Sales tax receipts soften in July, August |

Sales tax receipts soften in July, August

Pete FowlerGlenwood Springs, CO Colorado

Glenwood Springs sales tax receipts in July and August haven’t increased as much as they did earlier in the year.Although proceeds by month are up from 2006 figures, the increases have slowed closer to budget estimates rather than being well above budget estimates, as they were in the first six months of the year.”The sales tax proceeds in July and August were not increasing at the same rate,” city manager Jeff Hecksel said. “The good news is we’re still slightly above what we anticipated we would receive. The bad news is that difference is declining.”Nothing has been pinpointed as a cause, but there was some thought that in part it could be retail developing in nearby areas, or part of a national decline in economic activity. Hecksel wonders if people who have been affected by mortgage resets on adjustable rate mortgages aren’t spending as much money because their housing payments are larger.If the trend of softening sales tax receipts continues, the city could have less extra cash in 2008 leading to less flexibility and fewer options, Hecksel said.However, he said there’s no cause for doom and gloom.”We have the ability to end the year strong,” he said. “Barring any unforeseen event, the city will probably be in good shape.”Sales tax revenue was at the heart of a recent debate on a proposed Glenwood Meadows shopping center development. City Council on Thursday denied an application for a large retail development on undeveloped land at Meadows.Some said the application didn’t fit the zoning and vision of balance and variety that Meadows plans originally called for. Others said that more retail would give the city more money to do what it wants and secure Glenwood Springs as the premier retail hub in the region.Contact Pete Fowler: 945-8515, ext. 16611 pfowler@postindependent.comPost Independent, Glenwood Springs Colorado CO

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