City of Franklin Receives Sales Tax
The City of Franklin has received notification of its share of sales tax revenue for December 2007 and it shows a slight decrease from the previous year.
The City received $2.73 million, down from last year’s $2.8 million received for the same time period. This represents a drop of 2.7%.
In preparing the current budget, City staff projected an increase of 7% for sales tax revenue. For the first six months of the fiscal year, actual sales tax revenue is $1.2 million less than budgeted.
Interim City Administrator Russ Truell stated, “In preparing our 2008 budget, we were conservative by basing it on only a 7% increase when our models suggested a 9% increase.” He continued, “Our department directors have been fiscally responsible throughout this budget year. At the end of December, expenses were only at 38% of our budget where typically we are at approximately 48%. I have asked them to continue to monitor closely their spending for the remainder of the fiscal year.”
Although cities in this area and around the country have been experiencing tax revenue decreases for months, this is Franklin’s first fiscal year decrease in over ten years. Even after the September 11th attacks in 2001, Franklin’s revenue stayed steady or increased.
As City officials begin preparing for the 2008-2009 budget, they see this as an opportunity to possibly reassess and reprioritize where they need to spend the City’s resources.