Steamboat Springs sales tax collections are up, again

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— For the sixth consecutive month, Steamboat Springs sales tax collections increased from the same month in 2010, according to a preliminary report from the city.

Steamboat sales tax revenues increased 2 percent in October from the same month last year. The city collected $986,992, up from $967,676 in October 2010.

Deputy City Manager Deb Hinsvark, who also serves as the city’s finance director, said because October occurs during mud season, the revenue increase from October 2010 is minimal. But she added that the city was pleased with the continuing positive trend.

October’s sales tax revenues bring year-to-date collections to $13,924,253, up from $13,395,410 at the same point in 2010. That amounts to a 3.95 percent increase.

The city budgeted a 10 percent decline in sales tax revenues this year from 2010. Steamboat has used some of the additional revenue from collections to pay for supplemental budget requests to address unforeseen expenditures related to last year’s snowfall and subsequent high runoff. The city also used the funding for maintenance to city facilities and supported other requests, such as funding for the Bike Town USA initiative.

The city has budgeted sales tax revenues to remain flat for the rest of the year. Steamboat budgeted a 5 percent decline in 2012 from 2011 collections.

The city separates sales tax collections by category (miscellaneous retail, lodging and amenities, sporting goods, utilities, restaurants and liquor stores) and location (downtown, base area, U.S. Highway 40 corridor, regional and west Steamboat).

There were modest increases in all categories except lodging and amenities and restaurants, and in all areas except town and the base area.

The increase in sales tax collections in October was the seventh time this year collections exceeded those from the same month in 2010.

Preliminary October 2011 sales tax revenue

To reach Jack Weinstein, call 970-871-4203 or email jweinstein@SteamboatToday.com

Comments

BeCoolHoneyBunny 2 years, 9 months ago

The city's budget estimates for this year are 14% off of what it actually collected. The 2012 budget will be 5% less than the 2011 budget, which means it will be 19% less than 2011 actuals. If trends continue, (sales tax collections remains flat) that will result in almost a 20% budget surplus for 2012. And I thought the weather man was the only person who could be so wrong so much of the time and still keep a job.

At what point does City Council decide to stop cutting? At what point does city staff salaries become unfrozen and also return to 40 hours? How long will the excuse of a bad economy continue to shortchange the citizens of Steamboat?

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ybul 2 years, 9 months ago

Maybe the city is being prudent and building up reserves to be spent on capital expenditures (like sewers, roads, etc.). The citizens of Steamboat are not being shortchanged, the manager seems to be operating as if not all money collected needed to be spent (given PERA is way underfunded contributions might need to be increased for all the city workers - one recent paper wrote on how those pensions are what brought down the Roman Empire.)

There are some towns that the residents actually receive a tax rebate because the city does not spend every dime that comes in. There are others where the town put up a wind turbine and was able to lower sales tax rates.

I think that given Italy just was charged 7+% to refinance its debt that being fiscally conservative is the right course of action, especially given that winter sales tax receipts are predicated on snow and while we have some, we need more, though I appreciate the warmer weather as it makes working outside more pleasant.

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BeCoolHoneyBunny 2 years, 9 months ago

the city's "prudence" is on the backs of city employees.

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ybul 2 years, 9 months ago

Yep and PERA is on all residents/property owners in the city/state. They are not very prudent with 60% of investments in equities.

Italy is now paying double their previous interest rate and if they default on their debt then the risk of the greater depression is rather large.

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BeCoolHoneyBunny 2 years, 9 months ago

To my knowledge, city of steamboat employees are not part of PERA. But yes, PERA is the burden of all state taxpayers.

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