Ketchum's fiscal 2008 local-option tax receipts brought in just over $2 million, a 2.5 percent decrease from the previous fiscal year and $173,111 less than anticipated.
According to figures provided by City Treasurer Sandra Cady, liquor receipts was the only category to see a year-over-year increase, jumping up 3 percent, or nearly $6,000, for a total of $202,306. Retail, room, condominium and building material receipts all declined, leading to an overall decrease of $51,841 from the previous year.
The recessing economy and corresponding slowdown in construction translated to a 9.6 percent decrease in building material receipts, down almost $45,000 from last year.
Retail receipts were nearly static, showing a decrease of only 0.24 percent, while room and condo receipts were down 2.8 and 7 percent respectively.
However, the year finished strong with a 7.9 percent increase in total receipts for August as compared with the same month one year earlier, when the Castle Rock Fire occurred. That was powered by a $14,384 increase in retail receipts, for a total of $144,481 in the final month of LOT receipts for the year.
Building material receipts were also up in August for only the third month all year, bringing in 7.4 percent more than in the same period last year.
The decrease in construction was a major factor in the implementation of a hiring and discretionary expenditure freeze for all municipal departments, which began in May. The spending cuts were put in place to help provide at least a $300,000 cushion in the city's general fund to avoid dipping into reserves.
For the entire year, retail receipts constituted 60 percent of the total LOT revenue, building material receipts 20 percent, liquor receipts 10 percent, room receipts 6 percent and condo receipts 4 percent.
The city imposes a 2 percent sales tax on lodging and liquor by the glass, and a 1 percent tax on items in the other categories. The money goes to the city's general fund, helping to pay for public transit, land acquisition and public services such as police, fire and ambulance.
The taxes are charged as part of a state-approved program to help small resort cities offset the public costs of hosting large numbers of visitors.
Ketchum LOT year-end comparison
Receipts Last year Current year
Retail: $1.22 million $1.217 million
Rooms: $118,699 $115,382
Condos: $94,660 $88,007
Liquor: $198,430 $202,306
Building material: $466,445 $421,605
Total: $2.097 million $2.045 million
