Junction City Finance Director reviews the sales tax picture

Junction City has received their increment of Sales Tax for July, and here is where the City landed.  According to Finance Director Lindsay Miller in the City Manager’s 515 report, the amount received was $1,098,226.04. This puts the City with the 12th best month on record.  This was the 3rd highest City Sales Tax for the month of July. It was also the 5th best County Sales Tax for July.

It was the City’s highest month for Use Tax for the month of July and the 3rd highest Use Tax for the fiscal year. With this new month, the City is no longer beating last year’s receipts, but they are only  slightly behind ($3,287.). 

Miller advised that keep in mind that inflation has had an effect on the City’s budget. While these increased revenues are nice, they aren’t building the cash balance as fast as one might think because the City is taking the inflation hit. Back when officials  wrote the 2022 budget, they had no idea costs would increase as much as they have. Not only have operating supply costs gone up (including heating and motor fuel,) but so have the cost of salaries. The City has several positions that are not pulling in good (or any at all) applications, and of course they are all essential positions.

Miller said remember that salaries are not what they call one and done expenses as they are “compounding.” There are additional costs that are directly affected such as retirement, social security, Medicare, and unemployment. She added that she was mainly pointing this out to show the costs do add up quickly. With the current labor market, we are definitely having to slide the starting wage up, to get good applicants in the pool. It is all about balance not just with each position but throughout the City. Miller said that they have more work to do, but that have to do it in increments to help ensure the City stays within their fiscal reach.

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