Friday, November 13, 2009

Ketchum LOT falls short for 13th month

Last month’s receipts dropped 21 percent compared to October 2008

---

By TREVON MILLIARD
Express Staff Writer

Although the numbers fluctuated up and down, LOT revenues for the city of Ketchum were down every month of the 2008-09 fiscal year, compared to the previous year. Express graphic by Coly McCauley

For the 13th month in a row, Ketchum's collection on so-called "tourist" taxes fell short compared to the same month of the previous year.

The city's local option tax is collected from a 2 percent sales tax on lodging and by-the-glass liquor sales, and a 1 percent tax on retail sales and building materials to offset the impacts of visitors on city services and infrastructure.

Ketchum collected just over $128,000 in October, about $34,000 less than it did for October 2008, a decrease of 21 percent.

It's a negative trend that has become commonplace. During the 13-month losing streak, not one month has met or exceeded LOT revenue of the same month the previous year. Monthly decreases have ranged from 36 percent in April 2009 to 1 percent in October 2008, with the average being 23 percent.

October faired better than the average decrease by 2 percentage points. However, October sales dropped in each of the areas for which the tax is collected.

Building materials was the biggest loser at a 52 percent decrease in LOT, falling from about $35,800 in October 2008 to about $17,100 last month.

Next was short-term room rentals with a 19 percent decrease, or about $1,900. Condo receipts fell by 17 percent, about $800. Liquor receipts declined by 12 percent, or just under $1,900. Retail sales dropped by 11.5 percent, or about $11,100.

The city expects the decrease to continue.

Ketchum's budget for the fiscal year—Oct. 1, 2009 to Sept. 30, 2010—anticipates LOT receipts of about $1,779,000, which would be an improvement from 2008-09 when only $1,562,000 was taken in.

But that's not saying much.

Fiscal year 2008-09 was also a down year. It was the lowest of the past 10 years, collecting 23 percent less than 2007-08. Half of the past 10 years also collected fewer LOT dollars than the previous year, but drops were always in the 2 percent range. Nothing ever came close to negative 23 percent.

This fiscal year has gotten off to a rough start, with lower October results than even last year. But come the last day of this fiscal year on Sept. 30, 2010, the city expects the situation to have improved by a quarter of a million dollars compared to last year. Still, the projected $1,779,000 in LOT is $155,000 less than the 11-year average.

The Express tried to contact City Administrator Gary Marks, but city offices were closed on Wednesday, and he is scheduled to be out of the office until Nov. 16.

Trevon Milliard: tmilliard@mtexpress.com