Montgomery sees tax revenue bounce, but will it last? - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

Montgomery sees tax revenue bounce, but will it last?

Posted: Updated:
MONTGOMERY, AL (WSFA) -

The city of Montgomery appears to be bouncing back. Mayor Todd Strange is quietly celebrating a major increase in revenue compared to this time last year.

The emphasis is on quietly celebrating because the fiscal year has only just begun. It's still early, but the numbers from October activity - the first month of the fiscal year - show a $770,000 increase in tax revenue over this time last year.

The city of Montgomery needs the extra cash. Its budget assumes at least a $1.3 million increase in revenue for the coming year. The October total was $450,000.

Mayor Strange, cautiously optimistic, says it's somewhat of a relief and that it gives the city some breathing room.

"This is the activity in October that gets reported in November," Strange says.

October, you'll remember, was the month the federal government shut down for 16 days.

"All those negative things that were happening to the 3,500 federal employees around here, we overcame that," Strange says.

The city's lodging tax accounts for the biggest percentage of the extra revenue, some 16 percent. ABC, gas, and sales taxes also contributed.

For now, though, the mayor will stay focused on spending within the budget, hoping to see more signs of promise in the near future. Strange says the next two or three months will be particularly important. He's hearing rumblings, he says, of another possible shut down/sequester situation he fears could put a dent in the cushion that's just built up.

Copyright 2013 WSFA 12 News.  All rights reserved.

Powered by WorldNow

310 Broadway
Cape Girardeau, MO 63701

FCC Public File
publicfile@kfvs12.com
573-335-1212
EEO Report
Closed Captioning

All content © Copyright 2000 - 2014 Worldnow and KFVS12. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.