For Immediate Release
Final FY2009 Tax Revenue Down 3.28 Percent
The City of Springfield ended its 2009 fiscal year with sales tax revenue collections down 3.28 percent from the FY 2008 figures.
The June 2009 sales tax check was down 10.44 percent over the same month last year. The sales tax check received in June generally reflects April retail sales, although it also includes revenue from businesses that pay on a quarterly basis.
This revenue represents the 1 percent general City sales tax. For the full 2009 fiscal year, the 1 percent general City sales tax generated $38,349,627, compared to $39,651,492 for FY2008.
The sales tax revenue for the month of June 2009 is $3,770,212, compared to $4,209,601 for June 2008. This represents the lowest June monthly sales tax revenue since June 1999.
The final FY2009 general sales tax revenue represents a 7.92 percent decrease from the City’s budget projections for the current fiscal year. This created a revenue shortfall of $3.3 million in the General Fund operating budget.
City staff began addressing this shortfall late last year and implemented a formal General Fund hiring freeze as of Jan. 1, 2009. Between savings generated in this year’s budget and some other types of revenue coming in at higher-than-anticipated levels, such as the gross-receipts tax, the City will balance its year-end budget without having to use the “Rainy Day” emergency fund.
For more information, contact: Deputy City Manager Evelyn Honea, 864-1004.