Craig Daily Press

Craig — Although city and county officials said the local economy continues to look good, recently collected sales tax revenue shows the first signs of a cooling period.

Sales tax revenue accounts for a majority of the city’s operating budget and also shows consumer spending patterns.

Revenue figures are available only through April, officials said, because of a two-month lag between when goods are bought and when local governments receive tax dollars from the state.

Concerning the city’s 2.25 percent sales tax, revenue growth was uncommonly high, Craig Finance Director Bruce Nelson said.

Craig’s sales tax revenue in February of this year grew about 23 percent more than revenues collected in February 2007.

“Those numbers were so high; that’s not common,” Nelson said.

However, April’s numbers showed a decrease in month-to-month growth. March’s revenues were 13.6 percent higher this year than they were in March 2007, but April’s revenues were only 2.8 percent higher this year compared to April 2007.

Actual revenue from March to April this year dropped about $2,500.

The city’s sales tax revenues year-to-date still is $68,239 — or 6.9 percent — more than budgeted, but that’s down from the picture presented last month, when the city was about $88,000 — or 8 percent — ahead of budget.

Nelson said he would guess the main reason sales taxes are slowing down is because there are fewer people and fewer big construction projects in the city now than at the same time last year.

“We had all the motels full, we had a lot of projects going on around here and the county,” Nelson said. “That’s kind of gone for now, plus the economy is probably a little factor in (people not spending). With the fears of the nationwide economy, some people might have held off.”

Nelson added that he thinks the economy overall — and although it’s not as rosy as a month ago — still is strong.

“I think it’s still good,” he said. “We’re still up to the level we had then (in 2007). There’s still some construction around town. It sounds like they may be gearing up for another pipeline. We’re still going.”

At the county, sales tax has declined further, although the county depends far more on property tax revenue than sales taxes for its operating budget.

April sales taxes for the county were $14,654 less than budgeted, county Budget Analyst Tinneal Gerber said.

April 2008 numbers also were $4,133 less than revenue collected in April 2007.

However, Gerber added, the county is about $12,160 ahead of budget year-to-date.

She said the county will monitor the numbers as 2009 budget planning approaches.

“It’s something we are going to watch very closely,” Gerber said, “and take into account these next couple months when we start preparing for 2009.”

Collin Smith can be reached at 875-1794 or cesmith@craigdailypress.com