City concerned about 2013 revenues
Wednesday, February 20, 2013
For the second month in a row, Jefferson City sales taxes have fallen short and city staff has concerns about whether funds will meet the year’s total revenue projections.
At the Finance Committee meeting Tuesday, the city reported February sales tax receipts for the 1 percent general sales tax came in $181,190 short of projections. In January, the 1 percent general sales tax came in $93,694 short of projections, leaving the year-to-date total shortfall at $123,924 shy of projections.
Information Technology Director Bill Betts, who is serving as interim finance director while awaiting a council decision on whether to approve his proposed new position as assistant city administrator, said he believes some of the year’s projections should be changed to reflect the actual numbers from previous years. Betts said the city is no longer sure the sales taxes will meet the year’s projections.
“We are a little concerned at the staff level,” Betts said.
For the half-cent capital improvement sales tax, January receipts showed a shortfall of $43,785, but in February the tax came in $39,395 above projections. Betts said the projected numbers have been altered after a council work session in December where the city revealed the tax likely would fall about $500,000 short per year from previous projections.
The half-cent parks sales tax also fell short of projections, with January receipts showing a $51,228 shortfall and February receipts showing a $84,207 shortfall.
Betts said staff will present a plan to address the shortfalls in the sales tax receipts at the City Council’s next work session, scheduled for 5:30 p.m. Monday.