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COLORADO SPRINGS, COLO. -- November sales tax revenue numbers brought more bad news to Colorado Springs city officials.

As of now, the city had budgeted about $238 million for 2009.

That budget represents a previous cut of more than $23 million.

Then, end-of-the-year sales tax revenue fell an average of 13 percent below what the city expected to get.

Now the council will have to decide where to cut $14 million to $17 million more.

MOre than 50 percent of Colorado Springs' general fund budget is based on anticipated sales and use tax revenue.

"And with that sales and use tax relient on the economy, and the downturn in the local economy, that's had a big influence for the city," said Chief Financial Officer Terri Velasquez.

The influence calculates out to at least a $10 million shortfall, and the city has to make up for it in 2009.

An additional $4-to-$6 million shortfall is the result of other factors.

"We had anticipated a shortfall of about six million in tax revenue for 2008. However those were exceeded in the October sales tax revenue, in the November sales tax revenue, and we anticipate in December," said Velasquez.

As an immediate solution the city will draw about $3 million to $4 million from its savings account or "funds balance," but that money will have to be restored by the end of 2009.

"We would hope if troops return to Fort Carson, or if there is a federal stimulus package, those types of items might improve the local economy and return sales tax back to the city," said Velasquez.

The city manager has asked city staff to submit areas for possible cuts.

Penny Culbreth-Graft is preparing a plan of action she will present to the city council on January 26.

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