HomeMy WebLinkAboutagenda.council.worksession.20240610AGENDA
CITY COUNCIL WORK SESSION
June 10, 2024
4:00 PM, City Council Chambers
427 Rio Grande Place, Aspen
I.Work Session
I.A Interviews for Boards and Commissions
I.B Grants Program Policy Discussion
I.C Ballot Questions and Motor Vehicle Use Tax
I.D Food Tax Refund Program
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Board Commission Interviews MEMO - 6.10.24.pdf
2024.6.10_Grants_Program_Policy_Discussion.docx
Attachment A_Info on Pilot Programs.pdf
memo_-_2024_ballot_questions_SGO.doc
Food Tax Program Memo - June 2024.docx
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WORK SESSION MEMORANDUM
TO:Mayor and City Council
FROM:John Barker, Strategy & Innovation Deputy Director
THROUGH:Alissa Farrell, Administrative Services Director
CC:Natalie Blumentritt, Grants Coordinator
Patrick Quick, Strategy & Innovation Director
Ann Mullins, Grants Steering Committee Chairperson
MEMO DATE:June 1, 2024
MEETING DATE:June 10, 2024
RE:Grants Program Policy Discussion
REQUEST OF COUNCIL: Staff requests Council provide direction on whether to
implement grants policy changes as recommended by the grants steering committee.
SUMMARY AND BACKGROUND: The city’s non-profit grant program has experienced
significant increases in demand that have challenged some of the existing policies of the
program. Over the previous four years, from 2020 through 2024, total annual monetary
requests have doubled, from $1.7 million to $3.4 million. This rise in demand has
coincided with the transition of program administration to the city’s Strategy & Innovation
Office, which has made several changes to increase participation and align with best
practices.
In a work session on January 22, 2024, staff presented Council with an update on both
the primary grants program and the recent, three grant pilot programs (Cultural Vibrancy
Fellowship, Health & Human Services Capacity Building, and Asset and Acquisition
Assistance). These updates included information on the program’s commitment to best
practices, detailed information on increasing pressures on grants program budget, and a
request for input on whether the grants program should consider alterations to its funding
philosophy because of increasing requests.
During that work session, Council directed the grants steering committee to research
policy changes including providing greater impact through available arts & culture RETT
funding, find ways to maintain a focus on Aspen residents, and consider adjustments to
maximum award amounts. The committee has developed policy proposals intended to
help prioritize organizations that serve Aspen residents more directly, reduce the gap
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between requests and available funds, and continue to ensure that grant funds have the
maximum positive impact possible.
In addition to policy changes, Council asked staff to explore the feasibility of adjusting
grant program budgets. Budget alterations discussed here are focused on tobacco tax
considerations.
DISCUSSION: At the conclusion of the 2023/2024 grant award process, staff and the
steering committee held several conversations with grantees that had concerns about
their grant award. To build on these conversations, staff convened to reflect on the recent
grant cycle and determine potential policy solutions to address the current constraints on
the city’s grants.
To do so, staff identified strengths in the grants program through the lens of four key
stakeholders: grant applicants, City Council, committee volunteers, and staff. Next, staff
developed a set of questions, frustrations, or uncertainties faced by each stakeholder
group.
These two exercises helped provide context and focus for the next phase of the
discussion: identifying broad changes that would preserve program strengths and reduce
or mitigate frustrations when viewed holistically through the four primary stakeholder
groups. Initial solutions identified in this session were further refined and prioritized by the
grants steering committee, resulting in the proposals included in this memo.
Several administrative changes were also identified and will be implemented for the
2024/2025 grant cycle. This includes simplifying the application process, ensuring that
small requests remain a priority, adding a review criterion focused on the past
performance of applicant organizations, and increasing training opportunities for
interested organizations.
Proposal #1: Restrict overall grants eligibility to organizations with a physical
presence in the following zip codes: 81611 (Aspen), 81615 (Snowmass Village),
81654 (Snowmass), 81656 (Woody Creek), 81621 (Basalt), 81623 (Carbondale,
Crystal Valley), and 81601 & 81602 (Glenwood Springs).
Desired outcome: Prioritize organizations that serve Aspen residents more and
reduce the rate at which monetary requests are increasing.
Benefits of implementation:
This would provide clarity to the actual borders of the grants program
beyond the current “Roaring Fork Valley community” which is imprecise.
Organizations who have received a grant from the city within the last three
years could maintain their eligibility to apply into the future.
