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HomeMy WebLinkAbout2022-02-28 (Special) Meeting Agenda Packet Please note: If you have a disability and need auxiliary aids or services, please notify the City of Englewood (303-762-2405) at least 48 hours in advance of when services are needed. 1000 Englewood Parkway - 2nd Floor Community Room Englewood, CO 80110 AGENDA City Council Special Meeting Monday, February 28, 2022 ♦ 6:00 PM Council dinner will be available at 5:30 p.m. To view the meeting, please follow this link to our YouTube live stream link: https://www.youtube.com/watch?v=23xD-TrPsqY I. Call to Order II. Pledge of Allegiance III. Roll Call IV. Proclamation a. Black History Month Proclamation IVa V. Preliminary December Monthly Financial Report - Information 6:10 pm - 6:30 pm a. Finance Manager Kevin Engels will be present to review the preliminary December monthly financial report. Presentation: 10 minutes Discussion: 10 minutes Va VI. January 2022 Monthly Financial Report - Information 6:30 pm - 6:50 pm a. Finance Manager Kevin Engels will be present to review the January 2022 financial report. Presentation: 10 minutes Discussion: 10 minutes VIa VII. Presentation on newly-created State Festival Permits, and Consideration of a Local Permit - Information and Direction 6:50 pm - 7:20 pm a. City Attorney Tamara Niles will be present to discuss a revision to Colorado law regarding Festival Permits and to determine whether the City will issue a local festival permit. Presentation: 10 minutes Discussion: 20 minutes Page 1 of 78 Draft Englewood City Council Study Session Agenda February 28, 2022 Please note: If you have a disability and need auxiliary aids or services, please notify the City of Englewood (303-762-2405) at least 48 hours in advance of when services are needed. VIIa VIII. Reports from Board and Commission Council Liaisons IX. Council Member’s Choice X. City Manager’s Choice XI. Adjournment Page 2 of 78 Draft 1 P R O C L A M A T I O N WHEREAS, the City of Englewood is strengthened by and thrives upon the rich diversity of all its residents, all of which contribute to the vibrant character of the community; WHEREAS, the City of Englewood recognizes that our nation was founded upon the principles that all people are created equal and that each person has the right to life, liberty and the pursuit of happiness and pays tribute to the contributions that African Americans have made to American history in their struggles for freedom and equality and deepens our understanding of our shared history as well as remembering important and influential people and events in the history of the African diaspora; and WHEREAS, in 1926, Dr. Carter G. Woodson, established the observance of African American History, to focus on the contributions, achievements, and involvement of African American people in the development of our American democracy; and WHEREAS, the observance of Black History Month calls our attention to the continued need to build a society that lives up to its democratic ideals and celebrate the many achievements and contributions made by Black Americans to our economy, cultural, spiritual, and political development; and WHEREAS, the City of Englewood strives to be an inclusive community in which all citizens—past, present, and future—are respected and recognized for their contributions and potential contributions to our community, the state, the country, and the world; and, WHEREAS the City stablished the staff-based Diversity, Equity & Inclusion Committee made up of 19 staff members from all departments that unanimously approved a recommendation establishing January as Black History Month in Englewood; WHEREAS the City of Englewood is proud to honor the history and contributions of black people in our community and throughout our state and nation; Page 3 of 78 2 NOW, THEREFORE, BE IT PROCLAIMED THAT, I Othoniel Sierra, Mayor of the City of Englewood, Colorado (“the City”) and the City Council, hereby proclaim: January as Black History Month in the City of Englewood and encourage all residents to consider the many contributions of black Americans to our community and world. GIVEN under my hand and seal this 28th day of February, 2022 Othoniel Sierra, Mayor Page 4 of 78 STUDY SESSION TO: Mayor and Council FROM: Kevin Engles DEPARTMENT: Finance DATE: February 28, 2022 SUBJECT: Preliminary December Monthly Financial Report DESCRIPTION: Preliminary December Monthly Financial Report RECOMMENDATION: Director of Finance, Jackie C. Loh, will review the 2021 YTD December Preliminary Financial Report. PREVIOUS COUNCIL ACTION: Staff provides financial updates to City Council each month. During the Study Session discussion, the Director of Finance will review the 2021 December Preliminary General Fund financials by revenues and expenditures. Sales & Use Tax collections by area are also included in the Appendix of the attached presentation. As per Council request, the PowerPoint slides have been changed as described below: • One-time revenue and expenditures for 2021 and 2020 are subtracted from the report. • The sign for expenditure variances is changed to ensure consistency between revenue and expenditures. A year over year (YOY) increase to a revenue or an expenditure is listed as a positive number while a decrease is shown as a negative number. • Changing the Fund Balance Composition slide, second to the last line, from “Reserve available above policy” to “Balance available above reserve policy” to distinguish reserves from the available balance. The year-end revenue estimates used to calculate the reserves are updated. • The Englewood Urban Renewal Authority (EURA) areas are removed from the new sales tax area map. SUMMARY: Through December 2021, the City of Englewood's General Fund receipts total $54,450,000 this amount is 103.6% of budgeted revenue, or $3,581,000 higher than the same time of 2020. Total revenue YTD is tracking 7.0% higher than the same period in 2020. Expenditures YTD are $52,953,000 or 90.2% of the fiscal year budget. The total expenditures YTD are $5,300,000 higher than those of 2020. ANALYSIS: Revenue highlights are below: Page 5 of 78 • Sales & Use Tax remittances total $33,690,000 and are 103.6% of fiscal budgeted