ARDMORE, Okla. (KTEN) — With the gradual layoff of Michelin tire production employees set to begin soon, the estimated tax revenue loss due to the tire production facility's closure is starting to take shape.

Ardmore city officials say the tax revenue loss that will be felt the most is the anticipated decline in sales tax revenue.

That shows in the new fiscal budget that was just approved Monday by city commissioners for a total of over $141 million.

Of that amount, City Manager Kevin Boatright says around $34 million is allocated for grants Ardmore will receive; so the true amount is $107 million.

"When you take those grant funds out, then our total budget versus last year is a little bit less,” Boatright explained. “We've done something similar in the past. That was probably around 2008 to 2009. The economy kind of had a bad turn there for about a two-year period."

Another potential impact could be on property tax, as Michelin’s Ardmore facility is within Plainview Public Schools' district boundaries.

Despite projected negative impacts to tax revenue, Ardmore city officials are optimistic it won't be as burdensome.

"We are adding new retail. We have Albertson's opening in November. We have two or three that are associated with that that have already opened now such as Old Navy and Five Below,” Boatright explained. “We think that will help capture more tax dollars too."