How Avon will spend $54 million budget in 2025
In preparation for a flat revenue year, town tightens its belt
Zoe Goldstein/Vail Daily archive
After spending more than $70 million in 2024, including $20 million in carried over funds that were approved but not spent in 2023, Avon has prepared a conservative budget of $54 million for 2025.
Paul Redmond, the town’s finance director, presented the final 2025 budget to the Town Council on Tuesday, and it was approved unanimously.
“We are investing in the community, and we are maintaining our current program service levels,” Redmond said.
Avon anticipates total revenues of $55 million in 2025, a $4 million decrease from 2024. To match expenditures to revenues, the town plans to spend almost $54 million in 2025, a significant change from the town’s 2024 expenditures of $74 million.
However, anything can happen between when the budget is drafted and when dollars are actually spent — at this time last year, Avon budgeted $51 million for 2024.
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Flat revenues expected in 2025
The biggest hit to revenues in 2025 will be taxes, which are expected to take a $4 million dip from 2024. Taxes are still anticipated to make up 65% of the town’s revenues. The town’s real estate transfer tax revenues, which were high in 2023 and 2024 at $8.5 million, are anticipated to drop to around $5 million.
Avon’s property tax rates will remain the same in 2025. General property taxes will again be 8.956 mills, and the Avon General Improvement District (“The Ascent”) will remain 15.640 mills. Last year, property values were reassessed, leading to higher total property tax revenues for the town in 2024. This year, the town’s revenues will decrease by 2% to nearly $3 million, with property values in the town totaling close to $331 million.
Avon tightens belt on spending
Avon’s top expenditures next year will be on capital improvements and equipment replacement (though $14 million less than last year); followed by public works, engineering and utilities; general government and finance; and public safety.
Avon has many ongoing capital improvement projects, including an all-electric powered public works garage, improvements to the Eaglebend Pocket Park, and safety improvement projects on Avon Road and U.S. Highway 6.
Avon staff has taken pains to cut back across all departments, saving the town $4 million in general government and finance expenditures.
The town’s capital projects spending will take the biggest dip, going from $24 million in 2024 to $7 million in 2025. The town plans to spend millions less on its facilities and roads and streets projects.
Staffing will stay relatively steady
The town’s total number of full-time staff will stay relatively equivalent to 2024, with two total new positions. The police department will see two new patrol officers, bringing the total to 13.
Avon is also adding a second senior project engineer position to tackle the town’s many ongoing and anticipated engineering projects, including several capital improvement projects, the Avondale Apartments community housing project, and more construction in the Village (at Avon).
“We do have a backlog of projects, so we’re money heavy, engineer short,” said Eric Heil, Avon town manager.
More engineers mean more attention to detail.
“Weekly, if not daily, we’re out there making sure things are getting built right,” Heil said.
Unplanned issues, like the water main drilling incident that caused a 22-hour water outage and severe flooding for some Avon residents last month, also take up town engineer time.
Luring a new engineer is something Heil has already identified will likely be a challenge. To make the position more enticing, $800,000 has been allocated from the general fund to purchase a two-bedroom condo in Avon to offer temporary housing to the engineer. The housing will then be turned over to the town’s community housing pool.
Avon Downtown Development Authority gathers momentum
The Avon Downtown Development Authority, created with a special vote in August 2023, took effect for the first time in 2024. The authority is charged with improving the area it covers — nearly 300 acres on the north side of town, including the West Town Center, East Town Center and valley floor area of the Village (at Avon) — during its 30-year lifetime, with 50% of its revenues dedicated to building community housing.
Using tax increment financing to capture the increment of property taxes from new development within its area, the authority captured $50,000 in revenues this year and spent around $10,000. Next year, the authority is expected to hit its stride, taking in over $400,000 in revenues and spending nearly $350,000.
