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HomeMy WebLinkAbout2023-06-20 Agenda and Supporting Documentation Town Council Afternoon Meeting Agenda1.Presentation/Discussion 1.1 Eagle River Water and Sanitation District Presentation Part 2 45 min. Listen to presentation. Presenter(s): Siri Roman, ERWSD General Manager 2.12:30pm Joint Meeting with Board Of County Commissioners (BOCC) (120 min.) 2.1 Water Issues, State of the River, and Conservation 2.2 Housing - State Land Board Progress, Timber Ridge, Other Matters 2.3 Zip Car/Ride Share Recap 2.4 Legislative Partnerships 2.5 Climate Action Collaborative Update from Mayor Langmaid & Commissioner Scherr 2.6 Wildfire Preparation, Drought, Property Tax Assessment Rates, and Other Issues 3.Presentation/Discussion 3.1 Gramshammer Memorial at Children's Fountain Discussion 20 min. Listen to presentation and provide feedback. Presenter(s): Todd Oppenheimer, Capital Project Manager/Landscape Architect Background: 2023 is the 4-year anniversary of the passing of Pepi Gramshammer. Several concepts for a meaningful tribute to this legendary individual have been considered. This presentation outlines a new concept for Pepi’s Tribute prepared by Chevo Studios, provides a recommended project budget and a request for funding to be included in the VAIL TOWN COUNCIL MEETING Afternoon Session Agenda Town Council Chambers and virtually via Zoom Zoom Meeting Link: https://us02web.zoom.us/webinar/register/WN_A22vwuUVQcuJFBltTQz9Og 11:35 AM, June 20, 2023 Notes: Times of items are approximate, subject to change, and cannot be relied upon to determine what time Council will consider an item. 230614_to VTC re second work session.pdf 20230620_TOV_part 2_Water supply.pdf 1 Supplemental Budget which is before the Council at this time. 3.2 West Vail Multi-Family Zone District Discussion 45 min. Listen to presentation and provide feedback. Presenter(s): Greg Roy, Planning Manager Background: The applicant, Town of Vail, is proposing to update the Vail Town Code with the creation of the West Vail Multi-Family Overlay District (WVMF). The zone district is the first step in the implementation of the West Vail Master Plan that was adopted by the Town of Vail in November of 2021. 3.3 2022 Audited Financial Statements for the Town of Vail 10 min. The 2022 audited financial statements are presented to Town Council for information only; No action requested. Presenter(s): Carlie Smith, Finance Director and Michael Jenkins, McMahan and Associates Background: In accordance with section 9.11 of the Vail Town Charter, an independent audit shall be made of all town accounts at least annually. The audit shall be conducted by certified public accountants and made available for public inspection. The 2022 audit was conducted by McMahan and Associates. 4.DRB / PEC (5 min.) 4.1 DRB/PEC Update 5.Information Update 5.1 May 1, 2023 AIPP Meeting Minutes 5.2 May 3, 2023 CSE Meeting Minutes 5.3 May 23, 2023 VLHA Meeting Minutes 6.Matters from Mayor, Council and Committee Reports (10 min.) 7.Executive Session (80 min.) Executive Session pursuant to: Town Council 6.20.23.docx FINAL Vail Childrens Fountain - Design Concepts Packet 17x11 - 06.06.23.pdf Public Input Childrens Fountain.pdf West Vail Staff Memo 6-20-23.pdf Attachment B. Chamonix Ln - Development Scenario.pdf Public Input West Vail.pdf Town of Vail Audited 2022 Financial Statements (FINAL).pdf 230620 2022 Audit Powerpoint Town of Vail 2022 Audit Presentation (McMahan).pdf DRB Results 6-7-23.pdf May 1, 2023 - Minutes.pdf CSE_Minutes_5.1.23_-_Approved.pdf 2023-05-23 VLHA Minutes.pdf 2 1. C.R.S. §24-6-402(4)(b) to hold a conference with the Town Attorney, to receive legal advice on specific legal questions, and C.R.S. §24-6-402(4)(e) to determine positions relative to matters that may be subject to negotiations, develop a strategy for negotiations, and/or instruct negotiators regarding the following topics: 1) Town of Vail v. TIGA Advertising, Inc. and Gregory Moffet, case number 21CV30034; 2) The deed restriction applicable to North Trail Townhomes, 2477 Garmisch Drive #D, Vail, CO 81657; and 3) Town of Vail v. The Vail Corporation, et al., case number 2022CV30193. 2. C.R.S. §24-6-402(4)(e) to determine positions relative to matters that may be subject to negotiations, develop a strategy for negotiations, and instruct negotiators; and C.R.S. §24-6- 402(4)(a) to consider the purchase, acquisition, lease, transfer or sale of real, personal or other property, on the topic of the potential purchase of certain real property from the Colorado Department of Transportation. 8.Recess 5:20pm (estimate) Meeting agendas and materials can be accessed prior to meeting day on the Town of Vail website www.vailgov.com. All town council meetings will be streamed live by High Five Access Media and available for public viewing as the meeting is happening. The meeting videos are also posted to High Five Access Media website the week following meeting day, www.highfivemedia.org. Please call 970-479-2136 for additional information. Sign language interpretation is available upon request with 48 hour notification dial 711. 3 AGENDA ITEM NO. 1.1 Item Cover Page DATE:June 20, 2023 TIME:45 min. SUBMITTED BY:Stephanie Bibbens, Town Manager ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion SUBJECT:Eagle River Water and Sanitation District Presentation Part 2 SUGGESTED ACTION:Listen to presentation. PRESENTER(S):Siri Roman, ERWSD General Manager VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 230614_to VTC re second work session.pdf 20230620_TOV_part 2_Water supply.pdf 4 MEMORANDUM TO: Vail Town Council FROM: Siri Roman, General Manager DATE: June 14, 2023 RE: Regional water and wastewater utility planning Many water and wastewater utilities on the western slope are dealing with similar challenges – increased regulatory pressures, system risks due to impacts of a changing climate (e.g., multi- year droughts, fires, mudslides, diminishing supplies), aging infrastructure and, because of these cumulative pressures, increasing rates. We appreciate Vail Town Council hosting us on June 6 and 20 to hear about current priorities, the water supply outlook, and how best our entities can align on encouraging our community to use less water. During the June 6 work session, we discussed: • How regional water and wastewater service developed in eastern Eagle County • Operational overview: regulatory drivers and priorities, including: o PFAS (Per- and polyfluoroalkyl substances) o Nutrient regulations o Aging infrastructure • Securing our water future o Climate change o Bolts Lake o Water conservation • Current rates and moving towards an equitable rate structure During the June 20 work session, we will focus on: • The water dedication and ability to serve process • Water supply outlook • Alignment with and connection to land use authorities • Future development and workforce housing On June 20, Director of Engineering Jason Cowles, Director of Business Administration David Norris, and Communications, and Public Affairs Manager Diane Johnson will join me. We look forward to discussing these topics and any others you may have with you and county staff. 5 Water and our community – Part 2 June 20, 2023 – Vail Town Council 6 Refresher – District Water Service Area 7 Refresher – Authority Water Service Area 8 Gore / Eagle River Valley History 4 FROM FARMING TO RANCHING TO SKI RESORT DEVELOPMENT 9 Augmentation Sources 10 Water Dedication Policy 6 •Applies to: •Developments seeking new water service from the District and Authority •Redevelopments that result in an increase in water use •Requires either a dedication of water rights if the property has water rights that are acceptable for dedication, or •A cash payment in lieu of a water rights dedication for a commitment of water rights to serve the proposed uses of the development. •Water dedication process must be completed before the District/Authority will issue an Ability to Serve Letter to the Land Use Authority. 11 System Reliability & Strategic Reserve Policy POLICY REGARDING WATER SYSTEM RELIABILITY AND STRATEGIC IN-BASIN STORAGE RESERVE TARGET- ADOPTED MARCH 25, 2021 7 •“Reliability” is the system’s capability of meeting all demands in a selected drought occurrence interval (e.g., 1:10 years, 1:20 years, etc.) •Higher Reliability = Higher Cost •The District and Authority adopted a 95% reliability policy. Water supplies are planned for the 1:20 year drought event •“Strategic Reserve” is the amount of water stored in in-basin storage in the 95th percentile year. •The Strategic Reserve is defined as 10% of the projected annual municipal demand 12 Water Supply System Model Components 8 INFRASTUCTURE Key diversions, wells, reservoir systems, and system interconnects. WATER DEMANDS Consumptive demands (municipal, snowmaking, and irrigation demands) & non- consumptive demands (instream flows/recreation) POLICY System Reliability and Strategic Reserve Policy, Unallocated Water Policy, Water Conservation, etc. BASINWIDE ISSUES Interstate Compact Administration, Shoshone Operations Protcol, etc. AGREEMENTS Local agreements (ERMOU, Homestake, Eagle Park, Vail Resorts, Minturn/Battle North, Wolcott, etc.) and basinwide agreements (HUP, Green Mountain, Blue River decree, 15-mile reach, etc.) CLIMATE CHANGE OPERATIONS Detailed operations supporting the allocation of supplies to demands directly or by exchange and augmentation accounting. As well as key Eagle River, Colorado River, and transbasin operations impacting water availability. WATER RIGHTS Direct flow, storage, and exchange water rights specific to ERWSD and UERWA, and all other users in the Eagle River and Colorado basins. Including instream flow rights and augmentation plans. Historical hydrology, and climate adjusted hydrologies and demands (warm & wet/median/hot & dry) 13 Climate Change Hydrology 9 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mo n t h l y F l o w ( A F ) Average Simulated Conditions, Eagle River at Gypsum (09070000) Historical Climate Warm and Wet Median Hot and Dry -2% -11% -22% - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 Historical Climate Warm and Wet Median Hot and Dry An n u a l F l o w ( A F ) 14 ERWSD Water Supply Modeling 15 ERWSD Vail Buildout 11 •Buildout projected based on Single Family Equivalents (SFE) •What is an SFE? •Dwelling unit up to 3,000 square feet equals 1 SFE •2,000 square feet of commercial space is approximately 1 SFE •Hotel rooms range from 0.35 to 0.5 SFEs depending on presence of cooking facilities •District currently provides water service to approximately 10,744 SFEs in Vail •District projected 12,914 SFEs for water supply modeling based on the Town’s traffic impact fee study, which projected 2,000 additional dwelling units and 500,000 square feet of commercial development in the Town. 16 Vail – New Service Commitments 12 17 Vail – Upzoning Projects 13 18 Vail – Upzoning Projects 14 19 Vail – Upzoning Projects 15 20 Vail – Upzoning Projects 16 21 ERWSD – Modeling Conclusions 17 •The District has sufficient physical and legal augmentation supplies to meet the build out demands within its Vail water service area for 12,914 SFEs. •Climate change models indicate there will be an increasing likelihood of drought, decreased snowpack, warmer temperatures, earlier spring runoff, and an overall reduction in streamflows in Gore Creek. •Water conservation is critical to mitigating community impacts to Gore Creek under a warming climate, preserving in-basin water supplies, and improving water supply reliability in dry years, but does not result in new supplies that can be committed to new uses. 22 Town of Vail Land Use Coordination 18 •The District is committed to serving land uses in the Town. Improved coordination and planning is crucial to ensure that we can provide adequate infrastructure and water supply to meet the needs of the Town. •Revisit processes to improve connection between land use and water use during land use planning and entitlement processes. •Update development codes to connect landscaping and irrigation use. •Continue targeted reductions in use of non-functional turf/grass in landscapes. •Promote native, drought tolerant landscapes that require less water for supplemental irrigation. 23 Authority Water Supply Modeling 24 Authority Unallocated Water Policy 20 •Unallocated Water Rights may be allocated on a first come first serve basis where the Authority has determined that a developer is not able to meet the relevant water dedication requirement, has agreed to make a cash payment in lieu of such dedication, and is proposing a development that complies with the Authority’s Water Management Plan objectives. •Mandatory review and reevaluation of policy if the amount of Unallocated Water Rights is reduced by 150 acre-feet or if the amount of storage comprising the Unallocated Water Rights is less than 50 acre-feet. •The Authority adopted this policy on May 26, 2016. 25 Authority Entities 21 26 Authority Built Out Entities 22 27 Authority Entities Not Built Out 23 28 Authority – Potential New Water Service 24 29 Authority – Modeling Conclusions •The Authority has sufficient water supply to meet its existing commitments under historical hydrology if it achieves its water conservation goals but is at risk of future water supply shortages due to the impacts of climate change. •The Authority has 87.4 acre feet of water from Eagle County that is reserved for the water dedication requirements of affordable housing projects that meet certain affordability criteria. This water would be sufficient to meet the water dedication requirements of a housing development on State Land Board property. •Without additional in-basin water supplies, the Authority does not have sufficient reliable in- basin water supplies to commit to other new uses without increasing its risk of future water supply shortages. •Water conservation is critical to mitigating the Authority’s impacts to the Eagle River under a warming climate, preserving in-basin water supplies, and improving water supply reliability in dry years, but does not result in new supplies that can be committed to new uses. 25 30 AGENDA ITEM NO. 2.1 Item Cover Page DATE:June 20, 2023 SUBMITTED BY:Steph Johnson, Town Manager ITEM TYPE:Worksession AGENDA SECTION:12:30pm Joint Meeting with Board Of County Commissioners (BOCC) (120 min.) SUBJECT:Water Issues, State of the River, and Conservation SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 31 AGENDA ITEM NO. 2.2 Item Cover Page DATE:June 20, 2023 SUBMITTED BY:Steph Johnson, Town Manager ITEM TYPE:Worksession AGENDA SECTION:12:30pm Joint Meeting with Board Of County Commissioners (BOCC) (120 min.) SUBJECT:Housing - State Land Board Progress, Timber Ridge, Other Matters SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 32 AGENDA ITEM NO. 2.3 Item Cover Page DATE:June 20, 2023 SUBMITTED BY:Steph Johnson, Town Manager ITEM TYPE:Worksession AGENDA SECTION:12:30pm Joint Meeting with Board Of County Commissioners (BOCC) (120 min.) SUBJECT:Zip Car/Ride Share Recap SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 33 AGENDA ITEM NO. 2.4 Item Cover Page DATE:June 20, 2023 SUBMITTED BY:Steph Johnson, Town Manager ITEM TYPE:Worksession AGENDA SECTION:12:30pm Joint Meeting with Board Of County Commissioners (BOCC) (120 min.) SUBJECT:Legislative Partnerships SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 34 AGENDA ITEM NO. 2.5 Item Cover Page DATE:June 20, 2023 SUBMITTED BY:Steph Johnson, Town Manager ITEM TYPE:Worksession AGENDA SECTION:12:30pm Joint Meeting with Board Of County Commissioners (BOCC) (120 min.) SUBJECT:Climate Action Collaborative Update from Mayor Langmaid & Commissioner Scherr SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 35 AGENDA ITEM NO. 2.6 Item Cover Page DATE:June 20, 2023 SUBMITTED BY:Steph Johnson, Town Manager ITEM TYPE:Worksession AGENDA SECTION:12:30pm Joint Meeting with Board Of County Commissioners (BOCC) (120 min.) SUBJECT:Wildfire Preparation, Drought, Property Tax Assessment Rates, and Other Issues SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 36 AGENDA ITEM NO. 3.1 Item Cover Page DATE:June 20, 2023 TIME:20 min. SUBMITTED BY:Stephanie Bibbens, Town Manager ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion SUBJECT:Gramshammer Memorial at Children's Fountain Discussion SUGGESTED ACTION:Listen to presentation and provide feedback. PRESENTER(S):Todd Oppenheimer, Capital Project Manager/Landscape Architect VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Town Council 6.20.23.docx FINAL Vail Childrens Fountain - Design Concepts Packet 17x11 - 06.06.23.pdf Public Input Childrens Fountain.pdf 37 To:Mayor and Town Council From: Public Works RE:Tribute to Pepi Gramshammer Date: June 20, 2023 I.SUMMARY 2023 is the 4-year anniversary of the passing of Pepi Gramshammer. Several concepts for a meaningful tribute to this legendary individual have been considered and rejected for a variety of reasons. This memorandum outlines a new concept for Pepi’s Tribute prepared by Chevo Studios, provides a recommended project budget and a request for funding to be included in the Supplemental Budget which is before the Council at this time. II.BACKGROUND A suggestion to locate a modest tribute to Pepi at the southeast corner of the Children’s Fountain was brought forth and discussed with Mrs. Sheika Gramshammer and several key individuals in the fall of 2022. There was agreement amongst the group and Sheika regarding the suggestion and location. The suggestion involved replacing a cluster of boulders on the edge of the Children’s Fountain with an artist created stone tribute. The selected cluster of boulders is one of 3 locations containing a small water feature that could be reused. Following is an image of the cluster of boulders. In December 2022 the Town entered a low-cost design contract with Chevo Studios to design a concept for Pepi’s Tribute. Artists Andy Dufford and William Seal created a 38 Town of Vail Page 2 meaningful and eloquent yet simple design for the tribute. The design was reviewed by the Cultural and Heritage Committee and by Sheika with everyone in support of the design. III.PEPI’S TRIBUTE PROPOSAL Design Concept The design concept for Pepi’s Tribute, created by Chevo Studios is attached and will be presented by one of the artists at the Council meeting. In the presentation the artist describes and illustrates the inspiration for the sculpted stone, the sourcing of the stone materials and how water and the Children’s Fountain are incorporated into the design. The artist also illustrates the wording proposed for a small plaque to be affixed to the stone. It is difficult to consider the contributions which Pepi made to the Vail community without including his wife, Sheika. For this reason, a reference to Sheika is included in the working of the plaque. Costs Following is breakdown of anticipated costs to design, build and install the proposed Pepi’s Tribute. Chevo Studios Design $ 16,650 Chevo Fabrication and Installation $ 69,000 General Contractor Site Work $ 7,000 Total with 10% Contingency $102,000 2023 RETT Budget Placeholder $50,000 Budget Shortfall and Supplemental Request $52,000 The supplemental budget request is included in the second reading of the Supplemental Budget which is on the agenda for the evening meeting. IV.NEXT STEPS With the approval of the design concept for Pepi’s Tribute and inclusion of the requested funding in the supplemental budget, Chevo Studios will finalize the design details and fabricate the pieces. Staff will coordinate a general contractor for the site work and prepare for installation of the piece following Labor Day 2023. V.ACTION REQUESTED The Town Council is asked to provide and informal approval of the Chevo Studios design concept for Pepi’s Tribute and direct staff to prepare for a Fall 2023 installation at the Children’s Fountain. VI.STAFF RECOMMENDATION Staff recommends the Town Council to provide an informal approval of the Chevo Studios design concept for Pepi’s Tribute and direct staff to prepare for a Fall 2023 installation at the Children’s Fountain. 39 1Gramshammer Tribute at the Children’s Fountain Concept Designs 03/01/23 Pepi Gramshammer was a pivotal and beloved figure in the Vail Valley. This packet identifies a possible location and tribute concept to recognize Pepi and his enduring contributions to the Valley. The tribute will be incorporated into the existing Children’s Fountain, adjacent to Gasthof Gramshammer at the intersection of Wall Street and Gore Creek Drive. Approaching from the east, one of the fountain stones anchors the corner and acts as an entry to the water feature. This stone will be the location for the Tribute Marker. Proposed placement of memorial stone Pepi Gramshammer 40 2Gramshammer Tribute at the Children’s Fountain Concept Designs 03/01/23 Pepi set out one winter morning to ski a new area just outside of Vail Resort. He descended into Vail’s back bowls and carved deep turns through boundless pillows of snow and into history. On that very day, a tale told throughout the valley was born. As Pepi completed his final turn at the bottom of the slope he looked up and remarked… “That took forever! Forever it be.” From this moment on, the trail became known as “Forever”. This concept builds off that tale to pay homage to Pepi’s love and legacy as an ambassador for skiing and Vail Resort. Inspiration for the design features that enhance natural curves, dramatic shadows, and contrasting textures. The column is cut in two by a sinuous gesture that embodies the feeling of a smooth, wide, ski turn. The top surface is inspired by the legendary back bowls at Vail with etched snowflakes dancing across the undulating surface of the stone. The tribute will take the form of a sculpted stone column notched into an interactive stone water table at the south east side of the Children’s Fountain. Stone is an enduring material full of beauty and richness, true to the visual language of the mountains Pepi called home. “Forever” is deeply carved into one side of the memorial to remind visitors of Pepi’s legacy at Vail Resort, within the international ski community and among his many friends and loving family. 41 3 Materials Options 03/01/23 Gramshammer Tribute at the Children’s Fountain Material selection is an essential part of the design process. The use of Colorado Buff Sandstone for the column will impart a warmer hue, keeping with the tones of the existing stone at the Children’s fountain. This stone is quarried locally in Loveland Colorado. When cut the stone has a light soft texture, while uncut the natural faces of the stone contain color and texture variance as well as beautiful horizontal grain. An etched metal plaque will be set into the face of the tribute stone. The rendering below shows the plaque in bronze. Final text and imagery will be coordinated with the Town and the Gramshammer family. 