Another comment that went unreported by our local paper at the last council meeting was in reference to our sales tax revenue. When it was pointed out that our most recent sales tax check was $4000.00 below last years check for that same month our Mayor stated that it was, however , $22,000.00 higher than our previous check received the month before. He stated that this , in his mind, was an indication of rising sales tax revenue for our city. It’s this type of fiscal thinking that will land us in trouble in the very near future. Let me explain.
We receive monthly checks for our sales tax revenue. Each month our comptroller notes on our copies whether or not the amount reflects an increase or decrease from the previous years amount for the same month. This is important because each month varies and that’s due to the time of year as far as sales. December is a better retail month than say February. More gas sales tax is received during the summer driving months. You get the idea. That’s why we NEVER go by one month to the next to determine a trend. Generally statistics are boring so I won’t overload you but I do need to give you a few important numbers.
First, our total sales tax receipts for the calendar year of 2007 was $1,937,640. This includes the 1/2 per cent which was passed for the parks and infrastructure back in 2005.
The total sales tax for calendar year 2008 was $1,844,955. This was a decrease of $92,685.00 or a drop of 4%
That’s bad enough, but for the first three months of receipts for 2009 (we have a two month lag from when tax is collected and when we receive our check) we are down $36,279.00 against the same period from 2008 . That’s an 8% drop or twice as much as the previous year. If that trend continues (and it looks like a real possibility) we could see a decrease of $147,596 for this calendar year!
This is what scares me about the fiscal control (or lack thereof) under our current administration.
So here is the question….are you confident that those controlling the city funds are up to the task? Let me hear from you, better yet , let them hear from you!
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It appears that you have little faith in “our” mayor and your fellow counsilmen. The trend in lower sales tax revenue for the City of LaSalle seems to have been going on much longer than the current adiministration was in place. May I ask why the former mayor and counsilmen did not work on increasing the revenue as it was sliding? Where are all the new businesses that Mayor Waskowiak and the council should have been bringing into LaSalle? Your statement does seems to indicate that you finally understand the need for an economic director in LaSalle.
Thanks for your comments, but I think you are confused with the point I was trying to make. I am not blaming this Mayor or the previous Mayor for the drop in sales tax revenue. The drop is a result of the state of our economy as it is today and has been for the last year or more. My concern is how our current Mayor interpreted the numbers as to whether we are increasing or decreasing our current revenues. It’s obvious our revenues, like so many other cities, are experiencing a decrease and we must rein in spending wherever possible. If a governmental body, on its own, could increase revenues (other than by raising taxes) than we would never experience a down economy again! We know that is not possible. There is not a line of businesses waiting to relocate to our city and all we need is someone to direct them here. The reality is that we are in for some continued tough economic times and the addition of an economic director is not going to change the recession we are and continue to experience at this time
Citizen….
I guess you didn’t read this comment when I posted it to the economic director blog…. Here it is… again….
LaSalle Has been stagnant for years? Hmmm… Well I take it you don’t work at JC Whitney, Conway, Flying J, Hickory Hollow, Senica’s Golf Course, Senica’s Banquet Center, Nail Polish, Lucious Moi, The Canal Boat, the Lock 16 Visitor’s Center, etc. I guess you have not driven on the more that 150 blocks of road that Mayor Washkowiak had repaved (fiscal year 2007 I believe) Played tennis on the newly repaved tennis courts, swam in the new pool, checked out a book from the recently expanded Library, or had a child play little league on Volunteer Field. Maybe you don’t live on St Vincent Ave and received water from the new pipes, or flushed waste down the new sewers. Mayor Washkowiak worked to bring all this to the City with fiscal responsibility. Now do I wish we had an Olive Garden, Costco and major factory employer? Yes I do, but unfortunately you don’t just wish for these businesses and they magically appear. Not for Mayor Grove, or for anyone. Yes there are a lot of things that can be done as a City to attract businesses, but one factor often overlooked by the casual citizen is the education level of the community.
As far as more City improvements, well we will see if Mayor Grove has a money tree the rest of us don’t know about. Personally I think we could have 3 economic directors working 24/7 365 but in this economy I don’t think it will do much. Just ask the folks who want to remodel the Kaskaskia or build the Frontier Lodge how easy it is for a loan right now.
Thanks for listening.