Organizations outside of these zip codes may appeal for eligibility to the
grants steering committee if the service they provide is both aligned to
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grant program philosophy and strategic focus areas and not offered by
another organization with a physical presence in the above zip codes.
Concerns with implementation:
New organizations outside of this area would no longer be eligible for
funding.
Increased administrative workload to manage eligibility.
Proposal #2: Reduce maximum grant request amounts to ensure that no one
organization can be awarded a disproportionate percentage of a program budget.
Based on current budgets, suggested limits are approximately 10% of expected
program budgets:
Arts & Culture: $100,000 (No Change)
Community Non-Profit: $60,000 (Reduced from $100,000)
Health & Human Services (HHS): $30,000 (Reduced from $100,000)*
*Final amounts will be determined by the grants steering committee based on
actual program budgets when finalized. If Council supports adding the Tobacco
Tax funds to the HHS grant program, this amount will increase.
Desired outcome: Reduce the rate at which monetary requests are increasing
and increase grant program clarity.
Benefits of implementation:
Ensure meaningful funding is available for more applicants.
Manage grant award expectations of applicants more effectively.
Concerns with implementation:
May be perceived as increasing equity imbalances between grant program
divisions.
Proposal #3: Make decisions on the continuation of pilot programs
Desired outcome: Streamline grants offerings, increase clarity for program
stakeholders and reduce administrative management on the steering committee
and staff.
Asset & Acquisition Grant (Arts & Culture): Recommend discontinuing
Discussion: The Asset & Acquisition grant, designed to provide minor capital
support for projects and acquisitions, offered assistance for a unique range of
projects, from providing funding to replace Aspen Public Radio’s broadcasting
equipment to electrifying a barn at the Holden Marolt Museum.
However, a review of the total number of organizations that meet the existing
eligibility criteria reveals there are less than 15 non-profits eligible to apply. As
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such, the steering committee and staff agree that this program should be
discontinued.
Capacity Building Grant (Health & Human Services): Recommend
discontinuing
Discussion: This grant program recently selected participants for the second
year, running through December of 2024. The second year of this grant is
focused on improving an organization’s ability to deliver scalable and sustainable
impact for the communities they serve. This program has been successful in
establishing a model for how to positively impact the organizational development
of local non-profits. However, Pitkin County has recently launched a similar
program, the steering committee feel it is best not to duplicate efforts. Through
our developing partnership with other regional grantmakers, the grants steering
committee is able to continue to support this important work in the future.
Cultural Vibrancy Fellowship (Arts & Culture): Recommend continue &
expanding
Discussion: The inaugural fellowship, containing adult and youth artists, recently
held its final celebration at the Wheeler Opera House on May 16, 2024. At the
event, both adult and youth participants made it clear that the fellowship was
successful in its goal of promoting artistic connection and injecting new energy
into Aspen’s artistic community. One youth participant summed up the impact of
the program:
"I thought I could never become a professional artist, especially in a town where
sport is everything, but through this Fellowship I have learned that there are so
many recourses here and now I know that's what I want to be and will be—an
artist.” – Youth Cultural Vibrancy Grant Participant
One learning from the inaugural year is that there would be benefit in finding
ways to leverage the skills and knowledge of Aspen’s adult artists to mentor the
youth artists. While details have yet to be finalized due to the recent conclusion
of the fellowship, and results of participant surveys are not yet available, staff
recommends providing participants some additional grant funding with the
expectation of mentorship and connection between adult and youth participants.
For 2023/2024, adult artists were eligible for up to $3,500 each, with youth artists
eligible for up to $500, for a total program budget of $60,000. It is recommended
to raise these amounts to a level (to be determined by outreach conducted over
the summer) that is sufficient to allow artists to step outside their daily practice
and commit to community building through the fellowship.
To provide these additional funds, it is recommended to reallocate a portion of
funding from the Asset & Acquisition Assistance grant (if discontinued) to cover
the additional expense of the Cultural Vibrancy Fellowship, with the remainder of
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funding rolled into the discretionary Arts & Culture grant program budget. Further
details on this change can be found in the Financial Impacts section below.
Proposal #4: Formalize the use and prioritization of tobacco tax funds.
Depending on the availability of collections, suggested annual allocations are:
First $250,000: Support Aspen Family Connections through an
intergovernmental agreement (IGA), as discussed in a May 20 work
session with Council.
