Springdale Commission Approves Expanded Budget

— Higher income led the Springdale Advertising and Promotion Commission to approve a larger budget, but one with a projected surplus.

Commissioners meeting Tuesday approved a 2014 budget projecting $346,500 in income and $331,550 in expenses.

“This is a flat projection for the income,” said Perry Webb, Springdale Chamber of Commerce executive director. “Operations and ad agency expenses are the same as last year. We did increase spending for projects.”

The chamber provides administrative and staff services for the commission.

Advertising and promotion tax collection is up over last year’s receipts, with one month of the year remaining. Collection to date is $313,996 compared to $311,708 in 2012. The 2013 budget projected $316,500 for the year.

The commission receives a tax on hotel and motel rooms in Springdale. The City Council raised the tax rate from 1.5 percent to 2 percent in September 2011.

The increased collection shows hotels and motels were busy during 2013, said Roger Davis, commission chairman. Davis is general manager for Holiday Inn Northwest Arkansas.

“Our business was buoyant during this year,” Davis said. “We had a record year for the time since the inception of the hotel. We expect growth of 4 percent to 5 percent next year.”

The 2014 growth is expected to be more gradual, not like the up and down bounce of 2013, Davis said.

Tax receipts from all hotels and motels are 8.5 percent higher this year than the previous 12 months. Tax receipts fell a third between 2005 and 2010 during the economic downturn, according to commission records.

The commission’s budget for special projects increased from $51,700 in 2013 to $63,750 in the 2014 budget. The biggest expenses approved are $10,000 to the Burlsworth Award luncheon organizers and the National Railroad Historical Society convention.

The commission can give money to other projects during the year, Webb said. The commission has about $160,000 in reserve.

“You will be able to cash flow other requests with the growth in receipts,” Webb said.

Upcoming Events