TYLER, Texas — Sales taxes make up the majority of funding for the City of Tyler.
When people are not spending money at local businesses, then the city is not receiving money it budgeted.
For example, during an economic downturn in 2016, Tyler had to make budget cuts, take thousands of dollars out of the reserve fund and freeze tons of city positions including hiring new police officers.
“We’re trying to plan ahead of time and be proactive,” Tyler Chief Financial Officer Keidric Trimble said.
That why the city is creating its own Rainy Day Fund.
“So we're taking $3 million from our general fund and transferring it to the oil and gas fund,” Trimble explained. “We’re renaming it the Rainy Day Fund.”
There is already about $3 million in the previous oil and gas fund, putting the city of Tyler at more than $6 million.
The money will be used to fund public safety in case of hard financial times.