Additional Tobacco Tax Funds: Would be contributed to the existing
Health & Human Services non-profit grant program budget.
Desired outcome: Increase program clarity for stakeholders & staff.
Benefits of implementation:
Provides predictability for grant applicants on how these funds can be
accessed.
Provides a dedicated revenue source, if funds are available, to support the
HHS grant program, which currently has the widest disparity between
program requests and available budget.
Concerns with implementation:
Reduces the flexibility for Council on how tobacco tax collections can be
utilized.
Questions for Council:
1.Should staff and the grants steering committee implement the following changes
to the grants program:
a. Restrict grant eligibility based on organization zip code?
b. Limit maximum grant request amounts based on program budgets?
c. Discontinue the Asset and Acquisition Assistance grant?
d. Discontinue the HHS Capacity Building grant?
e. Continue and expand the Cultural Vibrancy Fellowship?
f. Annually contribute remaining monies of the Tobacco Tax Fund after the
annual AFC contribution of $250,000 is achieved?
FINANCIAL IMPACTS:Questions A,B,C,D, and E would not affect already approved
budgets. Question F would result in tobacco tax funding being more quickly dispersed to
the community.
If steering committee recommendations are approved, individual grant budgets would
constitute the following:
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Primary Grants
Arts & Culture: $1,130,000-$1,150,000 (Previously $900,000)
Community Non-Profit: $555,000 (No Change)
Health & Human Services: $220,000 (No Change)
Pilot Grants:
Asset & Acquisition Assistance Grant: $0 (Previously $250,000)
HHS Capacity Building $0 (Previously $75,000)
Cultural Vibrancy Fellowship: $80,000-$100,000 (Previously $60,000)
Funding for individual grants is allocated from the following funds:
Primary Arts & Culture: Arts & Culture RETT
Primary Community Non-Profit: General Fund
Primary Health & Human Services: General Fund
Cultural Vibrancy Fellowship: Arts & Culture RETT
Asset & Acquisition Assistance: Arts & Culture RETT
Capacity Building Grant: Tobacco Tax Funds
ENVIRONMENTAL IMPACTS: None.
CITY MANAGER COMMENTS:
ATTACHMENT A – Information on Pilot Programs
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City of Aspen Grants: Asset and Acquisition Assistance
Overview
The Asset & Acquisition grant is intended to help eligible arts & cultural non-profit
organizations make the most of their facilities and provide the assets and equipment necessary
to be as impactful as possible.
Applicants can request support in two categories: Facility Improvements or Equipment
Acquisitions. Facility Improvement grants are intended to assist with needed capital
maintenance or permanent upgrades within existing facilities, while Equipment Acquisition
grants are intended to assist with the purchase of ancillary equipment or assets to increase the
effectiveness of organizational programming or operations.
This grant requires matching funds and will cover up to 2/3 of the total cost of any project, up
to the $50,000 grant award limit. For example, if requesting the maximum amount of $50,000,
applicants must demonstrate that they have at least $25,000 already budgeted to put towards
the project cost.
Eligibility
The Asset & Acquisition grant is open to arts & cultural non-profit organizations who meet the
following criteria:
For Facility Improvements Grants:
•The improvement must be proposed for a property within the Aspen Urban Growth
Boundary that is owned or leased by the applicant organization, with a lease expiring at
least five years from the date of grant application, or an option to renew for a period at
least five years from the date of grant application.
For Equipment Acquisition Grants:
•The acquisition application must be submitted by an organization with a physical
location within the Aspen Urban Growth Boundary and be intended for use primarily at
this location.
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Guidelines
•Individual grants are capped at $50,000 each during this pilot year.
•Grants will either be issued for the entire requested grant amount or not be
recommended for an award.
•Applicants must submit a quote, estimate, invoice, or other document that provides a
basis of costs for the requested grant support.
•Capital campaigns, fundraisers, etc. are not eligible for support via this grant.
•Applicants must demonstrate that sufficient funds exist to enact this project if
selected for a grant award.
•The grant request is limited to a maximum of 10% of an applicant organization’s
operating budget.
•Assets purchased or improved by grant funding may not be sold or disposed of within
two years from the date of purchase.
•Eligible expenses include new projects or asset purchases expected to begin within the
grant period and additions to ongoing projects that have not yet been invoiced or
paid. Expenses incurred prior to the start of the grant period are ineligible to be
funded via this grant.
