City's tax revenue ends year down 3.28%

The city of Springfield will end its fiscal 2009 June 30 with a 3.28 percent decline in sales tax revenue compared to last year.

The city has received its sales tax check for June - which generally reflects sales that occurred in April - for $3.8 million, down 10.44 percent from $4.2 million in the same month a year ago, according to a news release. The latest check represents the lowest June sales tax revenue since June 1999.

The city's general sales tax, which is 1 percent, generated $38.3 million for the full fiscal year, compared to $39.7 million in fiscal 2008. The final total is 7.92 percent less than what the city budgeted to receive, creating a $3.3 million shortfall in the general fund operating budget.

The city began addressing that projected shortfall late last year by implementing a general fund hiring freeze and other budget cuts. As a result of that, as well as higher-than-expected revenue in some areas, the city expects to balance its year-end budget without dipping in to the city's "rainy day" emergency fund, according to the release.

Meanwhile, City Council is expected to vote June 15 on the city's fiscal 2010 budget, which is based on sales tax revenue projected to be flat over the next 12 months.