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HomeMy WebLinkAbout2008-06-03 Support Documentation Town Council Evening Session , , VAIL TOWN COUNCIL EVENING SESSION AGENDA VAIL TOWN COUNCIL CHAMBERS 75 S. Frontage Road W. Vail, CO 81657 6:00 P.Iw., TUESDAY, JUNE 3, 2008 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 Input. (10 min.) 2. Michael Jenkins ITEM/TOPIC: Presentation of 2007 audit report. (20 min.) ACTION REQUESTED OF COUNCIL: The 2007 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 2007 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. STAFF RECOMMENDATION: None. 3. Ann Kurronen ITEM/TOPIC: Betty Ford Alpine Gardens Update. (10 min.) 4. Stan Zemler tTEM/TOPIC: Town Manager's Report. (10 min.) ? Revenue Update. . ? Vail Child Care Center Re-Allocation It has come to staff's attention that the Vail Child Care Center , failed to request a roll forward from '07 to '08 of a Council contribution approved $10,000 grant to improve the playground. The work, originally scheduled in '07, had to be delayed due to concrete work on the roof of the City Market Building. This project has a similar grant from Eagle County and the work is now scheduled to begin in June '08. The Vail Child Care Center is , ~ requesting the Council direct staff to place this item on the June 17th evening meeting for Council consideration. At this meeting, . Council. could then direct staff to place this item in the second supplemental appropriation, due to be read by ordinance in . August of'08. 5. ITEM/TOPIC: Consent Agenda. (5 min.) a. Approval of 05.06.08 and 05.20.08 Town Council Minutes. 6. Warren Campbell ITEMITOPIC: An appeal, pursuant to Section 12-3-3, Appeals, Vail Town Code, of the Town of Vail Design Review Board's denial of a Design Review application, submitted according to Chapter 11, Design Review, Vail Town Code, to allow for installation of an information kiosk, located on Tract B-C, Vail Village Filing 1(On Bridge Street, north of the Covered Bridge, across East Meadow Drive from the Vail Transportation Center, near the skier statue), and setting forth details in regard thereto. (20 min:) , ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny the appeal. BACKGROUND RATIONALE: On May 7, 2008 the Design Review Board denied the Design Review application to allow for installation of an information kiosk. The Board denied the request with the finding that the design of the kiosk did not meet the intent of Section 14-10-5A, Building Materials and Design, Vail Town Code. In particular that the synthetic roof material proposed did _ not comply with Section 14-10-5.A, criteria numbers 1-3, Vail Town Code. RECOMMENDATION: The Design Review Board recommends the Town Council uphold the Design Review Board's decision to deny the kiosk design. 7. Leslie Fordham, ITEIIA/TOPIC: 2009 Triumph Winterfest Artist Selection. (10 min.) ACTION REQUESTED OF COUNCIL: Approve use of private funds for 2009 Triumph Winterfest. BACKGROUND RATIONALE: Using funds from Triumph Development and other sponsors, Art in Public Places held an ice sculpture event in January, 2008. Seventeen ice sculptures, lit internally with LED's were placed on Gore Creek Promenade . where they delighted all who saw them. AIPP has selected artist Lawrence Argent to once again design ice sculptures for the 2009 event. The artist is requesting a design fee of $5,000 which includes taking responsibility for the artistic concept, site visits to ' determine placement and being on site to assist. The AIPP Board has determined that the total budget for the 2009 Triumph 1 , Winterfest, including arlwork, installation, lighting and publicity will not exceed $40,000. Funding for the project comes from Triumph Development. Art in Public Places Recommendation: AIPP Board members believe that Triumph Winterfest makes a significant contribution to the Town of Vail, provides entertainment and stimulates cultural ° and economic vitality. Lawrence Argent, a nationally known artist will create ice sculptures that will contribute significantly to Vail's reputation as a world class resort. 8. Warren Campbell ITEM/TOPIC: The applicant, LionsHead Inn LLC, represented by the Mauriello Planning Group, is requesting permission to proceed through the development review process with a proposal to make improvements on town-owned right-of-way in conjunction with a proposed redevelopment of the LionsHead Inn and LionsHead Inn Annex (Fabulous Vail Glo). (30 m'in.) ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny the request to proceed through the development review process. BACKGROUND RATIONALE: It is the desire of the applicant to apply for an amended major exterior alteration application and design review application to make improvements on town-owned West LionsHead Circle right-of-way, in conjunction with the approved LionsHead Inn and LionsHead Inn Annex redevelopment known as Strata. The proposed improvement is a vehicle pull-off area that could accommodate two vehicles. The. applicant must first obtain Town Council (i.e. property owner) approval before proceeding through the Town's development review process. STAFF RECOMMENDATION: The Community Development Department recommends that the Vail Town Council denies the applicanYs request to proceed through the development review process. 9. George Ruther ITEM/TOPIC: First reading of Ordinance No. 5, Series of 2008, an ordinance approving a major amendment to Special Development District No. 4, Cascade Village, pursuant to Section 12-9A-10, ' Amendment Procedures, Vail Town Code, to allow for the development of a mixed use development, located at 1276 Westhaven Drive (Comerstone site). (5 min.) ACTION REQUESTED OF COUNCIL: According to written requests from the applicant, LO Westhaven, Inc., Staff requests the Council table the public hearing to consider first reading of Ordinance No. 5, Series of 2008, to their regular meeting of July 1, 2008. ~ I ~ ~ BACKGROUND RATIONALE: On January 28, 2008, the Town of Vail Planning and Environmental Commission voted unanimously to forward a recommendation for approval, with conditions, of an application for a major amendment to Special Development District No. 4, Vail Cascade, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for the development of the Cornerstone Site. (PEC070055) On February 19, 2008, the Vail Town Council held a public hearing to consider Ordinance No. 5, Series of 2008, an ordinance approving a major amendment to Special Development District No. 4, Cascade Village, on first reading. At that meeting, the Council voted unanimously to table the public hearing to their regularly scheduled meeting of March 18, 2008. The applicant has submitted a subsequent request to table the hearing, most recently to the Council's regular meeting date of July 1, 2008. 10. George Ruther ITEMITOPIC: ITEM/TOPIC: First reading of Ordinance No. 9, Series of 2008, an ordinance amending Special Development District No. 6, Vail Village Inn, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for an addition to the Osaki Sushi Restaurant, located at 100 East Meadow Drive/Lot O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. (5 min.) ACTION REQUESTED OF COUNCIL: The applicants are requesting that the Town Council tables the first reading of Ordinance No. 9; Series of 2008, to its July 1, 2008, public hearing to allow the applicants additional time to resolve issues related to the condominium association's approval of this request. BACKGROUND RATIONALE: On April 28, 2008, the Planning and Environmental Commission voted 4-0-2 (Kjesbo and Viele recused) to, forward a recommendation of approval, with conditions, for a major amendment to Special Development District No. 6, Vail Village Inn, to allow for an addition to the Osaki Sushi Restaurant, located at 100 East Meadow Drive/Lot O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. On May 20, 2008, the Town Council tabled this item to it June 3, 2008, hearing at the applicants' request: STAFF RECOMMENDATION: Staff recommends the Town Council tables the first reading of Ordinance No. 9, Series of 2008, to its July 1, 2008, public hearing. 11. Matt Mire ITEMITOPIC: Ordinance No. 14, Series of 2008, an Ordinance Amending Title 1, Chapter 3, Section 2 of the Vail Town Code by the Addition of the Definition of the Word "Publication"; and Setting Forth Details in Regard Thereto. (10 min.) ~ ~ ACTION REQUESTED OF COUNCIL: Approve, approve with modifications, or deny Ordinance No. 14, Series of 2008, upon first reading. BACKGROUND RATIONALE: Section 4.10 of the Town Charter requires publication of ordinances upon their introduction and adoption. The Charter does not define what is required by "publication". In 2007, the Town spent $19,693 for publication of its ordinances in the Vail Daily, requiring the Town Clerk to increase the office advertising budget during the third supplemental appropriation by an additional $12,000. In 2008, the . Town has spent $8,106 to date to meet its legal requirement for publication of these notices. Nationwide, studies have shown that 73% of households have a computer in their home or have access to a computer at work or at their local libraries. This percentage increases in locations such as Vail where citizens have a higher education rate than the national average. An estimated. 70 percent of properties in Vail are owned by part-time residents. By publishing the Town's ordinances on its Web site (vailgov.com) not only will all property owners have direct access to the . ordinances it is also more fiscally and. environmentally responsible. STAFF RECOMMENDATION: Approve, approve with modifications, or deny Ordinance No. 14, Series of 2008, upon first reading. 12. Matt Mire ITEMITOPIC: Ordinance No. 13, Series of 2008, an Ordinance amending Chapter 12-2, Definitions, Article 12-7G, Heavy Service District, Chapter 12-14, Supplemental Regulations, and Chapter 12-16, Conditional Use Permits, Vail Town Code; to allow for , sexually oriented businesses as a conditional use in the Heavy Service District, and setting forth details in regard thereto. (10 min.) ACTION REQUESTED OF COUMCIL: Approve, approve with modifications, or deny Ordinance No. 13, Series of 2008, upon second reading. BACKGROUND RATIONALE: On May 12, 2008, the Planning and Environmental Commission voted unanimously to recommend approval of the proposed text amendments to the Vail Town Council. On May 20, 2008, the Vail Town Council unanimously approved Ordinance No. 13, Series of 2008, upon first reading. STAFF RECOMMENDATION: The Community Development Department recommends that the Vail Town Council approves Ordinance No. 13, Series of 2008, on second reading. { ;f 13. ITEM/TOPIC: 'Adjournment. (9:05 p.m.) 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 17, 2008 IN THE VAIL TOWN COUNCIL CHAMBERS. ; - i ; ~ ; ,I i ~ : ..r Vail Town Council Meeting Minutes Tuesday, May 6, 2008 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 Dick Cleveland. Members present: Dick Cleveland, Mayor Andy Daly Mark Gordon Farrow Hitt Kevin Foley Kim Newbury Margaret Rogers Farrow Hitt Kevin Foley Staff Members: Stan Zemler, Town Manager Matt Mire, Town Attorney Pam Brandmeyer, Asst. Town Manager The first item on the agenda was Citizen Input. Dave Kraft shared his belief that aerosol trails are being sprayed into the atmosphere over Vail and in other areas of the country as part of a government conspiracy. With restitution checks in hand, Battle Mountain High School students Max Ward and Blaze Heuga apologized to Council for recently vandalizing the sidewalk at the Donovan Pavilion. Council expressed displeasure with the youth's graffiti. Kathy Valleau spoke in defense of the youths for not identifying others involved. The second item on the agenda was the Vail Youth Recognition Award Winners Introduction. Vail Valley Exchange President Scott O'Connell introduced the following recipients of the Vail Youth Recognition Awards: Tony Ryerson from Vail Mountain School and Olivia Fauland from Battle Mountain High School. The third item on the agenda was Proclamation No. 6, Series of 2008 Building Safety Week 2008. (May 5-11) Rogers read a proclamation supporting Building Safety Week. Daly moved and Foley seconded a motion to approve the proclamation. The motion passed unanimously, 7-0. 1 FApprova i tem on the agenda was the Consent Agenda. l of the April 1, 2008, and April 15, 2008, Town Council Minutes. ~ i Foley moved to approve the consent agenda with Foley seconding. The motion passed I unanimously, 7-0. The fifth item on the agenda was the Town Manager's Report. ? Revenue Update. Budget and Financial Reporting Manager Kathleen Halloran reported that when all sales tax returns are received for the month of March, collections for the month are expected to be $3.3 million, up 12% from March, 2007. The ski season collections thus far (November - February) will be upo7.3%. For comparison, inflation as measured by the . consumer price index was up 4.0 /o compared with the prior year. Use tax collections began as of January 1, 2008. As of April 28, collections total $64,643. Construction permit revenue currently totals $671.5K, up 5.8% from this time last year. The increase is due to major redevelopment projects, which make up 78% of the total. Construction permit fee revenue from non-major projects is down 24% from this time last year. Real Estate Transfer Tax (RETT) collections through April 28, 2008, total $2.3 million. This amount is a 29% increase from this time last year primarily due to recent sales of major redevelopment projects. Major redevelopment projects such as Arrabelle, Forest Place, One Willow Bridge and Vail Plaza account for 41 % of year-to-date 2008 collections. RETT collections from property transfers not related to major redevelopment projects dropped by 13% year-to-date as of April, 2008 compared with 2007. ? Chamonix Planning Update. Planner Scot Hunn told Council that on March 4, 2008, Council re-affirmed, with modifications, the planning goals and design parameters originally adopted by the Council on January 22, 2008, for the Chamonix Site Master Plan project. Also at the , March 4, 2008, meeting, the Council authorized staff and the consultant team to proceed with conceptual design work for the Chamonix Site. On April 11, 2008, the Chamonix Site Advisory Committee held a meeting to review three preliminary site plan concepts. Cleveland commented, "This is our opportunity to maximize our ability to bring peo le back to town." He then questioned the possible inclusion of one bedroom units as they are not desirable to perspective buyers. Hunn said a recent survey indicated one bedroom units were a desirable product. Daly questioned the validity of the survey due to its small sample size. Hunn then explained that on May 7, 2008, staff would be hosting the next committee meeting, to be followed by an evening neighborhood . meeting, to review the most recent, revised site plan concepts. "The intent of these meetings will be to gain feedback from stakeholder groups prior to commencing with any further design development of plans." ? Colorado Stage International Cycle Classic/Farmers Market.. ' Assistant Town Manager Pam Brandmeyer reported staff believed the simultaneous hosting of the two events on Aug. 24 would be too cumbersome on town resources (parking, crowd control, etc.). Rogers asked if the Farmers Market could be held in the i , . I . ! 2 ~ I ~ , LionsHead area. Brandmeyer responded the town's resources were simply too limited to host two large events. Hitt asked if the town was sure the cycling event would be held. Representing the Vail Valley Foundation, Scott Bluhm confirmed the event would in fact be held. Bluhm then announced a title sponsor would be named within the next two weeks. The dates of the cycling event could not be moved. Gordon said he thought it was imperative both events be held simultaneously. Rogers said she thought a synergy would be created if both events co-existed. Gordon moved to hold both events simultaneously with Rogers seconding. Farmers Market representative Rick Scalpello said he believed the attendance estimates for the cycling event were overestimated. Farmers Market representative Tom Kraubaker spoke in support of maintaining the Aug. . 24.event date as did vendor Stephen Porter. The motion passed unanimously, 7-0. ? I-70 Collaborative Update. Zemler provided Couricil an overview of the most recent decisions of the I-70 Collaborative. He explained local communities are beginning a process to examine existing land-use regulations and zoning codes along the I-70 mountain corridor to determine how they can be improved to facilitate better mobility and transit options to relive congestion. "There is still some disagreement about lane widening in the Clear Creek County area...l think we will get to where we need to get to pretty soon." During a pause for public comment, Kaye Ferry said the,collaborative efforts of the numerous partners were improving. "They've made some significant strides even though the contention remains in Clear Creek County." Vail Homeowners Association representative Jim Lamont encouraged annexing the Dowd Junction area so the town would be able to control improvements made to the interstate in that area. ? Parking Task Force Update. Public Works Director Greg Hall reported the Parking Task Force would meet again on May 13. During public comment, Kaye Ferry expressed concern Vail Resorts had put the Ever Vail parking structure on the "back burner." The sixth item on the agenda was Ordinance No. 1, Series of 2008, an ordinance amending Chapters 12-13, Employee Housing, 12-23, Commercial Linkage, and 12-24, Inclusionary Zoning, Vail Town Code, to establish requirements that no less than one- half (%z) the employee housing mitigation requirements for new construction and demo/rebuild projects be accommodated with on-site units. Planner Bill Gibson reported that on March 10, 2008, the PEC voted 4-3-0 (Gunion, Proper, and Viele opposed) to forward a recommendation of approval, with modifications, for text amendments to establish standards and criteria related to mitigating employee housing requirements, and setting forth details in regard thereto. The Town Council held work session discussions concerning the proposed text amendments on March 24 and April 15, 2008. Gordon clarified if a project was in the current development review process (any accepted pending application for redevelopment) it would not be subject to the new requirements. Gibson said there were expirations for approvals. "The requirement for providing employee housing is not being changed, only where they put it...The code applies to all properties (in the Town of Vail) . in general." Daly clarified the Council did not have the ability to lower a housing requirement. He then asked that language be included that would address the ; aforementioned Town Council ability to change the requirements for a project if they so 3 chose. Foley moved to approve the ordinance with Gordon seconding. Foley asked for a list of all approved development applications prior to the next reading of the ordinance. Chief of Planning Warren Campbell clarified Vail Resorts had submitted applications for their proposed Ever Vail project. Local developer Peter Knobel said a Special Development District could ask for deviations from these standards. Kaye Ferry said she believed organizations such as the Va'il Valley Medical Center should be required to house employees locally and on-site. Local hotetier Johannes Faessler said this ordinance would have precluded his recent hotel expansion. The motion passed unanimously, 7-0. For more details, contact Gibson at 479-2178. The seventh item on the agenda was the Second reading of Ordinance No. 10, Series- of 2008, repealing and re-enacting Ordinance No. 31, Series of 2007, Cascade Village, amending and re-establishing the approved development plan for Area A of SDD No. 4, pursuant to Article 12-9A-10, Amendment Procedures, Vail Town Code, to allow for the construction of two additions (deck enclosures) to the south side of Vail Cascade Hotel, ~ located at 1300 Westhaven Drive/Cascade Village Subdivision). . On March 24, 2008, the PEC recommended approval of the request. On April 15, 2008 Council approved the first reading of Ordinance No. 10, Series of 2008, with the condition staff verifies the proposed parking table on Page 16 of the ordinance. Rogers moved to approve the ordinance with Gordon seconding. The motion passed unanimously, 7-0. The eighth item on the agenda An appeal, pursuant to Section 12-3-3, Appeals, Vail Town Code, of the Town of Vail Planning and Environmental Commission's approval, with conditions, of a request for a final review for a development plan, pursuant to Section 12-61-11, Development Plan Required, Vail Town Code; a request for final review of a variance from Section 12-21-10, Development Restricted, pursuant to Section 12-17-6, Criteria and Findings and Section 12-21-16, Right of Appeal; and a , request for final review of certain conditional uses, pursuant to Section 12-61-3, Conditional Uses, Vail Town Code, to allow for a redevelopment of Solar Vail into a mixed use development to include Type VI employee housing units, professional offices, and public utilities installations including transmission lines and appurtenant equipment, located at 501 North Frontage Road West/Lot 8B, Block 2, Vail Potato Patch. Planner Scot Hunn reported that on March 24, 2008, the PEC approved,. with conditions, a request for a final review for a development plan, pursuant to Section 12-61-11, Vail Town Code; a request for final review of a variance from Section 12-21-10, Development ~ Restricted, pursuant to Section 12-17-6, Criteria and Findings and Section 12-21-16, Right of Appeal; and certain conditional uses, pursuant to Section 12-61-3, Conditional Uses, Vail Town Code, to allow for a redevelopment of Solar Vail into a mixed use development to include Type VI employee housing units, professional offices, and public utilities installations including transmission lines and appurtenant equipment, located at 501 North Frontage Road West/Lot 813, Block 2, Vail Potato Patch, and setting forth details in regard thereto. Council, "called-up" this PEC action at its April 1, 2008, public hearing by a vote of 7-0-0. Cleveland said Council had several concerns with the project including uninterrupted height and lack of setbacks, snow storage as well as.the use of town land for access to the project. Project architect Henry Pratt said the building site had significant limitations due to setbacks and 40% slopes. Pratt said the easiest way to limit height is to remove units. Campbell said certain zone districts allow.for construction on 40% slopes although the Housing Zone District does not. Property owner Johannes Faessler said the location of the project is ideal for employee housing. Daly asked how 4 i , many units he intended to sell. Faessler said he would not sell any units. He said last winter his hotel required between 70 and 80 employee beds. Faessler then said he would utilize 2,500 sq. ft of office space and rent out the remaining 2,500 sq. ft. Rogers said maximum density should be encouraged. Rogers moved to uphold the PEC's recommendation subject to the PEC findings located on pg. 2 of the staff memorandum with Gordon seconding. Cleveland said he had a problem with the project's driveway being located on town land. Faessler said he was open to providing infrastructure necessary for an ancillary project on an adjacent site. Town Attorney Matt Mire recommended the development of a non-exclusive access easement. During a pause for public comment, Vail Homeowners Association representative Jim Lamont encouraged more articulation of the southern fagade. "We need to strike a compromise...We need to maintain a quality image for the community." The motion passed unanimously, 7-0. The ninth item on the agenda was a proposed addition to the Town's Official Avalanche Hazard Map at 4768 Meadow Drive/Lot 1, Block 7, Bighorn 5`h Addition. Planner Bill Gibson explained that pursuant to Sub-section 12-21-13-H, Additions to Maps, Vail Town Code: "If the applicant establishes at the hearing by clear and convincing evidence that the information contained in the site specific geologic investigation is reliable, the town council shall direct the Department of Community DeVelopment to keep.a copy of said site specific investigation on file in the Department of Community Development and available to the general public and shall further direct the department of community development to notate the appropriate official map adopted by this chapter so that it indicates that said site specific investigation is on file with the Department of Community Development." The, applicant, Larry Deckard,. representing the property owner, submitted,a site specific avalanche hazard study for the subject property. The submitted study recommended amending the delineation of the avalanche hazards on the subject site. Gibson then asked Council to direct the Department of Community Development to keep a copy of said site specific investigation on file in the Department of Community Development and available to the general public and direct the Department of Community Development to notate the Official Avalanche Hazard Map to indicate that said site specific investigation is on file with the Department of Community Development. Newbury moved to appr.ove the addition with Hitt seconding. The motion passed unanimously, 7-0. The tenth item on the agenda was the Park City Peer Resort Visit Outcomes. Council members Hitt, Gordon and Rogers joined Mayor Cleveland in sharing their observations -following a recent peer resort visit they made to Park City, Utah. Daly inquired if employee housing is a significant issue there. Hitt said in certain areas, Park City has 100% on site employee housing requirements. He.also noted the impressive quality of the for-sale and rental employee housing units he toured. "They were much more proactive in attacking the problem...They make their decisions based on what was best for the community and didn't make decisions based solely on profit." It was also identified that the Park City area resorts offered a transit service for their employees living in outlying areas. Rogers said the town should work to improve relations with Vail Resorts as she saw the benefits of a positive municipality/ski company relationship. Hitt encouraged placing open space in a third party trust to, "protect ourselves from ourselves." Gordon said the town should continue to pursue a green building code. Cleveland noted traffic on Main Street was a significant issue in Park City. He also noted the Park City Chamber handled all of the special events. Council agreed to ' 5 continue scheduling peer resort visits as they are quite valuable and enlightening. Zemler thanked Economic Development Manager Kelli McDonald and then Special Projects Manager Jamie Gunion for their work in scheduling the visit. The eleventh item First reading of Ordinance No. 11, Series of 2008, An.Ordinance Amending Title 4 of the Vail Town Code by the Addition of a New Chapter 12, Entitled "Sexually Oriented Business." Town Attorney Matt Mire explained Town Code did not have regulations concerning ' sexually oriented business. Adding Chapter 12 "sexually Oriented Business" to Title 4 of the Vail Town Code the council is insuring the public's health, safety and welfare by establishing reasonable regulations to reduce the adverse secondary effects of such businesses within the town. Rogers moved to approve the ordinance with Foley seconding. The motion passed unanimously, 7-0. The twelfth item on the agenda was the Second reading of Ordinance No. 8, Series of 2008, an Ordinance, amending Chapter 12-3, Administration and Enforcement, Vail Town Code, to establish procedures for approving public art in private development. On October 22, 2007, the PEC voted to recommend denial to Council for proposed text amendments requiring public art for certain development projects. On November 20, 2007, Council voted 4-3 to deny Ordinance No. 33, Series of 2007, which would have codified those requirements. Council then directed staff to propose text amendments including only the basic requirements and procedures for review of public art. The proposed text amendments were based on the previous request, with requirements for ~ public art omitted, per Council's request. On March 10, 2008, the PEC voted unanimously to recommend approval of the text amendments. On April 15, 2008, the Council unanimously voted to approve Ordinance No. 8, Series of 2008, upon first reading. Newbury moved to approve the ordinance for second reading with Rogers seconding. The thirteenth item on the agenda was the 2008 Asphalt Overlay Project. Town Engineer Tom Kassmel asked Council to authorize the Town Manager to enter into an agreement with B&B Excavating to complete the 2008 Overlay Project in the amount of $269,941.48. Staff received two bids for the 2008 Overlay Project, with B&B Excavating the low bidder. Submitted bids were within budget and below the engineer's estimate. The project consists of a maintenance asphalt overlay on portions of r`oads in East Vail, an asphalt mill and overlay of Vail Valley Drive from the South Frontage Road to Gold Peak, and asphalt patching on East LionsHead Circle. The project is budgeted as follows: $269,941.48 from the Capital Street Maintenance Budget. Daly moved to authorize the Town Manager to enter into an agreement with B&B Excavating to complete the 2008 Overlay Project in the amount of $269,941.48 with Rogers seconding. The motion passed unanimously, 7-0. The fourteenth item on the agenda was Adjournment. ' Newbury moved to adjourn with Foley seconding at approximately 10:00 p.m. The motion passed unanimously, 7-0 . 6 Dick Cleveland, Mayor ATTEST: Lorelei Donaldson, Town Clerk Minutes provided by Corey Swisher. 7 Vail Town Council Meeting Minutes Tuesday, May 20, 2008 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 IlAayor Dick Cleveland. Members present: Dick Cleveland, Mayor Kevin Foley Mark Gordon - Farrow Hitt Kevin Foley Kim Newbury Margaret Rogers Farrow Hitt Not present: Andy Daly Staff Members: Stan Zemler, Town Manager Matt Mire, Town Attomey The first item on the, agenda was Citizen Input. Cleveland announced local resident Buddy Lazier recently qualified to race in the Indianapolis 500. , The second item on the agenda was the Town Manager's Report. ? Fourth of July Policies. Police Chief Dwight Henninger outlined public safety plans for the July Fourth holiday, which includes maintaining the traditional youth curfew during the evening of the Fourth. "The only thing we are going to change is that regular Vail Transit and ECO bus service will continue as normally scheduled." Parking Structure Annual Maintenance Update. / Brandmeyer reported annual cleaning and re-striping would be taken place over the next few weeks in the parking structures. Rogers encouraged the parking of construction vehicles in outlying areas of the structures to make more convenient spaces available for shoppers and diners. 1 ? I-70 Overlay Update. Colorado Department of Transportation (CDOT) representative Gary Suiter explained I-70 overlay construction would begin the following week. "Project work will take place from 6:30 p.m. through 6:30 a.m. Sunday through Thursday...The project is scheduled to last 100 days with financial incentives in place to complete the project early." The overlay will include all of I-70 between Dowd Junction and the East Vail exit. Suiter clarified a smaller aggregate pavement would be used to create a smoother ride and produce less road noise. Monthly meetings will be held in the Vail Town Council Chambers to keep the community informed of the progress. Hitt clarified a different general contractor was in place to perform the work than was used in 2007. CDOT Resident Engineer Martha Miller reported barriers would continue to be installed in Dowd Junction. "This year they will be pre-cast as opposed to cast in place." Zemler asked if pre and post road noise would be monitored. Miller said that work had not been part of the contractor's bid. Cleveland verified with Miller that adequate signage would be provided. Gordon thanked Suiter and Miller for their outreach efforts. , The third item on the agenda was an Appointment to the VLMDAC. Assistant Town Manager Pam Brandmeyer asked Council to appoint one applicant to fill a vacancy on the VLMDAC (terms expire December 31, 2009) at the evening meeting. The mission of the VLMDAC is to strengthen the area economy by attracting visitors to Vail in the May to October time frame. Per C.R.S. 29-5-111 General powers of district. (1)(g) All applicants must be "owners of property within the boundaries of the district," which includes by definition corporations or entities which own property "within the boundaries of the district." Should an entity be appointed to this advisory council, it would then be up to that entity to appoint its designee. Additionally, owners of "taxable personal property" will be considered for appointment. The town received three (3) applications for the vacancy. The applicants were: Jamie Gunion, Todd Gurley and Michelle Kobelan. Newbury moved to appoint Gunion to the VLMDAC with Foley seconding. The motion passed unanimously, 6-0. The fourth item on the agenda was a Review of Development Options on the North Day Lot (NDL) and Provide a Decision to Proceed to Next Steps of the Preferred Option. Due to a predetermined conflict of interest (Vail Resorts affiliation) Mark Gordon recused himself from the item and left the Council Chambers. Public Works Director Greg Hall informed Council there were four primary questions related to the project Council needed to address: 1) What transportation modes should be placed on the north day lot? 2) What are the alternatives if we don't place all the modes on the site? 3) How do we pay for it? 4) Next steps? Council previously encouraged the redevelopment of the NDL to meet the goals of the master plan for this site. Specifically, that the uses of transit, skier drop off and hotel shuttles occupy the ground level of the site and these uses be placed on the eastern end of the site to better accommodate the users and provide a defined sense of arrival. Town staff and Vail Resorts Development Company (VRDC) staff and their design team provided revised development site plans. The presentation reviewed the pros and cons of each option as well as the costs. 2 ! Staff recommended: 1) Place all modes on the site. 2) No alternative is needed except, if and when the LionsHead Parking Structure redevelops, move the transit vehicles to that site if the design for the transit center is similar to the Open/Hillwood proposal. 3) Secure the remaining federal dollars; pursue other transit fund sources available; and make up the difference with Tax Increment Financing, if a shortfall still exists, make it up using capital, Real Estate Transfer Tax (RETT) or General Fund dollars. 