WM tax revenues off to sluggish start

WM tax revenues off to sluggish start

Sales tax collections down in January; A& P figures remain solid

news@theeveningtimes.com

Tax revenue for the City of West Memphis ended on a downer last year and didn’t fair any better in January.

City Treasurer Frank Martin delivered the report during the February budget committee meeting at city hall. Both the sales tax and the Advertising and Promotions taxes fell off in December.

The A& P finished 2016 $80,000 over 2015 results, up 5.7 percent. But the December hamburger and hospitality tax fell off 9.6 percent, down $11,093 compared to the same month a year earlier.

The tourism and hospitality sector did turn a strong overall annual performance according Councilwoman Ramona Taylor’s report to the full city council.

“The 2016 A& P collections were $1,488,000, reflecting a 5.7 percent increase over the prior year,” said Taylor.

Despite conventional wisdom that city sales tax and A& P collection rates normally run hand-in-hand, the city sales tax revenue tailed off.

The city/county combined sales tax total finished 2016 down $27,029 behind 2015, or minus 3.47 percent. The city tax flow limped behind with a negative 4.45 percent.

Retail sales in the city did no better in January. The first month of the year was off 9 percent compared to last year. While eleven months remain for a bounce back the $68,367 monthly dollar shortage to start the year was double the whole 2016 downfall.

The treasurer also plans a conservative budget. Even at that the short fall amounted to $53,030 against the January plan.

City Treasurer Frank Martin shrugged as he delivered

the news to the City

Budget Committee.

“It’s hard. When you start off like this, it’s just hard to get your mind wrapped around it,” said Martin. “I don’t know what happened.”

“Some of this you just have to look at it on a quarterly

basis,” said Chairman

Catt.

The pill was especially hard to swallow given January is also the month when a huge payment is due each year. The city forked over a big workers compensation premium.

“It’s due in January and I paid it,” said Martin. “It is $450,000.”

“It doesn’t wipe out our cash flow,” said Catt. “It’s a dent. You hate to see early numbers come in low.”

“That was a huge 10 percent for one month,” said Martin.

City councilors were on hand from each ward except Ward 2. Melanie Hutchinson was absent for the noon meeting. Chairman Tracy Catt and councilors Marco McClendon, Helen Harris and Wayne Croom represented the other precincts.

By John Rech