Year-to-date the City has received $1,132,445 in general sales tax receipts compared to $1,179,726 year-to-date during the previous year. The year-to-date sales tax trend is about 4% below the previous year-to-date receipts. The month-to-month trend is also down about 3% compared to August’s receipts.
Approximately 48% of the City’s general sales tax is generated from a portion of Dickinson County’s 1.0% sales tax. Through September, the City has received $544,855 from its portion of the county sales tax. Last year at this same time, the City had received $597,823 from the 1.0% county sales tax.
The decreased sales tax has primarily been the result of construction on Interstate 70, and specifically the closure of the eastbound ramps at Exit 275. The City estimates that lost gross revenue for Abilene businesses during September equaled about $773,400.
The City had originally estimated between $9 and $12 million in lost revenues for Abilene businesses during the Interstate 70 construction project. Following receipt of actual sales tax receipts from the Kansas Department of Revenue, the City has revised its estimated loss of gross revenue to approximately $2.3 million.
The original estimate was based on information provided to the City by affected businesses that suggested sales were down 30% to 50%. Staff based its estimation on this field intelligence to calculate the reduction in gross receipts for business in Abilene during the construction. In addition, one Abilene business reported a significant increase in gross receipts during the month of September, which minimized the loss of sales tax to the City from the affected hospitality and transient service businesses during the reporting period. The City had no way of anticipating this increased business for its projections.
Year-to-date, the 0.35% Library/Pool sales tax has collected $411,375 compared to $407,392 during the same period in 2012. The City uses proceeds from the 0.35% sales tax to pay debt service on its G.O. Bonds, Series 2008 issued to finance library/pool improvements. The annual debt service for the bonds is $393,515.
The City has collected $162,308 from its 0.25% dedicated sales tax to fund a Local Street Improvement Program. The sales tax was approved by a majority of voters in November 2012 and will sunset in 2023. The City will commence street improvements for the Local Street Improvement Program in 2014 after sufficient funds have been received for a project.
Questions may be directed to either Finance Director Eddie Balluch or City Manager David Dillner at (785) 263-2550.