City sales tax receipts topped $1 million during September, a first for the city that prompted a brief round of celebration among local government officials Friday morning.
“Most excellent news … this really shows how the developments of the past 15 years have created the regional economic center that was intended,” remarked city commissioner Jim Sherow in reaction to the announcement by Bernie Hayen, the city’s finance director. Mayor Loren Pepperd also lauded the news.
Hayen said collections totaled $1,035,258 for the month of September. That included retail sales tax within the downtown redevelopment district, a portion of which are set aside to repay the debt on bonds used to construct that development.
Still, Hayen said, even with those sales taxes adjusted out, the city would still net $937,000 in receipts, a single-month record.
Hayen said that even though “nearly every retail sector was up, the ‘biggest’ driver” in the record revenues was the sales taxes collected by Kansas State University intercollegiate athletics. He said those revenues contributed $133,000 for the month of September. Due to the time lag involved in collection and redistribution, the city does not receive September receipts until late November or early December.
The city projected September sales tax revenues to be about $845,000, and budgeted $840,000 for general use, gaining the city an additional $133,349 for the general budget.
Compared to 2011, the sales tax revenues are up by 7.3 percent or $98,352. November 2011 sales tax revenues totaled $936,906. The city has now received $9.742 million overall in 2012, only about $200,000 short of its record total for an entire year, the $9.976 million it took in during 2011.
Even adjusted for the redevelopment deductions, it has taken in more than $9 million.
Hayen predicts with these record-breaking revenues, the city will break the $10 million mark once the December payment is received.