Eagle-Vail looks for new revenue
Eagle-Vail, CO Colorado
EAGLE-VAIL, Colorado ” The Eagle-Vail Metro District will run out of money in 2011 if it continues to pay for the recommended maintenance and upkeep of its facilities in Eagle-Vail, Colorado and doesn’t find a new source of revenue, says Eagle-Vail financial advisor Ken Marchetti.
A 2007 study concluded Eagle-Vail would need to spend an average of a $1 million a year to maintain things like its clubhouse, golf cart paths, tennis courts and ball fields. And officials are anticipating they will have less revenue in the next couple years to do it with.
Marchetti is projecting the golf course will generate about $120,000 less revenue in 2009 because people will be golfing less. There were also be $120,000 less property tax revenue next year because Eaglebend Apartments petitioned to be excluded from the district and will be part of Avon in 2010, Marchetti said.
Marchetti projected another $130,000 decrease in property tax revenue in 2012 because of revaluations conducted on homes in Eagle-Vail.
“We knew we’d have to find an additional funding source to fill that gap,” Marchetti said.
The district considered several options for increasing revenue and has decided on proposing a 2 percent real estate transfer assessment to residents. The transfer tax would require an additional 2 percent of the sale price of a piece of property be paid when the title is transferred.
Fifty-one percent of Eagle-Vail homeowners would have to agree to the transfer assessment in order for it to be implemented. The move would generate about $1 million a year, said Marchetti.
“What I’ve told the Eagle-Vail community is that the district currently has a little over a million dollars in fund balances ” I’m forecasting that if we do the things over the next several years recommended be done and if we don’t have new funding sources we go into red in 2011,” Marchetti said. “If we don’t have added funding we’ll have to get by and patch things up and do the best we can until we do find the funding sources.”
Eagle-Vail officials have held a series of meetings to present the tax on real estate transactions. Officials also want to help fund a new pool by having homeowners pay a $700 one-time fee.
Residents voted more than a year ago to allow the metro district to use money from property tax increases to fund improvements to the local recreation facility. The neighborhood pool is 30 years old and needs to be replaced, according to officials.
The tax increases totaled about $2.5 million, and the district also received a $200,000 grant from Great Outdoors Colorado. But the cost of the new pool is $3.7 million, leaving the neighborhood $1 million short. The $700 one-time fee would make up the difference.
Eagle-Vail resident Bruce Beckwith thinks it’s a bad time to be asking people for more money.
“It seems like an awful lot of money,” Beckwith said. “I think we have to be appreciative of the situation people are in.”
Trying to be conscious of money was one of the reasons Eagle-Vail officials decided to pursue the transfer assessment instead of a property tax increase or increasing the property associations dues, Marchetti said.
“They concluded that the benefit of the (real estate transfer assessment) is that it doesn’t directly impact anyone’s cash flow until they sell their home,” Marchetti said.
The next community meeting will be at 6 p.m., Wednesday at the clubhouse of the Eagle Vail Golf Club.
Staff Writer Chris Outcalt can be reached at 970-748-2931 or email@example.com.