When measuring the economic health of any city, several factors are considered — including housing, unemployment, tax revenue.
So what shape is the city of Columbus in? New housing is virtually non-existent and the city’s unemployment rate of 9 percent is second highest among the state’s 15 largest cities.
While those two factors are not easily dismissed, and their impact should not be minimized, there is also cause for optimism when that third component is considered.
For all that ails the city, the robust growth in sales tax collections are cause for optimism.
The city’s sales-tax revenue reached an important milestone when sales-tax revenue returned to the city in April was announced earlier this week. While Starkville boasted an increase in sales-tax revenue over the same period of 15 percent ($596,750), the numbers in Columbus are even more dramatic.
Sales-tax revenues are reported on a thee-month cycle. The state collects sales tax from cities one month, calculates the portion to be returned to the city the next and releases that money to the cities the following month.
The amount of money returned to Columbus announced this week reflects collections from February. Those numbers showed that, for the second time in the city’s history, total sales tax returns exceeded the $1 million mark — $1,156,888. That’s a whopping 48.5 percent increase from the amount of sales-tax money returned to the city in April 2015.
That’s a $378,000 jump. But the good news doesn’t end there. Were this simply a one-month spike in revenue, it might be explained away as a quirk.
The numbers we are seeing are no anomaly. Sales-tax revenues have grown steadily for almost two years now. Since July 1, the city has seen $7,598,838 in sales-tax revenue, a robust 12.8 percent increase from the $6,734,897 in previous fiscal year.
The numbers suggest that while the city may struggle in many areas, there is a real sense of optimism in the retail business.
New businesses continue to hope. Four new hotels have opened in the past two-plus years with another on the way. The Highway 45 corridor, in particular, is buzzing with activity.
That’s good new for retailers, obviously, but the impact of the thriving retail industry is good for all citizens.
It means more money for the city, which if managed wisely will result in more and better services for residents.
Yes, Columbus still has its share of challenges. But the health of our city’s economy, as measured by sales-tax revenue, is a legitimate source of encouragement.
The Dispatch Editorial Board is made up of publisher Peter Imes, columnist Slim Smith, managing editor Zack Plair and senior newsroom staff.
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