2017 Preliminary Budget Summary Finance Committee/Board Review Meetings August 30th and 31st, 2016

2017 Budget and Town Board Goals The budget document is one of our most powerful and important communications tool, reflecting policy decisions, goals and priorities of the Town Board.

2017 Budget Summary $26,294,931 Town of Superior 643,380 Superior Metro District #2 305,717 Superior Metro District #3 1,245,002 Superior/McCaslin Interchg 9,456,500 Superior Urban Renewal 7,025,061 Superior Metro District #1 $44,970,591 Total

2017 Sales Tax Summary Colorado municipalities (including Superior) continue to see stress on sales tax revenue growth, caused primarily by: On-line sales continuing to take sales from traditional “brick and mortar” retail stores within Superior. As Colorado’s population ages, spending patterns change from purchases which are typically taxed, to non-taxable transactions (travel, health care)

2017 Sales Tax Summary (Continued) In spite of these stresses, Town sales tax revenues are project to increase as follows: 2017 growth at 4.0% New STC retail, primarily in the Sports Stable CenterPointe Superior Marketplace infill 2017 – 2021 planning horizon at 3.5% annually Driven primarily by new tax revenue from hotel rooms

2017 Sales Tax Summary (Continued) Additional Reminders: Projections assume no loss of a major retailer in Town (or the addition of a major retailer in a neighboring community, which could cannibalize Superior store sales) 50% of new sales generated in the Marketplace and Superior Town Center are not realized by the Town (these monies go either to pay off Marketplace developer reimbursement (thru 2021) or revenue share with City of Louisville – in perpetuity)

2017 Sales Tax Summary - % of Revenues by Operation General Fund

2017 Sales Tax Summary - % of Revenues by Operation CIP/Open Space

2017 Sales Tax Summary - % of Revenues by Operation Superior/McCaslin Interchange

2017 Sales Tax Summary - % of Revenues by Operation SURA Marketplace

2017 Sales Tax Summary - % of Revenues by Operation Superior Metropolitan District

2017 – 2021 New Construction New construction, both residential and commercial is generally financially positive for the Town: High property value for new homes Limited new demands on service delivery Helps Town utilities become financial self-sufficient (General Fund support to these operations is minimized) Net new revenues - $19 million one-time, $4 million operating

2017 – 2021 New Construction - Residential Calmante Patio Homes – 33 units, 2017 – 2018 Anderson Multi-Family – 120 units, 2019 – 2021 Superior Town Center – 117 units, 2017 – 2018 Resolute Multi-Family – 90 units, 2019 - 2020

2017 – 2021 New Construction – Residential (Continued) Rogers Single Family – 47 units, 2019 – 2020 Zaharias Multi-Family – 180 units, 2019 – 2021 Discovery Multi-Family – 30 units, 2017 - 2018

2017 – 2021 New Construction - Commercial Anderson Storage and Small Office – 2019 – 2021 Superior Town Center Medical Office and Two (2) Hotels – 2017 – 2018 Resolute Two (2) Hotels and One (1) Small Retail – 2018 - 2020

2017 Property Tax Rates and Revenues Diversifying revenues, operating efficiencies, debt refinancing, enhancing property valuations and growth have allowed the Board to lower at lease one (1) Town controlled property tax rates for fourteen consecutive years (including 2017).

GF Base Property Tax Decrease

SMD2 Property Tax Decrease

SMD3 Property Tax Decrease

SMID Property Tax Decrease

2017 Governmental Fee Changes New Zoning Verification Letter ($25) NO Landscape Maintenance Fee Changes (generally the same since the Town took over this operation in 2004 - $30/month for a single family home)

2017 SMD1 Fee Changes 2017 – 2.5% Water and 5% Sewer 2019 – 5% Sewer only 2020 – 5% Sewer only 2021 – 5% Sewer only “Average” Customer 2017 Impact - $2.60/month

2017 SMD1 Water Fee Changes (Compared to 2016 Budget)

2017 – 2021 Staffing Changes 2017 – N/A 2018 – N/A 2019 – 2020 – Public Works Field Tech BOCO Sheriff Deputy 2020 – PROS Park Tech 2021 –

2017 Debt Summary Existing Debt Outstanding debt/other obligations dropping from $38M to $33.2M in 2017 SMD2/3 debt paid off after 2018 (over 5.0 mills property tax rate goes away)

2017 Debt Summary Existing Debt (Continued) SURA debt paid off after 2019. The $1 million a year that was paying SURA debt then goes to “SURA Additional Obligations” – almost $2.5 million beginning 2020. Done with this payment after 2021. Then Superior Marketplace revenue available 100% to the Town.

2017 Debt Summary

2017 Debt Summary New Proposed Debt Town Hall expansion (2017 - $3.145 million) Windy Gap firming (2018 - $10.5 million) North Pool Expansion and Enclosure (2017 - $2.8 million)