Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
Greenwood finance director warns sales-tax receipts slipped, rebate adjustments cut September revenue
Summary
The city’s financial presenter said September sales-and-use tax receipts fell year-over-year after rebate and audit adjustments; staff reported a $2.8 million year‑to‑date cash decline and told council the probability of meeting 2025 budgeted sales-tax revenue is low.
Greenwood’s finance presenter reported that city sales-and-use tax receipts for September 2025 were down compared with the same month in 2024, and that rebate and audit adjustments accounted for much of the decline.
Mr. Marsh told the City Council the city’s September distribution showed a 3.10% drop year over year for city receipts while the county distribution rose 7.04%. He said a $10,225 rebate reduced the month’s allocation and that the average rebate this year has been roughly $16,000 per month versus about $7,000 in the prior year. After adjusting for rebates and audit changes, taxable sales for the month would still have been lower, Marsh said.
The presenter gave additional context for the council: the nine‑month year‑to‑date taxable sales shortfall totaled about $1.3 million and the city’s cash balance fell by about $2.8 million during 2025, leaving roughly $14.1 million at the end of the reported period. He said current monthly cash collections average about $295,000 and that, without a significant near‑term pickup, the city is unlikely to hit the budgeted revenue target.
Council members asked follow-up questions about the drivers of the change, with Marsh saying the timing of rebate adjustments and audit impacts—rather than a sharp drop in local purchasing—explained much of the monthly variance. He noted that distributions are recorded months after the underlying sales (for example, July sales are often reflected in September distributions), which affects month-to-month comparisons.
Councilmembers requested that the finance director detail revenue scenarios at the upcoming quarterly review and in the staff budget presentation on Oct. 15, including a clearer breakdown of maintenance costs for previously built capital projects funded with sales tax proceeds. Marsh agreed to present revised numbers and scenarios at that meeting.
The report closed with staff noting capital spending is proceeding on several projects and that some reductions in cash reflect committed capital expenditures moving into construction and completion phases.
What’s next: the council scheduled a quarterly budget review for Oct. 15 where staff will present updated projections and discuss options for closing any shortfall.
