Sales Tax revenue has increased steadily from $35.4 million in FY 2022-23 to a projected $38.7 million in FY 2026-27, representing a total growth of approximately $3.3 million, or an average annual growth of 2.3 percent, over the five-year period shown in the chart. As the City’s largest General Fund revenue source, Sales Tax is a major indicator of local economic activity and is influenced by consumer spending, autos and transportation, restaurants, hotels, general consumer goods, building materials, and pooled regional allocations. Growth is supported by a diverse tax base, with the autos and transportation sector representing approximately 27 percent of total sales tax receipts, making it the City’s largest contributor. Within this sector, new motor vehicle dealers experienced a 9.5 percent increase, serving as a key driver of recent growth. Other sectors, including restaurants, building materials, and general consumer goods, also contributed to overall performance, while categories such as fuel and grocery stores experienced declines, reflecting broader economic conditions and shifting consumer behavior. Looking forward, the City anticipates continued moderate annual growth in the range of 2 to 4 percent, supported by steady consumer activity, regional retail strength, ongoing commercial development, and long-term normalization of economically sensitive revenue sectors.
23|Page
Made with FlippingBook - professional solution for displaying marketing and sales documents online