Politics & Government
Crestwood’s April Sales Tax Revenue Lower Than Projected
City Administrator Karl Kestler says in a report that the full effects of the Sears and Barnes & Noble's closures will be felt later on the year.
According to a report by Karl Kestler, Crestwood’s city administrator, April 2012 sales tax revenues of $575,637 were minus 9.8 percent, or $62,663 less than the $638,300 projected for the month.
Kestler, however, adds in his report that for the combined first four months of 2012, sales tax revenues were up by $57,494, or 2.6 percent. Comparing 2012 results to the same four-month period of 2011, sales tax receipts are up $89,745, or up by 4.2 percent.
In his report, Kestler notes that the numbers do not reflect the full effect of the closure of , which closed on Dec. 31 of last year, or the .
Kestler said the full effect of these closures will most likely not be seen until the later part of the 2nd quarter and 3rd quarters of 2012.
“City staff will continue to monitor sales tax receipts throughout the year and will notify the Mayor and Board if any budgetary revisions need to be discussed,” Kestler said in his report.
Finance Officer Greg Kramer said the projected loss of sales tax revenues from the closure of the two stores is $287,000. Kramer, however, said the overall revenue is projected at $5.8 million.
“Any reduction in sales tax revenue is obviously not good news for the city,” Kremer said. “But I think we will be OK.”