The Crested Butte News Serving the Gunnison Valley since 1999
No money to issue 2B bond in Mt. Crested Butte
Despite getting voter approval to issue bonds to finance capital improvement projects, the town of Mt. Crested Butte is making major revisions to the 2009 budget.
Because an associated property tax increase on the ballot was not approved, the town isn’t anticipating spare money in the 2009 budget to pay back any new debts.
Last month the council had its first look at the 2009 budget, but that version of the budget was based on the assumption that both ballot issues would pass. Ballot issue 2A lost by 42 votes, and issue 2B passed by a margin of 12.
Approval of ballot issue 2A would have removed the current TABOR restrictions on the town’s mil levy, added an additional three mils, and continued an existing half percent sales tax that is set to expire at the end of the year.
The voter approval of ballot issue 2B authorizes the town to take on new debt and issue $8.6 million in bonds for an extension of the recreation path, a new maintenance facility, a major overhaul of the town’s aging roadways, and other improvements.
Town manager Joe Fitzpatrick said the approval of 2B gives the town authorization to issue up to $8.6 million in bond money anytime in the next ten years.
Fitzpatrick said the town could return to the voters with a similar tax question in November 2009. Furthermore, the town’s admissions tax expires in 2010, and may also be on the ballot for reauthorization.
The Town Council held its second budget meeting the day after the election, on Wednesday, November 5. Because 2A did not pass, the town’s revenue won’t be getting a boost this year. In some areas the town is projecting flat or decreased revenues from the previous year.
Finance officer Karl Trujillo said he and Fitzpatrick were now going through the budget, trimming previously assumed revenue figures, and cutting expenditures in each department where possible. He said it would be a bit longer before they had a working budget again.
Councilman Gary Keiser asked about staff salaries and wages, which were previously budgeted to increase, in accordance with the town’s Five Year Financial plan.
Trujillo said one thing they were considering was wage freezes.
Fitzpatrick said they were weighing all the options. “We don’t have an answer yet,” he said.
Another consideration at the forefront of the town’s mind is the ski season this winter and the impact on sales tax. Fitzpatrick said at the last meeting of the Colorado Association of Ski Towns, “It was believed people would book with much shorter lead times… Ski towns were all over the map in their projections, from flat to minus 30 percent.”
Fitzpatrick said they were anticipating a weaker December in 2008 due to the loss of the Ski Free promotion, and sales tax projections dropped from $317,000 last year to $250,000. Fitzpatrick said the lower figure was consistent with the two years prior to Ski Free.
Mayor pro-tem Bill Babbitt noted there was a free skiing program this December tied to lodging.
Fitzpatrick said, “I don’t expect anywhere near the impact.”
The next budget work session will be November 18 at 4 p.m. Babbitt suggested that they may have to hold an additional meeting before December 2 to get the budget passed by the end of the year.
