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HomeMy WebLinkAbout2013-01-08 Town Council MinutesVail Town Council Meeting Minutes Tuesday, January 8, 2013 6:00 P.M. Vail Town Council Chambers The regular meeting of the Vail Town Council was called to order at approximately 6:00 P.M. by Mayor Andy Daly. Members present: Andy Daly, Mayor Kerry Donovan Kevin Foley Ludwig Kurz, Mayor Pro-tem Greg Moffet Margaret Rogers Susie Tjossem Staff members: Stan Zemler, Town Manager Matt Mire, Town Attorney Pam Brandmeyer, Assistant Town Manager Lorelei Donaldson, Town Clerk The first item on the agenda was Citizen Participation. There was no public comment. Kevin Foley and the Council congratulated Heidi Kloser of Vail, on her second place finish and her first World Cup podium win in Freestyle. Council also congratulated Mikaela Shiffrin of Eagle -Vail for her two top wins in Slalom. The two women are representing Vail and Eagle County very well on the international skiing stage. The second item on the agenda was the Town Manager Report. There was no report. The third item on the agenda was Resolution No. 2, Series of 2013, a resolution approving the redemption of all outstanding Timber Ridge Affordable Housing Corporation adjustable rate housing facility revenue bonds and authorizing the Town of Vail's funding of Timber Ridge Affordable Housing Development via capital contribution and a loan to the Timber Ridge Affordable Housing Corporation. Judy Camp, Finance Director, stated this financing alternative followed the attempt to redevelop that failed about a year ago and subsequent consideration of other financing alternatives. The funding of this project is part of the 2013 budget. The town will be buying down $8 million of deed restrictions and lending $8 million to the TRAHC over the next 20 years at 1.5%, with no prepayment penalty. The only difference from the budget is timing moved forward which will save the town $80,000 in interest costs. Rogers stated Camp and Zemler have done a terrific job on the funding for Timber Ridge. This option makes it easier, simpler and saves the town money. Moffet asked which accounts the $16 million will come out of. Camp said the capital contributions will come from the general fund and the loan will come from the capital projects fund. An additional $1.3 million will be funded from TRAHC reserves. There will be no outside debt on this project, saving approximately Town Council meeting minutes of January 8, 2013 Page 1 $550,000 in external financing costs in the first year. This financing also allows the town to have more flexibility on potential redevelopment and financing options in the future. Moffet made a motion to approve Resolution No. 2, Series of 2013 and the motion was seconded by Foley. A vote was taken and the motion passed, unanimously, 7-0. The fourth item on the agenda was first reading of Ordinance No. 1, Series of 2013, an ordinance adding a new Section 2-1-4 to the Vail Town Code, to ensure adequate funding for the Town's Long -Range Capital Program. Matt Mire said this ordinance was a result of the ballot question from last November. Rogers stated Council needs more detailed information of what the actual percentages are to make a better decision. Camp said for the budget that was approved for 2013, the split is 38 percent to the capital projects fund and 62 percent to the general fund. On average, over the past ten years, the split had been 56% to the general fund and 44% to the capital projects fund. Tjossem stated that approving this ordinance now allows the budget planning cycle to move forward in May. Daly said the town has a shortfall of approximately $1 million in the general fund if all 2013 expenditures were paid for with 2013 revenues. The town is using its reserves to cover the shortfall. He said if the town is not successful in having excess revenue the split ratio would be closer to 67 percent to the general fund. The split is related to sales tax collections only. Further discussion ensued about the various revenue sources in which the town receives funding. Daly said they need to recognize incremental expenditures and change the ratio as necessary to cover expenses out of current revenues instead of taking them out of reserves. If the Council changes the split to 33% into capital and 67% into operations, they could pay out of current revenue instead of reducing the reserves. Daly asked the staff to put in a split of 67/33 which would be a more accurate reflection of how Council recommends allocating dollars. Daly said they need to be up front how the town's money will be spent. Rogers said the amount of sales tax the town receives above budget goes into the capital projects fund. Camp said that has been the direction, but it can be changed at any time. Council requested staff bring back more information at a future meeting so they are more informed to make a decision to move forward with approving Ordinance No. 1. Zemler said they can give the Council a couple of different scenarios at a future meeting. The fifth item on the agenda was Resolution No. 1, Series of 2013, Posting of Public Notices for 2013 for Town of Vail. Moffet made a motion to approve Resolution No. 1, Series of 2013, and the motion was seconded by Kurz. Foley said he would like to have staff consider posting notices at the Vail Library. Brandmeyer will speak with the Vail Librarian to consider. A vote was taken and the motion passed, 7-0. The sixth item on the agenda was Adjournment. As there was no further business, Moffet made a motion to adjourn and the motion was seconded by Foley. A vote was taken and the motion passed unanimously, 7-0. The meeting adjourned at 6:26 p.m. Town Council meeting minutes of January 8, 2013 Page 2 Attest: Lorelei tYbnaldson, Town Clerk Respectf S mitted, A ew P. Daly, Mayor • SEAL Town Council meeting minutes of January 8, 2013 Page 3