Sales tax, increased valuation help Cheney general fund

Cheney’s 2018 budget revenues might not necessarily be rosy, but they certainly don’t stink either.

City officials are forecasting total governmental revenues in the coming year at almost $12.64 million, an increase of 9.17 percent from 2017’s budgeted amount of $11.59 million. The increase comes from projected jumps in three categories: taxes, miscellaneous and the beginning fund balance.

Cheney is budgeting for $6.29 million in taxes in 2018, $334,900 more than what was estimated for 2017. The city is at 82.22 percent of this year’s projected $5.96 million figure with November and December collections remaining.

Leading the way are sales taxes, particularly general sales tax which at almost $1.232 million are at 98.55 percent of budget. Much of this is coming from construction activity in the city.

“Our general sales tax is rocking it this year,” Finance Director Cindy Niemeier told the City Council at a public hearing during its Nov. 14 meeting. “We’re very close to meeting our goal at the end of October.”

Construction has also benefited the city when it comes to building permits, which are at $195,218 of a budgeted $205,000. The city is budgeting $180,000 for 2018.

Of the five types of sales taxes, criminal justice and lodging are exceeding goals while public safety sales is just $4 away from its $100,000 target. Only brokered natural gas sales are lagging, coming in year-to-date at $103,629 and projected at $118,000.

Miscellaneous revenue of $947,000 is $501,900 more than budgeted for 2017. The fund is healthy so far this year at $442,143, helped by interest income from investments, rental/lease revenue and contributions/transfers from other funds.

Niemeier said the increase in 2018 is mainly due to the city’s pursuit of a $500,000 LOCAL loan from the state Treasurer’s Office to help pay for a main attack engine for the city’s fire department.

Finally, the beginning fund balance for 2018 is budgeted at $1,408,700, a $765,600 increase over 2017’s budget of $643,100. Niemeier said this is not revenues but cash brought over from 2017 to go with budget projections in 2018.

The city is also benefiting from increases in charges for service, which is currently $100,232 short of reaching its budgeted $2,954,500 for 2017. Niemeier said credit for this belongs to individuals such as City Administrator Mark Schuller for renegotiating a better fire services contract with Eastern Washington University, and Police Chief John Hensley for negotiating ACCESS information storage contracts with other West Plains law enforcement agencies.

Cheney is budgeting $2.92 million for charges for service in 2018. It is also budgeting $2.152 million in utility taxes, an increase of just $66,800 over 2017.

The city is $219,651 short of 2017 utility projections, much of the shortfall coming from telephone taxes at 62.59 percent of budgeted $190,000 and overall utility taxes at 88.35 percent of the budget $1 million. The city is budgeting $160,000 for telephone and $1.02 million for utility in 2018.

Mayor Tom Trulove said the drop in telephone taxes comes as more people get rid of their landlines in favor of cellphones, while utility taxes are dependent on the weather, making budgeting for departments such as parks and recreation — which receives a good chunk of funding from a electrical service tax — a challenge.

“Things (that are) outside our control,” Trulove added.

WHERE THE MONEY GOES

What will Cheney’s governmental revenues pay for in 2018?

Department Budget Percent of budget

Police $ 3,147,300 25

Fire $ 3,019,900 24

Finance $ 1,261,700 10

Parks $ 1,073,900 8

/Recreation

Streets $ 948,600 7

Capital $ 731,000 6

Facilities

Administration $ 541,700 4

Building $ 474,800 4

/Planning

Public Works $ 367,900 3

Administration

Court $ 337,900 3

The remaining 6 percent, $731,000, includes Information Technology ($246,500), Legal ($209,000), Lodging Tax Uses ($190,500) and City Council ($85,000).

John McCallum can be reached at [email protected].