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HomeMy WebLinkAboutagenda.council.worksession.20260223AGENDA CITY COUNCIL WORK SESSION February 23, 2026 4:00 PM, City Council Chambers 427 Rio Grande Place, Aspen I.Work Session I.A Tree Mitigation Fees and Wildfire Related Topics I.B City Financial Update I.C APCHA Representatives: Board Update, Including Proposed Regulation Updates II.Council discussion of the items published in the most recent information update, as needed Zoom Meeting Instructions Join from PC, Mac, iPad, or Android: https://us06web.zoom.us/j/83985622835?pwd=2u3i96i6LDRJfXoe8M5aWu2IbJROJU.1 Passcode:81611 Join via audio: +1 346 248 7799 US Webinar ID: 839 8562 2835 Passcode: 81611 International numbers available: https://us06web.zoom.us/u/koFhHYMOU Staff_Report_-_Tree_Mitigation_and_Wildfire_Topics.docx Attachment A - COA Wildfire Mitigation Policy v02162026.docx Feb 23 2026 - Financial Update - Final.pdf February 23 2026 APCHA Board Representative Update for City Council.docx APCHABoardMemos.Regulationdiscussion.2026.pdf 1 1 1 STAFF REPORT TO: Mayor and City Council FROM: Shelly Braudis, Natural Resources Manager Heather Gale, City Forester THROUGH: Matt Kuhn, Parks and Open Space Director MEETING DATE: February 23rd, 2026 SUBJECT: Tree Mitigation Fees and Wildfire Related Topics ______________________________________________________________________ INTENDED OUTCOME: Staff are seeking Council discussion of the updated Wildfire Mitigation Policy. If Council supports the Policy, staff will return at a future City Council meeting to adopt the policy via Resolution. Adoption of the updated Wildfire Mitigation Policy will ensure that Aspen’s Municipal Code is consistent with the adopted Colorado Wildfire Resiliency Code (CWRC). The work session will also provide information on general tree removal mitigation valuations and other community forestry resources. This discussion will highlight efforts the City has implemented and will continue to implement that align with Council’s 2026 Goal of “Resource and infrastructure resilience, including fire safety”, and Strategic Objective 5: Exceptional Experiences and Services by improving transparency, consistency, and predictability in permitting. The proposed updates to the Wildfire Mitigation Policy aim to continually adapt the City’s long-standing focus on tree preservation and stewardship by recognizing ways to reduce certain wildfire risks associated with trees and vegetation within the community forest. Staff are mindful that any changes that modify the existing protections to the urban forest have the potential to be precedent setting and may have long -term impacts to the community. 2 2 EXECUTIVE SUMMARY: This memo provides City Council with an overview of how Aspen’s wildfire preparedness framework has been implemented to date, how recent state -level changes are shaping local practice, and how proposed policy refinements are intended to improve clarity, consistency, and long-term wildfire resilience for the community, including the application of tree mitigation fees in wildfire-related contexts. Over the past year, the City and Aspen Fire Protection District have actively implemented Aspen’s Wildfire Mitigation Policy through home assessments, permit review, and fuels reduction projects. At the same time, the State of Colorado has adopted the Colorado Wildfire Resiliency Code, introducing new fire intensity classifications and defensible space standards that require local alignment and interpretation. These developments present an opportunity to refine Aspen’s existing policy to ensure it remains current, locally applicable, and responsive to both wildfire risk and urban forestry stewardship goals. The proposed updates clarify how State fire intensity classifications are applied within city limits, establish standards for unclassified areas, refine how tree removals and mitigation obligations are evaluated in wildfire contexts, and strengthen public-facing guidance and implementation tools. In addition to wildfire related updates, over the past several months staff have developed and published a comprehensive suite of resources that improve clarity, consistency, and transparency within the broader tree removal permitting process. A Tree Assessment and Valuation Framework has been developed to provide standardized criteria for evaluating tree condition, assigning comparable values, and determining removal and replacement requirements under the City’s existing tree code. This framework does not modify municipal code or established programs; rather, it formalizes implementation practices that previously existed only through professional discretion, ensuring future decisions are consistent, defensible, and repeatable over time. Refinements to the Wildfire Mitigation Policy and the newly published community resources detailed throughout this memo are intended to strengthen wildfire preparedness, improve transparency and predictability for property owners, and ensure mitigation actions meaningfully reduce risk while supporting lo ng-term community forest health. 3 3 DISCUSSION: Fuel Reduction Partnerships In 2025, the City of Aspen along with AFPD implemented several fuels reduction projects on City-owned land. These projects focused on reducing fuels and hazard around essential public infrastructure at the Water Department campus, and around the west flanks of the Castle Creek bridge. Planning is currently underway with AFPD for further fuels reduction work on City- owned properties in 2026. The general areas for consideration are along Castle Creek and on the Red Butte open space parcel, with more project refinement occurring this spring. In addition, the City and AFPD are developing a project near Burlingame that would reduce fuels near that high density neighborhood. A Forest Health Plan was recently completed for Shadow Mountain, which recommends short-term and long-term forest health and fuels reduction work for Shadow Mountain. Projects within the Shadow Mountain area may implemented as early as this summer. The City is also participating in a larger partnership with AFPD, Pitkin County, Roaring Fork Valley Wildfire Collaborative, and others, on multi-jurisdictional fuels reduction and forest health projects in the upper valley. Historical Context Ordinance No. 34, Series of 1995, formally established Aspen’s tree removal permit requirements and created a standardized valuation framework for trees, at $36 per square inch of trunk cross-sectional area. The ordinance required permits for removal or relocation of qualifying trees, prohibited damage within the dripline, authorized the Director of Parks to evaluate impacts to natural resources and neighborhood character, and established replacement or cash-in-lieu mitigation when trees could not be preserved. 