City budget: Property tax receipts up, sales tax down

McCOOK, Neb. -- The City of McCook is projecting property tax revenue to increase by more than $40,000 in the coming budget year, while sales tax revenue is budgeted for its first decrease in several years.

The city plans to maintain the same property tax levy of $0.319044 and the increase in General Fund property tax revenue is predicted to come from higher valuations. City property tax revenue decreased by approximately $19,000 in 2013 and has steadily increased since. The 2015-16 budget is projected to exceed more than a million dollars in General Fund property tax revenue for the third straight year. Property tax revenue is budgeted for $1,089,379.

A review of the city budget indicates General Fund sales tax revenue has steadily increased for several years but is projected for a decrease in the coming budget year. Sales tax is projected to end the 2015 budget year at $785,167 and decrease to $736,667 in the coming budget.

Despite City Council maintaining the same property tax levy, property tax revenue has outpaced sales tax revenue over the past decade. Property tax revenue in the general fund has increased by $171,949 when comparing the 2005-06 city budget with 2015-16 budget, an increase of 18 percent. Sales tax revenue increased by $89,898 in the same comparison, an increase of 13 percent.

The 2015-16 fiscal year budget will be presented to City Council on its third and final reading on Tuesday, Sept. 8, at the Municipal Center.