To the editor:
Thanks to a mandatory reporting to the Public Utilities Commission, we now have the figures for the Cog Railway’s first year of operation after the three-year $100 million project to rebuild the tracks and replace and renovate equipment.
Revenues increased by about 54 percent from the last previously reported year, from $12.8 million to $19.749 million. In 2016, the last year reported before the renovation project (for an unknown reason 2017 is missing), tax charged to Cog customers resulted $492,000 in amusement tax paid to the city of Manitou Springs.
Last year, despite substantially higher revenues, the city received $508,000 in amusement tax after the city rebated some $355,000 to the Cog Railway, thanks to the 50-year agreement reached by a vote of five city councilors representing our fair village.
An additional $166,000 in use tax was rebated to the Cog Railway, resulting in more than $500,000, which the Cog had collected in taxes from their customers, being kicked back to the Cog.
The Cog reported net earnings of $4,668,431 for 2021. It appears that, despite diminished operations due to the pandemic and growing pains in its first year of operation, the Cog is financially healthy and well able to pay the city its fair share in taxes.
Indeed, the future looks great for the Cog.
It’s time for City Council to take a hard look at this 50-year agreement and rectify an unfair situation.
Steve Bremner