Geneva again collecting less sales tax

Geneva is collecting less sales tax than it expected, again.

For the fourth month in a row, it received less than it budgeted, this time 8.1 percent less for the month of July.

It's also the fourth month in a row that sales tax receipts were down compared to last year at this time, by 5.5 percent.

At the six-month point in its fiscal year, Geneva is off $132,599 from its projected revenue.

Even if it collects exactly what it did last year for the remaining six months of this year, it would have $240,279 less than budgeted. It planned to receive $5.45 million.

Geneva relies on sales tax for about 44 percent of its annual revenue for the part of the general fund that pays operating expenses, such as salaries and supplies.

"That's why the city administrator watches that very closely," said Don Weis, finance director.

He said the drop is a continuation of the 2006 decline in sales taxes in the lumber-building-hardware and furniture and appliance categories. That's being blamed on the slowed-down housing market, coupled with general sluggishness in other areas as high gasoline prices affect consumers' budgets and confidence in the economy.

It is being offset somewhat by higher-than-expected income tax revenue; the first four months of that were both higher than budget and higher than last year. In the fifth month, the last received, revenues were $221 under budget, but still higher than last year's.

Municipal utility taxes are up, too, especially due to higher rates and usage for natural gas.