By Kirk Ross
Staff Writer
The annual town budget rolls out next week, and look for at least one disappointing number — a drop in sales tax revenue from the 1 percent local-option sales tax.
Carrboro Town Manager Steve Stewart said he’s putting the final touches on a new budget he plans to put before the Board of Aldermen for review next Tuesday.
Stewart said the sales tax revenue was a disappointment because revenue from the local-option tax, which comes from sales taxes generated in Orange County, was down, while revenue from a half-cent statewide tax was up.
As a result, he said, revenue will be flat.
Stewart said while Internet sales and sales tax refunds may be part of what’s behind the drop, it’s a reasonable assumption to make that more people are shopping outside of the county.
Ken Chavious, Orange County’s finance director, said he’s also noticed the drop. The county, he said, did not budget for an increase in the revenues so it’s not likely to have a big impact on the budget. He agreed that more people shopping outside the county is likely a big part of the reason for the drop.
“That’s a definite possibility,†he said, “with all the shopping centers opening up around us — with Southpointe and other commercial developments.â€
Since revenue is going to be flat, Stewart said, the budget will concentrate on moving forward on the town’s capital improvement plan and keeping up the level of service.
“There won’t be any new big initiatives,†Steward said.