4 4 The clauses at the beginning of the ordinance articulate the foundational values that shaped Aspen’s urban forestry policy. Council formally recognized that trees provide environmental, aesthetic, and public health benefits that extend be yond property boundaries; contribute to real estate values community-wide; and represent a long- term resource that cannot reasonably be replaced once mature trees are lost . The ordinance also acknowledged that development and construction pose risks to valuable trees and affirmed that the Parks Department possessed the expertise to administer protections fairly and effectively. The 1995 ordinance framed trees not merely as private landscape features, but as shared community assets with economic, environmental, and public health significance. That philosophical foundation continues to guide Aspen’s mitigation structure and preservation standards today. Tree Mitigation Fees Today The base valuation rate as of February 2026 is $47 per square inch of basal trunk cross-sectional area at DBH. When adjusted for inflation, the $36 rate in 1995 would equate to approximately $77 in 2025 to maintain equivalent value in today’s dollars. The current rate reflects only a relatively modest increase over that 30-year period. Because cumulative inflation has significantly exceeded total fee adjustments over time, the relative value of the mitigation rate has declined, shifting a greater share of canopy replacement and long-term maintenance costs to the City’s 100 fund. Wildfire Related Permits in 2025 In partnership with AFPD, 109 home assessments were completed in 2025, which resulted in: 14 non-development wildfire-related tree removal permits issued for the removal of 125 qualifying trees. A single non-development related wildfire mitigation fee was charged for the removal of a tree that did not meet the wildfire policy removal matrix. $3,220 of permit submittal fees were collected. No requests to offset these fees with ignition resistant replantings were made by the applicants. 5 5 For comparison, in 2024, 35 home assessments were completed resulting in the issuance of 3 wildfire-related tree removal permits. Forty-two trees were removed under these three permits with $870 collected in permit fees. Types of Tree Removal Permits The City administers two primary categories of tree removal permits: non -development (standalone) permits and development-related permits. Standalone permits apply to individual tree removals outside of active development projects and include condition- based removals as well as wildfire mitigation work. Updated written guidance has been published for both development-related and stand-alone tree removal permits to clarify submittal requirements, evaluation criteria, and the permit application process. For wildfire-related tree removals, mitigation fees may be reduced or waived in accordance with the City’s Wildfire Mitigation Matrix (see Appendix A) to support defensible space and community safety objectives. Development-related permits apply to trees impacted by construction or site modification and are evaluated as part of the broader land use review process. Replacement Planting Incentives The City of Aspen encourages replacement planting that strengthens long-term forest health, wildfire resilience, and climate adaptability. In the 2024 Wildfire Mitigation Policy, a multiplier formula was developed to incentivize replanting over straight removal. The Tree Assessment and Valuation Framework expands those credits, and the City now applies positive multipliers to the calculated replacement value on all planting proposals that align with adopted canopy goals. Incentives may be applied for use of recommended or ignition -resistant species, drought tolerant species, measurable improvements in site -level species diversity, and planting layouts that meet spacing standards designed to support long-term structural health and defensible space. An expanded list of ignition-resistant woody species has been released that includes approximately 20 species, significantly expanding options 6 6 beyond the previous list of five species. Additional Tree and Shrub guides will be available to the public in the Spring of 2026. Qualifying categories apply 50% to 200% multipliers to the base replacement value of eligible trees and may be combined where criteria are met. Diversity incentives are scaled to project size to ensure meaningful improvement: single-tree replacements must introduce a new species or reduce dominance of an o verrepresented taxon, while larger projects must meet defined species distribution thresholds. Incentive eligibility is evaluated case-by-case to reflect parcel size, existing canopy composition, and site constraints, ensuring that replacement planting contributes to measurable resilience outcomes rather than simple one-for-one replacement. Additional Tree Mitigation Resources A tree valuation calculator is now available for use in preparing and submitting development-related tree removal applications. The calculator allows applicants to estimate tree mitigation and replacement tree values using standardized formulas. This calculator reduces uncertainty, improves consistency, and minimizes the need for staff to manually reconstruct valuations during permit review from submitted invoices. Changes at State Level Driving an Update Over the last year, the State of Colorado has significantly updated its approach to wildfire preparedness through adoption of the Colorado Wildfire Resiliency Code (CWRC), which