revenue; Sales & Use Tax received is $1,841,000 higher than the same time last year. Of the $1,8741,000 variance, $300,000 is due to closing a liability account for an expired potential incentive program. Additionally, the Sales & Use Tax audits and voluntary disclosure collections amount to $806,000, which is not in the amended budget. Lastly, as part of the year-end accrual adjustments, approximately $500,000 Sales & Use Tax received in January 2022 for December 2021 will be recorded back to 2021. • Marijuana Sales Tax accounts for $1,898,000 of the total Sales & Use Tax revenue YTD and is slightly lower than 2020. • Licenses & Permits Revenue total $2,218,000, and are 185.3% of budgeted revenue. Compared to last year, this positive variance is mainly due to several large development plan review fees totaling $350,000. • Parks, Recreation, Library & Golf (PRLG) YTD revenue of $2,360,000 is $1,362,000 above last year. The facilities were operating at reduced capacity during 2020 due to COVID-19 but reopened at full capacity on May 16, 2021. • American Rescue Plan Act (ARPA)-the city has been awarded $8,776,000 which will be received in two allocations of $4,338,000 each. The first allocation was received on June 29, 2021. The US Department of Treasury issued the final rule, including Standard Allowance, in early January 2022, which permits all cities with population less than 50,000 to use up to $10M under the Lost Revenue Provision. For 2021, the General Fund has recognized $689,000 of the ARPA funds; of which, $50,000 is committed for Workforce Training, $30,000 for Vaccines, and $609,000 for Homelessness. A budget supplemental for the proposed uses/allocations will be presented to Council in April • Investment Earnings are negative, and $526,000, less than the same time last year, due to a rise in interest rates. The portfolio, predominantly in bonds, is valued at market value each month, so earnings can fluctuate when interest rates move in either direction. • Englewood McLellan Reservoir Foundation (EMRF) leases contain periodic rate increase terms. Rates have increased on several of the leases since January 2021. • Misc. Revenues are up due to the health insurance savings of $547,000. Expenditures highlights are below: • Part of the variances are due to the 3.5% salary increase per the Englewood Police Bargaining Association (EPBA) and Englewood Employee Association (EEA) contracts and 2.5% for the rest of the staff. Additionally, approximately $400,000 of optional leave was paid out in March. • Parks, Recreation and Library expenditures are $1,376,000 above 2020 due to facilities returning to full capacity starting on May 16, 2021. • Human Resources has been charged $120,000 more for the Human Resources Information System (HRIS) modifications. • Community Development is $503,000 higher than the 2020 amount due to additional economic development grants approved in the budget supplemental. The Operating Surplus (Excess Revenues over Expenditures) is $1,497,000, compared to the original Budgeted Operating Deficit of $1,986,000. The $131,000 transfer from the Public Improvement Fund for Debt Services and $3,000,000 transfer out for capital projects are included in the original Budgeted Operating Deficit. Page 6 of 78 After including the changes in Budget Supplementals #1, 2, 3, and 4, the amended Budgeted Operating Deficit is $6,172,000 (amended Budgeted Expenditures over original Budgeted Revenues). The amended Budgeted Expenditures include an additional $2.8M for the remaining outstanding balance for COP but repayment of the COP debt is not anticipated until June 2022. The General Fund Transfers slide shows $165,000 transfers into the General Fund and $11,130,000 transfers out of the General Fund, resulting in a net transfer of $10,965,000 out of the General Fund. A transfer out of $150,000 to advance the Englewood Downtown Development Authority’s (EDDA) first year operations is added to slide #14. After the Council approves the loan agreement on February 22nd, the advance will be reclassified as a loan. The General Fund – Fund Balance Composition slide shows a YTD Deficit of $8,479,000, including the Operating Surplus of $2,486,000 and a net transfer of $10,965,000 out of the General Fund. COUNCIL ACTION REQUESTED: Staff will review the current financial report with Council monthly and welcomes questions and discussion. FINANCIAL IMPLICATIONS: Information included above. CONNECTION TO STRATEGIC PLAN: Governance: Assist the City to become fiscally accountable, effective and efficient. OUTREACH/COMMUNICATIONS: N/A ATTACHMENTS: 2021 YTD December-preliminary Financial Report Page 7 of 78 Preliminary December 2021Monthly Financial Report Jackie Loh, Director of Finance Page 8 of 78 •As of December, 2021, revenues to date covered 103.6% of the Fiscal Year 2021 budget. •In December, 2020, revenues to date covered 94.5% of the Fiscal Year 2020 budget •The business sector with the highest tax revenue is Miscellaneous Specialty Retail Store. The sector with the highest percentage increase from this time last year is Marketplace Facilitators •Sales and Use Tax Revenue is higher than at this time of the year in both 2020 and 2019 General Fund Revenues Page 9 of 78 General Fund Revenues •Excludes $300,000 for a one-time sales tax liability adjustment (2021) •Excludes $689,000 for ARPA funding (2021) •Excludes $2,842,000 in CARES funding (2020) •2021 Parks Recreation and Library revenues are higher primarily due to COVID shutdowns (2020) 2021 2020 Amended Budget Dec-21 % Budget Dec-20 Dec-20 % YTD $ Diff % Diff Revenues Property Tax 4,624,000 4,644,000 100.4%4,606,000 4,606,000 100.0%38,000 0.0% Specific Ownership Tax 450,000 523,000 116.2%528,000 528,000 100.0%(5,000) 0.0% Sales & Use Taxes 32,528,000 31,792,000 97.7%29,921,000 29,921,000 100.0%1,871,000 6.3% Sales Tax - Marijuana - 1,898,000 1,928,000 1,928,000 0.0%(30,000) -1.6% Cigarette Tax 170,000 182,000 107.1%169,000 169,000 100.0%13,000 7.7% Franchise Fees 3,594,000 3,595,000 100.0%3,602,000 3,602,000 100.0%(7,000) -0.2% Hotel/Motel Tax 25,000 28,000 112.0%20,000 20,000 100.0%8,000 40.0% Licenses & Permits 1,197,000 2,218,000 185.3%1,649,000 1,649,000 100.0%569,000 34.5% Intergovernmental Revenue 1,144,000 