Jefferson City sales tax revenue lags, full virus impact unknown

JEFFERSON CITY, Mo. (KMIZ)

Jefferson City leaders are proceeding with caution on many sales-tax supported projects while monitoring the expected drop in revenue associated with COVID-19.

Since the manifestation of the coronavirus, the city's sales tax receipts experienced a two-month decrease, city administrator Steve Crowell said.

"We do not have an actual estimate of the impact COVID-19 may have on sales tax capital projects," Crowell said. "Many of our sales tax projects have been initiated, are in the later planning stages or staff is attempting to look at opportunities to leverage grant funds for some of those potential projects."

The 1 percent sales tax report issued on March 6 said the city received $1,066,146, which is $83,764 less than the projected collection. The next report is expected to show an even greater drop in revenue due to the county/city stay-at-home order.

The Jefferson City Public Works Department is using some department staff to move forward with some planned road and storm sewer projects.

"We are always watching that closely, especially now, during this time, with the uncertainty," Mayor Carrie Tergin said. "I think it's always smart to be cautious."

Tergin said projects that are largely independent of sales tax funding, such as a the bicentennial bridge project and the Capitol Avenue urban renewal plan, will proceed as normal.