The City of New Braunfels has announced an overall increase of approximately $80,000, or 2.9%, in sales taxes received in July (for the month of May) compared to the same month last year.
In 2019, the May payment included a positive audit adjustment of approximately $100,000. When the audit adjustment is removed, the May collections increase by 7.2%.
"With the release of the May figures, we are able to report that gross sales tax collections for the first eight months of fiscal year 2020 have increased by 5.0%. Needless to say, the May figures were a pleasant surprise. Given that we don’t have the comprehensive data for the May activity, unfortunately we cannot pinpoint which sectors of our economy led to the net increase over last fiscal year. However, we can presume that this is driven, in part, by the partial reopening of businesses toward the end of the month as well as the reinvestment of stimulus dollars into the local economy,” said Jared Werner, Chief Financial Officer. “Projecting sales tax revenues, which is the largest single source of revenue for the City’s General Fund, remains incredibly speculative during the pandemic, therefore we must continue to be as conservative as possible as we work through the development of the FY 2021 Proposed Budget and Plan of Municipal Services."