October 30, 2018 Minutes
A special meeting of the Board of Directors of the Arrowhead Metropolitan District, Eagle County, Colorado, was held on October 30, 2018, at 9:30 a.m., at the offices of Marchetti & Weaver, LLC, 28 Second Street, Suite 213, Edwards, Eagle County, Colorado, in accordance with the applicable statutes of the State of Colorado.
The following Directors were present and acting:
- Bob Shafer (via telephone)
- Thomas Svoboda (via telephone)
- Tom Howard (via telephone)
The following Director was absent and excused
- Vincent Riggio
Also in attendance were:
- Ken Marchetti, Marchetti & Weaver, LLC
- Beth Johnston, Marchetti & Weaver, LLC, recording secretary
- David Greher, Collins, Cockerel, & Cole
Call To Order
The Special Meeting of the Board of Directors of Arrowhead Metropolitan District was called to order by Director Shafer on October 30, 2018, at 9:30 a.m. noting a quorum was present. No conflicts of interest were disclosed.
Consideration Of Agenda
There were no changes to the agenda.
By motion duly made and seconded it was unanimously
RESOLVED to enter into executive session at 9:35 a.m. pursuant to C.R.S. §24-6-402(4)(b), Conferences with an attorney for the public entity for purposes of receiving legal advice on specific legal questions related to the November 6, 2018, special election, discuss changes to the Colorado sales tax rules and regulations, and their impact on the Arrowhead sales tax special election.
The board adjourned from executive session at 9:58 a.m.
Following discussion, and upon motion duly made and seconded, it was unanimously
RESOLVED to cancel the November 6, 2018 election to consider imposing a sales tax in Arrowhead due to Colorado Department of Revenue’s adoption of new sales tax collection rules which will become effective on December 1, 2018 and considering that voters will be casting their ballots based on out of date rules and that they may vote differently based on the new rules.
The Board requested that Director Shafer prepare a communication to be sent to all Arrowhead owners and residents notifying them of the cancellation. A copy of the letter is incorporated as part of these minutes.
The Board requested that funds be added to the 2019 budget for a special election in November 2019 to consider imposing a sales tax in the District.
There being no further business to come before the Board, by motion duly made and seconded, it was unanimously
RESOLVED to adjourn the Special Meeting of the Arrowhead Metropolitan District Board of Directors this 30th day of October 2018.
Secretary for the Meeting
Arrowhead Metro District Sales Tax Election Cancellation Letter sent via email from AVA on November 1, 2018:
To the Owners and Residents of Arrowhead,
On behalf of the Arrowhead Metro District Board of Directors, I am writing to let you know that the Board has voted unanimously to cancel the November 6 election asking for authority to adopt a local sales tax of up to 5.5%.
The Arrowhead sales tax would have been collected on all sales subject to Colorado sales tax. Just last week, the Board learned that the Colorado Department of Revenue announced last month that it would be changing its sales tax collection policies effective December 1, 2018. When the Board learned of the new policies, it realized that some information the Board had provided to constituents about the November election was incorrect.
Specifically, effective December 1, we believe that retailers selling goods will be required to collect State sales taxes (and probably local sales taxes, such as the proposed Arrowhead sales tax) based on the point of delivery. Previously, as the Board presented, retailers (particularly internet sellers) were generally not required to collect State and local taxes at the point of delivery. The effect of the State’s policy change is to require retailers to collect sales taxes, including local sales taxes, on a much broader number of sales transactions.
While the Board Members all still firmly believe that the adoption of a local sales tax within Arrowhead is a major benefit to the residents and community, especially considering the negative impact of the Gallagher Amendment, and that our plan was to lower your real estate mill levy rate, the Board unanimously decided it could not proceed with the November election when the Board itself had inadvertently communicated outdated information about how the proposed sales tax would work.
Therefore, no Arrowhead ballots will be opened or counted. Ballots received are required by State law to be held for 25 months; these will remain with our accounting firm and will then be destroyed. The Board plans to present another proposal to the residents at the next available election date, which is November 5, 2019.
If you have any questions, please contact me or any other member of the Board.
President, Arrowhead Metro District Board