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Interim finance director: DeSoto sales-tax receipts lag; board seeks industry breakdown
Summary
Interim Finance Director Nikita Sutton told the DeSoto Development Corporation board that sales-tax collections are tracking behind last year and requested more detailed, quarterly breakdowns by industry. Officials discussed impacts on the FY25–26 budget and noted interest revenue strength.
Interim Finance Director Nikita Sutton told the DeSoto Development Corporation board that the city’s sales-tax receipts are trailing last year’s pace and that staff will provide more detailed, quarterly breakdowns on request.
Sutton said the fiscal-year sales-tax budget is $2,700,000. “As of the June, we have received 1,600,000.0 of that. So that puts us at 60% on our, sales tax, which is tracking somewhat behind last year, which we were at 67% this time last year,” she said. The July report showed collections of about $1,900,000 and sales tax at roughly 70% of the budgeted amount compared with about 75% the prior year.
The board pressed staff to break out collections by industry sector — for example, food services versus general merchandise — to identify what is driving the decline. A board member asked for the breakdown on a quarterly schedule; Sutton said the city’s new software can produce that output and staff will provide it on a quarterly basis. Sutton also said the level of aggregation the Comptroller requires limits the usefulness of some public reports, but staff can produce internal, more detailed trend monitoring for selected large taxpayers.
Sutton noted one-time, large industrial purchases can produce sharp spikes: “Well, it’s because it was a $20,000,000 investment,” she said, pointing to earlier spikes tied to industrial capital purchases. The board discussed the longer-term effect of changes in development patterns and housing choices on where residents spend money, and several members urged focusing attraction work where the community can realistically capture new retail and industrial investment.
On non-sales revenue, Sutton said interest income is performing well. “Interest revenue is at a 101% of budget,” she said, noting last year’s high rates were an anomaly.
Board members asked staff to add year-over-year and month-to-month trend columns and a trend line graphic to future reports so the board could more clearly evaluate whether the city is stabilizing or continuing to fall behind peers.
The presentation closed with staff saying they will provide the requested quarterly industry breakdowns and a month-over-month trend comparison at upcoming meetings.