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Review Criteria
Applicants will be assessed for selection based on the following criteria:
25% -- Alignment
•How well does the application and organization align with City of Aspen Grant Program
Philosophy & Arts & Culture Strategic Focus Area
25% -- Community Impact
•To what extent will the proposal make a meaningful and durable positive impact in the
lives of those it serves? To what extent will the proposal benefit the broader community
beyond those directly served?
25% -- Feasibility
•How well does the application demonstrate that the proposal is viable, accurately
budgeted, and that the organizational capacity exists to ensure funds are used as
proposed?
25% -- Utility
•To what extent will the proposal positively affect organizational operations,
programming, or environmental sustainability?
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City of Aspen Grants Program: Cultural Vibrancy Fellowship
Grant Intent
This fellowship aims to further enrich Aspen’s cultural environment by enabling community connection
and providing opportunity for artistic growth.
Overview
This fellowship stimulates cultural vibrancy in Aspen through the direct support of local artists. This
grant provides funding to local artists for their creative pursuits and fosters relationship building within
the artistic community.
Local artists are important, and their work positively contributes to the community and culture of
Aspen. This grant encourages these contributions through monetary support to adult artists who need it
to further their career, creative practice, or pursue innovative ideas. There is a parallel youth grant to
provide monetary support to further their skill and exploration of art. Along with the funding, recipients
will participate in convenings intended to foster sharing, learning, and relationship building.
Additionally, grantees are expected to make their own personal contribution towards Aspen’s cultural
collective.
This fellowship is an important part of fostering a network of support, growth, and celebration of
Aspen’s local artists. The required grantee convenings will be facilitated by a seasoned artist that will
guide conversations along agreed upon topics such as: sharing and critiquing of each other’s artistic
work, items important to career or business development, issues facing working artists today, or
pertinent discussions in art. Youth recipients will meet separately with an appointed artist facilitator and
discuss topics relevant to their group. The convenings are intended to be a safe, welcoming, and
enjoyable space for the recipients to get to know each other, share, learn, and grow together.
This grant will provide up to $3,500 in funding to up to 12 adult artists and up to $500 in funding for up
to 12 youth artists to support artistic pursuits such as, but not limited to: developing a project, buying
relevant supplies, education, rehearsal space, marketing or growing their creative business, and other
such efforts to support their creative pursuits.
Eligibility
Genres: The Cultural Vibrancy Fellowship is open to individual artists working in a wide spectrum of arts
including performing, visual, film, literary, and new media.
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Eligibility: The Cultural Vibrancy Fellowship grant is split into two categories: Adult and Youth.
For both grants:
o Applicants must demonstrate that grant funding is needed and will meaningfully
further the applicant’s career, creative practice, and/or will help them pursue
innovative ideas.
o Funds must be used toward artistic pursuits such as, but not limited to: developing a
project, buying relevant supplies, education, rehearsal space, marketing or growing
their creative business, and other such efforts to support their creative pursuits.
For the Adult grant:
o Applicants must be artists living or working within the Aspen Urban Growth
Boundary at least nine months a year and for at least three months preceding the
application date.
o Applicants must be at least 18 years of age.
For the Youth grant:
o Applicants must be aspiring artists between 14 and 18 years of age.
o Applicants must live within the Aspen Urban Growth Boundary or attend school
within the Aspen School District boundary.
Awards:
o Up to twelve adult grantees will each receive up to $3,500.
o Up to twelve youth grantees will each receive up to $500.
Guidelines
Convenings:
o Recipients are required to participate in scheduled convenings that will take place
over the 12 months following the award of the grant.
o Up to three convenings will occur, with each lasting two to three hours.
o Attendance at a final public convening to celebrate and share at the end of the grant
period is also required.
Fellowship Statement:
o Within one month following the end of the Fellowship, recipients are required to
submit a written narrative along with images describing how the grant monies were
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spent and how they impacted their own artistic pursuits, as well as their impact on
cultural vibrancy in the community.
Community Contribution:
o All adult grantees are expected to contribute, in their own way, to fostering
community connection and further enriching Aspen’s cultural environment. Some
examples include mentoring youth artists, teaching, volunteering at art related
events, speaking publicly about, performing, or exhibiting your work, advocating for
new ways for Aspen to engage with art and artists, etc.
Review Criteria
Criteria 1: Demonstrated Commitment to Artistic Pursuit
Adult Weighting: 30% | Youth Weighting: 40%
Definition: Does the applicant demonstrate through narrative, resume, and work samples a meaningful
commitment to artistic development and pursuit? Does the applicant articulate how a grant award
would allow them to develop their artistic skills and work?
