EXECUTIVE UPDATE / August 13, 2004

EDC continues to see strong prospect activity. Year to date, EDC has assisted eight companies that have announced plans to add 1,553 new jobs over the next five years. Positive economic news continues from past EDC clients as well, including Intel, which recently announced plans for several hundred new jobs and over $400 million in new investment. Defense employers continue to hire, providing additional economic stimulus. EDC announcements year to date have largely offset announced layoffs of 1,683, demonstrating the need to continue a sound economic development effort to replace jobs lost throughout the economic cycle. The EDC Marketing Team is working with a number of quality prospects which are likely to result in announcements by year end of additional jobs.
The recent “soft patch” in the economy will not last too long and is probably over, according to The Kiplinger Editors. Low net job creation in June and July on top of the recent disappointing GDP report had cast some doubt on the positive trend seen earlier in ‘04. However, auto and other retail sales are on the rise. Purchasing managers say that orders are up for both manufacturing and services. Home sales remain strong, and consumer confidence levels are at the highest point in two years. GDP increases are coming from productivity, not employment. Businesses are relying on longer workweeks and efficiency improvements.
The Colorado Water Conservation Board’s Statewide Water Supply Initiative study, which will be delivered in final form to the Colorado legislature in November, has released some early findings: demand for water is growing; smaller water providers and agriculture have limited resources to meet their future water needs. Water is no longer used just for municipal, agricultural, and industrial uses. Environmental requirements for healthy river ecosystems and the recreation industry in the mountain communities generate additional demand. Local projects are key to closing the supply/demand gap. Of the 630,000 acre-feet the state will need by 2030, projects that are either planned or underway by local providers will provide for approximately 90% of this demand.
The Colorado Springs School District 11 2004 Capital Plan calls for $128.8 million in new funding to address capital needs over the next five years. Funds would be used for Capital Renewal (upkeep of existing buildings), Capital Improvements (alterations and improvements to existing buildings), and Utilization (addressing capacity issues like new schools and additions). The District will seek voter approval in November 2004 for a bond to cover the plan; the average annual property tax increase in D-11 would be about $51. Facilities renewal needs for D-11 currently include $39 million in projects, including repairs to heating and ventilation, electrical systems, physical sites and playgrounds and roofs. For more information on the citizen-led task force recommendations, visit www.cssd11.k12.co.us.
The El Paso County Health Department has established the Public Health Protection Initiative (PHPI) in response to TABOR limitations on its funding. PHPI is a citizen effort to allow the Health Department to obtain alternative funding sources, and to spend the money to protect the health of the local population. TABOR revenue caps currently prevent external grant funding from helping to meet growing public health needs. Requirements to respond to public health threats such as bioterrorism, West Nile virus and SARS have put pressure on the Health Department’s budget. For more information, contact danmartindale@epchealth.org, www.elpasocountyhealth.org.
The Pikes Peak or Bust Rodeo, a Colorado Springs annual tradition, will be held at the Colorado Springs World Arena through August 15. For information and tickets go to www.worldarena.com.
Junior Achievement is seeking executives to provide economic education for young and upcoming business leaders. Since 1919, Junior Achievement has been teaching students about business and economics through a partnership with business and education. JA facilitates the partnership between business and schools. For more information, contact Emily Vollmer (719) 636-2474 ext. 23, evollmer@jasoco.org or go to southerncolorado.ja.org.
Colorado Springs’ free downtown shuttle is an efficient and fun way to get from one end of downtown to the other. For more information, go to www.downtowncs.com.