Georgetown Needs to be Frugal With Spending

Even though the central Texas economy is booming and has largely escaped the effects of lower oil prices, there are disturbing signs that the growth will not continue at the current rate.

The Federal Reserve Bank of Dallas has released their latest economic indicators for Texas.

Overall all employment growth for Texas is projected to be 2.4%, which is still a healthy rate. The Austin area employment, which includes Georgetown, grew at a 3.5% annual rate in the first quarter of 2017.

The Texas real median home-sales price was $220,244 in February—10.3 percent above year-ago levels. Austin, Dallas and Houston have median sales prices above the Texas figure, while Fort Worth and San Antonio have prices below the state median.

Georgetown's home prices have also been increasing at a high rate. Past experience has shown these rates of home appreciation are unsustainable. Can anyone say "housing bubble"?

The Dallas Fed’s Texas Manufacturing Outlook Survey indicated continued growth in April. The production index, a key measure of state manufacturing conditions, dipped but remained positive at 15.4 in April.

City Council needs to prepare for the inevitable slow-down in sales and property tax revenues by trimming the growth in spending. No one knows when the slow-down will occur, but, it is certain that it will occur.