Similar to property taxes, this is because population grew faster than real revenues. From 1986 to 1995 real net proceeds fell sporadically. Recently, the Barrick-Meikle mine opened, which will significantly increase net proceeds. The sales and net proceeds tax bases are becoming larger while the property tax base has fallen significantly. These changes should be monitored to understand fiscal alternatives.
Local governments receive revenues from various sources.
Some sources are relatively stable while the business cycle and growth of the community affect others. The community needs to have sufficient revenues to provide the necessary services while having a mix of revenue sources that will not be too sensitive to any downturn in the local economy. The elastic revenue sources are that sensitive to the business cycle. If the share of revenues coming from elastic sources is rising, this may forebode problems in the event of an economic downturn. A community's tax rates are an indicator of whether the tax base is keeping pace with growth or whether higher rates are needed to finance necessary services for growth.