With grim financial news making headlines, city officials revealed this week that Freeport, like other cities, will not escape the affects of the recent economic downturn. According to unaudited reports compiled by the finance department, sales tax receipts for fiscal year 2007-’08 came in $132,999 below what was budgeted for the fiscal year, which ended April 30. It’s not that the city did not collect more sales taxes than it did the year before. It collected roughly $471,000 more than in fiscal year 2006-’07. But it did not collect as much as forecast. While officials budgeted for $4.96 million in sales taxes, the city actually received $4.83 million. That money reflects sales taxes paid out by customers January 30, 2007 though February 1, 2008, City Account Duane Price explained. “There’s a three-month lag, so February’s receipts would be for taxes paid in November, March’s are for taxes paid in December, and April’s are January’s,” he said. It’s The Economy Joesten told aldermen Monday that the poor economy could have a serious effect on the city’s revenue in the current budget. “I’m sure we have all heard and read and seen indications that many of our economists are predicting, and the State of Illinois is also signing on to, the possibility that the sales tax will be flat for the upcoming foreseeable future,” Joesten said. “We receive approximately one-third of our revenue in the general fund from sales tax.” Mike Klemmens ...
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With grim financial news making headlines, city officials revealed this week that Freeport, like other cities, will not escape the affects of the recent economic downturn. According to unaudited reports compiled by the finance department, sales tax receipts for fiscal year 2007-’08 came in $132,999 below what was budgeted for the fiscal year, which ended April 30. It’s not that the city did not collect more sales taxes than it did the year before. It collected roughly $471,000 more than in fiscal year 2006-’07. But it did not collect as much as forecast. While officials budgeted for $4.96 million in sales taxes, the city actually received $4.83 million. That money reflects sales taxes paid out by customers January 30, 2007 though February 1, 2008, City Account Duane Price explained. “There’s a three-month lag, so February’s receipts would be for taxes paid in November, March’s are for taxes paid in December, and April’s are January’s,” he said. It’s The Economy Joesten told aldermen Monday that the poor economy could have a serious effect on the city’s revenue in the current budget. “I’m sure we have all heard and read and seen indications that many of our economists are predicting, and the State of Illinois is also signing on to, the possibility that the sales tax will be flat for the upcoming foreseeable future,” Joesten said. “We receive approximately one-third of our revenue in the general fund from sales tax.” Mike Klemmens ...