At its regular meeting on November 23, 2021, the Eutaw City Council received reports in its budget, bank accounts, sales tax collections and the Water Department.
Two Council members were absent – LaJeffrey Carpenter and Tracy Hunter – but a quorum was present which allowed the meeting to proceed.
Based on recommendations from their Financial Adviser, Ralph Liverman, the Council reviewed and approved several bank resolutions to close several certificates of deposit and place checking accounts into money market accounts, which will earn interest on surplus funds on deposit in these bank accounts.
Liverman also presented a detailed report on the opening balances in all city banking and operational accounts as of the start of the fiscal year on October 1, 2021.
The most interesting report that Liverman furnished was a record of sales tax and motor fuel revenues received by the City of Eutaw over the past three fiscal years, which shows the impact of the Love’s Travel Center in significantly increasing the tax revenues paid to the City of Eutaw.
A chart summarizing this information is included in this news report. The chart shows revenues for the three fiscal years, FY2018-2019, which was the year before Love’s opened for business, FY 2019-2020, which includes the first eleven months of Love’s operation and FY 2020-2021, which includes a full year of the truck stop and travel center operations.
The chart shows an increase of sales taxes from $530,962 before Love’s, to $772,756 for last year, which was a full year of operation for the travel center. This is an increase of $ 241,794 or 31%
The fuel tax increase, which is based on 3 cents per gallon, increased from $54,798 to $472,377, which is an astounding increase of
$ 417,574 or 762%.
Overall sales tax and motor fuel revenues increased from $692,730 to $1,515,045, which was an increase of $822,315 or 119%. On a monthly basis this represents $126,253 in tax revenues added to the city budget.
Note that the total sales tax rate in Greene County is 10% of which 3% goes to the municipality, in this case the City of Eutaw; 3% to the County Commission, and 4% to the State of Alabama. So, the county government and State of Alabama are receiving similar increases in revenues, to those received by the City of Eutaw.
It should also be noted that much of the increase in tax revenues which is attributed to the Love’s Travel Center were from people traveling through Greene County on Interstate 20/59, not from residents of the city or the county.
The Eutaw Water Department reported continuing progress in collections and reducing water losses. The City collected over $75,000 in water revenues for November 2021, which was about double what had been collected in previous years. There are 1,461 customers, with 12 new customers of which 9 were customers found, who previously had not been billed. There are still 534 accounts with $63,469 past due and receivable, some of which are under payment agreements.
In other actions, the Eutaw City Council:
• Did not approve, November 24, the day before Thanksgiving for a full day paid vacation for employees. They left this benefit at a half day.
• Approved changes in the right-of-way for utilities and access to Raintree Apartments LLC and a similar adjustment for Rollingwoods Apartments.
• Heard reports from the City Engineer and Chief of Police.
• Agreed to pay bills for November 2021.