Schedule Ad BACARDI~ .. TOWNOFVAIL ' • Va~lm 7ttaro's no ~rfpanson• skiing /~ ~~ BACARDI~ V D O+ r-rr' ' J ~~ A.W~.t;~: ~ ~ e~¢rbz~e Qzv-mia.:-~r ...n. , tie.:a:,~:°:u~.".~. ,n..y ~..~w. .+n e+n •~•. ...w ....y. i ..+~s .rrwr.~. wo. .w... :mow ~u.d "" aa. ......u .roar tZn.o i ~ ..«e. r.a... •..~.au..,. g ~f~ili~il1i111""=i7iP(ilP~?iTiil ~....___..._.._.~_"d}P .~{""i- ~ RAi.~ ~T~. Nail. r `„ ~D~, skiing Onion Ad Westword Ad ~' ` ' Nail. ~ skiing , s,aCaw~~. ,~, ff,~~. ___-_ _. __ __ ____ ___ _•utnua.~ro~n.ne..nrtws WS.eMr[.Wm~^..[a. Summit Daily & Aspen Times Ad "iF .. - ; ~; ~_~'' ~~, ,,•,. ~ - ~~ ~ i .. - 4 ~~~~ w ~`i ,~i l { -: ~.!~ ± : ~" ~- ~c"'~': ? ~ :~i~~`~~` ~~~ ~. k. , ~ a ~ it , fr' ., r ``~ • i . ,~,i ~~ ~` rt..s . ~v x . ~. .~`~ ~'~ - `:,~ ^ ~~~ `~~_ ,- -A""~ ~ , - r - ~' _ = ~: ~ ..~._ .. \~ ~ `~~' l `1, ~~i ~~~.~1 ~.. ~ - - r ~~ ~~ i ':<yy ~~ / L TbWNOFY, Financial Statements December 31, 2006 Town of Vail, Colorado Financial Statements December 31, 2006 Table of Contents Page i u INDEPENDENT AUDITOR'S REPORT Al - A2 Management's Discussion and Analysis B1 - 67 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 C~ Fiduciary Funds: Statement of Fiduciary Net Assets Cg Statement of Changes in Fiduciary Net Assets Cg Notes to the Financial Statements D1 - D32 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 Vail Reinvestment Authority Eg Supplementary Information: Debt Service Fuhd: Schedule of Revenues, Expenditures and Change in Fund Balance - Budget (GAAP Basis) and Actual F1 Enterprise Funds: Schedule of Revenues, Expenses and Change in Fund Net Assets - Budget (Non-GAAP Basis) and Actual -With Reconciliation to GAAP Basis - 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, Transfers 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, 2006 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 Undertaking to Provide Continuing Disclosure: Table I -Debt Service Coverage G1 Table III -History of Town 4% Sales Tax Receipts G1 Table IV -Monthly Comparison of Collections of Sales Tax G1 Table V -Sales Tax Collections by Principal Sales Tax Generators G2 Table VI -Capital Projects Fund - 2003 Actual /Projected 2004 - 2007 G2 Table XIX -History of General Fund Revenues, Expenditures and Changes in Fund Balance G3 -Table XX -General Fund - 2003 Budget and Actual Comparison / 2004 Budget G4 Table XXI -Outstanding Revenue Obligations G4 Single Audit Reports and Schedules: Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards H1 - H2 Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133 H3 - H4 Schedule of Findings and Questioned Costs H5 Schedule of Prior Audit Findings and Questioned Costs H6 Schedule of Expenditures of Federal Awards H76 MCMAHAN AND ASSOCIATES, L.L.C. 1 Certified Public Accountants and Consultants ~~ SUITE 222/AVON CENTER ~ WEB SITE: WWW.MCMAHANCPA.COM TELEPHONE: (970) 845-8800 100 WEST BEAVER CREEK BLVD. FACSIMILE: (970) 845-085 1 /~ P.O. BOX 5850 AVON, CO 8 1620 E-MAIL: MCMAHAN Q~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, 2006, 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 i5 to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free 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, 2006, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated March 23, 2007 on our consideration of the Town's internal control over financial reporting and on our tests of its compliance and the results of that testing, and not to provide an opinion oh the internal control over ' financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Governmental Auditing Standards and should be considered in assessing 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. ' 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. 1 Members: American Institute o~ Certi~ied Public Accountants/Colorado Society o{ Certi~ied Public Accountants National and Colorado Government Finance ~{~icers Association/C'olorado i~'Iunicipal League Al To the Mayor and Members of Town Council Town of Vail, Colorado 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 accounting principles generally accepted in the United States of America. 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 accounting principles generally accepted in the United States of America. 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 are presented for purposes of additional analysis, 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 G 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. McMahan and Associates, L.L.C. March 23, 2007 A2 n MANAGEMENT'S DISCUSSION AND ANALYSIS 1 C L i Town of Vail, Colorado Management's Discussion and Analysis December 31, 2006 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, 2006. 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 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 2006 fiscal year by $120,657,376 (net assets). Of this amount, the unrestricted net assets of $47,246,527 may be used to meet the Town's ongoing obligations to citizens and creditors. The Town's total net assets increased in the 2006 fiscal year by $15,436,836, which was attributable to an increase from governmental activities of $16,074,592 and a decrease of $637,757 from business-type activities. At December 31, 2006, the unrestricted and undesignated fund balance of the General Fund was $13,546,574 or approximately 55% of total fiscal year 2006 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 (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. 61 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 demohstrate 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, which is a component unit, 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 emergencies 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 a budgetary comparison 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 plan, 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-wide and fund financial statements. The Notes to the Financial Statements can be found on pages D1 through D32 of this report. 62 ' 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, governmental assets exceeded liabilities by $121,821,807 at the close of the most recent fiscal year. Approximately 60% 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 2006 and 2005. ' Town of Vail's Net Assets Governmental Business-type Activities Activities Total 2006 2005 2006 2005 2006 2005 Current and Other Assets $ 55,549,030 48,993,743 1,983,113 1,649,823 57,532,143 50,643,566 ' Capital Assets 85,382,573 77,223,614 19,582,027 20,293,942 104,964,600 97,517,556 Total Assets 140,931,603 126,217,357 21,565,140 21,943,765 162,496,743 148,161,122 ' Long-term Liabilities Outstandin 10,889,890 12,628,597 21,995,167 21,945,099 32,885,057 34,573,696 Other Liabilities 8,219,906 7,841,545 734,405 525,342 8,954,310 8,366,887 Total Liabilities 19,109,796 20,470,142 22,729,572 22,470,441 41,839,367 42,940,583 Net Assets: Invested in capital assets, net of related debt 73,307,573 63,393,614 (1,627,973) (1,756,058) 71,679,600 61,637,556 ' Restricted 1,731,248 1,770,514 1,731,249 1,770,514 Unrestricted 46,782,986 40,583,087 463,542 1,229,382 47,246,527 41,812,469 ' Total Net Assets $ 121,821,807 105,747,215 (1,164,432) (526,676) 120,657,376 105,220,539 The Town's long-term liabilities from governmental activities decreased due to principal payments on outstanding debt. The Town's 2002A General Obligation debt was retired in 2005; the 19986 Sales Tax Revenue Bonds will be retired in 2007; and the 1998A and 20026 Sales Tax Revenue Bonds in 2012. Long-term liabilities from business activities increased as a result of an additional loan from the Town to the Timber Ridge Affordable Housing Corporation net of principal payments on the corporation's 20036 ' bonds. The Timber Ridge Affordable Housing 2003A bonds and note payable mature in 2032. Additional information regarding the town's long-term debt is available on pages D21 - D28 of this report. 63 D ' Overview of the Financial Statements (continued) The chart below provides financial informati on from the Town 's Statement of Activities for the years 2006 ' and 2005. Town of Vail's Chan ges in Net Assets ' Governmental Business-type Activities Activities Total 2006 2005 2006 2005 2006 2005 Revenue: ' Program Revenue Charges for services $ 10,247,531 9,428,743 3,545,625 3,001,558 13,793,156 12,430,301 Operating grants 937,532 816,641 498,031 368,700 1,435,563 1,185,341 Capital grants 2,831,912 19,500 - - 2,831,912 19,500 ' General Revenue Property and ownership tax 2,937,245 2,652,897 - 2,937,245 2,652,897 ' Sales and lodging tax Other taxes 20,490,710 10,157,800 22,880,425 9,900,703 - - 20,490,710 10,157,800 22,880,425 9,900,703 Interest and other revenue 2,284,455 3,633,486 142,713 25,556 2,427,168 3,659,042 Capital contributions, net 18,571 181,486 18,571 181,486 Transfers (2,480) 2,480 - - ' Total Revenue 49,887,185 49,329,915 4,204,940 3,579,780 54,092,125 52,909,695 Expenses: ' General government 6,956,785 5,389,117 ~ - 6,956,785 5,389,117 Public safety 6,992,458 6,714,321 1,867,510 1,943,261 8,859,968 8,657,582 Public works and transportation 13,453,196 12,294,071 - 13,453,196 12,294,071 Culture and recreation 3,816,421 4,122,633 3,816,421 4,122,633 ' Economic development . 2,003,131 3,320,163 = 2,003,131 3, 320,163 Housing 2,975,186 2,597,136 2,975,186 2,597,136 Interest 590,602 618,396 - 590,602 618,396 ' Total Expenses 33,812,593 32,458,701 4,842,696 4,540,397 38,655,289 36,999,098 Increase in Net Assets 16,074,592 16,871,214 (637,757) (960,617) 15,436,836 15,910,597 Net Assets January 1 105,747,215 88,876,001 (526,675) 433,942 105,220,540 89,309,943 ' Net Assets December 31 $ 121,821,807 105,747,215 (1,164,432) (526,675) 120,657,376 105,220,540 ' Governmental Activities: Governmental activities increased the Town's net assets by $16,074,592 in 2006. Key elements of this increase are as follows: • Revenue exceeded expenditures in the General Fund, Capital Projects Fund, and Real Estate Transfer Tax Fund by $3.8 million, $2.2 million and $1:5 million, respectively.. • Capital outlay exceeded depreciation during the year by $9.2 million: • Long-term liabilities were reduced by $1.8 million through principal repayments. ' 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 Vail Public Safety Communications Center, an enterprise fund providing dispatch services to emergency service agencies throughout Eagle County. 64 ii ' 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 $46,351,345; an increase of $5,687,091 from the prior year's ending fund balances. The following details ending fund balances for the past five years: Fund 2002 2003 2004 2005 2006 ' General Fund $ 8,784,044 $10,376,744 $11,053,614 $ 13,673,808 $ 15,433,052 Capital Projects Fund 8,942,580 8,054,258 8,190,903 10,249,191 12,216,605 ' Real Estate Transfer Tax 5,084,315 6,280,458 Conference Center Fund 3,026,538 5,682,551 5,691,334 7,463,545 8,237,877 8,956,389 8,621,901 Vail Marketing Fund 38,326 42,862 25,590 36.211 46,517 Vail Local Marketing District 710,870 525,786 488,899 696,895 825,793 ' Debt Service Fund 58,940 130,210 182,238 305,522 249,257 Vail Reinvestment Authority 1,252 1,203 1,833 Total $ 23,619.075 $28,436,856 _ The General Fund balance has grown steadily over the past five years, while the Capital Projects Fund and the RETT 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, 2003 for the purpose of building and operating a conference center in the Town. However, the conference center taxes were rescinded as of January 1, 2006 with additional growth in the fund balance due entirely to earnings on investments. The balance in this fund will not be spent until there is an election concerning its use. The Vail Reinvestment Authority was added in 2004 to administer an urban renewal authority established in the LionsHead area of the town. MAJOR FUND BALANCES $18,000 $16,000 $14,000 ,~ $12,000 $10,000 P-- $8,000 ~~ i ~ $6,000 i~ $4,000 $2,000 eYt. $- 2002 2003 2004 2005 2006 ^ General ^ Capital Projects ^ Real Estate Transfer Tax ^ Conference Center ^ All Other 65 ' Financial Analysis of the Town's Funds (continued) 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 Heavy Equipment Fund and the Dispatch Services Fund at the end of the year were $1,332,340 and $492,908, respectively. The Health Insurance Fund net assets were ' ' s self-funded health insurance program. $1,009,274, all of which are restricted for the Town Budget Variances in the General Fund: General Fund revenue was higher than the amended budget by $1,467,858 or 5%, including: Earnings on Investments up $670,136; and Ski Area Lift Ticket ' Admissions Tax up $175,098. These revenue items were favorable due to conservative budgeting and, in some cases, astrong-start to the 2006/2007 ski season. Expenditures were below budget by $1,303,618 or 5%, of which $635,983 was budgeted but not spent for outsourcing development plan reviews, due to timing of major redevelopment projects. The remainder of the favorable spending ' variance was primarily due to conservative budgeting. n Capital Assets: The Town's government-wide capital assets, net of accumulated depreciation, increased $7,447,044. Capital additions included streetscape improvements, seven replacement buses (including one hybrid) and various other projects. Additional information as well as 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 $12,075,000 in sales tax revenue bonds outstanding, of which $1,810,000 of bond principal is due within one year. Debt related to Timber Ridge Affordable Housing Corporation totaled $22,110,000 of which $145,000 is due within one year. Additional information regarding the Town's~debt can be found on pages D21 through D28. Sales Tax and Public Accommodations Tax: During 2006, the Town had a 4% general sales tax to support governmental operations, including capital expenditures. The following chart shows changes in the general sales tax for the past five years. TOWN OF VAIL GENERAL SALES TAX 18,000,000 ,. ~ f,, .. ~~..~ , ~ y,;- ' ~°'_ ~ -~ . ~~~` .~ ,.~ ~~ ~.~ ~` ~;w. ~, ~~ 16,000,000 ~_ ;., 14, 000, 000 12,000,000 10,000,000 8,000,000 - ~ ' `' ~"" 6,000,000 ~,,. ~ 4,000,000 2,000,000 r r ~ ` x.,~ ~,,~ Y~ns ,. 0 Y ( ' 2002 2003 2004 2005 2006 B6 ' Next Years Budget and Rates: The Town's General Fund balance at the end of the current fiscal year was $15,433,051 representing 54% of annual revenue. The Town's 2007 budget anticipates using , $79,024 of this fund balance in 2007. ' 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 81657. 0 C lJ B7 1 L r GOVERNMENT-WIDE FINANCIAL STATEMENTS ' Town of Vail, Colorado Statement of Net Assets December 31, 2006 ' Governmental Business-type Activities Activities Assets: ' Equity in pooled cash and investments 43,455,735 553,436 Cash -Restricted 617,610 490,462 Unrestricted cash and investments 542;681 223 105 ' Receivables (net of allowance for uncollectib le accounts): , Property taxes assessed 2,852,998 - Other taxes 4,273,344 - Other governments 351,635 39,391 ' Employees 122,742 Other 682,895 12,254 Inventory 263,117 - ' Prepaid expenses 208,645 44,298 Interest receivable 67,968 - Loans receivable: Collectible within one year 5,000 ' Collectible in more than one year 1,930,000 = Bond issue costs, net of accumulated amortization 174,660 620,167 Property, plant, and equipment, net of accumulated ' depreciation 85,382,573 19,582,027 Total Assets 140,931,603 21,565,140 ' Liabilities: Accounts payable 1,451,386 181,166 Due to other governments 336 - ' Retainage payable 186,653 - Accrued salaries and wages 411,249 25,899 Interest payable 46,335 162,202 Deferred property taxes 2,852,998 - ' Other deferred revenue 282,568 183,977 Deposits payable 761,787 16,050 Compensated absences: ' Due within one year 416,594 20,111 Due in more than one year 624,890 30,167 Bonds payable: Due within one year 1,810,000 145,000 ' Due in more than one year 10,265,000 20,065,000 Notes payable - - 1,900,000 Total Liabilities 19,109,796 22,729,572 Net Assets: ' Invested in capital assets, net of related debt 73,307,573 (1,627,973) Restricted for: Debt service 249,257 - Emergencies 1,471,000 - ' Symposium 10,992 - Unrestricted 46,782,986 463,542 ' Total Net Assets 121,821,807 (1,164,432) The accompanying notes are. an integral part of these financial statements. C1 Tota I 44,009,171 1,108,072 765, 786 2,852,998 4,273,344 391,026 122, 742 695,149 263,117 252,943 67,968 5,000 1,930,000 794,827. 104,964,600 162,496, 743 1,632,551 336 186,653 437,148 208,537 2,852,998 466,545 777,837 436,705 655,057 1, 955, 000 30,330,000 1, 900, 000 41,839,367 71,679,600 249,257 1,471,000 10,992 47,246,527 120,657,376 Town of Vail, Colorado Statement of Activities For the Year Ended December 31, 2006 Program Revenues Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions Functions/Programs: Governmental Activities: General government 6,956,785 5,118,321 - - Public safety 6;992,458 374,859 99,044 7,500 Public works and transportation 13,453,196 4,216,682 800,956 2,716,642 Culture and recreation 3,816,421 231,123 37,532 107,770 Economic development 2,003,131 306,546 - - Interest on long-term debt 590,602 - Total Governmental Activities 33,812,593 10,247,531 937,532 2,831,912 Business-type activities: Dispatch services 1,867,510 1,417,405 498,031 - Housing 2,975,186 2,128,220 - - Total Business-type Activities 4,842,696 3,545,625 498,031 - Total 38,655,289 13,793,156 0 1,435,563 2,831,912 General Revenues: Taxes: Sales taxes Real estate transfer taxes Lodging taxes Property and specific ownership taxes Ski area lift ticket admissions tax Franchise taxes Cigarette taxes Investment earnings (Loss) on sale of capital assets Capital contributions, net Miscellaneous Transfers Total General Revenues and Transfers Change in Net Assets Net Assets -January 1 Net Assets -December 31 Net (Expense) Revenue and Changes in Net Assets Governmental Business-type (1,838,464) (1,838,464) (6, 511,055) (6,511,055) (5,718,916) (5,718,916) (3,439,996) (3,439,996) (1,696,585) (1,696,585) (590,602) (590,602) (19,795,618) (19,795,618) 47,926 47,926 (846,966) (846,966) (799,040) (799,040) (19,795,618) (799,040) (20,594,658) 18,573,451 - 18,573,451 6,239,744 - 6,239,744 1,917,259 - 1,917,259 2,937,245 - 2,937,245 2,975,098 - 2,975,098 862,220 - 862,220 80,738 - 80,738 2,138,791 142,713 2,281,504 (491,252) - (491,252) - 18,571 18,571 636,916 - 636,916 35,870,210 161,284 36,031,494 16,074,592 (637,757) 15,436,836 105,747,215 526,675 105,220,540 121,821,807 1,164,432 120,657,376 The accompanying notes are an integral part of these financial statements. C2 Town of Vail, Colorado ' Balance Sheets Govemmental Funds December 31, 2006 ' Capital ~ Real Estate Conference V il V General Projects Transfer Tax Center a Marketing ~ ail Local Marketing Vail Reinvestment Debt Total Service Governmental Fund Fund Fund Fund Fund District Authority Fund Funds Assets: Equity in pooled cash and investments 15,992,435 7,594,620 8,819,916 8,621,901 46,517 - - 249,257 41 324 645 ' Cash and cash equivalents -Unrestricted 17,885 502,647 22,148 , , 542 681 Receivables, net of allowance for uncollectible , accounts: Property taxes assessed 2,852,998 - - - - - - - 2 852 998 ' Other taxes Other governments 738,800 3,718 2,836,406 347,917 319,398 - _ 378,740 _ - 4,273,344 351,635 Employees 122,742 122 742 Other 258,677 51,123 5,913 - - - 4,685 - 320 398 Loans receivable - 1,960,000 - - - - - , - ~ 1,960 000 Prepaid expenses 168,145 ' 40,500 ~ , 208 645 Total Assets ~~ . ~ ~~ ~t~' ~~ ~ - ~~,~ , -- ~~ Liabilities and Fund Equity: Liabilities: - Accounts payable 596,952 311,908 - 96,413 - - 96,094 - - 1,101 367 Due to other governments 336 - - - ~ 25 000 , - 25 336 Retainage payable - 159,377 27,276 - _ - , - , - 186 653 ' Accrued payroll and related liabilities 387,656 2,177 5,199 , 395 032 Deferred revenue 122,618 100,000 59,950 , 282 568 Deferred property taxes not , collectible until subsequent year 2,852,998 - - _ _ _ _ 2 852 998 Deposits payable 761,787 - - - - - - - , , 761,787 ' Total Liabilities 4,722,347 573,462 188,838 96,094 25,000 5,605,741 Fund Balances: Reserved for: - Prepaid expenses 168,145 - - - - 40,500 - - 208 645 Loans receivable - 1,960,000 - - - - _ , 1,960,000 ' Retirement of bonded debt = 249,257 249,257 Symposium 10,992 10,992 Emergencies 1,413,000 - - - - 58,000 - - 1 471 000 Unreserved: , , Designated for housing loan program 200,000 - - - - - - ~ - 200 000 Designated for police seizures 94,342 - - - - - - , 94 342 ' Designated for repayment of working capital 37,000 37,000 Designated for subsequent years' expenditures 2,917,300 - 2,917,300 Undesignated 13,546,573 7,339,305 8,956,389 8,621,901 46,517 690,293 1,833 39,202,811 Total Fund Balances 15,433,051 12,216,605 8,956,389 8,621,901 46,517 825,793 ~ 1,833 249,257 46,351,345 Total Liabilities and Fund Balances 20,155,399 12,790,066 9,145,227 8,621,901 46,517 921,887 26,833 249 257 ' ~~ , ~ Amounts reported for govemmental activities in the Statement of Net Assets are different because: Capital assets used in govemmental activities are not financial resources and, there fore, are not reported in the funds. 