By Rosemary
Sales tax revenue falls shortWhat $1.2 million left over from fiscal 2007? Why isn't that money (if it exists) being used to upgrade police, fire, and water departments?
Ogden, other Top of Utah cities seek ways to offset impact
By SCOTT SCHWEBKE
Standard-Examiner staff sschwebke@standard.net
OGDEN — The effects of a slumping national economy may result in an $800,000 shortfall in local sales tax revenue this year for Ogden.
Based on early economic indicators, Ogden expected to receive about $15.5 million in sales tax revenue in fiscal-year 2008, which ends June 30, but is now projecting it will get only $14.7 million, said John Arrington, city finance manager.
The city received about $14.5 million in sales tax in fiscal 2007.
Arrington blames the projected shortfall on the sagging national economy, which is affecting consumer purchasing. “People are spending less on retail sales,” he said. Arrington has recommended the city council use a portion of $1.2 million in carryover funds from the municipality’s fiscal 2007 budget to offset the projected revenue shortfall. He favors that strategy over budget cuts in various city departments because it won’t affect operations. The council will have to decide before the start of fiscal 2009 how to address the shortfall, Arrington said. Councilman Jesse Garcia favors waiting until final figures are in before deciding. “You can’t address a projection.”
Why do we have an expected deficit when we now have the ever-booming Junction? Guess no one comes to it because they are waiting for the ice tower to be built!
