Northwest Arkansas Sees Mixed Sales Tax Picture for June

Northwest Arkansas cities reported a mixed picture in sales tax revenue this month following a rebound from the harsh winter.

Revenue was up this month for most of the larger cities, particularly Springdale, where revenue jumped to about $951,000, or up 12 percent from June last year. Fayetteville, Rogers and Bella Vista also saw at least modest revenue gains.

Bentonville and Lowell reported sharp decreases, on the other hand. Walmart's home city took in about $714,000, down more than one-fourth from a year ago. Lowell's revenue dropped 36 percent to about $275,000.

The numbers give a delayed, rough picture of the area's economic activity, reflecting revenue collected in May from sales in April. City officials watch the figures closely because the revenue goes toward the general funds for public services and operations.

Each city except Bella Vista collects a 2 percent sales tax. One percent of the tax is devoted to repaying bonds; the other 1 percent goes into each city's general fund. NWA Media tracks the 1 percent going into general funds.

Sales vary widely among the seasons, so comparisons are based on collections from the same month a year ago.

Despite the mixed picture, area officials generally agreed the numbers show the area's in fairly good economic health.

"Any time that we're up, over and above the previous year's collections, that's good news," said Mayor Greg Hines of Rogers, where revenue was up 0.2 percent to $1.18 million. "It's a great sign for our region."

The rest of the year, particularly the summer, should build on this small increase, Hines said.

He pointed to the new Walmart Arkansas Music Pavilion, which opened during the company's shareholders meeting earlier this month, as a likely source of more sales tax revenue. Owners of restaurants and other businesses surrounding the venue have reported their highest sales ever, Hines said.

"I think those are all good signs," he said.

Along those lines, Springdale's revenue was the highest since before the recession, said Wyman Morgan, city finance director. The previous high was just last month, he added, meaning the city is seeing significant growth.

"I think it's just across-the-board increases," Morgan said, instead of any particular industry. "We're very proud of the economy in Springdale."

The numbers can't always be taken at face value, officials said. Fayetteville, for instance, saw a 1.8 percent increase in revenue to about $1.47 million, but that's not enough to make up for the winter, said Paul Becker, finance director. Snow and ice brought economic activity to a grinding halt across the country in December and January.

"We've edged up a bit, but we're still working against a couple pretty rough months in a row. I think we're still playing catch-up," Becker said. He said he didn't expect revenue to swerve too far up or down for the rest of the year.

Conversely, while Bentonville saw a decrease, revenue for the year is on target, said Denise Land, finance director.

"All in all, we're good," Land said, noting the city's budget assumed a $750,000 monthly average that has so far been exceeded. "We always try to be conservative with our numbers."

The city's revenue is typically erratic, Land added, swerving just this year between $680,000 and $893,000 per month.

"We had some really bumper months in 2013, first part of the year," she said. "Us slowing down from a year ago does not surprise me."