PROJ00251

• Contract/PO #: C153375
• Contractor Name: Canon City, City of
• Contract Type: Loan
• Water District: 12
• County: Fremont
• Bill Number: SB 81-439
• Loan Projects - Doc Type: Feasibility Study

1.-
"

I:.
I'
- ,

I
"

I
7'

I-
e,

1-

",

1-

~,

1

."

1-

,.

.'

.,

I-

. .

I

.'.

I

H

.

.,

1

.,

.

~

I'
I
t

Table 20 on the previous page presents data on wholesaling activity in Canon
City and Fremont County. Trends in wholesaling trade, which include estab-
lishments or business activities primarily engaged in selling goods or mer-
chandise to retailers, are an important reflection of the complexity of a
local economy and its growth. like retail trade, wholesaling is highly
responsive to consumer demands, and increased wholesale sales would tend to
indicate a growth in the overall consumption of goods and services. As can
be seen in Table 20, while the number of wholesaling establishments remained
constant in Canon City and Fremont County during the period 1963-1972, total
sales increased from about $4,223,000 to about $10,338,000 - an increase of
145 percent. Wholesaling increased in Canon City by about 148 percent during
'the same period. Even with an annual inflation rate of 5 percent applied over
the nine year period, the level of wholesale sales was still close to doubling.
According to the U.S. Bureau of the Census, the number of wholesaling estab-
lishments in the County increased from 17 in 1971 to 22 in 1974 (see Table
21 below), indicating additional growth in the regional economy. Given Canon
City's exis~ing economic structure and access to major transportation facilities
it is reasonable to assume that these additional wholesaling activities located
somewhere within the Canon City planning area.

TABLE 21
NUMBERS OF ESTABLISHMENTS
WHOLESALE TRADE IN FREMONT COUNTY

Sector

1971
17

1973
20

1974
22

Wholesale Trade

Source: U.S. Bureau of the Census, Colorado County Business
Patterns, 1973 and 1974.

Retail trade, defined as those businesses that sell goods or merchandise for
personal or household consumption, is a direct measure of the economic vitality
of a local economy. Increasing retail sales tend to be associated with in-
creasing levels of expendable income, which in turn are related to rising
personal incomes. In Table 22 on the following page retail activity for Canon
City and Fremont County has been summarized. During the period 1963-1972,
retail sales in Canon City increased from $14,041,000 to $27,912,000, an increase
of over 50 percent (which includes a 5 percent inflation adjustment factor).
Also the finures from this table show that Canon City was "capturing" between
70 and 75 percent of the retail sales in Fremont County. From the perspective
of the Canon City economy, the relatively high "capture" percentages are im-
portant because it means that money is circulating locally and not being
drained out of the community into other urban centers. As a result of its
ability to capture a major portion of regional retail sales, Canon City
benefits in at least two ways. First, higher retail sales produce higher
sales tax revenues which can be reinvested into the community in the form of
public facilities and improvements. The second benefit is largely a hidden
one and is the result of what is known in economics as the "multiplier effect."
The multiplier effect describes the impact of money spent in a particular
economy like Canon Ctiy as it circulates within the community. Very simply,
the multiplier effect means that a dollar spent in a local economy is generally
worth more than the original dollar expenditure because it circulates within the
community - from store owner to banker to other businesses.
65

,