WM tax revenues down, still above budget

WM tax revenues down, still above budget

‘ Still ahead and still improving,’ says treasurer

news@theeveningtimes.com

At the mid-point of the year, West Memphis sales tax numbers are down from last year but running ahead of the city budget. City Treasurer Frank Martin brought the year to date budget, general sales tax numbers and gaming tax results to city council and reported all the results at the half-way point of the year.

“We are still above budget,” said Martin.

“Even though we are down from the sales tax we collected last year. That’s because I always plan a real conservative budget.”

Mixed monthly results marked the year. Three months showed sales tax revenue increase and three months were down. Three out of the last four months showed a downturn. Councilman Taz Tyrone asked about the big hit in May revenue which was off $78,790 compared to the same month last year.

“Is this there a reason May and June were down compared to last year What are the signals?,” asked Councilman Taz Tyrone.

“We were down 10 percent in May,” noted Mayor Bill Johnson. “By all reports everybody elsewhere seems to be struggling with sales tax.”

Martin pointed out the city was stepping out on new ground. City payroll went to every two weeks this year instead of twice a month. July is the first three paycheck month for city workers. The city treasurer put July into a cash-flow capsule.

“The annual budget is the same,” said Martin. “We budgeted for a 12-month payroll, but when you look at it in a time capsule, we have three payrolls in July and December which is different than we had before.

This month will give us a good opportunity to see the effect.”

“In July and December our tax flow will be hit a little harder because of the payroll.” said Budget Chairman Tracy Catt.

Martin also produced the gaming tax revenue numbers for City Council.

Unlike the sales tax, the gaming tax has run consistently

above last years take

for the city. Year to date taxes flowing from Southland Gaming and Racing were up 13.81. But Martin noted the June numbers on the report.

“If you look at the gaming tax collections it was an increase, but it was the lowest increase we ever had,” said Martin. “We are still ahead and still improving but we are used to having big numbers.”

By John Rech