Not only were they strong, but they reflected considerable growth over the same time period in 2006.
“Our continued growth, both in terms of population and economic development, has allowed us to avoid most of the challenges many of the other parts of the country are experiencing,” David Blackburn, Temple city manager, said. “The diversity in our local economy has really allowed Temple and Bell County to continue on a very sustainable pathway in terms of growth and development.”
Through October, Temple sales taxes returned to the city were up more than 6 percent over the same period the year before. The numbers were stronger in Belton and Killeen.
Merchants collect a 6.25 percent tax on sales of most items for state use, but they also collect a 1.5 percent tax for the city and another .5 of a percent for the county.
Those funds are returned, but after a couple of months’ delay. So when the comptroller sends Temple a check in October, it’s for taxes most likely collected in August.
While the increase does reflect some population growth, it also reflects stability in consumer confidence, Mayor Bill Jones said.
Ken Higdon, president of the Temple Chamber of Commerce, agreed, suggesting that the opening of Bird Creek Crossing in summer and fall of 2007 also helped out somewhat.
This outdoor mall includes the city’s first Target, Home Depot, Michael’s, Petsmart and Best Buy. When developers announced the project, they predicted the stores would generate $80 million in retail sales annually and employ up to 800 people. By year’s end, all the stores were open.
Higdon and Jones said the addition of those retailers to the shopping inventory in Temple probably serves to stop what they called “leakage.” Leakage occurs when shoppers can’t find what they want in Temple and drive to Waco or Austin to make those purchases.
As an economic indicator, performance in sales tax returns is important. But, those returned dollars also help the city meet its obligations.
Jones said the city, which starts its fiscal year in October, budgets conservatively when considering sales tax revenue. Four percent growth or less is the usual number, Blackburn said.
The money “can help cover unanticipated expenses that weren’t budgeted for, for example, fuel cost increases that weren’t budgeted for adequately, and/or it can roll forward into our unallocated fund balance.”
In recent years, conservativism in budgeting has led to more revenue than expected and lower expenses than anticipated, he said.
“We have also used excess fund balances to help fund capital expense items that couldn’t initially be funded in the operating budget and that we didn’t want to issue debt to fund,” he said.
Jones, Higdon and Blackburn all say they expect stable and constant growth in the retail sector to continue into 2008 and beyond.
“I don’t see any major negatives out there to hurt us,” Higdon said.
cwilson@temple-telegram.com
