Ballot initiative advocates take the stage in support of 5A and 2A

Fire District and affordable housing will be the beneficiaries of funds collected

By Toni Todd

Last week’s Crested Butte Candidates Forum began with representatives speaking in support for two ballot initiatives proposing taxpayer support.

The first initiative—5A—requests a property tax increase for property owners within the Crested Butte Fire District. Those funds are designated to pay for hiring more emergency medical service (EMS)/fire fighters and help with housing.

The second—2A—proposes an excise tax on short-term rentals (STRs) within the town of Crested Butte, with funds earmarked for affordable housing. No one was there to advocate against either of these initiatives, and no audience members spoke out against them.

Ballot Initiative 5A: Mill levy increase to support the Crested Butte Fire District

Crested Butte Fire Protection District board chair Paul Hird addressed the crowd of about 80 residents to make his case for 5A. “We’re drifting toward a paid service,” he said. “We hired our first paid paramedic firefighter in 2013. Now we have four. I’ve seen first-hand how the district has changed. For those of us involved in EMS and fire, it’s important that we get this passed in November.”

Hird said volunteer numbers have been shrinking nationwide, and that’s especially true in Crested Butte. “Currently, we have 50 percent fewer volunteers than in 2010,” he said. “We’re not trying to replace volunteer positions, but as things get busier, employers are less inclined to let people leave to go fight fires,” he added, saying that the lack of affordable housing, which has resulted in jobs going unfilled in Crested Butte, has put enough pressure on employers that they are reluctant to let their volunteer employees go fight a fire or rescue someone. That, coupled with fewer volunteers signing on generally, is making it difficult to meet the demands now, and those projected for the near future.

“We’re not looking at going fully paid—volunteers are valuable to us right now—but as they decline, we want to have the flexibility, if we can’t fill them with volunteers, to fill them with fully paid,” said Hird.

The ballot initiative asks voters for an increase of 3.5 mills. That, Hird said, will cost homeowners $25 for every $100,000 in assessed home value and $102 per $100,000 in value for commercial properties.

“This will give us the opportunity to fully fund our ambulance service,” Hird said. “We’d like to have advanced life support available for every call,” he added, and while so far they’ve been able to provide that, Hird insisted it won’t be possible in the future without the tax increase, given the growth in demand for services.

Hird explained that in 2008, property values plummeted, reducing the Fire District’s funding. While values have risen since then, he said, “Values are still down 32 percent,” from their high point before 2008.

“We’re looking at having to come up with $450,000 a year to be fully funded,” said Hird.

Hird said the Fire District is also looking to build a triplex for volunteers or Fire District staff.

“We’re anticipating hiring two additional medics prior to ski season,” he said.

“As property values go up, will that incorporate something like a cost of living increase to the people you’re having to pay?” asked Sue Navy.

“When we build the budget, we do build in cost of living increases,” replied Hird.

“What is the total amount you want to bring in with the mill levy increase?” asked Crested Butte town council member Roland Mason.

“If the mill levy passes, it will bring in $1,056,000 annually,” said Hird.

Ballot Initiative 2A: Short-term rental excise tax in Crested Butte

Former county commissioner and town council member Jim Starr, a long-time advocate of affordable housing in the Gunnison Valley, spoke in support of Ballot Initiative 2A, requesting an excise tax on short-term rentals in Crested Butte.

“The goal of the town has been to retain at least 60 percent of housing in Crested Butte for residents,” Starr said. “Today, over 60 percent of homeowners have out-of-town residences.

“Crested Butte has never had a dedicated source of funding for housing,” he continued. 2A, Starr explained, would add an additional 5 percent tax remittance on vacation rentals. This, he said, would bring the tax on STRs in town to 18 percent, which is still lower than the customary 20 percent in other resort towns.

“Money collected would be used exclusively for affordable housing,” Starr said. “It’s expected to generate up to $325,000 in 2018.”

Starr emphasized that the tax will be imposed on STRs only and not on other lodging businesses or traditional bed-and-breakfast operations in town.

Starr reported that 360 jobs went unfilled in August 2016, the direct result of the housing shortage. “The Gunnison Valley needs assessment determined that we need at least 400 rental and ownership units to house employees for existing jobs.”

Starr also touched on the social impact of the housing shortage. He said the commute for folks forced to live down-valley takes time away from families and contributes to traffic. It’s important, he said, for people who work for the town to live in the town. Having a thriving resident population, Starr said, is “necessary for Crested Butte to maintain its character.”

“Short-term rentals create a lot of trouble for neighbors,” commented audience member Anne Moore, describing noise and trash impacts. “Where will the money be used? Will it be used outside of the town?”

“There’s no restriction on where it can be used,” said Starr, who suggested a regional approach might be needed to solve the housing problem.

“What entity will control the funds collected?” asked Elliot Stern.

“The Town Council will control these funds,” said Starr.

“This 5 percent puts STRs on the same level with lodging,” said Rob Boyle. “That’s still below what other places tax their STRs. How can we get it to that 20 percent standard?” Boyle asked if the county could add an additional tax to make up that difference.

Starr explained, “The county cannot do it within this town or within other municipalities. The Housing Authority was going to do it, but found out they don’t have the legal authority to do so.”

Ballots are due back by November 7.