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HomeMy WebLinkAbout2020-06-02 Agenda and Supporting Documentation Town Council Afternoon Meeting Agenda VAIL TO W N C O U N C IL R E G U L AR ME E TIN G Agenda Town C ouncil Chambers and Virtual 3:00 P M, June 2, 2020 Meeting to be held in C ouncil Chambers and Virtually (access High Five Access Media livestream day of the meeting) Notes: Times of items are approximate, subject to change, and cannot be relied upon to determine what time Council will consider an item. Public comment on any agenda item may be solicited by the Town Council. 1.Presentation / Discussion 1.1.Burton US Open Recap 20 min. Presenter(s): Mia Vlaar, Economic Development Director and W hitney Heingartner, Burton Background: Burton US Open Snowboard Championships event promoters will provide a 2020 event recap noting some of the community and economic benefits to the Town of Vail. 1.2.2019 Audited Financial Statements for the Town of Vail 15 min. Presenter(s): Kathleen Halloran, Finance Director and Michael J enkins, Mc Mahan and Associates Action Requested of Council: The 2019 audited financial statements are presented to Town Council for information only; No action requested. Background: I n 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 made available for public inspection. The 2019 audit was conducted by Mc Mahan and Associates. 1.3.2020 Semi-Annual Update on Housing - Progress Towards the Goal 30 min. Presenter(s): George Ruther, Housing Director and Steve Lindstrom, Chair, Vail Local Housing Authority Action Requested of Council: For information only - no action is requested Background: The Vail Housing 2027 Strategic Plan was adopted by the Vail Town Council in September of 2017. To ensure progress towards the adopted housing goal a performance measured was put in place obligating the Vail Local Housing Authority and the Town's Housing Department to provide an update to the Vail Town Council twice annually. The purpose of this presentation is to honor that obligation and demonstrate progress towards the goal. 1.4.Alternate Housing Site Presentation 30 min. Presenter(s): George Ruther, Housing Director Action Requested of Council: No action is recommended at this time Background: On May 16th, the Town staff presented an overview of the alternate housing June 2, 2020 - Page 1 of 235 site plan to the Vail Town Council. T his presentation provides a more in depth overview of potential options and strategies for implementation. T he purpose of this presentation is to provide an update on the progress of the Vail Town Council’s initiative to explore an alternate path to achieving the Town’s adopted housing and environmental stewardship goals. T he staff memorandum highlights a draft alternate housing site plan and outlines strategies for implementation. Staff Recommendation: A series of recommended actions is outlined in Section 3 of the memorandum. Each of the actions recommended is intended to advance the proposed alternate housing plan, and its many pieces, forward. 1.5.Vail Economic Recovery Efforts in Response to Public Health Crisis 30 min. Presenter(s): Scott Robson, Town Manager Action Requested of Council: I nformation and discussion only Background: There have been a number of economic recovery updates provided during recent meetings. This presentation will continue to update the community about economic recovery tactics and initiatives that have been recommended by the Town Manager's Office, the V E A C, V V P, V C B A and regional task force groups. There have been numerous programs implemented in an effort to reboot the businesses in Vail and in response to the public health crisis. 2.D R B / P E C Update (5 min.) 2.1.D RB / P E C Update Presenter(s): J onathan Spence, Planning Manager 3.Information Update (5 min.) 3.1.C S E minutes. 3.2.V LHA April 28, 2020 Meeting Results 3.3.May Revenue Update 4.Matters from Mayor, Council and Committee Reports (10 min.) 5.Executive Session 5.1.Executive Session, pursuant to: 1) C.R.S. §24-6-402(4)(b) - to receive legal advice on specific legal questions; Regarding: Zoning Process 10 min. Presenter(s): Matt Mire, Town Attorney 6.Recess 6.1.Recess at 5:35 pm (estimate) June 2, 2020 - Page 2 of 235 Meeting agendas and materials can be accessed prior to meeting day on the Town of Vail website www.vailgov.com. All town c ounc il meetings will be streamed live by High Five Acc ess Media and available for public viewing as the meeting is happening. The meeting videos are also posted to High Five A cc ess Media website the week following meeting day, www.highfivemedia.org. Please c all 970-479-2136 for additional information. S ign language interpretation is available upon request with 48 hour notification dial 711. June 2, 2020 - Page 3 of 235 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: Burton US Open Recap P RE S E NT E R(S ): Mia Vlaar, E conomic Development Director and W hitney Heingartner, B urton B AC K G RO UND: B urton US Open Snowboard Championships event promoters will provide a 2020 event recap noting some of the community and economic benefits to the Town of Vail. AT TAC H ME N TS: Description Burton Recap June 2, 2020 - Page 4 of 235 Burton US Open February 2020 Prepared for: Burton US Open Prepared by: Intercept Insight, LLC PO Box 2078 Avon, CO 81620 970.331.1086 www.interceptinsight.com June 2, 2020 - Page 5 of 235 Table of Contents Table of Contents Objectives …………………………………………………………………………………………………………………………………………………………..1 Methodology …………………………………………………………………………………………………………………………………………………….2 Overview and Summary …………………………………………………………………………………………………………………………………..3 Highlights …………………………………………………………………………………………………………………………………………………………….4 Detailed Findings Attendee Details ………………………………………………………………………………………………………………………………6 Recommendation (Net Promoter Score)………………………………………………………………………………………….11 Event Performance……………………………………………………………………………………………………………………………13 Media/Awareness …………………………………………………………………………………………………………………………….18 Spending Habits ………………………………………………………………………………………………………………………………..21 Attendance/Revenue Generation ……………………………………………………………………………………………………..24 Accommodations ……………………………………………………………………………………………………………………………..26 Geographical Data …………………………………………………………………………………………………………………………….29 Demographical Data ………………………………………………………………………………………………………………………….31 Favorite activities ……………………..…….…………………………………………………………………………………………………36 End of Report INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086June 2, 2020 - Page 6 of 235 Burton invested in a third party research company, Intercept Insight, LLC, to conduct intercept surveys during the Burton US Open to help quantify decisions and increase performance related to the event. With this insight, Burton is able to evaluate economic contributions of the event, develop objectives to increase the overall performance, market effectively, and provide sponsors with valuable data regarding the event. Burton identified several objectives for this study. Objectives: Attendee details (e.g. attendance, reason for visiting Vail, prior attendance, loyalty) Intent to return to the event Quantify recommendations Evaluate event performance Estimate spending habits Estimate revenue generation Understand media effectiveness/awareness Obtain demographical and geographical data Determine accommodations, nights stayed, town stayed in, etc. Favorite activities Objectives 1INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086June 2, 2020 - Page 7 of 235 Burton and Intercept Insight designed a core set of questions intended to meet the objectives of the study, including some event specific questions. Once the survey was approved the questions were programmed into a survey design tool and uploaded to handheld devices (iPads). The surveys were conducted in -person using the handheld devices to collect the data. In-person intercepts were conducted February 26th –29th,2020 throughout the various venue locations. Surveyors were hired and trained to conduct the intercepts in a way so that a random representative sample of the population was being collected each day. Those surveyed must have been 18 years of age or older. A sample plan was designed, and a daily quota was met. Once the daily quotas were met the data was downloaded using a statistical software, and prepared for analysis and reporting. Methodology 2INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086June 2, 2020 - Page 8 of 235 It is important to remember that this is a tool for gathering event attendees’ opinions and feedback. Many of the results are presented in terms of percentages. Intercept Insight, LLC encourages readers to consider the overall direction that is suggested rather than only the statistics. Note that the margin of error is different for every single question response on the survey depending on the sample sizes, proportion of responses, and number of answer categories for each question. As a general comment, it is sometimes more appro priate to focus attention on the general trends and patterns in the data rather than on the individual percentages. Burton engaged Intercept Insight, LLC for research services/in-person intercepts during the 2020 Burton US Open. These services included strategy and execution, survey development, programming, analysis, reporting, and staffing. Surveyors using handheld data collection tools conducted in-person intercepts throughout the various venue locations. 282 surveys were conducted over the course of the event,which provides a 5.7% margin of error at a 95% confidence interval with the data collected. Using the total transactions within the parking structures over the course of the event, photos, square footage of venue loca tions, and data from specific survey questions, the total estimated attendance for the event was approximately 23,822. Using the estimated attendance and specific survey questions regarding accommodations, spending habits, and the percentage of those who came to Vail specifically for this event, an estimated revenue generation for the Town of Vail was calculated. The Burton US Open was responsible for generating appro ximately $4.4M, within the Town of Vail. Overall Satisfaction with the event was extremely high with a mean satisfaction rating of 4.8 on a scale of 1 to 5, where 1=N ot at all satisfied and 5=Extremely satisfied. The Burton US Open earned a Net Promoter Score of 77, with 81% of the respondents classified as “Promoters”. “Friends/family” was the most selected option when asked “How did you hear about, and/or where did you see advertising for th is event this year?” Locals made up 36% of the attendance, while 59% of the attendees were overnight guests. 53% of the attendees were from Color ado. 77% of those staying in paid lodging stayed in Vail; staying an average of 5.3 nights. The average age of the attendees was 40.1, with 59%/41% being male/female respectively. 26% attended with friends only, and 23% attended by themselves. The average number of children per family in attendance was 1.9, and the average age of children under 18 was 9.6 years. Most of the respondents enjoy hiking, skiing, an d snowboarding. Overview and Summary 3INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086June 2, 2020 - Page 9 of 235 Total completed surveys –282 Sample size provides statistical validity with an error rate of 5.7% at a 95% confidence interval Estimated attendance –23,822 Estimated revenue generated to the Town of Vail -$4.4M Net Promoter Score –77 Overall Satisfaction –4.8 (using a scale of 1 to 5, where 1=Not at all Satisfied and 5=Extremely Satisfied) 68% of the attendees came to Vail specifically for this event 53% of the attendees had attended this event in the past Average number of days attended –2.4 “Friend/family” was selected most when asked, “How did you hear about, and/or where did you see advertising for this event?” 77% of the attendees staying in paid lodging stayed in Vail 81% are “Very” or “Extremely Likely” to return in the future 65% of the first-time attendees are “Very” or “Extremely Likely” to return in the future Average nights stayed in paid lodging in Vail, CO –5.3 Average group size of those lodging in Vail, CO –3.6 Average age of respondents –40.1 Average age of children < 18 in attendance –9.6 Estimated number of room nights generated –4,140 Estimated average nightly rate in Vail -$606 Most preferred activities: Hiking, Skiing, and Snowboarding Highlights 4 INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086June 2, 2020 - Page 10 of 235 Attendee Details June 2, 2020 - Page 11 of 235 Attendance 68% of the attendees planned their trip to Vail specifically for the event. Of those who came to Vail specifically for the event, 53% were local visitors, and 44% were overnight guests. 6INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 0% 20% 40% 60% 80% 100% Came for event Heard about it after arrival 68% 32% Burton US Open -Reason for Visiting Vail 2020 N = 282 0% 20% 40% 60% 80% 100% Local In-State Day In-State Overnight Out-of-State International 53% 3% 18%25% 1% Burton US Open -Came for Event by Market Segment 2020 N = 192 June 2, 2020 - Page 12 of 235 Attendance 47% were first-time attendees. Respondents attended an average of 2.4 days 7INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 0% 20% 40% 60% 80% 100% First year 2 years 3 years 4 years 5 years 6 years 7 years 8 years 47% 10%10%9%8%4%2%10% Burton US Open -Prior Attendance 2020 N = 282 0% 20% 40% 60% 80% 100% 1 Day 2 Days 3 Days 4 Days 30%25%22%23% Burton US Open -Days in Attendance 2020 N = 282 June 2, 2020 - Page 13 of 235 Attendance 8INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 0% 20% 40% 60% 80% 100% Drove, parked in Vail Village Drove, parked in Lionshead Drove, parked other lot Drove, parked on Frontage Road Took the bus Walked/road bike Other (specify)Walked from Lodging Property 28% 8%6%1% 33% 1%2% 21% Burton US Open -Venue Access 2020 N = 282 0% 20% 40% 60% 80% 100% Less than an hour 1 hour 1.5 hour 2 hours 2.5 hours 3 hours 3.5 hours 4 hours 4.5 hours 5 hours 5.5 hours 6 hours 6.5 hours 7 hours 7.5 hours 8 hours 4%11%3% 25% 6% 18% 3% 14% 2%6%1%1%0%2%0%4% Burton US Open -Length of Stay 2020 N = 282 June 2, 2020 - Page 14 of 235 Intention to Return 9INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 0% 20% 40% 60% 80% 100% Not at all Likely Not Very Likely Somewhat Likely Very Likely Extremely Likely 0%2% 17% 31% 50% Burton US Open -Intention to Return 2020 N = 28281%of the respondents are 'Very' or 'Extremely Likely' to return in the future. 0% 20% 40% 60% 80% 100% Not at all Likely Not Very Likely Somewhat Likely Very Likely Extremely Likely 1%4% 30%39% 27% Burton US Open -First-year Attendees Intention to Return 2020 N = 13265%of the first-year attendees are 'Very' or 'Extremely Likely' to return in the future. June 2, 2020 - Page 15 of 235 Recommendation June 2, 2020 - Page 16 of 235 Recommendation The Net Promoter Score is calculated via the following question: “On a scale of 0 to 10, where 0=Not at all likely and 10=Extremely likely, how likely are you to recommend the Burton US Open to a friend or family member? Those who rate a ‘9’ or ‘10’ are called “Promoters”. Those who rate a ‘7’ or ‘8’ are called “Passive Supporters”, and those who rate ‘0’ to ‘6’ are called detractors. The Net Promoter Score (NPS) is calculated by subtracting the percentage of Detractors from the percentage of Promoters. 11INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 77 0 10 20 30 40 50 60 70 80 90 100 0% 20% 40% 60% 80% 100% 2020 Net Promoter ScoreRecommendation DistributionAxis Title Burton US Open -Net Promoter Score Promoters Passive Supporters Detractors NPS Burton US Open -Increase Recommendation Too old Swag Start on time Stage different Seats Real bands More vendors More vendors More surveys More room More music More food More artists More advertisement More advertising Longer Free swag Free booze Escalator Easy access to mountain Easier access Different artists Better viewing Bad music and quality Audience June 2, 2020 - Page 17 of 235 Event Performance June 2, 2020 - Page 18 of 235 Hierarchy of Customer Satisfaction Needs Basic Requirements Met Promised Requirements Met Satisfaction Scores from 4.5 –5.0 Attractive Surprises Met Satisfaction Scores from 1.0 –3.4 Satisfaction Scores from 3.5 –4.4 The Customer Delight Principle was designed to identify shortcomings within a business and to improve satisfaction. Satisfac tion can be measured along a continuum and can be broken out into three major points: •Discontentment –customers needs are simply not being met. •Merely Satisfied –meeting customers needs, but not doing enough to distinguish among competition. •Delighted –meeting and exceeding the customers needs and expectations Terry Keiningham and Terry Varva, 2001,The Customer Delight Principle, Google Book Search, viewed 6/23/2008, http://books.google.com/books?id=ot8oD9B2Ck8C&dq=cus tomer+Delight+Prinicple&pg=PP1&ots=VOXp3xEU0J&sig=9 VbRewC5X8MN3xs2vDpmuS9muNk&hl=en&sa=X&oi=book_ result&resnum=1&ct=result 13June 2, 2020 - Page 19 of 235 Attribute Satisfaction Each person surveyed was asked to rate their satisfaction level with several attributes of the event on a scale of 1 to 5, where 1=Not at all satisfied and 5=Extremely satisfied. This graph displays the percentage of those who rated a ‘4’ or ‘5’, as well as the mean satisfaction rating of each attribute. 14INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 96%94%92%95%87% 98% 4.8 4.7 4.8 5.0 4.7 5.0 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 0% 20% 40% 60% 80% 100% 120% 140% 160% Overall satisfaction so far Quality of the music Quality of the food and beverages vendors Family friendly activities Parking/access Quality of the riders Burton US Open -Attribute Satisfaction Ratings Percentage who rated a '4' or '5' 2020 Mean Rating 2020 June 2, 2020 - Page 20 of 235 “One Change” Comments 15 INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 2020 Burton US Open -One Change Comments Wheelchairs Way to get handicapped people up to the half pipe Warming stations Warmers Warmers Walk up, merch at bottom of half pipe Walk up, bleacher seats Walk up the hill Walk up Walk up Walk up Walk up Walk up Walk up Walk up Walk up Walk to the pipe w kids is not good Viewing Test drives Tell use the consent starts later Tequila Sunscreen stations Stairs Stairs Stairs Sponsor tents should stay open after the events Space Seats Seating 2020 Burton US Open -One Change Comments Rides up hill Rides up hill Rides up Put heaters Publicize Play u2 Places to eat and sit Perfect Parking cheaper Parking Parking Parking Parking No saved seats More warning More vendors More vendors More venders, spread out More variety in the music More tvs More swag More seats More seats More seating at half pipe More seating More red bull More people More outdoor heaters More maps and stickers 2020 Burton US Open -One Change Comments More live More kid activities More info on app, riders orders More heaters More heaters More games for swag More free swag More free swag More food and drink options More family friendly activities More events More events More bathrooms More area More area More advertising More activities in town Marijuana dispensers Make sure the livestreams are up Make it later Lower parking rate Less stairs halfpipe Last longer Keep doing it Heating lamps Heat Good Free tickets Free swag 2020 Burton US Open -One Change Comments Free parking Free beer Free beer Free beer Free beer Fire pits in VIP Easier access Easier access Do it at night Different music Cheaper beer Bring back to Vermont Bigger venue Bigger music names Bigger bands Better viewing Better sponsor village Better set up stage Better seating Better parking Better parking Better artists Better artists Artist Area Align up the hill but knows it's unavoidable Add bleachers Ada accessible Access to the side of the pipe 360 music June 2, 2020 - Page 21 of 235 Burton Brand Performance 16 INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Not at all fits Not very well fits Somewhat fits Very well fits Completely fits lifestyle 6% 13% 23% 29%28% 5% 11% 23%27% 34% Burton US Open -How does the Burton brand fit your lifestyle? 2020 Before Event 2020 After Event N = 282 June 2, 2020 - Page 22 of 235 Media/Awareness June 2, 2020 - Page 23 of 235 Media/Awareness 18INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 39% 15%14%12%8%8%8%4%4%3%3%2%1%1% Burton US Open -Media/Awareness (Multiple Response) 2020 June 2, 2020 - Page 24 of 235 Media/Awareness Comments 19INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 Burton US Open -Media/Awareness "Other" Comments Walking in Up the mountain Tents Streets Street Stage Rental website Past Past Past Passing by Mountain Local Living here Lived Lived Lived Industry Here all over Grown up Future For work Bus Bus Been All over All over All All June 2, 2020 - Page 25 of 235 Spending Habits June 2, 2020 - Page 26 of 235 Spending Habits 21INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 Lodging Spend Vendor Spend Dining Spend Retail Spend Activities Spend Total Spend $3,187,465 $120,116 $245,326 $145,901 $177,863 $3,876,670 Burton US Open -Household Spending of Guests Staying in Paid Lodging (Only those who came for the Event) Lodging Spend is equal to only those who stayed in paid lodging within Vail. June 2, 2020 - Page 27 of 235 Spending Habits 22INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 $0 $100,000 $200,000 $300,000 $400,000 $500,000 Vendor Spend Dining Spend Retail Spend Activities Spend Total Spend $66,262 $148,254 $70,072 $150,502 $435,091 Burton US Open -Household Spending of all other Overnight Guests (Only those who came for the Event) $0 $50,000 $100,000 $150,000 $200,000 Vendor Spend Dining Spend Retail Spend Activities Spend Total Spend $39,547 $76,323 $23,735 $1,720 $141,326 Burton US Open -Household Spending of all Local/In-state Day Visitors (Only those who came for the Event) June 2, 2020 - Page 28 of 235 Attendance and Revenue Generation June 2, 2020 - Page 29 of 235 Estimated Attendance and Revenue Generation 24INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 This graph represents the estimated Total Attendance, Total People, Total People (Came for Event), and Gross Revenue Generation for the Town of Vail. The Total Attendance estimation is based on the total number of vehicle transactions within the parking structures (provided by the TOV), photos and square footage of the venues, percentage of attendees who drove, average group size, and other survey data variables. Total People accounts for the average number of days in attendance. Total People (Came for Event) accounts for the percentage of those who planned their trip to Vail for the event, and is the sample set used for the estimated Gross Revenue Generation. Estimated gross revenue generation for the Town of Vail: $4.4M Note: the gross revenue generation incudes approximately $1.8M in production spend 23,822 9,997 6,806 $4,390,412 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 2020 Burton US Open -Estimated Attendance and Revenue Generation Total Attendance Total People Total People (Came for event)Gross Revenue Generation June 2, 2020 - Page 30 of 235 Accommodations June 2, 2020 - Page 31 of 235 Accommodations 26 INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1%9%3%1%3%5%1%5%1%1% 70% Burton US Open -Town Stayed In (All Accommodations) 2020 N = 155 0% 20% 40% 60% 80% 100% Paid Lodging Friends/Family 2nd Home Timeshare Primary Residence Other (Please specify) Day Trip 28% 14%13% 3% 36% 1%5% Burton US Open -Accommodations 2020 N = 282 June 2, 2020 - Page 32 of 235 Accommodations 27INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 - 2 3 - 5 6 - 7 8 - 10 11 - 14 15+ 10% 48% 24% 12% 4%3% Burton US Open -Nights Stayed Categories (All Accommodations) 2020 N = 147 Average nights stayed (all accommodations) -5.5 Average nights stayed (paid lodging in Vail) -5.3 June 2, 2020 - Page 33 of 235 Geographical Data June 2, 2020 - Page 34 of 235 Geographics 29INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 0% 20% 40% 60% 80% 100% Colorado California New Jersey New York Florida 53% 4%4%4%3% Burton US Open -Top Five States of Origin 2020 N = 282 0% 20% 40% 60% 80% 100% Local In-State Day In-State Overnight Out-of-State International 36% 5% 15% 40% 4% Burton US Open -Market Segment 2020 N = 282 June 2, 2020 - Page 35 of 235 Demographical Data June 2, 2020 - Page 36 of 235 Demographics 31INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 11% attended with “Family (including children)”. 84% of those attending with their family (including children), were with children under 18 years of age. The average family (including children) attended with 1.9 children. The average age of children under the age of 18 in attendance was 9.6 years of age. 0% 20% 40% 60% 80% 100% Self Spouse or significant other Friends Only Friends and Family Family (including children) Family (not including children) Group 23%17% 26% 10%11%7%5% Burton US Open -With Whom Attended 2020 N = 282 0% 20% 40% 60% 80% 100% Yes No 84% 16% Burton US Open -Attended with Children < 18 (Asked only of those who attended with 'Family (including children)') 2020 N = 32 June 2, 2020 - Page 37 of 235 Demographics 32INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 0% 20% 40% 60% 80% 100% Married w/ children living at home Married w/ children not living at home Married w/o children Single w/ children living at home Single w/ children not living at home Single w/o children 19%14%12%3%3% 50% Burton US Open -Family Status 2020 N = 280 0% 20% 40% 60% 80% 100% Own Rent 57% 43% Burton US Open -Own vs. Rent 2020 N = 279 June 2, 2020 - Page 38 of 235 Demographics 33INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 0% 20% 40% 60% 80% 100% Some High School High School Some College Associates Degree (2 year) Bachelor's Degree (4 Year) Post Graduate Degree 0%8%10%6% 56% 20% Burton US Open -Education Level 2020 N = 277 0% 20% 40% 60% 80% 100% 6%5%15%13%16%26%16% 3% Burton US Open -Income Categories 2020 N = 238 June 2, 2020 - Page 39 of 235 Demographics 34INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 0% 20% 40% 60% 80% 100% Male Female 59% 41% Burton US Open -Gender 2020 N = 282 0% 20% 40% 60% 80% 100% 18 - 20 21 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+ 2%7% 36% 19%17%13%6% Burton US Open -Age Categories (Does not include children < 18) 2020 N = 272 Average age of respondents -40.1 Average age of children < 18 -9.6 June 2, 2020 - Page 40 of 235 Favorite Activities June 2, 2020 - Page 41 of 235 Favorite Activities 36INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 49%47%46% 35%34%29%29%28%28%24%24%24%22%20%20%18%17%17%15%15%12%11%11%9%6%3% Burton US Open -Activity Participation (Multiple Response) 2020 June 2, 2020 - Page 42 of 235 Ski/Ride Activity & Ability 37INTERCEPT INSIGHT, LLC | PO Box 2078 Avon, CO 81620 | www.interceptinsight.com | 970.331.1086 0% 20% 40% 60% 80% 100% Yes No 37% 63% Burton US Open -Ski/Rode to Mountain Events 2020 N = 101 0% 20% 40% 60% 80% 100% Beginner Intermediate Advanced Expert 6% 23% 38%33% Burton US Open -Ski/Ride Ability 2020 N = 219 June 2, 2020 - Page 43 of 235 End of Report June 2, 2020 - Page 44 of 235 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: 2019 Audited Financial S tatements for the Town of Vail P RE S E NT E R(S ): K athleen Halloran, F inance Director and Michael J enkins, Mc Mahan and A ssociates AC T IO N RE Q UE S T E D O F C O UNC I L: T he 2019 audited financial statements are presented to Town Council for information only; No action requested. B AC K G RO UND: I n accordance with section 9.11 of the Vail Town Charter, an independent audit shall be made of all town accounts at least annually. T he audit shall be conducted by certified public accountants and made available for public inspection. The 2019 audit was conducted by Mc Mahan and A ssociates. AT TAC H ME N TS: Description P P T letter 2019 Financials June 2, 2020 - Page 45 of 235 2019 FINANCIAL STATEMENTS & AUDIT REPORT FINANCE | June 2, 2020 June 2, 2020 - Page 46 of 235 PRESENTERS Kathleen Halloran, C.P.A. Finance Director Michael N. Jenkins, C.A., C.P.A. Partner, McMahan & Associates, LLC Town of Vail | Finance | 6/2/2020 June 2, 2020 - Page 47 of 235 Town of Vail | Finance | 6/2/2020 2019 FINANCIAL STATEMENTS | Government Wide Statements Provide a broad overview similar to a private sector business, including capital assets and long-term debt on a full accrual basis STATEMENT OF NET POSITION Assets exceed liabilities by $320.9M $206.4M net investment in capital assets $2.3M TABOR reserves; $1.4M restricted; $110.8M unrestricted STATEMENT OF ACTIVITIES $20.6M increase in net position $86.8M revenue; $19.9 program specific and $66.9M general revenue $66.2M expenses June 2, 2020 - Page 48 of 235 Town of Vail | Finance | 6/2/2020 2019 FINANCIAL STATEMENTS | Fund Statements Record financial transactions for specific activities or governmental functions; focus on near-term inflows and outflows and spendable balances GOVERNMENTAL FUNDS General Fund Capital Projects Fund Real Estate Transfer Tax Fund Marketing Fund Vail Local Marketing District Vail Reinvestment Authority PROPRIETARY FUNDS Internal Services – Heavy Equipment Fund Health Insurance Fund Enterprise Funds – Dispatch Services Fund Timber Ridge Fund June 2, 2020 - Page 49 of 235 Town of Vail | Finance | 6/2/2020 2019 FINANCIAL STATEMENTS | Fund Statements Final Budget 2019 Actual Better (Worse)% Revenue $41.1M $43.7M $2.6M 6.3% Expenditures (42.8)M (41.2)M 1.6 M 3.7% Net Change $(1.7)M $2.5M $4.2M N/A Revenue –Increase mainly due to parking ($1.3M), investment income ($666K) and lift tax ($316K) Expenditures –Savings in general operations $1.0M; salaries due to vacancies $423K; planning projects delayed $100K Fund Balance -$36.3 million compared with target $15.3 million or 35% of revenue General Fund Favorable to Budget by $4.2M June 2, 2020 - Page 50 of 235 Town of Vail | Finance | 6/2/2020 2019 FINANCIAL STATEMENTS | Fund Statements Capital Projects Fund Managed $19.6M in Projects Final Budget 2019 Actual Better (Worse) Revenue $18.0M $20.1M $2.1M Expenditures (41.2)M (19.6)M 21.6M Transfers and Financing 3.85M 3.80M (0.05)M Net Change $(19.4)M $4.3M $23.7M Revenue –Variance due to increased sales tax Expenditures –Variance for approved projects not yet completed and carried over to 2020 $19.4M; $2.2M in project savings during 2019 Transfers and Financing –VRA funding of Lionshead projects Fund Balance -$39.2M June 2, 2020 - Page 51 of 235 Town of Vail | Finance | 6/2/2020 2019 FINANCIAL STATEMENTS | Fund Statements RETT Fund Managed $3.5M in Projects; $2.8M Ops Final Budget 2019 Actual Better (Worse) Revenue $8.7M $8.2M $(0.5)M Expenditures (17.9)M (6.5)M 11.4M Transfers and Financing 0.02M 0.02M 0.0M Net Change $(9.2)M $1.7M $10.9M Revenue –Real estate transfer tax was up 11% from budget, or $700K Expenditures –Variance due to approved projects not yet completed and carried over to 2020 $6.7M; Project savings of 4.7M Fund Balance -$14.7M June 2, 2020 - Page 52 of 235 VAIL REINVESTMENT AUTHORITY TAX INCREMENT FINANCING $11.9M issued in 2010 for Lionshead improvements $7.7 M outstanding at year end Repayment from incremental property tax revenue from Lionsheadredevelopment Proposed refunding of the bonds in July 2020 will save up to $700K Town of Vail | Finance | 6/2/2020 2019 FINANCIAL STATEMENTS | Debt Financing June 2, 2020 - Page 53 of 235 Town of Vail | Finance | 6/2/2020 2019 FINANCIAL STATEMENTS | Fund Statements 10-Year History and 5-Year Projection of Reserves $72.4 $72.9 $69.2 $55.5 $64.9 $80.1 $82.4 $72.5 $93.7 $100.8 $77.1 $64.5 $53.3 $40.6 $41.3 - 20 40 60 80 100 120 MillionsAll Other RETT Fund Capital Projects Fund General Fund Reserve Min June 2, 2020 - Page 54 of 235 Town of Vail | Finance | 6/2/2020 | Finance | 4/19/2016 2019 FINANCIAL STATEMENTS June 2, 2020 - Page 55 of 235 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 M & A To the Mayor and Members of Town Council Town of Vail, Colorado We have audited the financial statements of Town of Vail, Colorado (the “Town”) as of and for the year ended December 31, 2019. Professional standards require that we provide you with the following information related to our audit. Qualitative Aspects of Accounting Practices The Town’s management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Town are described in Note I to the 2019 audited financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year. We noted no transactions entered into during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements are: Estimating allowance for uncollectible receivables ($1,000 at December 31, 2019), based on management’s experience with customers and other business partners, together with actual collections history since year-end. Estimating useful lives of fixed assets, based on industry standards and perceived use of asset categories. We evaluated the key factors and assumptions used to develop these assumptions and found them to be reasonable in relation to the financial statements taken as a whole. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements prior to finalization of the 2019 financial statements. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting,or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. W e are pleased to report that no such disagreements arose during the course of our audit. June 2, 2020 - Page 56 of 235 To the Mayor and Members of Town Council Town of Vail, Colorado Page 2 Management Representations As is required in all audit engagements, we have requested certain representations from management that were included in the management representation letter. Recommendations In the course of our audit, we noted the following opportunities for improvement of the Town’s internal control and day-to-day operations. Segregation of Duties The objectives of internal control are to provide reasonable, but not absolute assurance, that assets are safeguarded and financial statements are reliable. Segregation of accounting duties is an essential element of effective internal controls involving the separation of custody of assets from related recording and monitoring of transactions. To reduce the possibility of errors or fraud going undetected in the normal course of business, we encourage the Town to limit, to the extent possible, performance of incompatible duties by individuals in the Town's accounting functions. We noted that the Accounting Manager had access to all aspects of the accounts payable cycle, including access to checks, signing authority, access to the accounting system, and reconciliation of the bank statements. We recommend that the Accounting Manager does not have check signing authority in order to compensate for the lack in segregation of duties. Management has already implemented this change and no further action is necessary. New Financial Reporting Standards Financial reporting standards for the Town are promulgated by the Governmental Accounting Standards Board (“GASB”). During 2017, GASB issued Statement 87, Leases (“GASB 87”), which will require that governments report certain lease assets and liabilities for leases that previously were classified as operating leases, and recognize inflows or outflows of resources based on the payment provisions of each such contract. GASB has also issued Statement 84, Fiduciary Activities (“GASB 87”), which will require that governments disaggregate certain additions in the Statement of Changes in Fiduciary Net Position. In May 2020, GASB issued Statement 95 in response to delays resulting from the COVID-19 pandemic, which postponed the implementation of GASB 87 to fiscal periods beginning after June 15, 2021 and GASB 84 to periods beginning after December 15, 2019. We will work with Town staff in the interim to assist with the necessary calculations and presentation considerations. This report is intended solely for the information and use of the Town Council of the Town of Vail, Colorado, its management, and others within the organization and is not intended to be, and should not be, used by anyone other than those specified parties. Sincerely, McMahan and Associates, L.L.C. May 27, 2020 June 2, 2020 - Page 57 of 235 Financial Statements December 31, 2019 June 2, 2020 - Page 58 of 235 Town of Vail, Colorado Financial Statements December 31, 2019 Table of Contents Page Independent Auditor’s Report A1 – A3 Management’s Discussion and Analysis B1 – B7 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position C1 Statement of Activities C2 Fund Financial Statements: Governmental Funds: Balance Sheet C3 Statement of Revenues, Expenditures and Changes in Fund Balances C4 Proprietary Funds: Statement of Net Position C5 Statement of Revenues, Expenses and Changes in 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 – D28 Required Supplementary Information: General Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual E1 – E2 Special Revenue Funds: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget (GAAP Basis) and Actual: Real Estate Transfer Tax Fund E3 Vail Marketing Fund E4 Vail Local Marketing District E5 Vail Reinvestment Authority E6 Supplementary Information: Capital Projects Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances - F1 Budget (GAAP Basis) and Actual Enterprise Funds: Schedule of Revenues, Expenses and Changes in Net Position – Budget (Non-GAAP Basis) and Actual - With Reconciliation to GAAP Basis – Timber Ridge Fund F2 Dispatch Services Fund F3 June 2, 2020 - Page 59 of 235 Town of Vail, Colorado Financial Statements December 31, 2019 Table of Contents (Continued) Page Supplementary Information (continued): Internal Service Funds: Schedule of Revenues, Expenses, and Changes in Net Position – Budget (Non-GAAP Basis) and Actual - With Reconciliation to GAAP Basis – Heavy Equipment Fund F4 Schedule of Revenues, Expenses and Changes in Net Position – Budget (GAAP Basis) and Actual - Health Insurance Fund F5 Combining Statement of Net Position F6 Combining Statement of Revenues, Expenses and Changes in Net Position F7 Combining Statement of Cash Flows F8 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 within Vail Reinvestment Authority Plan Area G1 Table IV – Largest Taxpayers in the Authority G2 Table V – 2019 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 – 2019 Budget Summary and Actual Comparison: Vail Reinvestment Authority G4 Table VIII – Outstanding Revenue Obligations G4 Schedules and Single Audit Reports: Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Audit Standards H1 – H2 Independent Auditor’s Report on Compliance for each Major Program and on Internal Control over Compliance Required by the Uniform Guidance H3 – H4 Schedule of Findings and Questioned Costs H5 Schedule of Prior Audit Findings and Questioned Costs H6 Schedule of Expenditures of Federal Awards H7 June 2, 2020 - Page 60 of 235 INDEPENDENT AUDITOR’S REPORT June 2, 2020 - Page 61 of 235 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 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, 2019, 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 We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards. 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. 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, 2019, 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. June 2, 2020 - Page 62 of 235 INDEPENDENT AUDITOR’S REPORT To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado A2 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. This required supplementary 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 is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information in section F 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. Additionally, the Schedule of Expenditures of Federal Awards included in the Single Audit section is presented for the purpose of additional analysis, as required by Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), and are not a required part of the Town’s 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 statement or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly stated in all material respects in relation to the financial statements as a whole. June 2, 2020 - Page 63 of 235 INDEPENDENT AUDITOR’S REPORT To the Mayor and Members of Town Council Town of Vail, Colorado Vail, Colorado A3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 27, 2020 on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance with provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control over financial reporting and compliance. McMahan and Associates, L.L.C. Avon, Colorado May 27, 2020 June 2, 2020 - Page 64 of 235 MANAGEMENT’S DISCUSSION AND ANALYSIS June 2, 2020 - Page 65 of 235 B1 Town of Vail, Colorado Management’s Discussion and Analysis December 31, 2019 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, 2019. 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 2019 fiscal year by $313,272,313 (net position). Of this amount, $2,347,300 is restricted for TABOR emergency reserves and $1,382,116 is restricted by enabling legislation. • The Town’s total net position increased in the 2019 fiscal year by $20,615,475 which was attributable to increase from governmental activities of $19,564,155 and an increase of $1,051,320 from business-type activities. • At December 31, 2019, the fund balance of the General Fund was $36,306,665. Of that amount, $2,235,300 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, culture and recreation, and economic development. The business-type activities of the Town consist of housing conducted through Timber Ridge Apartments, and dispatch services, conducted through Vail Public Safety Communications (both enterprise funds 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) and a legally separate urban renewal authority (Vail Reinvestment Authority). 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. June 2, 2020 - Page 66 of 235 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, and Vail Marketing 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 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 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 D28 of this report. June 2, 2020 - Page 67 of 235 B3 Overview of the Financial Statements (continued) Government-wide Financial Analysis: As previously mentioned, the government-wide financial statements are designed to provide readers with a broad overview and long-term analysis of the Town’s finances, in a manner similar to a private-sector business. Net position may serve over time as a useful indicator of a government’s financial position. In the case of the Town, governmental assets exceeded liabilities by $313,272,313 at the close of the most recent fiscal year. Approximately 67% of the Town’s net position 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 2019 and 2018. 2018 2019 (Restated)2019 2018 2019 2018 Current and other assets $ 124,781,876 $ 117,358,973 $ (2,572,791) $ (3,881,728) $ 122,209,085 $ 113,477,245 Capital assets(net) 210,383,094 200,810,975 10,530,086 10,990,976 220,913,180 211,801,951 Total assets 335,164,970 318,169,948 7,957,295 7,109,248 343,122,265 325,279,196 Long-term liabilities outstanding 8,216,999 8,799,267 62,975 51,771 8,279,974 8,851,038 Other liabilities 7,995,461 10,398,532 249,675 464,152 8,245,136 10,862,684 Total liabilities 16,212,460 19,197,799 312,650 515,923 16,525,110 19,713,722 Deferred inflows 5,680,199 5,089,011 - - 5,680,199 5,089,011 Net Position: Invested in capital assets, net of related debt 202,668,094 191,797,283 3,685,299 3,773,485 206,353,393 195,570,768 Restricted 3,729,416 4,029,837 95,000 95,000 3,824,416 4,124,837 Unrestricted 106,874,803 97,881,038 3,864,346 2,724,840 110,739,149 100,605,878 Total net position $ 313,272,313 $ 293,708,158 $ 7,644,645 $ 6,593,325 $ 320,916,958 $ 300,301,483 Governmental Activities Business-type Activities Total The Town’s current assets from governmental activities and capital assets increased mainly due to an increase in cash and investments and an investment in capital assets. Major construction projects during 2019 included the reconstruction of Bridge Road Bridge, the construction of an offsite secondary data center at the West Vail Fire Station, a weather shelter at Ford Park fields, continued Gore Creek water quality improvements, completion of improvements at the East Vail Interchange, major repairs and improvements to the fountain at Slifer Square Plaza and the enhancement of parking space management system at the new Red Sandstone parking structure. The Town’s long-term liabilities from governmental activities decreased due to scheduled principal payments on Vail Reinvestment Authority's outstanding debt. The Authority’s 2010A retired during 2018. 2010B Tax Increment Bonds will be retired in 2030, respectively. The Timber Ridge Enterprise Fund notes payable to the Town mature in 2032 and 2033. They are reported as “internal balances” in the government-wide presentation on page C1. Details of the promissory notes due from the Timber Ridge Enterprise Fund are found in note IV.F of this report. June 2, 2020 - Page 68 of 235 B4 Overview of the Financial Statements (continued) The chart below provides financial information from the Town’s Statement of Activities for the years 2019 and 2018. Governmental Activities: Governmental activities increased the Town’s net position by $19,564,155. The following items represent other significant governmental activities during 2019: • An increase in sales tax collections of 4.7% or $1,313,437 was attributable to increased winter visitation from strong winter conditions in early 2019 through the end of the ski season in April. Heavy snowfall in December also contributed to increased sales tax growth while the summer season (May through October) leveled off as compared to prior years. • Lodging tax was also impacted by strong winter conditions and increased $222,449 or 6.4%. • Construction use tax in 2019 decreased by 33%, or $1,221,203 mainly due to the expansion of Vail Health that increased 2018 collections. • Lift tax increased 4.7% or $237,889 over prior year due to increased skier visitation • Parking revenue was also positively impacted by the snowfall in 2019 with revenues up 4.8%%, or $304,860 over prior year. • County sales tax collections increased $111,608 or 12% over the prior year • Long-term liabilities were reduced by $555,000 through principal repayments. • Investment earnings increased by 1.3M, nearly double the prior year. 2019 2018 2019 2018 2019 2018 Revenue: Program Revenue Charges for services 11,989,923$ 12,077,438$ 3,760,862$ 3,544,349$ 15,750,785$ 15,621,787$ Operating grants 2,101,474 9,950,445 816,452 1,195,187 2,917,926 11,145,632 Capital grants 1,237,015 870,712 - - 1,237,015 870,712 General Revenue Property and ownership tax 11,200,165 10,798,164 - - 11,200,165 10,798,164 Sales and lodging tax 36,752,908 36,317,638 - - 36,752,908 36,317,638 Other taxes 13,867,113 13,942,069 - - 13,867,113 13,942,069 Interest and other revenue 5,035,965 2,357,455 93,204 47,592 5,129,169 2,405,047 Total Revenue 82,184,563 86,313,921 4,670,518 4,787,128 86,855,081 91,101,049 Expenses: General government 9,149,615 7,883,434 - - 9,149,615 7,883,434 Public safety 12,306,909 11,825,254 2,664,551 2,561,192 14,971,460 14,386,446 Public works and transportation 22,714,499 21,947,104 - - 22,714,499 21,947,104 Culture and recreation 9,668,125 10,547,405 - - 9,668,125 10,547,405 Economic development 8,281,002 7,588,736 - - 8,281,002 7,588,736 Housing - - 954,647 982,222 954,647 982,222 Interest 500,258 526,383 - - 500,258 526,383 Total Expenses 62,620,408 60,318,316 3,619,198 3,543,414 66,239,606 63,861,730 Change in Net Position 19,564,155 25,995,605 1,051,320 1,243,714 20,615,475 27,239,319 Net Position January 1 293,253,516 267,257,911 6,593,327 5,349,613 299,846,843 272,607,524 Restatement 454,642 - - - 454,642 - Net Position January 1 (Restated)293,708,158 261,102,264 6,593,327 5,349,613 300,301,485 266,451,877 Net Position December 31 313,272,313$ 293,253,516$ 7,644,647$ 6,593,327$ 320,916,960$ 299,846,843$ Town of Vail's Changes in Net Position Total Governmental Activities Business-type Activities June 2, 2020 - Page 69 of 235 B5 Overview of the Financial Statements (continued) Business-type Activities: Business-type activities are comprised of Timber Ridge Enterprise Fund, a fund providing affordable housing to people working in Vail, and Vail Public Safety Communications Center, an enterprise fund providing dispatch services to emergency service agencies throughout Eagle County. Financial Analysis of the Town’s Funds As previously mentioned, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds: The focus of the Town’s governmental funds is to provide information on near- term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements. In particular, fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $105,409,660 an increase of $7,692,183 from the prior year’s ending fund balances primarily due to increased sales tax collections and parking sales combined with a reduction in large construction projects in the Capital Project and Real Estate Transfer Tax funds as compared to the prior year. The following details ending fund balances for the past five years: Fund 2015 2016 2017 2018 2019 General Fund $23,622,509 $27,300,260 $29,289,331 $33,888,140 $36,306,665 Capital Projects Fund 40,542,297 44,836,870 32,761,887 46,845,813 50,099,177 Real Estate Transfer Tax 17,797,519 11,256,285 11,142,914 12,957,553 14,684,013 Vail Marketing Fund 203,263 259,452 323,606 303,241 386,835 Vail Local Marketing District 1,552,198 1,590,734 1,260,297 1,270,453 1,350,108 Vail Reinvestment Authority 5,443,901 4,312,149 3,064,772 2,259,307 2,582,892 Total $75,823,574 $89,161,687 $89,555,750 $97,524,507 $105,409,690 The Town’s reserves continue to be strong allowing for the cash funding on many recent capital projects. During 2015 the General Fund continued to see large increases in reserves of $3.9M due to increases in sales tax collections, construction activity, parking, and lift tax. In 2016, the General Fund balance increased by $3.7M from prior year in part due to increases in sales tax, parking revenue, property taxes, and lift tax. Expenditure savings of $2.4M also contributed to the increase in reserves. In 2017, the General Fund reserves increased by $2.0M primarily due to expenditures savings from staffing vacancies and department operational savings while overall revenue collections remained flat. During 2018, General Fund reserves increased by $4.6M primarily due an increase in sales tax collections, revenues related to construction activity, as well as expenditure savings due to staffing vacancies and department operations savings. During 2019, General Fund reserves increased by $2.4M. This was primarily due to an increase in sales tax collections, parking sales, lift tax collections as well as expenditures savings due to vacancies. Overall sales tax collections of $29.5M were up 4.7%. 2019 started off strong with double digit growth in January of 13.4% as compared to 2018. Sales tax continued to see increases through the end of the 2018-2019 winter season with February up 8.3% and a combined March and April up 5.2% from prior year. These increases were partially offset with a leveling off of summer with May and June experiencing declines of 8.0% and 2.6%, respectively. However, October rebounded with a 10.0% increase from prior year. Moving into the 2019-2020 winter season a continued emphasis on events contributed to added vitality in December with a 5.0% increase from 2018. Strong winter conditions also contributed to record parking sales of $6.7M and lift tax collections of $5.3M, up 4.8% and 4.7% from prior year. Reserve levels in the Capital Projects Fund and Real Estate Transfer Tax Funds normally fluctuate due to the timing and phases of major projects. In 2019 the Capital Projects Fund increased $3.3M mainly due to increased sales tax collections ($672K) and $1.6M from the sale of property. Revenues were offset by capital project expenditures totaling $20.3M. Reserves in the Real Estate Transfer Fund also increased by June 2, 2020 - Page 70 of 235 B6 Financial Analysis of the Town’s Funds (continued) $1.7M. RETT collections totaled $7.2M and were offset by $3.5M in cash funded projects and operating expenditures of $3.0M. 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 generated $5.8M in 2019, providing a funding mechanism for capital improvements within the district by covering annual debt service payments of $555K relating to $11.9M in bonds issued in 2010. The bonds have funded several projects including a new Transit and Welcome Center, a remodel of the Vail Public Library, and improvements to both the east and west portals into Lionshead Village. Other capital projects within the district have been funded from annual tax increment collections such as Sun Bird Park, reconstruction of the Lionshead parking entry, Zeke M. Pierce Skate Park, the Sandstone Underpass. The VRA also contributed to the Red Sandstone parking structure. The bonds are scheduled to be paid off by 2030, when the district will expire. Over the last five years the town’s strong reserve levels have enabled Town Council to cash-fund all capital projects. While budget basis reserves at the end of 2019 were at $95.8M, they are expected to decrease to $83.7M in 2020 with current ongoing projects. Proprietary Funds: The Town’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. In January, 2014 the Town added the Timber Ridge Enterprise Fund to reflect the transfer of all assets and liabilities of the Timber Ridge Affordable Housing Corporation. Operations of the Timber Ridge housing project are now reported within this enterprise fund of the town. In September, 2014 the Corporation was administratively dissolved. Capital Assets: The Town’s government-wide capital assets, net of accumulated depreciation, increased by $9,572,119 in 2019. Capital additions included an enhanced parking space management system at the Red Sandstone Parking garage, completion of improvements at the East Vail Interchange, major repairs and improvements to the fountain at Slifer Square Plaza the reconstruction of Bridge Rd. bridge, a weather shelter at Ford Park, and major structural repairs at both the Vail Village and Lionshead parking structures. June 2, 2020 - Page 71 of 235 B7 Financial Analysis of the Town’s Funds (continued) Capital Assets (continued): The town also invested $2.5M in the town’s Vail InDeed program and an addition $4.7M in other country-wide deed restricted housing projects. These projects combined totaled 114 new deed restricted units for the community. Long-term Debt: As of the end of the current fiscal year, the Vail Reinvestment Authority had $7,715,000 of tax increment bonds outstanding, of which $575,000 of bond principal is due within one year. Additional information regarding the Authority's debt can be found in the Notes to the Financial Statements in footnote IV.G of this report. Sales Tax: During 2019, 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. The Town experienced a 9% growth in sales tax when compared to the prior year. Next Year’s Budget and Rates: The Town’s General Fund balance at the end of the current fiscal year was $36,306,665, representing 83% of annual revenue compared to Town Council’s directive of a minimum of 35%. 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. 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, Colorado 81657. June 2, 2020 - Page 72 of 235 GOVERNMENT-WIDE FINANCIAL STATEMENTS June 2, 2020 - Page 73 of 235 Town of Vail, Colorado Statement of Net Position December 31, 2019 Governmental Business-type Activities Activities Total Assets: Equity in pooled cash and investments 94,346,090 1,896,648 96,242,738 Unrestricted cash and investments 6,084,753 2,066,522 8,151,275 Cash - Restricted 1,781,779 90,084 1,871,863 Receivables (net of allowance for uncollectible accounts): Property taxes assessed 5,680,199 - 5,680,199 Other taxes 6,652,234 - 6,652,234 Other governments 288,614 - 288,614 Other 608,904 304,008 912,912 Inventory 290,686 - 290,686 Prepaid expenses 317,472 212 317,684 Interest receivable 36,540 - 36,540 Internal balances 7,744,787 (7,744,787) - Rent receivable - 814,522 814,522 Loans receivable: Collectible in more than one year 949,818 - 949,818 Capital assets not being depreciated 62,275,474 4,399,500 66,674,974 Capital assets being depreciated, net of accumulated depreciation 148,107,620 6,130,586 154,238,206 Total Assets 335,164,970 7,957,295 343,122,265 Liabilities: Accounts payable 3,017,361 64,290 3,081,651 Due to other governments 182,610 - 182,610 Retainage payable 339,984 - 339,984 Accrued salaries and wages 807,049 31,477 838,526 Interest payable 40,113 36,530 76,643 Other unearned revenue 2,056,616 86 2,056,702 Deposits payable 518,632 90,302 608,934 Compensated absences: Due within one year 460,528 26,990 487,518 Due in more than one year 1,074,565 62,975 1,137,540 Bonds payable: Due within one year 575,000 - 575,000 Due in more than one year 7,140,000 - 7,140,000 Total Liabilities 16,212,458 312,650 16,525,108 Deferred Inflow of Resources: Unavailable property taxes 5,680,199 - 5,680,199 Total Deferred Inflow of Resources 5,680,199 - 5,680,199 Net Position: Net investment in capital assets 202,668,094 3,685,299 206,353,393 Restricted for: Emergencies 2,347,300 - 2,347,300 Other purposes 1,382,116 - 1,382,116 Unrestricted 106,874,803 3,959,346 110,834,149 Total Net Position 313,272,313 7,644,645 320,916,958 The accompanying notes are an integral part of these financial statements. C1 June 2, 2020 - Page 74 of 235 Town of Vail, ColoradoStatement of ActiviesFor the Year Ended December 31, 2019 Net (Expense) Revenue andProgram Revenues Changes in Net Position Operating Capital Charges for Grants and Grants and Governmental Business-typeExpenses Services Contributions Contributions Activities Activities TotalGovernmental Activities: General government 9,149,615 3,839,594 1,338,643 2,241 (3,969,137) (3,969,137) Public safety 12,306,909 259,408 - - (12,047,501) (12,047,501) Public work and transportation 22,714,499 7,281,233 501,985 1,069,898 (13,861,383) (13,861,383) Culture and recreation 9,668,125 268,539 260,846 - (9,138,740) (9,138,740) Economic development 8,281,002 341,149 - 164,876 (7,774,977) (7,774,977) Interest on long-term debt 500,258 - - - (500,258) (500,258) Total Governmental Activities62,620,408 11,989,923 2,101,474 1,237,015 (47,291,996) (47,291,996) Business-type Activities: Dispatch services 2,664,551 2,012,222 816,452 - 164,123 164,123 Housing (Timber Ridge) 954,647 1,748,640 - - 793,993 793,993 Total Business-type Activities3,619,198 3,760,862 816,452 - 958,116 958,116 Totals66,239,606 15,750,785 2,917,926 1,237,015 (47,291,996) 958,116 (46,333,880) General Revenues:Taxes: Sales and use taxes 33,041,170 - 33,041,170 Real estate transfer taxes 7,224,668 - 7,224,668 Lodging taxes 3,711,738 - 3,711,738 Property and specific ownership taxes 11,200,165 - 11,200,165 Ski area lift ticket admissions tax 5,341,369 - 5,341,369 Franchise taxes 1,238,740 - 1,238,740 Cigarette taxes 62,336 - 62,336 Investment earnings 2,280,211 52,056 2,332,267 Gain (loss) on disposal of capital assets 1,303,769 - 1,303,769 Miscellaneous 1,451,985 41,148 1,493,133 Total General Revenues and Transfers66,856,151 93,204 66,949,355 Change in Net Position19,564,155 1,051,320 20,615,475 Net Position - January 1 (Restated)293,708,158 6,593,325 300,301,483 Net Position - December 31313,272,313 7,644,645 320,916,958 The accompanying notes are an integral part of these financial statements.C2June 2, 2020 - Page 75 of 235 FUND FINANCIAL STATEMENTS June 2, 2020 - Page 76 of 235 Real Estate Vail Vail Local Vail Capital Total General Transfer Tax Marketing Marketing Reinvestment Projects Governmental Fund Fund Fund District Authority Fund Funds Assets: Equity in pooled cash and investments 30,708,824 14,929,870 633,974 - - 41,427,034 87,699,702 Cash and cash equivalents - Unrestricted 13,692 - - 864,642 5,206,419 - 6,084,753 Cash and cash equivalents - Restricted - - - - 1,295,608 - 1,295,608 Receivables, net of allowance for uncollectible accounts: Property taxes assessed 5,680,199 - - - - - 5,680,199 Other taxes 5,648,704 193,896 - 809,634 - - 6,652,234 Other governments 270,601 9,665 - - - 114,002 394,268 Other 429,470 11,720 4,600 - - 135,222 581,012 Due from other funds - - - - - 3,804,281 3,804,281 Loans receivable 949,818 - - - - 7,744,787 8,694,605 Prepaid expenses 172,071 8,485 - 82,077 - 54,339 316,972 Total Assets 43,873,379 15,153,636 638,574 1,756,353 6,502,027 53,279,665 121,203,634 Liabilities and Fund Equity: Liabilities: Accounts payable 443,800 222,917 178,835 406,245 114,853 1,164,204 2,530,854 Due to other governments 62,713 119,342 - - - 555 182,610 Due to other funds - - - - 3,804,282 - 3,804,282 Retainage payable - 8,623 - - - 331,361 339,984 Accrued payroll and related liabilities 680,767 - - - - - 680,767 Unearned revenue 180,603 118,741 72,904 - - 1,684,368 2,056,616 Deposits payable 518,632 - - - - - 518,632 Total Liabilities 1,886,515 469,623 251,739 406,245 3,919,135 3,180,488 10,113,745 Deferred Inflows of Resources: Property taxes 5,680,199 - - - - - 5,680,199 Total Deferred Inflows of Resources 5,680,199 - - - - - 5,680,199 Fund Balances: Non-spendable 1,121,889 8,485 - 82,077 - 7,799,126 9,011,577 Restricted 2,330,132 - - 112,000 1,287,284 - 3,729,416 Committed 10,857,069 14,675,528 386,835 1,156,031 - 37,074,624 64,150,087 Assigned - - - - 1,295,608 5,225,427 6,521,035 Unassigned 21,997,575 - - - - - 21,997,575 Total Fund Balances 36,306,665 14,684,013 386,835 1,350,108 2,582,892 50,099,177 105,409,690 Total Liabilities and Fund Balances 43,873,379 15,153,636 638,574 1,756,353 6,502,027 53,279,665 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. 205,146,027 Other long-term assets and unearned charges are not available for current period expenditures and, therefore, are not reported in the funds. 522,711 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. 11,537,794 Long-term liabilities, including bonds payable, interest payable, capital leases, and compensated absences within governmental activities are not due and payable in the current period and, therefore, are not reported in the funds. (9,343,909) Net Position of Governmental Activities 313,272,313 Town of Vail, Colorado Balance Sheet Governmental Funds December 31, 2019 The accompanying notes are an integral part of these financial statements. C3 June 2, 2020 - Page 77 of 235 Real Estate Vail Vail Local Vail Capital Total General Transfer Tax Marketing Marketing Reinvestment Projects Governmental Fund Fund Fund District Authority Fund Funds Revenues: Taxes 28,702,284 7,224,668 - 3,711,738 5,825,058 15,264,501 60,728,249 Permits and licenses 2,207,918 - 341,149 - - 461,556 3,010,623 Intergovernmental revenue 2,297,869 154,831 - - - 1,033,727 3,486,427 Charges for services 9,216,320 241,061 - - - 163,909 9,621,290 Investment income 866,059 298,861 1,392 2,631 3,793 970,269 2,143,005 Interest subsidy - - - - 164,876 - 164,876 Miscellaneous 377,097 308,806 - - - 327,213 1,013,116 Total Revenues 43,667,547 8,228,227 342,541 3,714,369 5,993,727 18,221,175 80,167,586 Expenditures: General government 8,774,094 - - - - - 8,774,094 Public safety 11,373,011 283,380 - - - - 11,656,391 Public works and transportation 16,143,921 3,486,942 - - - 19,574,164 39,205,027 Culture and recreation 1,362,391 2,773,559 - - - - 4,135,950 Economic development 1,023,836 - 2,801,735 3,634,714 809,429 - 8,269,714 Debt service: Principal - - - - 555,000 743,692 1,298,692 Interest - - - - 501,432 1,236 502,668 Total Expenditures 38,677,253 6,543,881 2,801,735 3,634,714 1,865,861 20,319,092 73,842,536 Excess (Deficiency) of Revenues Over Expenditures 4,990,294 1,684,346 (2,459,194) 79,655 4,127,866 (2,097,917) 6,325,050 Other Financing Sources (Uses): Sale of assets - - - - - 1,547,000 1,547,000 Transfers in - 24,114 2,542,788 - - 3,804,281 6,371,183 Transfers (out) (2,571,769) - - - (3,804,281) - (6,376,050) Total Other Financing Sources (Uses)(2,571,769) 24,114 2,542,788 - (3,804,281) 5,351,281 1,542,133 Net Change in Fund Balances 2,418,525 1,708,460 83,594 79,655 323,585 3,253,364 7,867,183 Fund Balances - January 1 (Restated)33,888,140 12,975,553 303,241 1,270,453 2,259,307 46,845,813 97,542,507 Fund Balances - December 31 36,306,665 14,684,013 386,835 1,350,108 2,582,892 50,099,177 105,409,690 Net Change in Fund Balances of Governmental Funds 7,867,183 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.9,603,986 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.922,046 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.1,298,691 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. (57,716) 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. (70,035) Change in Net Position of Governmental Activities 19,564,155 Town of Vail, Colorado Statement of Revenues, Expenditures Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2019 The accompanying notes are in integral part of these financial statements. C4 June 2, 2020 - Page 78 of 235 Enterprise Fund - Governmental Dispatch Activities - Enterprise Fund - Services Internal Timber Ridge Fund TOTAL Service Funds Assets: Current Assets: Equity in pooled cash and investments - 1,896,648 1,896,648 6,646,388 Cash and cash equivalents - Unrestricted 2,066,522 - 2,066,522 - Accounts receivable, net of allowance for uncollectibles 1,192 302,816 304,008 27,892 Inventory - - - 290,686 Prepaid expenses 212 - 212 500 Total Current Assets 2,067,926 2,199,464 4,267,390 6,965,466 Non-current Assets: Cash and cash equivalents - Restricted 90,084 - 90,084 - Rent receivable 814,522 - 814,522 - Property, plant, and equipment, net of accumulated depreciation 9,664,862 865,224 10,530,086 5,237,064 Total Non-current Assets 10,569,468 865,224 11,434,692 5,237,064 Total Assets 12,637,394 3,064,688 15,702,082 12,202,530 Liabilities: Current Liabilities: Accounts payable 51,828 12,462 64,290 592,157 Deposits payable 90,302 - 90,302 - Unearned revenue 86 - 86 - Accrued interest payable 36,530 - 36,530 - Accrued salaries and wages - 31,477 31,477 20,282 Current portion of compensated absences - 26,990 26,990 15,689 Total Current Liabilities 178,746 70,929 249,675 628,128 Non-current Liabilities: Notes payable 7,744,787 - 7,744,787 - Compensated absences, net of current portion - 62,975 62,975 36,608 Total Non-current Liabilities 7,744,787 62,975 7,807,762 36,608 Total Liabilities 7,923,533 133,904 8,057,437 664,736 Net Position: Net investment in capital assets 2,820,075 865,224 3,685,299 5,237,064 Unrestricted 1,893,786 2,065,560 3,959,346 6,300,730 Total Net Position 4,713,861 2,930,784 7,644,645 11,537,794 Town of Vail, Colorado Proprietary Funds Statement of Net Position December 31, 2019 Business-type Activities The accompanying notes are an integral part of these financial statements. C5 June 2, 2020 - Page 79 of 235 Enterprise Fund - Governmental Dispatch Activities - Enterprise Fund - Services Internal Timber Ridge Fund TOTAL Service Funds Operating Revenues: Charges for services - Internal - 669,590 669,590 7,752,594 Charges for services - External - 1,342,632 1,342,632 882,844 Rent 1,593,491 - 1,593,491 - Ground lease 155,149 - 155,149 - Insurance reimbursements - - - 37,993 Other 25,398 - 25,398 16,396 Total Operating Revenues 1,774,038 2,012,222 3,786,260 8,689,827 Operating Expenses: Operations 490,895 2,536,773 3,027,668 2,605,145 Health claims and premiums - - - 4,698,045 Depreciation 347,114 127,778 474,892 794,078 Total Operating Expenses 838,009 2,664,551 3,502,560 8,097,268 Operating Income (Loss)936,029 (652,329) 283,700 592,559 Non-Operating Revenues (Expenses): Intergovernmental revenues - 816,452 816,452 - Gain (loss) on disposal of assets - - - 79,484 Investment income 19,790 32,266 52,056 139,525 Interest expense (116,638) - (116,638) - Total Non-Operating Revenues (Expenses)(96,848) 848,718 751,870 219,009 Income (Loss) Before Transfers and Capital Contributions 839,181 196,389 1,035,570 811,568 Transfers, Net - 15,750 15,750 4,867 Capital Contributions, Net - - - 105,611 Change in Net Position 839,181 212,139 1,051,320 922,046 Net Position - January 1 3,874,680 2,718,645 6,593,325 10,615,748 Net Position - December 31 4,713,861 2,930,784 7,644,645 11,537,794 Town of Vail, Colorado Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Position For the Year Ended December 31, 2019 Business-type Activities The accompanying notes are an integral part of these financial statements. C6 June 2, 2020 - Page 80 of 235 Enterprise Fund - Governmental Dispatch Activities - Enterprise Fund - Services Internal Timber Ridge Fund TOTAL Service Funds Cash Flows From Operating Activities: Cash received from other funds - 685,340 685,340 7,752,594 Cash received from tenants for rent 1,593,143 - 1,593,143 - Cash received from (refunded to) tenants for security deposits, net 6,755 - 6,755 - Other cash receipts 32,914 1,039,895 1,072,809 995,442 Cash paid for goods and services (480,987) (678,228) (1,159,215) (6,233,921) Cash paid to employees - (2,075,754) (2,075,754) (1,111,789) Net Cash Provided (Used) by Operating Activities 1,151,825 (1,028,748) 123,078 1,402,326 Cash Flows From Non-Capital Financing Activities: Transfer from (to) other funds (372,704) - (372,704) 4,867 Cash received from operating grants - 816,452 816,452 - Net Cash Provided by Non-Capital Financing Activities (372,704) 816,452 443,748 4,867 Cash Flows From Capital and Related Financing Activities: Cash received on disposal of fixed assets - - - 100,467 Interest paid (118,967) - (118,967) - Acquisition and construction of capital assets (14,002) - (14,002) (677,581) Net Cash (Used) by Capital and Related Financing Activities (132,969) - (132,969) (577,114) Cash Flows From Investing Activities: Interest on investments 19,790 32,266 52,056 139,525 Net Cash Provided by Investing Activities 19,790 32,266 52,056 139,525 Net Increase (Decrease) in Cash and Cash Equivalents 665,942 (180,030) 485,913 969,604 Cash and Cash Equivalents - January 1 1,490,664 2,076,677 3,567,341 5,676,784 Cash and Cash Equivalents - December 31 2,156,606 1,896,648 4,053,254 6,646,388 Cash and Cash Equivalents at December 31 is Comprised of: Equity in pooled cash and investments - 1,896,648 1,896,648 6,646,388 Cash and cash equivalents - Unrestricted 2,066,522 - 2,066,522 - Cash and cash equivalents - Restricted 90,084 - 90,084 - Total - Cash and Cash Equivalents 2,156,606 1,896,648 4,053,254 6,646,388 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income/(Loss)936,029 (636,579) 299,450 592,559 Adjustments: Depreciation 347,114 127,778 474,892 794,078 (Increase) decrease in accounts receivable 7,516 (302,738) (295,222) 58,209 (Increase) decrease in rent receivable (155,149) - (155,149) - (Increase) decrease in inventory - - - (38,458) (Increase) decrease in prepaid expenses 50 - 50 - Increase (decrease) in accounts payable 9,858 (228,072) (218,214) (15,055) Increase (decrease) in tenant security deposits 6,755 - 6,755 - Increase (decrease) in prepaid rent (348) - (348) - Increases (decreases) in accrued wages and benefits - 10,863 10,863 10,993 Total Adjustments 215,796 (392,169) (176,373) 809,767 Net Cash Provided (Used) by Operating Activities 1,151,825 (1,028,748) 123,078 1,402,326 Schedule of Non-cash Investing, Capital and Financing Activities: Assets contributed by Capital Projects Fund - - - 105,611 Town of Vail, Colorado Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2019 Business-type Activities The accompanying notes are an integral part of these financial statements. C7 June 2, 2020 - Page 81 of 235 Deferred Pension Compensation Trust Plan Assets: Cash and investments - Restricted 77,884,064 19,839,768 Loans to participants 510,455 - Total Assets 78,394,519 19,839,768 Net Position: Held in trust for pension benefits and other purposes 78,394,519 19,839,768 Total Net Position 78,394,519 19,839,768 Town of Vail, Colorado Fiduciary Funds Statement of Fiduciary Net Position December 31, 2019 The accompanying notes are an integral part of these financial statements. C8 June 2, 2020 - Page 82 of 235 Deferred Pension Compensation Trust Plan Additions: Contributions 3,954,921 1,399,797 Investment income (loss) 12,753,516 3,134,922 Total Additions 16,708,437 4,534,719 Deductions: Professional fees 92,459 19,476 Benefits paid 4,800,296 690,423 Total Deductions 4,892,755 709,899 Change in Net Position 11,815,682 3,824,820 Net Position - January 1 66,578,837 16,014,948 Net Position - December 31 78,394,519 19,839,768 Town of Vail, Colorado Fiduciary Funds Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2019 The accompanying notes are an integral part of these financial statements C9 June 2, 2020 - Page 83 of 235 NOTES TO THE FINANCIAL STATEMENTS June 2, 2020 - Page 84 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 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 two blended component units reported in the Town’s financial statements: Vail Local Marketing District (the “District”), and Vail Reinvestment Authority (the “Authority”). The financial statements of these entities can be obtained from the Town’s administrative offices. A third blended component unit, 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. 