establishes statewide standards for defensible space, vegetation management, and home ignition zone treatments, particularly around existing structures. Aspen’s municipal code and Wildfire Mitigation Policy were updated in 2024 and are already aligned with these State standards. The Parks and Open Spaces Department is now making minor policy refinements to clarify how wildfire mitigation and tree management are implemented together. Proposed Policy Updates The City of Aspen’s existing Wildfire Mitigation Policy is aligned with the intent and core principles of the 2025 Colorado Wildfire Resiliency Code. Over the past year, this 7 7 framework has been actively implemented through coordinated home assessments, permit review, and fuels reduction projects. The proposed updates to this policy build on this strong foundation by formally adopting the State’s fire intensity classification areas and providing clearer, locally specific guidance where the state framework allows flexibility, particularly in unclassified areas and in the interface between wildfire preparedness and urban forestry stewardship. The proposed updates focus on refining implementation by: Adopting the State’s fire intensity classifications as the baseline for wildfire risk evaluation, while establishing clear, locally applicable standards for unclassified areas where state mapping does not assign an intensity class. Image: State map with unclassified areas identified in green. Clarifying pruning, tree removal, replanting, and mitigation fee evaluation based on fire intensity class and distance from structures, as outlined in the updated Wildfire Mitigation Matrix. Expanding assessment capacity and flexibility by allowing approved third-party professionals to conduct wildfire preparedness home assessments. 8 8 Reinforcing a comprehensive, site-based approach to wildfire mitigation by clarifying that mitigation fee waivers are contingent on meaningful fuel reduction and structure hardening efforts. Budget In 2025, the Forestry Program received approximately $4 91,740 in revenue from tree mitigation fees, and of that only $3,220 was specifically associated with wildfire - related permits. All revenues associated with the Forestry program are accounted for within the City’s Parks Fund (100 Fund) under program 57220 and are generally intended to offset urban forest management activities. The Forestry Program expended approximately $507,334 in 2025 on tree maintenance, staffing, and other associated long-term canopy management related costs. Figure 1: Historical analysis of Forestry Program revenues and expenditures. Additional Community Resources The City forestry webpages have been updated to provide clearer, more comprehensive guidance on wildfire mitigation; and Forest Health Briefs are regularly posted to provide seasonal, science-based updates on tree and forest health conditions affecting the Aspen community. These briefs address topics such as bark beetle activity, winter drought stress, storm damage, and emerging pest and disease concerns, and are intended to help residents better understand current conditions 9 9 and appropriate management responses. A wildfire mitigation–focused Forest Health Brief is planned following City Council adoption of the updated policy and guidance for late spring 2026. FINANCIAL IMPACTS: Updates to the Wildfire Mitigation Policy and recently published forestry resources do not create new fees or increase existing mitigation rates. The wildfire policy refinements are focused on alignment, clarity, and defensible implementation. Separately, the newly published forestry resources establish clear written guidelines for tree assessment and valuation in development-related removals, standards that did not previously exist and have been historically administered through professional discretion. These guidelines clarify how replacement value is calculated, remove informal labor and equipment cost offsets that were never adopted in policy, and replace them with structured, performance-based planting incentives focused on species selection, diversity, spacing, and long-term resilience. While none of these updates are intended to increase revenues, there may be instances where development-related removal permits (not associated with wildfire mitigation) result in higher mitigation obligations if applicants do not utilize the available incentives designed to support long-term canopy health and resilience. Any such change would reflect application of consistent valuation standards rather than an increase in fee rates. ENVIRONMENTAL IMPACTS: The proposed policy and administrative updates are expected to result in positive long - term environmental outcomes by strengthening wildfire preparedness and improving urban forest resilience. Key environmental considerations include:  Reduced wildfire risk: Targeted fuels reduction and defensible space treatments focus on reducing fire intensity and spread near structures and developed areas, helping lower the likelihood of high-severity wildfire impacts to people, homes, and infrastructure.  Improved forest health and resilience: The updated tree assessment and valuation framework provides consistent criteria for evaluating tree condition and canopy contribution, helping prioritize retention of healthy trees while guiding replacement toward site-appropriate, ignition-resistant, and diverse species. This 10 10 supports stronger species diversity, improved age-class distribution, and greater adaptability under changing climate conditions.  Protection of natural resources: By reducing the potential for high-severity fire and supporting planting ignition resistant species, the policy and newly published community resources help to limit secondary environmental impacts such as soil loss, erosion, degraded air quality, and sedimentation of waterways, protecting watersheds, wildlife habitat, and adjacent public lands.  