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HomeMy WebLinkAbout2013-06-04 Agenda and Support Documentation Town Council Work SessionVAIL TOWN COUNCIL WORK SESSION AGENDA VAIL TOWN COUNCIL CHAMBERS 75 S. Frontage Road W. Vail, CO 81657 11:30 A.M., JUNE 4, 2013 NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what time Council will consider an item. Public comments on work session item may be solicited by the Town Council. 1. ITEM/TOPIC: DRB/PEC Update (10 min.) PRESENTER(S): Warren Campbell 2. ITEM/TOPIC: Council interviews for appointment to the Local Licensing Authority (LLA) and the Housing Authority (HA). Interviews for LLA and HA vacancies. (20 min.) PRESENTER(S): Pam Brandmeyer ACTION REQUESTED OF COUNCIL: Staff requests each applicant be interviewed at the work session and appoint 3 members to the LLA and 1 member to the HA at the evening meeting. The terms for the LLA are for to years, June 1, 2013 to May 31, 2015. The term for the HA is for five years, June 1, 2013 to May 31, 2018. BACKGROUND: The Town received six letters of interest for the open positions on LLA and HA as follows (incumbent members are asterisked): LLA: Luca Bruno*; David McDougall; Ted Steers*; Amanda Zinn* HA: Craig Cohn; Kim Newbury* STAFF RECOMMENDATION: Staff requests the Council interview each applicant at the work session and appoint three members to the LLA and one member to the HA at the evening meeting. 3. ITEM/TOPIC: Lunch for Council will be available at 12:00 p.m. (30 min. ) 4. ITEM/TOPIC: A presentation of the City of Aspen's experience with creating a plastic bag ordinance. Goals, objectives, lessons learned, as well as challenges and successes will be discussed. (30 min. ) PRESENTER(S): Kristen Bertuglia and Ashley Perl (Aspen Environmental Specialist) ACTION REQUESTED OF COUNCIL: Staff requests that the Vail Town Council participate in the presentation by asking questions that help advance the discussion of a disposable bag ordinance in the Town of Vail. 6/4/2013 BACKGROUND: Aspen City Council voted to ban plastic bags at two local grocery stores and impose a 20-cent fee on paper bags. The ban and fee went into effect May 1, 2012. The ultimate goal is to eliminate waste from the Aspen environment and raise awareness around excessive resource consumption. While the ordinance only affects grocers, other businesses can voluntarily opt into the program. STAFF RECOMMENDATION: There is no staff recommendation at this time. 5. ITEM/TOPIC: RAMP Funding Update (20 min) PRESENTER(S): Tom Kassmel ACTION REQUESTED OF COUNCIL: Confirm with staff to submitt the final round applications for the pre-selected RAMP projects. BACKGROUND: As discussed at the April 16th Council worksession the Town of Vail submitted CDOT RAMP funding pre-applications on May 1st for three projects; -Simba Run Underpass -Frontage Road Improvements -East Vail Water Quality Improvements Thoses projects approved and pre-selected will be allowed to submit the final round application due July 1st. STAFF RECOMMENDATION: Staff should continue moving forward with the RAMP applications due on July 1st for the approved projects unless otherwise directed. 6. ITEM/TOPIC: Lionshead South Frontage Road Landscape Medians (30 min) PRESENTER(S): Tom Kassmel ACTION REQUESTED OF COUNCIL: Provide staff with direction as to whether or not to proceed with designing landscape medians for the South Frontage. BACKGROUND: Council indicated a desire to construct landscape medians along the South Frontage Road in the Lionshead area. Staff will present the median concept and estimated cost and look for direction from Council. STAFF RECOMMENDATION: Direct staff to proceed with design and budget for construciton in 2014. 7. ITEM/TOPIC: A work session to discuss the proposed 2013 Gerald R. Ford Park Master Plan - Betty Ford Alpine Garden Foundation Education Center Site Evaluation. (60 minutes) PRESENTER(S): George Ruther, Director of Community Development Tom Braun, Braun Associates, Inc. ACTION REQUESTED OF COUNCIL: Actively engage in a work session discussion regarding the evaluation of five potential sites for a future Betty Ford Alpine Garden Foundation Education Center within Gerald R. Ford Park. BACKGROUND: The Town of Vail is actively pursuing the adoption of a new master plan for Gerald R. Ford Park. Amongst the many issues and ideas being discussed during the master planning discussions is the possibility of building an education center in Ford Park to compliment the existing alpine gardens. A 6/4/2013 number of possible locations have been proposed for the new education center. Each of the sites has advantages and disadvantages associated with them. A site evaluation matrix has been developed to aid in the decision making process. STAFF RECOMMENDATION: As this is a work session discussion, staff will not be making a recommendation at this time. 8. ITEM/TOPIC: Presentation of the 2012 audited financial statements (30 min.) PRESENTER(S): Judy Camp and Michael Jenkins, McMahan and Associates, LLC ACTION REQUESTED OF COUNCIL: The 2012 audited financial statements are presented for Council information; no action is requested BACKGROUND: 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 2012 audit was conducted by McMahan and Associates, LLC. Michael Jenkins, C.A., CPA, and a principal of the firm will present the results of the audit to Council and the public. STAFF RECOMMENDATION: None - informational only 9. ITEM/TOPIC: Information Update and Attachments: 1) VEAC Meeting Minutes - Judy 2) March 2013 Business Review - Sally 3) April 2013 Sales Tax - Sally 4) May 2013 Revenue Highlights - Judy (5 min. ) PRESENTER(S): Various 10. ITEM/TOPIC: Matters from Mayor.Council and Committee Report (5 min.) 11. ITEM/TOPIC: Executive Session, pursuant to: 1) C.R.S. §24-6-402(4)(b)(e) - to receive legal advice on specific legal questions; and to determine positions, develop a strategy and instruct negotiators, Regarding: Council Roles and Responsibility, Town of Vail Development Regulations and update on pending litigation. (60 min. ) PRESENTER(S): Matt Mire 12. ITEM/TOPIC: Adjournment (4:00 p.m.) NOTE: UPCOMING MEETING START TIMES BELOW (ALL ARE APPROXIMATE DATES AND TIMES AND SUBJECT TO CHANGE) -------------------- THE NEXT REGULAR VAIL TOWN COUNCIL REGULAR WORK SESSION WILL BEGIN AT APPROXIMATELY 12:30 P.M. (or TBD), TUESDAY, JUNE 18, 2013 IN THE VAIL TOWN COUNCIL CHAMBERS FUTURE AGENDA ITEMS: Ongoing agenda items TBD: DRB/PEC updates - Warren - WS - 15 min.; Information Updates Attachments: WS - 15 min.; Executive Session items: 30 min.; Consent Agenda: 5 min.; Town Manager Report: 5 min. FUTURE AGENDA ITEMS: 6/4/2013 Ford Park Phase I Improvements Site Visit - WS - Greg Hall - 60 min. - 6/18 Council call up of Traveler Book Gallery - George Ruther - 6/18 Traveler Book Gallery Site Visit - WS - George Ruther - 6/18 Mountain Travel Update - WS - Ralf Garrison - 30 min. - 6/18 Ransberg Hearing - WS - George Ruther - 30 min. - 6/18 Vail Village Info Center - ES - Greg Hall - 30 min. - 7/2 Council call up of Wall Street Commercial - George Ruther - 7/2 Site visit to Wall Street Commercial - George Ruther - 7/2 Update on 2012-13 Legislative Session, including marijuana and collective bargaining - WS - Matt Mire -7/2 Ford Park Sport Field Contract Award- ES - Todd O - 30 min. - 7/16 Approval of contractor for operational management of Vail Welcome Center & Host Program - Suzanne - ES - 7/16 Plastic Bag Initiative Community Discussion -TBD Gore Creek Public Sign Campaign - George - WS - 20 min. - TBD Sign Code/Sponsor Vehicle Location - George - WS - 15 min. - TBD ERWSD easements - Todd Fessenden - ES - 30 min. - TBD 1st reading of Ord #1 - Charter Split - Matt M - ES - 30 min. - TBD ROI Document Presentation - Adam Sutner - WS - 20 min. - TBD EHU Housing Authority - TBD 2015 WAC construction restrictions discussion - George - WS - 30 min. - TBD VVMC/TOV discussion on MOB - Doris Kirchner, VVMC - ES - 30 min. - TBD Strategic Parking Plan discussion - Greg H. - WS - 30 min. - TBD Sister City discussion - TBD Open Space Discussion with Toby Sprunk, Eagle County Open Space Director - TBD Discussion of future of RSES - TBD Streaming PEC & DRB - TBD Vail Village Character Preservation Update - TBD 6/4/2013 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 4, 2013 ITEM/TOPIC: DRB/PEC Update PRESENTER(S): Warren Campbell ATTACHMENTS: DRB Results from May 15, 2013 PEC Results from May 27, 2013 6/4/2013 Page 1 DESIGN REVIEW BOARD AGENDA PUBLIC MEETING May 15, 2013 Council Chambers 75 South Frontage Road West - Vail, Colorado, 81657 MEMBERS PRESENT MEMBERS ABSENT Tom DuBois Libby Maio Rollie Kjesbo Andy Forstl Brian Gillette PROJECT ORIENTATION 1:00pm SITE VISITS 1. MJG Forest Road - 765 Forest Road 2. Turnipseed Residence - 615 Forest Road 3. Potato Patch Condos - 950 Red Sandstone Road 4. Anderson Residence - 1160 Sandstone Drive MAIN AGENDA 3:00pm 1. MJG Forest Road LLC DRB130051 / 10 minutes Warren Final review of changes to approved plans (outdoor gas fireplace) 765 Forest Road/Lot 8, Block 2, Vail Village Filing 6 Applicant: MJG Forest Road LLC, represented by Ceres Plus ACTION: Approved MOTION: Gillette SECOND: Forstl VOTE: 3-2-0 (Maio, Kjesbo opposed) 2. Four Seasons Resort DRB130076 / 10 minutes Joe Final review of a sign application (building identification sign) 1 Vail Road/Lot 9A-C, Vail Village Filing 2 Applicant: Vail Hotel 09 LLC, represented by David Sorenson ACTION: Tabled to June 5, 2013 MOTION: Kjesbo SECOND: Maio VOTE: 5-0-0 CONDITION(S): 3. Turnipseed Residence DRB130091 / 10 minutes Joe Final review of new construction (single-family) 615 Forest Road/Lot 2, Block 2, Vail Village Filing 6 Applicant: Vail Custom Home Collection, represented by Scott Turnipseed ACTION: Approved with condition(s) MOTION: Kjesbo SECOND: Maio VOTE: 5-0-0 CONDITION(S): 1. The applicant shall submit physical exterior material samples to staff for review and approval prior to the submittal of a building permit application. 6/4/2013 Page 2 4. Anderson Residence DRB130104 / 10 minutes Joe Final review of a minor exterior alteration (landscaping) 1160 Sandstone Drive/Lot A, Lions Ridge Filing 4 Applicant: Todger Anderson, represented by Andrew Henkes ACTION: Approved with condition(s) MOTION: Maio SECOND: Gillette VOTE: 5-0-0 CONDITION(S): 1. The applicant shall not remove the spruce tree in conjunction with this approval. 5. Potato Patch Condominiums DRB130118 / 10 minutes Joe Final review of a minor exterior alteration (landscaping) 950 Red Sandstone Road/Potato Patch Club Applicant: Potato Patch Club Condo Association, represented by Mike Earl ACTION: Approved with condition(s) MOTION: Kjesbo SECOND: Maio VOTE: 5-0-0 CONDITION(S): 1. The applicant is approved to remove the trees identified on the submitted site plan as amended by the Design Review Board at the public hearing. Trees 10, 12, and 25 shall be replaced with a minimum of three 2-inch caliper aspens in the general location of the removed trees, prior to requesting final planning inspections. STAFF APPROVALS Northwoods Building D DRB130101 Warren Final review of a minor exterior alteration (railings) 600 Vail Valley Drive/Unplatted, Northwoods Condominiums Applicant: Northwoods Condominiums, represented by Patrick Pinnell Austrian Residence DRB130103 Joe Final review of a minor exterior alteration (windows) 696 Forest Road Unit A/Lot 8, Block 1, Vail Village Filing 6 Applicant: Neil and Nancy Austrian, represented by Beth Levine Dietrich residence DRB130105 Joe Final review of a minor exterior alteration (exterior paint color change) 2772 Kinnikinnick Raod Unit B & C/Lot 13, Innsbruck Meadows Applicant: Frederick Dietrich, represented by Fritz Dietrich Hormel Residence DRB130106 Joe Final review of a minor exterior alteration (repair/repaint exterior same for same) 1527 Vail Valley Drive Unit A & B/Lot 10, Block 3, Vail Valley Applicant: Hormel Foods Corp, represented by Nedbo Construction Hendrich Residence DRB130109 Joe Final review of a minor exterior alteration (reroof, exterior repairs) 2818 Basingdale Boulevard/Lot 9, Block 8, Vail Intermountain Development Subdivision Applicant: Rush Condominium Association, represented by Pierce Architects Golden Peak Chair 12 DRB130110 Warren Final review of a minor exterior alteration (replace and realign) 460 Vail Valley Drive/Tract F, Vail Village Filing 7 Applicant: Vail Corporation, represented by Thomas Allender 6/4/2013 Page 3 Marquez Residence DRB130113 Joe Final review of an addition (enclose deck) 605 North Frontage Road West Unit 21A (Sun Vail)/Lot A, Vail Potato Patch Applicant: Jacques Payen Marquez, represented by America Chavira Northwoods Condominiums DRB130117 Joe Final review of a minor exterior alteration (landscaping) 600 Vail Valley Drive/Unplatted Applicant: Northwoods Condominium Association, represented by Mike Earl Four Seasons DRB130119 Joe Final review of a minor exterior alteration (landscaping) 1 Vail Road/Lots A-C, Vail Village Filing 2 Applicant: Vail Hotel 09 LLC, represented by David Sorenson Tavern on the Gore DRB130121 Joe Final review of a minor exterior alteration (deck replacement) 223 East Gore Creek Drive Unit A/Lot A, Block 5B, Vail Village Filing 1 Applicant: Peggy Rosenquist, represented by Mark Hallenbeck Pitkin Creek Park Condominiums DRB130126 Joe Changes to Approved Plans 3921 Bighorn Road/Pitkin Creek Park Applicant: Pitkin Creek Park Condominium Association, represented by Stephen Croke Larch S.A. DRB130129 David Final review of a minor exterior alteration (repair retaining wall) 805 Potato Patch Drive/Lot 29, Block 1, Vail Potato Patch Applicant: Larch S.A. , represented by David Irwin Vail Custom Ski Homes LLC DRB130130 Tom T. Final review of a minor exterior alteration (landscaping) 756 Forest Road/Lot 12, Block 1, Vail Village Filing 6 Applicant: Vail Custom Ski Homes LLC, represented by Mike Guzik Simba Run Resort DRB130108 David Final review of a minor exterior alteration (windows, doors, greenhouse enclosures) 1100 Lionsridge Loop/Lot C6-C10, Block C, Lion’s Ridge Filing 1 Applicant: Simba Run Condominium Association, represented by Pierce Architects Smith Residence B13-0123 JRM Final review of a minor exterior alteration (window) 825 Forest Road Unit 9 (Gore Creek Residences)/Lot 3, West Day Subdivision Applicant: Robert and Michelle Smith, represented by Mike Earl The applications and information about the proposals are available for public inspection during regular office hours in the project planner’s office, located at the Town of Vail Community Development Department, 75 South Frontage Road. Please call 479-2138 for information. Sign language interpretation available upon request with 24 hour notification. Please call 479-2356, Telephone for the Hearing Impaired, for information. 6/4/2013 Page 1 PLANNING AND ENVIRONMENTAL COMMISSION May 27, 2013 at 1:00pm TOWN COUNCIL CHAMBERS / PUBLIC WELCOME 75 S. Frontage Road - Vail, Colorado, 81657 MEETING CANCELLED - HOLIDAY The applications and information about the proposals are available for public inspection during regular office hours at the Town of Vail Community Development Department, 75 South Frontage Road. The public is invited to attend the project orientation and the site visits that precede the public hearing in the Town of Vail Community Development Department. Times and order of items are approximate, subject to change, and cannot be relied upon to determine at what time the Planning and Environmental Commission will consider an item. Please call (970) 479-2138 for additional information. Sign language interpretation is available upon request with 24-hour notification. Please call (970) 479-2356, Telephone for the Hearing Impaired, for information. Community Development Department Published May 24, 2013 in the Vail Daily. 6/4/2013 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 4, 2013 ITEM/TOPIC: Council interviews for appointment to the Local Licensing Authority (LLA) and the Housing Authority (HA). Interviews for LLA and HA vacancies. PRESENTER(S): Pam Brandmeyer ACTION REQUESTED OF COUNCIL: Staff requests each applicant be interviewed at the work session and appoint 3 members to the LLA and 1 member to the HA at the evening meeting. The terms for the LLA are for to years, June 1, 2013 to May 31, 2015. The term for the HA is for five years, June 1, 2013 to May 31, 2018. BACKGROUND: The Town received six letters of interest for the open positions on LLA and HA as follows (incumbent members are asterisked): LLA: Luca Bruno*; David McDougall; Ted Steers*; Amanda Zinn* HA: Craig Cohn; Kim Newbury* STAFF RECOMMENDATION: Staff requests the Council interview each applicant at the work session and appoint three members to the LLA and one member to the HA at the evening meeting. ATTACHMENTS: LLA and HA letters of interest 6/4/2013 I I I ( __ 6/4/2013 Lorelei Donaldson From: Sent: To: Subject: Loreli brunolucal@aol.com Tuesday, May 28, 2013 12:34 PM Lorelei Donaldson; Tammy Nagel liquor board I would like to express my interest in continuing to serve on the Vail Liquor Board. Being on the board has been a great experience for me over the last year. It has not only given me a greater sense of my community but has also given me a greater perspective on how things work in our town. I hope that I can continue to serve the Town of Vail and contribute to my community. Please let me know if you need any further information. Luca Bruno 1 6/4/2013 Lorelei Donaldson From: Sent: To: Subject: mcdougallvail < mcdougallvail@ hotmail.com > Tuesday, May 28, 2013 10:55 AM Lorelei Donaldson Re: Liquor Commission Opening Hello, My physical address is 2090 Zermatt Lane Unit D. I believe I will be able to make it back in time for the work session if it is a little later in the afternoon. Do you know around what times they will be scheduling interviews? Would it be possible for me to schedule the latest one? Thank you for your help in this matter. - David McDougall Lorelei Donaldson <LDonaldson@vailgov.com> wrote: Hi David, please give me your physical address so we can confirm the eligibility requirements. The Council will interview each applicant at the work session in the afternoon of June 4th. If their are more applicants than vacancies, I don't know what they will decide. Please send additional information that the Council can use to consider your application, a brief resume and/or whatever you think they can review if you can not make the meeting. Please send this information by. the deadline date of next Tuesday, May 28. Thank you for your interest! Sent from my iPad On May 24, 2013, at 7:11PM, "David McDougall" <mcdougallvail@hotmail.com> wrote: Dear Mrs. Donaldson, My name is David McDougall and I would like to submit my name for consideration for one of the three openings on the liquor commission. I meet all of the requirements stated in the public announcement. I believe I would be a good fit given my fifteen year involvement in the restaurant industry in our town. I currently work as the bar manager at the Ore House and consider myself to be up to date on the current liquor laws. I would like to give something back to the town that has provided me with so much including my condo and my wife. Unfortunately, I will be out of the country until Tuesday June 4th, the day of the interviews. Depending on the time of the interviews I might be able to make it back. I believe I could be back in time for the actual council meeting. I will try to check my email while I am traveling. Hopefully this unfortunate timing will not take me out of consideration. Thank you for considering me and I hope I will be able to serve my town. Sincerely, David L. McDougall 1 6/4/2013 Ted Steers Chairman Local Licensing Authority Vail, CO Town of Vail Council Members, May 16,2013 I would like to volunteer for another term as chairman of Vail's Local Licensing Authority. My original objective, when applying for this post, was to provide business with clear, law abiding systems to best serve our guests in an exciting, entertaining and safe environment. I believe this board has been extremely successful with this objective and our continued leadership will serve the Town of Vail well into the future. As leader of the board I have been instrumental in assembling an educated, articulate and passionate group of citizens to join the Liquor Board. Our ideas flow freely and our decisions are stronger than any one opinion alone. Another two years of this teamwork will assure that Vail has the most compelling and safest liquor serving district in the state of Colorado. I am proud to be a member of the Town ofVail's advisory staff. Thank you for your consideration, Ted Steers 6/4/2013 May 3, 2013 Dear Council Members, I have continued interest in serving on the Town of Vail-Local Licensing Authority board. As vice-chairman, I thoroughly enjoy participating on this board, not only conversing with the local business owners and special event producers, but with the other members of the board, Tammy Nagel, and Matt Mire. This year has been especially challenging with the state compliance checks, seeing the town, the police department, and business owners, come together with the LLA to take steps to educate and improve matters is gratifying. Vail's continual effort to create a safe drinking environment for it guests and maintain the level of customer service and enjoyment, that has become expected, is unsurpassed. I look forward to discussing this in greater detail on June 4th. Thanks kindly, Amanda Zinn 6/4/2013 ' i ,I / 6/4/2013 To: Vail Town Council Re: Town of Vail Local Housing Authority Appointment Date: 5/25/2013 I would like to express my desire to join the Vail Local Housing Authority board. I have worked with this board in the past and find the role of this board to be an integral part in Vail's long-term housin~ community enhancement, and job fulfillment needs. It would be an honor to help retain and move families and workforce personnel to town. I have been a full time resident of Vail since 1998, in that time I have owned my retail business where keeping staff was a constant challenge. Upon leaving that business in 2003, I received a Masters Degree in Real Estate and Construction Management degree from Daniels School of Business at Denver University. Since 2004, I have worked in Vail in various real estate capacities for Solaris and its related real estate companies, as well as my own real estate ventures. In addition to my role in the development of Solaris, my responsibilities include the development and management of all types of real estate from the highest quality residential and commercial condominium construction to custom homes and work force rental housing. In my role at Solaris Development Company I have focused on all aspects of real estate. My primary responsibilities include residential and commercial real estate sales, leasing, finance, and daily management. In addition I have been very involved in real estate development entitlement, feasibility, and employee housing requirements associated with large and small projects. I was responsible for the purchase and approval of the EHU properties to meet the Solaris requirements, and I have continued to work in this capacity to acquire additional EHU's. I also applied personally to the Local Housing Authority in 2011 for an EHU exchange of the lock-off apartment in my personal residence. I am very pleased that my application and involvement lead to the creation of the current exchange program. Thru this process it was made clear to me that this board is an import component to Vail's future. I have just completed 7 years as a member of the board of directors of the Vail Village Chamber and Business Association, which was great experience for me to work with many different groups within the Valley as well as town government. I have a wide breadth of work and real estate experience, I understand the need for workforce housing and for having a diverse group of locals living within our community. My professional experience gives me greater understanding of what it takes to achieve these goals. I will be able to apply these skills and experiences to help this board create new ideas and solutions to the challenges that will certainly arise to achieve these goals. 6/4/2013 I believe I am a uniquely qualified applicant for this appointment. I will bring my professional real estate experiences as well as my management expertise to this board. I am excited about the opportunity to use my professions skills to serve my community in this capacity. Thank you for your consideration. Craig Cohn 970.389.1606 craig@solarisvail.com 6/4/2013 Lorelei Donaldson From: Sent: To: Subject: Kim Newbury <kimnewbury@gmail.com> Monday, May 06, 2013 10:10 AM Lorelei Donaldson; Council Dist List Vail Local Housing Authority Dear Mayor & Town Council Members, I am very interested in continuing my service on the Vail Local Housing Authority. I have been a member since the Authority was created in 2001, and am one of only 2 original members remaining on the board (along with Steve Lindstrom). I look forward to discussing my interest and answering any questions you may have at your June 4 meeting. Thank you! Sincerely, Kim Newbury 1 6/4/2013 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 4, 2013 ITEM/TOPIC: Lunch for Council will be available at 12:00 p.m. 6/4/2013 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 4, 2013 ITEM/TOPIC: A presentation of the City of Aspen's experience with creating a plastic bag ordinance. Goals, objectives, lessons learned, as well as challenges and successes will be discussed. PRESENTER(S): Kristen Bertuglia and Ashley Perl (Aspen Environmental Specialist) ACTION REQUESTED OF COUNCIL: Staff requests that the Vail Town Council participate in the presentation by asking questions that help advance the discussion of a disposable bag ordinance in the Town of Vail. BACKGROUND: Aspen City Council voted to ban plastic bags at two local grocery stores and impose a 20-cent fee on paper bags. The ban and fee went into effect May 1, 2012. The ultimate goal is to eliminate waste from the Aspen environment and raise awareness around excessive resource consumption. While the ordinance only affects grocers, other businesses can voluntarily opt into the program. STAFF RECOMMENDATION: There is no staff recommendation at this time. ATTACHMENTS: Road Map to Bag Policy in Aspen power point 6/4/2013 ROAD MAP TO BAG POLICY IN ASPEN Ashley Perl – Sr. Environmental Health Specialist 6/4/2013 First Stop: Inception of Idea Who is motivated to reduce bag use in your community? Aspen – City Council Member Boulder – Community Fort Collins – Council Work Plan Other Options: Included in a City master plan Upper management Internal champion School system 6/4/2013 First Stop: Inception Inspiration and support from other communities Washington D.C. (5 cent fee) San Francisco (10 cent fee) Telluride, CO (10 cent fee and ban on plastic) Breckenridge, CO (10 cent fee) Focus on grocers Grocers generate 60% of disposable bags http://www.factorydirectpromos.com/plastic-bag-bans 6/4/2013 Second Stop: Decide on a destination -Worked with Chamber of Commerce -Newspapers conducted surveys of community -Met with grocers -Community cheerleaders -Bag Paparazzi -Bag Ambassadors 6/4/2013 Not So Fast! Speed bumps in the road Don’t forget the external groups affected Plastic bag lobbyist & Paper bag companies Community concerns Bag cleanliness Emotional response to bags How much is this going to cost? Colorado specific challenge: not a marine community 6/4/2013 Third Stop: Decision Point Implemented May 1, 2012 $0.20 fee on paper Ban on plastic Used multiple reports Considered tourist community Regional approach Basalt Carbondale Snowmass 6/4/2013 On Our Way! Bags made locally Bag Banks Community cheerleaders Creation of new group Waste Free Roaring Fork 6/4/2013 On Our Way! 6/4/2013 On Our Way! 6/4/2013 On Our Way! Attractions in Aspen Video featuring Mayor of Aspen, Snowboarder Gretchen Bleiler, Musician John Oates, Skier Chris Davenport and other local celebrities http://www.youtube.com/watch?v=ssiSVFtTIoU 6/4/2013 Looking Back: Lessons Learned Workload Outreach Reinvigorated community around waste reduction 6/4/2013 1 Year Later Outreach costs = $22,000 Paid back general fund with collected fees by December (8 months) Now collect an average of $2000/month from 2 grocers Total bags used to date – 186,066 (paper only) 6/4/2013 Continued Education www.wastefreeroaringfork.org 6/4/2013 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 4, 2013 ITEM/TOPIC: RAMP Funding Update PRESENTER(S): Tom Kassmel ACTION REQUESTED OF COUNCIL: Confirm with staff to submitt the final round applications for the pre-selected RAMP projects. BACKGROUND: As discussed at the April 16th Council worksession the Town of Vail submitted CDOT RAMP funding pre-applications on May 1st for three projects; -Simba Run Underpass -Frontage Road Improvements -East Vail Water Quality Improvements Thoses projects approved and pre-selected will be allowed to submit the final round application due July 1st. STAFF RECOMMENDATION: Staff should continue moving forward with the RAMP applications due on July 1st for the approved projects unless otherwise directed. ATTACHMENTS: RAMP Funding Update Memorandum RAMP application presentation 6/4/2013 To: Town Council From: Public Works Date: 6-4-13 Subject: CDOT RAMP Funding Update I. SUMMARY At the April 16th Council work session Council directed staff to apply to CDOT with three projects for RAMP funding. These projects include; • Simba Run Underpass • Frontage Road Improvements • East Vail Water Quality Improvements The selection process is a two step process; • Notification of the Intermountain TPR of intent to apply April 18th, 2013 • Pre-application due to CDOT Region 3 Office May 1st, 2013 • Notification if selected for further consideration May 31st, 2013 • Pre-selected Project Applications Due July 1st, 2013 • Recommended Projects go to Transportation Commission Sept.19th, 2013 Staff will receive notification of our project status by May 31st and will provide Council with and update and request confirmation to proceed with the Pre-selected Project Application for each pre-selected project. The submitted application for each is attached. Additional background information can be found attached and at: http://www.coloradodot.info/programs/RAMP II. PROJECT DETAIL The Town of Vail is an eligible applicant under the Transportation Partnerships category, more specifically, a Public-Public Partnership. After internal staff discussions and additional discussions with the CDOT Region 3 office, the following projects have been identified and supported by Council, Staff and CDOT for the pre-application process. 