August shows decline of 3 percent, but year to date up overall
While August sales tax receipts showed a decline of about three percent over the same period last year, year to date sales tax revenue is up about four percent, CFO/City Clerk Jason Muninger said recently.
“We started the year out well, though recent collections were down close to three percent over the prior year,” Muninger said. “Year to date, though, our sales tax receipts are up about $538,000, or about four percent, over where we were this time last year.”
Muninger said while no one can say for sure what caused the uptick in revenue over the projected totals, he speculated it could be related to $600 stipends provided by the federal government for the recently unemployed, stimulus funds provided to citizens via the CARES Act or simply a tendency for residents to shop more locally due to the pandemic.
“There’s really no way to know,” he said.
Muninger said he is hopeful the decline in revenues in the most recent report isn’t a trend. However, event if it is, the City is in good shape to weather a downturn — thanks to decisions made by past and current City councils to bolster the Reserve Fund to prepare for emergencies.
“Because of the diligence of the current and recent City councils, we have planned very conservatively and are well-versed to weather the storm. I believe we could weather a one- to two-year downturn fairly easily,” Muninger said.