The Crested Butte News Serving the Gunnison Valley since 1999
Street and alley expenses might necessitate a mill levy increase
By Mark Reaman
As budget season approaches for the local governments, the Crested Butte town council is dipping its toe in the water to start the process. Council got a first glance at a proposed 2025 budget at the October 7 meeting. Town finance director Kathy Ridgeway said staff will begin the hard conversations over how to pare down the budget wish list before the next work session.
Ridgeway did say one thing for council to consider is that the way Crested Butte has traditionally paid for major street and alley projects is probably no longer efficient. It used to be the town would save up money from the mill levy for five years and then address a major project. “Costs are now off the charts and we can’t save enough money in five years to do a major project anymore,” she said indicating council should consider how to use the mill levy to generate more revenue for needed projects. She pointed out the recent eight-block project on Elk Avenue and Eighth Street cost about $1.3 million compared to a similar 14 block project in 2017 that cost $484,625. She indicated an increase in the current mill levy might be needed.
Councilmember Mallika Magner said she was struggling with the idea of a mill levy increase for streets and alleys.
Another topic will be the town’s current policy of holding 100% of annual expenditures in its reserves.
Council agreed that policy should be discussed. Billick said the worry is that in the next five or ten years a regional wildfire could lead to a smoke-filled summer in the valley that negatively impacted visits and thus sales tax.
“The basic takeaway is that the drunken sailor days are over,” said mayor Ian Billick.
Council and staff held a work session on September 16 reviewing the town’s five-year strategic plan and 2025 budget priorities. Based in the Community Compass, the direction appears to be focused on initiatives like workforce housing in town by increasing the allowable density, getting a Highway 135 corridor plan started, continuing to implement the Climate Action Plan and de-emphasizing car use in town.
“Your most important policy tool is the budget. The intent of the Compass was to allow council to update the town strategic plan annually with the budget,” Community Development director Troy Russ told the council at the meeting. “From a policy perspective, how we hold our government accountable from an environment, housing and climate perspective is important.”
Russ said the staff is looking at updating the town zoning codes through its various plans, while exploring how best to utilize land assets like the property it owns in the Slate River Subdivision, at the Four-way and the existing fire station building at Third and Maroon that will be vacated when the Crested Butte Fire Protection District moves to their new safety campus just north of town. Another priority includes looking at a way to redesign the marshal’s office in its current space while not pushing out KBUT.
Ridgeway addressed the nuts and bolts of the upcoming budget preparation. “We are looking for council priorities,” she said. “The 2024 budget is on track with the expenses, and the revenues are meeting or exceeding the budget.”
She presented her “baseline assumptions” to the council that include budgeting for a sales tax revenue increase in 2025 of 2% over the 2024 budget. Sales tax revenue so far this year is up 3.9% over 2023. The Real Estate Transfer Tax revenue is well above budget. Town health insurance costs are increasing a hefty 13.5 % and staff has put in an estimated 3% increase “placeholder” for wages. A 3% increase in water and sewer utility rates is probably in store as is a new full-time employee to deal with the town’s myriad rental properties. An increase in the contribution to the Gunnison Valley Regional Housing Authority from $93,750 to $128,000 is also planned.
Council asked about the estimated $98,000 expense for another Electric Vehicle (EV) marshal’s car and chief marshal Mike Reily said the actual cost would probably be less because the department was moving away from the Tesla to a less expensive Chevy Blazer.
Town manager Dara MacDonald explained that kitting (modifying the cars for law enforcement) out the Teslas was very expensive as CB was one of the first municipalities in the market at the time. She said the Chevy Blazer is the first all-electric SUV being manufactured as a law enforcement ready model. “This should result in significant savings both for the vehicle (rather than a Tesla) and for the necessary retrofits to bring it into service (cages, lights, computers, etc.),” she said.
A grant-writing consultant is also included in the next budget and MacDonald said Sustainable Strategies DC was involved in the recently obtained $15 million Safe Streets For All grant award and had thus proved a valuable revenue resource.
Ridgeway said the affordable housing fund will be operating in an expected deficit in 2025 and the town will be hit with a higher than expected expense in 2024 because High Mountain Concepts, the contractor for the Paradise Park project, is completing work faster than expected. “This is a good expense situation where the total project cost is within budget, delivery is simply occurring faster than expected,” she wrote in her memo to the council, noting rents will be coming in sooner than expected as well.
Councilmember Beth Goldstone again brought up the need for a consistent and more robust funding source for the town affordable housing fund. “The town’s people didn’t approve the tax on non-primary residences a few years ago so we are having to subsidize the affordable housing fund from other parts of the budget. Important incentive programs such as the Green Deed and Good Deed are taking a hit,” she said. “This is part of our livability goal, because these programs can directly reduce the cost of living for homeowners. I am not sure where revenue for the affordable housing fund can come from. Maybe it’s time to look at a county-wide tax on non-primary residences or meaningfully increasing our ROAH fees?”
“I would be interested in seeing ways to get more revenue in the affordable housing fund in 2025,” agreed councilmember Anna Fenerty.
Councilmember Jason MacMillan said the same issue could be applied to the Climate Action plan directives.
Staff also conducted a compensation comparison survey. The concern is that town is not paying enough to retain employees, so they will analyze results of the survey and make suggestions for council to consider with the upcoming budget.
The hope is that council approves the 2025 budget in early December.
