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

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2 Scott County

3 How can Scott 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 Scott County Population Estimates, ,000 10,000 8,000 6,000 4,000 2,000 0 The population of Scott County decreased 6% from 11,000 in 1999 to 10,300 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 Scott County Total Employment Estimates, ,000 5,000 4,000 3,000 2,000 1,000 0 Employment in Scott County decreased from 5,500 in 1999 to 4,700 in 2016 or 13%. 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 Scott County

11 Constant 2015 Dollars (Millions) Scott County Total Revenue & Expenditures, $10 $8 $6 $4 $2 $ 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 Scott County increased 54% between 1999 and 2015, from $4.1 million to $6.3 million. Expenditures increased from $3.7 million in 1999 to $7 million in 2015, a total change of about 89%. Revenue and spending spiked to highs of $8.5 million and $8.3 million, respectively, in County revenue exceeded expenditures in 11 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 Scott County Per Capita Revenue & Expenditures, Constant 2015 Dollars $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 $600 in 2015, $67 less than per capita expenditures ($667). 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 Scott County

18 Share of Total Revenue Scott County Revenue Sources as a Percent of Total Revenue, 1999 and % % 50% 40% 30% 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 significantly, from 65% in 1999 to 45% in Scott County property tax revenue as a share of total revenue was 6% in 1999, and slightly less in 2015 (5%). The share of total revenue from sales tax grew from 0% to 28%. Minor sources of revenue accounted for 28% of total revenue in 1999 and 23% in Data Source: Revenue and Expenditure Statements, Arkansas Legislative Audit

19 Share of Total Revenue Scott County Revenue Sources Compared to State Revenue Sources % Scott County State 40% 30% 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 sales tax in Scott County in 2015 was 28%, higher than the statewide average (24%). The share of total revenue from property tax was 5% in the county in 2015, considerably less than the statewide average of 23%. The share of total revenue from intergovernmental transfers in the county was 45% in 2015, far more than the statewide average (22%). Data Source: Revenue and Expenditure Statements, Arkansas Legislative Audit

20 Constant 2015 Dollars (Millions) Scott County Major Sources of Revenue, $8.0 $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $ Intergovernmental Revenue Property Tax Sales Tax There was no sales tax revenue in Scott County in 1999, but by 2015 sales tax revenue grew to $1.8 million. Property tax revenue grew 18%, from $246,200 in 1999 to $291,600 in Scott County's total intergovernmental revenue increased slightly, from $2.7 million in 1999 to $2.8 million in 2015 (4%) and spiked to a high of $7.1 million in Data Sources: Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

21 Scott County Per Capita Major Sources of Revenue, Constant 2015 Dollars $700 $600 $500 $400 $300 $200 $100 $ 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. Intergovernmental revenue per capita was $271 in Scott County in 2015, more than sales tax ($168) and property tax ($28) 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) Scott County Minor Sources of Revenue, $0.7 $0.6 $0.5 $0.4 $0.3 $0.2 $0.1 $ Officers, Jail & 911 Fees Fines, Forfeitures & Franchise Taxes Commissions & Taxes Apportioned Other Revenue Officers, Jail and 911 Fees increased greatly in Scott County (292%), from $138,700 in 1999 to $543,300 in Commissions and taxes apportioned grew from $382,900 to $415,100 or 8%. Fines, forfeitures and franchise taxes increased 13%, from $169,100 in 1999 to $190,500 in Other revenue fluctuated widely while declining 47%, from $472,200 in 1999 and $249,000 in Data Sources: Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

29 Scott County Per Capita Minor Sources of Revenue, Constant 2015 Dollars $60 $50 $40 $30 $20 $10 $ 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. Officers, jail & 911 fees per capita in Scott County were $52 in 2015, more than commissions & taxes apportioned ($39), other revenue ($24), and fines, forfeitures and franchise taxes ($18). Data Sources: Population Estimates, U.S. Census Bureau; Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

