GREEN RIVER — City Administrator Reed Clevenger told Green River Chamber of Commerce members during the annual State of the City address that sales tax revenue is running behind budget for the current fiscal year.

Clevenger said the city budgeted $925,000 in sales tax revenue for the first month of the fiscal year but brought in $772,000, followed by a $10,000 deficit in July and an $80,000 deficit in August, for a cumulative total of $244,000 under budget for the first three months of fiscal year 2027. He said the city is tracking roughly even with last fiscal year, when the city was over budget by about $14,000 over the same three-month period.

Clevenger attributed part of the slowdown to broader economic conditions and changes to property tax provisions.

He also outlined a legislative change to how the city receives sales tax revenue from the state. Clevenger said Green River has received a direct distribution from the state, calculated through a formula weighing population and need, but said the amount was inconsistent and not guaranteed year to year, ranging from about $700,000 to $1 million annually.

Clevenger said recent legislation changed direct distribution permanently by adjusting how much of the city’s sales tax collections the state takes upfront versus how much comes back to the city, shifting the split by roughly six percentage points in the city’s favor.

Clevenger said rising costs, particularly in information technology, are outpacing revenue growth.

“That budget where it used to be a few hundred thousand dollars is now over a million, and replacement costs are skyrocketing,” he said. “That’s how businesses run today.”

He said the city is approaching a point where difficult choices will need to be made.

“We are at a point that we need to adjust, and have a real hard talk about services being offered, and what we can actually provide, based on the costs,” Clevenger said.

Sixth penny progress

Clevenger also gave an update on the specific purpose tax, or sixth penny tax. The total for all Sweetwater County was $83.5 million, with Green River approved for $22 million. The city began receiving funds in April 2023.

He said the city’s road project list under the tax was originally estimated at $20.5 million. To date, the city has collected about roughly 75% of that total, with monthly collections averaging just under $400,000.

Clevenger defended the tax as a necessary funding tool. 

“I know people don’t like it from a tax perspective, but when you look at revenues, and what it costs to rebuild a street, and you look at the city running on $17 million revenue, and the one project we’re doing right now is $3.5 million, that’s a big chunk of the budget,” he said. “So the specific purpose tax helps with that.”

Clevenger said Faith Street, Evans Street and Bridger projects are complete, and both directions of Riverview will be finished by the end of the year. Work has also started on Indian Hills. Easy Street is planned for 2027 and Wilkes Drive for 2028, though Clevenger said Wilkes Drive still has about $3 million in funding required. 

He said any remaining sixth penny funds after the listed projects are completed will go toward pavement preservation work.