Tax revenues in New Orleans are higher than expected, but so are city expenses.
The New Orleans Revenue Estimating Conference said last week revenues from sales and property taxes and other recurring sources should total $416 million in 2008, $15 million more than expected last fall when the city’s 2008 budget was prepared.
Collections in the first six months of 2008 included $63.5 million of property tax revenue, up slightly from 2007, and $50.3 million of sales tax revenue, an increase of $7 million from the first six months of 2007.
On the other hand, the group said, city expenses will be about $13.5 million over the current budget due to higher-than-anticipated costs for police overtime, fuel, and other factors.
City economist Jerome Lomba said revenues from recurring sources are expected to increase from $416 million in 2008 to more than $435 million next year.