Wednesday, March 1, 2017

Vote no on article 7

Mountain Times

March 1, 2017

Dear editor,

I noted in the recent Killington town report that Article 7 involved a move to return to the town meeting floor vote for public questions. I guess I’m a little confused about why we would want to take a step back to a system that disenfranchised so many of our neighbors.

Over the years the town meeting format served us well but as we move into the 21st century more of our residents have jobs out of town or are traveling and unable to attend an all day meeting. Relying on a floor vote unintentionally suppresses the vote. We must make the necessary accommodations to allow all of our neighbors their voice in important town business. To go backwards would in effect suppress the votes of a large segment of our neighbors.

It would seem that our goal nationally and locally is to encourage citizen participation in elections. When the town of Killington moved to the use of the Australian ballot citizen participation increased from 253 ballots cast in 2011 (28 percent of our registered voters) to 480 ballots (53 percent of our registered voters) in 2016. This dramatic increase in voter participation indicates to me that there were a significant number of Killington voters who wanted to vote but were unable to take the day off to exercise their right.

The use of the Australian ballot provides all of our citizens the opportunity to have a say on issues of importance in the town.

Article 7 reads: “Shall the Town of Killington discontinue the use of voting on all public questions by the Australian ballot system and go back to a floor vote?”

Please vote “No” on article 7.

Michael Clifford, Killington

- See more at: http://mountaintimes.info/vote-no-article-7/#sthash.kGkyvm6L.dpuf

Vote to keep the Australian ballot

Mountain Times

March 1, 2017

Dear Editor,

In 2011, Killington made a historic decision. Citizens agreed that all who are registered to vote in Killington should be allowed to cast a ballot to decide town issues. The ballot is technically called an “Australian ballot.” Most people just call this voting.

Killington Town Meeting Article 7 would restrict voting on town meeting articles. Voters would not be allowed to vote on Town Meeting articles by ballot, whether on election day or by absentee ballot. Voters would need to be present on the floor of the town meeting at the time a vote was called on a specific article. If you were not at the meeting when an article was called, for any reason, you would not be allowed to vote.

In 2011 we went through the information wars about “educated voters.” We went through the discussion about people only voting if they had showed enough interest in an issue “to show up.” We talked about “tradition.” All of that discussion concerning the way Killington votes is as valid today as it was in 2011.

Voters today are more educated about local issues. More people show up to vote by Australian ballot than ever before, as documented by town voting records. Small groups of people cannot filibuster an issue at an open town meeting until the vote count in the hall suits their purpose. Issue stakeholders must educate the electorate before the election to convince people of the merits of their point of view so voters will freely side with them in the privacy of the ballot box.

Traditions are important. The concept of coming together to discuss the issues of the day certainly has merit. This is specifically the reason for open Select Board meetings and the town information meeting prior to Election Day. However, we should not confuse discussing the issues of the day with the process of voting.

Disenfranchising voters because their circumstances prevent them from attending a single meeting is wrong.

Vote “no” on Article 7 when you cast your Australian ballot on town meeting day Tuesday, March 7. If you cannot cast your vote on Town Meeting Day, request an absentee ballot from the town hall. Either way, keep Killington voting open and accessible to all by voting “no” on Killington Town Meeting Article 7.

Bill Vines, Killington

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Comment: There isn't a snowball's chance in hell of this passing. No one will vote to limiting their ability or convenience to exercise that right. Having said that, I would rather see town meeting back. I don't believe voters are any more educated now than they were before. To be more precise voters are no more informed than they were before. This is the reason I have this blog - to try and keep people as well informed of both side of issues so they can make an informed decision when they go to the polling booth. I truly believe that in the Town Meeting process participants were more fully invested in the process and issues. Simply the fact they made the effort to come to the meeting was evidence of that.

Vito

Local options tax receipts highlight early winter

Mountain Times

3/1/2017

By Evan Johnson

At its Feb. 21 meeting, the Killington Select Board announced the local option tax results for the fourth quarter. Killington took in $153,655.43 in sales and use and $92,823.89 in room and meals receipts during October, November and December.

