Basalt, Pitkin County talk 2025 budgets

Increases are expected for Pitkin County’s 2025 proposed budget, staff said during a Tuesday work session.

The proposed 2025 budget for all funds is $255 million. This is a $35 million increase from 2024’s budget of $220 million.

For all county funds, revenues are projected to increase by 15.6%, and the ending fund balance is projected to be $155 million, which is 79% of operating expenditures. 

The proposed general fund budget is $55.6 million, a 4% increase. General fund revenue is projected to increase by 2.3%. The projected ending fund balance of $17.4 million equals 31% of operating expenditures. The budget proposes using $9.1 million in general fund balance for capital projects. The general fund operating budget has a deficit of $2 million in 2025, due to one-time expenditures totaling more than $2.3 million.

A 2025 proposed budget message states that “the 2025 budget and five-year plan have been developed under uncertain economic circumstances. Economists hold competing views of a ‘soft landing’ versus a mild recession for the United States economy.”

“The upcoming elections and global tensions exacerbate this uncertainty and introduce the possibility of a deeper recession than now projected,” the message added.

The message went on to state that the local labor market remains competitive to recruit and retain employees across all sectors. The county’s tourist economy has seen a decrease in visitors. There was, however, no reduction in sales tax, which is likely due to inflation.

In an effort to maintain a healthy fund balance as a “hedge against this uncertainty,” county staff has considered how these economic trends will impact revenues and costs, as well as the prospects and timing for returning to a more normal economic cycle, the message states.

The budget and a five-year plan emphasizes retention and recruitment of staff in the face of a tight housing market and housing inflation, ongoing and localized inflation in specific sectors necessary for county operations like radios and electric battery storage, funding for one-time expenditures, board directed priorities and projects including affordable housing and greenhouse gas reduction efforts, and funding for maintenance of county capital assets, like roads and bridges and public safety facilities, like jail and dispatch.

The board recently voted to approve third quarter supplementals.

A first reading is scheduled for Dec. 4. A decision is set to be made on Dec. 10.

Pitkin County ballot questions

Pitkin County staff also noted that there are several questions on the November ballot that will affect the 2025 budget and five-year plan if passed. With the exception of bonding at the landfill, the 2025 budget and five-year plan does not currently reflect the fiscal impact of the outcomes of the November election.

The town of Basalt also went over their stances on the ballot questions at their town council meeting Tuesday evening.

The council unanimously voted to support ballot question 1A, a proposed property tax increase to help fund affordable housing.

The new property tax is for a mill levy of 1.5 mills up to the next 25 years. For homeowners, the tax is approximately a $121 increase per $1 million of property value annually. For commercial property owners, it is approximately a $435 increase per $1 million of value annually. This would bring in about $8.5 million to the county.

The council also unanimously voted to support ballot question 1C, which seeks to amend Article II of the county’s governing document, the Home Rule Charter, to reaffirm Pitkin County’s power to approve and carry out the layout plan for the Aspen-Pitkin County Airport.

Basalt 2025 budget

Basalt Town Council also went over a 2025 budget proposal during a Tuesday meeting.

The proposed estimated beginning fund balance beginning Jan. 1, 2025, is almost $34.6 million. The proposed general fund is $12.2 million, a $2 million increase from last year. The projected ending fund balance is $11.8 million. The 2025 budget proposes using $6.8 million for capital projects. 

Other estimated funds for the beginning of the year: 

• Restricted fund at $8.9 million
• Capital construction fund at $6.8 million
• Water fund at $6 million
• Conservation trust fund at $319,542
• HOA fund at $16,651
• Bond fund at $63,036

Conversations on the budget will continue with council until its approval by resolution on Nov. 26.

Regan Mertz can be reached at 970-429-9153 or rmertz@aspentimes.com.