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04-19-10 Town Council Packets(3) t SNOWMASS VILLAGE GENERAL IMPROVEMENT DISTRICT NO.1 AGENDA APRIL 19, 2010 CALL TO ORDER AT 5:00 P.M. Item No. 1: ROLL CALL Item No.2: GID MILL LEVY (Time: 20 Minutes) -Russ Forrest and Marianne Rakowski Page 1 (Tab A) Item No. 3: DISCUSSION OF THE GID FUNDING OF THE SKITTLES LIFTS RELATING TO THE HOURS OF OPERATION AND GID MILL LEVY (Time: 25 Minutes) -Russ Forrest and Marianne Rakowski Page 4 (Tab B) Item NoA: APPROVAL OF MEETING MINUTES FOR October 19, 2009 December 7, 2009 ...........................Page 7 (Tab C) Item No. 5: ADJOURNMENT MEMORANDUM TO: General Improvement District Board FROM: Russ Forrest, GID Advisory Board Marianne Rakowski, GID Advisory Board DATE: April 19, 2010 SUBJECT: Discussion on the GID mill levy I. PURPOSE AND ACTIONS REQUESTED OF COUNCIL: The GID Board inquired as to the possibility of increasing the GID mill levy to help support the GID operating and maintenance costs. Action: No action required at this point unless the GID Board would like staff to continue to pursue this. Attachments: Letter from Calvin Hansen, Sherman Howard II. DISCUSSION ISSUES At the December 7, 2009 GID Board meeting, the GID Board inquired as to the possibility of increasing the GID mill levy to support operations. Attached is a letter with some of the history behind the mill levy discussions prepared by Calvin Hansen of Sherman and Howard. If the GID Board would like to pursue this further, please provide staff with further direction. III. STAFF RECOMMENDATIONS AND FINDINGS The GID advisory board recommends (due to the current economic climate) waiting two to three years when we have a better idea of future assessed values and property tax impacts to look at this issue again. ATTORNEYS COUNSELORS AT LAW 633 SEVENTEENTH STREET, SUITE 3000 Sherman Howard L.L.C. DENVER, COLORADO 80202 TELEPHONE: (303)297 -2900 FAX: (303)298 -D940 OFFICES IN: COLORADO SPRINGS- ASPEN VAIL STEAMBOAT SPRINGS PHOENIX -SCOTTSDALE- RENO LAS VEGAS ST. LOUIS March 10, 2010 Town Council, Town Manager and Director of Finance Town of Snowmass Village 16 Kearns Road Snowmass, Village, Colorado 81615 Re: Snowmass Village General Improvement District No. 1 Operations Ladies and Gentlemen: Due to the concern over the limited funds available to operate improvements managed by the Snowmass Village General Improvement District No. 1 (the "GID including operation of the Sky Cab and snowmelt facilities, Town staff asked us to summarize the legal constraint on tax revenues for that purpose. In September of 2006 the Town and the Base Village Metropolitan Districts No.I and No.2 (the "Base Village Districts entered into an Intergovernmental Agreement (the "IGA concerning, among other matters, limitations on tax levies. In November of 2006 a GID election was held modifying the GID's ability to levy taxes for operating expenses. At the November 2006 election, GID voters approved an operating levy of not more than 20 mills for levy years 2006, 2007 and 2008 and a mill levy of not more than 10 mills in any year thereafter. This approval was anticipated by the IGA and is subject to the terms of the IGA. The IGA provides for a cap on the combined mill levies of the GID and the Base Village Districts of 49.5 mills. Of this amount the Base Village Districts are authorized under the IGA to levy up to 37.5 mills for debt retirement and 6 mills for operating expenses. The GID's mill levy is limited to 6 mills for operating expenses until such time as certain "Subordinate Debt" is repaid. The Subordinate Debt includes a contribution by the Town of Snowmass Village of $2,000,000 to a traffic roundabout and a $2,200,000 contribution by the developer for reimbursable public improvements. Because the tax levy imposed by the Base Village Districts must be used to pay debt service on certain Limited Tax Variable Rate Bonds issued in 2008, there is no current source of revenue to pay the Subordinate Debt. Therefore, the 6 mill levy is expected to be in effect for the foreseeable future until certain financial tests are met which permit the issuance of unlimited tax refunding bonds by the Base Village Districts. 