Alcohol revenues fall short of city’s expectations

The projected revenues from going wet still have not materialized, said Harrodsburg Mayor Eddie Long.

Long gave the City of Harrodsburg Board of Commissioners a rundown on the city’s financial situation at their Monday night meeting.

The city had projected a 10-percent increase in revenues—based largely on money taken in from expanded alcohol sales—but the mayor said the city fell short.

So far, the city has taken in close to $92,596.99 in taxes and fees on expanded alcohol sales.

“We projected $250,000,” Long said.

The revenue projections were based on information compiled from nearby wet cities. They were also based on alcohol sales starting earlier in the year.

“We’ve got one liquor store that hasn’t opened yet,” Long said.

Another issue is a decrease on taxes on alcohol sales at restaurants, which went from 9-percent to 5-percent once expanded alcohol sales began. Businesses that paid license fees to the city can recover those fees when they pay their taxes, which also depresses city revenue, Long said.

The mayor said the alcohol revenue projections would be more accurate for next year, but he said going wet has not so far been the pick-me-up Harrodsburg’s economy has needed.

“It’s not the miracle everybody thought it was,” the mayor said.