By NEAL WAGNER / City Editor

Pelham’s recent 1-percent sales tax increase reached its projected revenue for the city’s education fund during its first month in effect, according to Pelham Finance Director Tom Seale.

At the end of October, the city had collected “right at $400,000” for the education fund, Seale said. The education fund, which is being held in escrow by the city until a Pelham school board is appointed, is funded by the 1-cent sales tax increase, which went into effect on Sept. 1.

The city collects sales taxes from Pelham businesses one month in arrears, meaning the city received its first month of collections for the education fund in October. October’s sales tax collections will be submitted to the city in November.

Before the City Council passed the sales tax increase, Seale projected the increase would generate about $400,000 per month for the fund.

“It hit right where we thought it would,” Seale said.

According to an ordinance passed by the council, the education fund “shall be expended to support public education for the residents of Pelham, and for any other expenses deemed necessary for the support of the public schools located within the city limits of Pelham, as directed and appropriated by the City Council.”

On Sept. 9, the council voted unanimously to form a Pelham board of education and eventually form a Pelham school system separate from the Shelby County School System.

The City Council is scheduled to appoint Pelham school board members during its Nov. 18 meeting.