City Clerk Judy Welch shared recent Iowa Department of Revenue revised sales figures with Mayor Chris Bearden and council members which show a projected $20,470 will be lost in Tama local option sales tax revenue over the original estimate totaling $175,059 for fiscal 2011.
Those amounts will be firmed up when final figures from the state become available on Aug. 1, Welch told The News-Herald.
The local option sales tax is important to Tama because it provides the primary funding for payment of the city’s share of Tama-Toledo Aquatic Center construction bonds and for the pool operations.
The bonds cost the city $115,243 annually and the pool operations share is $54,000 annually.
As seen in the accompanying chart, Tama retail sales are back to the level of 2005.
The source or sources of the three-year spike in sales from 2006-08 has never been explained.
Local bankers, business people and city leaders have all publically said they do not know what would have caused the sales to skyrocket in Tama over the three-year period.
The Department of Revenue will not release a detailed breakdown of sales in smaller cities as it provides for metropolitan areas.
This policy protects privately-owned businesses whose sales figures are not public information from having their sales unfairly revealed.