Posted 11:33 pm Friday, March 12, 2010
Sales Tax Revenue Decline Slowing
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Cqed cmk
START-BYLINE-1By CASEY MURPHYEND-BYLINE-1
Cqed cmk
START-BYLINE-1By CASEY MURPHYEND-BYLINE-1
By CASEY MURPHY
Staff Writer
Although city of Tyler sales tax revenues for January were reportedly still down from the same time last year by more than 4 percent, city officials are encouraged that the decline they've seen for nearly a year is beginning to "level off."
Staff Writer
Although city of Tyler sales tax revenues for January were reportedly still down from the same time last year by more than 4 percent, city officials are encouraged that the decline they've seen for nearly a year is beginning to "level off."
Information from the Texas Comptroller shows Tyler sales tax revenues for January, which were deposited this month, have decreased 4.19 percent when compared to the same period in 2009. That means $108,790 less funding than in January 2009, city officials reported Thursday in a prepared statement. Year-to-date revenues have declined 9.49 percent with a total revenue decrease of $1,768,184.
"The statewide monthly average decrease was 6.8 percent," Tyler City Manager Mark McDaniel said. "Tyler is rebounding better than many other communities around the state and country due, in part, to our diverse economic base."
The reported revenue of
$2,490,399
is comprised of
$2,490,399
is comprised of
$1,660,266 in general
sales tax revenue and $
830,133 in
sales tax revenue and $
830,133 in
half cent sales tax revenue. The figures represent receipts from January collections because there is a two-month period before revenue is reported.
"Although the decline in sales tax revenue is significant, it is beginning to level off," McDaniel said. "In November and December, our shortfalls were nearly $300,000 each month. I am pleased to see this upward trend."
He said the city will continue to closely monitor the tax revenue receipts.
In February, McDaniel reported to the city council that the city was expecting a $2 million shortfall in the city's budget this year because sales tax revenues are down. During the 2009-10 budget process, the city budgeted for flat sales tax revenue. But in the first several months of the fiscal year, the revenues declined further than anticipated, McDaniel said.
"We are definitely seeing the decline level off," he said. "However, it will take a very rapid recovery to offset losses we have experienced in the first four months of the fiscal year. To compensate, we have taken several steps to ensure the city ends the year under budget."
Those steps include implementing a hiring freeze on all vacant employee positions, restricting external employee training, starting the budget process four months early, scrutinizing existing service contracts for potential savings, cutting some potential services and seeking opportunities for outsourcing additional city services on a competitive basis.
Texas Comptroller Susan Combs told The Associated Press that before this week's report, there have been eight straight months of double-digit declines in the state, but it looks as though sales tax losses have begun to moderate. She said sales tax revenue continues to be down in major sectors such as retail, oil and gas production and construction. Ms. Combs said there may be more declines in the coming months before a return to sales tax revenue growth later this year.
