City manager concerned about drop in sales tax revenue

Raymondville city manager Eleazar "Yogi" Garcia gave a sobering report on declining sales tax revenue at last week's city meeting.

During the first four months of fiscal 2010 (Oct. - Jan) city retail sales tax revenue is off by a combined 9.6 percent. That figure represents a decline of $39,540 from the amount collected during the first third of 2009.

Expected sales tax revenue for the current year planned in the city budget is $1.265 million and if retail sales in the city continue at just under 10 percent below last year, the city will have a combined $121,440 budget short fall for the year.

The sales decline is also bad news for city retailers who have enjoyed sales gains every year since 2005. Stores use retail volume to determine how many employees they can afford to have, how much merchandise they can buy for resale and a host of other expenses.

To Garcia the slumping sales caused by a poor economy is a yellow caution light and not a reason for panic.

"Who knows what may happen? It may be that sales will recover and match or exceed those of previous years. I'm bringing this to the commiss-ioners as a matter that should be considered. There is a possiblity that we may have $121,440 less money to spend than was budgeted."

Garcia said that commis-sioners should keep close eye on the budget and no extra spending should be considered. In fact, the city manager is looking for areas in which spending can be reduced.

When one of the commissioners mentioned paving Garcia repliedthat city crews will be limited to filling pot holes with calichi and that's it, there will be no money for street paving unless something turns up in the Obama federal stimulous budget.