6/4/2013 Town of Vail Page 2 The Simba Run project is a proposed new underpass under I-70 that connects the North and South Frontage Roads. It is located approximately half way between the Main Vail and West Vail interstate exits; more specifically at its namesake, the Simba Run Condominiums. The project has been discussed since the early 1990’s and is referenced in numerous transportation related documents including the I-70 PEIS. It is also a project that is about to begin a joint feasibility study between CDOT and the Town of Vail. This joint project is more specifically known as a Planning and Environmental Linkage (PEL) report to understand its impacts. The total project cost submitted is $20.6 million dollars. In order to provide the best chance of success in the selection process the Town has submitted a match of $6.0 million dollars or 29% to be funded by the VRA and TIF dollars. The Frontage Road Improvements project consists of upgrading the entire Frontage Road system within Vail to current transportation standards. Improvements include; shoulders/bike lanes, auxiliary/turn lanes where required, medians where appropriate, and necessary maintenance, including an asphalt overly on both the North and South Frontage Roads and spot reconstruction as necessary. The project would bring the Frontage Roads up to a standard that would make taking over the Frontage Roads more realistic if the Town and CDOT so desired at some point in the future. The submitted total project cost is $23.3 million dollars. Of which, $4.6 million has already been constructed by the Town in the form of widened bike lanes and shoulders over the past few years, and $5.0 million is currently in the Town’s budget from TIF & RETT for additional improvements over the next couple of years; thus totaling an available Town match of $9.6 million dollars or 46%. The major improvement projects that are a part of this funding request, include; • Cascade shoulders/bike lanes $0.5m 2014 • Lionshead to Vail Spa medians $1.0m 2014 • North Frontage shoulders/bike lanes $1.5m 2015 • Timber Ridge turn lanes $1.0m 2015 • Buffehr Creek turn lane $0.5m 2015 • Lions Ridge Loop turn lane $0.5m 2015 • Red Sandstone Rd & School turn lanes $0.8m 2015 • Bald Mountain turn lane $0.3m 2016 • Booth Creek turn lane $0.4m 2016 • 2” Structural Overlay & Spot Reconstruction $8.0m 2016 • Municipal Building to Lionshead Parking Entry $3.0m 2017 The dollars amounts in bold are those that are currently within the Town’s budget and are the matching funds for the RAMP funding. The year shown for each improvement is a preliminary look at phasing opportunities, leaving the Municipal Building to Lionshead improvement to last to account for any changes necessary for Hospital Master Plan. 6/4/2013 Town of Vail Page 3 The East Vail Water Quality project is a project that provides water quality treatment within retentions basins near the Gore Creek Campground / I-70 overpass and within underground facilities at the East Vail interchange. This project is identified in the Gore Creek Water Quality Improvement Plan and would be an ideal project for a joint partnership with CDOT. The project was submitted with a total project budget of $1.14 million dollars. In order to provide the best chance of success in the selection process the Town has submitted a match of $440 thousand dollars or a 39% match to be funded by the existing Water Quailty improvement budget. III. Recommendation Staff recommends proceeding with the final round of applications with the projects that have been pre-selected. If selected in the final round the following matching funds will be required over the next 4 years. (Please note that at the time this memo was written, CDOT had not yet informed the Town of the pre-selected projects. Staff will know by end of day on May 31st and will update Council accordingly) Total Vail RAMP Project Cost Match Funds • Simba Run Underpass $20.60m $6.00m* $14.6m • Frontage Road Improvements*** $23.30m $5.00m** $13.7m • East Vail Water Quality $ 1.14m $0.44m** $0.70m * Available in TIF dollars thru 2017 but not yet budgeted ** Already accounted for in the current Vail Budget thru 2015 *** The Frontage Road Improvements project has previous work credit match of $4.6m Final selection of RAMP funding will be by the Transportation Commission at the end of September. If selected, the Town’s selected projects will begin design immediately in order to be constructed within the required 2014-2017 construction window for this funding. 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 6/4/2013 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 4, 2013 ITEM/TOPIC: Lionshead South Frontage Road Landscape Medians PRESENTER(S): Tom Kassmel ACTION REQUESTED OF COUNCIL: Provide staff with direction as to whether or not to proceed with designing landscape medians for the South Frontage. BACKGROUND: Council indicated a desire to construct landscape medians along the South Frontage Road in the Lionshead area. Staff will present the median concept and estimated cost and look for direction from Council. STAFF RECOMMENDATION: Direct staff to proceed with design and budget for construciton in 2014. ATTACHMENTS: Memo Concept Plan 6/4/2013 To: Town Council From: Public Works Date: 6-4-13 Subject: Lionshead South Frontage Road Medians I. SUMMARY & PURPOSE At the April 16th Town Council worksession staff presented the Lionshead Parking Structure Entry Frontage Road Improvements. Council directed staff not to move forward with the necessary turn lanes but requested staff to come back with a conceptual layout of adding landscape medians west of the Lionshead Parking Structure Entry. Staff has laid out a conceptual median plan for this area extending from the LH Parking Structure entry to the Vail Spa. The plan shows removing the striped asphalt medians and replacing them with raised landscape medians similar to those that exist between the Four Seasons and the Solaris. Minor asphalt widenings (2’-3’) would need to occur to accommodate a bike lane between the pedestrian bridge and the Westwind. This project improves the aesthetics of the South Frontage Road and clearly defines the travel lanes. It maintains the existing thru lanes, turn lanes, and the newly constructed parking lanes, and removes a significant amount of asphalt. The project would double the amount of existing landscaped medians the town currently has which will increase operations and maintenance budgets beginning in 2015. These increases would be seen in snow plow operations, irrigation, and landscaping. The cost to design and install these medians is estimated at $1,000,000. These improvements could be paid for by the $3,000,000 of TIF dollars that was budgeted for in 2014 for the Frontage Road improvements from the Municipal Building to LH Parking Structure Entry, which Council directed staff not to move forward with. If Council directs staff to move forward with this, it would be beneficial to have them installed next Spring in order to be completed prior to CDOT’s planned Frontage Road overlay in the Summer/Fall of 2014, and prior to the 2015 Ski Championships. 6/4/2013 Town of Vail Page 2 IV. Next Steps The next steps for the Lionshead South Frontage Road Medians is to direct staff to move forward with the design and construction of the medians based on the conceptual plan presented today. Lionshead South Frontage Road Medians Concept Design: June 2013 Design Development and Entitlements: July-September 2013 Final Design and Construction Documents: September 2013-January 2014 Construction & Equipment Installation: April-June 2014 **CDOT Frontage Road Overlay Summer/Fall 2014 V. STAFF RECOMMENDATION Staff recommends moving forward with the design and construction of the Lionshead South Frontage Road Medians with a budget of $1,000,000 allocated from the $3,000,000 that was budgeted for the Frontage Road improvements from the Municipal Building to the LH Parking Structure Entry. Staff recommends supplementing $100,000 into the 2013 budget from these funds for design. 6/4/2013 6/4/2013 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 4, 2013 ITEM/TOPIC: A work session to discuss the proposed 2013 Gerald R. Ford Park Master Plan - Betty Ford Alpine Garden Foundation Education Center Site Evaluation. PRESENTER(S): George Ruther, Director of Community Development Tom Braun, Braun Associates, Inc. ACTION REQUESTED OF COUNCIL: Actively engage in a work session discussion regarding the evaluation of five potential sites for a future Betty Ford Alpine Garden Foundation Education Center within Gerald R. Ford Park. BACKGROUND: The Town of Vail is actively pursuing the adoption of a new master plan for Gerald R. Ford Park. Amongst the many issues and ideas being discussed during the master planning discussions is the possibility of building an education center in Ford Park to compliment the existing alpine gardens. A number of possible locations have been proposed for the new education center. Each of the sites has advantages and disadvantages associated with them. A site evaluation matrix has been developed to aid in the decision making process. STAFF RECOMMENDATION: As this is a work session discussion, staff will not be making a recommendation at this time. ATTACHMENTS: Ford Park Management Plan Memorandum Ford Park Management Plan Site Alternatives Matrix Ford Park Management Plan Powerpoint 6/4/2013 1 MEMORANDUM To: Vail Town Council From: George Ruther, Community Development Director Date: June 4, 2013 Subject: 2013 Gerald R. Ford Park Master Plan – Betty Ford Alpine Garden Foundation Education Center Site Evaluation I. Purpose The purpose of this memorandum is to follow up on the input provided during the Vail Town Council public hearing on the proposed Gerald R. Ford Park Master Plan on May 7, 2103. Specifically, the input received regarding the Town’s desire to determine a potential location for a Betty Ford Alpine Garden Foundation Education Center in Ford Park. To aid in the discussion, this memorandum provides a Betty Ford Alpine Garden Foundation Education Center Site Evaluation Matrix and a series of questions which must be addressed to advance the master planning process forward. II. Discussion Goals The goal of this work session discussion with the Vail Town Council is to receive direction on the next steps the Town Council would like for staff to take in determining a potential location for Betty Ford Alpine Garden Foundation Education Center in Ford Park. 1. The BFAG Education Center Site Evaluation Matrix is the result of a site evaluation process initiated by town staff. Participation in the process included representation from the Town’s Administration, Community Development, Public Works, and Fire Departments as well as the Betty Ford Alpine Garden Foundation. The first step in the process was to identify and locate those potential sites that had been mentioned durin g previous master planning discussions. With the potential sites identified, the group then agreed upon a set of site considerations. Site considerations included such factors as site suitability, character, vehicular access, proximity to utilities, pedestrian circulation, etc. The group readily acknowledges that the list is not all inclusive. The results of the matrix are based upon discussion and input from all members of the group. In total, five potential sites were evaluated. In conclusion, staff recommends the Town Council instructs staff to advance to the next level of feasibility and suitability study of the tennis center and soccer field sites. Of the five total sites, these two sites are the only sites which warrant any further consideration. Next steps would include such tasks as engaging in a dialogue with the Vail Recreation District and the Betty Ford Alpine Garden Foundation, researching the 7th Filing covenants, identifying the synergies and opportunities of the sites, conceptualizing building programming, completing a financial analysis to better understanding cost implications, reaching out to adjacent property owners, etc. Staff further recommends that the remaining three potential sites be removed from any further consideration. A copy of the matrix has been attached for reference. 6/4/2013 2 Does the Vail Town Council agree with the staff recommendations? What additional information would be helpful in making a site selection decision? III. Town Council Action In order to remain on the requested schedule, the questions posed in Section II of this memorandum need to be answered. With clear direction articulated, staff will return to the Vail Town Council public meeting on Tuesday, June 18th with additional proposed master plan language and options for future implementation. 6/4/2013 FORD PARK/BFAG EDUCATION CENTER SITE ALTERNATIVES 29-May-13 BFAG Preferred Building Program - 3,000 SF minimum, 4,000 SF optimal, one story building is preference North end of West end of Soccer Field Alpine Gardens Parking Lot Nature Center Tennis Center (*) General Site Suitability (size, shape, soils, slope - ability to accommodate optimal building SF Site is flat, accessible, confined by road and parking lot but should be sufficient to accommodate preferred program. Site is very tight, constrained by athletic fields, amphitheater and gardens. This may necessitate compromises to SF. Site is tight, constrained by parking lotand steep slopes. Soil conditions are poor. May necessitate compromises to SF. Site is flat, has some access challenges but sufficient in size to accommodate building program. Floodplain may be an issue depending upon the building site. Site it tight, confined by EBFW and existing building. May necessitate compromises to SF. Site character (qualitative observations of site attritubes, constraints, opportunities, relationship to Gardens, etc.) Site affords excellent views to Gore Range. Proximity to road and parking lot is less than ideal setting. Detached from Garden, road and steep topography present "barrier". Site offers ability to integrate building directly with Garden, creating strong relationship to Gardens. Noise/activity at athletic fields would need to be considered in design of building. Excellent views to Gore Range and Gore Creek. Exposure to parking lot, Frontage Road and I- 70 is less than ideal. Site is more remote from Gardens. Strong connection with Creek, site offers solitude in delightful, natural setting. Site is more remote from Gardens. Site offers excellent Gore Range views, orientation to Gore Creek. Location would be "busy" given activity at Tennis Center and proximity to EBFW. Relationship to/Impact on existing Park uses and facilities (does location present compatible relationship with existing uses/will location displace or directly impact existing uses. Design would need to respect existing parking lot (ie no net loss of parking). No direct impact to other leaseholders. Building may necessitate removing much of existing berm between parking lot and Northwoods Condominimums. Design would need to maintain existing buffers between athletic fields and amphitheater (or establish sufficient buffers). Could reduce the size of the exisitng Gardens. Within BFAG existing lease area. Design would need to respect existing parking lot and access to/use of EBFW. No direct impact to other leaseholders. Building would either displace Nature Center or would involve BFAG and Nature Center sharing a building. In concept the two uses could present a workable, compatible relationship. Education center would appear to have compatible relationship with VRD's use of Tennis Center building. Design would need to respond to, coordinate with VRD's use in building, etc. Pedestrian Circulation (is convenient pedestrian access in place/will location enhance or diminish pedestrian circulation/year around access considerations) Existing pedestrian access is limited. Grade change and road crossing could be constraints. Significant improvements would be necessary. Excellent year round access Pedestrian improvements are in place. Design of building needs to ensure adequate pedestrian flow be maintained. Year round access could be challenging EBFW provides convenient access to Gardens. Excellent year round access. No existing pedestrian access. Improvements would be needed, corridor along creek could provide pleasant walk between builing and Gardens. Year round access could be challenging. EBFW provides convenient access to Gardens. Excellent year round access. Visual Considerations (does location allow for low-profile building, avoid ridgelining, etc./is site conducive to one or two levels) Terrain could allow for a two level/walkout type of design (one level on parking lot side and two levels on street side). Visible from Vail Valley Drive. To avoid building looming over Amphitheater and Lower Commons, site is limited to a one level building (or one level with a full basement). Visibility limiteddue to interior park location and need for buffers. Site is at prominent "highpoint", site is limited to a one level building (note that terrain may allow for a lower, walkout level). Visible from South Frontage Road Site has sufficient size to accommodate a single level buildng. No significant view shed issues. Visible from Vail Valley Drive. Building design needs to maintain postive relationship with EBFW, terrain could allow for a lower level walkout level with a level above. Visible could be limited depending on site design. Vehicular Access (ability to manage and control vehicles/emergency vehicle access/year around access considerations) No real access constraints. Would need to resolve how parking lot is currently managed with parking needs of building. No issues with year around access. Significant constraints to emergency vehicle access. Service vehicles would impact pedestrain corridors. Would need controls to limit passenger vehicles. Corridor is currently not No real constraints. No issues with year around access. Grade change between Vail Valley Drive and site presents challenging emergency vehicle access, would need to control/manage vehicle access to site. EBFW provides emergency vehicle access. Would need to control passenger car access. No issues with wintertime access. Proximity to utilities (water, sewer, gas, electric - are services readily available/if not can services be brought to site) Services are assumed to be located in Vail Valley Drive. Lift station may be needed for sewer service. Shallow utilities would need to be extended to site. Currently no services are proximate to site. Lift station would be required for sewer. May require some modifications to existing utility service (not main) lines. 6/4/2013 Parking/Transit (proximity to parking/impact on parking facilities/proximity to transit facilities) Close proximity to existing parking lot. Site is currently not proximate to transit stop. No parking proximate to site. Site is proximate to transit stop on Frontage Road. Close proximity to existing parking lot and to transit stop on Frontage Road. No parking proximate to site. Site is currently not convenient to transit stop. Close proximity to existing parking lot and to transit stop on Frontage Road. ADA access (general ability to accommodate ADA)No issues.No issues.No issues. Would require significant ADA upgrades No issues. Relative Ease of Implementation (involvement of other leaseholders, coordination with on-going projects, etc.) No significant issues other than those listed would impede implementation. Significant scheduling/coordination issues with improvements currently under construction (or planned) around site. No significant issues other than those listed would impede implementation. This site would involve the need for substantial public discussion and involvement from other leaseholders and interests This site would involve significant coordination with VRD. Other considerations (political, covenants, other considerations) Potential issues with 7th Filing covenants (these are being researched). It is likely an amendment to the Vail Village 7th Filing covenants would be None None Being within the "Lower Bench" area, this site can be expected to prompt controversy. Resolution #27 of 1987 is consideration. None Legend Green type - site presents positive/workable relationship to consideration. Orange type -site could work subject to site specific design and/or compromises in design/program and/or cost implications. Red type - less than desireable relationship to criteria and/or unworkable relationship). 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session TODAY’S DISCUSSION • Introduction/Purpose of Discussion • Program for BFAG Education Center • Potential Sites • Criteria • Evaluation 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session BFAG Education Center Program • 3,000 sf minimum • 4,000 sf optimal • Prefer one-level building • Open to bifurcating program 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Potential Sites 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Potential Sites 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Criteria General site suitability Site character Relationship to/Impact on existing uses and facilities Pedestrian circulation Visual considerations Vehicular access Proximity to utilities Parking and Transit ADA Relative ease of implementation Other considerations 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Criteria 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation – Parking Lot 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation – Parking Lot 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation – Parking Lot Pros Good access Views Proximity to parking Cons Limited site area Steep topography Site context Lack of utilities 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation – Nature Center 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation – Nature Center 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation – Nature Center Pros Flat, buildable site Setting, relationship to creek Cons Emergency vehicle access Proximity to parking and transit Conflict with goals for Gore Creek Preservation Sub-area. 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation - Gardens 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation - Gardens 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation - Gardens 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation - Gardens 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation - Gardens 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation - Gardens 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation - Gardens 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation - Gardens 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation - Gardens Pros Setting, proximity to Gardens Cons Lack of site area Limitation to one story building Emergency vehicle access Scheduling/coordination with on-going improvement projects 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation – Soccer Fields 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation – Soccer Fields 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation – Soccer Fields Pros Views Access No impacts on other park users Cons Site context Pedestrian connection with Park Potential covenant limitations 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation – Tennis Center 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation – Tennis Center 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation – Tennis Center 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation – Tennis Center 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Evaluation – Tennis Center Pros Views, orientation to creek Proximity to Gardens Access Proximity to parking/transit Cons Site is confined Logistics of coordinating two users 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Wrap-Up/Next Steps 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session End of Presentation 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Part 5 – Ford Park Sub-areas Upper Bench Lower Bench 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session Part 6 – Illustrative Plan Potential Improvements #1 – Gore Creek Corridor Enhancements #2 – Entry Monumentation at Park’s pedestrian entries #3 – Betty Ford Alpine Garden Educational Center #4 – Ford Amphitheater Sound Mitigation and Public Plaza #5 – Ford Amphitheater Public Plaza #6 – Children’s Playground Restrooms #7 – Betty Ford Way #8 – Betty Ford Way Traffic Control Illustrative Plan •General description of improvements •Design and operational parameters/considerations •Improvements not depicted may be proposed •No assurance of if/when improvements will be initiated 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session 2012 Plan 6/4/2013 2013 Ford Park Master Plan 6/4 TC Work Session 1997 Management Plan 6/4/2013 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 4, 2013 ITEM/TOPIC: Presentation of the 2012 audited financial statements PRESENTER(S): Judy Camp and Michael Jenkins, McMahan and Associates, LLC ACTION REQUESTED OF COUNCIL: The 2012 audited financial statements are presented for Council information; no action is requested BACKGROUND: 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 2012 audit was conducted by McMahan and Associates, LLC. Michael Jenkins, C.A., CPA, and a principal of the firm will present the results of the audit to Council and the public. STAFF RECOMMENDATION: None - informational only ATTACHMENTS: Financial Audit PowerPoint Town of Vail Audit Statements 6/4/2013 2012 Financial Statements and Audit Report FINANCE DEPARTMENT June 4, 2013 Photo by Jack Affleck 6/4/2013 2012 Financial Statements and Audit Report FINANCE DEPARTMENT Judy G. Camp, C.P.A. Finance Director Michael N. Jenkins, C.A., C.P.A Partner McMahan and Associates, L.L.C. Office: 1.970.845.8800 michael.jenkins@mcmahancpa.com 2 Town of Vail | Finance Department | 06/04/2013 6/4/2013 2012 Financial Statements GOVERNMENT-WIDE FINANCIAL STATEMENTS Provide a broad overview similar to a private sector business, including capital assets and long-term debt on a full accrual basis STATEMENT OF NET POSITION Assets exceed liabilities by $180.2M $99.7M net investment in capital assets $1.7M TABOR reserves; $25.9M restricted; $53.0M unrestricted STATEMENT OF ACTIVITIES $2.4M increase in net position $58.0M revenue; $14.6M program specific and $43.4M general revenue $55.6M expenses 3 Town of Vail | Finance Department | 06/04/2013 6/4/2013 2012 Financial Statements DEBT FINANCING TOWN OF VAIL REVENUE BONDS Retired in December 2012 – none outstanding at year end VAIL REINVESTMENT AUTHORITY TAX INCREMENT FINANCING $11,940K issued in 2010 for Lionshead improvements $11,245K outstanding at year end Repayment from incremental property tax revenue from Lionshead redevelopment TIMBER RIDGE AFFORDABLE HOUSING CORPORATION $19,025K issued in 2003 to purchase Timber Ridge Apartments $17,265K outstanding at year end Subsequent event – full repayment of bonds in February 2013 funded by $8 million capital infusion and $8 million loan from town 4 Town of Vail | Finance Department | 06/04/2013 6/4/2013 2012 Financial Statements FUND FINANCIAL STATEMENTS Record financial transactions for specific activities or governmental functions; ensure compliance with legal requirements and accounting principles; focus on near-term inflows and outflows and spendable balances GOVERNMENTAL FUNDS General, Capital Projects, Real Estate Transfer Tax, Marketing (Business License Fee), Conference Center, Vail Local Marketing District, Vail Reinvestment Authority PROPRIETARY FUNDS Internal Services – Heavy Equipment and Health Insurance Enterprise Funds – Dispatch Services and Timber Ridge 5 Town of Vail | Finance Department | 06/04/2013 6/4/2013 Fund Financial Statements 5-Year Reserves History Shows Healthy Balances in All Funds 6 Town of Vail | Finance Department | 06/04/2013 - 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 2008 2009 2010 2011 2012 All Other Vail Reinvestment Authority Conference Center Real Estate Transfer Tax Capital Projects General 6/4/2013 Fund Financial Statements GENERAL FUND FAVORABLE TO BUDGET BY $1.1 MILLION Revenue – Variance due to parking sales $(385)K; road and bridge tax $(143)K; rent $(98)K offset by permit fees $316K; other revenues $228K; county sales tax $81K. Expenditures – Budgeted higher than annual revenue to fund 2015 ski championships and Vail’s 50th; savings in general operations $767K; salaries and benefits due to vacancies $246K; heavy equipment charges $165K. Fund Balance - $23.4 million compared with target $7.4 million or 25% revenue 7 Town of Vail | Department name | 06/04/2013 Final Budget 2012 Actual Better (Worse) % Revenue $29,809K $29,662K $(148)K (0.5)% Expenditures 30,976 29,752 1,224 3.9% Transfers In (Out) (52) (52) -- N/A Net Change $(1,219)K $(142)K $1,076K N/A 6/4/2013 Fund Financial Statements CAPITAL PROJECTS FUND MANAGED $15.7 MILLION IN PROJECTS Revenue – Variance due to additional sales tax $1,336K offset by delayed federal grants $(475)K Expenditures – Variance for approved projects not yet completed and carried over to 2013 $5.9M; buy-down program not yet allocated $.9M; Timber Ridge loan guarantee $.9M Transfers and Financing – VRA funding of Lionshead projects not yet complete Fund Balance - $19.4M 8 Town of Vail | Department name | 06/04/2013 Final Budget 2012 Actual Better (Worse) Revenue $10,268K $11,416K $1,148K Expenditures 24,278 15,695 8,583 Transfers and Financing 7,009 3,324 (3,685) Net Change $(7,001)K $(956)K $6,045K 6/4/2013 Fund Financial Statements REAL ESTATE TRANSFER TAX FUND MANAGED $4.7 MILLION IN PROJECTS; $2.0 MILLION OPERATIONS Revenue – Variance due to real estate transfer tax $1,618K better than budget offset by timing of project reimbursements from Vail Recreation District $(1,163)K Expenditures – Variance due to approved projects not yet completed and carried over to 2013 $12.9M Transfers and Financing – Variance due to Conference Center funding of Ford Park improvements and renovations to clubhouse at Vail Golf Course and Nordic Center carried over to 2013 Fund Balance - $16.4M 9 Town of Vail | Finance Department | 06/04/2013 Final Budget 2012 Actual Better (Worse) Revenue $5,247K $5,832K $ 585K Expenditures 19,959 6,690 13,270 Transfers and Financing 6,785 -- (6,785) Net Change $(7,928)K $(858)K $7,070K 6/4/2013 2012 Financial Statements CAPITAL PROJECT ACCOMPLISHMENTS FUNDED BY: CAPITAL PROJECTS FUND West Vail fire station; bus replacements; CDOT required parking improvements; neighborhood bridges; environmental improvements; capital street maintenance; fire truck; facility capital maintenance; Creekside housing improvements VAIL REINVESTMENT AUTHORITY Library remodel; East Lionshead portal; West Lionshead portal; Lionshead Welcome Center REAL ESTATE TRANSFER TAX FUND Ford Park fields; Frontage Road bike and pedestrian paths CONFERENCE CENTER FUND Gerald R. Ford Amphitheater improvements 10 Town of Vail | Finance Department | 06/04/2013 6/4/2013 2012 Financial Statements and Audit Report FINANCE DEPARTMENT June 4, 2013 Photo by Jack Affleck 6/4/2013 Financial Statements December 31, 2012 6/4/2013 i Town of Vail, Colorado Financial Statements December 31, 2012 Table of Contents Page(s) Independent Auditor’s Report A1 – A3 Management’s Discussion and Analysis B1 – B7 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position C1 Statement of Activities C2 Fund Financial Statements: Governmental Funds: Balance Sheet C3 Statement of Revenues, Expenditures and Changes in Fund Balances C4 Proprietary