82,426,196 Other long-term assets are not available forcur rent period expendit ures and therefo re are not reported in the funds , , . 860,238 Internal service funds are used by management to charge the costs of heavy equipm ent and health insurance to individu al funds. The assets and liabilities of the internal service funds are included i n governmental activities in the Statement of Net Assets . 5,287 994 ' Long-term liabilities, including bonds payable, in terest payable, and compensated ab sences, are not due and payable in the current period and, therefore, are not reported in [he funds. ~ (13,113,965) Net Assets of Govemmental Activities 121,821,807 f The accompanying notes are an integral part of these fnancial statements. C3 Town of Vail, Colorado Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2006 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 16,136,432 8,641,136 6,239,744 - - 1,917,259 - - 32,934,571 Permits and licenses 3,561,757 - - - 301,861 - - - 3,863,618 Intergovernmental revenue 1,477,270 1,739,052 26,580 - - - - - 3,242,903 Charges for services 5,880,574 194,205 231,123 - - - - - 6,305,902 Investment income 820,136 348,598 422,011 384,024 3,538 8,246 434 25,757 2,012,744 Miscellaneous 501,699 1,282,615 107,770 4,685 1,896, 769 Total Revenues 28,377,868 12,205,607 7,027,229 384,024 305,399 1,925,505 5,118 25,757 50,256,507 Expenditures: General government 6,596,987 - - - - - - 900 6,597,887 Public safety 6,534,712 - - - - - - - 6,534,712 Public works and transportation 9,625,653 10,001,994 - - - - - - 19,627,647 Culture and recreation 1,848,501 - 5,547,157 - - - - - 7,395,656 Economic development - - - - 295,093 1,796,607 4,489 - 2,096,189 Debt service: Principal -. - - - - - - 1,755,000 1,755,000 Interest 562,323 562,323 Total Expenditures 24,605,853 10,001,994 5,547,157 295,093 1,796,607 4,489 2,318,223 44,569,416 Excess (Deficiency) of Revenues Over Expenditures 3,772,015 2,203,613 1,480,072 384,024 10,306 128,898 629 (2,292,466) 5,687,091 Other Financing Sources (Uses): Transfers in - 2,000,000 12,772 - - - - 2,236,200 .4,248,972 Transfers (out) (2,012,772) (2,236,200) (4,248,972) Total Other Financing Sources (Uses) (2,012,772) (236,200) 12,772 - - - 2,236,200 - Net Change in Fund Balances 1,759,243 1,967,413 1,492,844 384,024 10,306 128,898 629 (56,266) 5,687,091 Fund Balances -January 1 13,673,808 10,249,192 7,463,545 8,237,877 36,211 696,895 1,203 305,522 40,664,253 Fund Balances-December 3l 15,433,051 12,216,605 8,956,389. 8,621,901 46,517 825,793 1,832 0 249,256 46,351,345 Net Change in Fund Balances of Governmental Funds 5,687,091 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. 9,152,200 Repayment of bond and lease principal are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Assets. This is the amount of principal repayments. 1,755,000 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. 233,673 Revenues in the Statement of Activities that do not provide current f nancial resources are not reported as revenues in the funds. 89,230 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. (101,120) In the Statement of Activities, only the gain or loss on sale and disposal of assets is reported, whereas, in the governmental funds, only the proceeds which increase current available resources is reported. This amount is the net book value of disposed assets. (741,482) Change in Net Assets of Governmental Activities 16,074,592 0 The accompanying notes are an integral part of these financial statements. C4 ' Town of Vail, Colorado Proprietary Funds Statement of Net Assets December 31, 2006 ' 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 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) Business-type Activities Enterprise Fund -' Enterprise Fund - Governmental Timber Ridge Dispatch Activities - Affordable Housing Services Internal Corporation Fund TOTAL Service Funds - 553,436 553,436 2,131,090 223,105 - 223,105 - 12,254 39,391 51,645 362,497 - - - 263,117 44,298 - 44,298 - 279,657 592,827 872,484 2,756,704 490,462 - 490,462 - 620,167 - 620,167 - 18,191,229 1,390,798 19,582,027 2,956,380 19,301,858 1,390,798 20,692,656 2,956,380 19,581,515 1,983,625 ,21,565,140 5,713,084 157,424 23,742 181,166 350,019 16,050 - 16,050 - 183,977 - 183,977 - 162,202 - 162,202 - 25,899 25,899 16,217 145,000 - 145,000 - 20,111 20,111 19,542 664,653 69,752 734,405 385,778 20,065,000 - 20,065,000 - 1,900,000 - 1,900,000 - - 30,167 30,167 29,312 21,965,000 30,167 21,995,167 29,312 22,629,653 99,919 22,729,572 415,090 (3,018,771) 1,390,798 (1,627,973) 2,956,380 29,367 492,908 463,541 2 341 614 , , 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, 2006 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 Income (Loss) Non-Operating Revenues (Expenses): Intergovernmental revenues Gain (loss) on disposal of assets Investment income Interest expense reimbursement -rate cap agreement Interest expense Financing fees Amortization of bond issue costs Total Non-0perating Revenues (Expenses) Income (Loss) Before Transfers and Capital Contributions Transfers, Net Capital Contributions, Net Change in Net Assets Net Assets (Deficit) -January 1 Net Assets (Deficit) -December 31 Business-type Activities Enterprise Fund - Enterprise Fund - Governmental Timber Ridge Dispatch Activities - Affordable Housing Services Internal Corporation Fund TOTAL Service Funds - 525,994 525,994 4,269,781 - 863,644 863,644 226,805 2,101,476 - 2,101,476 - 21,278 - 21,278 - - - - 409, 963 5,466 27,766 33,232 17,967 2,128,220 1,417,405 3,545,625 4,924,516 1,003,840 1,647,079 2,650,919 1,879,327 - - - 2,398,540 525,446 220,431 745,877 530,340 1,529,286 1,867,510 3,396,796 4,808,207 598,934 (450,106) 148,828 116,309 - 498, 031 498, 031 - - - - 17,433 15,212 29,320 44,532 99,932 98,181 - 98,181 - (1,094,633) - (1,094,633) - (273,263) - (273,263) - (78,004) - (78,004) - (1,332,507) 527,351 (805,156) 117,365 (733,573) 77,245 (656,328) 233,673 - 18, 571 18, 571 - (733,573) 95,816 (637,757) 233,673 (2,314,565) 1,787,890 (526,675) 5,064,321 (3,048,138) 1,883,706 (1,164,432) 5,297,994 The accompanying notes are an integral part of these financial statements. C6 u 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 Cash received on issuance of bonds and notes 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 Bond issuance costs paid 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 (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents • Beginning Cash and Cash Equivalents • Ending Cash and Cash Equivalents • Ending 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 Income (Loss) to Net Cash Provided (Used) 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 other liabilities Increase (decreases) in accrued wages and benefits Total Adjustments Net Cash Provided (Used) by Operating Activities Town of Vail, Colorado Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2006 Business•type Activities Enterprise Fund - Enterprise Fund - Governmental Timber Ridge Dispatch Activities - Affordable Housing Services Internal Corporation Fund TOTAL Service Funds - 525,994 525,994 4,269,781 2,127,701 - 2,127,701 - (1,500) - (1,500) - 26,085 1,024,849 1,050,934 366,519 (925,909) (355,406) (1,281,315) (3,520,687) - (1,285,627) __ (1,285,627) (803,648) 1,226,377 (90,190) 1,136,187 311,965 - 509,478 509,478 - 509,478 509,478 - - - - 20,286 200,000 - 200,000 - (140,000) - (140,000) - 970,280 - 970,280 - (970,280) - (970,280) - (949,140) - (949,140) - (264,118) - (264,118) - (70,000) - (70,000) - - (15,391) (15,391) (281,435) (1,223,258) _ (15,391) (1,238,649) (261,149) 15,212 29,320 44,532 99,931 15,212 29,320 44,532 99,931 18,331 433,217 451,548 150,747 695,236 120,219 815,455 1,980,343 - 553,436 553,436 2,131,090 223,105 - 223,105 - 490,462 - 490,462 - 598,934 (450,106) 148,828 116,309 525,446 220,431 745,877 530,340 (5,854) 133,439 127,585 (288,215) - - - 12,816 (28,779) - (28,779) 26,418 105,667 10,560 116,227 (85,954) 30,963 - 30,963 - - (4,514) (4,514) 251 627,443 359,916 987,359 195,656 1,226,377 (90,190) 1,136,187 311,965 Schedule of Non-Cash Investing, Capital and Financing Activities: Assets donated by Capital Projects Fund - 18,571 18,571 The accompanying notes are an integral part of these financial statements. C7 Town of Vail, Colorado Fiduciary Funds Statement of Fiduciary Net Assets December 31, 2006 Assets: Cash and investments -Restricted Loans to participants Total Assets Net Assets: Held in trust for pension benefits and other purposes Total Net Assets Deferred Pension Compensation Trust Plan 39,169,245 5,766,811 403,743 - 39,572,988 5,766,811 39,572,988 5,766,811 39,572,988 5,766,811 The accompanying notes are an integral part of these financial statements. C8 1 1 1 Town of Vail, Colorado Fiduciary Funds Statement of Changes in Fiduciary Net Assets For the Year Ended December 31, 2006 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 Deferred Pension Compensation Trust Plan 3,006,316 882,237 4,624,477 650,319 7, 630, 793 1, 532, 556 1, 264 9, 965 2,282,967 181,639 2,284,231 191,604 5, 346, 562 1, 340,952 34,226,426 4,425,859 39,572,988 5,766,811 The accompanying notes are an integral part of these financial statements. C9 NOTES TO THE FINANCIAL STATEMENTS Town of Vail, Colorado Notes to the Financial Statements December 31, 2006 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 d t fl ' o no con ict with or contradict GASB pronouncements. The more significant accounting policies established by GAAP used by the Town are discussed below. ' A. Reporting Entity T he 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 these 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. ~ o, Town of Vail, Colorado Notes to the Financial Statements December 31, 2006 (Continued) Summary of Significant Accounting Policies (continued) A. Reporting Entity (continued) 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 ("Board") comprised, as of March 2005, of members of the Town's management team. Previously, the Board was 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 $733,573 for 2006. This adds to the Corporation's $2,314,565 deficit net assets balance accumulated from inception of operations, July 17, 2003, to December 31, 2005. While the Corporation's revenues have increased in each year of operations, the Corporation has been unable to maximize rental revenues. Since the inception of operations, the Corporation has incurred mold remediation costs totaling $1,407,110, which represents a considerable portion of the Corporation's expenses. However, as of January 2007, all 198 units at the Project have been renovated. In addition to limitations on the Corporation's revenue base, 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. The Corporation's Rate Protection Agreement outlined in Note V.F. has limited the Corporation's effective interest rate on the 2003A Bonds to 4% per annum through July 31, 2006 and to 5.5% per annum through May 1, 2008. While short-term interest rates have stabilized in late 2006 slightly below the rate cap threshold, the Corporation's effective interest rate on the 2003A Bonds for 2007 and future periods appears likely to be at or near 5.5% per annum. Higher interest costs will have a significant adverse impact on the Corporation's cash flows. During 2006, the Corporation was advanced $200,000 by the Tovvn. This additional funding helped improve the Corporation's year-end liquidity position, although current liabilities continue to exceed current assets. D2 Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2006 ' (Continued) I. Summary of Significant Accounting Policies (continued) ' A. Reporting Entity (continued) 2. Timber Ridge Affordable Housing Corporation (continued) ' Since the Corporation's revenue base is limited, interest rates payable on the Corporation's debt have increased, 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. The Board considers the above factors significant to its future operations and is ' pursuing the sale and redevelopment of the Project. Although the Corporation, the Town and Corum Real Estate Group, Inc. ("Corum") entered into a Memorandum of Understanding ("MOU") in 2006 which outlined the roles of each party in working toward the disposition and redevelopment of the Project, the ' MOU expired in 2006 without the parties agreeing upon a formal plan to proceed with redevelopment. ~ The Corporation continues to pursue redevelopment of the Project. On March ' 20, 2007, the Town Council directed its staff to consider a proposal from Open Hospitality/Hillwood Capital Partners ("OHP")for redevelopment of the Project. Pursuant to that direction, a -pre-development agreement among the Town, the ' Corporation, and OHP was in draft form at the time of this report. The Town and the Corporation intend to pursue redevelopment of the Project with OHP to maintain the current number of required deed-restricted units, and to provide additional rental and "for sale" units. The intent of any such redevelopment is to id h ' prov e t e Corporation with sufficient funding to retire its outstanding obligations. The Board also projects that, under current master lease agreements, rental ' revenues will be sufficient to cover operating expenses and debt service for the next three to four years. However, the Board does not anticipate that required reserves will be reinstated during this period. 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. D3 Town of Vail, Colorado Notes to the Financial Statements December 31, 2006 (Continued) Summary of Significant Accounting Policies (continued) 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. 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 in 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 was established to account for the collection of a sales tax and a public accommodations tax which were specifically restricted for the financing of the construction and operations of a conference center in the Town. The conference center taxes were rescinded by election in November 2005. A TABOR election is required to release conference center funds for any purpose. D4 Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2006 ' (Continued) I. Summar of Si nific y g ant Accounting Policies, (continued) ' C. Fund Financial Statements (continued) 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. ' 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 u d t f se o account or 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 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 ' 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 lon t i ' g- erm econom c 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. D5 Town of Vail, Colorado Notes to the Financial Statements December 31, 2006 (Continued) Summary of Significant Accounting Policies (continued) D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (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 (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. 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 expense's 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. D6 0 0 Town of Vail, Colorado Notes to the Financial Statements December 31, 2006 (Continued) Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 3. Receivables Receivables are reported net of an allowance for uncollectible 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. 5. Inventory 1 r 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, 2006 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 v 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 balances" 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. D7 Town of Vail, Colorado Notes to the Financial Statements December 31, 2006 (Continued) Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 9. Capital Assets (continued) 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: 10. Deferred Revenue For governmental funds, deferred revenues arise when potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. For proprietary funds, deferred revenues arise when potential revenue is unearried. 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, 2006, the Town reported $1,731,249 of restricted net assets; comprised of $249,257 restricted for debt service payments, $10,992 was restricted for a symposium, and $1,471,000 was 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. D8 Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2006 ' (Continued) I. Summary of Significant Accounting Policies (continued) ' E. Financial Statement Accounts (continued) 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. F Si nifi t A ti P li i . g can ccoun ng o c es 1. 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. 