Monday, October 6th, 2014
County collects record sales tax revenue
By Shelley Grieshop
CELINA - The area's robust economy appears to be leading Mercer County to a fourth-consecutive record-breaking year of sales tax revenue.
With sales tax collections up nearly $135,000 or 3.9 percent over 2013 as of September, county auditor Randy Grapner predicts 2014 will beat last year's record $4.6 million.
"Looks like a nice increase once again," Grapner said. "I think we're on track to do $1.2 million in the next three months."
The county has collected almost $3.6 million since January, the latest sales tax report shows. Mercer County's sales tax rate is 1.50 percent; 0.5 percent is used each year to pay down the debt and maintain the adult detention center/sheriff's office.
The combined state and county sales tax rate is 7.25 percent.
Longtime county commissioner Jerry Laffin said the local revenue totals this year are "as well if not better than our neighboring counties'."
"We continue to have the lowest unemployment in the state, which means people are working," he said. "I think some (residents) might be working more hours so they have more money in their pockets to spend."
The amount of sales tax revenue reported each month reflects spending from about two months earlier. Monthly increases this year over last year ranged from 2.2 percent in February to a whopping 9.4 percent in January. The latter reflected holiday shopping in November and December, Grapner explained.
Sales tax in July dropped $10,972 or 2.8 percent from the same month in 2013. It was the only month that tax revenue slipped below last year's figures.
"I'm not sure why that happened," Grapner said.
Mercer County carried over $2.7 million into 2014, up from $2.1 million in 2013. However, Laffin said he's not sure the carryover will be that high going into 2015.
"It could fluctuate due to expenses," he said.
The county expects to upfront money, possibly yet this year, to buy land for one of two planned treatment trains at Coldwater Creek south of Celina and Beaver Creek near Montezuma. The cost is as yet undetermined and would eventually be reimbursed to the county when grant funds are received, Laffin added.
Commissioners also are spending more than expected to upgrade a county-owned employee parking lot to the north of the courthouse. A total has not yet been calculated for a recent design change to create more parking spaces.
Laffin said commissioners are optimistic about the county's financial shape in 2015 but must remain conservative. He worries that farmers facing drastic cuts in grain prices the last few years may not be as quick to spend in the coming months.
Grapner said the county estimates local government funds in 2015 will be slightly higher than the $974,354 received this year. The funding has dropped 50 percent since 2010. The county lost $1 million in local government funding in 2011-12 and another $750,000 in 2013, he said.
He hopes the state soon begins sharing its wealth, he said.
"The state's general revenue fund is up about 30 percent. Its rainy day fund is full. When it reaches $1.4 billion, (the state) statutorily has to return the surplus to local governments as tax refunds."
Grapner is pleasantly surprised with the increase this year in casino tax revenues, he said. Mercer County with the upcoming final distribution in 2014 will receive nearly $500,000, up from $462,624 last year, he noted.
"Our reports indicate all the casinos are doing well," he said.
Grapner said all county departments continue to monitor their budgets and remain within their appropriations, he said.
The commissioners again this year pursued necessary capital improvement projects while keeping within the county's budget, he said.
"In the last 31/2 years we've accomplished a lot," Grapner said.
