By: Ken Krefft
An unexpected very large increase in Shreveport’s July 2020 sales tax receipts should give pause to the recent passage of Resolution #90 of 2020. This was approved 7/28/2020 when the council voted 4-1 to authorize the LA State Bond Commission to allow the city to borrow $35 million.
I respectfully think the council should reverse that vote entirely. If not that, at least borrow far less, say $15 million.
July 2020 sales tax revenues were $11,567,336.88, the largest non-January amount ever collected. January is the largest annual figure generated because it reflects December, i.e. Christmas, retail sales. Maybe $1,200 federal stimulus checks contributed to the July total.
More importantly, our year-to-date 2020 sales tax income is now just 1.5% below 2019's 7-month total. Readers might recall in an earlier column I noted that the sales taxes we take into the city’s general fund are by far our greatest source of revenue, some 57% of all monies deposited into city coffers.
Readers are encouraged to share their thoughts if they have a hunch why it was so big last month. Text or call my cell 318-218-0248, if you have an idea.
If we proceed to borrow the whole $35M, then there is NO GOOD REASON not to give our public safety folks a much-deserved pay raise and to increase substantially our operating budget reserves.
Geaux sales tax!