Increased public service and proactive stewardship: The publication of clear, accessible community resources improves understanding of wildfire mitigation, tree retention, species selection, and long-term planting practices. Greater transparency and predictability support better private decision-making, resulting in more resilient canopy outcomes across the community. While some short-term vegetation removal may occur as part of wildfire mitigation efforts, these actions, combined with improved assessment standards and public guidance, are designed to produce a net environmental benefit by prioritizing survivability, ecological function, and long-term resilience. RECOMMENDATIONS: Staff recommend that City Council support the p roposed updates to the Wildfire Mitigation Policy and associated administrative guidance. Specifically, staff recommend authorization to implement updates that formally adopt the State of Colorado Wildfire Resiliency Code fire intensity classifications, establish standards for unclassified areas, and apply the updated Wildfire Mitigation Matrix to guide tree removal, pruning, replanting, and mitigation fee evaluation. AL TERNATIVES: Staff considered the following alternatives: No action Formal amendment of the Aspen Municipal Code While possible, a code amendment is not necessary at this time. Existing code intentionally grants discretion to the Parks and Recreation Director or designee to determine wildfire mitigation exceptions, tree conditions, and comparable values. Administrative guidance is a more efficient and flexible mechanism to clarify interpretation under current authority. 11 11 ATTACHMENTS: Attachment A – COA Wildfire Mitigation Policy v02162026 CITY MANAGER COMMENTS: 12 1 WILDFIRE MITIGATION POLICY V. 2.16.26 13 City of Aspen Wildfire Mitigation Policy | 2.16.2026 2 CONTENTS Wildfire Mitigation Policy ................................................................................................. 1 Contents .......................................................................................................................... 2 Background .................................................................................................................. 3 Purpose........................................................................................................................ 3 Fire Resiliency Best Practices ......................................................................................... 4 Mapping Wildfire Risk .................................................................................................. 4 Fire Intensity Classification ............................................................................................ 4 Home Ignition Zone ........................................................................................................ 4 Criteria For Removal ...................................................................................................... 5 Permit Application Process ............................................................................................. 7 Fees For Tree Removal .................................................................................................. 8 Class 1: Removal Fees .................................................................................................. 8 Class 2: Removal Fees .................................................................................................. 8 Unclassified Area: Removal Fees .................................................................................. 9 Additional Conditions ................................................................................................. 10 14 City of Aspen Wildfire Mitigation Policy | 2.16.2026 3 WILDFIRE MITIGATION POLICY BACKGROUND In 2024, the City of Aspen Parks and Open Space department and the Aspen Fire Protection District (AFPD) developed a unified approach to wildfire preparedness strategies within city limits. City staff reviewed the Firewise USA program, created by the National Fire Protection Agency (NFPA), and incorporated many of its elements into this policy. This model has been adapted across the country by local organizations to reflect local risks and provide region- specific guidance. This third-party program provides the foundation for the Parks and Open Space Departments with an understanding of best practices for landscape management in relation to structures. The City received additional guidance from the Division of Fire Prevention and Control (DFPC) and the Colorado State Forest Service (CSFS) at the direction of the Wildfire Resiliency Code Board (WRCB), to help further refine best management practices for wildfire preparedness using the Colorado Wildfire Resiliency Code adopted on July 1st, 2025. This policy works in tandem with Ordinance 11 of 2024, which updates the City of Aspen Municipal Code to provide allowance for property owners to remove trees and shrubs around structures to reduce wildfire fuels. Collaboration between multiple City departments has helped to inform both this policy and a series of associated guidelines. PURPOSE Trees are an important part of our community, and while this policy aims to keep our community safe from wildfire, the City recognizes that a healthy urban forest provides a variety of benefits to the community and the larger ecosystem. The purpose of this policy is to provide guidelines that align with the State of Colorado Wildfire Resiliency Standards, balance a healthy urban forest and tree preservation, and support fuel reduction and tree removals on properties within the City of Aspen. Our goal with this guidance is to balance the long-term benefits of a healthy urban forest with the recognized need to make our homes resilient to the threat of wildfire. 