4) Set a 60-day period to meet with Vail Resorts to refine the design to better meet the concerns of all involved. Refine costs of the design and prepare an agreement for council approval authorizing the town's intent to move forward with the project. Rogers confirmed federal funds would not be available for the project if it did not include mass transit. Hall said he believed Concert Hall Plaza would not be impacted by development of the NDL. Ruther explained through the adoption of the master plan six fundamental design objectives were set that relate to the entire LionsHead study area. The six design objectives include: pedestrian environment; connections to the natural environment; vehicular circulation; transit; service and delivery; and parking. Hall confirmed there was a three year window on the availability of the approved federal transit dollars. This would mean the grant approval expires in 2010. Vail Resorts CEO Rob Katz told Council, "I think we agreed it would be a very good idea to have a transit center in LionsHead...l think the issue we have with it is cost. The question is, is this a good use of funds? Should this be the priority? We think moving a transit center to EverVail will save between $12-15 million...ls there a guarantee we will build EverVail...The answer is essentially yes...We are ready to go (on the NDL) and we have been ready to go for quite some time...We are very committed to meeting all the intentions and agreements we entered into in December." Landmark Condominiums legal representative Dan Wolfe said, "I'd like to remind Council this project is going to be pretty impactful on the Landmark...l would suggest the North Day Lot is not the best location for a transportation Center...l would ask that Council not approve buses on the North Day Lot." Landmark Homeowner Rita Evans spoke in opposition to placing a transportation center on the North Day Lot. Landmark Developer Ron Clarkson explained the Landmark planned to redevelop in the near future. Jeff Jacobs, general manager of the Westwind Condominiums (adjacent property) asked Council to perform an environmental impact assessment prior to developing a transit.center on the North Day Lot. Kim Hughes, part owner of Concert Hall Plaza, encouraged Council to continue to develop the West LionsHead area. He also said he and his partners were willing to be partners with the town in their redevelopment. Local developer Ron Byrne encouraged Council to continue to move on the NDL post haste and take advantage of the developer's eagerness to continue. Katz clarified his transit center estimates did not include land costs. Vail Homeowners Association representative Jim Lamont said, "We have no clue what the demand for mass transit into this community is going to be...We would be well advised to spend the money...You (Council) are going to throw away our transit future for 120 employee housing beds?" Tom Steinberg commented, °The whole purpose of our bus system was to reduce our parking problems when we started our bus system 30 years ago...The NDL is the logical place for the transportation center." Geoff Wright, general manager of Landmark Condominiums reiterated that the homeowner's association was 3 adamantly opposed to using the NDL lot for buses. Rogers said she believed the town could not wait five to ten years (in reference to the LionsHead Parking Structure redevelopment) to obtain a new transit center. "The master plan identifies the North Day Lot as an ideal site for a transit center." Hitt spoke in support of transit on the NDL. He encouraged continuity with past Council decisions in regard to the development of the LionsHead Redevelopment Master Plan. Newbury said the town would do its best to mitigate the impacts of buses on the NDL. Foley said to try and "shoehorn" four bus stalls on the NDL would be wrong. Cleveland said he supported . transit, but believed the transit center cost estimates would only continue to escalate. He then said he believed shuttle bus drop off was in fact skier drop off. Rogers moved to approve transit on the site as contained in site plan options one and two, with Newbury seconding. The motion passed 3-2 with Foley and Cleveland opposed. Rogers moved to extend the agreement with VRI for up to 60 days with Hitt seconding. The motion passed unanimously 5-0. Rogers clarified transit on the NDL would not be revisited. The fifth item on the agenda was an update to the Council on progress made in developing and reviewing three (3) site plan "options° based on planning goals and design parameters approved by the Council as well as comments from the Chamonix Site Master Plan Advisory Committee; a report on the Advisory Committee and neighborhood meetings held on May 7, 2008; and a request for clarification from the Council on the issue of unit mix and the "target markeY" for the anticipated `for-sale' housing product. Planner Scot Hunn asked Council to provide staff and the design team with clarification regarding approved master planning goals and design parameters, with specific regard fo the preferred housing mix and the anticipated target market for the for-sale portion of the project. On March 4, 2008, Council re-affirmed, with modifications, the planning goals and design parameters originally adopted by the Council on January 22, 2008, for the Chamonix Site Master Plan project. Also at the March 4, 2008, meeting, Council authorized staff and the consultant team to proceed with conceptual design work for the Chamonix Site. On April 11, 2008, the Advisory Committee held a meeting to review three (3) preliminary site plan concepts for the site and provided feedback and suggestions to the staff and consultant team. Staff traveled to Aspen on April 17, 2008, to work with the consultant team to refine ideas and revisions generated from the advisory committee's comments. On May 7, 2008, staff hosted a Committee meeting, followed by an evening neighborhood meeting, to review the most recent site plan concepts. The intent of those meetings was to gain feedback from stakeholder groups regarding preliminary site plan "options" prior to commencing with any further design work. Project planner Gilbert Sanchez then reviewed three site plans with the primary focus being desired density. Foley, Cleveland and Hitt supported medium density, while Newbury and Rogers encouraged high density. Cleveland said he would not support a separate structure to house Fire Department student residents. Hitt said he believed it was imperative all fire house bays be drive- through so as to avoid fire apparatus reverse signals. It was established that 14 units per acre was the minimum threshold. Gordon commented, "I would like to view this project as a free market project and provide the market with what it wants." During a pause for public comment, Kaye Ferry asked if the Ambulance District would be ~ involved in the planning. Zemler said the town had recently engaged the ambulance district. 4 ~ ~ The sixth item on the agenda was a Visitor Center Contract Discussion. ~ Determine next steps in the selection process as it relates to the future operation of the Visitor Information Centers. The current term of the operational contract with Vail Info, Inc., runs to September 30, 2008. . Community Information Officer Suzanne Silverthorn informed Council that on October 1, 2005, Vail Info, Inc., assumed contractual operation of the Vail Visitor Information Centers in Vail Village and LionsHead following a request for proposal (RFP) process in 2005 and subsequent selection by the Vail Town Council from among three bidders. The contract provided an annual review process 'with the option to renew each year for a total of three years to be funded from the town's General Fund. The current term of the operational contact runs to September 30, 2008. Silverthorn then said it was the recommendation of the Visitor Information Center Committee to negotiate a new operational contract with Vail Info, Inc., for another three-year period effective October 1, 2008. "It is recommended the contract provide for an annual review process with the option to renew the contract each of the three years until , September 30, 2011." This option was reviewed by the Town Attorney and was deemed an acceptable recommendation as it relates to the town's bidding procedures and processes for contractual services. The Visitor Information Center Committee also recommended continuation of the commission-free Council policy enacted in 2005 for overnight lodging bookings by participating Vail properties. Silverthorn stated, "The town is satisfied with the performance of the current operator, Vail Info. Inc." Silverthorn also said she had heard from the finro chambers that had submitted proposals in 2005 and that neither organization was prepared to submit a proposal this year. Hitt said Vail Info. Inc. had been very creative and exceeded expectations. "I think we should absolutely continue with him." Hitt moved to extend the contract with Vail Info, with Foley seconding. The motion passed unanimously, 6-0. The seventh item on the agenda was an Art in Public Places (AIPP) Summer Exhibition, Workshop and Bronze Pour. AIPP Coordinator Leslie Fordham informed Council that AIPP holds an annual art exhibition in Ford Park. "This year, five sculptures by artist James G. Moore will be featured::.Moore makes large scale bronze bells embellished with scenes of wildlife. In past years, the summer exhibition has included an educational component...There has been the opportunity to meet the artists and attend informational lectures. AIPP has identified an educational opportunity for the visual arts this summer that will excite residents and guests." Following the success of the Heavy Metal Weekend in January, AIPP requested permission to host a summer sculpture workshop and bronze pour. The workshop, a family event, will give people the opportunity to make their own small bells similar to those in the exhibition. Sculptures made in the workshop will then be cast in a"bronze pour' held in Ford Park. The bronze pour, a visually exciting event, would take place on July 24 and will capture the interest of those looking for an evening activity or leaving the Bravo concert. In addition to casting bells made in the workshop, AIPP will cast bells with the Vail logo that can be sold to raise funds for the program. The Summer Exhibition with a bronze pour and workshop will cost $14,945. AIPP budgeted $7,000 for the exhibition only. Sponsors have contributed $2,400 to the summer event. It was estimated $2,500 can be raised via the sale of bronze bells with the Vail logo. Income from the workshop is estimated to raise approximately $500. AIPP requires an additional $2,545 to fund the project. The AIPP 2008 budget holds a ~ - , 5 line item titled Acquisition/Project Fund. The Board will use the Acquisition/Project Fund to pay the remaining cost of the project. AIPP requested Council approve the expenditure for the Summer Exhibition, Workshop and Bronze Pour. Rogers moved to. approve the request with Gordon seconding. The motion passed unanimously, 6-0. The eighth item on the agenda was :the First reading of Ordinance No. 9, Series of 2008, an ordinance amending Special Development District No. 6, Vail Village Inn, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for an addition to the Osaki Sushi Restaurant, located at 100 East Meadow Drive/Lot O, Block 5D, Vail Vilfage Filing 1. Prior to the Evening Meeting, the applicant requested the ordinance be tabled until June 3, 2008. Newbury moved to table the ordinance until June 3, 2008 with Rogers seconding. The motion passed unanimously, 6-0. The ninth item on the agenda was the First Reading of Ordinance No. 13, Series of 2008, an Ordinance amending Chapter 12-2, Definitions, Article 12-7G, Heavy Service District, Chapter 12-14, Supplemental Regulations, and Chapter 12-16, Conditional Use Permits, Vail Town Code, to allow for sexually oriented businesses as a conditional use in the Heavy Service District. Planner Rachel Friede reported that on May 6, 2008, Council unanimously approved Ordinance No. 11, Series of 2008, upon first reading. Ordinance No. 11, Series of 2008 established licensing requirements for sexually oriented businesses with amendments to Title 4, Business and License Regulations, Vail Town Code. Ordinance No. 13, Series of 2008, includes proposed text amendments to Title 12, Zoning Regulations, Vail Town Code, that establishes sexually oriented businesses as a conditional use within the Heavy Service (HS) Zone District. On May 12, 2008, the PEC unanimously voted to recommend approval of the proposed text amendments to the Vail Town Council. Newbury moved to approve the ordinance with Foley seconding. The motion passed unanimously, 6-0. ° The tenth item on the agenda was the First reading of Ordinance No. 5, Series of 2008, an ordinance approving a major amendment to SDD No. 4, Cascade Village, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for the development of a mixed use development, located at 1276 Westhaven Drive (Cornerstone site). Through a request from the applicant, LO Westhaven, Inc., staff requested Council table the public hearing to consider first reading of Ordinance No. 5, Series of 2008, to their regular meeting of June 3, 2008. Newbury moved to table the item until June 3, 2008 with Rogers seconding. The motion passed unanimously, 6-0. . The eleventh item on the agenda .was the Second Reading of Ordinance No. 1, - Series of 2008; an ordinance amending Chapters 12-13, Employee Housing, 12-23, Commercial Linkage, and 12-24, Inclusionary Zoning, Vail Town Code, to establish requirements that no less than one-half ('/2) the employee housing mitigation requirements for new construction and demo/rebuild projects be accommodated with on-site units. 6 On March 10, 2008, the PEC voted 4-3-0 (Gunion, Proper, and Viele opposed) to , forward a recommendation of approval, with modifications, for text amendments to establish standards and criteria related to mitigating employee housing requirements. Council then held work session discussions concerning the proposed text amendments on March 24 and April 15, 2008. On May 6, 2008, Council approved the first reading of Ordinance No. 1, 2008, by a. vote of 7-0-0. During a pause for public comment, Pam Stenmark said most employees chose not 'to live on site. Vail Homeowners Association representative Jim Lamont said he thought the zoning change was reasonable. Hitt moved to approve the ordinance with Rogers seconding. The motion passed unanimously, 6-0. , Newbury left the meeting at approximately 10:20 p.m. The twelfth item on the agenda was the Second reading of Ordinance No. 11, Series of 2008, An Ordinance Amending Title 4 of the Vail Town Code by the Addition of a New Chapter 12, Entitled "Sexually Oriented Business. The Town Code currently does not have regulations concerning sexually oriented business. By adding Chapter 12 "Sexually Oriented Business" to Title 4 of the Vail Town Code, the council is insuring the public's health, safety and welfare by establishing reasonable regulations to reduce the adverse secondary effects of such businesses within the Town. Rogers moved to approve the ordinance with Foley seconding. The motion passed unanimously, 5-0. The thirteenth item on the agenda was a 2008 Curb and Gutter Repair bid. Staff has received one bid for the 2008 curb and gutter repair program. The submitted bid from B&B Excavating is within budget and within ten percen# of the engineer's estimate. The project consists of removal and replacement of damaged concrete pan/curb and gutter. Gordon moved to a authorize the Town Manager to enter into an agreement with B&B Excavating to complete the 2008 curb and gutter repair in the amount of $379,876.93 with Rogers seconding. Foley clarified the work would take place throughout town. The motion passed unanimously, 5-0. The fifteenth item on the agenda was Resolution No. 11, Series 2008, a Resolution , Approving an Intergovernmental Agreement Between the Town of Vail, Colorado and the Eagle River Water and Sanitation District (ERWSD) Regarding Drainage and Sewage Improvements Along Beaver Dam Road and Beaver Dam Circle. ERWSD is replacing the water and sewer lines in Beaver Dam Road and Beaver Dam , Circle over the next finro years. The Town of Vail needs to complete budgeted drainage and road improvements along Beaver Dam Rd and Beaver Dam Circle. It is in the best interest of both the Town and ERWSD to complete the projects simultaneously using one contractor. At the March 18th Council meeting, the Council gave staff direction to proceed with the development of an IGA with ERWSD to cost-share the project and bring it back to Council for approval once the construction bids had been opened and costs were known. ERWSD has since had the public bid opening and has awarded the contract to the lowest qualified bidder, Western Slope Utilities. The town's portion of work has been bid at $304,765.52 plus costs for field measured restoration. This project has been budgeted within the Capital,Street Maintenance Budget. Foley asked 7 if landscaping along Beaver Dam Road would be adequately replaced. Hitt moved to approve the resolution with Foley seconding. Thg motion passed unanimously, 5-0. The sixteenth item on the agenda was Adjournment. Hitt moved to adjourn with Rogers seconding. The motion passed unanimously, 5-0, at approximately 10:30 p.m. Dick Cleveland, Mayor ATTEST: Lorelei Donaldson, Town Clerk Minutes provided by Corey Swisher. . I . O . MEMORANDUM TO: Vail Town Council FROM: Community Development Department DATE: June 3, 2008 SUBJECT: An appeal, pursuant to Section 12-3-3, Appeals, Vail Town Code, of the Town of.Vail Design Review Board's denial of a design review application, submitted according to Chapter 11, Design Review, Vail Town Code, to allow for installation of an information kiosk, located on Tractss B-C, Vail Village Filing_ 1(On Bridge Street, north of the covered bridge, across East Meadow Drive from the Vail Transportation Center, near the skier statue), and setting forth details in regard thereto (DRB 08- , 0132). Appellant: Town of Vail Public Works Department, represented by Todd Oppenheimer DRB Representative: Pete Dunning - Chair Planner' Nicole Peterson I., SUBJECT OF APPEAL On May 7, 2008 the Design Review Board denied the design review application (DRB 08- 0132) to allow for installation of a prototype information kiosk located on Tractss B-C, Vail Village Filing 1(On Bridge Street, north of the covered bridge, across East Meadow Drive from the Vail Transportation Center, near the skier statue). The prototype kiosk is the first of eight custom designed kiosks by Great South Bay Sign Company (Cornerstone Kiosk subsidiary). The 4-sided kiosk is 96 inches tall with a 52 inch square base. All 4 sides include a bronze color header plaque to read `VAIL INFORMATION' and bronze color Town logo seals wh'ich copy the 8150 manhole design. Three of the four sides include a 36 inch x 30 inch illuminated cabinet with business directories for Vail Village and Lionshead, calendar of events and marketing materials. The fourth side will include a dual-screen (19 inch computer monitors) interactive, updated information center. The entire kiosk is made of a maintenance-free, hard-coat polystyrene material that is formed to look like stucco over the main structure and asphalt shingles on the roof. Staff has attached a kiosk rendering and draft map of the proposed eight kiosk locations. A material sample will be provided at the Town Council meeting. The Board denied the request (DRB 08-0132) with the finding that the design did not meet the intent of Section 14-10-5A, criteria numbers 1-3, Building Materials and Design, Vail Town Code. In particular that the synthetic polystyrene material of the proposed structure does not comply with the building material standards set forth in Section 14-10-5A. On May • 14, 2008, the Town of Vail Community Development Department received an appeal with regard to the Design Review Board's action to deny the aforementioned design review application. Please see the following attachments for more detailed information: A. Memorandum from the Appellant, B. Kiosk description and cost estimate from Appellant, C. Denied kiosk rendering (DRB08-0132), D. ' Draft kiosk locations map, E. Construction Mitigation Working Group notes (May 23, 2008), and F. Public Notice. 1 II. STANDING OF APPELLANT The Appellant, Town of Vail Public Works Department, represented by Todd Oppenheimer, has standing to file an appeal as the applicant of the design review application (DRB 08- 0132), pursuant to Section 12-3-3, Appeals, Vail Town Code, of the Town of Vail Design Review Board's denial of a design review application, submitted according to Chapter 11, Design Review, Vail Town Code, to allow for installation of an information kiosk, located on Tracts B-C, Vail Village Filing 1(On Bridge Street, north of the covered bridge, across East Meadow Drive from the Vail Transportation Center, near the skier statue). III. REQUIRED ACTION The Town Council shall uphold, overturn, or modify the Design Review Board's denial of a design review application, submitted according to Chapter 11, Design Review, Vail Town Code, to allow for installation of an information kiosk, located on Tracts B-C, Vail Village Filing 1(On Bridge Street, north of the covered bridge, across East Meadow Drive from the Vail Transportation Center, near the skier statue) (DRB 08-0132). Pursuant to Sub-section 12-3-3-C5, Vail Town Code, the Town Council is required to make findings of fact in accordance with the Vail Town Code: `The Town Council shall on all appeals make specific findings of fact based directly on the particular evidence presented to it These findings of fact must support conclusions that the standards and conditions imposed by the requirements of this title (Zoning Regulations, -Title 12) have or have not been met." IV. BACKGROUND On April 16, 2008, the Design Review Board denied the design review application (DRB 08- 0029) to allow for installation of an information kiosk located at Bridge Street, north of the covered bridge, across East Meadow Drive from the Vail Transportation Center, near the skier statue. The Board denied the request with the finding that the design of the kiosk did not meet the intent of Section 14-10-5A, Building Materials and Design, Vail Town Code. In particular that the synthetic roof material proposed did not comply with Section 14-10-5.A, criteria numbers 1-3, Vail Town Code. In response to the Design Review Board's decision, the applicant submitted a new design review application (DRB 08-0132) including a more detailed rendering and a sample of the kiosk synthetic roof material that was of concern to the Design Review Board. Again; on May 7, 2008 the Design Review Board denied the design review application (DRB 08-0132) to allow for installation of an information kiosk. The Board denied the request with the finding that the design of the kiosk did not meet the intent of Section 14-10-5A, criteria numbers 1-3, Building Materials and Design, Vail Town Code. On May 14, 2008, the Town of Vail Community Development Department received an ' appeal with regard to the Design Review Board's action to deny the aforementioned design review application. On May 23, 2008, Staff attended the weekly Construction Mitigation Working,Group to update the business community on the progress of the information kiosk project. Staff has attached the notes from the May 23`d meeting (Attachment F). 2 1 V. APPLICABLE REGULATIONS OF THE TOWN CODE Section 12-2 Definitions of Words and Terms (in part) STRUCTURE: Anything constructed or erected with a fixed location on the ground, but not including poles, lines, cables, or other transmission or distribution facilities of public ufilities, or mailboxes or light fixtures. At the discretion of fhe design review board, swimming pools and tennis courts may be exempted from this definition. Section 12-3 Administration and Enforcement (in part) Section 12-3-3: Appeals (in part) . C. Appeal Of Planning And Environmental Commission Decisions And Design Review Board Decisions: . 1. Authority: The Town Council shall have the authority to hear and decide appeals from any decision, determination or interpretation by the Planning and Environmenta! Commission or the Design Review Board with respect to the provisions of this Title and the standards and procedures hereinafter set forth. 2. Initiation: An appeal may be initiated by an applicanf, adjacent property owner, or any aggrieved or adversely affected person from any order, decision, defermination or interpretation by the Planning and Environmental Commission or the Design Review Board with respect to this Title. "Aggrieved or adversely affected person"means anyperson who will sufferan adverse effect to an interest protected or furthered by this Title. The alleged adverse interest may be shared in common with ofher members of the community at large, but shall exceed in degree the general interest in community good shared by all persons. The Administrator shall determine the standing of an appellant. If the appellant objects to the Administrator's determination of standing, the Town Council shall, at a meeting prior to hearing evidence on the appeal, make a determination as to the standing of the appellant. lf the Town Council determines that fhe appellant does not have standing to bring an appeal, the appeal shall not be heard and the original action or determination stands. The Town Council may a/so call up a decision of the Planning and Environmental Commission or the Design Review Board by a majority vote of those Council members present. 3. Procedures: A written notice of appeal must be filed with the Administrafor within twenty (20) calendar days of the Planning and Environmental Commission's decision or the Design Review Board's decision becoming final. lf the /ast day for filing an appeal falls on a Saturday, Sunday, ora Town-observed holiday, the last day for filing an appeal shall be exfended fo the next business day. Such notice shall be accompanied by the name and addresses (person's mailing and property's physical) of the appellant, applicant, property owner, and adjacent property owners (the list of property owners within a condominium project shall be satisfied by listing the addresses for fhe managing agent or the board of directors of the condominium association) as well as specific and articulate reasons for the appeal on forms provided by the Town. The filing of such notice of appeal will require the Planning and Environmental Commission orthe Design Review8oard to forward to the Town Council af the next regularly scheduled meeting a 3 ~ summary of all records concerning the subject matter of the appeal and fo send written notice to the appellant, applicant, property owner, and adjacent property owners (notification within a condominium project shall be satisfied by notifying the managing agent or the board of directors of the condominium association) at least fifteen (15) calendar days prior fo the hearing. A hearing shall be scheduled to be heard before the Town Council on the appeal within forty (40) calendar days of the appeal being filed. The Town Council may grant a confinuance to allow the parties additional time to obtain information. The continuance shall be allowed for a period not to exceed an aalditional thirty (30) calendar days. Failure to file such appeal shall constitute a waiver of any rights under this Chapter to appeal any interpretation or determination made by the Planning and Environmental Commission or the Design Review Board. 4. Effect Of Filing An Appeal: The filing of a notice of appeal shall stay all permit activity and any proceedings in furtherance of the action appealed unless the administrafive official rendering such decision, determination or interpretafion certifies in writing to the Town Council and the appellant that -a stay poses an imminent peril to life or property, in which case the appeal shall not stay further permit activity and any proceedings: The Town Council shall review such certiricafion -and grant or deny a stay of the proceedings. Such determination shall be made at the next regularly scheduled meeting of the Town Council. 5. Findings: The Town Council shall on all appeals make specific findings of fact ~ based directly on the particular evidence presented to it These findings of fact must support conclusions that the standards and conditions imposed by the requirements of fhis Title have or have not been met. Section 12-11 Design Review (in part) 12=11-1: INTENT.• A. Attracfive Attribufes Recognized: Vail is a Town with a unique natural settinq, internationallvknown forits natural beauiv alpine environment, and the compatibilitv of manmade structures with the environment. These characteristics have caused a siqnificant number of visitors to come to Vail with manv visitors eventuallv becominq permanent residents participating in communitV life. 8. Area CharacterProtection: These factors constitute an important economic base for the Town both for those who eam their livinq here and for those who view the Town as a arecious phvsical possession. The Town Council frnds that new develoament . and redevelopment can have a substantial impact on the character of an area in which if is located. Some harmful effects of one land use upon another can be prevented through zoning, subdivision controls, and building codes. Otheraspects of development are more subtle and less amenab/e to exact rules put into operation without regard to specific development pr+oposals. Among these are the general form of the land before and after development, the spatial relationships of structures and open spaces to land uses within fhe vicinity and the Town, and the appearance of buildings and open spaces as they contribute to the area as it is being developed and redeveloped. In order to provide for the timely exercise ofjudgment in fhe public interest in the evaluation of the design of new developmenf and redevelopment, the Town Council has created a Design Review Board (DRB) and design criteria. 4 / . C. Design Review. Therefore, in order to preserve the nafural beautv of the Town and its settinp, to protect the welfare of the communifv, to maintain fhe values created in the communitv, to protect and enhance land and propertv, for the promotion of health, safety, and qeneral welfare in the communitv, and to attain the obiectives set out in this Section • the im,vrovement or alteration of open space, exterior desipn of all new development, and all modirlcations to existinq development shall be subiect to . desiqn review as specifted in this Chapter. D. Guidelines: It is the intent of these guidelines to leave as much design freedom as possible to the individual designer while at the same time maintaining fhe remarkable • natural beauty of the area by creating structures which are designed to complement both theirindividual sites and surroundings. The objectives ofdesign reviewshall be as follows: . 1. To recognize the interdependence of the public welfare and aesthetics, and to provide a method by which this interdependence may continue to benerit ifs citizens and visitors. 2. To allow for the development of public and private property which is in harmony with the desired character of the Town as defined by the guidelines herein provided. 3. To prevent the unnecessary destruction or blighfing of the natural landscape. 4. To ensure that the architectural desiqn, location, confr4uration materials, colors, and overall treatment of built-up and open spaces have been desiqned so that thev relate harmoniouslv to the natural landforms and native veqetation, the Town's overall appearance, with surroundinq development and with officiallv approved plans or quidelines, if any, for the areas in which the structures are proposed to be located. 5. To protect neighboring property owners and users by making sure that reasonable provision has been made for such matters as pedestrian and vehicular traffic, surface water drainage, sound and sight buffers, fhe preservation of light and air, and those aspects of design not adequately covered by other regulations which may have substantial effects on neighboring land uses. Section 14-1-1 Development Standards Purpose and Intent It is the purpose of these rules, regulations, and standards to ensure the general health, safety, and welfare of the community. These rules, regulations, and standards are intended to ensure safe and efficient development within the town of Vail for pedestrians, vehicular traffic, emergency response traffic, and the communify at large. The development standards will help protect property values, ensure the aesthetic qualitv of fhe communitv and ensure adequate development of property within the town of Vail. (Ord. 29(2005) § 78) Section 14-10-5 Building Materials and Design (in part) A. The use of noncombustible building materials and designs intended to prevent the spread of fire are highly encouraged. Predominantly natural building materials shall be used within the fown of Vail. The exterior use of wood, wood siding, native stone, brick, concrete, stucco, and EIFS may be permitted. Concrete surfaces, when permitted, shall be treated 5 ` with texture and color; however, exposed aggregate is more accepfable than raw concrete. The exterior use of the following siding materials shall be prohibited: sfucco or EIFS with -gross textures or surface features that appear to imitate other materials, simulated stone, . simulated brick, plastic and vinyl. The exterior use of anv buildinq material, includinq those not specificallv identified by this section, shall onlv be permitted, unless otherwise prohibited bv this code, where the desiqn review board finds: 1. That the proposed maferial is satisfactorY in qeneral appearance, quality over fime, architectural style, desi.qn, color, and texture: and 2. That the use of the proposed material complies wifh the intent of the provisions of this code; and " 3. That the use of the proposed material is comQafible with the structure, site, surroundinq structures, and overall characfer of the town of Vail; and 4. That the material is noncombustible or aids in the prevention of fires. VI. DISCUSSION ITEMS On'an appeal, the Town Council shall make specific findings .of fact based directly on the particular evidence presented. These findings of fact must support conclusions that the standards and conditions imposed by the requirements of the Vait Town Code, have or have not kieen met. . Section 12-11-1, 14-1-1. and 14-10-5, Vail Town Code stated in Section V of this memorandum, above shall assist the Council in determining findings of fact. In particular, the underlined portions of the Code Sections and Section 14-10-5A criteria 1-3, which the Design Review Board stated as reason to deny the design review application. Please find Staff's recommended finding in Section VII Staff Recommendation, below. VII. STAFF RECOMMENDATION The Town of Vail Design Review Board recommends that the Town Council upholds the Design Review Board's denial of a design review application (DRB 08-0132), to allow for installation of an information kiosk, located on Tracts B-C, Vail Village Filing 1(On Bridge Street, north of the covered bridge, across East Meadow Drive from the Vail Transportation Center, near the skier statue). Should the Town Council choose to uphold the Design Review Board's denial of a design review application (DRB 08-0132), to allow for installation of an information kiosk, located on Tracts 6-C, Vail Village Filing 1(On Bridge Street, north of the covered bridge, across East Meadow Drive from the Vail Transportation Center, near the skier statue) the Design Review Board recommends the Council pass the following motion: `The Vail Town Council upholds fhe Design Review Board's denial of a design review application (DRB 08-0132), submitted according to Chapter 11, Design Review, Vail Town Code, to allow for installation of an information kiosk, located on Tracts B-C, Vail Village Filing 1(On Bridge Street, north of the covered bridge, across East Meadow Drive from the Vail Transportation Center, near the skier statue), and setting forth details in regard thereto." 