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HomeMy WebLinkAbout2014-06-03 Agenda and Support Documentation Town Council Evening SessionVAIL TOWN COUNCIL EVENING SESSION AGENDA VAIL TOWN COUNCIL CHAMBERS 75 S. Frontage Road W. Vail, CO 81657 6:00 P.M., JUNE 3, 2014 NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what time Council will consider an item. 1. ITEM/TOPIC: Citizen Participation (10 min.) 2. ITEM/TOPIC: Consent Agenda: 1) Minutes from May 6, 2014 Council Meeting 2) Minutes from May 20, 2014 Council Meeting (5 min.) 3. ITEM/TOPIC: Town Manager's Report: 1) Review proposed dates for touring housing projects in Frisco and Breckenridge; 2) Town of Vail Recycling Rebate and Incentive Program update (5 min. ) 4. ITEM/TOPIC: Appoint two members to the Local Licensing Authority (LLA). (5 min.) ACTION REQUESTED OF COUNCIL: The Council interviewed all interested parties at the work session and Council should appoint two members to the LLA for two year terms. BACKGROUND: The Town received two letters of interest for the open positions on the LLA as follows (incumbent board members are asterisked): LLA: Craig Arseneau and Michael Hannigan* 5. ITEM/TOPIC: Presentation of the 2013 audited financial statements for the Town of Vail. (15 min.) PRESENTER(S): Kathleen Halloran and Michael Jenkins, McMahan and Associates ACTION REQUESTED OF COUNCIL: The 2013 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 2013 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 - this presentation is for information only. 6/3/2014 6. ITEM/TOPIC: A request to proceed through the development review process with a proposal to construct an addition to the Colorado Ski and Snowboard Museum on the Town of Vail owned Vail Village parking structure, located at 231 East Meadow Drive/Tracts B and C, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. (20 min.) PRESENTER(S): Joe Batcheller, Planner ACTION REQUESTED OF COUNCIL: On behalf of the property owner, the Vail Town Council shall approve, approve with conditions, or deny the applicant’s request for property owner authorization to proceed through the Town’s development review process. 7. ITEM/TOPIC: Adjournment (7:00 p.m.) 6/3/2014 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 3, 2014 ITEM/TOPIC: Citizen Participation 6/3/2014 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 3, 2014 ITEM/TOPIC: Consent Agenda: 1) Minutes from May 6, 2014 Council Meeting 2) Minutes from May 20, 2014 Council Meeting ATTACHMENTS: Minutes from May 6, 2014 Meeting Minutes from May 20, 2014 Meeting 6/3/2014 Town Council Meeting Minutes of May 6, 2014 Page 1 Vail Town Council Meeting Minutes Tuesday, May 6, 2014 6:00 P.M. Vail Town Council Chambers The regular meeting of the Vail Town Council was called to order at approximately 6:00 P.M. by Mayor Andy Daly. Members present: Andy Daly, Mayor Ludwig Kurz Margaret Rogers Greg Moffet Jenn Bruno Members absent: Dale Bugby Dave Chapin Staff members: Stan Zemler, Town Manager Matt Mire, Town Attorney Patty McKenny, Town Clerk Tammy Nagel, Legal Assistant _________________________________________________________________ The first item on the agenda was Citizen Participation. There were no comments at this time. The second item on the agenda was the Consent Agenda. 1) Minutes from April 1, 2014 meeting. Moffett moved to approve the minutes; Ludwig seconded the motion and it passed unanimously (5-0). 2) Minutes from April 15, 2014 meeting. Moffett moved to approve the minutes; Ludwig seconded the motion and it passed unanimously (5-0). 3) Proclamation No. 2 declaring the month of May 2014 as “Building Safety Month.” Martin Haeberle, Chief Building Official, addressed the Town Council with the proclamation and an update about an upcoming appreciation luncheon TOV Community Development would be hosting. Haeberle hopes to provide an opportunity for those in the industry to interact with the community in a regional social environment that might help create more awareness for building codes and safety priorities. Moffett moved to approve Proclamation No. 2 and Rogers seconded the motion. The Council unanimously approved the motion (5-0). 4) Proclamation No. 3 declaring May as National Physical Fitness and Sports Month as sponsored by Colorado Governor’s Council for Active and Healthy Lifestyles The proclamation was read in full by Moffet. Kurz moved to approve Proclamation No. 3 with a second by Moffet. The motion was unanimously approved (5-0). There was recognition of Town Manager Stan Zemler’s birthday at this time. 6/3/2014 Town Council Meeting Minutes of May 6, 2014 Page 2 5) Parking Equipment Contract. Council inquired about the status of keeping “car counts” in the parking garage so the general public could check Vail’s website for parking updates. Transit Manager Mike Rose noted that currently estimates are provided by showing the percentage of spaces left in the structures. Rose estimated another $200,000 to the contract price to include the ability to provide directions to vacant spaces within the parking structures. After some discussion council agreed this would be too costly and the information currently provided would suffice. Moffet moved to direct the Town Manager to execute the contract with Protection Tech at the current $600K price. Kurz seconded the motion and it passed unanimously (5-0). There were no public comments. The third item on the agenda was Town Manager’s Report. Town Manager Stan Zemler noted the east units of Timber Ridge Apartments had been vacated and the area had been roped off with remediation efforts beginning immediately to remove the asbestos. The fourth item on the agenda was an update on the I-70 Vail Underpass. Town Engineer Tom Kassmel presented another option to the new multimodal pedestrian and vehicular connection that will be midway between Main Vail and West Vail exits, passing under I-70. There was further evaluation of 4 options and more specifically the 4th option of a Compact Roundabout which is 30% smaller than traditional roundabouts with far less impacts on adjacent properties. It was noted the underpass had been identified in the Vail Transportation Master Plan (VTMP) and in the Colorado Department of Transportation (CDOT) I-70 Programmatic Environmental Impact Statement (PEIS) as a critical link between the North and South Frontage Roads. The Town and CDOT recently entered into a Letter of Commitment and an Inter-Governmental Agreement (IGA) to jointly fund the design and construction of this project with an expected completion date of December of 2017. CDOT, the Town of Vail, and the selected design consultant, Felsburg, Holt & Ullevig (FHU), have begun the design process based on the recently endorsed preferred location of the underpass. Rick Rejavec, engineer with FHU, presented the options in more detail noting the three intersection configurations with a review of pros and cons for each as described in the council packet memo.  T Intersection with WB Bypass / T Intersection with EB Bypass  T Intersection with WB Bypass / Single Lane Roundabout w/ Aux. Lane  Single Lane Roundabout w/ Aux. Lane / Single Lane Roundabout w/ Aux. Lane  Compact Roundabout / Single Lane Roundabout w/ Aux. Lane (new concept) The criteria used by the project team to evaluate the options were reviewed as follows: •Design Service Life 20 Years • LOS D (Revised) • Vail’s Planning Objectives • Safety (Vehicular, Bicycle, Pedestrian) • Maintenance • Access (Adjacent private property and community wide) • Environmental Impacts (Noise, Light, Property, Water Quality, etc…) • Aesthetics • Scalability (Future capacity) • Construction Cost, ROW, Duration 6/3/2014 Town Council Meeting Minutes of May 6, 2014 Page 3 Kassmel noted that based on a review of the conceptual design layouts and the evaluation criteria matrix, the design team recommended option 4, the Compact Roundabout / Single Lane Roundabout w/ Aux. Lane. This option would provide for current and future traffic needs, is an intersection configuration that is familiar within Vail, provides the safest intersection configuration, provides the least encroachment into private property, and will provide an aesthetically pleasing design for Vail. There was further discussion about option 4, the Compact Roundabout, and noted by CDOT they would agree to continue funding the project whether or not it is a compact roundabout. Mayor Daly asked for public comment with input from the following people:  Charlie Calcaterra, Simba Run Homeowners Association, complimented all those involved in the process and noted there had been cooperation from property owners, Vail staff and the project team of engineers, noting their support was with the compact roundabout option.  Bill Pierce, Simba Run homeowner, thanked the engineering team that worked so hard to get an acceptable solution. The Council noted a job well done to all involved and thanked CDOT and the neighborhood residents as well. There was unanimous Council and public approval for staff’s recommendation to move forward with option 4, the Compact Roundabout / Single Lane Roundabout w/ Aux. Lane. The fifth item on the agenda was consideration of Phase II of the Town of Vail’s Facility Wide Energy Conservation Project through use of LED lighting technology, supported by Holy Cross Energy’s Think BIG Grant. Public Works Director Greg Hall presented the topic with highlights taken from the packet memo noting that there is a continuing effort to meet the Town of Vail’s adopted sustainability goal of reducing the town’s 2006 baseline energy consumption and greenhouse gas emissions by 20% by 2020. The conversion of the town street lights alone did not meet the savings requirements of the Think BIG grant, so in order to meet the requirements; Illuminex recommended upgrading current fluorescent facility lighting in addition to street lighting to LED technology. Hall provided updates about rebates, energy savings, grants update, return on investment, etc. Moffet moved to direct staff to finalize the neighborhood streetlight design and enter into a contract for Phase II of the Facility - Wide Energy Conservation Project up to $543,868, and to supplement the budget up to $156,981 additional dollars from the capital projects fund balance. Ludwig seconded the motion and it received unanimous support (5-0). No public comments were made. The sixth item on the agenda was First reading of Ordinance No. 11, Series of 2014, an ordinance repealing and reenacting the approved development plan for Phase III of Special Development District No. 6, Vail Village Inn, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for an increase in gross residential floor area to facilitate additions to existing dwelling units, located at 100 East Meadow Units 501 and 502 (Vail Village Inn, Phase III) /Lot O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. At this time Kurz disclosed he and the project architect serve on a board together in Beaver Creek. It was determined there was no conflict of interest on this agenda matter. Planner Jonathan Spence presented the application noting that Vail Village Inn Phase III is proposing to add about 792 sq. ft. of GRFA to units 501 and 502; he noted that PEC recommended approval of Ord. No. 11. There were some questions related to whether or not the applicant was providing public benefit to the community with the amendment to the project, such as employee housing or parking. The applicant: Deltec Bank and Trust represented by Don Eggers, the architect on the project, noted the roof improvements were considered the community benefit. 6/3/2014 Town Council Meeting Minutes of May 6, 2014 Page 4 There was some discussion about whether or not this would suffice as enough benefit for the broader community. Staff highlighted as stated in the memo, the scope of the project did not necessitate considerable benefit as the adverse effects presented as a result of the amendment were in fact negligible, and noted the materials used in the roof improvements were adequate as the “benefit.” It was agreed that the subject matter might deserve more study in light of some of the concerns raised. Kurz moved to approve Ordinance No 11, Series of 2014, with the following conditions: 1. This SDD major amendment approval is contingent upon the applicant obtaining Town of Vail approval of the associated design review application, including compliance with Sec. 14-10-5 Building Materials and Design, Vail Town Code, 2. The applicant shall mitigate the employee generation impact created by the addition of 792 square feet of GRFA in accordance with the provisions of Chapter 12-24, Inclusionary Zoning, Vail Town Code. The applicant shall make the required fee in lieu payment to the Town of Vail prior to the issuance of any building permit. 3. The applicant shall receive and submit in conjunction with the building permit, all applicable Colorado Department of Transportation approvals for all impacts to the South Frontage Road East, including construction staging, if necessary. 4. The applicant shall amend the recorded condominium map to reflect the increase in floor area and space designation, prior to requesting any certificate of occupancy inspection. 5. The applicant shall replace the three (3) existing street lights located along the Frontage Road with Town of Vail street lights per Public Work’s specification. The location of the streetlights is depicted in the Streetlight Exhibit, included as Attachment C to the May 6, 2014 PEC130046 Town Council Memo. The number of new fixtures shall be determined by the Director of Public Works and will not exceed three. The new street lights shall be installed prior to requesting any certificate of occupancy inspection. Rogers seconded the motion and it passed with a 4 to 1 vote (Moffet opposed). The sixth item on the agenda was the consideration of Resolution No. 16, Series of 2014 A Resolution Approving the Purchase of Property in the Town of Vail Legally Described as Unit 11, Vail Heights Condominiums, Eagle County, Colorado with a Physical Address of 2079 Chamonix Lane No. 11, Vail, Colorado; and Setting Forth Details in Regard Thereto. Both Nina Timm, Housing Coordinator, and Krista Miller, Human Resources Director, described the status of this situation with an opportunity to purchase a unit which was deed restricted. Their request was to purchase the property for rental use for critical and essential service employees (emergency & police personnel). It was noted that a married couple who are both town employees are interested in the unit. The historical information showed that on September 7, 2007 the town deed restricted unit No. 11, Vail Heights Condominiums. The deed restriction included a three percent annual price appreciation cap and additional language that the occupant of the unit shall be a full time employee of the town and their families. In 2007 the town sold the unit to one of its full time employees. That employee had owned the unit and lived in it since then. At the end of February 2014 that employee purchased a Vail Commons two- bedroom unit and listed the Vail Heights unit for sale. The town actively sought another town employee to purchase the one-bedroom unit. At this time no town employees have come forward to purchase the unit, while in the past year the town has seen an uptick in demand from its employees for rental units. One-bedroom rental units constantly have the highest demand from a renter perspective. Staff recommended the council approve Resolution No. 16, Series of 2014 based on some of the following reasons:  The unit was purchased to house Town of Vail employees  Rental demand is increasing 6/3/2014 Town Council Meeting Minutes of May 6, 2014 Page 5  Demand for one-bedroom rental units is strongest  The unit has been recently renovated, has sufficient parking and is well located  The town can choose to sell the unit at a later time, maintaining the deed restriction The purchase price was identified as $212,548. Moffet moved to approve Resolution No. 16, Series of 2014. Rogers seconded the motion and it passed unanimously (5-0). The eighth item on the agenda was adjournment. There being no further business to come before the council, Moffet moved to adjourn with a second from Kurz. The motion passed unanimously, 5-0 and the meeting adjourned at 7:30 p.m. Respectfully Submitted, Attest: __________________________________ Andrew P. Daly, Mayor ___________________________________ Patty McKenny, Town Clerk 6/3/2014 Town Council Meeting Minutes of May 20, 2014 Page 1 Vail Town Council Meeting Minutes Tuesday, May 20, 2014 6:00 P.M. Vail Town Council Chambers The regular meeting of the Vail Town Council was called to order at approximately 6:00 P.M. by Mayor Andy Daly. Members present: Andy Daly, Mayor Greg Moffet Jenn Bruno Dave Chapin Dale Bugby Members absent: Ludwig Kurz Margaret Rogers Staff members: Stan Zemler, Town Manager Matt Mire, Town Attorney Pam Brandmeyer, Assistant Town Manager Patty McKenny, Town Clerk ____________________________________________________________________________ The first item on the agenda was the 2014 Youth Recognition Awards. Mayor Andy Daly presented these awards to Eva Hutchinson – Battle Mountain High School and Anthony “Clay” Kirwood – Vail Mountain School. He noted that the purpose of the awards was to recognize and reinforce outstanding achievement by youth of the Upper Eagle Valley, both for their individual achievements and as role models for their peers. The second item on the agendas was Citizen Participation. There were no comments at this time. The third item on the agenda was the Consent Agenda. 1) Easement Vacation at 2754 Snowberry Drive Staff suggested vacating this portion of the Roadway, Parking and Utility Easement with the condition that all other applicable utility agencies also agree to vacate the easement. Moffet moved to approve the consent agenda with a second by Bruno. The motion was unanimously approved (5-0). The fourth item on the agenda was the Town Manager’s Report which included a request from the Eagle Air Alliance group, including President Mike Brown & Vail Valley Partnership (VVP) Director Chris Romer, inviting a couple of Vail Town Council members to join them in discussions about plans for growing their services and funding opportunities. Councilors Moffet and Bruno volunteered to serve in this capacity with EGE. He also noted the Vail Valley Medical Center provided a master plan update at the work session earlier as well as at a Planning & Environmental Commission last Monday. It was noted that there was a request for 6/3/2014 Town Council Meeting Minutes of May 20, 2014 Page 2 additional parking and maybe a public / private parking scenario would be reviewed. This topic would receive multiple public hearings for citizen input and would likely be scheduled in July. The fifth item on the agenda was an update regarding the outcome of the April 24 neighborhood planning meeting for Booth Creek Park. Todd Oppenheimer, Project Manager, spoke about two possible philosophical approaches the Council could take in selecting the design for Booth Creek Park. He spoke about the first one as a direct response to the neighborhood input as the primary users of the facility. In this approach the town-wide park system and community demand is considered to a lesser degree than those of the neighborhood. This approach acknowledges Booth Creek Park as a public space dedicated to the town by the developer and intended to serve the needs of the neighborhood. He then spoke about the second approach as a park system-wide approach looking to fill demand for recreation activities that are currently under provided in the community. In this approach the neighborhood desires are considered; however; the larger needs of the community are equally important. He reviewed staff’s recommendations noting that an approach that favors the neighborhood in the design of Booth Creek Park. The property was dedicated to the town for the benefit of the neighborhood and the small, 3 acre site does not lend itself to fulfilling community park needs. Staff recommended the Council consider the following lists for elements to include and to discard in subsequent options for the development of the park. On the 3 acre Booth Creek Park site additional prioritization included park elements may be required to avoid over- development and possibly exceeding budget allocations. Elements to Include: Single tennis court. Half court basketball/multiuse court with a rebound wall. Artist inspired, natural playground. -stall, 3 season public restroom. he park. , etc. -street parallel parking. Elements to Discard were noted as follows: eball courts. -site parking. Public input was received at this time and several community members provided input as follows:  Joe Rink, resident, supported the nature of a neighborhood park with a request for two pickleball courts to be included.  