15 City of Aspen Wildfire Mitigation Policy | 2.16.2026 4 FIRE RESILIENCY BEST PRACTICES MAPPING WILDFIRE RIS K The importance of an accurate and up to date wildfire risk map is recognized by both the AFPD and the Parks and Open Space department as a foundational tool for understanding the risk that specific properties face in the event of a wildfire. Not all properties in the City of Aspen have the same level of risk, and as a result, allowances for the removal of trees and shrubs for fuel reduction consider the risk for a given property location on the map. The mapping tool used by the City of Aspen is provided by the State of Colorado Wildfire Resiliency Code Board via the 2025 Colorado Wildfire Resiliency Code. Every area in the city is mapped according to Fire Intensity Classifications, which helps us understand how a wildfire is likely to behave and how difficult it might be to control. As wildfire risk increases, so do the requirements for how homes are built and maintained, which helps to protect the community. FIRE INTENSITY CLASS IFICATION There are two classifications of fire intensity as defined by the State of Colorado Wildfire Resiliency Code: low and moderate/high. The City of Aspen has also created standards for areas yet to be classified based on the State of Colorado Wildfire Resiliency Code Board Map. HOME IGNITION ZONE 16 City of Aspen Wildfire Mitigation Policy | 2.16.2026 5 Critical to the Firewise program is the definition of the home ignition zone and how to manage the ‘defensible space’ surrounding structures. Defensible space is the area around a structure that has been modified to reduce fire hazards by creating space between potential fuel sources. Critical to the idea of defensible space is the establishment of management zones within the landscape that recognizes the role that fuel continuity can play in wildfire behavior. CRITERIA FOR REMOVAL Wildfire Mitigation Matrix The criteria for the removal of vegetation are outlined in the following Wildfire Mitigation Matrix (next page). Tree removal applications and associated mitigation fees in unclassified areas will be reviewed and assessed on a case -by-case basis at the City Forester’s discretion. 17 City of Aspen Wildfire Mitigation Policy | 2.16.2026 6 18 City of Aspen Wildfire Mitigation Policy | 2.16.2026 7 Wildfire Mitigation Map Disclaimers *The City Forester assesses variables to determine the overall condition and risk associated with each tree removal requested. For more information on how valuations are conducted, please see the Tree Valuation Guidelines and the City of Aspen Tree Removal Code 13.20.020(d). AFPD will continue to ground truth and provide additional updates to maps and other wildfire preparedness resources based on available research and modeling. Please see the AFPD website (https://www.aspenfire.com/reduce-your-risk) for updated information. PERMIT APPLICATION PROCESS Wildfire-driven tree removals and development-driven removals are evaluated under the same municipal code framework, but are applied differently based on verified risk, defensible space requirements, and policy guidance. A property owner intending to remove trees for fire mitigation purposes should follow these steps before proceeding with removal. 1. Contact the Aspen Fire Protection District for a free home assessment. a. If the Aspen Fire Protection District (AFPD) is unavailable to conduct a complimentary home assessment, a certified arborist may be used solely for the evaluation of trees. In such cases, the property owner should obtain a qualified third-party professional to complete the remaining components of the property assessment, to ensure full compliance with and prevent any unintended misuse of the wildfire resiliency code. 2. After the home assessment is complete, an application for a tree removal permit from the Parks and Open Space Department may be submitted. The application shall include the tree assessment along with or included within the complete home assessment as part of the submission. 3. The City Forester reviews the trees proposed for removal and verifies the strategies proposed per management zone. The City Forester will make the final determination on what will be allowed for removal or relocation based on the ‘Wildfire Mitigation Matrix’ (see page 6). 4. Following the receipt of a tree removal permit, the tree(s) may be removed by the homeowner or a licensed tree care provider. 5. If replanting wildfire resistant trees is stipulated as part of the permit, schedule an inspection with the forester once that work is complete. 19 City of Aspen Wildfire Mitigation Policy | 2.16.2026 8 FEES FOR TREE REMOVAL All trees will be reviewed and considered for removal by the City Forester. Site condition, tree condition, and other factors apply. Please see Section 13.20.020(d), Tree Removal Permits, for more details on tree removal factors for consideration. The valuation of a tree is set forth in the City of Aspen Municipal Code in Section 2.12.080, Parks Department Fees. This valuation will be applied as the baseline value for trees proposed for fire mitigation removal. When an ignition-resistant species is planted to mitigate the value of the removed tree, the value of the ignition-resistant plant shall be factored into the fee determination to incentivize replanting with ignition resistant plants. Aspen Pitkin County Housing Authority properties (APCHA) and other City owned employee housing units are not subject to wildfire mitigation related tree removal fees. Class 1 : Removal Fees 1. Non-ignition resistant trees removed within 5 feet of a structure will not be subject to mitigation fees as defined in the City of Aspen Municipal Code. 2. Trees removed within 5 – 30 feet of a structure may be subject to mitigation fees as defined in the City of Aspen Municipal Code. 2.1. Replacement plantings may offset mitigation obligations or enhance replacement credits based on the use of ignition-resistant species, improved species diversity, and/or spacing that supports long-term wildfire resilience, consistent with the City’s Tree Removal & Replacement Valuations Technical Guidance. 3. Trees removed within 30 - 100 feet of a structure may be subject to mitigation fees as defined in the City of Aspen Municipal Code. 3.1. Replacement plantings may offset mitigation obligations or enhance replacement credits based on the use of fire-resistant species, improved species diversity, and/or spacing that supports long-term wildfire resilience, consistent with the City’s Tree Removal & Replacement Valuations Technical Guidance. Class 2 : Removal Fees 4. All trees removed within 5 feet of a structure will not be subject to mitigation fees as defined in the City of Aspen Municipal Code. 5. Trees removed within 5 – 30 feet of a structure may be subject to mitigation fees as defined in the City of Aspen Municipal Code. 5.1. Replacement plantings may offset mitigation obligations or enhance replacement credits based on the use of ignition-resistant species, improved species diversity, 20 City of Aspen Wildfire Mitigation Policy | 2.16.2026 9 and/or spacing that supports long-term wildfire resilience, consistent with the City’s Tree Removal & Replacement Valuations Technical Guidance. 