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. ' 4 Restricted and U i t t d R . nres r c e esources ' 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. ~ os Town of Vail, Colorado Notes to the Financial Statements December 31, 2006 (Continued) Reconciliation of Government-wide and Fund Financial Statements A B Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-wide 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 $82,426,196 difference is related to property, plant and equipment of $116,642,753 less accumulated depreciation of $34,216,557. 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 $860,238 difference is bond issue costs of $433,388, less accumulated amortization of $258,728, pension forfeitures of $617,610, and interest receivable of $67,968. 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 $13,113,965 difference is related to bonds and notes payable of $12,075,000, accrued compensated absences of $992,630, and interest payable of $46,335. Explanation of Certain Differences Between the Governmental Fund Statement of Revenue, Expenditures and Changes in Fund Balances and the Government-wide 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 $9,152,200 difference are comprised of capital outlay of $12,001,237, less depreciation expense of $2,849,037. D10 r t ii Town of Vail, Colorado Notes to the Financial Statements December 31, 2006 (Continued) 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 Equipment Fund Change in Net Assets -Budget Basis $ 384,106 add/(less): Contribution from other fund - Change in compensated absences (2,094) Capitalized assets 281.,436 Depreciation (530,340) Net book value of disposed assets (2,854) Change in Net Assets -GAAP Basis $ 130,254 Dispatch Services Fund 274, 064 18, 571 8,221 15,391 (220,431) 95,816 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 2006. (1) For the 2006 budget year, prior to August 25, 2005, 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 2005 fiscal year, the Town Manager submitted to the Town Council a budget and accompanying message. (3) Prior to December 15, 2005, 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, 2006 (Continued) Stewardship, Compliance, and Accountability (continued) A. Budgetary Information (continued) Taxes levied in one year are collected in the succeeding year. Thus, taxes certified in 2005 were collected in 2006 and taxes certified in 2006 will be collected in 2007. Taxes are due on January 1 in the year of collection; however, they may be paid in either one installment (no later than April 30) or two equal installments (not later than February 28 and June 15) without interest or penalty. Taxes that are not paid within the prescribed time bear interest at the rate of 1 % per month until paid. Unpaid amounts and the accrued interest thereon become delinquent on June 16. 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. B. 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 2006. (1) On or before September 30, 2005, 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 20, 2005. (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, 2005. The Board adopted the 2006 budget on November 1, 2005. (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. C. Deficit Net Assets -Timber Ridge Affordable Housing Corporation The Corporation had a deficit net assets balance at December 31, 2006 of $3,048,138. D12 Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2006 (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..Due to the Trustee's release of funds pursuant to these provisions in 2003 and 2004 (without reimbursement by the Corporation), the balance at December 31, 2006 in the Bond ' Reserve Fund for the 2003A Bonds was $576,516 less than the bond reserve 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. At December 31, 2006, the balance in the Replacement Reserve account was $190,665 less than required by the Reimbursement Agreement. Th e 2003A Indenture and 20036 Indenture each impose financial ratios relating to debt service coverage. At December 31, 2006, the Corporation did not meet the minimum required debt service coverage ratios under the terms of the 2003A Indenture or the 20036 indenture. E. 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 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. E t f f xcep or re inancing 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 economic 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, 2006 fund balance in the General Fund for this purpose in the amount of $1,413,000 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, 2006 (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 1.993 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 $58,000 of its fund balance for emergencies, which is the approximate required reserve at December 31, 2006. 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 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 including 2a7-like 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, 2006 (Continued) IV. Detailed Notes on all Funds (continued) ' A. Deposits and Investments (continued) The Town's deposits and certificates of deposit are entirely covered by federal depository insurance ("FDIC") or by collateral held under Colorado Public Deposit Protection Act ' ("PDPA"). The FDIC insures the first $100,000 of the Town's deposits at each financial institution. Deposit balances in excess of $100,000 are collateralized as required by PDPA. As of December 31, 2006, the bank balance of the Town's deposits was ' $6,110,61.5. At December 31, 2006, the Town had the following investments and maturities: Carrying ' Type Rating Maturities Value Deposits: Cash on hand $ 17,885 ' Demand deposits 3,947,714 Certificates of deposit <1 year 1,161,161 Certificates of deposit <5 years 542,581 Total deposits $ 5;669,341 ' Investments: US Agencies - FHLM, FHLB, FNMA AAA <1 year - $ 1,127,318 US Agencies - FHLMC, FHLB, FNMA, FFCB AAA <5 years 1,874,279 US Agencies -FNMA, FC Not rated <5 years 1,035,303 Mortgage pools AAA N/A 1,862,586 Colotrust AAAm N/A 33,696,756 Pension and Section 457 investments N/A N/A 45,553,666 ' Total investments $ 85,149,908 Total deposits and investments ' Reconciliation to Statement of Net Assets: Equity in pooled cash and investments $ 44,009,336 Cash and cash equivalents -Unrestricted 765,785 Cash and cash equivalents -Restricted 1,108,072 Fiduciary funds 44,936,056 Total 90,819,249 ' Pools. The Town has invested in the Colorado Government Liquid Asset Trust ("Colotrust"), which is an investment vehicle established for local government entities in Colorado to pool surplus funds. They operate similarly to a money market fund and each ' share is equal in value to $1. Investments of the trusts consist of U.S. Treasury bills, notes and note strips, and repurchase agreements collateralized by U.S. Treasury securities. Colotrust is rated AAAm by Standard and Poor's. Interest Rate Risk. As a means of limiting its exposure to interest rate risk, the Town diversifies its investments by security type and institution, and limits holdings in any one type of investment with any one issuer. The Town coordinates its investments maturities ' to closely match cash flow needs and restricts the maximum investment term to less than five years from the purchase date. As a result of the limited length of maturities the Town has limited its interest rate risk. D15 Town of Vail, Colorado Notes to the Financial Statements December 31, 2006 (Continued) IV. Detailed Notes on all Funds (continued) A. Cash and Investments (continued) Credit Risk. The Town's general investment policy is to apply the prudent-person rule; investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and, in general, avoid speculative investments. Concentration of Credit Risk. The Town diversifies its investments by security type and institution. Credit quality distribution for investments, with credit exposure as a percentage of total investments are as follows at year-end: Investment Type Rating Percentage Colotrust Not rated 85% 1 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 Town of Vail, Colorado Notes to the Financial Statements December 31, 2006 (Continued) ' IV. Detailed Notes on all Funds (continued) ' B. Receivables Receivables as of year-end for the Town's funds, including applicable allowances for uncollectible accounts, are as follows: Capital Real Estate Conference Vail Local General Projects Transfer Center Marketing ' Fund Fund Tax Fund Fund District Receivables: Property taxes $ 2,852,998 - - - - Other taxes 738,800 2,836,406 319,398 378,740 ' Other governments 3,718 347,917 ~ Employees 122,742 - - - - ' Other Gross Receivables 259,677 51,123 3,977,935 3,235,446 5,913 325,311 378,740 Less: Allowance for uricollectibles (1,000) - - - - Net Receivables $ 3,976,935 3,235,446 325,311 - 378,740 Vail Heavy Rein- Equip- Dispatch Health ' Timber vestment ment Services Insurance Ridge Authority Fund Fund Fund Total Receivables: Property taxes - $ - - 2,852,998 Other taxes - - - - - 4,273,344 Other governments - - - 39,391 - 391,026 Employees - - - - 122,742 Other 12,254 4,685 42,001 ~ 320,496 696,149 Gross Receivables 12,254 4,685 42,001 39,391 320,496 8,336,259 ' Less: Allowance for uncollectibles - (1,000) Net Receivables $ 12,254 4,685 42,001 39,391 320,496 8,335,259 D17 Town of Vail, Colorado Notes to the Financial Statements December 31, 2006 (Continued) IV. Detailed Notes on all Funds (continued) B. Receivables (continued) 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 $3,135,566 and is comprised of the following: Capital General Projects RETT Fund Fund Fund Property taxes assessed, but not collectible until 2007 $ 2,852,998 - - Otherdeferred revenues: Business licenses 34,193 - - Librarygrants 80,870 - - Police programs 7,555 - - Construction projects - 100,000 59,950 2,975,616 100,000 59,950 Deferred revenue of $183,977-for business-type activities is related to prepaid rent from tenants of the Corporation's rental property. Deferred revenue for construction projects is comprised of $100,000 collected from a developer and $59,950 of contributions collected for the Seibert Circle project. The Town had not begun construction on these projects as of December 31, 2006. Accordingly, revenue will be deferred until the year in which the money will be spent on construction. D18 IV. Town of Vail, Colorado Notes to the Financial Statements December 31, 2006 (Continued) Detailed Notes on all Funds (continued) C. Capital Assets Capital asset activity for the year ended December 31, 2006 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated: Land $ 22,324,561 256,403 - 22,5g0,g64 Total Capital Assets, Not Being Depreciated 22,324,561 256,403 - 22,580,964 Capital Assets, Being Depreciated: Buildings and improvements Infrastructure and improvements Equipment and vehicles Total Capital Assets Being Depreciated Less Accumulated Depreciation For: Buildings and improvements Infrastructure and improvements Equipment and vehicles Total Accumulated Depreciation Total Capital Assets, Being Depreciated, Net Governmental Activities Capital Assets, Net Business-type Activities Capital Assets, Not Being Depreciated: Land Total Capital Assets, Not Being Depreciated ' Capital Assets, Being Depreciated: Buildings and improvements Equipment ' Total Capital Assets Being Depreciated Less Accumulated Depreciation For: Buildings and improvements Equipment Total Accumulated Depreciation Total Capital Assets, Being Deprecated, Net ' Business-type Activities Capital Assets, Net 54,530,932 384,903 (953,740) 53,962,094 19,469,144 8,610,722 28,079,866 18,908,556 3,030,645 (1,192,708) 20,746,494 92,908,632 12,026,270 (2,146,448) 102,788,453 (25,029,159) (1,497,066) 212,258 (26,313,967) (755,769) (455,614) (1,211,383) (12,224,652) (1,426,697) 1,189,854 (12,461,496) (38,009,580) (3,379,377) 1,402,112 (39,986,845) 54,899,052 8,646,893 (744,336) 62,801,608 $ 77,223,613 8,903,296 (744,336) 85,382,573 $ 4,399,500 - - 4,399,500 4,399,500 - - 4,399,500 15,592,145 15,592,145 2,384,769 33,961 - 2,418,730 17,976,914 33,961 - 18,010,875 (1,279,077) (520,991) (1,800,068) (803,394) (224,887) (1,028,281) (2,082,471) (745,877) - (2,828,348) 15,894,443 (711,916) - 15,182,527 $ 20,293,943 (711,916) - 19,582,027 D19 Town of Vail, Colorado Notes to the Financial Statements December 31, 2006 (Continued) IV. Detailed Notes on all Funds (continued) C. Capital Assets (continued) Depreciation expense was charged to functions of the Town as follows: Governmental activities: General government Public safety Public works and transportation Culture and recreation Economic development Total depreciation expense -Governmental activities Business-type activities: $ 285,880 336,441 2,220,295 536, 761 $ 3,379,377 Dispatch services $ 220,431 Housing 525,446 Total depreciation expense -Business-type activities $ 745,877 Depreciation on fixed assets is recorded on a straight-line basis over 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, 2006, the Town had $6,874,808 of fully depreciated assets. D. 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. E. Interfund Receivables, Payables, and Transfers There were no interfund balances at December 31, 2006. Interfund transfers during the year ended December 31, 2006 were as follows: Transferred to: Transferred from: Amount Puraose Real Estate Transfer Tax Fund General Fund $ 12,772 Funding for AIPP program Capital Projects Fund General Fund 2,000,000 Funding for capital acquisition Debt Service Fund Capital Projects Fund 2,236,200 Transfer sales tax for debt service payment D20 Town of Vail, Colorado I Notes to the Financial Statements December 31, 2006 (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 Talc-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 19988 The Town issued $735,000 of insured Taxable Sales Tax Revenue Refunding ' Bonds (the "19986 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 19986 Bonds are revenue obligations of the Town payable solely from the ' Town's 4% sales tax. The bonds are secured by a lien, but not an exclusive lien, on the sales tax. ' The 19988 Bonds are not subject to redemption prior to maturity. 3. Sales Tax Revenue Refunding Bonds, Series 20026 ' The Town issued $5,570,000 of Sales Tax Revenue Refunding Bonds dated September 1, 2002 (the "20026 Bonds"). Proceeds from the 20026 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 20026 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. D21 1 Town of Vail, Colorado Notes to the Financial Statements December 31, 2006 (Continued) IV Detailed Notes on all Funds (continued) F. Long-term Liabilities -Governmental Activities (continued) 3. Sales Tax Revenue Refunding Bonds, Series 20028 (continued) 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: 1. 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 outstanding 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, 2006 (Continued) 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:. L • 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: Len4th of Rate Period No-Call Period Greater than 12 years 10 years from the Rate Change Date Greater than 4 years, but Until 2 years prior to the less than 12 years end of the Rate Period Less than or equal to Length of the Rate Period 4 years Redemption Price 101%, declining 0.5% per 6 months to 100% 100% 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: Len4th 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 Less than or equal to 4 years Until 2 years prior to Maturity Term to Maturity 100% Not subject to optional redemption From the date of issuance through December 31, 2006, the 2003A Bonds have been in Weekly Mode, with interest rates set by the Remarketing Agent. Interest rates on the 2003A Bonds ranged from 4.49% - 5.50% per annum in 2006 and from 2.52% to 4.49% per annum in 2005. At December 31, 2006, the interest rate on the 2003A Bonds was 5.45% per annum (4.49% at December 31, 2005); however, the Corporation's effective interest rate has been limited to 4% through August 1, 2006 and 5.5% thereafter, as provided by the Rate Protection Agreement discussed in Note IV.J. Total interest expense for 2006 incurred in respect of the 2003A Bonds was $986,433. D23 Town of Vail, Colorado Notes to the Financial Statements December 31, 2006 (Continued) IV. Detailed Notes on all Funds (continued) G. Long-term Liabilities -Business-type Activities (continued) 2. Subordinate Housing Facilities Revenue Bonds, Series 20036 ("20036 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 20036 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 2006, the Corporation incurred interest expense totaling $82,083 in respect of the 20036 Bonds. 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. 3. Promissory Note -Town of Vail 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. During 2005 and 2006, the Town made additional advances of $700,000 and $200,000, respectively, to the Corporation upon execution. of additional promissory notes. At December 31, 2006, the balance outstanding under the terms of these promissory notes (collectively, the "Town Notes") was $1,900,000. The Town Notes, which bear interest at the rate of 1.5% per annum, mature December 1, 2032. The Town Notes are 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 20036 Bonds. The Town Notes are 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 Notes may be repaid by the Corporation at any time without penalty. D24 Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2006 ' (Continued) IV. Detailed Notes on II F a unds (continued) ' G. Long-term Liabilities -Business-type Activities (continued) 3. Promissory Note -Town of Vail (the "Town Notes") (continued) ' In the event that the a shortfall arises in the Bond Reserve Funds (as defined in the 2003A and 20036 Indentures) for the 2003A Bonds and/or the 20038 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 Notes. 