6 ; Should the Town Council choose to uphold the Design Review Board's denial of a design review application (DRB 08-0132), to allow for installation of an information kiosk, located on Tracts B-C, Vail Village Filing 1(On Bridge Street, north of the covered bridge, across East Meadow Drive from the Vail Transportation Center, near the skier statue), the Design Review Board recommends the Council makes the following finding: "The Town Council finds: That the standards and conditions imposed by. the requiremenfs of Section 14-10-5- A, Vail Town Code, have not been met." VIII. ATTACHMENTS. A. Memorandum from the Appellant. B. Kiosk description and cost estimate from Appellant C. Denied kiosk rendering (DRB08-0132) D. Draft kiosk locations map E. Construction Mitigation Working Group notes (May 23, 2008) F. Public Notice 7 . , Attachment A: Memorandum from the Appellant Memorandum To: Vail Town Council From: Todd Oppenheimer, Department of Public Works and Transportation - ' Date: May 14, 2008 RE: Vail Information Kiosk DRB Appeal Background Information Business community has desired to have-directories and maps created and installed for several years. Two attempts to design a directory kiosk using the Request for Proposal.process (RFP) were made in April 2003 and November 2005. Multiple companies and individuals responding included advertising companies, graphic designers, and artists. None of the proposals were found to satisfy the requirements of the project. At the same time the discord among different business groups,made it difficult to develop consensus on the design and function of the directory kiosks. Prior to 1998 an attempt at an interactive computer kiosk was made by a.private advertising company. A structure was built in Slifer Square to accommodate the equipment. This attempt failed due to constant equipment malfunctions.. The structure was removed when the Slifer Square streetscape work was completed prior to the 1999 World Ski Championships. . Current Proposal The Directory Kiosk project was shelved for awhile after the 2005 RFP yielded no satisfactory responses. During that time period the business organizations have consolidated, marketing has become more focused and organized, and technology has caught up with the requirements of the project. The project is now being referred to as the Vail Information Kiosk. The desired function of the kiosk is to provide business directory maps for the Vail Village and Lionshead areas, special event information and calendars, community information videos, and an interactive system where guests can obtain additional information, grooming reports, road conditions, etc. This proposal is a prototype we are testing and the goal will be to have 8 kiosks in key locations identified by the business community to serve a1T guests within Vail Village and Lionshead. Timing is important on the project so that we can place the prototype this summer and see how it holds up dur.ing that season and the winter season to see if it is viable to use this structure for the other seven locations moving forward. 8 ` The Department of Public Works will be resporisible for maintenance of the physical structure while the IT Department will service the computer equipment. Reducing maintenance requirements is strongly desired by the Department of Public Works for cost efficiencies and to reduce man hours. Great South Bay is an advertising sign company located in Bayport, NY. In 2007, Great South Bay, came across the old RFP on-line and made an inquiry as to its outcome. Great South Bay presented a product they have created called the Cornerstone Kiosk which will satisfy the requirements of the Information Kiosk project. The Cornerstone Kiosk is a pre-manufactured unit which is shippedifrom the manufacturer and installed on-site with minimal assembly. The kiosk unit is constructed-of a polystyrene material with a hard, durable, textured, and colored top coating applied at the factory. The product requires minimal maintenance and has a life expectancy of 30 to 50 years. The oldest installation has been in place for 17 years with no signs of deterioration. Several organizations which have purchased the Cornerstone Kiosk were contacted. All references received were positive. - Design Review Board Process , The Vail Information Kiosk project has been before the DRB on three occasions. The application was tabled once, and then denied the second time. A second application was submitted with new information in the way of a roof sample. This application was also denied. Board members expressed concern that the polystyrene material was not a"predominantly natural building material" as stated in the town code and referenced that code in the meeting record. . Staff is appea3ing the DRB decision and asking the Town Council, to overturn the decision to.deny and allow the installation of a prototype Information Kiosk to proceed. Staff feels strongly that the proposed, kiosk design, manufactured of the polystyrene material, is a reasonable and appropriate solution to a project which has been a challenge to complete. -9 . Attachment B: Kiosk description and cost estimate from Appellant Vail Information Kiosk Project Summary May 22, 2008- Design: Custom design by Great South Bay Sign Company in cooperation with TOV. 52" square base. 96" Overa•11 height. Hard-coat polystyrene material,,Colors BM #HC-68 and BM #HC-77, (4) 8" x 30" bronze color header plaques, copy to read "VAIL INFORMATION". (4) 16" bronze color Town logo seals (8150 manhole design). See attached image. Locations: 1. Slifer Square - Prototype 2. Checkpoint Charlie area 3. Mountain Plaza (Vista Bahn area) 4. East Meadow Drive @ Solaris 5. East Meadow Drive @ Mountain Dog 6. Lionshead East Portal (bus stop) 7. Lionshead Pocket Park (Sundial Plaza) 8. Lionshead West Portal (TBD) Content: Panel 1. Dual screen (19" computer monitors) KIS System Upper monitor. Flat screen, non-interactive . Content: Airing of Plum TV or TV 8 content. Tie to public information system for emergency . services and other time specific data. Looped video marketing messages. Lower Monitor. Interactive touch screen, accessible to disabled. Functions: Access to vailgov.com and/or vail.com Community information. Dining, Lodging, and Activities reservations. Panel 2. 36" x 30" illuminated cabinet with Vail Village Business Directory. Panel 3. 36" x 30" illuminated cabinet with.Lionshead Business Directory., Panel 4. 36" x 30" illuminated cabinet with Calendar of Events/Marketing.. Estimated Cost: Great South Bay quote, 52" unit with KIS System: $46,400 each (quantity discounts available). Computer equipment is $25,100 of quoted price. Life expectancy: 30 to 50 years. Site Work estimate including site preparation, electrical wiring, and concrete slab (Slifer Prototype only): $ 12,600. Total Estimate cost: $ 59•,000. Poster updates are anticipated 2x per year and are anticipated to cost $ 75.00 each. 10 ,f Draft Town of Vail Kio?sk Locations AttaGhment b , ~ . . , . ~ .».T . . ~ „ w k x ~ „41 ~ 7 b ; r~ • y , ~ . , . _ . . „ . !„....'«srr r , , ~s~..-~ r+ ~ M S ~'`r "~,`.r' ^°""'"~`~...w.-r..,..-,,. . ,.,w.y-., . L'~ 3 ...",,',:~..yq....,....,.-:... "~...G::°, '+-.~y"`"*'~;i:;~'w„' ~•F ~ia A } ~•1~"Y ..c Mt~,o~ £ { . ~ I "Ic i t ! q ~ t g . "4 M ~ ~ ~ : + ~ s:_ ~ a M r a ha t ii' ~~~~.v~ • _ ,g, ~`~~'wk w-.~. ~ ~ ~ 1w~IpYl~yl~y~~ ~ x~ ~ t • \ , ~d ~ T . ' : j}~ A d / t . . , r . . . . . ~ A. X ,'~i~ . . ~ ~ z a . , _ . a, ~ f `~7 a $ ~ ~ w i ~ F ~ ~5~~~ ' £ t t~~~ • xt~.~,~e ~.7E''~ r' ~+t~~~~ _ v. , • ~ ~ ~ S'e ~ ~ . +~~x.~.~„~.: ~ _1 « t ~'u°t~'~ ~ drdF,m~ 1 ~,."`°s t~ ~t d-. ~r ~ ~ r , i ! °f~ :r' , • ~ q s~~. W ~ r A~~,~k:'e r A f~ic r " ~ j " .~h~;.. ra ~ ~ ' t ~ C1 ` ' ~ t ~z,~^^ ~ , Pm ~S ~ . . ~ 'y` ' y 4x+ a " : . , . , , ~ . . . . .A ~ ~t W t e >q~ r ~ 6 d ~ i Y ~ . p. ~ • - . ~ ~ f ~ ~ ^ ~ • ~ v A~ 1 ~iF .5 L tl.~~' ~ ° ~ 3 K ~ E ' tia - m~ . ~f ~kyt iA b e ~ I ~ a: 4 I, r Q ` , e' ^e ' a va ' . A . . . . Gore Creek d ° q a , ~ . ~ ~ ~ . ' y ; . + , y~,' ~ ,~lr•k ~ ~ Kio$k LQcalionS ~ r u.. ` ` ~a f T,, ~ {j y~ 4'+V ` ~ This map was crealcd by the Town ot Vaf16iS workgroup. Use ai this map should he for general purposes only. Last Madified: May 21, 2008 The Taxrci ot Vail dnes not warrant the accur2cy ot the informaGOn contained herein (where shpwn, parcel Gne work is appmximate) ` . „ .A.. . _ _ _ ; . : . . ~.@.. n.. , , r.. > . . s.. . ~ 'a~~? a G~'? . M ud~ 9'~ d~ ~ ~ `i +~sKa~, r f E ~ 3 ~ . {p +k 5-^ . r ~ r- .,a",. . t/,a».~., ; ( ~„~`,`a~Y IYGI q 9 ~ ~ Y S a , ~ ~ j t~ q ` n"'^..., ~ ir a....,, . ,.....~^k ~.,.~°"``t P ~ , , i~P.. s . A ~ v ~ ~s ~ t~ ~ ~ f"? Attachment E: Construction Mitigation Working Group notes CONSTRUCTION MITIGATION WORKING GROUP Friday, May 23, 2008 Meeting Notes Those attendinq: Chip Nelson (on behalf of ;Jeannette), Chris Romer, Steve Rosenthal, Joe Walker, Stan Zemler Staff & Guests: Katie Coakley, Matt Greene, Kelli McDonald, Sybill Navas, Todd Oppenheimer, Nicole Peterson, Leonard Sandoval, Suzanne Silverthorn, Gary Suiter . Kiosk Project Todd Oppenheimer explained the history of the information kiosk project, in which the town has attempted to work with the Vail Chamber & Business Association to place business directories and other visitor information within a self-supporting kiosk. Several prototypes have been explored through the years. The most recent attempt was recently denied by the Design Review Board due to a disagreement over use of materials. The town staff has appealed the DRB decision to the Town Council which will hear the matter at its June 3 evening meeting. The group reviewed the proposed design and expressed support for the project. Members were invited to attend the June 3 meeting and/or contact the Town Counci{ to express their support. . 11 Attachment F: Public Notice THIS ITENI MAY EFFECT YOUR PRC)PEFt'i''If ' PUBLIC NOTICE NOTICE tS HE.REBY G61++EN Ehat ft '1°awn Coundl of the Town of Vail 'vtfN hold a pufdliG hearing 'n aacardance Vdh Section 12-3-3, Vail Torwn Cade, an June 9i 2008, at g.Op PM in Ehe Tawn of Vail Murr9apal Buikfing,, in conWe'raVon of: ,IT@M/Tf]PIC: An appea9, ptirsuant ta Secfiah 12-3-3P Appeats, Vail Tatvn Cade, crf 9he Tcw+n oE Vail Design Rewiew Boarri's atenial of a Oesign Reviiew applica9Man: svbmiite(I ar,cording to GhaRter 11, taesi-mgn Revlevrr,Vail Town Code, to aflow for installatiora of an antvrraation kiosk, Ipcated on Tract B-C. Vail Vallagefiling 1(on OrkW Street, noa~fhh of fhe covered bridge, acxos$ East MJfeadotirr Dr(ve tr+am the Vail Transpanrtation Center„ neac the skier statUe) and settirrg fort.h ctetalls frr Mard theretto, Appe9lant, Town of Vail, represented by T4dd +DppenheimeF, Pubkc UtilGr9cs P9anner: Wirn9e. Pekwsan The applie.ations arad intormatim abou6 the psrapasals am avaiiable fvr public inspectivn during regular office hours at the Tdrvin of'Vail Comrriunirty Dewelopfnnerrt DeRartment, 75 Soufh Frontage Raad_ The public is invitad to aftend project orienkatian and the she vasfts that precede the Qubfic , hearing in 4he Tttwn of 1fail Comranunity Develc~Crrrtent Department. Please -Cdq (910) 479-2 i38 fvr additivnal infiarrAtatian. Si$n Danguag+a interpretatl4n ls available upon request witli 24-twur natificaticm Please call (970) 479-2356T TeIephare for the Hearing Impailredp far tnfarmatlon, Published May M 2008, in the Vail baety '12 ' MEMORANDUM To: Town Counci9 From: Art in Public Places Date: June 3, 2008 Subject: Triumph Winterfest Artist Selection Summary of Triumph Development's Public Art Obligation for The Willows Public Art is a condition of The Willows development approval. The Town Council allowed Triumph Development to partially satisfy the requirement with a donation towards the new fountain at Seibert Circle. In 2008, the Town Council approved a request from Triumph, Development for the remaining public art obligation, $50,000, to be used for a public art series organized by AIPP. AIPP proposed using the funds for an annual winter visual arts event titled Triumph Winterfest. The developer made an additional donation of $50,000 to the Town of Vail for the public art series. Background _ The first Triumph Winterfest, held in January 2008, featured ice sculptures with an environmental theme designed by artist Lawrence Argent. Argent is well known for his Big Blue Bear at the Denver Convention Center. Each of the seventeen organic forms were lit internally with LED's programmed to change color subtly throughout the evening.. The ice sculptures attracted locat and national media attention. Hundreds of visitors were delighted by the forms and could be seen photographing themse{ves with the sculptures during the day and at night. When the ice eventually melted in March, AIPP received numerous phone calls from disappointed community members who looked forward to the nightly display. Funding for the Event $40,724 was budgeted for Triumph Winterfest 2008. AIPP raised $11,100 to help offset costs. LED lights removed from fountains on Wall Street were recycled for the event, thus reducing the cost to $34,000. $77,100 is remaining for future Winterfest events. AIPP has set a budget of $40,000 for Triumph WinterFest 2009 and selected artist Lawrence Argent to design multiple ice elements that will be thematically and conceptually cohesive. Argent has requested a fee of $5,000 which includes designing the artwork, site visits, overseeing installation and assisting with the ice sculpting. Once the artwork has been decided, AIPP can determine the exact project cost including ice, lighting and advertising. Description of Request Art in Public Places is requesting the Town Council approve an overall project budget of $40,000 including paying artist Lawrence Argent a fee of $5,000. Funds for Triumph Winterfest come from Triumph Development and otiier sponsors. AIPP Board Recommendation The AIPP Board approved the expenditure, noting the savings made in 2008. The Board recommends the Town Council approve the request. asG.NT STUDl05 3014 Wyandot St. Denver, CO 80211 3034338263 VOICE 3039059031 C[LL 303 5610585 FAX www.lawrenceargent.com Prouosal for The City of Vail, Art in Pubiic Places Temoorarv Exhibit in ]anuarv 2009 ~ Design Fee- $5,000 As exempiified in this year's 2008 sculptural event, "Verdant Meadows", Scott Rella and myself will collaborate on the Vail project creating sculptural elements out of ice with site-specific placernent. The sculptures will have multipie elements that are thematically and conceptually cohesive. My role as I see it, is to design in coliaboration with Scott and have presentation materials for the committee, to review. I wiil oversee and be responsible for the concept and design: Also, as in the last collaboration, I will be available and on site'during installation to assist and sculpt the works within the vision that has been initiated. I find this to be an integral component Eo, the works final manifestation and probably, the most enjoyable, as one sees the ice come to life. I look forward to this possibility and I thank the Art in Public Places Commission for their continued support. Sincerely, . . . Lawrence Argent . 1 MEMORANDUM TO: Town Council . FROM: Community Devefopment Department DATE: June 3, 2008 SUBJECT: A request for first reading of Ordinance No. 9, Series of 2008, an ordinance amending Special Development District No. 6, Vail Village Inn, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for an addition to the Osaki Sushi Restaurant, located at 100 East Meadow Drive/Lot O, Block 5D, Vail Village Filing 1, and setting forth - details in regard thereto. (PEC080016) . Applicant: Takeshi and Kazue Osaki, represented by KH Webb - Architects Planner: Bill Gibson 1. DESCRIPTION OF THE REQUEST First reading of Ordinance No. 9, Series of 2008, an ordinance amending Special Development District No. 6, Vail Village Inn, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for an addition to the Osaki Sushi Restaurant, located at 100 East Meadow Drive/Lot O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. II. BACKGROUND On April 28, 2008, the Planning and Environmental Commission voted 4-0-2 . (Kjesbo and Viele recused) to forward a recommendation of approval, with conditions, for a major amendment to Special Development District No. 6, Vail Village Inn, to allow for an addition to the Osaki Sushi Restaurant, located at 100 East Meadow Drive/Lot O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. On May 20, 2008, the Town Council tabled this item to it June 3, 2008, hearing at the applicants' request. . The applicants are requesting that the Town Council tables the first reading of Ordinance No. 9, Series of 2008, to its July 1, 2008, pubfic hearing to allow the applicants additional time to resolve issues related to the condominium association's approval of this request. III. STAFF RECOMMENDATION Staff recommends the Town Councii tables the first reading of Ordinance No. 9, Series of 2008, to its July 1, 2008, public hearing. 1 MEMORANDUM TO: Vail Town Council FROM: Community Development Department DATE: June 3, 2008 SUBJECT: Second reading of Ordinance No. 13, Series of 2008, an Ordinance amending Chapter 12-2, Definitions, Article 12-7G, Heavy Service District, Chapter 12-14, Supplemental Regulations, and Chapter 12-16, Conditional Use Permits, Vail Town Code, to allow for sexually oriented businesses as a conditional use in the Heavy Service District, and setting forth details in regard thereto. Applicant: Town of Vail Planner: Rachel Friede 1. DESCRIPTION OF REQUEST The applicant, the Town of Vail, is requesting a second reading of Ordinance No. 13, Series of 2008, an Ordinance amending Chapter 12-2, Definitions, Article 12-7G, Heavy Service District, Chapter 12-14, Supplemental Regulations, and Chapter 12-16, Conditional Use Permits, Vail Town Code, to allow for sexually oriented businesses as a conditional use in the Heavy Service District, and setting forth details in regard thereto. The Vail Town Council can choose to approve, approve with modifications, or deny Ordinance No. 13, Series of 2008, on second reading. • Based upon Staff's review of the criteria outlined in Section V of the Planning and Environmental Commission memorandum dated May 12, 2008 and the evidence and testimony presented, the Community Development Department recommends the Vail Town Council approve Ordinance No. 13, Series of 2008, subject to the findings noted in Section III of this memorandum. II. BACKGROUND On May 6, 2008, the Vail Town Council unanimously approved Ordinance No. 11, Series of 2008, upon first reading. Ordinance No. 11, Series of 2008 established licensing requirements for sexually oriented businesses with amendments to Title 4, Business and Licensing Regulations, Vail Town Code. ' Ordinance No. 13, Series of 2008, includes proposed text amendments to Title 12, Zoning . Regulations, Vail Town Code, that establishes sexually oriented businesses as a conditional use within the Heavy Service (HS) Zone District. On May 12, 2008, the Planning and Environmental Commission voted unanimously to recommend approval of the proposed text amendments to the Vail Town Council. On May 20, 2008, the Vail Town Council unanimously approved Ordinance No. 13, Series of 2008 upon first reading. 1 III. STAFF RECOMMENDATION , The Community Development Department recommends that the Vail Town Council approve Ordinance No. 13 Series of 2008, an ordinance amending Chapter 12-2, Definitions, Article 12-7G, Heavy Service District, Chapter 12-14, Supplemental Regulations, and Chapter 12- 16, Conditional Use Permits, Vail Town Code, to allow for sexually oriented businesses as a conditional use in the Heavy Service District, and setting forth details in regard thereto. Staff's recommendation is based upon the review of the criteria in Section V of the Planning and Environmental Commission memorandum dated May 12, 2008, and the evidence and testimony presented. Should the Vail Town Council choose to approve these proposed text amendments; the Community Development Department recommends the Council make a motion to approve Ordinance No 13, Series of 2008, with the following findings incorporated: ~ . "1. That the amendments are consistent wifh the applicab/e elements of the adopted goa/s, objectives and policies outlined in the Vail Comprehensive P/an and, is compatible with the deve/opment objectives of the Town, and 2. That the amendments further the general purpose of Title 12, Zoning Regu/ations, Vail Town Code; and 3. That the amendments promote the health, safety,' morals, and general welfare of the Town and promote the coordinated and harmonious development of the Town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality." IV. ATTACHMENTS • A. Ordinance No. 13, Series of 2008 2 , ATTACHMENT A ORDINANCE NO. 13 . SERIES OF 2008 AN ORDINANCE FOR PRESCRIBED REGULATION AMENDMENTS TO CHAPTER 12-2, DEFINITIONS, ARTICLE 12-7G, HEAVY SERVICE DISTRICT, CHAPTER 12-14, SUPPLEMENTAL REGULATIONS, AND CIiAPTER 12-16, CONDITIONAL USE PERMITS, VAIL TOWN CODE, TO ALLOW FOR SEXUALLY ORIENTED BUSINESSES AS A CONDITIONAL USE IN THE HEAVY SERVICE DISTRICT, AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, on May 12, 2008, the Planning and Environmental Commission of the Town of Vail held a public hearing and reviewed and forwarded a recommendation of approval for the proposed text amendments to the Zoning Regulations to the Vail Town Council in accordance with the procedures and criteria and findings outlined in Chapter 12-3 of the Zoning Regulations of the Town of Vail; and, WHEREAS, the Town Council finds and determines that sexually oriented businesses produce adverse secondary effects on the public health, safety and welfare; and WHEREAS, such adverse secondary effects include increased rates of certain crimes, including prostitution, robbery, assault, theft, loitering, pandering and public intoxication, the spread of sexually transmitted diseases, the debasement of both men and women, a decrease in property values for surrounding properties, and noise, parking and traffic. problems; and WHEREAS, such adverse secondary effects occur most often in the areas immediately surrounding such businesses; and WHEREAS, the Town Council, in enacting this ordinance, expressly relies on the findings of the 10th Circuit Court of Appeals in Z.J. Gifts D-2, LLC v. City of Aurora, 136 F.3d 683 (10th Cir. 1998), reversed on other grounds at 311 F.3d.1220 (10th Cir. 2002), reversed at 541 U.S. 774 (2004), and Essence, Inc. v. City of Federal Heights, 285 F.3d 1272 (10th Cir. 2002), concerning the adverse secondary effects of sexually oriented businesses on communities in Colorado and elsewhere; and WHEREAS, the Town Council, in enacting this ordinance, expressly relies on the findings of the United States Supreme Court in City of Los Angeles v. A/ameda Books, Inc., 535 U.S. 425 (2002), Renton v. Playtime Theatres, Inc., 475 U.S. 41 (1986), and Boos v. Barry, 485 U.S: 312 (1988), concerning the adverse secondary effects of sexually oriented businesses on surrounding areas; and WHEREAS, to reduce the adverse secondary effects caused by sexually oriented businesses in the Town, the Town Council deems it appropriate and necessaryto amend its current regulations and to adopt new regutations for sexually oriented businesses. Ordinance No. 13, Series of 2008 ~ V NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO, THAT: Section 1. Section 12-2-2, Vail Town Code, is hereby amended as follows: SEXUALLY ORIENTED BUSINESS: An adult arcade, adult store, adult cabaret, ' adult motion picture theatec or adult theater, except an establishment where a medical practitioner, psychologist, psychiatrist or similar professional licensed by the State of Colorado engages in approved and recognized sexual therapy. Section 2. . Section 12-7G-3, Vail Town Code, is hereby amended as follows: 12=7G-3: CONDITIONAL USES: The following conditional uses shall be permitted, subject to issuance of 'a conditional use permit in accordance with the provisions of chapter 16 of this title: . Animal hospitals and dog kennels. Automotive service stations. Building.materials stores. . ' Business offices. Commercial laundry,and cleaning services. . Corporation yards. , Machine shops. Motor vehicle sales and services. Repair garages. ' Repair shops. Seasonal plant product business. Sexually Oriented Businesses. Ski lifts and tows, and accessory dwelling unit for service personnel. Tire sales and services, including retreading and recapping. Transportation businesses. ' Trucking terminals and truck service stations. • Warehouses. • Woodworking and cabinet shops. Accessory uses customarily incidental and accessory to the conditional uses set out in this section and necessary for the operation thereof. Ordinance No. 13, Series of 2008 2 Additional commercial services determined to be similar to the conditional uses set out in this section in accordance with the provisions of section 12-3-4 of this title. Section 3. Section 12-16-7, Vail Town Code, is hereby amended to add new Section 12-16-7A-16, Vail Town Code, to read as follows: 12-16-7: USE SPECIFIC CRITERIA AND STANDARDS: The following criteria and standards shall be applicable to the uses listed below in consideration of a conditional use permit. These criteria and standards shall be in , addition to the criteria and findings required by section 12-16-6 of this chapter. A. Uses And Criteria: 12-16-7A-16: Sexually oriented businesses. 1. Sexually oriented businesses shall be located a minimum of five hundred feet from any: a. Religious Institution b. . Public park ' ' c. Library d. State-licensed day care facility; e. School or educational facility serving persons under eighteen years of age; or f. Any other sexually oriented business. 2. The distance between any two sexually oriented businesses shall be measured in a straight line, without regard to intervening structures, from the closest exterior structural wall of each business. Distance - between any sexually oriented business and any religious institution, school or public park shall be measured in a straight line, without regard to intervening structures, from the nearest portion of the structure used for the sexually oriented business to the nearest property line of the religious institution or school, or the nearest boundary of the public park. 3. Sexually explicit advertisements or other promotional displays for sexually oriented businesses that are harmful to minors shall not be visible to minors from pedestrian ways, walkways or other public areas. 4. Sexually oriented businesses shall obtain a license pursuant to Title 4, Business and License Regulations, Vail Town Code, as a condition of approval for a conditional use permit. Ordinance No. 13, Series of 2008 3 j Section 4. 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 5. 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 6. The amendment of any provision of the Town Code as provided in this ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced;. nor any other action or • proceeding as commenced under or by virtue of the provision amended: The amendment of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. . Section 7. 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 20t' day of May, 2008 and a public hearing for second reading .of this Ordinance set for the 3`d day of June, 2008, in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Richard D. Cleveland, Mayor Attest: Lorelai Donaldson, Town Clerk INTRODUCED, READ, ADOPTED AND ENACTED ON SECOND READING AND ORDERED PUBLISHED IN FULL this 3`a day of June, 2008. Richard D. Cleveland, Mayor Attest: , Lorelei Donaldson, Town Clerk Ordinance No. 13, Series of 2008 4 TOWN OF VAIL REVENUE HIGHLIGHTS lklay 31, 2008 ; As part of revenue monitoring and budget planning, we will continue to follow current information on available financial and economic trends such as housing sales, consumer confidence arid inflation. That information, along with year-to-date revenue collection, will factor into our analysis of budgeted revenues. Two major revenue categories listed below include a brief summary of market or economic assumptions (italicized). Sales Tax Sales tax collections continued- at a healthy pace overall with January through April estimated collections of $10.5 million up 6.6% from last year. Meanwhile, the consumer price index is 3.9% higher than April 2007, which identifies the portion of increase potentially caused by inflation. Year-to-date sales tax revenue is 3.8% higher than budgeted for the same time period. The month of April is estimated at $1.1 million, down 18.21 % from last year due to the timing of Easter (March '08 versus April '07). The 2007/2008 ski season is expected to be up 4.8% from the prior ski season, reflecting good snow. Although consumer confideszce continues to decline, the report f'rom the Federal Reserve stated that lower-income households were the _focus of downtarrn in sentiment. The Federal Resef°ve has raised its projection for inflation to betWeen 3.1 % & 3.4% this year, mainly due to energy prices. Currently, oatr annual bzcdget for sales tax is $19.4 million. If the f•emainder of'the year tracks similar to last year, we would come in slightly over budget for 2008. The five-vear average of sales tax collections is an annual increase of S%. January - April 2008 collections are cur-rently up by 6.6%. -We will continzce to monitor this revenue source for potential down-turns, and report back as needed. Property Tax ' Year to date property tax collections of $2.7M are $802K, or 42% higher than prior year. A 28% increase was budgeted for 2008. An additional 12-18% of incremental property tax revenue ($450K -$650K) was estimated when the County's final assessor's report was published. Tax collections are tracking as projected. Use Tax Use tax collections began as of January 1, 2008. As of May 29, collections total $156,458. Although larger collections throughout the summer construction period are anticipated, we currently do not have any revenue budgeted for this item in 2008. Ski,Lift Tax • Ski lift tax revenue of $2.6 million through April is up 7.5% from last year and November - April ski season revenue of $3.2 million is up 3.3% from the prior ski season. 080603 Revenue Highlights - 1 - Parkin Year-to-date parking revenue of $2.9 million through April, 2008 is up 6.0% from the same point in time last year. For the ski season (November 2007 through April 2008), parking revenue of $4.5 million is up 11.2% from the 2006/2007 season, mainly due to increased pass sales and pricing. Construction Permit Fee Revenue Construction permit volume is 34% higher than last year with construction permit fee revenue of $1.1 million through May 30, 2008 compared with $817K for 2007. The total annual budget for this line item is $13M. This year's revenue includes $902K (83% of the total) from five large redevelopment projects: Lionsquare Lodge North, Mountain , View, Ritz Carlton, Safeway and Solaris. Major redevelopment projects accounted for $519K (64% of total) at this time last year. Construction permit fees from' non-major projects have decreased by 36% from last year. Construction permit fees include building, electrical, mechanical, plumbing, and sprinkler permits. Real Estate Transfer Tax (1ZETT) RETT collections of $2.9 million through May 26, 2007 are 30% higher than this time last year. 2008 collections include the following major projects to-date: Arrabelle, Forest Place, One Willow and Vail Plaza. Last year's collections included tax on a portion.of three large projects: Forest Place, Gore Creek Place and Manor Vail. Major projects account for 46% of year-to-date collections in 2008, compared to 11 % of the total in 2007. RETT collections from property transfers not related to major redevelopment projects dropped by 22% year-to-date as of May, 2008 compared with 2007. During the first supplemental budget adjustment in April, the RETT budget was reduced by $1M, to a total of $7.2M. At that time, we projected transactions not related to major redevelopment projects would drop by 28%. As of the 1" quarter of 2008, Vail Valley i•eal estate transactions have dropped by 19%*. In line with our earlier projections, non- major transactions have droppecl, however transactions from the completion of major redevelopments make up the majoriry of 2008 revenue and are responsible for the overall increase in RETT collections from prior year. We will continue to monitor local market conditions, as well as RETT collections to enhance projections throzrghout the year. *Source: Land Title Guarantee Co. 080603 Revenue Highlights - 2 - , MEMORANDUM ~ May 28, 2008 To: Vail Town Council Stan Zemler Pam Brandmeyer Judy Camp From: Sally Lorton Re: April Sales Tax On the reverse side please fmd the latest sales tax worksheet. I estimate I'll collect another $37,000.00 in April sales tax to bring April collections to $1,088,445.00. If so, we will be down 18.21% or $242,295.00 from Apri12007 and down 14.03% or $177,560.00 from budget. Easter was in March in 2008. The ski season, November - April, will be up 4.8% or $647,188.00. , Apri120081ift tax is down 36.9% or $112,500.00: The ski season, November - April increased 3.3% or $103,071.00. Town of Vail Sales Tax Worksheet 5/27/2008 % CAsnys % Cnanys Month 1997 19sa rsss Zooo 2001 2002 zow zoos 2005 20M ~w+ hwo hw„ 200e 2007 suqA.+ CoOectlona va.recs 2007 muqosr Jenuery 2,052,569 2,115,359 2,086,459 2,034,529 2,210,547 2,073,481 7,997,091 2,225,841 2,275,987 2,697,886 2,783,3062.857.079 2,878,939 719,880 6.96% 4.20% Februa 2,089,673 2,153,121 2,021,486 2,223,870 2,366,321 2,281,833 2,111,183 2,382,825 2,429,377 2,b27,130 2,718,643 2,790,702 3,071,295. 280,593 12.97% 10.05% March 2,580,992 2,388,077 2,415,202 2,546,573 2,568,871 2,699,664 2,372,942 2,344,178 2,785,101 2,852,954 2,988,446 3,165,808 3,330,738 165,128 / 11.53% 5.22% APrU 874,427 1,107,334 952,843 928,771 1,043,431 870,875 871,488 992,157 915,564 1,280,324 1,330,740 1,266,006 7,051,445 1214,5601 -20.99% -16.95% Totnl 7,597,661 7,743,891 7,465,990 7,730,543 8,189,170 7.925,853 7,352,884. 7,925,001 8,405,999 9,258,393 9,819,735 10,079,394 10,430,415 351,021 8.23% 3.48% i. ~Y 329,783 382,718 370,864 388.127 448,234 414,248 428,919 411,59b 458,770 449,283 545,874 560,317 June 630,368 633,400 692,811 721,774 751,439 657,707 742,75b 732,113 834,913 805,362 953,017 978,261 .1ulY 1,043,837 1,107,882 1,130,883 1,235,470 1,167,867 1,044,968 7,075,632 1,128,514 1,166,183 1,255,243 1,265,781 1,299,743 AuguM 1,073,430 1,183,926 1,050,004 1,038,516 1,124,275 1,084,318 1,029,448 994,445 993,985 1,055,814 1,762,746 1,193,373 September 637,831 735,808 806,600 817,313 747,768 713,574 679,208 757,033 785,807 832,549 908,318 932,237 October 472,836 515,531 b38,204 b47,201 486,570 484,425 508,092 532,537 566,173 814,396 688,b19 704,761 Novembar 707,168 ' 656,598 582,260 891,445 571,783 642,293 591,269 623,846 713,177 799,682 747,877 790,281 December 2,254,709 2,070,834 1;883,805 2.082,205 1,933,940 2,139,417 2,171,098 2,382,095 2,549,032 2,771,258 2,821,871 2,862,283 ~ Total 14,747,419 15,030,386 14,509,421 75,232,588 15,471,044 16,106,801 14,578,983 75,466,979 16,483,979 17,841,880 18,973,138 19,400,000 MARCH 2008 , ~ ; VAIL BUSINESS REVIEW ' To Ww40HE M ay 22, 2008 The March Vail Business Review breaks down the four percent sales tax collected for March and the first quarter 2008. Overall March sales tax increased 11.4% with Retail increasing 13.5%, Lodging increased 13.9%, Food and Beverage increased 3.0% and Utilities/Other (which is mainly utilities but also includes taxable services and rentals) increased 13.3%. The first quarter resulted in a 10.5% increase overall with Retail increasing 8.6%, Lodging increased 11.9%, Food and Beverage increased 7.3% and Utilities increased 17.3°Io. Town of Vail sales tax forms, the Vail Business Review and the sales tax worksheet are available on the internet at www.vail o~ v.com. You can subscribe to have the Vail Business Review and the sales tax worksheet e-mailed to you automatically from www.vailpov.com. Please remember when reading the Vail Business Review that it is produced from sales tax collections, as opposed to actual gross sales. If you have. any questions or comments please feel free to call me at (970) 479-2125 or Judy Camp at (970) 479-2119. Sincerely, Sally Lorton Sales Tax Administrator March 2008 SALES TAX VA/L VILLAGE March March March 2007 2008 % Collections Collections Chan e Retai I 4929364 5159572 4.7% Lodging 5349355 6079904 13.8% Food & Beverage 437,550 438,628 0.2% Other 169541 179625 6.6% Total 194809810 1,579,729 6.7% LIONSHEAD March March March 2007 2008 % Collections Collections Chan e Retail 154,060 2199105 42.2% Lodging 3499345 4219274 20.6% Food & Beverage 86,667 1299223 49.1 % Other 139231 159945 20.5% Total 6039303 7859547 30.2% . March 2008 SALES TAX CASCADE V/LLAGE/EAST VA/USANDSTONE/WEST VAIL March March March 2007 2008 % Collections Collections Chan e Reta i I 1989123 2259409 13.8% Lodging 2609511 2619067 0.2% Food & Beverage 972241 729682 -25.3% Other 5,217 59192 -0.5% Total 561,092 5649350 0.6% OUT OF TOWN March March March 2007 2008 % Collections Collections Chan e Retail 479721 529200 9.4% Lodging 529686 729501 37.6% Food & Beverage 19992 13930 -3.1% Utilities & 2399674 2729498 13.7% Other Total 3429073 3999129 16.7% , v I!llarch 2008 SALES TAX TOTAL March March March 2007 2008 % Collections Collections Chan e Retai I 8929268 190129286 13.5% Lodging 19196,897 193629746 13.90/o Food & . Beverage 6239450 6429463 10% Utilities & 274,663 311,260 13.30/o Other ° Total 299879278 3,3289755 1`1.4% ?RETAIL SUMMARY March March March 2007 2008 % Collections Collections Chan e FOOD 138,664 159,463 15.0% LIQUOR 41,963 49,859 18.8% APPAREL 116,740 140,687 20.5% SPORT 435,009 509,732 17.2% JEWELRY 32,379 32,699 1.0% GIFT 18,243 13,110 -28.1 % GALLERY 8,059 6,878 -14.7% OTHER 100,660 99,397 -1.3% HOME 551 461 -16.3% OCCUPATION TOTAL 892,268 1,012,286 13.5% March 2008 YTD Sales Tax ~ VA/L V/LLAGE March YTD March YTD March YTD 2007 2008 % Collections Collections Chan e Retail 1,322,679 193219523 -0.1 % Lodging 194919260 196349163 9.6% Food & Beverage 19215,260 112429081 2.2% Other 34,059 389501 13.0% Total 4,0635258 49236,268 4.3% LIONSHEAD March YTD March YTD March YTD 2007 2008 % Collections Collections Chan e Retail 4409134 603,058 37.0% Lodging 1,015,992 19176,731 15.8% Food & Beverage 2595989 3879389 49.0% Other ° 33,401 445327 32.7% Total 1,749,516 292119505 26.4% ' March 2008 YTD Sales Tax CASCADE VILLAGE/EAST VAIUSANDSTONE/WEST VAIL March YTD March YTD March YTD 2007 2008 % Collections Collections Chan e Retai I 619,316 6499774 4.9% Lodgi ng 7589773 7899185 4.0% Food & Beverage 2759544 2519130 -8.9% Other 179281 15,481 -10.4% Total 196709914 117059570 2.1 % OUT OF TOWN March YTD March YTD March YTD 2007 2008 % Collections Collections Chan e Retail 1329117 1559363 17.6% Lodgi ng 1469615 2179045 48.0% Food & Beverage 69986 69371 -8.8% Utilities & 7199403 844,585 17.4% Other Total 190059121 1,223,364 21.7% March 2008 YTD Sales Tax ~ TOTAL March YTD March YTD March YTD 2007 2008 % Collections Collections Chan e Retail 295149246 2,7299718 8.6% Lodging 39412,640 398179124 11.9% Food & Beverage 197579779 19886,971 7.3% Utilities & 8049144 9429894 17.3% Other Total 894889809 913769707 10.5% . j RETAIL SUMMARY March YTD March YTD March YTD 2007 2008 % Collections Collections Chan e FOOD 441,959. 