We have a brand new updated website! Click here to check it out!

City sales tax collections continue to fall below expectations (VIDEO)

hays logoBy BECKY KISER
Hays Post

One of the reasons Hays city officials have explained for not agreeing to a pay increase requested by the International Association of Fire Fighters union, which represents 18 firefighters, is the current “negative sales tax.”

It’s now at 1.18 percent below expectations, and the trend is projected to end the year 2 percent below projections.

Historically, when negative sales tax occurs, “no merit or COLA (cost-of-living adjustment) is given the following year to prevent ongoing expenditures that are unsustainable,” according to Assistant City Manager Paul Briseno.

That last happened in 2011 when Hays sales tax revenues the previous year were below expectations and the entire nation experienced a recession.

Officials are unable to pinpoint an exact reason why this year has held a negative trend, Briseno said:

The local sales tax goes into the General Fund which provides funding for city services, including fire, police, parks, swimming pools and the golf course.  It also provides funding to outside agencies.

 

Copyright Eagle Radio | FCC Public Files | EEO Public File