Criteria 2: Impact of Funding
Adult Weighting: 30% | Youth Weighting: 20%
Definition: Does the applicant demonstrate that funding through and participation in the Fellowship
program will have a meaningful impact on their artistic work and development as an artist? Does the
applicant articulate the impact of joining a cohort of artists? Will a grant award enable the applicant to
do work that is difficult or currently impossible due to financial constraints? Does the application create
a clear and compelling case for funding?
Criteria 3: Artistic Merit
Adult Weighting: 25% | Youth Weighting: 40%
Adult Program Definition:
Do the work samples provided show artistic promise and/or demonstrate high artistic quality and
fluency in the applicant’s medium?
Youth Program Definition:
Do the work samples provided demonstrate high artistic quality and promise of continued artistic
development in the applicant’s medium?
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Criteria 4: Community Contribution
Adult Weighting: 15% | Youth Weighting: 0%
Definition: To what extent will the applicant use this opportunity to contribute to community
connection and further enrich Aspen’s cultural environment?
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Purpose
We believe that a strong and sustainable nonprofit sector is critical to the foundation of a
healthy and thriving community. The Nonprofit Community Impact Academy strives to support
this belief through the delivery of a comprehensive training and coaching program that will
enable organizations to be resilient and sustainable. The NCIA is designed to optimize
governance and operational leadership to help organizations achieve their greatest impact.
About the Nonprofit Community Impact Academy:
The City of Aspen is offering capacity building training and support to Health and Human
Service nonprofit organizations seeking to identify and address opportunities to strengthen
their governance and operational leadership and management. The Nonprofit Community
Impact Academy (NCIA) is intended to serve nonprofit organizations seeking to learn about,
develop and implement best practice strategies for improving their organization’s ability to
deliver scalable and sustainable impact for the communities they serve. This capacity building
program, approved by Aspen City Council, will improve nonprofit leaders' ability to deliver
accessible, effective, efficient resources for strengthening the community.
Capacity building is the process through which an organization develops the internal ability to
be the most effective and sustainable it can be, over the long term. Capacity building
strengthens organizational resiliency in the face of internal and external changes, improves the
quality of the organization’s work, increases resources, creates an environment where people
feel valued and more. The NCIA serves to strengthen operational and governance leadership
through a series of professional workshops and subject matter expert consultations in an
organization identified high-priority capacity building content areas.
The City of Aspen’s Grant program supports nonprofit organizations that promote a mentally
and physically healthy community; provide protection for our natural environment; and create
opportunities for connections for all community members through partnerships, ease of access,
stewardship, arts and culture enrichment, and innovation. As a result of this program,
participants will be able to demonstrate how they have built the requisite skills and
competencies to sustainably strengthen their community impact, in alignment with the City of
Aspen’s Grants program priorities.
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Nonprofit Community Impact Academy (NCIA) Eligibility
The NCIA is open to applicants that meet all the following criteria:
•Nonprofit organizations that have been operating for three or more years.
•Nonprofit organizations that have received a City of Aspen grant within the past
three years.
•Organizations must operate in the Health & Human Services (HHS) sector, either
as a core mission or as a part of a special project or program designed to have a
positive community impact in this sector.
o For applicant organizations with a core mission outside of HHS, more
detailed information on HHS-specific impact will be required in the
application.
•The willingness of both the executive director and Board chair to sign a
statement indicating that they have the time and willingness to dedicate meaningful
and consistent time to the NCIA throughout the program duration.
•Organizations who participated in the program in 2023 are not eligible.
Academy Overview & Anticipated Timeline
The Nonprofit Community Impact Academy is being delivered in a six (6) month intensive cohort
model intended to leverage an interactive professional development experience to maximize
learning among participants. Participants are expected to participate in monthly, in-person
workshops, 2pm – 5pm at City of Aspen Administration Building, as outlined below:
•June 25th - Cohort Kick-Off - Communicating for Impact/Co-piloting for Scalable &
Sustainable Success (Board Chairs & Chief Executives)
•July 23rd – Collaborative Organizational Assessment – Capacity (People, Process,
Infrastructure, Financial Model) & Quality (Access, Effectiveness, Efficiency,
Satisfaction) (Chief Executives)
•August 20th – Strategic Thinking & Planning/ Program Development,
Implementation and Evaluation (Chief Executives)
•September 24th – Effective Resource Development (Board Chairs & Chief
Executives)
•October 22nd – Quality Internal & External Constituent Relationships/
Collaboration & Coalition Building (Executives)
•November 19th – Designing Your Capacity Building Strategy (Board Chairs &
Executives)
•December 10th – Community Impact Forum (Board Chairs & Chief Executives)
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The City of Aspen is proud to support Health and Human Services organizations that make a
positive impact on our community.
