Colorado Local Government Actually Saves Money, Not Affected By Shutdown

One Colorado government body is going to be ok with loss of tax revenue from the voluntary shutdown orders. Eagle, Colorado will lose a little money but not much because of their saving program.

Eagle has the kinds of problems most towns want in the COVID-19 era.

Like all governments, Eagle’s tax revenue is taking a beating — forecast to drop 21% this year. Unlike many governments, Eagle’s actual budget cuts will be relatively thin, the town council learned in a budget work session.

A combination of conservative budgeting and an upswing in tax revenue late last year will make cuts less draconian.

“The town of Eagle has been investing in its future for the last decade,” Eagle Town Councilmember Matt Solomon said.

Because of conservative budgeting and those unanticipated tax revenues in 2019, and because officials were already preparing for an economic slowdown, the town has “a very healthy general fund balance,” Town Manager Brandy Reitter said.

In other words, officials have some extra money in the bank.

Eagle’s policy is to keep 25% of its annual operating expenses on hand. Because the town did not spend some of the money it had planned to, and because it saw some tax revenue it had not planned on, the general fund balance is 37%.

Source: Vail Daily

 

Published by Hoosier Econ

Located out of Central Indiana. Blogger of economics, politics and societal trends.

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