SILOAM SPRINGS — City sales tax receipts slipped between January and September this year compared to the same period last year.

It’s down about 2 percent, or$72,824, so far this year, said Paul Calloway, city finance director.

Receipts declined 1 percent in September compared to the same month in 2008.

They decreased $4,519, from $459,702 in September 2008, according to City & Town, a magazine published by the Arkansas Municipal League.

September receipts represent taxes that were collected on items sold in July.

County tax receipts for SiloamSprings decreased 14 percent or $26,162, from $184,040 in September 2008. This was the largest month-to-month decrease so far this year, Calloway said.

The only increase was 2 percent in January for tax receipts from the county, Calloway said.

These receipts are the city’s share of the county tax, said Debbie Rogers, of the state Treasurer’s Office.

Receipts from the county have declined more than 7 percent, or $124,280, between January and September compared to the same period last year, Calloway said.

“The city closely monitors financial results, both revenue and expense, on a monthly, quarterly and annual basis,” Calloway said.

The trend has been that revenue is decreasing, he said.

This biggest month-tomonth decrease in city sales tax revenue this year occurred in February and March, which accounted for an 8 percent decrease in revenue.

The largest month-tomonth increase in city sales tax receipts occurred in January, accounting for a 3 percent increase from January 2008.

The city has taken steps to decrease spending and finding ways to save money.

“The most significant adjustments were net reductions in budgeted cap

ital spending of

$398,605 and a hiring

freeze on open posi

tions resulting in a cost

savings of $281,701,” Calloway said.

The city’s 2009 budget shows no increase in sales tax revenue from 2008.

The city has made up for the revenue losses in electric sales, sales tax revenue and investment income by implementing the previous cost saving measures.

It has saved a total of $734,506 because of this.

“With the result of these actions and efforts, the projected financial results for 2009 are in line with the original budget,” Calloway said.

Springdale’s tax receipts for September decreased less than 1 percent or $5,550, from $1.75 million in September 2008, according to City & Town.

Bentonville saw a 24 percent decrease in sales tax receipts from September 2008. It declined $327,255, from $1.34 million in September 2008.

Rogers’ tax receipts dropped 8 percent or $172,533, from $2.04 million in September 2008.

Fayetteville’s sales tax receipts declined 5 percent or $138,569, from $2.66 million in September 2008.

Each of the previous cities has a 2 percent sales tax.

The sales tax for Benton County is 1 percent and Washington County’s is 1.25 percent.

The total sales tax for Siloam Springs, including the 6 percent state sales tax, is 9 percent.

News, Pages 1 on 11/01/2009

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