Sales tax leading source of income for city, property taxes third — audit

McCOOK, Neb. — The largest source of revenue for the City of McCook is not property taxes, but city sales tax.

That’s according to the financial audit presented to the McCook City Council Monday night by Mary Luth, auditor AMGL CPAs and Advisors.

The top four sources of revenue for the city are sales tax, 25%, grants and contributions, 20%, property taxes, 13% and state allocations, 16%.

Per capita cost for sales tax was $391 per person for McCook residents, higher than the recommended $290 per capita but consistent with prior years, Luth said. Other per capita costs on sources of revenue were grants and contributions, $309 per capita in McCook, $230 recommended; property taxes, $204 per capita, $254 recommended and state allocation, $246 per capita in McCook and $177 recommended.

Cost per person for city expenses, excluding capital outlay, were: $97 for administration, $90 recommended; $157 for fire, $70 recommended (Luth said the higher per capita cost here was due to the city’s fire department having a paid staff while most of the peer group cities do not); $27 for cemetery, $25 recommended; $19 for ambulance, $15 recommended; $20 for airport, $30 recommended; $21 for handi-bus, $10 recommended; $11 for pool, $30 recommended; $44 for parks, $60 recommended; $44 for library, $60 recommended; $1 civil defense,$2 per capita;$11 for planning, $20 recommended; $240 for police, $220 recommended; $51 senior center $220 recommend; $6 for auditorium, $35 recommended; and $95 for health operating and perpetual care, $65 recommended.

The city increased its net position as of September 2021 by $1.97 million. Total revenues in 2021 came to $10.1 million, with sales tax revenue at $2.9 million, property taxes at $1.5 million, state allocations at $1.8 million grants and contributions, $1.8 million. Total expenses came to $9.6 million, with public safety, 38% at $3.6 million, public works, 20% at $1.96 million, environmental and leisure, 20% at $1.94 million and general government, 17% at $1.57 million.

Combined ending fund balance at the end of the fiscal year of 2021 came to $8.31 million. Of that, 4.8%, or $398,294, was not assigned and is available for spending at the city’s discretion.

The remainder is not available for new spending as it has been restricted to other uses: to pay debt service, $395,909; capital projects, $837,548; perpetual care (cemetery), $151,527; community betterment (revenues from Keno), $43,165; economic development projects, $879,313; federal projects, $1.7 million; street projects, $1.12 million; capital projects, $551,506; storm/hail repairs, $472,195; budget stabilization, $1.7 million.