Abbeville sales tax revenue sees growth in 2015

Amid an economic climate around Acadiana that has seen sales tax decline in many areas, Abbeville remains steady.
In July, the city collected $301,871.46, $12,000 ahead of the same time last year. That comes a month after the city remained nearly even, collecting $336,182.75 in June, compared to $336,141.43 in June of 2014.
“For the year to date,” Abbeville Mayor Mark Piazza said, “we are $83,500 ahead of 2014 through July.”
That represents around a four-percent increase in 2015. Iberia and St. Mary Parishes have reportedly had the percentage of sales revenues decline by double digits. St. Mary is down more than 16 percent for the year to date. Sales tax collection in neighboring Lafayette Parish has reportedly declined four of the last five months.
“It’s something to be thankful for that sales tax is still steady,” Piazza said. “Even though it has been a modest increase (this year), we have had an increase every year for the past four years.
“That trend looks like it is continuing.”
There are factors that have benefited Abbeville, including business growth.
“It could be a little bit of inflation and the increase in prices,” Piazza said of one factor. “We’ve gotten new businesses in Abbeville recently.”
That includes the development of a strip mall near Walmart on Veterans Memorial Drive.
“We haven’t seen a big rise in business closures of any kind,” Piazza said. “That’s all good, positive stuff.”
That doesn’t mean that city officials are not keeping a close eye on how the price of oil affects the economy.
“I watch it every day like most people,” Piazza said. “We do have some oil field-related service companies here that have substantial employment. Many of them are locally owned and we certainly hope that they continue with the pace of the economy.”
The mayor and members of the Abbeville City Council will begin working in October on the budget for the upcoming year.
“We’re very conservative,” Piazza said of the process. “Both sales tax and utility revenues have continued in an upward trend. I personally don’t see any reason to panic at this point.”
The councils’ finance committee meets quarterly to receive updates on the city’s finances.
“We watch the finances very closely,” Piazza said.