Clarification on city sales tax

Clarification is needed on the sales tax article written by Amy Wobbema, “City sales tax revenue reaches record high”, which was published in the Feb. 14 edition.

Carrington City Auditor Jennifer Gast told the Independent that no sales tax revenue is deposited into the general fund. Rather, 1% goes into Fund 218 to offset special assessments/debt service for the 2014 street project and the water main replacement project. The other 1% is split between the economic development fund (75%) and the infrastructure fund (25%), as reported.

Economic Development Director Karlee Griffin reported that $46,408.90 of the 2021 sales tax the EDC received was used to buy down the interest on FlexPACE loans for several businesses. In addition, $106,500 was given out in grants for approved business improvements, housing incentives, daycare and community connection projects. Another $150,000 went towards the city’s looped water system project.