Town of Vail’s proposed 2023 budget is available for review

The town of Vail will be hosting two upcoming public hearings of its proposed 2023 municipal budget.

There will be opportunities for public comment on Tuesday, Nov. 15 and again on Tuesday, Dec. 6 as the Vail Town Council considers formal adoption of the 2023 budget. The $95.3 million expenditure plan is available on the town’s website.

Public comment can be made in advance of the meetings by emailing publicinput.vailtowncouncil@vailgov.com or during the council meetings, both in-person or virtually.
 
The 2023 budget priorities are driven by the Council Action Plan and community survey results. These include ensuring citizens can live and thrive in the community; providing a world-class guest experience; balancing Vail’s economic, environmental and social needs to deliver a sustainable community; as well as growing a vibrant and diverse economy. The budget also includes initiatives and programs to improve employee retention and recruitment to align with a philosophy of premium pay for premium services. 

Programs and initiatives proposed to be funded in 2023 along those themes include the following: 

Community 

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• $2.5 million for InDEED Funding  
• $500,000 each for the next phases of the Timber Ridge and Middle Creek development plans  
• $250,000 of support for Vail child care centers, funded with a portion of proceeds from the tobacco tax
• $32,000 allocation for cultural heritage efforts  
• $43,000 Vail heritage compilation and digital retention  
• $250,000 for a regional bike share program  
• $20,000 toward a grant specialist to focus on housing funds  

Experience

• $65,000 to fund town-wide guest service programs including PrimaVail scholarships, guest service curriculum and employee engagement program  
• $1.3 million for the Vail Village loading and delivery program, offset by $600,00 in delivery company fees
• $75,000 for a “big data” research project to learn more about guest patterns 
• $125,000 to partner with Vail Resorts and Vail Valley Partnership to host the National Brotherhood of Skiers Summit 

Economy 

• $3.1 million in special event sponsorships 
• $80,000 for Global Exchange program and peer resort visits 
• $1 million for the Civic Area Plan/Dobson design and engineering with an additional $100,000 in planning funds  

Environment  

• $200,000 for the Fire Free Five Rebate Program, with $25,000 toward a homeowners assistance publication
• $150,000 to begin implementing the Fire Free Five program at five town facilities 
• $200,000 funded by the Vail Local Marketing District for the Destination Stewardship Plan 
• $55,000 for the town’s portion of the USFS regional Front-Ranger programs 
• $100,000 placeholder for wildlife habitat improvement projects 

The recommended operational budget for 2023 municipal services is $63.8 million, an increase of 4.3% from the 2022 amended budget.

As a service organization, the majority of spending for municipal services is for staffing. For 2023, this represents $41 million, or 64% of the municipal services budget, which includes both salary and benefits. The town’s proposed staffing level includes 347 full-time equivalent positions. 

The 2023 proposed budget is funded by a projected $89.4 million net revenue budget, which is considered conservative. Excluding Vail Reinvestment Authority transfers, and a one-time $1.4 million transfer from the Vail Local Marketing District, this is a 7.7% decrease from the 2022 amended budget.  

Sales tax is the town’s main source of funding making up 38% of all revenues. For 2023, sales tax is conservatively proposed at $34 million, down 15% from the 2022 amended budget. Sixty-two percent of the estimated 2023 sales tax collections are budgeted for General Fund operations and the remaining 38% for the Capital Projects Fund. 

Other major revenue sources for the General Fund include projections of $6.1 million in property tax based on county valuation; $7.5 million in parking revenues, down 3% from 2022; and $5.9 million from the lift tax, down 6% from 2022.  

In addition, the RETT Fund is expected to collect $7 million based on a 5-year average prior to the pandemic; housing sales tax revenues for the Housing Fund are projected at $4.1 million, down 14% from 2022; and construction use tax collections for the Capital Projects Fund are expected at $2 million, based on a 5-year average prior to the pandemic with no large projects anticipated.  

General Fund reserves are projected at $46.6 million by the end of 2023 or 91% of annual revenues. This is well above the 35% minimum required by Town Council as a budgetary policy. Reserves for all funds are projected to be $79.5 million at the end of 2023.   

For questions on the town of Vail proposed budget and process, contact finance director Carlie Smith at csmith@vailgov.com or at 970-479-2119.