Island revenues up, despite HOT tax decline

Special to the PRESS

During a special session held on Tuesday, April 24, the SPI City Council was presented with a mid-year budget review by the City’s Chief Financial Officer Rodrigo Gimenez.

The CFO began by reporting that the City is in compliance with its required reserve funds. “We need to keep a six month reserve for operating funds, that includes the general fund, Convention Centre, and beach maintenance. On top of that, we have excess reserve funds on these three too,” Gimenez said.

In terms of revenue, Gimenez projected the City would collect an additional $110,000 over what was budgeted. “We budget a collection rate of 98 percent. We gave ourselves some gap there, so that’s why we’re expecting to collect $100,000 more,” he said.

Gimenez said the City had collected $954,700 in sales tax collected through March, representing an increase of $37,084. He clarified that the increase was due in large part to payment adjustments associated with prior years. “When I checked the details of the payments, $33,000 of this $37,000 is for prior period adjustments, so it’s not for activity in the past six months,” he explained, adding that sales tax collection through the first six months of the current budget is essentially flat.

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