Please feel free to reach out with any questions you have.
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MEMORANDUM
TO:Mayor and City Council
FROM:Pete Strecker, Finance Director
THRU:Sara Ott, City Manager
MEETING DATE:June 10, 2024
RE:Follow Up on Ballot Questions for 2024
REQUEST OF COUNCIL: Staff is requesting Council input in order to finalize drafting 2024
ballot question language.
DISCUSSION: On March 25, staff brought forward four possible ballot questions for this
November’s election, including: (1) extending the sunset dates for the 1.0% Housing Real Estate
Transfer Tax (HRETT) and the 0.45% sales tax dedicated to affordable housing and childcare;
(2) replacing the existing sales tax on motor vehicle purchases with a use tax; and (3) adoption of
a new franchise agreement with Holy Cross Electric Association, Inc. for use of the City’s rights-
of-way. The Council generally supported these topics for inclusion in the upcoming election, but
a few specifics are needed now to finalize the crafting of the desired ballot questions.
Extending the Sunset Dates on Existing Taxes:The predominant question after the March 25
work session centered around what a new sunset date should be for these taxes? Staff did hear
some Council members express support to extend the authorization of the tax levy to a date that
would coincide with the needs of the Lumberyard affordable housing project development as a
suggestion.
While a fluid environment still exists with timing, borrowing needs and interest rate
environments, utilizing the 2025 financial planning models for the Lumberyard housing project
and the phased approach to delivering these units, the first significant outflow for construction
would occur in 2027 and 2028. That said, the current fund balance is healthy, with reserves
nearing $100M, and it may be possible to cash fund the first phase of this development, provided
no other projects or opportunities present themselves to compete for these resources. Coupled
with this the possibility of other local jurisdictions pushing for new tax questions, it is possible to
delay this question beyond the November ballot if desired, but this would likely prohibit other
future land acquisition opportunities or other smaller development projects that could present
themselves in the near future.
If Aspen voters were asked to support a ballot question for borrowing during this phase of
construction, the likely duration of that borrowing would be structured for a 30-year payback
schedule, ending around 2057 or 2058. (Note, there is no direction to pursue a debt approval
question during the upcoming election cycle – the question is solely focused on extension of
existing taxes.)
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Recommendation: The current sunset date on both the 1.0% RETT and the 0.45% sales tax is
December 31, 2040. Based on the current duration of taxing authority, and if Council wished to
proceed with the current ballot cycle, staff would propose a new sunset date of December 31,
2060, or an additional 20-year extension, to roughly align with the above phase 1 timeline of the
Lumberyard. Draft ballot language is shown below for the extension of both taxes, if Council
wished to proceed with the 2024 timeline.
SHALL THE CITY OF ASPEN’S EXISTING 0.45% SALES TAX FOR
AFFORDABLE HOUSING AND DAY CARE, WHICH IS SCHEDULED TO
EXPIRE ON DECEMBER 31, 2040, BE EXTENDED THROUGH DECEMBER
31, 2060; AND SHALL THE REVENUES FROM SUCH SALES TAXES AND
THE EARNINGS THEREON BE COLLECTED, RETAINED AND SPENT AS
A VOTER-APPROVED REVENUE CHANGE WITHOUT LIMITATION
UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION
(TABOR) OR ANY OTHER LAW?
SHALL THE CITY OF ASPEN’S EXISTING 1.0% REAL ESTATE
TRANSFER TAX, WHICH IS SCHEDULED TO EXPIRE ON DECEMBER 31,
2040, BE EXTENDED THROUGH DECEMBER 31, 2060; AND SHALL THE
REVENUES FROM SUCH REAL ESTATE TRANSFER TAX AND THE
EARNINGS ON SUCH REVENUES BE AS A VOTER-APPROVED
REVENUE CHANGE THAT THE CITY MAY COLLECT, RETAIN AND
EXPEND WITHOUT LIMITATION UNDER ARTICLE X, SECTION 20 OF
THE COLORADO CONSTITUTION (TABOR) OR ANY OTHER LAW?
