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CITY COUNCIL WORK SESSION
4:00 PM
I. Budget Prep
II. Board Interviews
CITY COUNCIL WORK SESSION
July 10, 2018
4:00 PM, City Council Chambers
MEETING AGENDA
P1
City of Aspen
2019 Proposed Budget Assumptions
July 10, 2018
P2I.
City Sales Tax
•Recipients of Collections (Total Tax = 2.4%)
–Parks & Open Space (1.50%)
–Transportation (0.15%)
–Kids First/Housing Development (0.45%)
–School District (0.30%)
•Sunset provisions exist for:
–Parks & Open Space 0.5% Tax (12/2025)
–Public Education 0.3% Tax (12/2021)
2
$8,000,000
$9,000,000
$10,000,000
$11,000,000
$12,000,000
$13,000,000
$14,000,000
$15,000,000
$16,000,000
$17,000,000
Retail Sales Tax Collections
2005 -2019 Projected
City Collections Inflation Adjusted
P3I.
City Sales Tax
3
2017
Taxable Sales
% Chg from
2016 2018 Budget 2018 Forecast
% Chg from
2017 2019 Projection
% Chg from
2018
Accommodations 216,898,498 3.8%225,000,000 216,898,000 0.0%225,560,000 4.0%
Restaurants 129,748,877 3.4%132,410,000 129,749,000 0.0%134,280,000 3.5%
Sporting Goods 47,949,096 -2.3%51,040,000 48,908,000 2.0%50,390,000 3.0%
Clothing 57,681,679 0.2%58,100,000 57,682,001 0.0%59,410,000 3.0%
Food & Drug 56,104,338 1.2%57,660,000 56,665,001 1.0%57,800,000 2.0%
Liquor 10,512,216 0.1%11,360,000 10,721,999 2.0%11,045,000 3.0%
Marijuana 11,325,092 15.6%10,590,000 12,004,999 6.0%12,606,000 5.0%
General & Misc.50,397,417 0.1%49,920,000 57,956,999 15.0%59,700,000 3.0%
Luxury Goods 29,556,436 11.3%29,540,000 29,556,001 0.0%30,450,000 3.0%
Utilities 43,395,071 0.4%42,746,000 45,999,001 6.0%47,378,000 3.0%
Construction 57,518,850 3.0%57,503,000 66,147,000 15.0%69,454,000 5.0%
Automobile 20,821,925 -3.8%18,930,000 21,655,001 4.0%22,520,000 4.0%
Total Taxable Sales 731,909,495 2.5%744,799,000 753,943,003 3.0%780,593,000 3.5%
Net Revenues 15,313,822 2.2%15,640,800 15,777,000 3.0%16,330,000 3.5%
•2017 taxable sales increased 2.5% over 2016
•Through April, sales are up 4.1% over the same period in 2017
•Projecting 3.0% growth by end of 2018 –see weakness in lodging and tourism areas
•Forecasting 3.5% increase for 2019 at this time
P4I.
City Lodging Tax
•Recipients Of Lodging Tax: (2.0% Total)
–ACRA (1.5%)
–Transportation (0.5%)
•Through Apr 2018, 0.5% increase
•2018 forecast flat
–Slow start at beginning of year
–Room base lessened by construction
•2019 projection: 4.0%
4
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
Lodging Tax Collections (Transportation Fund)
2005 -2019 Projected
Lodging Tax Transportation Inflation Adjusted
P5I.
Property Taxes
•First glimpse of 2018 estimate in August (from County)
•2018 is a n o n -reassessment year
•Maximum annual increase to revenue under TABOR
o Inflation + New Construction Growth
•Allocation of Revenues:
o 2018: General Fund (25%), Asset Management (75%)
o 2019: TBD
•City does not apply the full mills in the 5.410 general purpose levy
o 2017 credit was 1.000 mills
5 P6I.
Real Estate Transfer Tax (1.0% Housing)
•Volatile revenue source
•Started strong in 2018; now essentially flat through May
•Assuming 15% drop each year
6
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
Housing RETT
2005 -2019 Projected
RETT Revenue Inflation Adj. to 2005 Level
P7I.
Budget Assumptions
•Base Budget vs. Supplementals
–What defines a supplemental request?
•Operating Expenses
–2019: 2% increase worked in for materials, goods, and services
•Personnel Expenses
–Up to 4% merit increases (based on performance review); no change from prior yr.
–U p t o 4% increase to health insurance premiums for employer (and employee)
–Maintain current goals and outcomes awards benefit maximum of $1,650 and cafeteria award at $800
–Adjust pay range structure by an average of 2.0%-2.5% to reflect market conditions
–Propose increase in City/employer retirement contribution of 0.5%
7 P8I.
P9
II.
P10
II.
P11
II.
P12
II.
P13
II.
P14
II.
P15
II.
P16
II.
P17
II.
P18
II.
P19
II.
P20
II.
P21
II.
P22
II.
P23
II.
P24
II.