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. June 2, 2020 - Page 85 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D2 I. Summary of Significant Accounting Policies (continued) A. Reporting Entity (continued) 3. Town of Vail General Improvement District No. 1 On October 3, 2006, the Town Council accepted a petition requesting formation of Town of Vail General Improvement District No. 1. The District is a public, or quasi-municipal, subdivision of the state of Colorado and a body corporate with the powers set forth in Part 6, Article 25, Title 31 of the Colorado Revised Statutes. The Town Council is the ex-officio Board of Directors of the District. Services provided by the District include (a) programming, regulating, and generally administering public functions to be conducted on the public plaza which will be constructed as part of the Solaris redevelopment project and (b) maintaining the plaza to the extent that the Solaris Metropolitan District fails to do so. At a special election on November 7, 2006, the eligible electors of the District authorized imposition of a mill levy of not more than fifteen mills in any year for the purpose of funding the administration, operation, and maintenance of the District’s facilities should the Solaris Metropolitan District fail to do so. As of December 31, 2019, the District had not begun operations or imposed a mill levy, resulting in no financial statements to be reported. B. Government-wide and Fund Financial Statements The Town’s basic financial statements include both government-wide (reporting the Town as a whole) and fund financial statements (reporting the Town’s major funds). Government-wide financial statements report on information of all of the non-fiduciary activities of the Town and its component units. Both the government-wide and fund financial statements categorize primary activities as either governmental or business- type. The Town’s public safety, public works and transportation, culture and recreation, economic development, and administration functions are classified as governmental activities. Timber Ridge 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 position resulting from the current year’s activities. June 2, 2020 - Page 86 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D3 I. Summary of Significant Accounting Policies (continued) 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. The 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 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 Town reports the following major proprietary or business-type funds: The Timber Ridge Enterprise Fund ("Timber Ridge") accounts for the activities of the 198-unit rental housing project located in the Town (the “Project”). The Dispatch Services Fund accounts for the emergency dispatch services provided by the Town within Eagle County, Colorado. June 2, 2020 - Page 87 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D4 I. Summary of Significant Accounting Policies (continued) C. Fund Financial Statements (continued) Additionally, the Town reports the following fund types: Internal service funds account for the repair and maintenance costs and purchase of Town vehicles and equipment, excluding buses and fire trucks. In addition, internal service funds are used to account for the health insurance plan provided to Town employees. Trust funds are used to account for the accumulation of resources for pension benefit payments to qualified Town employees and to account for assets held for employees in accordance with the provisions of Internal Revenue Code section 457. No budget is adopted for the Town’s trust funds. D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Measurement focus refers to whether financial statements measure changes in current resources only (current financial focus) or changes in both current and long-term resources (long-term economic focus). Basis of accounting refers to the point at which revenues, expenditures, or expenses are recognized in the accounts and reported in the financial statements. Financial statement presentation refers to classification of revenues by source and expenses by function. 1. Long-term Economic Focus and Accrual Basis Both governmental and business-type activities in the government-wide financial statements and the proprietary and fiduciary fund financial statements use the long-term economic focus and are presented on the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred, regardless of the timing of the related cash flows. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. 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. June 2, 2020 - Page 88 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D5 I. Summary of Significant Accounting Policies (continued) D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (continued) 3. Financial Statement Presentation As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are payments where the amounts are reasonably equivalent to the value of the interfund services provided and other charges between the various functions of the Town. Elimination of these charges would distort the direct costs and program revenues are reported. Amounts reported as program revenues include 1) charges to customers and applicants for goods, services or privileges provided, 2) operating grants and contributions and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non- operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenue of the Town’s enterprise funds are rents from individuals employed in the Town and charges for services related to emergency dispatch. Operating expenses for the enterprise fund includes operating expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. E. Financial Statement Accounts Presentation 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, Cash Equivalents, and Investments Cash and cash equivalents include cash on hand and investments with original maturities of three months or less from the date of acquisition. June 2, 2020 - Page 89 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D6 I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts Presentation (continued) 2. Cash, Cash Equivalents, and Investments (continued) Cash equivalents are both readily convertible to cash and are so near their maturity that 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. Investments are stated at fair value. The change in fair value of investments is recognized as an increase or decrease to investment assets and investment income. The Town’s investment policy permits investments in the following types of obligations:  U.S. Treasury Obligations  Government Agency Securities  FDIC-insured Certificates of Deposit  Colorado Investment Pools  Money Market Mutual Funds  Taxable Municipal Securities 3. Receivables Receivables are reported net of an allowance for uncollectible accounts. Loans receivable in governmental funds consist of housing and other loans that are generally not expected or scheduled to be collected in the subsequent year. 4. Inventory Inventory is valued at cost using the first-in / first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. 5. Prepaid Items Payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements. June 2, 2020 - Page 90 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D7 I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts Presentation (continued) 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 the acquisition value as of the date received. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Capital outlay for projects is capitalized as projects are constructed. Costs related to the construction of assets include interest, engineering, legal, surveying and landscaping that were incurred from the beginning of construction until the assets were substantially complete are capitalized. Capital assets (excluding land and art) are depreciated using the straight-line method, over the estimated useful life. Assets under capital leases are recorded at the present value of future minimum lease payments and amortized over the shorter of the lease term or the estimated useful life of the asset. June 2, 2020 - Page 91 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D8 I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts Presentation (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. 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 life of the applicable bonds using the bond outstanding method. 11. Unearned Revenue For governmental funds, unearned revenues arise when potential revenue does not meet both the “measurable” and “available” criteria for recognition in the current period. For proprietary funds, unearned revenues arise when potential revenue is unearned. In subsequent periods, when revenue recognition criteria are met, or when the Town has legal claim to the resources, the liability for unearned revenue is removed and revenue is recognized. June 2, 2020 - Page 92 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D9 I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts Presentation (continued) 12. Fund Balance Classifications 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. General Fund Real Esate Transfer Tax Fund Vail Marketing Fund Vail Local Marketing Disctict Vail Reinvestment Authority Capital Projects Fund Nonspendable: Non-current receivables 949,818 - - - - - Loans to other funds - - - - - 7,744,787 Prepaid items 172,071 8,485 - 82,077 - 54,339 Total Nonspendable 1,121,889 8,485 - 82,077 - 7,799,126 Restricted: Emergency reserve 2,235,300 - - 112,000 - - Police Funds 94,832 - - - - - Tax increment financing - - - - 1,287,284 - Total Restricted 2,330,132 - - 112,000 1,287,284 - Committed: Employees housing ownership program 59,818 - - - - - Capital projects - - - - - 36,653,592 Parks and recreation - 14,675,528 - - - - Housing - - - - - 421,032 Operating reserve 10,797,251 - - - - - Destination marketing - - 386,835 1,156,031 - - Total Committed 10,857,069 14,675,528 386,835 1,156,031 - 37,074,624 Assigned: Capital maintenance - - - - - 5,225,427 Debt service - - - - 1,295,608 - Total Assigned - - - - 1,295,608 5,225,427 June 2, 2020 - Page 93 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D10 I. Summary of Significant Accounting Policies (continued) F. Significant Accounting Policies 1. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Town’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenditures or expenses during the reporting period. Actual results could differ from those estimates. 2. Credit Risk The receivables of the various funds of the Town are primarily due from other governments. Management believes that the credit risk related to the receivables is minimal. 3. Restricted and Unrestricted Resources When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed. II. Reconciliation of Government-wide and Fund Financial Statements A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position The governmental fund Balance Sheet includes 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 $205,146,027 difference is related to property, plant and equipment of $366,663,200 less accumulated depreciation of $161,517,173. Another element of that reconciliation explains “Other long-term assets and unearned charges are not available for current period expenditures and therefore are not reported in the funds”. This $552,711 difference is comprised of pension forfeitures of $486,171 and interest receivable of $36,540. Net position totaling $11,537,794 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 $9,343,909 difference is related to bonds and notes payable of $7,715,000; accrued compensated absences of $1,482,796; retirement bonus payable of $106,000; and interest payable of $40,113. June 2, 2020 - Page 94 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D11 II. Reconciliation of Government-wide and Fund Financial Statements (continued) B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenue, Expenditures and Changes in Fund Balances and the Government-wide Statement of Activities The governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances includes reconciliation between net change in fund balances of governmental funds and changes in net position of governmental activities as reported in the government-wide Statement of Activities. One element of that reconciliation explains “Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense.” The details of this $9,603,986 difference are comprised of capital outlay of $19,653,402 less depreciation expense of $9,726,701; and net book value of disposed assets of $322,715. III. Stewardship, Compliance, and Accountability A. Budgetary Information An annual budget and appropriation ordinance is adopted by Town Council in accordance with the Town’s Home Rule Charter. Budgets are prepared on the basis of GAAP for all funds except the Heavy Equipment Fund, Timber Ridge Enterprise Fund, and Dispatch Services Fund. As required by Colorado Statutes, all funds have legally adopted budgets and appropriations. The total expenditures for each fund may not exceed the amounts appropriated. Appropriations for a fund may be increased if unanticipated revenues offset them. All appropriations lapse at year-end. The budgets for these funds have been adopted on a non-GAAP budget and are reconciled to GAAP below: Heavy Timber Ridge Dispatch Equipment Enterprise Services Fund Fund Fund Change in Net Position - Budget Basis 220,106$ 799,589$ 355,923$ add/(less): Contribution from Capital Projects Fund 105,611 - - Loan principal repayment to Capital Projects Fund - 372,704 - Change in compensated absences (6,249) - (16,006) Capitalized assets 783,193 14,002 - Depreciation (794,078) (347,114) (127,778) Net book value of disposed assets (20,982) - - Change in Net Position - GAAP Basis 287,601$ 839,181$ 212,139$ June 2, 2020 - Page 95 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D12 III. Stewardship, Compliance, and Accountability (continued) A. Budgetary Information (continued) The Town followed these procedures in preparing, approving, and enacting its budget for 2019: (1) For the 2019 budget year, prior to August 25, 2018, 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 2018 fiscal year, the Town Manager submitted to the Town Council a budget and accompanying message. (3) Prior to December 15, 2018, 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 2018 were collected in 2019 and taxes certified in 2019 will be collected in 2020. Taxes are due on January 1 in the year of collection; however, they may be paid in either one installment (no later than April 30) or two equal installments (not later than February 28 and June 15) without interest or penalty. Taxes that are not paid within the prescribed time bear interest at the rate of one percent (1%) per month until paid. Unpaid amounts and the accrued interest thereon become delinquent on June 16. During the year, supplemental appropriations were necessary. The budgetary comparison statements reflect the original budget and the final budget after legally authorized revisions were made. The District’s budget timetable varies from the Town’s. The District followed these procedures in preparing, approving, and enacting its budget for 2019: (1) On or before September 30, 2018, 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, 2018. (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, 2018. The Board adopted the 2019 budget on November 18, 2018. (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. June 2, 2020 - Page 96 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D13 III. Stewardship, Compliance, and Accountability (continued) B. Budgetary Information – Vail Local Marketing District 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 In November 1992, Colorado voters amended Article X of the Colorado Constitution by adding Section 20, commonly known as the Taxpayer's Bill of Rights (“TABOR”). TABOR contains revenue, spending, tax and debt limitations that apply to the State of Colorado and local governments. TABOR requires, with certain exceptions, advance voter approval for any new tax, tax rate increase, mill levy above that for the prior year, extension of any expiring tax, or tax policy change directly causing a net tax revenue gain to any local government. Except for refinancing bonded debt at a lower interest rate or adding new employees to existing pension plans, TABOR requires advance voter approval for the creation of any multiple-fiscal year debt or other financial obligation unless adequate present cash reserves are pledged irrevocably and held for payments in all future fiscal years. TABOR also requires local governments to establish an emergency reserve to be used for declared emergencies only. Emergencies, as defined by TABOR, exclude economic conditions, revenue shortfalls, or salary or fringe benefit increases. The reserve is calculated at 3% of fiscal year spending for fiscal years ending after December 31, 1995. Fiscal year spending excludes bonded debt service and enterprise spending. The Town has reserved a portion of the December 31, 2019 fund balance in the General Fund for this purpose in the amount of $2,235,000, 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. On November 16, 1993, voters of the Town approved the collection and expenditure of all revenues generated, including reduction in debt service during 1993 and each subsequent year (not including revenue generated from ad valorem property taxes) without any increase in such tax rates and the expenditure of such revenues for debt service, municipal operations, and capital projects, effective January 1, 1994. On November 7, 2000, the Town’s electorate approved the collection and expenditure of all revenues received from ad valorem property taxes levied in 2000 and each year thereafter. June 2, 2020 - Page 97 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D14 III. Stewardship, Compliance, and Accountability (continued) C. TABOR Amendment (continued) 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 reserved $112,000 of its fund balance for emergencies, which is the approximate required reserve at December 31, 2019. The ballot question approved by District 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. Deposit 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. 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 deposits at each financial institution. Deposit balances over $250,000 are collateralized as required by PDPA. As of year end, the bank balance of the Town’s deposits was $13,494,530. The difference between the bank balance and book balance is primarily due to deposits in transit or outstanding checks at December 31, 2019. June 2, 2020 - Page 98 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D15 IV. Detailed Notes on all Funds (continued) A. Deposit and Investments (continued) Fair Value of Investments The Town measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows: Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs. At December 31, 2019, the Town had the following recurring fair value measurements: Debt and equity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Debt and equity securities classified in Level 2 are valued using the following approaches: U.S. Treasuries, U.S. Agencies, and Commercial Paper: quoted prices for identical securities in markets that are not active; Negotiable Certificates of Deposit: Matrix pricing based on the securities relationship to benchmark quoted prices; Debt securities, namely mortgage pools, classified in Level 3 are valued using appraisal service. 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 $1. Investments of the trusts consist of U.S. Treasury bills, notes and note strips, and repurchase agreements collateralized by U.S. Treasury securities. Colotrust is rated AAAm by Standard and Poor’s. Interest Rate Risk. As a means of limiting its exposure to interest rate risk, the Town diversifies its investments by security type and institution, and limits holdings in any one type of investment with any one issuer. The Town coordinates its investments maturities to closely match cash flow needs and invests primarily in securities with a maximum investment term less than five years from the purchase date. As a result of the limited length of maturities the Town has limited its interest rate risk. Investments Measured at Fair Value: Total Level 1 Level 2 Level 3 Certificates of Deposit 9,351,441$ -$ 9,351,441$ -$ Government Agency Securities 15,751,811 - 15,751,811 - Mortgage Pools 11,542,737 - - 11,542,737 Total 36,645,989$ -$ 25,103,252$ 11,542,737$ Investments Measured at Net Asset Value: Colotrust 46,026,257$ Fair Value Measurements Using June 2, 2020 - Page 99 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D16 IV. Detailed Notes on all Funds (continued) A. Deposit 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 44% At year end, the Town had the following investments and maturities: Type Rating Maturities Value Deposits: Cash on hand 1,980$ Demand deposits 23,081,186 Certificates of deposit <1 year 2,868,955 Certificates of deposit <5 years 6,482,486 Total deposits 32,434,607$ Investments: US agencies - FHLMC, FHLB, FNMA AA+ <5 years 15,751,811$ Mortgage pools AA+ N/A 11,542,737 Colotrust AAAm N/A 46,026,257 Pension and Section 457 investments N/A N/A 98,234,297 Total investments 171,555,102 Total deposits and investments 203,989,708$ Reconciliation to Statement of Net Position: Equity in pooled cash and investments 96,242,738$ Cash and cash equivalents - Unrestricted 8,151,275 Cash and cash equivalents - Restricted 1,871,863 Fiduciary Funds 97,723,832 Total 203,989,708$ 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. June 2, 2020 - Page 100 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D17 IV. Detailed Notes on all Funds (continued) B. Receivables Receivables as of year-end for the Town’s funds, including applicable allowances for uncollectible accounts, are as follows: Capital Real Estate Vail Vail Local General Projects Transfer Marketing Marketing Fund Fund Tax Fund Fund District Receivables: Property taxes 5,680,199$ -$ -$ -$ -$ Other taxes 5,648,704 - 193,896 - 809,634 Other governments 270,601 114,002 9,665 - - Other 429,470 135,222 11,720 4,600 - Gross Receivables 12,028,974 249,224 215,281 4,600 809,634 Less: Allowance for uncollectibles (1,000) - - - - Net Receivables 12,027,974$ 249,224$ 215,281$ 4,600$ 809,634$ Vail Heavy Rein-Equip-Dispatch Health Timber vestment ment Services Insurance Ridge Authority Fund Fund Fund Total Receivables: Property taxes -$ -$ -$ -$ -$ 5,680,199$ Other taxes - - - - - 6,652,234 Other governments - - - - - 394,268 Other 1,192 - 22,807 302,816 5,085 912,912 Gross Receivables 1,192 - 22,807 302,816 5,085 13,639,613 Less: Allowance for uncollectibles - - - - - (1,000) Net Receivables 1,192$ -$ 22,807$ 302,816$ 5,085$ 13,638,613$ 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 $2,056,616 and is comprised of the following: Vail Capital Real Estate General Marketing Projects Transfer Tax Fund Fund Fund Fund Total Unearned revenues: Business Licenses -$ 72,904$ -$ -$ 72,904$ Art projects - - - 37,544 37,544 Enviromental programs - - - 71,012 71,012 Library grants 117,036 - - - 117,036 Police programs 63,567 - - - 63,567 Construction projects - - 1,684,368 10,185 1,694,553 180,603$ 72,904$ 1,684,368$ 118,741$ 2,056,616$ June 2, 2020 - Page 101 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D18 IV. Detailed Notes on all Funds (continued) B. Receivables (continued) Unearned revenue for construction projects in the Capital Projects Fund includes $829,068 collected from Holy Cross Energy for community enhancement to place utilities underground. The other $855,300 was collected from developers for road improvements. The revenue will be recognized in the year the money is spent. Loans receivable at December 31, 2019 are comprised of the following: a) The Town has established a program (the “EHOP Program”) to assist qualified full- time Town employees with the purchase of a primary residence within certain geographic boundaries, by providing secured, non-interest bearing loans, with repayment over a maximum 15-year term including both the principal balance plus a portion of any recognized appreciation in the value of the underlying property. All such advances may be repaid at any time by the borrower-employee. The balance of EHOP Program loans receivable at December 31, 2019 was $949,818. (This section of the page is intentionally left blank) June 2, 2020 - Page 102 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D19 IV. Detailed Notes on all Funds (continued) C. Capital Assets Capital asset activity for the year ended December 31, 2019 was as follows: Beginning Balance Ending (Restated)Increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated: Land 25,236,380$ -$ -$ 25,236,380$ Art 2,632,725 380,139 - 3,012,864 Construction in Process 16,722,514 5,190,374 (779,585) 21,133,303 Intangibles 5,678,911 7,214,016 - 12,892,927 Total Capital Assets, Not Being Depreciated 50,270,530 12,784,529 (779,585) 62,275,474 Capital Assets, Being Depreciated: Buildings and improvements 113,878,874 650,083 (600,000) 113,928,957 Infrastructure and improvements 149,761,188 6,274,884 - 156,036,072 Equipment and vehicles 47,298,201 1,336,258 (523,129) 48,111,330 Total Capital Assets Being Depreciated 310,938,263 8,261,225 (1,123,129) 318,076,359 Less Accumulated Depreciation For: Buildings and improvements (58,341,554) (2,702,393) 453,750 (60,590,197) Infrastructure and improvements (74,745,429) (4,859,006) - (79,604,435) Equipment and vehicles (27,310,835) (2,959,445) 496,173 (29,774,107) Total Accumulated Depreciation (160,397,818) (10,520,844) 949,923 (169,968,739) Total Capital Assets Being Depreciated, Net 150,540,445 (2,259,619) (173,206) 148,107,620 Governmental Activities Capital Assets, Net 200,810,975$ 10,524,910$ (952,791)$ 210,383,094$ Business-type Activities Capital Assets, Not Being Depreciated: Land 4,399,500$ -$ -$ 4,399,500$ Total Capital Assets, Not Being Depreciated 4,399,500 - - 4,399,500 Capital Assets, Being Depreciated: Buildings and improvements 9,038,439 - - 9,038,439 Infrastructure and improvements 861,915 14,002 - 875,917 Equipment 2,910,328 - (345,754) 2,564,574 Total Capital Assets Being Depreciated 12,810,682 14,002 (345,754) 12,478,930 Less Accumulated Depreciation For: Buildings and improvements (4,120,629) (301,460) - (4,422,089) Infrastructure and improvements (181,442) (45,463) - (226,905) Equipment (1,917,135) (127,969) 345,754 (1,699,350) Total Accumulated Depreciation (6,219,206) (474,892) 345,754 (6,348,344) Total Capital Assets Being Depreciated, Net 6,591,476 (460,890) - 6,130,586 Business-type Activities Capital Assets, Net 10,990,976$ (460,890)$ -$ 10,530,086$ June 2, 2020 - Page 103 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D20 IV. Detailed Notes on all Funds (continued) C. Capital Assets (continued) Depreciation expense was charged to functions of the Town as follows: Depreciation on capital 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, 2019, the Town had $71,778,395 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. Long-term Asset – Rent Receivable (Ground Lease) In September, 2014, the Town executed a Ground Lease and a Development Agreement with Lion’s Ridge Apartment Homes, LLC (“Lion’s Ridge”) with respect to the eastern half of the Timber Ridge development. Under the terms of the Ground Lease, the Town leases the new development property to Lion’s Ridge for a 50-year term, during which Lion’s Ridge will construct and lease deed-restricted apartments on the newly developed property. The amount of rent payable over the 50 year term has been averaged on a straight-line basis for an annual amount of $155,149. As of December 31, 2019, the rent receivable accrued in the Timber Ridge Enterprise Fund was $814,522. No payments are due from Lion’s Ridge until 2025. Governmental Activities: General government 588,733$ Public safety 489,325 Public works and transportation 7,233,218 Culture and recreation 2,209,568 Total Depreciation Expense - Governmental Activities 10,520,844$ Business-type Activities: Dispatch services 127,778$ Housing 347,114 Total Depreciation - Business-type Activities 474,892$ June 2, 2020 - Page 104 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D21 IV. Detailed Notes on all Funds (continued) F. Interfund Receivables, Payables, and Transfers At December 31, 2019, Vail Reinvestment Authority owed the Capital Projects Fund $3,804,281 in connection with construction projects within the Lionshead district, including the construction of the I-70 underpass and the Red Sandstone Parking Structure, and repairs to the Lionshead Parking Structure. The following promissory notes payable from the Timber Ridge Enterprise Fund to the Town – which aggregate to $7,744,787 as of December 31, 2019 – are reflected as internal balances between the governmental activities and business-type activities categories on the Statement of Net Position:  Promissory notes totaling $1.9 million which bear interest at the rate of 1.5% per annum and mature December 1, 2032. These notes are payable to the extent that Timber Ridge has determined the availability of excess net revenues of the Project, after provision for necessary operating or capital reserves, but may be repaid at any time without penalty. Timber Ridge paid $28,500 in accrued interest relating to the $1.9 million notes during 2019. $900,000 of the proceeds were not used for capital acquisitions and therefore are excluded from the business-type calculation of net investment in fixed assets.  The $8 million promissory note bears interest at the rate of 1.5% per annum, with blended annual payments, and maturing December 1, 2033. Timber Ridge remitted $90,467 in interest to the Town during 2019 and, as of December 31, 2019, had accrued a total of $36,530 in interest payable to the Town relating to the $8 million note. Debt service requirements for the $8 million promissory note are as follows: Principal Interest Total 2020 378,294$ 84,835$ 463,129$ 2021 383,969 79,118 463,087 2022 389,728 73,315 463,043 2023 395,574 67,425 462,999 2024 401,508 61,447 462,955 2025-2029 2,099,704 214,378 2,314,082 2030-2033 1,796,012 54,382 1,850,393 Totals 5,844,789$ 634,899$ 6,479,688$ Transfers are used to 1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, 2) move unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations, and, 3) provide additional resources for current operations or debt service. All transfers either occur on a regular basis or are consistent with the purpose of the fund making the transfer. June 2, 2020 - Page 105 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D22 IV. Detailed Notes on all Funds (continued) G. 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 2010B The Authority issued $8,270,000 of Taxable Tax Increment Revenue Bonds (Direct Pay Build America Bonds) dated November 4, 2010 (the “2010B Bonds”). Proceeds from the 2010B Bonds will be used to finance the acquisition, construction and installation of an urban renewal project(s). The interest rate on the 2010B Bonds ranges from 5.269% to 6.659% per annum, and is payable June 1 and December 1 annually from June 1, 2011 through June 1, 2030. Principal payments are payable June 1 and December 1 annually from June 1, 2019 through June 1, 2030. The Authority will receive a federal subsidy known as the “BAB Credit” equal to 35% of corresponding interest as provided under the American Recovery and Reinvestment Act of 2009. This “BAB Credit” decreased by 8.7% beginning December 1, 2013 due to federal budget reductions. As of June 1, 2014 the “BAB Credit” decreased by 7.3% due to federal budget reductions. As of October 1, 2015, the refundable credit decreased by 6.8%, and as of October 1, 2016 reduced by 6.8%. The 2010B Bonds are special limited obligations of the Authority, equitably and ratably secured by an irrevocable pledge of the Trust Estate, funded by pledged incremental property tax revenues. 