Vail Town Council approves $135.7 million spending plan in 2026 budget

The Vail Town Council passed its 2026 budget on Tuesday, a $135.7 million spending plan, which will be significantly lower than the record-breaking 2025 budget, and about even with the 2024 budget.

In 2025, the town’s $78.8 million capital projects budget accounted for about half of the town’s total spending plan of $157.8 million, while the 2026 budget is projected to spend $23.4 million on Timber Ridge unit purchases and $24.6 million in other capital expenditures. Approximately $82 million is budgeted to go into municipal services in 2026.

The town is expecting to receive $142 million in revenues in 2026, so it will not have to dip into its reserves as it has in recent years. In 2024, the town spent down its reserves by approximately $87.8 million, leaving it with about $56 million in reserves remaining at the end of 2025.

Of the $81.9 million projected to be spent on municipal services in 2026, salaries account for $38.9 million, benefits account for $12.3 million, contributions represent $4 million, special events represent $3 million, and all other operating expenses total $23.7 million.

The town intends to create approximately 20 new positions in 2026, using both new and existing revenue sources.

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Council member Dave Chapin said he was aware of some concern regarding the addition of the new positions, but said he felt comfortable approving the budget with the new revenue sources that are expected to come in.

“I know there’s been some concerns about employees, but we now have means of revenue to pay for those, we have our summer parking program and enhanced bus service,” he said. “I commend our staff for coming forward and being reasonable with our expectations.”

A few late-breaking changes required some revision to the budget in recent days, town of Vail budget analyst Jake Shipe told the council.

Approximately $1 million was shifted away from a plan to create bike lanes on Vail Road, and instead put toward a Main Vail underpass improvement project.

“Staff believes that the additional funding will provide an enhanced aesthetic for the Main Vail underpass,” Shipe said.

The proposed budget was also amended in recent days to include $30,000 in matching funds for the Vail Valley Mountain Trails Alliance’s new stewardship crew. The new crew will focus on ecological restoration, dispersed recreation management, trailhead maintenance and resource protection.

“This contribution is contingent upon the organization receiving a minimum in $30,000 in contributions from other municipalities or private donors,” Shipe said.