News
Sports
ENLARGE
VAIL — A preliminary year-end financial report for 2009 shows a better than anticipated budget performance for the town of Vail. Finance Director Judy Camp says the town ended the year with a surplus in the general fund and no use of reserves.
In preparing the 2009 budget, it was anticipated that $700,000 of a $3.2 million surplus from 2008 would be needed to balance the budget, following earlier cuts of $2.9 million. However, due to a variety of factors including reduced operating costs during November and December, expenses remained below budgeted estimates for the year, and actual revenue exceeded expenses by $1.1 million.
The town spent $27.5 million in its general operations in 2009, a decrease of $1.7 million from budget and $2.2 million or 7.3 percent below 2008 expenditures. Savings included a reduction of approximately $250,000 in reduced utility costs and lower fuel pricing; $100,000 in reduced snow removal costs due to lower than average snowfall; $127,000 in savings associated with employee recruitment and contract labor; and $100,000 in deferred maintenance and equipment purchases.
Savings of $130,000 were also realized as a result of completing master planning projects in-house rather than outsourcing and $200,000 from using town staff rather than outsourcing building inspections.
Estimated general fund revenue of $28.6 million in 2009 was essentially on budget with shortfalls in parking revenue of $484,000; franchise fees, $114,000; ski lift tax, $67,000; and rental revenue, $25,000. Those decreases were mostly offset by other revenue sources including property and ownership tax which exceeded budget estimates by $213,000 and licenses and permits which increased $106,000.
Sales tax collections totaled $16.9 million in 2009 and exceeded budget by $300,000, or 1.8 percent, while lagging 2008 collections by 13.8 percent. The 4 percent sales tax is the town's largest single revenue source and is a major indicator in assessing the community's overall economic health.
Collections of the 1 percent Real Estate Transfer Tax (RETT) in 2009 also exceeded budget projections by $40,549 with collections of $2.5 million. Expenditures were lower than budgeted by $4.4 million. Of that amount, $2.8 million is related to projects or programs underway but not yet completed and will be requested for re-appropriation.
Capital projects revenue for 2009 exceeded expenses by $1.2 million, increasing the year-end fund balance to $10.5 million. Capital project expenditures were lower than budget by $4.6 million. Of that amount, $3.8 will be requested for re-appropriation with $2.1 million directed toward projects in process; $900,000 to fulfill a legal requirement to guarantee Timber Ridge debt service; and $800,000 to be reallocated to new and/or related projects.
The 2010 budget of $50.3 million includes no increase to operating expenditures and no employee salary increases, while maintaining municipal service levels at current levels and funding construction of the West Vail fire station from accumulated cash.
In 2009, the town reduced a net of 12 full-time equivalent employees. The only personnel additions for 2010 are two dispatch services positions funded externally by the E911 Board, plus three firefighters partially funded by a federal grant.
The town's financial health will be highlighted in more detail during Vail's annual community meeting, from 5 p.m. to 7 p.m., March 9, at the Donovan Pavilion.
In preparing the 2009 budget, it was anticipated that $700,000 of a $3.2 million surplus from 2008 would be needed to balance the budget, following earlier cuts of $2.9 million. However, due to a variety of factors including reduced operating costs during November and December, expenses remained below budgeted estimates for the year, and actual revenue exceeded expenses by $1.1 million.
The town spent $27.5 million in its general operations in 2009, a decrease of $1.7 million from budget and $2.2 million or 7.3 percent below 2008 expenditures. Savings included a reduction of approximately $250,000 in reduced utility costs and lower fuel pricing; $100,000 in reduced snow removal costs due to lower than average snowfall; $127,000 in savings associated with employee recruitment and contract labor; and $100,000 in deferred maintenance and equipment purchases.
Savings of $130,000 were also realized as a result of completing master planning projects in-house rather than outsourcing and $200,000 from using town staff rather than outsourcing building inspections.
Estimated general fund revenue of $28.6 million in 2009 was essentially on budget with shortfalls in parking revenue of $484,000; franchise fees, $114,000; ski lift tax, $67,000; and rental revenue, $25,000. Those decreases were mostly offset by other revenue sources including property and ownership tax which exceeded budget estimates by $213,000 and licenses and permits which increased $106,000.
Sales tax collections totaled $16.9 million in 2009 and exceeded budget by $300,000, or 1.8 percent, while lagging 2008 collections by 13.8 percent. The 4 percent sales tax is the town's largest single revenue source and is a major indicator in assessing the community's overall economic health.
Collections of the 1 percent Real Estate Transfer Tax (RETT) in 2009 also exceeded budget projections by $40,549 with collections of $2.5 million. Expenditures were lower than budgeted by $4.4 million. Of that amount, $2.8 million is related to projects or programs underway but not yet completed and will be requested for re-appropriation.
Capital projects revenue for 2009 exceeded expenses by $1.2 million, increasing the year-end fund balance to $10.5 million. Capital project expenditures were lower than budget by $4.6 million. Of that amount, $3.8 will be requested for re-appropriation with $2.1 million directed toward projects in process; $900,000 to fulfill a legal requirement to guarantee Timber Ridge debt service; and $800,000 to be reallocated to new and/or related projects.
The 2010 budget of $50.3 million includes no increase to operating expenditures and no employee salary increases, while maintaining municipal service levels at current levels and funding construction of the West Vail fire station from accumulated cash.
In 2009, the town reduced a net of 12 full-time equivalent employees. The only personnel additions for 2010 are two dispatch services positions funded externally by the E911 Board, plus three firefighters partially funded by a federal grant.
The town's financial health will be highlighted in more detail during Vail's annual community meeting, from 5 p.m. to 7 p.m., March 9, at the Donovan Pavilion.
