Anticipating a significant drop in sales tax revenue, the town of Dillon has frozen hiring and postponed some planned projects to help balance the 2024 budget ahead of its scheduled approval next month.

Sales tax revenues are projected to be down 7% in 2024, or about $727,000, according to Dillon special projects manager Carri McDonnell, whose current role involves managing the budget.

In the 2024 budget, total expenditures are projected at just under $29.13 million, up about 1% from the current year’s expenditures, McDonnell said. The general fund is balanced, with expected revenues finishing $275,748 over the planned expenditures she said.

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

The Dillon Town Council is expected to vote on the 2024 budget at its Dec. 19 meeting. The mill levy in town is projected to decrease this year, though exact details will be dependent upon the results of assessed valuations expected in mid-December, McDonnell said.

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.

“We already had a sales tax drop in the budget, we just didn’t have as deep a drop as 7%,” McDonnell said. “If revenues come up in 2024, or we see them come up in the winter, we can bring projects back or have more money in the bank to do projects in 2025.”

The $250,000 remaining in the 2024 budget for the design and construction of the town park plaza is the most expensive capital project planned for next year, McDonnell said. Other capital projects in next year’s budget include boat ramp engineering, a native species garden, fuel reduction at the nature preserve and vehicle replacements, she said.

Landscaping on Lodgepole Street, drainage projects on West Buffalo and Three River Streets and street overlays are also budgeted for in 2024, McDonnell noted. There will be no increase in the water capital or sewer fees but there will be a 2% increase in water volume charges in 2024, she added.

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.

“What I decided to do to be fair and equitable across all departments is that we are going to stop hiring new full-time employees, starting today,” Johnson said. “Because we need to take care of what we already have in our organization before we start taking more on.”