A conservative estimate has turned out to be the prudent option taken by Roanoke City Director of Finance, Ann Shawver. In April Shawver anticipated a future decline in the meals tax because “that is one of the taxes that is contracting.”
Overall August 2010 meals tax revenue fell 1% compared to August 2009.
With July revenue flat it brings the meals tax .5% less then this time a year ago.
The likely culprit in the downturn is continued high unemployment and a stalled economy according to Shawver. The good news is that the $4.4 million goal for additional funding to Roanoke City Schools is still above target.
July was 4.3% above Shawver’s conservative estimate. August came in at 2% above the estimate. So far the trend is $22,659 above water with a total for the two months coming in at $742,582 towards the $4.4 million goal.
Shawver made it clear that “while the meals tax is performing better than estimated, it is performing worse than the prior year.”
Roanoke City Market Building: Vendors who return to the renovated Market building are receiving a boost in their incentive. The non-food vendors will be offered $15,000 for build out cost – an increase of $5000. The food vendors will get a hefty increase to $35,000 from $20,000. Vendor lease rates have yet to be determined by the nonprofit Market Foundation.
The Roanoke City council meeting was moved to Thursday. Council members were attending the Virginia Municipal League conference in Hampton through October 5.
By Valerie Garner [email protected]