The fourth quarter results bring the totals for 2016 to $355,152.11 in rooms and meals and $463,969.12 for sales and use.

Speaking at the meeting, Select Board Chair Patty McGrath attributed the Audi FIS World Cup in late November and good weather in the holiday season that followed.

Results from the fourth quarter represent increases over the third quarter. In rooms and meals, receipts totaled about $14,000 higher while sales and use receipts were about $53,000 higher. Receipts were actually higher, as the state takes 30 percent of the taxes collected.

- See more at: http://mountaintimes.info/local-options-tax-receipts-highlight/#sthash.pfKzoCoE.dpuf

Partial Reprint of Mountain Times Article on Effects of 1% repeal

Below is a partial reprint of a June 27, 2014 Mountain Times article entitled "Repealing the option tax would have minimal net effect of residents, town finds" It gives a pretty good assessment on the impact of repealing the sales portion of the 1% options tax.

"Effect on taxpayers
Based on information residents have provided to the town, the average person spends approximately $50 a year in sales and use tax, which is levied on many everyday expenses such as cable, phone, and retail (including supplies, hardware, equipment, ski tickets, entertainment, recreation, etc.).
Other expenses are exempt according to state law: "There are 46 exemptions from the tax (sales and use) which include medical items, food, manufacturing machinery, equipment and fuel, residential fuel and electricity, clothing and shoes."
In order to make up the remaining town deficit of $200,000 (assuming the events and marketing were successfully transferred to an entity apart from the town and assuming no cuts are made to current spending levels) property taxes would need to increase by $0.02 - $0.03 cents per hundred.
Based on the 2013 grand list, that would mean an increased cost of about $40-$60 annually to a person with a $200,000 house (the median home value in Killington) or $50 - $75 annually to a person with a $250,000 house (the approximate average home value).
That correlates to a very minimal change to the average taxpayer per year - slight net decrease if the property taxes increased $0.02 and a slight net increase if $0.03. Those property owners with median home value ($200,000) would see a savings of $10.20/year if the rate were $0.02, or an increase of $9.80/year if the rate were $0.03. For a property owner with average home value ($250,000) the savings would be $0.20/year if the rate were $0.02, or an increase of $24.80/year if $0.03."

Jim Haff Election Ad

The best path forward for Killington outlined

Dear voters,
It’s time again to vote on town issues and for a Selectman in Killing-
ton. A position that requires the Board member to sit in on meetings and represent us, the taxpayers and voters, to be fair to all those that make up our community.
I believe the job of the town budget is to take care of our infrastruc- ture. I feel that we as a town have stepped away from these responsibil- ities and moved more to thinking it is our (all resident taxpayer’s) job to insure that our restaurants and hotels have a better chance of surviving by allocating our tax money to increase tourism in our town. I feel that by doing this we have struggled to keep up on our capital replacement needs.
The position I’ve always taken, and still stand by today, is that if business want to succeed then they should invest in themselves. While I know some disagree with this position, the unfortunate thing is that instead of discussing the ideas these folks found it was easier to paint a picture of me as a person that is destructive and not willing to move this town forward. This is the wrong picture of me.
I, for one, love this town and see so much positive in our future if we could just get back to the principals. Our town has an obligation to fund the necessary infrastructure such as library, schools, swimming pool, re safety building and, yes, our golf course.
Another questions in front of us this election is the rescinding of the sales tax portion of the option tax. I believe that this tax would be the beginning of our town getting back to doing what a town should do.
By voting “yes” on this item we will be shifting the responsibility of

