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Sales up
Comments 0 | Recommend 0Area leaders warn that numbers will tail off
Odessa is getting its third-largest sales tax check ever with $2,447,066.93 coming on the November check, which is based on September sales.
The check is 15.2 percent more than the $2,124,235.15 check from November 2007.
Only the February ($2,593,630.85) and August ($2,527,614.61) checks of this year were higher than this month's check.
The numbers mirror what's happened through West Texas as virtually every city saw an increase in sales taxes.
Things could change soon, however. Despite the latest increases, some area leaders said they expect a future drop in sales.
"I think we're definitely at the peak," Andrews City Manager Glen Hackler said.
Hackler and Odessa Chamber of Commerce president Mike George said both cities could see sales tax receipts drop because of the falling price of oil.
"If the oil were to continue in its downward spiral, Odessa would be affected," George said. "We will not be affected nearly as much as in the early 1980s due to the fact that we have been successful in diversifying our economy."
George said the Permian Basin has other sectors throughout the economy such as hospitals, distribution centers and educational institutions "which have all flourished in the past 20 years."
The city will receive $1,957,653 on November's check, and the Odessa Development Corp. will get $489,413.39.
The Ector County Hospital District will receive $2,214,543.58, up 22.7 percent from $1,804,229.92 last year.
"Any community that is totally dependent on the oil industry will be affected more than a community that is more diversified," George said.
Fort Stockton officials hope to diversify the economy more with plans to bring in a $360 million, 350-megawatt wind farm owned by Renewable Energy systems and a $240 million, 200-megawatt expansion of BP Alternative Energy's Sherbino Wind Farm.
"We do anticipate a drop as drilling decreases, but we are hoping to offset that," Fort Stockton economic development director Doug May said.
On November's check, Fort Stockton saw a 32.9 percent increase in sales tax over last year.
"We're really pleased," May said. "Hopefully we'll maintain it."
By the numbers
Here is a look at November sales tax checks for area cities and how they compare to 2007:
>> Alpine: $99,464.52, up 4 percent.
>> Andrews: $418,835.21, up 37.7 percent.
>> Big Lake: $91,053.35, up 5.2 percent.
>> Big Spring: $599,976.27, up 14.3 percent.
>> Crane: $65,432.53, up 36.6 percent.
>> Fort Stockton: $328,104.58, up 32.9 percent.
>> Goldsmith: $21,614.83, up 50.4 percent.
>> Grandfalls: 3,328.51, up 33.2 percent.
>> Kermit: 59,862.67, up 17.9 percent.
>> Lamesa: 131,322.52, up 8.8 percent.
>> Marfa: 24,742.14, up 1.5 percent.
>> McCamey: 63,679.84, up 82.6 percent.
>> Midland: 4,212,240.14, up 26.8 percent.
>> Monahans: 172,877.09, up 23.3 percent.
>> Odessa: $2,447,066.93, up 15.2 percent.
>> Pecos: 160,179.03, up 3.9 percent.
>> Presidio: 27,726.29, up 22.3 percent.
>> Pyote: 1,761.93, up 30.6 percent.
>> Rankin: 9,910.07, up 15.7 percent.
>> Seminole: 114,912.62, up 14.1 percent.
>> Stanton: 36,002.95, up 15.9 percent.
>> Toyah: 833.83, down 58.4 percent.
>> Wickett: 11,175.02, down 18.4 percent.
>> Wink: 17,828.72, up 179.6 percent.
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