While the City of Georgetown continues to spend the taxpayers money like there is no limit and no tomorrow, sales tax data is showing the Texas economy is slowing down. (Link) "But then came the October collections: they plunged 5.4% year-over year; and now November collections that fell 3.3%. Two months in a row of declines; four months of the last six, and the first declines since the Great Recession low of March 2010."
It should be expected that sales tax revenue for the city will also decline and at the same time, pension contributions are likely to increase due to increases in city staff, in compensation levels, and revised pension accounting rules.
In the meantime, the city budget for FY-16 has increased by 23%. Developers are continuing to build as if there is no slow-down coming in the economy. Sun City has recently started to expand with 2500 additional homes and Wolf Ranch has started building another 2500 homes along highway 29. Exuberance is the word for the day and dismiss and ignore any thoughts or signs of a slowing economy. When the builders realize there are not enough buyers for all the homes anticipated, the revenues paid to the city by the builders and developers will also decline.
The city should be looking for ways now to slow down their spending before it becomes a crisis.
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