Friday, November 25, 2005

What constitutes an 'emergency?'

City worried about LOT revenues


By REBECCA MEANY
Express Staff Writer

Desperate times call for emergency measures, and the city of Ketchum has sounded the siren.

City Council members on Oct. 11 approved a 182-day emergency moratorium, stating the public's health, safety and welfare is in "imminent peril" due to loss of tax revenue from a fading business scene.

A review of local option tax figures over the past five years, however, shows both small dips and notable gains.

Year-end LOT totals for fiscal year 2000-2001 were $1,967,948. The next year's figure came in at $1,912,945, followed in subsequent years by $1,857,893, $1,991,708, and $2,074,965.

LOT figures in the last fiscal year came in over-budget every month except one: April's take was $66 less than anticipated.

So what's the worry?

City officials say that one strong segment, the construction industry, doesn't mean other categories are doing well.

"If you look at the LOT taxes, I think you'll see building materials revenues make up a lot," said Mayor Ed Simon. "Hotel revenues are down. There's concern about condo (receipts). Retail sales have fluctuated. Individual segments in the last fiscal year, particularly rentals and motels, those show some concern."

The closing of Williams Market, which collected LOT taxes on non-food items, and of the Bald Mountain Lodge will have an impact, Simon said.

The mayor also noted that the moratorium is limited in scope, affecting only two kinds of residential development in the commercial core.

"It still allows for growth," he said.

The city's Comprehensive Plan calls for the Community Core zoning district to be the center of commerce, entertainment and retail activities, and establishes the support of local businesses as a goal, the moratorium ordinance states.

In the past five years, 75 percent of the applications for building permits in the CC district were for residential projects.

With the loss of retail space comes the subsequent loss of local option taxes that help pay for essential city services such as fire, police and emergency medical personnel.




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