The city manager’s budget introduction includes a 4.38% increase in sales tax revenue for the city next year.
Growth slow down
According to our local Federal Reserve Bank El Paso’s growth last year was 2.1%.
Also according to our local Federal Reserve Bank “Economic activity in the El Paso metropolitan area has slowed in recent months.” “So far this year the El Paso index has averaged 0.9 percent annualized growth”.
Who to believe
Given a choice between the city’s number and the Fed. I would listen to the Fed. The numbers coming out of city hall recently have been notoriously wrong.
If the city is wrong then we should see lower than predicted Hotel Occupancy Tax collections (raising our cost to finance the ballpark) as well as sales tax revenue shortfalls. That will probably lead to a double whammy and operating budget cuts during the year.
Last year the city had to institute spending restrictions mid-year because city staff planned to get 3 million dollars in extra property tax revenue from the refinery.
This is such a shame when prudent management could avoid the shortfall by reducing spending.
We deserve better
Brutus
elpasospeak 
Our “local” Fed board? Seriously?! They wouldn’t know what economic data is if it hit them upside the head. The big “Fed” is just as stupid too. QE my butt.
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What don’t you crazy people get? We have a new mall opening. It’s going to have really fabulous shops. There is also a terrific new ballpark opening soon (I hope). People will travel from miles away, even across international borders, to shop at the Fountains and attend minor league baseball games. At the games, they will pay taxes on t-shirts and caps; just not the important stuff like beer and hot dogs. The mall and the ballpark will create more minimum wage jobs, which will also generate more spending, which will generate more sales tax revenue.
Life will be good. Our way of life will be secure. What’s not to love?
I reviewed sales tax revenue forecast numbers with my team in city hall because they needed help figuring out how to offset the big hit we took in property tax revenue. The new forecast looks fine. Trust me. We’ve pushed the hotel owners about as far as we can, but if we come up short on tax revenue this year, we can institute a new luxury sales tax on groceries or something else ….. just not on gasoline or places that sell gasoline.
Relax. Leave it to us.
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Sequestration.
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OK, I bite. Do go on.
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