Sales Tax Revenue Rises

REVENUE: Casey’s General Store, Gabby’s Set To Open

FARMINGTON — The revenue collected from Farmington’s 1-cent sales tax that goes into the general fund has steadily increased over the past six years, according to figures from city Finance Director Jimmy Story.

The city received $267,434 from its 1-cent sales tax in 2006. For 2012,

“The growth of the county and more people moving in is helping us. Even though they may be going into Fayetteville, we still get a cut of the sales tax.”

Ernie Penn

Farmington Mayor

that tax generated $426,110, a 63percent increase.

Farmington’s portion of the county sales tax also has increased over the same period, though revenues decreased for several years before taking a positive turn in 2011. Washington County collects a 1-cent sales tax that is distributed to municipalities based on population.

In 2006, Farmington received $716,840 from its portion of the county sales tax. This amount dropped for the next four years to $ 654,642 in 2010. However,

revenue began to climb following the 2010 census. In 2011, the city received $858,290 and in 2012, this jumped to $914,509.

Story said he attributes the increased revenue to the economy. He added he believes the city is in good shape financially.

“I think everything is good,” Story said.

Mayor Ernie Penn said he believes the increased revenues, particularly those from the county sales tax, show that consumer confidence is rising.

“People are buying cars and consumer goods,” Penn said Monday. “The growth of the county and more people moving in is helping us. Even though they may be going into Fayetteville, we still get a cut of the sales tax.”

Penn said he believes commercial development will increase along the western corridor of Wedington Drive and U.S. 62 because developers are seeing the traffic count on those highways.

He said he does not expect major industry to move into Farmington because the city does not have the infrastructure for it but does believe the city will see more commercial development.

Two businesses scheduled to open this year include Casey’s General Store and a new Gabby’s restaurant. The school district also is proposing a new basketball arena and performing arts center.

Those businesses, along with new school facilities, will benefit Farmington, Penn said.

“I think those businesses, in conjunction with the school, will impact Farm- ington,” Penn said. “We’ll have the facilities to host regional events and anytime you get people coming to your location, it will help us.

The increased revenues also have benefitted the city’s outstanding debt.

Farmington began collecting a 1- cent local option sales tax to build the sports complex in September 2010. That $1.7 million bond issue is now down to $1,060,000 and Story said he believes the city will be able to pay off the bond issue in September 2015, based on sales tax collections.