1,297,000 113.4%4,040,000 1,105,000 27.4%192,000 17.4% Charges for Services 2,963,000 2,598,000 87.7%2,810,000 2,810,000 100.0%(212,000) -7.5% Parks and Recreation 2,336,000 2,360,000 101.0%998,000 998,000 100.0%1,362,000 136.5% Fines & Forfeitures 659,000 516,000 78.3%883,000 883,000 100.0%(367,000) -41.6% Investment Earnings 455,000 (72,000) -15.8%454,000 454,000 100.0%(526,000) -115.9% EMRF Rents 1,700,000 1,762,000 103.6%1,699,000 1,699,000 100.0%63,000 3.7% Miscellaneous 691,000 1,109,000 160.5%497,000 497,000 100.0%612,000 123.1% Total Revenues 52,536,000 54,450,000 103.6%53,804,000 50,869,000 94.5%3,581,000 7.0% 2021 vs 2020 Page 10 of 78 Sales and Use Tax Revenues Page 11 of 78 Sales and Use Tax Revenues Page 12 of 78 2017-2021 Cumulative Change in Sales and Use Tax Collected $6.0 million increase since 2017 Page 13 of 78 City of Englewood Sales Tax Area Map Page 14 of 78 YTD Sales & Use Tax Collections by Area Busines s Area $ YTD Variance CY vs PY % YTD Variance CY vs PY YTD New Businesses YTD Closed Businesses YTD Net New (Closed) Businesses Comments Area 1 144,704 4.09%22 (33) (11) Area 2 224,825 9.27%29 (25) 4 Area 3 339,635 11.92%31 (33) (2) Area 4 70,023 5.61%5 (3) 2 Area 5 (131,396) -5.90%11 (14) (3) Area 6 399,981 10.03%121 (97) 24 Area 7 1,425,543 12.60%558 (467) 91 Area 8 185,874 13.51%- - - Area 13 (27,110) -6.51%2 (1) 1 Area 14 22,109 200.00%3 (1) 2 Regular Use (626,004) -22.34%N/A N/A N/A Use tax revenue fluctuates depending on the timing of when businesses replace large ticket items such as operating machinery and equipment. If items purchased outside of Englewood at a local tax rate less than 3.5%, then the tax payer is liable for the difference between the local tax paid and 3.5% tax due. Totals 2,028,185 6.28%782 (674) 108 Page 15 of 78 YTD Sales & Use Collections by Area 2020 2021 % Change $ Change Total Sales & Use Tax Collected 32,304,430$ 34,332,615$ 6.3%2,028,185$ Refunds 267,887$ 173,628$ -35.2%(94,259)$ Unearned Sales Tax 2,050,000$ 2,050,000$ 0.0%-$ Page 16 of 78 3 Year Avg YTD Sales Tax Collected by Area Area 13 $418,419 Area 14 $138,656Page 17 of 78 •In December, 2021, 90.2% of the 2021 budget had been expended •In December, 2020, 93.2% of the 2020 budget had been expended •To date, $165,000 has been transferred into the General Fund, and $11,130,000 has been transferred out of the General Fund General Fund Expenditures Page 18 of 78 General Fund Expenditures •Parks, Recreation, Library and Golf spending is higher in 2021 than 2020 due to COVID-19 related closures and reductions in 2020. •Excludes $2,842,000 in COVID-19 expenditures funded by the CARES Act (2020) 2021 2020 Amended Budget Dec-21 % Budget Dec-20 Dec-20 % YTD $ Diff % Diff Expenditures Legislation 332,000 285,000 85.8%298,000 247,000 82.9%38,000 15.4% Administration 1,239,000 1,075,000 86.8%1,111,000 1,041,000 93.7%34,000 3.3% City Attorney 981,000 923,000 94.1%833,000 805,000 96.6%118,000 14.7% Court 1,321,000 1,133,000 85.8%1,048,000 1,022,000 97.5%111,000 10.9% Human Resources 1,166,000 1,035,000 88.8%948,000 918,000 96.8%117,000 12.7% Finance 1,821,000 1,533,000 84.2%1,557,000 1,478,000 94.9%55,000 3.7% Information Technology 3,973,000 3,516,000 88.5%3,524,000 3,185,000 90.4%331,000 10.4% Community Development 3,369,000 2,946,000 87.4%3,620,000 2,443,000 67.5%503,000 20.6% Public Works 7,745,000 7,471,000 96.5%7,341,000 6,852,000 93.3%619,000 9.0% Police 15,431,000 15,381,000 99.7%14,453,000 13,819,000 95.6%1,562,000 11.3% Fire and Emergency Management 7,364,000 7,247,000 98.4%6,851,000 6,842,000 99.9%405,000 5.9% Parks, Recreation and Library 8,491,000 7,830,000 92.2%6,778,000 6,454,000 95.2%1,376,000 21.3% Communications 765,000 728,000 95.2%862,000 702,000 81.4%26,000 3.7% Debt Service 4,375,000 1,569,000 35.9%1,566,000 1,573,000 100.4%(4,000) -0.3% Contingency 335,000 281,000 83.9%336,000 272,000 81.0%9,000 0.0% Total Expenditures 58,708,000 52,953,000 90.2%51,126,000 47,653,000 93.2%5,300,000 11.1% 2021 vs 2020 Page 19 of 78 General Fund Transfers 2021 General Fund Transfers Transfers into the General Fund From the Public Improvement Fund for debt service 131,000$ From the Risk Management Fund for the transfer of .25 FTE costs 34,000 Total transfers into the General Fund 165,000$ Transfers out of the General Fund To the Public Improvement Fund for capital projects 9,845,000 To the Capital Projects Fund for capital projects 985,000 To the Water Fund for the utility bill Customer Assistance Program 50,000 To the EDDA Fund for the first year advance (becomes a loan in 2022)150,000 To the Capital Equipment Replacement Fund for additional vehicle purchases 100,000 Total transfers out of the General Fund 11,130,000$ Page 20 of 78 2017 2018 2019 2020 2021 YTD Surplus/ (Deficit) 2021 YTD Actual Balances TABOR - Restricted 1,580,000 1,740,000 1,730,000 1,720,000 - 1,720,000 LTAR - Committed 3,385,000 4,995,000 4,995,000 4,995,000 - 95,000 Unassigned Fund Balance 9,166,000 13,683,000 15,406,000 18,221,000 (8,479,000) 14,642,000 Total Fund Balance 14,131,000$ 20,418,000$ 22,131,000$ 24,936,000$ (8,479,000)$ 16,457,000$ Reserve = Unassigned + LTAR +12,551,000$ 18,678,000$ 20,401,000$ 23,216,000$ 14,737,000$ ARPA funding-restricted -$ -$ -$ -$ $689,000 Reserve Policy = 16.7% of total revenues ---7,806,000$ 8,422,000$ 8,599,000$ 9,007,000$ 9,258,000$ Balance available above reserve policy 4,745,000$ 10,256,000$ 11,802,000$ 14,209,000$ 4,790,000$ % of Total Revenues 10.1%20.3%22.9%26.3%8.6% $0.0 $2.5 $5.0 $7.5 $10.0 $12.5 $15.0 $17.5 $20.0 $22.5 $25.0 $27.5 2017 2018 2019 2020 2021 YTD Balance TABOR - Restricted LTAR - Committed Unassigned Fund Balance Reserve Policy = 16.7% of total revenues General Fund-Fund Balance Composition (in millions)Page 21 of 78 Appendix-Area Sales Tax Slides Page 22 of 78 Area 1 Sales Tax CityCenter (Formerly Cinderella City) 3,622,901 3,690,883 3,721,518 3,535,185 3,679,889 0 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000 3,000,000 3,250,000 3,500,000 3,750,000 2017 2018 2019 2020 2021 Page 23 of 78 Area 2 Sales Tax South of Yale, north & south side of Jefferson Ave/US 285 between Bannock and Sherman 2,081,311 2,227,779 2,409,115 2,424,325 2,649,150 0 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000 2017 2018 2019 2020 