As Breckenridge heads into 2025, it is gearing up for a year with an anticipated $157.4 million in expenditures, a $23 million deficit in cash flow and minimal revenue growth. 

In 2025, the town anticipates having a net revenue of $137.5 million. While the town is spending more than it is bringing in, its finance department said the town remains in a strong financial position.

Finance director Dave Byrd said the town is coming into a year where it has the opportunity to tackle a number of projects and this is driving expenses.

“We’ve got Project Runway kicking off … we also have major infrastructure projects in our capital fund, and it was kind of a year where both things are really happening at the same time, and we’re in very good condition financially to weather these investments, but it led to a negative cash flow for 2025,” Byrd said. 

Project Runway will bring a new 140-150 unit neighborhood to the Airport Road area geared toward the local workforce. Breckenridge plans to put around $8.6 million toward kicking off the project in 2025, which is anticipated to take 2-3 years. Due to upcoming construction on the site, the 2024-25 ski season will likely be Airport Road’s last year housing free skier parking, since the development will be on top of where the parking lot is currently located. While officials are eyeing the McCain property as free skier parking’s new home, no plans have been solidified.

The town is going into a year where it plans to knock numerous public works projects off its list, totaling a $13.3 million price tag. The heftiest price tag, accounting for nearly half the overall price tag at $6.6 million, belongs to a culvert bridge and roadway rebuild on Broken Lance Drive. Breckenridge will also be putting $3 million of its capital fund budget to roadway resurfacing and $2 million toward Fiber 9600 infrastructure. It will also be spending $1.5 million on a skate park expansion.

In a staff memo for an Oct. 22 meeting, it outlined staff anticipating “minimal revenue growth while personnel and operating costs continue to rise.” 

Byrd said what the town has been able to collect in taxes has plateaued in the last couple years.

“We had our COVID Boom, and that kind of hit its peak in 2022 and now things have kind of leveled off, right,” Byrd said. 

Breckenridge reaped the rewards of a stark influx in visitation to mountain towns during the COVID-19 pandemic and had record-high tax collections. In 2021 the town collected an unprecedented $11 million in real estate transfer taxes. Collections from the tax have since dropped down to $6 million annually and it is anticipated to remain that way for the next five years. Similarly, Breckenridge’s accommodations tax for lodging jumped 50% from 2020 to 2021 yet saw declines in 2023 and 2024 and expects to see another in 2025. The town’s finance department predicts it will collect around $300,000 less in accommodations tax from 2024 to 2025. Additionally, it is assuming reductions in revenue from its marijuana, facilities and childcare funds. 

Senior accountant Tracey Lambert explained to council at an Oct. 8 budget retreat a 4.5% merit increase, given to personnel on the anniversary of their start date with the town, will drive up Breckenridge’s 2025 expenditures. Healthcare costs for personnel are expected to rise $200,000 based on staffing levels and the town plans to add 7.5 new employees to its payroll.

Town Council members were particularly keen on supporting budget increases to programs geared toward housing affordability and sustainability.

In 2024, Breckenridge saw significant demands in its programs geared toward housing affordability, warranting mid-year appropriations, and had taken those considerations into their 2025 proposed budget. 

During a July Breckenridge Town Council meeting, housing manager Laurie Best informed council the town had spent 85% of its Housing Helps Budget, a program which incentives residents to deed restrict their homes to ensure there’s affordable housing stock for the workforce, by the end of June. 

With $2.13 of the $2.5 million budget being spent by the last week of June, council approved $600,000 in appropriations at an Aug. 27 meeting. For 2025, the town is budgeting around $3 million for the program. 

Breckenridge staff members proposed a budget increase to expand its electric bike program at an
Oct. 22 meeting, which council unanimously approved. In the proposed budget, it details a $478,000 spend on the program, which is up from around $360,000 in 2024. 

Council showed no hesitation toward approving the increase, with council member Todd Rankin noting he “loved the program” and council member Dick Carleton adding he was once hesitant about the launch of the program but now sees its value.

Mobility staff members reported to council the program saw a near 52% increase in usage year over year. The budget increase they sought approval for would up bikes in the program from 125 to 170 and the number of bike hubs from 26 to 30.

Breckenridge Town Council unanimously approved the 2025 budget during a Tuesday, Oct. 22 meeting.