Vail to incur $15 million in debt
Vail, CO Colorado
VAIL, Colorado – The town of Vail voted to issue tax increment financing bonds in the amount of $15 million Tuesday night in anticipation of two statewide amendments on the November ballot.
Amendments 60 and 61 would both affect a government’s ability to borrow money, which is why Vail Town Finance Director Judy Camp came to the Vail Town Council July 6 with a proposal to issue tax increment financing bonds before the November election.
The Vail Reinvestment Authority, made up entirely of Vail Town Council members, told Vail town staff to prepare to issue the bonds based on the Town Council’s approval of specific projects for which the bonds would fund.
The Town Council chose six projects Tuesday night, which have to be just about completed within three years of issuing the bonds, Camp said.
“Tax law requires that for tax exempt bonds, we have to have 85 percent of the bond proceeds spent in three years,” Camp said.
While the timing of the bonds is in anticipation of the November election, Camp said the town planned to complete these projects in the near future and likely would have issued these bonds six to 12 months from now.
“What we’re really doing is pulling forward projects that we would be doing in the future,” Camp said.
The Town Council voted 5-2 to issue the bonds Tuesday night, with Councilmen Andy Daly and Kevin Foley dissenting.
Mayor Dick Cleveland said he was uncomfortable with the $15 million amount and would rather bond for $13 million or so, but said the timing is right to move forward with bonding now.
“If we’re going to upgrade these things and take advantage of (tax increment financing), this is the time to do it,” Cleveland said. “Nothing says we have to spend the money.”
The council could decide later whether it wants to move forward with some of the projects and whether it should spend all of the $15 million.
The town’s current outstanding debt includes $6,345,000 in sales tax revenue bonds, which will be paid off in 2012. These bonds are primarily for the parking structures, Camp said.
The Timber Ridge Affordable Housing Corporation, a governing body formed by the town of Vail, also has $18,320,000 in outstanding variable rate housing facilities revenue bonds, Camp said.
Community Editor Lauren Glendenning can be reached at 970-748-2983 or email@example.com.