42 4Gramshammer Tribute at the Children’s Fountain Concept Designs - Adjacent Watertable 03/01/23 Watertable concept to replace existing stone berm behind the Memorial Column 43 From:JOHN & DIANA DONOVAN To:Council Dist List Subject:Childrens Fountain Date:Tuesday, June 20, 2023 7:49:13 AM This fountain honors children and that honor should not be reduced or compromised by adding a memorial for any individual person or family. The fountain has already been negatively impacted by their garage access through that plaza. I believe there are areas of the Gramshammer property that Vail Associates gave to Pepi that would be more suitable for a personal memorial. Please call if you have questions. Thank you for considering this input. Diana Donovan Sent from my iPhone 44 AGENDA ITEM NO. 3.2 Item Cover Page DATE:June 20, 2023 TIME:45 min. SUBMITTED BY:Greg Roy, Community Development ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion SUBJECT:West Vail Multi-Family Zone District Discussion SUGGESTED ACTION:Listen to presentation and provide feedback. PRESENTER(S):Greg Roy, Planning Manager VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: West Vail Staff Memo 6-20-23.pdf Attachment B. Chamonix Ln - Development Scenario.pdf Public Input West Vail.pdf 45 TO: Town Council FROM: Community Development Department DATE: June 20, 2023 SUBJECT: West Vail Multi-Family Overlay Zone District. Applicant: Town of Vail, represented by Matt Gennett Planner: Greg Roy I. PURPOSE The purpose of this memo is to review the West Vail Multi-Family Overlay District (WVMF) and to provide Council with more information based on the introductory meeting on May 2, 2023. The zone district derives from the West Vail Master Plan that was adopted by the Town of Vail in November of 2021. II. BACKGROUND In 2022 staff was tasked with the implementation of the West Vail Master Plan (WVMP) that was adopted in November of 2021. The first piece of the Plan slated for implementation was the residential rezoning of portions of West Vail as recommended in Chapter 3, Housing, on pages 66-71 of the Plan (Attachment A). This included the creation of two new zone districts, which through the PEC review process became an overlay district that encompasses the entire West Vail Study Area. Below are some of the key goals from the WVMP that were considered in this approach: • Zoning regulations and programs allow for and support residents and landowners in making continued improvements to their properties in a way that preserves units and enhances aesthetics • Zone district changes and other zoning regulation changes support a variety of housing types to achieve density and better facilitate accessory dwelling units • Preserve or slightly increase the number of units in the neighborhoods surrounding the West Vail Center At the April 10, 2023, PEC meeting there was a recommendation of approval , with a 5-1 vote (Smith opposed, Lipnick absent) of the proposed West Vail Multi-Family Overlay District. Key components of the WVMF Overlay District are noted below: 46 Town of Vail Page 2 • Minimum and maximum density at 9 units/acre and 18 units/acre, respectively • Increase site coverage, GRFA, and height standards • Reduced landscaping requirement • Employee mitigation – 30% of additional GRFA (Recommended by PEC) IlI. DISCUSSION At the May 2, 2023 Town Council afternoon meeting, the Town Council received an update on the West Vail Multiple-Family Overlay Zone District (WVMF) that has been recommended for approval by the Planning and Environmental Commission. During the introduction, Council requested additional clarifying information concerning the approach. These questions and staff’s responses include: What is the current fee-in-lieu amount? Can we look into updating that number to be more representative of the increase in cost disparity? The current fee-in-lieu amount is $320.90/sq ft and was set in 2016. This number was based on the affordability gap between what someone making 80% of the Area Median Income could afford and what the median cost for a unit was at that time. Staff reviewed the proposal to update the fee-in-lieu amount with members of the Housing Department and discussed their current efforts on how to modernize the numbers. The Housing department, along with help from Andrew Knudtsen of Economic and Planning Systems (EPS), has been working to prepare a new mitigation methodology that would encompass all zone districts in contrast to the selective districts that inclusionary zoning applies to currently. The new system would be a residential linkage program that would capture a fee for all net-new residential square footage and would replace the existing inclusionary zoning requirements. This update is currently in the works with the intention to bring it before Council later this year. Is there a way to make it easier for the overlay district to be utilized by property owners rather than going through the rezoning process? Staff has reviewed with the Town’s attorneys the options available for adopting an overlay district within the confines of municipal law. Upon review it was found that any rezoning process, including the adoption of an overlay district, requires two readings of an ordinance by Town Council. Anything less would run afoul of State law. Working within those parameters, below are options to make the rezoning process more efficient for individual property owners. 1. Waive rezoning application fees for WVMF. 2. A standardized rezoning application could be provided to interested property owners with the majority of the required information pre-completed. 47 Town of Vail Page 3 3. The Town could bring forward a rezoning application on behalf of property owners. This should only be done with the property owner’s consent (so each property included in the application would require that property owner to sign the application). This would allow the Town to apply the WVMF to large swaths of land in one application. ALTERNATE #1: The Town could coordinate a single application for multiple interested property owners on a yearly or biannual basis, serving as the applicant and shepherding the properties through the code-required process. ALTERNATE #2: The Town could legislatively rezone properties in the study area. 4. Create a new streamlined rezoning process that is only applicable to the WVMF district. The process would remove the requirement for a PEC hearing/recommendation and proceed directly to a first reading with Council. This approach could also include revising the rezoning criteria to remove any subjective criteria (like compatibility with neighborhood impacts). Compared to the recommendation in the West Vail Master Plan, how many units of employee housing will this produce? What are some development scenarios within the overlay district? The employee housing unit requirement suggested in the West Vail Master Plan (WVMP) and the proposed EHU requirement do not align for comparison as they utilize two different types of requirements. The suggested approach in the WVMP involved a specific number of units while the PEC-recommended language requires a certain number of square feet. The square foot requirement could result in a similar number of units, or less units that are larger in size. The proposed method of mitigation that is based on square footage allows for greater flexibility of EHU sizes. Where the previous method would have required a certain number of units, those units would likely have been as small as permissible, the proposed mitigation method could produce a variety of 1- 2-, or 3- bedroom units depending on the required mitigation amount. Also included as an attachment is the possible development scenario for 2000 and 2004 Chamonix Ln. In 2014, a rezoning of these two parcels was proposed to the Medium Density Multiple Family zone district. The necessary approvals were never received for the project to be developed, but this application is a good example of what was proposed and how the Overlay District could produce a similar result. While the proposal from 2014 has some figures that are above what is permitted in the Overlay District, they are all numbers that could be allowed through a Development Plan approval by the PEC. See table below for subject property comparisons: 2000 Chamonix 2004 Chamonix 1699 Geneva 1692 Matterhorn 1550 Matterhorn Lot Size (Sq Ft) 16,766 18,920 18,633 9,976 25,281 48 Town of Vail Page 4 GRFA (Estimated Existing) 2,744 2,491 2,544 1,066 6,838 GRFA (Allowed) 7,712 8,703 8,571 4,589 11,629 Difference 4,968 6,212 6,027 3,523 4,791 Minimum Density 3 4 4 2 5 Maximum Density 7 8 8 4 10 Previous approach EHU Requirement (Units) 3 3 3 2 4 Mitigation @30% (Sq Ft) 1,490 1,864 1,808 1,057 1,437 IX. ATTACHMENTS A. TC Meeting Materials - 050223 B. Chamonix Ln – Development Scenario 49 Redevelopment Case Study, WVMF Overlay Properties: Lot 37 and 38, Resubdivision of Buffehr Creek 2000 and 2004 Chamonix Lane Combined Property Area: 34,653 sq. ft. Existing Condition: 2000 Chamonix Lane 4 Units-2,912 sq. ft. GRFA 2004 Chamonix Lane 3 Units-2,491 sq. ft. GRFA Total existing GRFA 5,403 Nonconforming to setbacks/trash storage and parking in ROW 50 Development Standard P/S (Existing or permitted/ required) WVMF (Permitted/ required) MDMF proposal in 2014 (Permitted/ required) Lot Size 34,653 sq. ft. 34,653 sq. ft. 34,653 sq. ft. Minimum Setbacks Front: 20+ feet Side: 4 feet (nonconforming) Rear: 15+ Feet Front: 20 feet Side: 15 feet Rear: 15 Feet Front: 20 feet Side: 20 feet Rear: 20 Feet Maximum Height Flat Roof: 30 feet (Permitted) Sloped Roof: 33 feet (Permitted) Flat Roof: 35 feet (Permitted) Sloped Roof: 38 feet (Permitted) Flat Roof: 35 feet (Permitted) Sloped Roof: 38 feet (Permitted) Maximum Dwelling units/acre 7 units (existing/nonconforming) 7-14 units (9-18 units per acre Permitted) 14 units (18 units per acre Permitted) GRFA 13,591 sq. ft. (Permitted) 46% for 1st 10,000 sq. ft. 38% for 2nd 5,000 sq. ft. 13% for 3rd 15,000 sq. ft. 6% in excess of 25,000 sq. ft. 15,940 sq. ft. (Permitted) 46% of Site Area 19,406 sq. ft. (Permitted) 56% of Buildable Site Area Site coverage maximum 6,931 sq. ft. (20% Permitted) 10,395 sq. ft. (30% Permitted) 15,594 sq. ft. (45% Permitted) Minimum Landscaping 20,792 sq. ft. (60% Required) 13,861 sq. ft. (40% Required) 10,396 sq. ft. (30% Required) Required Parking 14± spaces Chapter 10 28± spaces Required EHU 0 30% of net new GRFA 0 51 If developed to the maximum allowable GRFA of 15,940 – existing of 5,403 for a net new of 10,537 a deed restricted requirement of 3,161 sq. ft. This would result in a development of 19,101 square feet (GRFA) similar in scale to what was proposed in 2014 52 From:Samantha Biszantz To:PublicInputTownCouncil Subject:West Vail Master Plan Date:Monday, June 19, 2023 9:31:12 PM Attachments:preview.png Screenshot 2023-06-19 at 8.38.35 PM.png Screenshot 2023-06-19 at 8.46.19 PM.png Good evening Council, I will be at some portion of tomorrow’s meeting but looks like you are discussing the West Vail Master Plan (WVMP) prior to public comment so here goes: On November 2, 2021, the WVMP was unanimously adopted by Council. All 142 pages of it. Questions to consider as you move forward: 1) On page 67 (link to the plan and pictures attached below), it is made clear that STRs “accelerate the conversion away from resident housing” and one of the “Goals for Housing” is to manage this. On page 83, there is a town policy recommendation to explore capping, increasing fees & regulations, ownership time minimum before ability to rent etc. Do you feel this first round of Town Code and/or the minimal changes to STR fees & regulations made last year are enough after revisiting these recommendations? 2) The language in the proposed code which states, "Thirty percent (30%) of all newly constructed residential gross square footage shall be employee housing in conformance with Chapter 24 of this Title.” This means that I could knock down a triplex full of locals and rebuild a triplex with exact same square footage and not be required to have an EHUs, correct? Do we honestly think this redevelopment with no net new construction and thus no EHU or deed restriction requirements will end up being bought or inhabited by locals? The original master plan allowed for or recommended that redevelopment as long as 50% of unites were deed restricted. 3) And then let’s say they do add square footage, they have the option to pay the fee in lieu. Do we believe that someone who buys a $2 million essentially lot "tear down” and wants to add 1000 square feet will be turned off by $320,900 fee which they could then turn around and sell as a non- deed restricted home for close to a million? Not to mention what they could make off the tear down rebuild. As Greg Roy stated at the May 2 meeting, we are getting "further and further away from the original recommendations that were in the WVMP" and I am just asking you take that into consideration while proceeding. Thank you for your time. See you tomorrow, Sam 53 West_Vail_Master_Plan__final_ PDF Document · 15.2 MB 54 Samantha Biszantz sbiszantz@gmail.com Co-Owner of: Root & Flower Two Arrows Coffee | Bar 858–349-5024 55 AGENDA ITEM NO. 3.3 Item Cover Page DATE:June 20, 2023 TIME:10 min. SUBMITTED BY:Carlie Smith, Finance ITEM TYPE:Presentation/Discussion AGENDA SECTION:Presentation/Discussion SUBJECT:2022 Audited Financial Statements for the Town of Vail SUGGESTED ACTION:The 2022 audited financial statements are presented to Town Council for information only; No action requested. PRESENTER(S):Carlie Smith, Finance Director and Michael Jenkins, McMahan and Associates VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: Town of Vail Audited 2022 Financial Statements (FINAL).pdf 230620 2022 Audit Powerpoint Town of Vail 2022 Audit Presentation (McMahan).pdf 56 Financial Statements December 31, 2022 57 i Town of Vail, Colorado Financial Report December 31, 2022 Table of Contents Page(s) INDEPENDENT AUDITOR’S REPORT A1 – A3 Management’s Discussion and Analysis B1 – B9 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 – D29 Required Supplementary Information: General Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (GAAP Basis) and Actual E1 – E2 Major Special Revenue Funds: Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (GAAP Basis) and Actual: Vail Marketing Fund E3 Vail Local Marketing District E4 Vail Reinvestment Authority E5 Housing Fund E6 Supplementary Information: Capital Projects Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (GAAP Basis) and Actual F1 Real Estate Transfer Tax Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (GAAP Basis) and Actual F2 58 ii Town of Vail, Colorado Financial Report December 31, 2022 Table of Contents (Continued) Page(s) Supplementary Information (continued): 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 F3 Dispatch Services Fund F4 Residences at Main Vail Fund F5 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 F6 Health Insurance Fund: Schedule of Revenues, Expenses and Changes in Net Position – Budget (GAAP Basis) and Actual F7 Combining Statement of Net Position F8 Combining Statement of Revenues, Expenses and Changes in Fund Net Position F9 Combining Statement of Cash Flows F10 Schedule of Project Expenditures – Budget (GAAP Basis) and Actual: Capital Projects Fund F11 Real Estate Transfer Tax Fund F12 Housing Fund F13 Local Highway Finance Report F14 – F15 Undertaking to Provide Continuing Disclosure: Table I – Vail Reinvestment Authority History of Pledged Revenues G1 Table II – Vail Reinvestment Authority History of Assessed Valuations G1 Table III – Mill Levies Affecting Property Owners within the Vail Reinvestment Authority Plan Area G1 Table IV – Largest Taxpayers in the Authority G2 Table V – 2022 Preliminary Assessed Valuation of Classes of Property in the Authority G2 Table VI – History of Revenues, Expenditures and Changes in Fund Balance – Vail Reinvestment Authority G3 Table VII – 2022 Budget Summary and Actual Comparison / 2023 Budget – Vail Reinvestment Authority G4 Table VIII –Outstanding Revenue Obligations G4 Single Audit Reports and Schedules: Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards H1 – H2 Independent Auditor’s Report on Compliance for each Major Program and on Internal Control over Compliance Required by the Uniform Guidance H3 – H5 Schedule of Findings and Questioned Costs H6 Schedule of Prior Audit Findings and Questioned Costs H7 Schedule of Expenditures of Federal Awards H8 59 INDEPENDENT AUDITOR’S REPORT 60 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 Matthew D. Miller,CPA Frisco: (970) 668-3481 A1 M & A INDEPENDENT AUDITOR'S REPORT To the Mayor and Town Council Town of Vail, Colorado, Colorado Vail, Colorado Report on the Audit of the Financial Statements Opinions 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 Town of Vail, Colorado (the “Town”),as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements 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 Town of Vail, Colorado as of December 31, 2022, 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 (“U.S. GAAP”). Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“U.S. GAAS”) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Town and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements The Town’s management is responsible for the preparation and fair presentation of the financial statements in accordance with U.S. GAAP, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for one year after the date that the financial statements are issued. 61 INDEPENDENT AUDITOR’S REPORT To the Mayor and Town Council Town of Vail, Colorado Vail, Colorado A2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with U.S. GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with U.S. GAAS, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Required Supplementary Information U.S. GAAP require that the Management’s Discussion and Analysis in section B be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 U.S. GAAS, 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. 62 INDEPENDENT AUDITOR’S REPORT To the Mayor and Town Council Town of Vail, Colorado Vail, Colorado A3 Required Supplementary Information (continued) The budgetary comparison information in section E is not a required part of the basic financial statements but is supplementary information required by U.S. GAAP. The supplementary information in section E 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. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with U.S. GAAS. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The accompanying supplementary information in section F (including individual fund budgetary schedules, combining internal service fund statements, budgetary schedules for project expenditures, and the Local Highway Finance Report), section G (the Town’s Undertaking to Provide Continuing Disclosure), and section H (the Schedule of Expenditures of Federal Awards as required by Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards included in the Single Audit Section) are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplementary information in sections F, G, and H 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 and H 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 U.S. GAAS. In our opinion, the information in section F and H 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 13, 2023 on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance with certain 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 on compliance. McMahan and Associates, L.L.C. Avon, Colorado June 13, 2023 63 MANAGEMENT’S DISCUSSION AND ANALYSIS 64 B1 Town of Vail, Colorado Management’s Discussion and Analysis December 31, 2022 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, 2022. 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 2022 fiscal year by $402,562,716 (net position). Of this amount, $2,964,000 is restricted for TABOR emergency reserves and $39,346 is restricted by enabling legislation.  The Town’s total net position increased in the 2022 fiscal year by $33,365,433 which was attributable to increase from governmental activities of $31,206,754 and an increase of $2,158,679 from business-type activities.  At December 31, 2022, the fund balance of the General Fund was $53,449,555. Of that amount, $2,648,346 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 the Residences at Main Vail 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. 65 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, four Special Revenue funds, and two Capital Projects funds. The Town’s Special Revenue funds comprise the Vail Marketing Fund and Housing Fund, together with the Vail Local Marketing District and the Vail Reinvestment Authority, which are component units of the Town. The Capital Projects funds include the Capital Projects Fund and the Real Estate Transfer Tax Fund. The Housing Fund was created in 2022 to account for a new 0.5% sales tax dedicated to housing programs, initiatives, and projects. During the November 2021 election, the Town’s electorate voted in favor of this tax, which became effective January 1, 2022. The 0.5% housing sales tax applies to all items with the exception of food for home consumption, and will sunset on December 31, 2052. 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, Residences at Main Vail, 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 emergency service agencies throughout Eagle County. The Residences at Main Vail Fund is a deed-restricted for-rent housing development in the construction phase but is scheduled to begin operations in the fall of 2023. 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. 66 B3 Overview of the Financial Statements (continued) 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 D29 of this report. 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 $386,863,708 at the close of the most recent fiscal year. Approximately 57% 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 2022 and 2021. Business-type activities for 2021 were restated due to implementing the new GASB Statement No. 87 accounting standard. More information on the standard and the restatement is on page D29 of the Notes. 2021 2022 2021 2022 (restated) 2022 2021 Current and other assets $ 182,136,041 $ 163,486,038 $ 17,154,051 $ 26,081,077 $ 199,290,092 $ 189,567,115 Capital assets(net) 240,039,287 231,973,028 27,169,644 14,578,162 267,208,931 246,551,190 Total assets 422,175,328 395,459,066 44,323,695 40,659,239 466,499,023 436,118,305 Long-term liabilities outstanding 18,323,295 19,814,977 24,520,885 25,044,886 42,844,180 44,859,863 Other liabilities 11,275,263 14,274,662 3,462,932 1,107,274 14,738,195 15,381,936 Total liabilities 29,598,558 34,089,639 27,983,817 26,152,160 57,582,375 60,241,799 Deferred inflows 5,713,062 5,712,474 640,870 1,026,750 6,353,932 6,739,224 Net Position: Invested in capital assets, net of related debt 221,436,296 238,640,028 7,164,831 6,698,682 228,601,127 245,338,710 Restricted 3,003,346 2,972,681 - - 3,003,346 2,972,681 Unrestricted 162,424,066 114,044,245 8,534,177 6,781,647 170,958,243 120,825,892 Total net position $ 386,863,708 $ 355,656,954 $ 15,699,008 $ 13,480,329 $ 402,562,716 $ 369,137,283 Governmental Activities Business-type Activities Total The Town’s current assets and capital assets from governmental activities increased during 2022. Current assets increased mainly due to higher cash and investments, while capital assets grew due to several significant capital projects including the completion of the new Public Works facility, the purchase of eleven housing properties to be used as Town employee rental units, and the completion of a new roundabout near the Lionshead parking structure. Other major construction projects and asset additions during the year were structural improvements to two of the Town’s parking structures (Vail Village and Lionshead), new trail pavers near West Betty Ford Way, ongoing Gore Creek water quality improvements, and replacement of a fire engine. The Town’s long-term liabilities from governmental activities decreased mainly due to payments on annual debt obligations on the Vail Reinvestment Authority bonds and the Public Works streets facility Site and Improvement Lease. In 2021, the Town took advantage of favorable interest rates and entered into a Site and Improvement Lease and a Lease Purchase Agreement to fund the construction of a new Public Works streets facility. The Lease has an interest rate of 1.75% and will mature on December 1, 2035. 67 B4 Overview of the Financial Statements (continued) Government-wide Financial Analysis (continued): Current assets from business activities decreased mainly due to the utilization of cash proceeds previously received from the issuance of a Certificate of Participation for the Residences at Main Vail workforce housing development project. In October of 2021, the Town issued $22,260,000 of Certificates of Participation. The net interest rate on these certificates is 2.76% and mature on December 1, 2032. Construction for this project began in November of 2021 and is expected to be completed in the fall of 2023. The construction and financing of this project are accounted for in the Residences at Main Vail Enterprise Fund. Liabilities from business activities increased due to outstanding payables at year-end for this project. The Timber Ridge Enterprise Fund notes payable to the Town mature in 2032 and 2033. In January 2021, the balance of the $1.9 million promissory note originally maturing in 2032 was paid in full, together with all accrued interest. The remaining balance on the $8.0 million promissory note is reported as “internal balances” in the government-wide presentation on page C1. Details of the promissory note due from the Timber Ridge Enterprise Fund are found in note IV.F of this report. The chart below provides financial information from the Town’s Statement of Activities for the years 2022 and 2021. Business-type activities for 2021 were restated due to implementing the new GASB Statement No. 87 accounting standard. More information on the standard and the restatement is on page D29 of the Notes. 2021 2022 2021 2022 (restated) 2022 2021 Revenue: Program Revenue Charges for services 13,565,609$ 12,647,587$ 4,219,198$ 4,029,310$ 17,784,807$ 16,676,897$ Operating grants 6,425,807 6,093,673 967,375 1,232,521 7,393,182 7,326,194 Capital grants 450,450 550,383 - 1,671,020 450,450 2,221,403 General Revenue Property and ownership tax 12,343,640 12,810,956 - - 12,343,640 12,810,956 Sales and lodging tax 55,514,987 44,091,421 - - 55,514,987 44,091,421 Other taxes 18,170,031 20,780,677 - - 18,170,031 20,780,677 Interest and other revenue 191,139 153,392 163,186 (620) 354,325 152,772 Miscellaneous 1,186,763 1,496,880 50,936 28,752 1,237,699 1,525,632 Transfers (1,335,758) (171,945) 1,335,758 171,945 - - Total Revenue 106,512,668 98,453,024 6,736,453 7,132,928 113,249,121 105,585,952 Expenses: General government 11,429,559 9,644,794 - - 11,429,559 9,644,794 Public safety 14,843,157 13,472,097 2,844,765 3,123,920 17,687,922 16,596,017 Public works and transportation 28,741,716 24,951,014 - - 28,741,716 24,951,014 Culture and recreation 10,532,483 15,212,155 - - 10,532,483 15,212,155 Economic development 9,444,803 8,865,215 - - 9,444,803 8,865,215 Housing - - 1,733,009 1,290,869 1,733,009 1,290,869 Interest 314,195 488,836 - - 314,195 488,836 Total Expenses 75,305,913 72,634,111 4,577,774 4,414,789 79,883,687 77,048,900 Change in Net Position 31,206,755 25,818,913 2,158,679 2,718,139 33,365,434 28,537,052 Net Position January 1 355,656,954 329,838,041 13,540,329 10,822,190 369,197,283 340,660,231 Net Position December 31 386,863,709$ 355,656,954$ 15,699,008$ 13,540,329$ 402,562,717$ 369,197,283$ Town of Vail's Changes in Net Position Total Governmental Activities Business-type Activities 68 B5 Financial Analysis of the Town’s Funds Governmental Activities: Governmental activities increased the Town’s net position by $31,206,754, up approximately $5.4 million or 21% from 2021. The Town continued to experience a remarkable economic recovery after being impacted by the pandemic. Increased visitation. in addition to record levels of inflation, generated growth in the majority of the Town’s major revenue sources; specifically sales tax, lodging tax, parking sales, and lift tax. Additionally, during the November 2021 election, Town voters passed a 0.5% sales tax to be dedicated towards housing projects, programs, and initiatives. This new sales tax generated nearly $5.0M in 2022. The Town’s 1% real estate transfer tax also continued to experience significant growth as real estate prices continued to surge. The following items represent significant governmental activities during 2022:  General 4% sales tax collections increased 18.1% or $6.2 million compared to the prior year. Sales tax collections experienced a record-breaking year totaling $40.8 million. This is attributed to both an increase in visitation and high inflation rates.  