2010B Bonds maturing on or before June 1, 2020 are not subject to optional redemption prior to their respective maturity dates. The 2010B Bonds maturing on and after June 1, 2021 are subject to redemption prior to their respective maturity dates at the option of the Authority at a price equal to the principal amount plus accrued interest to the redemption date without a premium. All 2010B Bonds are subject to mandatory sinking fund redemption. June 2, 2020 - Page 106 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D23 IV. Detailed Notes on all Funds (continued) 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 at December 31, 2019 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 $3,985,936 at December 31, 2019 has not been reflected in the Town’s financial statements as the amount is partially insured by an independent insurance company and the amounts are not payable at termination. I. Long-term Liabilities – Refunded In prior years, the Town defeased certain general obligations and other bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. The bonds intended to be refunded by the refunding issues remain a contingent liability of the Town until retired; however, they are not included for the purposes of calculating debt limits of the Town. The amount of debt considered defeased cannot be readily determined as of December 31, 2019. J. Long-term Liabilities - Activity and Debt Service Schedules Long-term liability activity for the year ended December 31, 2019 was as follows: (Restated) Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: Tax-Increment Bonds, Series 2010B 8,270,000$ -$ (555,000)$ 7,715,000$ 575,000$ Capital leases 743,692 - (743,692) - - Compensated absences 1,564,810 - (29,717) 1,535,093 460,528 Total Governmental Activities Long-term Liabilities 10,578,502$ -$ (1,328,409)$ 9,250,093$ 1,035,528$ Business-type Activities: Compensated absences 73,958 16,007 - 89,965 26,990 Total Business-type Activities Long-term Liabilities 73,958$ 16,007$ -$ 89,965$ 26,990$ June 2, 2020 - Page 107 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D24 IV. Detailed Notes on all Funds (continued) J. Long-term Liabilities - Activity and Debt Service Schedules (continued) Debt service requirements at December 31, 2019 were as follows: Principal Interest Total Governmental Activities: 2020 575,000$ 471,662$ 1,046,662$ 2021 595,000 438,458 1,033,458 2022 615,000 401,741 1,016,741 2023 640,000 363,658 1,003,658 2024 665,000 324,058 989,058 2025-2029 3,770,000 931,209 4,701,209 2030 855,000 28,467 883,467 Total Governmental Activities 7,715,000$ 2,959,253 10,674,253 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. Long-term Liabilities – Capital Leases In March 2017, the Town entered into a capital lease agreement for the purchase of a phone system. The total amount financed was $121,272. The lease required annual payments of $32,124 and was paid off in 2019. In June 2018, the Town entered into a capital lease agreement for the purchase of server equipment for a new off-site data center. The total amount financed was $1,425,605. The lease required annual payments of $712,803 and was paid off in 2019. 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. June 2, 2020 - Page 108 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D25 IV. Detailed Notes on all Funds (continued) L. Fund Balance Disclosures (continued) 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 35% 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. 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. June 2, 2020 - Page 109 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D26 V. Other Information (continued) A. Pension Plans (continued) In 1991, the Town established a defined contribution pension plan for seasonal employees who work for the Town longer than 6 weeks. Seasonal employees are required to contribute 6% of regular compensation to the plan and the Town contributes 1.5%. Seasonal employees are 100% vested after their first contribution. Employees covered under the regular and seasonal pension plans do not participate in the Social Security system. The annual pension cost is the Town's contributions less forfeitures from the prior year. The plans' invested assets at December 31, 2019 of $77,884,064 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 2019 covered payroll was $22,497,817 of which $18,803,156 was for permanent employees and $3,694,661 was for seasonal staff. Total 2019 payroll for all Town employees was $23,147,715. B. Retirement Savings Plan – Deferred Compensation Plan – IRC 457 The Town offers its employees a deferred compensation plan (the “457 Plan”) created in accordance with Internal Revenue Code section 457. The 457 Plan, available to all Town employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the 457 Plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are to be held in trust for the exclusive benefit of the 457 Plan participants and their beneficiaries. The modified accrual basis of accounting is used for the 457 Plan. The trustees and administrators of the 457 Plan are the Retirement Board, which comprises members of the Town’s administration. The Retirement Board determines investment options made available to participants, in adherence to an adopted investment policy statement. The Town has no liability for losses under the 457 Plan but does have the duty of due care that would be required of an ordinary prudent investor. The total assets of the 457 Plan were $19,839,768 at December 31, 2019. The assets were invested in mutual funds, as previously described. Pursuant to the Town’s adoption of GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, the 457 Plan has been included in these financial statements as an expendable trust fund. June 2, 2020 - Page 110 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D27 V. Other Information (continued) C. Cafeteria Plan The Town offers a cafeteria compensation plan organized under section 125 of the Internal Revenue Code, which includes dependent care and health expense reimbursement. No cost to the Town is recognized as the plan is a salary reduction plan. D. Risk Management The Town is exposed to various risks of loss related to workers’ compensation, general liability, unemployment, torts, theft of, damage to, and destruction of assets, and errors and omissions. The Town carries commercial coverage for these risks and claims and does not expect claims to exceed their coverage. The Town offers health insurance to certain employees through the Town’s self-funded health plan with excess coverage underwritten by a commercial carrier. Liabilities for retained risk claims are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (“IBNR”). The following is a summary of the changes in the balances of the claims liability during 2019: 2019 Claims liability, beginning of year 545,000$ Current year claims 3,524,914 Claims payments (3,567,754) Claims liability, end of year 502,160$ 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, 2019. 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, 2019. June 2, 2020 - Page 111 of 235 Town of Vail, Colorado Notes to the Financial Statements December 31, 2019 (Continued) D28 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 Restatement of Net Position The Town has restated the beginning balance of capital assets and current lease liabilities for government activities by $1,342,444 and $712,802 to reflect a data center server capital lease described in Note K. The Town has restated the beginning balance of the Real Estate Transfer Tax Fund by a decrease of $175,000 to correct state grant revenue accrued in 2018. The beginning net position of the Town on the government- wide Statement of Activities has been restated by $454,642 to reflect these changes. H. Reclassified Prior Year Balances Certain comparative amounts for fiscal year 2018 have been reclassified – with no effect on net position, fund balance, total assets, or total liabilities – to conform to the 2019 presentation. I. Subsequent Event – COVID-19  The spread of COVID-19 may have operational, economic and financial impacts on the Town. The significance and duration of the potential impacts cannot be reasonably estimated at this time. June 2, 2020 - Page 112 of 235 REQUIRED SUPPLEMENTARY INFORMATION June 2, 2020 - Page 113 of 235 2018 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: General sales taxes 16,790,000 16,790,000 16,790,000 - 16,149,000 Property and ownership taxes 5,300,000 5,300,000 5,369,376 69,376 5,313,730 Ski area lift ticket admissions tax 5,025,000 5,025,000 5,341,369 316,369 5,103,480 Franchise tax 1,100,000 1,100,000 1,161,503 61,503 1,124,577 Penalties and interest on delinquent taxes 42,925 42,925 40,036 (2,889) 34,101 Total - Taxes 28,257,925 28,257,925 28,702,284 444,359 27,724,888 Permits and Licenses: Construction fees 1,253,033 1,253,033 1,151,414 (101,619) 1,805,961 Contractors' licenses 60,000 60,000 55,144 (4,856) 50,225 Other permits and licenses 1,030,295 1,030,295 1,001,360 (28,935) 1,345,114 Total - Permits and Licenses 2,343,328 2,343,328 2,207,918 (135,410) 3,201,300 Intergovernmental: County sales tax 866,560 866,560 1,029,600 163,040 917,992 County road and bridge 706,000 706,000 709,513 3,513 706,903 Additional motor vehicle registration fees 26,000 26,000 27,746 1,746 26,753 Cigarette tax 60,000 60,000 62,336 2,336 64,999 Highway users tax 220,000 220,000 260,384 40,384 265,476 Other county sources 87,500 87,500 89,162 1,662 87,500 Other state sources 11,044 151,715 116,887 (34,828) 581,343 Federal sources - - 2,241 2,241 - Total - Intergovernmental 1,977,104 2,117,775 2,297,869 180,094 2,650,966 Charges for Services: Management fees - Vail Local Marketing District 125,000 125,000 145,000 20,000 145,000 Internal service charge 519,194 550,194 584,638 34,444 596,679 Out of district fire response 40,000 40,000 69,869 29,869 25,485 Alarm monitoring fees 24,000 24,000 15,920 (8,080) 24,969 Parking 5,426,000 5,426,000 6,720,873 1,294,873 6,416,013 Fines and forfeitures 245,563 245,563 211,089 (34,474) 211,101 Rents 1,092,352 1,104,592 1,139,700 35,108 1,064,570 Other charges, services, and sales 307,929 332,807 329,231 (3,576) 298,986 Total - Charges for Services 7,780,038 7,848,156 9,216,320 1,368,164 8,782,803 Other Revenues: Earnings on investments 200,000 200,000 866,059 666,059 436,425 Miscellaneous 254,000 320,045 377,097 57,052 191,826 Total - Other Revenues 454,000 520,045 1,243,156 723,111 628,251 Total Revenues 40,812,395 41,087,229 43,667,547 2,580,318 42,988,208 2019 Town of Vail, Colorado General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2019 With Comparative Actual Amounts For the Year Ended December 31, 2018 (Continued) The accompanying notes are an integral part of these financial statements. E1 June 2, 2020 - Page 114 of 235 2018 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Expenditures: General Government: Town officials 2,167,250 2,035,751 1,634,077 401,674 1,345,488 Administrative 5,025,306 5,145,170 4,795,163 350,007 4,792,466 Community development 2,624,688 2,645,560 2,344,854 300,706 1,812,892 Total - General Government 9,817,244 9,826,481 8,774,094 1,052,387 7,950,846 Public Safety: Police department 6,374,507 6,519,957 6,513,205 6,752 5,981,902 Fire department 4,870,353 5,003,899 4,859,806 144,093 4,741,684 Total - Public Safety 11,244,860 11,523,856 11,373,011 150,845 10,723,586 Public Works and Transportation: Highways and streets 5,335,234 5,354,077 5,039,692 314,385 4,748,503 Transportation 5,454,546 5,625,575 5,553,226 72,349 5,363,851 Parking operations 1,491,302 1,619,959 1,619,527 432 1,613,448 Facility maintenance 3,924,463 3,935,047 3,931,476 3,571 3,609,024 Total - Public Works and Transportation 16,205,545 16,534,658 16,143,921 390,737 15,334,826 Culture and Recreation: Special recreation facilities 292,950 292,950 310,274 (17,324) 278,918 Library 904,443 997,098 1,052,117 (55,019) 955,056 Total - Culture and Recreation 1,197,393 1,290,048 1,362,391 (72,343) 1,233,974 Economic Development: Contributions, marketing, and special events 1,044,569 1,084,148 1,023,836 60,312 988,800 Total - Economic Development 1,044,569 1,084,148 1,023,836 60,312 988,800 Total Expenditures 39,509,611 40,259,191 38,677,253 1,581,938 36,232,032 Excess (Deficiency) of Revenues Over Expenditures 1,302,784 828,038 4,990,294 4,162,256 6,756,176 Other Financing Sources (Uses): Sale of assets - - - - 28,753 Transfers out (2,357,788) (2,571,769) (2,571,769) - (2,186,120) Total Other Financing Sources (Uses)(2,357,788) (2,571,769) (2,571,769) - (2,157,367) Net Change in Fund Balance (1,055,004) (1,743,731) 2,418,525 4,162,256 4,598,809 Fund Balance - January 1 28,813,132 33,888,140 33,888,140 - 29,289,331 Fund Balance - December 31 27,758,128 32,144,409 36,306,665 4,162,256 33,888,140 (Continued) 2019 Town of Vail, Colorado General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2019 With Comparative Actual Amounts For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. E2 June 2, 2020 - Page 115 of 235 2018 (Restated) Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Real estate transfer tax 6,300,000 6,500,000 7,224,668 724,668 7,649,013 Intergovernmental Revenue: Lottery revenue 20,000 20,000 31,476 11,476 27,774 Other county revenue 1,000,000 1,474,377 24,377 (1,450,000) 241,091 Other state revenue 150,000 241,610 98,978 (142,632) 525,000 Total - Intergovernmental Revenue 1,170,000 1,735,987 154,831 (1,581,156) 793,865 Charges for Services: Recreation amenities fee 10,000 10,000 76,061 66,061 11,146 Land lease to Vail Recreation District 166,650 166,650 165,000 (1,650) 141,605 Total - Charges for Services 176,650 176,650 241,061 64,411 152,751 Other: Project reimbursements - 40,000 77,684 37,684 32,598 Donations - 239,400 203,332 (36,068) 50,188 Interest on investments 11,991 11,992 298,861 286,869 157,216 Other 32,000 33,255 27,790 (5,465) 8,792 Total - Other 43,991 324,647 607,667 283,020 248,794 Total Revenues 7,690,641 8,737,284 8,228,227 (509,057) 8,844,423 Expenditures: Culture and Recreation: Project management 315,000 325,000 361,233 (36,233) 382,451 Park maintenance 1,712,030 1,765,098 1,617,376 147,722 1,485,754 Environmental sustainability 673,225 892,338 676,293 216,045 467,994 Art in public places 123,456 123,456 118,657 4,799 112,700 Total - Culture and Recreation 2,823,711 3,105,892 2,773,559 332,333 2,448,899 Public Works: Capital projects 4,956,689 14,509,104 3,486,942 11,022,162 4,331,417 Public Safety Fire suppression 296,311 315,964 283,380 32,584 231,468 Total Expenditures 8,076,711 17,930,960 6,543,881 11,387,079 7,011,784 Excess (Deficiency) of Revenues Over Expenditures (386,070) (9,193,676) 1,684,346 10,878,022 1,832,639 Other Financing Sources (Uses): Transfers in - 24,114 24,114 - - Total Other Financing Sources (Uses)- 24,114 24,114 - - Net Change in Fund Balance (386,070) (9,169,562) 1,708,460 10,878,022 1,832,639 Fund Balance - January 1 (Restated)887,045 12,975,553 12,975,553 - 11,142,914 Fund Balance - December 31 500,975 3,805,991 14,684,013 10,878,022 12,975,553 With Comparative Actual Amounts For the Year Ended December 31, 2018 2019 Town of Vail, Colorado Special Revenue Funds Real Estate Transfer Tax Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2019 The accompanying notes are an integral part of these financial statements. E3 June 2, 2020 - Page 116 of 235 2018 Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Permits and Licenses: Business licenses 275,000 275,000 341,149 66,149 337,602 Other: Interest on investments 3,000 3,000 1,392 (1,608) 4,718 Total Revenues 278,000 278,000 342,541 64,541 342,320 Expenditures: Economic Development: Special Events 1,739,140 1,942,345 1,890,406 51,939 1,680,935 Commission on Special Events 893,648 893,648 894,272 (624) 850,990 Administration fee 13,750 13,750 17,057 (3,307) 16,880 Total Expenditures 2,646,538 2,849,743 2,801,735 48,008 2,548,805 Excess (Deficiency) of Revenues Over Expenditures (2,368,538) (2,571,743) (2,459,194) 112,549 (2,206,485) Other Financing Sources (Uses): Transfers in 2,357,788 2,542,788 2,542,788 - 2,186,120 Total Other Financing Sources (Uses)2,357,788 2,542,788 2,542,788 - 2,186,120 Net Change in Fund Balance (10,750) (28,955) 83,594 112,549 (20,365) Fund Balance - January 1 220,107 303,241 303,241 - 323,606 Fund Balance - December 31 209,357 274,286 386,835 112,549 303,241 With Comparative Actual Amounts For the Year Ended December 31, 2018 2019 Town of Vail, Colorado Special Revenue Funds Vail Marketing Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2019 The accompanying notes are an integral part of these financial statements. E4 June 2, 2020 - Page 117 of 235 2018 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Lodging tax 3,300,000 3,500,000 3,711,738 211,738 3,489,289 Other: Interest on investments 2,000 2,000 2,631 631 1,397 Total Revenues 3,302,000 3,502,000 3,714,369 212,369 3,490,686 Expenditures: Economic Development: Destination 1,306,000 1,455,500 1,391,003 64,497 1,441,688 Front Range 190,000 271,500 279,618 (8,118) 189,401 Groups and meetings 680,738 680,738 597,075 83,663 701,231 Marketing 422,000 933,000 828,675 104,325 455,477 Special events 225,000 25,000 25,000 - 225,000 Purchased services 476,262 489,262 513,343 (24,081) 467,733 Total Expenditures 3,300,000 3,855,000 3,634,714 220,286 3,480,530 Excess (Deficiency) of Revenues Over Expenditures 2,000 (353,000) 79,655 432,655 10,156 Fund Balance - January 1 862,297 1,270,453 1,270,453 - 1,260,297 Fund Balance - December 31 864,297 917,453 1,350,108 432,655 1,270,453 2019 With Comparative Actual Amounts For the Year Ended December 31, 2018 Town of Vail, Colorado Special Revenue Funds Vail Local Marketing District Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2019 The accompanying notes are an integral part of these financial statements. E5 June 2, 2020 - Page 118 of 235 2018 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Property tax 5,540,000 5,813,000 5,825,058 12,058 5,475,660 Other: Interest on investments 2,615 2,615 3,793 1,178 4,045 Interest subsidy (Build America Bonds) 167,444 167,444 164,876 (2,568) 169,059 Total Revenues 5,710,059 5,983,059 5,993,727 10,668 5,648,764 Expenditures: Economic Development: Administration 100,000 105,460 105,654 (194) 98,604 Fiscal agent fees 2,800 2,800 1,470 1,330 2,420 Treasurer's fees 166,200 174,390 174,754 (364) 164,416 Professional fees 10,000 10,000 1,445 8,555 2,895 Vail Square Metro District 523,800 523,800 526,106 (2,306) 524,143 Total Economic Development 802,800 816,450 809,429 7,021 792,478 Debt Service: Principal 555,000 555,000 555,000 - 535,000 Interest 501,432 501,432 501,432 - 526,753 Total Debt Service 1,056,432 1,056,432 1,056,432 - 1,061,753 Total Expenditures 1,859,232 1,872,882 1,865,861 7,021 1,854,231 Excess (Deficiency) of Revenues Over Expenditures 3,850,827 4,110,177 4,127,866 17,689 3,794,533 Other Financing Sources (Uses): Transfers out (3,050,000) (3,804,281) (3,804,281) - (4,599,998) Total Other Financing Sources (Uses)(3,050,000) (3,804,281) (3,804,281) - (4,599,998) Net Change in Fund Balance 800,827 305,896 323,585 17,689 (805,465) Fund Balance - January 1 1,707,385 2,259,307 2,259,307 - 3,064,772 Fund Balance - December 31 2,508,212 2,565,203 2,582,892 17,689 2,259,307 With Comparative Actual Amounts For the Year Ended December 31, 2018 2019 Town of Vail, Colorado Special Revenue Funds Vail Reinvestment Authority Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2019 The accompanying notes are an integral part of these financial statements. E6 June 2, 2020 - Page 119 of 235 SUPPLEMENTARY INFORMATION June 2, 2020 - Page 120 of 235 2018 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Sales tax 10,290,000 10,290,000 12,719,336 2,429,336 12,046,899 Construction use tax 2,220,000 2,520,000 2,467,928 (52,072) 3,689,131 Franchise tax - 90,000 77,237 (12,763) - Total - Taxes 12,510,000 12,900,000 15,264,501 2,377,264 15,736,030 Intergovernmental: County revenues - 105,829 105,829 - 197,523 State grants 300,000 168,000 33,000 (135,000) 747,710 Federal grants - 895,000 894,898 (102) 1,653 Total - Intergovernmental 300,000 1,168,829 1,033,727 (135,102) 946,886 Charges for Services: Leases - Vail Commons 164,067 164,067 163,909 (158) 159,135 Total - Charges for Services 164,067 164,067 163,909 (158) 159,135 Other: Interest on investments 604,543 604,543 970,269 365,726 562,924 Project reimbursements/shared costs 200,000 270,000 322,631 52,631 6,727,757 Construction fees - 491,687 461,556 (30,131) 259,565 Miscellaneous - - 4,582 4,582 17,758,512 Total - Other 804,543 1,366,230 1,759,038 392,808 25,308,758 Total Revenues 13,778,610 15,599,126 18,221,175 2,634,812 42,150,810 Expenditures: Public Works: Capital lease principal - - 743,692 743,692 742,504 Interest - - 1,236 1,236 2,424 Capital projects and acquisition 19,158,295 44,182,942 19,574,164 24,608,778 33,347,560 Total - Public Works 19,158,295 44,182,942 20,319,092 25,353,706 34,092,488 Excess (Deficiency) of Revenues Over Expenditures (5,379,685) (28,583,816) (2,097,917) 27,988,518 8,058,322 Other Financing Sources (Uses): Capital lease proceeds - - - - 1,425,606 Sale of assets - 2,422,000 1,547,000 - - Transfers in 3,050,000 3,848,281 3,804,281 (44,000) 4,599,998 Total Other Financing Sources (Uses)3,050,000 6,270,281 5,351,281 (44,000) 6,025,604 Net Change in Fund Balance (2,329,685) (22,313,535) 3,253,364 27,944,518 14,083,926 Fund Balance - January 1 22,808,037 46,845,813 46,845,813 - 32,761,887 Fund Balance - December 31 20,478,352 24,532,278 50,099,177 27,944,518 46,845,813 With Comparative Actual Amounts For the Year Ended December 31, 2018 2019 Town of Vail, Colorado Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2019 The accompanying notes are an integral part of these financial statements. F1 June 2, 2020 - Page 121 of 235 2018 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Rent 1,570,272 1,570,272 1,593,491 23,219 1,452,310 Ground lease - - 155,149 155,149 155,149 Other 19,346 19,346 25,398 6,052 12,906 Total Operating Revenues 1,589,618 1,589,618 1,774,038 184,420 1,620,365 Operating Expenses: Operating expenses 524,144 524,144 490,895 33,249 514,238 Capital outlay 280,701 481,411 14,002 467,409 79,991 Total Operating Expenses 804,845 1,005,555 504,897 500,658 594,229 Operating Income (Loss)784,773 584,063 1,269,141 685,078 1,026,136 Non-operating Revenues (Expenses): Interest on investments 12,000 12,000 19,790 7,790 12,008 Interest expense (116,638) (116,638) (116,638) - (122,221) Loan principal repayment to Capital Projects Fund (372,704) (372,704) (372,704) - (367,196) Total Non-operating Revenue (Expenses)(477,342) (477,342) (469,552) 7,790 (477,409) Change in Net Position - Budget Basis 307,431 106,721 799,589 692,868 548,727 Reconciliation to GAAP Basis: Adjustments: Loan principal repayment to Capital Projects Fund 372,704 367,196 Depreciation (347,114) (345,762) Capitalized assets 14,002 79,991 Total Adjustments 39,592 101,425 Change in Net Position - GAAP Basis 839,181 650,152 2019 Town of Vail, Colorado Enterprise Fund Timber Ridge 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, 2019 With Comparative Actual Amounts For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. F2 June 2, 2020 - Page 122 of 235 2018 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Charges and Fees: Dispatch service fee 669,590 669,590 669,590 - 659,608 Dispatching contracts 1,354,077 1,354,077 1,342,632 (11,445) 1,277,282 Other charges - - - - 13,622 Total Operating Revenues 2,023,667 2,023,667 2,012,222 (11,445) 1,950,512 Operating Expenses: Public Safety: Salaries and benefits 2,206,730 2,222,480 2,070,611 151,869 1,960,106 Operating expenses 533,884 533,884 450,156 83,728 468,263 Capital outlay - 181,080 - 181,080 432,221 Total Operating Expenses 2,740,614 2,937,444 2,520,767 416,677 2,860,590 Operating (Loss) - Budget Basis (716,947) (913,777) (508,545) 405,232 (910,078) Non-operating Revenues: Operating grant - E-911 Board 803,953 803,953 816,452 12,499 778,562 Other operating grants - - - - 403,000 Earnings on investments 6,168 6,168 32,266 26,098 22,678 Total Non-operating Revenues 810,121 810,121 848,718 38,597 1,204,240 Income (Loss) Before Transfers 93,174 (103,656) 340,173 443,829 294,162 Transfers In - 15,750 15,750 - - Change in Net Position - Budget Basis 93,174 (87,906) 355,923 443,829 294,162 Adjustments: Change in compensated absences (16,006) 17,101 Depreciation (127,778) (149,924) Capitalized assets - 432,221 Total Adjustments (143,784) 299,398 Change in Net Position - GAAP Basis 212,139 593,560 With Comparative Actual Amounts For the Year Ended December 31, 2018 2019 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, 2019 The accompanying notes are an integral part of these financial statements. F3 June 2, 2020 - Page 123 of 235 2018 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Charges and Fees: Operating charges 2,560,259 2,560,259 2,618,757 58,498 2,383,188 Replacement charges 789,799 789,799 733,837 (55,962) 712,767 Total - Charges and Fees 3,350,058 3,350,058 3,352,594 2,536 3,095,955 Other: Insurance reimbursements 10,000 10,000 37,993 27,993 9,128 Other - - 16,396 16,396 20,733 Total - Other 10,000 10,000 54,389 44,389 29,861 Total Operating Revenues 3,360,058 3,360,058 3,406,983 46,925 3,125,816 Operating Expenses: Public Works: Vehicle maintenance and fuel 2,772,489 2,777,355 2,555,247 222,108 2,410,867 Capital outlay 937,800 958,445 783,193 175,252 733,115 Total Operating Expenses 3,710,289 3,735,800 3,338,440 397,360 3,143,982 Operating Income (Loss) - Budget Basis (350,231) (375,742) 68,543 444,285 (18,166) Non-operating Revenues: Earnings on investments 7,900 7,900 46,230 38,330 20,568 Proceeds from sale of assets 189,170 189,170 100,466 (88,704) 99,015 Total Non-operating Revenues:197,070 197,070 146,696 (50,374) 119,583 Transfers In - 4,867 4,867 - - Change in Net Position - Budget Basis (153,161) (173,805) 220,106 393,911 101,417 Reconciliation to GAAP Basis: Adjustments: Contributed from other funds 105,611 265,882 Net book value of disposed assets (20,982) (14,313) Depreciation (794,078) (845,214) Change in accrued compensated absences (6,249) 10,440 Capitalized assets 783,193 733,115 Total Adjustments 67,495 149,910 Change in Net Position - GAAP Basis 287,601 251,327 With Comparative Actual Amounts For the Year Ended December 31, 2018 2019 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, 2019 The accompanying notes are an integral part of these financial statements. F4 June 2, 2020 - Page 124 of 235 2018 Variance Original Final Positive Budget Budget Actual (Negative) Actual Operating Revenues: Charges and Fees: Insurance premiums 4,450,000 4,450,000 4,400,000 (50,000) 3,950,000 Insurance premiums - Employee contributions 735,000 735,000 882,844 147,844 773,461 Total Operating Revenues 5,185,000 5,185,000 5,282,844 97,844 4,723,461 Operating Expenses: General Government: Health claims 4,282,775 4,282,775 3,567,754 715,021 3,961,664 Premiums 1,139,857 1,139,857 1,130,291 9,566 889,778 Administrative fees 40,500 40,500 43,649 (3,149) 20,594 Total Operating Expenses 5,463,132 5,463,132 4,741,694 721,438 4,872,036 Operating Income (Loss)(278,132) (278,132) 541,150 819,282 (148,575) Non-operating Revenues: Earnings on investments 25,000 25,000 93,295 68,295 45,396 Change in Net Position (253,132) (253,132) 634,445 887,577 (103,179) With Comparative Actual Amounts For the Year Ended December 31, 2018 2019 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, 2019 The accompanying notes are an integral part of these financial statements. F5 June 2, 2020 - Page 125 of 235 Heavy Health Equipment Insurance Fund Fund Total Assets: Current Assets: Equity in pooled cash and investments 2,168,777 4,477,611 6,646,388 Accounts receivable, net of allowance for uncollectibles 22,807 5,085 27,892 Inventory 290,686 - 290,686 Prepaid expenses - 500 500 Total Current Assets 2,482,270 4,483,196 6,965,466 Non-current Assets: Property, plant, and equipment, net of accumulated depreciation 5,237,064 - 5,237,064 Total Assets 7,719,334 4,483,196 12,202,530 Liabilities: Current Liabilities:. Accounts payable 89,889 502,268 592,157 Accrued salaries and wages 20,282 - 20,282 Current portion of compensated absences 15,689 - 15,689 Total Current Liabilities 125,860 502,268 628,128 Non-current Liabilities: Compensated absences, net of current portion 36,608 - 36,608 Total Liabilities 162,468 502,268 664,736 Net Position: Net investment in capital assets 5,237,064 - 5,237,064 Unrestricted 2,319,802 3,980,928 6,300,730 Total Net Position 7,556,866 3,980,928 11,537,794 Town of Vail, Colorado Internal Service Funds Combining Statement of Net Position December 31, 2019 The accompanying notes are an integral part of these financial statements. F6 June 2, 2020 - Page 126 of 235 Heavy Health Equipment Insurance Fund Fund Total Operating Revenues: Charges for services - Internal 3,352,594 4,400,000 7,752,594 Charges for services - External - 882,844 882,844 Insurance reimbursements 37,993 - 37,993 Other 16,396 - 16,396 Total Operating Revenues 3,406,983 5,282,844 8,689,827 Operating Expenses: Operations 2,561,496 43,649 2,605,145 Health claims and premiums - 4,698,045 4,698,045 Depreciation 794,078 - 794,078 Total Operating Expenses 3,355,574 4,741,694 8,097,268 Operating Income (Loss)51,409 541,150 592,559 Non-operating Revenues (Expenses): Gain (loss) on disposal of assets 79,484 - 79,484 Investment income 46,230 93,295 139,525 Total Non-operating Revenues (Expenses) 125,714 93,295 219,009 Income (Loss) Before Transfers and Capital Contributions 177,123 634,445 811,568 Transfers In 4,867 - 4,867 Capital Contributions, Net 105,611 - 105,611 Change in Net Position 287,601 634,445 922,046 Net Position - January 1 7,269,265 3,346,483 10,615,748 Net Position - December 31 7,556,866 3,980,928 11,537,794 Town of Vail, Colorado Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Position For the Year Ended December 31, 2019 The accompanying notes are an integral part of these financial statements. F7 June 2, 2020 - Page 127 of 235 Heavy Health Equipment Insurance Fund Fund Total Cash Flows From Operating Activities: Cash received from other funds 3,352,594 4,400,000 7,752,594 Other cash receipts 109,720 885,722 995,442 Cash paid for goods and services (1,449,495) (4,784,426) (6,233,921) Cash paid to employees (1,111,789) - (1,111,789) Net Cash Provided (Used) by Operating Activities 901,030 501,296 1,402,326 Cash Flows From Non-Capital Financing Activities: Transfer from (to) other funds 4,867 - 4,867 Net Cash Provided (Used) by Non-Capital Financing Activities 4,867 - 4,867 Cash Flows From Capital and Related Financing Activities: Cash received from sale of fixed assets 100,467 - 100,467 Acquisition and construction of capital assets (677,581) - (677,581) Net Cash Provided (Used) by Capital and Related Financing Activities (577,114) - (577,114) Cash Flows From Investing Activities: Interest on investments 46,230 93,295 139,525 Net Cash Provided (Used) by Investing Activities 46,230 93,295 139,525 Net Change in Cash and Cash Equivalents 375,013 594,591 969,604 Cash and Cash Equivalents - Beginning 1,793,764 3,883,020 5,676,784 Cash and Cash Equivalents - Ending 2,168,777 4,477,611 6,646,388 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss)51,409 541,150 592,559 Adjustments: Depreciation 794,078 - 794,078 (Increase) decrease in accounts receivable 55,331 2,878 58,209 (Increase) decrease in inventory (38,458) - (38,458) Increase (decrease) in accounts payable 27,677 (42,732) (15,055) Increase (decrease) in accrued wages and benefits 10,993 - 10,993 Total Adjustments 849,621 (39,854) 809,767 Net Cash Provided (Used) by Operating Activities 901,030 501,296 1,402,326 Schedule of Non-cash Investing, Capital and Financing Activities: Assets contributed by Capital Projects Fund 105,611 - 105,611 Town of Vail, Colorado Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2019 The accompanying notes are an integral part of these financial statements. F8 June 2, 2020 - Page 128 of 235 2018 Variance Project Final Positive Number Project Name Budget Actual (Negative) Actual CBI021 Donovan Park Pavilion 5,000 - 5,000 - CBI025 Colorado Ski Museum Renovation - - - 500,000 CBI026 Welcome Center Capital Maintenance 100,000 43,297 56,703 121,154 CBI027 Public Works Remodel 11,818,406 215,081 11,603,325 136,594 CEP002 Hybrid Bus Battery Replacement 388,716 - 388,716 43,056 CEP004 Replace Buses 265,024 3,382 261,642 2,964,563 CEP005 Hardware Purchases 113,927 101,204 12,723 86,074 CEP006 Radio Replacement 12,601 18,759 (6,158) 738,844 CEP007 Phone System Upgrade 45,077 - 45,077 118 CEP008 Parking Entry System 186,037 60,890 125,147 - CEP010 Network Upgrades 30,000 19,595 10,405 366,857 CEP011 Document Imaging 30,000 28,487 1,513 29,018 CEP018 Web and E-commerce 14,000 13,511 489 4,311 CEP019 Computer-Aided Dispatch (CAD/RMS) 141,000 63,261 77,739 44,906 CEP022 Audio Visual 88,000 44,553 43,447 164,038 CEP023 Video Cameras Patrol Cars 56,635 56,635 - CEP026 Fire Equipment 95,650 74,217 21,433 165,100 CEP030 Vehicle expansion 115,100 105,611 9,489 251,309 CEP031 Software Licensing 325,277 274,592 50,685 34,134 CEP033 Data Centers / Computer Rooms 2,432,449 726,400 1,706,049 1,722,390 CEP036 Business Systems 172,334 61,825 110,509 196,366 CEP038 Police Equipment 72,643 74,703 (2,060) 101,696 CEP042 Bus Camera System 15,000 15,060 (60) - CEP046 Library Self-Check System Updates - - - 36,135 CEP047 Event Equipment 77,892 77,643 249 CHF001 Buy-Down Housing 306,460 - 306,460 261,976 CHF002 Solar Vail 4,030,000 4,030,000 - - CHF003 Vail InDEED 5,935,533 3,137,808 2,797,725 1,659,726 CHF004 Employee Housing 362,000 326,875 35,125 309,636 CHP020 Chamonix Housing Development - - - 71,872 CHP022 Chamonix- Vail Homes 15,000 - 15,000 2,285,755 CMP007 Transportation Master Plan 30,000 - 30,000 - CMT003 Bus Shelter Replacement Program 30,000 237 29,763 27,048 CMT004 Capital Street Maintenance 1,225,000 692,573 532,427 834,558 CMT005 Facility Capital 690,518 418,351 272,167 299,338 CMT007 Parking Structure Maintenance 1,046,914 1,044,377 2,537 490,086 CMT009 Energy Enhancements 223,847 - 223,847 14,052 CMT010 Underground Utilities 646,675 200,005 446,670 1,491,391 CMT011 Vail Village Inn Homeowners Roof Assessmt 3,000 27,269 (24,269) CMT016 Public Works Wash Down 185,174 59,093 126,081 61,793 CMT017 Slifer Plaza Fountain and Storm Sewer 1,484,329 1,327,236 157,093 2,821,757 CMT018 Public Works Shop Building Maintenance 300,000 - 300,000 - CMT020 Liftside to Glen Lyon Underground Powerline 50,000 50,000 - - CMT021 Rockwall Mitigation 400,000 357,432 42,568 - CMT022 Seibert Fountain 400,000 42,000 358,000 - COT002 Street Light Improvement Program 75,000 5,355 69,645 64,919 COT004 Fiber-Optics in Buildings 90,000 77,979 12,021 26,620 COT015 Red Sandstone Parking Garage 2,614,596 1,474,162 1,140,434 12,095,586 COT021 I-70 Fiber Optics 35,000 - 35,000 - COT024 West Forest Road Bridge Repair 347,497 293,063 54,434 - COT025 Kinnickinnick(West) Bridge Repair 341,637 328,842 12,795 - COT027 Children's Garden of Learning Boiler Replacement 32,500 - 32,500 18,574 COT028 Concil Contribution- Vail Valley Foundation 55,000 55,000 - - COT030 Mill Creek Heated Sidewalk 125,000 24,420 100,580 - COT031 Civic Area Redevelopment 100,000 - 100,000 - CSC016 Guest Services Enhancements 225,900 189,780 36,120 503,922 CSC017 Pedestrian Safety Enhancements 1,479,116 7,347 1,471,769 20,884 CSC018 East Meadow Drive Snowmelt 750,000 558,021 191,979 471,033 CSC019 Transit Stop Improvements - - - 280,404 CSC020 Vail Trail Sidewalk Connection 95,000 93,475 1,525 - CSR007 Neighborhood Road Reconstruction 400,000 78,160 321,840 - CSR008 Neighborhood Bridges 2,332,542 1,904,355 428,187 21,564 CSR009 Frontage Road Enhancements VVMC 70,655 40,524 30,131 181,574 CSR010 West Vail Roundabout Repair 250,000 128,810 121,190 286,630 VRA010 I-70 Underpass 492,990 465,507 27,483 - VRA017 Lionshead Express Bus Stop Improvements 25,000 10,008 14,992 656,308 VRA018 Lionshead Parking Structure Landscape Renovations 30,291 - 30,291 69,709 VRA020 Heated Walk- Lionshead to First Chair - - - 314,185 VRA021 West lionshead Circle Crosswalk 250,000 47,394 202,606 - Total 44,182,942 19,574,164 24,608,778 33,347,560 2019 Town of Vail, Colorado Capital Projects Fund Schedule of Project Expenditures - Budget (GAAP Basis) and Actual For the Year Ended December 31, 2019 With Comparative Actual Amounts For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. F9 June 2, 2020 - Page 129 of 235 2018 Variance Project Final Positive Number Project Name Budget Actual (Negative) Actual CCF001 Golf Clubhouse Redevelopment 52,935 19,111 33,824 65,794 CCF002 Ford Park Fields Redevelopment 699,860 596,159 103,701 142,396 RFP005 Alpine Gardens Pledge 69,700 69,700 - 69,700 RFP007 Alpine Gardens Contribution - - - 38,768 RFP017 Ford Park Portal Improvements 2,540 - 2,540 21,328 RFP019 Ford Park Landscape Enhacement 67,000 66,111 889 - RMT001 Recreation Path Maintenance 68,139 79,639 (11,500) 14,347 RMT002 Tree Maintenance 65,000 64,739 261 30,403 RMT005 Street Furniture - Streetscape 97,334 64,865 32,469 17,767 RMT006 Eagle River Watershed Programs 42,000 42,000 - 45,450 RMT009 Park/Playground Capital Maintenance 135,000 84,892 50,108 213,959 RMT016 Ford Park / Tennis Center Improvements 72,000 - 72,000 - RMT018 Dobson Ice Arena 211,443 50,420 161,023 - RMT019 Gymnastics Center 60,000 1,392 58,608 14,496 RMT021 Golf Course Clubhouse & Other 65,000 39,093 25,907 RMT022 Recreation Enhancement Account (VRD) 373,348 - 373,348 - RMT024 Athletic Fields 6,000 - 6,000 - RMT025 Nature Center 433,950 50,428 383,522 228,790 RMT027 Golf Course - Other Improvements 687,792 459,919 227,873 735,745 RMT028 Flood Repairs 2,148,608 47,196 2,101,412 14,259 RMT030 East Vail Interchange Improvements 793,554 342,270 451,284 630,406 RMT032 Intermountain Fuels Reduction 42,142 - 42,142 32,186 RMT033 North Bike Path Reconstruction 235,000 1,620 233,380 - RMT034 Forest Health VHF Radios - - - 35,668 RFA001 Property Acquisition 670,000 14,860 655,140 152,687 RPI001 Playground Safety Improvements - 1,443 (1,443) RPI007 Streamtract Education 89,978 39,551 50,427 150,889 RPI008 East Vail Water Quality TAPS 90,365 24,943 65,422 1,034,746 RPI010 Water Quality Infrastructure 3,664,756 265,053 3,399,703 35,014 RPI011 Streambank Restoration 648,336 364,004 284,332 79,886 RPI012 Private Streambank 65,083 8,711 56,372 35,917 RPI013 Stephen's Park Improvements 300,000 7,695 292,305 - RPI014 Covered Bridge Rehabilitation 87,000 4,913 82,087 - RPI015 Turf Grass Reduction 35,364 35,364 - - RPT020 Open Lands - - - 38,197 RPT022 Adopt-a-Trail 5,000 5,000 - - RPT023 Gore Valley Trail Reconstrcution 25,000 - 25,000 271,625 RPT024 Gore Valley Trail Realignment 86,861 19,679 67,182 - RPT025 Vail Valley Drive Path Extension 800,000 49,220 750,780 - RPT026 Gore Valley Trail Bridge Replacement 300,000 75,694 224,306 - RRT001 Public Art 597,798 59,775 538,023 139,534 RRT006 Public Art - Winterfest 68,085 43,991 24,094 23,594 RRT007 Public Art - Pete Seibert Memorial 300,000 300,000 - - RRT008 Nature Center Operations 90,000 75,036 14,964 - RRT009 Public Art- Art Space 50,000 12,456 37,544 - RSS006 Vail Transit Center Landscape 107,133 - 107,133 17,867 Total 14,509,104 3,486,942 11,022,162 4,331,417 2019 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, 2019 With Comparative Actual Amounts For the Year Ended December 31, 2018 The accompanying notes are an integral part of these financial statements. F10 June 2, 2020 - Page 130 of 235 LOCAL HIGHWAY FINANCE REPORT June 2, 2020 - Page 131 of 235 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 2019 This Information From The Records Of Town of Vail: Prepared By: Carlie Smith Phone:970-479-2118 A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway- Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes AMOUNT AMOUNT A. Receipts from local sources: A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2) 3,134,655 a. Motor Fuel (from Item I.A.5.) 