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HomeMy WebLinkAboutagenda.council.worksession.202203071 AGENDA CITY COUNCIL WORK SESSION March 7, 2022 4:00 PM, City Council Chambers 427 Rio Grande Place, Aspen WEBEX MEETING INSTRUCTIONS WEBEX MEETING INSTRUCTIONS TO JOIN ONLINE: Go to www.webex.com and click on "Join a Meeting" Enter Meeting Number: 2553 393 2991 Enter Password: 81611 Click "Join Meeting" -- OR -- JOIN BY PHONE Call: 1-408-418-9388 Enter Meeting Number:2553 393 2991 Enter Password: 81611 I.WORK SESSION I.A.Financial Update I.B.Board & Commissions Interviews (4:30pm Start) 1 Financial Update March 7, 2022 2 2021 Wrap -Up Economic Activity Soars High As COVID Suppressed Consumer Spending Freed $16,046,928 $17,117,217 $17,417,451 $18,116,771 $19,648,370 $18,358,622 $24,509,175 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2015 2016 2017 2018 2019 2020 2021 City of Aspen 2.4% Sales Tax 3 2021 Wrap -Up Robust Activity Across Nearly Every Sector Category Retail Sales % of Total Retail % Change vs 2020 % Change vs 2019 Accommodations $256,865,311 25.2%45.1%8.4% Restaurants/Bars $154,955,362 15.2%26.1%11.5% Sports Equip/Clothing $65,735,189 6.4%22.7%24.0% Fashion Clothing $121,272,550 11.9%93.0%89.6% Construction $94,834,967 9.3%32.2%35.1% Food & Drug $68,967,198 6.8%19.4%15.8% Liquor $13,759,851 1.3%3.6%25.8% Miscellaneous $94,221,354 9.2%10.1%28.8% Jewelry/Gallery $46,883,805 4.6%21.4%21.3% Utilities $49,592,868 4.9%10.4%8.7% Automobile $31,400,315 3.1%30.1%61.6% Marijuana $11,207,258 1.1%(1.0%)(6.2%) Bank / Finance $4,463,553 0.4%270.5%N/A Health / Beauty $6,593,635 0.6%372.7%N/A Total $1,020,753,218 100.0%33.2%24.1% 4 2021 Wrap -Up Everyone’s A Winner! 12%20% 2021 Projection 2021 Actuals Increases 1.00% Sales Tax: Parks & Open Space $9,159,600 $10,207,461 $1,047,861 0.50% Sales Tax: Parks & Open Space $4,578,100 $5,106,740 $528,640 0.30% Sales Tax: Public Education $2,747,600 $3,066,868 $319,268 0.15% Sales Tax: Transportation $1,372,800 $1,532,037 $159,237 0.45% Sales Tax: Affordable Housing (45%)$1,854,800 $2,068,231 $213,431 0.45% Sales Tax: Childcare (55%)$2,266,000 $2,527,838 $261,838 Total 2.4% City of Aspen Sales Tax $21,978,900 $24,509,175 $2,530,275 5 2021 Wrap -Up What Obstacles? 2021 Projection 2021 Actuals Increases 1.50% Lodging Tax: Tourism Promotion $2,707,500 $3,131,133 $423,633 0.50% Lodging Tax: Transportation $902,500 $1,043,711 $141,211 Total 2.0% City of Aspen Lodging Tax $3,610,000 $4,174,844 $564,844 2019 2020 2021 Occupancy 60%43%56% Avg. Daily Rate $454 $419 $509 RevPAR $301 $214 $304 6 2021 Wrap -Up $4,146,946 $1,892,259$132,788$2,533,475 $1,541,068 $110,668 $0$1,000,000$2,000,000$3,000,000$4,000,000$5,000,000$6,000,000$7,000,000$8,000,000Traditional Hotel / Lodge Short-Term Rentals Real Estate Groups 2021 Tax Collections 2.4% Sales Tax 2.0% Lodging Tax Short-Term Rentals Added $3.4M in Total Tax 1,028 non-zero STR filers 7 2021 Wrap -Up Real Estate Activity Eclipsed Previous Record! City of Aspen 1.0% Housing & 0.5% Arts RETTs $5,392,273$3,342,440$5,184,461$4,633,568$4,420,027$9,482,264 $10,848,886$10,020,525$6,293,074$9,938,124$8,896,761$8,440,265$17,589,652$21,091,202$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2015 2016 2017 2018 2019 2020 2021 8 2021 Wrap -Up One Area Where Growth is Limited … Property Tax Inflation 1.95% New Construction 0.97% Allowable Increase 2.93% Increase in Total Value of Real Property 13% 9 2022 Outlook 2021 Strength = 2022 Flexibility … Right? 10 2022 Outlook Staffing Challenges •“Great Resignation” •Inflationary Pressures •Challenges to Work Plans 11 2022 Outlook Construction Concerns •Supply Chains •Labor Shortage •Project Competition 12 Next Steps Spring Supplemental 2023 Planning Next Update in June… 13 City Sales Tax Rate Snowmass Village 10.40% Aspen 9.30% Carbondale 8.40% Woody Creek 6.90% Jurisdiction Sales Tax Rate State of Colorado 2.90% Pitkin County 3.60% City of Aspen 2.40% RFTA 0.40% Total Tax 9.30% County Name Max 2022 Local Sales Tax Rate Ranking (out of 64) Grand County 11.20%1 Clear Creek County 10.55%2 Pitkin County 10.40%3 San Juan County 10.40%3 Summit County 10.38%5 Eagle County 9.90%6 Gunnison County 9.90%6 Mineral County 9.50%8 Saguache County 9.50%8 Ouray County 9.45%10 Huerfano County 9.40%11 La Plata County 9.40%11 Adams County 9.25%13 Denver County 9.25%13 El Paso County 9.03%15 Boulder County 8.99%16 Conejos County 8.90%17 Gilpin County 8.90%17 Moffat County 8.90%17 Park County 8.90%17 Routt County 8.90%17 Arapahoe County 8.81%22 Jefferson County 8.81%22 Douglas County 8.75%24 Delta County 8.70%25 Larimer County 8.70%25 Chaffee County 8.65%27 Montrose County 8.65%27 San Miguel County 8.65%27 Broomfield County 8.64%30 Garfield County 8.60%31 Mesa County 8.52%32 Taxation Pitkin County Has 3rd Highest Sales Tax. Lowest is 4.90%. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51