2021 Page 24 of 78 Area 3 Sales Tax S of Jefferson Ave/US 285 between Bannock & Sherman and north side of Belleview between Logan & Delaware 2,117,039 2,439,475 2,593,602 2,848,111 3,187,746 0 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000 3,000,000 3,250,000 2017 2018 2019 2020 2021 Page 25 of 78 Area 4 Sales Tax Broadway and Belleview (Between Fox and Sherman and south of Belleview and to the southern City Limits) 1,488,536 1,302,845 1,252,543 1,248,498 1,318,521 0 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 2017 2018 2019 2020 2021Page 26 of 78 Area 5 Sales Tax Area 5 -Federal and Belleview W of Santa Fe Drive 998,249 1,511,095 1,827,743 2,226,251 2,094,855 0 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2017 2018 2019 2020 2021 Page 27 of 78 Area 6 Sales Tax Area 6 -All other City locations 3,624,521 4,284,780 4,251,043 3,987,700 4,387,680 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 2017 2018 2019 2020 2021 Page 28 of 78 Area 7 Sales Tax Area 7 -Outside City limits 9,012,124 9,740,468 10,668,186 11,316,690 12,742,233 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 11,000,000 12,000,000 13,000,000 2017 2018 2019 2020 2021 Page 29 of 78 Area 8 Sales Tax Public Utilities 1,484,537 1,441,122 1,445,049 1,375,391 1,561,265 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2017 2018 2019 2020 2021 Page 30 of 78 Area 13 Sales Tax Area 13 -Hampden Avenue (US 285) and University Boulevard 391,912 432,257 416,140 389,030 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 2017 2018 2019 2020 2021Page 31 of 78 Area 14 Sales Tax Online Sales Footnote: Most of the online sales collected are included in Area 7 slide. 0 196,139 144,749 124,555 146,665 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 2017 2018 2019 2020 2021 Page 32 of 78 Regular Use Tax 3,468,529 3,134,501 2,933,374 2,801,584 2,175,580 0 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2,250,000 2,500,000 2,750,000 3,000,000 3,250,000 3,500,000 2017 2018 2019 2020 2021 Page 33 of 78 STUDY SESSION TO: Mayor and Council FROM: Kevin Engles DEPARTMENT: Finance DATE: February 28, 2022 SUBJECT: January 2022 Monthly Financial Report DESCRIPTION: Finance Manager Kevin Engels to review with City Council the January 2022 Financial Report RECOMMENDATION: Finance Manager, Kevin Engels, will review the 2022 January Financial Report. PREVIOUS COUNCIL ACTION: Staff provides financial updates to City Council each month. During the Study Session discussion, the Director of Finance will review the 2022 January General Fund financials by revenues and expenditures. Sales & Use Tax by areas are also included in the Appendix of the attached presentation. SUMMARY: Through January 2022, the City of Englewood's General Fund receipts total $5,413,000 this amount is 9.8% of budgeted revenue, or $225,000 higher than the same time of 2021. Total revenue YTD is tracking 4.3% higher than the same period in 2021. Expenditures YTD are $4,650,000 or 8.4% of the fiscal year budget. The total expenditures YTD are $453,000 higher than those of 2021. As per Council request, the PowerPoint slides have been changed as described below: • One-time revenue and expenditures for 2022 and 2021 are subtracted from the operating slides as noted. ANALYSIS: Revenue highlights are below: • Sales & Use Tax remittances total $4,269,000 and are 12.2% of fiscal budgeted revenue; Sales & Use Tax received is $74,000 higher than the same time last year. Additionally, the Sales & Use Tax audits and voluntary disclosure collections amount to $46,000, which is not in the amended budget. Lastly, approximately $500,000 Sales & Use Tax received in January 2022 for December 2021 will be recorded back to 2021. • Marijuana Sales Tax accounts for $149,000 of the total Sales & Use Tax revenue YTD and is slightly lower than 2021. • Intergovernmental Revenue is higher in 2022 due to the timing of a $68,000 receipt. • Licenses & Permits Revenue total $273,000, and are 14.9% of budgeted revenue. Compared to last year, this positive variance is mainly due to one large development plan review fee totaling $96,000. Page 34 of 78 • Parks, Recreation, Library & Golf (PRLG) YTD revenue of $73,000 is $40,000 above last year. The facilities were operating at reduced capacity during 2021 due to COVID-19 but reopened at full capacity on May 16, 2021. • ARPA-the city has been awarded $8,776,000 which will be received in two allocations of $4,338,000 each. The first allocation was received on June 29th 2021. The US Department of Treasury issued the final ARPA rule, in early January 2022. The final rule contains a “Standard Allowance” which permits all cities with population less than 50,000 to use up to $10M under the Lost Revenue Provision. For 2021, the General Fund has recognized $689,000 of the ARPA funds; of which, $50,000 is committed for Workforce Training, $30,000 for Vaccines, and $609,000 for Homelessness. A budget supplemental for the proposed allocation is expected to be presented to Council in April. • Investment Earnings are negative, and $71,000, less than the same time last year, due to a rise in interest rates. The portfolio, predominantly in bonds, is valued at market value each month, so earnings can fluctuate when interest rates move in either direction. Expenditures highlights are below: • Across all departments, part of the variances are due to the 3.5% salary increase per the Englewood Police Bargaining Association (EPBA) and Englewood Employee Association (EEA) contracts and 3.5% for the rest of the staff. • The Legislation expenditures are higher in 2022 due to the timing of a $36,000 payment. • The Information Technologies expenditures are higher in 2022 due the timing of $300,000 for software licenses. • Parks, Recreation and Library expenditures are $52,000 above 2021 due to facilities being at full capacity in 2022. • Human Resources has been charged $120,000 more for the HRIS. The YTD Operating Surplus (Excess Revenues over Expenditures) is $763,000, compared to the original Budgeted Operating Deficit of ($22,000). There is a $134,000 transfer from the Public Improvement Fund for Debt Service. This Operating Surplus excludes one-time items. The General Fund – Fund Balance Composition slide #14 shows