FOR IMMEDIATE RELEASE
The City of Springfield’s November sales tax check from the Missouri Department of Revenue is down 7%, or $187,341, compared to the amount budgeted. The sales tax check was $2,650,264 compared to the budgeted amount of $2,837,605.
The check reflects sales processed by the state in October from transactions made primarily in September. On a year to date basis, with November being the fifth month in the 2017-2018 fiscal year, revenues are down 2% compared to budget.
Compared to last November, monthly revenues are down 4%, or about $118,000.
“The City continues to experience significant delays in processing the City’s largest vendor payments (approximately one in five of our top 50 vendors did not have their final monthly payment processed and approximately one out of three of our top vendors were behind in processing at least one month,” said Finance Director David Holtmann.
The November check is the third below-budget check the City has processed since June, after the City started the new fiscal year off with a rebound. September’s check was down 7% compared to the budgeted amount due to a delay in the processing of several of the City’s largest vendors’ sales tax collections. October’s check was down 9%.
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 56% of revenue in the General Fund comes from sales tax and use tax.
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For more information, please call David Holtmann, Finance director, at 417-864-1632, or Director of Public Information and Civic Engagement Cora Scott at 417-864-1009 or 417-380-3352.