459,330 3.9% LIQUOR 118,236 147,237 24.5% , APPAREL 322,619 363,003 12.5% SPORT 1,165,009 1,320,590 13.4% JEWELRY 96,662 92,265 .-4.5% GIFT 49,551 35,897 -27.6% GALLERY 32,702 23,064 -29.5% OTHER 285,907 286,810 .3% HOME 1,601 1,522 -4.9% OCCUPATION TOTAL 2,514,246 2,729,718 8.6%. t ~ . , f ; . , , ~ . t~ - - :~y ~ ~t'~ h„ . -e ,~c 'r~Z' . .v, w ~ .<.K. F F _:..w?4=.w Ata : oil" c~+ t x Vail Local Marketin9 District m~~y~~ Perceptual Analysis and Brand Strategy Presented by ADr V,S. R$ . ¦ st-udies Atib R EAC H AovisoRs ~ t'~ ~ , REACN ADVISORS :Va 11 ~ . ` ~ ; k L~ . , e . . . . a . .r. . ~ . . ~ ..a:y .°c t Source: Reach Advisors Study 2008 AovsoRs s , a.. ~ ~x o ^v . Source: Reach Advisois Study 2008 RE cH ADVISOflS °&k . .,b , ^ , ~ . , , ~ Alk ` . ' 1! • i~~ t • A ' • I~'" . op ~ • ~ w . • ~ " 1~ ° " Source: Reach Adviaors Study 2008 R ME cH Aoviso.. ~ ~ ~ / ~ ~ • , ~ Photo : Aspen R ~H aovisoAs Vaa- n ~ • ~ ~ - resorts Source: Reach Advisors Study 2008 ADVsoRs ,_t.~. preference- mountain ~ resorts ~ Photo : Crested Butte REACH ADVisoas - ~ ~ ~ y- ~ Source: Reach Advisors Study 2008 REACH ADVISOflS ~ ~ ~ r ~ . . . ~ Y ~ miountaJ-n p„ Photos : Telluride AoRSORs ~r«. [ `a . - R, ~ s ~ ; ~ . . . , y CA. - ~ - , 3 m~^ ~ ' 7' i tl ia t Source: Reach Advisors Study 2008 Aovsoas ~ . ~ ~ yi . NA ~a s- a~~~ C :p . ~ h? vT:= resorts Photos: Telluride RE-H AovisoRs ~ ~ ~ ; ~ ~ ~ ~ ~~K;~ ~ ~ E ~ ~ '~f~ Y "~?S~ ~i i x ~ ~ . ~`°~t - ' x~, ~a~ ~ ~ ~3,~ , ,M A ~ II Ir~~`'. I~) a~~ l I r . ~ ..i ' i ~ ~...Yp,.. Source: Reach Advisors Study 2008 A~v~isoRs , F ~t ~ . k ~ Ranch or Miraval Source: Reach Advisors Study 2008 REACH Aovisoas favorit-e activity 5ource: Reach Advisors Study 2008 Aovsoas . s. ~ ~ ' ~ ~ ' • ~ ~ ' ~ A • . • . w . ~ 5ource: Reach Advisars Study 2008 REACH ADVISORS . ~ ~ • • . ' ~ • • • ~ Am m Photo : Aspen AoRS~Rs - - - - Source: Reach Advisors Study 2008 REACH Aovisoas 'PI r Spas Source: Reach Advisois Study 2008 RE cH Aovisoas Oll RE C. ADVISORS REACH ADVISORS , ; . , . - . . ~ . . . . .~~.,.i . . 7 r , _ . . . . ~ ~ f : . ~ r< r ~ _ c~.Tl.~- .r 1." i.?.. C.:;:J:i:.,•.. AoviSoRS Source: Averages calculated using June, July, Aug, Sept. 2007 Rocky qpASOas RE CH ADVISORS AEACH ADVisOas RE CH AovisoRs 3 ! k i; ,.v. . :-..R;. . 5 ~ 4 It's not: Beautiful scenery, hiking, biking, dining, shopping, trail rides and golf Those are brand attributes, not brand strategy Rt cH . ADVISORS ~ k ~Y ar~ d'~ef ~~~~1I,~'~' P~'~ ~~Y,p i a p~~!! ~~~~G~~p~~ili•!~~ Beautiful scenery, hiking, biking, dining, shopping, tare c~ at~tn~ib~tlcss for most CO resorts Photos: Telluride, Crested Butte, Aspen, Steamboat AoRSORs ~ RE CH ADVI£ORS E CH ADVISORS ~ - era• es Vail's assets? Vail's ea + a• • • e • • • • • • e demand RE CH ADVISORS REACH ADViSORs Source: Reach Advisors Study 2008 qovsoRs a , I O (Dri « : w Source: Reach Advisors Study 2008 REACH Aov.soa. . _ . . v,P,, _ . . . %Jr 2) Tl--Los.--, pul.-suincf recre,--atiolaatl- -0a S's JL Oil's e 5ource~e`-d~~`~i!Qo~P~t11~11! 2008 AovsoRs Pursuing ~ vacatic 4 cH Source: Reach Advisors Study 2008 Aovis REoas . Source: Reach Advisors Study 2008 ADVISORS r, • e 5ource: Reach Advisors Study 2008 RE cH Aovisoas fto Source: Reach Advisors Study 2008 EACH Aovisoas 4raT -Lyiq RE CH AoviSOas adven r , , • ~ RE CH Aovisoas RE CH Aovisoas l • ~ R E CH Aovisoas Ift, E CH ADVISOqS RE CH AovisoRs r.. . . . . . . ,~w; ? • REACH Aovisoas mmomm RE CH AD VisoRS 0 RE CH A. V ISORS ~ ~ anguage cias~ese E CH AD V ISORS Env, C RE CH A. V ISORS r„ RE CH AD V ISO RS t CH AD V ISOHS 17 m • RE CH AovisoRS , wan rz. REACH AD VISOAS aro~ RE CH AovisoRs RE CH ADVISORS , experierices REACH ADVISORS F z.. . ; ~ ~ . ~ : . ~ Ja111eS Chun9 ~ 617048906180 exto 1 E CH james@reachadvisors.com DVl SORS ADVISORS TO: Tovvn of Vail FIROfVi: Jim and Diane Beedie DATE: 5-26-08 Subject: North Day Lofi o On 4-20-08 we (who ovvn fvvo units in the V1/estvvind) sent a let4er to you requesting environmen4al infiormafion as to fihe effect of big buses and ECO buses using a North Day Lot transportation center. See below for a copy of the leffer. o VVe understand that at your May 20, 2008 meefing you voted 3 40 2 to build a firanspor4afion center which will accommodate big buses and ECO buses on the Norfh Day Lot. o As vue have stated we are concerned about fhe environmenfial effec4. o VI/e assume the town had enough work done to undersfand fhe sfate and federal environmental requirements fior locating the proposed transportation center on the North Day lot. This infiormation vvoufd be necessary and required before a vote could be fiaken. o In addition uve assume the tovvn has already or will make sure the proposed transportafion center meets those environrnenfal requiremenfis. o The Town didn't provide or discuss the environmental requirements at your Niay 20, 2008 meeting. o Since this informafion is crifical and the town council members vvould have reviewed and discussed it, please provide to Vail Managernent (our management company) the environmen4al study and/or the ofiher environmental informafiion the fown received and used to make it decision. As part of this please provide us a copy of the state and federal requirements concerning the environmenfal requirements i.e. noise, fumes efc... o V1/e would expect that this is public information and thus the Touvn can provide local tax payers fhe information uvithout a legal request. o In an effort to befter understand the 1"own's environmental posifion, dve have asked Vail iVianagemenf to sef up a confierence call to include: Jim Beedie, Bob 1/Vagner (VVesflnrind Board president) and the appropriafe Town person(s). o Thanks for your time. It is important for us and other Wesfiwind owners to be informed. TO: Town of Vail and Vail Associates. FROM: Jim and Diane Beedie Date: 4-20-08 Subject: North Day lot • Diane and I own two condominium units in the Westwind. We have owned them for over 15 years. • The Town of Vail and Vail Associates deserve a lot of credit for doing such a great job of renovating Lionshead. The changes to date have been great. We look forward to the coming changes. North I)av Lot • The Westwind borders the east side of the North Day lot. • We understand that it is appropriate and necessary to develop this property. • The plans and information you have sent out have been very helpful in understanding your plans. • Our question goes to the environmental effect of having big buses and ECO buses (which we believe are and will be diesel) use the proposed transportation center planned for the North Day lot. By environmental effect we are referring to air quality and noise. • The Westwind has no air conditioning and I believe the Landmark also has no air conditioning. Thus windows and doors are often left open for air flow. • I didn't find an environmental study in the information you have provided. • The Westwind and the Landmark are very close to the North Day lot. The lights from these vehicles could shine into the windows of some Westwind units during the evening hours. • If the big buses and ECO buses have a negative environmental effect (poor air quality and excess noise), the Westwind and Landmark could/will be adversely affected. e We ask that you have an environmental study done, so the effect on the air quality and noise of the big buses and ECO buses will be known. • Depending on the results of the study, we ask that if necessary, you consider moving the big buses and ECO buses from the North Day lot transportation center. Thanks for your great work and for considering our request. If you have any questions, you can reach us at 630-643-0143. ~TIC'M = .4 PPE-_.. PETER B DUNNING 1461 GREENHILL COURT VAIL, COLORADO 81657 June 2, 2008 Members of the Town Councii Town of Vail, Colorado The Town of Vail has submitted a design for an Information Kiosk that utilizes a roofing material that has not been approved for use by the Design Review Board for structures. The design, as submitted, is intended to be the prototype for severaf additional kiosks. The DRB does not believe that the synthetic material meets the requirements of Section 14-10-5, specifically that: 1.) The material is not satisfactory in general appearance, design.and texture. 2.) The use of this material does not comply with the intent of the provisions of the code. 3.) The use of this material is not compatible with the structure, site, surrounding structures and overall character of the Town of Vail. The applicant was advised early on in the process that the design they wished to use could be modified and accepted. Public Works redesigned the exterior using natural wood accents. The Board agreed to approve the redesign as presented with the condition that asphalt shingles.of approved weight and style be added. Public Works then twice submitted that same design without asphalt shingles to the DRB and were twice denied by unanimous vote. The material in question is a polystyrene plastic material. It has not been approved for general use on roofs in the Town of Vail. Some other synthetic materials have been approved because they appear similar to the material they are replacing and have a satisfactory overall appearance. The DRB understands that any approval is precedent setting and that. Once approved, a material may be used anywhere in the Town. Therefore, if this hard foam material would be approved, we could have structures in the Village and around town that give a very different visual effect than the traditiona) materials referenced in Section 14-10-5. The arguments used by the applicant are that you cannot see the roof and that their design is cheaper to build. The DRB response is that of course you can see the roof from the rooms in upper stories and that sightlines are not criteria for acceptance. Furthermore, the Design Review process does not take cost into account. To summarize, the Town of Vail should abide by the same building and design standarcis as the residents of Vail. The Design Review Board does not accept this synthetic material as appropriate and has twice voted accordingly for denial. I believe you should uphold the DRB decision. Peter B. Dunning, ~ Chair Design Review Board, Town of Vail 0G.o3.b~ WS FPorva: Gregg Barrie Vo: John Power; Mark Gordon; Pam Brandmeyer; Stan Zemler Dage: 6/2/2008 3:34:21 PM SaulbDect: Vail Childcare bullet points , All, I have spoken w/ JP, vuho, as a board member for Eagle Valley Child Care, is probably in a better position than myself to represent this on Tuesday night, has offered to be available to answer questions about the reallocation of funds for the daycare center. The follouving are some points that may be helpful. The reasons behind this request are as follows: 1. This is a reallocation of funds ($10,000) from 2007 2. The daycare center could not perform the work last fall due to construction on the parking lot (above Ciry Market) 3. An oversight resulted in the money not being rolled forward to this year 4. Eagle County also allocated $10,000, which must be spent by the end of June 5. The work is being performed to bring the toddler playground up to compliance with state daycare guidelines. 6. The problems are: a) It is currently too small for the number of children; b) there is no play equipment, only a sandbox; c) the fence around the play area is too short (less than 48"); d) the surface of the play area is worn grass/dirt; e) they are lacking one shade structure. 7. VVork begins this so that the Eagle County portion can be used prior to expiring Please let me know if you require add'I info. Thanks, Gregg Gregg Barrie, LLA Landscape Architect Town of Vail Department of Public Works ph. 970.479.2337 fax 970.479.2166 CC: Amy Drummet; Kathleen Halloran C~ d~a~ 1~~~~ Co~aovccuQ fi~c~etur~g fi~6r~a~tes 0 ue.~K.dlay9 °v°ay 6g LS00V peI1F911. l9~uQ Counc6l C9vambeo°s The regWar mee4u~~ of 4f~e Va6U Town Councu0 was ~aHed 4~ ~rderr at approx6osruatMy 6e00 P.M. by Mayoir DBck C9eve0ande Members presente Dick Cleveland, fVlayor Andy Daly Mark Gordon Farrow Hit4 ~ Kim Newbury Mar~ 4ogers ~ IC ~y ~~~~ers: Stan Zemler, Town iVianager Mafit iViire, Town ,4ttorney Pam Brandmeyer, ,4sst. l'own iVianager The forsa item on the agenda was Citizen Input. Dave bCraft shared his belief that aerosol trails are being sprayed into the atmosphere over Vail and in other areas of the country as part of a government conspiracy. V1/ith restitution checks in hand, Battle Mountain High School students Nlax 1/Vard and Blaze Heuga apologized to Council for recently vandalizing the sidewalk at the Donovan Pavilion. Council expressed displeasure with the youth's graffiti. p(athy Valleau spoke in defense of the youths for not identifying others involved. The secoovd item on the agenda uvas the Vail Youth Recognition Award Winners Introduction. Vail Valley Exchange Oresident Scott O'Connell introduced the following recipients of the Vaif Youth Recognition Auvards: Tony Ryerson from Vail Mountain School and Olivia Fauland from Battle Mountain High School. The thBPd item on the agenda was Proclamation No. 6, Series of 2008 Building Safety VI/eek 2008. (May 5-11) Rogers read a proclamation supporting Building Safety VVeek. Daly moved and Foley seconded a motion to approve the proclamation. The motion passed unanimously, 7-0. 1 1.-. The fourth item on the agenda was the Consent Agenda. J a. Approval of the April 1, 2008, and April 15, 2008, Town Council Minutes. ~ , , Foley moved to approve the consent agenda with Foley seconding. The motion passed unanimously, 7-0. The fif4h item on the agenda was the Town Manager's Report. ' ? Revenue Update. ' Budget and Financial Reporting Manager Kathleen Halloran reported that when all sales tax returns are received for the month of March, collections for the month are expected to be $3.3 million, up 12% from March, 2007. The ski season coller,tions thus far (November - February) will be up 7.3%. For comparison, inflation as measured by the consumer price index was up 4.0°1o compared with the prior year. Use tax collections began as of January 1, 2008. As of April 28, collections total $64,643. Construction permit revenue currently totals $671.5K, up 5.8% from this time last year. The increase is due to major redevelopment projects, which make up 78% of the totai. Construction permit fee revenue from non-major projects is down 24% from this time last year. Real Estate Transfer Tax (RETT) collections through April 28, 2008, total $2.3 million. This amount is a 29% increase from this time last year primarily due to recent sales of major redevelopment projects. Major redevelopment projects such as Arrabelle, Forest Place, One Willow Bridge and Vail Plaza account for 41 % of year-to-date 2008 collections. RETT collections from property transfers not related to major redevelopment projects dropped by 13% year-to-date as of April, 2008 compared with 2007. ? Chamonix Planning Update. Planner Scot Hunn told Council that on March 4, 2008, Council re-affirmed, with modifications, the planning goals and design parameters originally adopted by the Council on January 22, 2008, for the Chamonix Site Master Plan project. Also at the March 4, 2008, meeting, the, Council authorized staff and the consultant team to proceed with conceptual design work for the Chamonix Site. On April 11, 2008, the Chamonix Site Advisory Committee held a meeting to review three preliminary site plan concepts. Cleveland commented, "This is our opportunity to maximize our ability to bring people back to town.", He then questioned the possible inclusion of one bedroom units as they are not desirable to perspective buyers. Hunn said a recent survey indicated one bedroom units were a desirable product. Daly questioned the validity of the survey due to its small sample size. Hunn then explained that on May 7, 2008, staff would be hosting the next committee meeting, to be followed by an evening neighborhood meeting, to review the most recent, revised site plan concepts. "The intent of these meetings will be to gain feedback from stakeholder groups prior to commencing with any further design development of plans." ? Colorado Stage International Cycle Classic/Farmers Market. ' Assistant Town Manager Pam Brandmeyer reported staff believed the simultaneous hosting of the finro events, on Aug. 24 would be too cumbersome on town resources (parking, crowd control, etc.). Rogers asked if the Farmers Market could be held in the ' 2 LionsHead area. Brandmeyer responded the tovvn's resources vvere simply too limited fo host fiwo large events. Hitf asked if the touvn was sure the cycling event would be held. Representing the Vail Valley Foundation, Scott Bluhm confirmed the event vuould in fact be held. Bluhm fhen announced a title sponsor uvould be named within fhe next tveo weeks. The dafies of the cycling event could not be moved. Gordon said he thought it uvas imperative both events be held simultaneously. Rogers said she thoughfi a synergy uvould be created ifi both events co-existed. Gordon moved to hold both even4s simulfaneously uvith Ragers seconding. Farmers Markefi representative Rick Scalpello said he believed the attendance estimates for the cycling event were overestimated. Farmers iViarket representative Tom Kraubaker spoke in support of maintaining the Aug. 24 event dafe as did vendor Stephen Porter. The mofiion passed unanimously, 7-0. > I-70 Collaborative Update. Zemler provided Council an overview of the most recent decisions of the I-70 Collaborafive. He explained local communities are beginning a process to examine existing land-use regulations and zoning codes along the I-70 mountain corridor to determine how fhey can be improved to facilifate better mobility and transif options to relive congestion. "There is still some disagreement abouf lane widening in the Clear Creek County area...l think we vvill get to where wre need to get to pretty soon." During a pause for public comment, Kaye Ferry said the coltaborative efforts of the numerous partners wrere improving. "They've made some significant strides even fhough the contention remains in Clear Creek County." Vail Homeouvners Association representative Jim Lamont encouraged annexing the Dowd Junction area so the touvn . uvould be able to control improvements made to the interstate in that area. > Parking Task Force Update. Public V1/orks Director Greg Hall reported fhe Parking Task Force would meef again on May 13. During public comment, Kaye Ferry expressed concern Vail F2esorts had put the Ever Vail parking structure on the "back burner." The su~th item on the agenda was Ordinance No. 1, Series of 2008, an ordinance amending Chapters 12-13, Employee Housing, 12-23, Commercial Linkage, and 12-24, Inclusionary Zoning, Vail Town Code, to establish requiremenfs that no less than one- half (%z) the employee housing mitigation requiremenfs for nevv construction and demolrebuifd projecfis be accommodated vvith on-site units. Planner Bill Gibson reported that on fiNarch 10, 2008, the PEC voted 4-3-0 (Gunion, Proper, and Viele opposed) to fonward a recommendation of approval, with modifications, for texf amendments to establish standards and criteria related to mitigating employee housing requirements, and setting forth details in regard thereto. The Town Council held uvork session discussions concerning the proposed text amendments on March 24 and April 15, 2008. Gordon clarified if a projecfi vvas in the current development review process (any accepted pending apptication for redevelopment) it would not be subjecf to the nevu requirements. Gibson said there were expirations for approvals. "1'he requirement for providing employee housing is not being changed, only uvhere they put it...The code applies to all properties (in the Town of Vail) in general." Daly clarified fhe Council did not have the ability to lower a housing requirement. He then asked that language be included that would address the aforementioned 1'ouvn Council ability to change the requirements for a project if they so I I 3 i chose. Foley moved to approve the ordinance with Gordon seconding. Foley asked for a list of all approved development applications prior to the next reading of the ordinance. Chief of Planning Warren Campbell clarified Vail Resorts had submitted applications for their proposed Ever Vail project. Local developer Peter Knobel said a Special Development District could ask for deviations from these standards. Kaye Ferry said she believed organizations such as the Vail Valley Medical Center should be required to house employees locally and on-site. Local hotelier Johannes Faessler said this ordinance would have precluded his recent hotel expansion. The ?notion passed unanimously, 7-0. For more details, contact Gibson at 479-2178. The seventh item on the agenda was the Secorid reading of Ordinance No. 10, Series of 2008, repealing and re-enacting Ordinance No. 31, Series of 2007, Cascade Village, amending and re-establishing the approved development plan for Area A of SDD No. 4, pursuant to Article 12-9A-10, Amendment Procedures, Vail Town Code, fio allow for the construction of two additions (deck enclosures) to the south side of Vail Cascade Hotel, located at 1300 Westhaven Drive/Cascade Village Subdivision). On March 24, 2008, the PEC recommended approval of the request. On April 15, 2008 Council approved the first reading of Ordinance No. 10, Series of 2008, with the condition staff verifies the proposed parking table on Page 16 of the ordinance. Rogers moved to approve the ordinance with Gordon seconding. The motion passed unanimously, 7-0. The eighth item on the agenda An appeal, pursuant to Section 12-3-3, Appeals, Vail Town Code, of the Town of Vail Planning and Environmental Commission's approval, with conditions, of a request for a final review for a development plari, pursuant to Section 12-61-11, Development Plan Required, Vail Town Code; a request for final review of a variance from Section 12-21-10, Development Restricted, pursuant to Section 12-17-6, Criteria and Findings and Section 12-21-16, Right of Appeal; and a request for final review of certain conditional uses, pursuant to Section 12-61-3, Conditional Uses, Vail Town Code, to allow for a redevelopment of Solar Vail into a mixed use development to inctude Type VI employee housing units, professional offices, and public utilities installations including transmission lines and appurtenant equipment, located at 501 North Frontage Road WesbLot 8B, Block 2, Vail Potato Patch. Planner Scot Hunn reported that on March 24, 2008, the PEC approved,. with conditions, a request for a final review for a development plan, pursuant to Section 12-61-11, Vail Town Code; a request for final review of a variance from Section 12-21-10, Development Restricted, pursuant to Section 12-17-6, Criteria and Findings and Section 12-21-16, Right of Appeal; and certain conditional uses, pursuant to Section 12-61-3, Conditional Uses, Vail Town Code, to allow for a redevelopment of Solar Vail into a mixed use development to include Type VI employee housing units, professional offices, and public utilities installations including transmission lines and appurtenant equipment, located at 501 North Frontage Road West/Lot 86, Block 2, Vail Potato Patch, and setting forth details in regard thereto. Council "called-up" this PEC action at its April 1, 2008, public hearing by a vote of 7-0-0. Cleveland said Council had several concerns with the project including uninterrupted height and lack of setbacks, snow storage as well as the use of town land for access to the project. Project architect Henry Pratt said the building site had significant limitations due to setbacks and 40% slopes. Pratt said the easiest way to limit height is to remove units. Campbell said certain zone districts allow for construction on 40% slopes although the Housing Zone District does not. Property owner Johannes Faessler said the location of the project is ideal for employee housing. Daly asked how 4 ~ many units he in4ended to sell. Faessler said he would nof seil any units. He said last winter his hotel required be4ween 70 and 80 employee beds. Faessler then said he would utilize 2,500 sq. ft of office space and rent out the remaining 2,500 sq. ft. Rogers said maximum density should be encouraged. Rogers moved to uphold the PEC's recommendation subject to the PIEC findings located on pg. 2 of the staff memorandum vvith Gordon seconding. Cleveland said he had a problem vvith the project's drivevvay being located on touvn land. Faessler said he was open to providing infrastructure necessary for an ancillary project on an adjacent site. Town Attorney Matfi Mire recommended the developmenf of a non-exclusive access easemenf. During a pause for public commenfi, Vail Homeouvners Association representative Jim Lamonfi encouraged more articulation of the southern fagade. "VUe need to strike a compromise...We need to maintain a qualify image for the communify." The motion passed unanimously, 7-0. The ovunah i4em on the agenda uvas a proposed addition to the Town's Official Avalanche Hazard Map at 4768 Meadowr Drive/Lot 1, Block 7, Bighorn 5`h Addition. Planner Bill Gibson explained that pursuant fio Sub-section 12-21-13-H, Addifions to Maps, Vail Town Code: "If the applicant establishes at the hearing by clear and convincing evidence 4ha4 the information contained in the site specific geologic investigation is reliable, the touvn council shall direct the Departmen4 of Community Developmenfi to keep a copy of said site specifiic investigation on file in the Department of Community Development and available to the general public and shall further direct the department of communify development to notate the appropriate official map adopted by this chapter so that if indicates that said sife specific investigation is on fiile with the Department of Community Development." The applicant, Larry Deckard, representing the property owner, submitted a site specific avalanche hazard study for the subject property. The submitted study recommended amending the delineation of the avalanche hazards on the subject site. Gibson then asked Council to direcfi the Department of Communify Development to keep a copy of said site specific investigation on file in the Department of Community Development and available to the general public and direct the Department ofi Community Development to notate the Official ,4valanche Hazard Niap fo indicafe thaf said site specific investigation is on file with the Department of Community Development. Newrbury moved to approve the addition with Hitt seconding. The motion passed unanimously, 7-0. The treavth item on the agenda was the Park City Peer Resort Visit Outcomes. Council members Hitt, Gordon and Rogers joined Mayor Cleveland in sharing their observations follovving a recent peer resort visit they made to Park City, Utah. Daly inquired if employee housing is a significant issue there. Hitt said in certain areas, Park City has 100% on site employee housing requirements. He also noted the impressive qualify of the for-sale and rental employee housing units he toured. "They were much more proactive in attacking the problem...They make their decisions based on vuhat vuas best for the community and didn't make decisions based solely on profit." It was also identified that the Park City area resorts offered a transit service for their employees living in outlying areas. Rogers said the town should uvork to improve relafiions with Vail f3esorts as she saw the benefits of a positive municipality/ski company relafionship. Hitt encouraged placing open space in a third par4y trust to, "protect ourselves from ourselves." Gordon said the tovun should continue 4o pursue a green building code. Cleveland noted traffic on Main Street was a significant issue in Park City. He atso noted the Park City Chamber handled all of the special events. Council agreed to 5 continue scheduling peer resort visits as they are quite valuable and enlightening. Zemler thanked Economic Development Manager Kelli McDonald and then Special Projects Manager Jamie Gunion for their work in scheduling the visit. The eleventh item First reading of Ordinance No. 11, Series of 2008, ,An Ordinance Amending Title 4 of the Vail Town Code by the Addition of a New Chapter 12, Entitled "Sexually Oriented Business." Town Attorney Matt Mire explained Town Code did not have regulations concerning sexually oriented business. Adding Chapter 12 "sexually Oriented Business" to Title 4 of the Vail Town Code the council is insuring the public's health, safety and welfare by establishing reasonable regulations to reduce the adverse secondary effects of such businesses within the town. Rogers moved to approve the ordinanGe with Foley seconding. The motion passed unanimously, 7-0. The twelfth item on the agenda was the Second reading of Ordinance No. 8, Series of 2008, an Ordinance amending Chapter 12-3, Administration and Enforcement, Vail Town Code, to establish procedures for approving public art in private development. On October 22, 2007, the PEC voted to recommend denial to Council for proposed text amendments requiring public art for certain development projects. On PJovember 20, 2007, Council voted 4-3 to deny Ordinance No. 33, Series of 2007, which would have codified those requirements. Council #hen directed staff to propose text amendments including only the basic requirements and procedures for review of public art. The proposed text amendments were based on the previous request, with requirements for public art omitted, per Council's request. On March 10, 2008, the PEC voted unanimously to recommend approval of the text amendments. On April 15, 2008, the Council unanimously voted to approve Ordinance No. 8, Series of 2008, upon first reading. Newbury moved to approve the ordinance for second reading with Rogers seconding. The thirteenth item on the agenda was the 2008 Asphalt Overlay Project. Town Engineer Tom Kassmel asked Council to authorize the Town Manager to enter into an agreement with B&B Excavating to complete the 2008 Overlay Project in the amount of $269,941.48. Staff received two bids for the 2008 Overlay ProjPCt, with B&B Excavating the low bidder. Submitted bids were within budget and below the engineer's estimate. The project consists of a maintenance asphalt overlay on portions of roads in East Vail, an asphalt mill and overlay of Vail Valley Drive from the South Frontage Road to Gotd Peak, and asphalt patching on East LionsHead Circle. The project is budgeted as follows: $269,941.48 from the Capital Street Maintenance Budget. Da1y moved to authorize the Town Manager to enter into an agreement with B&B Excavating to complete the 2008 Overlay Project in the amount of $269,941.48 with Rogers seconding. The motion.passed unanimously, 7-0. The fourteenth item on the agenda was Adjournment. Newbury moved to adjourn with Foley seconding at approximately 10:00 p.m. The motion passed unanimously, 7-0 6 Dick Cleveland, fVlayor A1TEST: Lorelei Donaldson, Town Clerk Minutes provided by Corey Swisher. . 7 Vail Town Council Meeting Minutes Tuesday, May 20, 2008 6:00 P.M. Vail Town Council Chambers The regular meeting of the Vail Town Council was called to orcler at approxirnately 6:00 P.M. by Mayor Dick Cleveland. Members present: Dick Cleveland, Mayor Kevin Foley Mark Gordon Farrow Hitt ..K`ev?fl-~ Kim Newbury Margaret Rogers -Fwrow-Hitt, fdot present: Andy Daly Staff Members: Stan Zemler, Town Manager Matt Mire, Town Attorney The first item on the agenda was Citizen Input. Cleveland announced local resident Buddy Lazier recently qualified to race in the Indianapolis 500. The second item on the agenda was the Town Manager's Report. ? Fourth of July Policies. Police Chief Dwight Henninger outlined public safety plans for the July Fnurth holiday, which includes maintaining the traditional youth curFew during the evening of the Fourth. "The only thing we are going to change is that regular Vail Transit and ECO bus service will continue as normally scheduled." ? Parking Structure Annual Maintenance Update. Brandmeyer reported annual cleaning and re-striping would be taken place over the next few weeks in the parking structures. Rogers encouraged the parking of construction vehicles in outlying areas of the structures to make more convenient spaces available for shoppers and diners. 1 > I-70 Overlay Update. Colorado Department of Transportation (CDOT) representative Gary Suiter explained I-70 overlay consfruction would begin the follovving week. "Project work will take place from 6:30 p.m. fhrough 6:30 a.m. Sunday through Thursday...The projec4 is scheduled to last 100 days uvith financial incenfives in place to complete the project early." T'he overlay will include all of I-70 betvueen Dowid Junction and the East V'ail exit. Suiter clarified a smaller aggregate pavement uvould be used to creafe a smoother ride and produce less road noise. Monthly meetings vuill be held in the Vail T'own Council Chambers to keep the communify informed of the progress. Hitt clarified a different general contractor was in place to perform the uvork than was used in 2007. CDOT IResident Engineer Marfha Miller reported barriers would continue to be installed in Douvd Junction. "This year they uvill be pre-cas4 as opposed to cast in place." Zemler asked if pre and post road noise vuould be monifored. iViiller said that wrork had not been parf of the contractor's bid. Cleveland verified uvith Miller that adequate signage uvould be provided. Gordon thanked Suiter and Miller for their outreach efforts. The thurd item on the agenda wras an Appointment to the VLNiDAC. Assistant Tovun Manager Pam Brandmeyer asked Council to appoinf one applicant to fill a vacancy on the VLMDAC (terms expire December 31, 2009) at the evening meeting. The mission of the VLNiDAC is to sfrengthen the area economy by attracfiing visitors fo Vail in the May to Ocfober time frame. Per C.R.S. 29-5-111 General powers of district. (1)(g) All applicants must be "owners of property within the boundaries of the district," which includes by definition corporations or entifies uvhich owm property "within the boundaries of the districf." Should an entity be appointed to this advisory council; it would then be up to that entify fio appoint its designee. Additionally, owners of "taxable personal property" will be considered for appointment. The tovun received three (3) applications for the vacancy. The applicants vuere: Jamie Gunion, Todd Gurley and Michelle Kobelan. iVevubury moved to appoint Gunion to the VLMDAC uvith Foley seconding. The motion passed unanimously, 6-0. T'he ft'durkh item on the agenda was a Review of Development Options on the North Day Lot (NDL) and Provide a Decision to Proceed to Next Steps of the Preferred Option. Due to a predetermined conflict of interest (Vail Resorts affiliation) Mark Gordon recused himself from the item and left the Council Chambers. Public V1/orks Director Greg Flall informed Council there were four primary questions related to the project Council needed to address: 1) V1/haf transporfation modes shoufd be placed on the norYh day lot? 2) VI/haf are the alfernatives if uve don't place all the modes on the si4e? 3) How do we pay for if? 4) Nexf steps? Council previously encouraged the redevelopment of the NDL to meefi the goals of the master plan for fihis site. Specifically, that the uses of transifi, skier drop off and hofel shuftles occupy the ground level of the site and these uses be placed on the eastern end of the site to betfier accommodafe the users and provide a defined sense of arrival. Town staff and Vail Resorts Development Company (VRDC) sfiafF and their design ~ team provided revised development site plans. 