Motor Vehicle Use Tax:Council supported including a conditional ballot question for voters to
consider whether they would support a use tax and coincidingly eliminate the existing sales tax
on the purchase of motor vehicles. If voters would approve this action, the City of Aspen would
mirror all other taxing jurisdictions that have a use tax on motor vehicle purchases and would
support the consistency sought in taxation at the State level. Where questions still exist before
staff can move forward with preparing draft ballot language includes (1) the percentage tax to
levy and (2) the proposed uses of the tax receipts.
Regarding the percentage tax to levy, the current sales tax rate is 2.40%. This includes the 0.3%
tax that is a pass through from the City to the school district that was first adopted in 2012. This
additional tax is also the basis for why the total sales tax levied does not align with the 2.10% use
tax that the City charges on construction materials. The Council does have an opportunity then
to adjust the percentage levy of a proposed new use tax on motor vehicles through this ballot
question.
Regarding the uses of the tax receipts under a new use tax, some Council members reacted
positively during the March 25 work session discussion to aligning any new tax receipts to
transportation. This is very typical in other communities and creates a strong relationship
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between the taxed goods and the use of the tax proceeds. Currently, the sales tax that is applied
to motor vehicle sales is allocated based on the voter approved uses of the various sales taxes as
shown below:
Tax Rate Beneficiary
1.50%Parks and Open Space
0.45%Affordable Housing and Daycare
0.15%Transportation
0.30%Public Education
2.40%Total City Sales Tax
Recommendation: Staff recommends a proposed use tax rate of 2.10% on motor vehicle sales to
remain in sync with the existing use tax for construction materials and is consistent with the tax
rate that is retained by the City on all other sales. Ultimately, this would be a slight reduction to
the existing 2.40% tax rate on motor vehicle sales. Staff would also support an alignment of the
tax receipts with the needs of maintaining the transportation infrastructure, including roads,
bridges and other mobility thoroughfares.
Based on the recommendation above, draft language has been prepared for Council
consideration:
WITHOUT IMPOSING ANY NEW TAX, SHALL CITY OF ASPEN AMEND
ITS MUNICIPAL CODE TO RECATEGORIZE THE 2.4% SALES TAXES
CURRENTLY IMPOSED ON AUTOMOTIVE VEHICLES SOLD, LEASES OR
RENTED IN THE CITY TO BE A USE TAX ON THE SAME
TRANSACTIONS, IMPOSED AT A LOWER RATE OF 2.1%;
AND MAY THE REVENUES OF SUCH USE TAX BE USED BY THE CITY
FOR THE MAINTENANCE OF ROADS AND BRIDGES AND OTHER
TRANSIT RELATED INFRASTRUCTURE;
PROVIDED THAT IF THIS BALLOT QUESTION IS NOT APPROVED BY
THE VOTERS, THE CITY SHALL CONTINUE TO IMPOSE ITS EXISTING
SALES TAX ON AUTOMOTIVE VEHICLES AT THE EXISTING SALES
TAX RATE;
AND SHALL THE CITY BE AUTHORIZED TO COLLECT, KEEP AND
SPEND THE REVENUES FROM SUCH TAX AND ANY INVESTMENT
INCOME THEREFROM NOTWITHSTANDING THE LIMITS OF ARTICLE
X, SECTION 20 OF THE COLORADO CONSTITUTION?
Holy Cross Franchise Extension:Council expressed support at the March 25 work session for a
ballot question to renew the Holy Cross franchise agreement. While this agreement officially
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expired November 2023, provisions of the agreement stated Holy Cross would maintain proper
use of the right-of-way and continue to provide services to customers absent the City providing
said customers an alternative electric provider. While this language has aided in maintaining
electric services to these homes and businesses, it is in the best interest of the City to formally
adopt renewal language to ensure the City receives compensation and other benefits associated
with a new agreement.
Recommendation: Staff recommends renewal language for voter consideration that
includes a new franchise term of 10 years, half of the previous duration in the agreement,
to allow for review of terms on a more frequent basis.
SHALL THE CITY OF ASPEN BE AUTHORIZED TO GRANT A
FRANCHISE TO HOLY CROSS ELECTRIC ASSOCIATION, INC. FOR A
PERIOD OF TEN (10) YEARS FOR THE PROVISION OF ELECTRICAL
ENERGY WITHIN THE CITY OF ASPEN?
