Proposed 2025 Vail Municipal Budget available for public review

The Town of Vail on Monday issued the following press release on its proposed Vail Municipal Budget:

The Vail Town Council will consider formal adoption of the town’s 2025 municipal budget during upcoming regular evening meetings on Tuesday, Nov. 19 and Tuesday, Dec. 3. Both meetings begin at 6 p.m. Public input opportunities will be available in person, as well as virtually by registering at www.vail.gov/town-council or in advance of the meetings by emailing publicinput.vailtowncouncil@vail.gov. The $158.5 million expenditure plan is available for review on the town’s website at https://www.vail.gov/government/town-council/council-agendas-meeting-materials.  

In addition to providing and maintaining excellent municipal services, the proposed 2025 budget was guided by the five priorities listed in the Town Council Strategic Plan, which are 1) create a strong community and create affordable housing opportunities; 2) support our workforce; 3) provide an authentic Vail experience; 4) transportation; and 5) environmental sustainability. Programs supporting those themes include: 

Create a strong community and create affordable housing opportunities 

• West Middle Creek development placeholder – $10 million 
• Buydown housing placeholder – $2.3 million 

• Habitat for Humanity community housing contribution for Timber Ridge units – $2 million 

• Vail InDeed Program – $1.5 million 

• Housing compliance software – $35,000 

Support our workforce 

• Childcare program funding placeholder – $551,000 

• Healthcare and childcare resource promotion – $8,000 

Provide an Authentic Vail Experience 

• Dobson Arena Renovation – $50.4 million 

• Transfers to the Destination Marketing Organization for special event funding – $2.7 million 

Transportation 

• Design of South Frontage Road pedestrian improvements – $250,000 

• Car share program operations and infrastructure placeholder – $155,000 

• Expanded Sole Power program to include transit – $57,500 

Environmental Sustainability 

• Geothermal Energy System Placeholder – $1.5 million 

• Gore Creek Pesticide Campaign – $50,000 

• Gore Creek Streambank Mitigation – $140,000 

• Zero Hero Waste Program Support – $38,800 

The budget also prioritizes initiatives to improve employee retention and recruitment. The 2025 proposed budget includes a $600,000 increase for outcomes of recently completed compensation market study. Additionally, the town has budgeted an overall 5% increase in wage adjustments for current staff, which allows for a combination of 1% to 5% merit increases and other rate adjustments to provide competitive pay. 

The recommended operational budget for 2025 municipal services is $74.5 million, an increase of 5.1% from the 2024 amended budget. Public Safety makes up 26.3% of municipal spending, followed by Transit and Parking at 17.8%, Public Works functions at 17.5%, Administration/Risk Management at 10.3%, and Contributions and Events at 5.8%. As a service organization, the majority of spending for municipal services is for staffing. For 2025, this represents $47.7 million, or approximately 64% of the municipal services budget. The town’s proposed staffing level is 354.6 full-time equivalent (FTE) positions, representing an increase of 3.6 FTEs.  

The 2025 proposed budget is funded by a projected $132.5 million net revenue budget. Excluding one-time revenues, net revenues total $103.1 million, representing a 5.2% decrease from the 2024 forecast and a 1.5% decrease from 2023 actuals due to a projected decrease in investment earnings and a decrease in grant funding. Revenues are projected conservatively and reflect an observed decrease in the rate of price inflation, and a continued normalization in visitation. 

Sales tax is the town’s main source of funding making up 32% of all revenues. For 2025, sales tax collections are conservatively projected at $42.1 million, up 0.9% from the 2024 forecast. Sales tax revenues are split with 62% going to the town’s General Fund and 38% going to the Capital Projects Fund. 

Other major revenue sources for the General Fund include projections of $8.1 million in property tax based on county valuation; $9 million in parking revenues; and $6.9 million from the lift tax.  

In addition, the RETT Fund is expected to collect $7.7 million, which is down 3.8% from the 2024 forecast; housing sales tax revenues for the Housing Fund are projected at $5.2 million, up 1% from 2024; and construction use tax collections for the Capital Projects Fund are expected at $2.2 million.  

General Fund reserves are projected at $32.8 million by the end of 2025, excluding $5 million proposed to be set aside annually for future parking structure reconstruction. This represents 53% of annual revenues and is above the 25% minimum required by Town Council as a budgetary policy. Additionally, Capital Projects Fund reserves are projected to be $5.2 million, above the minimum of 25% of capital projects sales tax revenues; and reserves in the Real Estate Transfer Tax Fund are projected to be $8.2 million, above the minimum of $2 million. Town-wide reserves are projected to be $56.4 million at the end of 2025.   

For questions on the Town of Vail proposed budget and process, contact Finance Director Carlie Smith at csmith@vail.gov or at 970-479-2119. 

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