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HomeMy WebLinkAbout1971-02-15 Town Council Minutesl] VA a -a- 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. nn 0 • Towr C Ak • 1:7�.Y�7R�)rrC�l�l 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 • 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