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