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HomeMy WebLinkAbout2000-12 Support of the Passage of the De-Brucing the TOV's Property Tax RevenueRESOLUTION NO. 12 SERIES 2000 A RESOLUTION IN SUPPORT OF THE PASSAGE OF THE DE-BRUCING THE TOWN VAIL'S PROPERTY TAX REVENUE. WHEREAS, in 1993 by a margin of 74%, Vail "de-Bruced" all of its revenues except for property tax; and WHEREAS, the Town has since experienced slow to declining revenue growth in the Town's primary revenue sources over the past four years, to include the following (these losses are the amount below the four-year inflation rate): Lift Tax Revenue $770,884 Road and Bridge 345,378 (based on a reduced county mill levy) Cigarette Tax 85,212 Fines and Forfeitures 160,259 (based on emphasis on warning tickets over actual fines) Parking Revenue 978,109 (based on "Free After Three" and other discounted parking programs) Franchise Fees 113,308 Additionally, sales tax over the last two years has paled inflation growth by 1,404,335. To keep this erosion in revenues from impacting the premier services the Town provides, the Town Council supports "de-Brucing" the property tax revenue so the Town can continue to strive to provide the level of services to which this community is accustomed; and WHEREAS, in the year 2000 the Toyib of Vail eliminated 10 full time positions and is in the Y2001 process of reducing staff by another 5 to 7 full time positions to deal with these shortfalls in revenue; and WHEREAS, in the year 2000 the Town anticipates using $609,000, or 17% of the Town's General Fund balance, due to the revenue shortfall; and WHEREAS, the issue of "shipped out" retail merchandise cost the Town in lost sales tax $1.4M in 1999, which had increased 5.6% from 1998. This will continue to erode the growth in sales tax; and WHEREAS, because Vail's resort -based economy is more susceptible to fluctuations in its revenue sources than other municipalities, the issue is of particular importance in determining the ability to maintain service levels for residents and guest; and WHEREAS, the mill levy cannot be raised without a public vote. However, this change would allow property tax revenue to increase in proportion to increases in assessed valuation at the Town Council's discretion; and WHEREAS, the Town's services are provided primarily by revenues coming from tourism. Property tax revenue makes up no more than 7% of the Town's total revenue; and WHEREAS, Vail would join 230 other municipalities across the state in de- Burcing. NOW, THEREFORE, be it resolved by the Town Council of the Town of Vail, Colorado: SECTION 1. The Town Council fully supports and recognizes the need to approve Question No. 2B on the November 7, 2000, Eagle County Coordinated Ballot. SECTION 2. This resolution shall take effect immediately upon its passage. INTRODUCED, READ, APPROVED AND ADOPTED this 3rd day of October, 2000. Lorelei Donaldson, Town Clerk