For Immediate Release
June Sales Taxes Show Decline
The City of Springfield’s June sales tax check from the Missouri Department of Revenue was down 13.34 percent compared to June 2009. This is the final check of Fiscal Year 2010 for revenue generated from the City’s 1 percent general revenue sales tax.
The City’s sales tax revenue for the fiscal year ended up 7.59 percent below the amounted budget before the start of the fiscal year. However, the City of Springfield has instituted cuts to its budget on a quarterly basis throughout the fiscal year, and has put in place a hiring freeze on general revenue-funded positions, which is now in its eighteenth month. When making those cuts and calculating the savings from the hiring freeze, the City’s administration and Finance Department projected that sales tax revenue would be about 8 percent below budget.
Therefore, because cuts already made to the current year’s budget cover the difference in revenue, no further cuts will be necessary to the Fiscal Year 2010 budget. The fiscal year ends June 30.
“We estimated we would be approximately 8 percent below budget, so our fourth quarter cuts will be sufficient to handle this,” City Manager Greg Burris told City Council at its weekly lunch meeting on Tuesday.
For more information, contact: Mary Mannix Decker, Finance Director, (417) 864-1399.