Housing sales tax collections totaled $5.0 million during 2022.  Lodging tax also saw record-breaking collections. Lodging tax collections totaled $5.4 million, a 27% or $1.1 million increase compared to 2021.  The Town collected $9.6 million of Real Estate Transfer Tax, a $3.8 million decrease compared to the prior year which was a record year for real estate sales in the Town. During 2020 and 2021, real estate sales increased dramatically, both in dollar volume and number of transactions. Interest rates increases during 2022 affected the number of transactions, but property values remained high.  Construction use tax decreased during 2022. Collections totaled $2.2 million, a 41% or $1.4 million decrease compared to 2021.  Lift tax increased 17% or $954,728 over prior year due to increased skier visitation.  Parking revenues totaled $8.2 million, a 13% or $1.1 million increase compared to the prior year. Prior to the 2022/2023 winter season, a new pricing structure was put in place for both daily and pass parking sales with the goal of changing parker behavior. This, combined with increased visitation, resulted in increased parking revenues. Business-type Activities: Business-type activities comprise the Timber Ridge Enterprise Fund (a fund providing affordable housing to people working in the Town), the Residences at Main Vail Enterprise Fund (a new affordable housing project currently in the construction phase), and Vail Public Safety Communications Center (an enterprise fund providing dispatch services to emergency service agencies throughout Eagle County). The Residences at Main Vail is a deed-restricted for-rent housing development that is expected to begin operations in the fall of 2023. More information on this Enterprise Fund is included on page B6. 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 2022, the Town’s governmental funds reported combined ending fund balances of $159,106,882; an increase of $21,092,664 from 2021 ending fund balances primarily due to higher tax revenues (general sales tax, housing sales tax, lodging tax, and real estate tax) and conservative spending. The following table details fund balances for governmental funds over the past five years: Fund 2018 2019 2020 2021 2022 General Fund $33,888,140 $36,306,665 $38,547,757 $44,426,288 $53,449,555 Housing Fund - - - - 13,957,070 Capital Projects Fund 46,845,813 50,099,177 53,843,487 59,841,742 52,565,769 Real Estate Transfer Tax 12,957,553 14,684,013 20,353,072 28,077,540 29,923,875 Vail Marketing Fund 303,241 386,835 387,124 409,749 416,323 Vail Local Marketing District 1,270,453 1,350,108 2,078,809 2,710,863 3,901,319 Vail Reinvestment Authority 2,259,307 2,582,892 4,917,063 2,548,036 4,892,971 Total $97,524,507 $105,409,690 $120,127,312 $138,014,218 $159,106,882 69 B6 Financial Analysis of the Town’s Funds (continued) Governmental Funds (continued): The General Fund ended 2022 with a fund balance of $53,449,555, an increase of $9,023,267 from the prior year. The change in fund balance was mainly due to an increase of $8.9 million in tax revenues which included both an increase in the general 4% sales tax, the addition of a new 0.5% sales tax dedicated to housing, as well as lift tax collections. Also contributing to the fund balance increase was the growth in parking revenues. Going into the 2022/2023 ski season the Town approved a new increased pricing structure impacting both daily parking rates and parking passes rates, with the goal to modify parker behavior and promote more sustainable ways of travel such as carpooling or bus transportation. This combined with increased guest visitation resulted in an increase in overall parking revenues. The Capital Projects Fund had a fund balance of $52,565,769 at the end of 2022, a decrease of $7,275,973. This was mainly due to a balance transfer of $5.4 million to the Housing Fund for budgeted housing projects previously budgeted in the Capital Projects Fund such as the Vail InDeed program, the Town’s housing buy-down program, and placeholders for land acquisitions for future housing projects. Additionally, there were several large capital purchases during 2022 which included $8.7 million to purchase eleven properties to be used for Town employee housing rentals, the completion of a new roundabout on South Frontage Road between the hospital and the Lionshead parking structure, as well as a new and updated parking entry system. The Capital Projects Fund also accounts for the debt service on a $15.2 million lease-purchase agreement to finance the construction of the new Public Works streets building. The total cost of this project was $20.9 million. The annual debt service payment totaled $1.2 million in 2022. Additional information on the site lease can be found in the Notes to the Financial Statements on page D22. The Real Estate Transfer Tax Fund ended 2022 with a fund balance of $29,923,875, an increase of $1,846,335 compared to the prior year. The increase in fund balance is a result of real estate transfer tax collections which totaled $9.6 million, combined with delayed timing of construction projects. The Housing Fund is a new fund as of January 1, 2022 and was created due to a new 0.5% sales tax approved by Town voters during the November 2021 election. This tax is dedicated towards housing projects, programs, and initiatives in or around the Town. As a result of this new fund, all budgeted housing projects were moved from the Capital Projects Fund to the new Housing Fund along with a beginning balance of $5.3 million to fund these projects. This new tax generated nearly $5.0 million during 2022. The Vail Local Marketing District ended the year with a fund balance of $3,901,319, an increase of $1,190,456, a 43% increase in fund balance from the prior year. This is attributed to record collections of the Marketing District’s 1.4% lodging tax. 2022 collections totaled $5,472,949, an increase of $1,196,220 or a 27% increase compared to the prior year. Increases in visitation as well as higher lodging rates contributed to the growth in lodging tax. The Vail Reinvestment Authority (VRA) was created in 2004 to administer an urban renewal authority established in the Lionshead area of the Town. The incremental property taxes generated $6.3 million in 2022, providing a funding mechanism for capital improvements within the district by covering annual debt service payments of $676,168 relating to $11.9 million in bonds originally issued in 2010. The bonds funded several projects including the Red Sandstone parking structure, the Sandstone Underpass, Zeke M. Piece Skate Park, and the new Lionshead Transit and Welcome Center. In June 2020, the Town took advantage of favorable interest rates, and the bonds were refunded through a Tax Increment Revenue Refunding Loan. The loan has a 1.19% interest rate and an outstanding balance of $5.156 million, and will mature June 1, 2030. During 2022, the fund balance was used to fund large projects within VRA’s boundaries, including the second and final phase of the new roundabout on South Frontage Road near the Lionshead parking structure. The Vail Marketing Fund is used to fund and track the Town’s event spending. The Marketing Fund generated $362,978 in revenues from business licenses and also received a $1.8 million transfer from the Town’s General Fund going towards $2.3 million in annual event spending. 70 B7 Financial Analysis of the Town’s Funds (continued) Proprietary Funds: The Town’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. During 2021, the Town began construction on a 72-unit one- and two-bedroom housing project – the Residences at Main Vail – to provide affordable rental housing to people who live or work in the Town. The construction, financing, and future operations for this housing project are accounted for in the Residences at Main Vail Enterprise Fund. This project is estimated to cost $33 million, of which the majority is funded by $22.26 million of Certificates of Participation issued in October 2021. During 2022, this project was in the construction phase with $13.1 million spent towards the project. In addition, $788,354 was expended towards debt service. Additional information on the Series 2021 Certificates of Participation is included in the Notes to the Financial Statements on page D23. Reserves: The Town’s reserves continue to be strong. During 2022, the government fund reserves totaled $159.1 million, an increase of $21.1 million or a 15.3% from the prior year. These reserves are expected to help cash fund some major near-future capital projects that are a priority for both the community and Town Council. In the past, the Town’s strong reserve levels have enabled Town Council to cash-fund major capital projects. The Town considers the General Fund, Capital Projects Fund, Real Estate Transfer Tax Fund, and Housing Fund reserves available to spend. The chart below shows the Town’s available fund balances across these funds. Available reserves total approximately $149.9 million at the end of 2022; however, they are expected to decrease to $87.6 million in 2023 with both current ongoing projects and new larger capital projects. 71 B8 Financial Analysis of the Town’s Funds (continued) Long-term Debt: In 2021, the Town issued $22,260,000 of Certificates of Participation to fund the Residences at Main Vail workforce housing project, with an interest rate of 2.76% and payable on June 1 and December 1 through 2051. At the end of 2022, the Certificates of Participation had a balance of $21.9 million, of which $415,000 of principal will be due within one year. During 2021, the Town also entered into a Site and Improvement Lease and Lease-Purchase Agreement to finance the construction of a new Public Works streets facility. The Lease bears interest at 1.75% and is payable on June 1 and December 1 through 2035. At the end of 2022, the Lease had a balance of $13.3 million, of which $920,000 of principal will be due within one year. As of the end of the current fiscal year, the Vail Reinvestment Authority had a $5.156 million balance on the tax increment revenue refunding loan, of which $620,000 of bond principal is due within one year. Additional information regarding the Town and Authority's debt can be found in the Notes to the Financial Statements in footnote IV.G of this report. Sales Tax: Sales tax is the Town’s largest revenue generator. During 2022, the Town had a 4% general sales tax to support governmental operations, including capital expenditures. The Town collected a total of $40.8 million, an increase of 6.2 million, or 18.1% compared to the prior year. During the 2021 November election, Vail voters approved a 0.5% increase in sales tax on all items other than food for home consumption. The increase in sales tax began being collected in January 2022 and is dedicated to funding housing initiatives, housing development, and housing programs. The following chart shows changes in the general sales tax for the past ten years. The new housing sales tax is also represented in the chart below. 72 B9 Next Year’s Budget and Rates The Town’s General Fund balance at the end of the current fiscal year was $53,449,555; representing 91% 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 South Frontage Road, Vail, Colorado 81657. 73 GOVERNMENT-WIDE FINANCIAL STATEMENTS 74 Governmental Business-type Activities Activities Total Assets: Equity in pooled cash and investments 146,593,001 2,636,185 149,229,186 Unrestricted cash and investments 10,619,629 2,144,169 12,763,798 Cash - Restricted 659,465 12,330,866 12,990,331 Receivables (net of allowance for uncollectible accounts): Property taxes assessed 5,713,062 - 5,713,062 Other taxes 9,138,952 - 9,138,952 Other governments 392,246 - 392,246 Other 1,146,476 3,329 1,149,805 Inventory 1,263,206 - 1,263,206 Prepaid expenses 1,130,470 519 1,130,989 Interest receivable 29,330 - 29,330 Internal balances 4,692,796 (4,692,796) - Lease receivable - 4,731,779 4,731,779 Loans receivable: Collectible in more than one year 757,408 - 757,408 Capital assets not being depreciated 47,764,783 21,612,893 69,377,676 Capital assets being depreciated, net of accumulated depreciation 192,274,504 5,556,751 197,831,255 Total Assets 422,175,328 44,323,695 466,499,023 Liabilities: Accounts payable 2,557,742 2,647,849 5,205,591 Due to other governments 461,521 - 461,521 Retainage payable 106,991 - 106,991 Accrued salaries and wages 1,223,331 68,316 1,291,647 Interest payable 24,678 96,029 120,707 Other unearned revenue 4,441,362 63,157 4,504,519 Deposits payable 333,654 142,011 475,665 Compensated absences: Due within one year 585,984 30,570 616,554 Due in more than one year 1,367,295 71,330 1,438,625 Bonds payable: Due within one year 620,000 415,000 1,035,000 Due in more than one year 4,536,000 24,449,555 28,985,555 Financed purchase obligation: Due within one year 920,000 - 920,000 Due in more than one year 12,420,000 - 12,420,000 Total Liabilities 29,598,558 27,983,817 57,582,375 Deferred Inflow of Resources: Lease revenue - 640,870 640,870 Unavailable property taxes 5,713,062 - 5,713,062 Total Deferred Inflow of Resources 5,713,062 640,870 6,353,932 Net Position: Net investment in capital assets 221,436,296 7,164,831 228,601,127 Restricted for: Emergencies 2,964,000 - 2,964,000 Other purposes 39,346 - 39,346 Unrestricted 162,424,066 8,534,177 170,958,243 Total Net Position 386,863,708 15,699,008 402,562,716 Town of Vail, Colorado Statement of Net Position December 31, 2022 The accompanying notes are an integral part of these financial statements. C1 75 Net (Expenses) Revenues and Program Revenues Changes in Net Position Operating Capital Charges for Grants and Grants and Governmental Business-type Expenses Services Contributions Contributions Activities Activities Total Governmental Activities: General government 11,429,559 4,318,808 4,061,849 - (3,048,902) (3,048,902) Public safety 14,843,157 286,135 - - (14,557,022) (14,557,022) Public works and transportation 28,741,716 8,341,232 2,110,089 450,450 (17,839,945) (17,839,945) Culture and recreation 10,532,483 256,456 126,369 - (10,149,658) (10,149,658) Economic development 9,444,803 362,978 127,500 - (8,954,325) (8,954,325) Interest on long-term debt 314,195 - - - (314,195) (314,195) Total - Governmental Activities 75,305,913 13,565,609 6,425,807 450,450 (54,864,047) (54,864,047) Business-type Activities: Dispatch services 2,844,765 1,951,837 967,375 - 74,447 74,447 Housing (Timber Ridge) 943,405 2,267,361 - - 1,323,956 1,323,956 Residences at Main Vail 789,604 - - - (789,604) (789,604) Total - Business-type Activities 4,577,774 4,219,198 967,375 - 608,799 608,799 Totals 79,883,687 17,784,807 7,393,182 450,450 (54,864,047) 608,799 (54,255,248) General Revenues: Taxes: Sales and use taxes 50,042,038 - 50,042,038 Real estate transfer taxes 9,603,456 - 9,603,456 Lodging taxes 5,472,949 - 5,472,949 Property and specific ownership taxes 12,343,640 - 12,343,640 Ski area lift ticket admissions tax 6,473,618 - 6,473,618 Franchise taxes 1,543,512 - 1,543,512 Tobacco taxes 549,445 - 549,445 Investment earnings 319,565 163,186 482,751 Gain on disposal of capital assets (128,426) - (128,426) Miscellaneous 1,186,763 50,936 1,237,699 Transfers (1,335,758) 1,335,758 - Total - General Revenues and Transfers 86,070,802 1,549,880 87,620,682 Change in Net Position 31,206,755 2,158,679 33,365,434 Net Position - January 1 (restated)355,656,954 13,540,329 369,197,283 Net Position - December 31 386,863,709 15,699,008 402,562,717 Town of Vail, Colorado Statement of Activities For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. C276 FUND FINANCIAL STATEMENTS 77 Vail Vail Local Vail Capital Real Estate Total General Marketing Marketing Reinvestment Housing Projects Transfer Tax Governmental Fund Fund District Authority Fund Fund Fund Funds Assets: Equity in pooled cash and investments 47,697,498 637,427 - - 13,102,324 47,076,834 30,188,760 138,702,843 Cash and cash equivalents - Unrestricted 18,892 - 3,299,629 7,301,108 - - - 10,619,629 Receivables, net: Property taxes assessed 5,713,062 - - - - - - 5,713,062 Other taxes 8,066,250 - 1,016,683 - - 8,669 47,350 9,138,952 Other governments 233,425 - - - - 143,657 15,164 392,246 Other 819,577 - - - - 279,301 25,352 1,124,230 Due from other funds 211,613 - - - - 2,291,996 - 2,503,609 Loans receivable 757,408 - - - - 4,692,796 - 5,450,204 Inventories - - - - 857,917 - - 857,917 Prepaid expenses 197,461 - - - - 516,362 356,548 1,070,371 Total Assets 63,715,186 637,427 4,316,312 7,301,108 13,960,241 55,009,615 30,633,174 175,573,063 Liabilities and Fund Balances: Liabilities: Accounts payable 1,176,479 62,709 314,993 4,528 3,171 81,301 204,084 1,847,265 Due to other governments 209,945 - - - - 14,466 237,111 461,522 Due to other funds - - 100,000 2,403,609 - - - 2,503,609 Retainage payable - - - - - 14,212 92,779 106,991 Accrued payroll and related liabilities 1,058,716 - - - - - - 1,058,716 Unearned revenue 1,773,775 158,395 - - - 2,333,867 175,325 4,441,362 Deposits payable 333,654 - - - - - - 333,654 Total Liabilities 4,552,569 221,104 414,993 2,408,137 3,171 2,443,846 709,299 10,753,119 Deferred Inflows of Resources: Property taxes 5,713,062 - - - - - - 5,713,062 Total Deferred Inflows of Resources 5,713,062 - - - - - - 5,713,062 Fund Balances: Non-spendable 954,869 - - - 857,917 5,209,158 356,548 7,378,492 Restricted 2,648,346 - 165,000 190,000 - - - 3,003,346 Committed 20,497,395 416,323 3,736,319 - 13,099,153 42,711,611 29,567,327 110,028,128 Assigned - - - 4,702,971 - 4,645,000 - 9,347,971 Unassigned 29,348,945 - - - - - - 29,348,945 Total Fund Balances 53,449,555 416,323 3,901,319 4,892,971 13,957,070 52,565,769 29,923,875 159,106,882 Total Liabilities and Fund Balances 63,715,186 637,427 4,316,312 7,301,108 13,960,241 55,009,615 30,633,174 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.234,066,539 Other long-term assets and unearned charges are not available as current financial resources and, therefore, are not reported in the funds.688,795 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.13,549,684 Long-term liabilities, including bonds payable, interest payable, financed purchases, and compensated absences within governmental activities are not due and payable in the current period and, therefore, are not reported in the funds.(20,548,192) Net Position of Governmental Activities 386,863,708 Town of Vail, Colorado Balance Sheet Governmental Funds December 31, 2022 Capital Projects FundsSpecial Revenue Funds The accompanying notes are an integral part of these financial statements. C3 78 Vail Vail Local Vail Capital Real Estate Total General Marketing Marketing Reinvestment Housing Projects Transfer Tax Governmental Fund Fund District Authority Fund Fund Fund Funds Revenues: Taxes 39,219,283 - 5,472,949 6,296,288 4,954,438 18,944,771 9,603,456 84,491,185 Permits and licenses 2,766,739 362,978 - - - - - 3,129,717 Intergovernmental revenue 5,395,614 - - - - 450,450 77,954 5,924,018 Charges for services 10,751,787 - - - - 123,409 187,697 11,062,893 Investment income 169,375 (3,334) 2,730 11,585 - 82,246 45,786 308,388 Miscellaneous 261,189 127,500 - - 2,099,175 42,143 126,177 2,656,184 Total Revenues 58,563,987 487,144 5,475,679 6,307,873 7,053,613 19,643,019 10,041,070 107,572,385 Expenditures: General government 10,789,918 - - - - - - 10,789,918 Public safety 13,565,575 - - - - - 784,150 14,349,725 Public works and transportation 19,744,332 - - - 587,090 19,314,285 3,710,782 43,356,489 Culture and recreation 1,535,911 - - - - - 3,809,349 5,345,260 Economic development 1,853,272 2,305,570 4,285,223 994,774 - - - 9,438,839 Debt service: Principal - - - 612,000 - 905,000 - 1,517,000 Interest - - - 64,168 - 250,712 - 314,880 Total Expenditures 47,489,008 2,305,570 4,285,223 1,670,942 587,090 20,469,997 8,304,281 85,112,111 Excess (Deficiency) of Revenues Over Expenditures 11,074,979 (1,818,426) 1,190,456 4,636,931 6,466,523 (826,978) 1,736,789 22,460,274 Other Financing Sources (Uses): Sale of assets 65,226 - - - (362,157) 314,724 - 17,793 Debt issuance costs - - - - - (1,250) - (1,250) Transfers in - 1,825,000 - - 7,852,704 2,311,996 109,546 12,099,246 Transfers (out)(2,116,938) - - (2,291,996) - (9,074,465) - (13,483,399) Total Other Financing Sources (Uses)(2,051,712) 1,825,000 - (2,291,996) 7,490,547 (6,448,995) 109,546 (1,367,610) Net Change in Fund Balances 9,023,267 6,574 1,190,456 2,344,935 13,957,070 (7,275,973) 1,846,335 21,092,664 Fund Balances - January 1 44,426,288 409,749 2,710,863 2,548,036 - 59,841,742 28,077,540 138,014,218 Fund Balances - December 31 53,449,555 416,323 3,901,319 4,892,971 13,957,070 52,565,769 29,923,875 159,106,882 Net Change in Fund Balances of Governmental Funds 21,092,664 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 and transfers, for the year.7,654,607 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.838,309 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.1,517,000 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. By contrast, debt proceeds provide current financial resources to governmental funds, but have no effect on net position.174,839 Some expenses reported in the Statement of Activities - such as changes in accrued interest and compensated absences - do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (70,665) Change in Net Position of Governmental Activities 31,206,754 Town of Vail, Colorado Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2022 Capital Projects FundsSpecial Revenue Funds The accompanying notes are in integral part of these financial statements. C4 79 Governmental Dispatch Activities - Services Residences at Internal Timber Ridge Fund Main Vail TOTAL Service Funds Assets: Current Assets: Equity in pooled cash and investments - 2,636,185 - 2,636,185 7,890,158 Cash and cash equivalents - Unrestricted 2,144,169 - - 2,144,169 - Accounts receivable, net of allowance for uncollectibles 2,444 885 - 3,329 22,246 Inventory - - - - 405,289 Prepaid expenses 519 - - 519 60,100 Total - Current Assets 2,147,132 2,637,070 - 4,784,202 8,377,793 Non-current Assets: Cash and cash equivalents - Restricted 142,011 - 12,188,855 12,330,866 - Lease receivable 4,731,779 - - 4,731,779 - Property, plant, and equipment, net of accumulated depreciation 8,990,977 965,274 17,213,393 27,169,644 5,972,747 Total - Non-current Assets 13,864,767 965,274 29,402,248 44,232,289 5,972,747 Total Assets 16,011,899 3,602,344 29,402,248 49,016,491 14,350,540 Liabilities: Current Liabilities: Accounts payable 65,328 12,903 2,569,618 2,647,849 710,480 Accrued salaries and wages - 68,316 - 68,316 35,615 Interest payable 29,330 - 66,699 96,029 - Unearned revenue 63,157 - - 63,157 - Deposits payable 142,011 - - 142,011 - Current portion of bonds payable - - 415,000 415,000 - Current portion of notes payable 395,574 - - 395,574 - Current portion of compensated absences - 30,570 - 30,570 16,428 Total - Current Liabilities 695,400 111,789 3,051,317 3,858,506 762,523 Non-current Liabilities: Bonds payable, net of current portion - - 24,449,555 24,449,555 - Notes payable, net of current portion 4,297,222 - - 4,297,222 - Compensated absences, net of current portion - 71,330 - 71,330 38,333 Total - Non-current Liabilities 4,297,222 71,330 24,449,555 28,818,107 38,333 Total Liabilities 4,992,622 183,119 27,500,872 32,676,613 800,856 Deferred Inflow of Resources: Lease revenue 640,870 - - 640,870 - Total Deferred Inflow of Resources 640,870 - - 640,870 - Net Position: Net investment in capital assets 4,298,181 965,274 1,901,376 7,164,831 5,972,747 Unrestricted 6,080,226 2,453,951 - 8,534,177 7,576,937 Total Net Position 10,378,407 3,419,225 1,901,376 15,699,008 13,549,684 Town of Vail, Colorado Proprietary Funds Statement of Net Position December 31, 2022 Business-type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. C5 80 Governmental Dispatch Activities - Services Residences at Internal Timber Ridge Fund Main Vail TOTAL Service