Sales tax revenues continue downward trend

Sales tax revenues were down about 8 percent during the second quarter of 2019, according to a financial report Aug. 19 at the Unified Government Economic Development and Finance Committee meeting.

According to Debbie Jonscher, UG deputy chief financial officer, revenues were down six-tenths of a percent than the previous quarter primarily because of the sales tax coming in 8 percent below the target.

She said the UG now has adjusted the sales tax revenue target down in the amended budget.

According to information from the report, city general fund revenues for the second quarter were slightly above the level for the same period last year because increases for the franchise taxes helped offset the lower sales tax revenues.

The UG originally budgeted $47,956,000 for sales tax revenues in the city general fund in 2019, but actual collections in the second quarter were $20,139,000, about 42 percent of what was budgeted, according to the report.

Property tax revenues slightly exceeded the goal for the second quarter in the city general fund, according to the report.

On the expenditures side, Reginald Lindsey, budget director, reported that city expenditures were below what was originally anticipated for the second quarter, with 45.6 percent of the estimate spent.

On the county side, general fund revenues were up 28 percent over budgeted amounts. Property tax revenues and motor vehicle revenues were up for the quarter.

The expenditures for county services were 10 percent over the target, with inmate housing and medical costs rising.

Overall, the UG was spending less during the second quarter than it took in. The consolidated general fund showed revenues of $134,804,000 and expenditures of $103,462,000 in the second quarter.

For more information on the second quarter budget report, the UG Committee meeting is on YouTube at https://www.youtube.com/watch?v=C7YXzm2XpJI.