How can Columbia County continue to provide services for its citizens?

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2 Columbia County

3 How can Columbia County continue to provide services for its citizens? What factors and trends are impacting county services and funding sources? Which of these can the county control or influence In the short-run? In the long-run? What are anticipated changes that might affect the county s fiscal health? What might the county do to eliminate or minimize the impact of anticipated changes?

4 Population Columbia County Population Estimates, ,000 25,000 20,000 15,000 10,000 5,000 0 The population of Columbia County decreased 7% from 25,600 in 1999 to 23,900 in Data Source: Population Estimates, U.S. Census Bureau

5 Data Source: Population Estimates, U.S. Census Bureau Population Change,

6 Data Source: Population Estimates, U.S. Census Bureau Population Change,

7 Employment Columbia County Total Employment Estimates, ,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Employment in Columbia County decreased from 13,200 in 1999 to 11,700 in 2016 or 12%. How will future employment levels impact the county's fiscal situation? Data Source: Employment Estimates, Regional Economic Accounts, Bureau of Economic Analysis

8 Employment Change, Data Source: Employment Estimates, Regional Economic Accounts, Bureau of Economic Analysis

9 Employment Change, Data Source: Employment Estimates, Regional Economic Accounts, Bureau of Economic Analysis

10 Columbia County

11 Constant 2015 Dollars (Millions) Columbia County Total Revenue & Expenditures, $40 $35 $30 $25 $20 $15 $10 $5 $ Total Revenue Total Expenditures *Due to rounding, bars may appear slightly higher or lower than the values stated on this slide. Total revenue received by Columbia County increased 22% between 1999 and 2015, from $11.1 million to $13.5 million. Expenditures increased from $11 million in 1999 to $12.3 million in 2015, a total change of about 12%. Spending spiked to a high of $33.5 million in County revenue exceeded expenditures in 12 of 17 years. Data Sources: Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

12 Change in Total Revenue, Data Sources: Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

13 Change in Total Expenditures, Data Sources: Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

14 Columbia County Per Capita Revenue & Expenditures, Constant 2015 Dollars $1,400 $1,200 $1,000 $800 $600 $400 $200 $ Revenue per Capita *Due to rounding, bars may appear slightly higher or lower than the values stated on this slide. Expenditures per Capita While per capita revenue and expenditures followed similar trends to the overall measures discussed previously, the per person measures increased at a faster rate than the overall measures. Per capita revenue was $559 in 2015, $49 more than per capita expenditures ($510). Data Sources: Population Estimates, U.S. Census Bureau; Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

15 Per Capita Total Revenue, 2015 Data Sources: Population Estimates, U.S. Census Bureau; Revenue and Expenditure Statements, Arkansas Legislative Audit

16 Per Capita Total Expenditures, 2015 Data Sources: Population Estimates, U.S. Census Bureau; Revenue and Expenditure Statements, Arkansas Legislative Audit

17 Columbia County

18 Share of Total Revenue Columbia County Revenue Sources as a Percent of Total Revenue, 1999 and % 40% % 20% 10% 0% Intergovernmental Property Tax Sales Tax Officers, Jail & 911 Commissions & Fines, Forfeitures & Other Revenue Revenue Fees Taxes Apportioned Franchise Taxes *Due to rounding, bars may appear slightly higher or lower than the values stated on this slide. The share of total revenue from intergovernmental transfers decreased slightly from 27% in 1999 to 25% in Columbia County property tax revenue as a share of total revenue was 11% in 1999, and considerably more in 2015 (21%). The share of total revenue from sales tax declined from 42% in 1999 to 36% in Minor sources of revenue accounted for 20% of total revenue in 1999 and 18% in Data Source: Revenue and Expenditure Statements, Arkansas Legislative Audit

19 Share of Total Revenue Columbia County Revenue Sources Compared to State Revenue Sources % Columbia County State 35% 30% 25% 20% 15% 10% 5% 0% Intergovernmental Property Tax Sales Tax Officers, Jail & 911 Commissions & Fines, Forfeitures & Other Revenue Revenue Fees Taxes Apportioned Franchise Taxes *Due to rounding, bars may appear slightly higher or lower than the values stated on this slide. The share of total revenue from sales tax in the county (36%) was much higher than the statewide average (24%). The share of total revenue from property tax was 21% in the county in 2015, less than the statewide average of 23%. The share of total revenue from intergovernmental transfers in the county was 25% in 2015, more than the statewide average (22%). Data Source: Revenue and Expenditure Statements, Arkansas Legislative Audit