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. Th C e orporation incurred interest expense totaling $26,116 during 2006 in respect of the Town Notes. At December 31, 2006, the Corporation had accrued a total of $67,968 in interest payable to the Town under the terms of the Town Notes. H. Long-term Liabilities -Compensated Absences r 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, 2006 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 $2,435,508 at December 31, 2006 has not been fl t d i th T ' re ec e n e own s financial statements as the amount is partially insured by an independent insurance company and the amounts are not payable at termination. D25 r Town of Vail, Colorado Notes to the Financial Statements December 31, 2006 (Continued) IV. Detailed Notes on all Funds (continued) I. Long-term Liabilities -Activity and Debt Service Schedules Long-term liability activity for the year ended December 31, 2006 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance ~ One Year Govemmental Activities: General Obligation Bonds: Tax-Exempt Refunding Bonds, Series 1998A 8,760,000 - - 8,760,000 985,000 Taxable Refunding Bonds, Series 19988 735,000 - (360,000) 375,000 375,000 Refunding Bonds, Series 2002B 4,335,000 - (1,395,000) 2,940,000 450,000 Compensated absences 922,662 118,822 - 1,041,484 416,594 Total Governmental Activities Long-term Liabilities $ 14,752,662 118,822 (1,755,000) 13,116,484 2,226,594 Business-type Activities: Housing Facilities Revenue Bonds: Adjustable Rate, Series 2003A $ 19,025,000 - - 19,025,000 - Subordinated, Series 20036 1,325,000 - (140,000) 1,185,000 145,000 Promissory note 1,700,000 200,000 - 1,900,000 - Compensatedabsences 58,499 - (8,221) 50,278 20,111 Total Business-type Activities Long-term Liabilities $ 22,108,499 200,000 (148,221) 22,160,278 165,111 D26 Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2006 (Continued) IV. .Detailed Notes on all Funds (continued) ' I. Long-term Liabilities -Activity and Debt Schedules (continued) Debt service requirements at December 31, 2006 were as follows: ' Principal Interest Total Governmental Activities: 2007 1,810,000 512,099 2,322,099 ' 2008 ,1,890,000 432,396 2,322,396 2009 1, 965, 000 355,165 2, 320,165 2010 2,045,000 272,181 2, 317,181 2011 2,140,000 184,457 2,324,457 2012 2, 225, 000 91, 925 2, 316, 925 Total Governmental Activities 12,075,000 1,848,223 13,923,223 ' Business-type Activities 2007 145,000 1,110,926 1,255,926 2008 155,000 1,101,863 1,256,863 ' 2009 550, 000 1, 092,176 1,642,176 2010 585,000 1,061,040 1,646,040 2011 635,000 1,027,918 1,662,918 2012-2016 3,050,000 4,598,375 7,648,375 2017-2021 3,445,000 3,756,413 7,201,413 2022-2026 4,475,000 2,710,831 7,185,831 2027-2031 5,815,000 1,352,964 7,167,964 ' 2032 3,255,000 814,848 4,069,848 Total Business-type Activities 22,110,000 18,627,354 40,737,354 Included in debt service requirements for business-type activities above are principal and ' interest payments due to the Town in the amounts of $1,900,000 and $741,000 respectively. ' J. Credit Facility and Reimbursement Agreement -Timber Ridge Affordable Housing Corporation ' Certain capitalized terms are defined in the 2003A Bonds Indenture. I i n connect on 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 $182,432 may be drawn to pay up to 35 days' accrued interest on the 2003A Bonds at a maximum rate of 10% per annum. Available credit under the Credit Facility will be permanently and proportionately reduced ' upon notice from the Trustee of redemption of less than all of the 2003A Bonds. D27 Town of Vail, Colorado Notes to the Financial Statements December 31, 2006 (Continued) IV Detailed Notes on all Funds (continued) J. Credit Facility and Reimbursement Agreement -Timber Ridge Affordable Housing Corporation (continued) The Credit Facility expires at the earlier of: a. July 17, 2008, although it automatically renews for successive one-year terms (unless U.$. 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 totaling $243,427 during 2006 for U.S. Bank in respect of stand-by fees for the Credit Facility.. During 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~as Bond Issue Costs. During 2006, the Corporation drew and repaid $970,280 of advances on the Credit Facility. At December 31, 2006, 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 1/12`h 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. . 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. D28 Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2006 (Continued) IV. Detailed Notes on all Funds contin ( ued) ' 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. The Town established these qualified money purchase pension l d I ' p ans un er nternal 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 . D29 Town of Vail, Colorado Notes to the Financial Statements December 31, 2006 (Continued) V. Other Information (continued) A. Pension Plans (continued) B. C. The annual pension cost is the Town's contributions less forfeitures from the prior year. The plans' invested assets at December 31, 2006 of $39,169,245 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 Board. The Retirement Board determines investment options made available to participants, in adherence with an adopted investment policy statement. The total amount of the Town's 2006 covered payroll was $13,909,968 of which $11,222,534 was for permanent employees and $2,687,434 was for seasonal staff. Total 2006 payroll for all Town employees was $13,588,434. Retirement Savings Plan -Deferred Compensation Plan - IRC section 457 The Town offers its employees a deferred compensation plan ("457 Plan") created in accordance with Internal Revenue Code section 457. The 457 Plan, available 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 unforeseeable 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. 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 $5,766,811 at December 31, 2006. 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 Internal Revenue Code Section 457 Deferred Compensation Plans, the 457 Plan has been included in these financial statements as an expendable trust fund. 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. D30 u Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2006 (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 1. 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, 2006. 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, 2006. 3. Mold Remediation -Timber Ridge Affordable Housing Corporation Beginning in 2003, the Corporation performed remediation and other precautionary renovations to the Project to alleviate potential and identified mold problems in certain rental units. As of December 31, 2006, all 198 units have been renovated. For 2006, the Corporation incurred mold remediation costs t t li $412 48 ' o a ng , 3. Costs of further remediation and renovations will be charged to operations in future periods as the extent of such additional repairs had not been determined at December 31, 2006. ' 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. Effective August 1, 2006, the Rate Protection Agreement was revised in that SMBC agreed to limit the Corporation's interest payable on the 2003A Bonds to 5.5% per annum through May 1, 2008. SMBC was paid a $70,000 fee in 2006 for this service, which has been capitalized as Bond Issue Costs. During 2006, the Corporation was reimbursed a total of $98,181 by SMBC under the terms of the Rate Protection Agreement to limit the Corporation's interest payable on the 2003A Bonds to 4% per annum. D31 V Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2006 (Continued) ' Other Information (continued) 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 $134,208 for its services in 2006. 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 $19,173 were incurred by the District during 2006 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, 20038 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. D32 ' 1 ' REQUIRED SUPPLEMENTARY INFORMATION 0 Town of Vail, Colorado General Fund Schedule of Revenues, Expenditures and Change in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2006 With Comparative Actual Amounts For the Year Ended December 31, 2005 2006 2005 Final Budget Variance Original Final Positive Budget Budget Actual • (Negative) Actual Revenues: Taxes: General sales taxes 9,345,660 9,345,660 9,345,660 - 8,796,600 Property and ownership taxes 2,914,000 2,929,068 2,931,347 .2,279 2,627,877 Ski area lift ticket admissions tax 2,620,000 2,800,000 2,975,098 175,098 2,777,698 Franchise tax 790,000 790,000 862,220 72,220 842,529 Penalties and interest on delinquent taxes 29,000 29,000 22,108 (6,892) 22,014 Total -Taxes 15,698,660 15,893,728 16,136,432 242,704 15,066,718 Permits and Licenses: Construction fees 1,856,775 3,461,775 3,481,989 20,214 2,466,051 Contractors' licenses 32,000 32,000 30,993 (1,007) 33,484 Other permits and licenses 47,800 47,800 48,774 974 52,935 Total -Permits and Licenses 1,936,575 3,541,575 3,561,757 20,182 2,552,470 Intergovernmental: County sales tax 495,500 545,500 570,445 24,945 532,291 County road and bridge 450,000 485,000 488,095 3,095 437,547 Additional motor vehicle registration fees 26,000 26,000 25,673 (327) 25,020 Cigarette tax 75,000 75,000 80,738 5,738 74,418 Highway users tax 175,000 175,000 202,188 27,188 182,654 State health inspection 12,500 12,500 11,748 (752) 14,685 Other county revenues - - - 29 797 Other state sources - 6,639 400 (6,239) 52,999 Federal sources 34,684 67,136 97,983 30,847 51,657 Total-Intergovernmental 1,268,684 1,392,775 1,477,270 84,495 1,401,068 Charges for Services: Management fees -Vail Local Marketing District 16,400 16,400 22,172 5,772 17,625 Internal service charge 548,657 335,657 356,841 21,184 545,732 Out of district fire response 15,000 15,000 40,535 25,535 64,343 Alarm monitoring fees 55,000 55,000 49,188 (5,812) 52,709 Parking 3,248,000 3,918,000 4,007,334 89,334 3,651,538 Fines and forfeitures 195,000 248,000 286,197 38,197 215,105 Rents 765,913 784,096 827,280 43,184 780,214 Other charges, services; and sales 268,775 318,775 291,027 (27,748) 256,456 Total -Charges for Services 5,112,745 5,690,928 5,880,574 189,646 5,583,722 Other Revenues: Earnings on investments 150,000 150,000 820,136 670,136 428,851 Other 261,550 241,004 501,699 260,695 538,808 Total -Other Revenues 411,550 391,004 1,321,835 930,831 967,659 Total Revenues 24,428,214 26,910,010 28,377,868 1,467,858 25,571,637 (continued) The accompanying notes are an integral part of these financial statements. E1 Town of Vail, Colorado General Fund Schedule of Revenues, Expenditures and Change in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2006 With Comparative Actual Amounts For the Year Ended December 31, 2005 (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 (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Transfers out Transfers in Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance -January 1 Fund Balance -December 31 2006 2005 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual 1,199,971 1,234,495 1,171,124 63,371 951,828 2,967,035 3,056,141 2,944,160 111,981 2,713,779 2,061,200 2,853,200 2,481,703 371,497 1,883,625 6,228,206 7,143,836 6,596,987 546,849 5,549,232 4,690,951 4,737,323 4,451,637 285,686 4,364,169 1,994,666 2,065,166 2,083,075 (17,909) 1,945,426 6,685,617 6,802,489 6,534,712 267,777 6,309,595 3,050,492 3,037,129 3,020,483 16,646 2,956,645 3,189,564 3,281,464 3,176,855 104,609 3,009,848 746,187 759,987 705,679 54,308 675,843 2,861,858 2,874,858 2,722,637 152,221 2,669,800 9,848,101 9,953,438 9,625,653 327,785 9,312,136 954,650 1,032,460 986,792 45,668 831,472 211,020 211,020 196,854 14,166 192,735 765,276 766,228 664,856 101,372 658,886 1,930,946 2,009,708 1,848,501 161,207 1,683,093 24,692,870 25,909,471 24,605,853 1,303,618 22,854,056 (264,656) 1,000,539 3,772,015 2,771,476 2,717,581 - (2,009,378) (2,012,772) (3,394) (126,687) - - 29,300 - (2,009,378) (2,012,772) (3,394) (97,387) (264,656) (1,008,839) 1,759,243 2,768,082 2,620,194 11,533,797 13,673,808 13,673,808 - 11,053,614 11,269,141 .12,664,969 15,433,051 2, 768,082 13,673,808 e o 0 0 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, Ex penditures and Change in Fund Bala nce Budget (GAAP Basis) and Actual ' For the Year Ended December 31, 2006 With Comparative Actual Amo unts For the Year Ended December 31, 2005 ' 2006 2005 Final Budget Variance ' Original Budget Final Budget Actual Positive (Negative) Actual Revenues: Taxes: ' Sales tax Intergovernmental: 6,230,440 7,854,340 8,641,136 786,796 7,994,557 County revenues 250,000 500,000 (500,000) CDOT grants _ _ _ _ _ Federal grants 811,800 2,191,832 1,739,052 (452,780) 19,500 Total -Intergovernmental 1,061,800 2,691,832 1,739,052 (952,780) 19,500 Charges for Services: Leases -Vail Commons 150,000 190,000 179,910 (10,090) 188,160 Resale fees 14,295 14,295 14,866 ' Total -Charges for Services 150,000 190,000 194,205 4,205 203,026 Other: Earnings on investments 19,000 19,000 348,598 329,598 158,636 Construction fees - 85,000 85,000 - - ' Project reimbursements/shared costs 27,000 1,325,429 977,590 (347,839) 2,099,960 Other 220,000 220,025 25 224,317 Total -Other 46,000 1,649,429 1,631,214 (18,215) 2,482,913 Total Revenues 7,488,240 12,385,601 12,205,607 (179,994) 10,699,996 Expenditures: Public Works: ' Capital projects and acquisition 8,109,240 17,507,219 10,001,994 7,505,225 6,291,209 Excess (Deficiency) of Revenues Over Expenditures (621,000) (5,121,618) 2,203,613 7,325,231 4,408,787 Other Financing Sources (Uses): Sale of assets - - - - 14,945 Transfers in - 2,000,000 2,000;000 - 86,010 Transfers (out) (2,236,200) (2,236,200) (2,236,200) (2,451,454) ' Total Other Financing Sources (Uses) (2,236,200) (236,200) (236,200) _ (2,350,499) Net Change in Fund Balance (2,857,200) (5,357,818) 1,967,413 7,325,231 2,058,288 ' Fund Balance -January 1 4,847,985 8,509,192 10,249,192 1,740,000 8,190,904 Fund Balance -December 31 1,990,785 ~~~ 3,151,374 O 12,216,605 O 9,065,231 ~~ 10,249,192 O D The.accompanying notes are an integral part of these financial statements. E3 1 Town of Vail, Colorado Special Revenue Funds Real Estate Transfer Tax Fund Schedule of Revenues, Expenditures and Change in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2006 With Comparative Actual Amounts For the Year Ended December 31, 2005 2006 Revenues: Taxes: Real estate transfer tax Intergovernmental Revenue: Lottery revenue Other county revenue Other state grants Total -Intergovernmental Revenue Charges for Services: Recreation amenities fee Land lease to Vail Recreation District Total -Charges for Services. Other: Project reimbursements Earnings on investments Other Total -Other Total Revenues Expenditures: Culture and Recreation: Project management Park maintenance Art in public places Capital projects Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses): Transfers in Transfers (out) Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance -January 1 Fund Balance -December 31 Original Final Budget Budget 2005 Final Budget Variance ' Positive Actual (Negative) Actual 6,175,000 5,500,000 6,239,744 . 739,744 6,206,058 20,000 20,000 26,580 6,580 21,987 - - - - 12,000 - - - - 28,000 20,000 20,000 26,580 6,580 61,987 125,000 125,000 117,502 (7,499) 370,157 119,435 119,435 113,622 (5,813) 109,462 244,435 244,435 231,123 (13,312) 479,619 - 202,034 102,060 (99,974) 199,769 56,000 56,000 422,011 366,011 241,915 - 32,500 5,710 (26,790) 1,320 56,000 290,534 529,782 239,248 443,004 6,495,435 6,054,969 7,027,229 972,260 7,190,668 308,750 275,000 296,290 (21,290) 386,479 1,213,768 1,213,768 1,075,523 138,245 837,919 58,732 58,732 59,748 (1,016) 55,127 4,736,317 7,536,386 4,115,595 3,420,791 4,168;346 6,317,567 9,083,886 5,547,157 3,536,729 5,447,871 177,868 (3,028,917) 1,480,072 4,508,989 1,742,797 - 9,378 12,772 3,394 38,197 - 9,378 12,772 3,394 38,197 177,868 (3,019,539) 1,492,844 4,512,383 1,780,994 4,689,040 7,463,545 7,463,545 - 5,682,551 4,866,908 4,444,006 8,956,389 4,512,383 7,463,545 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 Change in Fund Balance ' Budget (GAAP Basis) and Actual For the Year Ended December 31, 2006 With Comparative Actual Amounts For the Year Ended December 31, 2005 ' 2006 2005 Final Budget Variance Original Final- Positive ' Budget Budget Actual (Negative) Actual Revenues: Taxes: Sales tax - - - - 1,975,124 ' Lodging tax = - 1,833,626 Penalties and interest on delinquent taxes _ = 14,471 Total -Taxes - - - - 3,823,221 Other: ' Earnings on investments 91,000 275,000 384,024 109,024 207,920 Total Revenues 91,000 275,000 384,024 109,024 4,031,141 Expenditures: ' Economic Development: Professional fees - - - - 191,161 General supplies - _ _ _ _ Capital outlay - _ - 1,293,437 Total Expenditures _ 1,484,598 Net Change in Fund Balance 91,000 275,000 384,024 109,024 2,546,543 ' Fund Balance -January 1 7,684,944 8,237,877 8,237,877 - 5,691,334 Fund Balance -December 31 7,775,944 8,512,877 8,621,901 109,024 8,237,877 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 Change in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2006 With Comparative Actual Amounts For the Year Ended December 31, 2005 Revenues: Permits and Licenses: Business licenses Other: Earnings on investments Total Revenues Expenditures: Economic Development: Commission on Special Events Administration fee Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Fund Balance -January 1 Fund Balance -December 31 2006 2005 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual 304,000 304,000 301,861 (2,139) 302,854 - - 3,538 3,538 2,410 304,000 304,000 305,399 1,399 305,264 280,000 280,000 280,000 - 279,500 15,200 15,200 15,093 107 15,143 295,200 295,200 295,093 107 294,643 8,800 8,800 10,306 1,506 10,621 32,030 36,211 36,211 - 25,590 40,830 45,011 46,517 1,506 36,211 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 Change in Fund Balance Budget (GAAP Basis) and Actual ' For the Year Ended December 31, 2006 With Comparative Actual Amounts For the Year Ended December 31, 2005 2006 2005 Final Budget Variance ' Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Lodging tax 1,640,000 1,640,000 1,917,259 277,259 1,711,743 ' Other: Earnings on investments - - 8,246 8,246 6,541 Miscellaneous - _ _ _ _ Total -Other - - 8,246 8,246 6,541 ' Total Revenues .1,640,000 1,640,000 1,925,505 285,505 1,718,284 Expenditures: ' Economic Development: Destination 131,347 Front Range 306,640 ' 344,077 358,246 (14,169) 220,291 Groups and meetings 315,430 315,430 308,105 7,325 271,517 Marketing 539,600 584,600 494,579 90,021 358,679 ' Purchased services 478,060 483,060 535,677 (52,617) 428,454 Repayment to Town - 100,000 100,000 - 100,000 Total Expenditures 1,639,730 1,827,167 1,796,607 30,560 1,510,288 Excess (Deficiency) of Revenues Over Expenditures 270 (187,167) 128,898 285,472 207,996 Fund Balance -January 1 500,227 500,227 696,895 196,668 488,899 ' Fund Balance -December 31 500,497 313,060 0 0 825,793 .482,140 696,895 0 0 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 Change in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2006 With Comparative Actual Amounts For the Year Ended December 31, 2005 2006 Revenues• Other: Earnings on investments Shared costs/project reimbursements Total Revenues Expenditures: Economic Development: Administration Professional fees Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Fund Balance -January 1 Fund Balance -December 31 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) 2005 Actual - - 434 434 206- - 26,250 4,685 (21,565) 30,379 - 26,250 5,118 (21,132) 30,585 - - - - 1,447 5,000 30,000 4,489 25,511 29,187 5,000 30,000 4,489 25,511 30,634 (5,000) (3,750) 629 4,379 (49) 26,101 26,203 1,203 (25,000) 1,252 21,101 e 22,453 e 1,832 o (20,621) 0 1,203 0 The accompanying notes are an integral part of these financial statements. E8 fl 1 Town of Vail, Colorado Debt Service Fund Schedule of Revenues, Expenditures and Change in Fund Balance For the Year Ended December 31, 2006 With Comparative Actual Amounts For the Year Ended December 31, 2005 2006 2005 Original and Variance Final Positive Budget Actual (Negative) Actual Revenues: Other: Earnings 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 Balance -January 1 Fund Balance -December 31 -_ 25,757 25,757 17,527 25,757 25,757 17,527 1,755,000 1,755,000 - 1,695,000 562,324 562,323 1 .620,299 2,500 900 1,600 1,098 2,319,824 2,318,223 1,601 2,316,397 (2,319,824) (2,292,466) 27,358 (2,298,870) 2,236,200 2,236,200 - 2,422,154 (83,624) (56,266) 27,358 123,284 .286,593 305,522 - 182,238 202,969 249,256 27,358 305,522 The accompanying notes are an integral part of these financial statements. F1 Town of Vail, Colorado Enterprise Furid Timber Ridge Affordable Housing Corporation Schedule of Revenues, Expenses, Transfers and Change in Fund Net Assets Budget (GAAP Basis) and Actual For the Year Ended December 31, 2006 With Comparative Actual Amounts For the Year Ended December 31, 2005 2006 2005 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Rent 2,029,850 2,137,325 2,101,476 (35,849) 1,567,886 Laundry room lease 24,660 24,660 21,278 (3,382) 19,254 Other 12,300. 