Stafford City Council has made significant strides in enhancing local revenue through a recent sales tax audit, which has uncovered over $1.4 million in previously unreported sales tax from local businesses. During the council meeting on August 6, 2025, it was revealed that Avenue Insight, the firm contracted to conduct the audit, identified more than 25 businesses that had been reporting their sales tax to other jurisdictions instead of Stafford. As a result, the city has recovered a substantial amount of revenue, with 28% of this total—approximately $396,000—allocated back to Avenue Insight as per their contract.

This recovery is crucial for Stafford, as it reflects a proactive approach to financial management and revenue generation. The council acknowledged that the increase in sales tax revenue is not merely due to a surge in business activity but is largely attributed to the successful audit. The city’s finance department is continuing to analyze data to identify any additional businesses that may be misreporting their sales tax.

In addition to the audit findings, the council discussed the implications of lifting sales tax exemptions for telecommunications and energy services. Despite the expectation that lifting these exemptions would generate additional revenue, it was determined that these providers had continued to collect and remit sales tax to the city even while the exemptions were in place. This revelation indicates that the city may not see the anticipated increase in revenue from these sectors, as the tax collection had effectively continued without interruption.

The council also addressed concerns regarding the city’s financial audit timeline, with the next audit due in September. There are worries about the potential downgrade of the city’s credit rating if the audit is not completed on time. The finance director reassured the council that they are in communication with credit rating agencies and are working diligently to meet the audit deadline.

Overall, the meeting underscored the importance of thorough financial oversight and the need for continued vigilance in revenue collection practices. The council's actions are expected to have a lasting positive impact on Stafford's financial health, ensuring that the city can better serve its residents and address community needs moving forward.