20 Constant 2015 Dollars (Millions) Columbia County Major Sources of Revenue, $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $ Intergovernmental Revenue Property Tax Sales Tax There was a slight increase in sales tax revenue in Columbia County between 1999 and 2015, from $4.7 million to $4.8 million, or 2%. Property tax revenue grew 133%, from $1.2 million in 1999 to $2.8 million in Columbia County's total intergovernmental revenue increased from $3 million in 1999 to $3.4 million in 2015, or 13%. Data Sources: Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

21 Columbia County Per Capita Major Sources of Revenue, Constant 2015 Dollars $250 $200 $150 $100 $50 $ Intergovernmental Revenue Property Tax Sales Tax Trends in per capita major revenue sources were similar to the overall trends discussed in the previous slide. However, population decline caused the per capita measures to increase more quickly/decrease more slowly than the overall measures. Sales tax revenue per capita was $201 in Columbia County in 2015, more than intergovernmental ($140) and property tax ($116) revenue per capita. Data Sources: Population Estimates, U.S. Census Bureau; Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

22 Per Capita Total Intergovernmental Revenue, 2015 Data Sources: Population Estimates, U.S. Census Bureau; Revenue and Expenditure Statements, Arkansas Legislative Audit

23 Change in per Capita Total Intergovernmental Revenue, Data Sources: Population Estimates, U.S. Census Bureau; Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

24 Per Capita Property Tax Revenue, 2015 Data Sources: Population Estimates, U.S. Census Bureau; Revenue and Expenditure Statements, Arkansas Legislative Audit

25 Change in per Capita Property Tax Revenue, Data Sources: Population Estimates, U.S. Census Bureau; Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

26 Per Capita Sales Tax Revenue, 2015 Data Sources: Population Estimates, U.S. Census Bureau; Revenue and Expenditure Statements, Arkansas Legislative Audit

27 Change in per Capita Sales Tax Revenue, Data Sources: Population Estimates, U.S. Census Bureau; Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

28 Constant 2015 Dollars (Millions) Columbia County Minor Sources of Revenue, $1.4 $1.2 $1.0 $0.8 $0.6 $0.4 $0.2 $ Officers, Jail & 911 Fees Fines, Forfeitures & Franchise Taxes Commissions & Taxes Apportioned Other Revenue Officers, Jail and 911 Fees increased greatly in Columbia County (56%), from $428,600 in 1999 to $667,300 in Similarly, commissions and taxes apportioned grew significantly from $618,700 to $793,000 or 28%. There was a increase in fines, forfeitures and franchise taxes (8%), from $376,400 in 1999 to $406,200 in Other revenue was $769,500 in 1999 and $588,600 in 2015, a decline of 24%. Data Sources: Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

29 Columbia County Per Capita Minor Sources of Revenue, Constant 2015 Dollars $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $ Officers, Jail & 911 Fees Fines, Forfeitures & Franchise Taxes Commissions & Taxes Apportioned Other Revenue Trends in per capita minor revenue sources were similar to the overall trends discussed on the previous slide. However, as a result of population decline, the per capita measures increased more rapidly/decreased more slowly than the overall measures. Commissions & taxes apportioned per capita in Columbia County were $33 in 2015, more than officers, jail & 911 fees ($28), other revenue ($24), and fines, forfeitures and franchise taxes ($17). Data Sources: Population Estimates, U.S. Census Bureau; Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

30 Columbia County

31 Share of Total Expenditures Columbia County Expenditures for Services Provided 1999 and % % 30% 20% 10% 0% Law Enforcement Highways & General & Other Health & Social Recreation & Capital Outlay Debt Service & Public Safety Streets Services Culture *Due to rounding, bars may appear slightly higher or lower than the values stated on this slide. The share of total spending for law enforcement and public safety in Columbia County increased from 18% in 1999 to 27% in The share of total spending for highways & streets grew from 19% in 1999 to 28% in General & other expenditures were the largest share of county government spending in 1999 and 2015, but decreased during the study period, from 46% to 40%. Data Source: Revenue and Expenditure Statements, Arkansas Legislative Audit

