Q: Why is EVMD having this election?
A: A significant portion of the EagleVail Metropolitan District’s funding comes from property taxes. These taxes are determined by the property values within EagleVail. Property values can fluctuate based on valuations from the county assessor and the assessment rates set by the state legislature.
Because the EVMD has no control over setting these values, the revenues for EVMD can vary widely. Between 2010 and 2015, property taxes decreased approximately 30% and did not recover to pre-recession levels until 2020. This election would set a base amount of taxes for EVMD and allow EVMD to plan for future operations and capital replacement.
Q: Property values are going up. Won’t this limit how much revenue EVMD can collect in the next several years?
A: Yes, this election would cap the amount of property taxes EVMD can collect. However, EVMD currently has a strong fund balance and reserve that is sufficient to fund and operate the district in the long-term, if property tax revenues remain stable.
Q: If this election passes, will I pay more in taxes?
A: If the election passes, EVMD will likely need to lower the mill levy for collection in 2022. Estimated savings for a property valued at $500,000 will be $26 for 2022.
Q Why do this now?
A: It takes a predictable amount of revenue to maintain and operate the many amenities in EagleVail. Fixing the amount will limit both the up and downs of the property taxes you pay to support the EagleVail Community. Any inflationary pressures will be addressed by an up to 3% increase that will can be used as those pressures require.
Q: What happens if this measure fails to pass?
A: The district’s revenues will fluctuate with the economy. If there is another major downturn in the economy the district will need to work with less revenue coming in and may have to make downward adjustments in offerings or delay capital improvements, which can result in repeating the cycle of deferring needed projects. Additionally, the District may need to reduce services and possibly eliminate community amenities.
Q: Why not use the district’s reserve to make up any revenue shortfalls?
A: While the District has strong fund balances currently, the district’s variety of assets are in some cases aging and require significant capital replacements and upgrades over time. If the District’s property taxes fall again, capital projects will likely need to be deferred while fund balances are used to continue to fund operations.
Q: Why doesn’t the district just cut some of the expenses to make ends meet during economic downturns?
A: In the event of shortfalls, the District does cut expenses and defer capital projects. However, this is a short-term solution. Maintaining facilities and providing services remain a responsibility of the District regardless of the economic conditions. The fact that many of the District’s operational revenues are also dependent of broader economic trends can compound revenue reductions during downturns.
Q: Are there other sources of revenue the Metro District could use?
A: Very few. Colorado statutes limit the taxes and fees that a metropolitan district such as EagleVail can levy. Property taxes comprise33% of its revenues while sales taxes, which can only be used for transportation, public safety and similar projects amount to approximately $525,000 annually. Seasonal operational revenue and fees account for $2,312,596.
Q: Isn’t this really just a tax increase?
A: No. it simply fixes the amount you pay in property tax to the EagleVail Metro District and the total amount the district receives in property taxes annually at $1,458,448 which is the same amount of revenue collected in 2021.
Q: Won’t the state ballot measure to reduce the tax rate drop our tax payments?
A: Yes and no. The appreciation of property values in the community will be greater than the tax rate reduction so you would likely continue to see increasing tax bills.
Ballot A would largely cap the growth of tax bills but allow an escalator to allow the district to responsibly deal with any inflation.