Funds Operating Revenues: Charges for services - Internal - 652,938 - 652,938 8,272,274 Charges for services - External - 1,298,899 - 1,298,899 790,302 Rents 1,812,816 - - 1,812,816 - Ground lease 454,545 - - 454,545 - Insurance reimbursements - - - - 54,753 Other 50,736 - - 50,736 - Total Operating Revenues 2,318,097 1,951,837 - 4,269,934 9,117,329 Operating Expenses: Operations 510,985 2,697,440 - 3,208,425 3,126,442 Health claims and premiums - - - - 4,841,447 Depreciation 361,541 147,325 - 508,866 932,215 Total Operating Expenses 872,526 2,844,765 - 3,717,291 8,900,104 Operating Income (Loss)1,445,571 (892,928) - 552,643 217,225 Non-Operating Revenues (Expenses): Intergovernmental revenues - 967,375 - 967,375 28,406 Gain (loss) on disposal of assets - - - - 180,640 Investment income 7,024 6,481 149,681 163,186 13,613 Interest expense (70,879) - (788,354) (859,233) - Financing fees - - (1,250) (1,250) - Project reimbursements - 200 - 200 - Total Non-Operating Revenues (Expenses)(63,855) 974,056 (639,923) 270,278 222,659 Income (Loss) Before Transfers and Capital Contributions 1,381,716 81,128 (639,923) 822,921 439,884 Transfers, net - 113,998 1,221,760 1,335,758 48,394 Capital contributions, net - - - - 350,031 Change in Net Position 1,381,716 195,126 581,837 2,158,679 838,309 Net Position - January 1 (restated)8,996,691 3,224,099 1,319,539 13,540,329 12,711,375 Net Position - December 31 10,378,407 3,419,225 1,901,376 15,699,008 13,549,684 Town of Vail, Colorado Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Position For the Year Ended December 31, 2022 Business-type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. C6 81 Governmental Dispatch Activities - Services Residences at Internal Timber Ridge Fund Main Vail TOTAL Service Funds Cash Flows From Operating Activities: Cash received from other funds - 652,938 - 652,938 8,272,274 Cash received from tenants for rent 1,824,313 - - 1,824,313 - Other cash receipts 50,736 1,755,542 - 1,806,278 872,501 Cash paid for goods and services (475,285) (479,691) 2,224,892 1,269,916 (6,779,297) Cash paid to employees - (2,206,562) - (2,206,562) (1,184,331) Net Cash Provided (Used) by Operating Activities 1,399,764 (277,773) 2,224,892 3,346,883 1,181,147 Cash Flows From Non-Capital Financing Activities: Transfer (to) other funds (389,727) - - (389,727) 48,394 Transfer from other funds - 113,998 1,221,760 1,335,758 - Cash received from operating grants - 967,375 - 967,375 28,406 Cash received from project reimbursements 200 200 - Net Cash Provided (Used) by Non-Capital Financing Activities (389,727) 1,081,573 1,221,760 1,913,606 76,800 Cash Flows From Capital and Related Financing Activities: Cash received on disposal of fixed assets - - - - 188,745 Principal repaid on bonds and notes - (415,675) (415,675) - Interest paid (73,315) - (804,836) (878,151) - Financing fees paid - - (1,250) (1,250) - Acquisition and construction of capital assets (3,450) - (13,096,898) (13,100,348) (1,001,940) Net Cash Provided (Used) by Capital and Related Financing Activities (76,765) - (14,318,659) (14,395,424) (813,195) Cash Flows From Investing Activities: Interest on investments 7,024 6,481 149,681 163,186 13,613 Net Cash Provided (Used) by Investing Activities 7,024 6,481 149,681 163,186 13,613 Net Increase (Decrease) in Cash and Cash Equivalents 940,296 810,281 (10,722,326) (8,971,749) 458,365 Cash and Cash Equivalents - January 1 1,345,884 1,825,904 22,911,181 26,082,969 7,431,793 Cash and Cash Equivalents - December 31 2,286,180 2,636,185 12,188,855 17,111,220 7,890,158 Cash and Cash Equivalents at December 31 is Comprised of: Equity in pooled cash and investments - 2,636,185 - 2,636,185 7,890,158 Cash and cash equivalents - Unrestricted 2,144,169 - - 2,144,169 - Cash and cash equivalents - Restricted 142,011 - 12,188,855 12,330,866 - Total - Cash and Cash Equivalents 2,286,180 2,636,185 12,188,855 17,111,220 7,890,158 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating Income/(Loss)1,445,571 (892,928) - 552,643 217,225 Adjustments: Depreciation 361,541 147,325 - 508,866 932,215 (Increase) decrease in accounts receivable - 456,642 - 456,642 27,447 (Increase) decrease in rent receivable (124,002) - - (124,002) - (Increase) decrease in inventory - - - - (64,365) (Increase) decrease in prepaid expenses (260) 12,625 - 12,365 - Increase (decrease) in accounts payable 35,960 (10,477) 2,224,892 2,250,375 56,787 Increase (decrease) in tenant security deposits 2,811 - - 2,811 - Increase (decrease) in prepaid rent 4,023 - - 4,023 - Increase (decrease) in deferred inflows (325,880) - - (325,880) Increase (decrease) in accrued wages and benefits - 9,040 - 9,040 11,838 Total Adjustments (45,807) 615,155 2,224,892 2,794,240 963,922 Net Cash Provided (Used) by Operating Activities 1,399,764 (277,773) 2,224,892 3,346,883 1,181,147 Non-cash Investing, Capital and Financing Activities: Assets contributed by Capital Projects Fund - - - - 350,031 Town of Vail, Colorado Proprietary Funds Statement of Cash Flows For the Year Ended December 31, 2022 Business-type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. C7 82 Deferred Pension Compensation Trust Plan Assets: Cash and investments - Restricted 83,808,125 24,342,499 Loans to participants 418,172 - Total Assets 84,226,297 24,342,499 Net Position: Held in trust for pension benefits and other purposes 84,226,297 24,342,499 Total Net Position 84,226,297 24,342,499 Town of Vail, Colorado Pension Trust Funds Statement of Fiduciary Net Position December 31, 2022 The accompanying notes are an integral part of these financial statements. C8 83 Deferred Pension Compensation Trust Plan Ad ditions: Contributions: Contributions 3,885,067 2,768,339 Net investment earnings: Investment earnings (13,573,117) (3,637,977) Investment expenses (105,381) (28,974) Net investment earnings (13,678,498) (3,666,951) Total Additions (9,793,431) (898,612) Deductions: Benefits paid 4,825,056 1,244,194 Total Deductions 4,825,056 1,244,194 Change in Net Position (14,618,487) (2,142,806) Net Position - January 1 98,844,784 26,485,305 Net Position - December 31 84,226,297 24,342,499 Town of Vail, Colorado Pension Trust Funds Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. C9 84 NOTES TO THE FINANCIAL STATEMENTS 85 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 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 (“VLMD”), and Vail Reinvestment Authority (“VRA”). 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 VLMD 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 VLMD’s Board of Directors. VLMD is reported as a special revenue fund. 2.Vail Reinvestment Authority VRA 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 VRA 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. VRA is reported as a special revenue fund. 86 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (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, 2022, 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, Residences at Main Vail,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. 87 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (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 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 VLMD’s activities. The Vail Reinvestment Authority accounts for the collection of Tax Increment Financing revenues which are restricted for use for the activities of VRA. 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 Housing Fund accounts for the collection of a 0.5% sales tax dedicated to housing projects, programs, and initiatives. 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. The Residences at Main Vail Fund accounts for the 72 one-and two-bedroom unit rental housing project currently being constructed in the Town. 88 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (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. Fiduciary 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 fiduciary 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 financed purchases are reported as other financing sources. 89 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (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. 90 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (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 or net asset 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.The Housing Fund records inventory for affordable housing units held for sale. 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. 91 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (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 exceeding 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 engineering, legal, surveying and landscaping that were incurred from the beginning of construction until the assets were substantially complete are capitalized.Interest incurred during the construction phase is expensed as incurred. Capital assets (excluding land and art)are depreciated using the straight-line method, over the estimated useful life. 8.Compensated Absences Vested or accumulated vacation leave that is expected to be liquidated with expendable available financial resources is reported as expenditure and a fund liability of the governmental fund that will pay it. Amounts of vested or accumulated vacation leave that are not expected to be liquidated with expendable available financial resources are reported in the governmental activities column in the government-wide financial statements. Vested or accumulated vacation leave of the proprietary fund type is recorded as an expense and liability of that fund as the benefits accrue to employees. In accordance with the provisions of GASB Statement No. 16, Accounting for Compensated Absences,no liability is recorded for non-vesting accumulating rights to receive sick pay benefits. 92 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D8 I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts Presentation (continued) 9. Deferred Outflows and Inflows of Resources Deferred outflows of resources represent a consumption of net assets 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 assets that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The Town has two items that qualify for reporting in this category, unavailable revenue from property taxes reported in the governmental balance sheet and on the Statement of Net Position, and long-term lease revenue reported in the business-type funds. 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. Deferred inflows attributable to lease revenues are discussed in Note I.E.11, below. 10. 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. 11. Leases The Town is a lessor for the lease of land, as further described in Note IV.D. The Town recognizes a lease receivable and a deferred inflow of resources in the government-wide and proprietary fund financial statements. At the commencement of a lease, the Town initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the lease term. Key estimates and judgments include how the Town determines (1) the discount rate used to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The Town uses its estimated incremental borrowing rate as the discount rate for leases, and the lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable are composed of fixed payments from the lessee. 93 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D9 I. Summary of Significant Accounting Policies (continued) E. Financial Statement Accounts Presentation (continued) 11. Leases (continued) The Town monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. 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.J. General Fund Vail Marketing Fund Vail Local Marketing Disctict Vail Reinvestment Authority Housing Fund Capital Projects Fund Real Esate Transfer Tax Fund Nonspendable: Non-current receivables 757,408$ -$ -$ -$ -$ -$ -$ Loans to other funds - - - - - 4,692,796 - Prepaid items 197,461 - - - - 516,362 356,548 Inventories - - - - 857,917 - - Total - Nonspendable 954,869 - - - 857,917 5,209,158 356,548 Restricted: TABOR emergency reserve 2,609,000 - 165,000 190,000 - - - Police funds 39,346 - - - - - - Total - Restricted 2,648,346 - 165,000 190,000 - - - Committed: Capital projects - - - - - 42,711,611 - Parks and recreation - - - - - - 29,567,327 Housing - - - - 13,099,153 - - Operating reserve 20,497,395 - - - - - - Destination marketing - 416,322 3,736,319 - - - - Total - Committed 20,497,395 416,322 3,736,319 - 13,099,153 42,711,611 29,567,327 Assigned: Capital maintenance - - - - - 4,645,000 - Debt service - - - 4,702,971 - - - Total - Assigned -$ -$ -$ 4,702,971$ -$ 4,645,000$ -$ 94 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (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 Town’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 total fund balances of 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 $234,066,539 difference is related to property, plant and equipment of $416,008,692 less accumulated depreciation of $181,942,153. Another element of that reconciliation explains “Other long-term assets and unearned charges are not available as current financial resources and, therefore, are not reported in the funds.” This $688,795 difference is comprised of pension forfeitures of $659,465 and interest receivable of $29,330. Net position totaling $13,549,684 for internal service funds used by management to charge the costs of heavy equipment and health insurance to individual funds is included in the governmental activities in the Statement of Net Position. Additionally, the reconciliation states that “Long-term liabilities, including bonds payable, interest payable, financed purchases, and compensated absences within governmental activities are not due and payable in the current period and, therefore, are not reported in the funds.“ This $20,548,196 difference is related to bonds and notes payable of $18,496,000; accrued compensated absences of $1,898,518; retirement bonus payable of $129,000; and interest payable of $24,678. 95 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (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 a reconciliation between the net change in fund balances of governmental funds and the change 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.” This $7,654,607 difference is comprised of capital outlay of $20,333,045 less depreciation expense of $12,351,579;net book value of disposed assets of $326,859 and net book value of transferred assets of $-. III.Stewardship, Compliance, and Accountability A.Budgetary Information An annual budget and appropriation ordinance is adopted by Town Council in accordance with the Town’s Home Rule Charter. Budgets are prepared on the basis of GAAP for all funds,except the Timber Ridge Enterprise Fund, the Dispatch Services Enterprise Fund, the Residences at Main Vail Enterprise Fund, and the Heavy Equipment Internal Service Fund. As required by Colorado statutes, all funds have legally adopted budgets and appropriations. Total expenditures for each fund may not exceed the amounts appropriated. Appropriations for a fund may be increased if offset by unanticipated revenues. All appropriations lapse at year-end. The budgets for these funds have been adopted on a non-GAAP budget and are reconciled to GAAP below: Timber Ridge Dispatch Residences at Heavy Enterprise Services Main Vail Equipment Fund Fund Fund Fund Change in Net Position - Budget Basis 1,350,079$ 330,555$ (12,830,061)$ (579,609)$ add/(less): Capital contributions - - - 350,031 Loan principal repayment to Capital Projects Fund 389,728 - - - Bond principal payments 315,000 Change in accrued compensated absences - 11,896 - (422) Capitalized assets 3,450 - 13,096,898 1,351,972 Net book value of disposed assets - - - (8,105) Depreciation (361,541) (147,325) - (932,215) Change in Net Position - GAAP Basis 1,381,716$ 195,126$ 581,837$ 181,652$ 96 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (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 2022: (1)For the 2022 budget year, prior to August 25, 2021,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 2021 fiscal year, the Town Manager submitted to the Town Council a budget and accompanying message. (3)Prior to December 15, 2021,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. Property taxes levied in one year are collected in the succeeding year. Thus,taxes certified in 2021 were collected in 2022 and taxes certified in 2022 will be collected in 2023. 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. VLMD’s budget timetable varies from the Town’s. VLMD followed these procedures in preparing, approving, and enacting its budget for 2022: (1)On or before September 30, 2021, VLMD must submit to the Board a recommended budget that details the revenues necessary to meet VLMD's operating requirements. This was done on September 21, 2021. (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, 2021. The Board adopted the 2022 budget on October 19, 2021. (3)After adoption of the initial budget resolution, VLMD 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. 97 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D13 III. Stewardship, Compliance, and Accountability (continued) A. Budgetary Information (continued) VRA’s budget timetable generally aligns with Town’s in order to reflect reimbursements for capital projects within the VRA district. VRA followed these procedures in preparing, approving, and enacting its budget for 2022: (1) For the 2022 budget year, prior to August 25, 2021, the County Assessor sent the Town a certified assessed valuation of all taxable property within the VRA’s boundaries. (2) After appropriate public notice and a required public hearing, the VRA must adopt the proposed budget and a resolution that legally appropriated expenditures for the upcoming year. This resolution generally aligns with the Town’s second reading of the budget ordinance. The VRA adopted the 2022 budget on October 12, 2021. (3) After adoption of the initial budget resolution, VRA may make the following changes: a) approve supplemental appropriations to the extent of revenues in excess of those estimated in the budget; b) approve emergency appropriations; and c) reduce appropriations for which originally estimated revenues are insufficient. During the year, supplemental appropriations were necessary for certain of the funds of the Town, VLMD, and VRA. The budgetary comparison schedules reflect the original budget and the final budget after legally authorized revisions were made. B. 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, 2022 fund balance in the General Fund and the Vail Reinvestment Authority Fund for this purpose in the amounts of $2,609,000 and $190,000, respectively, which are the approximate required reserves. 98 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D14 II. Stewardship, Compliance, and Accountability (continued) B. TABOR Amendment (continued) The initial base for local government spending and revenue limits is December 31, 1992 fiscal year spending. Future spending and revenue limits are 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. 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. C. TABOR Amendment – Vail Local Marketing District As required by TABOR, VLMD has reserved $165,000 of its fund balance for emergencies, which is the approximate required reserve at December 31, 2022. The ballot question approved by VLMD voters on November 2, 1999, which established the 1.4% tax on lodging within the Town’s boundaries, also authorized VLMD 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. VLMD’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. 99 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D15 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 $25,206,391. The difference between the bank balance and book balance is primarily due to deposits in transit or outstanding checks at December 31, 2022. Fair Value of Investments: The Town measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows: Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs. At December 31, 2022, the Town had the following recurring fair value measurements: Fair Value Measurements Using Investments Measured at Fair Value: Total Level 1 Level 2 Level 3 Certificates of deposit 8,862,681$ -$ 8,862,681$ -$ Mortgage pools 24,841,757 - - 24,841,757 Total 33,704,438$ -$ 8,862,681$ 24,841,757$ Investments Measured at Net Asset Value: COLOTRUST 80,387,168$ 100 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D16 IV.Detailed Notes on all Funds (continued) A. Deposit and Investments (continued) 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 an 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 $1. Investments of the trusts consist of U.S. Treasury bills, notes and note strips, and repurchase agreements collateralized by U.S. Treasury securities. COLOTRUST is rated AAAm by Standard and Poor’s. Interest Rate Risk: As a means of limiting its exposure to interest rate risk, the Town diversifies its investments by security type and institution, and limits holdings in any one type of investment with any one issuer. The Town coordinates its investments maturities to closely match cash flow needs and invests primarily in securities with a maximum investment term less than five years from the purchase date. As a result of the limited length of maturities the Town has limited its interest rate risk. Credit Risk: The Town’s general investment policy is to apply the prudent-person rule; investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and, in general, avoid speculative investments. Concentration of Credit Risk: The Town diversifies its investments by security type and institution. Credit quality distribution for investments, with credit exposure as a percentage of total investments,are as follows at year end: Investment Type Rating Percentage COLOTRUST AAAm 38% 101 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D17 IV.Detailed Notes on all Funds (continued) A.Deposit and Investments (continued) At year end, the Town had the following investments and maturities: Carrying Type Rating Maturities Value Deposits: Cash on hand 2,230$ Demand deposits 60,889,480 Certificates of deposit <1 year 1,208,740 Certificates of deposit <5 years 7,653,941 Total - Deposits 69,754,391$ Investments: Mortgage pools AA+N/A 24,841,757$ COLOTRUST AAAm N/A 80,387,168 Pension and Section 457 investments N/A N/A 108,568,796 Total - Investments 213,797,720$ Total deposits and investments 283,552,111$ Reconciliation to Statement of Net Position: Equity in pooled cash and investments 149,229,186$ Cash and cash equivalents - Unrestricted 12,763,798 Cash and cash equivalents - Restricted 12,990,331 Fiduciary funds 108,568,796 Total 283,552,111$ 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. 