City sees sales tax increase

First time in two years for hike; Gavinski remains cautious

MOSES LAKE — The city of Moses Lake and its embattled coffers received some good news in the past two weeks.

The sales tax distribution the city received in November, which was for September sales, was the highest sales tax payment the city ever received for any month.

City manager Joe Gavinski said the city and the city council have to put this news into perpective.

"It does not mean anything in terms of a trend," he said. "Unless you see that continue on for several additional months."

The city earned about $234,0000 in tax revenues that month, $45,000 more in September 2003.

With no established trend yet, all this increased monthly revenue means the city is receiving more money than what it had received the year before for the same period.

The city receives sales tax revenue every month and compares that month's money to the same month the year before.

Caution nonetheless, Gavinski said it was "joyous" to report the news to council.

Since the record-setting month was September, one cannot point to the opening of Home Depot as responsible for the jump, as the retailer opened in October.

The city hears this news in the midst of what Gavinski hopes is a sign of economic recovery after years of stagnation. The city finished the year with a three-percent increase in sales tax, its first increase in years.

In 2001, the city received $3.5 million in sales tax; $3.3 in both 2002 and 2003, and $3.4 in 2004.

Increased sales tax revenues are the result of increased sales, which indicates increased economic activity in the city.

"We lost ground in 2002, stayed in 2003 and made up some in 2004," Gavinski said, adding that the city was still not at the same level it was in 2001. These have been good months, he pointed out, but the tide has not turned yet.

" We are still a bit behind," he said.