Glenwood Springs sales tax drops in October
Glenwood Springs, CO Colorado
GLENWOOD SPRINGS, Colorado ” City sales tax revenue in October was 1.07 percent below the same month last year.
The figure released Dec. 8 continues the trend of sales tax revenues slowing down since May this year compared to last year.
The total year to date through October was still up half of a percent over the same period last year. Sales tax revenues each month this year are greater than the same monthly totals in 2006.
City officials approved an $82 million 2009 budget with general fund revenues based on projections of a 2 percent increase in sales tax revenue in 2009. No spending was cut in the budget, but many spending items have been essentially frozen at existing levels. City officials have said they’ll carefully monitor the economy and make adjustments if needed.
Sales tax revenue is the largest source of city revenue, representing almost half the revenues of the city’s general fund.
The 2009 budget generally calls for drawing down reserves in cash balances over cutting expenditures. There’s likely enough to carry the city through years of economic downturn, and the city plans to reduce spending if the downturn lasts longer or gets worse than the budget can handle, city officials say.
The city recently approved a $125,000 subsidy to the bus tax fund from the street tax fund to avoid charging a fare or reducing Ride Glenwood bus service. The City Council is expected to discuss potential raises requested for city employees at its next meeting.
Contact Pete Fowler: 384-9121