By Marcial Guajardo
Managing Editor

It was a green Christmas in Pflugerville after all.
Texas Comptroller Susan Combs earlier this month announced monthly sales tax figures for cities, counties and other government agencies from receipts in December.

With many cities and counties reporting declines in sales tax revenue, Combs’ report came with a somber mood. She noted the state collected $1.66 billion in sales tax revenue in January, down 14.2 percent from the same month a year earlier.

“Collections continue to be down in major industry sectors like retail trade, oil and natural gas production, construction and manufacturing,” Combs said in a written statement.

January sales tax collections represent sales made in December.

However, in Pflugerville, Mayor Jeff Coleman and others were breathing a sigh of relief at the numbers that came in. The city took in $504,768 in sales tax revenue in December, up 4.04 percent from the $485,125 taken in the same month a year earlier.

“We are excited by Pflugerville’s continued sales tax growth,” Coleman said. “Even though we are in the midst of the worst recession in over 70 years, Pflugerville is doing well.”

Coleman attributed the increase in sales tax revenue to continued growth in the city’s retail sector, as well as the Greater Pflugerville Chamber of Commerce’s “Come Home to Shop” ® shop local campaign.

“Pflugerville citizens are getting the message that the city, and they in return, benefit when they shop in Pflugerville,” added Coleman.

However, city Finance Director Beth Davis noted the rate of growth for the city has slowed in the past year. A look at area cities such as Leander, Cedar Park and Round Rock shows the same decline, Davis said.

“I believe that is greatly related to the economy,” Davis said.

Round Rock, which is buoyed by sales tax revenue Dell brings in, was among the cities seeing a decline during the Christmas shopping season. Round Rock took in $6.1 million in sales tax in December, which was down 3.3 percent over the $6.3 million the same month a year earlier.

Annually listed among the top 20 cities statewide in sales tax revenue, Round Rock was one of 15 cities in the top 20 reporting declines in tax payments from the comptroller in February. Austin, however, was among the five that saw gains. El Paso and three Dallas-area suburbs were the others reporting gains.

A longtime city employee, Davis commented on how Pflugerville’s retail sector has changed dramatically over the last five years. With big-box retailers such as Walmart, Target and Best Buy entering the fray, the retail sector is not just a mix of small business, Davis said.

Combs believes the state’s economy will begin a turnaround this year, although there may be a delay.

“We will continue to closely monitor sales tax revenue, and although we expect further collection declines in the near term, it is anticipated the rate of decline will moderate and then return to revenue growth sometime in the second quarter of 2010,” Combs said.