Fiscal Year 2019 Budget

134

Budget Impact: The imposition of the 1% Local Option Sales Tax has allowed the city, school and fair undertake many improvements that have benefitted the community. Since it's inception, through June 30, 2017, the sales tax has generated $28,921,187 for these entities. The city has allocated the 50% capital projects receipts towards the departmental capital reserve funds. These funds have been used to make improvements to the parks, purchase equipment for the police, fire, street, cemetery and park departments as well as improvements to the city's use of technology. Through this direct allocation process, the ability to create and fund a viable 5-year capital improvement plan has been possible. Previously to this direct allocation, departments would compete for their projects at the expense of another department. The direct allocation method has allowed each department to plan projects based on a stable stream of revenue. The city utilizes the 15% community and economic development allocation to fund many local non-profit agencies as well as funding economic development projects. Without this important stream of revenue, the city would have two choices, either not fund these projects or agencies, or utilize tax revenues to do the same, thus increasing the tax levy upon the community.

Future Concerns:

The general state of retail is changing as the rise of online shopping is being felt by everyone. From small local business not being able to compete with the ease of the internet to the inability of those purchase to be taxed, the local community loses. The city has seen its sales tax revenues remain stable over the past few years, with little to no growth in tax receipts. The city continues to monitor tax receipts to determine if changes are needed in funding levels or the distribution to the various agencies and department that depend on this source of revenue.

Sales Tax Receipts by Fiscal Year

- 500,000.00 1,000,000.00 1,500,000.00 2,000,000.00 2,500,000.00