102 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D18 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: Vail Vail Local Vail Capital Real Estate General Marketing Marketing Reinvestment Projects Transfer Fund Fund District Authority Fund Tax Fund Receivables: Property taxes 5,713,062$ -$ -$ -$ -$ -$ Other taxes 8,066,250 - 1,016,683 - 8,669 47,350 Other governments 233,425 - - - 143,657 15,164 Other 854,577 - - - 279,301 25,352 Lease receivable (see Note IV.D )- - - - - - Receivables - Gross 14,867,314 - 1,016,683 - 431,627 87,866 Less: Allowance for uncollectibles (35,000) - - - - - Receivables, net 14,832,314$ -$ 1,016,683$ -$ 431,627$ 87,866$ Dispatch Heavy Health Timber Services Equipment Insurance Ridge Fund Fund Fund Total Receivables: Property taxes -$ -$ -$ -$ 5,713,062$ Other taxes - - - - 9,138,952 Other governments - - - - 392,246 Other 2,444 885 21,102 1,144 1,184,805 Lease receivable (see Note IV.D )4,731,779 - - - 4,731,779 Receivables - Gross 4,734,223 885 21,102 1,144 21,160,844 Less: Allowance for uncollectibles - - - - (35,000) Receivables, net 4,734,223$ 885$ 21,102$ 1,144$ 21,125,844$ 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 $4,441,362 at December 31, 2022 and is comprised of the following: Vail Capital Real Estate General Marketing Projects Transfer Tax Fund Fund Fund Fund Total Unearned revenues: Business licenses -$ 158,395$ -$ -$ 158,395$ Art projects - - - 15,688 15,688 Environmental programs - - - 159,637 159,637 Federal grants 1,377,167 - - - 1,377,167 Parking fees 219,078 - - - 219,078 Library grants 97,243 - - - 97,243 Police programs 80,287 - - - 80,287 Construction projects - - 2,333,867 - 2,333,867 1,773,775$ 158,395$ 2,333,867$ 175,325$ 4,441,362$ 103 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D19 IV.Detailed Notes on all Funds (continued) B.Receivables (continued) Unearned revenue for construction projects in the Capital Projects Fund includes $558,563 collected from Holy Cross Energy for community enhancement to place utilities underground. The other $1,775,304 was collected from developers for road improvements.The revenue will be recognized in the year the money is spent. Loans receivable at December 31, 2022 are comprised of amounts due under the Town’s EHOP Program, which assists qualified full-time Town employees with the purchase of a primary residence within certain geographic boundaries, by providing secured, non- interest bearing loans. Repayment of loans made under the EHOP Program is over a maximum 15-year term,including 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, 2022 was $757,408. C.Capital Assets Capital asset activity for the Town’s governmental activities during 2022 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated: Land 24,814,189$ -$ -$ 24,814,189$ Art 3,038,464 37,196 (100,000) 2,975,660 Construction in process 1,855,399 2,047,698 (393,459) 3,509,638 Intangibles 15,485,203 980,093 - 16,465,296 Total Capital Assets, Not Being Depreciated 45,193,255 3,064,987 (493,459) 47,764,783 Capital Assets, Being Depreciated: Buildings and improvements 133,169,829 11,312,373 (333,957) 144,148,245 Infrastructure and improvements 180,873,705 3,966,906 - 184,840,611 Equipment and vehicles 57,486,076 4,132,058 (7,407,876) 54,210,258 Total Capital Assets Being Depreciated 371,529,610 19,411,337 (7,741,833) 383,199,114 Less Accumulated Depreciation For: Buildings and improvements (59,898,845) (3,319,033) 135,819 (63,082,059) Infrastructure and improvements (91,221,488) (6,153,740) - (97,375,228) Equipment and vehicles (33,629,504) (3,811,021) 6,973,202 (30,467,323) Total Accumulated Depreciation (184,749,837) (13,283,794) 7,109,021 (190,924,610) Total Capital Assets Being Depreciated, Net 186,779,773 6,127,543 (632,812) 192,274,504 Governmental Activities Capital Assets, Net 231,973,028$ 9,192,530$ (1,126,271)$ 240,039,287$ 104 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D20 IV. Detailed Notes on all Funds (continued) C. Capital Assets Capital asset activity for the Town’s business-type activities during 2022 was as follows: Beginning Ending Balance Increases Decreases Balance Business-type Activities Capital Assets, Not Being Depreciated: Land 4,570,520$ -$ -$ 4,570,520$ Construction in process 3,945,475 13,096,898 - 17,042,373 Total Capital Assets, Not Being Depreciated 8,515,995 13,096,898 - 21,612,893 Capital Assets, Being Depreciated: Buildings and improvements 9,429,160 - - 9,429,160 Infrastructure and improvements 885,912 3,450 - 889,362 Equipment 2,792,799 - (1,254,175) 1,538,624 Total Capital Assets Being Depreciated 13,107,871 3,450 (1,254,175) 11,857,146 Less Accumulated Depreciation For: Buildings and improvements (5,045,691) (314,379) (267,216) (5,360,069) Infrastructure and improvements (319,814) (47,162) - (366,976) Equipment (1,680,199) (147,325) 1,254,175 (573,349) Total Accumulated Depreciation (7,045,704) (508,866) 986,959 (6,300,394) Total Capital Assets Being Depreciated, Net 6,062,167 (505,416) (267,216) 5,556,752 Business-type Activities Capital Assets, Net 14,578,162$ 12,591,482$ (267,216)$ 27,169,645$ Depreciation expense for 2022 was charged to functions of the Town as follows: Governmental Activities: General government 868,024$ Public safety 463,391 Public works and transportation 9,399,471 Culture and recreation 2,552,908 Total Depreciation Expense - Governmental Activities 13,283,794$ Business-type Activities: Dispatch services 147,325$ Housing 361,541 Total Depreciation - Business-type Activities 508,866$ 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, 2022, the Town had $79,371,546 of fully-depreciated assets. 105 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D21 IV. Detailed Notes on all Funds (continued) D. Lease Receivable In September, 2014, the Town executed a Ground Lease and a Development Agreement with Lion’s Ridge Apartment Homes, LLC (“Lion’s Ridge”) with respect to the land on the eastern half of the Timber Ridge development (the “Property”). Under the terms of the Ground Lease, the Town leases the Property to Lion’s Ridge for a 50-year term, during which time Lion’s Ridge will construct and lease deed-restricted apartments on the Property. Pursuant to the Ground Lease, the Town grants Lion’s Ridge an option to purchase the Property at any time prior to December 31, 2024. The Town is reasonably certain Lion’s Ridge will exercise the option, and has calculated the lease receivable and related deferred inflows accordingly. The future principal and interest lease payments as of December 31, 2022 were as follows: Principal Interest Total 2023 -$ 132,262$ 132,262$ 2024 3,692,067 135,959 3,828,026 Totals 3,692,067$ 268,221$ 3,960,288$ Total outstanding current interest receivable on the lease is $1,039,712. E. Interfund Receivables, Payables, and Transfers At December 31, 2022, VRA owed the Capital Projects Fund $2,403,609, consisting of $111,613 in management fees to the General Fund and $2,291,996 to complete the construction of a new roundabout on South Frontage Road between the Vail Municipal Building and Lionshead Parking Structure, final clean-up and site improvements for the new childcare center on the upper level of the Lionshead Parking Structure, the installation of an electric snowmelt boiler in Lionshead Village, and structural repairs and maintenance to the Lionshead Parking Structure. The Timber Ridge Enterprise Fund has a promissory note payable to the Town which is reflected as an internal balance between the governmental activities and business-type activities categories on the Statement of Net Position. The note had an original principal balance of $8 million, bears interest at 1.5% per annum, calls for blended annual payments, and matures in December 2033. Timber Ridge remitted $73,315 of interest to the Town during 2022 and, as of December 31, 2022, had recorded $29,330 of accrued interest payable to the Town. The outstanding principal balance of the note at December 31, 2022 was $4,692,796. Remaining debt service requirements for the $8 million promissory note are as follows: Principal Interest Total 2023 395,574$ 67,425$ 462,999$ 2024 401,508 61,447 462,955 2025 407,530 55,379 462,909 2026 413,643 49,220 462,863 2027 419,848 42,969 462,817 2028 - 2032 2,195,616 117,747 2,313,363 2033 459,077 3,443 462,520 Totals 4,692,796$ 397,631$ 5,090,427$ 106 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D22 IV. Detailed Notes on all Funds (continued) E. Interfund Receivables, Payables, and Transfers (continued) 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. F. Long-term Liabilities – Governmental Activities The Town has the following long-term debt outstanding for governmental activities: 1. Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010B VRA 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. VRA receives 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 VRA, 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 VRA 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. In June 2020, the 2010B Bonds were refunded through the Refunding Loan, Series 2020. 107 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D23 IV. Detailed Notes on all Funds (continued) F. Long-term Liabilities – Governmental Activities (continued) 2. Vail Reinvestment Authority Tax Increment Revenue Refunding Loan, Series 2020 VRA issued a $6,386,000 Tax Increment Revenue Refunding Loan, Series 2020 (the “Series 2020 Refunding Loan”), the proceeds of which were used to refund all outstanding 2010B Bonds. The Series 2020 Refunding Loan, which is secured by a pledge of VRA’s property tax revenues, is a special limited obligation of VRA and not the Town. The interest rate on the Series 2020 Refunding Loan is 1.19% per annum, and is payable June 1 and December 1 annually from December 1, 2020 through maturity on June 1, 2030. Principal payments are due annually, beginning in June 2021, through maturity in June 2030. The Series 2020 Refunding Loan is not subject to prepayment at the Town’s option. The Town realized a net present value savings of $1,115,124 on the refunding of the 2010B Bonds. 3. Certificates of Participation, Series 2021 The Town issued $22,260,000 of Certificates of Participation dated October 27, 2021 (the “the Series 2021 Certificates”), with proceeds used to finance the acquisition, construction, installation, and equipping of rental workforce housing. The interest rates on the Series 2021 Certificates range from 2.65% to 4% and are payable on June 1 and December 1 through 2051. The Series 2021 Certificates maturing on or after December 1, 2032 are subject to redemption prior to maturity at the option of the Town, and on any date thereafter, at par plus accrued interest to the redemption date, with no redemption premium. Certificates maturing December 1, 2041, 2046, and 2051 are subject to a mandatory sinking fund redemption at a price equal to the principal amount thereof, plus accrued interest to the redemption date. 4. Lease Purchase Financing, Series 2021 During 2021, the Town entered into a Site and Improvement Lease and a Lease Purchase Agreement with Truist Bank (“Truist”), a North Carolina Banking Corporation, for $15,190,000 to finance the construction of additions and renovations to the respect to property currently utilized as the Town’s Public Works facility (the “Site”). The loan bears interest at 1.75% and are payable on June 1 and December 1 through 2035. G. 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, 2022 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 $4,558,166 at December 31, 2022 has not been reflected in the Town’s financial statements as the amount is partially insured by an independent insurance company and the amounts are not payable at termination. 108 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D24 IV. Detailed Notes on all Funds (continued) H. Long-term Liabilities – Refunded In prior years, the Town defeased certain general obligations and other bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. The bonds intended to be refunded by the refunding issues remain a contingent liability of the Town until retired; however, they are not included for the purposes of calculating debt limits of the Town. The amount of debt considered defeased cannot be readily determined as of December 31, 2022. I. Long-term Liabilities - Activity and Debt Service Schedules Long-term liability activity for the year ended December 31, 2022 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: Tax Increment Revenue Refunding Loan, Series 2020 6,386,000$ -$ (1,230,000)$ 5,156,000$ 620,000$ Lease Purchase Financing, Series 2021 14,245,000 - (905,000) 13,340,000 920,000 Compensated absences 1,535,093 418,186 - 1,953,279 585,984 Total Governmental Activities Long-term Liabilities 22,166,093$ 418,186$ (2,135,000)$ 20,449,279$ 2,125,984$ Business-type Activities: 2021 Certificates of Participation 22,260,000$ -$ (315,000)$ 21,945,000$ 415,000$ Debt issuance premium 3,020,230 - (100,675) 2,919,555 - Compensated absences 113,794 - (11,894) 101,900 30,570 Total Business-type Activities Long-term Liabilities 25,394,024$ -$ (427,569)$ 24,966,455$ 445,570$ Debt service requirements for the governmental activities at December 31, 2022 were as follows: Principal Interest Total Governmental Activities: 2023 1,540,000$ 304,104$ 1,844,104$ 2024 1,566,000 280,666 1,846,666 2025 1,591,000 256,849 1,847,849 2026 1,611,000 232,605 1,843,605 2027 1,636,000 208,037 1,844,037 2028-2032 7,197,000 670,078 7,867,078 2033-2037 3,355,000 157,740 3,512,740 Total Governmental Activities 18,496,000$ 2,110,079$ 20,606,079$ 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. 109 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D25 IV. Detailed Notes on all Funds (continued) I. Long-term Liabilities - Activity and Debt Service Schedules (continued) Debt service requirements for the business-type activities at December 31, 2022 were as follows: Principal Interest Total Business-Type Activities: 2023 415,000$ 800,388$ 1,215,388$ 2024 435,000 783,788 1,218,788 2025 450,000 766,388 1,216,388 2026 470,000 748,388 1,218,388 2027 490,000 729,588 1,219,588 2028-2032 2,750,000 3,338,738 6,088,738 2033-2037 3,350,000 2,742,538 6,092,538 2038-2042 4,070,000 2,017,338 6,087,338 2043-2047 4,955,000 1,135,138 6,090,138 2048-2051 4,560,000 303,188 4,863,188 Total Business-type Activities 21,945,000$ 13,365,475$ 35,310,475$ J. Fund Balance Disclosures The Town classifies governmental fund balances as follows: Non-spendable – includes fund balance amounts inherently non-spendable since they represent inventories, prepaid items, and long-term portions of loans receivable. Spendable Fund Balance: Restricted – includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors, or amounts constrained due to constitutional provisions or enabling legislation. Committed – includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority, which is the Town Council. The Town’s original budget legislation begins with combining historical data, assessment of needs for the upcoming year and the Town’s platform to review, and/or make changes to each department’s budget. The budget is formally presented to the Town Council via an advertised public process for review, revisions and final approval by year-end. All subsequent budget requests made during the year, after Town Council approval, must be presented via a public process and again approved by Town Council. Assigned – includes spendable fund balance amounts that are intended to be used for specific purposes that are neither considered restricted nor committed. Fund balance may be assigned by Town Council or its management designees. Unassigned – includes residual positive fund balance within the General Fund, which has not been classified within the other above mentioned categories. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or assigned for those specific purposes. 110 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D26 IV. Detailed Notes on all Funds (continued) J. Fund Balance Disclosures (continued) 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. 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. 111 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D27 V. Other Information (continued) A. Pension Plans (continued) The annual pension cost is the Town's contributions less forfeitures from the prior year. The plans' invested assets at December 31, 2022 of $83,808,125 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 2022 covered payroll was $23,864,881 of which $20,259,267 was for permanent employees and $3,605,615 was for seasonal staff. Total 2022 payroll for all Town employees was $23,864,881. 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 $24,342,499 at December 31, 2022. The assets were invested in mutual funds, as previously described. Pursuant to the Town’s adoption of GASB Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, the 457 Plan has been included in these financial statements as an expendable trust fund. C. Cafeteria Plan The Town offers a cafeteria compensation plan organized under section 125 of the Internal Revenue Code, which includes dependent care and health expense reimbursement. No cost to the Town is recognized as the plan is a salary reduction plan. 112 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D28 V. Other Information (continued) D. Risk Management The Town is exposed to various risks of loss related to workers’ compensation, general liability, unemployment, torts, theft of, damage to, and destruction of assets, and errors and omissions. The Town carries commercial coverage for these risks and claims and does not expect claims to exceed their coverage. The Town offers health insurance to certain employees through the Town’s self-funded health plan with excess coverage underwritten by a commercial carrier. Liabilities for retained risk claims are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (“IBNR”). The following is a summary of the changes in the balances of the claims liability during 2022: Claims liability, beginning of year 552,212$ Current year claims (3,560,333) Claims payments 3,314,816 Claims liability, end of year 306,695$ 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, 2022. 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, 2022. 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 $16,850,000 to finance construction of multi-family housing projects within the Town. The bonds mature in 2038. The bonds are solely payable from, and are secured by, a pledge of revenue from loan agreements between the Town and Middle Creek Village, LLC (as borrower). The borrower’s obligation is secured by Deeds of Trust, Security Agreements, Financing Statements and assignment of rents and leases. The bonds are a special limited obligation of the Town, payable solely from the specified revenues of the projects, and do not constitute debt or indebtedness of the Town. 113 Town of Vail, Colorado Notes to the Financial Statements December 31, 2022 (Continued) D29 V. Other Information (continued) G. Restatement for New Accounting Standard The Town implemented GASB Statement No. 87, Leases (“GASB 87”), effective January 1, 2022. GASB 87 requires that governments recognize certain lease assets and liabilities for leases that previously were classified as operating leases, and recognize inflows or outflows of resources based on the payment provisions of each such contract. The implementation of GASB 87 required the Town to recognize the Town’s lease receivable disclosed in Note IV.D., with corresponding net increases in the beginning balance of the government-wide statement of activities business-type net position and beginning fund balance of the Timber Ridge Fund, as follows: Business -Type Net Position - Beginning of Year 11,028,785$ Record lease receivable 3,478,294 Record lease revenue deferred inflow (966,750) Business-Type Net Position - Beginning of Year (restated)13,540,329$ Timber Ridge Fund Balance - Beginning of Year 6,485,147$ Record lease receivable 3,478,294 Record lease revenue deferred inflow (966,750) Timber Ridge Fund Balance - Beginning of Year (restated)8,996,691$ 114 REQUIRED SUPPLEMENTARY INFORMATION 115 2021 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: General sales taxes 19,034,000 24,771,000 24,771,000 - 17,050,000 Property and ownership taxes 6,014,632 6,064,632 6,041,413 (23,219) 6,016,105 Ski area lift ticket admissions tax 5,448,196 6,273,196 6,473,618 200,422 5,518,890 Franchise tax 1,105,043 1,203,043 1,325,361 122,318 1,148,610 Tobacco tax 540,000 540,000 549,445 9,445 536,920 Penalties and interest on delinquent taxes 48,574 48,574 58,446 9,872 65,774 Total - Taxes 32,190,445 38,900,445 39,219,283 318,838 30,336,299 Permits and Licenses: Construction fees 1,152,667 1,152,667 969,651 (183,016) 1,457,334 Contractors' licenses 52,020 52,020 59,700 7,680 80,698 Other permits and licenses 982,016 1,607,016 1,465,688 (141,328) 1,386,950 Total - Permits and Licenses 2,186,703 2,811,703 2,495,039 (316,664) 2,924,982 Intergovernmental: County sales tax 982,400 1,499,400 1,537,472 38,072 1,209,002 County road and bridge 750,000 800,000 795,229 (4,771) 798,139 Additional motor vehicle registration fees 27,500 27,500 28,105 605 28,191 Highway users tax 223,323 223,323 228,525 5,202 215,331 Other county sources 87,500 89,034 187,500 98,466 87,500 Other state sources 280,000 776,761 808,348 31,587 818,102 Federal sources 1,658,768 3,316,002 1,810,435 (1,505,567) 2,252,073 Total - Intergovernmental 4,009,491 6,732,020 5,395,614 (1,336,406) 5,408,338 Charges for Services: Management fees - Vail Local Marketing District 145,000 145,000 145,000 - 145,000 Internal service charge 589,450 699,821 711,534 11,713 906,303 Out of district fire response 40,800 40,800 82,120 41,320 77,520 Parking 6,608,758 7,758,758 8,153,534 394,776 7,060,319 Fines and forfeitures 206,567 206,567 230,774 24,207 268,878 Rents 1,119,843 1,152,379 1,418,890 266,511 1,116,305 Other charges, services, and sales 296,047 296,047 281,635 (14,412) 262,647 Total - Charges for Services 9,006,465 10,299,372 11,023,487 724,115 9,836,972 Investment Income: Earnings on investments 200,000 200,000 169,375 (30,625) 100,880 Miscellaneous: Miscellaneous 251,000 448,395 261,189 (187,206) 492,929 Total Revenues 47,844,104 59,391,935 58,563,987 (827,948) 49,100,400 (Continuing) 2022 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, 2022 With Comparative Actual Amounts For the Year Ended December 31, 2021 The accompanying notes are an integral part of these financial statements. E1 116 2021 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Expenditures: General Government: Town officials 1,854,509 2,299,167 2,388,333 (89,166) 1,553,568 Administrative 7,143,647 7,427,175 5,710,327 1,716,848 5,051,194 Community development 3,132,763 3,468,036 2,691,258 776,778 2,279,951 Total - General Government 12,130,919 13,194,378 10,789,918 2,404,460 8,884,713 Public Safety: Police department 7,537,535 7,976,916 7,560,233 416,683 6,882,503 Fire department 5,478,406 6,340,158 6,005,342 334,816 5,495,895 Total - Public Safety 13,015,941 14,317,074 13,565,575 751,499 12,378,398 Public Works and Transportation: Highways and streets 6,054,987 6,085,910 5,622,398 463,512 5,066,774 Transportation 5,821,755 6,395,390 6,527,048 (131,658) 5,664,681 Parking operations 2,037,180 2,076,162 2,002,102 74,060 1,731,583 Facility maintenance 4,343,797 5,572,214 5,592,784 (20,570) 4,109,888 Total - Public Works and Transportation 18,257,719 20,129,676 19,744,332 385,344 16,572,926 Culture and Recreation: Special recreation facilities 292,550 295,550 301,992 (6,442) 250,085 Library 1,050,451 1,209,260 1,233,919 (24,659) 1,054,540 Total - Culture and Recreation 1,343,001 1,504,810 1,535,911 (31,101) 1,304,625 Economic Development: Contributions, marketing, and special events 2,199,509 2,315,401 1,853,272 462,129 1,781,243 Total - Economic Development 2,199,509 2,315,401 1,853,272 462,129 1,781,243 Total Expenditures 46,947,089 51,461,339 47,489,008 3,972,331 40,921,905 Excess (Deficiency) of Revenues Over Expenditures 897,015 7,930,596 11,074,979 3,144,383 8,178,495 Other Financing Sources (Uses): Sale of assets - - 65,226 65,226 17,963 Transfers out (2,490,600) (2,603,025) (2,116,938) 486,087 (2,317,927) Total Other Financing Sources (Uses)(2,490,600) (2,603,025) (2,051,712) 551,313 (2,299,964) Net Change in Fund Balance (1,593,585) 5,327,571 9,023,267 3,695,696 5,878,531 Fund Balance - January 1 39,981,996 44,426,288 44,426,288 - 38,547,757 Fund Balance - December 31 38,388,411 49,753,859 53,449,555 3,695,696 44,426,288 (Continued) 2022 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, 2022 With Comparative Actual Amounts For the Year Ended December 31, 2021 The accompanying notes are an integral part of these financial statements. E2 117 2021 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Permits and Licenses: Business licenses 345,000 345,000 362,978 17,978 340,488 Investment Income: Interest on investments 1,000 1,000 (3,334) (4,334) 239 Miscellaneous: Project reimbursements/shared costs - 152,500 127,500 (25,000) - Total Revenues 346,000 498,500 487,144 (11,356) 340,727 Expenditures: Economic Development: Special events 2,010,327 2,089,312 1,589,724 499,588 1,650,621 Commission on Special Events 811,648 811,648 689,698 121,950 610,457 Cultural heritage - 8,000 8,000 - 40,000 Administration fee 17,250 17,250 18,149 (899) 17,024 Total Expenditures 2,839,225 2,926,210 2,305,571 620,639 2,318,102 Excess (Deficiency) of Revenues Over Expenditures (2,493,225) (2,427,710) (1,818,427) 609,283 (1,977,375) Other Financing Sources (Uses): Transfers in 2,490,600 2,425,085 1,825,000 (600,085) 2,000,000 Total Other Financing Sources (Uses)2,490,600 2,425,085 1,825,000 (600,085) 2,000,000 Net Change in Fund Balance (2,625) (2,625) 6,573 9,198 22,625 Fund Balance - January 1 372,374 409,749 409,749 - 387,124 Fund Balance - December 31 369,749 407,124 416,322 9,198 409,749 2022 Town of Vail, Colorado Vail Marketing Fund - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2022 With Comparative Actual Amounts For the Year Ended December 31, 2021 The accompanying notes are an integral part of these financial statements. E3 118 2021 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Lodging tax 3,825,000 5,350,000 5,472,949 122,949 4,276,729 Investment Income: Interest on investments 1,000 1,000 2,730 1,730 281 Miscellaneous: Miscellaneous - - - - 2,970 Total Revenues 3,826,000 5,351,000 5,475,679 124,679 4,279,980 Expenditures: Economic Development: Destination 891,000 980,027 951,881 28,146 987,546 Front Range 218,500 158,473 267,708 (109,235) 449,774 Groups and meetings 265,000 265,000 229,324 35,676 201,894 Marketing 1,972,000 2,476,174 1,842,896 633,278 1,408,172 Event Liason 25,000 25,000 25,000 - 25,000 Purchased services 828,500 981,290 968,414 12,876 575,540 Total Expenditures 4,200,000 4,885,964 4,285,223 600,741 3,647,926 Net Change in Fund Balance (374,000) 465,036 1,190,456 725,420 632,054 Fund Balance - January 1 2,710,863 2,710,863 2,710,863 - 2,078,809 Fund Balance - December 31 2,336,863 3,175,899 3,901,319 725,420 2,710,863 2022 With Comparative Actual Amounts For the Year Ended December 31, 2021 Town of Vail, Colorado Vail Local Marketing District - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. E4 119 2021 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Property tax 6,802,000 6,301,000 6,296,288 (4,712) 6,789,616 Investment Income: Interest on investments 15,000 15,000 11,585 (3,415) 31,824 Total Revenues 6,817,000 6,316,000 6,307,873 (8,127) 6,821,440 Expenditures: Economic Development: Administration 122,200 111,800 111,613 187 120,007 Treasurer's fees 204,060 189,030 188,891 139 203,691 Professional fees 10,000 10,000 215 9,785 - Vail Square Metro District 