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Robert Frank, City Editor
frank@heraldnet.com
 
Published: Sunday, November 8, 2009

Cities across south Snohomish County see tax revenues slump

LYNNWOOD — Shopping local has a bigger impact than simply supporting local business. Sales tax dollars land in city coffers and pay for services people rely on daily, namely public safety and parks.

During this recession, retail sales have slipped, putting south Snohomish County cities on edge.

“We have no crystal ball to tell us when we will be back to where things were,” said David Kleitsch, Lynnwood's economic development director.

Statewide, taxable retail sales declined 14 percent to $25 billion during the second quarter of 2009 compared with the same period in 2008, the largest second-quarter drop on record, according to the Washington State Department of Revenue.

Locally, the picture is a seesaw.

The city of Lynnwood — home to Alderwood mall — saw retail trade sales drop $59 million, or 17.2 percent. Edmonds' slipped 10.7 percent, nearly $7 million. Mill Creek saw a relatively modest 4 percent decline, a drop of $1.1 million. Meanwhile, on the other end of the spectrum, Mountlake Terrace posted a 13.5 percent gain of more than $1.3 million in taxable retail trade.

For Mountlake Terrace, it means that despite the current economic volatility, the city has been able to maintain services. No cuts are planned to public safety, parks and public works, city manager John Caulfield said.

“The city continues to hold its own financially,” Caulfield said.

But the picture isn't all rosy.

“While revenues are up from 2008, they are still quite a bit lower than the forecast and budget,” said Sonja Springer, financial director for Mountlake Terrace. “We are seeing an estimated $260,000 decrease for 2010 from our budget.”

The bigger hit comes from the city's portion of gambling tax, slipping due to a decrease in business and the shuttering of the Silver Dollar Casino. “Our 2010 budget was estimated at $1.5 million. That has been amended to $1.2 million,” Springer said.

Enterprise editor Katie Murdoch contributed to this article.

READER COMMENTS
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Thievery
It isn't much, but I no longer shop anywhere in the city of Lynnwood. As long as the police there can write tickets that they know are bogus, and their municipal court system will uphold them, then I won't shop or eat within the city of Lynnwood. It's been my personal boycott for two years now, and I see no sign of that changing.
R N | Nov 8, 2009 7:44 am | 2 replies | View all | Post reply | Request removal

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