For Immediate Release
June sales tax revenue down
The City of Springfield's June one-percent general sales tax check from the Missouri Department of Revenue is down compared to budget for the month of June and when compared with June, 2013. This means a $588,692 shortfall for the month.
The City heavily relies on sales tax revenues as its main source of revenue to fund vital services, such as police and fire operations. In Springfield, approximately 60% of revenue in the General Fund comes from sales tax and use tax.
Here's how the numbers break down:
|Actual Revenue||Budgeted Revenue||Budget Shortfall||Percent Change|
|June 2014||$ 3,436,806||$ 4,025,498||$ 588,692||14.6% decrease|
|Year-to-Date||$39,252,689||$39,686,500||$ 433,811||1.1% decrease|
Compared to last year, June 2014 revenue was $548,448 below June 2013, however, year-to-date 2014 compared to 2013, sales tax is $741,837 higher or 1.93%.
On a cash basis, June is the end of the fiscal year, however for the financial statements, the City will accrue July and August.
June's decrease in revenues follows a month where revenues were up significantly in May, compared to both what was budgeted for May 2014 and when compared to May, 2013.
This 47% increase in May supported a belief of the City's Finance Department that the State Department of Revenue was behind in processing payments.
In April, sales tax revenue, however was down 10.74% from April of the previous year.
"This roller coaster of trend makes things very difficult to manage and to predict," explains Mary Mannix Decker, City Finance Director.
View a graph of Monthly Sales Tax Receipts comparing fiscal years 2013 and 2014.
For more information, contact: Finance Director Mary Mannix Decker, (417) 864-1625.