2. Maintenance: 2,477,677 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 405,479 2. General fund appropriations 7,531,531 b. Snow and ice removal 1,417,132 3. Other local imposts (from page 2) 1,010,143 c. Other 4. Miscellaneous local receipts (from page 2) - d. Total (a. through c.) 1,822,611 5. Transfers from toll facilities 4. General administration & miscellaneous 461,237 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 1,592,222 a. Bonds - Original Issues 6. Total (1 through 5) 9,488,403 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.) - a. Interest 7. Total (1 through 6) 8,541,674 b. Redemption B. Private Contributions 658,599 c. Total (a. + b.) - C. Receipts from State government 2. Notes: (from page 2) 288,130 a. Interest D. Receipts from Federal Government b. Redemption (from page 2) - c. Total (a. + b.) - E. Total receipts (A.7 + B + C + D)9,488,403 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)9,488,403 Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total)- 1. Bonds (Refunding Portion) B. Notes (Total)- A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation - 9,488,403 9,488,403 - - Notes and Comments: FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) 1 AND STREET PURPOSES ITEM ITEM (Show all entries at par) V. LOCAL ROAD AND STREET FUND BALANCE 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 F11 June 2, 2020 - Page 132 of 235 STATE: Colorado YEAR ENDING (mm/yy): December 2019 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 1,010,143 g. Other Misc. Receipts 6. Total (1. through 5.) 1,010,143 h. Other c. Total (a. + b.) 1,010,143 i. Total (a. through h.) - (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 260,384 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 27,746 d. Federal Transit Admin d. Other (Specify) e. U.S. Corps of Engineers e. Other (Specify) f. Other Federal f. Total (a. through e.) 27,746 g. Total (a. through f.) - 4. Total (1. + 2. + 3.f) 288,130 3. Total (1. + 2.g) (Carry forward to page 1) ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTAL SYSTEM SYSTEM (a) (b) (c) A.1. Capital outlay: a. Right-Of-Way Costs - - b. Engineering Costs 145,183 145,183 c. Construction: (1). New Facilities - (2). Capacity Improvements - (3). System Preservation 2,989,472 2,989,472 (5). Total Construction (1) + (2) + (3) + (4) - 2,989,472 2,989,472 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5) - 3,134,655 3,134,655 (Carry forward to page 1) Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE 2 III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL LOCAL HIGHWAY FINANCE REPORT II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL ITEM ITEM ITEM ITEM F12 June 2, 2020 - Page 133 of 235 UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE June 2, 2020 - Page 134 of 235 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Tables I, II and III December 31, 2019 2013 2014 2015 2018 2019 Pledged Revenues 3,541,546 3,673,030 4,221,743 5,124,621 5,467,621 Valuation Valuation Total Assessed Percent Allocable Allocable Levy Year Collection Year Valuation Change to Base to Increment 2014 2015 175,857,330 8.5% 99,317,520 76,539,810 2015 2016 178,203,030 1.3% 99,314,850 78,888,180 2016 2017 212,494,370 19.2% 115,130,090 97,364,280 2017 2018 216,549,720 1.9% 115,130,090 101,419,630 2018 2019 253,332,420 17.0% 134,268,000 119,064,420 Tax Areas 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 202 45.2100 51.1300 51.6980 51.951 50.919 203 44.1460 49.7500 50.3960 50.648 49.726 204 55.7010 61.4300 60.8500 60.025 56.576 206 45.5210 51.1300 51.6980 51.951 50.919 207 80.5210 86.1300 86.6980 86.951 85.919 208 67.3960 73.0100 73.5730 73.826 72.794 216 - - - - - 225 - - - - - TABLE I Vail Reinvestment Authority History of Pledged Revenues TABLE II Vail Reinvestment Authority History of Assessed Valuations TABLE III Mill Levies Affecting Property Owners within the Vail Reinvestment Authority Plan Area G1 June 2, 2020 - Page 135 of 235 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement of Tables to be Updated Tables IV and V December 31, 2019 2019 Preliminary Percentage of Total Taxpayer Name Assessed Valuation Assessed Valuation Diamondrock LLC 42,688,980 16.9% Arrrabelle at Vail Square LLC 28,646,250 11.3% Ritz-Carlton Development Co Inc 10,299,710 4.1% Lion Vail LLC 8,437,090 3.3% Vail Corp 5,489,360 2.2% Lazier Lionshead LLC 3,467,770 1.4% A Belle Vail Co LLC 3,106,350 1.2% Vail Marriott Resort & Spa 2,759,110 1.1% Blue Ice 21 LLC 2,347,920 0.9% SOHO Development LLC 2,172,880 0.9% Landmark Commercial Dev Co 1,940,440 0.8% Total 253,332,420 Total Percentage of Total Class Assessed Valuation Assessed Valuation Residential 146,953,420 58% Commercial 105,273,930 42% Vacant 948,590 0% State assessed 156,480 0% Total 253,332,420 100% 2019 Preliminary Assessed Valuation of Classes of Property in the Authority TABLE V Largest Taxpayers in the Authority TABLE IV G2 June 2, 2020 - Page 136 of 235 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement Tables to be Updated Table VI December 31, 2019 2015 2016 2017 2018 2019 Revenues: Other: Property tax 3,837,261 3,959,506 4,514,083 5,475,660 5,825,058 Interest on investments 937 2,062 3,273 4,045 3,793 Interest subsidy (Build America Bonds) 167,896 168,246 168,427 169,059 164,876 Total Revenues 4,006,094 4,129,814 4,685,783 5,648,764 5,993,727 Expenditures: Economic Development: Administration 67,167 69,772 80,715 98,604 105,654 Fiscal agent fees 2,420 2,420 2,420 2,420 1,470 Treasurer's fees 115,121 118,789 135,427 164,416 174,754 Professional fees 11,623 2,810 8,087 2,895 1,445 Vail Square Metro District 464,548 456,784 464,039 524,143 526,106 Total Economic Development:660,879 650,575 690,688 792,478 809,429 Debt Service: Principal 490,000 500,000 515,000 535,000 555,000 Interest 577,928 564,928 547,753 526,753 501,432 Total Debt Service:1,067,928 1,064,928 1,062,753 1,061,753 1,056,432 Total Expenditures 1,728,807 1,715,503 1,753,441 1,854,231 1,865,861 Excess (Deficiency) of Revenues Over Expenditures 2,277,287 2,414,311 2,932,342 3,794,533 4,127,866 Other Financing Sources (Uses): Transfers out (2,757,636) (3,546,063) (4,179,718) (4,599,998) (3,804,281) Total Other Financing Sources (Uses)(2,757,636) (3,546,063) (4,179,718) (4,599,998) (3,804,281) Net Change in Fund Balance (480,349) (1,131,752) (1,247,376) (805,465) 323,585 Fund Balance - January 1 5,924,250 5,443,901 4,312,149 3,064,773 2,259,308 Fund Balance - December 31 5,443,901 4,312,149 3,064,773 2,259,308 2,582,893 TABLE VI History of Revenues, Expenditures and Changes in Fund Balance Vail Reinvestment Authority G3 June 2, 2020 - Page 137 of 235 Town of Vail, Colorado Issuer's Annual Report Update of Official Statement of Tables to be Updated Tables VII and VIII December 31, 2019 2019 2019 2020 Budget Actual Budget Revenues: Other: Property tax 5,813,000 5,825,058 6,067,000 Interest on investments 2,615 3,793 2,492 Interest Subsidy (Build America Bonds) 167,444 164,876 165,082 Total Revenues 5,983,059 5,993,727 6,234,574 Expenditures: Economic Development: Administration 105,460 105,654 110,000 Fiscal agent fees 2,800 1,470 2,800 Treasurer's fees 174,390 174,754 182,010 Professional fees 10,000 1,445 10,000 Vail Square Metro District 523,800 526,106 549,990 Total Economic Development:816,450 809,429 854,800 Debt Service: Principal 555,000 555,000 575,000 Interest 501,432 501,432 471,662 Total Debt Service:1,056,432 1,056,432 1,046,662 Total Expenditures 1,872,882 1,865,861 1,901,462 Excess (Deficiency) of Revenues over Expenditures 4,110,177 4,127,866 4,333,112 Other Financing Sources (Uses): Transfers out (3,804,281) (3,804,281) (2,550,000) Net Change in Fund Balance 305,896 323,585 1,783,112 Fund Balance - January 1 2,259,308 2,259,308 2,565,203 Fund Balance - December 31 2,565,204 2,582,893 4,348,315 Outstanding Issue Principal Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010B 7,715,000$ Total 7,715,000$ TABLE VII 2019 Budget Summary and Actual Comparison / 2020 Budget Vail Reinvestment Authority TABLE VIII Outstanding Revenue Obligations G4 June 2, 2020 - Page 138 of 235 SINGLE AUDIT REPORTS AND SCHEDULES June 2, 2020 - Page 139 of 235 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 H1 M & A INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Mayor and Members of Town Council Town of Vail, Colorado We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Vail, Colorado (the “Town”) as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements and have issued our report thereon dated May 27, 2020. Internal Control Over Financial Reporting In planning and performing our audit on the financial statements, we considered the Town’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Town’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Town’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe that a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. June 2, 2020 - Page 140 of 235 INDEPENDENT AUDITOR'S REPORT To the Mayor and Members of Town Council Town of Vail, Colorado H2 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Town’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. McMahan and Associates, L.L.C. Avon, Colorado May 27, 2020 June 2, 2020 - Page 141 of 235 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 H3 M & A INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Mayor and Members of Town Council Town of Vail, Colorado Report on Compliance for Each Major Program We have audited the compliance of the Town of Vail, Colorado’s (the “Town”) with the types of compliance requirements described in the U.S. Office of Management and Budget’s Compliance Supplement that could have a direct and material effect on each of the Town’s major federal programs for the year ended December 31, 2019. The Town’s major federal programs are identified in the Summary of Auditor’s Results section of the accompanying Schedule of Findings and Questioned Costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the Town’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United State, and Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (the “Uniform Guidance”). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Town’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination on the Town’s compliance with those requirements. June 2, 2020 - Page 142 of 235 INDEPENDENT AUDITOR'S REPORT To the Mayor and Members of Town Council Town of Vail, Colorado H4 Opinion on Each Major Federal Program In our opinion, the Town complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2019. Report on Internal Control Over Compliance Management of the Town is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit, we considered the Town’s internal control over compliance with types of requirements that could have a direct and material effect on each major federal program to determine our auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do no express an opinion on the effectiveness of the Town’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charges with governance. Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report in internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. McMahan and Associates, L.L.C. Avon, Colorado May 27, 2020 June 2, 2020 - Page 143 of 235 Town of Vail, Colorado, Colorado SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2019 H5 Part I – Summary of Auditor’s Results Financial Statements: Type of auditor’s report issued Unmodified Internal control over financial reporting: Material weakness identified None noted Significant deficiency identified None noted Noncompliance material to financial statements noted None noted Federal Awards: Internal control over major programs: Material weakness identified None noted Significant deficiency identified None noted Type of auditor’s report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in accordance with Title 2, U.S. Code of Federal Regulations, Part 200 No Major programs: Highway Planning and Construction CFDA #20.205 Dollar threshold used to identify Type A from Type B programs: $750,000 Identified as low-risk auditee Yes Part II – Findings Related to Financial Statements Findings related to financial statements as required by Government Auditing Standards None noted Auditor-assigned reference number Not applicable Part III – Findings Related to Federal Awards Internal control findings None noted Compliance findings None noted Questioned costs None noted Auditor-assigned reference number Not applicable June 2, 2020 - Page 144 of 235 Town of Vail, Colorado SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2019 H6 There were no findings for the year ended December 31, 2018. June 2, 2020 - Page 145 of 235 Pass-through Federal Entity CFDA Identifying Clusters of Program Title Number Number Expenditures Programs U.S. Department of Transportation: Passed through Colorado Department of Transportation: Highway Planning and Construction cluster: Highway Planning and Construction 20.205 15-HA3-75418 894,898$ 894,898 Total - U.S. Department of Transportation 894,898 U.S. Department of Justice: Passed through Colorado Department of Public Safety: Bulletproof Vest Grant 16.607 n/a 2,241 Total - U.S. Department of Justice 2,241 TOTAL 897,139$ Note 1. Basis of Presentation: The Schedule of Expenditures of Federal Awards includes the federal grant activity of the Town of Vail (the "Town") and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the "Uniform Guidance"). Therefore, some amounts presented in this schedule or used in this schedule may differ from amounts presented in or used in the preparation of the Town's general purpose financial statements. Note 2. Determining the Value of Non-cash Awards Expended: The Town had no non-cash awards expended during 2019. Note 3. Indirect Facilities and Administration costs The Town does not use the 10% de minimis cost rate allowed in in §200.414, Indirect (F&A) Costs , of the Uniform Guidance. Instead, the Town prepares an annual cost allocation plan to allocate indirect costs. Town of Vail Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2019 Notes to the Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2019 H7 June 2, 2020 - Page 146 of 235 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: 2020 S emi-Annual Update on Housing - Progress Towards the Goal P RE S E NT E R(S ): George Ruther, Housing Director and Steve L indstrom, Chair, Vail L ocal Housing A uthority AC T IO N RE Q UE S T E D O F C O UNC I L: F or information only - no action is requested B AC K G RO UND: The Vail Housing 2027 S trategic Plan was adopted by the Vail Town Council in S eptember of 2017. To ensure progress towards the adopted housing goal a performance measured was put in place obligating the Vail L ocal Housing Authority and the Town's Housing Department to provide an update to the Vail Town Council twice annually. T he purpose of this presentation is to honor that obligation and demonstrate progress towards the goal. AT TAC H ME N TS: Description 2020 Semi Annual Update on Housing Housing2027HallwayDisplay E H U Compliance Status Update June 2, 2020 - Page 147 of 235 PRESENTATION BY George Ruther, Housing Director Steve Lindstrom, Chair, VLHA 2020 SEMI-ANNUAL UPDATE ON HOUSING Progress Towards the Goal June 2, 2020 - Page 148 of 235 Topics Presented •Vail HOME Partners •2020 YTD Results •2020 Initiatives and Actions •Progress Towards the Goal Town of Vail | Semi Annual Update | vailgov.com June 2, 2020 - Page 149 of 235 Vail HOME Partners •Collaborative partnership between the Vail Town Council and the Vail Local Housing Authority •Shared vision, mission, and goals •Public awareness Town of Vail | 2020 Semi Annual Update | vailgov.com June 2, 2020 - Page 150 of 235 2020 YTD Results •26 Vail InDeed applications reviewed •12 new deed restrictions required •Two deed exchanges (2x) •292 deed restriction verifications letters sent -16 non-compliant Town of Vail | 2020 Semi Annual Update | vailgov.com June 2, 2020 - Page 151 of 235 2020 Initiatives and Actions •Completed feasibility study of CDoT Parcel in East Vail •Temporary Rental Relief Program at Timber Ridge Village Apartments •Negotiated the Middle Creek at Vail ground lease and security deposit release agreements Town of Vail | 2020 Semi Annual Update | vailgov.com June 2, 2020 - Page 152 of 235 2020 Initiatives and Actions •Leading the seven-step alternative housing sites •Lead a long-term housing funding source discussion •Advised Avon Town Council on Avon InDEED Program •Coordinating the sale of two Chamonix Vail Townhomes Town of Vail | 2020 Semi Annual Update | vailgov.com June 2, 2020 - Page 153 of 235 Progress Towards the Goal “The Town of Vail will acquire 1,000 additional resident housing unit deed restrictions by the year 2027” •12 new deed restrictions YTD •$828,730 invested YTD •311 Vail residents •905 total deed restrictions (+30%) Town of Vail | 2020 Semi Annual Update | vailgov.com June 2, 2020 - Page 154 of 235 Looking to the Future •Alternative housing sites initiative •Town -wide housing database •Long-term rental incentives •Online deed restriction verification •Administrative penalties and fees •Informational wall display Town of Vail | 2020 Semi Annual Update | vailgov.com June 2, 2020 - Page 155 of 235 Thank you June 2, 2020 - Page 156 of 235 June 2, 2020 - Page 157 of 235 Memorandum To: Vail Town Council From: Lynne Campbell, Housing Coordinator Date: June 2, 2020 Subject: 2019 Deed-Restricted Employee Housing Compliance Status Report I. SUMMARY The Town of Vail Housing Department is charged with verifying compliance of more than 888 deed-restricted properties in the Town of Vail, annually. As a courtesy, Housing staff sent affidavit forms to deed-restricted property owners on December 13, 2019 reminding each of their obligation to provide documentation demonstrating compliance by no later than February 1, 2020, per the terms of the recorded deed-restrictions. As of June 2, 2020, 16 owners are non-compliant. Of those 16 owners, 15 were also non-compliant last year. The following owners are out of compliance with their Employee Housing Unit (EHU) deed restriction. OWNER LEGALDESC ADDRESS Juergen Krogmann Vail Das Schone Filing 1 Block F Lot 1 2575 Davos Trail Matthew & Tabitha Anderson Vail Intermountain Block 2 Lot 2 2635 B Larkspur Ln. May Family Trust ETAL Gore Creek Subdivision Block 2 Lot 16 5137 Black Gore Dr. Ross & Heather Sappenfield Vail Intermountain - Lodges at Timbercreek D-25 2897 Timber Creek Dr. Unit D-25 Stephen Botts Lion's Ridge Filing 1 Simba Run Unit 1201 1100 N. Frontage Rd. Unit 1201 Elizabeth Maio Eastern Valley Condominiums Unit 1 (AKA A- 43) 1486 Buffehr Creek Rd. No. 1 Marissa K. Bates Vail Das Schone Filing 1 Block E Lot 9 2567 Arosa Dr. Steven E. & Erin E. Lepper II Columbine North Building B, Unit 2 2843 Kinnikinnick Rd. Unit 2- B June 2, 2020 - Page 158 of 235 Town of Vail Page 2 Andrew B. Benedict Vail Commons Condo C11 2092 Zermatt Ln. Unit A Blanca Patricia Ruiz Smith Vail Commons Condo C12 2092 Zermatt Ln. Unit B David & Jennifer Riddle Chamonix Vail Community Unit 20 2381 Upper Traverse Wy. Unit A J.R. & Marisa Rulapaugh Vail Commons Condo B2 2085 Zermatt Ln. Unit B Jackie Snook Chamonix Vail Community Unit 6 2373 Lower Traverse Wy. Unit A Jeffrey F. & Earlene Storz Vail Commons Condo A2 2084 Zermatt Ln. Unit B Rebecca & Bryan Hunt Vail Ridge Subdivision Block C Lot 8 2657 Arosa Dr. Unit B Sean P. Clifford Vail Commons Condo C9 2092 Zermatt Ln. Unit C June 2, 2020 - Page 159 of 235 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: A lternate Housing S ite Presentation P RE S E NT E R(S ): George Ruther, Housing Director AC T IO N RE Q UE S T E D O F C O UNC I L: No action is recommended at this time B AC K G RO UND: On May 16th, the Town staf f presented an overview of the alternate housing site plan to the Vail Town Council. T his presentation provides a more in depth overview of potential options and strategies for implementation. T he purpose of this presentation is to provide an update on the progress of the Vail Town Council’s initiative to explore an alternate path to achieving the Town’s adopted housing and environmental stewardship goals. T he staff memorandum highlights a draft alternate housing site plan and outlines strategies for implementation. S TAF F RE C O M M E ND AT IO N: A series of recommended actions is outlined in S ection 3 of the memorandum. E ach of the actions recommended is intended to advance the proposed alternate housing plan, and its many pieces, forward. AT TAC H ME N TS: Description Alternate Housing Site Presentation Memorandum 06022020 Vail Housing 5 Year Strategic Plan Narrative for Town Council 5 19 20 PA Architects - Vail Gymnastics Center 4.19.2020 Vail Gymnastics Center Renovations Meeting Results 05262020 Copy of TO V Housing Milestone Schedule June 2, 2020 - Page 160 of 235 To: Vail Town Council From: George Ruther, Housing Director Date: June 2, 2020 Re: Alternate Housing Site Plan – Strategies for Implementation and Update on Progress 1. SUMMARY The purpose of this memorandum is to provide an update on the progress of the Vail Town Council’s initiative to explore an alternate path to achieving the Town’s adopted housing and environmental stewardship goals. Since announcing their intent to explore alternate paths forward following the approval of the Booth Heights development in East Vail, the Vail Town Council has met regularly in executive session to instruct negotiators on potential alternatives. This memorandum highlights a draft alternate housing site plan and outlines strategies for implementation. In doing so, the following topics will be presented and discussed: • Sequence of Alternate Housing Site Plan Implementation • Presentation of Renovation and Feasibility Studies for Vail Gymnastics Center • Amended Professional Services Agreements for Pre-Construction Services, Etc • Memorandum of Understanding by and between Town of Vail, Vail Resorts, and Triumph Development • Detailed six-month timeline for implementation 2. BACKGROUND The Town has adopted goals and policies for maintaining and sustaining community in Vail through the acquisition of new deed restrictions for housing, protection from the hazards and risks associated with wildfire, and for wildlife habitat protection and environmental stewardship. By design, the adopted goals and polices are intended to be complimentary and supportive of one another. While priorities may change from time to time, no one single set of goals or policies is more important than another. A healthy balance amongst all the Town’s goals needs to be maintained. The Town’s goals are adopted with achievement in mind. For that reason, when goals are adopted, quantifiable measurements are established to track progress towards achieving the goal. In the instance of housing in Vail, the Vail Town Council and Vail Local Housing Authority have established a measurable goal of acquiring 1,000 new deed restrictions by the year 2027. As it pertains to wildlife habitat protection and environmental stewardship, a measurable goal of ensuring that habitat is maintained to current or improved levels of biological health as measured by indicator species and land use has been adopted. Presently, implementation June 2, 2020 - Page 161 of 235 Town of Vail Page 2 actions are in place which are advancing the Town towards achieving both its housing and environmental stewardship goals. A series of actions have been identified to aid the Town in achieving its adopted goals as they relate to an alternate plan for the immediate development of the Booth Heights parcel. This includes wildfire fuels reduction, wildlife habitat improvements, and opportunities to development housing on certain town-owned properties. The information below highlights a number of housing-related actions currently underway to advance the alternate housing plan forward. These specific actions, as well as an update on progress of each, includes: A. Sequence of Alternate Housing Site Plan Implementation A draft 5-year action plan for implementing an alternate housing site plan has been prepared. The plan not only articulates an alternate housing site plan for the immediate development of the Booth Heights parcel, it also outlines opportunities to complete wildfire fuels reduction and wildlife habitat restoration and address other community needs. While far from final, the draft plan outlines a possible path forward which presently has favorably support from Vail Resorts and Triumph Development. A copy of the seven-step draft plan, dated June 2, 2020, has been attached for reference B. Presentation of Renovation and Feasibility Studies for Vail Gymnastics Center A key consideration of the draft alternate housing site plan is the potential renovation of the Vail Gymnastics Center into a new, multiple use facility for both gymnastics and early childhood education. Again, far from being final, the Town has hired local professionals Pierce/Austin Architects and RA Nelson to aid in the schematic design of a renovated facility. Additionally, a working group of technical experts and primary stakeholders, including Children’s Garden of Learning, Red Sandstone School and Vail Recreation District representatives, has been created to further understand the future potential of a new, multiple use facility. A copy of the schematic design and conceptual plans, including a more detailed narrative has been attached for reference. C. Amended Professional Services Agreements for Design Development, Pre- Construction Services, etc. As mentioned above, the Town has retained the professional consulting services of local professionals to aid in better understanding the opportunities afforded as a result of an alternate housing plan. If the Town Council wishes to continue forward with the initiative to explore of alternate housing sites additional professional consulting services will be needed. For instance, additional consulting services will be needed in the following areas: • Legal • Surveying • Pre-construction • Traffic • Design and Architecture • Civil Engineering • Code Compliance, Life/Safety • State Licensing • Structural Design June 2, 2020 - Page 162 of 235 Town of Vail Page 3 • MEP D. Memorandum of Understanding by and between Town of Vail, Vail Resorts, and Triumph Development On January 16, 2020, Vail Mayor Dave Chapin announced that the Town of Vail had approached representatives from Vail Resorts and Triumph Development with the objective of exploring an alternate approach to the Booth Heights development approved for East Vail. In doing so, it was acknowledged that the desire of the Town was to pursue a win-win outcome that achieved a balance between the adopted housing and environmental stewardship goals. Since the onset of this initiative, it has been understood that the three parties would need to execute various agreements to effectuate any mutually accepted alternate housing plan. To that end, presuming the three parties wish to move forward with an alternate plan, a memorandum of understanding (MOU) is recommended. An MOU is intended to express the convergence of will between the parties to achieve a shared set of desired outcomes or actions. In this instance, the MOU would serve as a non-binding agreement between the parties allowing each to act in good faith and invest in the alternate housing plan until such time as more formal agreements are needed. On May 15, 2020, Triumph Development shared a written response to the proposal forwarded by the Town on April 29, 2020. The Town’s initial proposal, plus Triumph’s response, would serve as a basis for a future MOU. E. Present a detailed six-month timeline for implementation Two detailed timelines for action and implementation have been drafted. One outlines the timeline needed to achieve housing on Lot 3, Middle Creek by November/December 2022 consistent with Triumph’s request, and the second outlines a less aggressive schedule, but still achieves all of the desired outcomes, only on a longer schedule. Both timelines were drafted with several key milestones and critical path items in mind. The milestones and critical path include: • Wildfire fuels reduction and wildlife habitat restoration permitting and implementation • Middle Creek at Vail Amended Land Lease and Minor Subdivision • Negotiate/Document MOU, Legal Agreements, Extension of Entitlements • Vail Gymnastics Center Renovations • Lot 3, Middle Creek Housing Development • Timber Ridge Village Apartments Redevelopment A copy of the two draft timelines have been attached for reference. 3. RECOMMENDATION Based upon the information provided, the Town staff recommends the following: • Continue efforts underway towards receiving the proper permits and approvals needed for the wildfire fuels reduction and wildlife habitat restoration work and implement the seven phases of work. June 2, 2020 - Page 163 of 235 Town of Vail Page 4 • Complete the land lease amendment and minor subdivision work underway with Coughlin & Company • Initiate the steps necessary and implement a public process to discuss the renovation of the Vail Gymnastics Center • Continue efforts currently underway with the Vail Gymnastics Center Renovation working group and provide regular updates • Meet with Vail Resorts and Triumph Development to begin drafting a MOU by and between the parties • Prepare a probable cost estimate based upon schematic design and conceptual plans for Vail Gymnastics Center renovations • Continue to explore the development potential of Lot 3, Middle Creek as a future housing site • Prepare and present a proposed budget on June 16th for additional professional consulting services June 2, 2020 - Page 164 of 235 1 “HOME DELIVERY” Ensuring homes for both people and wildlife A 5-YEAR STRATEGIC ACTION PLAN June 2, 2020 A draft 5-Year Strategic Action Plan has been prepared recommending a series of actions the Town can take to realize a net increase of more than 450 new deed restrictions acquired in the Town of Vail by the year 2025 while pursuing wildfire fuels reduction and bighorn sheep habitat improvements in East Vail. This draft strategic action plan relies upon public/private partnerships and focuses primarily on 8 sites which include: • Vail Gymnastics Facility (545 North Frontage Road W) • Children’s Garden of Learning (129 N Frontage Rd W) • Middle Creek at Vail (145 N Frontage Rd W) • Timber Ridge Village Apartments (1281 N Frontage Rd W) • CDoT East Vail Parcel (4313 Spruce Way) • Booth Height Approved Development (3700 N Frontage Rd E) • West Middle Creek Parcel (unassigned; between 165 and 501 N Frontage Rd W) • Middle Bench (unassigned; between 1543 and 1593 Upper Matterhorn Circle) Each of the sites listed above serves a critical role towards successfully realizing several adopted community goals and objectives. These goal areas, including: • housing, • environmental sustainability, • community sustainability, and • economic development are vital to the long-term health and vibrancy of the community and the viability of this plan. To that end, no single goal is greater than the any other. Instead, the sum of the goals is greater than each of its parts and must be approached accordingly. This plan only succeeds with a holistic approach. The list of sites highlighted above is not to be considered all-inclusive. There are additional sites and a far greater number of opportunities to be considered and evaluated over time. Many of the additional sites and opportunities exist either down valley or as smaller one-off types of developments. A more comprehensive list of sites, actions and opportunities should be generated and will be required to achieve the goal of acquiring 1,000 net new deed restrictions by the year 2027. The list of sites above and the corresponding 7-step implementation process outlined below provides an immediate term response to an opportunity presently afforded the Town of Vail. Each of the 7-steps outlined are focused on a 5-year timeframe beginning on or about May 1, 2020 and extending out to May 1, 2025. Once implemented, and as proposed, the Town will have acquired as many as 735 of the total 1,000 new deed restrictions desired. This projection does not account for any additional deed restrictions acquired through other programs and initiatives such as Vail InDEED or impacts of development mitigation. The 7-step process of the Vail Housing 5-Year Strategic Plan are outlined below: June 2, 2020 - Page 165 of 235 2 STEP #1 -BIGHORN SHEEP HABITAT RESTORATION • Phase 1 & 2 - Finalize National Environmental Policy Act (NEPA), Environmental Assessment contract with SE Group, USFS and GIS/Mapping– (1 month - May 2020) • Phase 3- Technical Reporting – Field assessments, desk assessments, study, (3 months - June 2020 - August 2020) o Wildlife/Vegetation/Wetlands o Silviculture/Fuels for proposed action o Hydrology o Cultural o Scenery o Recreation o Traffic o Air Quality • Phase 4: Scoping – Develop the Proposed Action and Analysis Area – (30 day posting requirement) Prepare the EA over late fall through end of 2020, release document full EA draft decision document, public comment period (8 months - September 2020 - April 2021) • Phase 5: EA and Draft Decision Document Preparation (1 month - April 2021) • Phase 6: Objection Period and Final Decision Document Preparation (3 months - July 2021 – September 2021) • Phase 7: Implementation o USFS permitting, planning, staffing for prescribed fire, mechanical treatment, (6 months – October 2020 – March 2021) o Communications, public outreach/open house – (2 months – January 2021 – February 2021 o Large-scale prescribed fire (helicopter) over 2 days and/or mechanical treatment (dependent upon outcome of Environmental Assessment) – (2 months April 2022 – May 2022 Note – The Vail Fire Department will continue mechanical treatment (above Bald Mountain Townhomes to Booth Creek) and prescribed fire on town-owned land and CDOT property as conditions allow (2 months - April 2021 - May 2021) STEP #2 - MIDDLE CREEK at VAIL LAND LEASE Middle Creek at Vail amended land lease negotiations – (three objectives): 1) to allow for long-term (> 12 months) master leasing 2) to allow for future vehicular access to West Middle Creek parcel. 