First covid-19-affected sales tax month exceeds expectations

March sales tax is in and the city is seeing a budget surplus despite an expected dip from covid-19.

According to a report prepared by finance director Cary Elsten, total year-to-date sales tax income — currently reported through April — came in at $3,065,988, compared to $2,652,756 this time last year, a $413,232, or 16%, increase in total income resulting in a $286,016 surplus compared to projected income outlined in the city’s 2020 budget.

Year-to-date income from city sales tax totals $845,008.73, while county sales tax makes up a $2,220,979.74 chunk of the city’s current income. These two income sources have increased by 24% and 13% compared to last year, respectively.

The most prominent increases in collections came from electronic and mail-order shopping, which rose to $27,943 in March compared to last March’s $9,350; grocery stores, which increased to $25,616 compared to $15,182 in March 2019; and building material and supplies dealers, which increased to $24,477 compared to $16,920 in March 2019. Other contributors include retailers dealing in health and personal

care, telecommunications, automotive, electronics and home furnishings, as well as restaurants and social organizations.

Mayor Peter Christie said he expects to see a slump in sales taxes and the city will continue

operating with its tier 1 budget cuts, which trim $735,000 from the city’s annual budget.

The city will also be deferring the remount of an ambulance and street resurfacing, he said.

The ambulance remount was an easy cut to make because Ford has stopped its production line.

“Once we see a trend to financial turnaround, we will schedule the ambulance

for a remount. Once the ambulance is sent for the remount, we will still have five ambulances available,” he said, noting the city also has mutual aid agreements with neighboring cities and can expect backup if there’s a shortage of ambulances.

Street resurfacing is a bigger concern because state turnback funds for street resurfacing are being

reduced, which could reduce the city’s street resurfacing budget by roughly one third, or $400,000, he explained.

“I am staying very close to this issue with my State colleagues,” Christie said.

These increases so far are partly a product of the city budgeting conservatively, he said, and partly reflect an increase in grocery sales when residents stocked up in March.