12,725 5,466 (7,259) 14,010 Total Operating Revenues 2,066,810 2,174,710 2,128,220 (46,490) 1,601,150 Operating Expenses: Advertising 3,000 3,000 2,704 296 4,038 Office expenses 10,430 10,430 11,469 (1,039) 11,589 Management fee 75,000 75,000 75,000 - 77,595 Telecommunications 6,900 6,900 9,199 (2,299) 8,417 Wages-Administrative 84,120 84,120 86,918 (2,798) 81,494 Wages -Maintenance and other 100,884 108,684 101,107 7,577 95,715 Repairs and maintenance 21,660 21,660 41,031 (19,371) 36,930 Electric 39,500 39,500 23,594 15,906 30,137 Water and sewer 68,460 74,260 83,624 (9,364) 67,365 Trash removal 18,300 19,300 17,207 2,093 13,466 Snow removal 11,250 22,250 28,657 (6,407) 13,696 Fire, life, safety, and security 3,650 3,650 705 2,945 3,712 Property insurance 65,220 96,320 96,393 (73) 65,427 Professional fees 6,100 6,100 5,950 150 5,800 Bad debt expense - - 4,094 (4,094) 2,325 Miscellaneous 4,820 4,820 3,705 1,115 6,955 Mold remediation - 373,000 412,483 (39,483) 369,502 Depreciation 525,444 525,444 525,446 (2) 525,447 Total Operating Expenses 1,044,738 1,474,438 1,529,286 (54,848) 1,419,610 Operating Income (Loss) 1,022,072 700,272 598,934 (101,338) 181,540 Non-operating Revenues (Expenses): Earnings on investments 4,320 4,320 15,212 10,892 9,341 Interest expense reimbursement -Rate cap agreement - - 98,181 98,181 7,633 Interest expense (947,852) (994,483) (1,094,633) (100,150) (769,164) Financing fees (269,290) (269,290) (273,263) (3,973) (272,704) Amortization of bond issue costs (42,564) (78,004) (78,004) - (135,659) Total Non-operating Revenue (Expenses) (1,255,386) (1,337,457) (1,332,507) 4,950 (1,160,553) Change in Net Assets (233,314) (637,185) (733,573) (96,388) (979,013) 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 Change in Fund Net Assets Budget ( Non-GAAP Basis) and Actual with Reconciliation to GAAP Basis ' For the Year Ended December 31, 2006 With Comparative Actual Amounts For the Year Ended December 31, 2005 2006 2005 ' Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: ' Charges and Fees: Dispatch service fee 525,994 525,994 525,994 - 559,034 Dispatching contracts 864,376 864,376 863,644 (732) 819,504 Other charges - 33,936 27,766 (6,170) 21,870 Total Operating Revenues 1,390,370 1,424,306 1,417,405 (6,901) 1,400,408 Operating Expenses: Public Safety: Salaries and benefits 1,418,874 1,428,060 1,289,334 138,726 1,349,772 Operating expenses 367,398 397,148 365,966 31,182 389,908 Capital outlay 12,250 27,641 15,391 12,250 - Total Operating Expenses 1,798,522 1,852,849 1,670,691 182,158 1,739,680 ' Operating (Loss) -Budget Basis (408,152) (428,543) (253,287) 175,256 (339,272) Non;operating Revenues: Operating grant -Intergovernmental - 24,092 24,092 23,040 ' Operating grant - E-911 Board = 473,074 488,465 473,939 (14,526) 345,660 Earnings on investments 29,320 29,320 8,582 Total Non-operating Revenues 473,074 488,465 527,351 38,886 377,282 ' Income Before Transfers 64,922 59,922 274,064 214,142 38,010 Transfers In - - - - 19,500 Transfers Out - - - - (17,020) Change in Net Assets -Budget Basis 64,922 59,922 274,064 214,142 40,490 Reconciliation to GAAP Basis: Adjustments: ' Contribution from Capital Projects Fund 18,571 181,486 Change in compensated absences 8,221 7,646 Depreciation (220,431) (211,227) Net book value of disposed assets ' Capitalized assets 15,391 _ Total Adjustments (178,248) (22,095) Change in Net Assets - GAAP Basis 95,816 18,395 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, 2006 With Comparative Actual Amounts For the Year Ended December 31, 2005 ~~~I~I: Operating Revenues: Charges and Fees: Operating charges Replacement charges Total -Charges and Fees Other: Insurance reimbursements Other Total -Other Total Operating Revenues Operating Expenses: Public Works: Vehicle maintenance and fuel Capital outlay Total Operating Expenses Operating Income (Loss) -Budget Basis Non-operating Revenues: Earnings on investments Proceeds from sale of assets Total Non-operating Revenues: Change in Net Assets -Budget Basis Reconciliation to GAAP Basis: Adjustments: Contribution from Capital Projects Fund Contribution from Real Estate Transfer Tax Fund Contribution to Fire Department Net book value of disposed assets Depreciation Change in accrued compensated absences Capitalized assets Total Adjustments Change in Net Assets - GAAP Basis Final Budget , Variance Original Final Positive Budget Budget Actual (Negative) 2005 Actual 1,851,391 1,883,569 1,817,785 (65,784) 1,643,491 601,260 601,260 595,996 (5,264) 597,417 2,452,651 2,484,829 2,413,781 (71,048) 2,240,908 37,900 37,900 41,241. 3,341 54,899 - - 17,967 17,967 8,935 37,900 37,900 59,207 21,307 63,834 2,490,551 2,522,729 2,472,988 (49,741) 2,304,742 1,815,389 1,873,157 1,877,233 (4,076) 1,683,442 384,171 415,494 281,436 134,058 557,593 2,199,560 2,288,651 2,158,669 129,982 2,241,035 290,991 234,078 314,319 80,241 63,707 8,000 8,000 49,500 41,500 21,286 49,330 49,330 20,287 (29,043) 93,612 57,330 57,330 69,787 12,457 114,898 348,321 0 291,408 0 384,106 92,698 0 178,605 (2,854) (530,340) (2,094) 281,436 (253,852) 130,254 21,805 (23,950) (561,740) (4,060) 551,899 (16,046) 162,559 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, 2006 With Comparative Actual Amounts For the Year Ended December 31, 2005 1 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: Earnings on investments Change in Net Assets - GAAP Basis C 2006 2005 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual 1,970,800 1,970,800 1,856,000 (114,800) 1,859,046 248,600 236,100 226,805 (9,295) 243,675 - 65,000 368,723 303,723 16,108 2,219,400 2,271,900 2,451,528 179,628 2,118,829 1,864,300 2,360,000 2,030,357 329,643 1,806,867 279,000 295,100 296,956 (1,856) 255,276 33,600 17,500 17,500 - 26,750 56,000 56,000 53,727 2,273 57,144 2,232,900 2,728,600 2,398,540 330,060 2,146,037 (13,500) (456,700) 52,988 509,688 (27,208) 13,500 26,000 50,431 24,431 25,745 - (430,700) 103,419 534,119 (1,463) 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, 2006 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 Non-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 Equipment . Fund Health Insurance Fund Total 1,127,513 1,003,577 2,131,090 42,001 320,496 362,497 263,117 - 263,117 1,432,631 1,324,073 2,756,704 2,956,380 - 2,956,380 4,389,011 1,324,073 5,713,084 35,925 314,094 350,019 15,512 705 16,217 19,542 - 19,542 70,979 314,799 385,778 29,312 - 29,312 100, 291 314, 799 415, 090 2,956,380 - 2,956,380 1,332,340 1,009,274 2,341,614 ,288,720 1,009,274 5,297,994 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, 2006 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) Non-operating Revenues (Expenses): Gain (loss) on disposal of assets Investment income Total Non-operating Revenues (Expenses) Income (Loss) Before Transfers and Capital Contributions Capital Contributions, Net Change in Net Assets Net Assets -January 1 Net Assets -December 31 Heavy Health Equipment Insurance Fund Fund Total 2,413,781 1,856,000 4,269,781 - 226,805 226,805 41,241 368,723 409,963 17,967 - 17,967 2,472,988 2,451,528 4,924,516 1,879,327 - 1,879,327 - 2,398,540 2,398,540 530,340 - 530,340 2,409,667 2,398,540 4,808,207 63, 321 52, 988 116, 309 17,433 - 17,433 49,500 50,431 99,932 66,933 50,431 117,365 130,254 103,419 233,673 130,254 103,419 233,673 4,158,466 905,855 5,064,321 4,288,720 1,009,274 5,297,994 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, 2006 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 (Used) by Operating Activities Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets Acquisition and construction of capital assets Net Cash (Used) by Capital and Related Financing Activities Cash Flows From Investing Activities: Earnings 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 Heavy Health Equipment Insurance Fund Fund Total 2,413,781 1,856,000 4,269,781 89,593 276,926 366,519 (1,162,606) (2,358,081) (3,520,687) (789,014) (14,634) (803,648) 551,754 (239,789) 311,965 20,286 - 20,286 (281,435) - (281,435) (261,149) - (261,149) 49,500 50,431 99,931 49,500 50,431 99,931 340,105 (189,358) 150,747 787,408 1,192,935 1,980,343 1,127,513 1,003,577 2,131,090 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 vvages and benefits Total Adjustments Net Cash Provided (Used) by Operating Activities 63,321 52,988 116,309 530,340 - 530,340 30,386 (318,601) (288,215) 12,816 - 12,816 - 26,418 26,418 (85,098) (856) (85,954) (11) 262 251 488,433 (292,777) 195,656 551,754 (239,789) 311,965 Schedule of Non-cash Investing, Capital and Financing Activities: Assets donated by Capital Projects Fund - - - The accompanying notes are an integral part of these financial statements. F8 ' Town of Vail, Colorado Special Revenue Funds Capital Projects Fund Schedule of Project Expenditures -Budget (GAAP Basis) and Actual ' For the Year Ended December 31, 2006 With Comparative Actual Amounts For the Year Ended December 31, 2005 u L 2006 Variance Project Final Positive Number Project Name Budget Actual (Negative) CB1010 Fire infrastructure improvements CB1021 Donovan Park Pavilion CB1022 Dobson Ice Arena CB1023 Gymnastics facility CEP001 Fire Truck Purchase . CEP004 Replace buses CEP005 Software/hardware purchases CEP011 Document imaging CEP016 GPS system for buses CEP018 Web page development CEP019 CAD/RMS dispatch project CEP023 Video cameras patrol cars CEP025 Fire operations breathing apparatus CEP029 Police color copier CEP030 Vehicle expansion CEP031 Software Licensing CHP001 Buy-down program CHP006 Loan guarantee -Timber Ridge CHP007 Timber Ridge Legal /Zoning CHP008 Rational Nexus Study CHP009 Vail Das Schone Unit A-12 CMT003 Bus shelter replacement program CMT004 Capital street maintenance CMT005 Facility capital CMT007 Parking structure maintenance CMT009 Environmentallmprovement COT002 Street light improvement program COT003 Drainage improvements COT004 Fiber-optic connection COT009 Lionshead improvements COT011 I-70 noise mitigation COT013 Revise TOV master plans COT014 West Vail area plan COT015 Strategic planning COT016 LH Parking Structure RFP CPA003 Wendy's property -purchase CSC010 Way-finding improvements CSC011 West Meadow Drive CSC012 Village Streetscape CSC013 E. Meadow Dr. Streetscape FED021 Byrne grant -live scan Timber Ridge loan Total Expenses -Budget Basis 770,264 29,634 7, 900 12,000 240,000 2,398,942 96,355 37,836 362, 500 4,984 67,178 45,000 30,000 45,429 59,384 65, 000 925,000 45,000 18,500 295, 508 10,000 1,600,874 409,888 662,875 24,000 66,877 9, 940 200,695 592,209 8, 940 34, 342 125,000 51,500 2,026,000 63,347 907,092 3,992,226 965,000 200,000 17,507,219 3,035 6, 388 238,648 2,231,337 83,830 18,219 18,160 4,984 66,778 45,000 30, 959 45, 317 59,384 12;442 16,501 295, 545 .1,762 1,578,531 111,261 636, 746 61, 778 12,044 86,627 4,634 7,039 107,098 40,201 26,561 13,363 957,264 2,215,559 965,000 200,000 10,201,994 767, 229 29,634 7, 900 5,612 1, 352 167, 605 12,525 19,617 344,340 400 (959) -112 65,000 925,000 32, 558 1,999 (37) 8, 238 22,343 298,627 26,129 24,000 5,099 (2,104) 114,068 587,575 8, 940 27,303 17,902 11,299 1,999,439 49,985 (50,172) 1, 776,667 Reconciliation to GAAP Basis: Long term receivable from Timber Ridge Total Expenses - GAAP Basis (200,000) 10,001,994 7, 305,225 The accompanying notes are an integral part of these financial statements F9 2005 Actual 403 12, 366 2,100 57, 992 31,758 161,521 15, 755 31,169 47,914 234,633 24,470 10,489 7,371 10,000 15,494 1,290,398 286,612 472,865 33,123 11,128 72, 823 115, 367 115,491 1, 060 35,658 20,809 192,268 2,953,677 26,495 700,000 6,991,209 (700,000) 6, 291, 209 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, 2006 , With Comparative Actual Amounts For the Year Ended December 31, 2005 2006 2005 Variance Project Final Positive Number Project Name Budget Actual (Negative) Actual RC1001 Gore Creek Promenade 295,000 238,400 56,600 - RFP005 Alpine Gardens contribution 80,000 50,000 30,000 94,000 RFP015 Vail Memorial Park 50,000 50,000 - - RGT001 LOCO Grant -Alpine Gardens - - - 28,000 RMP001 Recreation Master Plan 60,000 57,556 2,444 - RMT001 Recreation path maintenance 78,500 64,145 14,355 67,609 RMT002 Tree maintenance 72,651 54,855 17,796 97,349 RMT005 Street furniture - Streetscape 55,491 64,886 (9,395) 6,539 RMT006 Black Gore Creek sand mitigation 100,000 65,000 35,000 100,000 RMT007 Bear-proof trash containers 19,500 - 19,500 ~ - RMT009 Park capital maintenance 20,000 5,659 14,341 112,830 RMT010 Stream tract mitigation 34,881 - 34,881 119 RMT011 Retrofit Park Restrooms 200,000 27,598 172,402 - RMT012 Forest health management 342,188 206,863 135,325 - RPA001 Property acquisition 793,447 242,428 551,019 6,553 RPD005 Donovan Park -Lower Bench 49,050 519 48,531 640 RPD006 Whitewater Park 118,317 25,132 93,185 - RPD011 Skate park 400,000 - 400,000 - RP1002 Bighorn Improvements 339,997 123,241 216,756 6,003 RP1003 Irrigation control 15,057 4,669 10,388 540 RP1007 Pirate Ship Park - ~ - - 47,900 RPT.007 Trailhead signs/development 24,392 18,119 6,273 32,164 RPT008 North Frontage Road - - - 66,716 RPT014 Cascade bike path 373,984 213,553 160,431 331,017 RPT015 Katsos Ranch bike path 500,000 24,058 475,943 - RPT016 Westhaven Pedestrian Bridge 94,620 94,620 - - RRT001 Public Art 261,578 102,505 159,073 19,474 RRT003 ADA compliance 120,000 43,152 76,848 69,626 RSS001 Village streetscape ~ 1,250,000 1,250,000 - 2,525,000 RSS002 Meadow Drive 1,042,027 1,042,027 - 7,973 RSS003 Seibert Circle 745,706 46,611 699,095 548,294 Total 7,536,386 4,115,595 3,420,791 4,168,346 The accompanying notes are an integral part of these financial statements F10 LOCAL HIGHWAY FINANCE REPORT '~ i Thr nhlir r L~.r.iP., f . r6;. ,..f .,....r.,... ,.,.u~ financial Planning 02/01 ______....____... _._._ _ .. .... ....... .. ..........~~ 1'ORi77f SJIl-VJU-Sb ' City or County: al LOCAL HIGHWAY FINANCE REPORT YEAR ENDING December 2006 This Information From The Records Of (example -City of_ or County of _ Prepared By: at een a Oran Town of Vail Phone: 970-479-2116 I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE oca oca ece~pts rom eceipts rom ITEM Motor-Fuel Motor-Vehicle State Highway- Federal Highway Taxes Taxes User Taxes Administration 1. Total recei is available 2. Minus amount used for collection ex enses 3. Minus amount used for nonhi hwa u oses 4. Minus amount used for mass transit emam er use or I > wa u oses Il. RECEIPTS FOR ROAD AND STREET PURPOSES III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES ITE AMOUNT ITIrM AMOUNT A. Recei is from local sources: A. Local hi hwa disbursements: I. Local hi hwa -user taxes 1. Ca ital outla (from a e 2) a. Motor Fuel (from Item LA.S• 2. Maintenance: b. Motor Vehicle from Item LB.S• 3. Road and street services: c. Total a.+b. a. Traffic control o erations 2. General fund a ro riations b. Snow and ice removal 3. Other local im osts from a e 2 c. Other 4. Miscellaneous local recei is (from a e 2 - d. Total (a. throe h c.) 5. Transfers from toll facilities 4. General administration & miscellaneous 6. Proceeds of sale of bonds and notes: 5. F[i hwa law enforcement and safe a. Bonds - Ori final Issues 6. Total (I throe ?h 5) b. Bonds - Refundm Issues B. Debt service on local obli ations: c. Notes I. Bonds: d. Total a. + b. + c.) - a. Interest 7. Total I throe h 6 b. Redem tion B. Private Contributions c. Total a. + b. C. Receipts from State government 2. Notes: from a e 2) 227,861 a. Interest D. Receipts from Federal Government b. Redem tion from a e 2) - c. Total a. + b.) _ ota recei is + + + ota .c + .c C. Pa ments to State for hi hwa s D. Payments to toll facilities o a is ursemen s + + + IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at ar) O enin Debt Amount Issued Redem tions Closin Debt A. Bonds Total _ I. Bonds(Refundin Portion) otes ota V. LOCAL ROAD AND STREET FUND BALANCE A. Be innin Balance B. Total Recei is C. Total Disbursement D. Endin> Balance E. Reconciliation Notes and Comments: [~'(1RM G'I-IW A_G1~/U..., 1 nel - - - --~ ...~ ..~,,,., ~>_,... ,.~ ~,~.,~~~ . ~ tl~ext rage I F11 STATE: Colorado LOCAL HIGHWAY FINANCE REPORT YEAR ENDING (mm/yy): December 2006 II. RECEIPTS FOR ROAD AND STREET PURPOSES -DETAIL 17'EM AMOUNT 17'EM AMOUNT A.3. Other local im osts: r1.4. Miscellaneous local recei ts: a. Pro ert Taxes and Assessments a. Interest on investments b. Other local im osts: b. Traffic Fines & Penalities 1. Sales Taxes c. Parkin Gara Te Fees 2. Infrastructure & Im act Fees d. Parkin Meter Fees 3. Liens e. Sale of Su lus Pro ert 4.' Licenses f. Char =es for Services 5. S ecific Ownershi &/or Other 6 _. Other Misc. Recei is 6. Tota 1. t rou = 5.) Ot er c. Total a. + b. i. Total (a. throw =h h. - (Carr forward to a •e 1) (Carry forward to age I ) ITEM AMOUNT ITEM C. Recei is from State Government ll. Recei is from Federal Government AMOUNT 1. Hi =hwa -user taxes 0 1. FHWA from Item LD.