a YTD Total surplus of $1,723,000, including the Operating Surplus of $1,589,000 and a net transfer in of $134,000. This surplus includes one-time items. Both December 2021 and January 2022 revenues and expenditures will continue to change as the City completes it annual financial audit process. Final audited results for 2021 are expected to be presented to Council late in the 2nd quarter of 2022. COUNCIL ACTION REQUESTED: Staff will review the current financial report with Council monthly and welcomes questions and discussion. FINANCIAL IMPLICATIONS: Information included above. CONNECTION TO STRATEGIC PLAN: Page 35 of 78 Governance: Assist the City to become fiscally accountable, effective and efficient. OUTREACH/COMMUNICATIONS: N/A ATTACHMENTS: 2022 January Financial Report Page 36 of 78 January 2022Monthly Financial Report Kevin Engels, Finance Manager Page 37 of 78 •As of January, 2022, revenues to date covered 9.8% of the Fiscal Year 2022 budget. •In January 2021, revenues to date covered 9.4% of the Fiscal Year 2021 budget •The business sector with the highest tax revenue is Miscellaneous Specialty Retail Store. The sector with the highest percentage increase from this time last year is Marketplace Facilitators •Sales and Use Tax Revenue is higher than at this time of the year in both 2021 and 2020 •Operating revenues exclude one-time items as noted General Fund Operating Revenues Page 38 of 78 General Fund Operating Revenues •Excludes $188,000 for sale of Fire Training Academy (2022) •Excludes $138,000 for health insurance savings (2022) •Excludes $500,000 for approximate accrual of 2021 sales tax (2022) •2022 Parks Recreation and Library revenues are higher primarily due to COVID shutdowns in 2021 2022 2021 Amended Budget Jan-22 % Budget Dec-21 Jan-21 % YTD $ Diff % Diff Revenues Property Tax 5,171,000 - 0.0%4,644,000 - 0.0%- 0.0% Specific Ownership Tax 530,000 - 0.0%523,000 - 0.0%- 0.0% Sales & Use Taxes 33,779,000 4,120,000 12.2%32,092,000 4,015,000 12.5%105,000 2.6% Sales Tax - Marijuana - 149,000 1,898,000 180,000 0.0%(31,000) -17.2% Cigarette Tax 170,000 16,000 9.4%182,000 18,000 9.9%(2,000) -11.1% Franchise Fees 3,665,000 280,000 7.6%3,595,000 271,000 7.5%9,000 3.3% Hotel/Motel Tax 20,000 6,000 30.0%28,000 2,000 7.1%4,000 200.0% Licenses & Permits 1,829,000 273,000 14.9%2,218,000 203,000 9.2%70,000 34.5% Intergovernmental Revenue 1,208,000 79,000 6.5%1,986,000 5,000 0.3%74,000 1480.0% Charges for Services 3,401,000 198,000 5.8%2,598,000 177,000 6.8%21,000 11.9% Parks and Recreation 2,619,000 73,000 2.8%2,360,000 33,000 1.4%40,000 121.2% Fines & Forfeitures 531,000 24,000 4.5%516,000 40,000 7.8%(16,000) -40.0% Investment Earnings 55,000 (68,000) -123.6%(72,000) 3,000 -4.2%(71,000) -2366.7% EMRF Rents 1,700,000 152,000 8.9%1,762,000 148,000 8.4%4,000 2.7% Miscellaneous 806,000 111,000 13.8%1,109,000 93,000 8.4%18,000 19.4% Total Revenues 55,484,000 5,413,000 9.8%55,439,000 5,188,000 9.4%225,000 4.3% 2022 vs 2021 Page 39 of 78 Sales and Use Tax Revenues Page 40 of 78 Sales and Use Tax Revenues Page 41 of 78 2018-2022 Cumulative Change in Sales and Use Tax Collected $6.4 million increase since 2018 Page 42 of 78 City of Englewood Sales Tax Area Map Page 43 of 78 YTD Sales & Use Tax Collections by Area Busines s Area $ YTD Variance CY vs PY % YTD Variance CY vs PY YTD New Businesses YTD Closed Businesses YTD Net New (Closed) Businesses Comments Area 1 10,635 3.05%2 (5) (3) Area 2 4,599 1.78%- - - Area 3 49,760 15.16%1 (2) (1) Area 4 37,107 48.87%1 (1) - Area 5 (20,085) -8.85%3 (2) 1 Area 6 110,040 27.61%10 (14) (4) Area 7 416,347 21.36%69 (108) (39) Area 8 6,896 5.00%- - - Area 13 (7,346) -14.56%- - - Area 14 146,631 300.00%- (1) (1) Marketplace Facilitators was added to this area in 2022. Regular Use (193,076) -45.11%N/A N/A N/A Use tax revenue fluctuates depending on the timing of when businesses replace large ticket items such as operating machinery and equipment. If items purchased outside of Englewood at a local tax rate less than 3.5%, then the tax payer is liable for the difference between the local tax paid and 3.5% tax due. Totals 561,508 13.27%86 (133) (47) Page 44 of 78 YTD Sales & Use Collections by Area 2018-2022 2021 2022 % Change $ Change Total Sales & Use Tax Collected 4,232,181$ 4,793,690$ 13.3%561,508$ Refunds -$ 2,486$ ---2,486$ Unearned Sales Tax 2,050,000$ 2,050,000$ 0.0%-$ Page 45 of 78 3 Year Avg YTD Sales Tax Collected by Area Area 13 $48,306 Area 14 $76,387Page 46 of 78 •In January 2022, 8.4% of the 2022 budget had been expended •In January 2021, 7.9% of the 2021 budget had been expended •To date, $134,000 has been transferred into the General Fund for debt service General Fund Operating Expenditures Page 47 of 78 General Fund Expenditures •Parks, Recreation, Library and Golf spending is higher in 2022 than 2021 due to COVID-19 related partial closures and capacity reductions •Information Technology is higher in 2022 due to the timing of $300,000 in software license payments 2022 2021 Amended Budget Jan-22 % Budget Dec-21 Jan-21 % YTD $ Diff % Diff Expenditures Legislation 322,000 40,000 12.4%285,000 8,000 2.8%32,000 400.0% Administration 1,131,000 47,000 4.2%1,075,000 46,000 4.3%1,000 2.2% City Attorney 1,092,000 44,000 4.0%923,000 63,000 6.8%(19,000) -30.2% Court 1,510,000 46,000 3.0%1,133,000 47,000 4.1%(1,000) -2.1% Human Resources 1,546,000 26,000 1.7%1,035,000 34,000 3.3%(8,000) -23.5% Finance 2,090,000 68,000 3.3%1,533,000 78,000 5.1%(10,000) -12.8% Information Technology 3,649,000 520,000 14.3%3,516,000 161,000 4.6%359,000 223.0% Community Development 3,007,000 172,000 5.7%2,946,000 150,000 5.1%22,000 14.7% Public Works 7,809,000 917,000 11.7%7,471,000 845,000 11.3%72,000 8.5% Police 15,831,000 983,000 6.2%15,381,000 1,052,000 6.8%(69,000) -6.6% Fire and Emergency Management 7,545,000 1,141,000 15.1%7,247,000 1,100,000 15.2%41,000 3.7% Parks, Recreation and Library 8,607,000 595,000 6.9%7,830,000 543,000 6.9%52,000 9.6% Communications 764,000 18,000 2.4%728,000 25,000 3.4%(7,000) -28.0% Debt Service 134,000 33,000 24.6%1,569,000 37,000 2.4%(4,000) -10.8% Contingency 469,000 - 0.0%281,000 8,000 2.8%(8,000) 0.0% Total Expenditures 55,506,000 4,650,000 8.4%52,953,000 4,197,000 7.9%453,000 10.8% 2022 vs 2021 Page 48 