In November, Silverthorne was gearing up for one of the town’s largest spending years. While its 2025 planned spending levels are still near record highs, the town will be spending millions less than anticipated due to decreases in one of its most significant funding streams.

Silverthorne finance director, Laura Kennedy, presented officials with a proposal to amend the 2025 budget to account for a now-projected 5% decrease in sales tax from 2024 levels.

At the crux of the change was an 8% decrease in January sales tax collections year over year, which amounts to roughly $106,000. When solidifying the 2025 budget in November, the town budgeted for a 3% increase in sales tax year over year, anticipating collecting $4.7 million in 2025 compared to 2024’s nearly $4.6 million in sales tax revenue. 

Officials gave primary approval to amend the budget to take into account the 5% decrease in sales tax at the March 26 meeting. The board is expected to vote and give final approval on April 9.

Kennedy said this will translate to a $793,883 reduction in expenditures planned to be taken from the town’s general fund, which is used largely for operations, and more than a $5 million reduction in expenditures for capital improvement projects.

Silverthorne became accustomed to a trend over the last decade where the town carried out what staff members described to be a “tremendous number of large projects accomplished in a short time” because of increasing sales and lodging tax revenues creating excesses funds in budgets in past years, a staff memo stated.

Staff members told officials that won’t continue in 2025.

They said the budget amendment will postpone some of the town’s planned 2025 projects and reduce the scope of others. According to town staff members this will postpone the design and engineering phase of the project to widen Stephen’s Way, significantly slow plans to build a new police facility and reduce the extent of sidewalk construction projects for the east side of Colorado Highway 9. 

“I think the department heads have done a great job, (yet) one of my concerns was that this hit affected every department … I’m hoping that we’re (being) extremely conservative, and we’re sitting here in January and we’re laughing that we didn’t need to do this,” council member Tim Applegate said.

A staff memo presented to officials at the meeting noted sales tax and lodging tax revenues were trending downward at the end of 2024. Kennedy explained that the town only recently received the data on sales tax collected in January from the state. She said she still considers the town to be in a strong financial standing. 

“As of Feb. 28, the town is only behind budget in total general fund revenues by $20,000, so the rest of the revenue streams are keeping up with where expectations are, overall. We’re doing fine, but we can’t ignore that our No. 1 revenue stream has flattened out,” she said. 

She said the town keeps a close eye on sales tax because it is indicative of the overall economy and visitation trends. She said a sales tax dip could be caused by uncertainty regarding the current economy and consumer confidence being down. 

Officials were keen to follow staff’s suggestion to investigate possible interim police facilities while the project to build a new one is stalled. 

Applegate suggested the $350,000 budgeted for conceptual design be used instead to transform the space local nonprofit Family and Intercultural Resource Center operates out of into a “stop-gap” police facility. Public works director Tom Daugherty said some of the money has already been spent, and it’s no longer a full $350,000. 

Town manager Ryan Hyland said staff members and the police chief can bring back more information on the feasibility of the suggestion at a later date.

Council member Erin Young reminded officials of the option to have a police presence closer to the core of Silverthorne in a location on Adams Avenue. Hyland said this could be possible if the town rented a space on that street.

Projects such as a new traffic signal at the intersection of Ruby Ranch Road and Colorado Highway 9 and the recreation center expansion project will be continued as planned, staff members said.