'fhe presentation reviewed the pros ~ and cons of each option as wefl as the costs. 2 ~ I I 7rectnffommended: 1) Place all modes on the site. 2) No alternative is needed except, if and when the LionsHead Parking Structure r redevelops, move the transit vehicles to that site if the design for the transit a center is similar to the Open/Hillwood proposal. 3) Secure the remaining federal dollars; pursue other transit fund sources available; and make up the difference with Tax Increment Financing, if a shortfall still exists, make it up using capital, Real Estate Transfer Tax (RETT) or General Fund dollars. 4) Set a 60-day period to meet with Vail Resorts to refine the design to better meet the concerns of all involved. Refine costs of the design and prepare an agreement for council approval authorizing the town's intent to move forward with the project. Rogers confirmed federal funds would not be available for the project if it did not include mass transit. Hall said he believed Concert Hall Plaza would nUt be impacted by development of the NDL. Ruther explained through the adoption of tfie master plan six fundamental design objectives were set that relate to the entire LiansHead study area. The six design objectives include: pedestrian environment; connections to the natural environment; vehicular circulation; transit; service and delivery; and parking. Hall confirmed there was, a three year window on the availability of the approved federal transit dollars. This would mean the grant approval expires in 2010. Vail Resorts CEO Rob Katz told Council, "I think we agreed it would be a very good idea to have a transit center in LionsHead...l think the issue we have with it is cost. The question is, is this a good use of funds? Should this be the priority? We think moving a transit center to EverVail will save between $12-15 million...ls there a guarantee we will build EverVail...The answer is essentially yes...We are ready to go (on the NDL) and we have been ready to go for quite some time...We are very committed to meeting all the intentions and agreements we entered into in December." Landmark Condominiums legal representative Dan Wolfe said, "I'd like to remind Council this project is going to be pretty impactful on the Landmark...l would suggest the North Day Lot is not the best location for a transportation Center...l would ask that Council not approve buses on the North Day Lot." Landmark Homeowner Rita Evans spoke in opposition to placing a transportation center on the North Day Lot. Landmark Developer Ron Clarkson explained the Landmark planned to redevelop in the near future. Jeff Jacobs, general manager of the Westwind Condominiums (adjacent property) asked Council to perform an environmental impact assessment prior to developing a transit center on the North Day Lot. Kim Hughes, part owner of Concert Hall Plaza, encouraged Council to continue to develop the West LionsHead area. He also said he and his partners were willing to be partners with the town in their redevelopment. Local developer Ron Byrne encouraged Council to continue to move on the NDL post haste and take advantage of the developer's eagerness to continue. Katz ctarified his transit center estimates did not include land costs. Vail hlomeowners Association representative Jim Lamont said, "We have no clue what the demand for mass transit into this community is going to be...We would be well advised to spend the money...You (Council) are going to throw away our transit future for 120 employee housing beds?" Tom Steinberg commented, "The whole purpose of our bus system was to reduce our parking problems when we started our bus system 30 years ago...The NDL is the logical place for the transportation center." Geoff Wright, general manager of Landmark Condominiums reiterated that the homeowner's association was t. 3 ' a adamantly opposed to using the NDL lot for buses. Rogers said she believed the town could not uvait five to fen years (in reference to the LionsHead Parking Structure redevelopment) to obtain a new transit center. "The master plan identifies the Norfh Day Lot as an ideal site for a transit center." Hitt spoke in support of transit on the NDL. He encouraged continuity with past Council decisions in regard to the development ofi the LionsHead Redevelopment fiNaster Plan. Neuvbury said the town would do i4s best to mifigate the impacts of buses on the NDL. Foley said to try and "shoehorn" four bus stalls on fhe NDL would be wrong. Cleveland said he supported transit, but believed the transit center cosf estimates would only confinue to escalate. He then said he believed shutfle bus drop off was in fact skier drop off. IRogers moved to approve transit on the site as contained in site plan options one and two, uvifih Nevubury seconding. The motion passed 3-2 with Foley and Cleveland opposed. Rogers moved fo extend the agreement with VRI for up to 60 days with Hitt seconding. The motion passed unanimously 5-0. Rogers clarified transit on the NDL would not be revisited. The ffAffth item on the agenda was an update to the Council on progress made in developing and revieuving three (3) site plan "options" based on ptanning goals and design parameters approved by the Council as well as comments from fhe Chamonix Site Masfer Plan Advisory Committee; a report on fhe Advisory Commitfee and neighborhood meefings held on May 7, 2008; and a request for clarification from the Council on the issue of unit mix and the "targef markeY" for the anticipafed `for-sale' housing product. Planner Scot Hunn asked Council to provide staff and the design team with clarificafiion regarding approved master planning goals and design paramefers, with specific regard to the preferred housing mix and the anticipated target market for the for-sale portion of the project. On March 4, 2008, Council re-affirmed, with modifications, the planning goals and design parameters originally adopted by the Council on January 22, 2008, for the Chamonix Site Master Plan project. Also at the March 4, 2008, meefing, Council authorized staff and the consultant team to proceed with conceptual design work for the Chamonix Site. On ,4pril 11, 2008, the Advisory ,Committee held a meeting to review three (3) preliminary site plan concepts for the sife and provided feedback and suggestions to the staff and consultant team. Staff traveled to ,4spen on April 17, 2008, to work with the consultant team to refine ideas and revisions generated from the advisory committee's commenfs. On May 7, 2008, staff hosted a Commitfee meefing, followed by an evening neighborhood meeting, to review the most recent site plan concepts. The intent of those meetings was to gain feedback from stakeholder groups regarding preliminary site plan "options" prior 4o commencing with any further design work. Project planner Gilbert Sanchez then revieuved three site plans with the primary focus being desired density. Foley, Cleveland and Hitt supported medium density, while Mewbury and F2ogers encouraged high density. Cleveland said he would not support a separate structure to house Fire Department student residents. Hitt said he believed it was imperative all fire house bays be drive- through so as to avoid fire apparatus reverse signals. If was established thaf 14 units per acre was the minimum threshold. Gordon commented, "I would like to view this projecfi as a free market projecf and provide the market with what if wanfs." During a pause for public comment, PCaye Ferry asked if the Ambulance District would be involved in the planning. Zemler said the touun had recently engaged the ambulance districf. 4 i ~ The sixth item on the agenda was a Visitor Center Contract Discussiori. Determine next steps in the selection process as it relates to the future operation of the Visitor Information Centers. The current term of the operational contract with Vail Info, Inc., runs to September 30, 2008. Community Information Officer Suzanne Silverthorn informed Council that on October 1, 2005, Vail Info, Inc., assumed contractual operation of the Vail Visitor Information Centers in Vail Village and LionsHead following a request for proposal (RFP) process in 2005 and subsequent selection by the Vail Town Council from among three bidders. The contract provided an annual review process with the option to renew each year for a total of three years to be funded from the town's General Fund. The current term of the operational contact runs to September 30, 2008. Silverthorn then said it was the recommendation of the Visitor Information Center Committee to negotiate a new operational contract with Vail Info, Inc., for another three-year period effective October 1, 2008. "It is recommended the contract provide for an annual review process with the option to renew the contract each of the three years until September 30, 2011." This option was reviewed by the Town Attorney and was deemed an acceptable recommendation as it relates to the town's bidding procedures and processes for contractual services. The Visitor Information Center Committee also recommended continuation of the commission-free Council policy enacted in 2005 for overnight lodging bookings by participating Vail properties. Silverthorn stated, "The town is satisfied with the performance of the current operator, Vail Info. Inc." Silverthorn also said she had heard from the two chambers that had submitted proposals in 2005 and that neither organization was prepared to subnnit a proposal this year. Hitt said Vail Info. Inc. had been very creative and exceeded expectations. "I think we should absolutely continue with him." Hitt moved to extenci the contract with Vail Info, with Foley seconding. The motion passed unanimously, 6-0. The seventh item on the agenda was an Art in Public Places (AIPP) Summer Exhibition, Workshop and Bronze Pour. AIPP Coordinator Leslie Fordham informed Council that AIPP holds an annual a'rt exhibition in Ford Park. "This year, five sculptures by artist James G. hAoore will be featured Moore makes large scale bronze bells embellished with scenps of wildlife. In past years, the summer exhibition has included an educational component...There has been the opportunity to meet the artists and attend informational Iectures. AIPP has identified an educational opportunity for the visual arts this summer that will excite residents and guests." Following the success of the Heavy Metal Weekend in January, AIPP requested permission to host a summer sculpture workshop and bronze pour. The workshop, a family event, will give people the opportunity to make their own small bells similar to those in the exhibition. Sculptures made in the workshop will then be cast in a"bronze pour" held in Ford Park. The bronze pour, a visually exciting event, would take place on July 24 and will capture the interest of those looking for an evening activity or leaving the Bravo concert. In addition to casting bells made in the workshop, AIPP wi11 cast bells with the Vail logo that can be sold to raise funds for the program. The Summer Exhibition with a bronze pour and workshop will cost $14,945. AIPP budgeted $7,000 for the exhibition only. Sponsors have contributed $2,400 to the summer event. It was estimated $2,500 can be raised via the sale of bronze bells with the Vail logo. Income from the workshop is estimated to raise approximately $500. AIPP requires an additional $2,545 to fund the project. The AIPP 2008 budget holds a 5 line item titled Acquisition/Projecfi Fund. "fhe Board will use the Acquisition/Project Fund to pay the remaining cosf of 4he project. ,41PP requesfed Council approve the expenditure for the Summer Exhibition, V1/orkshop and Bronze Pour. Rogers moved to approve fhe requesf with Gordon seconding. The motion passed unanimously, 6-0. 1'he e6ghth item on the agenda uvas the First reading of Ordinance No. 9, Series of 2008, an ordinance amending Special Developmenf District No. 6, Vail Village Inn, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allovv for an addifion to 4he Osaki Sushi Restaurant, located at 100 East Meadow Drive/Lo4 O, Block 5D, Vail Village Filing 1. Prior to the Evening Meeting, the applican4 requesfed the ordinance be tabled unfil June 3, 2008. Nevubury moved to 4able the ordinance unfiil June 3, 2008 with Rogers seconding. l'he motion passed unanimously, 6-0. The nunt9v item on the agenda vuas the First Reading of Ordinance No. 13, Series of - 2008, an Ordinance amending Chapter 12-2, Definitions, Article 12-7G, Heavy Service Disfrict, Chapter 12-14, Supplemental Regulations, and Chapfier 12-16, Conditional Use Permits, Vail Town Code, fo allow for sexually orien4ed businesses as a conditional use in the Fleavy Service District. Planner Rachel Friede reporfied that on May 6, 2008, Council unanimously approved Ordinance No. 11, Series of 2008, upon first reading. Ordinance No. 11, Series of 2008 established licensing requirements fior sexually oriented businesses with amendments to 1"itle 4, Business and License Regulations, Vail Town Code. Ordinance No. 13, Series of 2008, includes proposed text amendments to Title 12, Zoning Regulations, Vail Town Code, that establishes sexually oriented businesses as a conditional use vuithin the Heavy Senrice (HS) Zone District. On iVlay 12, 2008, the PEC unanimously voted to recommend approval of the proposed text amendments to the Vail Town Council. Newbury moved to approve the ordinance with Foley seconding. The motion passed unanimously, 6-0. The ten$h item on the agenda was the Firsf reading of Ordinance No. 5, Series ofi 2008, an ordinance approving a major amendment to SDD No. 4, Cascade Village, pursuant to Section 72-9A-10, ,4mendment Procedures, Vail Town Code, to allouv for the development of a mixed use development, located at 1276 Vi/esthaven Drive (Cornerstone site). Through a request from the applicant, LO VVesthaven, Inc., staff requested Council table the public hearing to consider first reading of Ordinance fVo. 5, Series of 2008, fo their regular meeting of June 3, 2008. Newrbury moved to table the item until June 3, 2008 vuith Rogers seconding. The motion passed unanimously, 6-0. The Meeen4h item on fhe agenda was the Second Reading of Ordinance No. 1, Series of 2008, an ordinance amending Chapters 12-13, Employee Housing, 12-23, Commercial Linkage, and 12-24, Inclusionary Zoning, Vail Town Code, to establish requirements that no less than one-half (1/2) the employee housing mitiga4ion requirements for new consfiruction and demo/rebuild projects be accommodated with on-site unifs. 6 On March 10, 2008, the PEC voted 4-3-0 (Gunion, Proper, and Viele opposed) to forward a recommendation of approval, with modifications, for text arnendments to establish standards and criteria related to mitigating employee housing requirements. Council then held work session discussions concerning the proposed text amendments on March 24 and April 15, 2008. On May 6, 2008, Council approved the first reading of Ordinance No. 1, 2008, by a vote of 7-0-0. During a pause for public comment, Pam Stenmark said most employees chose not to live on site. Vail Homeowners Association representative Jim Lamont said he thought the zonirig change was reasonable. Hitt moved to approve the ordinance with Rogers seconding. The motion passed unanimously, 6-0. Newbury left the meeting at approximately 10:20 p.m. The twelfth item on the agenda was the Second reading of Ordinance No. 11, Series of 2008, An Ordinance Amending Title 4 of the Vail Town Code by the Addition of a New Chapter 12, Entitled "Sexually Oriented Business. The Town Code currently does not have regulations concerning sexually oriented business. By adding Chapter 12 "Sexually Oriented Business" to Title 4 of the Vail Town Code, the council is insuring the public's health, safety and welfare by establishing reasonable regulations to reduce the adverse secondary effects of such businesses within the Town. Rogers moved to approve the ordinanc;e with Foley seconding. The motion passed unanimously, 5-0. The thirteenth item on the agenda was a 2008 Curb and Gutter Repair bid. Staff has received one bid for the 2008 curb and gutter repair program. The submitted bid from B&B Excavating is within budget and within ten percent of the engineer's estimate. The project consists of removal and replacement of damaged concrete pan/curb and gutter. Gordon moved to a authorize the Town Manager to enter into an agreement with B&B Excavating to complete the 2008 curb and gutter' repair in the amount of $379,876.93 with Rogers seconding. Foley clarified the work would take place throughout town. The motion passed unanimously, 5-0. The fifteenth item on the agenda was Resolution No. 11, Series 2008, a Resolution Approving an Intergovernmental Agreement Befinreen the Town of Vail, Colorado and the Eagle River Water and Sanitation District (ERWSD) Regarding Drainage and Sewage Improvements Along Beaver Dam Road and Beaver Dam Circle. ERWSD is replacing the water and sewer lines in Beaver Dam Road and Beaver Dam Circle over the next two years. The Town of Vail needs to complete budgeted drainage and road improvements along Beaver Dam Rd and Beaver Dam Circle. It is in the best interest of both the Town and ERWSD to complete the projects simultaneously using one contractor. At the March 18th Councit meeting, the Council gave staff direction to proceed with the development of an IGA with ERWSD to cost-share the project and bring it back to Council for approval once the construction bids had been opened and costs were known. ERWSD has since had the public bid opening and has awarded the contract to the lowest qualified bidder, Western S4ope Utifities. The town's portion of work has been bid at $304,765.52 plus costs for field measured restoration. This project has been budgeted within the Capital Street Maintenance Budget. Foley asked 7 if landscaping along Beaver Dam Road vvould be adequately replaced. Hit4 moved to approve the resolution with Foley seconding. The mofion passed unanimously, 5-0. The susteen4h ifem on fihe agenda uvas Adjournmenf. Hitf moved to adjourn with Rogers seconding. The motion passed unanimously, 5-0, af approximately 10:30 p.m. Dick Cleveland, iViayor ATl"EST: Lorelei Donaldson, 1'own Clerk Minutes provided by Corey Swisher. 8 ~ ~ ~ ~ ~ TOWN OF VAIL -1 1 RnancW Statements DecembeP 31, 2007 - ~ _l i , .l . ~ _J ro Towrn of Vail, Colorado ~ Financial S2a4ements December 31, 2007 ~ 7able og Contents Page ~ IIVDEPENDENT AUDITOR'S REPORT A1 - A2 ManagemenYs Discussion and Analysis 61 - B7 ~ Government-Wide Financial Statements: Statement of fVet 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 IVet Assets C5 ~ Statement of Revenues, Expenses and Changes in Fund Net Assets C6 Statement of Cash Flows C7 Fiduciary Funds: ~ Statement of Fiduciary Net Assets C8 Statement of Changes in Fiduciary Net Assets C9 Notes to the Financial Statements D1 - D31 ~ 6Zequired 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 E8 ~ Supplementary Information: Debt Service Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual F1 Enterprise Funds: Schedule of Revenues, Expenses and Change in Fund Net Assets - ~ Budget (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: Schedufe 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, 2007 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 - 2007 Actual / Projected 2008 - 2011 G2 Table XIX - History of General Fund Revenues, Expenditures and Changes in Fund Balance G3 Table XX - General Fund - 2007 Budget and Actual Comparison / 2008 Budget G4 ' Table XXI - Outstanding Revenue Obligations G4 ' . ' , ' ~ ' , ' . ~ ~ MCMAH,@,N AND ASSOCIATES, L.L.C. ,~10,~,. Certified Public Accountants and Consultants WEB SITE: WWW.MCMAHANCPA.COM ~ SUITE 222/AVON CENTER TELEPHONE: (970) 845-8$00 100 WEST BEAVER CREEK BLVD. FACSIMILE: (970) 645-085 I P.O. BOX 5850 AVON, CO 81620 E-MAIL: MCMAHAN@MCMAHANCPA.COM ~ IItlDEIrEItlDEltl 1 i9UDl 1 Of'l'S RErOl'l l 70 4he Mayor and fUiembers og 7own Council ~ 7ov+rn og 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, Cotorado, (the "Town"), as of and for the year ended December 31, 2007, 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 responsibiiify is to express opinions on these financial statements based on our audit. ~ We conducted our audit in accordance with U.S. generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence . supporting the amounts and disclosures in the financial statements. An audit also includes assessing the ~ accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. ~ In our opinion, the financial statements referred to above 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, Colorado, as of December 31, 2007, and the respective changes in financial position and cash flows, where appropriate, thereof and the respective budgetary comparison for the major governmental funds for the year then ended in conformity with U.S. generally accepted accounting principles. ~ The accompanying financial statements have been prepared assuming that Timber Ridge Affordable Housing Corporation (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 on 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. The ManagemenYs Discussion and Analysis in Section B is not a required part of the basic financial ~ statements but is supplementary information required by Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of ineasurement and presentation of the required supplementary information. ~ However, we did not audit the information and express no opinion on it. The budgetary comparison schedules in Section E are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards ~ Board. Such 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 financ+al statements taken as a whole. ~ D. Jerry McMahan, C.P .A. Performing servrces forlocat governments throughout Cotorada Daniel R. Cudahy, C.P.A. Paul J. Backes, C.P.A. Michael N. Jenkins, C.A., C.P.A. ~ Members: Anleriean Institute of Certified pulilic Aeeountants/Coloraao Society of Certified Public Accountants National and Colorado Government Finance Offieers Association/C'olorado Municipal League A1 ~ , To the Mayor and Members of Town Council Town of Vail, Colorado ' 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 statemenfs, 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. ' llq 61~ ~i ~ ~ McMahan and Associates, L.L.C. ' March 21, 2008 ' . ' ' 1 , . ' ' ' A2 , ~ a ~ 0 0 ~ ~ f1flANAGEMENT'S DISCUSSION AND ,4N,4LYSIS ~ ~ a ~ ~ ~ 0 o ~ 0 ~ a ~ ~ I Town of VaR9 ~~~~~ado ~ Managemeoat's D6scaussuoov ao~d AnaVysus DecePttabeP 31, 2007 ~ 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, 2007. ~ Od~~~ew off' ahe IFBnancuaV 54atements 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. ~ FBnancW Hughlaghas: o The assets of the Town exceeded its liabilities at the close of the 2007 fiscal year by $136,673,065 ~ (net assets). Of this amount, the unrestricted net assets of $55,314,832 may be used to meet the Town's ongoing obligations to citizens and creditors. o The Town's total net assets increased in the 2007 fiscal year by $12,460,290 which was attributable ~ to an increase from governmental activities of $12,455,573 and a increase of $4,717 from business- type activities. o At December 31, 2007, the unrestricted and undesignated fund balance of the General Fund was $17,781,209 or approximately 65% of total fiscal year 2007 General Fund expenditures. ~ CvObeB'PEBO'9en$-UbBCBe fiBVanC0al StateBV6ent5: The government-wide financial statements are designed to provide readers with a broad overview of the Town's finances in a manner similar to a private-sector ~ business. I 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 tfie 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 a non-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 a Overvuevu off 3he FunancuaV Sgatemeau4s (coaafiovaaed) ~ Fuovdl fFanancBaV Sgageuvuen4s: 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. ~ Gov~rnuvueovW fFaonds: 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 governmenYs near-term financing requirements. a Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact ~ of the governments' near-term financing decisions. Both the governmental fund Balance Sheet and the governmental Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. ~ The Town's governmental funds include the General Fund, Debt Service Fund, and four Special Revenue Funds - Capital Projects Fund, Real Estate Transfer Tax Fund, Vail Marketing Fund and Conference Center Fund - as well as the Vail Local Marketing District and the Vail Reinvestment Authority, which are ~ component units of the Town. The Town adopts an annual appropriated budget for all governmental funds. A budgetary comparison statement has been provided for all funds to demonstrate compliance with the state budget statute. ~ The basic governmental fund financial statements can be found on pages C3 and C4 of this report. IPP0pPBe$aPy F40nQHS: 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 fmancial 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. ~ Fudanc6avy 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. Noges ao ahe FunaeucW Stateovoen4s: 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 fVotes to the Financial Statements can be found on pages D1 through D31 of this report. ~ ~ B2 ~ Oderrvuew of 4he Ffinancuai Stagemeauas (coovtuovaned) ~ Gobernmena-wade Fuo~ancW AnaDysus: 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 a private-sector business. Net assets may serve over time as a useful indicator of a governmenYs financial position. In the case of the Town, governmental assets exceeded liabilities by $137,832,780 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 2007 and 2006. ~ Town of Vail's Plet Assets Governmental Business-type ~ Activities Activities Total 2007 2006 2007 2006 2007 2006 ~ Current and Other Assets $ 65,568,905 55,549,030 2,481,918 1,983,113 68,050,823 57,532,143 CapitalAssets 91,148,565 85,382,573 18,941,053 19,582,027 110,089,618 104,964,600 Total Assets 156,717,470 140,931,603 21,422,971 21,565,140 178,140,441 162,496,743 ~ Long-term Liabilities Outstanding 9,006,317 10,889,890 21,843,291 21,995,167 30,849,608 32,885,057 Other Liabilities 9,878,373 8,219,905 739,395 734,405 10,617,768 8,954,310 Total Liabilities 18,884,690 19,109,795 22,582,686 22,729,572 41,467,376 41,839,367 ~ Net Assets: Invested in capital assets, net of ~ related debt (As restated) 81,027,233 76,862,973 (1,579,702) (1,627,973) 79,447,531 75,235,000 Restricted 1,910,702 1,731,248 1,910,702 1,731, 248 Unrestricted 54,894,845 46,782,986 419,987 463,541 55,314,832 47,246,527 ~ TotalWetASSets $ 137,832,780 125,377,207 (1,159,715) (1,164,432) 136,673,065 124,212,775 ~ During 2007, historical assets were added to the governmental activities financial statements totaling $73,250,521. The values of these assets are as follows: land $3,555,400, buildings and improvements of $15,227,018, infrastructure of $54,016,471 and equipment of $451,632. There were no historical ~ assets added from business-type activities. The 2006 balance of "invested in capital assets net of related debY" has been restated to reflect the historical addition of land, as reflected in the above exhibit and accompanying financial statements. ~ The Town's long-term liabilities from governmental activities decreased due to principal payments on outstanding debt. The Town's 19986 Sales Tax Revenue Bonds were retired in 2007; and the 1998A and 2002B Sales Tax Revenue Bonds will be retired in 2012. Long-term liabilities from business activities ~ decreased as a result of principal payments on the corporation's 2003B 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. ~ LT I 63 ~ ~ ObeQView o~ Ihe FBuuaovcuaV SlalePweovas (conUnaaedl) ~ The chart below provides financial information from the Town's Statement of Activities for the years 2007 and 2006. ~ Town of Vail's Changes in Net Asse4s Governmenfal Business-4ype ~ Ac4ivities Ac4ivities To4al 2007 aoos 2007 aoos aoor 2006 Revenue: ~ Program Revenue Charges for services $ 13,702,631 10,247,531 4,212,852 3,545,625 17,915,483 13,793,156 Operating grants 1,250,530 937,532 586,404 498,031 1,836,934 1,435,563 Capital grants 2,577,262 2,831,912 33,000 - 2,610,262 2,831,912 ~ General Revenue Property and ownership tax 3,354,140 2,937,245 _ 3,354,140 2,937,245 Sales and lodging tax 21,720,918 20,490,710 - - 21,720,918 20,490,710 ~ Othertaxes 10,515,803 10,157,800 - - 10,515,803 10,157,800 Interest and other revenue 3,091,813 2,284,455 64,692 142,712 3,156,505 2,427,167 Capital contributions, net 57,489 18,571 57,489 18,571 Transfers (77,860) - 77,860 - - - ~ To4al Revenue 56,192,726 49,887,185 4,974,808 4,204,939 61,167,534 54,092,124 Expenses: ~ General government 8,078,045 6,956,785 - - 8,078,045 6,956,785 Public safety 7,616,966 6,992,458 2,028,263 1,867,510 9,645,229 8,859,968 Public works and transportation 20,306,036 13,453,196 20,306,036 13,453,196 Culture and recreation 5,039,823 3,816,421 - - 5,039,823 3,816,421 ~ Economicdevelopment 2,164,093 2,003,131 - - 2,164,093 2,003,131 Housing 2,941,828 2,975,186 2,941,828 2,975,186 Interest 532,190 590,602 - - 532,190 590,602 ~ To4al Expenses 43,737,153 33,812,593 4,970,091 4,842,696 48,707,244 38,655,289 Increase in Ne4 Asse4s 12,455,573 16,074,592 4,717 (637,756) 12,460,290 15,436,835 R1e4 Assets January 1 125,377,207 109,302,615 (1,164,432) (526,676) 124,212,775 108,775,939 ~ Pfe4 Asse4s December 39 $ 137,832,780 125,377,207 (1,159,715) (1,164,432) 136,673,065 124,212,774 ~ Governnaeoata0 Actuv6tues: Governmental activities increased the Town's net assets by $12,455,573. Key elements of this increase are as follows: o Revenue exceeded expenditures in the General Fund, Capital Projects Fund, and Real Estate Transfer Tax Fund by $4.6 million, $2.0 million and $2.8 million, respectively. o Capital outlay exceeded depreciation during the year by $2.5 million. o Long-term liabilities were reduced by $1.8 million through principal repayments. ~ BaosBaoess-ttype Actuvutues: 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 senrices to ~ emergency service agencies throughout Eagle County. ~ ~ 64 ' ' Financial Analysis of the Town's Funds As previously mentioned, the Town uses fund accounting to ensure and demonstrate compliance with I' 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 I' Town's financing requirements. In particular, fund balance may serve as a useful measure of a governmenYs 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 $54,395,571 an increase of $8,044,227 from the prior year's ending fund balances. The following details ending fund balances for the past five years: Fund 2003 2004 2005 2006 2007 ' General Fund $10,376,744 $11,053,614 $ 13,673,808 $ 15,433,051 $ 19,834,717 Capital Projects Fund 8,054,258 8,190,903 10,249,191 12,216,605 12,109,128 , Real Estate Transfer Tax 6,280,458 5,682,551 7,463,545 8,956,389 11,769,273 Conference Center Fund 3,026,538 5,691,334 8,237,877 8,621,901 9,046,283 Vail Marketing Fund 42,862 25,590 36,211 46,517 62,619 , Vail Local Marketing District 525,786 488,899 696,895 825,793 1,006,736 Debt Service Fund 130,210 182,238 305,522 249,256 314,105 Vail ReinvestmentAuthority 1,252 1,203 1,833 252,710 ' Total $ 28,436,856 $31,316,381 $40,664,252 $ 46,351,345 $ 54,395,571 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. t MAJOR FUND BALANCES ' $25, 000 ' $20, 000 ~ $15,000 ~v y 7 L $10,000 ~ t,. H ' $5 000 ' IF[$- 2003 2004 2005 2006 2007 ' ¦ General ¦ Capital Projects O Real Estate Transfer Tax 0 Conference Center ¦ All Other ' 65 ~ F6ovancuaV Au~allysas off 4Vae Town's Faunds (con4Baoaoed) ~ IPP0pG'BegaP'y 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 $1,679,514 and $862,881, respectively. The Health Insurance Fund net assets were $990,118, all of which are restricted for the Town's self-funded health insurance program. ~ I$udg@$ VaPBaPOCeS 9Pll the C~senePal F49Plld: General Fund revenue was higher than the amended budget by $1,788,132 or 6%, including: Construction Fees up $577,002; Parking up $212,012; Earnings on Investments up $189,040; Rents up $160,739; and Ski Area Lift Ticket Admissions Tax up $149,619. These revenue items were favorable mainly due to conservative budgeting. Expenditures•were below ~ budget by $937,301 or 3%. The majority of the favorable spending variance was primarily due to conservative budgeting and expense savings among several departments. ~ CaputaV Assets: The Town's government-wide capital assets, net of accumulated depreciation, increased $2,547,496. Capital additions included streetscape improvements, purchase of the "Wendy's" parcel 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-tepm Deb4: As of the end of the current fiscal year, the Town had $10,265,000 in sales tax ~ revenue bonds outstanding, of which $1,890,000 of bond principal is due within one year. Debt related to Timber Ridge Affordable Housing Corporation totaled $21,965,000 of which $155,000 is due within one year. Additional information regarding the Town's debt can be found on pages D21 through D28. ~ Sales Tax andl PaubVuc Accomrueuoodataons Tau: During 2007, 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. ~ TOMn9N OF ML GENERAL SALES TAX ~ 18, 000, 000 ~ 16,000,000 14, 000, 000 12, 000, 000 10,000,000 8,000,000 ~ 6,000,000 4,000,000 2,000,000 0 ~ 2003 2004 2005 2006 2007 ~ 136 ~ ~ Nett4 Veap's Butlget and Rages: The Town's General Fund balance at the end of the current fiscal year was $19,834,717 representing 62% of annual revenue. The Town's 2008 budget anticipates adding ~ $96,531 to this fund balance in 2008. V@eqaaest foP BnfoPmatBon ~ This financial report is designed to provide a general overview of the Town's finances for all those with an interest in the governmenYs 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. ~ ~ ~ ~ ~ ~ ~ ~ ~ a ~ 0 ~ B7 ~ ~ ~ ~ ~ ~ ~ GOVEIZNfUiER1T-!AlIDE FINANCIAL STATEMENTS ~ a 0 D 0 0 a ~ a a 0 ~ Town off Na6V, CoooPacflo sta4emewt of Net Asse4s December 31, 2007 Governmental Business-typ~ ~ Actidi4ies Actibi4ies To4al Asse4s: Equity in pooled cash and investments 51,304,700 961,340 52,266,040 ~ Unrestricted cash and investments 1,115,886 274,206 1,390,092 Cash - restricted 680,423 645,873 1,326,296 Receivables (net of allowance for uncollectible accounts): a Property taxes assessed 4,314,858 = 4,314,858 Other taxes 4,353,063 4,353,063 Employees 126,330 - 126,330 Other 1,024,437 19,139 1,043,576 ~ Inventory 293,284 - 293,284 Prepaid expenses 185,789 37,115 222,904 Interest receivable 96,468 - 96,468 ~ Loans receivable: Collectible within one year 5,000 5,000 Collectible in more than one year 1,925,000 - 1,925,000 ~ Bond issue costs, net of accumulated amortization 143,668 544,245 687,913 Property, plant, and equipment, net of accumulated depreciation 91,148,565 18,941,053 110,089,618 ~ Togal Asse4s 156,717,470 21,422,971 178,140,442 Liabili4ies: ~ Accounts payable 1,718,844 128,533 1,847,377 Due to other governments 1,793 1,793 Retainage payable 146,964 - 146,964 ~ Accrued salaries and wages 503,238 33,016 536,254 Interest payable 35,435 184,500 219,935 Deferred property taxes 4,314,858 . - 4,314,858 ~ Other.deferred revenue 347,266 197,702 544,968 Deposits payable 499,097 18,450 517,547 Compensated absences: Due within one year 420,878 22,194 443,072 ~ Due in more than one year 631,317 33,291 664,608 Bonds payable: Due within one year 1,890,000 155,000 2,045,000 ~ Due in more than one year 8,375,000 19,910,000 28,285,000 Notes payable 1,900,000 1,900,000 ~ ToQal Liabilities 18,884,690 22,582,686 41,467,376 MeY Asse4s: Invested in capital assets, net of related debt 81,027,233 (1,579,702) 79,447,531 ~ Restricted for: Debt service 252,710 - 252,710 Emergencies 1,647,000 - 1,647,000 ~ Symposium 10,992 - 10,992 Unrestricted 54,894,845 419,987 55,314,832 Total R1et Assets 137,832,780 (1,159,715) 136,673,065 The accompanying notes are an integral part of these financial statements. ~ C1 Town of Vail, Colorado Statement of Activities For the Year Ended December 31, 2007 Net (Expense) Revenue and • _ Proram Revenues Changes in Net Assets Operating Capital Charges for Grants and Grants and Governmental Business-type FunctionslPrograms: Expenses Services Contributions Contributions Activities Activities Total Governmental Activities: General government 8,078,045 6,898,166 Public safety 7,616,966 438,892 62,086 (1,179,879) (1,179,879? Public works and transportation 20,306,036 4,735,090 1,028,186 2,316,189 (12,226,588) ~ ~7,~~5,988? Culture and recreation 5,039,823 1,310,502 160,258 261,073 ~12.226,571 ~ Economic development 2,164,093 319,981 (3,307,990) (3,307,990j Intereston long-term debt 532,190 7 (1,844,112) (1,844,112j Total Governmental Activities 43,737,153 13,702,631 1,250,530 2,577,262 - ~532,190) (532,190;~ Business-type activities: (26,206,730) (26,206,730'I Dispatch services 2,028,263 1,546,766 586,404 33,000 137,907 137,907 Housing 2,941,828 2,666,086 Total Business-type Activi4ies 4,970,091 4,212,852 586,404 33,000 _ (275 742) (275,7421) (137,835) (137,835) Total 48,707,244 17,915,483 1,836,934 2,610,262 (26;206,730) (137,835) (26,344,565) General Revenues: Taxes: Sales taxes 19,668,112 19,668,112 Real estate transfer taxes 6,536,118 6,536,118 Lodging taxes 2,063,915 - 2,063,915 Property and specific ownership taxes 3,354,140 3,354,140 Ski area lift ticket admissions tax 3,039,619 3,039,619 Franchise taxes 858,285 858,285 Cigarette taxes 81,781 81,781 Investment earnings 2,622,013 64,692 2,686,705 Gain on sale of capital assets 70,198 70,198 Capital contributions, net 57,489 - 57.489 iviisCeiiBrieou5 388,493 388,493 Transfers (77,860) 77,860 Total General Revenues and Transfers 38,662,303 142,552 38,804,855 Change in Net Assets 12,455,573 4,717 12,460,290 Net Assets -January 1(As Restated) 125,377,207 (1,164,432) 124,212,775 Net Assets - December 31 137,832,780 (11159,715) 136,673,065 The accompanying notes are an integral part of these fin4ncial statements. ~ ~ ~ ~ ~ ~ ~ ~ M 1-ikm m m m m m m m m m ~ ~ ~ ~ ~ ~ a FUND FIiVANCIAL STATEMENTS ~I ~ a a 0 0 a a 0 0 a Town of Vaii, Colorado Balance Sheets Governmental Funds December 31, 2007 ~ Capital Real Estate Conference Vail Vail Local Vail Debt Total General Projects Transfer 7an Center Marketing AAarketing Reinvestment Service Governmental ~ Fund Fund Fund Fund Fund District Authoritv Fund Funds Assets: Equity in pooled cash and investments 20,463,825 7,156,783 11,488,634 9,046,283 61,752 252,710 48,469,987 Cash and cash equivalents - Unrestricted 16,240 - - - 760,607 339,039 - 1,115,886 Receivables, net of allowance for uncollectible ~ accounts: Properly taxes assessed 4,314,858 4,314,858 Othertaxes 729,087 2,896,316 342,991 384,669 4,353,063 Employees t26,330 - - - - - - 126,330 Other 208,614 469,503 324,788 - 867 - 66 - 1,003,838 Loans receivable 1,955,000 - - - - - - 1,955,000 ~ Prepaid expenses 168,163 - - - - 450 - - 168,613 TotalASSets 26,027,117 12,477,602 12,156,413 97046,283 62,619 1,145,726 339,105 252,710 61,507,575 Liabilities and Fund Equity: Liabilities: ~ Acwunts payable 755,723 168,543 228,623 - - 138,990 - - ~,Zg~,879 Due to other governments 1,793 25,000 26,793 Retainage payabie 98,308 48,656 146,964 Accrued payroll and related liabilities 473,663 1,623 9,861 - - - - - 485,147 Deferred revenue 147,266 100,000 100,000 - - - - - 347,266 Deferred property taxes not ~ collectible until subsequent year 4,314,858 - - 4,314,858 Deposits payable 499,097 499,097 Total Liabilities 6,192,400 368,474 387,140 - 138,990 25,000 - 7,112,004 Fund Balances: ~ Reserved for: _ Prepaid expenses 168,163 450 Loans receivable 1,955,000 168,613 1,955,000 Retirement of bonded debt - - - - - - - 252,710 252,710 Symposium 10,992 - - ~ Emergencies - 10,992 Unreserved: 1,584,000 - _ - = 63,000 - - 1,647,000 Designated for housing toan program 200,000 200,000 Desiqnated for police seizures 90,353 - - - - - - - 90,353 Designated for subsequent years' expenditures - 4,484,500 - 4,484,500 Undesignated 17,781,209 5,669,628 11,769,273 9,046,283 62,619 943,286 314,105 45,586,403 ~ Total Fund Balances 19,834,717 12,109,128 11,769,273 9,046,283 62,619 1,006,736 314,105 252,710 54,395,571 Total Liabilities and Fund Balances 26,027,117 12,477,602 12,156,413 9,046,283 62,619 1,145,726 339,105 252,110 ~ Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 88,198,056 Olher long-term assets are not available for current period expenditures and, therefore, are not reported in the funds. 