Officials: City Sales Tax Collections Remain Positive
Posted/updated on: March 11, 2011 at 12:25 pm
TYLER —Tyler’s sales tax revenues deposited for the month of March have increased 1.38% as compared to March 2010, resulting in a 3.43% cumulative year-to-date increase. The figures come from the Texas Comptroller. Officials say the current month increase was 2.60%; however, an out-of-period audit adjustment resulted in the 1.38% increase. The reported revenue of $2,525,125.45 comprises $1,683,416.97 general sales tax revenue and $841,708.48 half-cent sales tax revenue. The figures represent receipts from January 2011 collections as there is a two-month lag before taxes are reported and remitted back to the City from the State.
“During this same month in 2010, we saw a 4.19% decrease and were running 9.49% percent down for the year,” said City Manager Mark McDaniel. “To say we are pleased with the recovery this year would be an understatement.” The city budgeted for a two percent increase in sales tax revenue for 2010-2011, so remains in a good financial position at the midpoint in the fiscal year. “We are watching gas prices closely as well as the State budget process,” added McDaniel. “For the first half of the fiscal year, the City was under budget on our gas expenditures. However, as gas prices have risen, we are edging closer to the budget threshold. Should prices continue to rise, we will be implementing additional conservation activities and possibly looking to biodiesel to control our costs.”
One of the other budget concerns is potential ramifications from budget cuts at the State level. The city received more than $1.1 million in state funding this fiscal year, of which $722,000 came from Federal grants passed through the state. Officials say state funding only represents 1.2% of the city’s operating budget. They add that although the cessation of the grants would not result in staffing decreases, there is concern that the state could choose to require cities to continue the programs without providing the funding, thereby creating an unfunded mandate. “We have worked diligently to balance our budget and make the cuts needed to stay within our means through these tough economic times. Mandates to continue state programs with local resources could be devastating to city budgets,” added McDaniel.
In 2010, the city of Tyler froze more than 125 positions mid-year, delayed capital expenditures, renegotiated contracts, launched a Lean Sigma efficiency program, limited salary adjustments and took many other actions to ensure the city ended the year in a positive financial position. “Because we have no general obligation debt and pay cash for most capital improvement projects, we are able to respond to changing financial conditions,” said McDaniel. “Thanks to our Blueprint, Called to SERVE and Lean Sigma programs, Tyler has maintained its culture of continuous improvement for greater efficiencies.”
