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Wilson County News • 1012 C St • Floresville • TX • 78114 • Ph: 830-216-4519 • Fax: 830-393-3219 • Email:
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Jim Miller  
Floresville, TX  
August 20, 2011 10:24am
 
City Manager:

The Mayor on Thursday reminded all of us in attendance of the special City Council Meeting that the voters had approved a 1/4% Sales Tax for Street Maintenance.

Section 327.004, Tax Code, allows cities to raise their local sales tax rate by one-eighth of one percent or one-fourth of one percent if the funds are dedicated to street maintenance and repair. The sales tax may be used only to maintain and repair municipal streets that existed on the date of the election to adopt the tax.

In your budget this additional sales tax is not separated out as revenue, rather it is included in all sales tax as revenue in the General Fund.

For FY 2010/2011 you projected to spend $196,500 in Street Maintenance as a result of this additional sales tax. However, YTD only $ 91,894 has been spent on Street maintenance.

You stated on Thursday that the sales tax projection for FY 2010/2011 would be met if not exceeded so I must assume that this $196,500 in Street Sales Tax will be received.

Where is the additional $104,606? It appears to have been used to fund your budget overages so that your budget would be in balance. I could not find a reserve fund for Street Maintenance.
     
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