692,000 689,670 694,055 (4,385) 765,730 Total - Economic Development 1,028,260 1,000,500 994,774 5,726 1,089,428 Debt Service: Principal 612,000 612,000 612,000 - 618,000 Interest 70,297 70,297 64,168 6,129 72,316 Total - Debt Service 682,297 682,297 676,168 6,129 690,316 Total Expenditures 1,710,557 1,682,797 1,670,942 11,855 1,779,744 Excess (Deficiency) of Revenues Over Expenditures 5,106,443 4,633,203 4,636,931 3,728 5,041,696 Other Financing Sources (Uses): Transfers out (50,000) (2,302,146) (2,291,996) 10,150 (7,410,723) Total Other Financing Sources (Uses)(50,000) (2,302,146) (2,291,996) 10,150 (7,410,723) Net Change in Fund Balance 5,056,443 2,331,057 2,344,935 13,878 (2,369,027) Fund Balance - January 1 2,548,036 2,548,036 2,548,036 - 4,917,063 Fund Balance - December 31 7,604,479 4,879,093 4,892,971 13,878 2,548,036 With Comparative Actual Amounts For the Year Ended December 31, 2021 2022 Town of Vail, Colorado Vail Reinvestment Authority - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. E5 120 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Revenues: Taxes: Sales tax - 4,813,000 4,954,438 141,438 Total - Taxes - 4,813,000 4,954,438 141,438 Miscellaneous: Project reimbursements/shared costs - - 2,040,000 2,040,000 Employee Housing Fee-in-Lieu - 46,000 52,425 6,425 Miscellaneous - - 6,750 6,750 Total - Miscellaneous - 46,000 2,099,175 2,053,175 Total Revenues - 4,859,000 7,053,613 2,194,613 Expenditures: Public Works: Capital projects and acquisition 2,500,000 13,477,171 587,090 12,890,081 Total - Public Works 2,500,000 13,477,171 587,090 12,890,081 Total Expenditures 2,500,000 13,477,171 587,090 12,890,081 Excess (Deficiency) of Revenues Over Expenditures (2,500,000) (8,618,171) 6,466,523 15,084,694 Other Financing Sources (Uses): Sale of assets - 1,689,000 (362,157) (2,051,157) Transfers in 2,500,000 7,852,702 7,852,704 2 Total Other Financing Sources (Uses)2,500,000 9,541,702 7,490,547 (2,051,155) Net Change in Fund Balance - 923,531 13,957,070 13,033,539 Fund Balance - January 1 - - - - Fund Balance - December 31 - 923,531 13,957,070 13,033,539 2022 Town of Vail, Colorado Housing Fund - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. E6 121 SUPPLEMENTARY INFORMATION 122 2021 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Sales tax 11,666,000 15,179,000 16,536,790 1,357,790 17,812,406 Construction use tax 2,800,000 1,965,000 2,189,830 224,830 3,682,745 Franchise tax 204,000 204,000 218,151 14,151 204,702 Total - Taxes 14,670,000 17,348,000 18,944,771 1,596,771 21,699,853 Permits and Licenses: Construction fees - 1,500,000 - (1,500,000) 74,491 Intergovernmental: County revenues - 462,333 445,009 (17,324) - State grants - 2,358,149 - (2,358,149) 1,448,777 Federal grants - 3,470,882 5,441 (3,465,441) 550,383 Total - Intergovernmental - 6,291,364 450,450 (5,840,914) 1,999,160 Charges for Services: Leases - Vail Commons 164,067 164,067 123,409 (40,658) 163,909 Resale fees - - - - - Total - Charges for Services 164,067 164,067 123,409 (40,658) 163,909 Investment Income: Interest on investments 575,908 575,908 82,246 (493,662) 50,449 Miscellaneous: Project reimbursements/shared costs - 15,000 41,683 26,683 73,442 Miscellaneous - - 460 460 - Total - Miscellaneous - 15,000 42,143 27,143 73,442 Total Revenues 15,409,975 25,894,339 19,643,019 (6,251,320) 24,061,304 Expenditures: Public Works: Capital projects and acquisition 10,040,105 47,533,885 19,314,285 28,219,600 39,634,350 Debt Service: Principal payments 905,000 905,000 905,000 - 945,000 Interest 250,712 250,712 250,712 - 210,905 Total - Debt Service 1,155,712 1,155,712 1,155,712 - 1,155,905 Total Expenditures 11,195,817 48,689,597 20,469,997 28,219,600 40,790,255 Excess (Deficiency) of Revenues Over Expenditures 4,214,158 (22,795,258) (826,978) 21,968,280 (16,728,951) Other Financing Sources (Uses): Debt proceeds - - - - 15,190,000 Debt issuance costs - - (1,250) 1,250 (185,265) Sale of assets - 295,000 314,724 19,724 165,766 Transfers in 50,000 2,322,146 2,311,996 (10,150) 12,056,705 Transfers (out)(2,500,000) (13,999,906) (9,074,465) 4,925,441 (4,500,000) Total Other Financing Sources (Uses)(2,450,000) (11,382,760) (6,448,995) 4,933,765 22,727,206 Net Change in Fund Balance 1,764,158 (34,178,018) (7,275,973) 26,902,045 5,998,255 Fund Balance - January 1 34,827,888 59,841,742 59,841,742 - 53,843,487 Fund Balance - December 31 36,592,046 25,663,724 52,565,769 26,902,045 59,841,742 With Comparative Actual Amounts For the Year Ended December 31, 2021 2022 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, 2022 The accompanying notes are an integral part of these financial statements. F1 123 2021 Final Budget Variance Original Final Positive Budget Budget Actual (Negative) Actual Revenues: Taxes: Real estate transfer tax 7,500,000 9,707,414 9,603,456 (103,958) 13,371,555 Intergovernmental Revenue: Lottery revenue 20,000 20,000 30,714 10,714 32,908 Other county revenue 101,200 441,200 40,000 (401,200) - Other state revenue - - 7,240 7,240 46,006 Total - Intergovernmental Revenue 121,200 461,200 77,954 (383,246) 78,914 Charges for Services: Recreation amenities fee 10,000 10,000 6,190 (3,810) 86,145 Land lease to Vail Recreation District 171,700 171,700 181,507 9,807 174,778 Total - Charges for Services 181,700 181,700 187,697 5,997 260,923 Investment Income: Interest on investments 100,460 100,460 45,786 (54,674) (22,055) Miscellaneous: Project reimbursements - - 25,128 25,128 26,554 Donations - 46,599 23,287 (23,312) 17,936 Other 32,000 65,915 77,762 11,847 38,809 Total - Miscellaneous 32,000 112,514 126,177 13,663 83,299 Total Revenues 7,935,360 10,563,288 10,041,070 (522,218) 13,772,636 Expenditures: Public Safety Fire suppression 631,393 954,465 784,150 170,315 288,558 Public Works: Capital projects 7,441,224 26,532,646 3,710,782 22,821,864 2,199,610 Culture and Recreation: Project management 375,000 485,371 480,173 5,198 668,578 Park maintenance 2,135,540 2,192,354 1,726,336 466,018 1,878,052 Environmental sustainability 1,461,006 1,821,715 1,437,864 383,851 884,723 Art in public places 136,586 139,281 164,976 (25,695) 128,647 Total - Culture and Recreation 4,108,132 4,638,721 3,809,349 829,372 3,560,000 Total Expenditures 12,180,749 32,125,832 8,304,281 23,821,551 6,048,168 Excess (Deficiency) of Revenues Over Expenditures (4,245,389) (21,562,544) 1,736,789 23,299,333 7,724,468 Other Financing Sources (Uses): Transfers in - 109,546 109,546 - - Total Other Financing Sources (Uses)- 109,546 109,546 - - Net Change in Fund Balance (4,245,389) (21,452,998) 1,846,335 23,299,333 7,724,468 Fund Balance - January 1 17,380,339 28,077,540 28,077,540 - 20,353,072 Fund Balance - December 31 13,134,950 6,624,542 29,923,875 23,299,333 28,077,540 With Comparative Actual Amounts For the Year Ended December 31, 2021 2022 Town of Vail, Colorado Real Estate Transfer Tax Fund - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget (GAAP Basis) and Actual For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. F2 124 2021 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Operating Revenues: Rents 1,812,841 1,812,841 1,812,816 (25) 1,734,323 Ground lease - - 454,545 454,545 454,545 Other 20,219 20,219 50,736 30,517 28,752 Total Operating Revenues 1,833,060 1,833,060 2,318,097 485,037 2,217,620 Operating Expenses: Operating expenses 486,516 486,516 510,985 (24,469) 501,148 Capital outlay 7,050 7,050 3,450 3,600 11,216 Total Operating Expenses 493,566 493,566 514,435 (20,869) 512,364 Operating Income (Loss)1,339,494 1,339,494 1,803,662 464,168 1,705,256 Non-operating Revenues (Expenses): Interest on investments 480 480 7,024 6,544 114 Interest expense (73,315) (73,315) (70,879) 2,436 (76,951) Loan principal repayment - Capital Projects Fund (389,728) (389,728) (389,728) - (2,283,969) Total Non-operating Revenue (Expenses)(462,563) (462,563) (453,583) 8,980 (2,360,806) Change in Net Position - Budget Basis 876,931 876,931 1,350,079 473,148 (655,550) Reconciliation to GAAP Basis: Adjustments: Loan principal repayment - Capital Projects Fund 389,728 2,283,969 Capitalized assets 3,450 11,216 Depreciation (361,541) (361,028) Total Adjustments 31,637 1,934,157 Change in Net Position - GAAP Basis 1,381,716 1,278,607 2022 Town of Vail, Colorado Timber Ridge Fund - Enterprise 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, 2022 With Comparative Actual Amounts For the Year Ended December 31, 2021 The accompanying notes are an integral part of these financial statements. F3 125 2021 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Operating Revenues: Charges and Fees: Dispatch service fee 652,938 652,938 652,938 - 616,306 Dispatching contracts 1,298,899 1,298,899 1,298,899 - 1,224,136 Total Operating Revenues 1,951,837 1,951,837 1,951,837 - 1,840,442 Operating Expenses: Public Safety: Salaries and benefits 2,376,337 2,490,335 2,215,602 274,733 2,170,280 Operating expenses 555,065 555,065 466,206 88,859 443,290 Capital outlay 20,174 30,680 27,528 3,152 634,859 Total Operating Expenses 2,951,576 3,076,080 2,709,336 366,744 3,248,429 Operating (Loss) - Budget Basis (999,739) (1,124,243) (757,499) 366,744 (1,407,987) Non-operating Revenues: Operating grant - Intergovernmental 0 10,506 11,103 597 284,097 Other state revenues - - - - 71,012 Operating grant - E-911 Board 956,272 956,272 956,272 - 874,606 Other operating federal grants - - - - 2,806 Project reimbursements - - 200 200 - Earnings on investments 2,000 2,000 6,481 4,481 (995) Total Non-operating Revenues 958,272 968,778 974,056 5,278 1,231,526 Income (Loss) Before Transfers (41,467) (155,465) 216,557 372,022 (176,461) Transfers in - 113,998 113,998 - 171,945 Change in Net Position - Budget Basis (41,467) (41,467) 330,555 372,022 (4,516) Reconciliation to GAAP Basis: Adjustments: Change in accrued compensated absences 11,896 15,688 Capitalized assets - 297,151 Depreciation (147,325) (188,330) Total Adjustments (135,429) 124,509 Change in Net Position - GAAP Basis 195,126 119,993 With Comparative Actual Amounts For the Year Ended December 31, 2021 2022 Town of Vail, Colorado Dispatch Services Fund - Enterprise 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, 2022 The accompanying notes are an integral part of these financial statements. F4 126 2021 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Operating Expenses: Capital outlay - 27,466,201 13,096,898 14,369,303 2,445,475 Total Operating Expenses - 27,466,201 13,096,898 14,369,303 2,445,475 Operating Income (Loss)- (27,466,201) (13,096,898) 14,369,303 (2,445,475) Non-operating Revenues (Expenses): Interest on investments - - 149,681 149,681 261 Interest expense (905,578) (905,578) (788,354) 117,224 (83,181) Bond proceeds - - - - 22,260,000 Bond premium - - - - 3,076,530 Bond principal payments - - (315,000) (315,000) - Financing fees - - (1,250) (1,250) (268,561) Total Non-operating Revenue (Expenses)(905,578) (905,578) (954,923) (49,345) 24,985,049 Income (Loss) Before Transfers (905,578) (28,371,779) (14,051,821) 14,319,958 22,539,574 Transfers in - 6,147,204 1,221,760 (4,925,444) - Change in Net Position - Budget Basis (905,578) (22,224,575) (12,830,061) 9,394,514 22,539,574 Reconciliation to GAAP Basis: Adjustments: Bond principal payments 315,000 - Bond proceeds - (22,260,000) Bond premium - (3,076,530) Capitalized assets 13,096,898 2,445,475 Capital contributions - 1,671,020 Total Adjustments 13,411,898 (21,220,035) Change in Net Position - GAAP Basis 581,837 1,319,539 2022 Town of Vail, Colorado Residences at Main Vail Fund - Enterprise 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, 2022 With Comparative Actual Amounts For the Year Ended December 31, 2021 The accompanying notes are an integral part of these financial statements. F5 127 2021 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Operating Revenues: Charges and Fees: Operating charges 2,883,439 2,883,439 2,537,204 (346,235) 2,378,717 Replacement charges 1,014,079 1,014,079 986,149 (27,930) 939,230 Total - Charges and Fees 3,897,518 3,897,518 3,523,353 (374,165) 3,317,947 Insurance reimbursements 10,000 63,611 54,753 (8,858) 50 Other - - - - 20,153 Total Operating Revenues 3,907,518 3,961,129 3,578,106 (383,023) 3,338,150 Operating Expenses: Public Works: Vehicle maintenance and fuel 3,075,132 3,360,426 3,073,977 286,449 2,447,654 Capital outlay 1,055,000 1,852,201 1,351,972 500,229 892,592 Total Operating Expenses 4,130,132 5,212,627 4,425,949 786,678 3,340,246 Operating Income (Loss) - Budget Basis (222,614) (1,251,498) (847,843) 403,655 (2,096) Non-operating Revenues: Intergovernmental revenues - - 28,406 28,406 3,569 Earnings on investments 2,000 2,000 2,689 689 (1,914) Proceeds from sale of assets 126,890 126,890 188,745 61,855 215,261 Total Non-operating Revenues:128,890 128,890 219,840 90,950 216,916 Transfers in - 48,394 48,394 - - Change in Net Position - Budget Basis (93,724) (1,074,214) (579,609) 494,605 214,820 Reconciliation to GAAP Basis: Adjustments: Contribution from Capital Projects Fund 350,031 - Change in accrued compensated absences (422) (1,991) Capitalized assets 1,351,972 892,592 Net book value of disposed assets (8,105) (33,102) Depreciation (932,215) (837,830) Total Adjustments 761,261 19,669 Change in Net Position - GAAP Basis 181,652 234,489 With Comparative Actual Amounts For the Year Ended December 31, 2021 2022 Town of Vail, Colorado Heavy Equipment Fund - Internal Service 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, 2022 The accompanying notes are an integral part of these financial statements. F6 128 2021 Final Budget Variance Original Final Positive Budget Budget Actual (Negative)Actual Operating Revenues: Charges and Fees: Insurance premiums 4,748,921 4,748,921 4,748,921 - 4,600,000 Insurance premiums - Employee contributions 993,081 993,081 790,302 (202,779) 901,513 Total Operating Revenues 5,742,002 5,742,002 5,539,223 (202,779) 5,501,513 Operating Expenses: General Government: Health claims 4,607,721 4,607,721 3,378,056 1,229,665 3,839,863 Premiums 1,838,004 1,838,004 1,463,391 374,613 1,382,167 Administrative fees 58,820 58,820 52,043 6,777 45,855 Total Operating Expenses 6,504,545 6,504,545 4,893,490 1,611,055 5,267,885 Operating Income (Loss)(762,543) (762,543) 645,733 1,408,276 233,628 Non-operating Revenues: Earnings on investments 35,000 35,000 10,924 (24,076) (3,912) Change in Net Position (727,543) (727,543) 656,657 1,384,200 229,716 With Comparative Actual Amounts For the Year Ended December 31, 2021 2022 Town of Vail, Colorado Health Insurance Fund - Internal Service Fund Schedule of Revenues, Expenses, and Changes in Net Position Budget (GAAP Basis) and Actual For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. F7 129 Heavy Health Equipment Insurance Fund Fund Total Assets: Current Assets: Equity in pooled cash and investments 2,540,752 5,349,406 7,890,158 Accounts receivable, net of allowance for uncollectibles 21,102 1,144 22,246 Inventory 405,289 - 405,289 Prepaid expenses - 60,100 60,100 Total - Current Assets 2,967,143 5,410,650 8,377,793 Non-current Assets: Property, plant, and equipment, net of accumulated depreciation 5,972,747 - 5,972,747 Total Assets 8,939,890 5,410,650 14,350,540 Liabilities: Current Liabilities:. Accounts payable 403,195 307,285 710,480 Accrued salaries and wages 35,615 - 35,615 Current portion of compensated absences 16,428 - 16,428 Total - Current Liabilities 455,238 307,285 762,523 Non-current Liabilities: Compensated absences, net of current portion 38,333 - 38,333 Total Liabilities 493,571 307,285 800,856 Net Position: Net investment in capital assets 5,972,747 - 5,972,747 Unrestricted 2,473,572 5,103,365 7,576,937 Total Net Position 8,446,319 5,103,365 13,549,684 Town of Vail, Colorado Internal Service Funds Combining Statement of Net Position December 31, 2022 The accompanying notes are an integral part of these financial statements. F8 130 Heavy Health Equipment Insurance Fund Fund Total Operating Revenues: Charges for services - Internal 3,523,353 4,748,921 8,272,274 Charges for services - External - 790,302 790,302 Insurance reimbursements 54,753 - 54,753 Total Operating Revenues 3,578,106 5,539,223 9,117,329 Operating Expenses: Operations 3,074,399 52,043 3,126,442 Health claims and premiums - 4,841,447 4,841,447 Depreciation 932,215 - 932,215 Total Operating Expenses 4,006,614 4,893,490 8,900,104 Operating Income (Loss)(428,508) 645,733 217,225 Non-operating Revenues (Expenses): Intergovernmental revenues 28,406 - 28,406 Gain (loss) on disposal of assets 180,640 - 180,640 Investment income 2,689 10,924 13,613 Total Non-operating Revenues (Expenses) 211,735 10,924 222,659 Income (Loss) Before Transfers and Capital Contributions (216,773) 656,657 439,884 Transfers In 48,394 - 48,394 Capital contributions, net 350,031 - 350,031 Change in Net Position 181,652 656,657 838,309 Net Position - January 1 8,264,667 4,446,708 12,711,375 Net Position - December 31 8,446,319 5,103,365 13,549,684 Town of Vail, Colorado Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Position For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. F9 131 Heavy Health Equipment Insurance Fund Fund Total Cash Flows From Operating Activities: Cash received from other funds 3,523,352 4,748,922 8,272,274 Other cash receipts 83,344 789,157 872,501 Cash paid for goods and services (1,640,305) (5,138,992) (6,779,297) Cash paid to employees (1,184,331) - (1,184,331) Net Cash Provided (Used) by Operating Activities 782,060 399,087 1,181,147 Cash Flows From Non-Capital Financing Activities: Cash received from operating grants 28,406 - 28,406 Transfer from (to) other funds 48,394 - 48,394 Net Cash Provided (Used) by Non-Capital Financing Activities 76,800 - 76,800 Cash Flows From Capital and Related Financing Activities: Cash received from disposal of fixed assets 188,745 - 188,745 Acquisition and construction of capital assets (1,001,940) - (1,001,940) Net Cash Provided (Used) by Capital and Related Financing Activities (813,195) - (813,195) Cash Flows From Investing Activities: Interest on investments 2,689 10,924 13,613 Net Cash Provided (Used) by Investing Activities 2,689 10,924 13,613 Net Change in Cash and Cash Equivalents 48,354 410,011 458,365 Cash and Cash Equivalents - January 1 2,492,396 4,939,397 7,431,793 Cash and Cash Equivalents - December 31 2,540,750 5,349,408 7,890,158 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss)(428,508) 645,733 217,225 Adjustments: Depreciation 932,215 - 932,215 (Increase) decrease in accounts receivable 28,591 (1,144) 27,447 (Increase) decrease in inventory (64,365) - (64,365) Increase (decrease) in accounts payable 302,289 (245,502) 56,787 Increase (decrease) in accrued wages and benefits 11,838 - 11,838 Total Adjustments 1,210,568 (246,646) 963,922 Net Cash Provided (Used) by Operating Activities 782,060 399,087 1,181,147 Non-cash Investing, Capital and Financing Activities: Assets contributed by Capital Projects Fund 350,031 - 350,031 Town of Vail, Colorado Internal Service Funds Combining Statement of Cash Flows For the Year Ended December 31, 2022 The accompanying notes are an integral part of these financial statements. F10 132 2021 Variance Project Final Positive Number Project Name Budget Actual (Negative) Actual CBI021 Donovan Park Pavilion 10,000 8,781 1,219 1,326,759 CBI026 Welcome Center Maintenance 325,000 1,003 323,997 - CBI027 Public Works Remodel 1,827,316 1,570,279 257,037 16,977,304 CEP001 Fire Truck Purchase 2,746,300 841,573 1,904,727 - CEP002 Hybrid Bus Battery Replacement 165,000 - 165,000 - CEP004 Replace Buses 9,850,000 3,357 9,846,643 3,448,464 CEP005 Computer Hardware 75,000 68,589 6,411 136,364 CEP008 Parking Entry System 1,510,410 1,018,512 491,898 26,738 CEP010 Network Upgrades 70,000 64,388 5,612 115,228 CEP011 Document Imaging 50,000 7,640 42,360 36,056 CEP018 Web Page / E Commerce 80,000 79,354 646 89,025 CEP019 Public Safety System 36,000 4,287 31,713 45,517 CEP022 Audio Visual 156,750 109,013 47,737 84,129 CEP026 Fire Equipment 277,000 227,384 49,616 11,220 CEP030 Vehicle Expansion 494,500 354,318 140,182 - CEP031 Software Licensing 725,000 721,847 3,153 543,317 CEP033 Data Centers 155,000 129,299 25,701 136,289 CEP036 Business Systems 55,000 - 55,000 - CEP038 Police Equipment 289,628 211,333 78,295 201,864 CEP048 Electric Bus Station/Infrastructure 402,675 5,655 397,020 1,120,322 CEP049 Bus Transportation Mgmt. System - - - 747,197 CEP050 Public Safety IT Equipment 25,000 25,020 (20) - CEP051 Loading and Delivery Equipment 125,000 8,666 116,334 - CHP002 TOV Employee Rental Units 11,088,649 8,667,415 2,421,234 - CHP003 TOV Employee Rental Unit Maint 25,000 - 25,000 - CMP001 Timber Ridge Redevelopment Study 50,000 - 50,000 - CMP007 Traffic Impact Fee and Transportation Master Updates 381,785 108,681 273,104 23,215 CMT003 Bus Shelter Replacement 30,000 1,511 28,489 150,759 CMT004 Capital Street Maintenance 1,169,000 1,108,882 60,118 1,241,648 CMT005 Facility Capital 1,912,094 375,696 1,536,398 633,273 CMT007 Parking Structure Maintenance 1,161,429 739,172 422,257 579,325 CMT009 Energy Enhancements 127,294 78,382 48,912 162,554 CMT010 Underground Utilities 17,959 17,932 27 - CMT017 Slifer Plaza/Fountain/Storm Sewer 71,417 703 70,714 2,000 CMT018 Public Works Shop Building Maintenance 300,000 - 300,000 - CMT022 Seibert Fountain 27,888 806 27,082 32,112 CMT023 Snowmelt Boilers 1,367,129 262,858 1,104,271 132,781 COT002 Street Light Improvement Pgm 294,369 - 294,369 - COT004 Fiber Optic Connection 625,000 96,451 528,549 926 COT015 Red Sandstone Parking Garage 23,855 - 23,855 6,145 COT021 I-70 Fiber Optics 98,300 97,824 476 93,616 COT031 Civic Area Redevelopment 100,000 43,000 57,000 - COT032 Children's Garden of Learning Relocation 325,545 243,380 82,165 2,732,446 COT033 Pepi's Memorial 6,000 - 6,000 - COT034 West Vail and Town Center Roundabout Lighting Upgrade 50,000 - 50,000 - CSC010 Way Finding / Variable Message Signs 128,000 - 128,000 - CSC012 Village Streetscape 1,250,000 66,039 1,183,961 - CSC016 Guest Service Enhancements 24,307 - 24,307 2,255 CSC017 Pedestrian Safety Enhancements 25,000 8,788 16,212 - CSC023 Oversized Vehicle Parking Lot 2,100,000 9,660 2,090,340 - CSC024 Bighorn Turnaround 297,000 304,583 (7,583) - CSR007 Neighborhood Road Reconstruction 1,463,175 147,474 1,315,701 36,824 CSR008 Neighborhood Bridges 125,000 (42,162) 167,162 - CSR009 Frontage Road Enhacements with VVMC 3,387,820 1,516,912 1,870,908 4,112,179 CHF001 Buy-Down Housing - - - 11,262 CHF003 Vail INDEED - - - 929,562 CHF006 TOV Housing: Black Gore Creek Property - - - 2,144,791 CHF007 Resale: Chamonix 2373 Lower Traverse #A - - - 60,884 CHF010 RMV Opportunity Fee - - - 1,500,000 VRA018 Lionshead Parking Structure Landscape Renovations 30,291 - 30,291 - Total 47,533,885 19,314,285 28,219,600 39,634,350 2022 Town of Vail, Colorado Capital Projects Fund Schedule of Project Expenditures - Budget (GAAP Basis) and Actual For the Year Ended December 31, 2022 With Comparative Actual Amounts For the Year Ended December 31, 2021 The accompanying notes are an integral part of these financial statements. F11 133 2021 Variance Project Final Positive Number Project Name Budget Actual (Negative) Actual CCF001 Golf Clubhouse Redevelopment - - - 20,900 RFP005 Alpine Gardens Pledge 74,649 74,649 - 63,985 RFP006 Ford Park Management Plan 95,000 72,169 22,831 - RFP007 Alpine Gardens Capital Contribution - - - 20,000 RFP009 Ford Park Playground Improvements 200,000 6,639 193,361 - RFP019 Ford Park Landscape Enhancement 5,946 - 5,946 69,054 RFP020 Ford Park Master Plan 105,799 14,328 91,471 44,222 RFP021 Ford Park Amphitheater Solar Panels 100,000 - 100,000 - RFP022 Ford Park Betty Ford Way Pavers 1,200,000 1,083,493 116,507 - RFP023 Ford Park Lighting Control System 180,000 42,010 137,990 - RMG011 Solar Project 104,040 104,038 2 481,127 RMG012 Gore Creek Signage 225,000 38,350 186,650 48,750 RMG013 Gore Creek Promenade Rehabilitation 370,000 200 369,800 - RMT001 Recreation Path Maintenance 139,717 132,475 7,242 103,153 RMT002 Tree Maintenance 75,000 46,511 28,489 40,394 RMT005 Street Furniture 85,000 6,367 78,633 8,065 RMT006 Eagle River Watershed Council 42,000 42,000 - 36,000 RMT009 Park Capital Maintenance 215,000 207,106 7,894 111,859 RMT016 Tennis Center Improvements 175,510 3,387 172,123 3,467 RMT018 Dobson Ice Arena 614,756 10,106 604,650 11,605 RMT019 Gymnastics Center 282,789 11,444 271,345 4,804 RMT021 Golf Clubhouse 79,496 40,901 38,595 11,078 RMT022 Golf Rec Enhancement Account 883,365 - 883,365 - RMT024 Athletic Fields 239,226 - 239,226 - RMT025 Nature Center 383,522 - 383,522 - RMT027 Golf Course - Other Improvements 585,751 397,520 188,231 397,322 RMT028 Dowd Junction Repairs (Flood Repairs)799,155 32,029 767,126 - RMT030 East Vail Interchange Improvements 209,443 - 209,443 44,375 RMT035 Nature Center Capital Maint 93,855 - 93,855 - RMT036 Recreation Facility Maint 22,000 - 22,000 2,800 RMT037 Eagle Valley Land Trust 5,000 5,000 - 5,000 RMT039 Fire Free Five- TOV Buildings 200,000 154,383 45,617 - RPA001 Property Acquisition - (217) 217 5,196 RPA002 Booth Heights Open Space Acquisition 12,000,000 - 12,000,000 - RPI007 Streamtract Education/Mitigation 50,000 40,548 9,452 44,066 RPI009 Bighorn Park Improvements - - - 51,032 RPI010 Water Quality Infrastructure 2,016,541 111,477 1,905,064 88,575 RPI011 Streambank Restoration 125,000 52,017 72,983 128,783 RPI012 Private Streambank 150,000 31,792 118,208 - RPI013 Stephans Park Safety Improvements 35,821 - 35,821 44,905 RPI015 Turf Grass Reduction 199,862 182,254 17,608 2,713 RPI016 Sunbird Park Fountain Repairs 3,430 - 3,430 11,570 RPI017 Playground/Park Roofing Replacements - - - 27,300 RPI018 Kindel Park/Mill Creek streamtract improvements 149,862 - 149,862 25,138 RPI019 Mayors Park Capital Maintenance 50,000 39,579 10,421 - RPI020 Donovan Park Improvements 57,000 - 57,000 - RPI021 Library Landscape and Reading Area 100,000 - 100,000 - RPI022 Athletic Field Restroom/Storage Building 1,000,000 - 1,000,000 - RPT022 Adopt-a-Trail 17,500 17,500 - 4,590 RPT024 Gore Valley Trail Realignment - - - 78,944 RPT026 Gore Valley Trail Bridge Replacement 40,000 - 40,000 - RPT027 Gore Valley Trail Fence Replacement 50,000 - 50,000 - RPT028 Booth Lake Trailhead Parking Restroom 458,950 264,283 194,667 27,050 RPT029 Bike Safety 15,000 8,527 6,473 - RPT030 Bike Path Signage 35,000 11,983 23,017 - RPT031 Pedestrian Bridge Projects 400,000 166,849 233,151 938 RRT001 Public Art 428,960 53,793 375,167 12,073 RRT006 Public Art - Winterfest 64,746 4,861 59,885 30,073 RRT007 Public Art - Pete Seibert Memorial 12,692 500 12,192 4,458 RRT008 Nature Center Operations 106,187 106,187 - 80,897 RRT009 Public Art- Art Space 882,259 19,211 863,048 3,349 RRT010 Vail Holiday Lighting 185,000 28,514 156,486 - RSS006 Vail Transit Center Landscape 32,817 4,383 28,434 - RSS007 Village Landscape Enhancements 50,000 41,636 8,364 - RWL005 Wildfire Camera System- Capital 25,000 - 25,000 - Total 26,532,646 3,710,782 22,821,864 2,199,610 2022 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, 2022 With Comparative Actual Amounts For the Year Ended December 31, 2021 The accompanying notes are an integral part of these financial statements. F12 134 2021 Variance Project Final Positive Number Project Name Budget Actual (Negative) Actual CHF001 Buy-Down Housing 2,871,609 4,845 2,866,764 - CHF003 Vail INDEED 3,194,334 582,245 2,612,089 - CHF009 CDOT East Vail Parcel 2,650,000 - 2,650,000 - CHF010 RMV Opportunity Fee 2,000,000 - 2,000,000 - CHF011 Earnest Funding Placeholder 100,000 - 100,000 - CHF017 Pitkin Creek #12L- Resale 976,288 - 976,288 - CHF018 Resale: 2347B Upper Traverse Way 634,940 - 634,940 - CHF020 Vail Heights #10 548,000 - 548,000 - CHF021 North Trail Townhomes Unit D: Resale 307,000 - 307,000 - CHF022 Timber Ridge Redevelopment (Western Half)195,000 - 195,000 - Total 13,477,171 587,090 12,890,081 - Town of Vail, Colorado Housing Fund Schedule of Project Expenditures - Budget (GAAP Basis) and Actual For the Year Ended December 31, 2022 With Comparative Actual Amounts For the Year Ended December 31, 2021 2022 The accompanying notes are an integral part of these financial statements. F13 135 LOCAL HIGHWAY FINANCE REPORT 136 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 2022 This Information From The Records Of Town of Vail: Prepared By: Carlie Smith Phone:970-479-2119 A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway- Federal Highway Taxes Taxes User Taxes Administration 1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes 4. Minus amount used for mass transit 5. Remainder used for highway purposes AMOUNT AMOUNT A. Receipts from local sources:A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2)1,791,066 a. Motor Fuel (from Item I.A.5.)2. Maintenance:2,255,893 b. Motor Vehicle (from Item I.B.5.)3. Road and street services: c. Total (a.