Moody’s Investors Service said last week it expects Missouri cities will maintain their credit quality amid ongoing economic and budgetary challenges due to slow overall growth, weak consumer confidence and persistently above-average unemployment.

The state’s cities rely heavily on sales taxes to fund operations. Those collections have been under pressure since 2008 due in part to the lackluster economy. Missouri cities are statutorily limited from increasing revenues without first winning voter approval through a lengthy process, so their ability to counteract lackluster sales tax collections is limited.

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