001920.016/1'UMN/1102144.1 Sherman Howard L.L.C. Town of Snowmass Village, Colorado March 10, 2010 Page 2 The distribution of the capped mill levy was subject to extensive negotiation and it was acknowledged at the time the IGA was entered into that in some scenarios the GID operating mill levy might prove to be insufficient. In that regard the IGA includes the following language: "Further, the Parties to this Agreement acknowledge that, in the event of insufficient moneys from its O &M Mill Levy, the governing body of the GID may determine, among other things, to materially limit the days and/or hours of operation of the Pulse Gondola outside of the financial responsibility of Aspen LLC and /or limit the snowmelt operation." The IGA provides that it may be amended with the consent of the parties. With that consent, which may be contested by certain guarantors of the Base Village bonds who are third party beneficiaries of the IGA, the Town could levy an additional 4 mills within the GID without further voter authorization. Any greater levy would require voter approval within the GID. There are several statewide ballot initiatives on the November 2010 ballot. Amendment 60 provides that voter approved tax increases be limited to the dollar amount stated in the ballot question as the first full fiscal year tax increase. If applied to the GID ballot question this would result in a $275,500 limit on GID collections. There are other collateral impacts on municipal finance contained in the proposed amendments which are beyond the scope of this letter. Sincerely, 001920,016/PUBFIN/ 1102144.1 MEMORANDUM TO: General Improvement District Board FROM: Russ Forrest, GID Advisory Board Marianne Rakowski, GID Advisory Board DATE: April 19, 2010 SUBJECT: Discussion on the summer operating hours for the Sky Cab I. PURPOSE AND ACTIONS REQUESTED OF COUNCIL: The GID Board requested that the GID Advisory board present proposed summer operating hours for the Sky Cab in the spring, which is funded through the GID budget. Action: Direct Town staff to hire the Aspen Skiing Company to operate the Sky Cab in the summer based on the operating hours that are decided by the GID Board. Attachments: GID 2010 Adopted budget with 2009 Actuals Sky Cab winter and proposed summer operating hours II. DISCUSSION ISSUES Attached is the GID Budget Summary, which includes 2009 Actual numbers. 2009 ended with an additional $44,277 mostly due to reduced costs for the summer operating hours of the Sky Cab. The 2010 adopted budget includes $150,000 for the operations of the Sky Cab. The attached proposed Sky Cab budget is similar to the 2009 operations with the exception that it is proposed to run seven days /week versus the five days /week in 2009. This budget also proposes starting operations at 10:00 a.m. instead of 11:00 a.m. and ending at 8:30 p.m. as opposed to 9:00 a.m. The cost to run the winter and the proposed summer operations is $150,969. At the December 2009 board meeting, Steve Sewell presented a much lower revised hourly rate for the ASC to run the Sky Cab in 2010. He has since presented an additional reduced rate for the summer operating hours of 10:00 a.m. to 4:00 p.m., which we incorporated into the attached worksheet. 04 -19 -10 gid sky cab Mem Page 2 of 2 The GID Advisory Board met on March 17, 2010 to discuss the summer operating hours for the Sky Cab. Susan Hamley was also in attendance. The GID Advisory Board is recommending the attached proposed Sky Cab summer operating hours. III. STAFF RECOMMENDATIONS AND FINDINGS The GID Advisory Board recommends proceeding with the proposed summer operating hours as attached. 