Silverthorne’s building sector carries load from lost tax revenue at the Outlets
October 1, 2013
Last week town of Silverthorne officials learned 2013 sales tax revenues would exceed budgeted predictions.
According to the town's July sales tax report, total July revenues came in at $842,447, which is an 8 percent increase over July 2012. Year-to-date sales tax revenues also are up by about 8 percent, with the town collecting $4,899,906 through July.
Although total sales tax revenue is up this year, the report reveals a somewhat surprising statistic for the town's largest sales tax contributor. Sales tax revenue from the shops at the Outlets at Silverthorne, which typically account for about 30 percent of the town's total revenue, is down by almost 5 percent compared to this time last year.
"We haven't been able to pinpoint a specific cause for the drop in revenue," said Donna Braun, Silverthorne's finance director. "Sales at some stores are up and down at others. There's no real pattern to it."
Sales tax revenue at the Outlets declined by $15,484, or almost 5 percent, compared to July 2012. Year-to-date sales tax revenue also is down by about 5 percent, or $77,928.
The down numbers could be worrisome considering it does not yet take into account lost revenues from Jones New York and Totes Sunglass World, both of which closed their doors in August.
But Braun isn't worried, saying Totes didn't contribute a significant amount of revenue to the town's coffers in the first place. That would make Jones New York the only serious loss, but that was offset by the opening of the LOFT Outlet.
"The Jones New York closing was a corporate decision as they are phasing out their outlet stores," Braun said. "The Blue Village is pretty popular, so I don't expect it will remain vacant for long."
Despite the slight dip in revenue from the Outlets, Braun said Silverthorne is looking more flush than she would have anticipated because of increased sales tax revenue from the building sector.
Taxes generated from the sale of equipment, tools, landscaping and other building materials exceeded 2012 revenues by 116 percent, or $70,323. Year to date, revenues from building activity are up $325,966, or 92 percent.
"Those increases are indicative of the increased building activity in the area, which has brought in more revenues than we originally budgeted," Braun said. "We're estimating to be ahead (of budgeted estimates) by about 7 percent by year end."
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