June 08, 2010

News Release

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.

Download a report documenting the percent change for monthly general sales tax revenues for the past three fiscal years. (PDF)

For more information, contact: Mary Mannix Decker, Finance Director, (417) 864-1399.

city of springfield

Department of Finance

840 Boonville Avenue • P.O. Box 8368 • Springfield, MO 65801
417-864-1625 • Fax: 417-864-1880 • springfieldmo.gov