Glenwood budget in black despite sales tax revenue dip |

Glenwood budget in black despite sales tax revenue dip

GLENWOOD SPRINGS – Sales tax revenues in 2002 fell by 2.4 percent, or $261,000, compared to 2001, but city spending last year still left healthy balances in most accounts.

City finance manager Mike Harman provided the annual financial report to City Council Thursday. City manager Mike Copp presented the report to council.

Harman noted that the auditor’s analysis on city income and spending in 2002 should be ready for the July 17 City Council meeting.

Meanwhile, Harman’s report shows that even in a tight economy, Glenwood Springs improved its lot and still had $18 million in the bank at the close of the year.

The city’s total debt load at year end was $33.5 million.

Sales tax revenues for the year totaled $10.4 million, down 2.4 percent from the 2001 total of $10.7 million. Sales taxes account for 46 percent of general fund revenues, compared to 7 percent from property taxes.

General fund revenues totaled $10.2 million, while spending hit $12.2 million, drawing down the year-end fund balance to $2.9 million. Spending was divided between 40 percent spent for public safety (police and fire), 24 percent for general government, 17 percent for parks and recreation, 13 percent for public works and 6 percent for building and planning.

Added spending came in $1 million from the fire bond on a new fire station and equipment, $172,000 for furniture, fixtures and equipment at the Community Center, $325,000 on audio, video and computer equipment at the new City Hall, and $217,000 on street equipment.

In its first full year of operation, the Community Center brought in $590,000 in revenues and cost $1.4 million to operate, requiring a subsidy of $810,000.

Meanwhile, the city’s three utility enterprises – electric, landfill, and water and sewer – made bundles in 2002.

The electric fund grossed $8.2 million in 2002, up from $7.5 million in 2001, leading to $869,000 in net income. City officials also transferred $1.4 million from the electric department to fund the fiber optic Internet access project.

The landfill fund fell off in 2002, earning $924,000 in 2002 compared to $1.5 million in 2001, due to a $142,000 drop in revenues, a $76,000 increase in costs and a $380,000 transfer to the general fund.

The water and sewer fund collected $2.3 million in user and tap fees and ended the year with a $287,000 profit, growing the fund balance to $3.8 million.

The airport fund marked $3,200 in income and the cemetery fund made a $7,900 profit.

The conservation trust fund, which receives and distributes lottery funds, received $88,000 in 2002 and spent $522,000: $10,000 for the tennis bubble and $512,000 for the Sopris sports complex. This imbalance worked out because the fund started the year with a $164,000 carryover and gained $271,000 from the city’s capital projects fund. At year’s end, the fund had a balance of $637.

Glenwood Springs spent a total of $2.2 million on capital projects in 2002: $1.19 million on water system improvements, $724,000 on sewer line improvements, $222,000 in payments for 1992 water bonds, $235,000 for Special Work Activities Team projects, $17,000 for the golf course feasibility study, and $4,000 to move the Cardiff Schoolhouse.

The one trouble spot in the budget was the city’s self-insurance fund, which handles health insurance for city employees. Harman reported that the fund spent $177,000 over income, and went further in debt to $260,000.

“This fund showed hope of finally operating in the black early in the year, but by year end was in serious trouble,” Harman’s report stated. “Something needs to be done to correct this negative funds situation.”

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