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Home My WebLink Aboutagenda.council.worksession.202111081 AGENDA CITY COUNCIL WORK SESSION November 8, 2021 4:00 PM, City Council Chambers 130 S Galena Street, Aspen WEBEX MEETING INSTRUCTIONS WEBEX MEETING INSTRUCTIONS TO JOIN ONLINE: Go to www.webex.com and click on "Join a Meeting" Enter Meeting Number: 2557 398 3829 Enter Password: 81611 Click "Join Meeting" -- OR -- JOIN BY PHONE Call: 1-408-418-9388 Enter Meeting Number: 2557 398 3829 Enter Password: 81611 I.WORK SESSION I.A.Parks Tax Reauthorization 1 MEMORANDUM TO:Mayor and City Council FROM: Austin Weiss, Director of Parks and Recreation Matt Kuhn, Director of Parks and Open Space THROUGH:Diane Foster, Assistant City Manager Sara Ott, City Manager MEMO DATE:November 5, 2021 MEETING DATE: November 8, 2021 RE:0.5% Open Space Sales Tax Re-authorization REQUEST OF COUNCIL: Parks and Recreation staff would like to open a formal dialog with City Council regarding possible re-authorization of the 0.5% Open Space Sales Tax (commonly referred to as the Half Cent sales tax), which will sunset at the end of 2025. SUMMARY AND BACKGROUND: In the late 1990’s, a group of citizens, elected officials, and City staff began coalescing various needs and interests for improvements at the time. Notably, needed improvements to the Moore Pool evolved into the concept and support for a new Recreation Center. A golf clubhouse was needed at the Aspen Golf Course, as well as traffic calming and a multi-use trail along Cemetery Lane from Stein Park to Highway 82. Other community needs that could be funded by an additional tax were the construction of a new ballfield complex, open space acquisitions on Smuggler Mountain, and a trail to Aspen Highlands. With these diverse needs in mind, Aspen voters approved an additional 0.5% Open Space Sales Tax in November 2000, with 63% of the Aspen voters in favor of the question. The tax imposed an additional half cent (0.5%) tax on all sales tax as well as allowing an additional 38 million dollars in debt bonding authority. This tax will sunset on December 31 st, 2025 and provides roughly one-third of the Parks and Open Space revenue which is used for operational and capital expenses. The Parks and Open Space program is also funded by a 1.0% sales tax that was originally passed by voters in 1970 with 76% of voters in support of the tax at that time. The original 1.0% sales 2 tax included provisions for the reimbursement of food tax as well as for the acquisitions of real property including open space and for the expenses related to the “expenditures necessary to protect such property…”. Twenty years later, Aspen voters revised the 1970 Sixth Penny Sales Tax to be limited for Parks, Trails, and Open Space Uses. Question No. 2 from February 1990 allows City Council to expend the 1.0% sales tax funds “solely for the acquisition of parks, trails, and open space real property, for the construction of improvements on any real property, owned or purchased by the City for parks, trails and open space purposes, ….for maintenance….of parks, trails and open space, and for payment of indebtedness incurred for acquisition or improvements…” Unique to the 0.5% sales tax is that it allows for additional recreation uses and states, “For the purpose of buying, improving and maintaining trail, recreational and open space properties, and ancillary facilities.” The inclusion of recreation within the authorizing language has allowed for the construction of the Aspen Recreation Center, and has been used for support of incidental operation and maintenance expenses for both golf and recreation programs. Over the last 20 years, many of the largest open space acquisitions, multi-use trail projects, recreation facilities and parks have been realized utilizing this revenue source. Examples of projects funded by the Half Cent Tax include: Aspen Recreation Center Smuggler Mountain Open Space Golf/Nordic Pro-shop and restaurant Iselin/Rotary Ballfield Complex Tiehack Bridge Rio Grande Park and John Denver Sanctuary Moore Playing Fields Sky Mountain Park Dolinsek property Skateboard Park Cemetery Lane Trail and Bridge Highlands Trail East of Aspen Trail Rio Grande Trail (Surfacing, bridges) Old Stage Trail Castle Creek Bridge Underpass Harmony Park Upper and Lower Promontory Parks DISCUSSION:   Park and Recreation staff are currently in the early stages of preparing for a re-authorization ballot question that is tentatively scheduled for the fall of 2022. Staff have been working with the Open Space and Trails Board and the Finance Department to solidify upcoming capital projects, and potential land acquisitions, over the next 10 years to help us have a better understanding of anticipated expenditures. Operational Expenses: One of the major aspects that needs consideration is not simply what new parks, recreation facilities, and trails we might build in the coming years, but also how are we going to fund the ongoing maintenance needs of the numerous facilities we have built over the past 20 years. 