Finance director outlines conservative budget plan as Keystone adjusts to new sales-tax distribution

The finance director briefed council on the town's upcoming budget cycle, describing the session as informational and noting the budget will be shaped over the next five months. She said the town receives approximately $7.3 million annually in adjusted revenues and that sales tax remains the dominant revenue source: "You'll see that 73 percent is from sales tax," she said. She explained the town also collects lodging tax, licenses and permits, intergovernmental revenue, and investment income, and that the recently approved 2% lodging tax moves some previously county-directed lodging revenue to the town.

Council members questioned forecasting methods and the timing of supplemental budgets; staff said supplemental budgets are available if expenditures exceed appropriations and that quarterly reports and RFP outcomes will inform any amendments. The finance director reiterated a conservative approach: preserve reserves, prioritize essential services, and invest strategically only when financially prudent. Council agreed the staff should return refined budget drafts and supporting analyses for future work sessions and the required public hearing ahead of the December adoption deadline.