HomeMy WebLinkAbout1971-02-15 Town Council Minutesl]
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MINUTES OF A SPEC AL MEET NG
BOARD OF TRUSTEES
FEBRUARY 15, 1971
A special meeting of the Board of Trustees was held February 15,
1971, at 7:30 p.m., at the Vail Elementary School. The following
Trustees, constituting a quorum, were present:
Mayor John Dobson
Trustee Dr. Thomas Steinberg
Trustee John Donovan
Trustee Tod Anderson
Trustee Clayton Freeman
Trustee Gerry White
Trustee Richard Bailey
Also present were:
Terrell J. Minger, Town Manager
Stanley Bernstein, Finance Director
Lawrence Robinson, Town Attorney
The meeting was called to order by Mayor Dobson.
Mayor Dobson explained that the purpose of this meeting is to
explain to the public the election scheduled for February 23,
concerning the adoption of an additional one percent Town sales
tax. Before going into detail, he introduced into the minutes
a resolution of the Vail Resort Association, which resolution
supports this increase in sales tax, and is attached to these
minutes.
Mayor Dobson then asked Town Manager Minger to explain the sales
tax. Minger said that there were three questions: 1) What might
happen at the state level if the Town of Vail did not take action
at this time? 2) Whether or not we really do need the additional
funds and how important it would be to the Town of Vail; 3) How
would the money be spent? Minger then answered these questions by
stating that if the Town did not approve this sales tax, the county
or the state could impose one, and that Vail would not then benefit
from this tax. He explained the 120 day waiting period after the
election, and the fact that if we didn't vote on this February 23,
we would have to wait an additional six months for the tax to become
effective, as it can become effective only on July 1 or January 1.
If we waited even an additional week to vote for this tax, we would
miss -out on six month' taxes, or an estimated $75,000 for 1971. It
was brought out that Englewood just passed an additional city sales
tax by an amendment to their ordinance approved by their Board; not
by an election. Minger stated that the money was definitely needed
if Vail were to ever be serious about parking structures, open space
acquisition, covered ice rink, etc., and that the money would be
earmarked for capital improvements and land acquisition. At this
time, the Finance Director, Stan Bernstein, was asked to explain the
financial benefits of this tax.
He stated that a conservative 80 percent of the sales tax would be
paid by the tourists; 20 percent by Vail residents. Based on a 10
percent increase per year (though it is as high as 30 percent), the
Town would receive an additional $171,000 for the entire year of 1971.
He estimated $75,000 for the remainder of 1971. In 1980, the Town
could receive $400,000; and in a ten-year period of time, the Town
would receive 2.7 million dollars, or 7 million dollars on a 30 per-
cent increase. Bernstein mentioned possible uses as an ice skating
rink, parking facilities, convention facilities, summer recreation
facilities, a library, landscaping projects, land acquisition for
parks, and street paving. He then explained that the one percent
additional tax would be immediately transferred from the General
IsFund to the Special Revenue Fund for capital improvements and open
space purposes. These special revenue fund requirements would be:
1) Annual budget prepared and adopted (public hearings); 2) Annual
appropriation ordinance adopted; 3) Special bank account; 4) Self
balancing ledger; b) Annual independent audit; 6) Publication in
local newspaper of financial condition and operations for year.
After some discussion by the Townspeople, the meeting was adjourned
at 8:50 p.m.
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The following motion was made in the form of a Resolution,
seconded and unanimously carried, at the February 15, 1971,
meeting of the Board of Directors of the Vail Resort Asso-
ciation =
THAT the Board of Directors of the Vail Resort Association
go on record as supporting the proposition that is going before
the voters on February 23, 1971 [TOWN of VAIL ORDINANCE
NO. #3-71 ], in favor of increasing the local sales tax to
• a total of three cents(3(�)on the dollar [3%] with the understanding
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that the ear -marking of the funds from the sales tax increase for
land -acquisition and capital investment projects will have the
effect of freeing an increased proportion of revenues from the
general fund for the general advertising and promotion of Vait's
year-round tourist business; and,
THAT this endorsement should be read into the minutes of the
next Town Meeting of the Board of Trustees.
15 February 1971
VAIL RESORT ASSOCIATION
BOARD OF DIRECTORS
J. Dudley Abbott, President