Cullman revenue up 7 percent

Published 5:30 am Tuesday, January 23, 2018

Cash register bells were ringing this past holiday season, helping net the City of Cullman sales tax revenue that was more than 7 percent higher than last year.

The city raked in $318,622 in additional sales tax revenue in October, November and December — the first quarter of fiscal 2018 — jumping from $4.19 million to $4.5 million. Council Pro Tem Jenny Folsom reported the positive revenue numbers during Monday’s city council meeting, with overall revenue up nearly $572,000, or 7.1 percent, from the first quarter of fiscal 2017.

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“That’s a little over a half-million dollars we hadn’t planned for, and we’re going to put it to good use,” Folsom said.

Sales tax makes up the largest portion of the city’s budget, and the surge helped Cullman’s budget at a time when its beer and wine tax revenue fell 28.87 percent, or $37,644, during the same time period. And while commercial activity is trending up, revenue from the city’s business licenses were down, nearly 25 percent or $42,421, from last year.

“Expenses were about the same as last year’s but there’s a lot of capital expenses with the new fire station and water department,” Folsom said.

She also noted the recent unemployment rate numbers the state released last week which saw Cullman County secure the second-lowest rate at 2.8 percent, behind Shelby County.

In other business, the Cullman City Council:

  • Approved Jan. 9 meeting minutes.
  • Honored Cullman Police Department officers.
  • Approved request from Garage Superintendent Mason Kugler to purchase an air compressor for service truck from Lowe’s, Inc. in the budgeted amount of $2,799.
  • Approved request from Street Superintendent Scott Talley to purchase for $14,100 a truck mount skid sprayer for de-icer which will double the city’s capacity and allow workers to apply brine to areas the truck can’t reach, said Mayor Woody Jacobs.
  • Approved revised tax abatement to Royal Technologies Corporation to reflect the company’s increase investment with a new expansion project, from $2.7 million to $4,121,462. No educational taxes will be abated.
  • Approved committing $100,000 in matching funds for a grant through the state’s Recreational Trails Program for a multi-purpose walking/bicycle trail for City Lake Park.
  • Authorized City Attorney Roy Williams to request an Alabama Attorney General’s opinion in regard to the city’s limitation of its taxing authority.