By NEAL WAGNER / Managing Editor

ALABASTER – The Alabaster City School System has seen a significant increase in its sales tax collections so far this fiscal year compared to the 2013-2014 fiscal year, according to the school system’s chief financial officer.

During a Sept. 14 Alabaster Board of Education meeting, Chief School Financial Officer Linda Agee gave board members an update on the school district’s sales tax collections through the end of July.

One penny of Alabaster’s 9-cent sales tax is earmarked for the city’s school fund, which can only be accessed by the Alabaster City School System. The penny tied to the school fund is never included in any city sales tax incentives packages to businesses.

Through the end of July, the penny sales tax had generated nearly $3.9 million for the school fund since the 2014-2015 fiscal year began in October 2014. The nearly $3.9 million marked a more than 7.3 percent increase in the year-to-date collections recorded at the end of July 2014.

According to school system financial data, February 2015 and July 2015 were particularly strong sales tax collection months compared to their counterparts from 2014.

“I think it’s looking good,” Agee told board members.

The positive sales tax numbers came a little less than a week after the Board of Education approved its 2016 fiscal year budget, which projected a 2.3 percent revenue increase from the current fiscal year. About 40.3 percent of the school system’s projected 2016 revenues will come from local sources, including the penny sales tax.

ACS Superintendent Dr. Wayne Vickers said the budget projects the school system ending the 2015 fiscal year with about $10.5 million in its reserve fund, representing about two-and-a-half months of operating expenses. The Alabama Department of Education requires school districts to have one month worth of operating expenses in reserve.

“To have that type of (sales tax) revenue is wonderful,” Vickers said. “A lot of my colleagues across the state presented deficit budgets this year. I’m proud that we have a budget that doesn’t project a deficit.”

Vickers said having $10.5 million in reserve is particularly important as Alabama’s public school systems may soon face state proration.

“That $10.5 million is significant,” Vickers said. “It’s nice to know we’ve got that kind of reserve if proration is enacted.”