3) remove Children’s Garden of Learning site from leasehold area. Amended and restated land lease agreement and minor subdivision completed – (2 month – May 2020 to June 2020) June 2, 2020 - Page 166 of 235 3 STEP #3 – HOUSING ZONE DISTRICT APPROVALS Available land resources remain as a barrier to achieving the Town’s adopted housing goal. For obvious reasons, infill development within existing neighborhoods is the preferred approach to increasing the supply of deed-restricted homes in the community. The Housing (H) District has proven to be the surest way to ensure the future development of deed-restricted homes. To that end, additional sites in Vail need to be zoned to the Housing (H) District to ensure future opportunities exist to acquire net new deed restrictions. Those sites include: • CDoT East Vail Parcel – 20 to 30 new deed restrictions • West Middle Creek – 125 to 175 new deed restrictions • Middle Bench – 20 to 30 new deed restrictions Initiate a rezoning application to rezone each of the parcels listed above to the Housing (H) District (3 months – June 2020 to August 2020) STEP #4 - VAIL GYMNASTICS FACILITY SITE Approve Vail Recreation District lease of Vail Gymnastics Facility (2 month - June 2020 to July 2020) Design and entitlement process (phased permits required) to renovate Vail Gymnastics Facility into a new, multiple use facility including gymnastics and an early childhood education center - (6 months – June 2020 to December 2020) Renovate Vail Gymnastics Facility into new multiple use facility - (12 months - October 2020 to October 2021) Children’s Garden of Learning permanently relocated to newly renovated multiple use building. New Children’s Garden of Learning completed and available for occupancy – (October 2021) STEP #5 – LOT 3, MIDDLE CREEK SITE Vacate Children’s Garden of Learning building demolish to provide site for new +/- 150 home deed- restricted apartment building (+/- 60,000 sq. ft.) Design and entitlement process to develop new apartment building (14 months – August 2020 to October 2021) Begin construction on new apartment building – (October 2021) New apartment building completed and available for occupancy – 14 months duration – (November 2022) June 2, 2020 - Page 167 of 235 4 STEP #6 - TIMBER RIDGE VILLAGE APARTMENTS SITE Timber Ridge Village Apartments redevelopment to include a minimum of 220 new deed-restricted homes and a new, 8,000 square feet multi-use community facility. Negotiate Memorandum of Understanding/First Option – (2 months - July 2020 to August 2020) Design and entitlement process to redevelop Timber Ridge Village Apartments and new multi-use community facility Begin construction on redeveloped Timber Ridge Village Apartments – (May 2022) New Timber Ridge Village Apartments completed and available for phased occupancy – 18 to 20 months duration (November 2023 – January 2024) STEP #7 - BOOTH HEIGHTS DEVELOPMENT SITE Title to Booth Heights Development site to remain with Vail Resorts/Triumph Development. Approve development agreement extending entitlements until such time as habitat restoration is complete and 1,000 new deed restrictions goal is achieved – 3 months (June 2020 to August 2020) BENEFITS OF THE DRAFT 5-YEAR STRATEGIC ACTION PLAN There are many reasons to support the draft 5-year Strategic Action Plan. At the highest level it achieves the goals and objectives identified by the Vail Town Council when the Council unanimously determined to prepare and present Vail Resorts and Triumph Development with an alternate housing site plan proposal (April 29, 2020) to delay the immediate and imminent start of construction of the approved Booth Heights development plan. This plan is the culmination of the exploration of more than a dozen alternate site options and opportunities and nearly six months of discovery. The benefits of the draft 5-Year Strategic Action Plan include: • Articulates a series of actions which result in a win/win outcome for all parties • Results in only a temporary disruption of recreational services and amenities, not the elimination of services or amenities • Checks all the Children’s Garden of Learning boxes • Creates a “bundle of strategic actions” which advance the Town’s housing and environmental stewardship goals • The plan is both actionable and realistic and provides a defined strategic path forward • Achieves multiple adopted town goals and objectives, including affording time for wildfire fuels reduction and wildlife habitat enhancement work to be completed • Demonstrates a need for a dedicated source of funding for housing and prioritizes specific projects for future expenditures • Focuses almost exclusively on infill and redevelopment opportunities • Utilizes a holistic approach aimed at addressing several goal areas concurrently June 2, 2020 - Page 168 of 235 5 • Sets a long-lasting Town Council legacy addressing two of the community’s most critical issues – availability of housing and environmental sustainability • Favorably supported by Vail Resorts and Triumph Development, per their response of May 15, 2020 June 2, 2020 - Page 169 of 235 PIERCE AUSTIN ARCHITECTS VAIL, COLORADO 1650 Fallridge Road, Suite C-1 Vail, Colorado 81657 P: 970.476.6342 F: 970.476.4901 www.vailarchitects.com William F Pierce, Architect Kit Austin, Director of Architecture May 19, 2020 Vail Town Council Town of Vail 75 S Frontage Road West Vail, CO 81657 Attn: George Ruther, Housing Director Re: Renovation of Vail Gymnastic Center Council Members, I deeply appreciate the opportunity to share the investigation my firm has conducted to assess the feasibility of relocating the Early Childhood Education Center (ECEC) to the site that serves as the Vail Gymnastics Center located at 545 N Frontage Rd West. My firm designed the current facility in 2004. The structural design was done for this facility was performed by Bob Redwine who participated in the structural design for this study. RA Nelson also participated in the study adding their expertise in terms of initial cost estimating and determination of constructability of the proposed improvements. The concept involves constructing approximately 5,500 square feet above the Gymnastics Center building for the ECEC leaving the current gymnastics functions on the ground level and second level essentially intact. The existing roof of the Gymnastics Center will form the floor of the ECEC and the new roof over ECEC provides 5,000 square feet above of safe, sunny outdoor space for the children’s activities immediately adjacent to town owned space. The Gymnastics programs would be interrupted for a limited period when the east truss column and foundation are installed in the existing stairwell. June 2, 2020 - Page 170 of 235 PIERCE AUSTIN ARCHITECTS VAIL, COLORADO 1650 Fallridge Road, Suite C-1 Vail, Colorado 81657 P: 970.476.6342 F: 970.476.4901 www.vailarchitects.com William F Pierce, Architect Kit Austin, Director of Architecture A portion of the current ground level of the Gymnastics Center would be assigned to ECEC for “toddler care” but the Gymnastics Center would gain about 350 square feet on the Gymnastics level. The concept utilizes a good deal of the existing infrastructure at the site today such as excellent access and drop off/pick up, proximity to open space trails (accessed from the roof deck), nearby playground (west of Red Sandstone School), safe, convenient access to Lionshead via the pedestrian bridge over I 70, and ample parking for multiple functions including large groups. . Vehicular circulation and traffic flow needs to be further evaluated to ensure compatibility with existing and adjacent uses. A very important consideration in determining the feasibility of this concept is that the two uses need to operate independently (with separate vertical access and exiting systems). The proposed design accomplishes this goal and allows for dual use of the available land while complimenting the functions of each entity. For example, it is conceivable that ECEC could use the Gymnastics space for “play space” when the weather limits the utility of outdoor “play spaces”. The concept meets and exceeds the program developed for the facility in terms of indoor and outdoor space. The south exposure available at the site will contribute provide for desirable outdoor space immediately outside the classrooms and on the roof one story above. The proposed facility exceeds the size of the current ECEC allowing for expansion of the ECEC if and when that would be desirable. Structurally the addition would be supported on the south side by a truss that would span east west the entire length of the Gymnastics facility. The addition is supported on the north with micro piles and grade beams beneath the ground similar to the existing facility. June 2, 2020 - Page 171 of 235 PIERCE AUSTIN ARCHITECTS VAIL, COLORADO 1650 Fallridge Road, Suite C-1 Vail, Colorado 81657 P: 970.476.6342 F: 970.476.4901 www.vailarchitects.com William F Pierce, Architect Kit Austin, Director of Architecture The roof above ECEC would be constructed with the same structural system that forms the roof of the existing Gymnastics Center and would be without columns inside the interior function areas. No columns would be needed within the Gymnastics activity room to accomplish the addition. The column free interior spaces (both existing and proposed) allow for flexibility in space planning and adaptability if there were to be any change of purpose for the structure in the future. We have reviewed the preliminary proposal with the Town of Vail Building Department and Colorado Code Consultants. We believe the proposed uses would be classified as I-4 or E and the building would be allowed to be designated as a Type II B Construction Type. The facility will require a sprinkler system but the Type II B designation would not require installation of interior fire protection to the walls and structural system. We have contacted Colorado Code Consultants to provide a proposal to confirm my assumptions on Construction Type. We believe this would be the next step in exploration of this concept. June 2, 2020 - Page 172 of 235 1650 Fallridge Road, Suite C-1Vail, Colorado 81657f.(970) 476-4901 p.(970)476-6342NOT FOR CONSTRUCTIONA0.00COVERVGC RENOVATIONProject Number - 2008545 N FRONTAGE RD WVAIL, CO 8165705/19/20ISSUE TYPEOWNER:ARCHITECT: BILL PIERCE, PRINCIPAL IN CHARGEPIERCE ARCHITECTS1650 E. VAIL VALLEY DRIVE, C1VAIL, COLORADO 81657P: 970.476.6342F: 970.476.4901E: bill@vailarchitects.comCONSULTANTS:CONTRACTOR:P:M:E:STRUCTURAL ENGINEER:P:E:OWNER'S REPADMINISTRATIVE INFO.BUILDING CODE SUMMARY PROJECT DIRECTORYBUILDING CODE:2015 IBCCONSTRUCTION TYPE:TYPE V-ADWELLING UNITS:N/AOCCUPANCY TYPEA-3Situs Address 000545 N FRONTAGE RD WTax Area SC103 -VAIL (TOWN) -SC103Parcel Number 2101-063-02-010Legal Summary Subdivision: VAIL POTATO PATCH Block: 2 Lot: 8 PT OF BK-0241 PG-0153R848188 EAS 09-08-03R893084 EAS 10-01-04VAIL GYMNASTICS CENTERVAIL, CO 81657PROJECT LOCATIONSHEET INDEXSHEET #DESCRIPTIONBYISSUE DATEA0.00COVERPIERCE AUSTIN ARCHITECTS 05/19/20A1.00EXISTING PROGRAM PIERCE AUSTIN ARCHITECTS 05/19/20A1.01LOWER LEVELPIERCE AUSTIN ARCHITECTS 05/19/20A1.02LEVEL 1PIERCE AUSTIN ARCHITECTS 05/19/20A1.03LEVEL 2PIERCE AUSTIN ARCHITECTS 05/19/20A1.04LEVEL 3 - PLAY AREA PIERCE AUSTIN ARCHITECTS 05/19/20A3.01BUILDING SECTIONS PIERCE AUSTIN ARCHITECTS 05/19/20A3.02BUILDING SECTIONS PIERCE AUSTIN ARCHITECTS 05/19/20A9.013DPIERCE AUSTIN ARCHITECTS 05/19/20A9.023DPIERCE AUSTIN ARCHITECTS 05/19/20A9.033DPIERCE AUSTIN ARCHITECTS 05/19/20DATE NO. DESCRIPTIONJune 2, 2020 - Page 173 of 235 TODDLER #1350 SFTODDLER #2350 SFTODDLER OUTDOOR AREA550 SFSHARED RESTROOMSTORAGEARTS & ACTIVITIES200 SFSECURE ENTRYADULT RESTROOMYOUNG CHILDREN #1450 SFYOUNG CHILDREN #2450 SFYOUNG CHILDREN #3450 SFRESTROOMRESTROOMCLASSROOM CONNECTING DOOROUTDOOR AREA550 SFOUTDOOR AREA2000 SFABILITY TO CONNECT OR ISOLATE PLAY AREASFENCE PER REGULATIONSMECHANICAL150 SFOUTDOOR & CLASSROOM CONNECTIONOUTDOOR & CLASSROOM CONNECTIONOUTDOOR LEARNING SPACE250 SFKITCHEN85 SFGREETING 85 SFSINKSINKSINKADULT RESTROOM, WITH LAUNDRYSTORAGEOFFICE125 SFOFFICE MEETING 280 SFLOCKERSDROP OFF & PICK UPPARKINGUPPER LEVELPROGRAM & SQUARE FOOTAGE OF EXISTING EARLY CHILDHOOD EDUCATION CENTER (ECEC)TOTAL BUILDING IS ABOUT 4700 SF1650 Fallridge Road, Suite C-1Vail, Colorado 81657f.(970) 476-4901 p.(970)476-6342NOT FOR CONSTRUCTIONA1.00EXISTINGPROGRAMVGC RENOVATIONProject Number - 2008545 N FRONTAGE RD WVAIL, CO 8165705/19/20ISSUE TYPE3/16" = 1'-0"EXISTING EARLY CHILDHOOD EDUCATIONCENTER (ECEC)DATE NO. DESCRIPTIONJune 2, 2020 - Page 174 of 235 A2.031TODDLER #1450 SFTODDLER #2450 SFRESTROOMSSINKEXISTING RESTROOMEXISTING RESTROOMEXISTING ELEVATOR1A3.012A3.01GREETING 75 SFSECURE ENTRY150 SFADULT RESTROOMSTORAGENEW ELEVATORS AND STAIRS TO EXISTING EARLY CHILDHOOD EDUCATION CENTER (ECEC)1A3.02NEW EGRESS STAIRS FOR GYMNASTIC CENTERNEW DROP-OFF AND ENTRANCE TO EXISTING EARLY CHILDHOOD EDUCATION CENTER (ECEC)ADA LIFT2A3.02OUTDOOR SPACE FOR TODDLERSEXISTING VAIL GYMNASTICS CENTER TO REMAIN(LOWER LEVEL 2750 SF EXISTING)COLUMN FOR NEW TRUSS FOR NEW LEVELS ABOVECOLUMN FOR NEW TRUSS FOR NEW LEVELS ABOVEUPUPUPUPUP2ND LEVEL1ST LEVEL3RD LEVEL / ROOF TOP PLAY AREALOWER LEVELEXISTINGPROPOSEDN/A5550 SFN/A2740 SFTOTAL5440 SF580 SF750 SF1500 SF INTERIOR5000 SF INTERIOR1650 Fallridge Road, Suite C-1Vail, Colorado 81657f.(970) 476-4901 p.(970)476-6342NOT FOR CONSTRUCTIONA1.01LOWER LEVELVGC RENOVATIONProject Number - 2008545 N FRONTAGE RD WVAIL, CO 8165705/19/20ISSUE TYPENORTH3/16" = 1'-0"1LOWER LEVELDATE NO. DESCRIPTIONJune 2, 2020 - Page 175 of 235 A2.0311A3.012A3.011A3.02GYMNASTIC CENTER ADDITION330 SFNEW EGRESS STAIRS FOR GYMNASTIC CENTEREXISTING VAIL GYMNASTICS CENTER TO REMAIN(1ST LEVEL 5550 SF EXISTING)2A3.02UPDNDNDNUPDN2ND LEVEL1ST LEVEL3RD LEVEL / ROOF TOP PLAY AREALOWER LEVELEXISTINGPROPOSEDN/A5550 SFN/A2740 SFTOTAL5440 SF580 SF750 SF1500 SF INTERIOR5000 SF INTERIOR1650 Fallridge Road, Suite C-1Vail, Colorado 81657f.(970) 476-4901 p.(970)476-6342NOT FOR CONSTRUCTIONA1.02LEVEL 1VGC RENOVATIONProject Number - 2008545 N FRONTAGE RD WVAIL, CO 8165705/19/20ISSUE TYPENORTH3/16" = 1'-0"1LEVEL 1DATE NO. DESCRIPTIONJune 2, 2020 - Page 176 of 235 1A3.012A3.01KITCHEN INTERACTION & CHILDREN DINING415 SFKITCHEN185 SFSTAFF AREA / MEETING AREA 300 SFYOUNG CHILDREN #3480 SFYOUNG CHILDREN #4480 SFARTS & ACTIVITIES1000 SFSTAFF KITCHEN & DINING100 SFYOUNG CHILDREN #1480 SFRESTROOMSINKYOUNG CHILDREN #2480 SFLOCKERS1A3.02OUTDOOR SPACE FOR CLASSROOM #1OUTDOOR SPACE FOR CLASSROOM #2OUTDOOR SPACE FOR CLASSROOM #3OUTDOOR SPACE FOR CLASSROOM #4NEW EGRESS STAIR FROM EXISTING EARLY CHILDHOOD EDUCATION CENTER (ECEC)NEW STAIR AND ELEVATOR CORRIDORNEW DROP-OFF AND ENTRANCE TO EXISTING EARLY CHILDHOOD EDUCATION CENTER (ECEC)EXISTING ENTRANCE FOR GYMNASTIC CENTER TO REMAINNEW EXISTING EARLY CHILDHOOD EDUCATION CENTER (ECEC) ON TOP OF EXISTING GYMNASTIC CENTEROFFICE125 SFSTORAGE2A3.02RESTROOMSINKRESTROOMSINKRESTROOMSINKLOCKERSCOATS & BOOTSSTORAGELOCKERSOUTDOOR & CLASSROOM CONNECTIONOUTDOOR & CLASSROOM CONNECTIONUPDNUPDN2ND LEVEL1ST LEVEL3RD LEVEL / ROOF TOP PLAY AREALOWER LEVELEXISTINGPROPOSEDN/A5550 SFN/A2740 SFTOTAL5440 SF580 SF750 SF1500 SF INTERIOR5000 SF INTERIOR1650 Fallridge Road, Suite C-1Vail, Colorado 81657f.(970) 476-4901 p.(970)476-6342NOT FOR CONSTRUCTIONA1.03LEVEL 2VGC RENOVATIONProject Number - 2008545 N FRONTAGE RD WVAIL, CO 8165705/19/20ISSUE TYPE3/16" = 1'-0"2EXISTING ROOF - NEW CGoLNORTHDATE NO. DESCRIPTIONJune 2, 2020 - Page 177 of 235 1A3.012A3.011A3.02OUTDOOR LEARNING SPACE(ROOF ABOVE)NEW ROOFTOP OUTDOOR 4000 -5000 SFNEW CHILDREN'S GARDEN OF EXISTING EARLY CHILDHOOD EDUCATION CENTER (ECEC)NEW OUTDOOR FOR CLASSROOM BELOWNEW STAIR AND ELEVATOR CORRIDORNEW EGRESS STAIREXISTING VAIL GYMNASTIC CENTER TO REMAIN BELOWEXISTING ENTRANCE FOR GYMNASTIC CENTER TO REMAIN BELOW2A3.02CHILDREN AND ADULT RESTROOMSDNDNDNSKYLIGHTS TO PROVIDE TO LIGHT FOR ACTIVITY SPACES BELOW2ND LEVEL1ST LEVEL3RD LEVEL / ROOF TOP PLAY AREALOWER LEVELEXISTINGPROPOSEDN/A5550 SFN/A2740 SFTOTAL5440 SF580 SF750 SF1500 SF INTERIOR5000 SF INTERIOR1650 Fallridge Road, Suite C-1Vail, Colorado 81657f.(970) 476-4901 p.(970)476-6342NOT FOR CONSTRUCTIONA1.04LEVEL 3 -PLAY AREAVGC RENOVATIONProject Number - 2008545 N FRONTAGE RD WVAIL, CO 8165705/19/20ISSUE TYPE3/16" = 1'-0"1NEW LEVEL 3 - ROOFNORTHDATE NO. DESCRIPTIONJune 2, 2020 - Page 178 of 235 LOWER LEVEL8236' -0"LEVEL 18246' -0"TODDLER CLASSROOM350 SFYOUNG CHILDREN #1-4 450 SFNEW OUTDOOR LEARNING & ROOFTOP PLAY AREANEW LEVEL 3 -ROOF8280' -4"NEW OUTDOOR AREA FOR CLASSROOMEXISTING VAIL GYMNASTICS CENTER TO REMAINNEW EXISTING EARLY CHILDHOOD EDUCATION CENTER (ECEC) ON TOP OF EXISTING GYMNASTIC CENTERNEW LEVEL 28267' -4"NEW BRIDGE TO ACCESS HIKING TRAILSNEW 48" OPEN WEB JOISTS TO SUPPORT NEW ROOFEXISTING 48" OPEN WEB JOISTS TRUSS AND COLUMNS TO SUPPORT NEW ROOFOUTDOOR AREA FOR TODDLERSLOWER LEVEL8236' -0"LEVEL 18246' -0"SECURE ENTRYGREETING AREATODDLER #1350 SFTODDLER #2350 SFEXISTING STRUCTURAL TRUSSESEXISTING VAIL GYMNASTICS CENTER TO REMAINEXISTING STAIRSNEW LEVEL 3 -ROOF8280' -4"ADDITION TO VAIL GYMANASTIC CENTER 550 SFNEW STAIR AND ELEVATOR FOR EXISTING EARLY CHILDHOOD EDUCATION CENTER (ECEC)NEW EXISTING EARLY CHILDHOOD EDUCATION CENTER (ECEC) ON TOP OF EXISTING GYMNASTIC CENTERNEW LEVEL 28267' -4"BOTTOM CORD OF NEW TRUSS TO SUPPORT NEW ROOFTRUSS AND COLUMNS TO SUPPORT NEW ROOFTRUSS AND COLUMNS TO SUPPORT NEW ROOFNEW FOOTINGS2ND LEVEL1ST LEVEL3RD LEVEL / ROOF TOP PLAY AREALOWER LEVELEXISTINGPROPOSEDN/A5550 SFN/A2740 SFTOTAL5440 SF580 SF750 SF1500 SF INTERIOR5000 SF INTERIOR1650 Fallridge Road, Suite C-1Vail, Colorado 81657f.(970) 476-4901 p.(970)476-6342NOT FOR CONSTRUCTIONA3.01BUILDINGSECTIONSVGC RENOVATIONProject Number - 2008545 N FRONTAGE RD WVAIL, CO 8165705/19/20ISSUE TYPE1/8" = 1'-0"1BUILDING SECTION LOOKING WEST1/8" = 1'-0"2BUILDING SECTION LOOKING NORTHDATE NO. DESCRIPTIONJune 2, 2020 - Page 179 of 235 LOWER LEVEL8236' -0"LEVEL 18246' -0"NEW LEVEL 3 -ROOF8280' -4"YOUNG CHILDREN #1480 SFYOUNG CHILDREN #2480 SFYOUNG CHILDREN #3480 SFYOUNG CHILDREN #4480 SFEXISTING VAIL GYMNASTICS CENTER TO REMAINADDITION TO VAIL GYMANASTIC CENTER 550 SFOUTDOOR PLAY AREANEW STAIR AND ELEVATOR FOR CHILDREN'S GARDENNEW EXISTING EARLY CHILDHOOD EDUCATION CENTER (ECEC) ON TOP OF EXISTING GYMNASTIC CENTERNEW LEVEL 28267' -4"LOWER LEVEL8236' -0"LEVEL 18246' -0"NEW LEVEL 3 -ROOF8280' -4"EXISTING VAIL GYMNASTICS CENTER TO REMAINNEW STAIR AND ELEVATOR FOR EXISTING EARLY CHILDHOOD EDUCATION CENTER (ECEC)NEW LEVEL 28267' -4"TRUSS AND COLUMNS TO SUPPORT NEW ROOFNEW FOOTINGSNEW FOOTINGSTRUSS AND COLUMNS TO SUPPORT NEW ROOF2ND LEVEL1ST LEVEL3RD LEVEL / ROOF TOP PLAY AREALOWER LEVELEXISTINGPROPOSEDN/A5550 SFN/A2740 SFTOTAL5440 SF580 SF750 SF1500 SF INTERIOR5000 SF INTERIOR1650 Fallridge Road, Suite C-1Vail, Colorado 81657f.(970) 476-4901 p.(970)476-6342NOT FOR CONSTRUCTIONA3.02BUILDINGSECTIONSVGC RENOVATIONProject Number - 2008545 N FRONTAGE RD WVAIL, CO 8165705/19/20ISSUE TYPE1/8" = 1'-0"1BUILDING SECTION LOOKING NORTH1DATE NO. DESCRIPTION1/8" = 1'-0"2BUILDING SECTION LOOKING NORTH2June 2, 2020 - Page 180 of 235 NEW EGRESS STAIRNEW OUTDOOR PLAY AREA ON ROOF OF ADDITIONEXISTING VAIL GYMNASTIC CENTER TO REMAINNEW DROP-OFF AND ENTRANCE TO EXISTING EARLY CHILDHOOD EDUCATION CENTER (ECEC)NEW EXISTING EARLY CHILDHOOD EDUCATION CENTER (ECEC) ON TOP OF EXISTING VAIL GYMNASTIC CENTERNEW STAIR AND ELEVATOR CORRIDOREXISTING ENTRANCE FOR GYMNASTIC CENTER TO REMAINNEW OUTDOOR AREAS FOR EACH CLASSROOMPLAY AREA FOR TODDLERSNEW OUTDOOR LEARNING AREA UNDER ROOFSKYLIGHTS FOR AREAS BELOW1650 Fallridge Road, Suite C-1Vail, Colorado 81657f.(970) 476-4901 p.(970)476-6342NOT FOR CONSTRUCTIONA9.013DVGC RENOVATIONProject Number - 2008545 N FRONTAGE RD WVAIL, CO 8165705/19/20ISSUE TYPE13D PROPOSED 123D EXISTING 1DATE NO. DESCRIPTIONJune 2, 2020 - Page 181 of 235 NEW STAIR AND ELEVATOR CORRIDORNEW EGRESS STAIRNEW OUTDOOR PLAY AREA ON ROOF OF ADDITIONEXISTING VAIL GYMNASTIC CENTER TO REMAINNEW DROP-OFF AND ENTRANCE TO EXISTING EARLY CHILDHOOD EDUCATION CENTER (ECEC)NEW EXISTING EARLY CHILDHOOD EDUCATION CENTER (ECEC) ON TOP OF EXISTING VAIL GYMNASTIC CENTEREXISTING ENTRANCE FOR GYMNASTIC CENTER TO REMAINNEW OUTDOOR AREAS FOR EACH CLASSROOMBRIDGE TO HIKING TRAILSPLAY AREA FOR TODDLERSSKYLIGHTS FOR AREAS BELOW1650 Fallridge Road, Suite C-1Vail, Colorado 81657f.(970) 476-4901 p.(970)476-6342NOT FOR CONSTRUCTIONA9.023DVGC RENOVATIONProject Number - 2008545 N FRONTAGE RD WVAIL, CO 8165705/19/20ISSUE TYPE13D PROPOSED 223D EXISTING 2DATE NO. DESCRIPTIONJune 2, 2020 - Page 182 of 235 NEW OUTDOOR PLAY AREA ON ROOF OF ADDITIONEXISTING VAIL GYMNASTIC CENTER TO REMAINNEW STAIR AND ELEVATOR CORRIDORNEW EGRESS STAIRNEW DROP-OFF AND ENTRANCE TO EXISTING EARLY CHILDHOOD EDUCATION CENTER (ECEC)NEW EXISTING EARLY CHILDHOOD EDUCATION CENTER (ECEC) ON TOP OF EXISTING VAIL GYMNASTIC CENTEREXISTING ENTRANCE FOR GYMNASTIC CENTER TO REMAINNEW OUTDOOR AREAS FOR EACH CLASSROOMBRIDGE TO HIKING TRAILSNEW EGRESS STAIR FOR GYMNASTIC CENTERPLAY AREA FOR TODDLERSSKYLIGHTS FOR AREAS BELOW1650 Fallridge Road, Suite C-1Vail, Colorado 81657f.(970) 476-4901 p.(970)476-6342NOT FOR CONSTRUCTIONA9.033DVGC RENOVATIONProject Number - 2008545 N FRONTAGE RD WVAIL, CO 8165705/19/20ISSUE TYPE13D PROPOSED 323D EXISTING 3DATE NO. DESCRIPTIONJune 2, 2020 - Page 183 of 235 Vail Gymnastics Center Renovations Working Group Virtual Meeting Agenda 1:00 pm to 2:00 pm Tuesday, May 26, 2020 (MEETING RESULTS) Invitees: Maggie Swonger, Nicky Teavers, Paul Wisor, Mike Ortiz, Scott O’Connell, Kim Rediker, Tom Saalfeld, Bill Pierce, Kit Austin, Sandra Jennings, Mike Cuthbertson, Tim Carpenter, Suzanne Silverthorn, Greg Hall, Mark Novak, Mike Vaughan, Scott Robson, Tom Kassmel, Jessie Kleiforth, Marcie Laidman, Julie (VGC), Jason Morley • Introductions • Purpose of the Meeting o The purpose of the working group meeting is to further explore the feasibility of renovating the existing Vail Gymnastics Center into a multiple use facility combining both community recreation and early childhood education. • Desired Outcomes and Objectives o Explore options for creating a multiple use facility o Identify technical issues requiring additional exploration and resolution o Develop a preliminary probable cost estimate and tentative renovation schedule o Create an opportunity for stakeholders to participate in the design and development process o Getting to “yes” is a shared objective o Identify a path forward resulting in a win/win outcome • Roles and Responsibilities o The working group is made up primarily of technical professionals whose area of expertise is needed to identify issues and resolve problems as they may arise. o The working group members are asked to actively participate towards achieving the desired outcomes and objectives o The Vail Town Council shall be the final decision-maker as representatives of the owners of the property o The working group is apolitical in nature and not tasked with making a recommendation o All issues, questions, and concerns identified by the working group members will be shared with the Vail Town Council. • Overview of Schematic Program and Spatial Plan – (Bill Pierce/Kit Austin) • Identification of Issues, Questions, and Concerns – (Working Group Members) June 2, 2020 - Page 184 of 235 • Next Steps MEETING RESULTS: The following notes are highlights from the Vail Gymnastics Center renovations virtual meeting held at 1:00 pm, Tuesday, May 26th. • Bill Pierce and Kit Austin provided an overview of the schematic program and Spatial Needs Plan prepared as preliminary documents for the discussion. • Per State Licensing Requirements, in order for an early childhood education center shall adhere to the requirements of the State Licensing Office as well as comply with the requirements of the local zoning code, uniform building code, and fire code. • The Town has retained Steve Thomas of Colorado Code Consultants to serve as a sub-consultant and third-party reviewer of proposed plans, etc. Colorado Code Consultants is further charged with preparing a life/safety report. The report will be shared electronically with all members of the working group for information and review. • Snow accumulation from the proposed outdoor play areas needs to be addressed to include snow removal, snow storage, and any potential safety concerns resulting from the accumulation of snow. • Additional means of interior connections and circulation require further study. All classrooms shall be access separately from a common corridor and not require passing through one classroom to get to another. • The design of the sky lights, if warranted, need to be further studied and appropriately designed and configured to avoid any safety issues or concerns. Special attention needs to be given to avoid children from climbing onto the sky lights. • The multiple use concept of the proposed building creates unintended consequences which need to be better understood, explored, and resolved. For instance, vehicle parking, vehicle circulation, loading and delivery, pedestrian crossings, overlapping of uses, pick up/drop off times, noise attenuation, proximity of uses to one another, emergency vehicle circulation and access, etc. • Tom Kassmel, Town Engineer has been initially tasked with assisting in understanding the issues and helping to develop a possible plan for vehicle ingress, egress, circulation, etc. The possible plan alternatives will be shared with the working group for feedback and input at an upcoming meeting. • What is the anticipated duration of disruption to the VGC use given the proposed plan? • What is the USGA required runaway distance for indoor vaulting, etc. • State licensing requires a percentage of each outdoor play area to be protected and screened from the sun and weather. What is the percentage amount required per play area? • From safety reasons an approved evacuation plan needs to be prepared and approved? The plan should coordinate with plans already in place for Red Sandstone Elementary and Vail Gymnastics Center. How are fire drills conducted? • The separation of the toddler area on the first floor from the non-toddler area on the third floor is non-traditional and requires more exploration. While operating under one licensed premise this configuration poses challenges to operations. More exploration into this issue is needed. June 2, 2020 - Page 185 of 235 • All working group members are invited to tour the outdoor areas of the existing Children’s Garden of Learning with Maggie and others to witness of the program presently functions and experience being provided. • The next working group meeting will be held after the Vail Town Council on June 2nd. Exact date and time to be determined. June 2, 2020 - Page 186 of 235 Town of Vail Employee Housing Master Plan 5/27/2020 Milestone Schedule - Expedited Begin Date Days End Date Notes Step #2 - Middle Creek at Vail Land Lease Town Council Approval of Lease 6/1/20 30 7/1/20 VR Option to Negotiate Master Lease at Middle Creek 10/5/20 45 11/19/20 Step #4 - Vail Gymnastics Facility Renovation Construction Estimate of Schematic Design 6/1/20 14 6/15/20 Initial understanding of cost Design Development of New Facility with CGL Input 6/1/20 21 6/22/20 Construction Estimate of DD Drawings 6/22/20 21 7/13/20 Negotiate and document new CGL Lease 6/22/20 14 7/6/20 Negotiate amendment of new VRD lease 6/22/20 14 7/6/20 Town Council Approval of New Leases 7/6/20 30 8/5/20 TOV Staff to Prepare Development Applications 6/22/20 21 7/13/20 TOV PEC Approval of Conditional Use Permit 7/13/20 45 8/27/20 15 TOV DRB Approval 7/28/20 45 9/11/20 Run Concurrent with PEC Prepare Construction Documents 8/27/20 90 11/25/20 30 Expedited Structural Permit 9/26/20 30 10/26/20 Overframe Structure only Full Building Permit 11/25/20 30 12/25/20 11.0 New Facility Construction 10/26/20 335.5 9/26/21 Expedited Construcion Schedule CGL Prep for Move In 9/26/21 7 10/3/21 Step #5 Lot 3 Middle Creek Construction Estimate of Sketch Design 6/1/20 21 6/22/20 Design Development of New Housing Building 6/1/20 30 7/1/20 Construction Estimate of DD Drawings 7/1/20 21 7/22/20 June 2, 2020 - Page 187 of 235 TOV Prepares More Detailed Proposal for to VR/Triumph 7/22/20 30 8/21/20 Negotiate Terms of MOU with VR/Triumph 8/21/20 45 10/5/20 Negotiate/Document Legal Agreement for TC Approval 10/5/20 30 11/4/20 Town Council Approval 11/4/20 30 12/4/20 6.0 Design & Permitting 4/3/21 183 10/3/21 Demo 10/3/21 21 10/24/21 13.0 Construction 10/24/21 396.5 11/25/22 Meets Goal of Winter 2022 Step #6 Timber Ridge Village Apartments Negotiate MOU Right of First Refusal with Triumph 7/6/20 30 8/5/20 Negotiate/Document Legal Agreement for TC Approval 8/21/20 45 10/5/20 6.0 Design & Permitting 5/26/22 183 11/25/22 Demo 11/25/22 45 1/9/23 16.0 Construction 1/9/23 488 5/11/24 Step #7 Booth Heights Development Site TC to Extend Booth Heights Entitlements by Duration of Alternative Plan Consideration 7/22/20 45 9/5/20 Negotiate MOU terms of long term extension of Booth Heights Entitlements 8/21/20 45 10/5/20 Negotiate/Document Legal Agreement for TC Approval 10/5/20 30 11/4/20 June 2, 2020 - Page 188 of 235 Town of Vail Employee Housing Master Plan 5/27/2020 Milestone Schedule - Typical Begin Date Days End Date Notes Step #2 - Middle Creek at Vail Land Lease Town Council Approval of Lease 6/1/20 30 7/1/20 VR Option to Negotiate Master Lease at Middle Creek 9/20/20 45 11/4/20 Step #4 - Vail Gymnastics Facility Renovation Construction Estimate of Schematic Design 6/1/20 21 6/22/20 Design Development of New Facility with CGL Participation 6/1/20 30 7/1/20 Construction Estimate of DD Drawings 7/1/20 21 7/22/20 Negotiate and document new CGL Lease 7/22/20 30 8/21/20 Amend VRD lease 7/22/20 30 8/21/20 Town Council Approval of New Leases 8/21/20 45 10/5/20 TOV Staff to Prepare Development Applications 7/1/20 30 7/31/20 TOV PEC Approval of Conditional Use Permit 7/31/20 90 10/29/20 45 TOV DRB Approval 9/14/20 60 11/13/20 Begin Halfway through PEC Prepare Construction Documents 10/29/20 90 1/27/21 Building Permit 1/27/21 30 2/26/21 12.0 New Facility Construction 2/26/21 366 2/27/22 CGL Prep for Move In 2/27/22 30 3/29/22 Step #5 Lot 3 Middle Creek Construction Estimate of Sketch Design 6/1/20 21 6/22/20 Design Development of New Housing Building 6/1/20 30 7/1/20 Construction Estimate of DD Drawings 7/1/20 21 7/22/20 TOV Prepares More Detailed Proposal for to VR/Triumph 7/22/20 30 8/21/20 June 2, 2020 - Page 189 of 235 Negotiate Terms of MOU with VR/Triumph 8/21/20 30 9/20/20 Negotiate/Document Legal Agreement for TC Approval 9/20/20 30 10/20/20 Town Council Approval 10/20/20 30 11/19/20 6.0 Design & Permitting 9/27/21 183 3/29/22 Demo 3/29/22 21 4/19/22 13.0 Construction 4/19/22 396.5 5/20/23 Does not meet the goal of Winter 2022 Step #6 Timber Ridge Village Apartments Negotiate MOU Right of First Refusal with Triumph 8/21/20 30 9/20/20 Negotiate/Document Legal Agreement for TC Approval 9/20/20 30 10/20/20 6.0 Design & Permitting 11/18/22 183 5/20/23 Demo 5/20/23 45 7/4/23 16.0 Construction 7/4/23 488 11/3/24 Step #7 Booth Heights Development Site TC to Extend Booth Heights Entitlements by Duration of Alternative Plan Consideratio 7/22/20 45 9/5/20 Negotiate MOU Terms of Long Term Extension of Booth Heights Entitlements 8/21/20 30 9/20/20 Negotiate/Document Legal Agreement for TC Approval 9/20/20 30 10/20/20 June 2, 2020 - Page 190 of 235 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: Vail E conomic Recovery E fforts in Response to Public Health Crisis P RE S E NT E R(S ): S cott Robson, Town Manager AC T IO N RE Q UE S T E D O F C O UNC I L: I nformation and discussion only B AC K G RO UND: There have been a number of economic recovery updates provided during recent meetings. This presentation will continue to update the community about economic recovery tactics and initiatives that have been recommended by the Town Manager's Office, the V E A C, V V P, V C B A and regional task force groups. T here have been numerous programs implemented in an effort to reboot the businesses in Vail and in response to the public health crisis. AT TAC H ME N TS: Description Memo Economic Recovery Efforts as of 060220 Budget Impacts Trail Map June 2, 2020 - Page 191 of 235 To: Mayor and Town Council From: Town Manager’s Office Date: June 2, 2020 Subject: Vail Economic Recovery Efforts in response to the Public Health Crisis I. PURPOSE The purpose of the memo and presentation is to provide updates to a number of the Vail Recovery Efforts in response to the Public Health Crisis by sharing updates in key areas of planning, as follows:  Expansion of Premises: Restaurant, Retail  Relief Funds (Community, Rental)  Special Events update  Welcome Home  Business Toolkit and PPE  Donovan Pavilion Proposal  VLMD Summer Marketing  Crisis Recession Planning II. BACKGROUND Town staff has presented monthly updates to town council about ongoing planning efforts in key areas in response to the updated public health orders from Eagle County. Recently there were updates about defining next phases in the Municipal Operations Recovery Plan. This memo addresses several economic recovery tactics that were supported by the Vail Economic Advisory Council, the Town Manager and Economic Development Offices. These programs have been initiated to help reboot Vail’s business economy. The final portion of the presentation will include the finance department’s presentation of the current recession stage planning in response to the public health crisis, considering the crisis stage of planning. The programming and tactics below are recommended in the context of the Town’s Manager’s Emergency Order and Eagle County’s Public Health Orders and the Phase II Plan for Sustaining Social Distance, see Eagle County “Transition Trail Map” attached; the map provides benchmarks for sustainable social distancing protocols and allowable gathering sizes. III. ECONOMIC RECOVERY TACTICS UPDATES Expansion of Premises: Restaurant, Retail In effort to process expansion of premises requests in a timely manner with input across departments, a task force was formed to review the applications and note the various June 2, 2020 - Page 192 of 235 Town of Vail Page 2 regulations that might apply, State Liquor Code and Town Code. Numerous walk-abouts by this group have been done to determine appropriate business expansions. Restaurants temporary expansion of premise Restaurants can apply for a modification of premise of their liquor licensed outdoor seating area in order to allow for an expansion of their existing licensed area. Twelve businesses have submitted applications to the Town Clerk’s Office requesting a modification of their licensed premises. There are a number of other inquiries with regard to expanding premises that have occurred, so it is likely this number would reach well over twenty interested applicants in the next month and likely more over the summer months. Restaurants Modification of license premises: This current option under state law will allow a restaurant owner additional space outside to help with social distancing requirements. The new footprint must be adjacent to their premise and may extend into the public right of way. The Town will enter into revocable license agreements with licensed establishments if public right of way is needed. This licensing does require approval from the State Liquor Enforcement Division and the Town Clerk’s Office will help in expediting these applications as quickly as possible. Retail temporary expansion of premise Similar to restaurants, retail stores can apply for a modification of premise of their footprint in order to allow for an expansion to create more outdoor space for retail sales. Two retail stores have reached out regarding modifying their areas for expansion into the town’s right of way. It is anticipated that once some business do others will follow. Retail Space modifications: The new option will grant a retailer additional space to help with social distancing requirements. The new footprint must be adjacent to their premise and may extend into the public right of way. The Town will enter into revocable license agreements with retail owners if public right of way is needed. The Town will process these applications. Allowing consumption of alcoholic beverages in designated public places The restaurants and bar community seeks ways to provide food and beverage to a greater number of customers than can be accommodated within their interior and exterior licensed premise due to the public health guidelines. An Emergency Ordinance was passed by Town Council on 5/19 allowing for consumption of alcoholic beverages in designated public places, particularly Vail Village and Lionshead during this emergency created by the public health crisis. This effort will help the restaurant community accommodate more patrons than would be allowed in their establishments and would allow restaurants to do substantially more carry- out business in the villages. With input from police, fire, legal and land use staff of the town in addition to the business community, the Town Manager has now designated select areas within the villages allowing public consumption of alcohol which will take effect Saturday, 5/30. Those areas will likely be modified over time as the Town evaluates operational and enforcement issues and receives feedback from patrons and businesses owners. Maps to be provided to Council as soon as final boundaries are set. Relief Funds (Community, Rental) Community Relief Fund Program On March 31, Town Council approved the allocation of $500,000 in grant funding to provide relief in the general areas of food, shelter and health impacts associated with the COVID-19 June 2, 2020 - Page 193 of 235 Town of Vail Page 3 public health crisis. The Town of Vail has awarded $283,000 to 10 qualifying nonprofit organizations in its first allotment of Vail Community Relief Funds. These organizations have provided an update on the distribution of those funds to locals in need:  Food: Eagle Valley Community Foundation has served 79 Vail households between April 27 and May 20. Overall, they have provided 960 boxes of dry goods along with a 8-10lb bag of produce to households. The United Way has been delivering 50 meals to Vail residents each week, mainly serving households at Middle Creek Apartments.  