When the Columbus City Council approved its budget last year, it included a $300,000 shortfall based on planned expenses and projected sales tax revenues of $8.5 million, prompting more than one council member to wonder just how long it would be before the city was forced to cut services or raise taxes.
But so far this year, those fears have been mitigated, thanks largely to better than expected sale tax revenue.
This week, the city released its most recent sales tax revenues figures based on sales tax collections from December.
Those numbers show revenue of almost $30,000 compared to December 2013. Six months through the fiscal year, the numbers are even more encouraging. Revenue is $176,921 higher than budgeted. If that trend continues, the city will not face a shortfall by the end of the fiscal year, as councilmembers initially feared.
“The numbers are great, but I still think need to be cautious,” Ward 6 councilman Bill Gavin said. “There can always be a downturn, but there’s no question that things are looking good. I think the new hotels have made a real difference. People who stay at the hotels spend money eat at restaurants. They shop at our stores. They buy gas. I think that’s made a big impact and you’re seeing that in the sale tax numbers.”
Columbus motel tax revenue for December was $14,832, up roughly $7,500 over December 2013 while restaurant tax revenue showed an increase of $2,262 , The revenue for December was $16,369.
In Starkville, meanwhile, the sales tax revenue was basically flat compared to the same month a year ago. On the bright side, Starkville restaurant revenue continued to show growth. December restaurant tax revenue was $139,377 compared to $119,804 in December 2013.
West Point saw a $15,000-plus increase on sales tax revenue in December compared to a year ago. The city’s sale tax revenue for December was $225,241.
Slim Smith is a columnist and feature writer for The Dispatch. His email address is [email protected].
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