Sales tax revenues are declining. Why?

Consumers have less money for shopping than they did just one year ago. Nationwide, people are feeling the squeeze, and consumer confidence is down. This affects purchasing behaviors, and consumers cut back on making large taxable purchases like a new car, wide screen TVs, or large kitchen appliances. Also, wages are not keeping up with living expenses. Gas and utility prices continue to surge higher and take a bigger bite out of our disposable income.

The general fund has been under attack by state government, as they attempt to pull more money from cities. Some cities are saying yes to increasing the amount of their local sales tax, to add more money to their general fund.

Due to a flat economy and low consumer confidence, there's not a city in California that is not struggling with decreasing revenue and increasing costs.

The City of Escondido is sometimes mandated to provide specific services to the community without the benefit of funding to go with them.

What services will suffer from less sales tax revenue?

Who decides where sales tax revenue is allocated?

I have a business in Escondido, but we do not generate sales tax. How can I contribute?

Why don't we just add more businesses in Escondido?

The City is transitioning from large declining retail (like K-Mart and Montgomery Wards) to new viable retail and entertainment (such as Lowe's and the Regal 16-plex); however, these projects are very expensive and often require the City's assistance.

What's on the horizon for new sales tax revenue in Escondido?

• Lowe's Home Improvement
• Stone Brewing World Bistro & Gardens
• Hotels – Downtown Escondido Marriott and Spring Hill Suites (La Terraza)
• Grocery – Valley Mex, Tesco's Fresh & Easy Grocery store
• Downtown Living – Within the next 18 months could add more than 1,500 new residents
• Westfield North County – A large expansion is in the planning stages that could add more than 440,000 sq. ft. of new and renovated stores, and a hotel.