6. Trees removed within 30 - 100 feet of a structure may be subject to mitigation fees as defined in the City of Aspen Municipal Code. 6.1. Replacement plantings may offset mitigation obligations or enhance replacement credits based on the use of ignition-resistant species, improved species diversity, and/or spacing that supports long-term wildfire resilience, consistent with the City’s Tree Removal & Replacement Valuations Technical Guidance. Unclass ifie d : Removal Fees 7. The City Forester may consider proximity to resiliency code map classifications; non-ignition resistant trees removed within 5 feet of a structure may not be subject to mitigation fees as defined in the City of Aspen Municipal Code. 8. Trees removed within 5 – 30 feet of a structure may be subject to mitigation fees as defined in the City of Aspen Municipal Code. 8.1. Replacement plantings may offset mitigation obligations or enhance replacement credits based on the use of ignition-resistant species, improved species diversity, and/or spacing that supports long-term wildfire resilience, consistent with the City’s Tree Removal & Replacement Valuations Technical Guidance. 9. Trees removed within 30 - 100 feet of a structure may be subject to mitigation fees as defined in the City of Aspen Municipal Code. 9.1. Replacement plantings may offset mitigation obligations or enhance replacement credits based on the use of ignition-resistant species, improved species diversity, and/or spacing that supports long-term wildfire resilience, consistent with the City’s Tree Removal & Replacement Valuations Guide. 21 City of Aspen Wildfire Mitigation Policy | 2.16.2026 10 ADDITIONAL CONDITIONS 1. The City of Aspen Wildfire Mitigation Policy is intended for stand-alone tree permits for existing structures within City limits. 2. Effectiveness of tree-related mitigation efforts will depend on reduction of other fuels in the landscape and structure hardening. 2.1. Fees may not be waived if other wildfire mitigation efforts are not made. 2.2. The City Forester may require a complete property assessment for trees located further than 5 feet from a structure. 3. The City Forester may determine whether a full or partial fee waiver is warranted based on tree location, tree condition, site condition, planting selection, and other factors. 4. A tree's location is determined by half or more of the trunk at the base existing within a given zone. 5. As a condition of approval of the removal or relocation of vegetation, the Parks and Recreation Director may require that the owner replace any removed or relocated tree with a tree or shrub designated as a fire-resistant species. 5.1. The Parks and Open Space Department will maintain a list of suitable ignition-resistant woody species species and make that list available to the public via its website or at the Parks and Open Space office. 5.2. Replanting of ignition-resistant species will help reduce any calculated removal fees. 5.3. If the homeowner elects to not replant trees, the entire calculated fee will be assessed. 6. Pruning and/or retention groups of trees may be recommended or required by the City Forester as an alternative to removal where practical. 7. The Wildfire Mitigation Policy may be amended, updated, and expanded from time to time by City Council Resolution. At least one copy of the Wildfire Mitigation Policy shall be available for public inspection at the offices of the Parks and Open Space Department. 22 February 23, 2026 Tyler Sexton –Finance Director Financial Update 23 2025 Taxable Sales % of Economy Industry 2025 Taxable Sales Year-over-Year Change 27%Accommodations $391,150,905 ▲10% 15%Restaurants $220,014,969 ▲5% 13%Fashion Clothing $189,494,080 ▲11% 12%Miscellaneous $170,648,831 ▲16% 12%Construction $169,059,679 ▲127% 6%Jewelry/Gallery $84,410,562 ▼12% 6%Food & Drug $80,941,304 ▲1% 5%Sports Equip/Clothing $66,333,781 ▼7% 3%Utilities $43,991,386 ▼9% 1%Liquor/Cannabis $18,034,087 ▬0% <1%Automobile $5,527,763 ▼84% Taxable Sales $1,439,607,350 ▲10% Fiscal Year 2025 Highlights: Overall taxable sales increased 10% (+135M) Majority of year-over-year growth attributed to construction activity Increase reflects both elevated project activity and expanded reporting under state collections Tourism-related sectors continue steady growth and stability 24 2.4% Sales Tax – Year End Performance 2025 Year-End Performance Budget Assumptions Tax Collections % increase 2026 Adopted Budget $34,500,160 0% 2026 Revised Projections $39,000,000 13% Dedicated Use 2025 Actuals 1.5% Parks and Open Space $21,664,479 0.15% Transportation $2,166,447 Portion of 0.45% Affordable Housing (25% share)$1,624,835 Portion of 0.45% Kids First (75% share)$4,874,507 0.30% Public Education $4,332,895 Annual Tax Projections $34,663,163 Fiscal Year 2024: $31.1M 2025: +11% vs FY24 +3.5M in additional revenue 2026 (Projected): +2.8% base growth off of projected 2025 +4.3M from additional .30% public education 25 Lodging Taxes 2025 Year-End Performance Lodging Type 2025 Actuals STR - Classic $4,968,600 STR – Lodging Exempt $1,968,520 STR – Owner Occupied $120,267 STR’s (5% / 10%)$7,057,387 Lodging / Hotel (2%)$6,039,103 Total Lodging Collections $13,096,490 Fiscal Year 2024: $12.7M 2025: +3% vs FY24 +360k in additional revenue year-over-year Lodging taxes continue steady and moderate growth 2026 (Projected): +3% base growth off of projected 2025 Revised projections assume flat growth given current seasonal conditions Projections will be updated as needed Budget Assumptions Tax Collections % increase 2026 Adopted Budget $13,420,000 3% 2026 Revised Projections $13,100,000 0% 26 Real-estate Transfer Tax Collections 2025 Year-End Performance Fiscal Year 2024: $23.8M 2025: +11% vs FY24 3rd highest