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Conroe city officials are keeping a wary eye on the economy amid fears of a tax revenue drop in the upcoming fiscal year.
The fear, based on damage from the COVID-19 economic shutdown and the collapse of the oil market, has preliminary estimates projecting a loss of up to $1.5 million, Community Impact Newspaper reported. The good news for Conroe is it does not appear the city’s budget for the fiscal 2019-20 year, which ends in June, will be impacted.
In an effort to project tax revenue, the city has used history as its guide, using three different downturns within the past 20 years.
“When you look at the 2008 (Great Recession) numbers, we had about 11-12 months of double-digit decreases in sales tax, and it took about three years — about 24-36 months— to recover in sales tax,” Assistant Director of Finance Collin Boothe told the newspaper.
The city will continue to monitor conditions and hopes to have a better idea of the big picture in a couple of months.
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