Little Rock expects to collect $130.8 million in revenue in 2010, $3.7 million less than expected and almost $7 million less than predicted when the city adopted its budget for 2009.

City manager Bruce Moore told Little Rock directors last week that the latest projections show sales tax revenue in 2010 of $60.1 million, down from the $62.9 million collected in 2008. However, that is slightly better than the $59.2 million now expected to be collected in 2009.

Moore said the city will pay more for employee health insurance in 2010, and noted that contracts with the three unions representing municipal workers mandate pay raises next year.

“That means there are going to be some tough decisions for this board to make,” Moore said.

The city operates on a calendar fiscal year. Moore will present a proposed budget for 2010 to the board later this month.

Little Rock received $1.87 million in sales tax revenue in October, based on sales in August, which was the highest monthly total since June’s revenues of $1.62 million.

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