Funds: Statement of Net Position C5 Statement of Revenues, Expenses and Changes in Net Position C6 Statement of Cash Flows C7 Fiduciary Funds: Statement of Fiduciary Net Position C8 Statement of Changes in Fiduciary Net Position C9 Notes to the Financial Statements D1 – D32 Required Supplementary Information: General Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (GAAP Basis) and Actual E1 – E2 Special Revenue Funds: Schedule of Revenues, Expenditures and Changes in Fund Balance – 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 Balance – Budget (GAAP Basis) and Actual F1 Enterprise Funds: Schedule of Revenues, Expenses and Changes in Net Position – Budget (GAAP Basis) and Actual – Timber Ridge Affordable Housing Corporation F2 Schedule of Revenues, Expenses, and Changes in Net Position – Budget (Non-GAAP Basis) and Actual – With Reconciliation to GAAP Basis – Dispatch Services Fund F3 6/4/2013 ii Town of Vail, Colorado Financial Statements December 31, 2012 Table of Contents (Continued) Page(s) Supplementary Information (continued): Internal Service Funds: Schedule of Revenues, Expenses, and Changes in Net Position – Budget (Non-GAAP Basis) and Actual – With Reconciliation to GAAP Basis – Heavy Equipment Fund F4 Schedule of Revenues, Expenses and Changes in Net Position – Budget (GAAP Basis) and Actual – Health Insurance Fund F5 Combining Statement of Net Position F6 Combining Statement of Revenues, Expenses and Changes in Net Position F7 Combining Statement of Cash Flows F8 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 – 2012 Actual / Projected 2013 – 2016 G2 Table XIX – History of General Fund Revenues, Expenditures and Changes in Fund Balance G3 Table XX – General Fund – 2012 Budget and Actual Comparison / 2013 Budget G4 Table XXI – Outstanding Revenue Obligations G4 Single Audit Reports and Schedules: Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards H1 – H2 Independent Auditor’s Report on Compliance for Each Major Program and Report on Internal Control Over Compliance Required by OMB Circular A-133 H3 – H4 Schedule of Findings and Questioned Costs H5 Schedule of Prior Audit Findings and Questioned Costs H6 Schedule of Expenditures of Federal Awards H7 6/4/2013 McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.com Member: American Institute of Certified Public Accountants D. Jerry McMahan, C.P.A. Daniel R. Cudahy, C.P.A. Paul J. Backes, C.P.A. Michael N. Jenkins, C.A., C.P.A. Avon Aspen Frisco (970) 845-8800 (970) 544-3996 (970) 668-3481 A1 M & A INDEPENDENT AUDITOR'S REPORT To the Mayor and Members of Council Town of Vail, Colorado Vail, Colorado Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Vail, Colorado, Colorado (the “Town”), as of and for the year ended December 31, 2012, and the related noted to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Town’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, we express no such opinion. An audit also includes evaluation of the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 6/4/2013 INDEPENDENT AUDITOR’S REPORT To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado A2 Opinions In our opinion, the financial statements referred to above present 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, Colorado as of December 31, 2012, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis in Section B be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The budgetary comparison information in section E is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. The budgetary comparison information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statement or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s financial statements taken as a whole. The accompanying supplementary information in section F (including individual fund budgetary schedules, combining internal service fund statements, budgetary schedules for project expenditures, and the Local Highway Finance Report) and section G (the Town’s Undertaking to Provide Continuing Disclosure) is presented for the purpose of additional analysis and are not a required part of the Town’s basic financial statements. The accompanying Schedule of Expenditures of Federal Awards included in section H is presented for the purpose of additional analysis, as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the Town’s basic financial statements. The supplementary information in sections F and G, and the Schedule of Expenditures of Federal Awards are the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information in section F and the Schedule of Expenditures of Federal Awards is fairly stated in all material aspects in relation to the financial statements as a whole. The information included in the Town’s Undertaking to Provide Continuing Disclosure in section G has not been subjected to the auditing procedures applied in the audit of the Town’s basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. 6/4/2013 INDEPENDENT AUDITOR’S REPORT To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado A3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 20, 2013 on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance with provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control over financial reporting and compliance. McMahan and Associates, L.L.C. May 20, 2013 6/4/2013 MANAGEMENT’S DISCUSSION AND ANALYSIS 6/4/2013 B1 Tow n of Vail, Colorado Management’s Discussion and Analysis December 31, 2012 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, 2012. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Town’s basic financial statements. The Town’s basic financial statements include three components: 1) government-wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. Financial Highlights: The assets of the Town exceeded its liabilities at the close of the 2012 fiscal year by $180,238,877 (net assets). Of this amount,$1,687,000 is restricted for TABOR emergency reserves and $25,902,561 is restricted by enabling legislation. The Town’s total net assets increased in the 2012 fiscal year by $2,364,255 which was attributable to an increase from governmental activities of $2,364,133 and an increase of $122 from business-type activities. At December 31, 2012, the fund balance of the General Fund was $23,403,652. Of that amount, $1,613,000 was restricted for TABOR emergency reserves. Government-wide financial statements: The government-wide financial statements are designed to provide readers with a broad overview of the Town’s finances in a manner similar to a private-sector business. The Statement of Net Position presents information on the Town’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position 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 position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs,regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected grant revenues or earned but unused vacation leave.) Both of the government-wide financial statements distinguish functions of the Town that are principally supported by taxes and intergovernmental revenues (governmental activities)and those that are supported by external revenues (business-type activities). The governmental activities of the Town include general government, public safety, public works, transportation, and economic development. The business-type activities of the Town consist of housing conducted through Timber Ridge Affordable Housing Corporation (a component unit of the Town), and dispatch services, conducted through Vail Public Safety Communications (an enterprise fund of the Town). The government-wide financial statements include not only the Town itself (known as the primary government), but also a legally separate marketing district (Vail Local Marketing District), a legally separate urban renewal authority (Vail Reinvestment Authority),and 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. 6/4/2013 B2 Overview of the Financial Statements (continued) Fund Financial Statements: A fund is an accounting entity that has a set of self-balancing accounts that records all financial transactions for specific activities or governmental functions. The Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. The Town’s funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the governments’ near-term financing decisions. Both the governmental fund Balance Sheet and the governmental Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town’s governmental funds include the General Fund, Debt Service Fund, Capital Projects Fund and three Special Revenue Funds –Real Estate Transfer Tax Fund, Vail Marketing Fund and Conference Center Fund –as well as the Vail Local Marketing District and the Vail Reinvestment Authority, which are component units of the Town. The Town adopts an annual appropriated budget for all governmental funds. A budgetary comparison statement has been provided for all funds to demonstrate compliance with the state budget statute. The basic governmental fund financial statements can be found on pages C3 and C4 of this report. Proprietary Funds: The Town reports two categories of proprietary funds –Internal Service and Enterprise. The Heavy Equipment Fund and Health Insurance Fund are internal service funds, while Timber Ridge Affordable Housing Corporation, which is a component unit and the Dispatch Services Fund are reported as enterprise funds. As their name implies, the internal service funds provide services to the Town’s governmental activities. Timber Ridge Affordable Housing Corporation provides affordable rental housing to people who work in Vail and the Dispatch Services Fund provides dispatch services to emergencies service agencies throughout Eagle County. Enterprise fund functions are presented as business-type activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The basic proprietary fund financial statements can be found on pages C5 through C7 of this report. The Town also presents a budgetary comparison for its proprietary funds. Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Town’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements, for the Town’s pension plan,can be found on pages C8 and C9 of this report. Notes to the Financial Statements: The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The Notes to the Financial Statements can be found on pages D1 through D32 of this report. 6/4/2013 B3 Overview of the Financial Statements (continued) Government-wide Financial Analysis: As previously mentioned, the government-wide financial statements are designed to provide readers with a broad overview and long-term analysis of the Town’s finances, in a manner similar to a private-sector business. Net position may serve over time as a useful indicator of a government’s financial position. In the case of the Town, governmental assets exceeded liabilities by $179,043,864 at the close of the most recent fiscal year. Approximately 57% 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 position for 2012 and 2011. Governmental Activities Business-type Activities Total 2012 2011 2012 2011 2012 2011 Current and Other Assets $89,542,293 95,604,389 3,798,359 4,428,831 93,340,652 100,033,220 Capital Assets 112,529,682 106,052,818 16,689,219 16,960,290 129,218,901 123,013,108 Total Assets 202,071,975 201,657,207 20,487,578 21,389,121 222,559,553 223,046,328 Deferred Outflows Long-term Liabilities Outstanding 197,761 9,427,584 255,557 12,051,686 396,458 18,700,772 394,462 19,206,257 594,219 28,128,356 650,019 31,257,943 Other Liabilities 9,740,837 9,123,896 988,251 1,382,435 10,729,088 10,506,331 Total Liabilities 19,168,421 21,175,582 19,689,023 20,588,692 38,857,444 41,764,274 Deferred Inflows Net Position: 4,057,451 4,057,451 - - 4,057,451 4,057,451 Invested in capital assets, net of related debt 101,246,582 92,107,267 (1,575,781) (1,779,710) 99,670,801 90,327,557 Restricted 27,589,561 32,473,845 --27,589,561 32,473,845 Unrestricted 50,207,721 52,098,619 2,770,794 2,974,601 52,978,515 55,073,220 Total Net Position $179,043,864 176,679,731 1,195,013 1,194,891 180,238,877 177,874,622 The Town’s current assets from governmental activities decreased while capital assets increased mainly due to significant investment in capital assets. Major construction projects during 2012 included completion of the new Lionshead W elcome Center,energy enhancements to town facilities, a renovation of the Vail Library, completion of the West Vail Fire Station, parking improvements on the frontage road and partial work on both East and W est Portals to Lionshead. Other major capital assets purchased during the year included the replacement of a fire pumper truck and 2 new hybrid buses. The Town’s long-term liabilities from governmental activities decreased due to principal payments on outstanding debt. The Town’s 2002B and 2008 Sales Tax Revenue Bonds were retired in December, 2012. The Town’s 2010A and 2010B Tax Increment Bonds will be retired in 2018 and 2030, respectively. Long-term liabilities from business activities decreased as a result of a principal payment on the Corporation’s 2003A bonds. The Timber Ridge Affordable Housing 2003A bonds and note payable mature in 2032. Additional information regarding the town’s long-term debt is available on pages D20 – D28 of this report. 6/4/2013 B4 Overview of the Financial Statements (continued) The chart below provides financial information from the Town’s Statement of Activities for the years 2012 and 2011. 2012 2011 2012 2011 2012 2011 Revenue: Program Revenue Charges for services 7,762,935$ 8,621,386$ 3,423,617 3,285,048 11,186,552 11,906,434 Operating grants 1,392,543 2,532,499 744,156 748,042 2,136,699 3,280,541 Capital grants 1,307,442 2,079,711 - - 1,307,442 2,079,711 General Revenue Property and ownership tax 7,549,456 8,412,204 - - 7,549,456 8,412,204 Sales and lodging tax 24,582,260 23,334,080 - - 24,582,260 23,334,080 Other taxes 9,935,692 9,046,093 - - 9,935,692 9,046,093 Interest and other revenue 1,259,624 748,238 26,177 26,594 1,285,801 774,832 Total Revenue 53,789,952 54,774,211 4,193,950 4,059,684 57,983,902 58,833,895 Expenses: General government 7,057,306 6,535,508 - - 7,057,306 6,535,508 Public safety 9,070,632 8,854,261 2,467,080 2,339,404 11,537,712 11,193,665 Public works and transportation 23,190,935 20,909,029 - - 23,190,935 20,909,029 Culture and recreation 8,376,769 6,579,854 - - 8,376,769 6,579,854 Economic development 3,001,343 2,789,722 - - 3,001,343 2,789,722 Housing - - 1,726,748 1,649,290 1,726,748 1,649,290 Interest 728,834 914,904 - - 728,834 914,904 Total Expenses 51,425,819 46,583,278 4,193,828 3,988,694 55,619,647 50,571,972 Increase in Net Position 2,364,133 8,190,933 122 70,990 2,364,255 8,261,923 Net Position January 1 176,679,731 168,488,798 1,194,891 1,123,901 177,874,622 169,612,699 Net Position December 31 179,043,864$ 176,679,731 1,195,013 1,194,891 180,238,877 177,874,622 Town of Vail's Changes in Net Position Total Governmental Activities Business-type Activities Governmental Activities: Governmental activities increased the Town’s net assets by $2,364,133. Key elements of this increase are as follows: Revenue exceeded expenditures in the Vail Local Marketing District and Vail Reinvestment Authority component units of $233,993 and $1.9 million, respectively. Capital outlay exceeded depreciation by $6.6 million Long-term liabilities were reduced by $2.6 million through principal repayments. Business-type Activities: Business-type activities are comprised of:Timber Ridge Affordable Housing Corporation, a component unit of the Town established to provide affordable housing to people working in Vail, and Vail Public Safety Communications Center, an enterprise fund providing dispatch services to emergency service agencies throughout Eagle County. 6/4/2013 B5 Financial Analysis of the Town’s Funds As previously mentioned, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds: The focus of the Town’s governmental funds is to provide information on near- term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements. In particular, fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $75,181,340 a decrease of $6,492,958 from the prior year’s ending fund balances. The following details ending fund balances for the past five years: Fund 2008 2009 2010 2011 2012 General Fund $ 23,002,886 $ 23,423,417 $ 22,886,692 $ 23,546,285 $ 23,403,652 Capital Projects Fund 10,906,870 13,153,206 19,279,317 20,358,739 19,402,790 Real Estate Transfer Tax 17,288,266 14,216,947 17,681,155 17,285,604 16,427,967 Conference Center Fund 9,264,476 9,324,654 9,365,004 8,915,791 7,719,784 Vail Marketing Fund 83,635 106,359 138,171 156,543 173,975 Vail Local Marketing District 1,026,588 572,930 855,364 1,061,697 1,295,690 Debt Service Fund 174,334 189,428 194,282 205,647 21,271 Vail Reinvestment Authority 1,333,551 2,637,172 15,229,105 10,143,992 6,736,211 Total $ 63,080,606 $ 63,624,133 $ 85,629,090 $ 81,674,298 $ 75,181,340 The General Fund balance grew steadily until 2010, when reserves were used to cash-fund construction of a new West Vail Fire Station. Sales tax collections in 2012 exceeded the previous record in 2008 by 2%. Although sales tax collections increased by 2.4% from the prior year, it was offset by declines in other revenue sources such as parking, property tax and county road and bridge tax. Other impacts to the General Fund fund balance include a significant level in funding of extraordinary special events which were offset by conservative spending by the departments. This resulted in a decrease to fund balance of only $142,633 compared to a budgeted decrease of $1.2 million.The Capital Projects Fund and RETT Fund normally fluctuate as funds are spent on major projects. RETT collections increased 24% from the prior year due to strong activity in “base”, or normal sales not related to major redevelopment projects. The Capital Projects Fund benefited from increased sales tax during 2012, as well as an all-time high of $1.2 million collected in construction use tax. 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. In November, 2011 voters approved use of these funds for im provements to Vail’s recreational and cultural facilities. Three major capital projects are currently underway, including a reconstruction of the clubhouse at the Vail golf course and Nordic center, the Ford Park athletic fields, and improvements to the Gerald R. Ford amphitheater. The Vail Reinvestment Authority (VRA)was added in 2004 to administer an urban renewal authority established in the Lionshead area of the town. The incremental property taxes generate an average of $3.3 million per year, providing a funding mechanism for capital improvements within the district by covering debt service payments for $11.9 million in bonds issued in 2010. The bonds have funded several projects including a new transit and welcome center, a remodel of the Vail Library and improvements to both the east and west portals into Lionshead Village. As of December 31, 2012, the transit and welcome centers were complete, with the other projects underway. The bonds are scheduled to be paid off by 2030, when the district will expire. 6/4/2013 B6 Financial Analysis of the Town’s Funds (continued) Proprietary Funds: The Town’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets for the Heavy Equipment Fund and the Dispatch Services Fund at the end of the year were $2,270,972 and $1,106,936, respectively. The Health Insurance Fund net assets were $711,611,all of which are restricted for the Town’s self-funded health insurance program. Budget Variances in the General Fund: General Fund revenue was lower than the amended budget by $147,614 or 0.5%, including:Parking sales down $385,164;County road and bridge tax down $142,910; and Rent down $97,682.Expenditures were below budget by $1,223,920 or 4.0%. The favorable spending variance was due to expense savings in general operations of $767,000, salary and benefit savings from vacancies of $246,000,and heavy equipment charges of $165,000. Capital Assets: The Town’s government-wide capital assets, net of accumulated depreciation, increased $6,607,262. Capital additions included the completion of a new fire station at West Vail, a new welcome center at the Lionshead parking structure, replacement of 2 hybrid buses, energy enhancements in several town facilities, a major renovation of the Vail Library, and improvements to the East and W est Portal Entries into Lionshead. 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 in footnote IV.C of this report. Long-term Debt: As of the end of the current fiscal year, the Vail Reinvestment Authority had $11,245,000 of tax increment bonds outstanding, of which $460,000 of bond principal is due within one year. Debt related to Timber Ridge Affordable Housing Corporation totaled $17,265,000 of which $500,000 is due within one year. Additional information regarding the Town’s debt can be found in the Notes to the Financial Statements in footnote IV.F of this report. Sales Tax: During 2012, 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. 6/4/2013 B7 Next Year’s Budget and Rates: The Town’s General Fund balance at the end of the current fiscal year was $23,403,652 representing 79% of annual revenue. The town anticipates using $9,166,516 of this fund balance during 2013, mainly to fund an investment in Timber Ridge affordable housing totaling $8.0 million, as well as $1.1 million in special events such as the 2015 World Alpine Ski Championships and Burton US Open Snowboarding Championships. Request for information This financial report is designed to provide a general overview of the Town’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report should be addressed to the Town of Vail, Finance Director, 75 S. Frontage Road, Vail, CO 81657. 6/4/2013 GOVERNMENT-WIDE FINANCIAL STATEMENTS 6/4/2013 Town of Vail, Colorado Statement of Net Position December 31, 2012 GovernmentalBusiness-type Activities Activities Total Assets: Equity in pooled cash and investments63,305,041 1,246,376 64,551,417 Unrestricted cash and investments7,694,832 899,594 8,594,426 Cash - restricted5,848,347 1,612,825 7,461,172 Receivables (net of allowance for uncollectible accounts): Property taxes assessed4,057,451 - 4,057,451 Other taxes1,561,861 - 1,561,861 Other governments97,172 - 97,172 Other4,079,351 14,365 4,093,716 Inventory291,385 - 291,385 Prepaid expenses1,800 25,199 26,999 Interest receivable238,968 - 238,968 Loans receivable: Collectible within one year5,000 - 5,000 Collectible in more than one year2,361,085 - 2,361,085 Property, plant, and equipment, net of accumulated depreciation 112,529,682 16,689,219 129,218,901 Total Assets 202,071,975 20,487,578 222,559,553 Deferred Outflow of Resources: Bond issue costs, net of accumulated amortization197,761 396,458 594,219 Total Deferred Outflow of Resources 197,761 396,458 594,219 Liabilities: Accounts payable3,778,840 82,493 3,861,333 Due to other governments8,635 - 8,635 Retainage payable665,153 - 665,153 Accrued salaries and wages912,206 61,674 973,880 Interest payable50,438 241,747 292,185 Other deferred revenue765,516 4,464 769,980 Deposits payable333,559 74,025 407,584 Debt issuance premium38,100 - 38,100 Ctdb The accompanying notes are an integral part of these financial statements. C1 Compensated absences: Due within one year548,390 23,848 572,238 Due in more than one year822,584 35,772 858,356 Bonds payable: Due within one year460,000 500,000 960,000 Due in more than one year10,785,000 16,765,000 27,550,000 Notes payable- 1,900,000 1,900,000 Total Liabilities 19,168,421 19,689,023 38,857,444 Deferred Inflow of Resources: Deferred property taxes4,057,451 - 4,057,451 Total Deferred Inflow of Resources 4,057,451 - 4,057,451 Net Position: Net investment in capital assets101,246,582 (1,575,781) 99,670,801 Restricted for: Emergencies1,687,000 - 1,687,000 Other purposes25,902,561 - 25,902,561 Unrestricted:50,207,721 2,770,794 52,978,515 Total Net Position 179,043,864 1,195,013 180,238,877 The accompanying notes are an integral part of these financial statements. C1 6/4/2013 To w n o f V a i l , C o l o r a d o St a t e m e n t o f A c t i v i e s Fo r t h e Y e a r E n d e d D e c e m b e r 3 1 , 2 0 1 2 Ne t ( E x p e n s e ) R e v e n u e a n d Pr o g r a m R e v e n u e s C h a n g e s i n N e t P o s i t i o n O p e r a t i n g C a p i t a l C h a r g e s f o r G r a n t s a n d G r a n t s a n d G o v e r n m e n t a l B u s i n e s s - t y p e Ex p e n s e s S e r v i c e s C o n t r i b u t i o n s C o n t r i b u t i o n s A c t i v i t i e s A c t i v i t i e s T o t a l Go v e r n m e n t a l A c t i v i t i e s : Ge n e r a l G o v e r n m e n t : 7 , 0 5 7 , 3 0 6 3 , 2 7 6 , 7 8 1 - - ( 3 , 7 8 0 , 5 2 5 ) ( 3 , 7 8 0 , 5 2 5 ) Pu b l i c S a f e t y 9 , 0 7 0 , 6 3 2 3 9 5 , 6 1 9 1 8 9 , 6 2 3 - ( 8 , 4 8 5 , 3 9 0 ) ( 8 , 4 8 5 , 3 9 0 ) Pu b l i c W o r k s & T r a n s p o r t a t i o n 2 3 , 1 9 0 , 9 3 5 3 , 5 8 5 , 5 3 4 1 , 0 9 3 , 5 1 9 1 , 1 0 2 , 9 3 8 ( 1 7 , 4 0 8 , 9 4 4 ) ( 1 7 , 4 0 8 , 9 4 4 ) Cu l t u r e & R e c r e a t i o n 8 , 3 7 6 , 7 6 9 1 7 2 , 7 0 3 1 0 9 , 4 0 1 2 3 , 8 8 6 ( 8 , 0 7 0 , 7 8 0 ) ( 8 , 0 7 0 , 7 8 0 ) Ec o n o m i c D e v e l o p m e n t 3 , 0 0 1 , 3 4 3 3 3 2 , 2 9 7 - 1 8 0 , 6 1 9 ( 2 , 4 8 8 , 4 2 7 ) ( 2 , 4 8 8 , 4 2 7 ) In t e r e s t o n l o n g - t e r m d e b t 7 2 8 , 8 3 4 - - - ( 7 2 8 , 8 3 4 ) ( 7 2 8 , 8 3 4 ) To t a l G o v e r n m e n t a l A c t i v i t i e s : 5 1 , 4 2 5 , 8 1 9 7 , 7 6 2 , 9 3 5 1 , 3 9 2 , 5 4 3 1 , 3 0 7 , 4 4 2 ( 4 0 , 9 6 2 , 8 9 9 ) ( 4 0 , 9 6 2 , 8 9 9 ) Bu s i n e s s - t y p e A c t i v i t i e s : Di s p a t c h s e r v i c e s 2 , 4 6 7 , 0 8 0 1 , 7 4 3 , 7 6 7 7 4 4 , 1 5 6 - 2 0 , 8 4 3 2 0 , 8 4 3 Ho u s i n g ( T i m b e r R i d g e ) 1 , 7 2 6 , 7 4 8 1 , 6 7 9 , 8 5 0 - - ( 4 6 , 8 9 8 ) ( 4 6 , 8 9 8 ) To t a l B u s i n e s s - t y p e A c t i v i t i e s : 4 , 1 9 3 , 8 2 8 3 , 4 2 3 , 6 1 7 7 4 4 , 1 5 6 - (26,055) ( 2 6 , 0 5 5 ) To t a l 55 , 6 1 9 , 6 4 7 1 1 , 1 8 6 , 5 5 2 2 , 1 3 6 , 6 9 9 1 , 3 0 7 , 4 4 2 ( 4 0 , 9 6 2 , 8 9 9 ) ( 2 6 , 0 5 5 ) ( 4 0 , 9 8 8 , 9 5 4 ) Ge n e r a l R e v e n u e s : Ta x e s : S a l e s a n d u s e t a x e s 2 2 , 1 2 9 , 3 5 0 - 2 2 , 1 2 9 , 3 5 0 R e a l e s t a t e t r a n s f e r t a x e s 5 , 4 5 2 , 9 3 7 - 5 , 4 5 2 , 9 3 7 L o d g i n g t a x e s 2 , 4 5 2 , 9 1 0 - 2 , 4 5 2 , 9 1 0 P r o p e r t y a n d s p e c i f i c o w n e r s h i p t a x e s 7 , 5 4 9 , 4 5 6 - 7 , 5 4 9 , 4 5 6 Th e a c c o m p a n y i n g n o t e s a r e a n i n t e g r a l p a r t o f t h e s e f i n a n c i a l s t a t e m e n t s . C2 S k i a r e a l i f t t i c k e t a d m i s s i o n s t a x 3 , 4 3 3 , 6 8 6 - 3 , 4 3 3 , 6 8 6 F r a n c h i s e t a x e s 9 7 4 , 2 4 4 - 9 7 4 , 2 4 4 C i g a r e t t e t a x e s 7 4 , 8 2 5 - 7 4 , 8 2 5 In v e s t m e n t e a r n i n g s 5 5 8 , 8 8 8 1 1 , 3 4 0 5 7 0 , 2 2 8 Ga i n ( l o s s ) o n s a l e o f c a p i t a l a s s e t s 1 5 2 , 7 0 2 - 1 5 2 , 7 0 2 Mi s c e l l a n e o u s 5 4 8 , 0 3 3 1 4 , 8 3 7 5 6 2 , 8 7 0 T o t a l G e n e r a l R e v e n u e s a n d T r a n s f e r s 43 , 3 2 7 , 0 3 2 2 6 , 1 7 7 4 3 , 3 5 3 , 2 0 9 Ch a n g e i n N e t P o s i t i o n 2, 3 6 4 , 1 3 3 1 2 2 2 , 3 6 4 , 2 5 5 Ne t P o s i t i o n - J a n u a r y 1 17 6 , 6 7 9 , 7 3 1 1 , 1 9 4 , 8 9 1 1 7 7 , 8 7 4 , 6 2 2 Ne t P o s i t i o n - D e c e m b e r 3 1 17 9 , 0 4 3 , 8 6 4 1 , 1 9 5 , 0 1 3 1 8 0 , 2 3 8 , 8 7 7 Th e a c c o m p a n y i n g n o t e s a r e a n i n t e g r a l p a r t o f t h e s e f i n a n c i a l s t a t e m e n t s . C2 6/4/2013 FUND FINANCIAL STATEMENTS 6/4/2013 CapitalReal EstateConferenceVailVail LocalVailDebt Total GeneralProjectsTransfer TaxCenterMarketingMarketingReinvestmentServiceGovernmental FundFundFundFundFundDistrictAuthorityFundFunds Assets: Equity in pooled cash and investments23,793,242 10,635,590 17,029,437 8,422,153 173,975 - - 22,271 60,076,668 Cash and cash equivalents - Unrestricted10,310 - - - - 864,837 6,819,685 - 7,694,832 Cash and cash equivalents - Restricted- - - - - - 5,273,200 - 5,273,200 Receivables, net of allowance for uncollectible accounts: Property taxes assessed4,057,451 - - - - - - - 4,057,451 Other taxes765,782 - 317,830 - - 478,249 - - 1,561,861 Other governments47,655 47,494 2,023 - - - - - 97,172 Other370,127 3,685,025 14,788 - - - - - 4,069,940 Due from other funds- 5,354,864 - - - - - - 5,354,864 Loans receivable461,085 1,905,000 - - - - - - 2,366,085 Prepaid expenses1,800 - - - - - - - 1,800 Total Assets 29,507,452 21,627,973 17,364,077 8,422,153 173,975 1,343,086 12,092,885 22,271 90,553,872 Liabilities and Fund Equity: Liabilities: Accounts payable676,844 1,099,542 786,620 702,369 - 47,396 - 1,000 3,313,771 Due to other governments6,825 - - - - - 1,810 - 8,635 Due to other funds- - - - - - 5,354,864 - 5,354,864 Retainage payable- 548,698 116,455 - - - - - 665,153 Accrued payroll and related liabilities835,388 5,159 33,036 - - - - - 873,583 Unearned revenue193,733 571,783 - - - - - - 765,516 Deposits payable333,559 - - - - - - - 333,559 Total Liabilities 2,046,349 2,225,182 936,111 702,369 - 47,396 5,356,674 1,000 11,315,081 Deferred Inflows of Resources: Property taxes4,057,451 - - - - - - - 4,057,451 Total Deferred Inflows of Resources 4,057,451 - - - - - - - 4,057,451 Fund Balances: Non-spendable462,885 1,905,000 - - - - - - 2,367,885 Restricted1,730,824 - 16,427,967 7,719,784 173,975 74,000 1,463,011 - 27,589,561 Committed7,644,315 14,274,890 - - - 1,221,690 - - 23,140,895 Assigned- 3,222,900 - - - - 5,273,200 - 8,496,100 Unassigned 13565628 ------21271 13586899 Town of Vail, Colorado Balance Sheet Governmental Funds December 31, 2012 The accompanying notes are an integral part of these financial statements. C3 Unassigned 13,565,628 - - - - - - 21,271 13,586,899 Total Fund Balances 23,403,652 19,402,790 16,427,967 7,719,784 173,975 1,295,690 6,736,211 21,271 75,181,340 Total Liabilities and Fund Balances 29,507,452 21,627,972 17,364,078 8,422,153 173,975 1,343,086 12,092,885 22,271 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.109,222,818 Other long-term assets and unearned charges are not available for current period expenditures and, therefore, are not reported in the funds.1,011,876 Internal service funds are used by management to charge the costs of heavy equipment and health insurance to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Position.6,289,447 Long-term liabilities, including bonds payable, interest payable, and compensated absences within governmental activities are not due and payable in the current period and, therefore, are not reported in the funds.