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City revenues still under forecasts
By Tom Munds
Tax revenue collection declined compared to what was collected for the same period last year, but the encouraging news is the decline was less than the decline in the previous month.
That was the crux of the report Englewood Finance Director Frank Gryglewicz presented at the June 15 city council study session.
He said the smaller decline in revenues may be an indicators that, like many economists forecast, the fourth quarter of this year or the first quarter of 2010 will see at least the start of economic recovery.
“Our year-to-date total revenue collections are almost $600,000 or 3.5 percent less that what was reported at this time last year,” he told the council. “The downward trend in sales tax collection continues. So far this year, the city has collected about $9.3 million, which is 8 percent or about $800,000 less than through the first five months of May last year.”
Englewood, like many cities, depend heavily on sales tax revenues to provide the money to provide services for its residents.
Gryglewicz said sales and use taxes make up almost 79 percent of all taxes the city collects and accounts for 57.7 percent of total revenues.
He said many factors have an impact on sales tax collections. For example, currently the somewhat uncertain economic climate means many people are reluctant to go shopping for anything but essential items.
However, the economy impacts businesses differently. Gryglewicz said his office looked at 61 sales-tax collection accounts and found the sales tax collections for 83 of the businesses were up while 23 of the businesses reported less sales tax collected.
Another area hit hard by the uncertain economic climate is the public improvement fund, the money city uses for public projects that include bridge maintenance and road repairs, including repaving projects.
The money for the fund comes from vehicle and building use taxes. Both categories are down this year. Gryglewicz said vehicle taxes are down about 26 percent as the city collected about $321,000 through May as compared to about $436,000 from January to May last year.
The fund also received money from the building use tax that is based on the number of building permit the city issues. Because many construction projects like the Kent Place luxury home development are on hold, the finance department prepared a conservative revenue forecast that, so far, is accurate.
That was the crux of the report Englewood Finance Director Frank Gryglewicz presented at the June 15 city council study session.
He said the smaller decline in revenues may be an indicators that, like many economists forecast, the fourth quarter of this year or the first quarter of 2010 will see at least the start of economic recovery.
“Our year-to-date total revenue collections are almost $600,000 or 3.5 percent less that what was reported at this time last year,” he told the council. “The downward trend in sales tax collection continues. So far this year, the city has collected about $9.3 million, which is 8 percent or about $800,000 less than through the first five months of May last year.”
Englewood, like many cities, depend heavily on sales tax revenues to provide the money to provide services for its residents.
Gryglewicz said sales and use taxes make up almost 79 percent of all taxes the city collects and accounts for 57.7 percent of total revenues.
He said many factors have an impact on sales tax collections. For example, currently the somewhat uncertain economic climate means many people are reluctant to go shopping for anything but essential items.
However, the economy impacts businesses differently. Gryglewicz said his office looked at 61 sales-tax collection accounts and found the sales tax collections for 83 of the businesses were up while 23 of the businesses reported less sales tax collected.
Another area hit hard by the uncertain economic climate is the public improvement fund, the money city uses for public projects that include bridge maintenance and road repairs, including repaving projects.
The money for the fund comes from vehicle and building use taxes. Both categories are down this year. Gryglewicz said vehicle taxes are down about 26 percent as the city collected about $321,000 through May as compared to about $436,000 from January to May last year.
The fund also received money from the building use tax that is based on the number of building permit the city issues. Because many construction projects like the Kent Place luxury home development are on hold, the finance department prepared a conservative revenue forecast that, so far, is accurate.
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