Sales tax revenue jumps

Christina M. Currie

Sales tax took a 12 percent jump in May, which created a $25,156.05 boon for city coffers.

Sales tax accounts for 52 percent of the city’s revenues.

“It’s nice to see our sales tax take a jump, but I have no idea why,” City Finance Director Bruce Nelson said.

He’s reviewed sales tax collections for individual businesses and can’t pinpoint a place where numbers increased significantly.

“Nothing really pops, but I think overall sales are up,” he said.

He said large retailers as well as hotels are charting higher sales tax collections.

The city’s share of the county’s sales tax increased 13.1 percent over last May, a $9,138.45 increase. That puts the city $26,612.48 in the black.

The city’s 2 percent sales tax increased 12.54 percent, a jump of $23,305.79, which puts the city 3.53 percent ahead of its budgeted sales tax revenue.

“We are definitely gaining,” Nelson said. “It’d be nice if it stayed that way.”

The city has collected $1,641,194 in sales tax this year. It has spent 50 percent of what’s budgeted and has collected 42 percent of the revenues budgeted for.

The news isn’t so positive for the water fund, which is nearly $40,000 behind its budgeted revenues. They were 16.39 percent below last May’s revenue.

“The weather has a big impact on that fund,” Nelson said.

Nelson said the rains in May and June have contributed to lower-than-average sales. He expects a hot and dry July to be good for the water fund.

Revenues from trash collection are up 13.03 percent in June compared with June 2004, a $7,169.53 increase. It brings the fund’s collections to $458,427. Nelson attributes the increase to the number of construction projects and Dumpsters that are being picked up because of those projects.

The solid waste department continues to collect more in landfill fees than it’s paying. That fund is $42,258.90 ahead.

Christina M. Currie can be reached at 824-7031 or at

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