3 To answer this question, staff have prioritized an operational assessment as a workplan item heading into 2022. This detailed analysis will build on existing detail plans and budgets, and will provide comprehensive data for future discussions concerning operational expenses and capital maintenance. Timing: Staff are currently in the process of coordinating efforts with the Open Space and Trails and ARC advisory boards, and other various stakeholders throughout the community. Knowing that the 0.5% Sales Tax will sunset at the end of 2025, we have been carefully weighing the best timing to go back to the voters with a ballot question. We have met several times with the Trust for Public Lands and others with extensive experience in Parks and Open Space funding and concluded that the fall of 2022 could be the best time for this question to go back to the voters. While it can be difficult to predict early what other competing ballot measures could potentially be on the November 2022 ballot, staff are seeking initial direction from Council to proceed with preparation for the fall of 2022. Future Capital Projects: As previously mentioned, Staff have also been taking a deep dive into our capital project planning in order to help quantify future projects and how the 0.5% Sales Tax revenue would contribute to those projects. When looking at the next 10 years and beyond, several very significant recreation-focused capital projects that would require funding provided by the 0.5% Sales Tax. Notably, concepts for an expanded recreation center and improved fitness amenities, as well as a needed remodel of the Aspen Ice Garden, could be funded wholly or partially following a reauthorization of the Half Cent. Without a reauthorization of the Half Cent, the 1.0% Sales Tax language would preclude funding, and consideration of these projects would likely fall within the General Fund, or other funding mechanisms. Parks and Recreation staff are already working on several large projects and have identified others that we can anticipate in the next 10 years. AABC to Intercept Lot Commuter Trail Maroon Creek Road Trail Pedestrian Mall Renovation Lift One Corridor and Park ARC Expansion Aspen Ice Garden Re-model Cozy Point Ranch Housing Parks Campus Upgrades and Housing Open Space Acquisitions: In addition to capital projects, several potential Open Space parcels remain priorities for acquisition. While the Half Cent is not the sole source of funding for acquisitions, without reauthorization, large acquisitions may be hindered by the City’s borrowing limits that would be tied to the 1.0% sales tax. Recreation: Finally, another essential need that the Parks fund will have in upcoming years will be the larger capital maintenance of the numerous facilities and community assets that have been developed 4 over the past 22 years of use of the 0.5% Sales Tax. Facilities such as the Aspen Recreation Center, the Golf and Nordic Pro Shop and the Aspen Ice Garden are all going to see significant maintenance needs in the future. These are large structures that will have significant big-ticket funding needs to keep them in good operational condition. Currently these maintenance tasks for recreational facilities falls within the AMP for the most part, but discussion on whether certain projects or the proportion of recreational facility costs that falls within the Parks fund would be appreciated. Summary: As the future continuation of the Half Cent is contemplated, the first questions that we need to answer are to confirm the timing of the reauthorization, and more broadly, whether the scope and scale of the existing 0.5% Sales Tax is viewed by City Council to be consistent and warranted for the foreseeable future. Staff are looking forward to the work session discussion slated for Monday November 9th. CITY MANAGER COMMENTS: ATTACHMENTS: 5