Town of Telluride Tax Revenues Coming in Strong

From the Telluride Daily Planet, March 8, 2012:
by Katie Klingsporn, Editor

The Town of Telluride’s 2011 sales tax collections were the highest in years — an indication that the recalibrated economy continues its measured resurgence from the recession.

The town’s sales and use tax revenues, a major funding source that comes mostly from retail outlets in town, totaled $4.36 million in 2011 — the highest in at least five years and a 3.5 percent improvement over 2010, according to town numbers.

Sales tax revenues were up during nine out of 12 months of the year, with a notable upward swing during the last four months.

December revenues of $536,987 were the highest for that month in four years, and were 9.4 percent above the same month in 2010. November revenues were up 3.5 percent, October’s increased 13.9 percent and September’s rose 16.8 percent. August saw a decline, but it came a year after the Phish concerts boosted that month’s activity significantly.

“We ended up with a fairly positive tax revenue picture,” said Town Manager Greg Clifton. “We had a very strong fall shoulder season and a strong December. That really was the end to a year that has been consistently in the positive.”

It marks the second year of steady tax revenue collection since the recession hit, which caused Telluride’s revenues to plummet in 2008 and 2009 and forced the town to axe its budget, freeze spending and lay off employees.

“We had back to back years [2010 and 2011] of decent revenues that surpassed budget estimates,” Clifton said. “That’s good news. It means we’re rolling right along. I think it’s a good indicator of how our local economy is doing.”

Real estate transfer tax revenues, which provide another major revenue stream for the town, came in slightly less in 2011 than 2010. The year total was $2.8 million, down from $3.1 million in 2010.

Again, December numbers showed a year-over increase — coming in at $192,871, a 21 percent increase over the same month in 2010. Other notable months for RETT collections were June, with $322,650 and February, with $429,110. But showings weren’t as strong as sales tax, and several months saw RETT numbers falling from the year before.

Clifton said that while RETT revenues didn’t meet the town’s projections, they were close.

“We felt good about where we ended up,” Clifton said.

Clifton attributed the strong year-end sales tax revenues to a regional effort to extend Telluride’s fall shoulder season. That led into a strong holiday season, he said.

Wendy Basham and Todd Tice, co-owners of Telluride Trappings & Toggery, said their numbers have held up this season compared to last year.

“We haven’t seen a huge increase, but last year was a really good year for us,” Basham said. “There’s definitely been an uptick over the last two years. Things have just slowly gotten a lot better.”

Tice, too, said their numbers are solid. Recent snowfall has helped with the momentum of the season, he said.

Town Council Member Chris Myers said Telluride’s recent effort to extend the gondola season should help the fall off-season grown economically.

“We need to make sure we’re having sound policies that support a healthy business environment and healthy real estate economy as well,” Myers said.