Comptroller Green Releases FY 2005 Figures

Press Release from the Comptroller:

ST. LOUIS, July 19, 2005—In spite of finishing $1.45 million in the red, the fiscal year that ended June 30 showed signs of positive economic growth, particularly in sales and earnings tax receipts. Both revenue streams beat projections, especially for the year’s final quarter. The payroll tax ended about where projected. Lambert Airport and natural gas gross receipts also outpaced projections for the year.

The city’s amusement tax, however, was $1 million lower than expected. Likewise, the hotel tax was down $500,000 and the parking tax was down $400,000. The amusement tax is likely down due to the cancellation of the St. Louis Blues hockey season. Hotel and parking revenue probably suffered from the same cause. On the positive side, the restaurant tax ended up about where originally projected in light of downtown losing more than 40 home hockey games.

“The economic vital signs of the city seem to have turned the corner. Mid-year and third quarter results projected continued budget problems but the last quarter of the fiscal year showed an amazing recovery in the economically sensitive taxes such as sales tax and earnings tax,” explained Deputy Comptroller Thom Bozzo.

Below are highlights from the fiscal year 2005 operating budget:
• Sales Tax – $2.1 million over projections
• Earnings Tax – $1.1 million over projections
• Airport Gross Receipt Tax – $1.4 million over projections
• Natural Gas Gross Receipts Tax – $1.3 million over projections

Over the past few years, the city’s major revenue sources have generally fallen short of expectations or remained flat. This year bucked that trend and was a pleasant surprise for the city’s chief fiscal officer.

“We ended this year with some positive financial momentum. Its up to us as city leaders to build on this and grow it into even larger gains for next year and the years to come,” said Comptroller Darlene Green. “It will take a true team effort and a renewed commitment to fiscal responsibility to get St. Louis where we want it to be financially.”

The year end results cited above are unaudited and represent preliminary calculations. The official audited results will be published later this year in the city’s Comprehensive Annual Financial Report.