Transit tax $2 million less than budgeted in 2008
Sales tax revenue that supports transit and road maintenance and building in the region came in at about $2 million less than budgeted in 2008.
The decline in revenues from a one-cent sales tax for the Pikes Peak Rural Transportation Authority (RTA) mirrors those experienced by Colorado Springs and El Paso County, as a crippled economy dampened spending in the region.
RTA's December revenue from a one-cent sales tax approved by voters in 2004 was $6.2 million, $545,000 below what had been budgeted. It was the fifth straight month of lower-than-expected tax revenues.
December's 9.14 percent decline in revenue was a little less grim than declines in October and November, reflecting Christmas sales in the region. Sales tax revenue for the RTA dropped 12.1 percent in October and 15.5 percent in November.
Overall, the tax in 2008 raised $67.8 million, about $1.7 million less than the $69.5 million budgeted.
In addition, the decline in the stock and bond markets meant the RTA earned $583,000 less in interest than expected, or about $1.4 million.
The RTA had built up $4.9 million in reserves in previous years, however, so there were no delays in member governments' projects, said Lisa Amend, spokeswoman for the Pikes Peak Area Council of Governments, which administers the RTA.
"From an overall picture in ‘08, the RTA is financially sound," she said.
She said it was too early to say what sales tax revenue will be in 2009. But she said the RTA budget for the year allows member governments to spend a portion of the non-TABOR reserves for transit and maintenance projects. Those reserves, she said, cannot be spent on capital projects. TABOR, or the Taxpayer's Bill of Rights, is a constitutional amendment that limits government revenue and spending.
She said the RTA board will look at revenues, expenditures and the reserve funds in a midyear budgeting process and make adjustments if necessary.
Colorado Springs, El Paso County, Manitou Springs and Green Mountain Falls share the proceeds from the RTA tax.
Fifty-five percent of the money is used to fund a voter-approved list of capital projects, such as the Austin Bluffs Parkway and Union Boulevard interchange in the city, improvements to Academy Boulevard near Fort Carson in the county and streetscape improvements to Manitou Avenue in Manitou Springs.
Thirty-five percent of the tax proceeds are for street maintenance such as road paving and pothole repairs.
The last 10 percent is dedicated to the city's bus system, Mountain Metropolitan Transit, to provide transit in the region, including the popular commuter bus service FREX.
The full tax will be in place until 2014, when the capital improvement portion ends. The tax then drops to .45 percent to fund street maintenance and transit.
