City of Montgomery feels financially secure despite pandemic effects, official says

Although the city of Montgomery may see a 30% reduction in sales tax revenue for the remainder of the fiscal year, officials said the city will be in a better position than other locations.

City Administrator Richard Tramm spoke briefly about the effect of the pandemic on the city’s sales tax collection. In May, the city collected $315,099.96 in sales tax revenue from sales that occurred in March, a 12% decrease from February’s quarterly filings but an 11% increase from May 2019.

“That is much less of a reduction than I was expecting from the quarter before, and I was not expecting an actual rise one year year to date,” Tramm said.

Although he said he did not think Montgomery would be hit by the outbreak as hard as other places, Tramm said the April reports will show a much larger drop in revenue for restaurants and retail space.

Overall, Tramm said the city should see a 30% reduction in sales tax revenue and he will present a revised budget May 26. City departments have already begun finding ways to reduce spending, and Montgomery residents should not expect to see reduced services due to the pandemic, according to Tramm.

The Hills and a new council member

• The city also approved several variances and requests from the development Hills of Town Creek. The development has 130 homes with lots of 6,000 square feet for about $220,000.
• The virtual meeting was the first attended by new Council Member Kevin Lacy. Lacy was appointed April 29 to the seat left vacant by John Bickford’s retirement.
• Tramm said City Hall would reopen May 18 for visitors with hand sanitizer and limited capacity.