Carefree Truth
Issue #511, September 9, 2016
At Call to the Public, Jim Van Allen stated that the sales tax revenue collected in July was the "absolute lowest" in the past 13 years. He said no HURF funds were included. He had told Lt. Baranyos that only $6,109 in fines was collected from the Court for that month. Total revenue was down 10.4%, $200,000. The net total was $250,000. The reserves took a hit of a quarter of a million dollars. This is "not a great way to start the fiscal year". Mr. Van Allen wondered what he and Cheryl Kroyer were "inheriting", and why the Council members were not talking about this. He added that the revenues weren't shown by category, so they didn't know what had to be done to fix the shortfalls.
Gary Neiss clarified that the State has changed the reporting of sales tax revenue to local jurisdictions. The Arizona Department of Revenue is now collecting all the sales tax for every jurisdiction in the state of Arizona, whereas previously non-program cities could self collect. As a result, the software has changed, the collection method has changed, and the reporting method has changed. Every municipality is in the same position. What has historically been reported, due to the change in format, looks a lot different. It could be perceived as being down, but it's consistent with what Carefree has collected in the past in July. The funds are there, they are just being reported differently, which had been explained to Mr. Van Allen earlier that day. It's comparing apples to oranges.
Councilman Glenn Miller reminded Mr. Van Allen that the sales tax revenues are always down the first month of each new fiscal year. People are gone in July. But there is no reason to be nervous. There is over $6.6 million dollars in the reserves. Mr. Neiss added that the $245,000 WIFA payment is made on July 1st each year, so the Town is in the red at the beginning of every fiscal year as a result of that payment. The Carefree Water Company repays the Town in increments of about $23,000 a month throughout the fiscal year.
https://vimeo.com/181894468
Lyn Hitchon
Prepared by Carefree Truth
Visit our website at www.carefreetruth2.com If you know anyone who would like to be added to the Carefree Truth email list, please have them contact me. Feel free to share Carefree Truth with others on your list. Visit www.carefreeazbusinesses.com to see more info about businesses in Carefree. Please support our merchants.
Issue #511, September 9, 2016
At Call to the Public, Jim Van Allen stated that the sales tax revenue collected in July was the "absolute lowest" in the past 13 years. He said no HURF funds were included. He had told Lt. Baranyos that only $6,109 in fines was collected from the Court for that month. Total revenue was down 10.4%, $200,000. The net total was $250,000. The reserves took a hit of a quarter of a million dollars. This is "not a great way to start the fiscal year". Mr. Van Allen wondered what he and Cheryl Kroyer were "inheriting", and why the Council members were not talking about this. He added that the revenues weren't shown by category, so they didn't know what had to be done to fix the shortfalls.
Gary Neiss clarified that the State has changed the reporting of sales tax revenue to local jurisdictions. The Arizona Department of Revenue is now collecting all the sales tax for every jurisdiction in the state of Arizona, whereas previously non-program cities could self collect. As a result, the software has changed, the collection method has changed, and the reporting method has changed. Every municipality is in the same position. What has historically been reported, due to the change in format, looks a lot different. It could be perceived as being down, but it's consistent with what Carefree has collected in the past in July. The funds are there, they are just being reported differently, which had been explained to Mr. Van Allen earlier that day. It's comparing apples to oranges.
Councilman Glenn Miller reminded Mr. Van Allen that the sales tax revenues are always down the first month of each new fiscal year. People are gone in July. But there is no reason to be nervous. There is over $6.6 million dollars in the reserves. Mr. Neiss added that the $245,000 WIFA payment is made on July 1st each year, so the Town is in the red at the beginning of every fiscal year as a result of that payment. The Carefree Water Company repays the Town in increments of about $23,000 a month throughout the fiscal year.
https://vimeo.com/181894468
Lyn Hitchon
Prepared by Carefree Truth
Visit our website at www.carefreetruth2.com If you know anyone who would like to be added to the Carefree Truth email list, please have them contact me. Feel free to share Carefree Truth with others on your list. Visit www.carefreeazbusinesses.com to see more info about businesses in Carefree. Please support our merchants.