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 c. HUD c. Motor Vehicle Re istrations d. Federal Transit Admin d. Other S eci e. U.S. Cor s of En =ineers e. Ot er (S eci Ot er Fe era f Total (a. throw =h e.) 2 .Total (a. throw h f. - 4. Total (1. + 2. + 3.f) 3. Total 1. + 2. _ (Carr forward to a ~e 1) 111. DISBURSEMENTS FOR ROAD AND STREET PURPOSES -DETAIL .1. Ca ital outla a. Ri ht-Of-Wa Costs ON NATIONAL HIGHWAY SYSTEM a OFF NATIONAL HIGHWAY SYSTEM b TOTAL c b. En =ineerin =Costs c. Construction: (I .New Fact rties 3 ,3 - (2). Ca acit Im rovements - (3 . Sstem Preservation 3 (4 . S~ stem Enhancement & O eration - (5 .Total Construction (I + (2 + (3) + 4) - ,6 9, 1 6, 3 , d. Total Ca ital Outla (Lines l.a. + 1.6. + 1.c.5 - ,9 6, 8 , (Carry forward to a ~e 1) o es an ommen s: FORM FHWA-536 (Rev.l-OS) PREVIOUS EDITIONS OE3SOLETE 2 F12 7 0 0 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, 2006. TABLEI ' Debt Service Coverage 2002 2003 2004 2005 2006 ' Pledged Revenues 15,106,801 14,578,983 15,466,981 16,483,979 17,841,680 Maximum Annual Debt Service 2,324,457 2,324,457 2,324,457 2,324,457 2,324,457 ' Coverage Factor 6.50x 6.28x 6.65x 7.09x 7.68x ' TABLE III History of Town 4% Sales Tax Receipts ' 2002 -2003 2004 2005 2006 Sales Tax Collections (see Note below) 15,106,801 14,578,983 15,466,979 16,483,979 17,841,680 Per Cent Increase -1.97% -3.49% 6.09% 6.58% 8.24% 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 Peri od Ended 12-month Pe riod Ended December 31, 2005 December 31, 2006 Percent Change Current Year Current Year Current Year ' Month Month To Date Month To Date Month To Date January 2,275,967 2,275,967 2,597,985 2,597,985 14.1% 14.1% . February 2,429,377 4,705,344 2,527,130 5,125,115 4.0% 8.9% March 2,785,101 7,490,445 2,852,954 7,978,069 2.4% 6.5% April 915,554 8,405,999 1,280,324 9,258,393 39.8% 10.1% May 458,770 8,864,769 449,283 9,707,676 -2.1% 9.5% June 834,913 9,699,682 805,362 10,513,038 -3.5% 8.4% July 1,166,183 10,865,865 1,255,243 11,768,281 7.6% 8.3% ' August 993,985 11,859,850 1,055,614 12,823,895 6.2% 8.1% September 795,807 12,655,657 832,549 13,656,444 4.6% 7.9% October 566,173 13,221,830 614,396 14,270,840 8.5% 7.9% November 713,117 13,934,947 799,582 15,070,422 12.1% 8.1% ' December 2,549,032 16,483,979 2,771,258 17,841,680 8.7% 8:2% G1 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Tables V and VI December 31, 2006 Annual Sales Tax Paid by TABLE V Sales Tax Collections by Principal Sales Tax Generators 2002 2003 2004 2005 2006 5,401,230 5,886,609 16,483,979 17,841,680 32.8% 33.0% Ten Principal Generators 4,944,937 4,828,717 4,996,562 Total Annual Sales Tax Collected by Town 15,106,801 14,578,983 15,466,979 of Total Annual Sales Tax Collections Generated by Ten Principal Generators 32.7% 33.1 % 32.3% Revenues: Sales tax .Federal grants Lease revenue Project reimbursment Intergovernmental grants Transfers in Earnings on investments and other Total Revenues Expenditures: Land purchases Equipment purchases Maintenance Buildings and improvements Street projects Housing programs Lionshead redevelopment Other improvements Transfer to Debt Service Fund Total Expenditures Revenues Over (Under) Expenditures Beginning Fund Balance Ending Fund Balance TABLE VI Capital Projects Fund: 2006 Actual I Projected 2007 - 2010 2006 2007 2008 2009 2010 8,641,136 6,308,500 6,405,000 6,825,000 7,140,000 1,739,052 - 4,900,000 510,000 600,000 179, 910 187, 800 187, 800 188, 550 192, 300 977,590 - - - - 2,000,000 2,000,000 925,000 -. - 667,919 43,000 11,000 17,000 20,000 14,205,607 8,539,300 12,428,800 7,540,550 7,952,300 322,106 2,842,617 1,120,800 5,014,700 924,400 2,445,600 2,328,299 1,796,500 2,970,000 2,770,000 3,050,000 34,830 2,065,000 990,000 70,000 75,000 4,137,823 2,280,000 1,720,000 3,965,000 7,990,000 28, 942 100,000 100,000 100,000 100,000 86,627 - 4,000,000 - - 220,750 525,000 330,000 330,000 400,000 2,236,200 2,379,710 2,518,164 2,636,641 2,634,401 12,238,194 10,267,010 17,642,864 10,796,041 16,695,001 1,967,413 (1,727,710) (5,214,064) (3,255,491) (8,742,701) 10,249,191 12,216,604 10,488,894 5,274,830 2,019,339 12,216,604 10,488,894 5,274,830 2,019,339 (6,723,362) G2 1 1 C Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Table XIX December 31, 2006 TABLE XIX History of General Fund Revenues, Expenditures and Changes in Fund Balance 2002 2003 2004 2005 2006 Revenues: General sales taxes 10,337,852 8,840,731 8,881,480 8,796,600 9,345,660 Property and ownership taxes 2,799,910 2,822,742 2,621,493 2,627,877 2,931,347 Ski area lift ticket admissions tax 2,344,921 2,273,055 2,496,162 2,277,698 2,975,097 Franchise fees 580,372 592,876 676,538 842,529 862,220 Penalties and interest on delinquent taxes 37,315 27,635 23,111 22,014 22,108 Licenses and permits 932,773 1,095,698 1,685,277 2,552,470 3,561,757 Intergovernmental revenues 1,349,364 1,518,855 1,435,982 1,401,068 1,477,270 Charges for services 3,162,454 3,561,050 4,092,973 4,588,403 4,767,097 Fines and forfeits 226,543 201,458 210,497 215,105 286,197 Interest 165,088 113,270 172,806 428,851 820,136 Rents 507,211 616,411 803,939 780,214 827,280 Other 280,277 234,879 359,829 538,808 501,699 Total Revenues 22,724,080 21,898,660 23,460,087 25,571,637 28,377,868 Expenditures: General government 4,586,115 4,8ti6,266 5,065,363 5,549,232 6,596,987 Public safety 5,415,008 5,466,728 5,885,632 6,309,595 6,534,712 Public works and transportation 7,756,877 7,935,640 8,252,331 9,312,136 9,625,653 Economic development and community assistance 1,518,403 1,261,858 1,175,574 1,024,207 1,183,645 Municipal library 953,019 .777,318 657,952 658,886 664,856 Total Expenditures 20,229,422 20,307,810 21,036,852 22,854,056 24,605,853 Excess of Revenues Over Expenditures 2,494,658 1,590,850 2,423,235 2,717,581 3,772,015 Other Financing Sources (Uses): Sale of asset - 1,850 - - _ Operating transfers in - - 27,435 29,300 - Operating transfers out - - (1,773,800) (126,687 (2,012;772) Total Other Financing Sources (Uses) - 1,850 (1,746,365) (97,387) (2,012,772) Excess of Revenues Over Expenditures and Other Financing Sources (Uses) 2,494,658 1,592,700 676,870 2,620,194 1,759,243 Fund Balance: Beginning 6,289,386 8,784,044 10,376,744 11,053,614 13,673,808 Ending 8,784,044 10,376,744 11,053,614 13,673,808 15,433,051 G3 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Tables XX and XXI December 31, 2006 TABLE XX General Fund 2006 Budget Summary and Actual Comparison / 2007 Budget 2006 Amended 2006 2007 Budget Actual Budget Revenues: General sales taxes 9,345,660 9,345,660 10,741,500 Property and ownership taxes 2,929,068 2,931,347 3,007,998 Resort fees 2,800,000 2,975,097 2,890,000 Franchise fees 819,000 884,328 807,000 Licenses and permits 3,541,575 3,561,757 1,883,550 Intergovernmental revenues 1,402,512 1,477,270 1,283,200 Charges for services 4,658,832 4,767,097 4,438,236 Fines and forfeits 248,000 286,197 201,500 Interest 150,000 820,136 425,000 Rents and other 1,015,363 1,328,979 824,908 Total 26,910,010 28,377,868 26,502,892 Expenditures: Town officials- 1,234,495 1,171,124 1,277,040 Administrative 3,056,141 2,944,160 3,291,120 Community development 2,853,200 2,481,703 2,151,983 Public safety -Police 4,211,329 3,925,643 4,464,892 Public safety -Fire 2,065,166 2,083,075 2,208,498 Public works 3,037,129 3,020,483 3,258,351 Transportation 8 Parking 4,041,451 3,882,532 4,188,041 Facility maintenance 3,085,878 2,919,491 3,239,932 Public library 766,228 664,856 812,968 Contributions and special events 1,032,460 986,792 1,176,664 Dispatch service charges 525,994 525,994 512,427 Total 25,909,471 24,605,853 26,581,916 Revenue Over Expenditures 1,000,539 3,772,015 (79,024) Other Financing Sources (Uses): Transfer in - - - Transfer (out) (2,009,378) (2,012,772) - Total Other Financing (Uses) (2,009,378) (2,012,772) - Excess of Revenues Over (Under) Expenditures and Other Financing (Uses) (1,008,839) 1,759,243 (79,024) Fund Balance -January 1 13,673,808 13,673,808 12,664,969 Fund Balance -December 31 12,664,969 o 15,433,051 ~ 12,585,945 o TABLE XXI Outstanding Revenue Obligations Outstanding Issue Principal Tax-Exempt Sales Tax Revenue Refunding Bonds, Series 1998A 8,760,000 Taxable Sales Tax Revenue Refunding Bonds, Series 19988 375,000 Sales Tax Revenue Refunding Bonds, Series 20028 2,940,000 Housing Facilities Revenue Bonds, Series 2003A 19,025,000 Housing Facilities Revenue Bonds Subordinate, Series 20038. 1,185,000. Total 32,285,000 G4 SINGLE AUDIT REPORTS and SCHEDULES L i I 1~;1 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) 845-085 I 1~ P.O. BOX 5850 AvoN, CO 8 1620 E-MAIL: MCMAHAN QI~MCMAHANCPA.COM REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON A AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAL AUDITING STANDARDS To the Mayor and Members of Town Council Town of Vail Vail, Colorado We have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the Town of Vail, Colorado (the "Town") as of and for the year ended December 31, 2006, which collectively comprise the Town's basic financial statements and have issued our report thereon dated March 23, 2007. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In plahning and performing our audit, we considered the Town's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Town's internal control over financial reporting. A control deficiency exists when the design or operation of a coritrol does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or a combination of control deficiencies, that adversely affects the Town's ability to initiate, authorize, record, process, or report financial data reliably in accordance with general accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Town's financial statements that is more than inconsequential will not be prevented or detected by the Town's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Town's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. 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. LVtembers: American Institute o~ CertiEiec~ Pu~~~ic Accountants/Lo~orac~o Society o{ ~'erti~iec~ Puli~ic Accountants Nationa~ ancj Co~oracjo Ciovermitent Finance 0{{ieers Association/Co~orac~o Municipa~ League H1 To the Mayor and Members of Town Council , Town of Vail, Colorado Compliance and Other Matters , 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 grant agreements, noncompliance 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 noncompliance or other matters that are required to be , . reported under GovernmentAuditing Standards. This report is intended solely for the information and use of management, Town Council, others within the Town, 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. J~CC~~ ~ ~s~~ ~ PLC' McMahan and Associates, L.L.C. , March 23, 2007 H2 ' 1'~1 MCMAHAN AND ASSOCIATES, L.L.C. ' (` Certified Public Accountants and Consultants ~~ WEB SITE: WWW.MCMAHANC PA.COM SUITE 222/AVON CENTER TELEPHONE: (970) 845-8800 I OO WEST BEAVER CREEK BLVD. FACSIMILE: (970) 845-085 I ' I [~ l P.O. BOX 5850 AVON, CO 8 1620 E-MAIL: MC MAHAN ~Q MCMAHANCPA.COM REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ' ACCORDANCE WITH OMB CIRCULAR A-133 To the Mayor and Members of Town Council ' Town of Vail Vail, Colorado ' Compliance We have audited the compliance of the Town of Vail, Colorado (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, 2006. 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 auditing standards generally accepted in the United States of America; 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, 2006. 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 fo test and report on internal control over compliance in accordance with OMB Circular A-133. Performing services for local governments throughout Ca/orado 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. ' 1~!tem~ers: American Jnstitute of C'erti~iec~ Pu~~~ic 1-Accountants/Co~orac~o Society o~ Certi~iec~ pu~~ic Accountants Nationa~ anc~ Co~orac~o Government Finance O{{icers Association/Co~orac~o Municipa~ League H3 To the Mayor and Members of Town Council Town of 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 control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or a combination of control deficiencies, that adversely affects the Town's ability to initiate, authorize, record, process, or report financial data reliably in accordance with general accepted accounting principles such that there is more than a remote likelihood that noncompliance with applicable requirements of laws, regulations, contracts, and grants that is more than inconsequential will not be prevented or detected by the Town's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies that results in more than a remote likelihood that material noncompliance with applicable requirements of laws, regulations, contracts, and grants will not be prevented or detected by the Town's internal control. 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, Town Council, others within the Town, 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 23, 2007 H4 Town of Vail, Colorado ' SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended December 31, 2006 ' Part I: S f A d it ' R ummary o u or s esults Financial Statements T ' ype of auditor s report issued Unqualified ' Internal control over financial reporting: Material weaknesses identified None noted Significant deficiencies identified that are ' not considered to be material weaknesses None reported Noncompliance material to financial ' statements noted None noted Federal Awards ' Internal control over major programs: Control deficiencies identified None noted ' Significant deficiencies identified that are 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: - Section 5309 Discretionary Funding CFDA #20.500 Dollar threshold used to identify Type A ' from Type B programs $300,000 Identified as low-risk auditee No ' Part II: Findings Related to Finan cial Statements 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 ~ ~: Town of Vail, Colorado ' SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS Year Ended December 31, 2006 Note: There were no findings for the fiscal year ended December 31, 2005 H6 Town of Vail, Colorado Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2006 Federal CFDA Major Program Title Number , Program Expenditures Federal Transportation Agency Discretionary Funding Section 5309 20.500 Yes 1,738,389 Total -Federal Transportation Agency 1,738,389 Department of Justice: Bulletproof vest program 16.607 No 663 Passed through Colorado Department of Criminal Justice: Law Enforcement Assistance 16.305 No 1,750 Enforcing the Underage Drinking Laws Grant Program 16.727 No 23,298 Total - U.S. Department of Justice 25,711 Total 1,764,100 Notes to the Schedule of Expenditures of Federal Awards for the year ended December 31.2006 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, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the general purpose financial statements. Note 2. Sub-recipients: The Town of Vail did not provide any federal funds listed in the Schedule of Expenditures of Federal Awards to sub-recipients. The accompanying notes are an integral part of these financial statements. H7 ' i MEMORANDUM TO: Town Council FROM: Community Development Department DATE: June 5, 2007 SUBJECT: First reading of Ordinance No. 15, Series of 2007, an ordinance amending the official zoning map for the Town of Vail in accordance with Title 12, Zoning Regulations, Chapter 5, Zoning Map; Rezoning Lot. 21,' Buffher Creek Subdivision, from Primary/Secondary (P/S) district to Low Density Multiple-family (LDMF) district, and setting forth details in regard thereto. I. SUMMARY The applicant, Capstone Townhome Association, represented by Marc Levarn, President of the H.O.A., has submitted a development review application to the Town of Vail Community Development Department to allow for the rezoning of Lot 21, Buffehr Creek Subdivision, from Two-Family Primary/Secondary District (P/S) to Low Density Multiple Family District (LDMF). The applicant has submitted the application in anticipation of the desire to perform several small residential additions to the existing units and possible new pitched roof. II. BACKGROUND On May 14, 2007, the Town of Vail Planning and Environmental Commission (PEC) held a public hearing on the request to amend the Official Zoning Map of the Town of Vail. Upon consideration of the request, the Commission unanimously approved a motion recommending approval with a condition of the rezoning request to the Vail Town Council. The PEC placed the following condition on the recommendation; "That Lot 21, Buffehr Creek Subdivision, shall be limifed to no more that six (6) dwelling units regardless of that allowable under Low-Density Multiple Family District zoning. " III. STAFF RECOMMENDATION As identified above, the PEC placed a condition upon their recommendation of approval. to the Town Council limiting the number of dwelling units on the property to a maximum of six. Staff identified in the memorandum to the PEC that Lot 21, if rezoned to Low Density Multiple-Family district would be permitted to construct a maximum of seven dwelling units on the property based on the buildable area of the lot. Since the May 14, 2007, PEC hearing staff has identified several concerns with the condition recommended by the PEC to the Town Council. Those concerns are:, • In order to :make the condition effective, the applicant would need to file an application for an exemption plat and put a note on the amended final plat limiting the maximum number of dwelling units to six. This process requires a return trip to the PEC approximately 30 days after submittal of an exemption plat application. In addition, this would need to occur prior to the adoption of an ordinance to rezone Lot 21 of the Buffehr Creek Subdivision. • Having properties within the Town of Vail which have restrictions greater than the zone district within which they are located presents challenges to the implementation of the Town of Vail Zoning Code. • Limiting the number of dwelling units on the property would only affect the number of parking spaces required by the project. The limitation on the number of dwelling units does not control the bulk, mass, height, setback, landscape area, site coverage of'the project. Any proposal to add Gross Residential Floor Area (GRFA) or a dwelling unit to bring the number on the site to seven, would have to comply with all development parameters within the Low Density Multiple-Family district. Variances could be requested, however, if a hardship cannot be proven based on the criteria, a variance would be denied. • In the memorandum to the PEC (Attachment B) staff addresses the criteria for a rezoning and identifies that the proposed rezoning complies with the components of the Town of Vail Comprehensive Plan. Staff believes that if it is found by the PEC and Town Council that a rezoning is appropriate and meets the criteria for a rezoning then all aspects of the new zone district should apply to a property. If it is found that one aspect of a proposed new zone district on a lot is not in compliance with the criteria for a rezoning, then the rezoning must be denied. The criteria for a rezoning were addressed by staff in Section VIII of the May 14, 2007, memorandum to the PEC. The Community Development Department recommends that the Vail Town Council approves, as proposed originally, Ordinance No..15, Series of 2007, on first reading. IV. ACTION REQUESTED OF COUNCIL The Town Council can vote to approve, approve with modifications, or deny Ordinance No. 15, Series of 2007., V. ATTACHMENTS A. Ordinance 15, Series of 2007 B. Memorandum to the PEC dated May 14, 2007 ORDINANCE NO. 15 Series of 2007 AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP OF THE TOWN OF VAIL IN ACCORDANCE WITH TITLE 12, ZONING REGULATIONS, CHAPTER 5, ZONING MAP; REZONING LOT 21, BUFFEHR CREEK SUBDIVISON, FROM TWO-FAMILY PRIMARY/SECONDARY (PIS) DISTRICT TO LOW DENSITY MULTIPLE-FAMILY (LDMF) DISTRICT, AND SETTING FORTH DETAILS IN REGARDS THERETO. WHEREAS, Chapter 5, Zoning Map, of the Vail Town Code establishes the procedures for evaluating changes to the Official Zoning Map of the Town of Vail ("Zoning Mapn); and WHEREAS, the proposed amendment to the "Zoning Map" has been reviewed in accordance with the prescribed requirements outlined in Sections 12-3-1 through 12-3-7 of the Zoning Regulations of the Vail Town Code; and WHEREAS, on May 14, 2007, the Planning and Environmental Commission of the Town of Vail reviewed and forwarded a unanimous recommendation of approval with a condition of the proposed amendment to the "Zoning Map" to the Vail Town Council in accordance with the criteria and findings outlined in Section 12-3-7 of the Zoning Regulations of the Town of Vail; and WHEREAS, the Vail Town Council finds the proposed amendment to-the "Zoning Map" is consistent with the adopted'goals, objectives and policies outlined in the Vail Comprehensive Plan, the Vail Village Master Plan and is compatible with the development objectives of the Town; and WHEREAS, the Vail Town Council finds the amendment to the "Zoning Map" is compatible with and suitable to adjacent uses and appropriate for the surrounding areas; and WHEREAS, the Vail Town Council finds the amendment to the "Zoning Map" 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. ORDINANCE NO. 15, SERIES OF 2007 Vail Town Council Attachment: A NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. Zoning Map Amendment: The purpose of this Ordinance is to amend the Official Zoning Map of the Town of Vail. The Official Zoning Map of the Town of Vail is hereby amended as follows: Lot 21, Buffehr Creek Subdivision, shall be rezoned from Two-Family Primary/Secondary (P/S) district to Low Density Multiple-Family (LDMF) district, as illustrated on Exhibit A attached hereto. 