Cities hope returning soldiers boost sales Posted On: Sunday, Nov. 29 2009 05:06 AM By Matt Goodman
Killeen Daily Herald

City officials expect to see a much-needed boost in sales tax revenue in November and December because of soldiers returning home during the holiday season.

"Not all the troops are coming back at the same time, but the month of December will be the heaviest," said Harker Heights Chamber of Commerce president Bill Kozlik. "I feel it'll be a good increase for November, but December will be a better one."

Texas comptroller Susan Combs distributes a portion of revenue from sales tax to each city, depending on how much each brought in. Throughout 2009, the majority of cities in Bell and Coryell counties might have slipped slightly compared to the year before, but some were able to maintain or even increase.

Killeen has brought in almost 6 percent less, or about $1 million. But Harker Heights is up almost 29 percent on the year – about $1 million – because of the Market Heights shopping center, which opened in 2008. Copperas Cove is down a percentage point, which is about $30,000.

The decreases and stagnation show the recession-induced hesitance that bogged down consumer spending this year. Harker Heights, once having monthly increases of about 25 percent, is finally beginning to plateau. In October, its sales tax revenue was only up five percent. In September, it was 7 percent and August it was 16 percent.

Kozlik hopes the holiday months – particularly December – will give the city a boost in sales tax receipts.

"We're going to have a gain, but we're not losing that much ground," he said. "Everything is not increasing as much as we'd like to see it, but our economy in this area is doing very well."

Copperas Cove is pushing shopping locally. When consumers leak out of the city or the region for products, they give other city economies a boost. The Shop Cove program, organized by the city's chamber of commerce, is aimed at keeping residents inside Copperas Cove this season.

"With the economy the way it is, people are going to shop more so this holiday season in their home towns," said chamber president Marty Smith. "People are going to spend less money this season so if they spend it in their own hometowns that will help tremendously."

Killeen is promoting the city through its Chamber members.

Vice president Jack Wade called the economic environment "exuberant" because of the returning soldiers from the 1st Cavalry Division.

It's the first time many of them will have Christmas with the whole family, he said, and hopes that they shop locally.

"With consumer spending, the general feeling from the area is always an exuberant feeling when you have soldiers returning from overseas," Wade said. "We're really looking at shopping among our chamber of commerce members and to shop the regional area. Any shopping in the regional area is going to help all the cities."

Contact Matt Goodman at mgoodman@kdhnews.com or (254) 501-7550.