Town of Vail passes 2025 budget, plans to spend a record $157.8 million

Vail is planning to spend nearly $160 million in 2025, by far the most the town has ever budgeted in its 58-year history.

The town’s budget passed its second reading on Tuesday, receiving a unanimous vote among the Town Council’s seven-member body.

Next year’s $157.8 million spending plan is 17% higher than this year and nearly double what was approved for 2022 when post-pandemic fears had the council thinking more conservatively. Three years ago, in December 2021, the council passed an $81.2 million spending plan for 2022. The town would go on to take in $95.8 in revenues that year, boosting the town’s reserve balance to $173.9 million by the end of 2023.

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The town began to spend that massive reserve fund down this year, budgeting a total spending plan of $134.8 million for 2024. The town had projected its 2024 revenues to be $100.4 million, but on Tuesday town of Vail Budget Analyst Jake Shipe told the council that revenues are expected to increase by a net $18 million this year. The council also approved a supplemental budget amendment on Tuesday detailing a proposed expenditure increase of $5.1 million for 2024.

“During the 2024 budget process, revenue projections were made conservatively due to economic uncertainty following the pandemic, however, year-to-date collections have exceeded expectations,” Shipe said. “While visitation has returned to pre-pandemic levels, rising inflation has continued to drive up costs.”

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By the end of 2024, the town will have spent down its reserves by approximately $87.8 million, with major expenditures including the cash funding of the Timber Ridge housing project and the Booth Heights acquisition.

The Timber Ridge development will bring 302 total units to town — a mix of one, two, three and four-bedroom units — on a site that previously contained 96 two-bedroom units. The town of Vail contributed $40 million toward the $190 million project and will purchase $26 million worth of units.

The Booth Heights parcel was purchased for $17.5 million and will be preserved against future development to protect a native herd of bighorn sheep that winters in the area.

In 2025, the town is projected to use $10 million in additional reserves toward another housing development, the West Middle Creek projects, and another $20.9 million in reserves is expected to go toward the remodel of the Dobson Ice Arena.

By the end of 2025, the town’s reserves are expected to be roughly $55.8 million. The town’s total revenues are projected to be $132.5 million in 2025.

In approving the budget, Mayor Travis Coggin commented on the large dip in reserves.

“You see that big change in fund balance between ’23 and ’24 and then you realize the impactful, big projects that we’re working on, and there’s a lot in here,” Coggin said. “I’m comfortable with where this is.”