By: Gary J. Groman
The operating financial condition of the city of Branson in a nutshell is, “Let’s be very careful, especially when we have a couple of months coming up where we could see some dips and let’s expect those dips to happen. If they don’t happen that’s good news. If they do happen then we’re ready for them.”
That “nutshell” is based on the most recent financial reports presented to the City of Branson’s Finance/Budget Committee at its June 24 meeting and the response of Branson’s new city administrator, Dean Kruithof to that report. The report was presented by John Petty, President, District Offices, LLC (District) who also affirmed Kruithof’s response.
In presenting the monthly report Petty pointed out although slightly less than in March of 2007 the 1 percent City Sales Tax receipts for March of 2008 were starting their seasonality trend upwards. The report breaks the collection of the tax into three general areas, Branson Landing, Branson Hills, and the rest of Branson. The collection of the tax at Branson Landing dropped from $88,206 in March of 2007 to $84,485 in March of 2008, from $605,480 in March of 2007 to $543,170 in March of 2008 for the rest of Branson and increased from $36,676 in March of 2007 to $45,704 in March of 2008 at Branson Hills.
Petty said, “The 1% Sales Tax Trend is mostly used for seasonality impact on the city’s finances.” For budgeting and the managing of the city’s operation the report suggests a rolling 12 month average of the general sales within Branson which fall under the city’s 1% sales tax.
The report indicates the “rolling general Sales” at Branson Landing rose from $78,983,359 in March of 2007 to $106,801,257 in March 2008, at Branson Hills, it rose from $40,560,256 in March of 2007 to $50,387,373 in March of 2008 and, for the rest of Branson, it dropped from $843,282,090 in March of 2007 to $839,993,100 in March of 2008.
The report indicates as of April 30, the spending in the city’s general fund is approximately $3 million more than revenues with approximately $12,054,214 in expenses versus only $8,969,625 in revenues. In presenting this portion of the report Petty said, “The trouble that we have with giving any reliance on these numbers right now is that we do not have an expense protocol for the city. So staff can spend basically 90 percent of their budget in the first three months. So since we don’t have that discipline or spending protocol in place it’s difficult to determine whether or not you have a problem.”
Various reasons for the difference were expressed such as big capital projects, the budgets frontloaded with a lot of “contractual stuff,” etc. Branson Mayor Raeanne Presley asked, “So how do you manage that?” Petty responded, “That’s the point Mayor, that’s exactly the point, how do you manage it without a protocol or a discipline in place because your system is only as good as what its tracking capabilities are and right now we don’t have anything to track to.” The discussion regarding Petty’s comments, by the Mayor, City Administrator Kruithof, Janice Moen Larned, Vice President of Finance for District and Petty himself indicated a keen awareness of how important such a protocol is and such a protocol is in the process of being developed on a priority basis.
Reprinted with permission of the Tri-Lakes Tribune, a free newspaper published and distributed three times weekly, Sunday, Wednesday and Friday. Please call 417-336-NEWS (6397) for classified and display advertising opportunities.
