City sales tax collections rise again Year-to-year increase for the October reports

The City of Grand Junction continues to report upswings in sales and use tax collections even as it prepares to trim spending for a third consecutive year. For reports filed in October, representing consumer spending for the month of September, the city collected $4.17 million in sales and use taxes. That’s a 12.08 percent increase over the reports for October of 2009. It was the fourth consecutive monthly report which displayed a year-to-year increase over the same month last year.

However, the city is on track to collect less in 2010 than it did last year, when the city realized a big drop from the 2008 totals. The city collected $38.08 million in sales and use taxes for reports covering this year’s January-October period. That’s 5.06 percent less than during the first 10 months of 2009.

The city has trimmed money from its budgets the past two years, and plans an even leaner budget for 2011. This year’s city budget was originally $134 million, or $15 million lower than the adopted budget last year. Budget reductions will cause this year’s final tally to be less than $134 million.

The city this year instituted a three percent pay cut for employees in addition to staff reductions in calculating this year’s budget. It also suspended the street overlay program for many city streets. Should the economy remain sluggish compared to three years ago, Kadrich said people will begin to see a difference in the condition of local streets.