Cleburne staff report 21% year-over-year sales-tax increase; officials caution against counting one-time revenues

City finance staff reported to the Cleburne City Council on Tuesday that sales-tax receipts for the fiscal reporting period ending Dec. 31, 2025, reflect a roughly 21% year-over-year increase, but staff cautioned that one-time or nonrecurring receipts appear to be driving much of the growth and recommended the city rely on a normalized 3%–5% growth rate for budget planning.

"This is a 21% year over year increase in sales tax," Mr. Boonstra told the council, but he warned that such increases often reflect one-time events and that, when normalized, the increase would equate to about a 2% increase in total city revenue. He explained how sales-tax dollars flow into different funds: roughly 50% to the general fund and a portion to 4A and 4B economic development funds.

Boonstra identified retail trade, manufacturing and accommodation/food service as the top three reporting segments, noting retail trade was the largest single contributor. He explained "economic nexus" principles and how online orders fulfilled within the city's jurisdiction generate local sales-tax revenue.

Staff reported year-to-date collections and the distribution to various funds, and emphasized that although the spike is encouraging, the city budgets conservatively and does not base recurring spending assumptions on one-time windfalls. Councilmembers encouraged residents to shop locally as a way to support recurring sales-tax revenue for services such as public safety and street maintenance.

The presentation ended with staff offering to answer council questions; no action was required on the update itself.