Crested Butte keeping close eye on sales tax revenues

Down 8.8% after the ski season… it’s up to summer

by Mark Reaman

For the town of Crested Butte’s 2026 fiscal year, the town staff made it clear at the June 15 council meeting, that “summer will tell the story.” Sales tax revenues through May in Crested Butte were down 7% given a slow tourism ski season due to an unusually lean snow and warm ski season. That lean snow situation has local officials on edge for a possible extreme wildfire season this summer and if that happens, tourism could suffer a second sales tax blow in 2026.

Finance director Lauren Hawcroft told the council that “the town remains financially stable and within budget expectations. Revenues have been soft but overall performance remains stable. Summer will tell the story,” she said.

Mayor Ian Billick expressed some worry about the finances. “Being down 8.8% through April (and 7% through May) is undoubtably due in a big part to the low snow winter,” he said. “I talked to TAPP (Tourism and Prosperity Partnership) executive director Andrew Sandstrom and based on his figures, he projects we will be down 5 to 7% for the year. He said a fire or smoke incident could really knock us down. We are down about $188,000 in sales tax through April. Projecting out Sandstrom’s numbers, if the trend comes through, that will put us down about $500,000 which seems reasonable given the circumstances and our reserves. If we end up down 10%, summer could be challenging for our budget.”

“I’m a bit more optimistic,” said town manager Dara MacDonald. “We will know more when we see June and July’s sales tax.” She said the projected fund balance for the general fund where most sales tax is recorded, is estimated to be $9.6 million by the end of 2026. “About $7 million is a year’s operation expenses.”

“That’s why being down $500,000 seems reasonable to absorb,” said Billick.

Hawcroft said April numbers were looking better given some businesses filed their sales tax late. “Summer will be the key indicator moving forward,” she reiterated.

Staff said they were not yet making any broad conclusions since almost half of the town sales tax comes in between June through September. Hawcroft said expenditures are lining up within budget but said in the town’s five-year capital plan there is more than $51 million worth of projects budgeted. “Those are things like the marshal’s office, the parks, deferred maintenance. They can’t be ignored forever.”

Staff will return in the fall with an update and recommendations.