920,559 ~ Internal service funds are used by management to charge the costs of heavy equipment and heaflh insurance to individual funds. The assets and liabilities of the intemal service funds are included in governmental activities in the Statement of Ne[ Assets. 5,620,141 Long-term liabilities, including bonds payable, interest payable, and compensated absences, are not due and payable ~ in the current period and, therefore, are not reported in the funds. , (11,301,547) Net Assets of Governmental Activities 137,832,780 ~ ~ ~ ~ The accompanying notes are an integral part of these financial statements C3 ~ Town of Vail, Colorado ' Statement of Revenues, Expenditures Changes in Fund Balances Governmantal Funds For the Year Ended December 31, 2007 . ' Capital Real Estate Conference Vail Vail Local Vail Debt Total General Projects Transfer Tax Center Marketing Marketing Reinvestment Service Governmental Revenues: Fund Fund Fund Fund Fund District Authority Fund Funds , - Taxes 17,670,783 8,308,506 6,536,118 - - 2,063,915 337,502 34,916,824 Permits and licenses 5,083,017 - 305,414 - - 5,388,431 Intergovernmental revenue 1,509,039 1,571 24,451 - - - - 1,535,061 Charges for services 6,596,588 198,948 1,281,046 - - 8,076,582 Investment income 984,040 537,562 507,277 424,382 5,888 11,053 8,157 3,955 2,482,314 , Miscellaneous 195,016 1,805,049 473,724 - - 3,837 14,567 2,492,193 Total Revenues 32,038,483 10,851,636 8,822,616 424,382 311,302 2,078,805 360,226 _ 3,955 54,891,405 Expenditures: General govemment 7,730,300 - - - 15,200 - 900 7,746,400 ' Publicsafety 7,104,904 - - - - - - 7,104,904 Public works and transportation 10,365,091 8,944,116 - - - - - 19,309,207 Culture and recreation 2,214,022 - 6,009,732 - - - - 8,223,754 Economic development - - - - 280,000 1,897,862 47,953 2,225,815 Debt service: - Principal _ - - - - - - 1,810,000 1,810,000 , Interest - - - - 512,098 512,098 Total Expenditures 27,414,317 8,944,116 6,009,732 - 295,200 1,897,862 47,953 _2,322,998 46,932,178 Excess (Deficiency) of Revenues OverExpenditures 4,624,166 1,907,520 2,812,884 424,382 16,102 180,943 312,273 ___[2,319,043 7,959,227 ' Other Financing Sources (Uses): Sale of assets - 85,000 - _ _ ' - Transfere in 85,000 - 222.500 - - - - - 2,322.497 2,544,997 Transfers (out) (222,500) (2,322,497) - - - - - (2,544,997) Total Other Financing Sources (Uses) (222,500) (2,014,997) - - - - - _2,322,497 85,000 , Net Change in Fund Balances 4,401,666 (107,477) 2,812,884 424,382 16,102 180,943 312,273 3,454 8,044,227 Fund Balances -January 1 15,433,051 12,216,605 8,956,389 8,621,901 46,517 825,793 1,832 _ 249,256 46,351.344 FundBalances-December31 19,834,717 12,109,128 11,769,273 9,046,283 62,619 1,006,736 314,105 252,710 54,395,571 ~ Net Change in Fund Balances of Governmental Funds 8,044,227 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. 2,503,636 Repayment of bond and lease principai are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the , Statement of Net Assets. This is Ihe amount of principal repayments. 1,810,000 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 322,147 , Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 102,213 Some expenses reported in the Statement of Activities do not require the use of current financiai resources and, therefore, are not reported as expenditures in govemmental funds. (39,475) 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 (287,175) Change in Net Assets of Governmental Activities 12,455,573 ' ' ~ ~ ' The accompanying notes are an integral part of ihese financial statements C4 , ~ Town of Vail, Colorado Proprie4ary Funds Statement of Alet Assets ~ December 31, 2007 ~ Business-t e Ac4ivities En4erprise Fund - Enterprise Fund - Governmental ~ Timber Ridge Dispatch Activities - Affordable Housing Services Internal Corporation Fund TOTAL Service Funds Asse4s: ~ Current Assets: Equity in pooled cash and investments 961,340 961,340 2,834,713 Cash and cash equivalents - Unrestricted 274,206 274,206 - Accounts receivable , net of allowance for uncollectibles 19,139 - 19,139 20,599 ~ Inventory - _ - 293,284 Prepaid expenses 37,115 37,115 17,176 Total Current Assets 330,460 961,340 1,291,800 3,165,772 Non-current ,4ssets: ~ Cash and cash equivalents - Restricted 645,873 - 645,873 _ Bond issue costs, net of accumulated amortization 544,245 544,245 Property, plant, and equipment, net of accumutated depreciation 17,665,783 1,275,270 18,941,053 2,950,509 ~ Total Won-currentAssets 18,855,901 1,275,270 20,131,171 2,950,509 Total.4ssets 19,186,361 2,236,610 21,422,971 6,116,281 ~ Liabilities: Current Liabilities: Accounts payable 118,575 9,958 128,533 426,966 Tenant security deposits 18,450 - 18,450 - ~ Deferred revenue 197,702 - 197,702 _ Accrued interest payable 184,500 184,500 Accrued salaries and wages - 33,016 33,016 18,091 Current portion of bonds payable 155,000 - 155,000 - ~ Current portion of compensated absences - 22,194 22,194 20,433 Total Current Liabilities 674,227 65,168 739,395 465,490 Non-current Liabilities: Bonds payable, net of current portion 19,910,000 - 19,910,000 - Notes payable 1,900,000 1,900,000 Compensated absences, net of current portion - 33,291 33,291 30,650 To4a1 Non-current tiabilities 21,810,000 33,291 21,843,291 30,650 ~ Total Liabilities 22,484,227 98,459 22,582,686 496,140 filet Asse4s (Defici4): Invested in capital assets, net of related debt (2,854,972) 1,275,270 (1,579,702) 2,950,509 ~ Unrestricted (442,894) 862,881 419,987 2,669,632 Total filetAssets (Deficit) (3,297,866) 2,138,151 (1,159,715) 5,620,141 ~ ra ~ ~ 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, 2007 Business-type Activities ' Enterprise Fund - Enterprise Fund - Governmental Timber Ridge Dispatch Activities - ' Affordable Housing Services Internal Corporation Fund TOTAL Service Funds Operating Revenues: - Charges for services - Iriternal - 512,427 512,427 4,911,409 Charges for services - External - 942,204 942,204 270,665 t Rent 2,633,552 - 2,633,552 - Laundry room lease 29,070 - 29,070 - Insurance reimbursements - - - 388,133 Other 3,464 92,135 95,599 41,761 ' Total Operating Revenues 2,666,086 1,546,766 4,212,852 5,611,968 Operating Expenses: Operations 948,266 1,801,875 2,750,141 1,896,413 ' Health claims and premiums - - - 3,113,383 Depreciation 525,446 226,388 751,834 547,745 Total Operating Expenses 1,473,712 2,028,263 3,501,975 5,557,541 Operating Income (Loss) 1,192,374 (481,497) 710,877 54,427 ' Non-Operating Revenues (Expenses): Intergovernmental revenues - 586,404 586,404 - Gain (loss) on disposal of assets - - - 99,032 , Investment income 25,972 38,678 64,650 111,199 Interest expense reimbursement - rate cap agreement 42 - 42 - Interestexpense (1,118,931) - (1,118,931) - Financing fees (273,263) - (273,263) - Amortization of bond issue costs (75,922) - (75,!jL2j - ~ Total Non-Operating Revenues (Expenses) (1,442,102) 625,082 (817,020) 210,231 Income (Loss) Before Capitai Contributions (249,728) 143,585 (106,143) 264,658 Capital Contributions, Net - 110,860 110,860 57,489 ' Change in Net Assets (249,728) 254,445 4,717 322,147 Net Assets (Deficit) - January 1 (3,048,138) 1,883,706 (1,164,432) 5,297,994 ' Net Assets (Deficit) - December 37 (3,297,866) 2,138,151 (1.159,715L 5,620,141 ' ' , 1 ' . t The accompanying notes are an integral part of thPSe financial statements ' C6 a Town of Vait, Colorado , Proprietary Funds Statement of Cash Flows a 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 Cash Flows From Operating Activities: ~ Cash received from other funds - 512,427 512,427 4,911,409 Cash received from tenants for rent 2,638,942 2,638,942 Cash received from (refunded to) tenants for security deposits, net 2,400 - 2,400 - Other cash receipts 32,534 1.073,730 1,106,264 1,042,457 ~ Cash paid for goods and services (984,475) (411,414) (1,395,889) (4,182,034) Cash paid to employees (1,391,921) (1,391,921) (794,056) fdet Cash Provided (Used) by Operating Activities 1,689,401 (217,178) 1,472,223 977,776 Cash Flows From fVon-Capital Financing Activities: ~ Cash received from operating grants 586,404 586,404 _ 'fdet Cash Provided by Non-Capital Financing Activities 586,404 586,404 Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets - - - 148,760 ~ Principal repaid on bonds and notes (145,000) - (145,000) - Cash drawn on line of credit 1,022,570 1,022,570 Repayments of amounts drawn on line of credit (1,022,570) - (1,022,570) - Interestpaid (1,096,591) - (1,096,591) - Financing fees paid (267,269) - (267,269) ~ Acquisition and construction of capital assets - - (534,112) Plet Cash (Used) by Capital and Related Financing Activities (1,508,860) (1,508,860) (385,352) Cash Flows From Investing Activities: ~ Interestoninvestments 25,972 38,678 64,650 111,199 Net Cash Provided by Investing Activities 25,972 38,678 64,650 111,199 Plet Increase (Decrease) in Cash and Cash Equivalents 206,513 407,904 614,417 703,623 Cash and Cash Equivalents - Beginning 713,567 553,436 1,267,003 2,131,090 ~ Cash and Cash Equivalents - Ending 920,080 961,340 7881,420 2,834,713 Cash and Cash Equivalents - End of Period is Comprised of: Equity in pooled cash and investments - 961,340 961,340 2,834,713 ~ Cash and cash equivalents - Unrestricted 274.207 = 274,207 _ Cash and cash equivalents - Restricted 645.873 645,873 Total - Cash and Cash Equivalents 920,080 961,340 1,881,420 2,834,713 Reconciliation of Operating (Loss) to Net Cash ~ Provided by Opereting Activities: Operating (loss) 1,192,374 (481,497) 710,877 54,427 Adjustments: Depreciation 525,446 226,388 751,834 547,745 (Increase) decrease in accounts receivable (6,886) 39,391 32,505 341,897 (Increase) decrease in inventory - - (30,167) (increase) decrease in prepaid expenses 7,184 - 7,184 (17,176) Increase (decrease) in accounts payable (44,842) (13,784) (58,626) 76,947 Increase (decrease) in other liabilities 16,125 - 16,125 - Increase (decreases) in accrued wages and benefits - 12,324 12,324 4,103 Total Adjustments 497,027 264,319 761,346 923,349 fdet Cash Provided (Used) by Operating Activities 1,689,401 (217,178) 1.472,223 g77,77g Schedule of Plon-Cash Investing, Capitai and Financing Activities: ~ Assets donated by Capital Projects Fund - 77,860 77,860 57,489 Assets donated by external sources 33,000 33,000 Total - fVon-Cash Investing, Capital and Financing Activities: - 110,860 110,860 57,489 a a ~ 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, 2007 Deferred Pension Compensation ' Trust Plan Assets: Cash and investments - Restricted 41,126,867 6,361,956 ' Loans to participants 413,386 - 7otal Assets 41,540,253 6,361,956 Net Assets: ' Held in trust for pension benefits and . , other purposes 41,540,253 6,361,956 Total NetAssets 41,540,253 6,361,956 ' , ' , , ' ' ' ' ' , The accompanying notes are an integral part of these financial statements C8 ' ~ ~ Town of Nail, Colorado Fiduciary Funais SQatement og Changes in Fiduciary Neg Asse4s ~ FOP QFIe VeaP EP1deCI DeCeY9'1beP 31, 2007 ~ DefeP'Ped Pension Compensa4ion ~ Yrust PIan Adldagions: Contributions 2,328,249 798,995 ~ Investment income 1,640,727 232,407 T04a1 Addi4ions 3,968,976 1,031,402 Deductions: ~ Professional fees 5,025 9,064 Benefits paid 1,996,686 427,193 Yo4al Deductions 2,001,711 436,257 ~ Change in ftlet Asse4s 1,967,265 595,145 ~ RIe4 Assets - January 1 39,572,988 5,766,811 R1e4 Assets - December 31 41,540,253 6,361,956 ~ ~ a ~ ~ ~ ~ ~ ~ The accompanying notes are an integral part of these financial statements C9 ~ ~ ~ ~ a ~ NOTES TO YHE FINANCIAL S7ATEMENTS a a 0 ~ 0 a 0 a a a 0 0 ~ Towav of !!as@, Co9orado R1otes to t6ae FanancaaE Statemengs . DeceonbeP 31, 2001 ~ ~ V. Summarryy off Sagnuficaov4 Accoanngfing Po9ucues 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 a Council-Manager form of government. The Town's major operations include public safety, public works and transportation, culture and recreation, economic development, administration (general government), and housing. ~ The Town's financial statements are prepared in accordance with generally accepted accounting principles ("GAAP"). The Governmental Accounting Standards Board ("GASB") is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and ~ Interpretations). Governments are also required to follow the pronouncements of the Financial Accounting Standards Board ("FASB") issued through November 30, 1989, when applicable, that do not conflict with or contradict GASB pronouncements. The more significant accounting policies established by GAAP used by the Town are discussed belowr. ~ A. Reportuovg Euaga4y ~ The reporting entity consists of (a) the primary government; i.e., the Town, and (b) organizations for which the Towrn 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 "DistricY'), ~ Timber Ridge Affordable Housing Corporation (the "Corporation") and Vail Reinvestment Authority (the "Authority"). The financial statements of theses entities can be obtained from the Town's administrative offices. A fourth blended component unit, the Town of Vail General Improvement District iVo. 1, is a dormant entity and, therefore, has no ~ financial statements to report. I. !lauV LocaV Markeaang Das4Pac4 ~ 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 DistricYs Board of Directors. The District is reported as a special revenue fund. ~ ~ a D1 Town of Vail, Colorado ~ Notes to the Financial Statements December 31, 2007 (Continued) ' I. Summary of Significant Accounting Policies (continued) ~ A. Reporting Entity (continued) 2. Timber Ridge Affordable Housing Corporation ' The Corporation was incorporated on July 9, 2003 as a Colorado non-profit corporation to provide affordable housing for persons employeci 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 hou:;ing project (the "ProjecY") located in the Town. The formation of the Corporation was approved by the Town, and its operations ' are governed by a Board of Directors comprised, as of March 1005, of inembers 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 Towri 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 trie Corporation. The Corporation is reported as an enterprise fund. The Corporation's total expenses exceeded aggregate revenues by $249,728 for ' 2007. This adds to the Corporation's $3,048,138 deficit net assets balance accumulated in the period from inception of operations, July 17, 2003 to December 31, 2006. Since the inception of operations, the Corporation has incurred mold remediation costs totaling $1,417,292, of which (Dnly $10,182 was , spent in 2007. 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 r 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 fluctuated since the issuance of these bonds. The ' Corporation's Rate Protection Agreement outlined in Note IV. J. below, has limited the Corporation's effective interest rate on the 2003A Bonds to 5.5% per annum through May 1, 2008. While short-term interest rates have stabilized ' below the current rate cap threshold, any significant increase iii rates could have an adverse impact on the Corporation's cash flow. During 2006, the Corporation was advanced $200,000 by the Town. This ~ additional funding helped improve the Corporation's year-end liquidity position, although current liabilities continue to exceed current assets. 'fhere were no additional advances from the Town in 2007. ~ ' ' D2 , ~ Town of VaBO, Co9orado R1otes to the FinancBal Statements Deceegabep 31, 2007 ~ (Contunue¢9) a 0. Sumamary off Sagnufacan4 Accoanntaeag PoBocues (coaatBoaued) A. Reportuaag lEntaty (cont6naae¢E) ~ 3. Timrober VB6dge Affordaboe Housing Corporataon (cosvt'snased) 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. a The Board considers the above factors significant to its future operations and wras in negotiations with a potential buyer who would develop the project. Those negotiations were terminated as of March 18, 2008. The Board and Town still intend to redevelop the property and will begin a master planning process and issue a request for proposals in 2008. In 2007, the Board commissioned an engineering study and began a capital maintenance and replacement program to ~ address the deteriorating condition of the property. The Replacement Reserve Fund will be used to fund the program. a The Board also projects that, under current master lease agreements, rental revenues will be sufficient to cover operating expenses, debt service and rate cap resenres for the next several years. However, the Board does not anticipate that the required bond reserves will be reinstated during this period. ~ 3. l90 ReBndesQmeovt Aut6toeuty ~ The Authority was created on iVovember 4, 2003 pursuant to the Colorado Urban Renewral 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 inembers of the Town Council. The Authority is reported as a special revenue fund. a 4. Towuu o¢ QlauV Geauera@ ~unproeemeret D6stract No. 9 On October 3, 2006, the Towrn Council accepted a petition requesting formation ~ of the Town of Vail Public Improvement District No. 1. The District is a public, or quasi-municipal subdivision of the state of Colorado and a body corporate with the powers set forth in Part 6, Article 25, Title 31 of the Colorado Revised ~ Statutes. The Town Council is the ex officio Board of Directors of the District. Services provided by the District include (a) programming, regulating, and generally administering public functions to be conducted on the public plaza which will be constructed as part of the Solaris redevelopment project and (b) ~ maintaining the plaza to the extent that the Solaris Metropolitan District fails to do so. ~ At a special election on November 7, 2006, the eligible electors of the District authorized imposition of a mill levy of not more than fifteen mills in any year for the purpose of funding the administration, operation, and maintenance of the DistricYs facilities should the Solaris Metropolitan District fail to do so. ~ As of December 31, 2007, the District had not begun operations or imposed a mill levy, resulting in no financial statements to be reported. ~ D3 U Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2007 (Continued) ~ I. 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 1'unds). 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 anid 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 t7xes, 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 ' expend itu res/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 acc:ounts for all financial resources of the Town, except those required to be ac:counted 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 tfie 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. ' D4 ~ ~ Towua off !la09, Co9orado Notes to the IFunancBal Statemengs DeceoxobeP 31, 2007 ~ (Cocotuanaaetl) ~ V. S9,OP9'BPif~ary Off S9gn9fBCanQ AcCOunQOP9g IP009C0es QCOnt9E1uedD C. Faons9 FunancoaB Stagemeuugs (contanaaed) ~ The conference center taxes were rescinded by election in November, 2005. A TABOR election is required to release conference center funds for any purpose. ~ 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 Towrn employees. ~ Trust funds are used to account for the accumulation of resources for pension benefit payments to qualified Town employees and to account for assets held for a employees in accordance with the provisions of Internal Revenue Code section 457. D. Measaspeav~eng Focaus, Basis off Accoaooaging, and Fanaeocua0 Statement PPesentat6on ~ 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-trerm Ecooaomuc Focus and Accraaal Basos Both governmental and business-type activities in the government-wide financial ~ statements and the proprietary and fiduciary fund financial statements use the long-term economic focus and are presented on the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when ~ incurred, regardless of the timing of the related cash flows. ~ D5 Town of Vail, Colorado , Notes to the Financial Statements December 31, 2007 (Continued) ~ I. 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 c;ustomers 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 cleneral revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expense s 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 rents from individuals emplc?yed in the Town ' and charges for services related to emergency dispatch. Operating expenses for the enterprise fund includes operating expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as ~ nonoperating revenues and expenses. E. Financial Statement Accounts 1. 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 Furnd. In addition, the component units do not participate in the Town's central cash rnanagement. Equity in pooled cash and investments include demand deposits, short-term , investments with original maturities of three months or less froin the date of acquisition, and long-term investments in U.S. government obligations. Investments are stated at fair market value. ~ ~ ~ D6 ~ ~ Vown of VaaV, Coloradlo RloQes to the F6nancaaE Staternents DeceonbeP 31, 2005' (Coaa~inasec@) ~ 6. Saammaryy off SugnaffBcang Accoaunaung IPoBucues (contBnued) E. FuoaaaucuaV S4a8euvoent Accousvts (conQunued) a 2. Cash andl CasVv [EquudaVeoats Cash and cash equivalents include cash on hand and investments with original ~ maturities of three months or less from the date of acquisition. Restricted cash and cash equivalents represent amounts restricted by bond indentures and other binding commitments. ~ 3. Receava6xVes a Receivables are reported net of an allowance for uncollectible accounts. 4. PPOQxerty 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 ra receivable and as deferred revenue. 5. Voaeengory ~ 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. PPepaud (Expenses Payments made to vendors for services that will benefit periods beyond ~ December 31, 2007 are recorded as prepaid expenses. 7. Boaad 9ssauance 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. Vuagerffaoovdl Receudaboes and PayabBes Balances at year end befinreen 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. ~ ~ ~ D7 Town of Vail, Colorado ~ Notes to the Financial Statements December 31, 2007 (Continued) ' I. Summary of Significant Accounting Policies (continued) ~ E. Financiai Statement Accounts (continued) 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 ti) the value of the ' asset or materially extend asset lives are not capitalized. Impruvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. ~ Capital outlay for projects is capitalized as projects are constructed. Interest incurred during the construction phase is capitalized as part of the value of the , assets. Capital assets (excluding land) are depreciated using the straiclht-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 unearned. In subsequent periods, when revenue recognition criteria are met, or when the , Town has legal claim to the resources, the liability for deferred revenue is removed and revenue is recognized. 11. Compensated Absences ~ Vested or accumulated vacation leave that is expected to be liquidated with ~ expendable available financial resources is reported as expenciiture and a fund liability of the governmental fund that will pay it. Amounts of vE~sted 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, Ac;counting for Compensated Absences, no liability is recorded for non-vesting accumulating rights to receive sick pay benefits. , ~ D8 ' ~ Town of !laiV, CoBorado No4es to the FanancoaB Sgatements December 31, 2007 (Coeatana~ed) ~ V. Saummaay of Sugnuffucaovt Accoaa¢ateuag Po@'scaes (contanaaes9) E. FunancuaV Sta~emen4 Accousats (cocatunuedl) ~ 92. Fund [Eqanuty 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, 2007, the Town reported $1,910,702 of restricted net assets which was comprised of $252,710 restricted for debt service payments, $10,992 restricted for a symposium, and $1,647,000 restricted for ~ emergencies (as subsequently explained in iVotes III.E. and F.). Designations of fund balance represent tentative management plans that are ~ subject to change. Designations of fund balance are reported only on fund financials and not on the government-wide financial statements. 13. Vnteofaooad Transactaons ~ 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. Sagnaffucaoa4 Accoaouatuoag PoBicBes 1. Use off fEstu¢rpaaQes ~ 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. PpoprueQaQy Fauavds 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. CPecflot Rusk ~ 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. ~ D9 Town of Vail, Colorado ~ Notes to the Financial Statements December 31, 2007 (Continued) ' I. Summary of Significant Accounting Policies (continued) ' F. Significant Accounting Policies 4. Restricted and Unrestricted Resources ' When both restricted and unrestricted resources are available for use, it is the governmenYs policy to use restricted resources first, then unrestricted resources , as they are needed. II. Reconciliation of Government-wide and Fund Financial Statements ~ A. Explanation of Certain Differences Between the Governmental Fuind 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 $88,198,056 difference is related tio property, plant , and equipment of $201,886,203 less accumulated depreciation of $113,688,147. Another element of that reconciliation explains "Other long-term asset:; are not available for current period expenditures and therefore are not reported in the funds". This ~ $920,559 difference is bond issue costs of $433,388, less accumulateci amortization of $289,720, pension forfeitures of $680,423, and interest receivable of $96,468. Additionally, the reconciliation states that long-term liabilities are not diae and payable in ~ the current period and, therefore, are not reported in the funds. This $11,301,547 difference is related to bonds and notes payable of $10,265,000, accrued compensated absences of $1,001,112, and interest payable of $35,435. ~ B. 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 reportecl 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 Laseful lives as depreciation expense." The details of this $2,503,636 difference are comprised of capital outlay of $12,851,233, less depreciation expense of $10,347,597. ~ i D10 ~ ~ Towov o$ MaaO, Colorado Rlotes to t9ve Fiavancaa@ Stateanents Deceav~9~eP 31, 2007 ~ (Coaut6anaaed) ~ M. Stev+~~rdshBp, Comp9Baaace, andl AccoaooatabiVa4y A. Budgeaauy Vnfopuvoatriooa ~ An annual budget and appropriation ordinance is adopted by Town Council in accordance with the Town's Home Rule Charter. a 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: a Heavy Dispa4ch EquipPnen@ ServBces Furod Fund a Change in Net Assets - Budget Basis $ 349,404 $ 375,180 add/(less): - Contribution from Capital Projects Fund 57,489 77,860 ~ Contribution from external source - 33,000 Change in compensated absences (2,229) (5,207) Capitalized assets 534,112 - ~ Depreciation (547,745) (226,388) Net book value of disposed assets (49,728) Change in Net Assets - GAAP Basis $ 341,303 $ 254,445 ~ 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 2007. (1) For the 2007 budget year, prior to August 25, 2006, the County Assessor sent the Town a certified assessed valuation of all taxable property writhin the Towrn's boundaries. ~ (2) Prior to the end of the 2006 fiscal year, the Town Manager submitted to the Town Council a budget and accompanying message. ~ (3) Prior to December 15, 2006, 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 "iVotice of Proposed Budget", the Town adopted the proposed budget and an appropriation ordinance which legally appropriated expenditures for the upcoming year. ~ ~ ~ ~ D11 Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2007 (Continued) ~ III. Stewardship, Compliance, and Accountability (continued) ' A. Budgetary Information (continued) (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. Taxes levied in one year are collected in the succeeding year. Thus, tzixes certified in , 2006 were collected in 2007 and taxes certified in 2007 will be collecte(J in 2008. Taxes are due on January 1 st in the year of collection; however, they may be paid in either one instailment (no later than April 30th) or two equal installments (not later than February , 28th and June 15th) without interest or penalty. Taxes that are not paici within the prescribed time bear interest at the rate of one percent (1%) per month until paid. Unpaid amounts and the accrued interest thereon become delinquent on June 16th. During the year, supplemental appropriations were necessary. The budgetary ~ comparison statements reflect the original budget and the final budget after legally authorized revisions were made. ' 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 2007. (1) On or before September 30, 2006, 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 19, 20C16. (2) After appropriate public notice and a required public hearing, tfie Board must ~ adopt the proposed budget and an appropriating resolution thart legally appropriated expenditures for the upcoming year on or before December 5, 2006. The Board adopted the 2007 budget on December 5, 2006. (3) After adoption of the initial budget resolution, the District may rnake the following , changes: a) approve supplemental appropriations to the exterit of revenues in excess of those estimated in the budget; b) approve emergenc:y 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 Rid9e Affordable Housin9 CorPoratiori , The Corporation had a deficit of net assets at December 31, 2007 of $3,297,866. , ' D12 , ~ Town of VauB, CoYorac9o Notes to the FBnancaal Statemeoats December 31, 2007 ~ (Cooa4Bnaued) ~ - VOV. Sgewardsh6p, Complaance, and AccoanntabaVoty (cosat6nued) D. CompOuance wuth TPaus4 Vndeauaures -TBmber Rodge Afifordab9e 9iousaaag 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 and required additional funding during 2004, 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), balances at December 31, 2007 and 2006 in the Bond Reserve Fund for the 2003A Bonds were ~ $575,666 and $576,516, respectively, 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. For 2007, the minimum funding required for the Replacement Resenre was met by the Corporation. In 2006, the $98,345 required funding of the Replacement Reserve was allocated to mold ~ remediation at the Project. The 2003A Indenture and 2003B Indenture each impose financial ratios relating to debt ~ senrice coverage. At December 31, 2007 and 2006, the Corporation did not meet the minimum required debt service coverage ratios under the terms of the 2003A Indenture or the 2003B indenture. ~ E. 1rAB0R Amenc9meaut 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. ~ Except for refinancing bonded debt at a lower interest rate or adding new employees to existing pension plans, TABOR requires advance voter approval for the creation of any multiple-fiscal year debt or other financial obligation unless adequate present cash reserves are pledged irrevocably and held for payments in all future fiscal years. ~ TABOR also requires local governments to establish an emergency reserve to be used for declared emergencies only. Emergencies, as defined by TABOR, exclude 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, 2007 fund balance in the General Fund for this purpose in the amount of $1,584,000 which is the approximate required reserve. ~ ~ ~ D13 Town of Vail, Colorado , Notes to the Financial Statements December 31, 2007 (Continued) ' III. Stewardship, Compliance, and Accountability (continued) ' E. TABOR Amendment (continued) The initial base for local government spending and revenue limits is December 31, 1992 ' fiscal year spending. Future spending and revenue limits are determinf:d 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. On November 16, 1993, voters of the Town approved the collection anci expenditure of all , revenues generated, including reduction in debt service during 1993 and each subsequent year (not including revenue generated from ad valorem property taxes) ' without any increase in such tax rates and the expenditure of such revenues for debt service, municipal operations, and capital projects, effective January 1, 1994. On November 7, 2000, the Town's electorate approved the collection and expenditure of ~ all revenues received from ad valorem property taxes levied in 2000 and each year thereafter. The remaining restrictions of the TABOR Amendment apply, which are: , • Voter approval of all new taxes and tax rate increases; • Voter approval for new or additional Town debt; • No increase or imposition of a new real estate transfer tax; and, ~ • All election requirements remain in effect. The Town's management believes it is in compliance with the financial provisions of ' TABOR. However, TABOR is complex and subject to interpretation. Many of its provisions, including the interpretation of how to calculate fiscal year spending limits, will require judicial interpretation. F. TABOR Amendment - Vail Local Marketing District , As required by TABOR, the District has reserved $63,000 of its fund balance for ~ emergencies, which is the approximate required reserve at December 31, 2007. The ballot question approved by voters on November 2, 1999, which established the 1.4% tax on lodging within the Town's boundaries also authorized the District to collect , and spend the proceeds of the lodging tax, investment income, and all other revenues, without regard to the limitations imposed by TABOR, effective January 1, 2000. The DistricYs management believes it is in compliance with the financial provisions of , TABOR. However, TABOR is complex and subject to interpretation. Many of its provisions will require judicial interpretation. ~ , ' D14 ~ ~ Vown of !lauB, Colorado Noges to ghe Finaeacoa9 Statements DecembeP 31, 2007 ~ (Con$uaaased) ~ VV. Detafiled No$es on aBa Faonds A. Cash aoad Vndesgmengs ~ 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. 