CB council approves two mills increase in street and alley property tax

Potential rebate for longtime property owners to be discussed

By Mark Reaman 

In what at first glance might be a somewhat surprising series of two votes, the Crested Butte town council split, but ultimately approved a two mills increase in the street and alley fund mill levy, raising the property tax from eight mills to 10. The increase will shore up the street and alley fund and bring in an additional $196,000 per mill per year dedicated to Crested Butte street and alley maintenance and equipment.

The Monday evening vote followed a discussion where the majority of councilmembers argued against the two mills increase yet it still passed by a 5-2 vote. Two councilmembers, Anna Fenerty and Mallika Magner, indicated they wanted no increase whatsoever and voted that way for both a one mill and a two mills increase. That move resulted in the larger tax increase. 

Staff had prepared two resolutions for the council to consider. Based on previous council discussion the first resolution increased the levy by one mill for a total of nine mills. The second option increased the levy by two mills for a total of 10. Each mill would impact residential households about $69 for every $1 million in valuation. Commercial property will be hit at about $295 for every $1 million in valuation.

Staff had presented data showing that increasing the mills to nine would require a larger transfer of money from the general fund to the street and alley fund and it would still run into a deficit in 2028 given the town’s intent for a major street project every five years. The two mills increase resulted in a smaller transfer of general fund money in 2026 and kept the street and alley fund in the black.

“It seems irresponsible to not fund streets and alleys,” said councilmember Gabi Prochaska. “I think as we sit here, we need to repair the roads. Just kicking the can down the road for someone else to fix the roads is not right. Going to nine mills and not 10 is irresponsible. I would love to have no cars in Crested Butte, but it is America, and we do have cars as part of town. Taking more money out of the general fund also takes money away from other important projects.”

“I woke up this morning with an email from the GCEA about a rate hike,” countered Magner. “I was reminded that water and sewer rates went up more than 50% in the last several years. Health care premiums are going up. Raising taxes at this point is not a good idea. Even the $69 per million is considerable funds for some in town.”

“I’ve thought about it a lot and landed that I am okay with the two mills increase for our roads,” said councilmember Kent Cowherd. “It is the most financially responsible way to go forward on this. Adding two mills seems the most sound and sustainable answer. It won’t be easier down the road. We are responsible for taking care of our basic infrastructure needs. I am however concerned with the commercial impact to local business.”

“I’m still for just moving to nine mills,” said councilperson Beth Goldstone. “I think we have to increase it some at this point, but a lot can change by 2028. If we need to do more, we can increase it then.”

“I too would rather see where we land in 2028,” agreed councilmember John O’Neal.

“I’m with Mallika,” said Fenerty. “Our locally owned businesses will be hit hard. We’re feeling a lot of strain financially in the United States. Can we wait another year to settle into it and see where it stands?”

“I’d go with two mills,” said mayor Ian Billick. “When I look at getting squeezed by costs, this matters but doesn’t impact our household like the rising health care costs. I also fear delaying this will result in a sudden major increase like we saw with the water and sewer situation. 

“I’ve been thinking if it is possible to provide a rebate back to some long-time citizens,” Billick continued. “Sort of like we did with the water and sewer bills. It doesn’t address the commercial property but in terms of affordability, one mill might be the equivalent of a meal for some people while it really impacts some others here. I’d like to buffer some of the impacts felt by longtime citizens but I think two mills is fiscally responsible.”

“It’s only going to get more expensive and the impact will be greater,” added Prochaska. “That’s the cautionary tale for me. It’s not easy to raise taxes and I like the idea of exploring mitigation for longtime citizens. It just seems more prudent to increase the mills gradually.”

“I get emails from people wanting government operating in a leaner manner instead,” said Magner.

“We don’t need the extra mill for three years. We can put it off,” said O’Neal.

“The impact is taking more money from the general fund and that impacts projects you have all talked about in the five-year plan,” said town manager Dara MacDonald.

“I think we have time to figure it out,” said O’Neal.

“Every year we will be subsidizing streets and alleys from the general fund,” said Prochaska.

“It’s all taxpayer money,” noted Magner.

“It means streets are being paid for by both sales tax and property tax,” said Fenerty. “That’s more equitable.”

“I keep coming back to spending money to maintain things like Jerry’s Gym is more affordable in the long run,” said Prochaska.

“This is an issue that should have a diversity of opinion,” said Billick.

It did.

A motion to increase the mills by one to a total of nine failed 5-2 with only Goldstone and O’Neal voting for it. This led to Prochaska making a motion to increase the mill levy to 10. That vote passed 5-2 with Fenerty and Magner voting against it.

The maximum mill levy approved by voters for the street and alley fund is 16 mills. It was set at eight mills in 2016. It will go up to 10 mills in 2026. The council will discuss the idea of rebating some residential properties at a future council meeting. Fenerty suggested town explore if it is possible to perhaps do some sort of rebate to help local businesses as well.