Continuing to follow the downward turn in the economy, Morgan
Hill’s sales and property tax revenues are down compared to the
same period last year.
Continuing to follow the downward turn in the economy, Morgan Hill’s sales and property tax revenues are down compared to the same period last year.
Sales tax revenues are down more than 9 percent from July 2008 through March 2009, according to a report presented to the Morgan Hill City Council last week.
By the end of March, the city had collected $4.4 million in sales tax revenues. By the end of March 2008, the city had brought in $4.8 million.
Interim Finance Director Kevin Riper said City Manager Ed Tewes will present updated revenue projections taking into account these new trends, and also the closure of Courtesy Chevrolet April 17.
Based on city figures related to The Ford Store of Morgan Hill, a car dealership could bring in about $400,000 a year to city coffers. The city does not provide how much sales tax revenue is brought in my individual businesses since sales figures are proprietary information.
Before Courtesy’s closure, city officials had said they expected a revenue shortfall of between $1.1 and $1.5 million.
Property related tax revenues are also down, nearly 7 percent compared to the same period last year.
The city has collected $4 million in property related tax revenues from July through March. For the same period last year, the city collected $4.3 million from these sources.
Although 75 percent of the year is over, the city has collected just 60 percent of the general fund revenue expected for this year.
The sky is not falling, however, Riper said.
“Property tax is due in December and April, so there’s a big slug of money not reflected in this report,” Riper said. The city will have a much better idea of its financial outlook for the rest of the fiscal year, which ends June 30, and the next year once April’s numbers are in, he said.
Tewes will present the 2009-10 city budget to the council during a May 20 meeting.
