Timnath plans conservative budget, looks for growth

By Dan MacArthur
Fossil Creek Current

Timnath is taking a conservative approach in its budget for next year even as development is expected to begin breaking out, bringing with it a dramatic increase in revenues.

Following a public hearing, the town board on Dec. 7 is expected to adopt the 2006 budget. It predicts revenues next year of $812,465, up more than 51 percent from this year's budget. Expenditures are estimated at $449,683, down 34.7 percent from this year. The $362,782 difference between revenues and expenditures would be applied toward building a fund balance totaling $800,563 by the end of next year.

The town's expected growth in income is directly related to the looming outbreak of building activity.

"I expect we'll see some building permits before the end of the year," said acting town administrator Becky Davidson. She said it appears construction work could start soon at the 26-lot Farview Village subdivision, with the 515-lot Harmony development "not far behind."

Still, the town is not counting its subdivisions before they hatch. Although a consultant predicted as many as 109 homes would be under construction next year, the town is basing its budget on the belief that only 52 building permits will be issued.

Those permits are estimated to generate $597,375 in use-tax revenues. Of that amount, $209,000 would be retained in the general fund, which reflects the annual cost of operating the town. Those use-tax revenues represent the second largest source of general fund income behind the $320,000 in expected annexation fees.

Another $209,000 in use-tax revenues would be allocated to the capital improvement fund, resulting in a balance of $269,000 by year's end--a 5,280 percent increase over the $5,000 budgeted this year. Some $179,000 would go to the contingency fund, resulting in a $191,592 balance, or a more than 430 percent increase. Revenues to a separate impact fee fund to pay for police and public improvements would more than double to $334,246.

Percentage increases appear grossly exaggerated because they are based on such modest beginning balances. But they still demonstrate the town's determination to stash away cash to cover its almost $8 million portion of the estimated $77 million in capital improvement needs. The remaining nearly $38 million could come from developers and some $31 million from the town's urban renewal authority, providing it survives a continuing legal challenge by Larimer County.

"We definitely know where the priorities are," said Davidson.

The first is building structures to intercept overflow from Boxelder Creek and redirect it into the Poudre River at a cost of as much as $8 million. She said design work on that project will begin in 2006.

Davidson said the town elected not to participate in an ongoing effort by Larimer County, Fort Collins, Wellington, the state of Colorado and a group of private property owners to develop a regional fix for Boxelder Creek flooding. "My direction from the board has been to proceed with a solution that works for Timnath," she said. "We have a shorter timeframe than others."

Design work also will begin next year on the $6.9 million County Road 5 parkway carrying through-traffic around the downtown.

Rounding out the top five priorities is installation of sewers in the old town at an estimated cost of $4.5 million, replacing the Harmony Road bridge over the Poudre River at cost of more than $4.6 million and widening Harmony Road at total cost of nearly $7.5 million.