City's sales tax figures reason for "cautious optimism"

scottw@standard-democrat.com

SIKESTON -- The city's revenue from sales tax is up but will need to remain that way for the rest of the fiscal year for the city to see real growth.

"Yes, sales taxes are up about 10 percent from the prior year," City Clerk Carroll Couch said. "That's welcome news but we are cautiously optimistic."

On one hand, the city did have a great start, receiving more sales tax revenue in July than any other year's July in the last decade: $324,736 on a 1 cent sales tax, up from $274,327 received in July 2013.

But because the city begins its fiscal year in July, revenues from the holiday retail boom come at the halfway point, not the end, of the city's budget year.

From January to May, sales tax revenue tends to decrease, based on prior year history, Couch said. "So what seems to be 10 percent more now may be 5 percent by the time this fiscal year is over with," he said.

When it comes to sales tax received by the city, both month compared to month and year compared to year, "I've seen it go up and down," Couch said.

Couch noted as an example that from Fiscal Year 2008 to FY-2011, the city alternated between sales tax receipts being up and down to end that period about even.

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