Fort Smith street sales tax up just 0.6% year-to-date, countywide tax up 2.4%

Fort Smith posted its first sales tax report since slicing budget items at an Aug. 16 Board of Directors meeting in response to underperforming sales tax revenue. So far, it’s a steady reset.

According to City Finance Director Jennifer Walker, the one-cent street tax revenue for July totaled $1.891 million, up 4.48% compared to July 2015 and 3.9% above the revised budget for the month. For the first seven reporting months of the year, the tax generated $12.393 million, up just 0.6% compared to the same period in 2015.

“The city sales tax revenue to date is currently 0.6% above last year and 0.6% above revised budget,” Walker wrote in a memo to City Administrator Carl Geffken, Mayor Sandy Sanders, City Directors and department heads on Tuesday (Aug. 3), adding that “total revenue to date is $72,240 more than the revised budget estimate” with the city’s sales tax receipts for 2016 “now trending at budget and forecasts year-to-date, indicating that additional cuts are not necessary at this time.”

The July report reflects May sales.

The total adjusted budget reduction resulting from the Aug. 16 meeting is $1.41 million. Street sales tax took the biggest hit with a $650,200 reduction while bond Issues were next at $495,900. Fire and Parks revenue estimates also fell by $132,150 apiece.

The breakdowns by fund include 1/4% city sales tax for fire and parks (revised $5.227 million, budgeted $5.491 million); street sales tax (revised $20.887 million, budgeted $21.537 million); and bond sales tax programs (revised $15.657 million, budgeted $16.152 million).

COUNTY SALES TAX REVENUES
The city’s share of countywide sales tax totaled $1.474 million in July, up 5.67% compared to July 2015, and 3.8% above the revised budget estimate, Walker said, with YTD in 2016 “2.4% above last year and 0.7% above budget.”

For the first seven months of 2016, the city has collected $9.689 million in county sales tax.

Walker continued: “The total revenue to date is $58,736 more than the original budget estimate. County sales tax 2016 is now trending at budget and forecasts year-to-date, indicating that additional cuts are not necessary at this time.”

At the previous meeting, Walker said county sales tax revenues were about $175,000 lower than budgeted, but “no service impacts are expected due to the proposed cuts.” Revenue from the countywide tax funds a majority of the city’s general fund budget, with much of that paying for police, fire and other essential city services.

The cuts the Board approved unanimously at the meeting came from excess fuel budgets due to sustained lower fuel rates and lower than expected contract and election costs. The revised amount for 2016 is $16.361 million, down from the originally budgeted amount of $16.536 million.

PREVIOUS ANNUAL SALES TAX COLLECTION INFO
Fort Smith 2% sales tax collection (1% for streets; 0.75% for 2012 water/sewer bonds; 0.25% for fire and parks)
2015: $40.76 million (With 58.33% of the year reporting, the 2016 YTD is at 60.8% of the 2015 total.)
2014: $40.198 million
2013: $38.938 million
2012: $39.21 million
2011: $38.683 million
2010: $37.229 million
2009: $37.554 million
2008: $41.226 million
2007: $37.858 million
2006: $36.84 million

Fort Smith portion of 1% countywide sales tax
2015: $16.09 million (With 58.33% of the year reporting, the 2016 YTD is at 59.2% of the 2015 total.)
2014: $15.625 million
2013: $15.353 million
2012: $15.279 million
2011: $15.15 million
2010: $14.89 million
2009: $15.04 million
2008: $16.61 million
2007: $15.15 million
2006: $14.71 million