Katy July sales tax revenue down 8% year over year, but fiscal year so far up 2%

Since April, monthly sales tax collections have been down year over year, with the largest decrease being in June payments with a 16.8% decline.

However, for the 2019-20 fiscal year so far, the city of Katy’s sales revenue is up by about 2%, or $154,000, year over year, Katy Finance Director Andrew Vasquez said. The comptroller’s site—which reports the city has experienced a 2.3% year-to-date decline—shows year-to-date data for the calendar year, not fiscal year, he added.

“I’m pleased with it, but not completely satisfied,” he said.

The 2019-20 city budget had projected an 8% year-over-year increase in sales tax revenue, he said. Vasquez added before March, sales tax revenue in the city was trending to meet that goal, but then the coronavirus pandemic struck.

To make up for a budget shortfall, the city of Katy has paused a few projects worth about $1 million, Vasquez said.

In particular, Katy Mills has seen large declines in sales tax collections, Vasquez said. The mall’s June sales tax data—reflecting April sales—declined about 69% compared to June 2019, while May data—reflecting March sales—decreased about 44% compared to May 2019.

“We’ve been cheering them on, but they’ve been hit hard,” Vasquez said of Katy Mills. “I’m hoping this is all short term and we get back to normal soon.”