The Crested Butte News Serving the Gunnison Valley since 1999
Lease with town part of the equation
A month after it became clear that Mountain Express wouldn’t have enough money to ramp up shuttle service next ski season, the organization’s board is crafting solutions to its financial problems.
Mountain Express board president Bill Dickerson said on Monday, June 16 that the situation isn’t as grim as it first appeared. “I’m confident that we can keep (the bus system) running on the same schedule,” he said.
Dickerson said the board needs to make several decisions about the organization’s financial future by its July 21 meeting but has some questions that must be answered first, such as the status of its federal grant funding and pending lease with the town of Crested Butte.
Mountain Express, which provides free shuttle service between Crested Butte and Mt. Crested Butte, is owned and operated by the towns but exists as a separate entity. Its board of directors consists of two members from the Crested Butte Town Council, two members of the Mt. Crested Butte Town Council and an at-large community member.
The organization operates on an approximately $1.2 million budget, with most funds coming from the towns, which both devote 1 percent of sales tax revenue to the bus service. In addition, Mt. Crested Butte earmarks another 1 percent from its admissions tax. Those funds are augmented by state and federal grants that are used for operating expenses and capital purchases, respectively. In 2007, the service carried 600,000 passengers.
Mountain Express’ financial trouble began this year when it went ahead with a major capital purchase and allocated $357,000 for a new bus barn that will be located near the existing Town Shops in Crested Butte. However, the bus service had been relying on those saved funds to float it during times when it was spending money but had not yet received government payments.
With those extra funds spent, there was no cash on hand when the organization needed to make payments in January and February. The town of Crested Butte was forced to lend Mountain Express $150,000 so the organization could make payroll and continue operations until monies came in. Soon after, it became apparent that the organization would be cash-strapped again by early winter.
Following a recommendation from the Town of Crested Butte, Mountain Express formed a board subcommittee to begin looking at its current operating budget and next year’s operating budget.
Mountain Express board member Gary Keiser says the committee has outlined 15 possible changes to save the organization money. Those items include deferring maintenance on vehicles, changing some operating practices, and borrowing money temporarily to get through down months. “There’s no silver bullet,” he says but notes, “A lot of little things can add up and have an impact.”
Before those items can be put into practice, Keiser says, the board is waiting to hear about three items. First, he says Mountain Express manager Chris Larsen is finalizing costs for installing the new bus barn, including the costs for utility hook-ups. Second, Keiser says, Mountain Express is waiting to see how much federal grant money it can expect in an upcoming grant cycle. Third, he says, the board needs to finalize the lease agreement on the new building with the town of Crested Butte. Under the current plan, Mountain Express will construct the building on town-owned property and turn over ownership to Crested Butte. It will then lease the space back from the town.
“We’re hoping by the July meeting, we’ll have addressed that list,” Keiser says. “We’ve made a lot of progress but we’re still chasing a few things down.”
The Crested Butte Town Council has scheduled a work session to discuss the Mountain Express lease for Monday, June 23 at 6 p.m. at the Town Hall.
The regular Town Council meeting, which was cancelled on June 16 due to a newspaper error, will occur at 7 p.m. that night.