2 [7 67@/ aaa $ƒzQCƒ ƒ 0 C) a# @g�# a \%E m� #82 CC) CD g 2 /kk\ 7 7 /Qmee U o a CL O LO r2% m CD k 2 d k r9 -o R fE BR ;3 Lm kA 7»- R /QQ©» 2 \j<m RR g (b6E a t m G ci c S C) Cl) 2 /27 ƒ/ Q \7q/ c G E C) C) m c o R o E a 2 4 e M CL 4) G 2 f\7« G CL m �®%t m c O 2 D \\ma 2 m k 0) Z? �ckk� k 2m e 2 t c/ U a 2 a \7 4) a 0 \co 252 G �m %C:M CL LL m >»§0 co I oo #4U- 1 2 3 SNOWMASS VILLAGE 4 GENERAL IMPROVEMENTS DISTRICT NO. 1 5 REGULAR MEETING MINUTES 6 MONDAY, OCTOBER 19, 2009 7 8 9 Item No.1 ROLL CALL 10 11 GID Board Member Boineau called to order the Meeting of the General Improvement 12 District on Monday October, 19, 2009 at 3:34 p.m. 13 14 15 G.I.D BOARD MEMBERS Mayor Bill Boineau, Reed Lewis, Markey 16 PRESENT: Butler and John Wilkinson 17 18 G.I.D BOARD MEMBERS Arnold Mordkin 19 ABSENT: 20 21 STAFF PRESENT: Russ Forrest, Town Manager; Hunt Walker, 22 Public Works Director; David Peckler, 23 Transportation; Chris Conrad, Planning 24 Director; Jim Wahlstrom, Senior Planner; 25 Rhonda B. Coxon, Town Clerk; John Dresser, 26 Town Attorney; Marianne Rakowski, Finance 27 Director 28 29 PULIC PRESENT: None 30 31 Item No. 2 RESOLUTION NO. 1, SERIES OF 2009 AMENDING THE 2009 GID 32 BUDGET 33 34 Finance Director Marianne Rakowski stated the 2009 Budget is revised to record a 35 decrease in interest income and specific ownership revenues. The amended budget 36 also decreases the operating and maintenance services to reflect lower costs for the 37 snow melting of Lower Carriageway/Wood Road. The change in fund balance with the 38 above adjustments is an increase of $106,841. 39 40 John Wilkinson made the motion to approve GID Resolution No. 1, Series of 2009 41 amending the 2009 budget and appropriating funds. Reed Lewis seconded the motion. 42 The motion was approved by a vote of 4 in favor to 0 opposed. Board Member Mordkin 43 was absent. 44 45 Voting Aye: Bill Boineau Markey Butler, Reed Lewis, and John Wilkinson. 10 -19 -09 GID Minutes Page 2 of 3 46 47 Voting Naye: None. 48 Item No. 3 RESOLUTION NO 2, SERIES OF 2009 ADOPTING THE 2010 GID 49 BUDGET 50 51 Finance Director Marianne Rakowski spoke to the 2010 budget, projects operating 52 expenditures for legal, administration, audit, insurance, snow melting, and sky cab 53 operating costs for a total budget amount of $371,733. She noted these expenditures 54 are supported by property taxes assessed on the General Improvement Districts area 55 and year -end carryover. The fund balance for 2010 is projected to be $361,606. 56 Rakowski noted the mill levy for this district was 20 mils for 2007, 2008, and 2009. In 57 2010 and thereafter the budgeted mill levy is 6 mills in accordance with the approved 58 ballot language. The amount budgeted for the Sky Cab operations in 2010 is $150,000 59 a decrease of $87,965 from 2009 revised budget. She asked the Town Council to 60 discuss the Sky Cab budget and provide direction to staff. 61 62 The Town Attorney John Dresser stated that the GID ownership is only required to run 63 the Sky Cab during the Winter Ski Season during skiing hours. The right is with the Hive 64 Building and the GID does not have a legal right to operate the skittles during the 65 summer. 66 67 After a lengthy discussion the Board consensus was to reduce the hours of operation 68 for the Sky Cab January 1 through April 11, be changed from 4:00 p.m. to 10:00 p.m. to 69 4:00 p.m. to 8:00 p.m. at night. 70 71 Markey Butler made the motion to approve GID Resolution No. 2, Series of 2009 as 72 amended by the reduction of the hours of operation for the Sky Cab and to also direct 73 staff and Town Council to negotiate with the owners of the Hive Building for an 74 easement. Reed Lewis seconded the motion. The motion was approved by a vote of 3 75 in favor to 1 opposed. Board Member Wilkinson opposed and Board Member Mordkin 76 was absent. 77 78 Voting Aye: Bill Boineau, Markey Butler, and Reed Lewis. 79 80 Voting Naye: and John Wilkinson. 81 Item No. 4 APPROVAL OF THE GID MINUTES FOR JUNE 1 2009 AND JULY 20 82 2009 83 84 The Town Council provided the Town Clerk with amendments to the minutes. 85 86 John Wilkinson made the motion to approve the GID minutes for June 1, 2009 and July 87 20, 2009 as amended Markey Butler seconded the motion. The motion was approved 10 -19 -09 GID Minutes Page 3 of 3 88 by a vote of 4 in favor to 0 opposed. Board Member Mordkin was absent. 