Retailers depart Lake Stevens, but officials say sales tax losses are covered
Published 10:41 pm Monday, June 8, 2009
LAKE STEVENS — The city’s budget should be able to weather the loss of sales tax revenue after two large retail stores closed and another prepares to leave Frontier Village, officials said.
Joe’s Sporting Goods and Craft Star shut down, and Bridges Pets said it will move to Snohomish on Monday. The city’s sales tax receipts for the year, however, are higher than expected, mostly zeroing out the loss, city officials said.
“There may be a slight dip, but it’s essentially a wash,” City Councilman Mark Somers said. “We feel good, we’re certainly all aware and concerned about where things could go.”
Sales tax revenue from the three stores together brought the city an average of $13,600 per month from July through April, city administrator Jan Berg said. The last receipts from the stores will be recorded next month, and the collective loss from the stores from August through December is expected to be about $68,000.
The city budgeted to receive $1.875 million in sales tax revenue this year. It’s now projected to receive $1.874 million, Berg said.
The city is running about 3 percent higher in its tax receipts than through April of last year, she said — $647,000 compared with $636,000 last year.
“We’re going to keep monitoring it monthly,” Berg said. “Right now we’re OK.”
Work is under way to build a new Walgreen’s store and a shopping center, Vernon Village, west of Highway 9 and north of Highway 204, officials said.
The city’s total budget for the year is $6.79 million, with the rest of the revenue coming from property taxes and building permit fees. The city so far is on pace for its budgeted property tax receipts for the year, Berg said.
Lake Stevens is putting a large annexation before voters in the fall. The area south of Frontier Village and between the lake and Highway 204 and extending south of 20th Street SE has 10,061 people, 9 square miles and little retail space.
Losing the three stores won’t affect the city’s ability to serve the area, Berg said.
Bill Sheets: 425-339-3439; sheets@heraldnet.com.
