City Sales Tax Collections Remain Low

TYLER — Information from the Texas Comptroller indicates that City of Tyler sales tax revenues deposited for the month of July have decreased 7.01 percent as compared to the same period in 2009. Year-to-date revenues have declined 8.76 percent, an improvement from last month’s 8.93 percent. The reported revenue of $ 2,533,713.39 comprises $1,689,142.26 in general sales tax revenue and $844,571.13 in half-cent sales tax revenue. The figures represent receipts from May 2010 collections, as there is a two-month period before revenue is reported.

“The City had budgeted for no growth in sales tax revenue for this fiscal year,” said City Manager Mark McDaniel. “As soon as the monthly returns began indicating that sales tax revenue was declining, the City took aggressive steps to curtail spending. This is paying off as we are closing the gap on the budget shortfall. We have approximately 47 positions frozen in the general fund alone and continue to delay projects, assess contracts, and limit spending where possible.” The City began its budgeting for the 2010-2011 fiscal year months earlier than normal in anticipation of another tight budget year.

“We anticipate having at least one more really tight budget year,” added McDaniel. “As the economy recovers, municipal revenues generally lag behind. We anticipate that property tax receipts will remain flat, or possibly dip slightly in the coming year based upon recent valuations. However, Tyler is fortunate that we have no general obligation debt so all tax revenue can go directly toward current operations. Combined with being very streamlined and fiscally disciplined, we are weathering the storm better than most.”