ROGERS -- Rogers and Fayetteville saw a strong increase in sales tax revenue received this month compared to the same period last year while Springdale's gain slowed.
Finance directors pointed to increased tourism as a possibility for the increase.
CityAugust 2014August 2015*Percent difference
Bella Vista$135,737$151,433*11.56
Bentonville$907,936$897,671*-1.13
Fayetteville1,525,1981,653,703*8.4
Lowell$238,745$298,802*25.2
Rogers$1,272,517$1,456,329*14.4
Siloam Springs$279,315$280,536*.4
Springdale$1,037,873$1,074,141*3.5
Source: Staff Report
Sales tax collected during June is remitted to the cities by state officials in August. For comparison purposes all sales tax numbers cited in this report represent a 1 percent general fund sales tax.
The June bump could have come from outside visitors, said Casey Wilhelm, director of finance for Rogers.
Rogers led the region with a 14.4 percent increase this year over last. The city took in $1,272,517 in sales tax in August 2014 and $1,456,329 this year.
The increase isn't from new retailers opening up in Rogers, Wilhelm said. It could be increased spending, but the summer month is more typical for vacations.
"I kinda feel like we're just feeling the AMP," Wilhelm said.
The Walmart Arkansas Music Pavilion opened in Rogersin June 2014. This June was a busy one for the venue, said Erin Rogers, public relations director. There were concerts by Third Eye Blind and Lady Antebellum. The venue also hosted several corporate events including concerts associated with Walmart Shareholders Week, the Poultry Federation 56th Annual Poultry Festival and LPGA events associated with the Walmart NW Arkansas Championship presented by P&G.
Paul Becker, Fayetteville finance director, also pointed to the idea of increased visitors or perhaps population growth in the increase. June traditionally isn't a strong month for the university town that had an 8.4 percent increase from $1,525,198 in August 2014 and $1,653,703 this year.
It could also point to an economic recovery, Becker said. Sales tax revenue this year has been consistently strong each month making it one of the best in Fayetteville in the past 9 or 10 years, he said.
At 3.5 percent, Springdale didn't have a huge increase this month over last year, said Wyman Morgan, administrator and financial services director. "It's got to level off some time," he said.
Springdale brought in $1,037,873 during August 2014 and $1,074,141 this August.
Sales tax revenue is up 11.76 percent in the past 12 months compared to the same period the year before, Morgan said.
Bentonville's total dipped from $907,936 in August 2014 to $897,671 this August. The monthly target is $800,000, said Denise Land, finance director. The 1.1 percent difference is negligible, Land said.
"To me, that is almost flat," she said.
Business rebates often affect Bentonville. Taxes collected on hotel rooms, meeting spaces and prepared food sales through the Bentonville Advertising and Promotion Commission show an increase from June 2014 to June 2015. Hotel taxes increased 1.2 percent and prepared food sales increased 9.4 percent for totals of $70,953 and $119,459, respectively, although those upward trends did not show in sales tax numbers for the city.
Sales tax received so far this year in Bentonville is 8.9 percent above the first eight months of last year. The 2015 total is $7,180,598 compared to $6,591,985 during the same period last year.
Finance officials with large increases said they were pleased overall, but cautioned that they expect growth to eventually level off and continued meteoric gains can't be expected to hold long term.
Springdale is up 11.5 percent for the first eight months of the year with $8,193,543 in revenue compared to $7,351,614 during the same period last year.
Rogers is up 8.1 percent in the first eight months of the year with $10,667,279 compared to $9,871,580 during the same period last year. Increases this year will flow into reserve and replenish $4 million transferred from reserve into recent projects that included a new fire station and Lake Atalanta improvements, Wilhelm said. She will provide a higher projection for sales tax income next year for Rogers but it will be conservative, she said.
"Somewhere it will flatline," Wilhelm said.
Salary increases approved in May for Fayetteville city workers were possible because of the steady increase in sales tax revenues, Becker said.
Fayetteville sales tax revenues increased 6.9 percent during the first eight months of this year compared to the same period last year with $12,885,645 compared to $12,049,142.
Growth in the sales tax category is important but it is also subject to change, Becker cautioned.
"Nobody knows what's going to happen in the long run," Becker said.
NW News on 08/27/2015