GOOD ECONOMIC NEWS IS CERTAINLY REFRESHING

In a time when national revenue forecasts are frustrating, local sales tax receipts have been a breath of fresh air. It's the kind of statistics we relish. The city will close out the 1993 fiscal year today with sales tax receipts well above budget projections. This growth will allow the city to help offset diminished revenues the last two years.

Receipts are expected to finish the year just above the 7 percent level. Sales tax growth the two years previous was unremarkable - 1.44 percent in the fiscal year ending in 1991, and 2.4 percent in the year ending in 1992. That compares with 5.62 percent growth in the fiscal year ending in 1990.

With these recent downturns in mind, it's no wonder the city cautiously predicted only 2 percent growth in sales tax revenues this year. The difference translates into nearly $250,000 in unexpected revenue. These occasions are few and far between these days. Typically cities are scrambling to deal with lost or reduced governmental allocations.

It's understandable why city officials keep such close tabs on sales tax receipts. They are the primary revenue source for the city's general fund. Total sales tax revenues through May were $4.8 million, which represents more than half the general fund revenue. The general fund pays for such "general operations" as police, fire, public works and fire maintenance. These are all services not supported by user fees.

The city hopes a few good years of sales tax growth will help to build general fund balances. The city must follow the same common sense practices most of us do at the household level. In other words: Save for that rainy day when income fails to meet expenditures.

The city ended the last fiscal year with $941,000 remaining in the fund. Comptroller John Richbourg would like to see that figure someday grow to $1.8 million, which would cover two months of operating budget.

These balances are especially important when it comes to sales tax because this income is so volatile. Spending is affected by consumer confidence as well as national and state events out of the control of local officials. It's no wonder forecasts were cautious.

But much of the new money may be already earmarked as the city plays catchup. Funding shortfalls of the last two years delayed several capital equipment replacements. City money also has been budgeted for the proposed recreation activity center. Still, Richbourg feels there will be some progress made on the fund reserve this year.

This sales tax upturn reflects positively on the local business scene. This growth, combined with the future additions of Sam's Wholesale Club and Lowes hardware, helps offset such disappointments as Central Hardware's closing. It's certainly refreshing to receive some good economic news.