The recent Economic Development Corporation (EDC) Board of Directors meeting held on March 17, 2025, in Rio Grande City, highlighted a significant increase in sales tax revenue, marking a historic milestone for the city. The board reported that sales tax collections for December reached $707,000, surpassing previous records and indicating a robust economic activity within the community. This figure represents a notable increase from last year, with officials noting that the city has seen its sales tax revenue double over the past five years.

Board members attributed this growth to increased consumer spending, particularly in local restaurants and businesses, as well as inflation contributing to higher prices. The positive trend in sales tax revenue is expected to provide additional funding for city services and projects, which is crucial for community development.

However, the board also acknowledged a slight decrease in sales tax revenue for March, which fell by $4,000 compared to the previous year. This decline was anticipated as spending typically slows down after the holiday season. Officials expressed optimism that spending would rebound in the coming months, particularly as residents begin to receive their income tax refunds, which historically lead to increased consumer spending.

In addition to sales tax discussions, the meeting touched on the current unemployment rate in the county, which remains high at 10.1%, compared to the state average of 4.2%. This statistic underscores the ongoing economic challenges faced by the community and the need for continued efforts to stimulate job growth.

The board also reviewed construction permit activity, noting a slowdown in residential building permits in February. This decline raises concerns about future housing development, which is essential for accommodating the growing population.

In conclusion, while the meeting showcased record-breaking sales tax revenue, it also highlighted the need for ongoing economic development initiatives to address unemployment and stimulate construction activity. The EDC remains focused on fostering a vibrant local economy that benefits all residents of Rio Grande City.