ALTERNATIVES: Council can choose to support the current recommendations from staff, or
it can provide alternate recommendations in its direction for formulating the ballot questions for
this November.
CITY MANAGER COMMENTS:The November 2024 ballot is shaping up to have several
possible local questions, in addition to candidates seeking county, state, and federal office. At
this time, staff is aware of the following additional questions that may appear on City of Aspen
voter ballot:
Pitkin County
Affordable Housing Mill Levy - Pitkin County BOCC has discussed an affordable housing tax
mill levy for the last three years and conducted polling about two years ago. Current BOCC
discussion has not finalized on whether the County will go forward with a tax question on the
ballot. County staff has modeled the revenues from a 1.5 – 2.0 mil property tax levy, estimated
to be approximately $8.5M - $11.3M in new revenues.
Solid Waste Center/Landfill debt issuance – Only the authorization of debt issuance to complete
capital work. Not a tax question.
Airport – multiple questions from citizen petition; and possibly others from BOCC
Aspen School District
Capital Maintenance Mill Levy - This is described as a new permanent property tax levy. The
mills are not known, but based on the revenue generation estimates, it should be fairly small.
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MEMORANDUM
TO:Mayor and City Council
FROM:Pete Strecker, Finance Director
THRU:Sara Ott, City Manager
MEETING DATE:June 10, 2024
RE:Food Tax Refund – 2025 Refund Discussion
REQUEST OF COUNCIL: Staff is recommending a food tax refund amount of $135.00 for
tax year 2024 (refunded in 2025) and to apply this refund equally across all qualified applicants
for the program.
SUMMARY AND BACKGROUND: In 1970, as the City of Aspen first introduced its own
sales tax on tangible personal property. At this same time, voters also levied their support for
creating a refund mechanism for locals, to mirror some taxation relief that was already adopted
around the State. This original refund amount equaled $7.00 per eligible individual.
Since this time, the City has increased the sales tax rate from 1.0% to 2.4% to generate funds for
other voter approved benefits ranging from further investment in parks and open space to transit
services, affordable housing and childcare support, and public education. The cumulative
additions to the tax rate over time, plus the change in consumer price index from 1970, has
escalated the cost, and therefore tax paid, on food purchases in the City, yet the City’s refund
amount has not always kept pace with these changes.
Incorporating the two metrics of inflation and tax rate to inflate the original $7.00 refund amount
from 1970, an appropriate refund amount of approximately $132.00 would be applicable today.
To quantify the value of the $132.00 estimate above in terms of taxable food sales, this would
equate to $5,500 annually for the individual, or $105.77 per person per week.
RECOMMENDATION: Staff recommend increasing the food tax refund amount from $85.00
to $132.00 per qualified applicant. This would be consistent with Council preference given earlier
this year for a defensible relationship between the refund award versus the average taxable food
sales for a local.
Also consistent with this desire for a strong nexus in refund amount with taxable food sales, staff
is additionally recommending discontinuing the added “bonus” payments for seniors and legally
blind persons, as there is no rationale for increased food costs for these cohorts.
Finally, moving forward, staff recommends using the change in consumer price index to annually
increase the refund amount, with a one-year lookback, meaning 2024 awards (paid in 2025) would
reflect changes in CPI through 2023. The reason for this one-year lookback is because annual CPI
changes are not published for the calendar year until late February of the following year, after the
current year budget has been set.
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FINANCIAL IMPACT: Using 2024 payments as a proxy for 2025 budget expectations, the cost
of the refund program would escalate from $250,410 in 2024 to $306,900 in 2025 if the refund
amount was raised to $132.00. Note this does not reflect any increased volume in refund
applications, which may be possible if the award is increased.
2023 Payments
@ $85.00
Base Refund Awards Additional Senior
Bump
Total Awards
Eligible Applicants 2,325 621
Refund Amount $197,625 $52,785 $250,410
2024 Payments
@ $132.00
Base Refund Awards Additional Senior
Bump
Total Awards
Eligible Applicants 2,325 N/A
Refund Amount $306,900 N/A $306,900
ALTERNATIVES: Council can elect to refund any amount more or less than staff
recommendation and could elect to keep the additional bump for seniors and/or legally blind
individuals (note - there were only 2 awards for legally blind individuals in 2024). However, these
such adjustments would not promote alignment with the basis between taxable food sales and
awarded refunds.
CITY MANAGER COMMENTS:
ATTACHMENTS:
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