business taking care of their marketing and special events on their own (see letter from Mr. Mike Salimano in last week’s edition). Then we can start looking to take care of what we need to take care of.
Our golf course is heading down a bad path. This is not my opinion, the numbers here show the path it’s on and it’s not good. I understand that by bringing this up you the voter will be told I’m wrong, that I don’t know what I’m talking about. But please, take a look at these numbers yourself then ask who’s right.
I mention every year that we need to take care of our Irene debt. Some on the Board claimed there was no debt that it was just an inter- nal accounting gure, and that all debts were paid. Then why are we being told by accountants and now the Board that we need to close the books on this debt yet another year and it’s not included again?
So when you vote this year, please vote for a person that will ask the questions and understand the situation we are in so we can be a com- petitor to the other ski towns that keep business interest separate from town obligations.
The rst step is to vote “yes” to rescind the sales portion of the op- tion tax.
The second step is to hopefully see through the bad picture painted of me being a destructive person when in fact I’m a very positive per- son and wish to see this town of Killington I call my home succeed.
I hope that you, the voters of Killington, will look at all the facts and cast your vote for me and the vision I see for the best path forward. Thanks,
Jim Haff, Killington

Rescinding the 1% local sale option tax
A letter from Mike Solimano, president of Killington and Pico resorts, published in the Feb. 15-22 edition of the Mountain Times:
“Currently, the town spends $280,000 on marketing and events (funded by the 1 percent option tax), and this year’s proposed budget includes an additional $100,000 to support the 2017 World Cup, should the resort hold that event (and only if ). This brings the town’s events and marketing contribution to a total of $380,000 for scal year 2017– and this general fund expense would be removed from the town’s budget entirely in scal year 2018 if the “sales and use” portion of the 1 percent option tax is repealed.”
What’s not included in these numbers that Mike is showing is the town is also paying for heath insurance and other payroll for these employees so the total is just over $400,000 being paid for this department which would be eliminated with a “yes” vote to rescinding the sales options tax portion.
The golf course debt
From page 72 of the Killington town report
“Green Mountain National Golf Course once again had a successful year in 2016. The course was able to pay for all its oper- ating expenses and all its capital equipment and its course and facility capital expenses. GMN transferred $200,000 to the Town’s General fund from the golf course account. These funds were being used for course operating capital but will now be available for town operations. Keeping a watchful eye on spending, and responsible management of resources also helped us to again keep operational expenses below budget. We will also work closely with other town departments by sharing equip- ment and resources whenever possible to save money.”
What are they talking about? Look at these gures. Looks like a downward spiral to me. How many more years to zero?

Golf Course Net Operating Income

See page 77 of your town report. This is the first time in the golf course’s history that it owes the town almost $300,000.

Golf Pro Shop
Balance as of Jan. 1, 2016: $397,205.39 Receipts: $937,399.62
$1,334,605.01
Disbursements: -$1,099,840.21
Balance as of Dec. 31, 2016: $234,764.80
“Pro Shop Disbursements include $200,000 Transfer to Town General Fund towards 2015 Start-up Expenses, plus $97,972.87 in Debt Service and Interest usually paid from the Town General Fund. This leaves a balance of $68,709.58 due to Town of Killington for 2015 Start-up Expenses plus $224,059 for prior years’ bills paid by the Town when Golf Course was not considered a separate entity.”
Total: $292,768.58 Balance due to Town

Sherburne Golf Service Company/Restaurant
Balance as of Jan. 1, 2016: $94,101.06 Receipts: $169,474.29
$263,575.35 Disbursements:-$234,319.41
Balance as of Dec. 31, 2016: $29,255.94
Now let’s go to our golf course capital plan, page 75 and 76 of your town report. They are budgeting for 2017 total capital projects and equipment needed $113,120 yet their only budgeting a net operating in- come of $91,400. How do the numbers work? Please, others, start asking these questions because that’s what I’ve been doing for the past eight years.

Vote for me or not, but if anything please vote to rescind the sales option tax.
Maybe with that removed from our town budget, anyone on the Board will be able to focus just on our town needs.

Please vote based on numbers and who’s going to get the questions answered. There’s no destructive person in me, it’s just the picture painted of me by those that refuse to answer the questions and it’s easier for them to make the questioner the bad guy.

