A sentence worth reviewing:
”
Gilroy received more than $1 billion in annual taxable retail
sales last year, more than some cities twice its size, Economic
Development Corporation President Vic Vanni said.
”
A sentence worth reviewing: “Gilroy received more than $1 billion in annual taxable retail sales last year, more than some cities twice its size, Economic Development Corporation President Vic Vanni said.”
Vanni reported that incredible statistic at the recent Economic Development Corporation annual review luncheon.
Sales tax is clearly Gilroy’s economic engine. The partnership forged between the Chamber, City Hall and the business community, which gave birth to the EDC, has paid off handsomely for Gilroy over a number of years. While other cities are contemplating layoffs, we have enjoyed growth and increased services.
But while we congratulate ourselves on staying ahead of the doom-and-gloom financial straits that have plagued many California cities, we should remind ourselves that a diversified portfolio is the best strategy for long-term success. Right now, sales tax is the backbone of city finances, making up nearly half of Gilroy’s general fund.
It’s not a good strategy to become dependent on a continuing massive retail build-up. And even in the light of our glowing success, City Administrator Jay Baksa is predicting annual deficits for the city budget not too far down the road.
What if a regional sales tax revenue measure – there is one currently in the pending in the state legislature – were to pass? That would knock our city squarely off the sales tax treadmill and lead to the substantial budget cuts that many other cities are experiencing right now.
So, while it’s appropriate to congratulate EDC Director Bill Lindsteadt, councilmembers and the city administration, it’s also important to remind all that diversity is the key.
The focus of the EDC should begin steadily shifting from the retail sector to the job sector. How many more retail centers can this city possibly support after all?
If the EDC and city can apply the same forethought and energy into marketing the area to attract light industry and, thus, well-paying jobs, then Gilroy can balance the scale and begin to improve other areas besides satellite shopping centers. Then we can begin to improve our core area, downtown and make other needed civic improvements.
