Council receives Fiscal Year 2018 report
KINGMAN – A Fiscal Year 2018 wrap-up report shows that the City of Kingman’s finances are in good shape, with increases in TPT collections, state shared revenues and a steadily-growing local economy.
At Tuesday’s meeting, City Finance Director Tina Moline provided City Council with pre-audit figures for Fiscal Year 2018. She noted that some of the figures may appear higher or lower than they actually are because the City is changing the way it reports its revenues to match the Department of Revenue. In the past, the department has reported collections about two months late, but has now corrected that and is on schedule.
“Any time you make an adjustment it’s either going to have a positive or a negative impact on the year you’re making the adjustment,” Moline explained.
She applied that consideration to the City’s TPT, or sales tax, collections for FY 2018. TPT revenues increased by 6 percent from FY 2016 to 2017, but figures from FY 2017 to 2018 are up less than 4 percent.
“So it looks like we’re only up 3.9 percent, however, if we were to continue to report the way that we’ve always been reporting we would be up about 6 percent again,” Moline said.
Those figures do not take into account the 1 percent increase in the TPT rate. If the increase is accounted for, TPT revenue growth is at about 27 percent.
The City has two funds that receive state-shared revenues: the general and HURF funds. The general fund has experienced a 4 percent increase for the last 3 years, and the HURF fund has experienced anywhere from a 5 percent to more than 6 percent increase.
The City’s largest operating fund, the general fund, has seen increases across the board leading to a 4.2 percent increase in revenues over last year. TPT collections are up, state-shared revenues are up, building permit fees have increased by 17.6 percent, and investment earnings have more than doubled to $94,000. In total, the City of Kingman added about $677,000 to its general fund balance in Fiscal Year 2018.
For the HURF fund, restaurant and bar TPT revenues increased by more than 13 percent, “However, that’s part of that adjustment, that’s one of those categories that actually recognized a positive impact so I wouldn’t expect that going forward. We’re not recognizing that sort of increase in activity,” Moline said.
HURF expenditures for pavement preservation have increased by nearly 43 percent.
Other highlights include a more than 41 percent increase for Powerhouse Fund merchandise sales and more than $2 million each to the I-11 East Kingman Connection Fund and the Pavement Preservation Fund.
TPT collections exceeded the estimated 2.75 percent growth, even without the additional 1 percent increase, and the local economy is in good shape with increases in single-family residence building permits, commercial building permits and business licenses.
Water, wastewater and sanitation customer bases have also increased by 3 to almost 4 percent. However, there are associated problems with those additions the City will have to overcome.