Dillon projects multi‑hundred‑thousand dollar shortfall as lodging and marina revenues fall

Carrie McDonald presented the general fund picture: although total revenues are projected up slightly from 2026, several key revenue streams are declining sharply.

"Excise taxes, which is our lodging tax are probably our hardest hit," McDonald said while reviewing assumptions. She and Scott O’Brien noted nicotine tax receipts are down roughly 25% and that marina receipts for 2026 fell below estimates. The finance presentation showed Dillon would be short approximately $732,000 in 2026 and $532,000 in 2027 after staff proposed moving $500,000 from capital into the general fund in both years.

To mitigate the structural gap, staff and council discussed a suite of options: pursue new revenue mechanisms that could be placed before voters (use tax or public safety tax in future elections), increase user fees where legally permitted, pursue grants to reduce operating pressure, and sharpen efforts to attract and support local businesses that generate sales and lodging tax. Staff also highlighted that certain state changes reduced a small but cumulative revenue stream: the town will lose roughly $18,000 annually tied to retail marijuana sales revenue that the state had remitted previously.

Carrie recommended the council adopt conservative assumptions now and direct staff to assemble high‑priority revenue and savings options for follow‑up workshops before the December adoption deadline.