Art Abplanalp, representing the Carnie family, thanked Council for evaluating the input from the neighborhood noting the park does need some attention. His clients were supportive of staff’s list and conclusions and noted that they agreed there is a need for pickleball courts, but did not support it at the Booth Creek Park location. 6/3/2014 Town Council Meeting Minutes of May 20, 2014 Page 3  Peggy Nicholls, resident, appreciated the park improvements hoping to keep it as a low key gathering place. She also expressed concern with having meetings during the off-season noting that no one was around to attend the meeting or give input. She suggested they wait on any final decision until more people can participate in the process.  Penny Turillo, resident, thanked staff for holding the meetings and providing for recommendations that support the neighborhood. She preferred that more “study” be completed on sound impacts and hoped that a berm or sound barrier would be included in the improvements. With this public input and after further Council discussion, the following next steps were identified:  Engage Recreation Subcommittee and Vail Recreation District to help in providing suggestions as to where a good location might be for the pickleball courts.  Include the bridge in the improvements with necessary engineering study.  Follow up meetings with the neighborhood and those parties interested in finalizing the park improvements Council directed staff to work with the Vail Recreation District and Recreation Subcommittee to continue reviewing the opportunities listed for park improvements and to assist with evaluating the community’s request for pickleball courts and finding the “right” location. Mayor Daly thanked community members for their participation and input in the process. The sixth item on the agenda was a presentation of the Draft Market Analysis – Chamonix For- Sale Housing Study. George Ruther, Community Development Director, noted the Town of Vail acquired the Chamonix Parcel with the expressed intent of developing deed restricted housing on the site and that a master plan for the development of the site has been completed and adopted by the Town Council and previous market studies have been prepared. In January of 2014, the Vail Town Council instructed staff to coordinate the completion of an update market study for the Chamonix Parcel. The updated study was completed and presented by Melanie Rees, Rees Consulting, Inc., and is to be used to guide future decision making with regard to the potential for development on the site. The presentation included a summary of the purpose of the study, an overview of the current master plan for the site, a locational analysis, area demographic and economic information, a rental market overview, summary of current market conditions and demand estimates, competitive analysis and information on mortgage availability. The presentation ended with a series of conclusions and recommendations for Town Council’s consideration based upon information contained within the study. She spent considerable time highlighting the results of the study. After the presentation, Town Council provided the following input:  Review the question and assumptions again.  Review policy objectives again.  What is the current demand for housing?  What market is Vail trying to attract? Families?  Is it time to look at a model that has fewer units that are larger with less overall density?  What square footage do families require?  Is structured pricing part of the program again?  Need housing options that help retain residents.  Preview what has been done in Frisco and Breckenridge.  What model should be used with developers?  Are there public/private partnership opportunities? 6/3/2014 Town Council Meeting Minutes of May 20, 2014 Page 4  How can schools help retain community? The public was invited to comment at this time. After much discussion about the study and potential future housing needs there were some next steps identified as follows: 1) Community Development staff to facilitate a work session that would focus on addressing and discussing overall housing strategy for the future; 2) Identify and address each housing market segment; 3) Analyze and identify more exemplary sites so that future site visits can be arranged to help in providing examples that are working; 4) Contact and include Vail Board of Realtors in the discussion; 5) Include the Vail Local Housing Authority in the discussion as well. The seventh item on the agenda was the request for additional antenna system nodes from Crown Castle International in order to help improve signals in certain areas of Vail. Ron Braden, IT Director, presented the request along with an update on the project. He noted that while construction has already begun on the remaining 23 DAS nodes, Crown Castle requests an additional six nodes in order to accommodate Verizon’s and Sprint’s need for coverage, the carriers who have recently signed on to provide service. So in light of new carriers, there is a need for a third set of antennas to the seven poles. It was noted that council’s objective has been to offer world class cellular service in Vail, and if this can be accomplished before 2015, that would be great. There were some comments about the visual impacts; however, overall there was unanimous support to move forward with the request. Moffet moved to approve the request for an additional 7 antenna nodes; Chapin seconded the motion and it passed unanimously (5-0). There was no public input on the topic. There was a brief comment about the related costs of the installation of the nodes. The eighth item on the agenda was second reading of Ordinance No. 11, Series of 2014, an ordinance repealing and reenacting the approved development plan for Phase III of Special Development District No. 6, Vail Village Inn, pursuant to Section 12-9A-10, Amendment Procedures, Vail Town Code, to allow for an increase in gross residential floor area to facilitate additions to existing dwelling units, located at 100 East Meadow Units 501 and 502 (Vail Village Inn, Phase III) /Lot O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. Planner Jonathan Spence presented the application noting that Vail Village Inn Phase III is proposing to add about 792 sq. ft. of GRFA to units 501 and 502; he noted that PEC recommended approval of Ord. No. 11. The ordinance was approved on May 6th on first reading. While there were questions at the last meeting about the public benefit offered as part of the amendment to the development plan, most council members were satisfied with the fact the roof would be redone serving as public benefit to the complex and town. Moffet did not see the exchange as equitable since with the approval of the amendment the town was granting property owners an additional $2M in property value. There was also additional information presented in the council packet memo that addressed questions concerning parking requirements for residential units in the vicinity of SDD No. 6, provided as Attachment B. Bugby moved to approve Ordinance No 11, Series of 2014. It was requested by staff to include the PEC conditions and findings with the motion; Bugby agreed to include conditions and findings with the motion as follows: PEC Conditions - 1. This SDD major amendment approval is contingent upon the applicant obtaining Town of Vail approval of the associated design review application, including compliance with Sec. 14-10-5 Building Materials and Design, Vail Town Code, 6/3/2014 Town Council Meeting Minutes of May 20, 2014 Page 5 2. The applicant shall mitigate the employee generation impact created by the addition of 792 square feet of GRFA in accordance with the provisions of Chapter 12-24, Inclusionary Zoning, Vail Town Code. The applicant shall make the required fee in lieu payment to the Town of Vail prior to the issuance of any building permit. 3. The applicant shall receive and submit in conjunction with the building permit, all applicable Colorado Department of Transportation approvals for all impacts to the South Frontage Road East, including construction staging, if necessary. 4. The applicant shall amend the recorded condominium map to reflect the increase in floor area and space designation, prior to requesting any certificate of occupancy inspection. 5. The applicant shall replace the three (3) existing street lights located along the Frontage Road with Town of Vail street lights per Public Work’s specification. The location of the streetlights is depicted in the Streetlight Exhibit, included as Attachment C to the May 6, 2014 PEC130046 Town Council Memo. The number of new fixtures shall be determined by the Director of Public Works and will not exceed three. The new street lights shall be installed prior to requesting any certificate of occupancy inspection. Council Findings - 1. That the special development district amendment complies with the standards listed Article 12 -9A, Special Development District, or that a practical solution consistent with the public interest has been achieved. 2. That the special development district amendment is consistent with the adopted goals, objectives and policies outlined in the Vail comprehensive plan and compatible with the development objectives of the town; and 3. That the special development district amendment is compatible with and suitable to adjacent uses and appropriate for the surrounding areas; and 4. That the special development district amendment promotes the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality.” Chapin seconded the motion and it passed (4 to 1; Moffet opposed). The ninth item on the agenda was adjournment. There being no further business to come before the council, Moffet moved to adjourn with a second from Chapin. The motion passed unanimously, 5-0 and the meeting adjourned at 8:00 p.m. Respectfully Submitted, Attest: __________________________________ Andrew P. Daly, Mayor ___________________________________ Patty McKenny, Town Clerk 6/3/2014 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 3, 2014 ITEM/TOPIC: Town Manager's Report: 1) Review proposed dates for touring housing projects in Frisco and Breckenridge; 2) Town of Vail Recycling Rebate and Incentive Program update ATTACHMENTS: Recycling Rebate and Incentive Program Update 6/3/2014 TO: Vail Town Council FROM: Community Development Department DATE: June 3, 2014 SUBJECT: Town of Vail Recycling Rebate and Incentive Program Update I. SUMMARY On May 6, 2014 the Vail Town Council instructed staff to develop a recycling rebate and incentive program to accompany the new regulations. The purpose of the program is to ease the transition for residents and businesses by alleviating a portion of any financial burden associated with new wildlife resistant containers, additional hauling costs, and start-up fees. Council approved a $200,000 total budget for the first phase of the program, to be implemented for 90 days following the effective date of Ordinance No. 6, Community-Wide Recycling, of July 1, 2014. Unless otherwise directed, the program will be approved as part of the review of the supplemental budget on July 15th, 2014. II. COMMUNITY-WIDE RECYCLING REBATE PROGRAM 1. Who is eligible for a rebate on new wildlife containers? All residential customers on single cart service (non-dumpster service) are eligible for a $100 rebate under the following terms: Residential Customer Container Rebate: Customers present the Town of Vail a receipt of purchase of wildlife resistant container(s) and receive a rebate check of $100. This option shall be limited $125,000, and be available for 90 days following the effective date of Ordinance No. 6, 2014. Program details: • Customer must complete the Town of Vail Recycling Rebate form (draft form may be found in Attachment A). • Customer must present a proof of Vail residency or verification of property ownership (tax bill). • Customer must present proof of purchase (not renting or leasing) of wildlife proof container from their waste hauler or other container supplier, which will verify that trash/recycling service is provided and container has been purchased. • Customer must indicate whether they purchased a trash or recycling container, size, and which level of trash service they have selected. 6/3/2014 Town of Vail Page 2 • Customer must be approved by the Community Development Department, and rebate check will be issued in the amount of $100 flat rate rebate per container. 2. Are the $100 rebates limited to one per household? No, if customers or property managers require more than one container for their property, they maybe receive rebates for each so long as they demonstrate proof of purchase and service. 3. How much money will be available for residential customer container rebates, and for how long? A total of $125,000 has been appropriated by the Vail Town Council for residential customer container rebates for the first 90 days following July 1, 2014. The Vail Town Council will evaluate whether the demand has been met or if there are additional funding needs on or before the Town Council session on September 15, 2014. 4. Does the residential customer rebate apply to a trash container as well as a recycling container? Yes, customers may choose to down-size their trash container and use their existing 96 gallon container as their new recycling container. The Town will rebate either type of container. 5. Will the waste haulers provide an exchange program for containers? For example, if customers wish to turn in their 96 gallon trash container for a smaller 64 gallon trash container, will they receive credit? At this point, the waste haulers will not provide a credit for used containers, as there is not an after-market use for them. Because customers are purchasing the container they expect a new product. There may be a small after-market use in commercial environments but not enough for the waste haulers to establish this program. 6. Will the Town of Vail also provide businesses a rebate and if so, how does it work? Yes, the Vail Town Council approved a commercial customer rebate program of a one- time $750 maximum rebate per business, according to the following terms: Commercial Customer Rebate: In order to support Vail’s business community in transitioning to recycling as part of standard business practice, the Town of Vail will offer a one-time rebate for 90 days following the effective date of Ordinance No. 6. Business will be offered a 50% rebate up to $500 when they sign up for new recycling service for one year, plus they are eligible for up to 75% of start up costs (bins, signage, etc.) of up to $250. 6/3/2014 Town of Vail Page 3 Start-Up Cost Rebate Details: • Business will complete the Town of Vail Recycling Rebate Program form, and supply proof of purchase to the Community Development Department of bins, signage, etc. used to implement their new recycling program. • If approved, business will receive a check in the amount of $250 provided their total start up cost is equal to or greater than $333.00. Hauling Cost Rebate Details: • Businesses must complete the Town of Vail Recycling Rebate form and supply at least one month’s hauling fees. • Provided the customer’s hauling fees are equal to or greater than $1,000 for the year with the addition of a newly implemented (or enhanced) recycling program verified by their hauler, the business will receive a check for $500. 7. How much money has the Vail Town Council appropriated for the Commercial Customer Rebate Program? The Town Council has appropriated $75,000 for the Commercial Customer Rebate Program for the first 90 days after the effective date of Ordinance No. 6, and will reevaluate additional funding needs on or before the Town Council session on September 15, 2014. III. PHASED IMPLMENTATION Per Town Council direction upon adoption of Ordinance No. 6, a phased-approach will be applied to the Community-Wide Recycling program implementation, similar to the implementation of the wildlife container ordinance. Recycling Program Soft-Launch • Rebate Program: The rebate program will be effective from July 1st- Oct 1st in order to encourage early-adoption and participation in upgrading containers, retrofitting recycling areas, purchasing materials, training staff, etc. Following the first 90 days of the program, Town Council will review additional funding needs and or an extension of the program. • Educational Period: Working with waste haulers and community members, staff along with Vermilion and Walking Mountains Science Center will conduct education and outreach associated with the rebate program as well as the where, when and how of recycling for the first 90 days of the program, and following until January, 2015. • Enforcement: Ordinance No. 6 will go into effect on July 1st, however NO enforcement action will be taken against any customer until January 31, 2015 by Town of Vail Code Enforcement for recycling. IV. ATTACHMENTS A. Town of Vail Recycling Rebate Form 6/3/2014 $100 CONTAINER REBATE Town of Vail RECYCLING Rebate 1. $100 per container rebates available to Vail  residents and property owners only. 2. Rebates available for purchase of any new  recycling or trash container.  3. Property managers may apply for rebates on  behalf of customer, but rebate form must be  signed by property owner. 4. Rebates issued on a first‐come, first‐served basis. 5. Rebate forms must be submitted by Oct. 1, 2014  to qualify.   STEP 1:  Complete rebate form STEP 2:  Attach receipt for containers from waste  hauler as verification of trash and recycling service  and purchase of container(s).  STEP 3: Mail or deliver form to: Town of Vail  Community Development Department  Attn: Recycling Rebate  75 S. Frontage Rd W. Vail, CO 81657 For more information: 970‐477‐3455 or www.vailgov.com/recycling Name___________________________________ Physical Address__________________________ Mailing Address___________________________ Phone___________________________________ By checking this box I verify that I am a Vail resident or property owner and have purchased a new container for   use in Vail as part of the new recycling program.  I have purchased the following size container(s): 32 gal     No._______ 64 gal     No._______ 96 gal     No._______ I am using the container for  trash recycling I am participating in Save as You Recycle   START UP COST and HAULING FEE REBATE 1. Rebates available to Vail business owners only 2. Rebates issued on a first‐come, first‐served basis. 3. Rebate forms must be submitted by Oct. 1, 2014 to qualify.   4. Eligible start up costs include new signage, graphic design, new  containers, website upgrades or other educational material. 5. Business are eligible for up to $250 toward start up costs up to 75%  of the total, plus $500 toward hauling fees for up to 50% of 1 year’s  estimated costs. Business must submit at least 1 month’s hauling bill. STEP 1:  Complete rebate form STEP 2:  Attach start up receipt(s)  STEP 3: Mail or deliver form to: Town of Vail  Community Development Department  Attn: Recycling Rebate  75 S. Frontage Rd W. Vail, CO 81657 Name__________________________________________ Business Name___________________________________ Business Physical Address__________________________ Business Mailing Address___________________________ Phone__________________________________________ By checking this box I verify that I am a Vail business owner and  am submitting this rebate application for start‐up and or hauling costs  associated with a new recycling program.  