Sales tax takes first-quarter dip

By By Leada Gore, Hartselle Enquirer
Like the rest of the country, Hartselle is still digging out of the storm that’s been the recession of the past two years. And while the city has fared better than most, it is still dealing with the sluggish economy and a resulting downturn in revenues.
That’s the message Mayor Dwight Tankersley delivered last week as part of his State of the City address. Tankersley spoke to a full house at the Sparkman Civic Center. The Hartselle Area Chamber of Commerce sponsored the event.
Tankersley said a dip in sales tax revenues has caused the general fund balance to drop to a “still very healthy” $4.4 million, an amount more than 42 percent of this year’s budget of $10.35 million. Sales tax revenues were down 1 percent last year but that was 7.5 percent below what city officials budgeted.
This year has seen a greater dip. Tankersley said sales taxes for the first fourth months of this fiscal year are down 6.4 percent when compared to the same period last year. That’s concerning as 51 percent of the city’s revenue is generated by sales tax. Other sources are TVA payments at 9.2 percent, business license revenues at 7.2 percent, sanitation fees at 7.2 percent and property taxes at 5.6 percent.
Tankersley said this was accomplished without cutting any personnel. No cost -of-living increases were given but eligible employees did receive merit raises.
Other highlights of the State of the City address were:
The city charges $12.50 and includes recycling as well as weekly container pickup of yard debris.