(12,661,618) Net Position of Governmental Activities 179,043,864 The accompanying notes are an integral part of these financial statements. C3 6/4/2013 Capital Real Estate Conference Vail Vail Local Vail Debt Total General Projects Transfer Tax Center Marketing Marketing Reinvestment Service Governmental Fund Fund Fund Fund Fund District Authority Fund Funds Revenues: Taxes 20,124,283 9,928,081 5,452,937 - - 2,452,910 3,383,493 - 41,341,704 Permits and licenses 1,470,588 - - - 332,297 - - - 1,802,886 Intergovernmental revenue 1,875,027 726,444 26,961 - - - - - 2,628,432 Charges for services 5,512,776 197,613 167,936 - - - - - 5,878,325 Investment income 177,991 122,406 124,267 61,299 1,750 289 12,817 6,052 506,870 Interest Subsidy - - - - - - 180,619 - 180,619 Miscellaneous 500,936 441,008 59,995 - - - - - 1,001,939 Total Revenues 29,661,601 11,415,552 5,832,096 61,299 334,047 2,453,199 3,576,929 6,052 53,340,775 Expenditures: General government 6,376,398 - - - - - - 1,500 6,377,898 Public safety 8,110,159 - 182,290 - - - - - 8,292,449 Public works and transportation 11,573,991 15,695,338 4,723,228 - - - - - 31,992,557 Culture and recreation 3,691,686 - 1,784,215 - - - - - 5,475,901 Economic development - - - 1,257,306 316,615 2,219,206 566,067 - 4,359,194 Debt service: Principal - - - - - - 445,000 2,195,000 2,640,000 Interest - - - - - - 618,778 82,275 701,053 Total Expenditures 29,752,234 15,695,338 6,689,733 1,257,306 316,615 2,219,206 1,629,845 2,278,775 59,839,052 Excess (Deficiency) of Revenues Over Expenditures (90,633) (4,279,786)(857,637) (1,196,007) 17,432 233,993 1,947,084 (2,272,723)(6,498,277) Other Financing Sources (Uses): Sale of assets - 5,320 - - - - - - 5,320 Transfers in - 5,406,864 - - - - - 2,088,347 7,495,211 Transfers (out)(52,000) (2,088,347)- - - - (5,354,864) - (7,495,211) Total Other Financing Sources (Uses)(52,000) 3,323,837 - - - - (5,354,864) 2,088,347 5,320 Net Change in Fund Balances (142,633) (955,949) (857,637) (1,196,007) 17,432 233,993 (3,407,780) (184,376) (6,492,957) Fund Balances - January 1 23,546,285 20,358,739 17,285,604 8,915,791 156,543 1,061,697 10,143,991 205,647 81,674,297 Fund Balances - December 31 23,403,652 19,402,790 16,427,967 7,719,784 173,975 1,295,690 6,736,211 21,271 75,181,340 Net Change in Fund Balances of Governmental Funds (6,492,957) Town of Vail, Colorado Statement of Revenues, Expenditures Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2012 The accompanying notes are in integral part of these financial statements. C4 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 expense. This is the amount by which capital outlay exceeded depreciation expense, net of disposals for the year.6,607,262 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 position for the year.(315,255) Repayment of bond and lease principal are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. This is the amount of principal repayments.2,640,000 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.23,641 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (98,558) Change in Net Position of Governmental Activities 2,364,133 The accompanying notes are in integral part of these financial statements. C4 6/4/2013 Enterprise Fund -Enterprise Fund -Governmental Timber Ridge Dispatch Ac tivities - Af fordable Housing Services Internal Corporation Fund TOTAL Service Funds Assets: Current Assets: Equity in pooled cash and investments - 1,246,376 1,246,376 3,228,373 Cash and cash equivalents - Unrestricted 899,594 - 899,594 - Accounts receivable , net of allowance for uncollectibles 14,002 363 14,365 9,411 Inventory - - - 291,385 Prepaid expenses 25,199 - 25,199 - Total Current Assets 938,795 1,246,739 2,185,534 3,529,169 Non-current Assets: Cash and cash equivalents - Restricted 1,612,825 - 1,612,825 - Property, plant, and equipment, net of accumulated depreciation 15,390,170 1,299,049 16,689,219 3,306,864 Total Non-current Assets 17,002,995 1,299,049 18,302,044 3,306,864 Total Assets 17,941,790 2,545,788 20,487,578 6,836,033 Deferred Outflows of Resources: Bond issue costs, net of accumulated amortization 396,458 - 396,458 - Total Deferred Outflows of Resources 396,458 - 396,458 - Liabilities: Current Liabilities: Accounts payable 63,984 18,509 82,493 465,069 Tenant security deposits 74,025 - 74,025 - Unearned revenue 4,464 - 4,464 - Town of Vail, Colorado Proprietary Funds Statement of Net Position December 31, 2012 Business-type Activities The accompanying notes are an integral part of these financial statements. C5 Unearned revenue 4,464 - 4,464 - Accrued interest payable 241,747 - 241,747 - Accrued salaries and wages - 61,674 61,674 38,623 Current portion of bonds payable 500,000 - 500,000 - Current portion of compensated absences - 23,848 23,848 17,158 Total Current Liabilities 884,220 104,031 988,251 520,850 Non-current Liabilities: Bonds payable, net of current portion 16,765,000 - 16,765,000 - Notes payable 1,900,000 - 1,900,000 - Compensated absences, net of current portion - 35,772 35,772 25,736 Total Non-current Liabilities 18,665,000 35,772 18,700,772 25,736 Total Liabilities 19,549,220 139,803 19,689,023 546,586 Net Position (Deficit): Net investment in capital assets (2,874,830) 1,299,049 (1,575,781) 3,306,864 Unrestricted 1,663,858 1,106,936 2,770,794 2,982,583 Total Net Position (Deficit)(1,210,972) 2,405,985 1,195,013 6,289,447 The accompanying notes are an integral part of these financial statements. C5 6/4/2013 Enterprise Fund -Enterprise Fund -Governmental Timber RidgeDispatch Activities - Affordable HousingServices Internal CorporationFundTOTAL Service Funds Operating Revenues: Charges for services - Internal- 572,706 572,706 5,635,546 Charges for services - External- 1,171,062 1,171,062 434,709 Rent1,659,060 - 1,659,060 - Laundry room lease20,790 - 20,790 - Insurance reimbursements- - - 132,548 Other14,420 417 14,837 27,856 Total Operating Revenues 1,694,270 1,744,185 3,438,455 6,230,659 Operating Expenses: Operations 712,234 2,210,307 2,922,541 2,355,343 Health claims and premiums- - - 3,644,351 Depreciation526,910 256,771 783,681 632,371 Total Operating Expenses 1,239,144 2,467,078 3,706,222 6,632,065 Operating Income (Loss)455,126 (722,893) (267,767) (401,406) Non-Operating Revenues (Expenses): Intergovernmental revenues- 744,156 744,156 - Gain (loss) on disposal of assets- - - 148,976 Investment income3,652 7,688 11,340 23,518 Interest expense(62,527) - (62,527) - Financing fees(362,598) - (362,598) - Amortization of bond issue costs(62,479) - (62,479) - O()(8392)18 26892 129 Town of Vail, Colorado Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Position For the Year Ended December 31, 2012 Business-type Activities The accompanying notes are an integral part of these financial statements. C6 Total Non-Operating Revenues (Expenses)(483,952) 751,844 267,892 172,494 Income (Loss) Before Capital Contributions (28,826) 28,951 125 (228,912) Capital Contributions, Net - - - (86,342) Change in Net Position (28,826) 28,951 125 (315,254) Net Position (Deficit) - January 1 (1,182,146) 2,377,036 1,194,890 6,604,701 Net Position (Deficit) - December 31 (1,210,972) 2,405,987 1,195,015 6,289,447 The accompanying notes are an integral part of these financial statements. C6 6/4/2013 Enterprise Fund -Enterprise Fund -Governmental Timber RidgeDispatchActivities - Affordable HousingServicesInternal CorporationFundTOTALService Funds Cash Flows From Operating Activities: Cash received from other funds- 572,706 572,706 5,635,546 Cash received from tenants for rent1,651,834 - 1,651,834 - Cash received from (refunded to) tenants for security deposits, net5,705 - 5,705 - Other cash receipts35,282 1,171,479 1,206,761 815,634 Cash paid for goods and services(691,587) (981,445) (1,673,032) (4,851,138) Cash paid to employees- (1,709,947) (1,709,947) (955,113) Net Cash Provided (Used) by Operating Activities 1,001,234 (947,207) 54,027 644,929 Cash Flows From Non-Capital Financing Activities: Cash received from operating grants- 744,156 744,156 - Net Cash Provided by Non-Capital Financing Activities - 744,156 744,156 - Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets- - - 174,848 Principal repaid on bonds and notes(475,000) - (475,000) - Cash drawn on line of credit34,714 - 34,714 - Repayments of amounts drawn on line of credit(34,714) - (34,714) - Interest paid (34,714) - (34,714) - Financing fees paid(371,690) - (371,690) - Bond Issuance costs paid(64,477) - (64,477) - Acquisition and construction of capital assets(236,596) (276,014) (512,610) (527,846) Net Cash (Used) by Capital and Related Financing Activities (1,182,477) (276,014) (1,458,491) (352,998) Cash Flows From Investing Activities: Interest on investments3,651 7,688 11,339 23,518 Net Cash Provided by Investing Activities 3,651 7,688 11,339 23,518 Net Increase (Decrease) in Cash and Cash Equivalents (177,592) (471,376) (648,968) 315,449 Cash and Cash Equivalents - Beginning 2,690,011 1,717,753 4,407,764 2,999,266 ChdChEiltEdi 2512419 1246377 3758796 3314715 Town of Vail, Colorado Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2012 Business-type Activities The accompanying notes are an integral part of these financial statements. C7 Cash and Cash Equivalents - Ending 2,512,419 1,246,377 3,758,796 3,314,715 Cash and Cash Equivalents - End of Period is Comprised of: Equity in pooled cash and investments- 1,246,377 1,246,377 3,314,715 Cash and cash equivalents - Unrestricted899,594 - 899,594 - Cash and cash equivalents - Restricted1,612,825 - 1,612,825 - Total - Cash and Cash Equivalents 2,512,419 1,246,377 3,758,796 3,314,715 Reconciliation of Operating (Loss) to Net Cash Provided by Operating Activities: Operating Income/(Loss)455,126 (722,893) (267,767) (401,406) Adjustments: Depreciation 526,910 256,771 783,681 632,371 (Increase) decrease in accounts receivable(9,246) - (9,246) 220,521 (Increase) decrease in inventory- - - (5,683) (Increase) decrease in prepaid expenses(159) - (159) - Increase (decrease) in accounts payable19,672 (469,133) (449,461) 216,433 Increase (decrease) in other liabilities8,931 - 8,931 - Increase (decreases) in accrued wages and benefits- (11,952) (11,952) (17,307) Total Adjustments 546,108 (224,314) 321,794 1,046,335 Net Cash Provided (Used) by Operating Activities 1,001,234 (947,207) 54,027 644,929 The accompanying notes are an integral part of these financial statements. C7 6/4/2013 Deferred Pension Compensation Trust Plan Assets: Cash and investments - Restricted 45,400,138 10,208,820 Loans to participants 505,498 - Total Assets 45,905,636 10,208,820 Net Position: Held in trust for pension benefits and other purposes 45,905,636 10,208,820 Total Net Position 45,905,636 10,208,820 Town of Vail, Colorado Fiduciary Funds Statement of Fiduciary Net Position December 31, 2012 The accompanying notes are an integral part of these financial statements. C8 The accompanying notes are an integral part of these financial statements. C8 6/4/2013 Deferred Pension Compensation Trust Plan Additions: Contributions 3,137,438 795,865 Investment Income / (Loss)5,128,096 1,032,911 Total Additions 8,265,534 1,828,776 Deductions: Professional fees 51,267 15 Benefits paid 5,037,369 294,533 Total Deductions 5,088,636 294,548 Change in Net Position 3,176,898 1,534,228 Net Position - January 1 42,728,738 8,674,592 Net Position - December 31 45,905,636 10,208,820 Town of Vail, Colorado Fiduciary Funds Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2012 The accompanying notes are an integral part of these financial statements C9 The accompanying notes are an integral part of these financial statements C9 6/4/2013 NOTES TO THE FINANCIAL STATEMENTS 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 D1 I. Summary of Significant Accounting Policies The Town of Vail, Colorado (the “Town”) was incorporated in 1972, under the provisions of Article XX of the Colorado Constitution and Municipal Home Rule Act of 1971. The Town operates under 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). The more significant accounting policies established by GAAP used by the Town are discussed below. A. Reporting Entity The reporting entity consists of (a) the primary government; i.e., the Town, and (b) organizations for which the Town is financially accountable. The Town is considered financially accountable for legally separate organizations if it is able to appoint a voting majority of an organization's governing body and is either able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the Town. Consideration is also given to other organizations which are fiscally dependent; i.e., unable to adopt a budget, levy taxes, or issue debt without approval by the Town. Organizations for which the nature and significance of their relationship with the Town are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete are also included in the reporting entity. The accompanying financial statements present the primary government and its component units; entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the Town’s operations. There are three blended component units reported in the Town’s financial statements: Vail Local Marketing District (the “District”), Timber Ridge Affordable Housing Corporation (the “Corporation”), and Vail Reinvestment Authority (the “Authority”). The financial statements of theses entities can be obtained from the Town’s administrative offices. A fourth blended component unit, the Town of Vail General Improvement District No. 1, is a dormant entity and, therefore, has no financial statements to report. 1. Vail Local Marketing District The District was authorized on November 2, 1999 by a general election that established a 1.4% tax on lodging within the Town’s boundaries, beginning January 1, 2000. Proceeds from the tax are to be used for organization, management, promotion, and marketing of public events, for business recruitment, and for tourism promotion. Town Council members also act as the District’s Board of Directors. The District is reported as a special revenue fund. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D2 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 employed in the Town or Eagle County, Colorado. The Corporation owns and operates, exclusively on behalf of and for the benefit of the Town, a 198-unit rental housing project (the “Project”) located in the Town. The formation of the Corporation was approved by the Town, and its operations are governed by a Board of Directors comprised, as of March 2005, of members of the Town’s management team. Previously, the Board was comprised solely of members of the Town Council. Upon dissolution of the Corporation and retirement of all liabilities, all property of the Corporation is to be transferred to the Town. The acquisition of the Project was financed through the issuance of revenue bonds and a note payable to the Town. While the Town is not legally obligated to pay the indebtedness of the Corporation, the Town has agreed to consider providing funds, if needed, to the Corporation to make the scheduled debt service payments of the Corporation. The Town has a right to obtain title to the Project at any time by defeasing all outstanding bonds of the Corporation. The Corporation is reported as an enterprise fund. The Corporation’s total expenses exceeded revenues by $28,826 for 2012. This adds to the Corporation’s $1,182,146 deficit net assets balance through December 31, 2011. The net asset deficit totals $1,210,972 as of December 31, 2012. Since the inception of operations, the Corporation incurred mold remediation costs totaling $1,417,292; of which the majority of expenses were incurred prior to 2007. As of January 2007, all 198 units at the Project had been renovated. In addition to limitations on the Corporation’s revenue base, the Corporation has substantial long-term debt obligations. As detailed in Note IV.G.1., a significant portion of the Corporation’s bonds currently bears 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 V. F. below, has limited the Corporation’s effective interest rate on the 2003A Bonds to 5.5% per annum through July 18, 2012 and to 0.5% per annum through July 17, 2013. While short-term interest rates have stabilized below the current rate cap threshold, any significant increase in rates could have an adverse impact on the Corporation’s cash flow. At the time of purchase, the Town advanced the Corporation $1,000,000 of the purchase price of the property. During 2005 and 2006, the Corporation was advanced $700,000 and $200,000 respectively, by the Town. This additional funding helped improve the Corporation’s year-end liquidity position. There have been no additional advances from the Town. In 2007, the Board commissioned an engineering study and began a capital maintenance and replacement program using over $500,000 from the Replacement Reserve Fund for major improvements to the property. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D3 I. Summary of Significant Accounting Policies (continued) A. Reporting Entity (continued) 3. Vail Reinvestment Authority The Authority was created on November 4, 2003 pursuant to the Colorado Urban Renewal Law (C.R.S. 31-25-1) to oversee development and redevelopment of identified blighted areas within the Town. The Town Council approved the formation of the Authority at a public hearing, and filed applicable certification of compliance with the Division of Local Government. Its operations are governed by a Board of Commissioners comprised solely of members of the Town Council. The Authority is reported as a special revenue fund. 4. Town of Vail General Improvement District No. 1 On October 3, 2006, the Town 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 District’s facilities should the Solaris Metropolitan District fail to do so. As of December 31, 2012, the District had not begun operations or imposed a mill levy, resulting in no financial statements to be reported. B. Government-wide and Fund Financial Statements The Town’s basic financial statements include both government-wide (reporting the Town as a whole) and fund financial statements (reporting the Town’s major funds). Government-wide financial statements report on information of all of the non-fiduciary activities of the Town and its component units. Both the government-wide and fund financial statements categorize primary activities as either governmental or business- type. The Town’s public safety, public works and transportation, culture and recreation, economic development, and administration functions are classified as governmental activities. The Corporation and emergency dispatch services of the Town are classified as business-type activities. The government-wide Statement of Activities reports both the gross and net cost of each of the Town’s governmental functions and business-type activities. The governmental functions are also supported by general government revenues (sales taxes, property and specific ownership taxes, investment earnings, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, operating and capital grants. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D4 I. Summary of Significant Accounting Policies (continued) B. Government-wide and Fund Financial Statements (continued) Program revenues must be directly associated with the governmental function or a business-type activity. Operating grants include operating-specific and discretionary (either operating or capital) grants while the capital grants column reflects capital-specific grants. The government-wide focus is on the sustainability of the Town as an entity and the change in the Town’s net assets resulting from the current year’s activities. C. Fund Financial Statements The financial transactions of the Town are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self- balancing accounts that comprises its assets, liabilities, fund equity, revenues and expenditures/expenses. The fund focus is on current available resources and budget compliance. The Town reports the following major governmental funds: The General Fund is the Town’s primary operating fund. It accounts for all financial resources of the Town, except those required to be accounted for in another fund. Resources restricted within this fund relate to TABOR reserve requirements (see Note III.E) and Police Confiscation funds. The Capital Projects Fund accounts for and reports financial resources that are restricted by outside parties (i.e., a portion of the Town’s sales tax as well as restricted intergovernmental grants and awards received) as well as amounts committed by Council for expenditures of capital outlay, including the acquisition or construction of capital facilities and other capital assets. It excludes those types of capital-related cash outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations, or other governments. Real Estate Transfer Tax Fund is used to account for the collection of a real estate transfer tax which is specifically restricted per Town ordinance for acquiring, maintaining, and improving real property for parks, recreation, open space and for supporting sustainable environmental practices. The Conference Center Fund was established to account for the collection of a sales tax and public accommodations tax which were specifically restricted for the financing of the construction and operations of a conference center in the Town. The conference center taxes were rescinded by election in November 2005. Voters elected in November 2011, to authorize use of the funds for specific capital projects including the clubhouse at the Vail golf course and Nordic center, the Ford Park athletic fields, and improvements to the Gerald R. Ford amphitheater. Work began on these projects during 2012. 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 accounts for collection of lodging taxes, which are restricted for use for the activities of the District. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D5 I. Summary of Significant Accounting Policies (continued) C. Fund Financial Statements (continued) The Vail Reinvestment Authority accounts for the collection of Tax Increment Financing revenues which are restricted for use for the activities of the Authority. The Debt Service Fund accounts for resources that are restricted to expenditure for principal and interest that have been legally mandated, as well as the accumulation for resources for, and the payment of, long-term obligation debt principal, interest, and related costs. The Town reports the following major proprietary or business-type funds: Timber Ridge Affordable Housing Corporation accounts for the activities of the Corporation. The Dispatch Services Fund accounts for the emergency dispatch services provided by the Town within Eagle County, Colorado. Additionally, the Town reports the following fund types: Internal service funds account for the repair and maintenance costs and purchase of Town vehicles and equipment, excluding buses and fire trucks. In addition, internal service funds are used to account for the health insurance plan provided to Town employees. Trust funds are used to account for the accumulation of resources for pension benefit payments to qualified Town employees and to account for assets held for employees in accordance with the provisions of Internal Revenue Code section 457. No budget is adopted for the Town’s trust funds. D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Measurement focus refers to whether financial statements measure changes in current resources only (current financial focus) or changes in both current and long-term resources (long-term economic focus). Basis of accounting refers to the point at which revenues, expenditures, or expenses are recognized in the accounts and reported in the financial statements. Financial statement presentation refers to classification of revenues by source and expenses by function. 1. Long-term Economic Focus and Accrual Basis Both governmental and business-type activities in the government-wide financial statements and the proprietary and fiduciary fund financial statements use the 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. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D6 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. The Town considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year- end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures when due. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. 3. Financial Statement Presentation As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are payments where the amounts are reasonably equivalent to the value of the interfund services provided and other charges between the various functions of the Town. Elimination of these charges would distort the direct costs and program revenues are reported. Amounts reported as program revenues include 1) charges to customers and applicants for goods, services or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenue of the Town’s enterprise funds are rents from individuals employed in the Town and charges for services related to emergency dispatch. Operating expenses for the enterprise fund includes operating expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. E. Financial Statement Accounts 1. Equity in Pooled Cash and Investments The Town has a policy of central cash management whereby cash balances of each of the Town’s funds are pooled in and invested in certain investments for all funds except the Pension Trust Fund and the Deferred Compensation Plan Fund. Additionally, the component units do not participate in the Town’s central cash management. Equity in pooled cash and investments include demand deposits, short-term investments with original maturities of three months or less from the date of acquisition, and long-term investments in U.S. government obligations. Investments are stated at fair market value. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D7 I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 2. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and investments with original maturities of three months or less from the date of acquisition. Cash equivalents are both readily convertible to cash and are so near their maturity they present insignificant risk of change in value due to interest rate changes. Restricted cash and cash equivalents represent certain proceeds of debt issuances, as well as certain resources set aside for their repayments because their use is limited by the applicable covenants. Restricted assets also include certain deposits that have been limited as to usage pursuant to escrow and similar agreements. 3. Receivables Receivables are reported net of an allowance for uncollectible accounts. Loans receivable in governmental funds consist principally of housing loans that are generally not expected or scheduled to be collected in the subsequent year 4. Inventory Inventory is valued at cost using the first-in / first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. 5. Prepaid Items Payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements. 6. Interfund Transactions Interfund services provided and used 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 “due from other funds” or “due to other funds” on the balance sheet when they are expected to be liquidated within one year. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances”. If the receivable or payable is not expected to be liquidated after one year, it is classified as “advances to other funds” or “advances from other funds”. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D8 I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 7. Capital Assets Capital assets, which include land, buildings, improvements, equipment, vehicles, and infrastructure assets, are reported in the applicable governmental or business- type activity columns in the government-wide financial statements. Capital assets are defined by the Town as assets with an initial cost of $5,000 or more and an estimated useful life in excess of one year. Such assets are recorded at cost where historical records are available and at an estimated historical cost where no historical record exists. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Capital outlay for projects is capitalized as projects are constructed. Costs related to the construction of assets include interest, engineering, legal, surveying, and landscaping that were incurred from the beginning of construction until the assets were substantially complete are capitalized. Capital assets (excluding land and art) are depreciated using the straight-line method, over the estimated useful life. 8. Compensated Absences Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as expenditure and a fund liability of the governmental fund that will pay it. Amounts of vested or accumulated vacation leave that are not expected to be liquidated with expendable available financial resources are reported in the governmental activities column in the government-wide financial statements. Vested or accumulated vacation leave of the proprietary fund type is recorded as an expense and liability of that fund as the benefits accrue to employees. In accordance with the provisions of GASB Statement No. 16, Accounting for Compensated Absences, no liability is recorded for non- vesting accumulating rights to receive sick pay benefits. After the completion of ten years of full-time service, employees are eligible for a cash or gift benefit. The estimated liability for all eligible employees is recorded in governmental activities in the Statement of Net Position, as a component of compensated absences. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D9 I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts (continued) 9. Deferred Outflows and Inflows of Resources Deferred outflows of resources represent a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expenses/expenditures) until then. The Town has one item that qualifies for reporting under this category on the government-wide Statement of Net Position, issuance costs. Issuance costs for long-term bonds and debt payable are recorded and amortized over the term to maturity of the debt, using the straight-line method for governmental activities. The Corporation and the Authority use the bonds outstanding method, which approximates the effective interest method, to amortize these costs. Deferred inflows of resources represent an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The Town has only one item that qualifies for reporting in this category, unavailable revenue from property taxes, reported in the governmental balance sheet and on the Statement of Net Position. Property taxes are assessed in one year as a lien on the property, but not collected by the governmental unit until the subsequent year. Therefore, these amounts are deferred and recognized as an inflow from resources in the period that amounts become available. 10. Bond Premiums and Discounts Bonds payable are reported net of the applicable bond premium or discount. No amortization was taken on these premiums or discounts in the first year. These premiums and discounts are amortized over the life of the applicable bonds using the bond outstanding method. 11. Unearned Revenue For governmental funds, unearned revenues arise when potential revenue does not meet both the “measurable” and “available” criteria for recognition in the current period. For proprietary funds, unearned 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 unearned revenue is removed and revenue is recognized. 