Aspen City Council discussed final points of 2025 budget before Nov. 12 approval

Aspen City Council reviewed a comprehensive range of budget items in its Oct. 28 work session, taking a deep dive into funding allocations for city departments, public services, and infrastructure. 

Council directed staff to remove the Bike Skills Trail Project from the Parks & Open Space budget, which aligns with its focus on fiscal responsibility and prioritization of essential city services. 

Council did not signal if the Bike Skills Trail would be brought up at a later supplemental request, or be included in next year’s budget. 

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Within the Parking and Transportation sector, the Council addressed uncollected parking fees and evaluated future options to expand e-bike subsidies and bike-sharing programs to support Aspen’s “first and last mile” transit solutions. These initiatives are part of the ongoing “Aspen Gets Us There” project, which aims to enhance sustainable transport options.

The Environmental Health and Climate Action departments proposed a $122,310 budget for the single-use bag program to cover reusable bag distributions, e-waste collection events, and personnel costs. 

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This program forms a core part of Aspen’s broader climate initiative, reflecting the city’s commitment to reducing waste and supporting environmentally friendly practices. Alongside this, the Renewable Energy Mitigation Program (REMP) Fund saw continued support for initiatives targeting energy efficiency and sustainability in both public and private sectors.

Water and Electric Utilities also featured prominently in the Council’s discussions. The utilities sector has an increased focus on infrastructure resilience, energy conservation, and service reliability, reflecting Aspen’s long-term goals for sustainable city operations. 

Funding considerations included ongoing projects to modernize water treatment facilities and invest in electric grid upgrades to meet the growing demands of the community.

Housing funds were also a key priority, especially the Employee Housing Program, which addresses Aspen’s workforce housing needs. 

Council considered a one-time $600,000 stipend pilot program designed to retain employees by providing financial assistance for housing. This program is new and focuses on employees outside subsidized units and seeks to include a 30% down payment assistance option, which would have a 30-year repayment program attached. 

Issues were brought up by City Council about the $600,000 not having a clear use. 

City Councilmember Bill Guth found this to be presumptuous to be in the 2025 regular budget.

“We have not discussed the schematic concept, let alone the details,” he said. “I do not think it’s appropriate to do this now. It could always be done as a spring supplemental request, or in the fall. I think this sets a bad precedent to set, to earmark funds for conceptual funds that have not even been presented to us.”

City Councilmember Ward Hauenstein agreed with Guth.

“Expenditures have to be approved by City Council for over $50,000, and to ask for $600,000, where we have no idea what it’s for,” Hauenstein said. “I would prefer to put this on a supplemental request after we get a work session on this.” 

Council will have a Nov. 11 work session to discuss the stipend and decide if they wish to include this in the 2025 budget or wait to bring up the funding as a supplemental request later in 2025. The work session will include having more details about where the money will go, which will be provided by staff.

The fiscal year 2025 budget also allocates funds for capital improvements to city-owned housing and supports small down payment and rental assistance programs.

Arts and culture funding included allocations for the Wheeler Opera House and Red Brick Arts, which continue to serve as vital cultural hubs for Aspen. These institutions are set to receive funding to support both ongoing programs and facility maintenance, reinforcing Aspen’s dedication to cultural enrichment.

The Kids First fund, another essential component of the budget, received allocations for workforce training, increased utility costs, and facility maintenance for childcare facilities. 

This fund supports Aspen’s childcare needs, with a significant portion dedicated to enrollment and program support. Similarly, public education funding, sustained by a 0.3% dedicated sales tax, supports Aspen Family Connections and other community initiatives, with discussions about extending this tax beyond its 2026 expiration.

This tax has a sunset clause set at five years.

City Councilmember Sam Rose wondered why the city didn’t ask for more for childcare needs.

“I know there is a huge gap there,” Sam Rose said. “I know there is a huge childcare crisis here in the valley.”

City Manager Sara Ott said that City Council approved everything that Kids First had asked for, and if they had asked for more, they would have received more.

“The staff at Kids First agree and continue their savings, which will be used for a newly constructed facility in the future,” Ott said. “This is why City Council has left the affordable housing and childcare tax the way it is, at 90%, going into the Kids First fund. It’s been the policy of Council to build up savings for the eventual construction project.”

The Council also reviewed debt service obligations, including payments for significant city projects, such as the Aspen Police Department and new City Hall. These debts are managed within the constraints of Aspen’s general obligation debt limit, with careful projections for long-term fiscal health. 

Mayor Torre asked if it would be possible to pay off these debts early. Peter Strecker, Aspen’s director of finance, said that some debts will not be able to be paid off early due to the structure of the loans, but there may be certain debts that can, which would save the city money by not having to pay as much interest. Currently, the city has $6.3 million in debt.

Meanwhile, tourism promotion funds from the lodging tax will continue supporting initiatives like Winterskol, Food & Wine, and visitor centers, enhancing Aspen’s appeal as a premier destination.

Aspen’s Information Technology Department presented a $3.4 million budget proposal to enhance cybersecurity, network infrastructure, and software services. Proposed projects include fiber optic upgrades and backup system improvements, underscoring the department’s commitment to a robust digital infrastructure that supports city operations.

As the Council moves toward finalizing the FY25 budget, the council said that these allocations illustrate a balanced approach that considers immediate needs in housing, infrastructure, and environmental health while sustaining Aspen’s cultural and educational investments. 

Council has a follow-up session set for Nov. 12, where they will approve the final 2025 budget requests.