I have purchased for the start up rebate: Signs Graphic Design Containers Other__________________ My business hauling fees $______ annually. My rebate request is $_______. 6/3/2014 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 3, 2014 ITEM/TOPIC: Appoint two members to the Local Licensing Authority (LLA). ACTION REQUESTED OF COUNCIL: The Council interviewed all interested parties at the work session and Council should appoint two members to the LLA for two year terms. BACKGROUND: The Town received two letters of interest for the open positions on the LLA as follows (incumbent board members are asterisked): LLA: Craig Arseneau and Michael Hannigan* 6/3/2014 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 3, 2014 ITEM/TOPIC: Presentation of the 2013 audited financial statements for the Town of Vail. PRESENTER(S): Kathleen Halloran and Michael Jenkins, McMahan and Associates ACTION REQUESTED OF COUNCIL: The 2013 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 2013 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 - this presentation is for information only. ATTACHMENTS: Power pt Fin'ls 2013 Financials 6/3/2014 20 1 3 F i n a n c i a l S t a t e m e n t s a n d A u d i t R e p o r t FI N A N C E D E P A R T M E N T Ju n e 3 , 2 0 1 4 Photo by Jack Affleck 6/3/2014 20 1 3 F i n a n c i a l S t a t e m e n t s a n d A u d i t R e p o r t FI N A N C E D E P A R T M E N T Ka t h l e e n H a l l o r a n , C . P . A . As s i s t a n t F i n a n c e D i r e c t o r Mi c h a e l N . J e n k i n s , C . A . , C . P . A Pa r t n e r Mc M a h a n a n d A s s o c i a t e s , L . L . C . Of f i c e : 1 . 9 7 0 . 8 4 5 . 8 8 0 0 mi c h a e l . j e n k i n s @ m c m a h a n c p a . c o m 2 To w n  of  Va i l    |   Fi n a n c e  De p a r t m e n t  |   06 / 0 3 / 2 0 1 4 6/3/2014 20 1 3 F i n a n c i a l S t a t e m e n t s GO V E R N M E N T - W I D E F I N A N C I A L S T A T E M E N T S Pr o v i d e a b r o a d o v e r v i e w s i m i l a r t o a p r i v a t e s e c t o r b u s i n e s s , i n c l u d i n g ca p i t a l a s s e t s a n d l o n g - t e r m d e b t o n a f u l l a c c r u a l b a s i s ST A T E M E N T O F N E T P O S I T I O N As s e t s e x c e e d l i a b i l i t i e s b y $ 1 8 7 . 6 M $1 1 4 . 2 M n e t i n v e s t m e n t i n c a p i t a l a s s e t s $1 . 7 M T A B O R r e s e r v e s ; $ 2 4 . 5 M r e st r i c t e d ; $ 4 7 . 2 M u n r e s t r i c t e d ST A T E M E N T O F A C T I V I T I E S $8 . 0 i n c r e a s e i n n e t p o s i t i o n $6 0 . 0 M r e v e n u e ; $ 1 4 . 3 M p r o g r a m s pe c i f i c a n d $ 4 5 . 7 M g e n e r a l r e v e n u e $5 1 . 9 M e x p e n s e s 3 To w n  of  Va i l    |   Fi n a n c e  De p a r t m e n t  |   06 / 0 3 / 2 0 1 4 6/3/2014 20 1 3 F i n a n c i a l S t a t e m e n t s DE B T F I N A N C I N G VA I L R E I N V E S T M E N T A U T H O R I T Y T A X I N C R E M E N T F I N A N C I N G $1 1 , 9 4 0 K i s s u e d i n 2 0 1 0 f o r L i o n s h e a d i m p r o v e m e n t s $1 0 , 7 8 5 K o u t s t a n d i n g a t y e a r e n d Re p a y m e n t f r o m i n c r e m e n t a l p r o p e r t y t a x r e v e n u e f r o m L i o n s h e a d re d e v e l o p m e n t TI M B E R R I D G E A F F O R D A B L E H O U S I N G C O R P O R A T I O N Fu l l r e p a y m e n t o f b o n d s i n F e b r u a r y 2 0 1 3 f u n d e d b y $ 8 m i l l i o n c a p i t a l in f u s i o n a n d $ 8 m i l l i o n l o a n f r o m t o w n TR A H C t r a n s f e r r e d o w n e r s h i p o f t h e p r o p e r t y t o t h e T O V Fe b r u a r y 1 , 2 0 1 4 4 To w n  of  Va i l    |   Fi n a n c e  De p a r t m e n t  |   06 / 0 3 / 2 0 1 4 6/3/2014 20 1 3 F i n a n c i a l S t a t e m e n t s FU N D F I N A N C I A L S T A T E M E N T S Re c o r d f i n a n c i a l t r a n s a c t i o n s f o r s p e c if i c a c t i v i t i e s o r g o v e r n m e n t a l fu n c t i o n s ; e n s u r e c o m p l i a n c e w i t h le g a l r e q u i r e m e n t s a n d a c c o u n t i n g pr i n c i p l e s ; f o c u s o n n e a r - t e r m i n f l o w s a n d o u t f l o w s a n d s p e n d a b l e b a l a n c e s GO V E R N M E N T A L F U N D S Ge n e r a l , C a p i t a l P r o j e c t s , R e a l E s t a t e T r a n s f e r T a x , M a r k e t i n g ( B u s i n e s s Li c e n s e F e e ) , C o n f e r e n c e C e n t e r , V a il L o c a l M a r k e t i n g D i s t r i c t , V a i l Re i n v e s t m e n t A u t h o r i t y PR O P R I E T A R Y F U N D S In t e r n a l S e r v i c e s – H e a v y E q u i p m e n t a n d H e a l t h I n s u r a n c e En t e r p r i s e F u n d s – D i s p a t c h S e r v i c e s a n d T i m b e r R i d g e 5 To w n  of  Va i l    |   Fi n a n c e  De p a r t m e n t  |   06 / 0 3 / 2 0 1 4 6/3/2014 Fu n d F i n a n c i a l S t a t e m e n t s 5- Y e a r R e s e r v e s H i s t o r y S h o w s H e a l t h y B a l a n c e s i n A l l F u n d s 6 To w n  of  Va i l    |   Fi n a n c e  De p a r t m e n t  |   06 / 0 3 / 2 0 1 4  ‐  10  20  30  40  50  60  70  80 20 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 M i l l i o n s Al l  Other Co n f e r e n c e  Center Fu n d RE T T  Fund Ca p i t a l  Projects  Fund Ge n e r a l  Fund 6/3/2014 Fu n d F i n a n c i a l S t a t e m e n t s GE N E R A L F U N D F A V O R A B L E T O B U D G E T B Y $ 2 . 0 M I L L I O N Re v e n u e  – I n c r e a s e  ma i n l y  du e  to  pa r k i n g  $3 3 1 K  an d  sk i  li f t  ta x  $2 2 6 K . Ex p e n d i t u r e s – B u d g e t e d  hi g h e r  th a n  an n u a l  re v e n u e  to  fu n d  20 1 5  sk i  ch a m p i o n s h i p s  and   Bu r t o n  US  Op e n ;  In v e s t m e n t  in  Ti m b e r  Ri d g e  of  $8 . 0 M  us i n g  re s e r v e s ;  sa v i n g s  in  general   op e r a t i o n s  $6 1 6 K ;  sa l a r i e s  an d  be n e f i t s  du e  to  va c a n c i e s  $2 8 6 K ;  he a v y  eq u i p m e n t  charges   $7 0 K . Fu n d  Ba l a n c e  ‐ $1 6 . 4  mi l l i o n  co m p a r e d  wi t h  ta r g e t  $8 . 1  mi l l i o n  or  25 %  re v e n u e 7 To w n  of  Va i l    |   Fi n a n c e  De p a r t m e n t    |   06 / 0 3 / 2 0 1 4 Fi n a l  Bu d g e t 20 1 3 Ac t u a l Be t t e r ( W o r s e ) % Re v e n u e $ 3 1 , 3 2 6 K $ 3 2 , 2 2 8 K $ 9 0 2 . 3 K 2 . 9 % Ex p e n d i t u r e s 3 2 , 3 6 9 3 1 , 2 3 9 1 , 1 3 0 3 . 4 % Tr a n s f e r s  In  (O u t ) ( 8 , 0 0 0 ) ( 8 , 0 0 0 ) ‐‐ N/A Ne t  Ch a n g e $ ( 9 , 0 4 3 ) K $ ( 7 , 0 0 2 ) K $ 2 , 0 4 1 K N / A 6/3/2014 Fu n d F i n a n c i a l S t a t e m e n t s CA P I T A L P R O J E C T S F U N D M A N A G E D $ 1 4 . 3 M I L L I O N I N P R O J E C T S Re v e n u e  –V a r i a n c e  du e  to  ad d i t i o n a l  sa l e s  ta x  $1 , 2 7 2 K Ex p e n d i t u r e s –V a r i a n c e  fo r  ap p r o v e d  pr o j e c t s  no t  ye t  co m p l e t e d  an d  ca r r i e d  ov e r  to  2014  $5.1M;   bu y ‐do w n  pr o g r a m  no t  ye t  al l o c a t e d  $1 . 1 M Tr a n s f e r s a n d  Fi n a n c i n g  –V R A  fu n d i n g  of  Li o n s h e a d  pr o j e c t s  no t  ye t  co m p l e t e Fu n d B a l a n c e  ‐ $1 5 . 9 M 8 To w n  of  Va i l    |   Fi n a n c e  De p a r t m e n t    |   06 / 0 3 / 2 0 1 4 Fi n a l  Bu d g e t 2 0 1 3  Ac t u a l B e t t e r ( W o r s e ) Re v e n u e $ 1 0 , 2 2 8 K $ 1 1 , 5 5 6 K $ 1 , 3 2 8 K Ex p e n d i t u r e s 1 4 , 3 4 9 7 , 1 0 5 7 , 2 4 4 Tr a n s f e r s a n d   Fi n a n c i n g (5 , 3 5 0 ) ( 6 , 0 8 4 ) ( 7 3 4 ) Ne t  Ch a n g e $ ( 9 , 4 7 1 ) K $ ( 1 , 6 3 3 ) K $ 7 , 8 3 8 K 6/3/2014 Fu n d F i n a n c i a l S t a t e m e n t s RE A L E S T A T E T R A N S F E R T A X F U N D M A N A G E D $ 7 . 6 M I L L I O N I N PR O J E C T S ; $ 1 . 9 M I L L I O N O P E R A T I O N S Re v e n u e  –V a r i a n c e  du e  to  re a l  es t a t e  tr a n s f e r  ta x  $8 5 5 K  be t t e r  th a n  bu d g e t  of f s e t  by  ti m i n g  of  project   re i m b u r s e m e n t s  fr o m  Va i l   Re c r e a t i o n  Di s t r i c t   $( 1 , 1 6 5 ) K    Ex p e n d i t u r e s –V a r i a n c e  du e  to  ap p r o v e d  pr o j e c t s  no t  ye t  co m p l e t e d  an d  ca r r i e d  ov e r  to  20 1 4  $14.0M Tr a n s f e r s a n d  Fi n a n c i n g  – V a r i a n c e d u e  to  Co n f e r e n c e  Ce n t e r  fu n d i n g  of  Fo r d  Pa r k  im p r o v e m e n t s  and   re n o v a t i o n s  to  cl u b h o u s e  at  Va i l   Go l f  Co u r s e  an d  No r d i c  Ce n t e r  ca r r i e d  ov e r  to  20 1 4 Fu n d B a l a n c e  ‐ $1 6 . 8 M 9 To w n  of  Va i l    |   Fi n a n c e  De p a r t m e n t      |   06 / 0 3 / 2 0 1 4 Fi n a l  Bu d g e t 2 0 1 3  Ac t u a l B e t t e r ( W o r s e ) Re v e n u e $ 5 , 2 4 2 K $ 4 , 9 9 6 K $  (246)K Ex p e n d i t u r e s 2 3 , 5 6 4 9 , 5 2 4 1 4 , 0 4 0 Tr a n s f e r s a n d   Fi n a n c i n g 6, 7 8 5 4 , 9 4 9 ( 1 , 8 3 6 ) Ne t  Ch a n g e $ ( 1 1 , 5 3 7 ) K $ 4 2 1 K $ 1 1 , 9 5 8 K 6/3/2014 20 1 3 F i n a n c i a l S t a t e m e n t s CA P I T A L P R O J E C T A C C O M P L I S H M E N T S F U N D E D B Y : CA P I T A L P R O J E C T S F U N D Ma i n V a i l f i r e s t a t i o n ; C D O T r e q u i r e d p a r k i n g i m p r o v e m e n t s ; M a t t e r h o r n Br i d g e ; e n v i r o n m e n t a l i m p r o v e m e n t s ; c a p i t a l s t r e e t m a i n t e n a n c e ; f a c i l i t y ca p i t a l m a i n t e n a n c e ; g u e s t s e r v i c e s i g n a g e e n h a n c e m e n t s VA I L R E I N V E S T M E N T A U T H O R I T Y Su n B i r d P a r k ; L i b r a r y r e m o d e l ; E a s t L i o n s h e a d p o r t a l ; W e s t L i o n s h e a d po r t a l RE A L E S T A T E T R A N S F E R T A X F U N D Fo r d P a r k f i e l d s ; F r o n t a g e R o a d b i k e a n d p e d e s t r i a n p a t h s CO N F E R E N C E C E N T E R F U N D Ge r a l d R . F o r d A m p h i t h e a t e r i m p r o v e m e n t s 10 To w n  of  Va i l    |   Fi n a n c e  De p a r t m e n t  |   06 / 0 3 / 2 0 1 4 6/3/2014 20 1 3 F i n a n c i a l S t a t e m e n t s a n d A u d i t R e p o r t FI N A N C E D E P A R T M E N T Ju n e 3 , 2 0 1 4 Photo by Jack Affleck 6/3/2014 Financial Statements December 31, 2013 6/3/2014 i Town of Vail, Colorado Financial Statements December 31, 2013 Table of Contents Page(s) INDEPENDENT AUDITOR'S REPORT A1 –A2 Management’s Discussion and Analysis B1 –B7 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 Fund 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 –D27 Required Supplementary Information: General Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget (GAAP Basis) and Actual E1 –E2 Major Special Revenue Funds: Schedule of Revenues, Expenditures,and Changes in Fund Balances – Budget (GAAP Basis) and Actual: Capital Projects Fund E3 Real Estate Transfer Tax Fund E4 Conference Center Fund E5 Vail Marketing Fund E6 Vail Local Marketing District E7 Vail Reinvestment Authority 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 Fund Net Position – Budget (GAAP Basis) and Actual –Timber Ridge Affordable Housing Corporation F2 Schedule of Revenues, Expenses, and Changes in Fund Net Position – Budget (Non-GAAP Basis) and Actual –With Reconciliation to GAAP Basis – Dispatch Services Fund F3 Internal Service Funds: Schedule of Revenues, Expenses,and Changes in Fund Net Position – Budget (Non-GAAP Basis)and Actual –With Reconciliation to GAAP Basis – Heavy Equipment Fund F4 6/3/2014 ii Town of Vail, Colorado Financial Statements December 31, 2013 Table of Contents (Continued) Page(s) Supplementary Information (continued): Internal Service Funds (continued): Schedule of Revenues, Expenses, and Changes in Fund 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 Fund Net Position F7 Combining Statement of Cash Flows F8 Major Special Revenue Funds: Schedule of Project Expenditures –Budget (GAAP Basis) and Actual: Capital Projects Fund F9 Real Estate Transfer Tax Fund F10 Local Highway Finance Report F11 –F12 Undertaking to Provide Continuing Disclosure: Table I –History of Pledged Revenues G1 Table II –History of Assessed Valuations G1 Table III –Mill Levies Affecting Property Owners with Vail Reinvestment Authority G1 Table IV –Largest Taxpayers in the Authority G2 Table V –Preliminary Assessed Valuation of Classes of Property in the Authority G2 Table VI –History of Revenues, Expenditures, and Changes in Fund Balance G3 Table VII –Budget Summary and Actual Comparison: Vail Reinvestment Authority G4 Table VIII –Outstanding Revenue Obligations G4 6/3/2014 McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.com Member: American Institute of Certified Public Accountants Paul J. Backes, CPA, CGMA Avon: (970) 845-8800 Michael N. Jenkins, CA, CPA, CGMA Aspen: (970) 544-3996 Daniel R. Cudahy, CPA, CGMA Frisco: (970) 668-3481 A1 M & A INDEPENDENT AUDITOR'S REPORT To the Mayor and Members of Town 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 (the “Town”),as of and for the year ended December 31, 2013, and related notes 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 Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. W e conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes 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 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. 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. 6/3/2014 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 as of December 31, 2013, 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 procedures 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 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 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 supplementary information in sections F and G 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 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 McMahan and Associates, L.L.C. May 29, 2014 6/3/2014 MANAGEMENT’S DISCUSSION AND ANALYSIS 6/3/2014 B1 Tow n of Vail, Colorado Management’s Discussion and Analysis December 31, 2013 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, 2013. 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 2013 fiscal year by $187,636,204 (net assets). Of this amount,$1,700,000 is restricted for TABOR emergency reserves and $24,534,058 is restricted by enabling legislation. The Town’s total net assets increased in the 2013 fiscal year by $7,991,547 which was attributable to a decrease from governmental activities of $204,092 and an increase of $8,195,639 from business- type activities. At December 31, 2013, the fund balance of the General Fund was $16,401,973. Of that amount, $1,566,000 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. 6/3/2014 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 D27 of this report. 6/3/2014 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 tim e as a useful indicator of a government’s financial position. In the case of the Town, governmental assets exceeded liabilities by $178,642,011 at the close of the most recent fiscal year. Approximately 60% of the Town’s net assets are invested in capital assets (land, buildings, equipment), less related outstanding debt. Since the Town uses these capital assets to provide services to citizens, these assets are not available for future spending, including provision of resources to repay the debt. The table below shows the Town’s net position for 2013 and 2012. Governmental Activities Business-type Activities Total 2013 2012 2013 2012 2013 2012 Current and Other Assets $83,223,499 89,542,293 (6,958,441) 1,898,359 76,265,058 91,440,652 Capital Assets 117,632,771 112,529,682 16,373,270 16,689,219 134,006,041 129,218,901 Total Assets 200,856,270 202,071,975 9,414,829 18,587,578 210,271,099 220,659,553 Deferred Outflows - 197,761 - 396,458 - 594,219 Long-term Liabilities Outstanding 11,135,565 11,607,584 39,757 16,800,772 11,175,322 28,408,356 Other Liabilities 6,886,362 7,560,837 380,879 988,251 7,267,241 8,549,088 Total Liabilities 18,021,927 19,168,421 420,636 17,789,023 18,442,563 36,957,444 Deferred Inflows 4,192,332 4,057,451 - - 4,192,332 4,057,451 Net Position: Invested in capital assets, net of related debt 106,820,299 101,246,582 7,373,270 (1,575,781) 114,193,569 99,670,801 Restricted 26,234,058 27,589,561 -- 26,234,058 27,589,561 Unrestricted 45,587,654 50,207,721 1,620,923 2,770,794 47,208,577 52,978,515 Total Net Position $178,642,011 179,043,864 8,994,193 1,195,013 187,636,204 180,238,877 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 2013 included completion of the renovated Vail Library,the new “Sun Bird Park” in Lionshead, reconstruction of the Main Vail Fire Station, guest service signage enhancements, parking improvements on the frontage road, reconstruction of Matterhorn Bridge and completion of both East and West Portals to Lionshead. Other major capital assets purchased during the year included the replacement the town’s financial systems. The Town’s long-term liabilities from governmental activities decreased due to principal payments on outstanding debt. 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 the redemption of the remaining $17,265,000 principal outstanding on the Corporation’s 2003A bonds. The bonds were redeemed prior to maturity due to the unsustainability of current financing from increases in bank fees and a weakening of the employee housing market. In addition, Town Council’s objectives in refinancing the outstanding debt 6/3/2014 B4 Overview of the Financial Statements (continued) included: gaining operational control over the property; providing flexibility for future development; reducing financing costs to a sustainable level; providing a level of predictability in financing costs; and continued preservation of deed restricted rental units. The Timber Ridge Affordable Housing Corporation notes payable with the town mature in 2032 and 2033. Additional information regarding the town’s long-term debt is available on pages D19 –D22 of this report. The chart below provides financial information from the Town’s Statement of Activities for the years 2013 and 2012. 