collection in City history +2.7M in additional revenue 2026 (Projected): $25.7M Conservative assumption given market volatility 2025 Actuals Number of Transactions 660 Total Cash Value $1.79B Average Cash Value $2.7M Actual Tax Receipts $26.58M Affordable Housing Fund $17,597,228 Arts and Culture Fund $8,985,226 Budget Assumptions Tax Collections 2026 Adopted Budget $25,700,000 27 Investments 2025 Year-End Performance Fiscal Year 2024: $14.2M 2025: +13% vs FY24 +1.8M in additional revenue 2026 (Projected): $12.5M Maintaining higher liquidity to support upcoming capital projects (Lumber Yard & Armory) 2025 Actuals Beginning Balance (Jan 2025) $385M Ending Balance (Dec 2025) $446M Average Annualized Yield 3.51% Total Interest Income $16M 28 Economic Context Entering 2026 Broader Economic Conditions •U.S. GDP slowing (~2%) •Colorado employment growth moderating (~0.6%) •Inflation easing (Denver CPI ~2.2%) •U.S inbound international travel projected to grow modestly in 2026, remaining near but below 2019 levels (U.S. Travel/Tourism Economics) •Steel and aluminum pricing remain in place, trade policy discussion continue to evolve After a very strong 2025, we are projecting more moderate growth in 2026 29 STAFF REPORT TO: Aspen City Council FROM: Matthew Gillen, Executive Director APCHA THROUGH: Diane Foster, Deputy City Manager MEETING DATE: February 23, 2026 SUBJECT: APCHA Board Update, Including Proposed Regulation Updates INTENDED OUTCOME & SUMMARY: The purpose of the work session is for APCHA representatives to have the opportunity to gather input from other City Council members on policy updates that the APCHA Board may want to consider. Because this session will be led by APCHA Board representatives from City Council, APCHA staff will not present this material for Council, but will be on hand should questions arise. DISCUSSION: Staff presented the two attached policy memos to the APCHA Board for discussion on January 21 and February 18. The policies were drafted based in alignment with prior input from the APCHA Board, the APCHA Board’s Strategic Plan and the Board’s Annual Work Plan. The APCHA Board was asked if they wish to formally consider the suggested policies; as of February 17, the APCHA Board has not yet provided direction to APCHA staff on which policies they would like to explore. The impetus for this work session is a request from the July 18, 2023 Joint Meeting on Affordable Housing, held at The Aspen Institute, between the Aspen City Council and the Pitkin County Board of County. At that meeting the two boards requested that the APCHA representatives from each of the respective boards provide a more in -depth update for their elected colleagues on a quarterly basis for the purpose of gathering input. The APCHA Board is responsible for establishing and updating APCHA policies and regulations, and while that function is not the responsibility of the City Council, past APCHA Board representatives have found input gathered in these sessions with City Council to be helpful to their duties on the APCHA Board. 30 NEXT STEPS: Updates to the APCHA regulations will be discussed at APCHA meetings in March and April. ATTACHMENTS: Attachment A – Memo from 1/23/26 APCHA Board Meeting Attachment B – Memo from 2/18/26 APCHA Board Meeting CITY MANAGER NOTES: 31 MEMORANDUM TO: APCHA Board of Directors FROM: Bethany Spitz, Deputy Director, Cindy Christensen, Deputy Director, Emily Maynard, APCHA Housing Policy Analyst MEMO DATE: January 14th, 2026 MEETING DATE: January 21st, 2026 RE: Preview of upcoming Regulation changes ____________________________________________________________________________________ REQUEST OF BOARD: This discussion is informational. DISCUSSION: 1. Changes to Unit Appreciation and Rental Increase calculations for APCHA ownership and rental units: Staff is proposing to change the unit appreciation calculation for APCHA ownership units from 3% or CPI, whichever is lower, to a flat 3% simple appreciation. This aligns with other housing programs including West Mountain Regional Housing and Summit County units. Current calculations show that about 75% of units are using 3% as the formula for calculating max sales price rather than CPI. The change would allow APCHA homeowners to better plan their future value of their home as they would know the appreciation rat e. The inclusion of CPI makes the future value unknown. With the government shutdown this past fall, CPI was not updated or released from October to December. A flat 3% would also apply to rental rate increases. Looking back on CPI over the past 6 years, it was below 3% half the time. While these numbers are typically updated monthly, the yearly averages look like this: • 2019: 1.8% • 2020: 1.2% 32 • 2021: 4.7% • 2022: 8.0% • 2023: Around 4.7% • 2024: Approximately 2.95% Pre-pandemic rates were more stable between 2-3%. The APCHA homeowner inventory has various appreciation rates due to differing deed restrictions. There are at least 59 units that would likely not adopt the updated deed restriction as they have a higher appreciation schedule. Of those 59, there are 29 units with appreciations of 6% or CPI and 27 units at a flat 6%. There are 87 units with an appreciation of 4%; they are all RO units. Additionally, there are only 18 units using CPI. These units have been owned for 29 - 47 years and are all still under the Category 4 prices for newly deed restricted units. These units would likely benefit from the change to 3%. There are 1,155 units that currently use the 3% or CPI appreciation calculation. Of those units’ average price increases over the next five years at a flat 3% would be as follows (assuming their prices reset as of December 2025): Category Average max sale price today Average 5-year increase in max sale price from today ’s price at flat 3% Average max sales price in 5 years (2030) with a flat 3% appreciation Category 1 $116,586 $17,488 $134,074 Category 2 $169,203 $25,380 $194,584 Category 3 $255,769 $ 38,365 $294,135 Category 4 $344,630 $ 51,948 $396,473 Category 5 $477,469 $ 71,624 $549,121 RO (only 3% units) $973,792 $ 164,303 $1,120,462 2. Removal of longest work history from tenant selection process for APCHA managed rentals. 