Times are tough when the city sets a record for sales tax revenues and just breaks even.
Columbus Chief Financial Officer Mike Bernsen is checking city records to see if the $185,000 received from the state this month is an all-time high for October.
“It”s the largest October since 1990. And I have an idea it”s the largest on record,” said Bernsen.
The city receives a check from Jackson each month for 18.5 percent of the sales tax collected from all businesses within city limits. The process takes two months to complete, so October”s windfall is actually the result of August”s sales. But for the sake of simplicity, the city counts the money as October”s figures.
Without seeing the state report that accompanies the checks, which Bernsen expects to receive within the week, it”s unclear why the city had such a good month. But Bernsen says sales tax revenues were up for seven of 12 months in Fiscal Year 2010.
“What caused it? I”m not sure. As soon as I get the industry report I can tell if it”s due to sales tax, retail, construction, etc.,” said Bernsen.
The record-setting month is a good thing, but it doesn”t mean Columbus suddenly has surplus funds.
“Don”t read anything into it,” warns Bernsen. “We projected an increase in sales tax with the Fiscal 2011 budget. So we”re going to be closer to staying on budget. We don”t have extra cash. It”s exactly what we planned to have.”
By comparison, this October”s sales tax revenues are $75,000 higher than October 2009.
Jason Browne was previously a reporter for The Dispatch.
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