2013 2012 2013 2012 2013 2012 Revenue: Program Revenue Charges for services 8,088,824$ 7,762,935$ 3,506,636 3,423,617 11,595,460 11,186,552 Operating grants 1,386,658 1,392,543 855,483 744,156 2,242,141 2,136,699 Capital grants 426,406 1,307,442 - - 426,406 1,307,442 General Revenue Property and ownership tax 7,648,981 7,549,456 - - 7,648,981 7,549,456 Sales and lodging tax 26,913,976 24,582,260 - - 26,913,976 24,582,260 Other taxes 9,853,648 9,935,692 - - 9,853,648 9,935,692 Interest and other revenue 1,385,729 1,259,624 (133,267) 26,177 1,252,462 1,285,801 Transfers (7,957,000) - 7,957,000 - - - Total Revenue 47,747,222 53,789,952 12,185,852 4,193,950 59,933,074 57,983,902 Expenses: General government 6,970,415 7,057,306 - - 6,970,415 7,057,306 Public safety 9,367,179 9,070,632 2,540,847 2,467,080 11,908,026 11,537,712 Public works and transportation 18,620,768 23,190,935 - - 18,620,768 23,190,935 Culture and recreation 6,213,059 8,376,769 - - 6,213,059 8,376,769 Economic development 6,187,043 3,001,343 - - 6,187,043 3,001,343 Housing - - 1,449,366 1,726,748 1,449,366 1,726,748 Interest 592,850 728,834 - - 592,850 728,834 Total Expenses 47,951,314 51,425,819 3,990,213 4,193,828 51,941,527 55,619,647 Increase in Net Position (204,092) 2,364,133 8,195,639 122 7,991,547 2,364,255 Net Position January 1 179,043,864 176,679,731 1,195,013 1,194,891 180,238,877 177,874,622 Change in Accounting Principal (197,761) - (396,459) - (594,220) - Net Position January 1 (Restated)178,846,103 - 1,195,013 - 180,041,116 - Net Position December 31 178,642,011$ 179,043,864 8,994,193 1,195,013 187,636,204 180,238,877 Town of Vail's Changes in Net Position Total Governmental Activities Business-type Activities Governmental Activities: Governmental activities decreased the Town’s net assets by $204,092. While the below elements suggest positive activity in the governmental funds, an $8.0 million investment in Timber Ridge toward the repayment of bonds from the General Fund resulted in a net decrease of assets. The following items represent other significant governmental activities during 2013: Revenue exceeded expenditures in the Vail Local Marketing District and Vail Reinvestment Authority component units of $117,831and $115,758, respectively. Capital outlay exceeded depreciation by $5.0 million Long-term liabilities were reduced by $460,000 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 6/3/2014 B5 Overview of the Financial Statements (continued) Vail, and Vail Public Safety Communications Center, an enterprise fund providing dispatch services to emergency service agencies throughout Eagle County. As previously mentioned, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Financial Analysis of the Town’s Funds 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 $69,435,573 a decrease of $5,745,767 from the prior year’s ending fund balances primarily as a result of an $8.0 million transfer from the General Fund (a governmental activity) to the Timber Ridge Housing Fund (a business activity). The following details ending fund balances for the past five years: Fund 2009 2010 2011 2012 2013 General Fund $23,423,417 $22,886,692 $ 23,546,285 $ 23,403,652 $ 16,401,973 Capital Projects Fund 13,153,206 19,279,317 20,358,739 19,402,790 25,769,300 Real Estate Transfer Tax 14,216,947 17,681,155 17,285,604 16,427,967 16,848,758 Conference Center Fund 9,324,654 9,365,004 8,915,791 7,719,784 1,942,890 Vail Marketing Fund 106,359 138,171 156,543 173,975 185,851 Vail Local Marketing District 572,930 855,364 1,061,697 1,295,690 1,413,521 Debt Service Fund 189,428 194,282 205,647 21,271 21,311 Vail Reinvestment Authority 2,637,172 15,229,105 10,143,992 6,736,211 6,851,969 Total $ 63,624,133 $ 85,629,090 $ 81,674,298 $ 75,181,340 $ 69,435,573 The General Fund balance grew steadily until 2011 and 2012, when reserves were used to cash-fund construction of a new West Vail Fire Station. In 2013, an $8.0 million investment in Timber Ridge was funded from General Fund reserves, resulting in a net decrease to fund balance of $7.0 million compared to a budgeted decrease of $9.0 million. Sales tax collections in 2013 exceeded all previous records in every month except April and May, and were 9.7% higher than the prior year. In addition, parking sales increased 21%, ski lift tax increased nearly 17% and county sales tax increased 9.6%. Other impacts to the General Fund balance include a significant level in funding of extraordinary special events which were offset by conservative spending by town departments.The Capital Projects Fund and RETT Fund normally fluctuate as funds are spent on major projects. RETT collections decreased 13% from the prior year due to less activity in both “base”, or normal sales as well as decreased activity in sales of properties related to major redevelopment projects. The Capital Projects Fund benefited from increased sales tax during 2013, as well as an all-time high of $1.4 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 improvements to Vail’s recreational and cultural facilities. Two capital projects are currently underway, the Ford Park athletic fields and improvements to the Gerald R. Ford amphitheater.Renovation of the clubhouse at the Vail golf course and Nordic center has received entitlements but was delayed during 2013 pending resolution of a lawsuit filed by nearby residents. 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 $3.4 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,improvements 6/3/2014 B6 Financial Analysis of the Town’s Funds (continued) to both the east and west portals into Lionshead Village and “Sun Bird” park in Lionshead. As of December 31, 2013, the transit and welcome centers, the Vail Library and Lionshead portals were complete, with the other projects underway. The bonds are scheduled to be paid off by 2030, when the district will expire. Since 2004, the town has spent $40.2 million from its reserve funds for projects such as the new fire station in W est Vail. Today, the town’s reserve fund balance is similar to levels established a decade ago and continues to pace well ahead of the minimum guidelines established by the town. 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 $2,144,838 and $1,080,338, respectively. The Health Insurance Fund net assets were $1,126,653,all of which are restricted for the Town’s self-funded health insurance program. Budget Variances in the General Fund: General Fund revenue was higher than the amended budget by $910,948 or 3%,mainly due to increased ski lift tax collections (up 6%from budget),construction permits (up 8%), and parking sales (up 9%).Expenditures were below budget by $1,129,885 or 3.4%. The favorable spending variance was due to expense savings in general operations of $616,000, salary and benefit savings from vacancies of $286,000,and heavy equipment charges of $69,700. Capital Assets: The Town’s government-wide capital assets, net of accumulated depreciation, increased $4,787,139. Capital additions included completion of the renovated Vail Library, the new “Sun Bird Park” in Lionshead, reconstruction of the Main Vail Fire Station, guest service signage enhancements, parking improvements on the frontage road, reconstruction of Matterhorn Bridge and completion of both East and West Portals to 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 $10,785,000 of tax increment bonds outstanding, of which $475,000 of bond principal is due within one year. Debt related to Timber Ridge Affordable Housing Corporation was fully redeemed during 2013. Additional information regarding the Town’s debt can be found in the Notes to the Financial Statements in footnote IV.F of this report. 6/3/2014 B7 Sales Tax: During 2013, 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 ten years. Next Year’s Budget and Rates: The Town’s General Fund balance at the end of the current fiscal year was $16,401,973 representing 51% of annual revenue. The town anticipates using $1.175 million in special events such as the 2015 World Alpine Ski Championships,Burton US Open Snowboarding Championships and the Pro-Cycling Challenge. 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. 6/3/2014 GOVERNMENT-WIDE FINANCIAL STATEMENTS 6/3/2014 Governmental Business-type Activities Activities Total Assets: Equity in pooled cash and investments 52,241,961 1,306,583 53,548,544 Unrestricted cash and investments 8,113,594 1,530,027 9,643,621 Cash - restricted 1,795,910 72,923 1,868,833 Receivables (net of allowance for uncollectible accounts): Property taxes assessed 4,192,332 - 4,192,332 Other taxes 4,441,318 - 4,441,318 Other governments 145,385 - 145,385 Other 1,463,961 25,234 1,489,195 Inventory 310,155 - 310,155 Prepaid expenses 42,623 6,792 49,415 Interest receivable 50,000 - 50,000 Internal balances 9,900,000 (9,900,000) - Loans receivable: Collectible in more than one year 526,260 - 526,260 Capital assets not being depreciated 29,198,007 4,399,500 33,597,507 Capital assets being depreciated, net of accumulated depreciation 88,434,764 11,973,770 100,408,534 Total Assets 200,856,270 9,414,829 210,271,099 Liabilities: Accounts payable 3,047,469 144,212 3,191,681 Due to other governments 32,471 - 32,471 Retainage payable 137,585 - 137,585 Accrued salaries and wages 1,057,188 85,664 1,142,852 Town of Vail, Colorado Statement of Net Position December 31, 2013 Accrued salaries and wages 1,057,188 85,664 1,142,852 Interest payable 48,713 50,000 98,713 Other deferred revenue 1,118,981 1,581 1,120,562 Deposits payable 436,894 72,917 509,811 Compensated absences: Due within one year 532,062 26,505 558,567 Due in more than one year 798,093 39,757 837,850 Bonds payable: Due within one year 475,000 - 475,000 Due in more than one year 10,337,472 - 10,337,472 Total Liabilities 18,021,927 420,636 18,442,563 Deferred Inflow of Resources: Unavailable property taxes 4,192,332 - 4,192,332 Total Deferred Inflow of Resources 4,192,332 - 4,192,332 Net Position: Net investment in capital assets 106,820,299 7,373,270 114,193,569 Restricted for: Emergencies 1,700,000 - 1,700,000 Other purposes 24,534,058 - 24,534,058 Unrestricted:45,587,654 1,620,923 47,208,577 Total Net Position 178,642,011 8,994,193 187,636,204 The accompanying notes are an integral part of these financial statements. C1 6/3/2014 Net (Expense) Revenue and Program Revenues Changes in Net Position Operating Capital Charges for Grants and Grants and Governmental Business-type Expenses Services Contributions Contributions Ac tivities Ac tivities Total Governmental Activities: General government 6,970,415 2,993,209 1,093,163 36,289 (2,847,754) (2,847,754) Public safety 9,367,179 334,794 - - (9,032,385) (9,032,385) Public works and transportation 18,620,768 4,287,321 192,544 223,858 (13,917,045) (13,917,045) Culture and recreation 6,213,059 145,672 100,951 - (5,966,436) (5,966,436) Economic development 6,187,043 327,828 - 166,259 (5,692,956) (5,692,956) Interest on long-term debt 592,850 - - - (592,850) (592,850) Total Governmental Activities 47,951,314 8,088,824 1,386,658 426,406 (38,049,426) (38,049,426) Business-type Activities: Dispatch services 2,540,847 1,695,541 855,483 - 10,177 10,177 Housing (Timber Ridge)1,449,366 1,811,095 - - 361,729 361,729 Total Business-type Activities 3,990,213 3,506,636 855,483 - 371,906 371,906 Totals 51,941,527 11,595,460 2,242,141 426,406 (38,049,426) 371,906 (37,677,520) General Revenues: Town of Vail, Colorado Statement of Activities For the Year Ended December 31, 2013 General Revenues: Taxes: Sales and use taxes 24,294,804 - 24,294,804 Real estate transfer taxes 4,725,589 - 4,725,589 Lodging taxes 2,619,172 - 2,619,172 Property and specific ownership taxes 7,648,981 - 7,648,981 Ski area lift ticket admissions tax 4,007,908 - 4,007,908 Franchise taxes 1,046,902 - 1,046,902 Cigarette taxes 73,249 - 73,249 Investment earnings 247,497 5,188 252,685 Gain (loss) on sale of capital assets 129,620 (151,255) (21,635) Miscellaneous 1,008,612 12,800 1,021,412 Transfers (7,957,000) 7,957,000 - Total General Revenues and Transfers 37,845,334 7,823,733 45,669,067 Change in Net Position (204,092) 8,195,639 7,991,547 Net Position - January 1 as previously stated 179,043,864 1,195,013 180,238,877 Change in Accounting Principle (197,761) (396,459) (594,220) Net Position - January 1 (Restated)178,846,103 798,554 179,644,657 Net Position - December 31 178,642,011 8,994,193 187,636,204 The accompanying notes are an integral part of these financial statements. C2 6/3/2014 FUND FINANCIAL STATEMENTS 6/3/2014 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 Assets: Equity in pooled cash and investments 13,229,286 15,278,961 17,170,351 2,824,646 263,424 - - 21,311 48,787,979 Cash and cash equivalents - Unrestricted 10,810 - - - - 800,974 7,301,810 - 8,113,594 Cash and cash equivalents - Restricted - - - - - - 1,392,886 - 1,392,886 Receivables, net of allowance for uncollectible accounts: Property taxes assessed 4,192,332 - - - - - - - 4,192,332 Other taxes 3,731,348 - 100,870 - - 609,100 - - 4,441,318 Other governments - - 141,546 - - 3,571 268 - 145,385 Other 999,488 451,411 - - - - - - 1,450,899 Due from other funds - 1,842,995 - - - - - - 1,842,995 Loans receivable 526,260 9,900,000 - - - - - - 10,426,260 Prepaid expenses 42,623 - - - - - - - 42,623 Total Assets 22,732,147 27,473,367 17,412,767 2,824,646 263,424 1,413,645 8,694,964 21,311 80,836,271 Liabilities and Fund Equity: Liabilities: Accounts payable 558,291 649,017 513,861 881,756 16,666 124 - - 2,619,715 Due to other governments 32,471 - - - - - - - 32,471 Due to other funds - - - - - - 1,842,995 - 1,842,995 Retainage payable - 105,075 32,510 - - - - - 137,585 Accrued payroll and related liabilities 1,002,087 - 17,638 - - - - - 1,019,725 Unearned revenue 108,099 949,975 - - 60,907 - - - 1,118,981 Deposits payable 436,894 - - - - - - - 436,894 Total Liabilities 2,137,842 1,704,067 564,009 881,756 77,573 124 1,842,995 - 7,208,366 Deferred Inflows of Resources: Property taxes 4,192,332 - - - - - - - 4,192,332 Total Deferred Inflows of Resources 4,192,332 - - - - - - - 4,192,332 Fund Balances: Non-spendable 568,883 9,900,000 - - - - - - 10,468,883 Restricted 1,718,476 - 16,848,758 1,942,890 185,851 79,000 5,459,083 - 26,234,058 Committed 8,233,181 12,334,200 - - - 1,334,521 - - 21,901,902 Assigned 72,587 3,535,100 - - - - 1,392,886 - 5,000,573 Unassigned 5,808,846 - - - - - - 21,311 5,830,157 Total Fund Balances 16,401,973 25,769,300 16,848,758 1,942,890 185,851 1,413,521 6,851,969 21,311 69,435,573 Total Liabilities and Fund Balances 22,732,147 27,473,367 17,412,767 2,824,646 263,424 1,413,645 8,694,964 21,311 Town of Vail, Colorado Balance Sheet Governmental Funds December 31, 2013 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.114,176,302 Other long-term assets and unearned charges are not available for current period expenditures and, therefore, are not reported in the funds.453,024 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.6,727,959 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.(12,150,846) Net Position of Governmental Activities 178,642,011 The accompanying notes are an integral part of these financial statements. C3 6/3/2014 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 22,290,043 10,581,647 4,725,589 - - 2,619,172 3,413,188 - 43,629,639 Permits and licenses 1,524,915 - - - 327,828 - - - 1,852,743 Intergovernmental revenue 1,827,216 223,858 28,394 - - - - - 2,079,468 Charges for services 6,159,765 174,474 140,697 - - - - - 6,474,936 Investment income 34,458 349,820 27,670 14,482 505 316 1,714 40 429,005 Interest subsidy - - - - - - 166,259 - 166,259 Miscellaneous 392,249 226,679 73,263 - - - - - 692,191 Total Revenues 32,228,646 11,556,478 4,995,613 14,482 328,333 2,619,488 3,581,161 40 55,324,241 Expenditures: General government 6,669,455 - - - - - - - 6,669,455 Public safety 8,580,499 - 151,970 - - - - - 8,732,469 Public works and transportation 11,907,918 7,105,256 7,627,363 - - - - - 26,640,537 Culture and recreation 1,127,447 - 1,744,171 - - - - - 2,871,618 Economic development 2,953,634 - - 842,694 316,457 2,501,657 557,914 - 7,172,356 Debt service: Principal - - - - - - 460,000 - 460,000 Interest - - - - - - 605,203 - 605,203 Total Expenditures 31,238,953 7,105,256 9,523,504 842,694 316,457 2,501,657 1,623,117 - 53,151,638 Excess (Deficiency) of Revenues Over Expenditures 989,693 4,451,222 (4,527,891) (828,212) 11,876 117,831 1,958,044 40 2,172,603 Other Financing Sources (Uses): Sale of assets 8,628 30,000 - - - - - - 38,628 Transfers in - 1,885,288 4,948,682 - - - - - 6,833,970 Transfers (out)(8,000,000) - - (4,948,682) - - (1,842,286) - (14,790,968) Total Other Financing Sources (Uses)(7,991,372) 1,915,288 4,948,682 (4,948,682) - - (1,842,286) - (7,918,370) Net Change in Fund Balances (7,001,679) 6,366,510 420,791 (5,776,894) 11,876 117,831 115,758 40 (5,745,767) Fund Balances - January 1 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 Fund Balances - December 31 16,401,973 25,769,300 16,848,758 1,942,890 185,851 1,413,521 6,851,969 21,311 69,435,573 Net Change in Fund Balances of Governmental Funds (5,745,767) Town of Vail, Colorado Statement of Revenues, Expenditures Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2013 Net Change in Fund Balances of Governmental Funds (5,745,767) 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.4,953,483 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.438,512 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.460,000 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.(348,739) 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. 38,419 Change in Net Position of Governmental Activities (204,092) The accompanying notes are in integral part of these financial statements. C4 6/3/2014 Enterprise Fund -Enterprise Fund -Governmental Timber Ridge Dispatch Activities - Affordable Housing Services Internal Corporation Fund TOTAL Service Funds Assets: Current Assets: Equity in pooled cash and investments - 1,306,583 1,306,583 3,453,981 Cash and cash equivalents - Unrestricted 1,530,027 - 1,530,027 - Accounts receivable , net of allowance for uncollectibles 24,872 362 25,234 13,062 Inventory - - - 310,155 Prepaid expenses 6,792 - 6,792 - Total Current Assets 1,561,691 1,306,945 2,868,636 3,777,198 Non-current Assets: Cash and cash equivalents - Restricted 72,923 - 72,923 - Property, plant, and equipment, net of accumulated depreciation 15,229,046 1,144,224 16,373,270 3,456,468 Total Non-current Assets 15,301,969 1,144,224 16,446,193 3,456,468 Total Assets 16,863,660 2,451,169 19,314,829 7,233,666 Liabilities: Current Liabilities: Accounts payable 69,531 74,681 144,212 427,754 Tenant security deposits 72,917 - 72,917 - Unearned revenue 1,581 - 1,581 - Accrued interest payable 50,000 - 50,000 - Accrued salaries and wages - 85,664 85,664 37,460 Town of Vail, Colorado Proprietary Funds Statement of Net Position December 31, 2013 Business-type Activities Accrued salaries and wages - 85,664 85,664 37,460 Current portion of compensated absences - 26,505 26,505 16,197 Total Current Liabilities 194,029 186,850 380,879 481,411 Non-current Liabilities: Notes payable 9,900,000 - 9,900,000 - Compensated absences, net of current portion - 39,757 39,757 24,296 Total Non-current Liabilities 9,900,000 39,757 9,939,757 24,296 Total Liabilities 10,094,029 226,607 10,320,636 505,707 Net Position: Net investment in capital assets 6,229,046 1,144,224 7,373,270 3,456,468 Unrestricted 540,585 1,080,338 1,620,923 3,271,491 Total Net Position 6,769,631 2,224,562 8,994,193 6,727,959 The accompanying notes are an integral part of these financial statements. C5 6/3/2014 Enterprise Fund -Enterprise Fund -Governmental Timber Ridge Dispatch Ac tivities - Affordable Housing Services Internal Corporation Fund TOTAL Service Funds Operating Revenues: Charges for services - Internal - 568,854 568,854 5,865,451 Charges for services - External - 1,126,687 1,126,687 505,770 Rent 1,791,678 - 1,791,678 - Laundry room lease 19,417 - 19,417 - Insurance reimbursements - - - 300,199 Other 12,452 351 12,803 27,786 Total Operating Revenues 1,823,547 1,695,892 3,519,439 6,699,206 Operating Expenses: Operations 726,269 2,381,829 3,108,098 2,369,778 Health claims and premiums - - - 3,365,480 Depreciation 536,665 159,021 695,686 633,440 Total Operating Expenses 1,262,934 2,540,850 3,803,784 6,368,698 Operating Income (Loss)560,613 (844,958) (284,345) 330,508 Non-Operating Revenues (Expenses): Intergovernmental revenues - 855,483 855,483 - Gain (loss) on disposal of assets - (151,255) (151,255) 100,992 Investment income 2,883 2,305 5,188 7,012 Interest expense (141,556) - (141,556) - Financing fees (44,876) - (44,876) - Transfers in 8,000,000 - 8,000,000 - Transfers out - (43,000) (43,000) - Total Non-Operating Revenues (Expenses)7,816,451 663,533 8,479,984 108,004 Town of Vail, Colorado Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Position For the Year Ended December 31, 2013 Business-type Activities Income (Loss) Before Capital Contributions 8,377,064 (181,425) 8,195,639 438,512 Change in Net Position 8,377,064 (181,425) 8,195,639 438,512 Net Position - January 1 (1,210,974) 2,405,987 1,195,013 6,289,447 Change in Accounting Principle (396,459) - (396,459) - Net Position - January 1 (Restated)(1,607,433) 2,405,987 798,554 - Net Position (Deficit) - December 31 6,769,631 2,224,562 8,994,193 6,727,959 The accompanying notes are an integral part of these financial statements. C6 6/3/2014 Enterprise Fund -Enterprise Fund -Governmental Timber Ridge Dispatch Activities - Affordable Housing Services Internal Corporation Fund TOTAL Service Funds Cash Flows From Operating Activities: Cash received from other funds - 568,854 568,854 5,865,451 Cash received from tenants for rent 1,777,849 - 1,777,849 - Cash received from (refunded to) tenants for security deposits, net (1,108) - (1,108) - Other cash receipts 31,614 1,127,038 1,158,652 830,105 Cash paid for goods and services (720,645) (390,662) (1,111,307) (4,880,678) Cash paid to employees - (1,904,361) (1,904,361) (914,230) Net Cash Provided (Used) by Operating Activities 1,087,710 (599,131) 488,579 900,649 Cash Flows From Non-Capital Financing Activities: Transfer (to) other funds - (43,000) (43,000) - Transfer from other funds 8,000,000 - 8,000,000 - Cash received from operating grants - 855,483 855,483 - Net Cash Provided by Non-Capital Financing Activities 8,000,000 812,483 8,812,483 - Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets - - - 102,916 Cash received from interfund loan 8,000,000 - 8,000,000 - Principal repaid on bonds and notes (17,265,000) - (17,265,000) - Cash drawn on line of credit 5,834 - 5,834 - Repayments of amounts drawn on line of credit (5,834) - (5,834) - Interest paid (333,303) - (333,303) - Financing fees paid (26,219) - (26,219) - Acquisition and construction of capital assets (375,541) (155,451) (530,992) (784,968) Net Cash (Used) by Capital and Related Financing Activities (10,000,063) (155,451) (10,155,514) (682,052) Cash Flows From Investing Activities: Interest on investments 2,883 2,305 5,188 7,012 Net Cash Provided by Investing Activities 2,883 2,305 5,188 7,012 Net Increase (Decrease) in Cash and Cash Equivalents (909,470) 60,206 (849,264) 225,609 Cash and Cash Equivalents - Beginning 2,512,420 1,246,377 3,758,797 3,228,372 Town of Vail, Colorado Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2013 Business-type Activities Cash and Cash Equivalents - Beginning 2,512,420 1,246,377 3,758,797 3,228,372 Cash and Cash Equivalents - Ending 1,602,950 1,306,583 2,909,533 3,453,981 Cash and Cash Equivalents - End of Period is Comprised of: Equity in pooled cash and investments - 1,306,583 1,306,583 3,453,981 Cash and cash equivalents - Unrestricted 1,530,027 - 1,530,027 - Cash and cash equivalents - Restricted 72,923 - 72,923 - Total - Cash and Cash Equivalents 1,602,950 1,306,583 2,909,533 3,453,981 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income/(Loss)560,613 (844,958) (284,345) 330,508 Adjustments: Depreciation 536,665 159,021 695,686 633,440 (Increase) decrease in accounts receivable (10,869) - (10,869) (3,650) (Increase) decrease in inventory - - - (18,770) (Increase) decrease in prepaid expenses (250) - (250) - Increase (decrease) in accounts payable 5,542 56,173 61,716 (37,315) Increase (decrease) in other liabilities (3,991) - (3,991) - Increase (decreases) in accrued wages and benefits - 30,633 30,633 (3,564) Total Adjustments 527,097 245,827 772,924 570,141 Net Cash Provided (Used) by Operating Activities 1,087,710 (599,131) 488,579 900,649 The accompanying notes are an integral part of these financial statements. C7 6/3/2014 Deferred Pension Compensation Trust Plan Assets: Cash and investments - Restricted 53,997,666 11,789,950 Loans to participants 403,156 - Total Assets 54,400,823 11,789,950 Net Position: Held in trust for pension benefits and other purposes 54,400,823 11,789,950 Total Net Position 54,400,823 11,789,950 Town of Vail, Colorado Fiduciary Funds Statement of Fiduciary Net Position December 31, 2013 The accompanying notes are an integral part of these financial statements. C8 6/3/2014 Deferred Pension Compensation Trust Plan Additions: Contributions 2,637,808 716,649 Investment Income / (Loss)8,784,582 1,819,098 Total Additions 11,422,390 2,535,747 Deductions: Professional fees 108,764 8 Benefits paid 2,818,439 954,610 Total Deductions 2,927,203 954,617 Change in Net Position 8,495,187 1,581,130 Net Position - January 1 45,905,636 10,208,820 Net Position - December 31 54,400,823 11,789,950 Town of Vail, Colorado Fiduciary Funds Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2013 The accompanying notes are an integral part of these financial statements C9 6/3/2014 NOTES TO THE FINANCIAL STATEMENTS 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 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. 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. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D2 I.Summary of Significant Accounting Policies (continued) A.Reporting Entity (continued) 2.Timber Ridge Affordable Housing Corporation (continued) 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. At the time of purchase, the Town advanced the Corporation $1,000,000 of the Project’s purchase price. During 2005 and 2006, the Town advanced the Corporation $700,000 and $200,000 respectively to improve the Corporation’s liquidity position. In February 2013, the Town transferred $8 million and loaned an additional $8 million to the Corporation to allow the Corporation to retire its variable interest long-term debt. 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 serves as 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 that 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, 2013, the District had not begun operations or imposed a mill levy, resulting in no financial statements to be reported. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D3 I.Summary of Significant Accounting Policies (continued) B.Government-wide and Fund Financial Statements The Town’s basic financial statements include both government-wide (reporting the Town as a whole) and fund financial statements (reporting the Town’s major 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. 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.C.)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. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D4 I.Summary of Significant Accounting Policies (continued) C.Fund Financial Statements (continued) 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 and continued during 2013. 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. 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. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D5 I.Summary of Significant Accounting Policies (continued) 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. 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. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D6 I.Summary of Significant Accounting Policies (continued) D.Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued) 3.Financial Statement Presentation (continued) 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. 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. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D7 I.Summary of Significant Accounting Policies (continued) E.Financial Statement Accounts (continued) 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”. 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 fees, 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. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D8 I.Summary of Significant Accounting Policies (continued) E.Financial Statement Accounts (continued) 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. 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 no items that qualify for reporting under this category on the government-wide Statement of Net Position. 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 term to maturity of the underlying 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. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D9 I.Summary of Significant Accounting Policies (continued) E.Financial Statement Accounts (continued) 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. 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. 4.Implementation of Government Accounting Standards Board Statement No. 65, Items Previously Reported as Assets and Liabilities During 2013, the Town implemented Government Accounting Standards Board Statement No. 65, Items Previously Reported as Assets and Liabilities, which requires debt issuance costs, previously reported as an asset and amortized, to be recognized as an outflow at the time such costs are incurred.As such, the financial statements report a restatement of the Town’s beginning governmental net position in the amount of $197,761, and a restatement of the Corporation’s beginning net position by $396,459; which were the respective unamortized debt issuance costs at December 31, 2012. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D10 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 a 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 $114,176,302 difference is related to property, plant and equipment of $278,224,757 less accumulated depreciation of $164,048,455. Another element of that reconciliation explains that “Other long-term assets and unearned charges are not available for current period expenditures and therefore are not reported in the funds”. This $453,024 difference is pension forfeitures of $403,024 and interest receivable of $50,000. Net assets totaling $6,727,959 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 $12,150,846 difference is related to bonds and notes payable of $10,785,000, accrued compensated absences of $1,289,661, premium on issued debt of $27,472 and interest payable of $48,713. 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 a 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 that “Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense.” The details of this $4,953,483 difference are comprised of capital outlay of $12,553,081 less depreciation expense of $7,589,598 and a loss on the sale of assets of $10,000. III.Stewardship, Compliance, and Accountability A.Budgetary Information An annual budget and appropriation ordinance is adopted by Town Council in accordance with the Town’s Home Rule Charter. Budgets are prepared on the GAAP basis for all funds except the Heavy Equipment Fund and Dispatch Services Fund. As required by Colorado Statutes, all funds have legally adopted budgets and appropriations. The total expenditures for each fund may not exceed the amounts appropriated. Appropriations for a fund may be increased if unanticipated revenues offset them. All appropriations lapse at year-end. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D11 III.Stewardship, Compliance, and Accountability (continued) A.Budgetary Information (continued) The budgets for these funds have been adopted on a non-GAAP budget and are reconciled to GAAP below: Heavy Dispatch Equipment Services Fund Fund Change in Net Position - Budget Basis (128,535)$ (19,958)$ add / (less): Change in com pensated absences 2,401 (6,642) Capitalized assets 784,968 155,451 Depreciation (633,440) (159,021) Net book value of disposed assets (1,924) (151,255) Change in Net Position - GAAP Basis 23,470$ (181,425)$ The Town followed these procedures in preparing, approving, and enacting its budget for 2013. (1)For the 2013 budget year, prior to August 25, 2012,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 2012 fiscal year, the Town Manager submitted to the Town Council a budget and accompanying message. (3)Prior to December 15, 2012, 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 2012 were collected in 2013 and taxes certified in 2013 will be collected in 2014. 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 schedules reflect the original budget and the final budget after legally authorized revisions were made. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D12 III.Stewardship, Compliance, and Accountability (continued) 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 2013. (1)On or before September 30, 2012, 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 18, 2012. (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, 2012. The Board adopted the 2013 budget on October 9, 2012. (3)After adoption of the initial budget resolution, the District may make the following changes: a) approve supplemental appropriations to the extent of revenues in excess of those estimated in the budget; b) approve emergency appropriations; and c) reduce appropriations for which originally estimated revenues are insufficient. During the year, supplemental appropriations were necessary. The budgetary comparison statements reflect the original budget and the final budget after legally authorized revisions were made. C.TABOR Amendment –Town 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 restricted a portion of the December 31, 2013 fund balance in the General Fund for this purpose in the amount of $1,621,000 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. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D13 III.Stewardship, Compliance, and Accountability (continued) C.TABOR Amendment –Town (continued) On November 16, 1993, Town voters 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. D.TABOR Amendment –Vail Local Marketing District As required by TABOR, the District has restricted $79,000 of its fund balance for emergencies, which is the approximate required reserve at December 31, 2013. 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. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D14 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 FDIC-member 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 $11,028,197.The difference between the bank balance and book balance is primarily due to deposits in transit or outstanding checks at December 31, 2013. At year-end, the Town had the following investments and maturities: Carrying Type Rating Maturities Value Deposits: Cash on hand 10,810$ Demand deposits 22,177,143 Certificates of deposit <1 year 3,432,162 Certificates of deposit <5 years 8,759,368 Total deposits 34,379,483$ Investments: US Agencies - FHLMC, FHLB, FNMA AA+<5 years 13,023,573$ Mortgage pools AA+N/A 5,776,168 Colotrust AAAm N/A 11,478,221 Pension and Section 457 investments N/A N/A 66,191,169 Total investments 96,469,131$ Total deposits and investments 130,848,614$ Reconciliation to Statement of Net Position: Equity in pooled cash and investments 53,548,544$ Cash and cash equivalents - Unrestricted 9,643,621 Cash and cash equivalents - Restricted 1,868,833 Fiduciary Funds 65,787,616 Total 130,848,614$ 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 $1. Investments of the trusts consist of U.S. Treasury bills, notes and note strips, and repurchase agreements collateralized by U.S. Treasury securities. Colotrust is rated AAAm by Standard and Poor’s. Interest Rate Risk. As a means of limiting its exposure to interest rate risk, the Town diversifies its investments by security type and institution, and limits holdings in any one type of investment with any one issuer. The Town coordinates its investments maturities to closely match cash flow needs and invests primarily in securities with a maximum investment term less than five years from the purchase date. As a result of the limited length of maturities the Town has limited its interest rate risk. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D15 IV.Detailed Notes on all Funds (continued) A.Cash and Investments (continued) Credit Risk. The Town’s general investment policy is to apply the prudent-person rule; investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and, in general, avoid speculative investments. Concentration of Credit Risk. The Town diversifies its investments by security type and institution. Credit quality distribution for investments, with credit exposure as a percentage of total investments are as follows at year end: Investment Type Rating Percentage Colotrust AAAm 18% Investments in the Deferred Compensation Plan and the Pension Trust Funds are held by trustees and are not categorized because they are not evidenced by specific securities that exist in physical or book form. B.Receivables Receivables as of year-end for the Town’s funds, including applicable allowances for uncollectible accounts, are as follows: Capital Real Estate Vail Vail Local General Projects Transfer Marketing Marketing Fund Fund Tax Fund Fund District Receivables: Property taxes 4,192,332$ - - - - Other taxes 3,731,348 - 100,870 - 609,100 Other governments - - 141,546 - 3,571 Other 1,000,488 451,411 - - - Gross Receivables 8,924,168 451,411 242,416 - 612,671 Less: Allowance for uncollectibles (1,000) - - - - Net Receivables 8,923,168$ 451,411 242,416 - 612,671 Vail Heavy Rein-Equip-Dispatch Health Timber vestment ment Services Insurance Ridge Authority Fund Fund Fund Total Receivables: Property taxes -$ - - - - 4,192,332 Other taxes - - - - - 4,441,318 Other governments - 268 - - - 145,385 Other 24,872 - 5,750 362 7,312 1,490,195 Gross Receivables 24,872 268 5,750 362 7,312 10,269,230 Less: Allowance for uncollectibles - - - - - (1,000) Net Receivables 24,872$ 268 5,750 362 7,312 10,268,230 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D16 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 $1,118,981 at year- end and is comprised of the following: Capital Vail General Projects Marketing Fund Fund Fund Total Library grants 56,788$ -$ -$ 56,788$ Business licenses - - 60,907 60,907 Police programs 35,673 - - 35,673 Other 15,638 - - 15,638 Construction projects - 949,975 - 949,975 Total 108,099$ 949,975$ 60,907$ 1,118,981$ Unearned revenue for construction projects relates to $794,677 of funds collected from Holy Cross Energy for the community enhancement fund which is used to place utilities underground. The other $155,298 was collected from developers for road improvements. The revenue will be recognized in the year the money is spent. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D17 IV.Detailed Notes on all Funds (continued) C.Capital Assets Capital asset activity for the year ended December 31, 2013 was as follows: Be gi nn in g Category En di ng Balanc e Reclassi ficati on Incr eases De cr eases Balance Go vernmental Activi ties: Capital Assets, Not Being Depreciated: Land 28,852,851$ (1,422,193) - - 27,430,658 Art - 1,764,849 7,500 (5,000) 1,767,349 Total Ca pit al As sets , No t Being De prec iated 28,852,851 342,656 7,500 (5,000) 29,198,007 Capital Assets, Being Deprec iated: Buildings and improveme nt s 94,723,035 (1,443,940) 2,357,123 - 95,636,218 Infrastructure and improvem ents 120,196,623 (4,997,232) 9,236,131 - 124,435,522 Equipment and vehicles 32,230,340 6,098,516 1,737,295 (632,272) 39,433,879 Total Ca pit al As sets Being De prec iat ed 247,149,998 (342,656) 13,330,549 (632,272) 259,505,619 Les s Ac cu mulated De prec iation For: Buildings and improveme nt s (58,465,682) 1,443,940 (2,352,229) - (59,373,971) Infrastructure and improvem ents (84,759,392) 4,997,232 (2,977,012) - (82,739,172) Equipment and vehicles (20,248,093) (6,441,172) (2,893,797) 625,350 (28,957,712) Total Accumu lated De prec iati on (1 63,473,167) - (8,223,038) 625,350 (171,070,855) Total Ca pit al As sets Being De prec iat ed, Net 83,676,831 5,107,511 (6,922) 88,434,764 Go vernmental Activi ties Ca pital A ssets, Net 112,529,682$ 5,115,011 (11,922) 117,632,771 Busi ne ss-type Acti vities Capital Assets, Not Being Depreciated: Land 4,399,500$ - - 4,399,500 Total Ca pit al As sets , No t Being De prec iated 4,399,500 - - 4,399,500 Capital Assets, Being Deprec iated: Buildings and improvements 15,910,418 409,801 (34,260) 16,285,959 Equipment 3,496,651 155,451 (1,267,253) 2,384,849 Total Ca pit al As sets Being De prec iat ed 19,407,069 565,252 (1,301,513) 18,670,808 Les s Ac cu mulated De prec iation For: Buildings and improvements (4,926,847) (536,665) - (5,463,512) Equipment (2,190,503) (159,021) 1,115,998 (1,233,526) Total Accumu lated De prec iati on (7,117,350) (695,686) 1,115,998 (6,697,038) Total Ca pit al As sets Being De prec iat ed, Net 12,289,719 (130,434) (185,515) 11,973,770 Busi ne ss-type Acti vities Capi tal Assets, Net 16,689,219$ (130,434) (185,515) 16,373,270 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D18 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 improvements 7 - 25 Infrastructure 5 - 50 Vehicles 5 - 15 Equipment 5 - 25 At December 31, 2013, the Town had $85,866,054 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, 2013, the Vail Reinvestment Authority owed the Capital Projects Fund $1,842,995 in connection with several construction projects within the Lionshead district, including the completion of the Lionshead Welcome Center, East and W est Portals into Lionshead, and a renovation of the Vail Library. Newer projects started during 2013 included Sun Dial Plaza park, the I-70 underpass,and reconstruction of the Lionshead parking structure entry. During 2013, the Town transferred $4,948,682 from the Conference Center Fund to the Real Estate Transfer Tax Fund, toward capital projects as approved by voters: Ford Park Field reconstruction and Ford Park Amphitheater improvements. As noted earlier,in February 2013, the Town transferred $8 million from the General Fund to the Corporation to assist the Corporation in retiring its variable interest long-term debt. Gov er nme nta l Ac tivi ti es: Ge ne ra l go vernment 436,116$ Pu bl ic s afety 455,750 Pu bl ic wo rks and transpo rt at ion 6,007,526 Cul tu re a nd recreation 1,323,646 Tot al Dep reciation Ex pense - Gover nme ntal Ac ti vi ti es 8,223,038$ Busi ne ss -ty pe Act ivities: Disp at ch service s 159,021$ Hou sing 536,665 Tot al Dep reciation - Bus iness-type Ac ti vities 695,686$ 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D19 IV.Detailed Notes on all Funds (continued) E.Interfund Receivables, Payables, and Transfers (continued) In connection with the Corporation’s purchase of the Timber Ridge 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, 2013, the balance outstanding under the terms of these three promissory notes was $1,900,000. These notes, which bear interest at the rate of 1.5% per annum, mature December 1, 2032. These notes are payable to the extent that the Corporation has determined the availability of excess net revenues of the Project, after provision for necessary operating or capital reserves, but may be repaid by the Corporation at any time without penalty. The Corporation paid $267,468 of accrued interest expense relating to these notes during 2013. As noted earlier, in February 2013,the Town advanced $8 million to the Corporation to help fund the redemption of variable interest bonds,upon execution of another promissory note. The $8 million note bears interest at the rate of 1.5% per annum, with blended annual payments, and matures December 1, 2033. The Corporation remitted $60,000 in interest expense to the Town during 2013 and as of December 31, 2013, the Corporation had accrued a total of $50,000 in interest payable to the Town relating to the $8 million note. The promissory notes payable from the Corporation to the Town, which aggregate to $9,900,000 at December 31, 2013, are reflected as internal balances between the governmental activities and business-type activities categories on the Statement of Net Position. F.Long-term Liabilities –Governmental Activities The Town has the following long-term debt outstanding for governmental activities: 1.