Paid for by Jim Haff

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1% LOCAL OPTION TAX FAQS

1% Local Option Tax FAQS

1. What is an option tax?

The 1% Local Option Tax is a way for municipalities in Vermont to raise additional revenue. A municipality may vote to levy 1% local option taxes in addition to state business taxes in the following ways: sales tax, meals tax, alcoholic beverages tax, and rooms tax.

Source: Vermont Department of Taxes: http://tax.vermont.gov/business-and-corp/sales-and-use-tax/local-option-tax

The 1% Local Option Tax implemented by the Killington community in 2008 has two parts:

meals & rooms and sales & use, and adds a 1% fee to all purchases in those areas.

The Meals & Rooms 1% Option Tax, which includes lodging, dining and beverage purchases, is passed along to and paid for by the consumer, not impacting business revenue.

The Sales & Use 1% Option Tax, which includes utility bills, retail purchases, and various other purchases, in many cases is also passed along to and paid for by the consumer. However in the case of lift tickets, tax is included in the published price, making the Resort responsible for paying the 1% Sales Option Tax, and directly impacting revenue.

Local Option Sales Tax - 6% sales tax + 1% = 7% total tax

Local Option Meals Tax - 9% meals tax + 1% = 10% total tax

Local Option Alcoholic Beverages Tax - 10% alcohol tax + 1% = 11% total tax

Local Option Rooms Tax - 9% rooms tax + 1% = 10% total tax

2. How is the tax collected and returned to the town?

(a) The tax is collected from businesses as an add on to a guests check or allocated out of a business’s revenue.

(b) 1% local option tax is paid direct to the State of VT

(c) The State of VT keeps 30% and pays back 70% to the Town of Killington. The average annual revenue of both taxes since inception is $1.095 M of which only 70% is returned to the town of Killington and on average the state keeps $329k annually.

(d) The Town of Killington Select Board determines how the tax money is spent in a town budget that is approved by the residents.

(e) The 1% local option tax returned to the town of Killington was allocated 100% for economic development and growing summer. Currently only 35% of the current town budget is being allocated toward special events and marketing with the other 65% allocated to partially pay down Green Mountain National Golf Course debt, and additional town expenses in an effort to stabilize property taxes.

3. What has the resort done to grow summer?

Repealing the 1% sales and use portion of the local option tax was originally proposed back in 2014, but was tabled so voters here in town could see if the resort followed through on plans to expand summer business, add events and build new four-season infrastructure.

Since then, Killington Resort has invested over $5 million into summer and four-season assets ranging from mountain bike trails to the Beast Mountain Coaster, zip lines and helping to build out a summer events schedule so there’s something fun happening in town almost every weekend of the summer and fall.

Accordingly, as summer business in the community steadily increased each summer, the 1% rooms and meals tax fund has grown significantly from its original value, by over 55% ($21k) from 2013-2016 after the resorts major investment in summer assets along with efforts of the Killington Pico Areas Association events schedule.

Killington Resort continues to be the largest contributor of 1% Local Option Tax revenue in all four seasons.

4. If the tax is repealed who will invest in summer economic growth?

For Killington Resort, this tax is included in lift ticket purchases; if the tax is repealed the much of the savings to the resort will be reinvested into the many events hosted through the KPAA, with the remainder invested back into resort summer asset growth. This will drive more revenue to the entire Killington business community while eliminating the burden on the Town of Killington to invest in summer events and marketing. The resort will work closely and appropriate a portion of funds to the Killington Pico Areas Association (KPAA) with the goal to continue the many successful events that have been brought to the region and help the entire community grow.

5. If the tax is repealed, will my taxes increase?

The KPAA believes the town budget once relieved of all marketing and event expenditures could be balanced without a tax increase or at a minimum a very small tax increase amounting to less than the estimated savings from residents and business owners not having to pay the 1% local option sales and use tax on eligible purchases.