+b.)a. Traffic control operations 124,218 2. General fund appropriations 6,711,539 b. Snow and ice removal 1,597,583 3. Other local imposts (from page 2)1,131,313 c. Other 4. Miscellaneous local receipts (from page 2)- d. Total (a. through c.)1,721,801 5. Transfers from toll facilities 4. General administration & miscellaneous 486,254 6. Proceeds of sale of bonds and notes:5. Highway law enforcement and safety 1,899,181 a. Bonds - Original Issues 6. Total (1 through 5)8,154,195 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)7,842,852 b. Redemption B. Private Contributions 54,713 c. Total (a. + b.)- C.Receipts from State government 2. Notes: (from page 2)256,630 a. Interest D. Receipts from Federal Government b. Redemption (from page 2)- c. Total (a. + b.)- E.Total receipts (A.7 + B + C + D)8,154,195 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)8,154,195 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 - 8,154,195 8,154,195 - - Notes and Comments: FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) 1 ITEM ITEM (Show all entries at par) V. LOCAL ROAD AND STREET FUND BALANCE AND STREET PURPOSES 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 F14 137 STATE: Colorado YEAR ENDING (mm/yy): December 2022 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 1,131,313 g. Other Misc. Receipts 6.Total (1. through 5.)1,131,313 h. Other c. Total (a. + b.)1,131,313 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 228,525 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 28,105 d. Federal Transit Admin d. Other (Specify)- e. U.S. Corps of Engineers e. Other (Specify)f. Other Federal f. Total (a. through e.)28,105 g. Total (a. through f.)- 4. Total (1. + 2. + 3.f)256,630 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 127,503 127,503 c. Construction: (1). New Facilities - (2). Capacity Improvements - (3). System Preservation 1,663,563 1,663,563 (5). Total Construction (1) + (2) + (3) + (4)- 1,663,563 1,663,563 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5)- 1,791,066 1,791,066 (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 F15 138 UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE 139 2018 2019 2020 2021 2022 Pledged Revenues 5,124,621 5,467,621 6,236,307 6,055,710 5,613,818 Valuation Valuation Total Assessed Percent Allocable Allocable Levy Year Collection Year Valuation Change to Base to Increment 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 2019 2020 252,718,220 -0.2% 134,124,120 118,594,100 2020 2021 231,261,240 -8.5% 134,124,120 97,137,120 2021 2022 226,791,680 -1.9% 122,738,940 104,052,740 Tax Areas 2017/2018 2018/2019 2019/2020 2020/2021 2020/2021 202 51.9510 50.919 50.751 51.434 51.389 203 50.6480 49.726 49.542 50.199 50.265 204 60.0250 56.576 56.436 57.241 59.284 206 51.9510 50.919 50.751 51.434 51.389 207 86.9510 85.919 85.751 86.434 86.389 208 73.8260 72.794 72.626 73.309 73.264 216 - - - - - 225 - - - - - Vail Reinvestment Authority History of Pledged Revenues Town of Vail, Colorado Issuer's Annual Report Tables I - III December 31, 2022 TABLE I TABLE II Vail Reinvestment Authority History of Assessed Valuations TABLE III Mill Levies Affecting Property Owners within the Vail Reinvestment Authority Plan Area G1 140 2022 Preliminary Percentage of Assessed Total Assessed Taxpayer Name Valuation Valuation Diamondrock LLC 23,451,680 10.3% Arrrabelle at Vail Square LLC 22,910,000 10.1% Ritz-Carlton Development Co. Inc.10,162,370 4.5% Lion Vail LLC 6,156,810 2.7% Vail Corp 5,131,710 2.3% A Belle Vail Co LLC 3,088,580 1.4% Vail Marriott Resort & Spa 2,854,120 1.3% Lazier Lionshead LLC 2,783,160 1.2% Blue Ice 21 LLC 2,002,760 0.9% SOHO Development LLC 1,849,390 0.8% Landmark Commercial Dev. Co 1,649,530 0.7% Total 226,791,680 Total Percentage of Assessed Total Assessed Class Valuation Valuation Residential 147,441,100 65% Multifamily 520,990 0% Commercial 76,753,620 34% Vacant 1,564,910 1% State assessed 511,060 0% Total 226,791,680 100% TABLE V 2022 Preliminary Assessed Valuation of Classes of Property in the Authority Town of Vail, Colorado Issuer's Annual Report Tables IV and V December 31, 2022 TABLE IV Largest Taxpayers in the Authority G2 141 2018 2019 2020 2021 2022 Revenues: Other: Property tax 5,475,660 5,825,058 6,851,562 6,789,616 6,296,288 Interest on investments 4,045 3,793 21,328 31,824 11,585 Interest subsidy (Build America Bonds)169,059 164,876 100,098 - - Total Revenues 5,648,764 5,993,727 6,972,988 6,821,440 6,307,873 Expenditures: Economic Development: Administration 98,604 105,654 121,842 120,007 111,613 Fiscal agent fees 2,420 1,470 1,720 - - Treasurer's fees 164,416 174,754 205,547 203,691 188,891 Professional fees 2,895 1,445 1,353 - 215 Vail Square Metro District 524,143 526,106 736,681 765,730 694,055 Total Economic Development:792,478 809,429 1,067,143 1,089,428 994,774 Debt Service: Principal 535,000 555,000 7,715,000 618,000 612,000 Interest 526,753 501,433 327,914 72,316 64,168 Total Debt Service:1,061,753 1,056,433 8,042,914 690,316 676,168 Total Expenditures 1,854,231 1,865,862 9,110,057 1,779,744 1,670,942 Excess (Deficiency) of Revenues Over Expenditures 3,794,533 4,127,865 (2,137,069) 5,041,696 4,636,931 Other Financing Sources (Uses): Debt proceeds - - 6,386,000 - - Issuance costs - - (105,360) - - Transfers out (4,599,998) (3,804,281) (1,809,400) (7,410,723) (2,291,996) Total Other Financing Sources (Uses)(4,599,998) (3,804,281) 4,471,240 (7,410,723) (2,291,996) Net Change in Fund Balance (805,465) 323,584 2,334,171 (2,369,027) 2,344,935 Fund Balance - January 1 3,064,773 2,259,308 2,582,892 4,917,063 2,548,036 Fund Balance - December 31 2,259,308 2,582,892 4,917,063 2,548,036 4,892,971 Vail Reinvestment Authority Town of Vail, Colorado Issuer's Annual Report Table VI December 31, 2022 TABLE VI History of Revenues, Expenditures and Changes in Fund Balance G3 142 2022 2022 2023 Budget Actual Budget Revenues: Other: Property tax 6,301,000 6,296,288 6,311,000 Interest on investments 15,000 11,585 5,400 Total Revenues 6,316,000 6,307,873 6,316,400 Expenditures: Economic Development: Administration 111,800 111,613 112,000 Treasurer's fees 189,030 188,891 189,330 Professional fees 10,000 215 10,000 Vail Square Metro District 689,670 694,055 689,670 Total Economic Development:1,000,500 994,774 1,001,000 Debt Service: Principal 612,000 612,000 620,000 Interest 70,297 64,168 62,166 Total Debt Service:682,297 676,168 682,166 Total Expenditures 1,682,797 1,670,942 1,683,166 Excess (Deficiency) of Revenues over Expenditures 4,633,203 4,636,931 4,633,234 Other Financing Sources (Uses): Transfers out (2,302,146) (2,291,996) (2,550,000) Total Other Financing Sources (Uses)(2,302,146) (2,291,996) (2,550,000) Net Change in Fund Balance 2,331,057 2,344,935 2,083,234 Fund Balance - January 1 2,538,036 2,548,036 4,892,971 Fund Balance - December 31 4,869,093 4,892,971 6,976,205 Outstanding Issue Principal Vail Reinvestment Authority Tax Increment Revenue Bonds, Series 2010B 5,156,000 Total 5,156,000 Vail Reinvestment Authority TABLE VIII Outstanding Revenue Obligations Town of Vail, Colorado Issuer's Annual Report Tables VII and VIII December 31, 2022 TABLE VII 2022 Budget Summary and Actual Comparison / 2023 Budget G4 143 SINGLE AUDIT REPORTS and SCHEDULES 144 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 Matthew D. Miller, CPA 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, 2022, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements and have issued our report thereon dated June 13, 2023. 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 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 than 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 were not identified. 145 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 June 13, 2023 146 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 Matthew D. Miller, CPA 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 Opinion on Each Major Federal Program We have audited the compliance of the Town of Vail, Colorado (the “Town”) with the types of compliance requirements described in the OMB 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, 2022. 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. 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, 2022. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (“U.S. GAAS”); the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the audit 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”). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the Town and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the Town’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the Town’s federal programs. 147 INDEPENDENT AUDITOR’S REPORT To the Mayor and Members of Town Council Town of Vail, Colorado H4 Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Town’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with U.S. GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Town’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with U.S. GAAS, Government Auditing Standards, and the Uniform Guidance, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Town’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the Town’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances 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 the Town’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on 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 charged 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 were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 148 INDEPENDENT AUDITOR'S REPORT To the Mayor and Members of Town Council Town of Vail, Colorado H5 The purpose of this report on 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 June 13, 2023 149 Town of Vail, Colorado, Colorado SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2022 H6 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: CARES Act 5311 A/O Award ALN 20.509 Dollar threshold used to identify Type A from Type B programs: $750,000 Identified as low-risk auditee No Part II – Findings Related to Financial Statements Findings related to financial statements as required by Government Auditing Standards None noted Auditor-assigned reference number Not applicable Part III – Findings Related to Federal Awards Internal control findings None noted Compliance findings None noted Questioned costs None noted Auditor-assigned reference number Not appliable 150 Town of Vail, Colorado SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2022 H7 Note: There were no findings for the fiscal year ended December 31, 2021. 151 Pass-through Assistance Entity Listing Identifying Federal Program Title Number Number Expenditures National Endowment for the Arts: Passed through Colorado Department of Education: LSTA American Rescue Plan Act 45.310 6,000$ Total - National Endowment for the Arts 6,000 Department of Transportation: Passed through Federal Transit Administration (FTA): CARES Act 5311 A/O Award 20.509 1,789,613 Total - Department of Transportation 1,789,613 Department of Justice: Rural Violent Crime Reduction Initiative for Law Enforcement Agencies 16.039 18,200 Passed through Colorado Department of Public Safety: Bulletproof Vest Grant 16.607 n/a 2,063 Total - Department of Justice 20,263 TOTALS 1,815,876$ Note 1. Basis of Presentation: Note 2. Determining the Value of Non-cash Awards Expended: Note 3. Indirect Facilities and Administration costs The Town had no non-cash awards expended during 2022. 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. Notes to the Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2022 Town of Vail, Colorado Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2022 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. H8 152 2022 FINANCIAL STATEMENTS & AUDIT REPORT FINANCE | June 20, 2023 15 3 PRESENTERS Carlie Smith, C.P.A. Finance Director Michael N. Jenkins, C.A., C.P.A. Partner, McMahan & Associates, LLC Town of Vail   |   Finance   |   6/20/2023 15 4 Town of Vail   |   Finance   |   6/20/2023 2022 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 $402.6M $228.6M net investment in capital assets $3.0M TABOR reserves; $39.3K restricted; $171.0M unrestricted STATEMENT OF ACTIVITIES $33.4M increase in net position $113.2M revenue; $25.6M program specific and $87.6M general revenue $79.9M expenses 15 5 Town of Vail   |   Finance   |   6/20/2023 2022 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 Housing 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 Residences at Main Vail Fund 15 6 Town of Vail   |   Finance   |   6/20/2023 2022 FINANCIAL STATEMENTS | Fund Statements Final Budget 2022 Actual Better (Worse)% Revenue $59.4M $58.6M $800K 1.3% Expenditures (54.1)M (49.6)M 4.5M 8.3% Net Change $5.3M $9.0M $4.4M N/A Revenue‐Exceeded budget by $800K; Charges for Services $724K; Taxes  $318K;  Increases were partially offset by timing of ARP grant use Expenditures –Savings in general operations $4.5M; salaries and benefits savings  due to vacancies $687K; planning projects delayed $463K; Event savings $601K;  operating supplies $971K; HEF internal transfer $368K; ARP grant use delayed  $1.2M; Chapel Contribution timing $250K Fund Balance ‐$53.4 million compared with target $20.5 million or 35% of revenue General Fund Favorable to Budget by $9.0M 15 7 Town of Vail   |   Finance   |   6/20/2023 2022 FINANCIAL STATEMENTS | Fund Statements Capital Projects Fund Managed $19.6M in Projects Final Budget 2022 Actual Better (Worse) Revenue $28.5M $22.3M (6.2)M Capital Expenditures (47.5)M (19.3)M 28.2M Transfers  (out) (14.0)M (9.1)M (4.9)M Debt Service $(1.2)M $(1.2)M ‐ Net Change $(34.2)M $(7.3)M $26.9M Revenue –Tax collections exceeded budget by $1.6M but was offset by the timing of  grants for capital projects/bus purchases Expenditures – Variance for  approved projects not yet completed and carried over to 2022  $23.2M;  $5.0M in project savings during 2022 Transfers –Variance due to project timing for Residences at Main Vail Fund Balance ‐$52.6M 15 8 Town of Vail   |   Finance   |   6/20/2023 2022 FINANCIAL STATEMENTS | Fund Statements RETT Fund Managed $3.7M in Projects; $3.8M Ops Final Budget 2022 Actual Better (Worse) Revenue $10.7M $10.1M $(600)K Expenditures (32.1)M (8.3)M 23.8M Net Change $(21.4)M $1.8M $23.2M Revenue – Revenue variance due to grant timing and project reimbursement  timing  Expenditures –Variance due to approved projects not yet completed and carried  over to 2022 $21.7M;  Operating savings of $300K; Project savings of $1.2M Fund Balance ‐$29.9M 15 9 Town of Vail   |   Finance   |   6/20/2023 2022 FINANCIAL STATEMENTS | Fund Statements  ‐  20  40  60  80  100  120  140  160 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Mi l l i o n s TOV  Reserves 5 Year  History & 5 Year  Projection All Other Housing Fund RETT Fund Capital Projects Fund General Fund Reserve Min 16 0 Town of Vail   |   Finance   |   6/20/2023 |   Finance   |   4/19/2016 2022 FINANCIAL STATEMENTS 16 1 McMahan and Associates, L.L.C. Michael Jenkins, CA, CPA, CGMA Partner Town  of Vail 2022 Audit Presentation – June 20, 2023 16 2 Town  of Vail 2022 Audit Presentation – June 20, 2023 Audit Results: Unmodified (“clean”) audit opinion on financial statements + Unmodified (“clean”) audit opinions on compliance & reporting for Town’s use of Federal-source funds = Highest level of auditor assurance 16 3 Town  of Vail 2022 Audit Presentation – June 20, 2023 Financial Results: Government-wide (C1) Highly liquid: $175.0M in cash & investments; provides flexibility Strong asset base: $267.2M of capital assets (net); 2022 additions include completion of new Public Works / Streets facility, 11 housing properties for Town employee rental units, parking structure improvements, completion of new Lionshead roundabout, and Gore Creek water quality improvements 16 4 Town  of Vail 2022 Audit Presentation – June 20, 2023 Financial Results: Government-wide (C1) All long-term debt has dedicated revenues: In 2021, Town issued $22.2M of COPs for workforce housing + $15.9M capital lease for public works facility. 2022 saw net reduction of $1.3M due to scheduled repayments. Solid equity position: Assets exceed liabilities by $402.6M at 12/31/22. $171.0M (42%) is unrestricted & available for operations $228.6M (57%) is net “equity” in capital assets 16 5 Town  of Vail 2022 Audit Presentation – June 20, 2023 Financial Results: Government-wide (C2) Total net position increased $33.4M for 2022 (9% increase over PY net position): Governmental net position grew $31.2M Sales & use taxes up $10.2M (25%) Lodging taxes up $1.2M (28%) Business-type activities (Timber Ridge + Dispatch + Residences at Main Vail) generated aggregate surplus of $2.2M 16 6 Town  of Vail 2022 Audit Presentation – June 20, 2023 Financial Results: Fund level Strong financial results: Total governmental fund balances increased $21.1M in 2022 Strong fund balances: Fund balances of all governmental funds as % of total CY expenditures is a measure of financial strength: 2022 metric = 187% (up from 145% for 2021) Provides ability to fulfill future plans and stability needed due to significance of variable revenue sources (sales & lodging taxes) to Town’s operations Budgetary control: All funds performed well relative to and within adopted budgets. 16 7 Town  of Vail 2022 Audit Presentation – June 20, 2023 The Big Picture: Town came through a challenging year with respectable financial results: Revenues grew, due to sales tax / lodging taxes + Fund balances remained healthy, despite demands, and all funds within approved budgets + Accounting policies & practices are conservative, consistent & compliant. Questions? 16 8 AGENDA ITEM NO. 4.1 Item Cover Page DATE:June 20, 2023 SUBMITTED BY:Jamie Leaman-Miller, Community Development ITEM TYPE:DRB/PEC Update AGENDA SECTION:DRB / PEC (5 min.) SUBJECT:DRB/PEC Update SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: DRB Results 6-7-23.pdf 169 Present:Kathryn Middleton Rys Olsen Herbert Roth Kit Austin Erin Iba 1.Virtual Meeting Link Register to attend Design Review Board Meetings. Once registered, you will receive a confirmation email containing information about joining this webinar. 2.Call to Order 3.Main Agenda Final review of an exterior alteration (roof/siding/decks/lights) Address/ Legal Description: 1816 Sunburst Drive/Lot 1, Vail Valley Filing 3 Planner: Heather Knight Applicant Name: John & Helen Jo Cahalin, represented by TAB Associates 3.1 DRB23-0063 - Cahalin Residence Final review of new construction (duplex) Address/ Legal Description: 2995 Basingdale Boulevard/Lot 11, Block 6, Vail Intermountain Development Subdivision Planner: Jamie Leaman-Miller Applicant Name: Jaguar Construction, represented by TAB Associates 3.2 DRB23-0108 - Jaguar Construction Conditions: 1. Prior to building permit approval, the applicant shall submit an updated survey per the submittal requirements including property boundaries. 2. Prior to building permit approval, the applicant shall provide revised elevations regarding the stone transition with the siding on the east and west elevations. Final review of an addition (main entry/lower level/deck/windows/paint) Address/ Legal Description: 1500 Lions Ridge Loop/Lot 22, Dauphinais-Mosley Subdivision Filing 1 Planner: Jamie Leaman-Miller 3.3 DRB23-0061 - SJZ LLC Design Review Board Minutes Wednesday, June 7, 2023 2:00 PM Vail Town Council Chambers DRB23-0063_Presentation.pdf DRB23-0063_Conceptual_Dec22.pdf Rys Olsen made a motion to Approve with the findings that the application meets 14-10-2 and 14-10-5; Herbert Roth seconded the motion Passed (5 - 0). DRB23-0108 Plans.pdf Rys Olsen made a motion to Approve with conditions and the findings that the application meets 14-10- 2,14-10-3, and 14-10-5; Kathryn Middleton seconded the motion Passed (5 - 0). 1 Design Review Board Meeting Minutes of June 7, 2023 170 Applicant Name: SJZ, represented by Current Architects Final review of a tree removal Address/ Legal Description: 635 Lionshead Place/Lot 8, Block 1, Vail Lionshead Filing 3 Planner: Jamie Leaman-Miller Applicant Name: Lions Square Lodge North, represented by Colorado Land Art Studio 3.4 DRB23-0134 - Lions Square Lodge North Final review of an exterior alteration (stucco/entry/railing) Address/ Legal Description: 2317 Garmisch Drive/Lot 20, Block H, Vail Das Schone Filing 2 Planner: Jamie Leaman-Miller Applicant Name: Brian LeMay 3.5 DRB23-0147 - LeMay Residence Final review of an exterior alteration (re-roof) Address/ Legal Description: 1100 North Frontage Road West/Simba Run Subdivision Planner: Greg Roy Applicant Name: Simba Run Condominium Association 3.6 DRB23-0143 - Simba Run Final review of a change to approved plans (material/lighting) Address/ Legal Description: 1328 Vail Valley Drive West/Lot 22, Block 3, Vail Valley Filing 1 Planner: Greg Roy Applicant Name: NYCWEST & Kochman Family Revocable Trust, represented by Berglund Architects 3.7 DRB22-0380.002 - NYCWEST/Kochman Residence Final review of an exterior alteration (materials) Address/ Legal Description: 3140 Booth Falls Court A, B/Lot 5, Block 2, Vail Village Filing 12 3.8 DRB22-0464.001 - Vickers/Deep Powder Hut DRB23-0061 Plans.pdf DRB23-0061 Documents.pdf Kathryn Middleton made a motion to Approve with the findings that the application meets 14-10-2,14-10- 5, and 14-10-8; Herbert Roth seconded the motion Passed (5 - 0). DRB23-0134 Plans.pdf Rys Olsen made a motion to Approve with the findings that the application meets 14-10-3; Kathryn Middleton seconded the motion Passed (5 - 0). DRB23-0147 Plans.pdf DRB23-0147 Photos.pdf Kathryn Middleton made a motion to Table to a future meeting; Rys Olsen seconded the motion Passed (5 - 0). DRB23-0143 Plans.pdf Herbert Roth made a motion to Approve with the findings that the application meets 14-10-5; Rys Olsen seconded the motion Passed (5 - 0). DRB22-0380.002 Plans.pdf Rys Olsen made a motion to Approve with the findings that the application meets 14-10-2 and 14-10-5; Kathryn Middleton seconded the motion Passed (5 - 0). 