DEFCON 2

It seems the City of Keller’s Sales Tax Receipts for May were down double digits compared to last year and that has triggered the second phase of the City’s plan to deal with possible budget problems. The City has already instituted a hiring freeze and if there happens to be another set of bad news it might trigger layoffs at City Hall. While the sales tax numbers look horrible, the property taxes look better than expected and should offset some of the sales tax shortfalls. On the other hand, new development applications have come to a standstill and those fees support a large number of employees in a City that has had robust growth over the last decade.

Meanwhile in the private sector, I’m holding on to my effin’ hat hoping for a bottom in the commercial real estate market so we can see some light at the end of the tunnel. Sales numbers are down over 50% from this time last year and we’ve laid off a similar percentage of employees. As the old adage goes, you live by the boom……

On a positive note, our fair city has been named the 7th best small city in the nation to be a resident of in the great U.S. of A by Money Magazine.

 

 

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5 responses to “DEFCON 2

  • Big Bob

    Doug-

    Where are we (city of Keller) seeing double digit sales tax declines? Or are you refering to the entire area? Thru June 2009 (that’s October 2008 – June 2009) the city of Keller sales tax revenues are off about -5%, no doubt a decline but I think the city was planning (budgeting) on a +3% increase for fiscal 08/09 and in essence it is coming in at around -5% thru the 1st 9 months of the fisca year….

    Then again, I could have some bad info.

    Where is Jim Carson when we need the numbers??

  • Doug

    We were told last night that the latest months receipts were down 13%

  • Jim Carson

    I hardly have access to meaningful information any more, but 13% sounds very much in line with Texas in general. San Antonio Business Journal reports June receipts were down 12-15%.

    It’s not going to get better any time soon, and I expect it to get much worse. I expect sales tax revenue to fall 30-40% off last year’s peaks, because entrepreneurship is dead in this country, courtesy of an idiot who is given way too much benefit of the doubt by a fawning media and a nation of militant freeloaders.

    On the plus side, maybe this horrible swoon in sales taxes will finally put to bed any notions that the so-called Fair Tax could ever work.

  • Jim Carson

    Barack Obama believes he is leading us through a painful transition into Paradise, and he believes this with the same fervor as Mohammed Atta did.

  • Big Bob

    Doug-

    I woner if we put the library in TC if we could have gotten a higher rating than #7?

    :>)

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