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. ORDINANCE NO. 15, SERIES OF 2007 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. INTRODUCED, READ ON FIRST READING, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON FIRST READING this 5th day of June, 2007 and a public hearing for second reading of this Ordinance set for the 19~' day of June, 2007, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Rodney Slifer, Mayor Attest: Lorelei Donaldson, Town Clerk ORDINANCE NO. 15, SERIES OF 2007 Capstone Condominiums -Lot 21, Buffehr Creek Subdivision Rezoning from Primary Secondary District to Low Density Multiple Family District Ordinance 15, Series 2007 .; ~:l , ~. s ~° ;,. ~~~ F~- ,; ~. ~'~ Subject Site j ,~r i~ W % ~. t. ..~ ~ D _ ~ ~/~ e _ _ ZONING Two-Family Primary/Secondary Residential j = "~ ~ Residential Cluster \` ~ ~ Low Density Multiple Family ~'~ ~ Medium Density Multiple Family ~~~ ~~ i `°~, ~ % ; ; ~'~ ~ Public Accommodation 2 ~`~' ~~ ~ ' ~ ~ Commercial Core 3 • ©- Outdoor Recreation ~~ -~ ~ ~~ Natural Area Preservation :, ~~ ,~ ~' ~ General Use e feet This maP was createtl by the Town of Vail GIS workgmuP_ Use oRNS maP should be for general purposes only. Tne Town of Vail tloes not wanant the aauracy of the information contametl herein. ~ 0 50 100 200 (where mown, parcel line work is approximate)' ~~ MEMORANDUM TO: Planning-and Environmental Commission FROM: Community Development Department DATE: May 14, 2007 SUBJECT: A request for a recommendation to the Vail Town Council for a zone district boundary amendment, pursuant to Section 12-3-7, Amendments, Vail Town Code, to allow for a rezoning from Two-Family Primary/Secondary District (P/S) to Low Density Multiple Family District (LDMF), located at 1817 Meadow Ridge Road/Lot 21, Buffehr Creek Subdivision, and setting forth details in regard thereto. (PEC07-0018) Applicant: Capstone Townhome Association, represented by Marc Levarn, President of the H.O.A. Planner: Warren Campbell I. SUMMARY The applicant, Capstone Townhome Association, represented by Marc Levarn, President of the H.O.A., has submitted a development review application to the Town of Vail Community Development Department to allow for the rezoning of Lot 21, Buffehr Creek Subdivision, from Two-Family Primary/Secondary District (P/S) to Low Density Multiple Family District (LDMF). 'The applicant has submitted the application in anticipation of the desire to perform several small residential additions to the existing units and possible new pitched roof. Staff is recommending that the Planning and Environmental Commission forwards a recommendation of approval of the applicant's development review application. II. DESCRIPTION OF REQUEST The applicant, Capstone Townhome Association, represented by Marc Levarn, President of the H.O.A., has submitted a development review application to the Town of Vail Community Development Department. The purpose of the application is to amend the Official Zoning Map of the Town of Vail whereby Lot 21, Buffehr Creek Subdivision, is rezoned from Two-Family Primary/Secondary District (P/S) to Low Density Multiple Family District (LDMF). According to the applicant, the rezoning is intended to facilitate the renovation and additions many of the owners are contemplating for their units and possibly a new pitched roof to alleviate leak problems associated with the flat roof. There are currently six (6) dwelling units located upon Lot 21 of the Buffehr Creek Subdivision, which is four (4) additional dwelling units than permitted on the property according to the Two-family Primary/Secondary District. As this property is legally non-conforming, the limits as to what can be done on the property are severely Vail Town Council Attachment: B restricted. Any change to the units on the property, other than regular maintenance, requires one or more variances for density, Gross Residential Floor Area (GRFA), setbacks, depending on which unit and what is being proposed. The proposed rezoning of Lot 21 to Low Density Multiple-Family District would result in a maximum of seven (7) dwelling units on the lot and the ability to have total of 16,970 square feet of GRFA for the six existing units. There is currently 13,272 square feet of GRFA existing on the site, so with the proposed rezoning there would be an additional 3,698 square feet that could be split amongst the Association. A vicinity map of the development site and surrounding area has been attached for reference. (Attachment A) , ' III. BACKGROUND The Capstone Condominiums were granted a Certificate of Occupancy on December 1, 1978, under Eagle County jurisdiction for six (6) dwelling units and were zoned Residential Multiple Family. On January 29, 1986, the Capstone Condominiums was annexed into the Town of Vail by Ordinance No. 1, Series of 1986. At that time the property was rezoned to Two-Family Primary/Secondary District, which made the property legally non- conforming. On June 8, 1987, Staff recommended denial of a density variance for Unit 2 to enclose a deck which added 79 square feet of GRFA to a project which was already over on number~of units and GRFA for the lot. Staff cited that it would be a grant of special privilege. as no hardship was-present. By a vote of 3-1-0 the Planning and Environmental Commission approved the density variance request for Unit 2. On July 7, 1987, the Town Council heard an appeal (called up by Council Member) on the Planning and Environmental Commission approval of a density approval for Unit 2 of the Capstone Condominiums. A motion was made to uphold the Planning and Environmental Commission approval and by a vote of 2-2-0 the motion failed and resulted in the overturning of the Planning and Environmental Commission approval. There have been several applications for new windows, retaining walls, and roof replacements since the 1987 applications. IV. ROLES OF THE REVIEWING BODIES Rezoning/Zone District Boundary Amendment Planning and Environmental Commission: The Planning arid Environmental Commission is advisory to the Town Council. The Planning and Environmental Commission shall review the proposal and make a recommendation to the Town Council on the compatibility of the proposed zoning with surrounding uses, consistency with the Vail Comprehensive Plans, and impact on the general welfare of the community. Design Review Board: The Design Review Board has no review authority on zoning/rezonings. Staff: The staff is responsible for ensuring that all submittal requirements are provided. The staff advises the applicant as to compliance with the Zoning Regulations. Staff provides a staff memo containing background on the property and provides a staff evaluation of the project with respect to the required criteria and findings, and a recommendation on approval, approval with conditions, or denial. Staff also facilitates the review process. Town Council: . The Town Council is responsible for final approval/denial of a zoning/rezoning. The Town Council shall review and approve the proposal based on the compatibility of the proposed zoning with surrounding uses, consistency with the Vail Comprehensive Plans, and impact on the general welfare of the community. V. APPLICABLE PLANNING DOCUMENTS Town of Vail Zoning Regulations (Title 12, Vail Town Code) (in part) Chapter 6D: Two-Family Primary/Secondary District 12-6D-1: PURPOSE: The two-family primary/secondary residential district is intended to provide sites for single-family residential uses ortwo-family residential uses in which one unit is a larger primary residence and the second unit is a smaller caretaker apartment, together with such public facilities as may appropriately be located in the same zone district. The two-fiamily primary/secondary residential district is intended to ensure adequate light, air, privacy and open space for each dwelling, commensurate with single-family and two-family occupancy, and to maintain the desirable residential qualities of such sites by establishing appropriate site development standards. 12-6D-2: PERMITTED USES: The following uses shall be permitted: Single-family residential dwellings. Two-family residential dwellings. Type I employee housing units as further regulated by chapter 13 of this title. Type IV employee housing units, as further regulated by chapter 13 of this title. Chapter 6F: Low Density Multiple-Family District 12-6F-1: PURPOSE: . The low density multiple-family district is intended to provide sites for single-family, two-family and multiple-family dwellings at a density not exceeding nine (9) dwelling units per acre, together with such public facilities as may appropriately be located in the same zone district. The low density multiple-family district is intended to ensure adequate light, air, privacy and open space for each dwelling, commensurate with low density occupancy, and to maintain the desirable residential qualities of the zone district by establishing appropriate site development standards. 12-6F-2: PERMITTED USES: ' The following uses shall be permitted in the LDMF district: Multiple-family residential dwellings, including attached or row dwellings and condominium dwellings. Single-family residential dwellings. Two-family residential dwellings. Type IV employee housing units, as further regulated by chapter 13 of this title. Town of Vail Land Use Plan Chapter 11 -Land Use Plan Goals/Policies (in part) General Growth/Development 1.1 Vail should continue to grow in a controlled environment, maintaining a balance between residential, commercial and recreational uses to serve both the visitor and the permanent resident. 1.2 The qualify of the environment including air, water and other natural resources should be protected as the Town grows. 1.3 The quality of development should be maintained and upgraded whenever possible. 1.12 Vail should accommodate most of the additional growth in existing developed areas (infill areas). Residential 5.1 Additional residential growth should continue to occur primarily in existing, platted areas and as appropriate in new areas where high hazards do not exist. 5.4 Residential growth should keep pace with the market place demands for a full range of housing types. Chapter VI -Proposed Land Use 4 MDR Medium Density Residential The medium density residential category includes housing which would typically be designed as attached units with common walls.. Densities in this category would range from 3 to 14 dwelling units per buildable acre. Additional types of uses in this category would include private recreation facilities, private parking facilities and institutional /public uses such as parks and open space, churches and fire stations. VI. ZONING ANALYSIS Legal Description: Lot 21, Buffehr Creek Subdivision Land Use Designation: Medium Density Residential Lot Size: 52,577 sq. ft./1.21 acres Buildable Area: 38,570 sq. ft./0.885 acres The following zoning analysis provides a comparison of the development parameters for the existing Two-Family Primary/Secondary District zoning and the proposed Low Density Multiple-Family District zoning. Development Standard Primary/Secondary LDMF Lot Area: ~ 15,000 sq.ft. min. 10,000 sq.ft. min. Setbacks: Front: 20' Front: 20' ' Sides: 15' Sides: 20 Rear: 15' Rear: 20' Height: 33 ft. 38 ft. Density Control: 2 D.U.s 7 D.U.s GRFA: 46% of first 10,000 sq.ft. 44% of the buildable area 38% of next 5,000 sq. ft. 13% of next 15,000 sq. ft. 6% of lot area over 30,000 sq. ft. Site Coverage: 20% of site 35% of site Landscaping: Parking: 60% of site 40% of site Dependent on size and number of dwelling units The following zoning analysis provides a comparison of the development potential currently allowed under the existing Two-Family Primary/Secondary District to that of the proposed Low Density Multiple-Family District for the Capstone Condominium development. Development Standard Primary/Secondary LDMF ft 577 sq 52 Lot Area: 52,577 sq.ft. . . , Setbacks: Front: 183' Sides: 12.7'/92' Front: 183' Sides: 12.7'/92' Rear: 13.5' Rear: 13.5' Height: Density Control: 30 ft. 2 D.U.s 30 ft. 7 D.U.s GRFA: 9,804 sq. ft. 16,970 sq. ft. (13,272 sq.ft. existing) Site Coverage: 10,515 sq.ft. min. 18,401 sq.ft. min. (3,714 existing) ' Landscaping: 31,546 sq.ft. 21,030 sq.ft. (28,686 sq.ft. existing) Parkin g~ 3 per unit 3 per unit 18 total 18 total VII. SURROUNDING LAND USES AND ZONING Land Use North: Multiple-Family South: .Multiple-Family East: Single-Family West: Two-Family Zonin High Density Multiple-Family Primary/Secondary Primary/Secondary Primary/Secondary VIII. CRITERIA AND FINDINGS Amendment to the Official Zoning Map of the Town of Vail (rezoning) Chapter 3, Administration and Enforcement, Title 12, Zoning Title, of the Vail Town Code authorizes amendments to the Official Zoning Map of the Town of Vail. Pursuant to Section 12-3-7, Amendments, in part, "an application to amend the district boundaries of the Zoning Map may be initiated by petition of any resident or property owner in the Town." Furthermore, Section 12-3-7 C prescribes the criteria and findings the Planning and Environmental Commission and Town Council shall consider with respect to a request to amend the Zoning Map. The applicant is seeking a recommendation of approval to rezone Lot 21, Buffehr Creek Subdivision, from Two-Family Primary/Secondary (P/S) to the Low Density Multiple-Family (LDMF) District. According to .Section 12-3-7 C, of the Vail Town Code, Before acting on an application for a zone district boundary amendment, the Planning and Environmental Commission and Town Council shall consider the following factors with respect to the requested zone district boundary amendment: 1. The extent to which the zone district amendment is consistent with all 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 Section V of this memorandum outlines all of the goals and policies implemented or that are relevant to the proposed rezoning of Lot 21, Buffehr Creek Subdivision. The proposed rezoning specifically implements the Vail Land Use Plan land use designation of Medium Density Residential which states, in part, that, "The medium density residential category includes housing which would typically be designed as attached units with common walls. Densities in this category would range from 3 to 14 dwelling units per buildable acre. Additional types of uses in this category would include private recreation facilities, private parking facilities and institutional / public uses such as parks and open space, churches and fire stations. " All of the properties surrounding the Capstone Condominiums are located within the Medium Density Residential land use designation (Attachment B). Staff has done some research regarding the initial zoning of this property to Two-Family Primary/Secondary District and found that all the properties surrounding Capstone Condominiums that were annexed by the same ordinance were zoned Two-Family Primary/Secondary District as well while the properties along the North Frontage Road were either zoned Public Accommodation (The Roost) or Residential Cluster (Meadowbrook Condominiums, Buffehr Creek West Condominiums, and Buffehr Creek Condominiums). Staff believes that Two-Family Primary/Secondary zoning was selected for the properties to the north of the properties fronting the North Frontage Road as it was felt that a lower density residential neighborhood was desired. The proposed rezoning is consistent and compatible with the Vail Comprehensive Plan and the Town's development objectives. 2. The extent to which the zone district amendment is suitable with the existing and potential land uses on the site and existing and potential surrounding land uses as set out in the Town's adopted planning documents; and The zone district amendment is .consistent with existing and potential uses on surrounding properties. According to the Vail Land Use Plan, Capstone Condominiums and the adjoining properties are all designated Medium Density Residential (Attachment B). A review of the Zoning Regulations demonstrates that the uses allowed in the LDMF District are compatible with both the intent and purposes of the Medium Density Residential land use designations. 3. The extent to which the zone district amendment presents a harmonious, convenient, workable relationship among land uses consistent with municipal development objectives; and The LDMF District is consistent with the existing and proposed use of the property. The proposed zone district implements specific goals of the Vail Land Use Plan as identified in Section V. Staff believes that the proposed re-zoning presents a harmonious, convenient, and workable relationship with land uses in the area consistent with the existing and proposed use of the property. For example, if this property were to be rezoned it would eliminated the need for multiple variances in order to perform any addition. It should be noted that certain proposals by either end unit within the Capstone Condominium development may require a setback variance as the existing structure would not comply with the 20- foot setback on the side and rear. In addition, the proposed LDMF District zoning would provide for an intermediate density zoning between the High Density Multiple-Family District zoning to the north and the Two- Family Primary/Secondary District zoning to the south. 