of 78 General Fund Transfers 2022 General Fund Transfers Transfers into the General Fund From the Public Improvement Fund for debt service 134,000$ Total transfers into the General Fund 134,000 Page 49 of 78 2017 2018 2019 2020 2021 2022 YTD Surplus/ (Deficit) 2022 YTD Actual Balances TABOR - Restricted 1,580,000 1,740,000 1,730,000 1,720,000 1,720,000 - 1,720,000 LTAR - Committed 3,385,000 4,995,000 4,995,000 4,995,000 95,000 - 95,000 Unassigned Fund Balance 9,166,000 13,683,000 15,406,000 18,221,000 14,642,000 1,723,000 16,365,000 Total Fund Balance 14,131,000$ 20,418,000$ 22,131,000$ 24,936,000$ 16,457,000$ 1,723,000$ 18,180,000$ Reserve = Unassigned + LTAR +12,551,000$ 18,678,000$ 20,401,000$ 23,216,000$ 14,737,000$ 16,460,000$ ARPA funding-restricted -$ -$ -$ -$ 689,000$ $689,000 Reserve Policy = 16.7% of total revenues ---7,806,000$ 8,422,000$ 8,599,000$ 9,007,000$ 9,258,000$ 9,249,000$ Balance available above reserve policy 4,745,000$ 10,256,000$ 11,802,000$ 14,209,000$ 4,790,000$ 6,522,000$ % of Total Revenues 10 1%20 3%22 9%26 3%8 6%11 8% $0.0 $2.5 $5.0 $7.5 $10.0 $12.5 $15.0 $17.5 $20.0 $22.5 $25.0 $27.5 2017 2018 2019 2020 2021 2022 YTD Balance TABOR - Restricted LTAR - Committed Unassigned Fund Balance Reserve Policy = 16.7% of total revenues General Fund-Fund Balance Composition (in millions)Page 50 of 78 Appendix-Area Sales Tax Slides Page 51 of 78 Area 1 Sales Tax CityCenter (Formerly Cinderella City) 391,121 373,776 377,908 348,173 358,807 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 2018 2019 2020 2021 2022 Page 52 of 78 Area 2 Sales Tax South of Yale, north & south side of Jefferson Ave/US 285 between Bannock and Sherman 242,606 231,752 242,586 258,645 263,245 0 50,000 100,000 150,000 200,000 250,000 2018 2019 2020 2021 2022 Page 53 of 78 Area 3 Sales Tax S of Jefferson Ave/US 285 between Bannock & Sherman and north side of Belleview between Logan & Delaware 246,535 252,194 272,146 328,161 377,921 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 2018 2019 2020 2021 2022 Page 54 of 78 Area 4 Sales Tax Broadway and Belleview (Between Fox and Sherman and south of Belleview and to the southern City Limits) 115,715 115,272 131,342 75,929 113,036 0 25,000 50,000 75,000 100,000 125,000 150,000 2018 2019 2020 2021 2022 Page 55 of 78 Area 5 Sales Tax Area 5 -Federal and Belleview W of Santa Fe Drive 160,388 182,461 217,864 227,027 206,941 0 50,000 100,000 150,000 200,000 250,000 2018 2019 2020 2021 2022 Page 56 of 78 Area 6 Sales Tax Area 6 -All other City locations 395,994 443,027 401,658 398,597 508,637 0 75,000 150,000 225,000 300,000 375,000 450,000 525,000 2018 2019 2020 2021 2022 Page 57 of 78 Area 7 Sales Tax Area 7 -Outside City limits 1,545,541 2,104,841 1,921,512 1,949,598 2,365,946 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 2018 2019 2020 2021 2022 Page 58 of 78 Area 8 Sales Tax Public Utilities 126,898 133,356 125,979 137,989 144,884 0 25,000 50,000 75,000 100,000 125,000 150,000 2018 2019 2020 2021 2022 Page 59 of 78 Area 13 Sales Tax Area 13 -Hampden Avenue (US 285) and University Boulevard 48,569 51,941 51,361 50,451 43,105 0 15,000 30,000 45,000 60,000 75,000 2018 2019 2020 2021 2022 Page 60 of 78 Area 14 Sales Tax Online Sales Footnote: Most of the online sales collected are included in Area 7 slide. In 2022 the Marketplace Facilitators were added to this reporting area. 45,094 18,579 23,253 29,639 176,270 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 2018 2019 2020 2021 2022 Page 61 of 78 Regular Use Tax 602,674 460,650 313,403 427,971 234,894 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 2018 2019 2020 2021 2022 Page 62 of 78 STUDY SESSION TO: Mayor and Council FROM: Jackie McKinnon, Tamara Niles DEPARTMENT: City Attorney's Office, City Clerk's Office DATE: February 28, 2022 SUBJECT: Presentation on newly-created State Festival Permits, and Consideration of a Local Permit DESCRIPTION: Presentation on revision to Colorado law regarding Festival Permits, to determine whether City will issue a local festival permit. RECOMMENDATION: Receive presentation on Colorado Festival Permits, and provide direction to staff whether to draft an Ordinance creating a local Festival Permit. PREVIOUS COUNCIL ACTION: None SUMMARY: Effective September 2021, Colorado law created a new type of liquor license: a Festival Permit. ANALYSIS: On May 8, 2021, Colorado Governor Jared Polis signed into law SB 21-082, amending CRS 44- 3-404 creating a state alcohol festival permit. The act authorizes the following alcohol beverage licensees to obtain a festival permit, which would allow the licensees to hold festivals where they may conduct joint tastings and engage in any retail operations authorized by their licenses or permits: • A beer and wine licensee; • A hotel and restaurant licensee; • A tavern licensee; • A brew pub licensee; • A vintner's restaurant licensee; • A distillery pub licensee; • A winery or limited winery licensee; • A spirits manufacturer; and • A beer manufacturer. Licensees may obtain a permit to hold up to 9 festivals in 12 months throughout the State of Colorado, with each festival lasting no longer than 72 hours. A permitted festival authorizes participants to sell and serve alcohol at the festival location just as they would be able to at their regular licensed premises. Page 63 of 78 Local licensing authorities like Englewood may create a local permit for these festivals held within the City. A local permit is not required to have a festival within the City --if no local permit is created, only a state permit is required. While there is no requirement that the City take action regarding festival permits, without a local permit: The City/Police Department may not be notified of the event The City cannot place reasonable restrictions on the festival, such as location limitations, fencing, health and safety regulations To ensure we would not be required to further amend EMC 5-3C-3 (public consumption of alcohol) to authorize alcohol consumption during locally-permitted festivals, Ord. 1, Series of 2022 specifically referenced that a local festival permit, if issued under the liquor code, is as an exemption on the prohibition of consumption of alcohol on public property in EMC 5-3C-3(B)(2): (2) The