Sales tax revenue in Grand Junction sank about 22 percent in the first collection period of the year, as consumers remained cautious about spending money amid economic uncertainty.

The city collected $3.96 million in sales tax receipts in January, down from $5.1 million in January 2009. Data reflects sales tax revenue generated in December and collected through January.

The Grand Junction Financial Operations Division provided the data.

Given the sales tax revenue was generated in a usually busy December holiday shopping period, the results were somewhat disappointing.

“We were hoping it would be a little bit stronger,” said Jodi Romero, financial operations manager for the city of Grand Junction, on Tuesday.

The sharp drop in sales tax revenue, coupled with a steep decline in use tax, is prompting city officials to re-address the 2010 budget. Use tax, which is essentially a complement to sales tax, tumbled to $168,424 from $246,513 in the same period.

Deputy City Manager Rich Englehart said Tuesday a meeting is set Feb. 15 with the City Council in order to discuss the impact falling revenue is having on the 2010 budget. The 2010 budget year started Jan. 1.

He said the city is exploring all options as it looks to amend the 2010 budget, which sits at about $134 million. That figure is down from an amended 2009 budget of about $139 million and $157 million in 2008.

“I think (City Manager) Laurie (Kadrich) has done a good job of keeping ahead of everything,” he said.

Englehart and Romero pointed to several things the city did last year as it grappled with declining revenues, including the implementation of a 3 percent pay cut and a reduction in employee counts.

The city also implemented a hiring freeze last year, as signs emerged early on that sales tax revenue was lagging behind the previous 12-month period.

Year-end financial data showed the city collected $39.39 million in sales tax revenue, or about 17 percent less than the $47.28 million collected in 2008.

Use tax dropped to $1.78 million in 2009 from $4.12 million in 2008.

Nevertheless, Romero expressed optimism about the Grand Junction retail sector this year. She pointed toward the addition of Cabela's to Mesa Mall, and the possibility of City Market putting up a store in the west end of the city.

Cabela's, a retailer of camping, fishing, hunting and related outdoor merchandise, plans to open in summer. The retailer is taking the space that formerly belonged to Mervyns, which vacated the location in the first quarter of 2008.

“We are certainly seeing some positive things in the form of new retail,” Romero said.

Reach Wyatt Haupt Jr. at whaupt@gjfreepress.com.