City officials say Rolla’s sales tax revenues have stabilized this year at this point, rebounding from a sluggish second quarter that was attributed to the stagnant economy.

Those numbers now show a growth rate at about 1 percent up from last year. “So far this year we have $2.74 million in sales tax revenues. Last year at this time, we had $2.72 million in revenues,” City Administrator John Butz said.

If revenues remain steady at a 0.94 percent growth, the city will end up with almost as much revenue it budgeted, a one percent growth for this year, said Butz.

It has been an unpredictable ride for sales tax revenues during the current fiscal year.

In January and February, revenues fell, dropping 1.5 percent below last year’s numbers.

In response, the city enacted a contingency plan to help lower expenses, and reduce staff training, travel and hirings. Council opted to delay hiring a new fire marshall to replace Larry Seest.

The new fiscal year begins Oct. 1. In the final three months of the year, city officials are hoping for a boost in consumer spending in the city.

During the first week of August, the city will participate in a state-wide, three-day sales tax holiday on the purchase of school supplies.

Rolla declined to participate in the first two sales tax holidays, while surrounding communities used that lack of participation to lure Rolla residents to shop out of town for school supplies, Butz said.

“About the only thing the city can do is join in with the Chamber (of Commerce) in preaching to shop locally,” Butz said.

The aim of the sales tax holiday, according to Butz, is to encourage residents to shop locally and, potentially, boost sales of other goods not exempt from the holiday.

While the state is offering consumers a short-term reprieve, the city is focused on long-term projects to generate revenue.

“What we can do is invest long term,” Butz said, highlighting projects like the Missouri S&T Technology Park and the proposed Rolla West venture.

Elizabeth Bax, director of the Rolla Regional Economic Commission, said the city is looking to increase both retail and industrial development.

“When you bring in more employees, it obviously increases sales in town,” Bax said.

Bax cited a 2007 study the city initiated on sales tax revenues that showed the city was missing out on a potential revenue windfall. In a 2007 study, the city discovered it was losing $250 million in potential retail sales.

Revenue from the lost business totals up to $5 million that the city is not receiving when those sales are multiplied by the 2.5 percent city sales tax, said Bax.

Bax said the city received interest from companies looking to build in Rolla, but presently no agreements have been made.

“The city can’t control who invests here, but the city can control being receptive to new development,” Bax said.