4. The extent to which the zone district amendment provides for the growth of an orderly viable community and does not constitute spot zoning as the amendment serves the best interests of the community as a whole; and The proposed re-zoning establishes consistent zoning for the property for the improvements currently located upon the site. This re-zoning will create a zone district consistent with the existing and proposed use of the property. The proposed re-zoning will provide for the development of an orderly viable community consistent with the Town's development interests as expressed in the Land Use Plan. For instance, the Vail Land Use Plan designates the site as "Medium Density ResidentiaP'. Staff believes that this amendment furthers the development objectives of the Town and serves the best interest of the community as a whole as it will allow for the renewal and minimum expansion of the project as it exists today with far less deviation from the existing zoning. 5. The extent to which the zone district amendment results in adverse or beneficial impacts on the natural environment, including but not limited to water quality,. air quality, noise, vegetation, riparian corridors, hillsides and other desirable natural features; and The proposed re-zoning will not significantly alter the existing character or uses allowed on the site. The increase in development potential on the property equates to one additional dwelling unit, which is not the intent of 8 the homeowners to add, and approximately 3,698 square feet of GRFA which equates to approximately 616 square feet per unit if it were to be split equally. It is currently the thinking of the Association that several owners would like to expand there kitchen areas on the rear of the structure and possibly place a new pitched roof on the project to eliminate several leak issues. As such, staff does not for see any adverse impacts on the natural environment to include water quality, air quality, noise, vegetation, etc. 6. The extent to which the zone district amendment is consistent with the purpose statement of the proposed zone district. The LDMF District is proposed for the subject property. The proposed zone district is consistent with the intended purpose of that zone district. A copy of the purpose statement of the LDMF District is provided in Section V of this memorandum. 7. The extent to which the zone district amendment demonstrates how conditions have changed since the zoning designation of the subject property was adopted and is no longer appropriate. Since the original adoption of zoning on the property in conjunction with it's annexation on January 29, 1986, the Town of Vail has adopted a Land Use Plan which was created to guide future land use decisions. The creation and adoption of the Land Use Plan on November 18, 1986, was the result of extensive study for the redevelopment of the Town. As such, the Town has adopted clearly identifiable goals and objectives for development for all areas of Town. The Land Use Plan identifies this area as being Medium Density Residential. 8. Such other factors and criteria as the Commission and/or Council deem applicable to the proposed rezoning. IX. STAFF RECOMMENDATION The Community Development Department recommends that the Planning and Environmental Commission forwards a recommendation of approval, to the Vail Town Council, of an amendment to the Official Town of Vail Zoning Map, pursuant to Chapter 3, Title;12, Zoning Regulations, Vail Town Code, to rezone Lot 21, Buffehr Creek Subdivision from Two-Family Primary/Secondary (P/S) to Low Density Multiple-Family (LDMF). Staff s recommendation is based upon the review of the criteria outlined in Section VIII of this memorandum and the evidence and testimony presented, subject to the following findings: "Before `recommending and/or granting an approval of an application for a zone district boundary amendment the Planning & Environmental Commission and the Town Council shall make the following findings wifh respect fo the requested amendment: 9 That the amendment is consistent with the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and compatible with the development objectives of the Town; and 2. That the amendment is compatible with and suitable to adjacent uses and appropriate for the surrounding areas; 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." X. ATTACHMENTS A. Vicinity Map B. Official Land Use Map C. Official Zoning Map D. Survey of Lot 21, Buffehr Creek Subdivision E. Public Notice 10 ~~~~;' Capstone Condominiums -1817 Meadow Ridge Road r,.r . ',; Rezoning from Primary Secondary District to Low Density Multiple Family District ,.~'':;~ Planning and Environmental Commission - May14. 2407 - g Wn~-~'~t a ~r ~- "!1; ~' ~ ~ y y " ~ti' -,t r' ^fZ.,e.~w"'t' + ~• ~ ,~~': " ~ fY ~' ~~ h~+, 16.E _... _ ) .~ ~ ~, ,• - ~j •° + t. ~`" + ~ iSubject Site ,, r• .~ ,.. r~~.. `~`~~` ~~~~...~: a "~i.~ . ~~: ~~:t Attachment A Capstone Condominiums - 1817 Meadow Ridge Road Rezoning from Primary Secondary District to Low Density Multiple Family District Planning and Environmental Commission - May14, 2007 - Subject Site ~~ ©~ ~ r~ ~~. ` LAND USE ~~ Low Density Residential Medium Density Residential _ Community Commercial Park ;+~, ,, ~ Open Space e r~~r r rrna map wag areacoooyma mwnmuau cis wa~mmup.u:aamia map amwa oe ra genera pump>as only. a~ mo xmre me Town or vaiiams na warraa me xcuray or me mramanon mntairea rerem. (wnere snoxn, parcel line work is appmimare) Attachment B Capstone Condom iniums - 1817 Meadow Ridge Road Rezoning from Primary Secondary District to Low Density Multiple Family District Planning and Environmental Commission - May14, 2007 - „~... ~' J ZONING u Two-Family Primary/Secondary Residential ~~ Residential Cluster Medium Density MWtiple Family Public Accommodation 2 - Commercial Core 3 Outdoor Recreation ~,, Plahual Area PreservatiaT 0 c3eneral Use I . ^ ~ ~ I e I l.J ~ F r Tnis map wm creal¢tl W Ne Town of wall GIS wukgmuD- Use R tnls nap sMUltl pe N ye~e`al puryuse~ _,'.ii , p SU 1ni1 hl TFe Town o[Vdll tlDeg nR war2nt lhe.r[ursy of Ne nfmmetlon mnalnn0 nririi~ ~wnrre n n. parr¢i inn ok~s apparim.rri Attachment C a S F a a LEGEND ' Qs uun x.rmat Nsaxo Q sDW xxxxat - - - - mu r AvxNr 0 rwl xwac - - - - ma a <oxmcrz p lug u.,,,nN -- _ _ - cew.a Qu w3xWx, uuHNE ~ ~~ ax8 u,D Wi6n `~ rwFN, NNl Dli vxlK __ - ~ WCV lM Pr.RP D4 CAS v4K - ~ .. - WiAw,D' p4 rArtx v4r'C. -°-_"- Nlm (Gift Z], xAt inON,wl NLWFM aEC1Nt W[ - B E4 u[rtR ~ ~~ x0D0W rxLL a N.NI rvxnusca x r AiApmirNi7ruA "0 nADSmxr o N(cIW[ LOrD N mwimL vcxvu m Blau xaAl . < ® In.ussonucA Hama .'v Cu v ~}, xxxru xx eA'wmx mm wrx wuw N,Pnu ?II~ un,ac fi~~~ - o an¢r ual w ulun xac r Wn eaA.m . 4' woNA1NS . uaou9us mL[ rAW tmxn awArtA PUW Nc. / AEBAR N. LINE 9WX SEC. 12 ID.D' unun \Y ~ lr '00 EASENENi '~~tl'(I., \ ; c 4 k1~ LOT 20 \ \ FOUND ORANGE PLASr1C CM \ NP. ALEGIBLE AND dSNA8E0 ; 5241-0.4' FROM l0i CORNEPf ' . \ ~ 1O (1J LOT 19 ." \ V -~~ 1,9 ' F«ND PLAIN No. 1 REBAA~ (977'1]'W-I.0' FRON LOr COANEAj LOT 18 PAgOn wMAUftY AgEA (PLAT) MEA (CALC) AODRE55~, PMCEL 1 0427 0.127 IBI7 NEMOW AIOCE POM PARCEL 2 0.127 0.12] IBI7 NEMOW RIDGE ROAD PARCEL J D.1]6 0.1JB 1817 NEPOOW RIDGC RUM PMLEL 4 0.129 0.129 1817 IdEA00W AIDC{ ROAD PMCEEJ am o.nl tan uEAOOw AIOGE Roeo PMCEI ti 0.2BD 0.280 1817 NEADOW AIOGE ROAD o t• ,., P us LAUD coesuuANts, Wc. PEM LANGLa,o suAVEnNC. INLWC. ' wNb-Ne arAV0~a5-m,e 'i 1m0 tNx'S Nm[ tOP VH. N E, W CURVE TABLE CURVE DELTA RADIUS LENGTH TANGENT CHORD CHORD BEARING CI 19'32'21` J04.91' 101.98' 52.50' 10148' 579'41'11"W C2 CALC 19'32'21" 315,91' 107.73' 54.39' 107.21' 579'41'11"W CS CALC 19'32'21` 293.91' 100.23' 50.61' 99.75' 519'41'1 I'W LINE TABLE LINE LENGTH BEMINC L1 PLAT 228.25' 560'12'57"E LI CALC 228.25' 560'1302"E L2 PLAT 256.63' 560'12'57"E L2 CALC 256.fi3' 560'1301"E L3 PLAT 74.11' Sfi0'12'S7"E LJ CALC 274.30' Sfi0'13'02'E L4 PLAT 23282' 560'12 57`E L4 CALC 237,82' S60'12'S1'E LS PLAT 201.33' ~ 560'12'57"E LS CAtC 201.31' N60'12'S0"W L6 20.00' N20'OS'OD'W L7 60A0' 569'55'00"V! LB 29.2 S20'OS'00"E pnx PARCELI 'aRLEL\ / r~~ Y> 'p' '.J LJ C _ JV~ - 2847) P ALI DR E P Po(NG LC \I . I \ ' \ ~ \ ~ ~ ~ I \ I \ GRAPH]C SCALE ' I 20 .o ID 2D 40 .. ~ \ ~ . \ ~ (IN FELT 1 .\ I 1 Inch = 20 IL ~: LOT 25 I LOT'24 \ I \ uDNS RILCE SuaorvlsloN, Fawc Na ] LIONS AWGE SUBgNSICN. FILWG No. 3 iWNO Na. 5 REAM WIM AWNINL& CM I \ I LS ND. 26967 iDUND Ilc. 5 AEBM 21' CPP 'A~IH AlUNINUM CM , INV. • 6070.6 LS. Na 1<109 EASENENi /J .. - I - . 4.95' 070__ __~___._1-_'-~----------.- - - _ 00'34'37"W - 50.OOr . - . .8060 ~\' ~o~o r ` ` ~ • I,a.~~ MEADOW ROAD r ~ (alter-a-w.Y vuGES) - ~~, ~ ~ ~.' - ~ (PROJECT BENCHNMx) 7 _~ ~T" ~ ;. SEWER NAYeOLE NX tE1q m ~ L RIN ELEV.: BOJ07 -^V J - ~ INY ELEV. • 002J0 r AsP,lut oalvF Mo . O :Imciua ~ ~ L ~l W (C/1G) ~ 'PARNINC L07_~ _ _-_ - 1 W ~ ~ a>s, ~; o m ' 8050 - -~ ,~~ ~ o ,L I' / sl rwl _SdU~ ~~ ~A - .l ~ / / /// ~\~ /~/LOT 17 \ / // \ ~ LOT 15 FWNO Nc. 5 AEBAR 'A1M ALUNWUN CAP L.S Na. 11704 la. / AEEIM r ul.:;,<- 1 / ~ / / LOT 13 ~~ ~; / I)5~ yY/~ / / h ~IS. ~~ p~ opt / .FOUND PLMN ND. / REBM ~ ~ ~ / DQ' 7c,~L ~ j \ (so77c'w-D,e' FROM Lor cDRNER) _ .. / '~ / / ~' 10.U U11Utt / / EASEHENI \ ~M1, / ~ ~ / / . ~M1~;' / LOT 14 ~ ~~ > ~ y \ _ / GENERAL NO1E5 / I, GATE « iOPOGRMNY MRIL 11, 2007. \ 2. PROFCT BENdWAAK: 9EwFA NANHOLE MH IB00, LOCATEDEAST a THE ' \ ~ ~ / CM570NE~i0WNHWSES TYING MYHIN MEMOw ROM. PIM ELEVAl10 • BOJ0.7'. " INNEAi ELEVAOCN • BD1J.0' \ / 7. BUILDING llES MEIN~ICA~ED W PMENFHESIS IXX.%'f. ' A. PEAR lANO SURVEYING, INC. OO N07 PERFOAN'0. 1117E SE4RCH'of'IHE SUBFC.T \ PALbER1Y 70 CS7ABlISH OMICRSWP, EA<ENEN15 OR RICH75-Of-WAY OF RECORD. / NO nilE P«1CY OA COMNI9MEN1 WAS FRONDED i0 ES7A&ISN iNE EpS1ENCC \ iXFRECf. BWNDMIES ANO EA8D6EN75 SNOAN ryEREON AAE PER iXE RFCOAD , PLAT.' ' ~ \ / S. NOiICC: ACCORDING TO C«ORA00'LAW YW WST'CdIMENCE FNY IEWL ACTION ' BA30 UPON ANY DEFECT W MI$ SURKY reiH1N:iXAEE 1EMS RFACR 19U FlAGI / ~ - DISCOYEA SUCH DEFEC7. W NO EifNi, IAAY MT ACTION BASED UPON ANY , \ tau! Ao n-uA FRON 101 COflNEq) \ DEFECT W 7H15 SURVEY BE LOMNENCED NdiC ~iHAN TEN YEAAS FRdA .iNE DAZE, ., OF CER7IFICAnON SHOWN HEREON \ /. . ' \ / SUAYf10A'a CERMCAiE ~ ~ ~ ' ' I, BREN7 BIGGS. A PROFESSIONAL LAUD SURVEYd1 REGSiEAED UNDER iXE LAMS OF \ / iNE SUTE Ci C«OIfMO. DO HEREBY CERTIFY THAT MI5 IOPOCRMHIC uAP wA5 ~ ' MACE aY uC ANO UNDER NY SUPERNSION, AND n1AT THE NAP I$ >E MO TOPOGRAPHIC MAP ' CORRECT 10 ME BES7 OF TAY NNOWlEOGE. p4pD0RfC;J7~ ", PARCELS I THRU B - \ / DArE:_________ -=------ - `•~ CAPSTONE TOWNHOUSES BREW BIGGS L«CRAW PLS. ns9 i TOWN OF VAIL. \ / FOA 8 ON BEHALF OF 'O. 'PEAR LANG SURNEYINC. ff +~~1 ~ EAGLE COUNTY, COLORADO ' ~NdI L6NDS DRAWN: 5 ~ ' REVIEWED: BB ' DATE; 04/1 J/07 PLC JOBS: 1556 CHATEAU TREMONTE ~~ >o - ~A~>~ < V~~~r w 1 ~~r. 'w;+ .4q hyR, /nom ma y / wa6 ~ .. ~ 0.R / ! ~ ~fv~ T {~ 09y I!~ An. A ; C r r I4[! ~ S~tf e '~V rMt yy rC M ' _k'( q~ ? ,t '/ 7 J ~ 1~~ / 'b ' rbaa qml YVL ~w~U1 KIP. ~ fl ~' earo PAPFEL ] .4~a~t ~\ - 5 x ^i „ / t° p m u m i \ \ ~ P ehA ti 4P PMLEL 1 p ' t eem mfx \ Na7a CS 5~~ \ 1 \ 1 Y "A~a 1 mnf 1!~!,,H J~P4NP, " /ay p5 ~ Pbar~ ~ ~ ~S~ ` ~~ N x( \ Dt m ~. p~~ / o R ASPNALl DANE MID 1 R. PARNING LOi ) 1'wn. / .il ~ AY~ (7757 . ~,d i2 •,~,~ ~ 0 I tI G ~r , J - Attachment D 'fin /$ - LOT 16 / MOUND PLMN Nc. 4 0.EBM row~voFVat~ ~' THIS ITEM MAY AFFECT YOUR PROPERTY PUBLIC NOTICE NOTICE IS HEREBY GIVEN that the Planning and Environmental Commission of the Town of Vail will hold a public hearing in accordance with section 12-3-6, Vail Town Code, on May 14, 2007, at 1:00. pm in the Town of Vail Municipal Building, in consideration of: A request for a recommendation to the Vail Town Council for a zone district boundary amendment, pursuant to Section 12-3-7, Amendments, Vail Town Code, to allow for a rezoning from Two-Family Primary/Secondary District (P/S) to Low Density Multiple Family District (LDMF), located at 1817 Meadow Ridge Road/Lot 21, Buffehr Creek Subdivision, and setting forth details in regard thereto. (PEC07-0018) Applicant: Capstone Townhome Association, represented by Marc Levarn, President of the H.O.A. Planner: Warren Campbell A request for a work session to discuss the development review applications necessary for the review of the redevelopment of the properties known as "Ever Vail" (West Lionshead), located at 862, 923, 934, 953, and 1031 South Frontage Road West/Unplatted, and setting forth details in regards thereto. (PEC07-0019, 0020, 0021, 0022) Applicant: Vail Resorts Development Corporation, represented by Mauriello Planning Group LLC Planner: Warren Campbell A request for a final review of an amended final plat, pursuant to Chapter 13-12, Exemption Plat Review Procedures, Vail Town Code, to amend the allowable Gross Residential Floor Area, located at 3977 Lupine Drive/Lot 1A, Block 1, Bighorn 1sc Addition, and setting forth details in regard thereto. (PEC07-0023) Applicant: Todd and Cindy Oliver, represented by TAB Associates, Inc. Planner: Bill Gibson A request for a final review of an amended final plat, pursuant to Chapter 13-12, Exemption Plat Review Procedures, Vail Town Code, to allow for a modification to shared property boundaries, located at 5119 and 5121 Black Bear Lane/Lots 8 and 9, Block 2, Gore Creek Subdivision, and setting forth details in regard thereto. (PEC07- 0024) Applicant: Lisa Augustine, represented by JMP Architects Planner: Bill Gibson Attachment: E Page 1 A request for a work session to discuss the development applications necessary for the review of the redevelopment of the Gorsuch Building, located at 263 East Gore Creek Drive/Lots D and E, Block 5, Vail Village Filing 1. (PEC07-0025) Applicant: David and Renie Gorsuch, represented by Resort Design Associates Planner: George Ruther The applications and information about the proposals are available for public inspection during office hours at the Town of Vail Community Development Department, 75 South Frontage Road. The public is invited to attend project orientation and the site visits that precede the public hearing in the Town of Vail Community Development Department. Please call 970-479-2138 for additional information. Sign language interpretation is available upon request, with 24-hour notification. Please call 970-479-2356, Telephone for the Hearing Impaired, for information. Published April 27, 2007, in the Vail Daily. Page 2 MEMORANDUM May 29, 2007 To: Vail Town Council Stan Zemler Pam Brandmeyer Judy Camp From: Sally Lorton . Re: April Sales Tax On the reverse side please find the latest sales tax worksheet. I estimate I'll collect another $50,000.00 in April sales tax to bring April collections to $1,323,293.00. If so, we will be up 8.06% or $98,735.00 from budget and up 3.36% or $42,969.00 from April 2006. The ski season (November -April) will be up 6.7% or $843,128.00. April lift tax is up 19.31 % or $49,314.00 from Apri12006. The ski season (November -April) is up 4.7% or $139,890.00. ~C~. i`1.U~- 2007 Out-of--Cycle Funding The purpose of the mid-year review is to provide an opportunity for organizations that have newly identified projects or unforeseen changes to their budgets to come forward all at the same time. The Town Council evaluates the various proposals based on their direct benefit to the entire community of Vail, fulfillment of the Town's mission, and how this contribution will affect our resort community's future health. The Town Council's mission statement reads: In order to be the premier mountain resort community, we're committed to providing citizens and guests with. a superior level of environmentally-sensitive services and an abundance of recreational, educational, and cultural opportunities. A. Colorado Ski Museum BACKGROUND INFORMATION: The Ski Museum is requesting a total $142,000 cash contribution: $69,500'for interior display lighting renovations; $30,000 for a new interior exhibit design; $15,000 for a Denver International Airport (DIA) exhibit to.be located in Concourse A; $18,000 to help fund the construction of an exterior building renovation; and $10,000 to help fund a Museum Theater Room. STAFF RECOMMENDATION: Staff recommends that the Ski Museum approach the Vail Local Marketing District for the $15,000 of marketing/advertising for the DIA exhibit. Staff supports the exterior renovation request for $18,000, but recommends funding to be conditional on the results of Design Review Board requirements. Staff recommends that the remaining items be included in a request for 2008 funding. B. Radio-Free Minturn BACKGROUND INFORMATION: Radio-Free Minturn is requesting a total of $5,000. cash contribution ($3,000 to install a local emergency alert system and $2,000 for operating support). STAFF RECOMMENDATION: Staff supports the funding request. The local emergency alert system will provide immediate notification of local emergencies through an interruption of station programming. The Town of Vail wrote a letter of support to Eagle Countyfor this program on behalf of Radio-Free Minturn as well. Unfortunately, the County did not support the project. The request for operations support appears reasonable based on the Radio's financial outlook. C. Vail Pioneer Reunion BACKGROUND INFORMATION: Vail Pioneer Reunion is requesting a cash contribution of $1,500 and an in-kind contribution of $3,500 for 1 day at Dobson (September 22nd). Any profit from the event will be donated to local charities. For example, the Pioneer Reunion held 5 years ago donated $8,000 to the Vail Memorial Park. STAFF RECOMMENDATION: Staff recommends the in-kind contribution, contingent upon availability at Dobson /approval from the Vail Recreation District. However, Vail Pioneer Reunion will be responsible for hard costs related to the event at Dobson. Staff does not recommend the cash contribution because as noted in the application, proceeds will go to local charities (the town has a process for contributing to charities). Staff is also concerned about setting a precedent regarding contributions to private events and/or groups convening in Vait. 1 D. Vail Valley Foundation BACKGROUND INFORMATION: The Vail Valley Foundation is requesting $250,000 of funding to help cover a pledge shortfall of $2 million dollars related to the $10 million dollar reconstruction of the Gerald R. Ford Amphitheater~in 2001. STAFF RECOMMENDATION: Staff recommends funding as requested from the Real Estate Transfer Tax Fund. 'The Town of Vail contributed $300,000 toward the $10 million dollar project at the time of reconstruction. If the current request is also funded, the town's total contribution to the reconstruction wilt represent only 5.5% of the overall total cost. 2