Tax Revenues Down In Prairie Grove, Up In Farmington, Lincoln

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PRAIRIE GROVE — Prairie Grove officials thought the closing of Walmart Express would hurt the city and now they believe the proof of this can be seen through sales tax revenues.

Walmart Express closed Jan. 28. For January, February and March, sales tax revenues were up compared to the same months last year.

However, beginning with April, revenues from the city’s 1- cent sales tax have been down three consecutive months, compared to the same months in 2015.

“It is probably safe to assume now, that the drop is directly related to the closing of Walmart,” Larry Oelrich, director of administrative services and public works, wrote in the city’s July newsletter.

Sales tax collections run two months behind so the effects of closing Walmart Express could not be realized until April.

For the first six months of 2016, January-June, sales tax revenues are down 2.5 percent, records show. In 2015, Prairie Grove received $223,214 for January-June. For 2016, the city has received $217,595.

Comparison month by month show the city received about $35,000 in January 2015 and this increased to $ 37,228 in January 2016. For February, the city received $38,881 in 2015 and $39,828 in 2016. In March, revenues also were up, $35,614 in 2015 and $36,990 in 2016. It changes in April. In 2015, the city took in $38,799 for April. This fell to $ 32,638 this year. For May 2015, the city received $ 38,984, compared to $36,763 this year. In June, sales tax revenues fell from $36,002 in 2015 to $34,149 this year.

The city has received its July payment for sales tax revenues and it was only down by $57, compared to 2015, for a total of $36,105.

Mayor Sonny Hudson said he’s not too concerned that revenues have been down the last few months.

“I hate it’s been down but I think it’s just a matter of time,” Hudson said. “I’m not concerned

that it will be a long-time thing or detrimental. There’s too much activity going on in Prairie Grove.”

City Hall consistently is receiving calls with questions about development along the bypass. For now, nothing is confirmed but Hudson said he believes development will come at some point.

Overall, sales tax revenues for Prairie Grove have increased every year for the past five years. In 2010, the city received $333,354 from its 1- cent sales tax. This increased to $457,712 in 2015.

The cities of Farmington and Lincoln are up for the first six months of 2016, compared to the same period in 2015.

For January-June, Farmington has received $325,644 from its 1- cent sales tax, compared to $ 321,249 for the same months in 2015, an almost 2 percent increase for the period.

Ernie Penn, Farmington mayor, said Farmington consistently has seen its sales tax revenues increase 3-5 percent each year.

“Every new business we get will just add to it,” he added.

Records show that for the past 10 years, money from the city’s 1-cent sales tax has increased each year. In 2006, the city received $267,434. In 2015, the city collected $653,189 from its 1-cent sales tax, a 144-percent increase. Tax revenues jumped significantly in 2014 and 2015.

Penn attributes the increasing revenues to the new Neighborhood Market and other new stores, people moving into this part of northwest Arkansas and the convenience of getting in and out of businesses in Farmington.

“People can stop and get almost everything they need in one town,” Penn said.

He expects the new Dairy Queen to “absolutely” bring in more tax dollars.

“People will come from all over to Dairy Queen,” Penn said, adding he receives calls all the time from people waiting for the new restaurant to open. “This is not as wide a chain as places like McDonald’s and it has a different product. I think it will be awesome.”

In Lincoln, revenue also is up in 2016, compared to 2015. For the first six months, the city of Lincoln has received $120,301 from its 1-cent sales tax, compared to $112,271 in 2015.

Lincoln Mayor Rob Hulse said city officials are pleased revenues are up for the first half of the year.

“It seems like we are settling into a pretty good pattern as far as taxes and growth,” Hulse said last week.

A new Harps store will open in 2017 and Hulse said he hopes to see a boost in tax revenue from the new store.

“I expect the level of shopping experience to go up a great deal and we feel like that will draw in some more businesses.”