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Home My WebLink Aboutagenda.council.worksession.202206071 AGENDA CITY COUNCIL WORK SESSION June 7, 2022 4:00 PM, City Council Chambers 427 Rio Grande Place ZOOM Zoom www.zoom.us Webinar ID: 992 1920 9344 Password: 81611 Click “Join Meeting” OR Join by phone US: +1 669 900 6833 I.WORK SESSION I.A.Moratorium Update: Short Term Rentals Tax Considerations I.B.Council Board Reports and Council Updates 1 Short-term Rentals –Tax Question City Council Work Session June 7, 2022 2 What We’ve Discussed Thus Far… Timing •Shoot for November •Polling Desired Taxes vs Fees •Keep Fee Focused on Operations •Tax for Community Impacts Uses –Want More Info •Housing Mitigation •Community Capital Infrastructure •Environment Maintain Strong Nexus 3 What We’ve Discussed Thus Far… Avon 2.00% Telluride 2.50%Mt. Crested Butte 2.90% Frisco 5.00% Crested Butte 7.50% Ouray 15.00% 5.4% Tax Rate Equates to Property Tax Delta Actual Property Value for STR Listings $4,274,117,100 Assessed Value at Residential Rate $307,435,540 Assessed Value at Commercial Rate $1,239,493,959 Difference in Assessed Value $932,058,419 General Purpose & Clean River Program Mill Levies 4.788 Delta in Property Tax Revenue $4,462,696 Every 1% in Lodging Tax on STR Units Generates $826,000 Excise Tax Rate to Generate Equivalent $4.462M 5.4% 4 Affordable Housing Mitigation Studio 1- bedroom 2- bedroom 3- bedroom 4- bedroom 5- bedroom 6+ bedrooms Total # units Average bedrooms per unit Total # Units 113 154 430 307 142 64 32 1,242 2.5 Gant 0 10 87 18 2 0 0 117 Aspen Square 68 6 25 2 0 0 0 101 Aspen Alps 1 1 33 13 2 0 0 50 Mountain Lodge 3 35 0 0 0 0 0 38 North of Nell 0 3 13 16 0 1 0 33 Lift One 0 6 10 11 0 0 0 27 Independence Square 22 1 0 0 0 0 0 23 Estimate of Lodge Exempt 94 62 168 60 4 1 0 389 1.8 Estimate of Classic & Owner Occupied 19 92 262 247 138 63 32 853 Estimate of Classic (75%)14 69 197 185 104 63*32*664 3.0 Estimate of Owner Occupied (25%)5 23 65 62 34 0*0*189 2.5 5 Affordable Housing Mitigation @ 100% # of Units Avg # of Bedrooms Mitigation per bedroom Estimated Tax Mitigation per bedroom Estimated Tax Mitigation per bedroom Estimated Tax Lodge Exempt 389 1.8 Classic 664 3.0 $5,139 $10.2M $3,080 $6.1M $1,540 $3.1M Owner Occupied 189 2.5 $3,763 $1.8M $1,510 $0.3M $750 $0.4M Total 1,242 2.5 $12.0M $6.4M $3.5M Tax Rate to Achieve Revenue 14.5%7.7%4.2% @ 65%@ 30% Refined figures from May 24 meeting, the equivalent excise tax rates to achieve presented mitigation thresholds ranges from 4.2% to 14.5%. 6 Put The Two Together… Avon 2.00% Telluride 2.50%Mt. Crested Butte 2.90% Frisco 5.00% Crested Butte 7.50% Ouray 15.00% Monterey County, CA 10.50% Mammoth Lakes, CA 13.00% Oahu & Maui, HI 13.25% 5.4% Tax Rate Equates to Property Tax Delta Only 9.6% Tax Rate Includes 5.4% Plus 35%A.H. Mitigation 13.1% Tax Rate Includes 5.4% Plus 65%A.H. Mitigation 19.9% Tax Rate Includes 5.4% Plus 100%A.H. Mitigation 7 Use of Funds -Housing $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 1.0% Real Estate Transfer Tax -Housing Establishment of Reliable Revenue Source Will Be Critical 8 Use of Funds –Community Infrastrucure Community / Environmental Infrastructure Use: $4,462,500 Property Taxes (4.788 Mills) General Purpose (4.138 Mills) General Fund (Operating)$4,588,250 (55%)$669,375 (15%) AMP Fund (Capital) $3,753,650 (45%)$3,123,750 (70%) Clean River Program (0.650 Mills) Stormwater Fund $1,310,000 $1,115,625 (25%) Current Uses for Property Tax Revenues 5.4% Tax 9 Community Need: General Fund 10 Community Need: Capital Infrastructure Streets Road Surfaces Fleet Purchasing and Maintenance Engineering Bridges Right of Ways Curb & Gutter Pedestrian Safety Bicycle Safety Recreation Aspen Rec Center Ice Garden Red Brick Outdoor Facilities Asset Management City Facilities Community SpacesClerk Election Equipment Finance Office Equipment ComDev Office Equipment Police Weapons Sole Revenue Source: General Property Tax (45%) $3,753,650 11 Community Need: Stormwater Capital Administrative Development Review Storm Drainage Overhead & Debt Service $868,370 for Operations Dedicated Property Tax $1,310,000 Development Review Fees $162,000 Construction Mitigation Fees $250,000 Total Annual Resources $1,722,000 $853,630 Remaining for Capital Maintenance & Improvements 12 Corrugated Metal Pipe Replacements Throughout City $4,811,000 Spring and Original Upgrades $4,560,000 Castle Creek Basin Improvements $1,380,000 Maroon Creek Basin Improvements $1,380,000 River Management Plan $720,000 Riverside McSkimming Basin $655,000 Brown Lane Branch $640,000 Gibson Ave $600,000 Garmish Improvements $600,000 Small Water Quality Facilities $600,000 Outfalls (E.Hopkins, Lone Pine, Oklahoma Flats)$492,000 Riparian Area Improvements $480,000 Garrish Park Water Quality $420,000 Eastwood Main System $310,000 River Management -Out Years $300,000 Green Streets $300,000 Mudflow Protection and Mitigation $240,000 Williams Woods Proposed System $223,000 River Bluff Townhomes Branch $176,000 Grand Total $18,887,000 Projects Identified in 2019 Budget Presentation (Excludes Cost Escalation) 13 What to Take Forward for Polling? Polling to Happen in July if Desired •Are the identified uses for the new tax supported by Council? •What is preferred tax rate supported by Council (upper bound)? •Is there a secondary bound (minimum) that needs to be included in polling? 14