12. Fund Equity Governmental accounting standards establish fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. Fund balance classifications include Non-spendable, Restricted, Committed, Assigned, and Unassigned. These classifications reflect not only the nature of the funds, but also provide clarity to the level of restriction placed upon fund balance. Fund balance can have different levels of restraint, such as external versus internal compliance requirements. Unassigned fund balance is a residual classification within the General Fund. The General Fund should be the only fund that reports a positive unassigned balance. In all other funds, unassigned is limited to negative residual fund balance. For further details of the various fund balance classifications refer to Note IV.L. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D10 I. Summary of Significant Accounting Policies (continued) F. Significant Accounting Policies 1. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Town’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenditures or expenses during the reporting period. Actual results could differ from those estimates. 2. Credit Risk The receivables of the various funds of the Town are primarily due from other governments. Management believes that the credit risk related to the receivables is minimal. 3. Restricted and Unrestricted Resources When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed. II. Reconciliation of Government-wide and Fund Financial Statements A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position The governmental fund Balance Sheet includes reconciliation between the fund balance of total governmental funds and net position of governmental activities as reported in the government-wide Statement of Net Position. 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 $109,222,818 difference is related to property, plant, and equipment of $265,969,868 less accumulated depreciation of $156,747,050. Another element of that reconciliation explains “Other long-term assets and unearned charges are not available for current period expenditures and therefore are not reported in the funds”. This $1,011,876 difference is bond issue costs of $500,356 less accumulated amortization of $302,595; pension forfeitures of $575,147; and interest receivable of $238,968. Net assets totaling $6,289,447 of internal service funds used by management to charge the costs of heavy equipment and health insurance to individual funds are included in the governmental activities in the Statement of Net Position. Additionally, the reconciliation states that long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. This $12,661,618 difference represents bonds and notes payable of $11,245,000; accrued compensated absences of $1,328,080; premium on issued debt of $38,100; and interest payable of $50,438. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D11 II. Reconciliation of Government-wide and Fund Financial Statements (continued) 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 reported in the government-wide Statement of Activities. One element of that reconciliation explains “Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This $6,607,262 difference is comprised of governmental funds (other than internal service funds) capital outlay of $17,404,303; less depreciation expense of $10,795,447 and a gain on the sale of assets of $1,594. III. Stewardship, Compliance, and Accountability A. Budgetary Information An annual budget and appropriation ordinance is adopted by Town Council in accordance with the Town’s Home Rule Charter. Budgets are prepared on the basis of GAAP for all funds except the Heavy Equipment Fund and Dispatch Services Fund. As required by Colorado Statutes, all funds have legally adopted budgets and appropriations. The total expenditures for each fund may not exceed the amounts appropriated. Appropriations for a fund may be increased if unanticipated revenues offset them. All appropriations lapse at year-end. The budgets for these funds have been adopted on a non-GAAP budget and are reconciled to GAAP below: HeavyDispatch EquipmentServices FundFund Change in Net Position - Budget Basis129,995$ 564$ add/(less): Contribution to other funds(86,342) - Change in compensated absences14,266 9,143 Capitalized assets527,846 276,014 Depreciation(632,371) (256,771) Net book value of disposed assets(25,872) - Change in Net Position - GAAP Basis (72,478)$ 28,950$ The Town followed these procedures in preparing, approving, and enacting its budget for 2012. 1. For the 2012 budget year, prior to August 25, 2011, the County Assessor sent the Town a certified assessed valuation of all taxable property within the Town’s boundaries. 2. Prior to the end of the 2011 fiscal year, the Town Manager submitted to the Town Council a budget and accompanying message. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D12 III. Stewardship, Compliance, and Accountability (continued) A. Budgetary Information (continued) 3. Prior to December 15, 2011, the Town computed and certified to the County Commissioners a levy rate that derived the necessary property taxes as computed in the proposed budget. 4. After a required publication of “Notice of Proposed Budget”, the Town adopted the proposed budget and an appropriation ordinance which legally appropriated expenditures for the upcoming year. 5. After adoption of the budget ordinance, the Town may make the following changes: a) transfer appropriated money between funds; b) approve supplemental appropriations to the extent of revenues in excess of those estimated in the budget; c) approve emergency appropriations; and d) reduce appropriations for which originally estimated revenues are insufficient. Taxes levied in one year are collected in the succeeding year. Thus, taxes certified in 2011 were collected in 2012 and taxes certified in 2012 will be collected in 2013. Taxes are due on January 1 in the year of collection; however, they may be paid in either one installment (no later than April 30) or two equal installments (not later than February 28 and June 15) without interest or penalty. Taxes that are not paid within the prescribed time bear interest at the rate of one percent (1%) per month until paid. Unpaid amounts and the accrued interest thereon become delinquent on June 16. During the year, supplemental appropriations were necessary. The budgetary comparison statements reflect the original budget and the final budget after legally authorized revisions were made. B. Budgetary Information – Vail Local Marketing District The District’s budget timetable varies from the Town’s. The District followed these procedures in preparing, approving, and enacting its budget for 2012. 1. On or before September 30, 2011, the District must submit to the Board a recommended budget that details the revenues necessary to meet the District's operating requirements. This was done on September 20, 2011. 2. After appropriate public notice and a required public hearing, the Board must adopt the proposed budget and a resolution that legally appropriated expenditures for the upcoming year on or before December 5, 2011. The Board adopted the 2012 budget on October 18, 2011. 3. After adoption of the initial budget resolution, the District may make the following changes: a) approve supplemental appropriations to the extent of revenues in excess of those estimated in the budget; b) approve emergency appropriations; and c) reduce appropriations for which originally estimated revenues are insufficient. During the year, supplemental appropriations were necessary. The budgetary comparison statements reflect the original budget and the final budget after legally authorized revisions were made. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D13 III. Stewardship, Compliance, and Accountability (continued) C. Deficit Net Assets – Timber Ridge Affordable Housing Corporation The Corporation had a deficit in net position at December 31, 2012 of $1,210,972. D. Compliance with Trust Indentures – Timber Ridge Affordable Housing Corporation The bond indenture for the Corporation’s Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A (the “2003A Bonds”), establishes initial funding of a bond reserve fund at $317,094 and required additional funding during 2004. At December 31, 2012 the Corporation’s balance in the Bond Reserve Fund was in compliance with the Bond Reserve Requirement of $595,157 established by the 2003A Indenture. As described in Note IV.K., the Reimbursement Agreement with U.S. Bank requires the Corporation to fund a Replacement Reserve in 2003 and annually thereafter. For 2012, the minimum funding required for the Replacement Reserve was met by the Corporation. The 2003A Indenture imposes financial ratios relating to debt service coverage. At December 31, 2012, the Corporation met the minimum debt service coverage ratios under the terms of the 2003A Indenture, as amended by the modification to the Reimbursement Agreement. E. TABOR Amendment In November 1992, Colorado voters amended Article X of the Colorado Constitution by adding Section 20, commonly known as the Taxpayer's Bill of Rights (“TABOR”). TABOR contains revenue, spending, tax and debt limitations that apply to the State of Colorado and local governments. TABOR requires, with certain exceptions, advance voter approval for any new tax, tax rate increase, mill levy above that for the prior year, extension of any expiring tax, or tax policy change directly causing a net tax revenue gain to any local government. 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, 2012 fund balance in the General Fund for this purpose in the amount of $1,613,000 which is the approximate required reserve. The initial base for local government spending and revenue limits is December 31, 1992 fiscal year spending. Future spending and revenue limits are determined based on the prior year's fiscal year spending adjusted for inflation in the prior calendar year plus annual local growth. Fiscal year spending is generally defined as expenditures and reserve increases with certain exceptions. Revenue, if any, in excess of the fiscal year spending limit must be refunded in the next fiscal year unless voters approve retention of such revenue. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D14 III. Stewardship, Compliance, and Accountability (continued) E. TABOR Amendment (continued) On November 16, 1993, voters of the Town approved the collection and expenditure of all revenues generated, including reduction in debt service during 1993 and each subsequent year (not including revenue generated from ad valorem property taxes) without any increase in such tax rates and the expenditure of such revenues for debt service, municipal operations, and capital projects, effective January 1, 1994. On November 7, 2000, the Town’s electorate approved the collection and expenditure of all revenues received from ad valorem property taxes levied in 2000 and each year thereafter. The remaining restrictions of the TABOR Amendment apply, which are: • Voter approval of all new taxes and tax rate increases; • Voter approval for new or additional Town debt; • No increase or imposition of a new real estate transfer tax; and, • All election requirements remain in effect. The Town's management believes it is in compliance with the financial provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of its provisions, including the interpretation of how to calculate fiscal year spending limits, will require judicial interpretation. F. TABOR Amendment – Vail Local Marketing District As required by TABOR, the District has reserved $74,000 of its fund balance for emergencies, which is the approximate required reserve at December 31, 2012. The ballot question approved by voters on November 2, 1999, which established the 1.4% tax on lodging within the Town’s boundaries also authorized the District to collect and spend the proceeds of the lodging tax, investment income, and all other revenues, without regard to the limitations imposed by TABOR, effective January 1, 2000. The District’s management believes it is in compliance with the financial provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of its provisions will require judicial interpretation. IV. Detailed Notes on all Funds A. Cash and Investments 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. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D15 IV. Detailed Notes on all Funds (continued) A. Cash and Investments (continued) The Town’s deposits and certificates of deposit are entirely covered by federal depository insurance (FDIC) or by collateral held under Colorado Public Deposit Protection Act (“PDPA”). The FDIC insures the first $250,000 of the Town’s interest bearing deposits at each financial institution. Deposit balances over $250,000 are collateralized as required by PDPA. As of year end, the bank balance of the Town’s deposits was $10,401,394. The difference between the bank balance and book balance is primarily due to deposits in transit or outstanding checks at December 31, 2012. At year end, the Town had the following investments and maturities: Carrying TypeRating Maturities Value Deposits: Cash on hand 10,310$ Demand deposits25,903,146 Certificates of deposit<1 year1,739,107 Certificates of deposit<5 years12,004,418 Total deposits39,656,981$ Investments: US Agencies - FHLM, FHLB, FNMAAAA<1 year- US Agencies - FHLMC, FHLB, FNMAAA+<5 years11,669,506$ Mortgage poolsAA+N/A6,118,645 ColotrustAAAmN/A22,586,207 Pension and Section 457 investmentsN/AN/A56,184,634 Total investments96,558,992 Total deposits and investments136,215,973$ Reconciliation to Statement of Net Position: Equity in pooled cash and investments64,551,417$ Cash and cash equivalents - Unrestricted8,594,426 Cash and cash equivalents - Restricted7,461,172 Fiduciary Funds55,608,958 Total 136,215,973$ Pools. The Town has invested in the Colorado Government Liquid Asset Trust (“Colotrust”), which is an investment vehicle established for local government entities in Colorado to pool surplus funds. They operate similarly to a money market fund and each share is equal in value to $1. Investments of the trusts consist of U.S. Treasury bills, notes and note strips, and repurchase agreements collateralized by U.S. Treasury securities. Colotrust is rated AAAm by Standard and Poor’s. Interest Rate Risk. As a means of limiting its exposure to interest rate risk, the Town diversifies its investments by security type and institution, and limits holdings in any one type of investment with any one issuer. The Town coordinates its investments maturities to closely match cash flow needs and invests primarily in securities with a maximum investment term less than five years from the purchase date. As a result of the limited length of maturities the Town has limited its interest rate risk. Credit Risk. The Town’s general investment policy is to apply the prudent-person rule; investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and, in general, avoid speculative investments. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D16 IV. Detailed Notes on all Funds (continued) A. Cash and Investments (continued) Concentration of Credit Risk. The Town diversifies its investments by security type and institution. Credit quality distribution for investments, with credit exposure as a percentage of total investments are as follows at year end: Investment TypeRatingPercentage ColotrustAAAm28% Investments in the Deferred Compensation Plan and the Pension Trust Funds are held by trustees and are not categorized because they are not evidenced by specific securities that exist in physical or book form. B. Receivables Receivables as of year-end for the Town’s funds, including applicable allowances for uncollectible accounts, are as follows: CapitalReal EstateVailVail Local GeneralProjectsTransferMarketingMarketing FundFundTax FundFundDistrict Receivables: Property taxes4,057,451$ - - - - Other taxes765,782 - 317,830 - 478,249 Other governments47,655 47,494 2,023 - - Other371,127 3,685,025 14,788 - - Gross Receivables5,242,015 3,732,519 334,641 - 478,249 Less: Allowance for uncollectibles(1,000) - - - - Net Receivables 5,241,015$ 3,732,519 334,641 - 478,249 VailHeavy Rein-Equip-DispatchHealth TimbervestmentmentServicesInsurance RidgeAuthorityFundFundFundTotal Receivables: Property taxes-$ - - - - 4,057,451 Other taxes- - - - - 1,561,861 Other governments- - - - - 97,172 Other14,002 - 6,830 363 2,581 4,094,716 Gross Receivables14,002 - 6,830 363 2,581 9,811,200 Less: Allowance for uncollectibles- - - - - (1,000) Net Receivables 14,002$ - 6,830 363 2,581 9,810,200 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D17 IV. Detailed Notes on all Funds (continued) B. Receivables (continued) Governmental funds report unearned revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Total unearned revenue for governmental activities totaled $765,516 and is comprised of the following: GeneralCapital Project FundFund Unearned revenues: Business licenses123,607$ -$ Library grants34,453 - Police programs35,673 - Construction projects- 571,783 193,733$ 571,783$ Unearned revenue for construction projects relates to $416,485 of funds collected from Holy Cross Energy for the community enhancement fund which is used to place utilities underground. The other $155,298 was collected from developers for road improvements. The revenue will be recognized in the year the money is spent. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D18 IV. Detailed Notes on all Funds (continued) C. Capital Assets Capital asset activity for the year ended December 31, 2012 was as follows: BeginningEnding BalanceIncreasesDecreasesBalance Governmental Activities: Capital Assets, Not Being Depreciated: Land28,852,851$ - - 28,852,851 Total Capital Assets, Not Being Depreciated28,852,851 - - 28,852,851 Capital Assets, Being Depreciated: Buildings and improvements90,760,007 4,325,744 (362,716) 94,723,035 Infrastructure and improvements109,895,194 10,301,429 - 120,196,623 Equipment and vehicles 29,937,536 3,304,976 (1,012,172) 32,230,340 Total Capital Assets Being Depreciated230,592,737 17,932,149 (1,374,888) 247,149,998 Less Accumulated Depreciation For: Buildings and improvements(55,431,722) (3,396,676) 362,716 (58,465,682) Infrastructure and improvements(80,303,221) (4,456,171) - (84,759,392) Equipment and vehicles(17,657,827) (3,574,972) 984,706 (20,248,093) Total Accumulated Depreciation(153,392,770) (11,427,819) 1,347,422 (163,473,167) Total Capital Assets Being Depreciated, Net77,199,967 6,504,330 (27,466) 83,676,831 Governmental Activities Capital Assets, Net 106,052,818$ 6,504,330 (27,466) 112,529,682 Business-type Activities Capital Assets, Not Being Depreciated: Land4,399,500$ - - 4,399,500 Total Capital Assets, Not Being Depreciated4,399,500 - - 4,399,500 Capital Assets, Being Depreciated: Buildings and improvements15,673,822 236,596 - 15,910,418 Equipment 3,225,887 276,014 (5,250) 3,496,651 Total Capital Assets Being Depreciated18,899,709 512,610 (5,250) 19,407,069 Less Accumulated Depreciation For: Buildings and improvements(4,399,937) (526,910) - (4,926,847) Equipment (1,938,982) (256,771) 5,250 (2,190,503) Total Accumulated Depreciation(6,338,919) (783,681) 5,250 (7,117,350) Total Capital Assets Being Depreciated, Net12,560,790 (271,071) - 12,289,719 Business-type Activities Capital Assets, Net 16,960,290$ (271,071) - 16,689,219 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D19 IV. Detailed Notes on all Funds (continued) C. Capital Assets (continued) Depreciation expense was charged to functions of the Town as follows: Depreciation on fixed assets is recorded using the following estimated useful lives: Years Buildings 25 - 40 Building improvements7 - 25 Infrastructure 5 - 30 Vehicles5 - 15 Equipment 5 - 10 At December 31, 2012, the Town had $34,072,646 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 At December 21, 2012, the Vail Reinvestment Authority owed the Capital Projects Fund $5,354,864 in connection with several construction projects within the Lionshead district, including the Lionshead Welcome Center, East and West Portals into Lionshead, and a renovation of the Vail Library. During 2012, $52,000 of library grant proceeds was transferred from the General Fund to the Capital Projects Fund and used for audio visual equipment and community room furniture as a part of the Vail Library renovation. The Capital Projects Fund transferred $2,088,347 to the Debt Service Fund for annual debt service payments. Governmental Activities: General government502,968$ Public safety437,870 Public works and transportation9,122,898 Culture and recreation1,364,083 Total Depreciation Expense - Governmental Activities 11,427,819$ Business-type Activities: Dispatch services256,771$ Housing526,910 Total Depreciation - Business-type Activities 783,681$ 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D20 IV. Detailed Notes on all Funds (continued) F. Long-term Liabilities – Governmental Activities The Town has the following long-term debt outstanding for governmental activities: 1. Sales Tax Revenue Refunding Bonds, Series 2002B The Town issued $5,570,000 of Sales Tax Revenue Refunding Bonds dated September 1, 2002 (the “2002B Bonds”). Proceeds from the 2002B Bonds were used to refund outstanding 1992 bonds. The 2002B Bonds matured December, 2012 with no principal outstanding. The interest rate on the 2002B Bonds ranges from 2.5% to 4.0% per annum, and is payable on June 1 and December 1 annually through December 1, 2012. The 2002B 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 2002B Bonds constitute an irrevocable lien (but not an exclusive lien) upon the pledged revenues. 2002B Bonds maturing on or before December 1, 2011 are not subject to prior redemption. 2002B Bonds maturing on or after June 1, 2012 are subject to redemption prior to their maturities, at the option of the Town, in whole or in part, on December 1, 2011 or thereafter, at a redemption price equal to the principal amount redeemed, plus a redemption premium equal to 1% of the principal redeemed, plus accrued interest to the redemption date. 2. Sales Tax Revenue Refunding Bonds, Series 2008 The Town issued $6,320,000 of Sales Tax Revenue Refunding Bonds dated December 1, 2008 (the “2008 Bonds”). Proceeds from the 2008 Bonds were used to refund outstanding 1998A bonds. The interest rate on the 2008 Bonds ranges from 3.5% to 4.0% per annum, and is payable on June 1 and December 1 annually through December 1, 2012. The 2008 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 2008 Bonds constitute an irrevocable lien (but not an exclusive lien) upon the pledged revenues. The 2008 Bonds were not subject to redemption prior to maturity at the option of the Town. The 2008 Bonds matured December 2012 with no principal outstanding. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D21 IV. Detailed Notes on all Funds (continued) F. Long-term Liabilities – Governmental Activities (continued) 3. Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010A The Authority issued $3,670,000 of Tax-Exempt Tax Increment Revenue Bonds dated November 4, 2010 (the “2010A Bonds”). Proceeds from the 2010A Bonds will be used to finance the acquisition, construction, and installation of an urban renewal project(s). The interest rate on the 2010A Bonds ranges from 2.5% to 4% per annum, and is payable June 1 and December 1 annually through June 1, 2018. The 2010A Bonds are special limited obligations of the Authority, equitably and ratably secured by an irrevocable pledge of the Trust Estate, funded by pledged property tax revenues. 2010A Bonds are not subject to redemption prior to maturity at the option of the Authority. 4. Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010B The Authority issued $8,270,000 of Taxable Tax Increment Revenue Bonds (Direct Pay Build America Bonds) dated November 4, 2010 (the “2010B Bonds”). Proceeds from the 2010B Bonds will be used to finance the acquisition, construction, and installation of an urban renewal project(s). The interest rate on the 2010B Bonds ranges from 5.269% to 6.659% per annum, and is payable June 1 and December 1 annually from June 1, 2011 through June 1, 2030. Principal payments are payable June 1 and December 1 annually from June 1, 2019 through June 1, 2030. The Authority will receive a federal subsidy known as the “BAB Credit” equal to 35% of corresponding interest as provided under the American Recovery and Reinvestment Act of 2009. This “BAB Credit” may decrease by 8.7% beginning December 1, 2013 due to federal budget reductions. The 2010B Bonds are special limited obligations of the Authority, equitably and ratably secured by an irrevocable pledge of the Trust Estate, funded by pledged incremental property tax revenues. 2010B Bonds maturing on or before June 1, 2020 are not subject to optional redemption prior to their respective maturity dates. The 2010B Bonds maturing on and after June 1, 2021 are subject to redemption prior to their respective maturity dates at the option of the Authority at a price equal to the principal amount plus accrued interest to the redemption date without a premium. All 2010B Bonds are subject to mandatory sinking fund redemption. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D22 IV. Detailed Notes on all Funds (continued) G. Long-term Liabilities – Business-type Activities The Town has the following long-term debt outstanding for business-type activities: 1. Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A The 2003A Bonds were issued July 15, 2003 in the principal amount of $19,025,000 as limited obligations of the Corporation and not indebtedness of the Town. The 2003A Bonds are payable solely from the rents and other receipts from operation of the Project, net of the Project’s actual operating expenses (the “Pledged Revenues”) and the various reserve funds and other monies pledged under the terms of the 2003A indenture. Certain capitalized terms are further described in the 2003A indenture. The 2003A Bonds bear interest at the Weekly Rate established by George K. Baum & Company (the “Remarketing Agent”) until converted to another “mode”, including a Fixed Rate, by the Corporation. While in any interest rate mode other than a Fixed Rate, the 2003A Bonds are subject to repurchase upon demand by any bondholder at 100% of the outstanding principal amount plus accrued interest. All tendered bonds are then to be subsequently remarketed by the Remarketing Agent. 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. • 2003A Bonds in a Commercial Long-Term Mode - after the following No-Call Period and at the following redemption prices, plus accrued interest: Length of Rate Period No-Call Period Redemption Price Greater than 12 years10 years from the Rate101%, declining 0.5% per Change Date6 months to 100% Greater than 4 years, butUntil 2 years prior to the 100% less than 12 yearsend of the Rate Period Less than or equal toLength of the Rate PeriodNot subject to optional 4 yearsredemption 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D23 IV. Detailed Notes on all Funds (continued) G. Long-term Liabilities – Business-type Activities (continued) 1. Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A (continued) • 2003A bearing a Fixed Rate - after the following No-Call Period and at the following redemption prices, plus accrued interest: Length of Rate Period No-Call Period Redemption Price Greater than 12 years10 years from the101%, declining 0.5% per Conversion Date6 months to 100% Greater than 4 years, butUntil 2 years prior to100% less than 12 yearsMaturity Less than or equal toTerm to MaturityNot subject to optional 4 yearsredemption From the date of issuance through December 31, 2012, the 2003A Bonds have been in Weekly Mode, with interest rates set by the Remarketing Agent. Interest rates on the 2003A Bonds ranged from 0.19% to 0.23% per annum in 2012. At December 31, 2012, the interest rate on the 2003A Bonds was 0.19% per annum; however, the Corporation’s effective interest rate has been limited to 4% through August 1, 2006 and 5.5% thereafter, as provided by the Rate Protection Agreement discussed in Note IV.K. Total interest expense for 2012 incurred in respect of the 2003A Bonds was $34,027. 2. Promissory Note – Town of Vail (the “Town Notes”) In connection with the Corporation’s purchase of the Project, the Town advanced $1,000,000 to the Corporation upon execution of a promissory note. During 2005 and 2006, the Town made additional advances of $700,000 and $200,000, respectively, to the Corporation upon execution of additional promissory notes. At December 31, 2012, the balance outstanding under the terms of these promissory notes (collectively, the “Town Notes”) was $1,900,000. The Town Notes, which bear interest at the rate of 1.5% per annum, mature December 1, 2032. The Town Notes are payable solely from the Pledged Revenues, but the pledge of security interest in the Pledged Revenues is subordinated to the pledge of these same revenues for payment of the 2003A Bonds. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D24 IV. Detailed Notes on all Funds (continued) G. Long-term Liabilities – Business-type Activities (continued) 2. Promissory Note – Town of Vail (the “Town Notes”) (continued) The Town Notes are payable to the extent that the Corporation has determined that excess net revenues of the Project, after provision for necessary operating or capital reserves, have accumulated semi-annually on the business day following debt service on the 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 Indenture) for the 2003A Bonds which is not cured within the prescribed deadlines by the Corporation, U.S. Bank National Association (the “Trustee”) will request that the Town replenish the deficient Bond Reserve Fund, and the Town has agreed to consider such requests but is not obligated to do so. Any funds advanced by the Town to replenish Bond Reserve Funds will be considered additional loans by the Town, subject to the same terms as the original Town Notes. The Town’s failure to replenish any deficiency in the Bond Reserve Funds will not constitute an Event of Default (as defined in the 2003A Indenture) for the 2003A Bonds. The Corporation incurred interest expense totaling $28,500 during 2012 in respect of the Town Notes. At December 31, 2012, the Corporation had accrued a total of $238,968 in interest payable to the Town under the terms of the Town Notes. H. Long-term Liabilities – Compensated Absences The Town has a policy allowing the accumulation of paid vacation and sick leave, subject to certain maximum limits. In accordance with GAAP, the Town’s approximate liability for vacation pay earned by employees and longevity pay at December 31, 2012 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 $3,136,849 at December 31, 2012 has not been reflected in the Town’s financial statements as the amount is partially insured by an independent insurance company and the amounts are not payable at termination. I. Long-term Liabilities – Refunded In prior years, the Town defeased certain general obligations and other bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. The bonds intended to be refunded by the refunding issues remain a contingent liability of the Town until retired; however, they are not included for the purposes of calculating debt limits of the Town. The amount of debt considered defeased cannot be readily determined as of December 31, 2012. