...But Local Cities Still Feel the Pinch

While there are signs that the economy is starting to strengthen at the national level, Metro East communities continue to suffer from the effects of the downturn.

Sales tax receipts--which contribute a large portion of revenues to the balance sheets of all cities--continue to be weak across the board:

• In Belleville, sales tax receipts are down 7.64 percent, about $112,857, over the first quarter;
• Despite cutting $2 million from the city budget in the past year, O'Fallon is operating about $117,000 over budget after one quarter of the current fiscal year;
• Edwardsville's sales tax receipts are down about 6 percent.

Metro East cities are coping with the continuing revenue pinch via a variety of strategies:

• Collinsville leaders sliced $1.4 million worth of road projects out of the budget to make up for lost income;
• While July sales taxes were $20,356 lower in O'Fallon than last year--$518,940 versus $498,584--the City had budgeted an 8 percent reduction in sales tax.