Dillon Town Council voted unanimously Tuesday, Dec. 19, to approve an annual budget for the upcoming year that was adjusted to account for declining sales tax revenues in recent months.

The 2024 Dillon town budget estimates about $28,870,000 in total expenditures. Last month, the town froze hiring and postponed some planned projects to help balance the budget amid declining sales tax revenues.

Sales tax revenues are projected to be down 8%, more than $725,000, in the 2024 budget, according to a memo written by special project manager Carri McDonnell, whose current role includes balancing the budget.

McDonnell reviewed the 2024 budget in an interview last month with a Summit Daily reporter.

“Overall, the funds are in good shape and the town is sitting in good shape,” McDonnell said at the time. “Even with that reduction in sales tax, we are able to end the year in really good shape.”

The reduction in sales tax revenues is driven in part by the closure of businesses in town over the past year, including Bed Bath & Beyond and the Arapahoe Cafe & Pub, McDonnell said. There has also reportedly been a decrease in online sales.

The town has moved $100,000 for the engineering of a seawall and half of $500,000 for the design and construction of the town park plaza to 2025 to account for the larger-than-anticipated revenue drop, McDonnell said. Both were originally budgeted for 2024.

Additionally, $100,000 planned for disc golf course improvements and $100,000 planned for amphitheater improvements in 2024 will now be spread out over two years to help make up for the loss in sales tax revenues, she said.

At the marina, fees are expected to increase 5% to 10% across the board in 2024, including boat rental costs and slip fees, McDonnell said. There is also $216,000 budgeted next year for replacement of six pontoon boats, which are a bit behind on their typical replacement schedule due to the COVID-19 pandemic, she said.

Town Manager Nathan Johnson said at a Nov. 21 Dillon Town Council meeting that the positions on hold during the hiring freeze include a police officer, police sergeant, events and recreation coordinator, and marine operations supervisor.

That freeze in hiring remains in the 2024 budget that Town Council approved.

Also Tuesday, council members approved a decrease in the town’s mill levy from 3.351 mills down to 2.564 mills. One mill equates to $1 per $1,000 dollar in assessed value. 

A significant increase in property values in town led to an increase in revenues generated by the mill levy, Johnson explained. But because the town charter contains a provision capping revenue increases at 5%, the mill levy had to be reduced so revenues did not exceed that cap, he said.