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D25 IV. Detailed Notes on all Funds (continued) J. Long-term Liabilities – Activity and Debt Service Schedules Long-term liability activity for the year ended December 31, 2012 was as follows: BeginningEnding Due Within BalanceAdditionsReductionsBalanceOne Year Governmental Activities: Tax-Exempt Refunding Bonds, Series 20081,660,000$ - (1,660,000) - - Deferred amounts: Issuance premium21,058 - (21,058) - - Cost of refunding(10,824) - 10,824 - - Refunding Bonds, Series 2002B535,000 - (535,000) - - Tax-Increment Bonds, Series 2010A3,420,000 - (445,000) 2,975,000 460,000 Tax-Increment Bonds, Series 2010B8,270,000 - - 8,270,000 - Deferred amounts: Issuance premium50,317 - (12,217) 38,100 - Compensated absences1,344,477 26,497 - 1,370,974 548,390 Total Governmental Activities Long-term Liabilities 15,290,028$ 26,497$ (2,662,451)$ 12,654,074$ 1,008,390$ Business-type Activities: Housing Facilities Revenue Bonds: Adjustable Rate, Series 2003A17,740,000$ - (475,000) 17,265,000 500,000 Promissory note1,900,000 - - 1,900,000 - Compensated absences68,762 - (9,142) 59,620 23,848 Total Business-type Activities Long-term Liabilities 19,708,762$ - (484,142) 19,224,620 523,848 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D26 IV. Detailed Notes on all Funds (continued) J. Long-term Liabilities – Activity and Debt Service Schedules (continued) Debt service requirements at December 31, 2012 were as follows: PrincipalInterestTotal Governmental Activities: 2013460,000 605,203 1,065,203 2014475,000 591,178 1,066,178 2015490,000 577,928 1,067,928 2016500,000 564,928 1,064,928 2017515,000 547,753 1,062,753 2018-20222,875,000 2,340,046 5,215,046 2023-20273,470,000 1,397,013 4,867,013 2028-20302,460,000 250,380 2,710,380 Total Governmental Activities 11,245,000$ 6,874,429 18,119,429 Business-type Activities: 2013500,000 32,724 532,724 2014530,000 31,770 561,770 2015560,000 30,758 590,758 2016585,000 29,690 614,690 2017620,000 28,573 648,573 2018-20223,630,000 123,838 3,753,838 2023-20274,715,000 85,258 4,800,258 2028-20328,025,000 605,151 8,630,151 Total Business-type Activities 19,165,000$ 967,762 20,132,762 General obligation bonds issued for governmental activity purposes are 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 $570,000 respectively. K. Credit Facility and Reimbursement Agreement – Timber Ridge Affordable Housing Corporation Certain capitalized terms are defined in the 2003A Bonds Indenture. In connection with the issuance of the 2003A Bonds, an irrevocable, stand-by, direct pay letter of credit (the “Credit Facility”) in the amount of $19,207,432 was established July 17, 2003 by U.S. Bank, National Association (“U.S. Bank”) in favor of the Trustee for the 2003A Bonds. Under the terms of the Credit Facility, up to $19,025,000 may be drawn to pay principal amounts of the 2003A Bonds, and up to $182,432 may be drawn to pay up to 35 days’ accrued interest on the 2003A Bonds at a maximum rate of 10% per annum. Available credit under the Credit Facility will be permanently and proportionately reduced upon notice from the Trustee of redemption of less than all of the 2003A Bonds. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D27 IV. Detailed Notes on all Funds (continued) K. Credit Facility and Reimbursement Agreement – Timber Ridge Affordable Housing Corporation (continued) The Credit Facility expires at the earlier of: a. July 17, 2008, although it automatically renews for successive one-year terms (unless U.S. Bank notifies the Trustee that the Credit Facility has not been renewed); b. 15 days following notice by U.S. Bank requiring payment of all outstanding 2003A Bonds due to Default; c. The date of acceleration or redemption of all 2003A Bonds; d. The second business day after conversion of the 2003A Bonds to a Fixed Mode interest rate; or e. The date of surrender of the Credit Facility for cancellation, as required by the Indenture. Concurrent with the Credit Facility, the Corporation executed a Reimbursement Agreement and a Demand Note in favor of U.S. Bank, evidencing the Corporation’s obligation to repay all advances under the Credit Facility, together with interest on all such draws. All amounts drawn on or charged against the Credit Facility bear interest at the Bank Rate, which is equal to U.S. Bank’s Prime Rate plus 200 Basis Points. The Credit Facility automatically renews each year, subject to the Corporation’s compliance with requirements as to operational performance of the Corporation, provision of certain records to the Trustee, and payment of all fees (including annual stand-by fees equal to 125 Basis Points calculated on the original credit commitment, plus U.S. Bank’s standard fees and charges for processing draws on the Credit Facility). Pursuant to this arrangement, the Corporation incurred financing fees during 2012 totaling $332,942 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 2012, the Corporation drew and repaid $34,714 of advances on the Credit Facility. At December 31, 2012, no balance was outstanding on the Credit Facility. The Reimbursement Agreement imposes the following funding commitments on the Corporation: a. Commencing January 1, 2009, the Corporation is to deposit into the Bond Principal Fund an amount equal to 1/12th of the scheduled principal reductions for the 2003A Bonds, to be used by the Trustee to pay for optional redemptions as provided in the 2003A Indenture. b. $90,000 was paid from the proceeds of issuance of the 2003A Bonds into a Replacement Reserve account. Annually thereafter, the Corporation is to deposit an equal amount increased by 3% per annum into the Replacement Reserve account, with usage of such funds restricted to capital improvements to the Project approved by U.S. Bank. The Replacement Reserve Account is pledged to U.S. Bank and not the owners of the 2003A Bonds. 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. For the year ended December 31, 2012, the Corporation funded the required annual payment of $45,000. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D28 IV. Detailed Notes on all Funds (continued) K. Credit Facility and Reimbursement Agreement – Timber Ridge Affordable Housing Corporation (continued) As required by the Reimbursement Agreement and for as long as the Credit Facility is outstanding, the Corporation is required to have in effect a rate protection agreement at a fixed interest rate acceptable to U.S. Bank in an amount equal to the then-outstanding principal amount of the Credit Facility, with a floating rate payer acceptable to U.S. Bank. The Corporation’s rate protection agreement is subsequently described. L. Fund Balance Disclosures The Town classifies governmental fund balances as follows: Non-spendable – includes fund balance amounts inherently non-spendable since they represent inventories, prepaid items, and long-term portions of loans receivable. Spendable Fund Balance: Restricted – includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors, or amounts constrained due to constitutional provisions or enabling legislation. Committed – includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority, which is the Town Council. The Town’s original budget legislation begins with combining historical data, assessment of needs for the upcoming year and the Town’s platform to review, and/or make changes to each department’s budget. The budget is formally presented to the Town Council via an advertised public process for review, revisions and final approval by year-end. All subsequent budget requests made during the year, after Town Council approval, must be presented via a public process and again approved by Town Council. Assigned – includes spendable fund balance amounts that are intended to be used for specific purposes that are neither considered restricted nor committed. Fund balance may be assigned by Town Council or its management designees. Unassigned – includes residual positive fund balance within the General Fund, which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or assigned for those specific purposes. The Town’s restricted amounts are to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents or contracts that prohibit this, such as grant agreements that require dollar for dollar spending. Additionally, the Town would first use committed, then assigned, and lastly unassigned amounts when expenditures are made. The Town has a minimum fund balance policy of 25% of annual General Fund revenues. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D29 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 employees other than sworn police officers and firefighters; the second plan covers all full time and qualified seasonal employees of the Town’s Police and Fire departments. The plan provisions are the same for both plans. In defined contribution plans, benefits depend solely on amounts contributed to the plans plus investment earnings. Employees are eligible to participate in the plans from the date of employment or the effective date of the plans, January 1, 1983, whichever is later. The plans provide for contributions to be made by the Town of 12.6% of regular compensation for the first year of employment and 17.6% thereafter. For employees hired after April 1, 1986, the Town's contribution is 11.15% of regular compensation for the first year, and 16.15% thereafter. Employees have the option to make voluntary contributions of up to 10% of their compensation. In the event of continued long-term disability of an employee, the Town's disability insurance will continue to make contributions to the plan for the employee through age 60 at the rate on the date of disability. For employees hired before July 1, 1986, vesting of the Town's contributions is 77.5% after the first year of employment with an additional vesting of 7.5% per year through the fourth year, when vesting is 100%. For employees hired after June 30, 1986, vesting of the Town's contributions to the employees is 20% after the first year of employment with additional vesting of 20% per year through the fifth year, when vesting is 100%. If an employee dies, becomes disabled, or attains the age of 60, their entire interest in the plans becomes vested; normal retirement age is 60 with early retirement at age 50 and four years of service. In 1991, the Town established a defined contribution pension plan for seasonal employees who work for the Town longer than 6 weeks. Seasonal employees are required to contribute 6% of regular compensation to the plan and the Town contributes 1.5%. Seasonal employees are 100% vested after their first contribution. Employees covered under the regular and seasonal pension plans do not participate in the Social Security system. The annual pension cost is the Town's contributions less forfeitures from the prior year. The plans' invested assets at December 31, 2012 of $45,400,138 are stated at market value. All earnings, losses, expenses, and changes in the fair market value of the trust fund will be apportioned at least annually among the participants in proportion to each participant's current share of the Trust Investment Fund. The Town has no liability for unfunded future vested employee benefits. The trustees and administrators of the plans are the Retirement Board. The Retirement Board determines investment options made available to participants, in adherence with an adopted investment policy statement. The total amount of the Town’s 2012 covered payroll was $15,094,349 of which $12,953,328 was for permanent employees and $2,141,021 was for seasonal staff. Total 2011 payroll for all Town employees was $16,130,474. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D30 V. Other Information (continued) B. Retirement Savings Plan - Deferred Compensation Plan - IRC 457 The Town offers its employees a deferred compensation plan (the “457 Plan”) created in accordance with Internal Revenue Code section 457. The 457 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 $10,208,820 at December 31, 2012. The assets were invested in mutual funds, as previously described. Pursuant to the Town’s adoption of GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, the 457 Plan has been included in these financial statements as an expendable trust fund. C. Cafeteria Plan The Town offers a cafeteria compensation plan organized under section 125 of the Internal Revenue Code, which includes dependent care and health expense reimbursement. No cost to the Town is recognized as the plan is a salary reduction plan. D. Risk Management The Town is exposed to various risks of loss related to workers compensation, general liability, unemployment, torts, theft of, damage to, and destruction of assets, and errors and omissions. The Town carries commercial coverage for these risks and claims and does not expect claims to exceed their coverage. E. Commitments and Contingencies 1. Legal Claims During the normal course of business, the Town may incur claims and other assertions against it from various agencies and individuals. Management of the Town and their legal representatives feel none of these claims or assertions are significant enough that they would materially affect the fairness of the presentation of the financial statements at December 31, 2012. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D31 V. Other Information (continued) E. Commitments and Contingencies (continued) 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, 2012. F. Rate Protection Agreement – Timber Ridge Affordable Housing Corporation In connection with the issuance of the 2003A Bonds and as required by the Reimbursement Agreement, the Corporation entered into rate protection agreements which limit the Corporation’s interest payable on the 2003A Bonds for specific periods. Fees paid by the Corporation under these arrangements have been capitalized as Bond Issue Costs. Effective April 30, 2008, the Corporation’s existing Rate Protection Agreement with SMBC Derivative Products Limited (“SMBC”) was revised in that SMBC agreed to limit the Corporation’s interest payable on the 2003A Bonds to 5.5% per annum through May 1, 2010. SMBC was paid a fee of $14,650 in 2008 for this service, which has been capitalized as Bond Issue Costs. Effective May 5, 2010, the Corporation entered into a Rate Protection Agreement with U.S. Bank National Association (“U.S. Bank”) whereby U.S. Bank agreed to limit the Corporation’s interest payable on the 2003A Bonds to 5.5% per annum through May 1, 2011. During 2010, U.S. Bank was paid a $4,000 fee for its services under the Rate Protection Agreement, which has been capitalized as Bond Issue Costs. Effective May 5, 2011, the Corporation entered into a Rate Protection Agreement with U.S. Bank National Association (“U.S. Bank”) whereby U.S. Bank agreed to limit the Corporation’s interest payable on the 2003A Bonds to 5.5% per annum through May 1, 2012. During 2011, U.S. Bank was paid a $3,500 fee for its services under the Rate Protection Agreement, which has been capitalized as Bond Issue Costs. Effective July 18, 2012 The Corporation entered into a Rate Protection Agreement with U.S. Bank whereby U.S. Bank agreed to limit the Corporation’s interest payable on the 2003A Bonds to 0.5% per annum through July 17, 2013. During 2012, U.S. Bank was paid a $12,700 fee for its services under the Rate Protection Agreement, which has been capitalized as Bond Issue Costs. During 2012 and 2011, the Corporation did not receive a reimbursement under the rate protection agreement, as the Corporation’s interest rate payable on the 2003A Bonds was less than 0.5% (2011 – 5.5%) per annum. G. Related Party Transactions - Vail Local Marketing District The District has executed a Coordination Agreement with Vail Valley Partnership (“VVP”) under which VVP provides some marketing coordination services to the District in return for a fixed fee. The District paid VVP $40,000 for its services in 2012. 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. 6/4/2013 Town of Vail, Colorado Notes to the Financial Statements December 31, 2012 (Continued) D32 V. Other Information (continued) G. Related Party Transactions – Vail Local Marketing District (continued) Fees totaling $20,000 for accounting services and $85,000 for marketing coordination were incurred by the District during 2012 from the Town. H. Conduit Debt – Town of Vail, Colorado Multifamily Housing Revenue Bonds (Middle Creek Village Apartments Project), Series 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. I. Subsequent Event In February 2013, the Timber Ridge Affordable Housing Corporation redeemed the remaining $17,265,000 principal outstanding on the 2003A Bonds, and terminated the related letter of credit with U.S. Bank. This redemption was funded by an $8 million dollar capital contribution from the Town; an $8 million dollar loan from the Town; as well as utilizing the $1,265,000 held as reserve funds by U.S. Bank immediately before the redemption. The $8 million dollar loan from the Town bears simple interest at 1.5% per annum, and is repayable over 20 years with annual principal and interest payments of $465,966. There is no prepayment penalty associated with this loan. As part of this transaction, the Corporation repaid accrued interest associated with the Promissory Note (see Note IV.G.2.) in the amount of $238,968. 6/4/2013 REQUIRED SUPPLEMENTARY INFORMATION 6/4/2013 2011 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Revenues: Taxes: General sales taxes 10,859,000 11,530,000 11,530,000 - 10,859,000 Property and ownership taxes 4,232,000 4,232,000 4,157,279 (74,721) 5,031,770 Ski area lift ticket admissions tax 3,492,000 3,492,000 3,433,686 (58,314) 3,529,125 Franchise tax 1,078,311 1,003,311 974,244 (29,067) 1,039,185 Penalties and interest on delinquent taxes 34,442 34,442 29,074 (5,368) 33,954 Total - Taxes 19,695,753 20,291,753 20,124,283 (167,470) 20,493,034 Permits and Licenses: Construction fees 425,000 625,000 731,469 106,469 985,377 Contractors' licenses 20,000 20,000 65,500 45,500 76,015 Other permits and licenses 510,000 510,000 673,619 163,619 75,574 Total - Permits and Licenses 955,000 1,155,000 1,470,588 315,588 1,136,966 Intergovernmental: County sales tax 569,600 569,600 650,879 81,279 631,724 County road and bridge 850,000 850,000 707,090 (142,910) 862,559 Additional motor vehicle registration fees 24,000 24,000 25,337 1,337 23,939 Cigarette tax 80,000 80,000 74,825 (5,175) 74,077 Highway users tax 219,000 219,000 213,981 (5,019) 214,409 State health inspection 8,240 8,240 11,787 3,547 10,379 Other state sources 6,400 6,400 1,505 (4,895) 19,732 Federal sources 154,010 154,010 189,623 35,613 229,372 Total - Intergovernmental 1,911,250 1,911,250 1,875,027 (36,223) 2,066,191 Charges for Services: Management fees - Vail Local Marketing District 105,000 105,000 105,000 - 105,000 2012 Town of Vail, Colorado General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2012 With Comparative Totals For the Year Ended December 31, 2011 The accompanying notes are an integral part of these financial statements. E1 Local Marketing District 105,000 105,000 105,000 - 105,000 Internal service charge 373,000 373,000 441,823 68,823 381,797 Out of district fire response 37,000 138,646 116,703 (21,943) 137,248 Alarm monitoring fees 35,000 35,000 27,415 (7,585) 25,487 Parking 4,425,000 3,839,000 3,453,836 (385,164) 4,023,940 Fines and forfeitures 325,000 325,000 251,501 (73,499) 265,575 Rents 869,816 929,816 832,134 (97,682) 895,872 Other charges, services, and sales 224,850 254,850 284,364 29,514 312,810 Total - Charges for Services 6,394,666 6,000,312 5,512,776 (487,536) 6,147,729 Other Revenues: Earnings on investments 116,900 116,900 177,991 61,091 189,591 Other 207,000 334,000 500,936 166,936 477,102 Total - Other Revenues 323,900 450,900 678,927 228,027 666,693 Total Revenues 29,280,569 29,809,215 29,661,601 (147,614) 30,510,613 The accompanying notes are an integral part of these financial statements. E1 6/4/2013 2011 Final Budget Variance OriginalFinalPositive BudgetBudget Actual(Negative)Actual Expenditures: General Government: Town officials1,453,334 1,437,134 1,291,467 145,667 1,279,098 Administrative3,467,195 3,683,195 3,581,749 101,446 3,227,937 Community development1,581,504 1,611,979 1,503,182 108,797 1,494,045 Total - General Government 6,502,033 6,732,308 6,376,398 355,910 6,001,080 Public Safety: Police department5,167,129 5,197,129 4,833,807 363,322 4,817,088 Fire department3,078,507 3,179,321 3,276,352 (97,031) 3,081,027 Total - Public Safety 8,245,636 8,376,450 8,110,159 266,291 7,898,115 Public Works and Transportation: Highways and streets3,674,733 3,674,733 3,441,884 232,849 3,465,263 Transportation3,862,185 3,897,185 3,896,459 726 3,736,484 Parking operations1,026,847 1,076,847 1,018,733 58,114 1,001,388 Facility maintenance3,392,545 3,460,045 3,216,915 243,130 3,158,935 Total - Public Works and Transportation 11,956,310 12,108,810 11,573,991 534,819 11,362,070 Culture and Recreation: Contributions, marketing and special events2,528,935 2,713,035 2,684,151 28,884 1,795,886 Special recreation facilities158,800 228,800 211,915 16,885 165,512 Library816,751 816,751 795,620 21,131 782,557 Total - Culture and Recreation 3,504,486 3,758,586 3,691,686 66,900 2,743,955 302086 30961 29223 1223920 2800220 (Continued) 2012 Town of Vail, Colorado General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2012 With Comparative Totals For the Year Ended December 31, 2011 The accompanying notes are an integral part of these financial statements. E2 Total Expenditures 30,208,465 30,976,154 29,752,234 1,223,920 28,005,220 Excess of Revenues Over Expenditures (927,896) (1,166,939) (90,633) 1,076,306 2,505,393 Other Financing Sources (Uses): Transfers out- (52,000) (52,000) - (1,845,800) Total Other Financing Sources (Uses)- (52,000) (52,000) - (1,845,800) Net Change in Fund Balances (927,896) (1,218,939) (142,633) 1,076,306 659,593 Fund Balances - January 1 21,645,224 23,546,285 23,546,285 - 22,886,692 Fund Balances - December 31 20,717,32822,327,34623,403,6521,076,306 23,546,285 The accompanying notes are an integral part of these financial statements. E2 6/4/2013 2011 Final Budget Variance OriginalFinalPositive BudgetBudget Actual(Negative)Actual Revenues: Taxes: Sales tax6,941,000 7,370,000 8,706,347 1,336,347 8,956,252 Construction use tax515,000 1,200,000 1,221,734 21,734 721,002 Total - Taxes 7,456,000 8,570,000 9,928,081 1,358,081 9,677,254 Intergovernmental: Federal grants- 1,184,000 726,444 (457,556) 1,205,465 Total - Intergovernmental - 1,184,000 726,444 (457,556) 1,205,465 Charges for Services: Leases - Vail Commons188,160 188,160 192,710 4,550 192,710 Resale fees- - 4,903 4,903 12,483 Total - Charges for Services 188,160 188,160 197,613 9,453 205,193 Other: Interest on investments67,500 67,500 122,406 54,906 111,166 Project reimbursements/shared costs- 174,435 290,151 115,716 1,015,645 Construction fees- 70,000 146,117 76,117 249,217 Workforce housing sales and other- 13,500 4,740 (8,760) - Total - Other 67,500 325,435 563,414 237,979 1,376,028 Total Revenues 7,711,660 10,267,595 11,415,552 1,147,957 12,463,940 Expenditures: Public Works: Capital projects and acquisition12,987,028 24,277,932 15,695,338 8,582,594 18,127,736 With Comparative Totals For the Year Ended December 31, 2011 2012 Town of Vail, Colorado Special Revenue Funds Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2012 The accompanying notes are an integral part of these financial statements. E3 Excess (Deficiency) of Revenues Over Expenditures (5,275,368) (14,010,337) (4,279,786) 9,730,551 (5,663,796) Other Financing Sources (Uses): Sale of assets- - 5,320 5,320 18,832 Transfers in6,546,700 9,097,574 5,406,864 (3,690,710) 9,003,960 Transfers (out)(2,088,347) (2,088,346) (2,088,347) (1) (2,279,574) Total Other Financing Sources (Uses)4,458,353 7,009,228 3,323,837 (3,685,391) 6,743,218 Net Change in Fund Balances (817,015) (7,001,109) (955,949) 6,045,160 1,079,422 Fund Balances - January 1 8,988,830 18,448,740 20,358,739 1,909,999 19,279,317 Fund Balances - December 31 8,171,815 11,447,631 19,402,790 7,955,159 20,358,739 The accompanying notes are an integral part of these financial statements. E3 6/4/2013 2011 Final Budget Variance Original Final Positive Budget Budget Ac tual (Negative)Ac tual Revenues: Taxes: Real estate transfer tax 3,835,000 3,835,000 5,452,937 1,617,937 4,403,706 Intergovernmental Revenue: Lottery revenue 20,000 20,000 26,961 6,961 22,826 Other State revenue - - - - 161,203 Total - Intergovernmental Revenue 20,000 20,000 26,961 6,961 184,029 Charges for Services: Recreation amenities fee 10,000 10,000 41,168 31,168 9,740 Land lease to Vail Recreation District 126,888 126,888 126,768 (120) 126,768 Total - Charges for Services 136,888 136,888 167,936 31,048 136,508 Other: Project reimbursements 15,000 1,186,660 23,886 (1,162,774) 406,329 Donations - - 30,440 30,440 20,200 Interest on investments 68,000 68,000 124,267 56,267 126,562 Other - - 5,669 5,669 2,726 Total - Other 83,000 1,254,660 184,262 (1,070,398) 555,817 Total Revenues 4,074,888 5,246,548 5,832,096 585,548 5,280,060 Expenditures: Culture and Recreation: Project management 191,750 191,750 272,647 (80,897) 220,185 Park maintenance 1,350,140 1,350,140 1,225,571 124,569 1,229,538 Environmental sustainability 250,000 205,450 199,792 5,658 174,605 With Comparative Totals For the Year Ended December 31, 2011 2012 Town of Vail, Colorado Special Revenue Funds Real Estate Transfer Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2012 The accompanying notes are an integral part of these financial statements. E4 Environmental sustainability 250,000 205,450 199,792 5,658 174,605 Art in public places 92,657 92,657 86,205 6,452 81,022 Public Works: Capital projects 3,604,400 17,924,271 4,723,228 13,201,043 4,360,230 Public Safety Fire suppression 195,000 195,000 182,290 12,710 92,067 Total Expenditures 5,683,947 19,959,268 6,689,733 13,269,535 6,157,647 Excess (Deficiency) of Revenues Over Expenditures (1,609,059)(14,712,720)(857,637) 13,855,083 (877,587) Other Financing Sources (Uses): Transfers in - 6,785,000 - (6,785,000) 515,000 Transfers (out)- - - - (32,964) Total Other Financing Sources (Uses)- 6,785,000 - (6,785,000) 482,036 Net Change in Fund Balances (1,609,059)(7,927,720) (857,637) 7,070,083 (395,551) Fund Balances - January 1 9,451,831 17,285,604 17,285,604 - 17,681,155 Fund Balances - December 31 7,842,772 9,357,884 16,427,967 7,070,083 17,285,604 The accompanying notes are an integral part of these financial statements. E4 6/4/2013 2011 Variance Original Final Positive Budget Budget Actual (Negative)Actual Revenues: Interest on investments 46,800 46,800 61,299 14,499 65,787 Total Revenues 46,800 46,800 61,299 14,499 65,787 Expenditures: Economic Development Capital outlay - 2,100,000 1,257,306 842,694 - Total Expenditures - 2,100,000 1,257,306 842,694 - Other Financing Sources (Uses): Transfers (out)- (6,785,000) - (6,785,000) (515,000) Total Other Financing Sources (Uses)- (6,785,000) - (6,785,000) (515,000) Net Change in Fund Balances 46,800 (8,838,200) (1,196,007) 7,642,193 (449,213) Fund Balances - January 1 8,796,804 8,915,791 8,915,791 - 9,365,004 Fund Balances - December 31 8,843,604 77,591 7,719,784 7,642,193 8,915,791 With Comparative Totals For the Year Ended December 31, 2011 2012 Town of Vail, Colorado Special Revenue Funds Conference Center Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2012 The accompanying notes are an integral part of these financial statements. E5 6/4/2013 2011 Original Variance and FinalPositive Budget Actual(Negative)Actual Revenues: Permits and Licenses: Business licenses332,000 332,297 297 332,104 Other: Interest on investments3,000 1,750 (1,251) 1,874 Total Revenues 335,000 334,047 (953) 333,978 Expenditures: Economic Development: Commission on Special Events300,000 300,000 - 299,001 Administration fee17,100 16,615 485 16,605 Total Expenditures 317,100 316,615 485 315,606 Excess (Deficiency) of Revenues Over Expenditures 17,900 17,432 (468) 18,372 Fund Balances - January 1 153,071 156,543 3,472 138,171 Fund Balances - December 31 170,971 173,975 3,004 156,543 With Comparative Totals For the Year Ended December 31, 2011 2012 Town of Vail, Colorado Special Revenue Funds Vail Marketing Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2012 The accompanying notes are an integral part of these financial statements. E6 6/4/2013 2011 Final Budget Variance Original Final Positive Budget Budget Ac tual (Negative)Ac tual Revenues: Taxes: Lodging tax 2,000,000 2,000,000 2,452,910 452,910 2,145,988 Other: Interest on investments 1,200 1,200 289 (911) 857 Total - Other 1,200 1,200 289 (911) 857 Total Revenues 2,001,200 2,001,200 2,453,199 451,999 2,146,845 Expenditures: Economic Development: Destination 515,000 699,500 611,842 87,658 380,658 Front Range 356,000 412,000 393,022 18,978 342,395 Groups and meetings 410,000 427,500 420,844 6,656 318,241 Marketing 370,225 417,225 391,123 26,102 505,718 Special Events 200,000 70,000 70,000 - 108,500 Purchased services 315,000 315,000 332,375 (17,375) 285,000 Total Expenditures 2,166,225 2,341,225 2,219,206 122,019 1,940,512 Excess (Deficiency) of Revenues Over Expenditures (165,025) (340,025) 233,993 574,018 206,333 Fund Balances - January 1 856,813 1,061,697 1,061,697 - 855,364 Fund Balances - December 31 691,788 721,672 1,295,690 574,018 1,061,697 2012 With Comparative Totals For the Year Ended December 31, 2011 Town of Vail, Colorado Special Revenue Funds Vail Local Marketing District Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2012 The accompanying notes are an integral part of these financial statements. E7 6/4/2013 2011 Final Budget Variance OriginalFinalPositive BudgetBudget Actual(Negative)Actual Revenues: Other: Property tax2,465,000 3,370,000 3,383,493 13,493 3,366,594 Interest on investments32,000 32,000 12,817 (19,183) 35,873 Interest Subsidy (Build America Bonds)173,343 173,343 180,619 7,276 194,165 Total Revenues 2,670,343 3,575,343 3,576,929 1,586 3,596,632 Expenditures: Economic Development: Administration41,680 59,060 59,352 (292) 57,706 Treasurer's fees73,950 101,100 101,512 (412) 101,001 Professional fees25,000 25,000 1,535 23,465 2,125 Vail Square Metro District369,570 404,490 403,668 822 466,843 Total Economic Development:510,200 589,650 566,067 23,583 627,675 Debt Service: Principal445,000 445,000 445,000 - 250,000 Interest618,778 618,778 618,778 - 676,675 Fiscal agent fees2,200 2,200 - 2,200 2,200 Total Debt Service:1,065,978 1,065,978 1,063,778 2,200 928,875 Total Expenditures 1,576,178 1,655,628 1,629,845 25,783 1,556,550 Excess (Deficiency) of Revenues Over Expenditures 1,094,165 1,919,715 1,947,083 27,368 2,040,082 Other Financing Sources (Uses): Transfers out(6,546,700) (9,035,574) (5,354,864) 3,680,710 (7,125,196) Total Other Financing Sources (Uses)(6,546,700) (9,035,574) (5,354,864) 3,680,710 (7,125,196) Net Change in Fund Balances (5,452,535) (7,115,859) (3,407,780) 3,708,079 (5,085,114) Fund Balances - January 1 7,639,022 10,143,991 10,143,991 - 15,229,105 Fund Balances - December 31 2,186,487 3,028,132 6,736,211 3,708,079 10,143,991 With Comparative Totals For the Year Ended December 31, 2011 2012 Town of Vail, Colorado Special Revenue Funds Vail Reinvestment Authority Schedule of Revenues, Expenditures and Changes in Fund Balances Budget (GAAP Basis) and Actual For the Year Ended December 31, 2012 The accompanying notes are an integral part of these financial statements. E8 6/4/2013 SUPPLEMENTARY INFORMATION 6/4/2013 2011 Original Variance and FinalPositive Budget Actual(Negative)Actual Revenues: Other: Interest on investments- 6,052 6,052 12,973 Total Revenues - 6,052 6,052 12,973 Expenditures: Debt Service: Principal2,195,000 2,195,000 - 2,115,000 Interest82,275 82,275 - 165,682 Fiscal agent fees4,000 1,500 2,500 500 Total Expenditures 2,281,275 2,278,775 2,500 2,281,182 (Deficiency) of Revenues Over Expenditures (2,281,275) (2,272,723) 8,552 (2,268,209) Other Financing Sources: Transfers in 2,088,346 2,088,347 1 2,279,574 Total Other Financing Sources (Uses)2,088,346 2,088,347 1 2,279,574 Net Change in Fund Balances (192,929) (184,376) 8,553 11,365 Fund Balances - January 1 194,173 205,647 11,474 194,282 Fund Balances - December 31 1,244 21,271 20,027 205,647 Town of Vail, Colorado Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2012 With Comparative Totals For the Year Ended December 31, 2011 2012 Budget (GAAP Basis) and Actual The accompanying notes are an integral part of these financial statements. F1 6/4/2013 2011 Final Budget Variance Original FinalPositive BudgetBudget Actual(Negative)Actual Operating Revenues: Rent1,630,031 1,630,828 1,659,060 28,232 1,520,426 Laundry room lease15,400 18,844 20,790 1,946 11,869 Other5,000 13,960 14,420 460 9,508 Total Operating Revenues 1,650,431 1,663,632 1,694,270 30,638 1,541,803 Operating Expenses: Advertising8,400 5,304 5,256 48 17,502 Office expenses10,573 10,530 9,552 978 8,440 Management fee90,000 90,000 90,000 - 70,000 Telecommunications6,720 7,564 7,757 (193) 6,765 Wages - Administrative72,920 80,087 78,174 1,913 87,293 Wages - Maintenance and other118,877 133,912 114,907 19,005 132,250 Repairs and maintenance78,950 124,135 108,905 15,230 89,545 Electric32,000 30,286 31,115 (829) 58,887 Water and sewer130,150 134,586 135,424 (838) 125,868 Trash removal24,600 20,229 17,957 2,272 21,654 Snow removal37,000 27,156 20,336 6,820 31,181 Fire, life, safety, and security4,050 8,354 8,288 66 6,975 Property insurance67,892 67,892 65,484 2,408 64,992 Professional fees8,600 8,600 8,500 100 8,500 Bad debt expense- 407 5,461 (5,054) 3,701 Miscellaneous2,360 2,506 1,989 517 2,322 Capital maintenance and replacement155,000 5,000 3,129 1,871 23,817 Depreciation519,264 527,191 526,910 281 519,974 Total Operating Expenses 1,367,356 1,283,739 1,239,144 44,595 1,279,666 Operating Income (Loss)283,075 379,893 455,126 75,233 262,137 Non-operating Revenues (Expenses): Interest on investments9,984 5,000 3,652 (1,348) 7,106 Interest expense(100,278) (82,278) (62,527) 19,751 (70,573) Financing fees(256,268) (374,084) (362,598) 11,486 (262,459) Amortization of bond issue costs(35,592) (62,479) (62,479) - (36,592) Total Non-operating Revenue (Expenses)(382,154) (513,841) (483,952) 29,889 (362,518) Change in Net Position (99,079) (133,948) (28,826) 105,122 (100,381) With Comparative Totals For the Year Ended December 31, 2011 2012 Town of Vail, Colorado Enterprise Fund Timber Ridge Affordable Housing Corporation Schedule of Revenues, Expenses, and Changes in Net Position Budget (GAAP Basis) and Actual For the Year Ended December 31, 2012 The accompanying notes are an integral part of these financial statements. F2 6/4/2013 2011 Final Budget Variance OriginalFinalPositive BudgetBudget Actual(Negative)Actual Operating Revenues: Charges and Fees: Dispatch service fee575,706 575,706 572,706 (3,000) 537,827 Dispatching contracts1,177,061 1,177,061 1,171,062 (5,999) 1,214,926 Other charges- - 417 417 89 Total Operating Revenues 1,752,767 1,752,767 1,744,185 (8,582) 1,752,842 Operating Expenses: Public Safety: Salaries and benefits1,881,204 1,881,204 1,707,137 174,067 1,705,469 Operating expenses514,001 514,001 512,314 1,687 435,038 Capital outlay50,000 433,159 276,014 157,145 736,841 Total Operating Expenses 2,445,205 2,828,364 2,495,465 332,899 2,877,348 Operating (Loss) - Budget Basis (692,438) (1,075,597) (751,280) 324,317 (1,124,506) Non-operating Revenues: Other State Revenues- - - - 4,386 Operating grant - E-911 Board742,256 742,256 744,156 1,900 743,656 Earnings on investments7,500 7,500 7,688 188 9,891 Total Non-operating Revenues 749,756 749,756 751,844 2,088 757,933 Change in Net Position - Budget Basis 57,318 (325,841) 564 326,405 (366,573) Reconciliation to GAAP Basis: Adjustments: Change in compensated absences9,143 17,017 Depreciation (256,771) (215,914) Capitalized assets 276,014 736,841 Total Adjustments 28,386 537,944 Change in Net Position - GAAP Basis 28,950 171,371 With Comparative Totals For the Year Ended December 31, 2011 2012 Town of Vail, Colorado Enterprise Fund Dispatch Services Fund Schedule of Revenues, Expenses, and Changes in Net Position Budget (Non-GAAP Basis) and Actual with Reconciliation to GAAP Basis For the Year Ended December 31, 2012 The accompanying notes are an integral part of these financial statements. F3 6/4/2013 2011 Final Budget Variance OriginalFinalPositive BudgetBudget Actual(Negative)Actual Operating Revenues: Charges and Fees: Operating charges2,318,456 2,318,456 2,192,250 (126,206) 2,250,636 Replacement charges573,906 573,906 559,159 (14,747) 563,763 Total - Charges and Fees 2,892,362 2,892,362 2,751,409 (140,953) 2,814,399 Other: Insurance reimbursements- 80,000 58,652 (21,348) 31,635 Other- - 27,856 27,856 39,765 Total - Other - 80,000 86,508 6,508 71,400 Total Operating Revenues 2,892,362 2,972,362 2,837,917 (134,445) 2,885,799 Operating Expenses: Public Works: Vehicle maintenance and fuel2,408,111 2,488,111 2,369,609 118,502 2,378,703 Capital outlay389,144 809,144 527,846 281,298 609,946 Total Operating Expenses 2,797,255 3,297,255 2,897,455 399,800 2,988,649 Operating Income (Loss) - Budget Basis 95,107 (324,893) (59,538) 265,356 (102,850) Non-operating Revenues: 1032 1032 168 361 116 With Comparative Totals For the Year Ended December 31, 2011 2012 Town of Vail, Colorado Internal Service Funds Heavy Equipment Fund Schedule of Revenues, Expenses, and Changes in Net Position Budget (Non-GAAP Basis) and Actual with Reconciliation to GAAP Basis For the Year Ended December 31, 2012 The accompanying notes are an integral part of these financial statements. F4 Earnings on investments10,324 10,324 14,685 4,361 14,165 Proceeds from sale of assets65,500 160,500 174,848 14,348 106,494 Total Non-operating Revenues:75,824 170,824 189,533 18,709 120,659 Change in Net Position - Budget Basis 170,931 (154,069) 129,995 284,065 17,809 Reconciliation to GAAP Basis: Adjustments: Contribution to other funds(86,342) - Net book value of disposed assets(25,872) (5,548) Depreciation (632,371) (602,354) Change in accrued compensated absences14,266 (2,715) Capitalized assets 527,846 609,946 Total Adjustments (202,473) (671) Change in Net Position - GAAP Basis (72,478) 17,138 The accompanying notes are an integral part of these financial statements. F4 6/4/2013 2011 Original Variance and FinalPositive Budget Actual(Negative)Actual Operating Revenues: Charges and Fees: Insurance premiums2,725,0002,884,137159,137 2,589,516 Insurance premiums - Employee contributions485,000434,709(50,291) 408,081 Insurer proceeds500,000 73,896(426,104) 592,802 Total Operating Revenues 3,710,000 3,392,742 (317,258) 3,590,399 Operating Expenses: General Government: Health claims3,380,0003,193,950186,050 3,360,952 Premiums430,000420,1049,896 346,738 Administrative fees20,00020,000- 20,000 Short-term disability payments25,00010,29714,703 14,975 Total Operating Expenses 3,855,000 3,644,351 210,649 3,742,665 Operating Income (Loss)(145,000) (251,609) (106,609) (152,266) Non-operating Revenues: Earnings on investments10,0008,833(1,167) 7,532 Change in Net Position (135,000) (242,776) (107,776) (144,734) With Comparative Totals For the Year Ended December 31, 2011 2012 Town of Vail, Colorado Internal Service Funds Health Insurance Fund Schedule of Revenues, Expenses, and Changes in Net Position Budget (GAAP Basis) and Actual For the Year Ended December 31, 2012 The accompanying notes are an integral part of these financial statements. F5 The accompanying notes are an integral part of these financial statements. F5 6/4/2013 Heavy Health EquipmentInsurance FundFundTotal Assets: Current Assets: Equity in pooled cash and investments2,282,905 945,468 3,228,373 Accounts receivable, net of allowance for uncollectibles6,830 2,581 9,411 Inventory291,385 - 291,385 Total Current Assets 2,581,120 948,049 3,529,169 Non-current Assets: Property, plant, and equipment, net of accumulated depreciation3,306,864 - 3,306,864 Total Assets 5,887,984 948,049 6,836,033 Liabilities: Current Liabilities: Accounts payable228,631 236,438 465,069 Accrued salaries and wages38,623 - 38,623 Current portion of compensated absences17,158 - 17,158 Total Current Liabilities 284,412 236,438 520,850 Non-current Liabilities: Compensated absences, net of current portion25,736 - 25,736 Total Liabilities 310,148 236,438 546,586 Net Position: Net investment in capital assets3,306,864 - 3,306,864 22092 11611 298283 Town of Vail, Colorado Internal Service Funds Combining Statement of Net Position December 31, 2012 The accompanying notes are an integral part of these financial statements. F6 Unrestricted2,270,972 711,611 2,982,583 Total Net Position 5,577,836 711,611 6,289,447 The accompanying notes are an integral part of these financial statements. F6 6/4/2013 Heavy Health EquipmentInsurance FundFundTotal Operating Revenues: Charges for services - Internal2,751,409 2,884,137 5,635,546 Charges for services - External- 434,709 434,709 Insurance reimbursements58,652 73,896 132,548 Other27,856 - 27,856 Total Operating Revenues 2,837,917 3,392,742 6,230,659 Operating Expenses: Operations 2,355,343 - 2,355,343 Health claims and premiums- 3,644,351 3,644,351 Depreciation632,371 - 632,371 Total Operating Expenses 2,987,714 3,644,351 6,632,065 Operating Income (Loss)(149,797) (251,609) (401,406) Non-operating Revenues (Expenses): Gain (loss) on disposal of assets148,976 - 148,976 Investment income14,685 8,833 23,518 Total Non-operating Revenues (Expenses) 163,661 8,833 172,494 Income (Loss) Before Transfers and Capital Contributions 13,864 (242,776) (228,912) Capital Contributions, Net (86,342) - (86,342) Change in Net Position (72,478) (242,776) (315,254) Net Position - January 1 5,650,314 954,387 6,604,701 Town of Vail, Colorado Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Position For the Year Ended December 31, 2012 The accompanying notes are an integral part of these financial statements. F7 Net Position - December 31 5,577,836 711,611 6,289,447 The accompanying notes are an integral part of these financial statements. F7 6/4/2013 Heavy Health EquipmentInsurance FundFundTotal Cash Flows From Operating Activities: Cash received from other funds2,751,409 2,884,137 5,635,546 Other cash receipts84,613 731,021 815,634 Cash paid for goods and services(1,210,689) (3,640,449) (4,851,138) Cash paid to employees(952,004) (3,109) (955,113) Net Cash Provided (Used) by Operating Activities 673,329 (28,400) 644,929 Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets174,848 - 174,848 Acquisition and construction of capital assets(614,188) - (614,188) Net Cash Provided (Used) by Capital and - Related Financing Activities (439,340) - (439,340) Cash Flows From Investing Activities: Interest on Investments14,685 8,833 23,518 Net Cash Provided (Used) by Investing Activities 14,685 8,833 23,518 Net Change in Cash and Cash Equivalents 248,674 (19,567) 229,107 Cash and Cash Equivalents - Beginning 2,034,231 965,035 2,999,266 Cash and Cash Equivalents - Ending 2,282,905 945,468 3,228,373 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss)(149,797) (251,609) (401,406) Town of Vail, Colorado Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2012 The accompanying notes are an integral part of these financial statements. F8 Adjustments: Depreciation632,371 - 632,371 (Increase) decrease in accounts receivable(1,895) 222,416 220,521 (Increase) decrease in inventory(5,683) - (5,683) Increase (decrease) in accounts payable215,640 793 216,433 Increase (decrease) in accrued wages and benefits(17,307) - (17,307) Total Adjustments 823,126 223,209 1,046,335 Net Cash Provided (Used) by Operating Activities 673,329 (28,400) 644,929 The accompanying notes are an integral part of these financial statements. F8 6/4/2013 2011 Variance Project Final Positive Number Project Name Budget Ac tual (Negative)Actual CBI008 Building Remodels 25,000 19,873 5,127 - CBI010 Fire Infrastructure / West Vail Fire Stn 1,207,500 1,180,903 26,597 1,890,760 CBI018 Info Center Remodel 450,000 55,432 394,568 - CBI021 Donovan Park Pavilion 50,000 - 50,000 - CEP001 Fire Truck Purchase 590,000 577,574 12,426 253,900 CEP003 Repower Buses 55,000 - 55,000 - CEP004 Replace Buses 1,245,978 1,168,405 77,573 2,240,636 CEP005 Hardware Purchases 186,900 201,927 (15,027) 105,450 CEP006 Radio Replacement 48,000 30,391 17,609 - CEP007 PBX System & OS Upgrade 35,000 - 35,000 - FED021 LiveScan System (Police)- - - 14,250 FED026 Virtual Briefing System (Police)- - - 9,095 CEP008 Parking Entry System - - - 53,195 CEP010 Network Upgrades 22,100 22,017 83 18,010 CEP011 Document Imaging 105,000 108,439 (3,439) 141,681 CEP017 Radio Tower Equipment 60,000 10,923 49,077 - CEP018 Web and E-commerce 61,700 8,875 52,825 6,300 CEP019 Computer-Aided Dispatch (CAD/RMS)59,000 59,997 (997) 60,690 CEP022 Audio Visual 12,000 4,924 7,076 60,136 CEP025 Fire operations breathing apparatus 32,000 37,469 (5,469) - CEP031 Software Licensing 40,000 41,843 (1,843) 30,348 CEP033 Data Centers / Computer Rooms 15,000 12,990 2,010 8,950 CEP036 Business Systems 400,000 347,427 52,573 - CEP038 Police Equipment 31,250 20,850 10,400 - CHP001 Buy-Down Program 939,921 - 939,921 - CHP005 Creekside Housing Improvements 400,800 400,800 - 136,525 CHP006 Loan Guarantee - Timber Ridge 925,000 - 925,000 - CHP007 Timber Ridge Legal / Zoning 17,315 17,315 - 32,685 CMT003 Bus Shelter Replacement Program 30,000 30,000 - 735 2012 Town of Vail, Colorado Special Revenue Funds Capital Projects Fund Schedule of Project Expenditures - Budget (GAAP Basis) and Actual For the Year Ended December 31, 2012 With Comparative Totals For the Year Ended December 31, 2011 The accompanying notes are an integral part of these financial statements. F9 CMT003 Bus Shelter Replacement Program 30,000 30,000 - 735 CMT004 Capital Street Maintenance 840,078 673,545 166,533 874,501 CMT005 Facility Capital 898,999 516,728 382,271 495,201 CMT007 Parking Structure Maintenance 670,000 261,233 408,767 333,873 CMT008 Muni Building Site Design 880,209 406,297 473,912 - CMT009 Environmental Improvements 1,133,021 763,464 369,557 1,989,694 CMT011 Vail Village Inn Homeowners Roof Assessmt - - - 17,000 CMT012 Flood Repairs 349,192 363,446 (14,254) 194,556 CMT010 Underground Utilities 121,200 77,851 43,349 151,800 CMT014 Gore Range Townhomes 30,000 30,000 - - CMT015 Recycling Center 140,000 1,418 138,583 - COT002 Street Light Improvement Program 50,000 49,954 46 53,840 COT004 Fiber-Optics in Buildings 23,000 5,325 17,675 2,251 COT011 I-70 Noise Mitigation 350,183 196,175 154,008 27,957 COT018 Chamonix Area Plan - - - 90,800 CSC010 Way-Finding Improvements - - - 50,046 CSC012 Village Streetscape - - - 86,111 CSC015 CDOT Required Parking Imp 1,156,000 1,147,306 8,694 - CSC013 E Meadow Dr Streetscape 380,000 363,701 16,299 - CSC016 Guest Services Enhancements 1,519,110 156,384 1,362,726 - CSR007 Neighborhood Road Reconstruction 10,000 3,350 6,650 229,206 CSR008 Neighborhood Bridges 1,411,815 965,926 445,889 144,067 VRA001 LionsHead Transit Center - VRA Funded - - - 1,419,945 VRA002 LionsHead Welcome Center - VRA Funded 923,444 828,908 94,536 6,595,914 VRA004 Library Remodel 2,253,728 1,955,231 298,497 72,772 VRA005 East LionsHead Portal 2,116,289 1,652,728 463,561 158,711 VRA006 West LionsHead Portal 772,500 642,956 129,544 52,500 VRA007 Guest Services Enhancements 354,700 265,610 89,090 23,645 VRA008 Sundial Plaza 850,000 9,432 840,568 - Total 24,277,932 15,695,338 8,582,594 18,127,736 The accompanying notes are an integral part of these financial statements. F9 6/4/2013 2011 Variance Project Final Positive Number Project Name Budget Actual (Negative)Actual CCF001 Golf Clubhouse Redevelopment 6,712,761 329,022 6,383,739 2,071 CCF002 Ford Park Fields Redevelopment 6,297,340 2,653,269 3,644,071 1,400 RFP005 Alpine Gardens Contribution 85,620 85,620 - 65,620 RFP006 Ford Park Master Plan - Improvements - - - 76,739 RGT002 GOCO Grant - Red Sandstone Playground - - - 154,826 RMG001 Project Management - 300 (300) 200 RMG002 Environmental: Solid Waste 34,707 34,706 1 1,496 RMG003 Environmental: Ecosystem Health 13,407 13,407 - 22,542 RMG004 Environmental: Public Education 1,839 1,839 - 1,715 RMG005 Environmental: Energy & Transportation 16,258 16,258 - 20,534 RMT013 Environmental Sustainability - - - 6,004 RMT001 Recreation Path Maintenance 93,395 77,275 16,120 68,675 RMT002 Tree Maintenance 90,000 47,844 42,156 50,111 RMT005 Street Furniture - Streetscape 25,000 24,879 121 1,106 RMT006 Eagle River Watershed Programs 62,000 62,550 (550) 75,600 RMT009 Park/Playground Capital Maintenance 85,000 78,077 6,923 118,920 RMT016 Ford Park / Tennis Center Improvements 428,910 12,199 416,711 91,198 RMT018 Dobson Ice Arena 416,774 158,257 258,517 16,037 RMT019 Gymnastics Center 1,977 275 1,702 2,098 RMT021 Golf Course Clubhouse & Other 18,468 141 18,327 5,922 RMT025 Nature Center 10,646 - 10,646 - RMT027 Golf Course - Other Impr 133,167 91,566 41,601 267,456 RMT028 Flood Repairs 1,050,000 119,168 930,832 382,237 RPD014 Public Restrooms 370,000 1,732 368,268 - RPI001 Playground Safety Improvements (Red S.)197,630 161,885 35,745 266,369 2012 Town of Vail, Colorado Special Revenue Funds Real Estate Transfer Tax Fund Schedule of Project Expenditures - Budget (GAAP Basis) and Actual For the Year Ended December 31, 2012 With Comparative Totals For the Year Ended December 31, 2011 The accompanying notes are an integral part of these financial statements. F10 RPI001 Playground Safety Improvements (Red S.)197,630 161,885 35,745 266,369 RPI006 Streamtract Improvements 200,000 - 200,000 - RPT007 Trailhead Signs/Development 50,000 - 50,000 - RPT010 Frontage Road Bike & Ped Paths 1,150,000 701,985 448,015 1,663,643 RRT001 Public Art 335,878 32,618 303,260 43,382 RRT003 ADA Compliance 10,000 10,000 - 8,263 RRT006 Public Art - Winterfest 33,494 8,354 25,140 23,206 Total 17,924,271 4,723,228 13,201,043 4,360,230 The accompanying notes are an integral part of these financial statements. F10 6/4/2013 LOCAL HIGHWAY FINANCE REPORT 6/4/2013 Financial Planning 02/01 The public report burden for this information collection is estimated to average 380 hours annually. Form # 350-050-36 City or County:Vail YEAR ENDING : December 2012 This Information From The Records Of Town of Vail:Prepared By: Kathleen Halloran Phone:970-479-2116 A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway-Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes AMOUNT AMOUNT A. Receipts from local sources:A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2)3,397,893 a. Motor Fuel (from Item I.A.5.) 2. Maintenance:2,005,863 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 357,759 2. General fund appropriations 6,167,599 b. Snow and ice removal 682,634 3. Other local imposts (from page 2)873,760 c. Other 4. Miscellaneous local receipts (from page 2)0 d. Total (a. through c.)1,040,393 5. Transfers from toll facilities 4. General administration & miscellaneous 277,278 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 1,135,422 a. Bonds - Original Issues 6. Total (1 through 5)7,856,849 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.)0 a. Interest 7. Total (1 through 6)7,041,359 b. Redemption B. Private Contributions 576,173 c. Total (a. + b.)- C. Receipts from State government 2. Notes: (from page 2)239,318 a. Interest D. Receipts from Federal Government b. Redemption ITEM ITEM LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM II. RECEIPTS FOR ROAD AND STREET PURPOSES III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES F11 D. Receipts from Federal Government b. Redemption (from page 2)- c. Total (a. + b.)- E. Total receipts (A.7 + B + C + D)7,856,850 3. Total (1.c + 2.c)- C. Payments to State for highways D. Payments to toll facilities E. Total disbursements (A.6 + B.3 + C + D)7,856,849 Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total)0 1. Bonds (Refunding Portion) B. Notes (Total)0 A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation - 7,856,850 7,856,849 - 0 Notes and Comments: FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) 1 IV. LOCAL HIGHWAY DEBT STATUS (Show all entries at par) V. LOCAL ROAD AND STREET FUND BALANCE F11 6/4/2013 STATE: Colorado YEAR ENDING (mm/yy): December 2012 AMOUNT AMOUNT A.3. Other local imposts:A.4. Miscellaneous local receipts: a. Property Taxes and Assessments a. Interest on investments b. Other local imposts: b. Traffic Fines & Penalities 1. Sales Taxes c. Parking Garage Fees 2. Infrastructure & Impact Fees d. Parking Meter Fees 3. Liens e. Sale of Surplus Property 4. Licenses f. Charges for Services 5. Specific Ownership &/or Other 873,760 g. Other Misc. Receipts 6. Total (1. through 5.)873,760 h. Other c. Total (a. + b.)873,760 i. Total (a. through h.)0 (Carry forward to page 1) (Carry forward to page 1) AMOUNT AMOUNT C. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 213,981 1. FHWA (from Item I.D.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 25,337 d. Federal Transit Admin d. Other (Specify) e. U.S. Corps of Engineers e. Other (Specify) f. Other Federal f. Total (a. through e.)25,337 g. Total (a. through f.)0 4. Total (1. + 2. + 3.f)239,318 3. Total (1. + 2.g) (Carry forward to page 1) ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL LOCAL HIGHWAY FINANCE REPORT II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL ITEM ITEM ITEM ITEM F12 SYSTEM SYSTEM (a)(b)(c) A.1. Capital outlay: a. Right-Of-Way Costs 0 b. Engineering Costs 149,062 149,062 c. Construction: (1). New Facilities 0 (2). Capacity Improvements 0 (3). System Preservation 3,248,831 3,248,831 (4). System Enhancement & Operation 0 (5). Total Construction (1) + (2) + (3) + (4)0 3,248,831 3,248,831 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5)0 3,397,893 3,397,893 (Carry forward to page 1) Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE 2 F12 6/4/2013 UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE 6/4/2013 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Tables I, III, and IV December 31, 2012 2008 2009 2010 2011 2012 Pledged Revenues 19,631,366 16,913,338 17,676,115 19,581,415 20,046,454 Maximum Annual Debt Service 2,324,457 2,280,681 2,280,681 2,280,681 2,280,681 Coverage Factor 8.45x 7.42x 7.75x 8.59x 8.79x 2008 2009 2010 2011 2012 Sales Tax Collections (see Note below)19,631,366 16,913,338 17,676,115 19,581,415 20,046,454 Per Cent Increase 3.80%-13.85%4.51%10.78%2.37% Note: The reported Sales Tax Collections vary from the sales tax revenues reported in the Town's audited financial statements because one-time payments of sales tax on, for example, the sale of business assets or the settlement of a sales tax claim, are not included above. Current Year Current Year Current Year Month Month To Date Month To Date Month To Date January 2,795,688 2,795,688 2,855,524 2,855,524 2.1%2.1% February 2,803,136 5,598,824 2,994,580 5,850,104 6.8%4.5% March 3,143,418 8,742,242 3,185,859 9,035,963 1.4%3.4% TABLE I Debt Service Coverage TABLE III History of Town 4% Sales Tax Receipts TABLE IV Monthly Comparison of Collections of Sales Tax 12-month Period Ended 12-month Period Ended December 31, 2011 December 31, 2012 Percent Change G1 March 3,143,418 8,742,242 3,185,859 9,035,963 1.4%3.4% April 1,191,690 9,933,932 1,183,087 10,219,050 -0.7%2.9% May 473,292 10,407,224 487,739 10,706,789 3.1%2.9% June 895,951 11,303,175 963,143 11,669,932 7.5%3.2% July 1,481,329 12,784,504 1,573,499 13,243,431 6.2%3.6% August 1,310,471 14,094,975 1,380,710 14,624,141 5.4%3.8% September 889,945 14,984,920 978,037 15,602,178 9.9%4.1% October 623,420 15,608,340 644,577 16,246,755 3.4%4.1% November 788,430 16,396,770 825,873 17,072,628 4.7%4.1% December 3,184,645 19,581,415 2,973,826 20,046,454 -6.6%2.4% G1 6/4/2013 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement of Tables to be Updated Tables V and VI December 31, 2012 2008 2009 2010 2011 2012 Annual Sales Tax Paid by Ten Principal Generators 6,404,706 5,237,655 5,467,868 6,091,354 6,309,137 Total Annual Sales Tax Collected by Town 19,631,366 16,913,338 17,676,115 19,581,415 20,046,454 % of Total Annual Sales Tax Collections Generated by Ten Principal Generators 32.6%31.0%30.9%31.1%31.5% 2012 2013 2014 2015 2016 Revenues: Sales tax 8,706,347 7,638,000 7,866,000 8,102,000 8,345,000 Construction Use Tax 1,221,734 1,000,000 1,020,000 1,040,400 1,061,208 Employee Housing Fee - in - Lieu 146,117 - - - - Federal grants 726,444 - 240,000 240,000 544,800 Lease revenue 192,710 192,660 197,295 197,295 197,295 Project reimbursment 290,151 - - - - Other State revenue - 200,000 - - - Transfers in 5,406,864 4,890,710 4,640,000 350,000 2,315,000 Earnings on investments and other 137,369 355,389 530,695 548,530 559,705 Total Revenues 16,827,736 14,276,759 14,493,990 10,478,225 13,023,008 Expenditures: Equipment purchases 2,143,352 1,362,768 2,535,900 170,000 3,694,000 Maintenance 3,124,824 1,505,000 1,241,000 2,058,000 1,118,000 Buildings and improvements 1,688,425 3,003,755 21,000 15,000 790,000 Street projects 2,636,666 2,165,483 5,117,000 5,988,300 6,252,600 Housing programs - 1,002,538 - - - Lionshead redevelopment 5,354,864 2,033,673 1,000,000 - 1,965,000 TABLE V Sales Tax Collections by Principal Sales Tax Generators TABLE VI Capital Projects Fund: 2012 Actual / Projected 2013- 2016 G2 Lionshead redevelopment 5,354,864 2,033,673 1,000,000 - 1,965,000 Other improvements 747,207 10,789,887 1,012,000 12,000 12,000 Transfer to Debt Service Fund 2,088,347 - - - - Total Expenditures 17,783,685 21,863,104 10,926,900 8,243,300 13,831,600 Revenues Over (Under) Expenditures (955,949) (7,586,345) 3,567,090 2,234,925 (808,592) Beginning Fund Balance 20,358,739 19,402,790 11,816,445 15,383,535 17,618,460 Ending Fund Balance 19,402,790 11,816,445 15,383,535 17,618,460 16,809,868 G2 6/4/2013 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Table XIX December 31, 2012 2008 2009 2010 2011 2012 Revenues: General sales taxes 11,640,000 8,760,000 10,143,624 10,859,000 11,530,000 Property and ownership taxes 4,309,622 4,506,491 4,951,386 5,031,770 4,157,279 Ski area lift ticket admissions tax 3,277,703 3,048,011 3,357,717 3,529,125 3,433,686 Franchise fees 1,052,665 908,577 1,023,398 1,039,185 974,244 Penalties and interest on delinquent taxes 22,544 35,507 17,027 33,954 29,074 Licenses and permits 3,903,026 1,440,972 1,387,337 1,136,966 1,470,588 Intergovernmental revenues 1,706,197 1,611,570 1,929,121 2,066,191 1,875,027 Charges for services 5,817,239 5,693,448 5,912,669 4,986,282 4,429,141 Fines and forfeits 396,707 330,660 271,561 265,575 251,501 Interest 571,072 170,353 119,049 189,591 177,991 Rents 949,961 912,091 862,151 895,872 832,134 Other 163,025 243,991 386,271 477,102 500,936 Total Revenues 33,809,761 27,661,671 30,361,311 30,510,613 29,661,601 Expenditures: General government 7,715,791 6,037,371 5,928,142 6,001,080 6,376,398 Public safety 7,624,590 7,754,157 7,619,415 7,898,115 8,110,159 Public works and transportation 11,779,063 10,975,098 11,204,253 11,362,070 11,573,991 Economic development and community assistance 1,703,092 1,665,864 1,608,674 1,961,398 2,896,066 Municipal library 828,056 808,649 794,879 782,557 795,620 Total Expenditures 29,650,592 27,241,139 27,155,363 28,005,220 29,752,234 Excess of Revenues Over Expenditures 4,159,169 420,532 3,205,948 2,505,393 (90,633) Other Financing Sources (Uses): Operating transfers out (991,000) - (3,742,673) (1,845,800) (52,000) Total Other Financing Sources (Uses)(991,000) - (3,742,673) (1,845,800) (52,000) Excess of Revenues TABLE XIX History of General Fund Revenues, Expenditures and Changes in Fund Balance G3 Excess of Revenues Over Expenditures and Other Financing Sources (Uses)3,168,169 420,532 (536,725) 659,593 (142,633) Fund Balance: Beginning 19,834,717 23,002,885 23,423,417 22,886,692 23,546,285 Ending 23,002,885 23,423,417 22,886,692 23,546,285 23,403,652 G3 6/4/2013 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement of Tables to be Updated Tables XX and XXI December 31, 2012 2012 Am ended 2012 2013 Budget Ac tual Budget Revenues: General sales taxes 11,530,000 11,530,000 12,462,000 Property and ownership taxes 4,232,000 4,157,279 4,217,000 Ski area lift ticket admissions tax 3,492,000 3,433,686 3,492,000 Franchise tax 1,037,753 974,244 1,074,442 Licenses and permits 1,155,000 1,470,588 1,290,080 Intergovernmental revenues 1,911,250 1,875,027 1,861,914 Charges for services 4,745,496 4,429,141 4,610,347 Fines and forfeits 325,000 251,501 270,887 Interest 116,900 177,991 175,000 Rents and other 1,263,816 1,362,144 1,080,605 Total 29,809,215 29,661,601 30,534,275 Expenditures: Town officials 1,437,134 1,291,467 1,423,654 Administrative 3,683,195 3,581,749 3,884,510 Community development 1,611,979 1,503,182 1,562,046 Public safety - Police 4,659,302 4,295,980 4,704,069 Public safety - Fire 3,179,321 3,276,352 3,269,000 Public works 3,674,733 3,441,884 3,778,178 Transportation & Parking 4,974,032 4,915,192 5,011,161 Facility maintenance 3,688,845 3,428,830 3,757,374 Public library 816,751 795,620 813,959 Contributions and special events 2,713,035 2,684,151 2,927,647 Dispatch service charges 537,827 537,827 569,193 Total 30,976,154 29,752,234 31,700,791 Excess (Deficiency) of Revenues Over Expenditures (1,166,939) (90,633) (1,166,516) Other Financing Sources (Uses): Investment in Timber Ridge - - (8,000,000) Transfer to Capital Projects Fund (52,000) (52,000) - Total Other Financing Sources (Uses):(52,000) (52,000) (8,000,000) Net Change in Fund Balances (1,218,939) (142,633) (9,166,516) Fund Balance - January 1 23,546,285 23,546,285 23,403,652 Fund Balance - December 31 22,327,346 23,403,652 14,237,136 Outstanding Issue Principal Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010A 2,975,000 Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010B 8,270,000 Housing Facilities Revenue Bonds, Series 2003A 17,265,000 Total 28,510,000 TABLE XXI Outstanding Revenue Obligations TABLE XX General Fund 2012 Budget Summary and Actual Comparison / 2013 Budget G4 6/4/2013 SINGLE AUDIT REPORTS AND SCHEDULES 6/4/2013 McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.com Member: American Institute of Certified Public Accountants D. Jerry McMahan, C.P.A. Daniel R. Cudahy, C.P.A. Paul J. Backes, C.P.A. Michael N. Jenkins, C.A., C.P.A. Avon Aspen Frisco (970) 845-8800 (970) 544-3996 (970) 668-3481 H1 M & A INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Town of Vail, Colorado (the “Town”) as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements and have issued our report thereon dated May 20, 2013. Internal Control Over Financial Reporting In planning and performing our audit on the financial statements, we considered the Town’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Town’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Town’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe that a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 6/4/2013 INDEPENDENT AUDITOR’S REPORT To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado H2 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Town’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. McMahan and Associates, L.L.C. May 20, 2013 6/4/2013 McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.com Member: American Institute of Certified Public Accountants D. Jerry McMahan, C.P.A. Daniel R. Cudahy, C.P.A. Paul J. Backes, C.P.A. Michael N. Jenkins, C.A., C.P.A. Avon Aspen Frisco (970) 845-8800 (970) 544-3996 (970) 668-3481 H3 M & A INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A- 133 To the Mayor and Members of Council Town of Vail, Colorado Vail, Colorado Report on Compliance for Each Major Program We have audited the compliance of Town of Vail, Colorado (the “Town”) with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the Town’s major federal programs for the year ended December 31, 2012. The Town’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the Town’s major federal programs based on our audit of the types of compliance requirements referred to above, We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Town’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination on the Town’s compliance with those requirements. Opinion on Each Major Federal Program In our opinion, the Town complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2012. 