Englewood Liquor Licensing Authority may grant a special event permit or festival permit under the procedures set forth in the liquor code. Whether to amend the liquor code to allow for a local festival permit, however, is solely within the discretion of City Council. COUNCIL ACTION REQUESTED: Direct the City Attorney's Office as to whether it should draft an Ordinance amending Englewood Municipal Code 5-3A-9 to create a local Festival Permit. FINANCIAL IMPLICATIONS: This field is now required. Please contact City Clerk's office with questions. ATTACHMENTS: SB21-082 PowerPoint Page 64 of 78 SENATE BILL 21-082 BY SENATOR(S) Priola and Pettersen, Bridges, Gardner, Jaquez Lewis, Lundeen, Moreno, Smallwood, Winter; also REPRESENTATIVE(S) Mullica and Williams, Baisley, Bernett, Bockenfeld, Boesenecker, Cutter, Gray, Herod, Hooton, Jackson, Kipp, McCluskie, McCormick, Michaelson Jenet, Ortiz, Pico, Sandridge, Snyder, Titone, Valdez A., Van Winkle. CONCERNING AUTHORIZATION FOR CERTAIN ALCOHOL BEVERAGE LICENSE HOLDERS TO HOLD FESTIVALS FOR ALCOHOL BEVERAGE RETAIL ACTIVITY, AND, IN CONNECTION THEREWITH, MAKING AN APPROPRIATION. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 44-3-301, amend (3)(a) as follows: 44-3-301. Licensing in general. (3) (a) Each license issued under this article 3 and article 4 of this title 44 is separate and distinct. It is unlawful for any person to exercise any of the privileges granted under any license other than the license the person holds or for any licensee to allow any other person to exercise the privileges granted under the licensee's Capital letters or bold & italic numbers indicate new material added to existing law; dashes through words or numbers indicate deletions from existing law and such material is not part of the act. Page 65 of 78 license, except as provided in section 44-3-402 (3), 44-3-403 (2)(a), 44-3-404, or 44-3-417 (1)(b). A separate license must be issued for each specific business or business entity and each geographic location, and in the license the particular alcohol beverages the applicant is authorized to manufacture or sell must be named and described. For purposes of this section, a resort complex with common ownership, a campus liquor complex, a hotel and restaurant licensee with optional premises, an optional premises licensee for optional premises located on an outdoor sports and recreational facility, and a wine festival at which more than one licensee participates pursuant to a wine festival permit is considered a single business and location. SECTION 2. In Colorado Revised Statutes, 44-3-404, amend (1), (2), (4) introductory portion, (5), (6), and (7); and add (9) and (10) as follows: 44-3-404. Festival permit - rules. (1) (a) A wine PERSON LISTED IN SUBSECTION (9) OF THIS SECTION MAY FILE A festival permit application marbe-fried with the state licensing authority. by any lin-ritcd win ry liccnscc or by any manu ac ur r liccnscc that is liccnscd to manu ac urc vinous liquors. The applicant shall MUST: (I) Specify the licensed premises for the first of the wine festivals to be held, which application filcd (II) FILE THE APPLICATION at least ten business days before the festival is to be held, Tire-applientit-slrali AND (III) Include a twenty-five dollar annual processing fee with the application filed with the state licensing authority. (b) (I) A LOCAL LICENSING AUTHORITY MAY CREATE A LOCAL PERMIT FOR FESTIVALS; EXCEPT THAT A LIMITED WINERY LICENSEE OR WINERY LICENSEE NEED NOT OBTAIN A LOCAL PERMIT TO PARTICIPATE IN OR HOLD A FESTIVAL. IF A LOCAL LICENSING AUTHORITY DOES NOT CREATE A LOCAL PERMIT UNDER THIS SUBSECTION (1)(b), AN APPLICANT NEED NOT OBTAIN A LOCAL PERMIT UNDER THIS SUBSECTION (1)(b) TO CONDUCT FESTIVALS. (II) IF A LICENSEE IS APPLYING FOR BOTH A FESTIVAL PERMIT AND A SPECIAL EVENT LIQUOR PERMIT ISSUED UNDER ARTICLE 5 OF THIS TITLE 44, PAGE 2-SENATE BILL 21-082 Page 66 of 78 THE LICENSEE NEED NOT APPLY FOR ANY LOCAL PERMIT ESTABLISHED IN ACCORDANCE WITH SUBSECTION (1)(b)(I) OF THIS SECTION. (c) -Strelrfee-shalf entitte-the-permitteetertts-e-the-vvine-festivalvermit fortwelve-mrinths-lrfter-the--clate-of isstrance7-scriong--as-the-permittee notiftes-the-state-ikensing-authoritr ancl-the-appropr'ate local liee116111g autilority-aftile-foration-of ati-erther wine-festivals-underthis-permitaat-fea-st teir business--clays-lyefore-anr streh-festival-is-to-be-heiti-7---A-wine-festirat pennit-snal-Fentitie-th-e-pertrrittee-tcrfrafeFiro-tnore-than-nine-wine--f-estivais riuring-tne-tweive-montir period IF A FESTIVAL PERMITTEE NOTIFIES THE STATE LICENSING AUTHORITY AND THE APPROPRIATE LOCAL LICENSING AUTHORITY OF THE LOCATION OF AND DATES OF EACH FESTIVAL AT LEAST TEN BUSINESS DAYS BEFORE HOLDING THE FESTIVAL, THE PERMITTEE MAY HOLD UP TO, BUT NO MORE THAN, NINE FESTIVALS DURING THE TWELVE MONTHS AFTER THE FESTIVAL PERMIT IS ISSUED. (2) The-applicantshall-be-the-fieens-e-e-ffling-the-applieation, but ally wine-festival-perrnit-that-is-issued-as-a-restrit-of-sueh-appiiratiorr shafl-be considered-to-in-joint-1r heitl-brthe-perrnittre--anci-the-partieipatingiimitecl winerrheensers7or manufacturer fie-ensees-thatare-lirensed-to-manufacture vinous liquors THE LICENSEE THAT HOLDS THE FESTIVAL MUST FILE THE APPLICATION FOR THE PERMIT, BUT OTHER LICENSEES MAY JOINTLY PARTICIPATE UNDER THE PERMIT ISSUED TO THE LICENSEE THAT APPLIED FOR THE PERMIT. (4) The state licensing authority may deny a wine festival permit or supplemental application for any of the following reasons: (5) After the issuance of an initial wine festival permit, all supplemental applications that are complete and filed in a timely manner shall be ARE deemed approved unless the state licensing authority provides the permittee with a notice of denial at least seventy-two hours prior to the date of the event. (6) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE 3, the permittee and participating licensees are authorized to use the licensed premises jointly to conduct wine ALCOHOL BEVERAGE tastings and sell any vinons-liquommanufaetureel-by-reerforacio-fintited-winerror manufacturer lieensed-termanufaetnre-vinotts-liquars7N-o-wine TO ENGAGE IN THE SAME RETAIL SALES OF ALCOHOL BEVERAGES THAT THE PERMITTEE AND PAGE 3-SENATE BILL 