Cullman revenues up in first quarter
Published 5:15 am Wednesday, January 29, 2020
- Cullman City Council President Jenny Folsom and councilman Andy Page talk business at a 2018 work session.
The city of Cullman’s first quarter revenues for the 2019-2020 year are up over the same period as last year.
Total revenues for the first quarter, Oct. – Dec. 2019, were up 3.32 percent over the previous year, with revenue from online sales tax driving the increase. Cullman received $73,603 from online sales tax in the last months of 2019 as compared to $20,470 for that same period in 2018. Alabama began collecting a flat 8 percent sales tax on online purchases in 2018 following a U.S. Supreme Court ruling that allowed states to collect sales tax from online retailers.
Council President Jenny Folsom noted the online sales tax, “is growing steadily each time and we’re glad that’s finally coming about for us.”
She also said that overall, the sales tax revenues indicate a strong economy in Cullman, combined with the second-lowest unemployment rate in the state. “People in Cullman are working,” she said. “Anybody that is capable of work and wants to work has a job.”
Cullman also saw increases in local sales tax, 2.99 percent over the previous year first quarter, and in revenues from the liquor tax, up 17.67 percent. The beer and wine tax revenues were down 20.28 percent from the first quarter revenues last year.
Expenses for the same period were also slightly higher, which Mayor Woody Jacobs attributed the paving projects the city undertook in the final months of 2019. “We paved a lot of roads,” he said. Expenses for the first quarter this fiscal year were $9.1 million compared to $8.6 million, an increase of 5.83 percent.
The mayor also reported that the city was able to save $77,000 by using the Alabama Rural Water Association (ARWA) to conduct its risk assessment and emergency response plan. Originally, the city was going to hire an outside firm to conduct the assessment, but Water Department Superintendent Chris Freeman suggested AAWP may do it as a free service to members. Freeman contacted ARWA and they provided the service at no charge and completed it within a few days, said Jacobs. According to Freeman, the city pays a little over $1,000 a year in dues to AAWP.
In other business, the council:
Purchased the Ray property, located behind northside Walmart, for $38,250. The property will help the city address drainage issues in the area.
Gave 33 air packs and equipment that the Cullman Fire Department no longer needed to the Cullman County Volunteer Fire Association. “I think it’s a good thing for everyone in the county,” said Folsom. “These are breathing apparatus for the firemen, and I think it’s a good idea to let the Volunteer Fire Association distribute them as they know the needs of the volunteer fire departments.”
Awarded a bid in the amount of $138,594 for water and sewer repair materials to Southern Pipe and Supply Company