FAYETTEVILLE -- It might be time to review how closely Fayetteville's parks revenue is tied to tourism sales taxes, parks advisory board members said Thursday.
Half of the city's 2% hotel, motel and restaurant sales tax goes to parks. The other half goes to tourism efforts overseen by the Advertising and Promotion Commission.
April activity garnered $171,029 for parks, down almost half the amount of revenue for the same month a year ago. March revenue was $219,186, a 33% decline from the same month a year before. Business closings across the state started happening in mid-March and went full tilt in April, before openings started taking place in May.
Board Chairman Richie Lamb in the past has brought up the need for the city to do a new rate study on the fees associated with its parkland dedication ordinance. Developers of 24 or more new residential properties have to either dedicate park land or pay a fee instead, based on a formula. The formula used to calculate the fee involves the land value per acre, park acres per person and number of people living in a unit.
The rate for the fee was changed last year based on updated numbers in the formula, but the formula itself has been part of city code since 1981.
"I really hope that staff and administration and this board are going to be able to move forward with a review of our funding sources for this Parks Department," Lamb said. "We were concerned about it well before covid-19."
Parks revenue from the hamburger tax is down 17% for the year to date, compared to last year, at $1,227,866. The approved budget for all of this year is about $6.2 million.