21-082 Page 67 of 78 PARTICIPATING LICENSEES ARE AUTHORIZED TO CONDUCT AT THEIR LICENSED PREMISES. A festival permit shall DOES NOT authorize the permittee to use the licensed premises for more than seventy-two hours for any one wine festival. (7) If a violation of this article 3 occurs during a wulc festival and the licensee responsible for the violation can be identified, the STATE OR LOCAL LICENSING AUTHORITY MAY CHARGE AND IMPOSE APPROPRIATE PENALTIES ON THE licensee. mar be-eharged-and-the-appropriate-perralties apply.shall If the responsible party cannot be identified, the state licensing authority may send a written notice to every licensee identified on the permit application and may fine each the same dollar amount, which amount-shall FINE MUST not exceed twenty-five dollars per licensee or two hundred dollars in the aggregate. No A joint fine levied pursuant to this subsection (7) shall DOES NOT apply to the revocation of the licensee's license under section 44-3-601. (9) THIS SECTION APPLIES TO A PERSON LICENSED UNDER SECTION 44-3-402, 44-3-403, 44-3-407, 44-3-411, 44-3-413, 44-3-414, 44-3-417, 44-3-422, OR 44-3-426. (10) THE STATE LICENSING AUTHORITY MAY ADOPT RULES NECESSARY TO IMPLEMENT AND ADMINISTER THIS SECTION. SECTION 3. In Colorado Revised Statutes, 44-5-103, amend (1)(b) as follows: 44-5-103. Grounds for issuance of special permits. (1) (b) If a violation of this article 5 or article 3 of this title 44 occurs during a special event wine festival and the responsible licensee can be identified, such THE STATE OR LOCAL LICENSING AUTHORITY MAY CHARGE AND IMPOSE APPROPRIATE PENALTIES ON THE licensee. may be chargcd and ic appropriatc pcnaltics may apply. If the responsible licensee cannot be identified, the state licensing authority may send written notice to every licensee identified on the permit applications and may fine each the same dollar amount. The fine shall not exceed twenty-five dollars per licensee or two hundred dollars in the aggregate. No A joint fine levied pursuant to this subsection (1)(b) shall DOES NOT apply to the revocation of a limited wineries LICENSEE'S license under section 44-3-601. PAGE 4-SENATE BILL 21-082 Page 68 of 78 SECTION 4. Appropriation. (1) For the 2021-22 state fiscal year, $511,210 is appropriated to the department of revenue. This appropriation is from the liquor enforcement division and state licensing authority cash fund created in section 44-6-101, C.R.S. To implement this act, the department may use this appropriation as follows: (a) $10,634 for use by the executive director's office for the purchase of legal services; (b) $35,370 for use by the executive director's office for vehicle lease payments; (c) $363,038 for use by the liquor and tobacco enforcement division for personal services, which amount is based on an assumption that the division will require an additional 6.2 FTE; and (d) $102,168 for use by the liquor and tobacco enforcement division for operating expenses. (2) For the 2021-22 state fiscal year, $10,634 is appropriated to the department of law. This appropriation is from reappropriated funds received from the department of revenue under subsection (1)(a) of this section and is based on an assumption that the department of law will require an additional 0.1 FTE. To implement this act, the department of law may use this appropriation to provide legal services for the department of revenue. (3) For the 2021-22 state fiscal year, $35,370 is appropriated to the department of personnel. This appropriation is from reappropriated funds received from the department of revenue under subsection (1)(b) of this section. To implement this act, the department of personnel may use this appropriation for vehicle replacement lease/purchase. SECTION 5. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in PAGE 5 -SENATE BILL 21-082 Page 69 of 78 November 2022 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor. . Garcia Alec Garnett PRESIDENT OF SPEAKER OF THE HOUSE THE SENATE OF REPRESENTATIVES Cindi L. Markwell SECRETARY OF THE SENATE Robin Jones CHIEF CLERK THE HOUSE OF REPRESENTATIVES APPROVED Mau 21,2021 vu ( 1 :A6cuo (Date and Time) J Jared GOV PAGE 6-SENATE BILL 21-082 Page 70 of 78 Alcohol Festival Permits Tamara Niles City Attorney Page 71 of 78 •On May 8, 2021, Colorado Governor Jared Polis signed into law SB 21-082, amending CRS 44-3-404 creating a state alcohol festival permit. •The act authorizes the following alcohol beverage licensees to obtain a festival permit, which would allow the licensees to hold festivals where they may conduct joint tastings and engage in any retail operations authorized by their licenses or permits: A beer and wine licensee; A hotel and restaurant licensee; A tavern licensee; A brew pub licensee; A vintner's restaurant licensee; A distillery pub licensee; A winery or limited winery licensee; A spirits manufacturer; and A beer manufacturer. Background Page 72 of 78 •9 festivals in 12 months throughout the State of Colorado •Each festival lasting no longer than 72 hours •Participants sell and serve alcohol at the festival location like at regular licensed premises Festivals Authorized Page 73 of 78 •Englewood restaurants licensed to sell and serve alcohol could participate in a festival off-site and sell and serve their signature cocktails. •Liquor distillers located elsewhere could hold a festival in Englewood with tastings. •All licensees can participate at the same festival: wineries, breweries, distilleries, restaurants, bars Examples of Festivals Page 74 of 78 •Municipalities can establish a local permit requirement •This is Optional •If no local permit established, only a state permit is required Local Permit Option Page 75 of 78 •The City/Police Department is notified of the event •City can ensure zoning, other local regulations are met •City can place reasonable restrictions on the festival, such as location limitations, fencing, health and safety regulations Benefits of a Local Permit Page 76 of 78 Should Council wish to move forward, the City Attorney’s Office will draft an Ordinance amending EMC 5-3A-9 to require a local festival permit for consideration at a future Regular City Council Meeting Next Steps Page 77 of 78 QUESTIONS?Page 78 of 78