WM Budget Committee looking for stronger summer numbers

WM Budget Committee looking for stronger summer numbers

City officials hoping local cash registers heat up along with temperatures as travel season hits full swing

news@theeveningtimes.com

Despite a newly-completed Holiday Inn Express open and an additional new hotel development underway, 2018 West Memphis tourism tax collections continue to under-perform.

June is the first month of the traditional tourism season, but the Advertising and Promotions sales tax revenues have been soft so far this year. Overall, tax revenue was a mixed bag.

Reported city sales tax reflected a strong one-month jump according to City Treasurer Frank Martin.

The year-to-date Advertising and Promotions tax performance has shown improvement just one month so far this year.

March showed a $10,000 increase over 2017. The four other months served to erase those gains, but the tourism tax was off by just $5,117 year to-date.

With June being the first full travel month of the summer vacation season, forecasts may bode well for the hotel and hamburger tax collection.

“June is when we see travel,” said Martin. “It’s stayed close, we are down just $5,000 year to date.

I’m am optimistic about summer travel season. We will see the first results next month.”

Travelers looking for the familiar “golden arches” will enjoy upgrades to both West Memphis McDonald’s. The two Mickey D’s in the city were renovated this year. While the work was being done, the remodeling forced closure at the franchise in the truck stop area on the east end of the city and limited operations to drive through service on Missouri Street, traditionally one of the city’s top tax revenue producers. Having the high A& P tax-producing fast-food locations running at full-speed again will likely be a boon for summer hamburger tax revenues as travelers and their tax dollars make stops along the Interstate highways.

City sales tax numbers showed improvement over 2017 year-to-date and also showed stronger than the budget projections. June was up $79,000 over the previous year. Overall yearto- date collections ran 4.5 percent ahead of last year, up $31,815.

The improved performance was welcome news as the city weighs revenues against expected increases in city payroll expenses.

Wage reviews were expected for the biggest city departments during the remainder of the year. A pay, benefits and job description analysis is already underway at the West Memphis Utility Department.

One number that budget commissioners typically enjoy hearing during the monthly tax revenue reports was not available during the June meeting. The Southland Park Gaming & Racing tax collections were not presented during the budget meeting.

By John Rech