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. 2.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. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D20 IV.Detailed Notes on all Funds (continued) F.Long-term Liabilities –Governmental Activities (continued) 2.Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010B (continued) 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. The “BAB Credit”decreased 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. 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. G.Long-term Liabilities –Business-type Activities The Town had the following long-term debt outstanding during 2013 for business-type activities: Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A The 2003A Bonds were issued July 15, 2003 in the principal amount of $19,025,000 as limited obligations of the Corporation and not indebtedness of the Town. The 2003A Bonds are payable solely from the rents and other receipts from operation of the Project, net of the Project’s actual operating expenses (the “Pledged Revenues”)and the various reserve funds and other monies pledged under the terms of the 2003A indenture. Certain capitalized terms are further described in the 2003A indenture. The 2003A Bonds bear interest at the Weekly Rate established by 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 were 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: If in a Daily Mode or Weekly Mode –on any date prior to Maturity at 100% of the principal amount, plus accrued interest. If in a Commercial Long-Term Mode –after the specified No-Call Period and at redemption prices dependent on the length of the Rate Period, plus accrued interest. If bearing a Fixed Rate –after the specified No-Call Period and at redemption prices dependent on the length of the Rate Period, plus accrued interest. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D21 IV.Detailed Notes on all Funds (continued) G.Long-term Liabilities –Business-type Activities (continued) Adjustable Rate Housing Facilities Revenue Bonds, Series 2003A (continued) From the date of issuance through February 4, 2013, the 2003A Bonds were in W eekly Mode, with interest rates set by the Remarketing Agent. 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 2013 incurred in respect of the 2003A Bonds was $141,556. On February 4, 2013 the $17,265,000 outstanding principal balance of the 2003A Bonds was redeemed, with funding provided by an $8 million transfer from the Town; an $8 million promissory loan from the Town; and $1,265,000 held as required reserves for the 2003A Bonds. 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, 2013 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 $3,137,927 at December 31, 2013 has not been reflected in the Town’s financial statements as the amount is partially insured by an independent insurance company and the amounts are not payable at termination. I.Long-term Liabilities –Refunded In prior years, the Town defeased certain general obligations and other bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. The bonds intended to be refunded by the refunding issues remain a contingent liability of the Town until retired; however, they are not included for the purposes of calculating debt limits of the town. The amount of debt considered defeased cannot be readily determined as of December 31, 2013. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D22 IV.Detailed Notes on all Funds (continued) J.Long-term Liabilities –Ac tivity and Debt Service Schedules Long-term liability activity for the year ended December 31, 2013 was as follows: Be ginning En di ng Due Wi thin Ba lanc e Ad diti on s Re ductions Balan ce One Year Go vernmental A ctivi ties: Vail Re invest ment Authorit y: Ta x-Incr ement Bonds , Series 2010A 2,975,000$ - (460,000) 2,515,000 475,000 Ta x-Incr ement Bonds , Series 2010B 8,270,000 - - 8,270,000 - Deferred amounts : Is suanc e premium 38,100 - (10,628) 27,472 - Comp ens at ed abs ences 1,370,974 (40,819) 1,330,155 532,062 To tal Gov er nme ntal Ac ti vi ties Lo ng -term Li abiliti es 12,654,074$ - (511,447) 12,142,627 1,007,062 Busi ne ss-type Ac tiviti es: Housing Fa ci lities Re venue Bond s: Adjustable Rate, Serie s 2003A 17,265,000$ - (17,265,000) - - Comp ens at ed abs ences 59,620 6,642 - 66,262 26,505 To tal Busin ess-type A ctivi ties Lo ng -term Li abiliti es 17,324,620$ 6,642 (17,265,000) 66,262 26,505 Debt service requirements at December 31, 2013 were as follows: Princ ipal Inter est Total Governmenta l Ac ti vi ti es: 20 14 47 5,000$ 591,178 1,06 6,178 20 15 49 0,000 577,928 1,06 7,928 20 16 50 0,000 564,928 1,06 4,928 20 17 51 5,000 547,753 1,06 2,753 20 18 53 5,000 526,753 1,06 1,753 20 19 -2 02 3 2,98 0,000 2,176,951 5,15 6,951 20 24 -2 02 8 3,61 5,000 1,171,030 4,78 6,030 20 29 -2 03 0 1,67 5,000 112,704 1,78 7,704 Tota l Gover nme nta l Ac ti vi ti es 10,785,000$ 6,269,225 17,054,225 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. K.Credit Facility, Reimbursement Agreement, and Rate Protection Agreement – Timber Ridge Affordable Housing Corporation Certain capitalized terms are defined in the 2003A Bonds Indenture. In connection with the Corporation’s issuance of the 2003A Bonds, an irrevocable, stand- by, direct pay letter of credit (the “Credit Facility”) for $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. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D23 IV.Detailed Notes on all Funds (continued) K.Credit Facility, Reimbursement Agreement, and Rate Protection Agreement – Timber Ridge Affordable Housing Corporation (continued) The Credit Facility was to expire 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 2013 totaling $44,876 for U.S. Bank in respect of stand-by fees for the Credit Facility. During 2013, the Corporation drew and repaid $5,834 of advances on the Credit Facility. As discussed below, no balance was outstanding on the Credit Facility at December 31, 2013. The Reimbursement Agreement imposed certain funding commitments on the Corporation, including establishing reserve funds to be utilized for specified purposes. In addition, the Reimbursement Agreement required the Corporation, for as long as the Credit Facility was outstanding, 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 obtained the necessary rate protection agreement, as required by the Reimbursement Agreement, during the period in which the 2003A Bonds were outstanding. Upon redemption of the 2003A Bonds on February 4, 2013, the Credit Facility, Reimbursement Agreement and the Rate Protection Agreement were cancelled, in accordance with the underlying arrangements. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D24 IV.Detailed Notes on all Funds (continued) 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. 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. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D25 V.Other Information (continued) A.Pension Plans (continued) 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 sys tem. The annual pension cost is the Town's contributions less forfeitures from the prior year. The plans' invested assets at December 31, 2013 of $53,997,666 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 2013 covered payroll was $15,505,928;of which $13,296,824 was for permanent employees and $2,209,104 was for seasonal staff. Total 2013 payroll for all Town employees was $16,771,714. 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. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D26 V.Other Information (continued) B.Retirement Savings Plan –Deferred Compensation Plan –IRC 457 (continued) 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 $11,789,950 at December 31, 2013. 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, unemploym ent, 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, 2013. 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, 2013. 6/3/2014 Town of Vail, Colorado Notes to the Financial Statements December 31, 2013 (Continued) D27 V.Other Information (continued) F.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. G.Subsequent Events In January 2014, the Town Council and the Corporation’s Board approved the transfer of the Project from the Corporation to the Town. On April 1, 2014, the Town Council authorized the Town Manager to enter into a development agreement with Lion's Ridge Apartment Homes, LLC to construct new deed restricted employee housing units on the eastern half of the Project. Under the terms of the agreement, the Town plans to enter into a long-term lease with the developer,with the property and improvements returned to the Town at the end of the lease. As of the end of April 2014, all units on the eastern side of the Project have been vacated. 6/3/2014 REQUIRED SUPPLEMENTARY INFORMATION 6/3/2014 2012 Final Budget Variance Original Final Positive Budget Budget Ac tual (Negative)Ac tual Revenues: Taxes: General sales taxes 12,462,000 12,971,000 12,971,000 - 11,530,000 Property and ownership taxes 4,217,000 4,217,000 4,227,966 10,966 4,157,279 Ski area lift ticket admissions tax 3,492,000 3,782,000 4,007,908 225,908 3,433,686 Franchise tax 1,040,000 1,040,000 1,046,902 6,902 974,244 Penalties and interest on delinquent taxes 34,442 34,442 36,267 1,825 29,074 Total - Taxes 21,245,442 22,044,442 22,290,043 245,601 20,124,283 Permits and Licenses: Construction fees 660,000 720,000 738,422 18,422 731,469 Contractors' licenses 30,000 30,000 34,618 4,618 65,500 Other permits and licenses 590,580 660,080 751,875 91,795 673,619 Total - Permits and Licenses 1,280,580 1,410,080 1,524,915 114,835 1,470,588 Intergovernmental: County sales tax 643,200 643,200 713,717 70,517 650,879 County road and bridge 850,000 710,000 709,292 (708) 707,090 Additional motor vehicle registration fees 24,000 24,000 26,359 2,359 25,337 Cigarette tax 75,000 75,000 73,249 (1,751) 74,825 Highway users tax 212,414 212,414 212,399 (15) 213,981 State health inspection 8,240 8,240 8,840 600 11,787 Other state sources 10,000 106,000 47,071 (58,929) 1,505 Federal sources 39,060 39,060 36,289 (2,771) 189,623 Total - Intergovernmental 1,861,914 1,817,914 1,827,216 9,302 1,875,027 2013 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, 2013 With Comparative Actual Amounts For the Year Ended December 31, 2012 Total - Intergovernmental 1,861,914 1,817,914 1,827,216 9,302 1,875,027 Charges for Services: Management fees - Vail Local Marketing District 105,000 105,000 105,000 - 105,000 Internal service charge 397,900 357,900 404,850 46,950 441,823 Out of district fire response 37,740 37,740 99,950 62,210 116,703 Alarm monitoring fees 25,000 25,000 24,422 (578) 27,415 Parking 3,839,000 3,839,000 4,170,065 331,065 3,453,836 Fines and forfeitures 270,888 270,888 227,420 (43,468) 251,501 Rents 905,605 850,605 918,691 68,086 832,134 Other charges, services, and sales 205,706 205,707 209,367 3,660 284,364 Total - Charges for Services 5,786,839 5,691,840 6,159,765 467,925 5,512,776 Other Revenues: Earnings on investments 175,000 175,000 34,458 (140,542) 177,991 Miscellaneous 175,000 187,050 392,249 205,199 500,936 Total - Other Revenues 350,000 362,050 426,707 64,657 678,927 Total Revenues 30,524,775 31,326,326 32,228,646 902,320 29,661,601 The accompanying notes are an integral part of these financial statements. E1 6/3/2014 2012 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Expenditures: General Government: Town officials 1,398,654 1,558,654 1,384,733 173,921 1,291,467 Administrative 3,884,510 3,848,110 3,764,430 83,680 3,581,749 Community development 1,562,046 1,562,046 1,520,292 41,754 1,503,182 Total - General Government 6,845,210 6,968,810 6,669,455 299,355 6,376,398 Public Safety: Police department 5,268,262 5,369,262 5,041,505 327,757 4,833,807 Fire department 3,269,000 3,423,000 3,538,994 (115,994) 3,276,352 Total - Public Safety 8,537,262 8,792,262 8,580,499 211,763 8,110,159 Public Works and Transportation: Highways and streets 3,778,178 3,778,178 3,573,109 205,069 3,441,884 Transportation 3,911,006 3,961,006 3,985,238 (24,232) 3,896,459 Parking operations 1,100,155 1,100,155 1,033,231 66,924 1,018,733 Facility maintenance 3,481,574 3,481,574 3,316,340 165,234 3,216,915 Total - Public Works and Transportation 12,270,913 12,320,913 11,907,918 412,995 11,573,991 Culture and Recreation: Special recreation facilities 272,800 275,800 277,136 (1,336) 211,915 Library 813,959 822,009 850,311 (28,302) 795,620 Total - Culture and Recreation 1,086,759 1,097,809 1,127,447 (29,638) 1,007,535 Economic Development: Contributions, marketing and special events 2,879,147 3,189,044 2,953,634 235,410 2,684,151 (Continued) 2013 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, 2013 With Comparative Actual Amounts For the Year Ended December 31, 2012 Contributions, marketing and special events 2,879,147 3,189,044 2,953,634 235,410 2,684,151 Total - Economic Development 2,879,147 3,189,044 2,953,634 235,410 2,684,151 Total Expenditures 31,619,291 32,368,838 31,238,953 1,129,885 29,752,234 Excess (Deficiency) of Revenues Over Expenditures (1,094,516) (1,042,512) 989,693 2,032,205 (90,633) Other Financing Sources (Uses): Sale of assets - - 8,628 8,628 - Transfers out (8,000,000) (8,000,000) (8,000,000) - (52,000) Total Other Financing Sources (Uses)(8,000,000) (8,000,000) (7,991,372) 8,628 (52,000) Net Change in Fund Balances (9,094,516) (9,042,512) (7,001,679) 2,040,833 (142,633) Fund Balances - January 1 22,327,346 23,403,652 23,403,652 - 23,546,285 Fund Balances - December 31 13,232,830 14,361,140 16,401,973 2,040,833 23,403,652 The accompanying notes are an integral part of these financial statements. E2 6/3/2014 2012 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Revenues: Taxes: Sales tax 7,638,000 7,951,000 9,223,005 1,272,005 8,706,347 Construction use tax 1,000,000 1,350,000 1,358,642 8,642 1,221,734 Total - Taxes 8,638,000 9,301,000 10,581,647 1,280,647 9,928,081 Intergovernmental: State grants 200,000 200,000 - (200,000) - Federal grants - - 223,858 223,858 726,444 Total - Intergovernmental 200,000 200,000 223,858 23,858 726,444 Charges for Services: Leases - Vail Commons 192,660 192,660 166,910 (25,750) 192,710 Resale fees - - 7,564 7,564 4,903 Total - Charges for Services 192,660 192,660 174,474 (18,186) 197,613 Other: Interest on investments 325,389 355,389 349,820 (5,569) 122,406 Project reimbursements/shared costs - 178,599 108,150 (70,449) 290,151 Construction fees - - 84,394 84,394 146,117 Workforce housing sales and other - - 34,135 34,135 4,740 Total - Other 325,389 533,988 576,499 42,511 563,414 Total Revenues 9,356,049 10,227,648 11,556,478 1,328,830 11,415,552 Expenditures: With Comparative Actual Amounts For the Year Ended December 31, 2012 2013 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, 2013 Expenditures: Public Works: Capital projects and acquisition 6,767,900 14,348,973 7,105,256 7,243,717 15,695,338 Excess (Deficiency) of Revenues Over Expenditures 2,588,149 (4,121,325) 4,451,222 8,572,547 (4,279,786) Other Financing Sources (Uses): Sale of assets - - 30,000 30,000 5,320 Transfers in 1,210,000 2,649,706 1,885,288 (764,418) 5,406,864 Transfers (out)(8,000,000) (8,000,000) - 8,000,000 (2,088,347) Total Other Financing Sources (Uses)(6,790,000) (5,350,294) 1,915,288 7,265,582 3,323,837 Net Change in Fund Balances (4,201,851) (9,471,619) 6,366,510 15,838,129 (955,949) Fund Balances - January 1 11,447,631 19,402,790 19,402,790 - 20,358,739 Fund Balances - December 31 7,245,780 9,931,171 25,769,300 15,838,129 19,402,790 The accompanying notes are an integral part of these financial statements. E3 6/3/2014 2012 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Revenues: Taxes: Real estate transfer tax 4,671,000 3,871,000 4,725,589 854,589 5,452,937 Intergovernmental Revenue: Lottery revenue 20,000 20,000 28,394 8,394 26,961 Other State revenue - - - - - Total - Intergovernmental Revenue 20,000 20,000 28,394 8,394 26,961 Charges for Services: Recreation amenities fee 10,000 10,000 13,939 3,939 41,168 Land lease to Vail Recreation District 129,426 129,426 126,758 (2,668) 126,768 Total - Charges for Services 139,426 139,426 140,697 1,271 167,936 Other: Project reimbursements - 1,165,000 35,776 (1,129,224) 23,886 Donations - - 32,300 32,300 30,440 Interest on investments 46,789 46,789 27,670 (19,119) 124,267 Other - - 5,187 5,187 5,669 Total - Other 46,789 1,211,789 100,933 (1,110,856) 184,262 Total Revenues 4,877,215 5,242,215 4,995,613 (246,602) 5,832,096 Expenditures: Culture and Recreation: With Comparative Actual Amounts For the Year Ended December 31, 2012 2013 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, 2013 Culture and Recreation: Project management 233,550 233,550 236,280 (2,730) 272,647 Park maintenance 1,373,854 1,373,854 1,302,895 70,959 1,225,571 Environmental sustainability 250,000 160,461 124,340 36,121 199,792 Art in public places 94,005 94,005 80,656 13,349 86,205 Public Works: Capital projects 2,127,969 21,494,633 7,627,363 13,867,270 4,723,228 Public Safety Fire suppression 195,000 207,710 151,970 55,740 182,290 Total Expenditures 4,274,378 23,564,213 9,523,504 14,040,709 6,689,733 Excess (Deficiency) of Revenues Over Expenditures 602,837 (18,321,998)(4,527,891)13,794,107 (857,637) Other Financing Sources (Uses): Transfers in - 6,785,000 4,948,682 (1,836,318) - Total Other Financing Sources (Uses)- 6,785,000 4,948,682 (1,836,318) - Net Change in Fund Balances 602,837 (11,536,998)420,791 11,957,789 (857,637) Fund Balances - January 1 9,357,884 16,427,967 16,427,967 - 17,285,604 Fund Balances - December 31 9,960,721 4,890,969 16,848,758 11,957,789 16,427,967 The accompanying notes are an integral part of these financial statements. E4 6/3/2014 2012 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Revenues: Interest on investments 1,200 1,200 14,482 13,282 61,299 Total Revenues 1,200 1,200 14,482 13,282 61,299 Expenditures: Economic Development Capital outlay - 842,694 842,694 - 1,257,306 Total Expenditures - 842,694 842,694 - 1,257,306 Excess (Deficiency) of Revenues Over Expenditures 1,200 (841,494) (828,212) 13,282 (1,196,007) Other Financing Sources (Uses): Transfers (out)- (6,785,000) (4,948,682) (1,836,318) - Total