Eagle County’s 2024 budget anticipates a 13% increase in property tax collections
Officials could have boosted collections by 45%
The portion of your property tax bill dedicated to Eagle County’s government is probably going up next year, but not as much as it could have.
The Eagle County Board of Commissioners Monday heard a report about a draft budget. That budget comes with a proposal for a 13% increase in the county’s property tax collections. The increase could have been as much as 45%. That number isn’t yet set in stone, and depends upon the decision of the commissioners, as well as what may come from a special session of the Colorado Legislature. That session, set to begin Nov. 17, is intended to find a possible solution to the statewide jump in property values this year.
County Chief Financial Officer Jill Klosterman told the commissioners that the proposed increase may not be the right number, but it does take inflation, insurance and other costs into account. Still, the county’s share is only about 13% of every local property tax dollar.
Even with an increase in property tax collections, the county’s 2024 budget could require using more than $17.8 million in reserve funds. Most of that money — $13.5 million — will be used to construct a new county facility in Edwards. Reserve funds will also be used for general fund spending on fire mitigation ($2.1 million), and a $750,000 contribution to the Castle Peak Senior Life and Rehabilitation Center.
County department heads have been asked to reduce operating expenses, or keep them even with 2023 levels. Some departments have requested increased spending. The Eagle County Clerk and Recorder has requested an additional $190,000 for operating supplies that will be needed in a presidential election year. The county’s sustainable communities effort has requested an additional $770,000 to grow community energy programs, including incentives for projects for “income-qualified” residents.
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County Finance Director Anna Earl told the commissioners that the property tax increase, combined with expected flat sales taxes and the phase-out of federal COVID-era spending, puts roughly 4% more into the 2024 general fund than 2023 spending.
Much of the county’s revenue comes from sales tax and other sources, with property tax accounting for about 25% of collections.
A 45% increase in those collections would be hard on businesses and residents, Klosterman said. But, she added, just about every taxing district is dealing with a lot of what-if scenarios at the moment.
Commissioner Jeanne McQueeney said property tax calculation methods being used by the county’s finance department are confusing, adding that a neighboring county has taken a more simple approach. A mill levy credit for taxpayers needs to be a bigger part of the formula, she said.
County officials had originally scheduled a Nov. 17 meeting for further budget discussions. That meeting has been rescheduled to Nov. 27.
But cutting the mill levy isn’t an answer, either. Commissioner Kathy Chandler-Henry noted that Las Animas County, in southeastern Colorado, dropped its mill levy due to rapid development by the oil and gas industry. But when that industry hit a lull, county revenues plummeted, and voters haven’t agreed to raise the mill levy again. That’s left that county hard-pressed to fund its operations, Chandler-Henry said.