32 Share of Total Expenditures Columbia County Expenditure Shares Compared to State Expenditure Shares % Columbia County State 40% 30% 20% 10% 0% Law Enforcement Highways & General & Other Health & Social Recreation & Capital Outlay Debt Service & Public Safety Streets Services Culture *Due to rounding, bars may appear slightly higher or lower than the values stated on this slide. Columbia County's share of expenditures from law enforcement and public safety (27%) was far less than the statewide share (39%) in The share of total county expenditures for highways and streets was 28%, greater than the statewide average (24%). The share of total county expenditures for general and other expenditures was 40%, far greater than the statewide average (26%). Data Source: Revenue and Expenditure Statements, Arkansas Legislative Audit

33 Constant 2015 Dollars (Millions) Columbia County Major Category Expenditures, $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $ Law Enforcement & Public Safety Highways & Streets General & Other Law enforcement and public safety expenditures in Columbia County increased 70%, from $2 million in 1999 to $3.4 million in There was a significant increase (26%) in highways and streets spending in the county, from $973,600 in 1999 to $1.2 million in General and other spending declined slightly, from $5 million in 1999 to $4.9 million in 2015, or 2%. Data Sources: Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

34 Columbia County Per Capita Major Category Expenditures Constant 2015 Dollars $1,200 $1,000 $800 $600 $400 $200 $ Law Enforcement & Public Safety Highways & Streets General & Other Trends in per capita major category expenditures were similar to the overall trends discussed on the previous slide. However, population decline caused the per capita measures to grow at a faster rate/decrease at a slower rate than the overall measures. General & other per capita spending in Columbia County was $202 in 2015, more than highways & streets ($143) and law enforcement & public safety ($139) expenditures. Data Sources: Population Estimates, U.S. Census Bureau; Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

35 Per Capita Public Safety Expenditures, 2015 Data Sources: Population Estimates, U.S. Census Bureau; Revenue and Expenditure Statements, Arkansas Legislative Audit

36 Change in per Capita Public Safety Expenditures, Data Sources: Population Estimates, U.S. Census Bureau; Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

37 Per Capita Road Expenditures, 2015 Data Sources: Population Estimates, U.S. Census Bureau; Revenue and Expenditure Statements, Arkansas Legislative Audit

38 Change in per Capita Road Expenditures, Data Sources: Population Estimates, U.S. Census Bureau; Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

39 Columbia County Road Expenditures Per County Road Mile, Road expenditures per county road mile in Columbia County were less than the statewide average in 15 of 17 years between 1999 and During the same period, road expenditures per county road mile increased 64% in the county compared to growth of 52% statewide. In 2015, road expenditures per county road mile in the county were $3,600, about $200 less than the statewide average ($3,800). Data Sources: Revenue and Expenditure Statements, Arkansas Legislative Audit; Road & Street Report, Arkansas Highway and Transportation Department

40 Constant 2015 Dollars (Millions) Columbia County Minor Category Expenditures, $4.5 $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $ Health & Social Services Recreation & Culture Capital Outlay Debt Service Health & social services expenditures in Columbia County increased 9%, from $90,100 in 1999 to $98,600 in Recreation & culture spending in the county fluctuated near $500,000 in most years between 1999 and 2015, but was between $1 million and $1.4 million from 2007 to Capital outlay expenditures decreased from a high of $4.1 million in 2000 to $0 in Debt service spending in Columbia County decreased from a high of $1.2 million in 2004 to $0 in Data Sources: Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

41 Columbia County Per Capita Minor Category Expenditures Constant 2015 Dollars $180 $160 $140 $120 $100 $80 $60 $40 $20 $ Health & Social Services Recreation & Culture Capital Outlay Debt Service Trends in minor expenditures per capita were similar to the overall trends on the previous slide. However, population growth in Columbia County cause the per capita measure to grow at a faster rate/decrease at a slower rate than the overall measures. Recreation & culture per capita expenditures were $21 in 2015, more than health & social services ($4) and debt service and capital outlays ($0). Data Sources: Population Estimates, U.S. Census Bureau; Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