89 90 Voting Aye: Bill Boineau Markey Butler, Reed Lewis, and John Wilkinson. 91 92 Voting Naye: None. 93 Item No. 5 ADJOURMENT 94 95 At 4:09 p.m. 96 97 Reed Lewis made the motion to adjourn the GID Meeting on Monday, October 19, 98 2009. Markey Butler seconded the motion. The motion was approved by a vote of 4 in 99 favor to 0 opposed. 100 101 Voting Aye: Bill Boineau Markey Butler, Reed Lewis, and John Wilkinson. 102 103 Voting Naye: None. 104 Submitted By, 105 106 107 108 Rhonda B. Coxon, CMC 109 Secretary for the GID 110 1 SNOWMASS VILLAGE 2 MEETING MINUTES 3 GENERAL IMPROVEMENT DISTICT NO 1. 4 MONDAY, DECEMBER 7, 2009 5 CALL TO ORDER AT 330 P.M. 6 7 GID Board Member Boineau called to order the Meeting of the General Improvement 8 District on Monday, December 7, 2009, at 3:43 p.m. 9 10 Item No. 1 ROLL CALL 11 12 BOARD MEMBERS PRESENT: Bill Boineau, John Wilkinson, and Reed Lewis. 13 BOARD MEMBERS ABSENT: Arnold Mordkin, and Markey Butler. 14 STAFF PRESENT: Russ Forrest, Town Manager; Hunt Walker, Public Works Director; John Dresser, Town Attorney; Rhonda B. Coxon, Town Clerk, Marianne Rakowski, Finance Director 15 PUBLIC PRESENT: Madeleine Osberger. Rick Griffin, Steve Sewell, David 16 Perry, Fred Kucker and other members of the Public 17 interested in Today's Agenda items. 18 19 Item No. 2 RESOLUTION NO 03, SERIES OF 2009 LEVYING PROPERTY TAXES 20 FOR THE GID 21 22 Town Manager Russ Forrest stated that there is some good news of Steve Sewell from 23 the Aspen Skiing Company regarding the numbers significantly dropping for the running 24 of the skittles in the summer. 25 26 Madeleine Osberger asked what actually changed the numbers and Steve Sewell 27 explained a reduction in staff attributed to the reduction. 28 29 Finance Director Marianne Rakowski spoke to the Mill Levy. Town Council Members 30 Lewis and Wilkinson are not in agreement with the Mill Levy and the GID budget. They 31 would like some very serious discussions in the near future in regarding to the budget of 32 the GID. There is a need to go through the motions to change the bond limit. 33 34 Reed Lewis made the motion to approve Resolution No. 3, Series of 2009 Levying 35 Property Taxes for the GID Mayor Bill Boineau seconded the motion. The motion was 36 approved by a vote of 2 in favor to 1 opposed. 37 12 -07 -09 GID Minutes Page 2 of 3 38 Voting Aye: Mayor Bill Boineau, and Reed Lewis. 39 40 Voting Nay: John Wilkinson. 41 Reed Lewis made the motion to approve the request for a reconsideration GID 42 Resolution No. 3, Series of 2009 Mayor Bill Boineau seconded the motion. The motion 43 was approved by a vote of 3 in favor to 0 opposed. 44 45 Voting Aye: John Wilkinson, Reed Lewis, and Mayor Bill Boineau. 46 47 Voting Nay: None. 48 Reed Lewis made the motion to approve the GID Resolution No. 3, Sereis of 2009 as 49 presented by the Finance Director. Mayor Bill Boineau seconded the motion. The 50 motion was approved by a vote of 3 in favor to 0 opposed. 51 52 Voting Aye: John Wilkinson, Reed Lewis, and Mayor Bill Boineau. 53 54 Voting Nay: None. 55 Town Council directed the GID Advisory Board to reconvene before summer and work 56 on Ballot language for a question to the ownership and the Mill Levy limit. 57 58 Mayor Bill Boineau made the motion to approve the reconvening of the GID Board Reed 59 Lewis seconded the motion. The motion was approved by a vote of 3 in favor to 0 60 opposed. 61 62 Voting Aye: Mayor Bill Boineau, John Wilkinson, and Reed Lewis. 63 64 Voting Nay: None. 65 Item No. 3 ADJOURNMENT 66 67 At 4:11 p.m. 68 69 John Wilkinson made the motion to adjourn the GID Board Meeting of December 7, 70 2009 Mayor Bill Boineau seconded the motion. The motion was approved by a vote 71 of 3 in favor to 0 opposed. 72 73 Voting Aye: Mayor Bill Boineau, John Wilkinson, and Reed Lewis. 74 75 Voting Nay: None. 76 77 Submitted By: 12 -07 -09 GID Minutes Page 3of3 78 79 80 Rhonda B. Coxon, Secretary