Financial Impacts: Killington Town Budget

Sales & Use Options Tax Revenue – 9 Year Average	$415,000
Economic Development Savings (Reduction of Special Events, Marketing and Golf Course Debt Payment Expenses)	($440,000)
Net Impact on Town Budget	($25,000)*
* Rescinding the Sales Option Tax could very likely have a positive revenue impact to the Town of Killington

6. What would happen to the EDTC?

The Economic Development & Tourism Commission would end up dissolving if the 1% sales and use tax were repealed. The rooms and meals local option tax revenues to the town would continue to be part of the town’s general fund and will likely continue to grow as it has year over year since summer investments began. The resort and KPAA will take over and pay for these marketing and event expenditures, leaving no gaps in summer programming.

7. I am a town resident but not registered to vote, how do I register?

You can register by

Completing the Voter Registration Form
Online https://www.olvr.sec.state.vt.us/
Visit the Killington Town offices located at 2706 River Rd, Killington, VT 05751.

You must be a Vermont resident in order to register to vote.

8. When is town meeting day?

Annual School District Meeting and Informational meeting for town meeting articles at the Killington Elementary School, 4:30 pm on Monday, March 6. There will be a Pasta Dinner served at 5:30 pm as a fundraiser for the United Church of Christ. All are welcome! In preparation for Town Meeting Australian Ballot Voting there will be an informational meeting at the Killington Elementary School at 7:00 pm Monday, March 6.

Town meeting day is March 7, 2017 – polls open 7am and close at 7pm at 2706 River Rd, Killington, VT 05751

9. I will not be able to vote on March 7^th are absentee ballots available?

Yes, they are available and you can request one by

Calling 802-422-3243 or emailing lucrecia@town.killington.vt.us ASAP for a mailed ballot

Visit the town office between now and 3pm on March 6 and vote via absentee ballot in-person

Timeline Summary

2008	1% Local option tax voted in by the Killington community to grow economic development in the summer months through events and marketing. See Q&A #1 & 2 for additional information
2011	A portion of the 1% Local option tax voted to be moved into the general fund to help pay for Green Mountain National Golf Course debt and alleviate residents from a tax rate increase. [In 2011, the year that marked our 250th anniversary, our Town continued to make history. At our first Town Meeting, residents voted to change the way they participate in government, choosing to adopt Australian ballot voting. Next, feeling the pressure of other financial obligations, voters elected to direct Options Tax revenues into the General Fund rather than exclusively support economic development. Finally, residents asked the new Selectboard to go to work immediately when they requested a second budget proposal and a second Town Meeting in the spring.] – Source 2011 Annual Town Report]
Fall 2014	Killington Resort proposed to repeal the sales and use portion of the 1% local option tax in order to better utilize our tax contribution to help grow summer assets and economic growth in the region, putting the funds back where they were originally intended.
Winter 2014/2015	Killington Resort decided to not move forward on the sales and use repeal due to resident feedback that they wanted the resort to prove they were committed to grow summer….they did!
January 10, 2017	Selectboard supports $100,000 contribution to the World Cup and includes this as part of the FYE 2018 budget. Several town residents suggest that the town reconsider rescinding the sales and use portion of the 1% local options tax. In 2016 4^th quarter (Oct.-Dec.) rooms and meals receipts to the town grew 32% ($22K) from the previous 3-year average for the same period. Much of this growth can be attributed to the hosting of the World Cup. Everyone had success with this event including the Town of Killington See Q&A with Mike Solimano in the Mountain Times for more info
January 17, 2017	Selectboard approved a vote to rescind the sales and use portion of the 1% local options tax for the March vote. If rescinded this will take effect in FY2019 (July 1, 2018)
March 6, 2017	Annual School District Meeting and Informational meeting for town meeting articles at the Killington Elementary School, 4:30 pm. Pasta Dinner served at 5:30 pm as a fundraiser for the United Church of Christ. Informational meeting at the Killington Elementary School at 7:00 pm.
March 7, 2017	Voting Day Vote Yes, to Article 4. “Shall the one percent local options sales tax be rescinded effective July 1, 2018?”