Other Financing Sources (Uses)- (6,785,000) (4,948,682) (1,836,318) - Net Change in Fund Balances 1,200 (7,626,494) (5,776,894) 1,849,600 (1,196,007) Fund Balances - January 1 77,591 7,719,784 7,719,784 - 8,915,791 Fund Balances - December 31 78,791 93,290 1,942,890 1,849,600 7,719,784 With Comparative Actual Amounts For the Year Ended December 31, 2012 2013 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, 2013 The accompanying notes are an integral part of these financial statements. E5 6/3/2014 2012 Original Variance and Final Positive Budget Actual (Negative)Actual Revenues: Permits and Licenses: Business licenses 332,000 327,828 (4,172) 332,297 Other: Interest on investments 2,000 505 (1,495) 1,750 Total Revenues 334,000 328,333 (5,667) 334,047 Expenditures: Economic Development: Commission on Special Events 300,000 300,000 - 300,000 Administration fee 17,100 16,457 643 16,615 Total Expenditures 317,100 316,457 643 316,615 Excess (Deficiency) of Revenues Over Expenditures 16,900 11,876 (5,024) 17,432 Fund Balances - January 1 173,975 173,975 - 156,543 Fund Balances - December 31 190,875 185,851 (5,024) 173,975 With Comparative Actual Amounts For the Year Ended December 31, 2012 2013 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, 2013 The accompanying notes are an integral part of these financial statements. E6 6/3/2014 2012 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Revenues: Taxes: Lodging tax 2,200,000 2,200,000 2,619,172 419,172 2,452,910 Other: Interest on investments 1,200 1,200 316 (884) 289 Total Revenues 2,201,200 2,201,200 2,619,488 418,288 2,453,199 Expenditures: Economic Development: Destination 823,500 806,500 749,324 57,176 611,842 Front Range 410,000 405,000 416,945 (11,945) 393,022 Groups and meetings 537,500 537,300 447,799 89,501 420,844 Marketing 365,725 372,500 326,652 45,848 391,123 Special Events 100,000 115,000 112,560 2,440 70,000 Purchased services 335,000 435,225 448,377 (13,152) 332,375 Total Expenditures 2,571,725 2,671,525 2,501,657 169,868 2,219,206 Excess (Deficiency) of Revenues Over Expenditures (370,525) (470,325) 117,831 588,156 233,993 Fund Balances - January 1 921,671 1,295,690 1,295,690 - 1,061,697 Fund Balances - December 31 551,146 825,365 1,413,521 588,156 1,295,690 2013 With Comparative Actual Amounts For the Year Ended December 31, 2012 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, 2013 The accompanying notes are an integral part of these financial statements. E7 6/3/2014 2012 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Revenues: Taxes: Property tax 3,169,000 3,548,000 3,413,188 (134,812) 3,383,493 Other: Interest on investments 33,000 33,000 1,714 (31,286) 12,817 Interest Subsidy (Build America Bonds)173,343 166,259 166,259 - 180,619 Total Revenues 3,375,343 3,747,259 3,581,161 (166,098) 3,576,929 Expenditures: Economic Development: Administration 55,680 62,660 60,133 2,527 59,352 Fiscal agent fees 2,200 2,200 2,200 - - Treasurer's fees 95,070 106,440 102,396 4,044 101,512 Professional fees 25,000 25,000 413 24,587 1,535 Vail Square Metro District 373,450 402,550 392,772 9,778 403,668 Total Economic Development:551,400 598,850 557,914 40,936 566,067 Debt Service: Principal 460,000 460,000 460,000 - 445,000 Interest 605,203 605,203 605,203 - 618,778 Total Debt Service:1,065,203 1,065,203 1,065,203 - 1,063,778 Total Expenditures 1,616,603 1,664,053 1,623,117 40,936 1,629,845 Excess (Deficiency) of Revenues Over Expenditures 1,758,740 2,083,206 1,958,044 (125,163) 1,947,083 Other Financing Sources (Uses): Transfers out (1,210,000) (2,606,706) (1,842,286) 764,420 (5,354,864) Total Other Financing Sources (Uses)(1,210,000) (2,606,706) (1,842,286) 764,420 (5,354,864) Net Change in Fund Balances 548,740 (523,500) 115,758 639,258 (3,407,780) Fund Balances - January 1 2,902,582 6,736,211 6,736,211 - 10,143,991 Fund Balances - December 31 3,451,322 6,212,711 6,851,969 639,258 6,736,211 With Comparative Actual Amounts For the Year Ended December 31, 2012 2013 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, 2013 The accompanying notes are an integral part of these financial statements. E8 6/3/2014 SUPPLEMENTARY INFORMATION 6/3/2014 2012 Original Variance and Final Positive Budget Actual (Negative)Actual Revenues: Other: Interest on investments - 40 40 6,052 Total Revenues - 40 40 6,052 Expenditures: Debt Service: Principal - - - 2,195,000 Interest - - - 82,275 Fiscal agent fees - - - 1,500 Total Expenditures - - - 2,278,775 Excess (Deficiency) of Revenues Over Expenditures - 40 40 (2,272,723) Other Financing Sources: Transfers in - - - 2,088,347 Total Other Financing Sources (Uses)- - - 2,088,347 Net Change in Fund Balances - 40 40 (184,376) Fund Balances - January 1 21,271 21,271 - 205,647 Fund Balances - December 31 21,271 21,311 40 21,271 Town of Vail, Colorado Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2013 With Comparative Actual Amounts For the Year Ended December 31, 2012 2013 Budget (GAAP Basis) and Actual The accompanying notes are an integral part of these financial statements. F1 6/3/2014 2012 Final Budget Variance Original Final Positive Actual Budget Budget Actual (Negative)(Restated) Operating Revenues: Rent 1,806,219 1,806,219 1,791,678 (14,541) 1,659,060 Laundry room lease 20,530 20,530 19,417 (1,113) 20,790 Other 10,703 10,703 12,452 1,749 14,420 Total Operating Revenues 1,837,452 1,837,452 1,823,547 (13,905) 1,694,270 Operating Expenses: Advertising 5,292 5,292 5,256 36 5,256 Office expenses 11,069 11,069 7,407 3,662 9,552 Management fee 90,000 90,000 90,000 - 90,000 Telecommunications 7,738 7,738 7,744 (6) 7,757 Wages - Administrative 58,623 58,623 52,869 5,754 78,174 Wages - Maintenance and other 123,194 123,194 118,300 4,894 114,907 Repairs and maintenance 129,499 129,499 100,188 29,311 108,905 Electric 43,562 43,562 44,346 (784) 31,115 Water and sewer 139,151 139,151 139,011 140 135,424 Trash removal 24,057 24,057 23,631 426 17,957 Snow removal 31,818 31,818 27,223 4,595 20,336 Fire, life, safety, and security 20,316 20,316 16,135 4,181 8,288 Property insurance 67,980 67,980 67,510 470 65,484 Professional fees 15,878 15,878 15,878 - 8,500 Bad debt expense 11,099 11,099 7,808 3,291 5,461 Miscellaneous 2,978 2,978 2,963 15 1,989 Capital maintenance and replacement - - - - 3,129 Depreciation 535,380 535,380 536,665 (1,285) 526,910 Total Operating Expenses 1,317,634 1,317,634 1,262,934 54,700 1,239,144 Operating Income (Loss)519,818 519,818 560,613 40,795 455,126 Non-operating Revenues (Expenses): Interest on investments 4,560 4,560 2,883 (1,677) 3,652 Interest expense (141,556) (141,556) (141,556) - (62,527) Financing fees (44,875) (44,875) (44,876) (1) (362,598) Transfers in - - 8,000,000 8,000,000 - Amortization of bond issue costs (396,459) (396,459) - 396,459 - Total Non-operating Revenue (Expenses)(578,330) (578,330) 7,816,451 8,394,781 (483,952) Change in Net Position (58,512) (58,512) 8,377,064 8,435,576 (28,826) With Comparative Actual Amounts For the Year Ended December 31, 2012 2013 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, 2013 The accompanying notes are an integral part of these financial statements. F2 6/3/2014 2012 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Operating Revenues: Charges and Fees: Dispatch service fee 569,193 569,193 568,854 (339) 572,706 Dispatching contracts 1,127,338 1,127,338 1,126,687 (651) 1,171,062 Other charges - - 351 351 417 Total Operating Revenues 1,696,531 1,696,531 1,695,892 (639) 1,744,185 Operating Expenses: Public Safety: Salaries and benefits 1,947,887 1,947,887 1,928,351 19,536 1,707,137 Operating expenses 546,388 546,388 446,836 99,552 512,314 Capital outlay 20,000 177,146 155,451 21,695 276,014 Total Operating Expenses 2,514,275 2,671,421 2,530,638 140,783 2,495,465 Operating (Loss) - Budget Basis (817,744) (974,890) (834,746) 140,144 (751,280) Non-operating Revenues: Operating grant - E-911 Board 801,603 801,603 855,483 53,880 744,156 Earnings on investments 10,000 10,000 2,305 (7,695) 7,688 Total Non-operating Revenues 811,603 811,603 857,788 46,185 751,844 Income (Loss) Before Transfers (6,141) (163,287) 23,042 186,329 564 Transfers Out - (43,000) (43,000) - - Change in Net Position - Budget Basis (6,141) (206,287) (19,958) 186,329 564 Reconciliation to GAAP Basis: Adjustments: Change in compensated absences (6,642) 9,143 Depreciation (159,021) (256,771) Net book value of disposed assets (151,255) - Capitalized assets 155,451 276,014 Total Adjustments (161,467) 28,386 Change in Net Position - GAAP Basis (181,425) 28,950 With Comparative Actual Amounts For the Year Ended December 31, 2012 2013 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, 2013 The accompanying notes are an integral part of these financial statements. F3 6/3/2014 2012 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Operating Revenues: Charges and Fees: Operating charges 2,347,514 2,347,514 2,179,487 (168,027) 2,192,250 Replacement charges 587,266 587,266 662,506 75,240 559,159 Total - Charges and Fees 2,934,780 2,934,780 2,841,993 (92,787) 2,751,409 Other: Insurance reimbursements - - 28,964 28,964 58,652 Other - - 27,337 27,337 27,856 Total - Other - - 56,301 56,301 86,508 Total Operating Revenues 2,934,780 2,934,780 2,898,294 (36,486) 2,837,917 Operating Expenses: Public Works: Vehicle maintenance and fuel 2,451,344 2,451,344 2,348,306 103,038 2,369,609 Capital outlay 648,700 933,900 784,968 148,932 527,846 Total Operating Expenses 3,100,044 3,385,244 3,133,274 251,970 2,897,455 Operating Income (Loss) - Budget Basis (165,264) (450,464) (234,980) 215,484 (59,538) Non-operating Revenues: With Comparative Actual Amounts For the Year Ended December 31, 2012 2013 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, 2013 Non-operating Revenues: Earnings on investments 16,084 16,084 3,529 (12,555) 14,685 Proceeds from sale of assets 111,920 111,920 102,916 (9,004) 174,848 Total Non-operating Revenues:128,004 128,004 106,445 (21,559) 189,533 Change in Net Position - Budget Basis (37,260) (322,460) (128,535) 193,925 129,995 Reconciliation to GAAP Basis: Adjustments: Contribution to other funds - (86,342) Net book value of disposed assets (1,924) (25,872) Depreciation (633,440) (632,371) Change in accrued compensated absences 2,401 14,266 Capitalized assets 784,968 527,849 Total Adjustments 152,005 (202,473) Change in Net Position - GAAP Basis 23,470 (72,478) The accompanying notes are an integral part of these financial statements. F4 6/3/2014 2012 Original Variance and Final Positive Budget Actual (Negative)Actual Operating Revenues: Charges and Fees: Insurance premiums 2,903,000 3,023,458 120,458 2,884,137 Insurance premiums - Employee contributions 440,000 505,770 65,770 434,709 Insurer proceeds 550,000 271,235 (278,765) 73,896 Other - 449 449 - Total Operating Revenues 3,893,000 3,800,912 (92,088) 3,392,742 Operating Expenses: General Government: Health claims 3,500,000 2,876,945 623,055 3,193,950 Premiums 480,000 488,535 (8,535) 420,104 Administrative fees 20,000 20,000 - 20,000 Short-term disability payments 20,000 3,873 16,127 10,297 Total Operating Expenses 4,020,000 3,389,353 630,647 3,644,351 Operating Income (Loss)(127,000) 411,559 538,559 (251,609) With Comparative Actual Amounts For the Year Ended December 31, 2012 2013 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, 2013 Non-operating Revenues: Earnings on investments 10,000 3,483 (6,517) 8,833 Change in Net Position (117,000) 415,042 532,042 (242,776) The accompanying notes are an integral part of these financial statements. F5 6/3/2014 Heavy Health Equipment Insurance Fund Fund Total Assets: Current Assets: Equity in pooled cash and investments 2,098,898 1,355,083 3,453,981 Accounts receivable, net of allowance for uncollectibles 5,750 7,312 13,062 Inventory 310,155 - 310,155 Total Current Assets 2,414,803 1,362,395 3,777,198 Non-current Assets: Property, plant, and equipment, net of accumulated depreciation 3,456,468 - 3,456,468 Total Assets 5,871,271 1,362,395 7,233,666 Liabilities: Current Liabilities: Accounts payable 192,012 235,742 427,754 Accrued salaries and wages 37,460 - 37,460 Current portion of compensated absences 16,197 - 16,197 Total Current Liabilities 245,669 235,742 481,411 Non-current Liabilities: Compensated absences, net of current portion 24,296 - 24,296 Town of Vail, Colorado Internal Service Funds Combining Statement of Net Position December 31, 2013 Compensated absences, net of current portion 24,296 - 24,296 Total Liabilities 269,965 235,742 505,707 Net Position: Invested in capital assets, net of related debt 3,456,468 - 3,456,468 Unrestricted 2,144,838 1,126,653 3,271,491 Total Net Position 5,601,306 1,126,653 6,727,959 The accompanying notes are an integral part of these financial statements. F6 6/3/2014 Heavy Health Equipment Insurance Fund Fund Total Operating Revenues: Charges for services - Internal 2,841,993 3,023,458 5,865,451 Charges for services - External - 505,770 505,770 Insurance reimbursements 28,964 271,235 300,199 Other 27,337 449 27,786 Total Operating Revenues 2,898,294 3,800,912 6,699,206 Operating Expenses: Operations 2,345,905 23,873 2,369,778 Health claims and premiums - 3,365,480 3,365,480 Depreciation 633,440 - 633,440 Total Operating Expenses 2,979,345 3,389,353 6,368,698 Operating Income (Loss)(81,051) 411,559 330,508 Non-operating Revenues (Expenses): Gain (loss) on disposal of assets 100,992 - 100,992 Investment income 3,529 3,483 7,012 Total Non-operating Revenues (Expenses) 104,521 3,483 108,004 Change in Net Position 23,470 415,042 438,512 Net Position - January 1 5,577,836 711,611 6,289,447 Town of Vail, Colorado Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Position For the Year Ended December 31, 2013 Net Position - January 1 5,577,836 711,611 6,289,447 Net Position - December 31 5,601,306 1,126,653 6,727,959 The accompanying notes are an integral part of these financial statements. F7 6/3/2014 Heavy Health Equipment Insurance Fund Fund Total Cash Flows From Operating Activities: Cash received from other funds 2,841,993 3,023,458 5,865,451 Other cash receipts 57,381 772,724 830,105 Cash paid for goods and services (1,491,779) (3,388,898) (4,880,678) Cash paid to employees (913,079) (1,151) (914,230) Net Cash Provided (Used) by Operating Activities 494,516 406,133 900,649 Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets 102,916 - 102,916 Acquisition and construction of capital assets (784,968) - (784,968) Net Cash Provided (Used) by Capital and - Related Financing Activities (682,052) - (682,052) Cash Flows From Investing Activities: Interest on Investments 3,529 3,483 7,012 Net Cash Provided (Used) by Investing Activities 3,529 3,483 7,012 Net Change in Cash and Cash Equivalents (184,007) 409,616 225,609 Cash and Cash Equivalents - Beginning 2,282,905 945,467 3,228,372 Cash and Cash Equivalents - Ending 2,098,898 1,355,083 3,453,981 Reconciliation of Operating Income (Loss) to Net Cash Tow n of Vail, Colorado Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2013 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss)(81,051) 411,559 330,508 Adjustments: Depreciation 633,440 - 633,440 (Increase) decrease in accounts receivable 1,080 (4,730) (3,650) (Increase) decrease in inventory (18,770) - (18,770) Increase (decrease) in accounts payable (36,619) (696) (37,315) Increase (decrease) in accrued wages and benefits (3,564) - (3,564) Total Adjustments 575,567 (5,426) 570,141 Net Cash Provided (Used) by Operating Activities 494,516 406,133 900,649 The accompanying notes are an integral part of these financial statements. F8 6/3/2014 2012 Variance Project Final Positive Number Project Name Budget Actual (Negative)Actual CBI008 Building Remodels - - - 19,873 CBI010 Fire Infrastructure / Main Vail Fire Stn 1,191,597 1,192,966 (1,369) 1,180,903 CBI018 Info Center Remodel 1,294,568 18,186 1,276,382 55,432 CBI021 Donovan Park Pavilion 50,000 41,330 8,670 - CEP001 Fire Truck Purchase 42,426 42,426 - 577,574 CEP003 Repower Buses 55,000 - 55,000 - CEP004 Replace Buses 20,282 5,280 15,002 1,168,405 CEP005 Hardware Purchases 50,000 50,000 - 201,927 CEP006 Radio Replacement - - - 30,391 CEP007 Phone System Upgrade 185,000 68,398 116,602 - CEP010 Network Upgrades 79,790 62,482 17,308 22,017 CEP011 Document Imaging 70,000 30,021 39,979 108,439 CEP017 Radio Tower Equipment - - - 10,923 CEP018 Web and E-commerce 83,825 5,950 77,875 8,875 CEP019 Computer-Aided Dispatch (CAD/RMS)147,736 112,551 35,185 59,997 CEP022 Audio Visual 70,076 49,882 20,194 4,924 CEP023 Video cameras patrol cars 55,000 59,077 (4,077) - CEP025 Fire operations breathing apparatus - - - 37,469 CEP030 Vehicle expansion 321,000 - 321,000 - CEP031 Software Licensing 48,000 50,048 (2,048) 41,843 CEP033 Data Centers / Computer Rooms 15,000 6,695 8,305 12,990 CEP035 Comm Dev Arc/GIS System 28,000 - 28,000 - CEP036 Business Systems 627,573 437,355 190,218 347,427 CEP038 Police Equipment - - - 20,850 CEP039 Emergency Operations Center - Stn 3 29,309 29,309 - - CEP041 Live Scan Fingerprint Equipment 28,000 26,232 1,768 - CHP001 Buy-Down Program 1,002,538 - 1,002,538 - CHP005 Creekside Housing Improvements - (1,678) 1,678 400,800 2013 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, 2013 With Comparative Actual Amounts For the Year Ended December 31, 2012 CHP005 Creekside Housing Improvements - (1,678) 1,678 400,800 CHP007 Timber Ridge Legal / Zoning 25,000 9,397 15,604 17,315 CMT003 Bus Shelter Replacement Program 30,000 29,331 669 30,000 CMT004 Capital Street Maintenance 735,900 656,606 79,294 673,545 CMT005 Facility Capital 592,000 470,213 121,787 516,728 CMT007 Parking Structure Maintenance 665,000 418,820 246,180 261,233 CMT008 Muni Building Site Design 30,770 22,427 8,343 406,297 CMT009 Environmental Improvements 369,557 148,433 221,124 763,464 CMT012 Flood Repairs 148,336 42,900 105,436 363,446 CMT010 Underground Utilities - - - 77,851 CMT014 Gore Range Townhomes - - - 30,000 CMT015 Recycling Center - - - 1,418 COT002 Street Light Improvement Program 50,000 47,716 2,284 49,954 COT004 Fiber-Optics in Buildings 56,675 25,950 30,726 5,325 COT011 I-70 Noise Mitigation - - - 196,175 CSC015 CDOT Required Parking Imp 708,694 481,166 227,528 1,147,306 CSC013 E Meadow Dr Streetscape - - - 363,701 CSC016 Guest Services Enhancements 2,462,726 300,780 2,161,946 156,384 CSR007 Neighborhood Road Reconstruction 25,000 25,000 3,350 CSR008 Neighborhood Bridges 445,889 383,500 62,389 965,926 VRA002 LionsHead W elcome Center - VRA Funded 94,536 25,649 68,887 828,908 VRA004 Library Remodel - VRA Funded 298,497 238,371 60,126 1,955,231 VRA005 East LionsHead Portal - VRA Funded 351,561 122,687 228,874 1,652,728 VRA006 West LionsHead Portal - VRA Funded 129,544 70,792 58,752 642,956 VRA007 Guest Services Enhancements - VRA Funded 70,000 39,836 30,164 265,610 VRA008 Sun Bird Park at Lionshead 964,568 965,719 (1,151) 9,432 VRA009 Lionshead Parking Entry 200,000 130,038 69,962 - VRA010 I-70 Underpass 400,000 188,414 211,586 - Total 14,348,973 7,105,256 7,243,717 15,695,338 The accompanying notes are an integral part of these financial statements. F9 6/3/2014 2012 Variance Project Final Positive Number Project Name Budget Ac tual (Negative)Ac tual CCF001 Golf Clubhouse Redevelopment 6,513,165 376,549 6,136,616 329,022 CCF002 Ford Park Fields Redevelopment 8,838,782 4,754,829 4,083,953 2,653,269 CCF003 Ford Park Amphitheater 1,210,000 1,213,041 (3,041) - RFP005 Alpine Gardens Contribution 65,620 65,620 - 85,620 RFP006 Ford Park Management Plan 50,000 68,655 (18,655) - RMG001 Project Management - - - 300 RMG002 Environmental: Solid W aste 27,196 25,294 1,902 34,706 RMG003 Environmental: Ecosystem Health 10,000 14,488 (4,488) 13,407 RMG004 Environmental: Public Education 21,500 14,802 6,698 1,839 RMG005 Environmental: Energy & Transportation 20,000 19,851 149 16,258 RMT013 Environmental Sustainability 16,500 5,657 10,843 - RMT001 Recreation Path Maintenance 98,339 33,196 65,143 77,275 RMT002 Tree Maintenance 90,000 81,255 8,745 47,844 RMT005 Street Furniture - Streetscape 75,000 75,025 (25) 24,879 RMT006 Eagle River W atershed Programs 62,000 38,000 24,000 62,550 RMT009 Park/Playground Capital Maintenance 89,000 50,662 38,338 78,077 RMT016 Ford Park / Tennis Center Improvements 2,768 - 2,768 12,199 RMT018 Dobson Ice Arena 68,480 31,780 36,700 158,257 RMT019 Gymnastics Center - - - 275 RMT021 Golf Course Clubhouse & Other - - - 141 RMT024 Athletic Fields 2,848 - 2,848 - RMT025 Nature Center 10,646 - 10,646 - 2013 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, 2013 With Comparative Actual Amounts For the Year Ended December 31, 2012 RMT025 Nature Center 10,646 - 10,646 - RMT027 Golf Course - Other Impr 839,417 114,292 725,125 91,566 RMT028 Flood Repairs 930,832 83,037 847,795 119,168 RPD014 Public Restrooms 368,268 34,094 334,174 1,732 RPD015 Booth Creek Park Redevelopment - 7,728 (7,728) - RPI001 Playground Safety Improvements (Red S.)