Snowmass Village hits pay the dirt on tax revenue

Snowmass Town Hall on May 3, 2020.
Maddie Vincent/Snowmass Sun

The town coffers of Snowmass Village ended up in the right place at the end of 2021 — a very, very good place, according to a financial update at Monday night’s town council meeting.

A record year for tax revenue (plus some spending that was pushed back to 2022 from Budget 2021) generated a total year-end fund balance of nearly $72.5 million across all funds in the town. According to a unaudited year-end financial summary included in this week’s council package.

“The good news is that in 2021, all funds have increased their fund balances,” the city’s chief financial officer, Marianne Rakowski, told the council. “These numbers reflect that we are in very good financial shape, and based on the sales tax numbers we are receiving so far for January, it looks like we are continuing this trend through 2022.”

The $25 million bounty goes into reserves and “returns to the pots to which it was allocated or it goes into available funds in each fund,” depending on where each income and expense bracket originated, according to Rakowski. .

Those funds will be available for the development of the 2023 budget, City Manager Clint Kinney said.

In dollar terms, the city’s main breadwinners were the general fund, the real estate transfer tax (RETT) fund, and the marketing and special events fund, all of which brought in millions more than expected.

The general fund generated revenues of nearly $24.9 million, nearly 32% more than projected revenues of nearly $18.9 million. Expenditures totaled $19.3 million, about 10% less than the $21.5 million forecast.

RETT took in $8.3 million in revenue, more than triple the $2.7 million budgeted. Expenses were approximately $3.5 million, about 15% less than the $4.1 million forecast.

The Marketing and Special Events Fund generated more than $6.4 million in revenue, about 39% more than the $4.6 million forecast. Expenditures totaled approximately $5.2 million, approximately 11% less than planned expenditures of nearly $5.9 million.

The capital improvement project fund was the only other fund that saw a seven-digit variance between the total planned and actual fund balance, but that was largely due to less spending, not more revenue.

The fund spent only about $3.1 million, barely a third of the planned spending of $9.3 million. Revenues have actually been a little underwhelming there: The fund brought in around $6 million, just under 6% below the $6.3 million forecast.

Certain revenues and expenditures have been carried over from 2021 to 2022 for this fund.

At Monday’s meeting, city council approved a handful of amendments to the 2022 budget on first reading, including adjustments to several funds to reflect revenues and expenses originally budgeted for 2021 but not spent. or received that year and the city plans to apply in 2022 instead.

This year’s budget was first presented in September, so the adjustments reflect some changes that have occurred since this budget was firmed up last fall. The changes also account for increased costs as well as increased revenue to cover these costs across multiple projects.

The Snowmass Mall Transit Center is expected to cost nearly $13.5 million more than originally projected, doubling the originally projected cost. The amended budget indicates that a federal grant of $13.5 million could cover the difference.

Renovations to the Mountain View 1 employee housing complex will cost about $3.9 million more than expected “due to rising construction and material costs,” according to a summary of the discussion agenda.

The city will transfer an additional $700,000 from the excise tax fund to the capital improvement project fund for the Mountain View project, and the capital improvement fund will also need to borrow about $3.2 million from the fund. general, which will be reimbursed by the accommodation. funds in 2023, 2024 and 2025.

A Department of Local Affairs grant for phase two of a fiber optic cable installation project cost about $144,000 more than expected. The increase in project expenses reflects the increase in grant income, which now totals just over $644,000.

The changes also reflect income and expenses for buying and selling a home in The Crossings in 2022 and revise the Snowmass Inn Fund to indicate that the town is now responsible for managing the operations of Snowmass Inn.

Most of the board revisions approved for 2022 were carryovers from the previous year’s budget. Abundant funds that ended up in coffers when the city hit sales tax in 2021 will be available in 2023, Kinney said.

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Sallie R. Loera