Fredericksburg Meals Tax Remains Hot

Fredericksburg City Manager Beverly Cameron said recently that the city is expecting a decent surplus for the past fiscal year thanks to strong gains from the meals tax and a stable revenue source from the sales tax.

Fiscal year 2012 ended on June 30 and Cameron said the city is still getting invoices and revenues for all financial activity that took place in the past fiscal year.

"The City will be making accrual entries on FY 2012 revenues and expenditures through August 15, and it is too soon yet to provide a comprehensive update on FY 2012 activities," he wrote in a staff report. "Staff notes some very positive financial trends for the City for FY 2012 and based on current trends, the City will end the year with a positive balance."

The city's meals tax receipts grew 8.7 percent in fiscal year 2011 and another 6 percent this past fiscal year. Cameron estimates the total revenue will be $9.37 million and should provide a significant source of surplus that he said City Council can use for current or future capital projects.

The sales tax collections have stabilized after several years of decline from 2008 to 2010. The final month of sales tax receipts for this past fiscal year will come in August, but with 11 months collected the revenue grew 1.5 percent. He estimates $10.2 million from the sales tax.

For the General Fund, Cameron said the city still needs to pay June invoices, but there is a strong balance of $458,350 remaining in the contingency account and the overall expenditures should be less than the General Fund spending limit.

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