The city expects its revenue next year to be higher than in 2020 but lower than in 2019 as it continues to see the effects of the coronavirus pandemic, according to a presentation the Little Rock Board of Directors heard Tuesday.
"We are beginning to see a gradual recovery," finance director Sara Lenehan said.
Little Rock's revenue was down about $8 million in 2020 as a result of the coronavirus pandemic. In 2021, the city anticipates that its general fund revenue will total $210,100,969, which is $6,061,716, or 3%, higher than the 2020 budget after it had been amended to take the pandemic's impact into account.
The projected 2021 revenue total is 3.6%, or $7,954,328, below the 2019 budget.
County sales-tax revenue is expected to grow about 0.4% from 2020, to $45.5 million, while city sales-tax revenue is expected to remain flat, changing by less than 0.1%, compared with 2020, coming in at $59.47 million.
Lenehan said the pandemic has led to more growth in county sales-tax revenue than in city sales-tax revenue because people who live in Pulaski County are staying closer to home rather than coming in to Little Rock to dine out or spend money.
Revenue from both city and county sales taxes is expected to be lower in 2021 than they were in the first three months of 2020. The first covid-19 case in Arkansas was announced March 11.
Revenue from franchise fees is expected to be about $29.14 million, which is 2.2%, or $633,000, above the 2020 budget and 1.8%, or $538,000, below the 2019 budget.
Charges for services are expected to bring the city about $10.23 million in revenue in 2021, which is 33% above the 2020 budget, but 36% below the 2019 budget.
The city expected revenue from business license fees slightly from 2020, to $6.85 million. Lenehan said the city had received a lot of applications for new small businesses, but that revenue will remain relatively flat.
Revenue from mixed drink licenses is expected to come in at $2.5 million, 31% higher than 2020 but 36%, or a half million dollars, lower than 2019.
Revenue from fines and fees -- which include court and parking fees, rezoning fees, incident report fees, animal services, and police reports -- is expected to increase by about 32% from 2020, to $1.82 million. The decline in 2020 revenue was primarily associated with the impact of covid-19, but revenue in that category has decreased by 38% over the past 10 years. Lenehan attributed that change to more community service options.
City directors will hear a presentation Tuesday on proposed expenditures for 2021 at their regularly scheduled board meeting.
Mayor Frank Scott Jr. said the goal is to provide city directors with the complete 2021 budget proposal Nov. 24, to be voted on sometime after the Thanksgiving holiday weekend.