City budget rides CP's roller coaster

Friday, 04 August 2006

Lower-than-expected attendance hurts tax collection; but hopes pinned on July improvement and August expectations.

By BRANDI BARHITE
brandibarhite@sanduskyregister.com

SANDUSKY - City coffers are feeling the pain from lower-than-expected attendance at Cedar Point.

Admission and bed taxes are down 8.5 percent and 3.4 percent, according to preliminary figures from the city's July financial report.

The city has brought in $690,021 so far this year compared to $773,000 last year. Bed taxes yielded $286,116 compared to $355,000.

Finance Director Ed Widman and Commissioner Craig Stahl said it's risky to jump to conclusions because Cedar Point has only turned in its taxes through June, per filing deadline.

"We will get through this year, but the cause for alarm should be that our total budget amount for our estate tax is way above budget and you can't count on that," Stahl said Thursday.

The city has received $539,000 in estate taxes through July and expects to end up with $825,000, which is good, but masks the dips in admission, bed and income taxes, Stahl said. The city had expected only $250,000 in estate taxes for the whole year.

Stahl said he was reassured when parent company Cedar Fair stated Tuesday during its Web cast that attendance at Cedar Point improved in July.

Also, the month of August and the park's fall promotions bring in a lot of money, he said.

A concern for the city is income tax, which is also down for the general fund. Through July, the city collected $3.39 million compared to $3.53 million. The city's target was $3.57 million.

Stahl said the changing local economy from manufacturing to service and tourism reflects the numbers.

"The staff does a great job of researching all of this and they will come up with a great plan of action," he said.

Widman said the city received about $150,000 less than it expected from the state, which collects income tax on public utilities.

The city will make it through this year, though, because there has been growth in estate tax, he said.

"Clearly, we will have to review a lot of our budgets for next year," Stahl said.

FunCoast.com is your online guide to summer fun for Cedar Point, the LakeErie Islands and Sandusky area. Our site offers up-to-date information on area attractions, restaurants, hotels, gasoline prices, ferry schedules, swimming, birding and fishing, along with a complete listing of events happening in the Sandusky/Cedar Point area. To use our Webcam and zoom in on Cedar Point's rollercoasters, go to http://funcam.funcoast.com

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