Breckenridge Ponders Budget

Cautious optimism was the theme Tuesday as the Breckenridge Town Council and department heads spent the day grappling with a budget for fiscal year 2006.

Lingering economic uncertainty in Colorado and nationally, especially in light of sky-high energy prices, led town manager Tim Gagen to present what he called a conservative $37.2 million budget, holding the line on spending in most areas.

"We saw some recovery this year ... not enough to add much new, but it's getting us back to where we were," he said, explaining that the 2005 rebound in tax revenues put the town back on track to match its previous best year in 2001.

Gagen said that 2005 sales tax revenue was up and the real estate transfer tax was "through the roof."

"As a rule of thumb, we need to grow 6 percent to add anything. Staff is stretched and stressed. They're taking on more," he said.

Gagen also pointed out that some of the town's major facilities, including the Riverwalk Center, rec center and town hall, could be in need of significant repairs in coming years. The town's elected officials and planners also discussed the phenomenon of the dramatic climb in revenue from real estate transfer taxes, trying to discern whether the trend is sustainable in the long term. Sales tax is still by far the biggest source of revenue for the town, at 37 percent, but the transfer tax now amounts to about 10 percent of revenues. In dollars, that revenue is projected to reach a record $4.6 million this year.

Town council members were a little more optimistic than Gagen in their assessment of the fiscal situation, acknowledged by the town manager as he launched a discussion on potential capital investments.

"What I'm hearing is, we're a little more bullish than my pessimism," Gagen said, asking the elected officials to present and prioritize a "wish list" of investments.

More information is available at www.townofbreckenridge.com.