Rent relief: Catholic Charities has assisted 7 households in Vail along with more families that work in Vail; Salvation Army has assisted 18 households with several applications pending; Swift Eagle Charitable Foundation has assisted 2 Vail households and 4 that work in Vail.  Health (Medical & Behavioral): Bright Future Foundation has helped 6 additional households in Vail; overall they have seen a 17% increase in requests for emergency shelter, a 20% increase in calls to their crisis hotline and a 30% increase in requests for rental assistance. The Suicide Prevention Coalition has actively provided tools under the “SpeakUp ReachOut” campaign for mental health crisis support in the form of coping strategy cards, social media outreach and website information. The Hope Center was able to increase capacity of their team of counselors in serving the crisis hotline, in-person visits and after-hours calls to Vail Health. The Vail Valley Charitable Fund is currently evaluating medical bill support for a number of households, and to date has supported a 6-year Vail resident with $5,000 in funding after suffering serious medical issues. A number of applications are under review by the town’s Community Relief Fund committee for a second round of funding. Final decisions have not yet been made for these awards but will be announced in the near future. The $500,000 fund was established by the Vail Town Council to provide local financial relief associated with COVID-19 impacts in the areas of food, shelter and health for those who live or work within Vail. Details are available on the town’s website www.vailgov.com. Commercial Rental Relief Funds Program The business community has requested the Town consider creating a rental relief program for commercial business owners. The program would be funded and facilitated by the Town. While the Payroll Protection Program has provided short term temporary relief, many businesses are struggling to ensure their continued viability throughout 2020 and beyond. The City of Aspen has created a robust and effective rental relief program that provides grants over a three-month period with rental costs being equally shared by the landlord, the tenant, and the City. The Economic Recovery Team is forming a subcommittee to draft the requirements for the rental relief program, with the intent to provide a draft to the town council on June 16. Key components of the proposed model are outlined below: Rent relief (grants) for small businesses that provide one-third the monthly rent for up to three months, with a yet to be determined maximum grant per business. An alternative cost share arrangement is also being considered, whereby landlords would agree to a reduction in rent on a floating basis based on the percentage of revenue received in 2020 versus the same month in 2019, and the town would support the reduction on the same basis over a determined time period. Requirements of eligible business applicants may include: • Business is currently closed or has had business seriously curtailed and cannot operate remotely due to the public health order. • Business employs 35 or fewer full time equivalent employees. June 2, 2020 - Page 194 of 235 Town of Vail Page 4 • Business must have a physical location in the Town of Vail and hold a Vail business license. • Business must have a rent payment due for the time period of June 1, 2020- December 1, 2020 due to a landlord to whom the business has no ownership interest. • Business must be current on all payments to the Town of Vail. • Business was open for business in Vail on March 1, 2020; and must have been in business for the 2019-20 winter season. • Business must typically be open a minimum of 32 weeks a year. • Further service businesses that are primarily office based, such as accounting, law firms, property management, real estate professionals, etc. do not qualify. • Documentation required includes o Proof of application for Paycheck Protection Program or CARES and received funding o Current lease o Colorado Secretary of State confirmation of certificate of good standing o Most recent federal and Colorado business tax return o Written confirmation from landlord confirming an aggregate rent reduction for a minimum of three months equivalent to a minimum of one-third of the monthly rent, and waiving any future claims of a lease violation. o The program would omit certain businesses including those with multiple outlets in more than one state selling under the same name. The relief is intended for small business owners rather than national chains. While the formulas, level of total relief and process to apply have not yet been finalized, the subcommittee’s intent is to provide a draft of the rental relief program to the town council on June 16. Special Events Update Staff is working directly with event producers to reschedule, reformat, and/or reimagine their events within current or anticipated public health orders, to occur later this summer and into fall where possible. The CSE held a special meeting on Wednesday, May 20 to review event producer plans and recommend funding in response to proposed new models operating within public health order guidelines. Messaging and communication about personal responsibility and public health orders will become a requirement and key component of and integrated into all events. While the CSE scorecard continues to be the primary tool in evaluating events, staff recommends evaluating event funding requests using the following weighted criteria: 1. Event creates overnight stays 2. Event provides opportunity to capture sales tax revenue 3. Event brings residents and visitors into the villages 4. Event enhances guest experience America Days Vail intends to host its traditional 4th of July America Days celebration including a reverse parade, with community floats stationed and interspersed from Golden Peak to Lionshead for residents and guests to view at their leisure, and a fireworks show after dark, barring fire restrictions. The safety and enjoyment of residents and guests is our primary goal, and June 2, 2020 - Page 195 of 235 Town of Vail Page 5 public health orders provide the basis for our planning. The floats will be designed as art installations rather than moving displays and residents and guests will be invited to move throughout Town at their own pace and in their own family groups while practicing safe social distancing. The day will conclude with a fireworks display that is being optimized to be viewable from multiple locations throughout Vail, and the event producer, Vail Resorts and town departments are collaborating to provide a safe environment to enjoy the show. Farmers Market The Vail Farmers Market will begin in a virtual format on June 14 with pick up and delivery opportunities available on June 21. The first market in the traditional sense will occur on July 5. Staff departments are working closely with the event producer to ensure the format and protocols are of the highest standards and reflect public health requirements. Vendors will be fewer in total and tents will be placed six feet apart to meet social distancing requirements, handwashing and hand sanitizer areas will be added, one way corridors will be established and social distancing protocol will be provided for vendors and visitors alike. Welcome Home Thirty-eight percent of Eagle County housing units are vacant vacation homes, and this presents an unique opportunity for economic recovery. Jeremy Reitmann, Gypsum town manager, conceived an idea to boost the local economy by inviting second-home owners to return and stay in Eagle County. Second homeowners are loyal part time residents who are financially and emotionally invested in the community. Welcoming these property owners to “Come Here, Live Here, Stay Here” will boost local spending and help the community weather this storm. The Welcome Home Campaign Toolkit is a collection of graphics and messages that invite our second-home owners to move to Eagle County. Community connectors, which include non-profits, real estate, home services, property managers, metro and special districts, personal service providers and more, are encouraged to reach out to second homeowners with these assets to encourage them to return to Eagle County soon, and to stay. Town staff is working with stakeholder lists to push the toolkit out to connectors and second homeowners. Business Toolkit & Personal Protective Equipment (PPE) The Vail Valley Partnership has worked with the Vail Valley Foundation task force groups to compile a business toolkit which is designed to help businesses apply the Eagle County Public Health Orders and properly communicate with employees and customers. The kit provides tools and resources to help businesses understand the three phases of the Transition Trail Map (Green Circle, Blue Square, Black Diamond), provide answers to frequently asked questions, share success stories and best practices, and review an overview of the county-wide path to economic recovery. The town economic recovery staff is working on an enhancement to this toolkit with tools including Vail Strong videos designed to help constituents feel comfortable within the public health orders, signage graphics to provide a unified approach to requirements, and other tools to support Vail businesses including expansion of premises information and PPE provision. The Town is procuring a bulk quantity of PPE items in order to pass along to businesses so they can meet public health requirements. Businesses would need to demonstrate their own purchase of PPE as the Town supplies are intended to supplement those supplies and lighten the burden created by the public health orders. June 2, 2020 - Page 196 of 235 Town of Vail Page 6 Donovan Pavilion Donovan Pavilion Management, Inc. has submitted a proposal to the Town Manager’s office for consideration of adding square footage to the premise / facility using a temporary tent outside the west entrance. This additional space would allow them to manage the rental of the facility in a more favorable manner considering the public health orders. The additional space would allow for better compliance with social distancing requirements and social gathering numbers. The overall objective is to provide additional seating for meals and guest space for Donovan Pavilion groups during the Eagle County Health Order due to the Covid-19 pandemic. The marketing focus is for the user groups such as current wedding clients with guests up to 180 people (23% less than capacity), community use with seating up to 180, potential new clients who have been displaced from other sites due to Covid-19 restrictions. The management company is continuing to research related costs, social distancing protocols, compliance with Community Development regulations and design guidelines, and marketing ideas. VLMD Summer Marketing Built on the new post COVID-19 ‘Find What You’ve Been Missing’ creative campaign, the VLMDAC is focusing on the front range and a drive market encompassing a 500 mile radius. The intent is to capitalize on the leadership position achieved by Eagle County and Vail Health and welcome guests and second homeowners back to Vail in a safe and responsible way. Following launch of media, the partners will monitor consumer behavior to determine which markets are driving bookings, deliver up timely, relevant and compelling Vail messaging, and monitor user behavior on DiscoverVail.com in order to continuously adjust to respond to the unique COVID situation within each market. The VLMDAC intends to continue strong marketing efforts through the fall. As presented today by the VLMDAC, the supplemental proposes budget adjustments needed for the “Crisis” phase of the recession plan in response to the economic impacts of COVID-19 public health crisis. In this phase lodging tax revenues of $3.75 million are reduced nearly 50% ($1.85M) to $1.9M for 2020. To make up for the short fall in revenue, the VLMDAC is proposing to reduce expenditures by $1,115,000 or 30% from amended budget and use $704,160 of reserves. This will result in an ending fund balance of $645,948 or 18% of a normal year of lodging tax revenues and below Council’s 25% directive. Recession Plan Budget Update The Finance Department will present updates on budget impacts that are in accordance with the town’s recession plan, see separate memo. Attachments:  Eagle County Transition Trail Map  Memo from Finance Department June 2, 2020 - Page 197 of 235 TO: Vail Town Council FROM: Finance Department DATE: June 2, 2020 SUBJECT: Budgetary impacts of Public Health Crisis – Update. I. SUMMARY The purpose of this memo is to provide an update on the projected impacts to town revenues and corresponding plans for budget reductions. Effective May 5th, the town implemented the “Major” level of recession plan. Over the last several weeks staff has monitored state and local public health orders, as well as gathered information on economic indicators as much as possible. The outcome is an outline of staff’s recommendation a transition to the next phase of the town’s recession plan of “Crisis”. II. BACKGROUND The original 2020 budget included revenue of $73.8 million. As of May 5, Town Council approved moving from the “Significant” recession plan level to “Major”, with the below impacts outlined: “Significant” Recession Plan as of April 7: • A reduction in revenues of $10M, or 13% of total revenues for the town. • Corresponding reductions in expenditures of 10% department operating budgets, a freeze on wages and hiring, and utilization of reserves. • Deferral of capital projects. “Major” Recession Plan: • A reduction in revenues of $12M, or 16% of total revenues for the town. • Corresponding reductions in expenditures of 10% department operating budgets, a freeze on wages and hiring, and utilization of reserves. • Deferral of capital projects. June 2, 2020 - Page 198 of 235 - 2 - Updated Budget Projections While there are many unknowns for the local impact to our economy, staff has updated revenue projections to reflect a further worsening of the town’s annual revenue streams and corresponding plans for budget reductions. Public health orders currently allow for groups of 50, with the next phase permitting groups of up to 250 within four to eight weeks. Vail Resorts plans to gradually open lift operations, retail and lodging by late June or early July. The state of the public health crisis has already had a significant impact to the town’s summer event schedule which traditionally draws large summer visitation and economic vitality. Other uncertainties such as the status of air travel, consumer behavior and the potential for a resurgence of the COVID-19 virus also hinder the accuracy of revenue projections. A significant challenge in projecting revenue impacts to the town lies with sales tax and not having an adequate indication of performance until near the end of summer, when there will be less time to implement cost cutting measures. Collections for the month of April were reported at $356K, a decrease of 75% from prior year. This is within the budget projection of an 80% decrease. Year to date collections of $10.9M are down 21.5% from 2019. Other revenue streams will be impacted as well, however to date construction activity has not slowed other than two projects that will be delayed. Construction permits and plan check fees have been reduced by 18% to account for those two delays, with some room for additional fallout. Real Estate Transfer Tax collections were already budgeted at a 13% decrease from the prior year and year to date collections are currently in line with that assumption. Construction Use Tax is trending lower than the budget, which will be adjusted downward in a “crisis” phase. “Crisis” Recession Phase: In this phase the town’s revenues are projected to drop a total of $15.3 million, or a 21% percent reduction from the original budget. Again, a majority of the decrease relates to sales tax, with collections estimated at $16.8 million, a 41% drop from budget and 43% from prior year. Additional reductions were also made to the other major revenue sources such as lift tax, parking and construction related revenues. III. BUDGET REDUCTIONS Despite the uncertainty in revenue, the town will continue to provide core services to our citizens and slowly ramp up preparations to receive guests when that time comes. Summer services provided by the town have been reduced depending upon anticipated visitation levels as public health orders are updated over time. Reductions to offset the revenue shortfall of $15.3 million will come from the following: • Savings in staff vacancies, wage freeze, hiring freeze and furlough of summer seasonal employees $2.0M. June 2, 2020 - Page 199 of 235 - 3 - • Operational savings across all funds of $2.1M. • A 30% estimated reduction in special events funding (includes both Commission on Special Events and council-funded Signature Events) of $864K. • $25.4M in deferred capital spending in the Capital Projects Fund, RETT Fund and Heavy Equipment Fund. Capital investment in the InDEED program has not been reduced at this time. • Use of General Fund reserves of $6.0M toward offset of revenue shortfall. This represents a use of 16% of reserves, leaving an ending fund balance of $29.8M, or 68% of revenues in a normal budget year compared to Council’s directive of 35%. Within the General Fund, the revenue shortfall of $10M is offset 40% through expense cuts and 60% with use of reserves. • Use of reserves of $500K for Community Relief Funds. IV. NEXT STEPS Staff has included the above budget adjustments for this “Crisis” phase in the budget ordinance reading this evening. As more public health orders and economic information becomes available staff will continue to monitor impacts to revenue and make recommendations as we move forward. June 2, 2020 - Page 200 of 235 TRANSITION TRAIL MAP Sustainable social distancing protocols are critical to each phase of our planned reopening. To be successful, your behaviors and commitment to effective social distancing are critical. Please be vigilant in protecting yourself, your family, your employees and your community by pledging to the ​5 Commitments of Containment: 1.I will maintain 6 feet of social distance. 2.I will wash my hands often. 3.I will cover my face in public. 4.I will stay home when I am sick. 5.I will get tested immediately if I have symptoms. Phased Approach to Lift Restrictions Activities Beginner Initial Steps to Reopen Intermediate ●About 4-8 weeks after “Beginner” reopen ●No significant Increase in Cases Expert ●About 4-8 weeks after “Intermediate” reopen ●No significant Increase in Cases Gathering Size 10 25-50 250 Essential Business Operate with social distancing protocol and exempted from gathering size Retail, Offices, Personal Services & other businesses not listed below Social Distance Protocol required Social Distance Protocol required Social Distance Protocol required Elective & Preventative Medical Care Open with Guidance Continued Guidance Continued Guidance Childcare Open with Guidance Continued Guidance Continued Guidance K-12 Education No Change - Distance Learning Reopen with Guidance Continued Guidance Restaurants & Bars No Change - Takeout and Delivery Only Social Distance Protocol required Social Distance Protocol required Low-risk recreation (golf / disc golf / non- contact sports) Social Distance Protocol required Social Distance Protocol required Social Distance Protocol required High-risk recreation (playgrounds / contact sports / activities with high-touch equipment) No Change - Closed Social Distance Protocol required Social Distance Protocol required June 2, 2020 - Page 201 of 235 Senior Centers No Change - Closed No Change - Closed No Change - Closed Gym / Fitness Centers Social Distance Protocol required Social Distance Protocol required Social Distance Protocol required Lodging / Short Term Rentals Open only for local residents, essential business, medical care, & emergencies Reopen with Guidance Open Non-Resident Visitors Strictly limited to essential business Limited Open *Social Distancing protocols for businesses: ​English ​| ​Spanish June 2, 2020 - Page 202 of 235 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: D R B / P E C Update P RE S E NT E R(S ): J onathan S pence, Planning Manager AT TAC H ME N TS: Description May 20, 2020 D R B Meeting Results May 25, 2020 P E C Meeting Cancelled (Holiday) June 2, 2020 - Page 203 of 235 D E S IG N R E V IE W B O AR D May 20, 2020, 3:00 P M Virtual 75 S. Frontage Road - Vail, Colorado, 81657 1.Call to Order 1.1.I n accordance with current public health guidelines, this meeting will be held virtually. Register in advance for this webinar: https://us02web.zoom.us/webinar/register/W N_P Z_S Bc RtQzKgoaW m2B2_sA 1.2.Attendance Present: J ohn Rediker, Kit Austin, Doug Cahill, David Campbell, Peter Cope Absent: None 2.Main Agenda 2.1.D R B20-0103- Weiner Residence Final review of an exterior alteration (windows) Address/Legal Description: 2450 Chamonix Lane Unit A3/Lot 6, Block B, Vail Das Schone Filing 1 Applicant: Daniel & Elizabeth Weiner, represented by RNB Construction Planner: Greg Roy 1. The applicant will provide a letter from the HOA agreeing that future window replacements in the building will match the windows proposed in this application. David Campbell moved to approve with conditions. J ohn Rediker seconded the motion and it passed (5-0). 2.2.D R B20-0129 - Chase Bank Final review of exterior alteration (ATM & Enclosure) Address/Legal Description: 1 W illow Bridge Road/Lot 2, Sonnenalp Subdivision Applicant: Chase Bank, represented by A P MI I nc. Planner: Greg Roy J ohn Rediker moved to table to J une 3, 2020. David Campbell seconded the motion and it passed (5-0). 2.3.D R B20-0132 - Laird Residence Final review of a separation request Address/Legal Description: 1967 Circle Drive/Lot 24, Buffehr Creek June 2, 2020 - Page 204 of 235 Resubdivision Applicant: Rebecca & Stephen Laird, represented by Pierce Austin Architects Planner: Greg Roy David Campbell moved to approve. J ohn Rediker seconded the motion and it passed (4-0). Abstain:(1)Austin 2.4.D R B20-0169 - Allen Residence Final review of an exterior alteration (windows/doors/balcony) Address/Legal Description: 141 East Meadow Drive Unit 1A South/Lot P, Block 5D, Vail Village Filing 1 Applicant: Larry & Lori Allen, represented by Berglund Architects Planner: J onathan Spence 1. Prior to submitting for B P the applicant shall amend the plans to include a sidebar in the lower door's sidelight. David Campbell moved to approve with conditions. J ohn Rediker seconded the motion and it passed (5-0). 2.5.D R B20-0156 - Lyons Residence Final review of a change to approved plans (exterior) Address/Legal Description: 4480 Glen Falls Lane/Lot 8, Forest Glen Subdivision Applicant: Catherine Vanessa Bentley Lyons, represented by Berglund Architects Planner: Erik Gates David Campbell moved to approve. Peter Cope seconded the motion and it passed (5-0). 2.6.D R B20-0097 - Marriott Residence Inn Final review of new construction Address/Legal Description: 1783 North Frontage Road West/Lot 9, Buffehr Creek Resubdivision Applicant: Vail Hotel Group L L C, represented by Mauriello Planning Group Planner: Erik Gates 1. Prior to receiving Building Permit approval, the applicant shall submit a Design Review Board application for all roof venting and terminations. David Campbell moved to approve with conditions. Peter Cope seconded the motion and it passed (5-0). 3.Staff Approvals 3.1.D R B19-0186.001 - Ostling Residnence Final review of a change to approved plans (roof/window/door) June 2, 2020 - Page 205 of 235 Address/Legal Description: 706 Forest Road Unit B/Lot 9, Block 1, Vail Village Filing 6 Applicant: Paul & Danita Ostling, represented by Shepherd Resources I nc. Planner: J onathan Spence 3.2.D R B19-0698 - Parks Residence Final review of exterior alteration (windows) Address/Legal Description: 4143 Spruce W ay / Lot 8, Block 9, Bighorn Subdivision 3rd Addition Applicant: Chris Parks Planner: Greg Roy 3.3.D R B20-0091 - Kelly Residence Final review of an exterior alteration (windows/vents) Address/Legal Description: 2875 Manns Ranch Road Unit G4/Lot 1, Block 1, Vail Village Filing 13 Applicant: Collins C. Kelly Revocable Trust, represented by Barefoot Construction Planner: J onathan Spence 3.4.D R B20-0121 - Avant Residence Final review of an exterior alteration (windows) Address/Legal Description: 3094 Booth Falls Road Unit 15/Lot 1, Block 2, Vail Village Filing 12 Applicant: Deborah Avant, represented by Mountain Valley Property Management Planner: Erik Gates 3.5.D R B20-0123 - Deighan Residence Address/Legal Description: Final review of a change to approved plans (window frame color) Applicant: Kevin Deighan Planner: Erik Gates 3.6.D R B20-0124 - Farber Residence Final review of an exterior alteration (sliding door) Address/Legal Description: 4660 Vail Racquet Club Drive Unit 6/Vail Racquet Club Condominiums Applicant: Laureen & Daniel Farber, represented by HMR Construction Planner: Erik Gates 3.7.D R B20-0127 - Shay Residence Final review of an addition Address/Legal Description: 1718 Geneva Drive/Lot 11B, Matterhorn Village Filing 1 Applicant: J enifer & Russell Shay, represented by Gillette LLC Planner: Greg Roy 3.8.D R B20-0128 - Kirschner Residence June 2, 2020 - Page 206 of 235 Final review of a tree remvoal Address/Legal Description: 1995 Chamonix Lane Unit 2/Lot 27, Buffehr Creek Resubdivision Applicant: J ohn Kirschner Planner: Erik Gates 3.9.D R B20-0130 - Kardesh Residence Final review of tree removal Address/Legal Description: 3035 Booth Falls Road / Vail Village Filing 13 Applicant: David Kardesh Revocable Trust, represented by Treeline Homes Planner: Erik Gates 3.10.D R B20-0131 - Goff Residence Final review of a change to approved plans (dryer vent) Address/Legal Description: 767 Potato Patch Drive Unit 3/Lot 34, Block 1, Vail Potato Patch Filing 1 Applicant: J ames Goff, represented by Landmark Traditions Planner: J onathan Spence 3.11.D R B20-0133 - Sundial Townhomes Final review of a tree removal Address/Legal Description: 5040 Main Gore Place/Sundial Phase 2 Applicant: Sundial Townhomes Planner: J onathan Spence 3.12.D R B20-0135 - Mountain View Residences Phase II Final review of a change to approved plans Address/Legal Description: 434 South Frontage Road East/Lot 1, Vail Village Filing 5 Applicant: Vail Mountain View Residences Phase I I Planner: J onathan Spence 3.13.D R B20-0139 - Marshall Residence Final review of a change to approved plans (sunroom) Address/Legal Description: 1467 Westhaven Drive Unit 23/Lot 53, Glen Lyon Subdivision Applicant: Harriet C. Marshall Revocable Trust, represented by Scale Production Architecture Planner: Erik Gates 3.14.D R B20-0143 - Lodge at Vail Final review of an exterior alteration (shielding) Address/Legal Description: 174 Gore Creek Drive/Lot 1, Lodge Subdivision Applicant: Lodge at Vail, represented by Vail Resorts Planner: J onathan Spence 3.15.D R B20-0144 - 4335 Spruce Way LL C Final review of an exterior alteration (windows) June 2, 2020 - Page 207 of 235 Address/Legal Description: 4335 Spruce W ay Unit W /Lot 4, Block 3, Bighorn Subdivision 3rd Addition Applicant: 4335 Spruce Way L L C, represented by Heid Remodeling and Construction Planner: Erik Gates 3.16.D R B20-0145 - Rosso Residence Final review of an exterior alteration (windows) Address/Legal Description: 600 Vail Valley Drive Unit R/Tract B, Vail Village Filing 7 Applicant: J ean-Pierre Rosso Revocable Trust, represented by Nedbo Construction Planner: Erik Gates 3.17.D R B20-0147 - Schapperle Residence Final review of an exterior alteration (patio/snowmelt) Address/Legal Description: 3817 Lupine Drive Unit B/Lot 3, Bighorn Subdivision 2nd Addition Applicant: J ohn F. Schapperle J r. Living Trust, represented by Berich Masonry Mountain Division Planner: Erik Gates 3.18.D R B20-0149 - St. Moritz Holdings L LC Final review of an exterior alteration (landscaping) Address/Legal Description: 1285 Westhaven Circle Unit N/Lot 47, Glen Lyon Subdivision Applicant: St. Moritz Holdings L L C, represented by Mac Design Planner: J onathan Spence 3.19.D R B20-0150 - Meadow Creek Condominiums Final review of an exterior alteration (deck repairs) Address/Legal Description: 2500 Kinnikinnick Road/Meadow Creek Condominiums of I ntermountain Applicant: Meadow Creek Condominiums, represented by Hess Contracting I nc. Planner: J onathan Spence 3.20.D R B20-0155 - Timber Falls Condominiums Final review of an exterior alteration (reroof) Address/Legal Description: 4512 Timber Falls Court/Timber Falls Condominiums Applicant: Timber Falls Condominiums, represented by Mountain Valley Property Management Planner: J onathan Spence 3.21.D R B20-0157 - Tyrer Residence Final review of a tree removal Address/Legal Description: 4515 Bighorn Road/Lot 6&7, Block 1, Bighorn Subdivision 3rd Addition June 2, 2020 - Page 208 of 235 Applicant: Harry Tyrer, represented by Old Growth Tree Service Planner: J onathan Spence 3.22.D R B20-0173 - Smith Residence Final review of a change to approved plans (entry/roof) Address/Legal Description: 895 Red Sandstone Circle Unit B/Lot 2, Vail Village Filing 9 Applicant: W A P O Properties L L C, represented by Krueger Architecture Planner: J onathan Spence The applic ations and information about the proposals are available for public inspection during regular office hours at the Town of Vail Community Development Department, 75 South Frontage Road. The public is invited to attend the project orientation and the site visits that precede the public hearing in the Town of Vail Town C ounc il Chambers. Times and order of items are approximate, subject to c hange, and cannot be relied upon to determine at what time the Design Review Board will c onsider an item. Please call 970-479-2138 for additional information. Sign language interpretation available upon request with 24-hour notification, dial 711. June 2, 2020 - Page 209 of 235 P L ANNI NG AND E NV I RO NM E NTAL C O M M I S S I O N M ay 25, 2020, 1:00 P M Town Council Chambers - M eeting Cancelled 75 S. F rontage Road - Vail, Colorado, 81657 1.Call to Order 1.1.Meeting Cancelled 2.Adjournment The applications and information about the proposals are available for public inspec tion during regular offic e hours at the Town of Vail Community Development Department, 75 South Frontage Road. The public is invited to attend the project orientation and the site vis its that prec ede the public hearing in the Tow n of Vail Community Development Department. Times and order of items are approximate, subject to c hange, and c annot be relied upon to determine at w hat time the Planning and Environmental Commission w ill c onsider an item. Please c all (970) 479-2138 for additional information. Please call 711 for sign language interpretation 48 hour prior to meeting time. Community Development Department Published in the Vail Daily May 22, 2020 June 2, 2020 - Page 210 of 235 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: C S E minutes. AT TAC H ME N TS: Description C S E Meeting Minutes 03042020 C S E Meeting Minutes 04012020 C S E Meeting Minutes 05062020 June 2, 2020 - Page 211 of 235 COMMISSION ON SPECIAL EVENTS MEETING Town Hall – Council Chambers Wednesday, March 4th, 2020 @ 8:30a.m.