Dear Editor,

Sales tax income accounts for about two-thirds of the total income received by the Town of Hennessey.

July 2020 month sales tax for Hennessey was $86,976.01 as shown below. The good news is that monthly sales tax stopped declining in July.

Monthly sales tax income has dropped five straight months since February 2020. The announcement of the Coronavirus business and personal restrictions in March 2020 really hit hard.

The bad news is July 2020 sales tax income of $86,976.01 was 49% below July 2019 sales tax income of $170,653.80.

The question for 2020 and beyond is what is the new normal?

The data provided below is taken from the (Oklahoma Tax Commisson’s) Quarterly Financial Report for period ending March 31, 2020. The data is updated for recent months.

I am presenting this data so the people of Hennessey understand the current financial situation that we currently are facing.

The decline in sales tax income makes it more difficult to maintain existing amenities and pursue new amenities.

The shortfall will have to be made up through Foundation giving and the pursuit of grants.

There is no other alternative.

Other towns experiencing sales tax income declines include Kingfisher (-17.7%), Okarche (-30.8%), Watonga (-22.5%), and El Reno (-39.1%).

Richard Simunek
Hennessey Town Council Member

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Hennessey Sales Tax Collections 2018

July: $200,987.18
August: $193,164.70
September: $138,190.93
October: $167,513.50
November: $149,015.73
December: $177,526.37

Six-Month Average: $171,066.40

Hennessey Sales Tax Collections 2019

July: $170,653.80
August: $107,662.16
September: $103,208.75
October: $123,469.04
November: $101,740.99
December: $126,821.40

Six-Month Average: $122,259 (Oil prices dropped dramatically in 2019.)

Hennessey Sales Tax Collections 2020

January: $127,029.73
February: $122,362.09
March: $107,561.83 (Coronavirus business and personal restrictions announced.)
April: $102,717.13
May: $90,786.48
June: $84,433.46
July: $86,976.01

Seven-Month Average: $103,123.82

March-to-July Average: $94,494.98

(Notes: Hennessey’s FY 2020/2021 projected budget is based on $120,000 monthly sales tax income.
Reserves for the town’s general fund [Non-obligated Funds] are $780,000.)