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HomeMy WebLinkAboutminutes.council.19780912 Special Meeting Aspen City Council September 12, 1978 Mayor Standley called the meeting to order at 5:10 p.m. with Councilmembers Behrendt, Isaac, Johnston, Parry, Wishart and Commissioners Child and Kinsley present. Also present were Mayor Jack Schuss and Boardmember Guy DiCarlo from Snowmass Village, and Peter Craven, representing the Town of Basalt. Ms. Butterbaugh presented alternate plan and stated it looks good, until annexation is 'County-wide considered. Brian Stafford stated this plan tries to addreSs the inequities in previous :Sales Tax plans. Stafford said right now the sales tax is being shared 53 per cent by the City of ~distribution Aspen and 47 per cent by Pitkin County. With the addition of Snowmass Village and Basalt, a way that is equitable to give all the municipalities their fair share needs to be determined. The County recognizes there is a net gain from the addition of Snowmass Village of about $130,000. Thisplan is based on a $130,000 reduction and a total munici- pal sharing program. This works out that the County would retain 42.5 per cent of the 2472 Special Meeting Aspen City Council September 12, 1978 county-wide sales tax, and the municipalities would collect 57.5 per cent. This would be divided by calculating that portion that each municipality generates of the whole munici- pal portion. There is a certain amount of ~evenue genereated within each of the munici- palities. This works out to 83.58 for Aspen, Snowmass 16.42 per cent, with Basalt inclu- ded, they are about 1 per cent. This plan works well until the annexation of the Airport Business Center is considered. Stafford said the percentage of municipal share would change each year as the entities grow. The staff determined for budget calculation purposes to use two years previous to the budget year allocation. Ms. Butterbaugh stated this plan tried to accommodate the County's concern over erosion by giving a flat percentage. As more municipalities come in, there would be an erosion to the municipalities share of the revenues. The proposal could be written to deal only with Aspen, Basalt, and Snowmass; when a new municipality comes in, this would be renegotiated. Ms. Butterbaugh stated the City staff doesn not have strong feelings between the Schuss plan and this alternate plan; the results are almost identical. Ms. Butterbaugh explained the way the plan was set up, in the event of annexation, the City's share of generated revenues would jump up and Snowmass~s would drop down. The City staff has asked that should the City annex, there would be a reduction in the County's operating costs, and the County would adjust their firm percentage to an amount that would~ not cause Snowmass to suffer a loss. The City is asking that the County ratio be lowered by a percentage to permit Snowmass not to have a loss; thereby the City would gain a pro- portional amount the County would save by not having these costs. Working this out in figures, by annexation the City would gain $361,000; Snowmass would lose nothing, and the County would bare the full amount of the brunt. Ms. Butterbaugh suggested there were peripherial benefits that might be provided. The City would receive $250,000 in both sixth and seventh pennies from annexation of the Airport Business Center. This additional! revenue would allow the City to take on the burden of North Star and to possibly run the buses. Councilman Parry asked why the annexation question is being discussed at all. Ms. Butter-i! baugh answered if the County went with the presented formula, the City would never be able to afford any annexation. Stafford said the County would like to stablize the agree-il ment so that they know what will happen in the future. Ms. Butterbaugh reiterated that the end result between the Schuss plan and the alternate plan would be almost identical. Councilman Parry suggested adopting either plan and renegotiating in the event of annexa- tion. Stafford said he was recommending the first part of the alternate plan for the County. Stalf proposed if annexation comes and there is a $460,000.slice in the County's budget, the City's sixth and seventh penny to go North Star and running the County bus system. Mayor Standley pointed out this would set up the County and the City as adversaries. Stalf said the funds would be sixth and seventh pennies and would give the City money to give the County some benefits. If the City doesn't annex, they don't have the money and don't have to funds these things. Ms. Butterbaugh pointed out under the Schuss plan, the County would have to force renego- tiating if they felt they were losing. Under plan A, the City would have to force nego- tiations because they would not gain what they needed. Stafford said he could see some logic of going with either plan, with the stipulation in the event of a major annexation, the City would take over the transportation system. City Manager Mahoney recommended to Council that the City go with the Schuss plan; on the balance this makes the most sense to the City. Councilman Behrendt suggested putting into the agreement that if a major annexation occurs, the County and municipalities will sit down and renegotiate. Stafford said he felt the Schuss plan encourages annexation. Mayor Schuss suggested negotiating prior to annexation. Commissioner Kinsley said the staff has been working under fire, and! this should be put off. Kinsley pointed out the losses and gains on the two plans are about the same. Councilwoman Johnston said as municipalities expand and take in responsibilities, perhaps the County should draw back. Everybody is concerned with how much they are going to loose. They should be coming from what actually is the fair way for the County~and its municipal-' ities to divide up the sales tax. Mayor Standley agreed that under annexation the County gets rid of responsibilities at the same time they suffer a loss. Councilman Isaac moved that the staff draw up a resolution using the Schuss plan at 72.5 per cent and investigating the legal ramifications of an election of annexation with the City Attorney; seconded by Councilman Wishart. All in favor, motion carried. Councilman Parry moved to adjourn at 6:15 p.m.; seconded by Councilman Wishart. All in favor, motion carried. Ka~hr~ S. Kbch, City Clerk Regular Meeting Aspen City Council September 25, 1978 Mayor Standley called the meeting to order atT:lO p.m. with Commissioners Edwards and Kinsley; Councilmembers Van Ness, Johnston, Isaac, Behrendt, Wishart and Parry present. Also present were City Manager Mahoney, County Manager Ochs, City Attorney Stock and County Attorney Stuller.