Fort Smith street sales tax up 1.7% compared to 2015, countywide tax up 3.3%

Fort Smith city sales tax is holding steady approximately 75 days after the Board of Directors approved a budget revision to account for lower-than-anticipated revenues.

City Finance Director Jennifer Walker said one-cent street tax revenue for August totaled $1.854 million, up 9.7% compared to August 2015 and 9.1% above the revised budget for the month. For the first eight reporting months of the year, the tax generated $14.247 million, up 1.7% compared to the same period in 2015 and 1.6% above the revised budget.

“The total revenue to date is $226,908 more than the revised budget estimate,” Walker explained in a memo to Mayor Sandy Sanders, City Administrator Carl Geffken, department heads, and the Board of Directors adding, “City sales tax 2016 is now trending at budget and forecasts year-to-date, indicating that the revised estimates are holding steady.”

The August report reflects June 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 the county sales tax for August 2016 was 9.7% more than last August and 8% above the revised budget, Walker said, with YTD in 2016 “3.3% above last year and 1.5% above budget.” For the first eight months of 2016, the city collected $11.137 million in county sales tax.

Walker continued: “The total revenue to date is $166,481 more than the revised 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 66.67% of the year reporting, the 2016 YTD is at 69.9% 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 66.67% of the year reporting, the 2016 YTD is at 69.21% 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