6/4/2013 INDEPENDENT AUDITOR’S REPORT To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado H4 Report on Internal Control Over Compliance Management of the Town is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit, we considered the Town’s internal control over compliance with types of requirements that could have a direct and material effect on each major federal program to determine our auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do no express an opinion on the effectiveness of the Town’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charges with governance. Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to indentify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report in internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. McMahan and Associates, L.L.C. May 20, 2013 6/4/2013 Town of Vail, Colorado SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2012 H5 Part I – Summary of Auditor’s Results Financial Statements Type of auditor’s report issued Unqualified Internal control over financial reporting: Material weakness identified None noted Reportable condition identified that is not considered to be material weaknesses None reported Noncompliance material to financial statements noted None noted Federal Awards Internal control over major programs: Material weakness identified None noted Reportable conditions identified that is not considered to be material weaknesses None reported Type of auditor’s report issued on compliance for major programs Unqualified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133 None noted Major programs: Federal Transportation Agency: Highway Planning and Construction CFDA #20.205 Discretionary Funding Section 5309 CFDA #20.500 Dollar threshold used to identify Type A from Type B programs $300,000 Identified as low-risk auditee No Part II – Findings Related to Financial Statements Findings related to financial statements as required by Government Auditing Standards None noted Auditor-assigned reference number Not applicable Part III – Findings Related to Federal Awards Internal control findings None noted Compliance findings None noted Questioned costs None noted Auditor-assigned reference number Not applicable 6/4/2013 Town of Vail, Colorado SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2012 H6 Finding 2011-01: Corrected for 2012. 6/4/2013 Federal CFDA Major Program Title Number Program Expenditures Federal Transportation Agency: Discretionary Funding Section 5309 20.500 Yes 321,933 Passed through Colorado Department of Transportation: Highway Planning and Construction 20.205 Yes 394,428 Total - Federal Transportation Agency 716,361 Department of Homeland Security: Staffing for Adequate Fire and Emergency Response (SAFER)97.083 No 65,010 Total - U.S. Department of Homeland Security 65,010 Department of Justice: Passed through Colorado Department of Criminal Justice: COPs Hiring Recovery Program 16.710 No 101,586 Total - U.S. Department of Justice 101,586 Total 882,957 Note 1. Basis of Presentation: The Schedule of Expenditures of Federal Awards includes the federal grant activity of the Town of Vail and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations . Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the general purpose financial statements. Note 2. Sub-recipients: The Town of Vail did not provide any federal funds listed in the Schedule of Expenditures of Federal Awards to sub-recipients. Notes to the Schedule of Expenditures of Federal Awards for the year ended December 31, 2012 Town of Vail, Colorado Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2012 The accompanying notes are an integral part of these financial statements. H7 6/4/2013 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 4, 2013 ITEM/TOPIC: Information Update and Attachments: 1) VEAC Meeting Minutes - Judy 2) March 2013 Business Review - Sally 3) April 2013 Sales Tax - Sally 4) May 2013 Revenue Highlights - Judy PRESENTER(S): Various ATTACHMENTS: VEAC 051413 Meeting Minutes March 2013 Business Review April 2013 Sales Tax May 2013 Revenue Highlights 6/4/2013 Vail Economic Advisory Council (VEAC) May 14, 2013 MEETING NOTES  VEAC Members Present: Rayla Kundolf; Rob LeVine; Pam Stenmark; Greg Moffet; Matt Morgan; Davy Ratchford (for Chris Jarnot); Michael Kurz; Mia Vlaar; Bob Boselli, Brett Schoenfield; Mike Ortiz; Brian Nolan; Kim Newbury; Steve Kaufman; Mark Gordon; Paul Wible; Chris Romer  Others Present: Jim Lamont; Derek Schmidt; Dr. Jack Eck  TOV Staff Present: Town Manager Stan Zemler; Finance Director Judy Camp; Economic Development Manager Kelli McDonald; Executive Assistant Tammy Nagel; Community Development Director George Ruther; Environmental Sustainability Coordinator Kristen Bertuglia  Financial Reports: The financial reports were provided in the committees’ packets. Judy Camp raised a question on behalf of the Town Council concerning why the ski season to date was looking so favorable. Responses are summarized in the attached memo as sent to Council. Looking forward to summer, the lodging committee members expressed concern with bookings being low for June – September and the retail committee members expressed their concerns with empty store fronts.  Communitywide Recycling: Kristen Bertuglia presented a Vail community wide recycling ordinance PowerPoint to the committee members. Bertuglia stated 58% of the residential trash and 59% of the commercial trash for Eagle County could be prevented from going to the landfill if residents were using the existing recycling programs. The proposed Town of Vail ordinance would reduce the amount of Town of Vail landfill contributions by 10% within 5 years and divert 25% of the Town’s waste by 2019. The mandatory recycling ordinance would apply to commercial and residential generators and haulers through regulatory tools such as licensing and reporting, residential embedded rates, residential volume based rates (save as you recycle), residential single stream recycling , container signs, residential recycling service/frequency of collection, residential recycling service/minimum recycling bin size, mandatory recycling, property owners and business es must provide recycling options, new staff training and commercial recycling embedded rates. Requiring haulers to obtain licensing and submit bi-annual reports will allow for designation of recyclables, collection frequency, assurance that material is being recycled, and tracking of waste diversion. Residential embedded rates, ensures recycling is not perceived as an extra cost and allows for incentives. Residential volume based rates (save as you recycle) will incentivize recycling and residential single stream recycling will allow all recyclable material to be placed in one container. Container signs will provided by haulers to assist with education and reduce confusion on recyclable materials. Residential recycling s ervice/frequency of collection will require haulers to provide recycling services as often as trash servic e, making recycling convenient for customers, reducing confusion and prevent overflow recyclables from going to the landfill. The Residential recycling service minimum recycling bin size will require haulers to provide 64-gallon, lidded recycling bear-resistant containers, which will eliminate blowing recycling and allow for higher volume of recyclables. Bertuglia stated that recycling will no longer be an option with mandatory recycling which will designate recycling material that must be source separated and picked up by a licensed hauler or in special cases delivered to a drop off facility.  Golf Course Clubhouse Economic Impact Study: Stan Zemler presented to the committee members an update on the Vail Golf and Nordic Club House. Zemler stated the Project was currently going thru the review process for rezoning of the 6/4/2013 parking lot portion of the club house from General Use to Outdoor Recreation; Code amendments to define “club house” and modify allowable building height in the Outd oor Recreation District; and Conditional Use Permit to allow for an “accessory building”, i.e. the club house. There are currently some pending revisions to the Project such as a reduction in capacity of the banquet room from 200 to 160 people; a prohibition against parking on Sunburst Drive and a requirement to implement a valet parking program to meet the parking needs of the club house and to ensure no parking occurs on Sunburst Drive. Zemler reviewed the Economic Impact Study Powerpoint with the committee members. The study provided a breakdown of the square footage of the proposed building renovations which showed the bulk of the change in square footage occurring in the kitchen, pro shop, restrooms and outdoor patios. Zemler stated the club house would be utilized for golf tournaments, weddings/banquets, corporate offsite conferences and community meetings. Zemler informed the committee members that besides a reduction in capacity of the banquet room and a prohibition against parking on Sunburst Drive, staff is recommending to Council a requirement to implement a valet parking program to meet the parking needs of the clubhouse and to ensure no parking occurs on Sunburst Drive. Zemler stated that currently no decision has been made as to who would be operating the club house nor if the club house should have a liquor license or not. Kaufman suggested the Town send out an RFP for an operator of the club house and golf course restaurant. McDonald will email the PowerPoint to committee members and schedule the topic for a future VEAC meeting to provide an update on the Project.  Vail Valley Medical Center Master Plan: George Ruther invited the committee members to come and participate in the Med ical Center Master Plan open house on May 15, 2013 from 3:30 pm - 5:00 pm at the Grand View room. Ruther stated there would be a short presentation that will list the long term goals for the Medical Center, traffic impacts and land use plan. Moffet asked Ruther to consider the housing impact too in the Medical Center Master Plan.  Town Manager Report: None  Citizen Input: None  Other Business: McDonald provided members with an update on the new event happening on Memorial Day weekend, FEAST!Vail. McDonald stated the event was on track and is planned to have multiple culinary demonstrations and participatory events. Nolan stated there are famous Denver chefs and local chefs who will be participating in the demos. Kundolf added the event’s Facebook page was up and it has the schedule and costs for the event.  Next Meeting: The next meeting is scheduled for Tuesday, June 11, 2013 at The Antlers. 6/4/2013 TO: Vail Town Council FROM: Economic Development and Finance Departments DATE: May 21, 2013 SUBJECT: 2012/13 Ski Season Report I. SUMMARY In response to Council’s request for a report on potential reasons for the record sales tax collections during the 2012/13 ski season, staff has contacted Vail Resorts, MTRIP, the Vail Economic Advisory Council, and the Vail Valley Partnership for their insight. As expected, there are many factors working together to achieve the positive results. International visitation, particularly from South America, was mentioned frequently as a key factor for all types of business. Although lack of snow was a detractor in December, consistent snowfall through the rest of the season, including the extra weekend at the end of the season, brought both destination and drive market business. New and/or redeveloped businesses performed well and, in the lodging category, contributed to increases in room rates and revenue per available room. Events including the Burton US Open and Vail’s 50th Anniversary were successful and brought in participants and spectators. The Vail brand was also cited as a strong influence in bringing people to Vail this season. II. REPORTS What follows is a compilation of information gathered from the various identified sources. Vail Resorts - Vail’s brand and guest-experience differentiation - Snow Conditions in time for the holidays and the second half of the season - Season Pass Strategy - International Momentum - 50th Anniversary Success - Events Success/Burton US Open We continue to be bullish on the state of Vail’s brand/business on a macro level. The redevelopment of the past 10 years and the guest-experience differentiation that it has created for Vail continues to pay dividends. We saw a hesitancy among our guests to commit to a visit until they were comfortable that snow conditions would be adequate. This was probably created by the poor conditions they experienced during the 2011-2012 season. But once they saw communication regarding the snow we were receiving prior to the holidays and beginning in late January, they reacted very quickly and significantly. We feel that our season-pass strategy for both the destination market and the drive market continued to drive success for Vail as guests 6/4/2013 Town of Vail Page 2 who had purchased a pass prior to the season beginning had their loyalty to our resorts sewn up for the season and an incentive to visit once the snow began to fall. We continued to see growing demand from international markets, and the fact that Easter fell in March generated significant volumes from the Mexican and South American markets during spring break. The 50th Anniversary celebration was a great, consistent theme for the entire resort that clearly gained traction with guests and drove a focus for Vail in the media. Lastly, our events strategy at the beginning and end of the season with Snow Daze and Spring Back to Vail, and the introduction of the Burton US Open drove differentiation and media attention for Vail during need times and with a new market. Ralf Garrison, MTRiP MTRiP is glad to be a provider of taxable sales reports and analysis to the Town of Vail, however the data received thus far is only through the end of February and therefore our seasonal reports that will provide information on the performance of new stores in Vail, how they are increasing overall sales tax collections and how Vail is performing against a competitive set of other mountain towns will not be available until June/July. In the meantime, we can provide some information on Vail’s winter performance through February, 2013 compared to other mountain towns. • For the time period November 2012 – February 2013, Vail has saw 2.1% increase in taxable sales from the previous year, slightly less that the average of 3.5%, represented by the destination resorts tracked by MTRIP Econometrics, and 15th of the 17 in the group. • For the same period, Vail’s lodging tax receipts represented a 2.9% increase, comparable to the sales tax figure. A preliminary conclusion is that (at least in this past year) sales tax increases were driven by the destination guest who also stayed in the Vail area. • It should be noted that Vail’s taxable sales volume is much larger than the towns in the competitive set, where Vail’s Nov – Feb tax sales equals $250.9 million and the average of the remaining 16 towns is only $87.5 million. • Lodging and sales tax data that is sited here is provided to the Town of Vail as part of their subscription to MTRiP and attached. Vail Economic Advisory Council • South American business strong at restaurants and galleries with some restaurants staying open throughout the afternoon for these guests • New restaurants did well but with some cannibalization noted; some established restaurants did not do as well as redeveloped properties • Recovering US economy, particularly among our high end guest demographic from key markets although visitation was down from areas where the economy continues to lag • Vail branding, the Vail renaissance, new and redeveloped properties all had favorable impact • Lack of snow in the early part of this season and last hurt lodging in December, but the timing of snowstorms in the first quarter 2103 kept bookings up for that period. Some, but not all, lodges made up December shortfalls in subsequent months. • Additional weekend at the end of the season brought incremental business 6/4/2013 Town of Vail Page 3 • The Burton US Open drew both spectators and competitors as well as television coverage. Having too much snow for the women’s event made for some good publicity. • Net promoter scores are high indicating our guests are happy with our service levels Vail Valley Partnership Key performance indicators for the Town of Vail for ski season 2012/13 include: • Increased REVPAR (revenue per available room) of 4.9%, a leading indicator for lodging sales tax collections. • A small increase of 0.7% in lodging occupancy, indicating additional destination overnight visitation to Vail. • Increased group business during “need” times as reported by a survey of lodging partners, likely resulting in compression for non-group lodging properties. • Eagle County's employment picture is continuing to improve. Eagle County's February 2013 unemployment rate of 6.0% is better than the five year moving average of 6.4% and slightly higher than our 10 year average of 5.3% and it is also 1.2% lower than February 2012. 6/4/2013 Vail Business Review March 2013 May 22, 2013 The March Vail Business Review breaks down the four percent sales tax collected for March and year to date through first quarter. Overall March sales tax increased 13.9% with Retail increasing 22.6%, Lodging increased 14.7%, Food and Beverage increased 10.0% and Utilities/Other (which is mainly utilities but also includes taxable services and rentals) decreased 11.1%. The Out of Town category continues to be greatly affected by construction, interior design firms and furniture stores delivering in to Vail. Excluding the Out of Town category sales tax for the month of March was up 16.0%. Year to date through first quarter resulted in an 11.0% increase overall with Retail increasing 16.2%, Lodging increased 13.3%, Food and Beverage increased 7.4% and Utilities/Other decreased 9.3%. Excluding the Out of Town category, sales tax for the first quarter is up 12.6%. Town of Vail sales tax forms, the Vail Business Review and the sales tax worksheet are available on the internet at www.vailgov.com. You can subscribe to have the Vail Business Review and the sales tax worksheet e-mailed to you automatically from www.vailgov.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 6/4/2013 TOWN OF VAIL BUSINESS REVIEWTOWN OF VAIL BUSINESS REVIEWTOWN OF VAIL BUSINESS REVIEWTOWN OF VAIL BUSINESS REVIEW MarchMarchMarchMarch Sales Tax Newsletter March 2013 Sales TaxMarch 2013 Sales TaxMarch 2013 Sales TaxMarch 2013 Sales Tax MarchMarchMarch 2012 2013 % Collections Collections Change VAIL VILLAGE Retail 431,630 556,825 29.01 % Lodging 624,897 751,080 20.19 % F & B 514,207 587,035 14.16 % Other 17,401 25,125 44.39 % Total 1,588,135 1,920,065 20.90 % LIONSHEAD Retail 207,569 245,465 18.26 % Lodging 432,721 484,479 11.96 % F & B 150,009 161,079 7.38 % Other 6,619 6,296 -4.88 % Total 796,919 897,319 12.60 % CASCADE VILLAGE/EAST VAIL/SANDSTONE/WEST VAIL Retail 209,520 228,226 8.93 % Lodging 195,429 211,740 8.35 % F & B 76,593 67,243 -12.21 % Other 5,523 7,196 30.29 % Total 487,065 514,406 5.61 % OUT OF TOWN Retail 54,063 76,574 41.64 % Lodging 43,564 40,454 -7.14 % F & B 1,590 1,546 -2.76 % Utilities & Other 215,966 179,598 -16.84 % Total 315,182 298,171 -5.40 % 5/22/2013 2:58:52 PM Page 1 of 2 6/4/2013 TOWN OF VAIL BUSINESS REVIEWTOWN OF VAIL BUSINESS REVIEWTOWN OF VAIL BUSINESS REVIEWTOWN OF VAIL BUSINESS REVIEW MarchMarchMarchMarch Sales Tax Newsletter March 2013 Sales TaxMarch 2013 Sales TaxMarch 2013 Sales TaxMarch 2013 Sales Tax TOTALTOTALTOTALTOTAL MarchMarchMarch 2012 2013 % Collections Collections Change Retail 902,783 1,107,090 22.63 % Lodging And Property Mgmt 1,296,612 1,487,753 14.74 % Food and Beverage 742,399 816,903 10.04 % Other 245,509 218,215 -11.12 % Total 3,187,302 3,629,961 13.89 % RETAIL SUMMARYRETAIL SUMMARYRETAIL SUMMARYRETAIL SUMMARY MarchMarchMarch 2012 2013 % Collections Collections Change RETAIL-FOOD 144,322 156,673 8.56 % RETAIL-LIQUOR 58,469 66,410 13.58 % RETAIL-APPAREL 119,124 189,477 59.06 % RETAIL-SPORT 457,051 541,733 18.53 % RETAIL-JEWELRY 20,086 26,321 31.04 % RETAIL-GIFT 9,144 10,447 14.25 % RETAIL-GALLERY 6,897 7,342 6.45 % RETAIL-OTHER 87,215 108,221 24.09 % RETAIL-HOME OCCUPATION 475 466 -1.95 % Total 902,783 1,107,090 22.63 % 5/22/2013 2:58:52 PM Page 2 of 2 6/4/2013 TOWN OF VAIL BUSINESS REVIEWTOWN OF VAIL BUSINESS REVIEWTOWN OF VAIL BUSINESS REVIEWTOWN OF VAIL BUSINESS REVIEW March YTDMarch YTDMarch YTDMarch YTD Sales Tax Newsletter March YTD 2013 Sales TaxMarch YTD 2013 Sales TaxMarch YTD 2013 Sales TaxMarch YTD 2013 Sales Tax March YTDMarch YTDMarch YTD 2012 2013 % Collections Collections Change VAIL VILLAGE Retail 1,242,144 1,443,344 16.20 % Lodging 1,701,015 2,029,114 19.29 % F & B 1,442,667 1,582,550 9.70 % Other 42,935 65,295 52.08 % Total 4,428,761 5,120,303 15.61 % LIONSHEAD Retail 590,433 659,805 11.75 % Lodging 1,226,494 1,340,856 9.32 % F & B 421,941 434,651 3.01 % Other 18,637 22,063 18.38 % Total 2,257,506 2,457,375 8.85 % CASCADE VILLAGE/EAST VAIL/SANDSTONE/WEST VAIL Retail 607,328 677,373 11.53 % Lodging 592,878 650,939 9.79 % F & B 215,866 217,821 0.91 % Other 16,246 19,438 19.65 % Total 1,432,317 1,565,571 9.30 % OUT OF TOWN Retail 146,154 225,311 54.16 % Lodging 132,956 119,574 -10.06 % F & B 5,186 5,720 10.30 % Utilities & Other 636,400 540,727 -15.03 % Total 920,695 891,333 -3.19 % 5/22/2013 3:03:53 PM Page 1 of 2 6/4/2013 TOWN OF VAIL BUSINESS REVIEWTOWN OF VAIL BUSINESS REVIEWTOWN OF VAIL BUSINESS REVIEWTOWN OF VAIL BUSINESS REVIEW March YTDMarch YTDMarch YTDMarch YTD Sales Tax Newsletter March YTD 2013 Sales TaxMarch YTD 2013 Sales TaxMarch YTD 2013 Sales TaxMarch YTD 2013 Sales Tax TOTALTOTALTOTALTOTAL March YTDMarch YTDMarch YTD 2012 2013 % Collections Collections Change Retail 2,586,059 3,005,833 16.23 % Lodging And Property Mgmt 3,653,343 4,140,483 13.33 % Food and Beverage 2,085,661 2,240,742 7.44 % Other 714,218 647,524 -9.34 % Total 9,039,280 10,034,582 11.01 % RETAIL SUMMARYRETAIL SUMMARYRETAIL SUMMARYRETAIL SUMMARY March YTDMarch YTDMarch YTD 2012 2013 % Collections Collections Change RETAIL-FOOD 423,122 479,794 13.39 % RETAIL-LIQUOR 170,791 187,765 9.94 % RETAIL-APPAREL 335,096 484,042 44.45 % RETAIL-SPORT 1,255,460 1,418,260 12.97 % RETAIL-JEWELRY 64,205 75,714 17.93 % RETAIL-GIFT 26,395 29,687 12.47 % RETAIL-GALLERY 19,006 19,894 4.67 % RETAIL-OTHER 290,507 309,353 6.49 % RETAIL-HOME OCCUPATION 1,476 1,323 -10.39 % Total 2,586,059 3,005,833 16.23 % 5/22/2013 3:03:54 PM Page 2 of 2 6/4/2013 MEMORANDUM May 29, 2013 To: Vail Town Council Stan Zemler Pam Brandmeyer Judy Camp From: Sally Lorton Re: April Sales Tax I estimate Vail will collect another $69,000 in April sales tax to bring April collections to $1,068,527. If so, we will be down 16.7% or $214,407 from budget and down 9.7% or $114,560 from April 2012. The ski season would be up 5.1% or $720,095 and is a record ski season for sales tax collection. 6/4/2013 % Change % Change 2013 Budget from from Month 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Budget Collections Variance 2012 Budget January 1,997,091 2,225,841 2,275,967 2,597,985 2,783,306 2,976,655 2,619,673 2,564,383 2,795,688 2,855,524 2,958,130 3,142,854 184,724 10.06%6.24% February 2,111,163 2,362,825 2,429,377 2,527,130 2,718,643 3,071,615 2,588,889 2,577,360 2,803,136 2,994,580 2,986,471 3,263,703 277,232 8.99%9.28% March 2,372,942 2,344,178 2,785,101 2,852,954 2,986,446 3,327,304 2,504,567 2,685,004 3,143,418 3,185,859 3,178,693 3,637,437 458,744 14.17%14.43% April 871,468 992,157 915,554 1,280,324 1,330,740 1,098,918 1,235,941 1,156,934 1,191,690 1,183,087 1,282,934 999,527 (283,407)-15.52%-22.09% Total 7,352,664 7,925,001 8,405,999 9,258,393 9,819,135 10,474,492 8,949,070 8,983,681 9,933,932 10,219,050 10,406,227 11,043,521 637,294 8.07%6.12% May 428,919 411,595 458,770 449,283 545,874 622,103 516,150 421,925 473,292 487,739 546,713 -100.00%-100.00% June 742,755 732,113 834,913 805,362 953,017 918,061 717,233 873,765 895,951 963,143 948,508 -100.00%-100.00% July 1,075,532 1,128,514 1,166,183 1,255,243 1,265,781 1,397,842 1,121,860 1,228,767 1,481,329 1,573,499 1,438,328 -100.00%-100.00% August 1,029,446 994,445 993,985 1,055,614 1,162,746 1,349,795 1,068,391 1,147,352 1,310,471 1,380,710 1,322,533 -100.00%-100.00% September 679,208 757,033 795,807 832,549 908,318 834,569 753,754 761,425 889,945 978,037 913,727 -100.00%-100.00% October 508,092 532,537 566,173 614,396 688,519 662,767 581,033 594,362 623,420 644,577 676,408 -100.00%-100.00% November 591,269 623,646 713,117 799,582 747,877 719,109 651,873 701,075 788,430 825,873 790,411 -100.00%-100.00% December 2,171,098 2,362,095 2,549,032 2,771,258 2,821,871 2,652,628 2,553,974 2,963,763 3,184,645 2,973,826 3,057,145 -100.00%-100.00% Total 14,578,983 15,466,979 16,483,979 17,841,680 18,913,138 19,631,366 16,913,338 17,676,115 19,581,415 20,046,454 20,100,000 Town of Vail Sales Tax Worksheet 5/29/2013 6/4/2013 - 1 - TOWN OF VAIL REVENUE HIGHLIGHTS May 31, 2013 Sales Tax Upon receipt of all sales tax returns, April collections are estimated to be $1,068,527 down 9.7% from last year and 16.7% down compared to budget. One of the reasons for the decline is that Easter fell on April 8th last year compared with March 31st this year. Year to date collections of $11,112,521 are up 8.7% from last year and up 6.8% from budget. The ski season would be up 5.1% or $720,095 and is a record ski season for sales tax collection. Inflation as measured by the consumer price index was up 1.1% for April. Real Estate Transfer Tax (RETT) RETT collections through May 30 total $1,595,149 down 27.9% from this time last year. Of current collections, approximately 9% is from major redevelopment projects including Manor Vail, Four Seasons, Ritz Carlton Residences, Solaris, and Lions Square Lodge North. Collections not related to major redevelopment projects currently total $1,451,919 down 18.8% from prior year. Lift Tax Lift Tax collections for the 2012/13 winter season total $3,833,370, 13% increase from the prior winter season collections. Summary Across all funds, year-to-date total revenue of $25.5 million is up 2.8% from budget and down 4.1% from prior year, mainly due to a slow start with RETT collections and Construction Use Tax. 6/4/2013 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 4, 2013 ITEM/TOPIC: Matters from Mayor.Council and Committee Report 6/4/2013 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 4, 2013 ITEM/TOPIC: Executive Session, pursuant to: 1) C.R.S. §24-6-402(4)(b)(e) - to receive legal advice on specific legal questions; and to determine positions, develop a strategy and instruct negotiators, Regarding: Council Roles and Responsibility, Town of Vail Development Regulations and update on pending litigation. PRESENTER(S): Matt Mire 6/4/2013 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 4, 2013 ITEM/TOPIC: Adjournment (4:00 p.m.) NOTE: UPCOMING MEETING START TIMES BELOW (ALL ARE APPROXIMATE DATES AND TIMES AND SUBJECT TO CHANGE) -------------------- THE NEXT REGULAR VAIL TOWN COUNCIL REGULAR WORK SESSION WILL BEGIN AT APPROXIMATELY 12:30 P.M. (or TBD), TUESDAY, JUNE 18, 2013 IN THE VAIL TOWN COUNCIL CHAMBERS FUTURE AGENDA ITEMS: Ongoing agenda items TBD: DRB/PEC updates - Warren - WS - 15 min.; Information Updates Attachments: WS - 15 min.; Executive Session items: 30 min.; Consent Agenda: 5 min.; Town Manager Report: 5 min. FUTURE AGENDA ITEMS: Ford Park Phase I Improvements Site Visit - WS - Greg Hall - 60 min. - 6/18 Council call up of Traveler Book Gallery - George Ruther - 6/18 Traveler Book Gallery Site Visit - WS - George Ruther - 6/18 Mountain Travel Update - WS - Ralf Garrison - 30 min. - 6/18 Ransberg Hearing - WS - George Ruther - 30 min. - 6/18 Vail Village Info Center - ES - Greg Hall - 30 min. - 7/2 Council call up of Wall Street Commercial - George Ruther - 7/2 Site visit to Wall Street Commercial - George Ruther - 7/2 Update on 2012-13 Legislative Session, including marijuana and collective bargaining - WS - Matt Mire -7/2 Ford Park Sport Field Contract Award- ES - Todd O - 30 min. - 7/16 Approval of contractor for operational management of Vail Welcome Center & Host Program - Suzanne - ES - 7/16 Plastic Bag Initiative Community Discussion -TBD Gore Creek Public Sign Campaign - George - WS - 20 min. - TBD Sign Code/Sponsor Vehicle Location - George - WS - 15 min. - TBD ERWSD easements - Todd Fessenden - ES - 30 min. - TBD 1st reading of Ord #1 - Charter Split - Matt M - ES - 30 min. - TBD ROI Document Presentation - Adam Sutner - WS - 20 min. - TBD EHU Housing Authority - TBD 2015 WAC construction restrictions discussion - George - WS - 30 min. - TBD VVMC/TOV discussion on MOB - Doris Kirchner, VVMC - ES - 30 min. - TBD Strategic Parking Plan discussion - Greg H. - WS - 30 min. - TBD Sister City discussion - TBD Open Space Discussion with Toby Sprunk, Eagle County Open Space Director - TBD Discussion of future of RSES - TBD Streaming PEC & DRB - TBD Vail Village Character Preservation Update - TBD 6/4/2013