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 over $100,000 are collateralized as required by PDPA. As of year end, the bank balance of the Town's deposits was $5,703,455. At year end, the Town had the following investments and maturities: ra Carrying Type Rating Maturities Value Deposits: Cash on hand 16,240 Demand deposits 7,546,955 Certificates of deposit <1 year 1,786,721 ~ Total deposits 9,349,916 Investments: US Agencies - FHLM, FHLB, FNMA AAA <1 year 1,242,016 US Agencies - FHLMC, FHLB, FNMA, FFC AAA <5 years 2,626,288 Mortgage pools AAA N/A 1,888,623 Colotrust AAAm N/A 39,195,162 ~ Pension and Section 457 investments NlA NIA 48,169,246 Total investments 93,121,335 Total deposits and investments 102,471,257 ~ Reconciliation to Statement of Net Assets: Equity in pooled cash and investments 52,266,040 Cash and cash equivalents - Unrestricted 1,390,092 ~ Cash and cash equivalents - Restricted 1,326,296 Fiduciary Funds 47,488,823 Total 102,471,251 ~ D15 Town of Vail, Colorado , Notes to the Financial Statements December 31, 2007 (Continued) , IV. Detailed Notes on all Funds (continued) ~ A. Cash and Investments (continued) Pools. The Town has invested in the Colorado Government Liquid Asset Trust , ("ColotrusY'), 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 invests primarily in securities witli a maximum , investment term less than five years from the purchase date. As a restalt of the limited length of maturities the Town has limited its interest rate risk. 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 secunty 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 Ratin9 Perci3,nta e , Colotrust AAAm 87% ' 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. ~ ~ r i 1 D16 , ~ Vown off !la69, Colorado Notes to ghe Financaal Statements DecembeP 31, 2007 ~ (continued) ~ 0!!. DetaA@ed Notes oov afl Fanovds (conganuetl) B. Receudalb8es ~ Receivables as of year-end for the Town's funds, including applicable allowances for uncollectible accounts, are as follows: ~ Capital Real EsQa4e Vail Vail Local General Projects 7ransfer Marketing Marke4ing Fund Fund 7ax Fund Fund Dis4ric4 ~ Receivables: Property taxes $ 4,314,858 _ - Other taxes 729,087 2,896,316 342,991 - 384,669 ~ Employees 126,330 - - - - Other 209,614 469,503 324,788 867 Gross Receivables 5,379,889 3,365,819 667,779 867 384,669 Less: Allowance for ~ uncollectibles (1,000) - - - - R9e4 Receivables $ 5,378,889 3,365,819 667,779 867 384,669 ~ !/ail Heavy Rein- Equip- Dispatch Fiealth 7imber vesQmen4 ment Services Insurance ~ E3idge Authori4y Fund Fund Fund 7otal Receivables: Property taxes $ - - - - - 4,314,858 ~ Other taxes - - = - = 4,353,063 Employees 126,330 Other 19,139 66 20,599 - - 1,044,576 Gross Receivables 19,139 66 20,599 - - 9,838,827 Less: Allowance for uncollectibles - - - - - (1,000) ~ R1etReceivables $ 19,139 66 20,599 - - 9,837,827 ~ ~ ~ D17 Town of Vail, Colorado ~ Notes to the Financial Statements December 31, 2007 (Continued) , IV. Detailed Notes on all Funds (continued) ' B. Receivables (continued) Governmental funds report deferred revenue in connection with receivzlbles for revenues ~ that are not considered to be available to liquidate liabilities of the current period. Total deferred revenue for governmental activities totaled $4,662,124 and is comprised of the following: ~ General Capital Project RETT Property taxes assessed but not Fund Fund Fund collectible until 2008: $ 4,314,858 ~ Other deferred revenues: Business licenses 44,790 Library grants 92,411 , Police programs 10,065 Construction projects 1100,000 100,000 $ 4,462,124 $ '100,000 $ 100,000 , Deferred revenue for business-type activities in the amount of $197,702 is related to ~ prepaid rent. Deferred revenue for construction projects relate to $100,000 funds collected from a developer, and $100,000 of contributions collected for Art in Public Places from another ~ developer, both of which the Town has not begun construction. The revenue will be deferred until the year the money will be spent. C. Capital Assets ~ The Governmental Accounting Standards Board Statement No. 34 (GASB-34) requires , the capitalization of general infrastructure both prospectively and retroactively. Retroactive application requires governments to capitalize major infrastructure assets they acquired in the past 25 years or during fiscal years ending after Jtane 30, 1980. Based on the Town's annual revenues, implementation was required by December 31, , 2007. The Town is in compliance with GASB 34's infrastructure reporting requirements. During 2007, the Town added fully depreciated general infrastructure assets with an , aggregate historical cost of $54,016,471 to the governmental activities Statement of Net Assets, in compliance with the infrastructure reporting requirements. AIso during 2007, the Town increased its capital assets to reflect the inclusion of certain items previously omitted from the Town's capital asset listing. ' The beginning balance of the Town's capital assets has been restated to reflect these changes, as stated in the following exhibit and accompanying financial statements. , ' ' D18 , Town of VaaO, ColoPac9o Riotes go ahe Fuavancaa8 Statements DeceavabeP 31, 2007 ~ (Coaatunued) ~ V!!. Deta's9ed Notes oaa aB0 Faauads (contuovased) C. CapuW Assets (contanased) ~ Capital asset activity for the year ended December 31, 2007 was as follows: Beginning Balance Ending (As restated) Increases Decreases Balaroce Governrinental Actibities: ~ Capital Assets, Not Being Depreciated: Land $ 26,136,364 2,086,226 28,222,590 Total Capital Assets, Not Being Depreciated 26,136,364 2,086,226 - 28,222,590 ~ Capital Assets, Being Depreciated: Buildings and improvements 69,189,112 1,569,190 (280,778) 70,477,524 ~ Infrastructure and improvements 82,096,337 7,629,651 - 89,725,988 Equipment and vehicles 21,198,126 2,157,771 (1,043,597) 22,312,300 Total Capital Assets Being Depreciated 172,483,575 11,356,612 (1,324,375) 182,515,812 ~ Less Accumulated Depreciation For: Buildings and improvements (41,540,985) (3,581,590) 15,056 (45,107,519) Infrastructure and improvements (55,227,854) (5,364,238) - (60,592,092) ~ Equipment and vehicles (12,913,127) (1,949,514) 972,415 (13,890,226) Total Accumulated Depreciation (109,681,966) (10,895,342) 987,471 (119,589,837) Total Capital Assets, Being Depreciated, Net 62,801,609 461,270 (336,904) 62,925,975 _ ~ Governmen4al Activities Capital Assets, NeR $ 88,937,973 2,547,496 (336,904) 91,148,565 ~ Busi ness-tyype Activities Capital Assets, Not Being Depreciated: Land $ 4,399,500 - - 4,399,500 ~ Total Capital Assets, IVot Being Depreciated 4,399,500 - - 4,399,500 Capital Assets, Being Depreciated: ~ Buildings and improvements 15,592,145 - = 15,592,145 Equi pment 2,418, 730 110,860 2,529,590 Total Capital Assets Being Depreciated 18,010,875 110,860 - 18,121,735 Less Accumulated Depreciation For: Buildings and improvements (1,800,068) (525,446) - (2,325,514) Equipment (1,028,280) (226,388) - (1,254,668) ~ Total Accumulated Depreciation (2,828,348) (751,834) - (3,580,182) Total Capital Assets, Being Depreciated, Net 15,182,527 (640,974) 14,541,553 Buseness-4ype Activities Capital Assets, R1eg $ 19,582,027 (640,974) - 18,941,053 ~ D19 Town of Vail, Colorado ~ Notes to the Financial Statements December 31, 2007 (Continued) , IV. Detailed Notes on ali Funds (continued) ' C. Capital Assets (continued) Depreciation expense was charged to functions of the Town as follows: ' Govemmental Activities: General government $ 290,884 , Public safety 287,948 Public works and transportation 9,167,759 Culture and recreation 601,007 , Total Depreciation Expense - Governmental Activities $ 10,347,598 Business-type Activities: ~ Dispatch services $ 226,388 Housing 525,446 Total Depreciation - Business-type Activities $ 751,834 ~ Depreciation on fixed assets is recorded using the following estimated iiseful lives: Years ~ Buildings 25 - 40 Building improvements 7 - 25 Infrastructure 5 - 30 ' Vehicles 5 - 15 Equipment 5 - 10 At December 31, 2007, the Town had $23,331,558 of fully depreciated assets. ~ D. Operating Leases The Town is committed under various leases for buildings, office space, and equipment. , For accounting purposes, these leases are considered to be operating leases, and therefore, the liability and the related assets have not been recorded in these financial ' statements. E. Interfund Receivables, Payables, and Transfers There were no interfund balances at December 31, 2007. ' Interfund transfers during the year ended December 31, 2007 were as follows: ' Transferred to: Transferred from: Amount Purpose Capital Projects General 222,500 Purchase of employee housing; legal fees Debt Service Fund Capital Projects 2,322,497 Transfer sales tax for debt service payment ~ ~ D20 ' Town o$ bauV, Colorado No$es 40 the Financsal Statements DecembeP 39, 2005 (ContooaaaecE) ~ VV. Detauled Noges oaa aOB Fannds (contananec9) F. L060g-gePBiN L0ab980t0e$ - GOVePO'llP?'6e6?$aI ACt9b1t9eS ~ The Town has the following long-term debt outstanding for governmental activities: 1. Vau-Exempt Saaes Tax Rebenue Reffundang Bonds, Seraes 1998A ~ The Town issued $8,760,000 of insured Tax-Exempt Sales Tax Revenue Refunding Bonds (the "1998A Bonds") dated September 1, 1998. Proceeds of the 1998A and 19986 Bonds (described below) were used to refund the ~ outstanding principal balance on bonds issued in 1991 and 1992, which are considered to be defeased. The interest rate on the 1998A Bonds ranges from 4.25% to 4.5%. Coupon payment dates for the 1998A Bonds are June 1 and ~ December 1 annually. The Bonds are revenue obligations of the Town payable solely from the Towrn'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. ~ a. TaxabVe Sa9es Tau Rebenaoe Refunc9ing Bonds, Seraes 1998B The Towrn issued $735,000 of insured Taxable Sales Tax Revenue Refunding ~ Bonds (the "1998B 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 1998B Bonds are revenue obligations of the Town payable solely from the Town's 4% sales tax. The bonds are secured by a lien on, but not an exclusive lien on, the sales tax. ~ The 19986 Bonds were retired in 2007. 3. SaBes Tau Redenaue Refundang Bonds, SePaes 2002B ~ The Town issued $5,570,000 of Sales Tax Revenue Refunding Bonds dated September 1, 2002 (the "20026 Bonds"). Proceeds from the 2002B Bonds were used to refund outstanding 1992 bonds. ~ The interest rate on the 20026 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 Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2007 (Continued) , IV. Detailed Notes on all Funds (continued) ' F. Long-term Liabilities - Governmental Activities (continued) 3. Sales Tax Revenue Refunding Bonds, Series 20026 (continued) , 2002B Bonds maturing on or before December 1, 2011 are no1: subject to prior redemption. 2002B Bonds maturing on or after June 1, 2012 aire 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 equail 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 airount of $19,025,000 as limited obligations of the Corporation and not indebtedness of the Town. The 2003A Bonds are payable solely from the rent:; and other , receipts from operation of the Project, net of the ProjecYs actu;al operating expenses (the "Pledged Revenues") and the various reserve ftands and other monies pledged under the terms of the 2003A indenture. Certain capitalized ' terms are further described in the 2003A indenture. The 2003,A Bonds bear interest at the Weekly Rate established by the George K. Baurn & Company (the "Remarketing AgenY") until converted to another "mode", inclucling 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 tendemd bonds are then to be subsequently remarketed by the Remarketing Agent. 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 monies in the Redemption Fund, as follows: • 2003A Bonds in a Daily Mode or Weekly Mode - on any date prior to Maturity ' at 100% of the principal amount, plus accrued interest. ' ~ ~ ' D22 , ~ Towov of VauB, Colorado Notes to the Fsnancaa9 Statemengs DecembeP 31, 2007 ~ (Conaunued) ~ V!!. Detai9ed Notes oeu a9V FannaBs (con40naned) G. Loovg-4erm lLaabuVatues - Bausiness-gype Actavetues (contanaaed) ~ 9. As9justa~@~le 9~ate C~o~asacog Facs9ities V~eveaaa~e Bonds, Seraes 2003A (contBnaaedl) ~ 0 2003A Bonds in a Commercial Long-Term Mode - after the following No-Call Period and at the following redemption prices, plus accrued interest: Lenq4h of l2ate Period No-CaN Period Redemption Price ~ Greater than 12 years 10 years from the Rate 101 declining 0.5% per Change Date 6 months to 100% ~ Greater than 4 years, but Until 2 years prior to the 100% less than 12 years end of the Rate Period a Less than or equal to Length of the Rate Period Not subject to optional 4 years redemption ~ 0 2003A bearing a Fixed Rate - after the following No-Call Period and at the following redemption prices, plus accrued interest: Lenqth of Rate Period No-Call Perioc9 Redemptiora Price ~ Greater than 12 years 10 years from the 101 declining 0.5% per Conversion Date 6 months to 100% ~ Greater than 4 years, but Until 2 years prior to 100% less than 12 years Maturity ~ Less than or equal to Term to Maturity Not subject to optional 4 years redemption ~ From the date of issuance through December 31, 2007, the 2003A Bonds have been in Weekly Mode, with interest rates set by the Remarketing Agent. Interest rates on the 2003A Bonds ranged from 4.76°to to 5.92% per annum in 2007 and ~ from 4.49% to 5.50% per annum in 2006. At December 31, 2007, the interest rate on the 2003A Bonds was 4.96% per annum (5.45% at December 31, 2006); however, the Corporation's effective interest rate has been limited to 4% through ~ August 1, 2006 and 5.5°/a thereafter, as provided by the Rate Protection Agreement discussed in Note IV. J. Total interest expense for 2007 incurred in respect of the 2003A Bonds was $1,017,124 ($986,433 for 2006). ~ ~ ~ D23 Town of Vail, Colorado ~ Notes to the Financial Statements December 31, 2007 (Continued) ' IV. Detailed Notes on ali Funds (continued) ' G. Long-term Liabilities - Business-type Activities (continued) 2. Subordinate Housing Facilities Revenue Bonds, Series 200313 ("2003B ' Bonds") The 2003B 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 sole4y from the Pledged Revenues and the various reserve funds and other monies pledged under the terms of the 2003B 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 2003B Bonds bear interest at the rate of 6.25% per annurri, with semi-annual ~ blended payments of interest and principal on June 1 and December 1 annually. During 2007, the Corporation incurred interest expense totaling $73,307 in respect of the 2003B Bonds ($82,083 for 2006). , The 2003B Bonds mature December 1, 2013 but are subject tci 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 Iproceeds of refunding bonds or other financing by the Corporation. 3. Promissory Note - Town of Vail (the "Town Notes") , In connection with the Corporation's purchase of the Project, tfie 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, 2007, the balance outstanding under the terms of these promissory notes (collectively, the "Town Notes") was $1,900,000 ($1,900,000 at ' December 31, 2006). 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 Corporatiori 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 2003B Bonds. The Town Notes may be repaid by the Corporation at any time without penalty. In the event that a shortfall arises in the Bond Reserve Funds (as defined in the ' 2003A and 20036 Indentures) for the 2003A Bonds and/or the 2003B 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. D24 ' ~ Tovdn og!lauB, Co9orado Notes go t9ae Fifiancua@ Statements December 31, 2007 ~ QContfiuaaaed~ ~ IV. Detailes9 Notes oav a0V Faands (con4unued) G. Long-Qerm UaMutaes - Bassoness-@ype Activities (contaroued) ~ 3. PromassoPy Noge - ~own of Vaa9 (t9ae "TownNotes") (cont6nuec9) 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 2003B Indentures) for the 2003A Bonds or the 20036 Bonds. The Corporation incurred interest expense totaling $28,500 during 2007 ($26,116 ~ for 2006) in respect of the Town Notes. At December 31, 2007, the Corporation had accrued a total of $98,468 ($67,968 at December 31, 2006) in interest payable to the Town under the terms of the Town Notes. H. Losag-4epevo lL6aba96gaes - Compensate¢9 Abseavces 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, 2007 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 $2,578,227 at December 31, 2007 has not been reflected in the Town's financial statements as the amount is partially insured by an independent insurance company and the amounts are not payable at termination. ~ V. Long-geran LiaBaaBu$aes - Actav6ty and Debt Service Sc9aedaa9es ~ Long-term liability activity for the year ended December 31, 2007 was as follows: Begirsning Ending Due WiQhiuo Balaesce Additions C2ec9uctions Balance One VeaP Govemrnental Ac4ivBties: General Obligation Bonds: Tax-Exempt Refunding Bonds, ~ Series 1998A 8,760,000 - (985,000) 7,775,000 1,425,000 Taxable Refunding Bonds, Series 1998B 375,000 - (375,000) - - ~ Refunding Bonds, Series 20026 2,940,000 - (450,000) 2,490,000 465,000 Compensated absences 1,041,484 10,711 1,052,195 420,878 YotaE Goverrsrners9a9 Activities Long-tern Liabilities $ 13,116,484 10,711 (1,810,000) 11,317,195 2,310,878 ~ Business-4ype Actidities: Housing Faalities Revenue Bonds: ~ Adjustable Rate, Series 2003A $ 19,025,000 = - 19,025,000 - Subordinated, Series 20036 1,185,000 (145,000) 1,040,000 155,000 Promissory note 1,900,000 - - 1,900,000 - ~ Compensated absences 50,278 5,207 - 55,485 22,194 7ofal Business-4w Activities Long-teesn Liabili4i_ ~ $ 22,160,278 5,207 (145,000) 22,020,485 177,194 ~ D25 Town of Vail, Colorado ~ Notes to the Financial Statements December 31, 2007 (Continued) , IV. Detailed Notes on all Funds (continued) ' 1. Long-term Liabilities - Actrvity and Debt Schedules (continued) Debt service requirements at December 31, 2007 were as follows: , Principal Interest Total Governmental Activities: 2008 1,890,000 432,396 2,322,396 , 2009 1,965,000 355,165 2,320,165 2090 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 $ 10,265,000 1,336,124 11,601,124 Business-type Activities , 2008 155,000 1,037,140 1,192,140 2009 550,000 1,027,453 1,577,453 , 2010 585,000 998,302 1,583,302 2011 635,000 967,287 1,602,287 2012 670,000 933,404 1,603,404 2013-2017 3,000,000 4,174,401 7,174,401 ' 2018-2022 3,630,000 3,390,308 7,020,308 2023-2027 4,715,000 2,387,644 7,102,644 2028-2032 6,125,000 1,085,396_ 7,210,396 ' Total Business-type Activities $ 20,065,000 16,001,335 36,066,335 , General obligation bonds issued for governmental activity purposes arED liquidated by the Debt Service Fund, whereas, general obligation bonds issued for component unit , purposes are liquidated by the component unit. 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 $712,500 ' respectively. J. Credit Facility and Reimbursement Agreement - Timber Ridge Affordable Housing , Corporation Certain capitalized terms are defined in the 2003A Bonds Indenture. In connection with the issuance of the 2003A Bonds, an irrevocable, stand-by, direct pay , letter of credit (the "Credit Facility") in the amount of $19,207,432 was established July 17, 2003 by U.S. Bank, National Association ("U.S. Bank") in favor of the Trustee for the ' 2003A Bonds. Under the terms of the Credit Facility, up to $19,025,000 may be drawn to pay principal amounts of the 2003A Bonds, and up to $182,432 may ba drawn to pay up to 35 days' accrued interest on the 2003A Bonds at a maximum rate of 10°/a per annum. Available credit under the Credit Facility will be permanently and proportionately reduced , upon notice from the Trustee of redemption of less than all of the 2003A Bonds. ~ D26 ' ~ Tovvn off Vaul, Co9oPaclo Notes to tFue FunancBaG State'vuenRs Decembep 31, 2007 ~ (coneBnaaes9) ~ V!!. De4a¢led NoQes oeo aVV Faooads (contanases9) J. CPed'ot FacuBBgy aovdl 92efimbursemen4 Agreeanent -Timber fftadge Affordable Housing Corpoaatuoov (conaunued) ~ The Credit Facility expires at the earlier of: a. July 17, 2008, although it automatically renews for successive one-year terms ~ (unless U.S. Bank notifies the Trustee that the Credit Facility has not been renewed); b. 15 days following notice by U.S. Bank requiring payment of all outstanding 2003A Bonds due to Default; ~ c. The date of acceleration or redemption of all 2003A Bonds; d. The second business day after conversion of the 2003A Bonds to a Fixed Mode interest rate; or ~ e. The date of surrender of the Credit Facility for cancellation, as required by the Indenture. Concurrent with the Credit Facility, the Corporation executed a Reimbursement ~ Agreement and a Demand Note in favor of U.S. Bank, evidencing the Corporation's obligation to repay all advances under the Credit Facility, together with interest on all such draws. All amounts drawn on or charged against the Credit Facility bear interest at ~ the Bank Rate, which is equal to U.S. Bank's Prime Rate plus 200 Basis Points. The Credit Facility automatically renews each year, subject to the Corporation's compliance with requirements as to operational performance of the Corporation, provision of certain records to the Trustee, and payment of all fees (including annual stand-by fees equal to ~ 125 Basis Points calculated on the original credit commitment, plus U.S. Bank's standard fees and charges for processing draws on the Credit Facility). ~ Pursuant to this arrangement, the Corporation incurred financing fees during 2007 totaling $243,427 ($243,427 for 2006) for U.S. Bank in respect of stand-by fees for the Credit Facility. During 2003, U.S. Bank was paid a one-time origination fee of $192,074 from the proceeds on issuance of the 2003A Bonds, which has been capitalized as Bond ~ Issue Costs. During 2007, the Corporation drew and repaid $1,022,570 ($970,280 for 2006) of ~ advances on the Credit Facility. At December 31, 2007 and 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. ~ D27 Town of Vail, Colorado ' Notes to the Financial Statements December 31, 2007 (Continued) ' IV. Detailed Notes on all Funds (continued) ~ J. Credit Facility and Reimbursement Agreement _ Timber Ridge Affc?rdable Housing Corporation (continued) As required by the Reimbursement Agreement and for as long as the C:redit 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 describedl. 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 plans under Internal Revenue Code section 401(a), and may amend all of the plan provisions. The first plan covers all full time and qualified seasonal em,ployees 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 ci~mpensation 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 contribiations 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 us 100°/a. 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 -fown contributes 1.5%. Seasonal employees are 100% vested after their first contribution. Employees covered under the regular and seasonal pension plans do riot participate in ~ the Social Security system. ' , D28 , ~ TOwO'? O$ Va90, COoOPadO Notes 4o ghe FBnancaaB Statements DecembeP 39, 2007 a (cmntanued) ~ V. OtheP BP9fOPP@'0at90PV QC060gOPll4BeSBD A. Pensuooa PVans (cooatuna~ed) ~ The annual pension cost is the Town's contributions less forfeitures from the prior year. The plans' invested assets at December 31, 2007 of $41,126,867 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 participanYs 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 2007 covered payroll was $14,928,915 of which $11,903,309 was for permanent employees and $3,025,606 was for seasonal staff. Total 2007 payroll for all Town employees was $14,520,507. ~ B. RegaPeavuent SaeAngs P9an - Deferre¢9 Compeeasatoosn PBan - VRC 457 ~ The Town offers its employees a deferred compensation plan (the "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 $6,361,956 at December 31, 2007. The assets were invested in mutual funds, as previously described. Pursuant to the Town's adoption of GASB Statement iVo. 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. C. CafegePUa Maov The Town offers a cafeteria compensation plan organized under section 125 of the Internal Revenue Code, which includes dependent care and health expense ~ reimbursement. No cost to the Town is recognized as the plan is a salary reduction plan. ~ D29 Town of Vail, Colorado , Notes to the Financial Statements December 31, 2007 (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 claiims and other assertions against it from various agencies and individuals. MEinagement 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, 2007. 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, 2007. 3. Mold Remediation - Timber Ridge Affordable Housing Corporation t 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, 2007, all 198 units were renovated. For 2007, the Corporation incurred mold remediation costs totaling $10,182 ($412,483 for 2006). ~ F. 12ate 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 1:0 5.5% per annum through May 1, 2008. SMBC was paid a$70,000 fee in 2006 for this sisrvice, which has ' been capitalized as Bond Issue Costs. During 2007, the Corporation was reimbursed a total of $42 (2006 -$93,181) 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 through August 1, 2006 and 5.5% thereafter. , D30 , Tow¢a of !lau9, Ca9orado Notes Qo Q9ve Faoaancaa9 Statements December 31, 2007 ~ (Contranaoed) ~ V. Other Vnfformatuon (con4ana~ed) G. ReVatedl Party Tpansacauons - Va8l Loca9 ~/1iarketang Dastroc4 ~ The District has executed a Coordination Agreement with Vail Valley Partnership ("WP") under which WP provides some marketing coordination services to the District in return for a fixed fee. The District paid WP $66,250 for its services in 2007. The Coordination ~ Agreement also requires the District to pay a fixed fee to the Town, for accounting services and marketing coordination provided by the Town. Fees totaling $18,000 for accounting services and $48,750 for marketing coordination were incurred by the District during 2007 from the Town. ~ H. Co¢adlaaat Debt - Town of !!ai@, Cooorado Multifamily Housing Revenase Bonc9s (IVIidd9e ~ Creek VuVlage AparQments Projecg), SerOes 2003A, 2003B 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. ~ V. RestateavuenQ Gobepnmeng-wude Net Assets ~ As discussed in iVote IV.C., the Town implemented the infrastructure reporting requirements of GASB-34 in 2007. This resulted in the addition of fully depreciated capital assets with an aggregate historical cost of $54,016,471. No restatement of beginning government-wride net assets for governmental activities was required by ~ this change. The Town increased both net capital assets and beginning government-wide net assets ~ for governmental activities by $3,555,400 to reflect the inclusion of certain items previously omitted from the Town's capital asset listing. ~ ~ ~ ~ ~ ~ D31 ~ ~ ~ O ~ a ~ REQU112ED SUPPLEfNiEN7ARV INFORiNiAYION J ~ ~ ~ a 0 a 0 a 0 a 0 4 0 ~ Town of bail, Colorado General Fund Schedule of Revenues, EupendiQures Changes in Fund Balances a Budget (G.4AP Basis) and 6,ctual For the Vear Ended December 31, 2007 bUi4h Compara4ive Tofals For the Year Ended December 39, 2006 ~ 2007 aoos Final Budget ~ bariance Original Final Positive Budge4 Budge4 Ac4ual (Wegative) Ac4ual Revenues: ~ Tattes: General sales taxes 10,741,500 10,741,500 10,741,500 9,345,660 Property and ownership taxes 3,007,998 3,007,998 3,012,030 4,032 2,931,347 Ski area lift ticket admissions tax 2,890,000 2,890,000 3,039,619 149,619 2,975,098 ~ Franchise tax 790,000 790,000 858,285 68,285 862,220 Penalties and interest on delinquent taxes 17,000 17,000 19,349 2,349 22,108 7o4a1-Tattes 17,446,498 17,446,498 17,670,783 224,285 16,136,432 PermiYs and Licenses: ~ Construction fees 1,809,750 4,415,750 4,992,752 577,002 3,481,989 Contractors' licenses 30,000 30,000 34,398 4,398 30,993 Other permits and licenses 43,800 43,800 55,867 12,067 48,774 Total - Permits and Licenses 1,883,550 4,489,550 5,083,017 593,467 3,561,757 In4ergovernmen4al: ~ County sales tax 547,200 547,200 603,364 56,164 570,445 County road and bridge 450,000 450,000 497,974 47,974 488,095 Additional motor vehicle registration fees 26,000 26,000 25,578 (422) 25,673 Cigarette tax 75,000 75,000 81,781 6,781 80,738 ~ Highway userstax 175,000 175,000 191,042 16,042 202,188 State health inspection 10,000 10,000 18,822 8,822 11,748 Other state sources - - 30,936 30,936 400 Federalsources - 62,550 59,542 (3,008) 97,983 ~ Total - In4ergovernmental 1,283,200 1,345,750 1,509,039 163,289 1,477,270 Charges for Services: Management fees - Vaii Local Marketing District 16,900 65,650 66,750 1,100 22,172 ~ Internal service charge 473,704 355,956 318,297 (37,659) 356,841 Out of district fire response 29,727 59,634 57,393 (2,241) 40,535 Alarm monitoring fees 50,000 50,000 36,953 (13,047) 49,188 Parking 3,600,380 4,302,380 4,514,392 212,012 4,007,334 ~ Fines and forfeitures 201,500 201,500 347,090 145,590 286,197 Rents 754,907 737,219 897,958 160,739 827,280 Other charges, services, and sales 267,526 282,926 357,755 74,829 291,027 Total - Charges for Services 5,394,644 6,055,265 6,596,588 541,323 5,880,574 Other Revenues: Earnings on investments 425,000 795,000 984,040 189,040 820,136 Other 70,000 118,288 195,016 76,728 501,699 Total - Other Revenues 495,000 913,288 1,179,056 265,768 1,321,835 ~ Total Revenues 26,502,892 30,250,351 32,038,483 1,788,132 28,377,868 ~ ~ a ~ The accompanying notes are an integral part of these financial statements E1 ' Town of Vail, Colorado General Fund ' Schedule of Revenues, Expenditures Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2007 With Comparative Totals For the Year Ended December 31, 2006 ' (Continued) 2007 2006 , Final Budget Variance Original Final Positive Budget Budget Actual Ne ativeL Actual ' Expenditures: General Government: Town officials 1,277,040 1,237,647 1,245,517 (7,870) 1,171,124 Administrative 3,291,120 3,286,006 3,155,193 130,813 2,944,160 t Community development 2,151,983 3,458,281 3,329,590 128,691 2,481,703 Total - General Government 6,720,143 7,981,934 7,730,300 251;634 6,596,987 Public Safety: - Police department 4,977,319 5,042,386 4,799,831 242,555 4,451,637 ' Fire department 2,208,498 2,289,404 2,305,073 (15,669) 2,083,075 Total - Public Safety 7,185,817 7,331,790 7,104,904 226,886 . 