In the city’s string of tepid monthly tax reports, initial revenue figures for Steamboat Springs in July show modest gains compared to last year.

Total tax revenue collected in July rose 3.47% compared to July 2023, an increase of $113,689, according to the city’s latest preliminary tax report, with year-to-date tax collections showing a 2.18% increase compared to 2023.

Over the past five years, the city’s tax collections in July represented roughly 9.2% of all annual collections, making the month’s 2024 gains more important for what city staff have said will be a challenging budget year.

Between 2016 and 2019, city saw annual tax revenues increase by an average of 6% year-over-year. During the pandemic, the annual gain dropped to just 2% in 2020 before recording 21% and 15% gains the following two years.

Steamboat Springs Finance Director Kim Weber told City Council in July she believed “things are cooling off” and that she expects the 2024 revenue increase to be closer to 2% by the end of the year.

“It’s probably going to be a tight budget year,” said City Manager Gary Suiter, pointing to the finance director’s forecast.

Steamboat’s sales tax revenues represent about 67% of the city’s general fund each year, according to Weber. Data on the city’s website shows the municipal budget operating at a deficit of roughly $3.8 million through the first half of the year, including a $5.7 million monthly deficit posted in July.

“You probably will be seeing some proposed reductions in service as part of the budget process,” Suiter added. “This is paying the price for being so dependent upon a single source of revenue. It’s the same message for the whole time I have been here.”

By category, the city saw a notable gain in July in its building use tax collections, bringing in just over $1.8 million for a 137.57% increase compared to July 2023. The building tax revenue comes from permit fees and use tax reconciliations. It also fluctuates based on the size and number of developments in the city. The money is used to fund Steamboat’s capital budget.

Other comparative increases in July saw construction fees jump 17.58%, and sales taxes collected at grocery stores went up 7.5% compared to July 2023.

The city’s accommodation tax revenue in July increased 4.23% compared to July 2023 and short-term tax revenue gained 4% on last years monthly revenue.

On the negative side, a 13% drop in July sporting goods sales headlined the month’s losses compared to July 2023 tax figures.