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City predicts sales tax revenue will be up

Sales tax revenue for the City of Pine Bluff is forecast to be above the figures that city officials projected for the year.

 

During a meeting of the City Council’s Ways and Means Committee Wednesday, Finance Director Steve Miller said revenues collected from the city’s sales tax, county sales tax and the 2011 five-eighths cent sales tax are projected to be 1.9 percent above the amount he expected.

 

After the city and county sales taxes generated $13 million in 2016, collections slipped to $12.8 million in 2017. Miller said that trend continued through the first part of this year but picked up significantly in mid-year. He attributed the increase to insurance claims for vehicles and homes as a result of the hail storm.

 

Specifically, the city sales tax had generated $3.5 million through June 30, or just over $18,000 above what had been collected for the same period in 2017. That tax was projected to generate just over $7 million this year.

 

The county sales tax has collected just over $3 million through June 30, almost $80,000 more than for the same period last year. That tax is projected to generate just over $6 million.

 

The 2011 five-eighths cent sales tax has produced nearly $2.2 million so far this year, which is almost $18,000 above the amount collected last year at this time. That tax was projected to generate close to $4.4 million this year.

 

Looking at other revenue sources, franchise fees from Entergy, which were budgeted at $1.7 million, are projected to fall short of that figure by $10,000 by year’s end while franchise fees from Centerpoint Energy are projected to be $100,000 ahead of the $425,000 projection. The franchise fees for Liberty Utilities and telephone service, which generates around $600,000 between them, are projected to be close to their budgeted levels while cable television fees are projected to fall short of projections.