6,534,712 Public Works and Transportation: - Highways and streets 3,258,351 3,301,051 3,134,300 166,751 3,020,483 ' Transportation 3,382,497 3,422,161 3,390,419 31,742 3,176,855 Parking operations 805,544 855,958 795,353 60,605 705,679 Facility maintenance 3,040,584 3,063,854 3,045,019 18,835 2,722,637 Total - Public Works and Transportation 10,486,976 10,643,024 10,365,091 277,933 9,625,653 ' Culture and Recreation: - Contributions, marketing and special events 1,176,664 1,382,554 1,293,767 88,787 986,792 Special recreation facilities 199,348 199,348 168,224 31,124 196,854 Library 812,968 812,968 752,031 60,937 664,856 t Total = Culture and Recreation 2,188,980 2,394,870 2,214,022 180,848 1,848,501 Total Expenditures 26,581,916 28,351,618 27,414,317 937,301 24,605,853 Excess of Revenues t Over Expenditures (79,024) 1,898,733 4,624,166 2,725,433 3,772,015 Other Financing Sources (Uses): Transfers out - (222,500) (222,500) - (2,012,772) ' Total Other Financing Sources (Uses) - (222,500) (222,500) • (2,012,772) Net Change in Fund Balances (79,024) 1,676,233 4,401,666 2,725,433 1,759,243 Fund Balances - January 1 12,664,979 15,433,051 15,433,051 _ 13,673,808 ' Fund Balances - December 31 12,585,955 17,109,284 19,834,717 2,725,433 15,433,051 - ' ' ' 1 ' 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, Ettpendi4ures Changes in Fund Balances Budget (GA4P Basis) and Ac4ual For the Year Ended December 39, 2007 HNi4h Compara4ive 7o4als For 4he Year Ended December 31, 2006 ~ 2007 zoos Final Budgef ~ bariance Original Final Posi4ive Budge4 Budget Actual (fUega4ive) Ac4ual Revenues: ~ Tattes: Sales tax 6,308,500 7,658,500 8,308,506 650,006 8,641,136 Intergovernmental: County revenues - 500,000 - (500,000) - ~ CDOT grants - 24,000 - (24,000) - Federal grants 50,617 1,571 (49,046) 1,739,052 Total - Intergovernmental 574,617 1,571 (573,046) 1,739,052 Charges for Senrices: . Leases - Vail Commons 187,800 187,800 188,160 360 179,910 ~ Resale fees - - 10,788 10,788 14,295 Total - Charges for Services 187,800 187,800 198,948 11,148 194,205 04her: Earnings on investments 16,000 216,000 537,562 321,562 348,598 Construction Fees 313,592 313,592 85,000 Project reimbursements/shared costs 27,000 1,477,851 1,314,618 (163,233) 977,590 Other - 174,500 176,839 2,339 220,025 Total- O4her 43,000 1,868,351 2,342,611 474,260 1,631,214 a Total Revenues 6,539,300 10,289,268 10,851,636 562,368 12,205,607 Expenditures: ~ Public MVorks: Capital projects and acquisition 7,887,300 16,773,720 8,944,116 7,829,604 10,001,994 Ettcess (Deficiency) of Revenues OverEttpenditures (1,348,000) (6,484,452) 1,907,520 8,391,972 2,203,613 Other Financing Sources (Uses): Sale of assets - - 85,000 85,000 - a Transfersin 2,000,000 222,500 222,500 - 2,000,000 Transfers (out) (2,379,710) (2,322,497) (2,322,497) 2,236,200 Total Other Financing Sources (Uses) (379,710) (2,099,997) (2,014,997) 85,000 (236,200) ~ RIe4 Change in Fund Balances (1,727,710) (8,584,449) (107,477) 8,476,972 1,967,413 Fund Balances - January 9 3,151,373 12,216,605 12,216,605 10,249,192 Fund Balances - December 31 1,423,663 3,632,156 12,109,128 8,476,972 12,216,605 ~ a a 0 The accompanying notes are an integral part of these financial statements E3 ~ ' Town of Vail, Colorado . Special Revenue Funds , , Real Estate Transfer Tax Fund Schedule of Revenues, Expenditures Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2007 1 , With Comparative Totals For the Year Ended December 31, 2006 2007 2006 ' Final Buciget Variance Original Final Positive Budget Budget Actual Ne ati~Le)_ Actual , Revenues: Taxes: Real estate transfertax 8,179,952 5,825,000 6,536,118 711,118 6,239,744 Intergovernmental Revenue: - ' Lottery revenue 20,000 20,000 24,451 4,451 26,580 Total - Intergovernmentat Revenue 20,000 20,000 24,451 4,451 26,580 Charges for Services: ' - Recreation amenities fee 125,000 981,000 1,164,574 183„574 117,502 ' Land lease to Vail Recreation District 123,018 123,018 116,472 (6„546) 113,622 Total - Charges for Services 248,018 1,104,018 1,281,046 177,()28 231,123 Other: - Project reimbursements 150,000 385,000 246,073 (138,927) 102,060 , Earnings on investments 57,000 232,300 507,277 274,977 422,011 Other - 314,765 227,651 _(87,114) 5,710 Total - Other 207,000 932,065 981,001 48,936 529,782 Total Revenues 8,654,970 7,881,083 8,822,616 941,533 7,027,229 , Expenditures: Culture and Recreation: ' Project management 408,998 291,250 253,591 37,659 296,291 Park maintenance 1,260,802 1,260,802 1,085,479 175,323 1,075,523 Art in public places 66,000 76,746 77,111 (365) 59,748 Capital projects 5,255,380 9,037,048 4,593,551 4,443,497 4,115,595 , Total,Expenditures 6,991,180 10,665,846 6,009,732 4,656,114 5,547,157 Excess (Deficiency) of Revenues Over Expenditures 1,663,790 (2,784,763) 2,812,884 5,597,647 1,480,071 Other Financing Sources (Uses): ' Transfers in - - - - 12,772 Total Other Financing Sources (Uses) - - - - 12,772 Net Change in Fund Balances 1,663,790 (2,784,763) 2,812,884 5,597,647 1,492,844 ' Fund Balances - January 1 4,444,006 8,956,389 8,956,389 - 7,463,545 FundBalances-December31 6,107,796 6,171,626 11,769,273 5,597,647 8,956,389 , 1 1 ' ' The accompanying notes are an integral part of these financial statements ' E4 a Town of bail, Colorado Special Revenue Funds Conference Center Fund " ~ Schedule of Revenues, EttpendiYures Changes in Fund Balances Budget (GlAAP Basis) and Actual For 4he Year Ended December 31, 2007 bNi4h Comparative Totals For the Year Ended December 31, 2006 ~ 2007 2006 Final Budge4 Original and bariance ~ Final Positive Budget Actual (Negative) Actual Revenues: Earnings on investments 300,000 424,382 124,382 384,024 a To4al Revenues 300,000 424,382 124,382 384,024 Expenditures: ~ Economic Development To4al Expenditures fUe4 Change in Fund Balances 300,000 424,382 124,382 384,024 a Fund Balances - January 9 8,512,877 8,621,901 - 8,237,877 Fund Balances - December 39 8,812,877 9,046,283 124,382 8,621,901 ~ ~ a. a D 0 0 ~ ~ The accom an in notes are an inte raI p Y g g part of these financial statements ES a , , Town of Vail, Colorado Special Revenue Funds ' Vail Marketing Fund Schedule of Revenues, Expenditures Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2007 ' With Comparative Totals For the Year Ended December 31, 2006 2007 2006 Final Budget Original and Variance Final Positive Budget Actual (Negative) Actual_ ' Revenues: Permits and Licenses: Business licenses 304,000 305,414 1,414 301,861 Other: - ' Earnings on investments - 5,888 5,888 3,538 Total Revenues 304,000 311,302 7,302 305,399 Expenditures: ' Economic Development: Commission on Special Events 280,000 280,000 - 280,000 Administration fee 15,200 15,200 - 15,093 t Total Expenditures 295,200 295,200 - 295,093 Excess (Deficiency) of Revenues Over Expenditures 8,800 16,102 7,302 10,306 ' Fund Balances - January 1 45,011 46,517 - 36,211 Fund Balances - December 31 53,811 62,619 7,302 46,517 ' , ' ' ' 1 ' ' . ' The accompanying notes are an integral part of these financial statements t E6 ~ Town of Vail, Colorado Special 63evenue Funds Vail Local AAarEce4ing Distric4 Schedule of Revenues, Eupendi4ures Changes in Fund Balances ~ Budget (GAAP Basis) and Actual For 4he Year Ended December 39, 2007 1Rlith Comparative 7otals For the Year Ended December 39, 2006 ~ 2007 2006 ~ Final Budget bariance Original Final Positive Budget Budge4 Actual (PJega4ive) Actual ~ Revenues: Tattes: Lodging tax 1,690,000 1,690,000 2,063,915 373,915 1,917,259 Other: ~ Earnings on investments - - 11,053 11,053 8,246 Miscellaneous 3,837 3,837 Total - Other 14,890 14,890 8,246 Total Revenues 1,690,000 1,690,000 2,078,805 388,805 1,925,505 ~ Ettpenditures: Economic Development: Destination 138,000 148,000 158,790 (10,790) - ~ Front Range 382,000 484,500 507,246 (22,746) 358,246 Groups and meetings 267,000 282,000 281,433 567 308,105 Marketing 364,000 379,000 340,209 38,791 494,579 Purchased services 502,000 604,500 573,184 31,316 535,677 ~ Total Expenditures 1,653,000 1,898,000 1,860,862 37,138 1,696,607 Excess (Deficiency) of Revenues Over Expenditures 37,000 (208,000) 217,943 425,943 228,898 ~ Other Financing Sources (Uses): Repayment of debt (37,000) (37,000) (37,000) (100,000) Total 04herFinancing Sources(Uses) (37,000) (37,000) (37,000) - (100,000) a Rlet Change in Fund Balances - (245,000) 180,943 425,943 128,898 Fund Balances - January 1 567,813 825,793 825,793 - 696,895 ~ Fund Balances - December 31 567,813 580,793 1,006,736 425,943 825,793 a a 0 a ~ The accompanying notes are an integral part of these financial statements E7 ~ ' Town of Vail, Colorado Special Revenue Funds ' Vail Reinvestment Authority Scheduie of Revenues, Expenditures Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2007 With Comparative Totals For the Year Ended December 31, 2006 ~ 2007 2006 Variance ~ Original Final Positive Budget Budget Actual Ne ative) Actual. Revenues: Other: ~ Property Tax - 336,000 337,502 1,502 Earnings on investments - - 8,157 8,157 434 Shared costs/project reimbursements 15,750 21,000 14,567 (6,433) 4,685 Total Revenues 15,750 357,000 360,226 3,226 5,118 ' Expenditures: Economic Development: Administration 750 7,720 - 7,720 - ' Treasurer's Fees - 10,080 10,124 (44) - Professionalfees 24,250 64,200 37,829 26,371 4,489 Total Expenditures 25,000 82,000 47,953 34,047 4,489 Excess of Revenues Over Expenditures (9,250) 275,000 312,273 37,273 629 , Fund Balances - January 1 22,453 1,832 1,832 = 1,203 ' Fund Balances - December 31 13,203 276,832 314,105 37,273 1,832 ' ' ' ' ' ' ~ t. The accompanying notes are an integral part of these financial statements E8 , ~ ~ ' . ~ ~ ~ ~ SUPPLEMENTARY INFORMA1'10N ~ ~ a a ~ 0 ~ ~ 0 ~ ~ ~ ~ Town of bail, Colorado Debt Service Fund Schedule of Revenues, Expendi4ures Changes in Fund Balances ~ For the Year Ended December 31, 2007 NVith Comparative 7otals For the Year Ended December 31, 2006 ~ Original and 2007 bariance 2006 Final PosiYive ~ Budget Ac4ual (iVega4ive) AcYual Revenues: O4her: Earnings on investments - 3,955 3,955 25,757 ~ Total Revenues - 3,955 3,955 25,757 Expenditures: Deb4 Service: Principal 1,810,000 1,810,000 - 1,755,000 ~ Interest 512,099 512,098 1 562,323 Fiscal agent fees 2,500 900 1,600 900 Total Expenditures 2,324,599 2,322,998 1,601 2,318,223 ~ (Deficiency) of Revenues Over Expendi4ures (2,324,599) (2,319,043) 5,556 (2,292,466) Other Financing Sources: ~ Transfers in 2,322,497 2,322,497 - 2,236,200 IVe4 Change in Fund Balances (2,102) 3,454 5,556 (56,266) a Fund Balances - January 9 221,898 249,256 27,358 305,522 Fund Balances - December 31 219,796 252,710 32,914 249,256 ~ ~ ~ a 0 0 0 a a The accompanying notes are an integral part of these financiai statements F1 ~ ' Town of Vail, Colorado , Enterprise Fund 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, 2007 With Comparative Totals For the Year Ended December 31, 2006 ' 2007 2006 ' Variance Original Final Positive Budget Budget Actual _(Negative) Actual Operating Revenues: t Rent 2,606,800 2,604,820 2,633,552 28,732 2,101,476 Laundry room lease 32,360 32,200 29,070 (3,130) 21,278 Other 12,300 2,315 3,464 1,149 5,466 Total Operating Revenues 2,651,460 2,639,335 2,666,086 _ 26,751 2,128,220 ' Operating Expenses: Advertising 1,200 1,995 2,378 (383) 2.704 Office expenses 8;280 10,200 11,205 (1,005) 11,469 ' Management fee 87,000 87,000 87,000 - 75,000 Telecommunications 5,400 8,850 7,870 980 9,199 Wages - Administrative 80,055 52,500 51,872 628 86,918 Wages - Maintenance and other 132,268 138,700 136,675 2,025 101,107 Repairs and maintenance 25,210 125,230 119,290 5,940 41,031 ' Electric 19,600 29,600 25,474 4,126 23,594 Water and sewer 96,600 106,000 105,805 195 83,624 Trash removal 18,300 17,300 17,281 19 17,207 Snow removal 20,175 12,700 12,434 266 28,657 , Fire, life, safety, and security 3,650 8,900 8,689 211 705 Property insurance 132,552 146,229 145,905 324 96,393 Professional fees 6,100 6,250 6,100 150 5,950 Bad debtexpense - - 1,329 (1,329) 4,094 ' Miscellaneous 4,820 13,320 3,196 10,124 3,705 Mold remediation - 13,470 10,182 3,288 412,483 Capital maintenance repairs - 240,000 195,581 44,419 - Depreciation 525,444 525,444 525,446 - (2) 525,446 , Total Operating Expenses 1,166,654 1,543,688 1,473,712 69,976 1,529,286 Operating Income (Loss) 1,484,806 1,095.647 1,192,374 _ 96,727 598,934 Plon-operating Revenues(Expenses): ' Earnings on investments 4,320 25,580 25,972 392 15,212 Interest expense reimbursement - Rate cap agreement - - 42 42 98,181 Interestexpense (1,148,173) (1,133,266) (1,118,931) 14,335 (1,094,633) Financingfees (272,811) (273,083) (273,263) (180) (273,263) ' Amortization of bond issue costs (75,924) (75,924) (75,922) 2 (78.004) Total Non-operating Revenue (Expenses) (1,492,588) (1,456,693) (1,442,102) _ 14,591 (1,332,507) Change in Net Assets (7,782) (361,046) (249,728) _ 111,318 (733,573) ' , 1 ' ' U The accompanying notes are an integral part of these financial statements F2 ' ~ Towrn of Nail, Colorado En4erprise Fund Dispa4ch Services Fund ~ Schedule of Revenues, Expenses, Transfers and Change in Fund Ne4 Assets Budget (Won-GAAP Basis) and Ac4ua1 wi4h Reconcilia4ion to GAAAP Basis For 4he Vear Ended December 31, 2007 NUith Comparative Yotals For the Year Ended December 39, 2006 a ~ 2007 soos Final Budget Variance ~ Original Final Positive OperaYing Revenues: Budget Budget Actual (Rlegative) ~ Actual Charges and Fees: Dispatch service fee 512,427 512,427 512,427 525,994 a Dispatching contracts 901,858 901,858 942,204 40,346 863,644 Other charges 86,135 92,135 6,000 27,766 Total Operating Revenues 1,414,285 1,500,420 1,546,766 46,346 1,417,404 ~ Opera4ing Ettpenses: Public Safety: Salaries and benefits 1,470,322 1,470,322 1,399,038 71,284 1,289,334 Operating expenses 475,119 489,254 397,630 91,624 365,966 ~ Capital outlay 50,000 122,000 - 122,000 15,391 Total Operating Expenses 1,995,441 2,081,576 1,796,668 284,908 1,670,691 Operating (Loss) - Budget Basis (581,156) (581,156) (249,902) 331,254 (253,287) ~ Non-operating Revenues: Operating grant - Intergovernmental - 24,092 Operating grant - E-911 Board 563,654 563,654 586,404 22,750 473,939 ~ Earnings on investments - - 38,678 38,678 29,320 Total R1on-operating Revenues 563,654 563,654 625,082 61,428 527,351 Change in Net Assets - Budget Basis (17,502) (17,502) 375,180 392,682 274,064 ~ ReconciliaYion to GPAP Basis: Adjustmen4s: Contribution from External Sources 33,000 _ ~ Contribution from Capital Projects Fund 77,860 18,571 Change in compensated absences (5,207) 8,221 Depreciation (226,388) (220,431) Capitatized assets 15,391 Total Adjus4ments (120,735) (178,248) a Change in Riet Assets - GAAP Basis 254,445 95,816 ~ ~ a ~ a 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 8udget (Non-GAAP Basis) and Actual with Reconciliation to GAAP Basis For the Year Ended December 31, 2007 With Comparative Totals For the Year Ended December 31, 2006 ' 2007 2006 ' Fina17B udget Variance Original Final P'ositive , Budget Budget Actual Ne ative Actual Operating Revenues: Charges and Fees: Operating charges 1,946,418 1,946,418 1,847,451 (98,967) 1,817,785 ' Replacement charges 631,723 631,723 645,958 14,235 595,996 Total - Charges and Fees 2,578,141 2,578,141 2,493,409 _ 84,732 2,413,781 Other: Insurance reimbursements 16,000 16,000 27,294 11,294 41,241 ' Other 21,900 21,900 41,761 19,861 17,966 Total - Other 37.900 37,900 69,055 31,155 59,207 Total Operating Revenues 2,616,041 2,616,041 2,562,464 53,577 2,472,988 ' Operating Expenses: Public Works: Vehicle maintenance and fuel 1,914,204 1,939,204 1,894,184 45,020 1,877,233 t Capital outlay 671,300 671,300 534,112 137,188 281,436 Total Operating Expenses 2,585,504 2,610,504 2,428,296 182,208 2,158,669 Operating Income (Loss) - Budget Basis 30,537 5,537 134,168 128,631 314,319 Non-operating Revenues: ' Earnings on investments 8,000 8,000 66,476 58,476 49,500 Proceeds from sale of assets 49,330 149,916 148,760 (1,156 20,287 Total Non-operating Revenues: 57,330 157,916 215,236 57,320 69,787 , Change in Net Assets - Budget Basis 87,867 163,453 349,404 185,951 384,106 Reconciliation to GAAP Basis: t Adjustments: Contribution from Capital Projects Fund 57,489 - Net book value of disposed assets (49,728) (2,854) ' Depreciation (547, 745) (530, 340) Change in accrued compensated absences (2,229) (21094) Capitalized assets 534,112 281,436 Total Adjustments (8,101) (253,852) ' Change in Net Assets - GAAP Basis 341,303 130,254 ' ' , ' The accompanying notes are an integral part of these financial statements F4 ' ~ Towrn of bail, Colorado Interra! Service Funds Health Insurance Fund ~ Schedule of Revenues, Ettpenses, and Change in Fund fVe4 Assets BudgeQ (GAAP Basis) and Actual For the Year Ended December 39, 2007 With Comparative Totals For the Vear Ended December 31, 2006 a ~ 2007 aoos Final Budget Variance• Original Final Posi4ive ~ Budget Budge4 Ac4ual (fdegative) Ac4ual Operating Revenues: Charges and Fees: Insurance premiums 2,242,900 2,242,900 2,418,000 175,100 1,856,000 ~ Insurance premiums - Employee contributions 241,600 252,200 270,665 18,465 226,805 Insurerproceeds 5,000 352,000 360,839 8,839 368,723 Total Operating Revenues 2,489,500 2,847,100 3,049,504 202,404 2,451,528 a Operating Ettpenses: General Governmen4: Health claims 2,143,800 2,972,000 2,814,181 157,819 2,030,357 Premiums 299,400 299,400 267,075 32,325 296,956 ~ Administrative fees 17,500 17,500 17,500 - 17,500 Short-term disability payments 56,000 40,000 14,627 25,373 53,727 Total Operating Eupenses 2,516,700 3,328,900 3,113,383 215,517 2,398,540 Operating Income (Loss) (27,200) (481,800) (63,879) 417,921 52,988 a fNon-operating Revenues: Earnings on investments 27,200 33,500 44,723 11,223 50,431 ~ Change in Rlet Assets - GAAP Basis - (448,300) (19,156) 429,144 103,419 a 0 0 0 0 0 ~ a 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, 2007 ' Neavy Health Equipment Insurance Assets: Fund Fund Total ' Current Assets: Equity in pooled cash and investments 1,494,272 1,340,441 2,334,713 Accounts receivable, net of allowance for uncollectibles 20,599 - 20,599 , Inventory 293,284 - 293,284 Prepaid expenses - 17,176 17,176 Total Current Assets 1,808,155 1,357,617 3,165,772 Non-current Assets: ' Property, plant, and equipment, net of accumulated depreciation 2,950,509 - 2,950,509 Total Assets 4,758,664 1,357,617 6,116,281 ' Liabilities: Current Liabilities: , Accounts payable 59,467 367,499 426,966 Accrued salaries and wages 18,091 - 18,091 Current portion of compensated absences 20,433 - 20,433 Total Current Liabilities 97,991 367,499 465,490 ' Non-current Liabilities: Compensated absences, net of current portion 30,650 - 30,650 Total Liabilities 128,641 367,499 496,140 Net Assets: , Invested in capital assets, net of related debt 2,950,509 - 2,950,509 Unrestricted 1,679,514 990,118 2,669,632 Total NetAssets 4,630,023 990,118 5,620,141 , , ' , , ' , , The accompanying notes are an integral part of these financial statements F6 ' ~ Town of bail, Colorado Inf?rn21 Sprvice Funds Combining Sta4ement of Revenues, Ezpenses and Changes in Fund Net Assets ~ For the Year Ended December 31, 2007 Heavy Health ~ Equipmen4 Insurance Pund Fund To4al Opera4ing Revenues: Charges for services - Internal 2,493,409 2,418,000 4,911,409 ~ Charges for services - External - 270,665 270,665 Insurance reimbursements 27,294 360,839 388,133 Other 41,761 41,761 Total Opera4ing Revenues 2,562,464 3,049,504 5,611,968 ~ Opera4ing Eupenses: Operations 1,896,413 1,896,413 Health claims and premiums - 3,113,383 3,113,383 ~ Depreciation 547,745 - 547,745 Total Operating Ezpenses 2,444,158 3,113,383 5,557,541 Operating Income (Loss) 118,306 (63,879) 54,427 ~ Pfon-opera4ing Revenues (Eupenses): Gain (loss) on disposal of assets 99,032 99,032 Investment income 66,476 44,723 111,199 To4at Won-operating Revenues (Expenses) 165,508 44,723 210,231 ~ Income (Loss) Before Transfers and Capital Contributions 283,814 (19,156) 264,658 a Capital Contribu4ions, R1et 57,489 - 57,489 Change in IVet Assets 341,303 (19,156) 322,147 ~ ftlet Assets - January 1 4,288,720 1,009,274 5,297,994 Net Assets - December 31 4,630,023 990,118 5,620,141 ~ • ~ a ~ 0 . 0 fi-ki 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, 2007 Heavy Health , Equipment Insurance Cash Flows From Operating Activities: Fund Fund Totat - Cash received from other funds 2,493,409 2,418,000 4,911,409 ' Other cash receipts 90,457 952,000 1,042,457 Cash paid for goods and services (1,119,507) (3,062,527) (4,182,034) Cash paid to employees (778,724) (15,332) 794,056 Net Cash Provided by Operating Activities 685,635 292,141 _ 977,776 , Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets 148,760 - 148,760 Acquisition and construction of capital assets (534,112) - 534,112 t Net Cash (Used) by Capital and Related Financing Activities (385,352) - 385,352 Cash Flows From Investing Activities: ' Earnings on investments 66,476 44,723 111,199 Net Cash Provided by Investing Activities 66,476 44,723 111,199 Net Increase in Cash and Cash Equivalents 366,759 336,864 703,623 ' Cash and Cash Equivalents - Beginning 1,127,513 1,003,577 2,131,090 Cash and Cash Equivalents - Ending 1,494,272 1,340,441 2,834,713 . , Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities: Operating income (loss) 118,306 (63,879) 54,427 , Adjustments: Depreciation 547,745 - 547,745 ' (Increase) decrease in accounts receivable 21,401 320,496 341,897 (Increase) decrease in inventory (30,167) - (30,167) (Increase) decrease in prepaid expenses - (17,176) (17,176) Increase (decrease) in accounts payable 23,542 53,405 76,947 , Increase (decrease) in accrued wages and benefits 4,808 (705) 4,103 Total Adjustments 567,329 356,020 923,349 Net Cash Provided by Operating Activities 685,635 292,141 977,776 , Schedule of Non-cash Investing, Capital and Financing Activities: Assets donated by Capital Projects Fund 57,489 - 57,489 ' , ' ' , 7he accompanying notes are an integral part of these financial statements F8 , ~ Touvn of bail, Colorado Special Revenue Funds Capi4al Projects Fund ~ Schedule of Project EttpendiQures - Budget (GAAAP Basis) and Ac4ual For the Year Ended December 31, 2007 With Compara4ive Yotals For the Year Ended December 31, 2006 a 2007 aoos bariance Projec4 Final Positive Rlumber Projec4 Rlame Budge4 AcYual (fVega4ive) Ac4ual ~ C61008 Building Remodels 50,000 57,986 (7,986) - CB1010 Fire infrastructure improvements 117,229 117,229 3,035 CBI021 Donovan Park Pavilion 29,634 ' - 29,634 - CBI022 Dobson Ice Arena 7,900 - 7,900 _ ~ CBI023 Gymnastics facility 23,612 - 23,612 6,388 CEP001 Fire Truck Purchase / Refurbish 589,352 598,568 (9,216) 238,648 CEP002 Heavy Duty Tire Changer 17,500 14,100 3,400 - CEP004 Replace buses 3,842,605 2,308 3,840,297 2,231,337 ~ CEP005 Software/hardware purchases 178,000 120,827 57,173 83,830 CEP006 800 MHz Radio Replacement 50,000 50,000 CEP008 Parking Entry System 425,348 422,363 2,985 _ CEP010 Network Upgrades 45,000 33,522 11,478 - ~ CEP011 Document imaging 97,000 132,335 (35,335) 18,219 CEP016 GPS system for buses 52,750 52,750 18,160 CEP018 Web page development 20,000 - 20,000 4,984 CEP019 CAD/RMS dispatch project 92,500 77,860 14,640 66,778 ~ CEP022 Video security forjaii 12,000 12,052 (52) - CEP023 Video cameras patrol cars 45,000 CEP025 Fire operations breathing apparatus - - 30,959 CEP030 Vehicle expansion 44,800 43,389 1,411 45,317 CEP031 Software Licensing - - - 59,384 CEP032 Police Radio AMP Parking 50,000 50,000 CEP033 Fire Suppression - Computer Room 35,500 - 35,500 - CEP034 Generator Replacement 75,000 - 75,000 - CHP006 Loan guarantee - Timber Ridge 925,000 - 925,000 - ~ CHP007 Timber Ridge Legal / Zoning 32,558 3,631 28,927 12,442 CHP008 Rational Nexus Study 1,999 1,999 16,501 CHP009 Vail Das Schone Unit A-12 - - - 295,545 CHP010 East Vail Lodging Unit 172,550 173,968 (1,418) - ~ CHP011 Vail Heights Unit (Chamonix Lane) 280,000 280,841 (841) _ CHP012 Pitkin Creek Unit 462,125 463,121 (996) CMP005 Bio Mass Study 50,000 - 50,000 - CMT003 Bus shelter replacement program 30,000 10,646 19,354 1,762 a CMT004 Capital street maintenance 857,482 816,810 40,672 1,578,531 CMT005 Facility capital 744,627 489,050 255,577 111,261 CMT007 Parking structure maintenance 481,129 339,423 141,706 636,746 CMT009 Flammable Storage / Mag Chloride 24,000 - 24,000 - a CMT010 Underground Utilities 105,000 57,217 47,783 - COT002 Street light improvement program 80,099 158,874 (78,775) 61,778 COT004 Fiber-optic connection 15,000 - 15,000 12,044 COT009 Lionshead improvements 113,764 81,522 32,242 86,627 D COT011 1-70 noise mitigation 837,575 8,293 829,282 4,634 COT013 TOV Strategic Planning 167,920 167,920 COT014 West Vail area plan 27,300 4,570 22,730 7,039 COT015 Strategic planning - 12,034 (12,034) 107,098 ~ C0T016 LH Parking Structure RFP 186,299 151,505 34,794 40,201 CPA003 Wendy's property - purchase 2,057,000 2,052,726 4,274 26,561 CSC010 Way-finding improvements 9,896 3,480 6,416 13,363 CSC011 West Meadow Drive 950,000 950,000 - 957,264 CSC012 Viliage Streetscape 1,276,667 286,698 989,969 2,215,559 ~ CSC013 E. Meadow Dr. Streetscape 1,030,000 1,030,000 - 965,000 CS1001 Manor Vail Development 1,647 (1,647) Timber Ridge Loan 200,000 Total Ettpenses - Budget Basis 16,773;720 8,944,116 7,829,604 10,201;994 ~ ReconciliaYion to GAAP Basis: Long term receivable from Timber Ridge: - (200,000) Total Ettpenses - GAAP Basis 8,944,116 10,001,994 ~ The accompanying notes are an integral part of these financial statements ~ F9 ' Town of Vail, Colorado Special Revenue Funds Reai Estate Transfer Tax Fund , Schedule of Project Expenditures - Budget (GAAP Basis) and Actual For the Year Ended December 31, 2007 With Comparative Totals For the Year Ended December 31, 2006 , 2007 2006 ' Variance Project Final ' Positive Number Project Name Budget Actual (Negative) Actual RCI001 Gore Creek Promenade - - 238,400 ' RFP005 Alpine Gardens contribution 54,080 56,275 (2,195) 50,000 RFP006 Ford Park Master Plan - Improvements 100,000 18,660 81,340 - RFP015 Vail Memorial Park - 50,000 ' RFP012 Ford Amphitheater Remodel 250,000 250,000 RMP001 VRD Agreements 52,444 3,215 49,229 57,556 RMT001 Recreation path maintenance 234,837 73,364 161,473 64,145 RMT002 Tree maintenance 104,796 48,865 55,931 54,855 ' RMT005 Street furniture - Streetscape 20,000 15,857 4,143 64,886 RMT006 Biack Gore Creek sand mitigation 184,000 100,000 84,000 65,000 RMT007 Bear-proof trash containers 199,500 196,922 2,578 - RMT009 Park capital maintenance 100,000 79,771 20,229 5,659 ~ RMT010 Stream tract mitigation 34,881 - 34,881 RMT011 Retrofit Park Restrooms 172,404 93,745 78,659 27,598 RMT012 Forest Health Management 385,325 215,917 169,408 206,863 RMT013 Environmental Sustainability 250,000 192,989 57,011 - RMT014 Turf Topdresser 12,000 10,555 1,445 RMT015 Greenhouse 100,000 - 100,000 RMT016 Ford Park / Tennis Center Improvements 56,000 39,200 16,800 - RPA001 Property acquisition 551,019 - 551,019 242,428 RPD001 Master Planning Process 104,500 24,957 79,543 ' RPD005 Donovan Park - Lower Bench 49,050 33,641 15,409 519 RPD006 Whitewater Park 376,000 327,675 48,325 25,132 RPD009 Lionshead Park 139,000 - 139,000 - RPD011 Skate park „ 400,000 170,290 229,710 - ' RPD013 Kayak Take-out 10,000 - 10,000 - RPI001 Playground Safety Improvements (Red S.) 58,000 7,206 50,794 - RP1002 Bighorn Improvements 216,756 227,512 (10,756) 123,241 RP1003 irrigation / Raw Water project 10,388 461 9,927 4,669 ~ RPT007 Trailhead signs/development 27,273 16,123 11,150 18,119 RPT014 Cascade bike path 7,000 23 6,977 213,553 RPT015 Katsos Ranch bike path 1,225,943 679,056 546,887 24,058 RPT017 Timber Ridge - Buffehr Creek Separation 675,000 21,300 653,700 - ' RPT016 Westhaven Pedestrian Bridge - - - 94,620 RRT001 PublicArt 360,909 168,108 192,801 102,505 RRT003 ADA compliance 126,848 25,999 100,849 43,152 RSS001 Village streetscape - - - 1,250,000 ' RSS002 Meadow Drive 720,000 720,000 - 1,042,027 RSS003 Seibert Circle 1,099,095 775,865 323,230 46,611 RSS004 Landscape Medians 570,000 - 570,000 - Total 9,037,048 4,593,551 4,443,497 _ 4,115,595 ' ' ' ~ The accompanying notes are an integral part of these financial statements F,0 ~ ~ ~ ~ a LOCAL HIGHlfilAY FINANCE FdEPORT ~ ~ ~ ~ ~ a ~ ~ ~ ~ ~ ~ a I inancial I'lanning 02 UI 1 hc iublie rc pon hurden li,r ihis intbnnatiun rollcttinn is otiwalcd (o ;n rragr 380 haurs annuallv. Fonn 7! 350-050-76 Ciry or County: Vail ~ L01'AL HIGHIVAY FlilAtiCE REPORT 1'EAR ENDING : December 3007 "fhis- Infonnation From 'Fhe Records Of (czample - Ciq- of _ or Counry uf Prepared By: Kathleen Halloran Phonr: 970-479-2 I I fi ~ L DISPOSITIOIV OF IiIGHii'.OY-USER REv'ENUES AVAILABLE FOR f.OCAL CON'ERNN1EtiT EkPENIDITURE A. .oca B. .uca C. Receipts rom D. Receipts rom ~ ITEM il1otor-Fucl Moror-Vehicle State Highway- Federal Highway Taxes Taxes Uscr Taxes Administration 1. Total recei ts available 2. Minus amount usrd for collection ex enses ~ i. \-linus amount used for nonhi hwa u oses d. Minus amount used for mass transit rmain cr use ur ig lWay purpuscs ~ 11. RECEIPTS F06i ROAD AND STREET PUI2POSES 111. DISBURSE11EiVTS FOR ROAD AND STREET PURPOSES I"fEM AYIOUyT ITEM AMOUNT A. Recei ts from local sources: A. Local hi hwa y disbursements: a I. Local hi ghwa -user ta.ees I. Ca ital outla from a*e 2) 3,420,043.09 a. htotor Fuel (from ttem 1..4.5.) 2. Maintenance: 2,064,717?8 b. i'vtotor Vehicle (from Item I.B.S.) 3. Road and street services: c. Total a.+b.) a. Traffic control o erations 253,936.63 ~ 2. General fund a roriations 5,267,713.95 b. Snow and ice removal 779,R~)9.5- 3. Other local im usts (from a e 2) 679,673 c. Other 4. Miscelianeous local recei ts (froiu age 2) 0 d. Total (a. throu h c.) 1,033,836.18 5. Transfers from toll facilities 4. General administration & miscellaneous 243,329.8=1 a G. Proceeds of sale of bonds and notes: 5. Hi hwa law enforcement and safet 994,636.56 a. Bonds - Uri inal Issues 6. Total I throu >h 5) 7,762,612.95 ~ b. Bonds - Refundine Issues B. Debt service on local obli ations: c. Notes I. Bonds a d. Total a. + b, + c.) 0 a. Interest ' 7. Total I throu h 6) 5,947,386.95 b. Redem tion B. Private Contributions I,598,606.00 c. Totai (a. + b.) C. Receipts from State government 2. Notes: ~ (from a e 2) 216,62Q.00 a. Interest i D. Receipts from Federal Government b. Redem tion (from a e 2) c. Totai a. + b.) ota receipts (A.7 + + + 7,762,612.9 ota ( .c + .c _ C. Pa menes to State for hi ghwa s ~ D. Pa ments to toll facilities ota ~s unemcnts : . , + . + . + _7.61 IV. LOCAL HIGHWAY DEBT STATUS ~ (Show all entries at ar) O enin Debt Amount Issued Redem tions Closimg Debt A. Bonds Total) 0 1. Bonds (Refundin Portion) ~ . OICti Otd ) V. LOCAL ROAD AND STREET FUND BALANCE ~ A. Be innin g Balance B. Total Recei ts C. Total Disbursements D. Endin Balance E. Reconciliation 7,762.612.95 7.762,612.95 0.00 \otes and Comments: ~ a FORM FHNVA-536 (Rcv. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) l ~ ~ ' s7q rF: Colorado LOGaL HIGIIWAYFINANCE REPORT 1'EAR ENDING (nun/yy); ' Dcccmbcr 2007 I1. RECEIPTS FOR ROAD AtiD STREET PURPOSES - DETAIL IT'ENi AM1tOUNT ITENI AMOUNT ' A.3. Other local im osts: A.4. Ylisccllancous local recei ts: a. ProertTaxes and .Assessnirnts a. Interest on investments b. Other local im osts: b. Traffic Fines & Penalities ' 1. Sales Taxes c. Parkin = Gara e Fees 2. Infrastructure K Im act Fees d. Parkin Meter Fees 3. I..iens e. Sale of Su lus Pro ertv =4. Licenses f. Charges for Services ' 5. S ecific Uwnershi &"or Other 679,673 J. Other Mise. Recei ts 6. Total (1. through 5.) 679,673 h. Other c. Total (a. + b.) 679,673 i. Total (a. throu >h h.) ~j 1('avry inrw-:ird to page I) - IC'arry Ioncard tu paEc I 1 , ITENI AMOUNT ITEM AMOUNT C. Rccci ts from Sts?te Covcrnment D. Recei ts from Fcderai Covernmcnt 1. Hi ghwav-usertaxes 191,042 L FHWA from Item I.D.S.) ' 2. State eneral funds ' 2. Other Federal agencies: 3. Other State funds: a. Forest Service a. State bond roceeds b. FEMA b. Proect Match c. HUD , c. Motor Vehicle Re 7istrations 25,578 d. Federal Transit .Admin d. Other (S ecif ) e. U.S. Co s of En ineers e. Other(S ecif ) E OtherFederal f. Totai a. throu h e.) 25,573 . Total (a. throu h E) p ' 4. Total ( I.+ 2. + 3.f) 216,620 3. Total I.+ 2.g) (Carry liincard to page I ) III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL , ON NA"f10NAL OFF NA'I'IONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM I (a) (b) (c) A.I. Ca ital outla : - J a. Ri *ht-Of-Wa Costs 0 b. En =ineerin Costs 199037 199,037 ~ c. Construction: ( I Nzw Facilities (3). Ca acit Im rooements (3). S stem Preservation (4). S stem Enhancemrnt & O eration 3,227,007 3,227,U07 ' 0 (5). Total Construction ( I)+(?) + (3) +(4) 0 3.227,007 3,'_27.Oq? d. Total Ca ital Ouda Lines I.a. + I.b. + Lc.S) 0 3,426,043 3,426,043 ' i(C.arrv loncard to pagc I tiotes and Comments: , . 1 FORNI FH11'A-536 (Rev.l-OS) PREVIOUS EDITIONS OBSOLETE 2 t ~ , ~ ~ ~ ~ ~ ~ ~ UNDE92T'AKIR1G 70 P920!lIDE CON71NUING DISCLOSURE ~ ~ ~ ~ ~ ~ GO a ~ ~ QM a a Tovun of bail, Colorado Issuer's Annual Report Upda4e of Official S4a4emen4 Tables to be Updated ~ Yables I, III, and IV December 31, 2007 ~ T,4BLE I Debt Service Coverage ~ 2003 2004 2005 2006 2007 Pledged Revenues 14,578,983 15,466,981 16,483,979 17,841,680 18,913,138 ~ Maximum Annual Debt Service 2,324,457 2,324,457 2,324,457 2,324,457 2,324,457 Coverage Factor 6.28x 6.65x 7.09x 7.68x 8.14x a T,ABLE III History of Town 4% Sales Tax Receipts ~ 2003 2004 2005 2006 2007 Sales Tax Collections (see Note below) 14,578,983 15,466,979 16,483,979 17,841,680 18,913,138 Per Cent Increase -3.49°/o 6.09% 6.58% 8.24% 6.01% ~ IVo4e: 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. a TABLE Ib ~ flAonthly Comparison of Collec4ions of Sales Tax 92-month Period Ended 12-month Period Ended December 31, 2006 December 31, 2007 Percent Chan e a Curren4 Year Current Year Current Year Month Month To Da4e AflonYh To Date Month To Da4e January 2.597,985 2,597,985 2,783,306 2,783,306 7.1°/a 7,1o/a February 2,527,130 5,125,115 2,718,643 5,501,949 7.6% 7.4% ~ March 2,852,954 7,978,069 2,986,446 8,488,395 4.7% 6.4% April 1,280,324 9,258,393 1,330,740 9,819,135 3.9% 6.1% May 449,283 9,707,676 545,874 10,365,009 21.5% 6.8% June 805,362 10,513,038 953,017 11,318,026 18.3% 7.7% 0 July 1,255,243 11,768,281 1,265,781 12,583,807 0.8% 6.9% August 1,055,614 12,823,895 1,162,746 13,746,553 10.1% 7.2% September 832,549 13,656,444 908,318 14,654,871 9.1% 7.3% October 614,396 14,270,840 688,519 15,343,390 12.1% 7.5% ~ November 799,582 15,070,422 747,877 16,091,267 -6.5% 6.8% December 2,771,258 17,841,680 2,821,871 18,913,138 1.8% 6.0% 0 ~ D , G1 ~ Town of Vail, Colorado Issuer's Annual Report Update of Official Statement of Tables to be Updated , Tables V and VI December 31, 2007 t TABLE V ' Sales Tax Collections by Principal Sales Tax Generators 2003 2004 2005 2006 2007 Annual Sales Tax Paid by ' Ten Principal Generators 4,828,717 4,996,562 5,401,230 5,886,609 6,123,462 Total Annual Sales Tax Collected by Town 14,578,983 15,466,979 16,483,979 17,E941,680 18,913,138 ' % of Total Annuai Sales Tax Collections Generated by Ten Principal Generators 33.1 % 32.3°/a 32.8% 33.0% 32.4% ' TABLE VI ' Capital Projects Fund: 2007 Actual / Projected 2008 - 2011 2007 2008 2009 2010 2011 Revenues: ' Sales tax 8,297,397 7,760,000 7,570,200 7,864,350 8,154,800 Federal grants 1,571 815,577 1,850,000 1,850,000 2,450,000 Lease revenue 188,160 187,800 188,550 192,300 192,300 Project reimbursment 1,314,618 - - - - ' Transfers in. 222,500 - - - - Earnings on investments and other 1,049,890 10,850 - - - Total Revenues 11,074,136 8,774,227 9,608,750 9,906,650 10,797,100 Expenditures: ' Land purchases 2,052,726 - - - - Equipment purchases 1,379,463 699,635 616,400 2,455,600 1,884,400 Maintenance 130,610 1,820,000 2,985,000 1,620,000 1,016,000 ' Buildings and improvements 897,105 400,000 870,000 8,080,000 4,159,000 Street projects 3,242,382 3,570,000 5,245,000 9,500,000 13,820,000 Housing programs 917,930 100,000 100,000 100,000 100,000 Other improvements 323,900 600,000 467,000 392,000 342,000 t Other Financing 85,000 - (2,000,000) (727,661) 316,598 Transfer to Debt Service Fund 2,322,497 2,321,825 2,320,363 2,317,803 2,323,004 Total Expenditures 11,351,613 9,511,460 10,603,763 23,737,742 23,961,002 Revenues Over(Under) ' Expenditures (277,477) (737,233). (995,013) (13,831,092) (13,163,902) Beginning Fund Balance 12,216,605 11,939,128 11,201,895 10,206,882 (3,624,210) Ending Fund Balance 11,939,128 11,201,895 10,206,882 (3,624,210) (16,788,112) ' ' ' G2 ' Town of bail, Colorado issuer's Annual Repor4 UpdaQeo of Official S4atemenQ Tables to be Upda4ed ~ Yable XI3C December, 39, 2007 ~ TABLE XIX History of General Fund Revenues, Ettpendi4ures and Changes in Fund Balance ~ 2003 2004 2005 2006 2007 a Revenues: General sales taxes 8,840,731 8,881,480 8,796,600 9,345,660 10,741,500 Property and ownership taxes 2,822,742 2,621,493 2,627,877 2,931,347 3,012,030 ~ Ski area lift ticket admissions tax 2,273,055 2,496,162 2,777;698 2,975,097 3,039,619 Franchisefees 592,876 676,538 842,529 862,220 858,285 Penalties and interest on delinquent taxes 27,635 23,111 22,014 22,108 19,348 ~ Licenses and permits 1,095,698 1,685,277 2,552,470 3,561,757 5,083,017 Intergovernmentalrevenues 1,518,855 1,435,982 1,401,068 1,477,270 1,509,040 Charges for services 3,561,050 4,092,973 4,588,403 4,767,097 5,351,540 Fines and forfeits 201,458 210,497 215,105 286,197 347,090 a Interest 113,270 172,806 428,851 820,136 984,040 Rents 616,411 803,939 780,214 827,280 697,958 Other 234,879 359,829 538,808 501,699 195,016 Total Revenues 21,898,660 23,460,087 25,571,637 28,377,868 32,038,483 ~ Ettpenditures: General government 4,866,266 5,065,363 5,549,232 6,596,987 7,730,300 Public safety 5,466,728 5,885,632 6,309,595 6,534,712 7,104,904 Public works and transportation 7,935,640 8,252,331 9,312,136 9,625,653 10,365,091 Economic development and community assistance 1,261,858 1,175,574 1,024,207 1,183,645 1,461,991 Municipallibrary 777,318 657,952 658,886 664,856 752,031 Total Expenditures 20,307,810 21,036,852 22,854,056 24,605,853 27,414,317 ~ Eucess of Revenues Over Ettpenditures 1,590,850 2,423,235 2,717,581 3,772,015 4,624,166 ~ 04her 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) (222,500) ~ 7otal Other Financing Sources (Uses) 1,850 (1,746,365) (97,387) (2,012,772) (222,500) Ezcess of Revenues Over Expenditures and Other ~ Financing Sources (Uses) 1,592,700 676,870 2,620,194 1,759,243 4,401,666 Fund Balance: Beginning 8,784,044 10,376,744 11,053,614 13,673,808 15,433,051 ~ Ending 10,376.744 11,053,614 13,673,808 15,433,051 19,834,717 ~ ~ ~ G3 O ~ Town of Vail, Colorado lssupr's Annu3! Rpport Update of Official Statement of Tables to be Updated , Tabies XX and XXI December 31, 2007 TABLE XX 1 General Fund 2007 Budget Summary and Actual Comparison I 2008 Budget ' 2007 Amended 2007 2008 Budget Actual Budget , Revenues: General sales taxes 10,741,500 10,741,500 11,640,000 Property and ownership taxes 3,007,998 3,012,030 3,843,500 Resort fees 2,890,000 3,039,619 3,123,852 , Franchise fees 807,000 877,633 826,110 Licenses and permits 4,489,550 5,083,017 2,353,950 Intergovernmental revenues 1,345,750 1,509,040 1,366,800 Charges for services 5,116,545 5,351,540 4,553,515 , Fines and forfeits 201,500 347,090 215,000 Interest 795,000 984,040 675,000 Rents and other 855,508 1,092,974 833,000 Total 30,250,351 32,038,483 29,430,727 Expenditures: ' Town officials 1,237,647 1,245,517 1,370,278 Administrative 3,286,006 3,155,193 3,339,290 Community development 3,458,281 3,329,590 3,367,055 ' Public safety - Police 4,529,959 4,287,404 4,696,544 Public safety - Fire 2,289,404 2,305,073 2,414,842 Public works 3,301,051 3,134,300 3,412,895 Transportation 8 Parking 4,278,119 4,185,772 4,405,166 ' Facility maintenance 3,263,202 3,213,243 3,380,924 Public library 812,968 752,031 839,062 Contributions and speciai events 1,382,554 1,293,767 1,572,483 Dispatch service charges 512,427 512,427 535,657 , Total 28,351,618 27,494,317 29,334,196 Revenue Over Expenditures 1,898,733 4,624,166 96,531 Other Financing Sources (Uses): ' Transfer(out) (222,500) (222,500) - Total Other Financing (Uses) (222,500) (222,500) - Excess of Revenues Over (Under) ' Expenditures and Other Financing (Uses) 1,676,233 4,401,666 96,531 Fund Balance - January 1 15,433,051 15,433,051 14,686,181 Fund Balance - December 31 17,109,284 19,834,717 . 14,782,712 ' TABLE XXI ' Outstanding Revenue Obligations Outstanding Issue Principal ' Tax-Exempt Sales Tax Revenue Refunding Bonds, Series 1998A 7,775,000 Sales Tax Revenue Refunding Bonds, Series 2002B 2,490,000 Housing Facilities Revenue Bonds, Series 2003A 19,025,000 Housing Facilities Revenue Bonds Subordinate, Series 2003B 1,040,000 ' Total 30,330,000 t G4 '