City sales tax receipts down slightly
McCOOK, Neb. -- City sales tax receipts declined slightly during the 2014-15 fiscal year, negating some of the increases from prior year and accounting for approximately $10,000 less in revenue.
The City of McCook collected $1,743,935 from the one-percent local-option sales tax and another $871,967 from the half-percent local-option sales tax during the fiscal year ending in September of 2015, according to city reports.
The one-percent sales tax receipts were down by $7,148 for the year, following an increase of more than $10,000 the year prior. The half-percent sales tax were similarly down by $3,574 following an increase of more than $5,000.
The decrease in sales tax revenue was far less than city leaders anticipated, however, sales tax revenue came in more than $225,900 ahead of budget for the fiscal year.
Voters renewed the local-option sales tax for another 15 years in May of 2015, in addition to approving new language which gave the city more spending flexibility. The new language removed specifications previously placed on the type of debt the city can buy down, adding "other debt" to the mix, among other changes.
The one percent sales tax receipts were previously described as being split evenly between property tax relief and infrastructure improvements, while the additional 1/2 percent sales tax receipts were said to be split evenly between LB840 economic development funds and infrastructure improvements.
The new language doesn't provide allocations and states the sales tax funds will be used to maintain the city's reduced request for property tax; for capital equipment; to improve, repair or replace city's infrastructure, including but not limited to water quality improvements, city streets, parks and other public facilities; to repay or redeem water, sewer and other city debt; and, so long as Ballot Question No. 2 is approved by the voters, to fund the continuation of the McCook Economic Development Program.
Ballot question No. 2 was declined in 2015 and city leaders have indicated they intend a second effort this May.