Sales Tax benefits

Several years ago, voters of Cloud County chose to impose a 1% sales tax county wide. The tax revenues were divided between the County and the several cities in Cloud County. The added sales tax has been a boon to all the agencies. I recall hearing Jamestown Mayor Judy Hill thank Concordia numerous times for the added sales tax revenue that it produces for Jamestown.

It is helping Concordia too! In reviewing Concordia’s Sales Tax collections since 1995, collections have risen from $794,400 to $1,423,300 in 2004. In 2004, the added 1% sales tax contributed $476,700 to the city’s revenue stream. The new revenue is equal to about 21 mills.

The City Commission gets credit for establishing a number of funds that benefit from the additional cash. An Equipment Replacement Fund was established that provides for the replacement of vehicles and heavy equipment. Each year, money is set aside for each vehicle to be used for future replacement. This is not exact science yet, but it is working. Many of the newer vehicles we have now are the result of putting money aside from the sales tax revenue.

The Commission also created a Capital Improvement Projects fund (CIP). This fund is one where funds are set aside to fund big projects too. Some examples are the mill/overlay on 11th street. It is 100% local funded. The mill/overlay on Broadway and mill/overlay on 6th Streets are KDOT projects and we have a share of the total project. Later this summer, the airport runway will be getting a new surface courtesy of a FAA grant where we pay 5% of the total cost. In each of these projects, the City had put cash aside to see they are done. By setting money aside, we are able to pay cash for the projects.

In FY 2006, the Commission is again planning to set aside from the General Fund $613,000 for projects. These projects include street construction, storm sewer construction, setting reserves for future “slurry seal” on streets, rebuilding a salt storage structure at the City yard, and several other projects.

The best part of this story is the sales tax is contributing to the ongoing improvement of our community. It is helping us be attractive to both business and customers. The July 2005 sales tax payment tells an incredible story about Concordia. The difference in July 2004 ($121,528.51) and July 2005 ($135065.53) payments shows $13,537 more revenue. It amounts to about $150,000 to $170,000 more business in Concordia in 2005. If annualized that is nearly $2,000,000 more sales than the year before. If we have nothing else to brag about (and we do), we can point to the new retail sales that is making our community a nice place to live.