After September
11, many local governments were wondering about sales tax collections.
Many governments,
such as Fairburn, rely heavily on sales tax collections to fund local
services. With people staying at home and glued to news coverage of the
terrorist attacks, government leaders started getting nervous about a
major source of revenue.
During Monday
night's Fairburn City Council meeting, auditor Dan Post told the city's
leaders that things were not as bad as he expected.
Post had estimated
the sales tax collection might be off more than 10 percent because of
Sept.11 and a slowing economy.
But the latest
figures show the tax collection was only off 7.5 percent. With many economists
pointing towards an economic recovery, Post estimates the collections
for the rest of the year will be in the 7.5 percent range.
Still, the
drop in sales tax dollars still will mean a budget shortfall for the city
of more than $100,000 this year.
"Where
are we going to get that money?" questioned Councilman Harvey Melear.
Post said this
year's figures showed the Council had an $800,000 surplus. If the city
does half as well this year, the $100,000 shortfall could be taken out
of the surplus.
"As long
as we don't have to touch the reserves, I'm happy," Melear said.
Post said the
growth taking place in the city this year with new residential and commercial
projects should help compensate for the loss of sales tax dollars.







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