Chief
04-30-2008, 07:10 PM
http://www.thenewstribune.com/news/local/story/348182.html
JASON HAGEY; jason.hagey@thenewstribune.com
Published: April 30th, 2008
The City of Tacoma might end up holding off on some capital projects because of a drop in real estate tax revenue, City Manager Eric Anderson said Tuesday, though he wasn’t prepared to make recommendations about specific projects.
Collections from the real estate excise tax dropped dramatically starting in October and officials believe they might collect only half of what was projected for this year, Finance Director Bob Biles told City Council members during a study session. The decline began last fall, going from $741,000 in September to $534,000 October, Biles said. The drop-off continued through the end of 2007 and into this year.
So far this year, taxes from real estate are down 56 percent, Biles said, and city officials now expect to collect just $5 million this year instead of $10 million.
Anderson said city officials are reviewing capital projects and might have to pull back in some cases.
“We’re probably not going to move forward with several items,” he said.
Some of the capital projects include street repair, Chinese Reconciliation Park construction and work on trails, bike paths, Cheney Stadium, the County-City Building and fire stations.
The city’s general fund budget – which funds city operations – appears to be faring better, and officials believe they will finish the year on budget. Tacoma is in better shape than Pierce County, which Anderson attributed in part to fiscal discipline by the City Council.
Anderson cautioned, however, that Tacoma might end up drafting a “hold-the-line” spending plan later this year as officials begin work on the next two-year budget, though he said much depends on what happens with the economy over the next few months.
A preliminary forecast of the city’s financial health “doesn’t paint a rosy picture” for the next budget, Anderson said.
“I’m concerned because of the volatility of the economy,” he said.
Employment projections appear fairly strong, officials said. Employment is projected to increase 1.5 percent in 2009, and personal income is forecast to increase 5.9 percent.
Retail sales are expected to rise 3.7 percent this year in Pierce County, but they’re forecast to fall 3.6 percent in Tacoma, according to the Puget Sound Economic Forecaster Annual Forecast.
The City Council is expected to begin discussing 2009-2010 budget priorities in June, and Anderson will submit a proposed budget to the council in October. The council will likely adopt a new two-year budget in December.
Jason Hagey: 253-597-8542
blogs.thenewstribune.com/politics
I'm not sure, but I certainly suspect that similar whisperings are going on in Downtown America's The 'Couv as well.
In some places around the country, localities are raising taxes to pay for the drop-offs in revenues that they are seeing; much of it due to very high foreclosures in certain market areas.
It could be worse...
8)
JASON HAGEY; jason.hagey@thenewstribune.com
Published: April 30th, 2008
The City of Tacoma might end up holding off on some capital projects because of a drop in real estate tax revenue, City Manager Eric Anderson said Tuesday, though he wasn’t prepared to make recommendations about specific projects.
Collections from the real estate excise tax dropped dramatically starting in October and officials believe they might collect only half of what was projected for this year, Finance Director Bob Biles told City Council members during a study session. The decline began last fall, going from $741,000 in September to $534,000 October, Biles said. The drop-off continued through the end of 2007 and into this year.
So far this year, taxes from real estate are down 56 percent, Biles said, and city officials now expect to collect just $5 million this year instead of $10 million.
Anderson said city officials are reviewing capital projects and might have to pull back in some cases.
“We’re probably not going to move forward with several items,” he said.
Some of the capital projects include street repair, Chinese Reconciliation Park construction and work on trails, bike paths, Cheney Stadium, the County-City Building and fire stations.
The city’s general fund budget – which funds city operations – appears to be faring better, and officials believe they will finish the year on budget. Tacoma is in better shape than Pierce County, which Anderson attributed in part to fiscal discipline by the City Council.
Anderson cautioned, however, that Tacoma might end up drafting a “hold-the-line” spending plan later this year as officials begin work on the next two-year budget, though he said much depends on what happens with the economy over the next few months.
A preliminary forecast of the city’s financial health “doesn’t paint a rosy picture” for the next budget, Anderson said.
“I’m concerned because of the volatility of the economy,” he said.
Employment projections appear fairly strong, officials said. Employment is projected to increase 1.5 percent in 2009, and personal income is forecast to increase 5.9 percent.
Retail sales are expected to rise 3.7 percent this year in Pierce County, but they’re forecast to fall 3.6 percent in Tacoma, according to the Puget Sound Economic Forecaster Annual Forecast.
The City Council is expected to begin discussing 2009-2010 budget priorities in June, and Anderson will submit a proposed budget to the council in October. The council will likely adopt a new two-year budget in December.
Jason Hagey: 253-597-8542
blogs.thenewstribune.com/politics
I'm not sure, but I certainly suspect that similar whisperings are going on in Downtown America's The 'Couv as well.
In some places around the country, localities are raising taxes to pay for the drop-offs in revenues that they are seeing; much of it due to very high foreclosures in certain market areas.
It could be worse...
8)