30 Scott County

31 Share of Total Expenditures Scott 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 Scott County increased from 17% in 1999 to 22% in Highways & streets was the largest share of county government spending in 1999 and 2015, and grew during the study period, from 40% to 48%. The share of total spending for general & other expenditures decreased from 26% in 1999 to 20% in Data Source: Revenue and Expenditure Statements, Arkansas Legislative Audit

32 Share of Total Expenditures Scott County Expenditure Shares Compared to State Expenditure Shares % Scott 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. Scott County's share of expenditures from law enforcement and public safety (22%) was far less than the statewide share (39%) in The share of total county expenditures for highways and streets was 48%, significantly greater than the statewide average (24%). The share of total county expenditures for general and other expenditures was 20%, less than the statewide average (26%). Data Source: Revenue and Expenditure Statements, Arkansas Legislative Audit

33 Constant 2015 Dollars (Millions) Scott County Major Category Expenditures, $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $ Law Enforcement & Public Safety Highways & Streets General & Other Law enforcement and public safety expenditures in Scott County increased 153%, from $615,000 in 1999 to $1.6 million in 2015, and spiked to a high of $4.1 million in Highways and streets spending increased 136%, from $1.4 million in 1999 to $3.3 million in 2015, while spiking to a high of $6.1 million in General and other spending grew 49%, from $953,700 in 1999 to $1.4 million in Data Sources: Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

34 Scott County Per Capita Major Category Expenditures Constant 2015 Dollars $600 $500 $400 $300 $200 $100 $ 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. Highways & streets per capita spending in Scott County was $317 in 2015, more than law enforcement & public safety ($148) and general & other ($136) 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 Scott County Road Expenditures Per County Road Mile, Constant 2015 Dollars $8,000 Scott County State $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Road expenditures per county road mile in Scott 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 138% in the county compared to growth of 52% statewide. In 2015, road expenditures per county road mile in the county were $3,800, about the same as the statewide average. Data Sources: Revenue and Expenditure Statements, Arkansas Legislative Audit; Road & Street Report, Arkansas Highway and Transportation Department

40 Constant 2015 Dollars (Millions) Scott County Minor Category Expenditures, $1.8 $1.6 $1.4 $1.2 $1.0 $0.8 $0.6 $0.4 $0.2 $ Health & Social Services Recreation & Culture Capital Outlay Debt Service Health & social services expenditures in Scott County increased 8%, from $62,600 in 1999 to $67,700 in Recreation & culture spending in the county decreased 39%, from $110,800 to $67,700. Capital outlay expenditures decreased from a high of $539,200 in 2000 to $0 in Debt service spending fluctuated between a low of $0 and a high of $1.6 million. Data Sources: Revenue and Expenditure Statements, Arkansas Legislative Audit; South Urban CPI, Bureau of Labor Statistics

41 Scott County Per Capita Minor Category Expenditures Constant 2015 Dollars $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 Scott County cause the per capita measure to grow at a faster rate/decrease at a slower rate than the overall measures. Debt service per capita expenditures were $54 in 2015, more than health & social service and recreation & culture ($6) 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 Scott County

43 Constant 2015 Dollars (Millions) Scott County Total Property Assessments, Property assessments in Scott County increased 22%, from $86 million in 1999 to $105.3 million in Data Sources: Assessed Values, Arkansas Assessment Coordination Department; South Urban CPI, Bureau of Labor Statistics

44 Constant 2015 Dollars Scott County Per Capita Property Assessments, $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 Scott County State Per capita property assessments in the county were below the statewide average every year 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 $10,000 in 2015, about $5,900 less 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) Scott County Total Retail Sales, *Due to rounding, bars may appear slightly higher or lower than the values stated on this slide. Retail sales in Scott County decreased 44%, from $89.8 million in 1972 to $50.4 million in Data Sources: Census of Retail Sales, U.S. Census Bureau; South Urban CPI, Bureau of Labor Statistics

46 Constant 2012 Dollars Scott County Per Capita Retail Sales, $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $ Scott 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 $4,600 in 2012, about $7,900 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 Scott 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: Shaun Rhoades, CEA - Staff Chair 190 West 1st St., Box 7 Waldron, AR Tel: , Fax: Call to 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.