33 Staff are proposing amending the regulation for providing a priority to APCHA Managed Units to the individual with the longest work history. This process has proven to be inefficient and ineffective in renting units in a timely manner. APCHA used a waitlist for rental units from 1994-2005. The waitlist was very inefficient as APCHA would spend up to two weeks attempting to contact an individual that was still interested in the unit. That is further time the unit sits vacant and rent is not paid. In 2006 the APCHA Regulations were amended. They eliminated the waitlist, and provided that selection is solely based on an applicant’s longest work history. This process has proven to be inefficient as well and has caused units to sit vacant for weeks while APCHA processes work history and offers the unit. Staff is proposing individuals to sign up for units they are interested in during a set time period. APCHA will allocate the unit to a randomly chosen individual using the randomizer function at the end of that sign up window. Everyone that has listed their name will receive one chance. Current Regs: Section 1. Rental: Priorities and Special Rental Units A. Multiple Qualified Tenant Applicants for an APCHA-managed rental unit are decided by length of employment in Pitkin County unless an applicable priority applies. Landlords of privately owned rental units ordinarily choose their own tenant who must be qualified by APCHA. 34 MEMORANDUM TO: APCHA Board of Directors FROM: Bethany Spitz, Deputy Director, Cindy Christensen, Deputy Director, Emily Maynard, APCHA Housing Policy Analyst MEMO DATE: February 10, 2026 MEETING DATE: February 18, 2026 RE: Preview of upcoming Regulation changes ____________________________________________________________________________________ REQUEST OF BOARD: This discussion is informational. The Board can make a recommendation to continue these items to First Reading of Regulation changes in March or not. DISCUSSION: 1. Remove rental requalification income limits: Staff is proposing to remove the rental requalification income limits. This would prevent people from turning down jobs or raises for fear of losing their housing and allow them to grow within their jobs. This would allow people to bridge the affordability gap between rental and ownership with continued equity building. The requalification process would also be simpler with fewer documents being required at requalification. This would align with ownership requirements. In addition, tax credit units have no income limits once an individual has moved in and qualified. Furthermore, we would be qualifying who is here and needs housing instead of trying to fit people into an inventory of units. This might lead to less turnover, and a person making a higher income might pay a lower category rental rate. The Board could consider a 200% income cap instead of the 150% cap currently in place. 35 Most of APCHA's rental units are Category 3 and very few category 4 units. There are not a lot of options when you make more than those amounts as a renter. There are roughly 100 rental units categorized at Category 1. Another option would be allowing each person to qualify at the category of the unit. This would provide more flexibility to qualify applicants and requalify tenants. This would mean that unrelated people as roommates are not dependent on each other’s income. More people would likely be able to qualify and requalify. Currently, three income earners make too much for a three bedroom, so this potentially would house more workers. However, this would likely favor more working adults and fewer families. Finally, this would move units outside of the category they were assigned during the development phase. 2. Lottery Chances: Allow people with 1 year work history 5 lottery chances: Staff are proposing adjusting lottery chances to allow people with one year of work history five chances in the lottery. Each of the remaining lengths of employment are raised by one chance. This change maintains the longer work history benefit. APCHA Staff believes employers will like this as it could allow them to retain employees. This change would still give more chances to longer work histories but would give people chances during a time when they may lose their employer housing. This proposal still rewards those with a longer work history. APCHA Staff does not know how many people would enter the lotteries with this change. The changes in lottery chances would be changed to the following: Table VIII: Number of APCHA Lottery Chances for Priority Bids Years Employed/Worked in Pitkin County Number of Lottery Chances More than 1 year, less than 4 5 More than 4 years, less than 8 6 More than 8 years, less than 12 7 36 More than 12 years, less than 16 8 More than 16 years, less than 20 9 More than 20 years 10 Data: 1,009/7,959 lottery bids were from people with less than 4 years of work history Years Work No. Of Chances Current advantage Proposed advantage Alternative change Chances: advantage 1-4 5 0 0.111 4 = .102 4-8 6 0.143 0.133 5 = .128 8-12 7 0.171 0.155 6 = .154 12-16 8 0.2 0.178 7 = .179 16-20 9 0.229 0.2 8 = .205 20+ 10 0.257 0.22 9 = .231 As a reminder, these advantages do not represent the chance of winning. The advantage is only relative to each other. 3. ADA Clarifications: Clarifying the Priority for ADA APCHA Managed Rental Units APCHA Staff would like to clarify the priorities for ADA Rental Units. If an ADA unit is available to rent, the highest priority for that unit is for an ADA qualified person. If there is no ADA qualified individual, then an Emergency Worker has priority. 4. Priority for Lumberyard Units for an Owner to transfer to a Rental Unit 37 APCHA Staff is proposing an owner transfer priority for Lumberyard rental units. Staff believe that we should limit the number of units to 10 for this priority. This might encourage movement from ownership units to rental units for downsizers. 5. Sex Offender/criminal policy for APCHA properties The Board requested a discussion on sex offenders in APCHA housing; Tom Smith will lead a discussion on the requirements and challenges of a policy like this. 38