Sales tax report: Conservative budgeting holds year steady
Thanks to months of a tightened belt — a 12.5 percent reduction to its projected budget — the Shawnee city sales tax collection report for October appears to be holding steady after a brief shutdown caused by the COVID-19 pandemic in the Spring.
Direct effects of the coronavirus shutdown caused a temporary lull, but recent sales tax collections in Shawnee continue to be positive.
Ashley Neel, finance director and city treasurer, reports the October sales tax deposit was $1,862,576.99, including interest of $1,402.52, to be allocated as follows:
• General Fund — $1,064,329.73
• 2018 Capital Improvements Fund — $266,082.43
• Capital Improvements Fund — $206,213.89
• Street Improvements Fund — $232,822.11
• Economic Development Fund — $26,608.25
• Police Sales Tax Fund — $33,260.29
• Fire Sales Tax Fund — $33,260.29
Sales and use tax collections totaled $2,077,385.23 for October 2020.
According to Neel's report, October 2019 sales tax receipts came in at $1,965,935 — $103,358 more than this year's collections for the month.
“It should be noted the sales tax estimate for FY 20-21 was based on a 12.5 percent reduction compared to the prior year budget,” Neel said.
Though receipts dipped below last year's numbers, the city's conservative measures and an increase in Use Tax collections have steadied year-to-date totals.
For the year, sales tax collections are up $1,414,296, or 21.62 percent over the projected budget year-to-date, she said.
“Use tax collections are up approximately $38,616, or 4.93 percent, over the projected budget year-to-date,” she said.
Revenue during COVID months
Pottawatomie County received its first positive case of COVID-19 the last week of March, which spurred the start of added restrictions ordered by Gov. Kevin Stitt.
Area residents spent significant time avoiding public spaces as a direct result of a shelter-at-home directive from leaders starting mid-March, during April and into May.
As a result, revenue was down for a period while all non-essential businesses were closed until mid-May.