Just how much the closing of the east bound exit and entrance ramps to Interstate 70 at the Abilene intersection cost the city and Dickinson County in sales tax revenue will not be revealed for a couple months.
Abilene City Manager David Dillner said that sales tax figures are reported two months behind.
However, Dillner said that sales tax collections for 2013 are about 4 percent behind last year’s sales. That was before the exit and entrance closure.
The Kansas Department of Transportation closed the entrance and exit ramp to Interstate 70 on Aug. 19 for repairs to the highway. KDOT expects to open the ramps this month.
Jacque Immel, manager of 24/7, told the Reflector-Chronicle that sales at the store were cut in half.
Dillner said the city received $174,268 in sales tax receipts during the month of July, which represents $160,274 in sales tax and $13,994 in compensating use tax. Of this amount, $107,798 (45 percent) was collected from the general sales tax; $38,773 (32 percent) was collected from the 0.35 percent dedicated to Library/Pool Improvements; and $27,697 (23 percent) was collected from the 0.25 percent dedicated to the Local Street Improvement Program.
Dillner said that year-to-date the City has received $930,342 in general sales tax receipts compared to $967,658 in 2012.
The year-to-date sales tax trend is about 4 percent below the previous year-to-date receipts. The month-to-month trend is also down about 4 percent compared to June’s receipts.
The city is in the process of developing a Downtown Revitalization Program that will be focused on creating more retail sales opportunities in the Downtown Business District. Increasing retail sales by about 5 percent produces revenue equal to about one mill in property taxes. Generating more retail sales is one way to stabilize property taxes and strengthen businesses.
The revitalization plan will be one of the topics of the city’s bi-annual business summit to be held at 6:30 p.m. Thursday at the Civic Center.
Diller said approximately 48 percent of the city’s general sales tax is generated from a portion of Dickinson County’s 1 percent sales tax. Through July, the city has received $443,136 from its portion of the county sales tax. Last year at this same time, the city had received $492,550 from the 1 percent county sales tax.
The city’s general sales tax collections are projected to end the year at about $1.24 million, or slightly above the $1.2 million budgeted in 2013.
This was the fourth month of collections for the 0.25 percent sales tax dedicated to fund the Local Street Improvement Program. So far, the city has collected $111,104 from this dedicated sales tax and is anticipating collection of $222,208 for the first year of the sales tax. The sales tax was approved by a majority of voters in November 2012 for a 10-year period sunsetting in 2023.
The City will commence street improvements in 2014 after sufficient funds have been received for a project.