- - - 161,885 RPI006 Streamtract Improvements 950,000 15,166 934,834 - RPT010 Frontage Road Bike & Ped Paths 688,015 410,972 277,043 701,985 RRT001 Public Art 388,027 81,870 306,157 32,618 RRT003 ADA Compliance - - - 10,000 RRT006 Public Art - W interfest 58,230 11,500 46,730 8,354 Total 21,494,633 7,627,363 13,867,270 4,723,228 The accompanying notes are an integral part of these financial statements. F10 6/3/2014 LOCAL HIGHWAY FINANCE REPORT 6/3/2014 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 2013 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)1,745,467 a. Motor Fuel (from Item I.A.5.) 2. Maintenance:1,966,131 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 287,303 2. General fund appropriations 5,059,933 b. Snow and ice removal 950,361 3. Other local imposts (from page 2)888,440 c. Other 4. Miscellaneous local receipts (from page 2)0 d. Total (a. through c.)1,237,665 5. Transfers from toll facilities 4. General administration & miscellaneous 278,568 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 1,201,270 a. Bonds - Original Issues 6. Total (1 through 5)6,429,101 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)5,948,373 b. Redemption B. Private Contributions 241,970 c. Total (a. + b.)- C. Receipts from State government 2. Notes: (from page 2)238,758 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 D. Receipts from Federal Government b. Redemption (from page 2)- c. Total (a. + b.)- E. Total receipts (A.7 + B + C + D)6,429,101 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)6,429,101 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 - 6,429,101 6,429,101 - (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 6/3/2014 STATE: Colorado YEAR ENDING (mm/yy): December 2013 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 888,440 g. Other Misc. Receipts 6. Total (1. through 5.)888,440 h. Other c. Total (a. + b.)888,440 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 212,399 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 26,359 d. Federal Transit Admin d. Other (Specify) e. U.S. Corps of Engineers e. Other (Specify) f. Other Federal f. Total (a. through e.)26,359 g. Total (a. through f.)0 4. Total (1. + 2. + 3.f)238,758 3. Total (1. + 2.g) (Carry forward to page 1) ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL LOCAL HIGHWAY FINANCE REPORT II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL ITEM ITEM ITEM ITEM HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM (a)(b)(c) A.1. Capital outlay: a. Right-Of-Way Costs 450 450 b. Engineering Costs 290,778 290,778 c. Construction: (1). New Facilities 0 (2). Capacity Improvements 0 (3). System Preservation 1,454,239 1,454,239 (4). System Enhancement & Operation 0 (5). Total Construction (1) + (2) + (3) + (4)0 1,454,239 1,454,239 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5)0 1,745,467 1,745,467 (Carry forward to page 1) Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE 2 F12 6/3/2014 UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE 6/3/2014 2009 2010 2011 2012 2013 Pledged Revenues 1,744,678 2,008,642 3,129,789 3,173,261 3,188,389 Valuation Valuation Total Assessed Percent Allocable Allocable Levy Year Collection Year Valuation Change to Base to Increment 2008 2009 150,346,640 105,223,320 45,123,320 2009 2010 170,216,530 13.2% 104,994,570 65,221,960 2010 2011 146,890,960 -13.7% 83,473,630 63,417,330 2011 2012 146,243,940 -0.4% 83,179,120 63,064,820 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated December 31, 2013 Vail Reinvestment Authority History of Pledged Revenues Vail Reinvestment Authority History of Assessed Valuations TABLE I TABLE II 2012 2013 166,325,430 13.7% 94,467,810 71,857,620 Tax Areas 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 202 46.1240 44.2270 46.9000 46.9400 46.2540 203 44.5150 42.8120 45.2900 45.3560 44.7780 204 55.3040 52.7070 61.1100 61.1170 60.1000 206 46.1240 44.2270 46.9000 46.9400 46.2540 207 86.1240 84.2270 86.9000 86.9400 86.2540 208 71.1240 69.2270 71.9000 71.9400 71.2540 216 71.1240 69.2270 - - - 225 111.1240 109.2270 - - - Mil Levies Affecting Property Owners within the Vail Reinvestment Authority Plan Area TABLE III G1 6/3/2014 2013 Preliminary Percentage of Total Taxpayer Name Assessed Valuation Assessed Valuation DiamondRock Vail Owner LLC 24,565,400 14.8% Ritz-Carlton Development Co, Inc. 10,152,490 6.1% Arrrabelle at Vail Square LLC 6,041,980 3.6% RCR Vail LLC 5,035,390 3.0% Vail Corp 3,411,350 2.1% A Belle Vail Co, LLC 2,624,290 1.6% Lazier Lionshead LLC 2,382,640 1.4% Lionshead Inn LLC 2,314,780 1.4% Arrrabelle at Vail Square LLC 1,886,320 1.1% Soho Development LLC 1,254,270 0.8% Total Assessed Valuation 166,325,430 Issuer's Annual Report Update of Official Statement Tables to be Updated December 31, 2013 TABLE IV Largest Taxpayers in the Authority Town of Vail, Colorado Total Percentage of Total Class Assessed Valuation Assessed Valuation Residential 112,597,310 68% Commercial 52,984,790 32% Vacant 637,060 0% State Assessed 106,270 0% Total 166,325,430 100% TABLE V 2013 Preliminary Assessed Valuation of Classes of Property in the Authority G2 6/3/2014 2009 2010 2011 2012 2013 Revenues: Other: Property tax 1,983,159 2,370,229 3,366,594 3,383,493 3,413,188 Interest on investments 26,705 3,971 35,873 12,817 1,714 Interest Subsidy (Build America Bonds) - - 194,165 180,618.64 166,259 Total Revenues 2,009,864 2,374,200 3,596,632 3,576,929 3,581,161 Expenditures: Economic Development: Administration 34,195 39,906 57,706 59,352 60,133 Fiscal agent fees - - 2,200 - 2,200 Office supplies 162 - - - - Treasurer's fees 59,495 71,113 101,001 101,512 102,396 Professional fees 9,669 - 2,125 1,535 413 Vail Square Metro District 265,186 365,558 466,843 403,668 392,772 Capital outlay 337,536 1,859 - - - Total Economic Development:706,243 478,436 629,875 566,067 557,914 Debt Service: Principal - - 250,000 445,000 460,000 Interest - - 676,675 618,778 605,203 Total Debt Service:- - 926,675 1,063,778 1,065,203 December 31, 2013 TABLE VI History of Revenues, Expenditures, and Changes in Fund Balance Vail Reinvestment Authority Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Total Expenditures 706,243 478,436 1,556,550 1,629,845 1,623,117 Excess (Deficiency) of Revenues Over Expenditures 1,303,621 1,895,764 2,040,082 1,947,083 1,958,044 Other Financing Sources (Uses): Debt proceeds - 11,940,000 - - - Issuance costs - (236,893) - - - Issuance premium - 63,427 - - - Transfers out - (1,070,365) (7,125,196) (5,354,864) (1,842,286) Total Other Financing Sources (Uses)- 10,696,169 (7,125,196) (5,354,864) (1,842,286) Net Change in Fund Balances 1,303,621 12,591,933 (5,085,114) (3,407,780) 115,758 Fund Balances - January 1 1,333,551 2,637,172 15,229,105 10,143,991 6,736,211 Fund Balances - December 31 2,637,172 15,229,105 10,143,991 6,736,211 6,851,969 G3 6/3/2014 2013 Amended 2013 2014 Budget Actual Budget Revenues: Other: Property tax 3,548,000 3,413,188 3,833,000 Interest on investments 33,000 1,714 41,000 Interest subsidy (Build America Bonds) 166,259 166,259 167,614 Total Revenues 3,747,259 3,581,161 4,041,614 Expenditures: Economic Development: Administration 62,660 60,133 67,700 Fiscal agent fees 2,200 2,200 2,200 Treasurer's fees 106,440 102,396 114,990 Professional fees 25,000 413 25,000 Vail Square Metro District 402,550 392,772 434,560 Total Economic Development:598,850 557,914 644,450 Debt Service: Principal 460,000 460,000 475,000 Interest 605,203 605,203 591,178 Total Debt Service:1,065,203 1,065,203 1,066,178 Total Expenditures 1,664,053 1,623,117 1,710,628 Excess (Deficiency) of Revenues Over Expenditures 2,083,206 1,958,044 2,330,986 Other Financing Sources (Uses): Transfers (out) (2,606,706) (1,842,286) (3,950,000) Net Change in Fund Balances (523,500) 115,758 (1,619,014) Fund Balances - January 1 6,736,211 6,736,211 6,851,969 Fund Balances - December 31 6,212,711 6,851,969 5,232,955 Outstanding Issue Principal Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010A 2,515,000 Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010B 8,270,000 Total 10,785,000 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated December 31, 2013 TABLE VIII Outstanding Revenue Obligations TABLE VII 2013 Budget Summary and Actual Comparison / 2014 Budget Vail Reinvestment Authority G4 6/3/2014 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 3, 2014 ITEM/TOPIC: A request to proceed through the development review process with a proposal to construct an addition to the Colorado Ski and Snowboard Museum on the Town of Vail owned Vail Village parking structure, located at 231 East Meadow Drive/Tracts B and C, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. PRESENTER(S): Joe Batcheller, Planner ACTION REQUESTED OF COUNCIL: On behalf of the property owner, the Vail Town Council shall approve, approve with conditions, or deny the applicant’s request for property owner authorization to proceed through the Town’s development review process. ATTACHMENTS: TC Cover Memorandum Applicant's Request Coloraod Ski and Snowboard Museum Photos 6/3/2014 TO: Vail Town Council FROM: Community Development Department DATE: June 3, 2014 SUBJECT: A request to proceed through the development review process with a proposal to construct an addition to the Colorado Ski and Snowboard Museum on the Town of Vail owned Vail Village parking structure, located at 231 East Meadow Drive/Tracts B and C, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto. Applicant: Colorado Ski and Snowboard Museum, represented by Jamie Duke, Chairman of the Board Planner: Joe Batcheller I. DESCRIPTION OF REQUEST The applicant, Colorado Ski and Snowboard Museum, represented by Jamie Duke, Chairman of the Board, is requesting property owner authorization to proceed through the Town’s development review process with a proposal to construct additions upon the Colorado Ski and Snowboard Museum on the Town of Vail owned Vail Village parking structure. A letter from the applicant detailing the request (Attachment A), floor plans and perspective elevation plan (Attachment B), and letter from the structural engineer (Attachment C) are included for review. Specifics of the proposal include: • A single story 330 square foot addition to the south of the existing façade. II. CONSIDERATIONS • Pursuant to Chapter 12-16, Conditional Uses, Vail Town Code, the proposal to construct an addition to the Colorado Ski and Snowboard Museum will require review and approval of an amended conditional use permit by the Planning and Environmental Commission for the Vail Village Parking Structure. • Pursuant to Chapter 12-9C, General Use District, Vail Town Code, aspects of the proposed development plan will be prescribed by the Planning and Environmental Commission, such as parking and loading. • Pursuant to Chapter 12-23, Commercial Linkage, Vail Town Code, the proposed expansion of 330 square feet will be required to mitigate the generation of 0.05 new 6/3/2014 Town of Vail Page 2 employees. This equates to a fee-in-lieu payment of $3,724.05 at the currently adopted fees rates. • Pursuant to Chapter 12-11, Design Review, Vail Town Code, the proposal to construct an addition to the Colorado Ski and Snowboard Museum will require review and approval of a Design Review application by the Design Review Board. III. ACTION REQUESTED On behalf of the property owner, the Vail Town Council shall approve, approve with conditions, or deny the applicant’s request for property owner authorization to proceed through the Town’s development review process. The approval of this request will only grant the applicant the required property owner authorization necessary to proceed through the town’s development review process and does not constitute an explicit approval of the proposed improvements. As representatives of the property owner, if the Town Council has specific concerns with what is being proposed, those concerns must be expressed at this time. IV. RECOMMENDATION Should the Vail Town Council choose to approve the applicant’s request, Staff recommends the Council pass the following motion: “The Vail Town Council, on behalf of the property owner, approves the applicant’s request to proceed through the development review process with a proposal to construct an addition to the Colorado Ski and Snowboard Museum, located at 231 East meadow Drive/Tracts B and C, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto.” V. ATTACHMENTS A. Letter from applicant dated May 21, 2014 B. Perspective elevation and floor plans C. Letter from the Structural Engineer dated March 26, 2014 D. Photographs of the site 6/3/2014 May 21, 2014 Mr. Warren Campbell Community Development Department Town of Vail, Colorado 75 South Frontage Road Vail, Colorado 81657 Dear Warren, The Colorado Ski Museum, Inc. is requesting permission from the Vail Town Council to proceed through the development review process with a proposal to construct 330 square feet, net new, on the south side of the existing 3rd level the of the Vail Village Transportation Center. The expanded footprint will provide the minimum depth required to completely modernize the interior and flow of this dated facility. The interior modernization will include removal of the drop ceilings in order to provide a more spacious feeling. The added space will not require any additional structural supports in the parking structure, will not block the intake vent of the mechanical room supporting the 3rd and 4th floor air handling system and will not impede the pedestrian flow entering/existing the parking structure or using the main stairways. The facility is located in a general use zone which supports the current use. The Colorado Ski & Snowboard Museum is Vail’s Sleeping Beauty and it’s time for a reawakening has arrived. Modernization of this local landmark, that has been holding vigil at Vail's gateway since 1976, is long overdue but is especially timely now when the Town of Vail has recognized the need for a facelift of the Vail Village Transportation Center and is in the process of remodeling its Welcome Center which sits directly above the Museum. Interpretation and presentation of the museums exemplary collection will be put center stage using modern museum displays and presentation technologies. Expanding the depth of the facility by 10 feet will allow for a logical flow through the exhibit areas which will profoundly improve the educational experience. A “theater style” viewing area will be incorporated giving visitors the opportunity to enjoy, undisturbed, our extensive collection of historical documentaries and films including Climb to Glory which has recently been released. The gift shop will be moved to the eastern side of the space so as not to divide the exhibit space. These improvements will ensure the facility complies with world-class standards, furthering supporting Vail Town Council desire to expand upon its community infrastructure as the foundation of the community’s success with particular emphasis on an abundance of recreational, culture and educational opportunities while building capacity for future leaders. The Museum is already one of Vail’s most visited cultural/educational institutions, proudly hosting 75,000 community members and visitors each year who enjoy being immersed in the history and heritage of skiing. A vastly improved Museum will enhance the off-mountain and/or indoor amenities and experiences non-skiing guests are actively seeking in the commercial core. The Museum’s visitors, many of which are enticed to make a stop in Vail by the highway signs, tend to linger and explore the entire Village. In addition to daily visitors, the Museum hosts field trips with over 600 children from elementary, middle and high schools in the region. Also, college students attending CMC in both Summit and Routt County receive course credit for ski area history programs hosted at the Museum. For those that are not fully aware of the Museum’s history, this now 38-year-old institution was a result of a joint application to the Colorado Centennial Bi-Centennial Celebration Committee submitted in 1975 by Town of Vail Manager Terry Minger and Vail Centennial Ski Museum, Inc. aka Colorado Ski Museum. Along with Minger, the first Board of Directors was made up of a cross section of Vail and Colorado ski industry stakeholders. It included Mayor John Dobson-Town of Vail, Peter Seibert-Vail Associates, Robert Parker-Vail Associates, Donald Simonton-High Country Parish, Dale McCall-Vail Businessman, J.D. Abbott-Vail Businessman, William Lucas-U.S. Forest Service, Louis 6/3/2014 Livingston-National Ski Patrol, Merrill Hastings-Colorado Magazine, Neil Allen–Public Service Company, Earl Clark- 10th Mountain Association and Tod Martin–Colorado Ski Country, USA. Once approved Town of Vail purchased the Mountain Bell building, which was located at the main intersection of Vail Road and Meadow Drive, for its new Museum. The Museum gave up ownership of the Mountain Bell building and was moved to its present location as part of the re- development of the Vail Village Inn. The Town of Vail owned space under La Bottega was originally planned for the re- location of the Museum but at the last minute the current space, designed for offices, was chosen because it had higher visibility and traffic. Should the Vail Town Council grant permission for the Museum’s expansion/modernization project to proceed through the development review process its next step will be review by the PEC. The PEC application has been submitted and is awaiting the Town Council decision. Once the PEC recommends approval the Museum will initiate a Capital Project Feasibility study which will be conducted by a specialized consultant. The consultant will conduct interviews with prospective donors to assess their interest in the Museum and willingness to support the capital project. The Feasibility Study will include discussion with Town of Vail to assess its interest in a public-private partnership to fund a portion of the proposed improvements to this Town of Vail owned property. The submitted conceptual drawings, site plans and preliminary cost estimates have been developed by Ned Gwathmey and David Viele, both of whom donated their services for the initial planning of this project. The construction cost for the space and removal of the drop ceiling that will impact mechanical and plumbing are currently estimated at $1M. The remodel of the exhibits and gift shop, and other related project costs, are currently projected to be $975,000. If the Feasibility Study result is favorable the Capital Campaign will be led by Museum board member Lucy Davis who most recently served as Chairman of the 2015 Fundraising committee. Colorado Ski Museum, Inc. is grateful for the original 25 year commitment made by the Town of Vail to manage and operate the Ski Museum and for its continued support. This venerable museum and Vail landmark awaits its renaissance as a more vital center, a public place and a laboratory for learning and remembering this states great legacy. We are looking forward to making a brief presentation to the Council and answering any questions that they might have on the evening of June 3, 2014. Sincerely, Jamie Duke Chairman of the Board Colorado Ski Museum, Inc. 6/3/2014 6/3/2014 6/3/2014 6/3/2014 6/3/2014 VAIL WELCOME CENTER SOUTH ELEVATION APPROVED DESIGN 6/3/2014 INTERIOR CONCEPTS 6/3/2014 6/3/2014 6/3/2014 6/3/2014 6/3/2014 6/3/2014 6/3/2014 VAIL TOWN COUNCIL AGENDA MEMO MEETING DATE: June 3, 2014 ITEM/TOPIC: Adjournment (7:00 p.m.) 6/3/2014