42 Columbia County

43 Constant 2015 Dollars (Millions) Columbia County Total Property Assessments, Property assessments in Columbia County increased 51%, from $348.5 million in 1999 to $524.6 million in Data Sources: Assessed Values, Arkansas Assessment Coordination Department; South Urban CPI, Bureau of Labor Statistics

44 Constant 2015 Dollars Columbia County Per Capita Property Assessments, $25,000 $20,000 $15,000 $10,000 $5,000 $0 Columbia County State Per capita property assessments in the county exceeded the statewide average in 9 of 17 years between 1999 and Trends in per capita property assessments were similar to the overall trends discussed on the previous slide, but population decline caused the per capita measures to increase at a quicker rate/decrease at a slower rate than the overall measures. Per capita property assessments in the county were $21,700 in 2015, about $5,800 more than the statewide average ($15,900). Data Sources: Assessed Values, Arkansas Assessment Coordination Department; South Urban CPI, Bureau of Labor Statistics; Population Estimates, U.S. Census Bureau

45 Constant 2015 Dollars (Millions) Columbia County Total Retail Sales, *Due to rounding, bars may appear slightly higher or lower than the values stated on this slide. Retail sales in Columbia County decreased 14%, from $228.7 million in 1972 to $197 million in Data Sources: Census of Retail Sales, U.S. Census Bureau; South Urban CPI, Bureau of Labor Statistics

46 Constant 2012 Dollars Columbia County Per Capita Retail Sales, $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $ Columbia County *Due to rounding, bars may appear slightly higher or lower than the values stated on this slide. Per capita retail sales in the county were below the statewide average every year between 1972 and Trends in per capita retail sales were similar to the overall trends discussed on the previous slide, but population decline caused the per capita measures to increase at a quicker rate/decrease at a slower rate than the overall measures. Per capita retail sales in the county were $8,100 in 2012, about $4,400 less than the statewide average ($12,500). State Data Sources: Census of Retail Sales, U.S. Census Bureau; South Urban CPI, Bureau of Labor Statistics; Population Estimates, U.S. Census Bureau

47 Capacity: Capacity and Effort The maximum amount that can be produced when all the resources in an economy are employed as fully as possible. Capacity constraints can be caused by lack of investment and skills shortages. Spare capacity can be caused by lack of demand. Effort: The amount to which a county utilizes its ability to generate revenue through taxation.

48 Capacity: Property Tax Capacity and Effort High capacity = County s per capita property assessments were above the state average. Low capacity = County s per capita property assessments were below the state average. Effort: High effort = County s millage rate was above the average of Arkansas counties. Low effort = County s millage rate was below the average of Arkansas counties.

49 Property Tax Capacity & Effort, 2015 Data Sources: Population Estimates, U.S. Census Bureau; Property Assessments and Millage Rates, the Arkansas Assessment Coordination Department

50 Capacity: Sales Tax Capacity and Effort High capacity = County s per capita retail sales were above the state average. Low capacity = County s per capita retail sales were below the state average. Effort: High effort = County s sales tax rate was above the average of Arkansas counties. Low effort = County s sales tax rate was below the average of Arkansas counties.

51 Sales Tax Capacity & Effort, 2012 Data Sources: Census of Retail Sales and Population Estimates, U.S. Census Bureau; South Urban CPI, Bureau of Labor Statistics; Sales Tax Rates, Arkansas Department of Finance and Administration

52 Options for Providing Services to Columbia County Residents Increase cost effectiveness Improve management and productivity Explore possibility of privatizing services Consider intergovernmental agreements to offer shared services Increase revenue Alternative (new) revenue sources User charges, shift tax burden to non-residents Expand the tax base Increase tax rates Reduce Services

53 Contact For more information and assistance on county government finance options, contact: Jerri Lephiew, CEA - Staff Chair 206 West Calhoun St. Magnolia, AR Tel: , Fax: Visit Our Website: The University of Arkansas System Division of Agriculture offers all its Extension and Research programs and services without regard to race, color, sex, gender identity, sexual orientation, national origin, religion, age, disability, marital or veteran status, genetic information, or any other legally protected status, and is an Affirmative Action/Equal Opportunity Employer.