The City of San Angelo Development Corporation is funded by the half cent sales tax, which had been in decline for five of the last six months. The first month of the new fiscal year found sales tax collections down over 14%. COSADC expected sales tax revenues nearly $50,000 higher than occurred.
The oilfield bust came home in November when National Oilwell Varco announced it would leave San Angelo eliminating 120 jobs. The price for a barrel of oil hits the lowest mark since February 2009. Oil drilling rig counts continue dropping.
City Council recently asked COSADC Executive Director Roland Pena to explain the addition of a new staff member. What will happen if sales tax revenues continue to fall far short of budget?
Update 12-12-15: November sales tax proceeds for COSADC came in (8.02)% below last year. The estimated sales tax budget is short $137,077 and the budget called for a slight decline. Sales tax collections are roughly $175,000 below a year ago.
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