City Sales Tax Tumbles Again

WOMACK SAYS SITUATION DOESN’T MAKE SENSE

By John Gore

Posted: November 26, 2009 at 5:09 a.m.

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ROGERS — September sales tax revenue for Rogers fell for the fi fth consecutive month.

The city received $937,154 in sales tax revenue, compared to $1,112,762 for the same period last year, a 15.78 percent drop in collection.

Sales tax revenue reported in November reflects sales in September.

Comparisons are based upon collection from the same month in the previous year. Rogers collects a 2 percent sales tax. One percent of the sales tax collected is devoted to repayment of bonds. The other 1 percent goes into the city’s general fund and is available for city operations. For the purpose of this report, the Rogers Morning News tracks the 1 percent dedicated to the general fund.

“We probably aren’t going to make our budget for sales tax collections this year,” said Jerry Hudlow, city treasurer.

Sales tax revenue may be down for the year, but the city is close to its overall projected revenue for the year.

“We will finish the year at somewhere between plus or minus 2 percent of our projected revenue for the year,” Hudlow said.

Other sources of revenue — franchise, liquor and other fees — are making up the difterence in the sales tax slump, Hudlow said.

The 2010 budget, approved by the city council in October, conservatively projects sales tax revenue, other revenue and expenses, Hudlow said.

“We set the revenue levels and expenditures low for next year, and we are hoping the revenue picture improves as the recession lifts. Either way we will be in good shape next year,” Hudlow said.

Mayor Steve Womack said the sales tax revenue situation is crazy.

“I’ve just about given up trying to figure out what’s going on. It like trying to figure out some of the crazy officiating calls in the SEC this season. It just doesn’t make sense,” Womack said.

Faye tteville re ce ived $1 , 301 , 553 compared to $1,354,774 last year, a 3.92 percent drop. Springdale received $821,537, compared to $848,677 last year, a drop of 3.19 percent. Bentonville received $668,914 compared to $789,843 last year, a drop of 15.31 percent.

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