-10:45a.m. MINUTES: 1. @ 8:30a.m.: Administrative Items (5 minutes) a. Approval of the Minutes from the CSE Meeting on 1/08/2020 and 2/5/2020 • Motion to approve the minutes. 1. Davis/Rediker/Unanimous b. Upcoming Meeting Reminders • April 1, 2020 c. Upcoming Event Reminders • 10th Mountain Parade – Friday March 6th • Vail Yeti Hockey – March 6, 7, 13, 14, 20, 21 (tickets available) • Vail Symposium – March 5, 16, 19, 26 • Superhero Ski Day – March 14 • Pink Vail – March 28 • Through The Lens – March 4, 7, 18 • Vail Film Festival – March 26-29 Mark Gordon attending March 19th VLMDAC. Send new sign up sheet. 2. 8:35: Recaps (15 Minutes) a. Community Leadership Academy (15 Minutes) • Smaller group for the last vail program which worked great for that attendee group. More intimate. Usually closer to 20-24. 39 graduates from 2019 program. Grandview is amazing space for the program. We rely on free parking for the summer program though. More marketing through the VVP. Allows more people from the overall community, not just government to get involved. 7 month program. Next vail session starts in June. • Motion to Approve Final Funding. 1. Davis/Gordon/Unanimous b. CSE Discussion: Burton US Open: Rediker: Really fun event, town was busy, everything great until 1:45 am. Saturday night, reports of people being kicked out of transportation center, no busses or ubers/lyfts. We should talk to event producers about coming up with a plan to get people out of town after events. Valenti – skier traffic was dangerous at golden peak. Should look at a bridge/superstructure to move traffic across skiers path to lift. Davis – the crowd felt bigger this year June 2, 2020 - Page 212 of 235 3. Program Update – a. Mountain Art Collective (15 Minutes) • Townsend Bessent: Silent disco blew me out of the water. Roughly 90 people attended. Great feedback. • Music Series: it is a lot of work to produce a music series especially with an old unmaintained venue. We were told the condition of the venue was better. Liquor license has been extended to the theater. Lease has been finalized. • Davis – where are you with booking talent? Rob Prechtl – our 3rd partner Dave Tucker is spearheading the talent booking. We have some bands that are in the works for may through October. Working with Grand Hyatt and town calendar to select dates. • Davis - How many shows do you expect to have. Prechtl, we are shooting for 5. • Gordon – what is the venue capacity? Prechtl - ~285 • Gordon - In a first year where there are venue challenges, etc. I think 5 concerts is great. 3 successful shows would make me happy. Look towards the more need based times. We are trying to fill gaps. • Bessent - Art music series has been great. January was swing with weekly classes and a live swing band for the graduation. 15-30 people each class. Feb was salsa. Sewing classes, photography classes and others are coming up. • Paid facebook has been the best marketing channel so far. Vail Daily EVV.com for the bigger events. • Vail Film Fest will use the theater. • Lau – are you using email marketing? Sending event calendars? We are collecting emails for all pre-registration classes. Roughly 400 names on the list so far. • Targeting $10-$35 per show to keep it affordable. • Ski museum through the lens has been selling out. Could they host additional showings at the theater. b. Vail Outlier and the Van Show (10 minutes) – Mike McCormack • Outlier Update McCormack– Meeting with USFS to get green light for new vail 100 course. Gravel event. 40c tire width recommended but open to all. Muddy Pass – USFS System Trails – trail support from Jake Wells • Looking at an e-bike friendly course and weighing option between pro of adding riders and opening categories with cons of trolls. • Moving away from the enduro. Moving towards a talons challenge type event. Ride these 6 trails and get a shirt/hat/etc. • Running out of bikes at the demo. Looking at a modest price increase to manage crowd but want to keep it attainable for locals. June 2, 2020 - Page 213 of 235 • VAN SHOW – Grew from North American Hand built Bike Show. Began as a curated show. Marketing people brought in technical experts. Divided attendees into tons of categories so more small brands could get in the spotlight. 4000-5000 attendees in person but 100’s of k’s of online engagement. Adventure Van Showcase – RV shows are full of tire kickers. Adventure vans are $200k toys with $10,000 bikes, PV, etc. This is our clientele. Vans, tow behinds, earthromers, etc. Parking would be added at ford park. Application process for camping. Hoods up at hardees at camping area. No tents or subarus. • Marketing team will be producing ongoing social programming. • Different than the standard RV show. • ~60 camping spots. The rest of the group will be in lodging. • Gordon – I don’t see the camping at odds. This is an additional program to the existing bike program. • Biszantz – would you do concessions, etc. McCormack – Both. We do sweet t-shirts well. We want to promote sustainability. Breck Epic has great nalgenes so people drink from taps. • Rediker – have you talked to VRD? McCormack, we wanted to get your blessing first. 4. @ Intercept Insights 2020 Event Survey Introduction and discussion (20 Minutes) • Jason Roberts – Informational review of reporting dashboard and proposed event to survey. 5. @ 9:30 .a.m.: New Business (10 minutes) Gordon – Bravo board meeting started discussing corona virus. Does the town have any plan. Vlaar – Eagle county and vail health are working on a joint statement with the town. VLMD working on a contingency plan for marketing. Laurie Mullen – Discovervail.com is moving forward and should launch this week. Building our own database for CRM. Motion to Adjourn. Davis/Biszantz/unanimous Adjournment @9:45 a.m. June 2, 2020 - Page 214 of 235 COMMISSION ON SPECIAL EVENTS MEETING Wednesday, April 1st, 2020 @ 8:30a.m.-10:00a.m. MINUTES AGENDA: Meeting materials can be accessed at the following link: April Meeting Materials CSE Roll Call: Alison Wadey, Barry Davis, Samantha Biszantz, Jill Lau , Kim Rediker, Mark Gordon, Marco Valenti Staff: Jeremy Gross, Mia Vlaar, Liz Gladitsch Attendance: Austin Gavlak, Skip Thurnaur (VLMDAC), Meghan Scallen, Mark Foster, Amanda Blevins, Amy Lewis, Angela Mueller, Becca Aliber, Beth Pantzer, Beth Papas, Chris Huntington, Danielle Salinksy, Eddie, Eric Manthey, Jason, Katie Coakley, Kip Tingle, Kris Sabel, Laurie Asmussen, Mark Christie, Mike McCormack, Nanette Kuich, RP, Sarah Frank, Townsend 1. @ 8:30a.m.: Administrative Items (5 minutes) a. Minutes from the CSE Meeting on 3/4/2020 • Motion to approve the minutes Valenti/Rediker/Unanimous b. Upcoming Meeting Reminders • May 6, 2020 2. 8:35 a.m.: Recaps (15 Minutes) a. Project Funway (15 minutes) • Opened up bleacher seats and it made a big difference and brought in a lot more funding. There were unforeseen costs with this but it was still very beneficial. • Increased fundraising by 27% and attendance by 17% • Added 3 new art mural activations • Motion to approve final funding for Project Funway Rediker/Valenti/Unanimous 3. 8:50 a.m.: COVID-19 Update – (30 minutes) a. Event Cancellations and Postponements Update • All events in March and through the end of the ski season have been canceled • Pink Vail and Superhero ski day are looking at options to host a non skiing event in the future. • Taste of Vail is evaluating some July dates but will likely hold off until September and make the fall event bigger. • Powabunga is postponing until closing weekend 2021. There are some opportunities to use the deposits paid to talent later this year for one off concerts, not the full festival though. • Spring Back to Vail is working with staff on some date options later in the year. • Early summer (June) events are all considering postponing to later in the summer. Many will make the final decision in May delaying the decision as long as possible. This includes Art Fest, Burger Battle and Craft Beer Classic, Farmers Market (looking at virtual market to start the season), Vail Whitewater Races, etc. b. Reallocation of funds/Town Council Event Policy Update Rediker – This year may not be the year to fund large events. What might seem safe at the beginning of June may not be safe come end of September if there is a second wave of COVID- 19. Those funds may be better utilized in other ways. June 2, 2020 - Page 215 of 235 Want to make sure we are being fiscally responsible as we can AND safely and responsibly Vlaar – A memo on how we are funding large events was presented at Council meeting on 3/31 explaining what our overall philosophy is: 1. priority is to keep people healthy and safe 2. Special events are a key driver to our economy c. Rescheduling events – Calendar Review • We need to determine with individual producers what their drop dead date to have approval to hold an event and the event date • How are we going to reimburse people who have already spent the money? • What is Econ Dev Staff doing moving forward with Events: • Biggest concern is if and when we are able to start gathering again, what do those events look like. How do you modify the event within whatever the public health guidelines are. • We’ve recognized that there is going to be compression toward the end of the summer • Need clarity from CSE and Council – What about weekdays vs. Weekends? Ie: Bluegrass on Wednesdays. • We have shifted our primary focus for VLMDAC marketing dollars to Front Range / drive market • As we reschedule events and Econ. Dev sees that it may not be beneficial to the community as a whole, that is when that specific event will be brought before CSE for review, feedback, funding options. • Rediker - Can you give an example – Powabunga – I know they spent a lot of money already getting ready for that event. For them and for future events how are we handling that? Are we paying them in full or just paying them for what they already spent? • Events we’ve paid some funds to already: a. Powabunga received first payment. They’ve received 1/3 of their funding. They can show us what expenses they can’t roll to next year and what can be. Ie: Some marketing that has already been spent. They don’t need to re-apply in the fall. We will re-evaluate what we are funding them, knowing there is already working capital they have. • Davis - We need to reconvene for a funding meeting when everything settles. There are going to be producers that suffer loss. We need to also look at what remaining calendar is left and we shouldn’t stack events that aren’t seasonally accurate. • Gordon – Is it the right decision for us to be hosting any events this summer? We need to worry that Vail having an event may be seen as n egative. It MAY be that the best and right move is a campaign saying there are wide open spaces - come up here and relax. Events may be a negative. Concerned that we might be jumping the gun. We need to have broader discussion with CSE, experts, and we make a recommendation to Council on what is the path forward for summer, fall, and next winter. • Wadey – Vail America Days – How do we mitigate that many people in town? 4. 9:20 a.m.: Public Comment/Event Producer Open Discussion (30 Minutes) Event Producers Comments - Angela Mueller, Farmers market o We are looking into holding a virtual farmers market o Taste of Vail Update: We have taken time to work with wineries and vendors to keep them in the loop. We are looking at July and September date options. - Vail Symposium did hold 14 of their 21 and are holding two of their upcoming events virtually June 2, 2020 - Page 216 of 235 - Austin Gavlak, Powabunga: o We are trying to figure out best way to pivot. We are trying to use “postpone” not “cancel” because we are in a position where we have a lot of money out and we are in a position where vendors don’t necessarily want to re-fund. Initial thought – would be really hard to do in the summer or early winter. It’s a springtime skiing event, pond skimming, etc. We have top tier talent signed on and they are interested in doing something early winter. Mid- December. Have opportunities to do lodging deals with Arrabelle, Evergreen, Antlers, etc. Consensus of shift in industry is more value focused and we want to shift there. We need to offer great value to get people back up to Vail to celebrate return of ski season. If you’re a powabunga ticket holder, your ticket rolls over to 2020 early winter season plus more value but we will need to work quickly to do that to give our audience and customers ▪ Wadey – You’ll need to submit a plan to Jeremy and Mia to review to see if that is something that is feasible. ▪ Biszantz – can we provide a template/process for producers? ▪ Gross – Yes, we can also produce a mid-cycle funding process for funding that may be coming back to us if money is made available by council. ▪ Biszantz – What does it look like if COVID comes back in December for you, Austin ▪ Gavlak - There are some safety nets we can put in but there are a lot of expenses that we can’t recoup. ▪ Gavlak - Are you interested in funding events in August? What are need times now? We have a couple ideas. Should we be looking to spend any energy on certain dates? ▪ Vlaar – we aren’t at that point yet because it’s so fluid. We don’t have actual data points that allow us to shift our approach and know when we can even start inviting people back to Vail. ▪ Wadey – If you do have any ideas, get them on paper so we have ideas and we can be nimble when we do get the go-ahead. Ie: art installation or something that may set us apart from other communities that is less of a cost and smaller gathering. - Mark Foster, Vail LAX shootout: o Our attendees need to be able to enjoy restaurants and hotels so it will need to be a wait and see if people can participate within the town. o Wadey - Do you see teams withdrawing? o Foster - We have 50% people traveling out of state. Virginia has a stay at home until late June. It is individual family by family - Sarah Frank, VVF: Thank you Mia and Jeremy for all your work to move Mountain Games. We are taking our event and the circumstances very seriously o Statement to group: Be sensitive to the message we are getting out there and how we want to represent Vail. Keep event producers informed so we are all sending the same message on how we invite people back up to Vail. - Mike McCormack, Outlier: o Just a note: We hold Breck Epic in late August – 35% international and 35% Destination and we haven’t seen a swell in refund requests that we thought we might so there is reason for optimism o USFS had put an immediate halt on all applications until 2021 so we will have to cancel 100 Gravel Race portion of Vail Outlier because of that. o Going to continue the MTB portion and all other portions of the event 5. @ 9:50 .a.m.: New Business (10 minutes) Motion to adjourn – Valenti/Biszantz/Unanimous Adjournment @10:00 a.m. June 2, 2020 - Page 217 of 235 COMMISSION ON SPECIAL EVENTS MEETING Wednesday, May 6th, 2020 @ 8:30a.m.-10:30a.m. MINUTES: Meeting materials can be accessed at the following link: May Meeting Materials Present: Mia Vlaar, Liz Gladitsch, Jeremy Gross, Jill Lau, Alison Wadey, Kim Rediker, Marko Valenti, Sam Biszantz, Barry Davis, Mark Gordon, Scott Robson 8:36 Call to order 1. @ 8:30a.m.: Administrative Items (5 minutes) a. Approval of the Minutes from the CSE Meeting on 4/1/2020 • Motion to approve the minutes from the April 1 meeting. • Davis/Rediker/Unanimous b. Upcoming Meeting Reminders • June 3, 2020 • Meetings will be returning to in person likely at the end of May. Decision will be based on county guidelines on number of people gathering. 2. 8:35 a.m.: Recaps (60 Minutes) a. 10th Mountain Parades (10 Minutes) – Fred Rumford • Davis – Fireworks seemed like a good value. Rumford – the total length of fireworks from the whole season was probably less than 4 minutes. It was a short show at each event with small shells and sparklers/sprinklers. • Motion to release final funding • Rediker/Davis/unanimous b. Through The Lens (10 Minutes) • Aside from the recap, they have done a virtual tour of the museum and are looking how they can adjust their exhibits and operations to abide by social distancing • Motion to release final funding • Marko/Davis/Unanimous c. Vail Yeti (10 Minutes) • 9 games canceled, 7 due to covid, 2 due to weather • Saw great attendance throughout the season and had an increase in overnight stays from away teams through partnerships with lodging • Motion to release final funding • Rediker/Biszantz/Unanimous d. Vail Astronomy Nights (10 Minutes) June 2, 2020 - Page 218 of 235 • Looking to create a smaller view station that you can put up and keep up for longer periods of time • Summer Social Distancing Opportunity 1. Could be done with social distancing in the summer 2. Doing a pre-view before going to view the telescope • Kim – This is a great smaller footprint, big impact event • Rediker – The marketing was done well. I really like the creative and the outreach to lodging was good. • Motion to release final funding • Rediker/Davis/Unanimous e. Steadman Clinic Vail Cup (10 Minutes) • 2021 survey needs to address NPS and spending • Davis – What a great way to showcase and get kids excited. I took my kid to watch to get him excited to compete next year. We enjoyed the experience and are looking towards next year. • Valenti/Davis/Unanimous f. Vail Veterans Program (10 Minutes) • Motion to release final funding • Valenti/Rediker/Unanimous 3. 9:35 a.m.: Starting Hearts Proposed Change for Heart and Sole Funded Event (10 Minutes) • Initially impacted by COVID-19 Starting hearts canceled the Heart and Sole event and began working with the Vail Rotary on expanding the scope of their annual first responders appreciation event. Starting hearts is requesting to reallocate their $5000 E&E funding from Heart and Sole to this new event. The event is scheduled for September 10th at Donovan. • Davis – What will September 10th look like. If it opens and we have all of the events looking to rescheduling to that date it could become too congested. • Rediker - What is the process for reviewing and approving these decisions? o Gross - We are reviewing these on a case by case basis as the event producers develop enough of a new plan to propose. o CSE asked for this approval to be tabled until staff can develop some process guidelines and share a more complete picture of the rescheduled calendar of events. A special meeting has been scheduled for May 20 to discuss the process for reviewing changes to events. • Motion to direct staff to create a structure to evaluate event changes. • Valenti/davis/unanimous • Whitewater is moving forward in June with Public Health approval. o Kayaking and sup only. No 2 man rafting. o Togo afterparty 4. 9:45 a.m.: Mountain Art Collective Place Holder (10 Minutes) • Tabled to next meeting 5. 9:55 a.m.: COVID-19 Update – (15 minutes) a. Town Manager Update June 2, 2020 - Page 219 of 235 • Council Meeting Update – 5/5/2020 • Implementing Major Recession Budget Reductions • 20-25% budget reduction in revenue collections projected • CIP delays, operations cuts around 10% • Confident that 2021 will be a robust event season with changes to event operations. Events will remain a backbone to the tourism economy. • Council wants to see staffing match visitation needs and will look to delay seasonal hiring’s and minimize layoffs and furloughs. • Thank you to everyone’s flexibility though these times. CSE and events will be foundational in how we recover b. Event Cancellations and Postponements Update • Vail LAX Tournament Rescheduled July 27-29 • Vail LAX shootout – Canceled June/July dates – Evaluating how to hold a smaller, regional tournament in July or August • King of Mountain Canceled original June dates – reevaluating how they could make it happen under current public health guidelines later in the summer • Art Festival: tentative date in August that works for Arrabelle . Also evaluating other options such as spreading the vendors out over a few weekends • Vail White Water Series – May canceled and June they are looking at water levels o Joel: Approval from public health for June Tuesdays. No 2-man rafting. Only kayaking and SUP o Working on a to-go afterparty take-out food and beer • Bravo – European orch. Canceled and we will get another update soon from them on other events this summer. • Bluegrass – one band booked for July 22 and held off on contracts for the rest. He is very flexible on scope and audience • Farmers Market – June dates have been canceled for in person market and virtual market will launch mid-june. First market in July will likely be July 12. Working on public health • Hot Summer Nights through June canceled c. Event Brainstorming – July 4th • Biszantz: Worry about ability to manage public health order - The amount of staff we are going to need to make sure guests abide by rules/standards. Even in early May guests were coming into the village and into businesses and not wearing masks or abiding by protocol. June 2, 2020 - Page 220 of 235 • Wadey: Vail Health wants to test this summer so they can be ready for winter. Don’t be too conservative this summer so they can be well tested and prepped. • Highline to send an outline of working on tactical approach for July 4th and CSE can weigh in via email 11:15 a.m. Motion to adjourn Davis/Valenti/Unanimous You must register for the webinar prior to being able to join. Please register ahead of time here https://zoom.us/webinar/register/WN_oqtV4mLyQQCvcZvaOFaQmA. During the webinar, you can use the Q&A feature to ask questions to the CSE or you can use the Raise Hand button to request to be un-muted. June 2, 2020 - Page 221 of 235 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: V L HA A pril 28, 2020 Meeting Results AT TAC H ME N TS: Description V L H A April 28, 2020 Meeting Results June 2, 2020 - Page 222 of 235 Vail Local Housing Authority Meeting Results April 28, 2020 3:00 PM Virtual Meeting 75 S. Frontage Road - Vail, Colorado, 81657 1. Call to Order 1.1. Link to Virtual Meeting 1.2. Call to Order A quorum being present Lindstrom called the meeting to order at 3:12PM. Ruther and Campbell are present from staff. 2. Citizen Participation 2.1. Citizen Participation No one from the public present on virtual meeting. 3. Approval of Minutes 3.1. VLHA April 14, 2020 Meeting Results MOTION: MC DOUGALL SECOND: MOFFET VOTE: 5-0 APPROVED 4. Main Agenda No Main Agenda items are scheduled for this meeting. 5. Matters from the Chairman and Authority Members 5.1. Matters from the Chairman and Authority Members Presenter: Steve Lindstrom, Chairman Moffet asked outcome of turning Chamonix Vail to Town of Vail housing priority. Ruther updated the Authority, deed restriction updated to reflect 75% of income needs to be met in Eagle County. The Town’s preference to purchase and or rent was not approved by Council. No other action is needed by VLHA. Discussion ensued regarding the status of delinquent homeowner and resale. The Town has met all owner ’s requests. At this point the Town has exhausted all options to resolve. The Town has reached to the legal department to start legal June 2, 2020 - Page 223 of 235 action and take possession. Morales requested to see an update on the 2019 EHU compliance at the next meeting. Moffet said good idea to let people know Town is serious about compliance. Ruther indicated as the number of restrictions increase in the Town the Housing department will have a proposition to manage compliance. The Authority questioned when in person public meetings will be held. Ruther noted however, the Town is looking to have in person meetings in June and July. Morales, Lindstrom and Moffet attended COVID-19 crisis and mountain resort community’s webinar and shared their take-aways. Bottom line it’s too early to tell impact. Impact not selling due to no open houses. Discussion followed regarding current short-term rental (STR) status due to COVID- 19 and moving forward with how to motivate STR owners to move to long term rentals. Moffet believes the Town should use this real estate market to purchase employee housing units. Ruther updated VLHA May 5, Council is discussing with Magellan Strategies and Summit Information Services the notion of community polling about initiative in 2020. He asked if they would listen to the meeting. Question is not about putting item on ballot rather should the Town re-poll the community at this time. Wilkins and Moffet do not feel this is the year for the initiative. Moffet motioned to exit the regular meeting and move to executive session. MOTION: MOFFET SECOND: MORALES VOTE: 5-0 APPROVED 6. Executive Session 6.1. Executive Session per C.R.S. §24-6-402(4)(a)(e) - to discuss the purchase, acquisition, lease, transfer, or sale of property interests and to determine positions, develop a strategy and instruct negotiators, regarding: submitted Vail InDEED applications, program details and Middle Creek at Vail. Presenter: Lynne Campbell, Housing Coordinator Wilkins made a motion to exit the executive session and return to the regular meeting. MOTION: WILKINS SECOND: MC DOUGALL VOTE: 5-0 APPROVED June 2, 2020 - Page 224 of 235 7. Any Action as a Result of Executive Session 7.1. Any Action as a Result of Executive Session Morales made a motioned recommending staff continue with the four (4) Vail InDEED applications as reviewed in executive session. MOTION: MORALES SECOND: WILKINS VOTE: 5-0 APPROVED 8. Adjournment 8.1. Adjournment 5:00 PM (estimated time) Wilkins made a motion to adjourn the meeting at 4:44PM. MOTION: WILKINS SECOND: MOFFET VOTE: 5-0 APPROVED 9. Future Agenda Items 9.1. Deed Restriction Compliance and Enforcement Policy Recommendation Incentives for Long Term Rentals in the Town of Vail Housing Sites Discussion Land Banking (sale of GRFA) Public Health Housing Incentive, Eagle County Health Housing Funding Criteria June 2, 2020 - Page 225 of 235 2020 Annual Compliance 10. Next Meeting Date 10.1. Next Meeting Date May 12, 2020 Meeting agendas and materials can be accessed prior to meeting day on the Town of Vail website www.vailgov.com. All housing authority meetings are open to the public. Times and order of agenda are approximate, subject to change, and cannot be relied upon to determine at what time the Vail Local Housing Authority will discuss an item. Please call (970) 479-2150 for additional information. Please call 711 for sign language interpretation 48 hours prior to meeting time. Housing Department June 2, 2020 - Page 226 of 235 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: May Revenue Update AT TAC H ME N TS: Description April Revenue Update June 2, 2020 - Page 227 of 235 1 TOWN OF VAIL REVENUE UPDATE June 2, 2020 Sales Tax Upon receipt of all sales tax returns, April collections are estimated to be $356,061 down 75.4% from last year. Year to date collections of $10,915,312 are down 21.5% from prior year and up 13.6% from amended budget. Inflation as measured by the consumer price index was up 0.3% for April. The 2020 original budget of $28,524,000 was amended to $21,374,000 in April and is proposed to be amended again to $16,800,000 during today’s budget supplemental. This is a total decrease of 41% from the 2020 original budget and a 40% decrease compared to 2019 collections of $29,250,698. Real Estate Transfer Tax (RETT) RETT collections through May 27 total $2,069,914 down 17% from the prior year. The 2020 annual RETT budget totals $6,300,000, down 12.8% from 2019 collections. Construction Use Tax Use Tax collections through May 27 total $557,755 compared to $846,684 from this time last year. The 2020 budget totals $2,220,000, down 11.2% from 2019 collections. Summary Across all funds, year-to-date revenue of $25.8 million is down 3.2% from amended budget. Year-to-date revenue is down 17.5% from prior year attributed to the economic impacts of COVID-19 on sales tax collections, parking sales, lift tax, and construction activity. June 2, 2020 - Page 228 of 235 MEMORANDUM June 2, 2020 To: Vail Town Council Kathleen Halloran From: Alex Jakubiec Re: April 2020 Sales Tax and COVID-19 Impact Reporting Vail will collect an estimated $21,670 in additional April sales tax to bring collections up to $356,061. Due to the economic impacts of COVID 19 on the business community, the Vail Town Council elected to defer sales tax payments until August 2020; businesses are still required to file regular sales tax returns while deferring payments. A further analysis of the deferred April sales tax payments has been provided on page three of this memo. April will be down (75.4)% or $(1,089,010) from April 2019 and up 1.7% or $6,061 from the amended budget. June 2, 2020 - Page 229 of 235 2020 Amended2020 YTD Budget % change % change 20152016201720182019BudgetTotal Variance from 2019 from BudgetJanuary3,696,798$ 3,738,824$ 3,725,212$ 3,597,610$ 4,079,994$ 4,061,971$ 4,023,457$ -$ 4,023,457$ (38,514)$ -1.39% -0.95%February3,593,947 3,746,055 3,692,592 3,818,356 4,137,087 4,135,058 3,076,032 1,190,902 4,266,933 131,875$ 3.14%3.19%March4,053,961 4,225,921 3,642,407 4,167,880 4,237,933 1,059,003 1,484,139 784,721 2,268,861 1,209,858 -46.46% 114.24%April1,370,929 1,089,749 1,386,780 1,233,474 1,445,071 350,000 334,391 21,670 356,061 6,061 -75.36%1.73%YTD Total12,715,635$ 12,800,549$ 12,446,991$ 12,817,320$ 13,900,085$ 9,606,032$ 8,918,019$ 1,997,293$ 10,915,312$ 1,309,280$ -21.47% 13.63%May584,454 654,462 659,475 830,193 763,756 425,000 June1,242,400 1,318,092 1,389,982 1,648,443 1,606,748 562,264 July1,937,989 2,053,773 2,215,649 2,412,425 2,498,020 874,209 August1,702,579 1,849,815 1,863,949 2,195,175 2,247,250 898,804 September 1,240,277 1,349,929 1,385,462 1,540,490 1,609,132 643,553 October835,649 906,385 936,954 1,106,596 1,234,105 490,116 November997,100 989,320 997,716 1,264,600 1,263,064 767,472 December 3,885,849 3,840,919 3,695,305 4,070,870 4,283,668 2,532,550 Total25,141,932$ 25,763,244$ 25,591,483$ 27,886,112$ 29,405,827$ 16,800,000$ Actual CollectionsTOWN OF VAILSALES TAX2020 Budget ComparisonCollected Sales TaxDeferred Sales Tax0.000.250.500.751.001.251.502015 2016 2017 2018 2019 2020April Sales Tax By Year(in Millions)June 2, 2020 - Page 230 of 235 April Sales Tax Collected Vs. Deferred 1,050 Businesses filed and paid their April Town of Vail sales tax for a total of $334,391 collected revenue. 138 Businesses have not yet paid their April taxes for a total of $21,670. Town of Vail COVID-19 Sales Tax Impact Reporting In same period, prior year; Retail businesses comprised 42% of all sales tax collected; Accommodation Services were 24%; Food and Beverage were 23%; and Other businesses were 11%. Deferred Sales Tax by Business Type Paid Sales Tax by Business Type Overall, 138 businesses filed returns for April without payment. Of these 138 outstanding returns; 93 businesses are located in Vail Village, 16 in Outlying Neighborhoods, 21 in Lionshead, and 8 Out of Town. Deferred Vs. Collected Sales Tax By Business Location April Tax Payments Collected Vs. Deferred Collected $334,391 94% Deferred $21,670 6% 1,050 Collected Payments 88% 138 Deferred Payments 12% Accommodation Services $11,746 - 3% Other $116,006 35% Food and Beverage $14,438 4% Retail $192,201 57% Accommodation Services $3,234 - 15% Other $30 0% Food and Beverage $3,385 16% Retail $15,021 69% 106.4 21.8 11.7 195.0 9.8 9.8 1.8 0.2 OUTLYING NEIGHBORHOODS VAIL VILLAGE LIONSHEAD VILLAGE OUT OF TOWN Deferred Revenue Collected Revenue (in Thousands) June 2, 2020 - Page 231 of 235 Vail Business Review March 2020 June 2, 2020 The Vail Business Review breaks down the four percent sales tax collected for the month of March. Overall March sales tax decreased (46.6)% with retail decreasing (40.2)%, lodging decreased (49.1)%, food and beverage decreased (58.0)%, and utilities/other decreased by (14.0)%. Excluding the out of town category; sales tax for the month of March was Down (51.0)%. Town of Vail sales tax forms, the Vail Business Review and sales tax worksheets are available on the internet at www.vailgov.com. You can subscribe to have the Vail Business Review and the sales tax worksheet e-mailed to you automatically from www.vailgov.com. Please remember when reading the Vail Business Review that it is produced from sales tax collections, as opposed to actual gross sales. If you have any questions or comments please feel free to call me at (970) 479-2125 or Carlie Smith at (970) 479-2119. Sincerely, Alex Jakubiec Town of Vail Revenue Manager June 2, 2020 - Page 232 of 235 Retail 189,677.09 213,288.51 -11.07% Lodging 178,218.20 308,864.99 -42.30% F & B 49,628.38 85,423.90 -41.90% Other 4,446.06 9,656.94 -53.96% Total 421,969.73 617,234.34 -31.64% Retail 108,911.50 267,441.42 -59.28% Lodging 311,697.95 612,471.38 -49.11% F & B 62,316.77 180,444.26 -65.46% Other 2,233.72 4,543.21 -50.83% Total 485,159.94 1,064,900.27 -54.44% Retail 189,814.81 160,607.33 18.19% Lodging 3,714.17 16,275.64 -77.18% F & B 268.64 1,165.38 -76.95% Other 170,198.63 182,414.32 -6.70% Total 363,996.25 360,462.67 0.98% Retail 268,117.01 624,066.61 -57.04% Lodging 423,975.98 863,728.97 -50.91% F & B 286,539.11 682,988.48 -58.05% Other 19,102.97 31,334.46 -39.04% Total 997,735.07 2,202,118.52 -54.69% Retail 756,520.41 1,265,403.87 -40.22% Lodging 917,606.30 1,801,340.98 -49.06% F & B 398,752.90 950,022.02 -58.03% Other 195,981.38 227,948.93 -14.02% Total 2,268,860.99 4,244,715.80 -46.55% Retail Apparel 103,609.05 216,465.79 -52.14% Retail Food 158,071.64 175,211.21 -9.78% Retail Gallery 1,520.40 5,786.58 -73.73% Retail Gift 2,116.98 7,368.52 -71.27% Retail Home Occupation - 184.83 -100.00% Retail Jewelry 13,988.27 21,906.96 -36.15% Retail Liquor 46,012.51 65,853.18 -30.13% Retail Other 221,304.31 226,014.70 -2.08% Retail Sport 209,897.25 546,612.10 -61.60% Total 756,520.41 1,265,403.87 -40.22% Cascade Village / East Vail / Sandstone / West Vail Town of Vail Business Review March 2020 Sales Tax March 2020 Collections March 2019 Collections March % Change Total - All Areas Lionshead Out of Town Vail Village Retail Summary June 2, 2020 - Page 233 of 235 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: Executive Session, pursuant to: 1) C.R.S. §24-6-402(4)(b) - to receive legal advice on specific legal questions; Regarding: Z oning Process P RE S E NT E R(S ): Matt Mire, Town Attorney June 2, 2020 - Page 234 of 235 VA I L TO W N C O UNC I L A G E ND A ME MO I T E M /T O P I C: Recess at 5:35 pm (estimate) June 2, 2020 - Page 235 of 235