2 Design Review Board Meeting Minutes of June 7, 2023 171 Planner: Greg Roy Applicant Name: Becki Vickers Final review of a change to approved plans (roof) Address/ Legal Description: 4320 Glen Falls Lane/Lot 12, Forest Glen Subdivision Planner: Greg Roy Applicant Name: Daniel Virnich 3.9 DRB22-0070.001 - Virnich Residence 4.Staff Approvals Final review of a change to approved plans (landscaping/patio/electrical) Address/ Legal Description: 80 West Meadow Drive/Lot 1, Vail Village Filing 2 4.1 DRB20-0040.004 - Colorado Family Real Estate Planner: Jonathan Spence Applicant Name: Colorado Family Real Estate, represented by KH Webb Architects Final review of a change to approved plans (deck) Address/ Legal Description: 1720 Sunburst Drive A1/Lot 1, Sunburst Filing 3 4.2 DRB21-0455.003 - VGT LLC Planner: Jamie Leaman-Miller Applicant Name: VGT, represented by Peak Architecture Final review of a change to approved plans (decks) Address/ Legal Description: 1101 Vail View Drive A, B, C/Lot 11, Casolar Vail II 4.3 DRB22-0212.001 - Baker/Rocky Mtn Juniper/Russell Residences Planner: Jonathan Spence Applicant Name: Michael Baker, Brendan McCarthy & William Russell, represented by Pierce Austin Architects Final review of a change to approved plans (tree removal) Address/ Legal Description: 4792 Meadow Lane/Lot 5, Block 7, Bighorn Subdivision 5th Addition 4.4 DRB22-0331.001 - Bighorn 4792 LP Planner: Jonathan Spence Applicant Name: Bighorn 4792, represented by Vail Valley Tree Service Final review of a change to approved plans (tree removal) Address/ Legal Description: 4792 Meadow Lane/Lot 5, Block 7, Bighorn Subdivision 5th Addition 4.5 DRB22-0331.002 - Bighorn 4792 LP Planner: Jonathan Spence DRB22-0464.001 Plans.pdf Kathryn Middleton made a motion to Approve with the findings that the application meets 14-10-2; Rys Olsen seconded the motion Passed (5 - 0). DRB22-0070.001 Plans.pdf Kathryn Middleton made a motion to Approve with the findings that the application meets 14-10-2, 14-10- 4, and 14-10-5; Herbert Roth seconded the motion Passed (5 - 0). 3 Design Review Board Meeting Minutes of June 7, 2023 172 Applicant Name: Bighorn 4792, represented by Vail Valley Tree Service Final review of a change to approved plans (deck) Address/ Legal Description: 1881 Lions Ridge Loop 8D/Lot 1, Block 3, Lion's Ridge Subdivision Filing 3 4.6 DRB22-0463.001 - Penzell Residence Planner: Heather Knight Applicant Name: Peter Penzell, represented by Jason Taylor Construction Final review of a change to approved plans (windows/door) Address/ Legal Description: 4504 Meadow Drive/Timber Falls Condominiums 4.7 DRB22-0476.002 - Timber Falls Condos Planner: Jamie Leaman-Miller Applicant Name: Timber Falls Condos, represented by Pierce Austin Architects Final review of a change to approved plans (vent) Address/ Legal Description: 103 Willow Place 101/Lot 4, Block 6, Vail Village Filing 1 4.8 DRB23-0001.001 - Lemnah Residence Planner: Heather Knight Applicant Name: Trisha Lemnah, represented by Lokal Homes Final review of an exterior alteration (window/door) Address/ Legal Description: 1806 West Gore Creek Drive/Lot 34, Vail Village West Filing 1 4.9 DRB23-0120 - Fair Residence Planner: Heather Knight Applicant Name: LeeAn Fair Final review of an exterior alteration (utility fan) Address/ Legal Description: 231 Gore Creek Drive/Lot A, Block 5B, Vail Village Filing 1 4.10 DRB23-0130 - Pepi's Restaurant Planner: Heather Knight Applicant Name: Gasthof Gramshammer, represented by R&H Mechanical Final review of a tree removal Address/ Legal Description: 636 Forest Road A/Lot 6, Block 1, Vail Village Filing 6 4.11 DRB23-0131 - McPherson Residence Planner: Heather Knight Applicant Name: Mark McPherson, represented by Old Growth Tree Service Final review of an exterior alteration (windows) Address/ Legal Description: 1390 Westhaven Drive/Cascade Village - Cascades on Gore Creek 4.12 DRB23-0138 - Light Residence Planner: Jonathan Spence Applicant Name: Corey & Jane Light, represented by Schuster Construction Final review of an exterior alteration (re-roof) Address/ Legal Description: 2792 Kinnikinnick Road 8/Lot 8, Innsbruck Meadows Subdivision 4.13 DRB23-0140 - Reid Residence 4 Design Review Board Meeting Minutes of June 7, 2023 173 Planner: Jonathan Spence Applicant Name: James & Beth Reid, represented by Capital Roofing & Restoration Final review of an exterior alteration (re-roof) Address/ Legal Description: 174 Gore Creek Drive/Lot 1, Lodge Subdivision 4.14 DRB23-0141 - Lodge at Vail Planner: Greg Roy Applicant Name: Christopher McRoy Final review of an exterior alteration (windows) Address/ Legal Description: 635 North Frontage Road West G2/Lot 9, Block 2, Vail Potato Patch Filing 1 4.15 DRB23-0148 - Laycob Residence Planner: Jonathan Spence Applicant Name: Laycob Mtn Properties, represented by Timberlee & Co Final review of a tree removal Address/ Legal Description: 193 Beaver Dam Road/Lot 38, Block 7, Vail Village Filing 1 4.16 DRB23-0149 - Marshall Residence Planner: Jonathan Spence Applicant Name: Hines Marshall, represented by Old Growth Tree Service Final review of an exterior alteration (window) Address/ Legal Description: 4842 Meadow Lane/Lot 10, Block 7, Bighorn Subdivision 5th Addition 4.17 DRB23-0151 - Morris Residence Planner: Jonathan Spence Applicant Name: John & Lisa Morris, represented by Gillette Final review of a sign application Address/ Legal Description: 2077 North Frontage Road West 39/Lot 39, Buffehr Creek Resubdivision 4.18 DRB23-0153 - Pure Dental Planner: Jamie Leaman-Miller Applicant Name: Pure Dental Final review of an exterior alteration (garage) Address/ Legal Description: 4926 Juniper Lane/Lot 5, Block 5, Bighorn Subdivision 5th Addition 4.19 DRB23-0155 - Iverson Residence Planner: Jonathan Spence Applicant Name: Ross & Jennie Iverson, represented by Sipes Architects Final review of a tree removal Address/ Legal Description: 99, 100 Vail Road/Lot35, Block 7, Vail Village Filing 1 4.20 DRB23-0156 - Ness Residence Planner: Jonathan Spence Applicant Name: Kevin & Stephanie Ness, represented by Old Growth Tree Service 5.Staff Denials 5 Design Review Board Meeting Minutes of June 7, 2023 174 6.Adjournment Herbert Roth made a motion to Adjourn ; Kathryn Middleton seconded the motion Passed (5 - 0). 6 Design Review Board Meeting Minutes of June 7, 2023 175 AGENDA ITEM NO. 5.1 Item Cover Page DATE:June 20, 2023 SUBMITTED BY:Stephanie Bibbens, Public Works ITEM TYPE:Information Update AGENDA SECTION:Information Update SUBJECT:May 1, 2023 AIPP Meeting Minutes SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: May 1, 2023 - Minutes.pdf 176 Public Notice - Art in Public Places Board Meeting Minutes Monday, May 1, 2023 AIPP Board members present: Tracy Gordon, Susanne Graf, Kathy Langenwalter, Lindsea Stowe Others present: Molly Eppard - AIPP Coordinator AIPP Board Members absent: Courtney St. John 1. Call to order. 2. No citizen input. 3. Main Agenda: 3.1. Approval of April 3, 2023 minutes 3.2 Mural proposal review for the GoPro Mountain Games, Morgan Kelleher – Vail Valley Foundation. • Molly reviews proposed wall for the Vail Valley Foundation (VVF) collaboration of a mural by a Coloradan artist located in the Vail Parking Structure. The mural is being funded by the VVF. • Morgan reviews previous work and murals by local artist Amy Dose. • Morgan reiterates the mission to create art encompassing the ideals of the GoPro Mountain Games in alignment with Vail’s messaging. • This is the first proposal of the composition of the mural that will encompass summer in Vail. The final mural will have more nature detail and activity than what is represented in the watercolor sketch. • Mural will be painted live at the Mountain Games June 8 – 11. • The Board will entertain text within the mural if the font compliments the composition - Athletes, Art, Mountains, Music. This tag line is fine if logos are not included with details of it being a sponsored event. • The VVF is likely going to use the ad vitrine within the wall of the parking structure which will be placement for Amy’s bio and more details about the GoPro connection. • Amy is to present a final proposed mural composition by May 18 for review. 3.3 Wood carving review of remaining tree on Vail Golf Course, Mike Ortiz - Vail Recreation District • Mike informs the Board of the intentional poisoning of a large mature Austrian pine tree adjacent to the wedding pond on the Vail Golf Course. • The VRD would like to have the remaining trunk of the tree carved as it is still very visible given the activity on the nearby “wedding island” in the pond. • The Board reviews the work and sketches of Joe Srholez https://joesrholez.com/ provided by the VRD. • The carving is being paid for by the VRD. • The Board recommends keeping it simpler, so the details do not get lost in the materials and carving. • Mike appreciates the AIPP Board feedback and will bring it back to the VRD Board. 3.4 Pilot Artist in Residency Program, Squire Broel, artist • The Art Board discusses programs, marketing, social media, schedule, activations, sculpture display, and potential commission for the public collection with artist Squire Broel who will serve as the guest artist for this pilot residency. • The Board reviews the defined focused smaller artist in residency program and the community engagement, connection of sculpture in nature, and the intentionality of public art. 177 • The Board discusses possible locations where Squire can post during the 3-week residency, including a pop-up tent, the picnic shelter, and Molly has a call with the BFAG about their rooftop next week. • Squire walks through the Community Art Project concept – art inspired by nature and architectural windows. This project will help be facilitated by Alpine Arts Center. • The Board discusses the display of a sculpture also in proximity of the art studio. 4. Coordinator Updates • The 10th Mt. Division site landscaping design is being postponed contingent on Council approval. • Bronze sculpture cleaning to take place at end of May. • Next meetings June 5, July 10, August 7, Sept 11. • Molly to give St. Anton delegation tour on June 6. • Weekly Wednesday Art Walks July 5 – August 30 • Layout for Strategic Plan – limited graphic design with few images. • Layout for Guidelines – only a word document/pdf without graphics and images. • The Board remarks that the language about replacing the existing structure in Ford Park for the updated visual art studio was not properly reflected in the Engage Vail Ford Park Survey. In the survey it read: “Construction of a new building to house an artist in residence facility.” The Board remarks it was not clear and sounded like a housing complex is being proposed for artists and musicians versus a small working artist studio. • The Board discusses possible base suggestions from Chevo Studio for the Male Baseball Player sculpture scheduled to be installed in proximity to the playing fields in Ford Park. 5. Adjournment 178 AGENDA ITEM NO. 5.2 Item Cover Page DATE:June 20, 2023 SUBMITTED BY:Stephanie Bibbens, Town Manager ITEM TYPE:Information Update AGENDA SECTION:Information Update SUBJECT:May 3, 2023 CSE Meeting Minutes SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: CSE_Minutes_5.1.23_-_Approved.pdf 179 Present:Nick Conover Marco Valenti Alison Wadey Douglas Smith Absent:Kim Newbury Rediker 1.Event Previews 1.a 60 Day Event Preview 2.Information Update 2.a Vail Lacrosse Tournament Operations Partner Update An introduction was made to Steve Sepeta from Adrenaline Lacrosse, the new operational partner of the Vail Lacrosse Tournament. 3.New Business 3.a Vail Tourism Organization Discussion with Carl Ribaudo Presentation from Carl Ribaudo with feedback provided by the CSE. Time: 10 Min 3.b Music Critics Association of North America Funding Request Parker Owens from Bravo Vail presented to the CSE the opportunity to bring journalists from the Music Critics Association of North America to Vail to experience, and write about the Bravo! Festival and specifically, the Philadelphia Philharmonic performances. 4.Meeting Reports Staff update on recent meetings from the Town Council, VLMDAC, VEAC, etc. 5.Approval of the Minutes 5.a Approval of the meeting minutes from April 5, 2023. 6.Adjournment Committee on Special Events Minutes Wednesday, May 3, 2023 8:30 AM Vail Town Council Chambers May CSE 60 Day Preview Staff Report.pdf Marco Valenti made a motion to Release initial funding for the events as presented, and to update the funding agreement for the Vail Lacrosse Tournament to reflect the new partnership with Adrenaline Lacrosse.; Nick Conover seconded the motion Passed (4 - 0). MCANA Funding Request Marco Valenti made a motion to Award $16,000 funding request for MCANA Bravo Vail programming.; Douglas Smith seconded the motion Passed (4 - 0). April 5 CSE Meeting Minutes Marco Valenti made a motion to Approve the meeting minutes from the April 5, CSE meeting. ; Douglas Smith seconded the motion Passed (4 - 0). 1 Committee on Special Events Meeting Minutes of May 3, 2023 180 AGENDA ITEM NO. 5.3 Item Cover Page DATE:June 20, 2023 SUBMITTED BY:Missy Johnson, Housing ITEM TYPE:Information Update AGENDA SECTION:Information Update SUBJECT:May 23, 2023 VLHA Meeting Minutes SUGGESTED ACTION: VAIL TOWN COUNCIL AGENDA ITEM REPORT ATTACHMENTS: 2023-05-23 VLHA Minutes.pdf 181 Vail Local Housing Authority Minutes Tuesday, May 23, 2023 3:00 PM Town Council Chambers PRESENT ABSENT Steve Lindstrom Craig Denton Dan Godec – via zoom part of meeting Kristin Williams James Wilkins – via zoom STAFF George Ruther, Housing Director – via zoom Martha Anderson, Housing Coordinator – via zoom Missy Johnson, Housing Coordinator 1. Call to Order 1. 1 Call to Order Call to order at 3:09 p.m. with a quorum. 2. Citizen Participation 2.1 Citizen Participation None 3. Approval of Minutes 3.1 VLHA April 25, 2023 Minutes MOTION: Godec SECOND: Wilkins PASSED: (5- 0) 4. Main Agenda 4.1 Swearing in of Current Authority Member Kristin Kenney Williams to a Full Term on the Vail Local Housing Authority Expiring May 31, 2028. Presenter(s): Stephanie Bibbens, Town Clerk Stephanie Bibbens, Town Clerk, joined to swear in member Kristin Kenney Williams. 4.2 Concerns Regarding Allowed Capital Improvements at Vail Commons Presenter(s): David Yurick, Vail Commons Owner; Steph Samuelson, Vail Common Owner; and Erika Desseauve, Vail Commons HOA President Erika Desseauve, David Yurick and Steph Samuelson joined the Authority to speak about their experiences with the approval or disapproval of capital improvements that go towards the maximum resale value. Vail Local Housing Authority Meeting Minutes of May 23, 2023 182 Desseauve, the HOA president, spoke to the desire for clarity and to ensure and fair and consistent evaluations of capital improvements while referring to the 1996 exhibit B for Vail Commons. She referred to boilers, windows and walls as permanent, functional fixtures and non -decorative improvements to the EHU; but in her opinion, the document lacks specificity. She also refers to Resolution 21 of 2007 as amendment to exhibit B to align with the Town's objectives to promote and enhance the availability and quality of employee housing. Desseauve continued the discussion, with input that Vail Commons units are now more than twenty years old and when owners invest it ensures the longevity and affordability of the EHUs. Acknowledging that all permitted capital improvements and costs to be approved by Town Staff and she used the example of window replacement and boiler replacement and requests that the TOV consider adding certain upgrades and maintenance as approved capital improvements that go towards the maximum resale value. David Yurick, owner at Vail Commons, spoke about a $16,000 boiler and asked for considerations in adding this type of cost towards the maximum resale value. Stephanie Samuelson, resident at Vail Commons referenced the carbon monoxide levels and their experience with the need to replace the boiler. They feel fortunate and able to replace it but hope for more clarity within the Vail Commons Attachment B for capital improvements. Lindstrom reminded the group that Vail Local Housing Authority acts as an advisory group to the Vail Town Council and conversation ensued around Exhibit B of the Deed Restriction and the differentiating between improvement vs. maintenance and taking a closer look at what is defined as a capital improvement. The authority agrees that next steps would be to work with Town Staff and the Town Attorney to further specify the capital improvements list within the deed restrictions. Wilkins suggests peeling back the deed restriction to identify the potentially more clear-cut process or procedure when a property is trading hands. Ruther agrees that the capital improvements could use improvement and it would be helpful if there was greater clarity. The Housing Authority will be asked by Town Council to make a recommendation with possible changes towards the policies and implementation and practices around allowable capital improvements, not just for Vail Commons but other properties The authority agrees that we hope to provide greater clarity and specificity for these deed restrictions in the future and look to have these Vail Commons owners involved in the conversation moving forward. 4.3 165 Railroad Avenue Presenter(s): George Ruther, Housing Director Ruther referred to the project description packet from Rob Hahn for a deed restricted project in Minturn, CO, for the VLHA to consider as a potential redevelopment opportunity. This space was initially proposed as a multi- use space for the upper two levels as residential space. The question posed is would the VLHA like to purchase deed restrictions on these properties. The terms of Vail InDEED do not permit the Authority to purchase deed restrictions outside of Town of Vail but the Authority may make a recommendation to the Town Council, much like was done with 6 West in Edwards, CO. Rob Hahn was present at the meeting, owner of 164 Railroad Avenue, who would retain ownership and the intent is to keep the first floor as offices and then deed restrict the top two floors as condominium. Initially, his company would rent the entire two floors as a master lease. The Town would hold the deed restrictions. It is a natural location with Eco Transit running directly in front of the building. Discussion ensued among the Authority that a deed Vail Local Housing Authority Meeting Minutes of May 23, 2023 183 restriction exists in perpetuity and curiosities about the intent of the redevelopment of the building to be for employee housing. The authority agrees that it is a good opportunity with interest in a site visit. 4.4 Voting in of new Vail Local Housing Authority Chairman Presenter(s): Steve Lindstrom, Chairman Kristen Kenny Williams moved to vote in Steve Lindstrom as a chairman for the Vail Local Housing Authority MOTION: Williams SECOND: Denton PASSED: (4- 0) 4.5 Vail InDEED Summary and GIS Mapping Presenter(s): Missy Johnson, Housing Coordinator Johnson reviewed the Vail InDEED report to date and continue to show the Authority where they can find the report at vailindeed.com at a link at the bottom of the page. The detailed report is a great snapshot for quick access dated back to 2017 to current, even on a phone while in a meeting. This report will be updated each time we secure a Vail InDEED restriction. Also reviewed was the vailgov.com/gis section of the Town of Vail website where anyone can view an interactive map with layers and ultimately provide details about the type of deed restriction, documentation, property record card from Eagle County Assessor's site and more. The housing department will provide additional website/marketing related updates in the future and look to have tools and one-sheets readily available for the Vail Board of Realtors and other third party groups. 4.6 EHU Maximum Resale Valuation Calculation Presenter(s): Missy Johnson, Housing Coordinator and Martha Anderson, Housing Coordinator The Housing Staff presented an overview of the review process when an owner requests their Maximum Resale Value and any capital improvements that are approved and applicable to their maximum resale value. Anderson proceeded to review the step by step process but reminder that each deed restriction varies although the example is based on the master Vail Commons deed restriction. Anderson explained the process from checking on the property ownership, specific deed restriction and digging into the regulation, resolutions and exhibits to checking on any previous work on the property and similar capital improvements, there is background work done initially. Next, the team member will review proof of payment, receipts and project information from owners. Anderson referred to the Maximum Sale Price section of the deed restriction, followed by the permitted percentage of capital improvements for specified period of time (typically a 10- year period). Additionally, Exhibit B is reviewed and likely a resolution pertaining to capital improvements lists. The housing staff sees this as an opportunity to provide foundation for many more in-depth conversations in the future. For as many intended consequences from the deed restrictions, there are as many unintended consequences. Anderson further highlighted areas within Resolution 21 of 2007 that allows for an expanded list of capital improvements and the process followed upon receiving description and or receipts from the owner. North Trail Townhomes is an example of another type of deed restriction that varies. The Housing Staff showed a high-level snapshot of the process so potential issues so we can come back in a future date to explore 1) what is the policy objective we are trying to achieve? and 2) does the Vail Local Housing Authority Meeting Minutes of May 23, 2023 184 implementation strategy within the deed restriction achieve the policy direction that was provided and aim to remove any ambiguities? The intent was to maintain affordability within the deed restricted homes so types of improvements like $6,500 kitchen countertops and in- floor radiant heat don't necessarily align and nor do inflated labor charges from trades or owners. An additional consideration when we talk about policy is to consider the 3% guaranteed resale value of a home and even though it doesn't have any windows or appliances. With the Town's recent purchase of a North Trail Townhome, and the investment of just over $100,000 because of the level of deferred maintenance. The Council is looking to the Authority to make some recommendations because while there was always an intent to allow owners to maintain their homes, but the topic of not maintaining the home needs to be explored. The Housing staff will come back with more information and many conversations prior to making a recommendations to Town Council. 5. Matters from the Chairman and Authority Members 5.1 Matters from the Chairman and Authority Members Presenter(s): Steve Lindstrom, VLHA Chairman Lindstrom mentioned the signing of Senate Bill 1 at the EagleVail property to be developed and opens to door to use of a lot of state-owner property. Thank you to everyone who lobbied for this over the years. Much more to come. Ruther noted that on May 16th, the Town Council and Triumph Development reached an agreement on the proposed redevelopment of the Timber Ridge property and is fast tracking towards the first planning commission meeting. Right now the application and material gathering is happening in planning for the July 24th meeting where the PEC will review the application with the expectation to break ground by May 1, 2024. Recently, the Town hosted a meeting for the Timber Ridge tenants to offer some leasing preferences at Residences at Main Vail. Work is being done at West Middle Creek with more to follow at an upcoming meeting. Kristen Kenny Williams made a motion to exit regular meeting and move into Executive Session MOTION: Williams SECOND: Denton PASSED: (4- 0) 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 real, personal or other property interests and to determine positions relative to matters that may be subject to negotiations regarding: Vail InDEED applications and deed restrictions. Presenter(s): Martha Anderson, Housing Coordinator 7. Any Action as a Result of Executive Session 7.1 Any Action as a Result of Executive Session Vail Local Housing Authority Meeting Minutes of May 23, 2023 185 4:55 p.m. Kristen Kenny Williams made a motion to direct staff to execute on the action items discussed during executive session. For the record, Godec left the meeting at approximately 3:45 p.m. so he was not on executive session MOTION: Williams SECOND: Denton PASSED: (4- 0) 8. Adjournment 8.1 Adjournment 4:58 p.m. MOTION: Williams SECOND: Denton PASSED: (4- 0) 9. Future Agenda Items 9.1 Vail Housing 2027 Land Banking Investment Banker Discussion Review Retirement and Remote Worker Policies Review Chamonix Vail Deed Restriction VLHA Investment Policy 10. Next Meeting Date 10.1 Next Meeting Date June 13, 2023 Vail Local Housing Authority Meeting Minutes of May 23, 2023 186