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Archive for Tuesday, January 19, 1993

CITY SALES TAX RECEIPTS, EXPENDITURES RISE

January 19, 1993

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Lawrence sales tax receipts climbed slightly in 1992 but not as fast as expenditures, city finance director Ed Mullins said today.

The city's 1-cent sales tax reaped $6,200,480 in receipts last year, 1.4 percent more than in 1991.

The city's 1992 general fund expenditures have not been tallied completely but appear to be about 5 percent to 6 percent higher than in 1991, Mullins said.

"With the (1992) sales tax revenues, we were able to add personnel and offset property taxes," he said. "But that does mean some pressure in some future years" if sales tax revenues do not keep pace with expenditures.

The city also collected $60,000 in user tax receipts, Mullins said.

The city had estimated collections of $5,755,000 in sales and user taxes for 1992, he said.

The 1993 municipal budget estimates $6 million in sales tax revenues and $50,000 for the user tax, Mullins said.

"Hopefully, we'll match this year at least," he said.

Sales tax revenues during the first five months of last year were about 13 percent higher than during the first five months of 1991, but subsequent revenues dropped.

"We did a bit better early in the year, but we were lucky to match 1991," Mullins said. "The last couple of months were better than expected."

The city's largest sales tax revenue month was December, with $604,854 deposited in the city's treasury. July was the smallest, with $461,896.

Mullins said there was about a two-month delay between the collection of local and state sales taxes by merchants, who turn the money over to the state, and the deposit of local tax revenues in the city coffers.

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