Funding parks and recreation in Crested Butte: More sales tax?

Fully funding parks helps all the town departments

In a continuing effort to find a consistent revenue source for the Crested Butte Parks and Recreation Department, the Town Council discussed several options at their meeting Monday, March 3. At the end of the session, it appeared the council was leaning toward a combination of ideas, with a potential sales tax increase being the foundation.

Parks and Recreation Director Jake Jones reminded the council that the parks maintenance annual budget was approximately $370,000. That money comes from the town’s real estate transfer tax that was meant to supply funds for the town’s capital budget needs. That tax usually brings in approximately $450,000 a year but fluctuates depending on real estate sales.
“We are looking at trying to get another $250,000 to $500,000 a year directed to parks,” Jones said. “Every dollar that comes in would not just help the parks but also provide relief for the rest of the town departments.”
Jones said his department is on the bubble and stretched with its $370,000 maintenance budget. While that can take care of what’s out there, there is no room for more acquisitions, and helping those facilities like the town tennis courts or skate park at the end of their usable life spans is not feasible.
“By creating additional revenues, you open up the RETT for other capital projects in town,” summarized Mayor Aaron Huckstep.
“Correct,” responded Jones. “It can get pretty bloody between departments at budget time when everyone is fighting over $50,000 but there is $250,000 in projects on the table. With increased funding to parks you get to take care of town buildings and vehicles and computers. It’s not always the sexy stuff but we have a lot of assets that need to be taken care of. We can’t always rely on obtaining grants. We need to take care of our stuff. This is our stuff.”
The council looked at six primary options. The first was the pursuit of a regional mill levy. An additional two mills on property at the north end of the valley would generate about $500,000. Overall, the council felt it wouldn’t pass by the voters too easily unless there was a centerpiece, such as a swimming pool. “It would be like asking my neighbor to help me pay for mowing my lawn,” said Councilperson Glenn Michel. “That’s not likely.”
The second option was an increase in the town’s mill levy. An additional three mills in town would raise about $250,000 and would cost the owner of a house valued at $750,000 about $179 per year. “That would put the burden just on people living in town,” said Jones, “unless you increased user fees for non-residents.”
“It would help protect their property values by improving that town amenity,” said Councilperson Roland Mason.
“People don’t perceive it that way,” countered Councilperson and real estate broker David Owen.
“Plus with this mine issue we might be asking the people for funding to deal with the VCUP and the mine,” said Huckstep. “Can we keep asking them to vote for a property tax increase?”
Option three was a half percent increase in town sales tax. That would raise about $287,000 each year. “That makes it equitable for everyone who uses the parks, whether you’re a local or not,” said Huckstep.
“It’s easier to digest a sales tax that’s a few pennies, but it adds up,” said Michel.
“It’s definitely a lighter hit to businesses than a property tax increase,” pointed out Town Finance Director Lois Rozman.
“I think some people come here and are surprised at how much tax there is,” said Owen.
“Our sales tax isn’t bad compared to other resort towns,” said Huckstep.
“But if you include all the taxes, it’s pretty high, especially for lodging when people pay the Local Marketing District 4 percent,” said Mason.
The fourth option was an increase in user fees. But even a 60 percent increase wouldn’t generate much money in the collective while slamming the individual. For example, hockey fees would go from about $500 a season to $800. But a 60 percent increase would only get the town another $120,000 and that’s if there was no attrition.
“You could do a number of these things together,” pointed out Councilperson Chris Ladoulis. “A sales tax, a mill levy increase and higher user fees.”
“Higher user fees might be appropriate and could be part of an equation with the second option,” agreed Jones. “It might be hard to ask the voters to approve several different taxes.”
The fifth option was a Parks and Recreation foundation. Jones said it was rare for a community the size of Crested Butte to have a successful charitable foundation. “While we have an active base of users with people willing to donate time and money, it’s not a consistent flow of revenue,” he said.
The final option presented to the council was a significant reduction in services. No one liked that. “It’s the option of last resort,” commented Owen.
Ladoulis suggested a seventh option. He said the town could keep the town capital budget the same but reprioritize spending in all the town departments. “It could result in some service reductions and some reallocation of money but we don’t have to automatically raise our budget by hundreds of thousands of dollars,” he said.
“I agree,” chimed in Owen.
Jones said he has a written document showing the “doomsday” scenario of a big reduction in services.
In a straw poll of the options, the six present councilmen tilted toward investigating a sales tax increase. But they did not advocate any tax increase immediately. A third work session on the topic will be held Monday, March 17 at 6 p.m.