Mt. Crested Butte approves 2009 budget with cutbacks

Ends up with $37 surplus

More than $1,200,000 in expenditures have been cut from the town of Mt. Crested Butte’s budget for 2009, as the town faces potential revenue difficulties in a weak economy and without the financial boost of a mil levy increase, which voters rejected in November.
The Town Council approved the 2009 budget at first reading on Tuesday, December 2.

The general fund for 2009 calls for $3.47 million in revenues and the same figure in expenses. The town is projecting to have $494,000 in reserves at the end of next year.
The budget was scaled back 26 percent from previous versions, following the failure of Mt. Crested Butte ballot issue 2A on November 4, which would have provided additional revenue to the town through an increase in property taxes, and by eliminating the tax restrictions on the town’s existing mil levy.
More than a dozen major changes have been made to the budget since that time. The loss of 2A meant property tax revenue projections were dropped more than $1.2 million.
The town isn’t budgeting for any new hires or salary increases. There won’t be a 2009 Christmas dinner or town picnic. Roads will get a $423,500 touch-up, more than $100,000 less than what was spent in 2008. Three seasonal employees in the Parks and Recreation department have been cut, along with the summer flower boxes.
Councilman Gary Keiser said he was disappointed the flower boxes and summer staff were being cut and felt improving the appearance of town was an important part of economic development. But Keiser admitted, “Our top priority is public safety, police and protecting the town’s infrastructure, so we can keep the doors open.”
The budget changes also reflect a more conservative strategy. Any department request of more than $50 will require a written purchase order. Sales tax revenues are projected 10 percent below 2008 levels for January, February and March 2009. December 2009 sales tax revenues are projected 21 percent below December 2007, when the Ski Free promotion gave businesses a boost.
Building revenues are projected to be flat with 2008. Town manager Joe Fitzpatrick said he and finance officer Karl Trujillo “were muttering at each other about this on the way down to the meeting. He’s feeling better than I am.”
Mayor William Buck asked Trujillo why he felt positive about building revenues.
“I think the cost is coming down and there are contractors looking for work,” Trujillo said. “Maybe that will spur some action.”
Employee benefits costs for the town are rising 5 percent in 2009, which Trujillo said is partly due to the increasing cost of insurance.
The town’s noxious weed removal budget has been cut 80 percent, but in November the town approved a weed management plan, and earlier this summer approved an ordinance to enforce the eradication of invasive weeds.
Noting the change, Keiser asked, “Can we do what we just agreed to do in the weed management plan?”
Fitzpatrick said not entirely. “We just said this is the plan; we’ll implement the plan as we’re able,” he said.
Despite the hard financial times, the council still made room for grant contributions. Buck said many of the organizations requesting a grant were essential services, and asked the council members to consider the priority of each of the 12 requests.
The council approved a $2,500 contribution for Crested Butte Search and Rescue. Councilman Dave Clayton said, “Everything they need and use is essential.”
Councilman Bill Babbitt said, “If I’m out there in the woods, I want them to come find me.”
Fitzpatrick said he supported a $500 contribution for the Literacy Action Program. He said it helps many of the resort’s seasonal workers learn to read and speak English.
Buck asked, “Long-term, Joe, would you see this as a benefit for the workforce?”
Fitzpatrick replied, “Absolutely, and it does improve the guest experience.”
Other grant contributions included $2,000 for the Adaptive Sports Center, $2,000 for the Center for the Arts, $1,000 for the Crested Butte/Mt. Crested Butte Chamber of Commerce, $500 for the Crested Butte Avalanche Center, $800 for the Crested Butte Nordic Council (along with a $3,600 general fund line item to groom the recreation path), $750 for legal aid provided by Colorado Northwest Legal Services, and $950 for the Office for Resource Efficiency.
Keiser noted that after allocating the donations, the budget had a surplus of $37.
Trujillo said, “That’s for next year’s pizza for the budget discussion.”
During a public hearing on the budget, Mt. Crested Butte resident Bob Goettge suggested the Downtown Development Authority use funds set aside for architectural drawings of the proposed recreation center to conduct an economic impact analysis.
Goettge said the economic analysis would differ from the recent financial feasibility study by examining the potential economic boost the town could expect from a recreation center.
Based on the results of such a study, Goettge suggested the DDA should consider building other economic incentives such as an ice rink at the base area before the aquatic center.
Overall, Goettge complimented the town staff and council on their hard work facing a tough situation. “Obviously you’ve all faced some financial challenges as you look ahead to the next year and I just wanted to thank you for tackling those in such a professional manner,” Goettge said.
After the meeting Fitzpatrick said the council hasn’t had a chance to consider formulating a new ballot issue to improve revenues, but has the option to ask voters to consider another measure similar to 2A in November 2009.
He said the council will definitely be taking another look at the 2009 budget and the incoming revenue in May following the ski season.
Fitzpatrick said he’s not sure if the new ownership of the ski resort will have an impact on the 2009 budget. Although the new owners have promised to get the ball moving on the Red Lady Lodge this summer, since that project is outside the town’s boundaries Fitzpatrick said it won’t make a difference in building revenues.
The Town Council is expected to make its final adoption of the 2009 budget at a second reading during a special meeting on Thursday, December 11.