Finance presentation: small sales-tax gain, tourism tax dip; committee asks for more CVB detail and considers auditing theater reporting

City finance staff presented the Branson Finance Committee with year-end financial results for 2024 and fielded questions about tourism-tax volatility and CVB spending transparency.

Allison, the city's finance director, told the committee that overall sales-tax revenue was up about 1% in 2024 while tourism tax declined. "For the general fund, revenues including transfers decreased by 1.1% and expenses, including transfers, decreased by a 186,000," Allison said during her overview. She reported that sales tax accounted for about 56% of general fund revenue and that general fund expenditures (excluding transfers) came in roughly $2.1 million under budget.

Why it matters: Sales and tourism taxes are Branson's principal revenue sources for operations and capital projects. Committee members said unexplained swings in tourism-related receipts, especially theater revenues, could affect city budgeting and marketing decisions.

Key figures and program notes: Allison reported the public safety fund received bond proceeds for a new police facility in 2024, temporarily increasing that fund's revenue to about $19 million in the year. The tourism fund ended 2024 with an ending fund balance cited at about $43 million, much of it already allocated to capital projects, and staff emphasized they are working to tie revenues more explicitly to project funding to avoid confusing large ending balances with available cash.

CVB spending and reporting detail: The committee asked for a more granular CVB expense breakdown than the high-level categories presented. Allison displayed a slide that showed 2024 CVB year-to-date expenses by category (traditional marketing, media, meetings and conferences, events and sponsorships, veterans, opportunity fund, etc.). She said CVB submits invoices and that the city acts as a fiscal reviewer: "We're monitoring every single nickel that you're seeing up there to make sure it's being spent accordingly," said Kathy (city staff) who described the staff oversight process. Committee members asked staff to provide the level of detail that CVB already supplies to the county economic development body so the committee can see similar line-item information.

Theater tax reporting and audit suggestion: Committee members flagged unusual month-to-month swings in theater-related tourism tax. Several members described a spike and dip pattern that they could not explain from available receipts. Allison and others said some theaters report bulk, lump-sum contracts (for example, advance payments for unlimited seats) that affect taxable reporting, and those receipts may be categorized in non-taxable lines in some cases. Alex said the variation warranted attention ahead of budgeting decisions; one committee member suggested staff consider auditing tax reports for specific businesses to verify accurate reporting. Allison said the city can see which businesses are late or in arrears and can track reporting over time, though she noted legal or procedural limits on enforcement and that staff lacks authority to direct business practices.

Quotes from the meeting include Allison's summary: "In 2024 we saw a 1% increase in overall sales tax revenue and a decrease in tourism tax revenue," and a staff observation on reporting patterns: "It reflects reporting. And deals. And deals. I'm not concerned about the deals that they choose to make, but the accountability side." A committee member recommended, "maybe we should actually ask our staff to consider auditing some appropriate businesses to see is the reporting correct."

What the committee asked staff to do: Staff agreed to break CVB expenses into more detailed categories for the April meeting and to continue exploring better tracking of tourism and sales-tax collections so receipts can be more closely matched to activity months. Staff also said they will continue conversations with theater operators and the CVB about reporting practices.

What was not decided: The committee did not order or authorize a formal tax audit in this meeting. The suggestion to consider auditing specific businesses was entered as a committee discussion item; Allison said city staff can examine records internally and discuss legal constraints before any external audit would be pursued.

Next steps: Staff will provide more granular CVB invoice detail at the next quarterly meeting and continue work on methods to align tax receipts to the months in which they were generated.