Nixa sales tax revenues fall short

Coralee Patrick, Nixa’s city clerk, said that sales tax revenues in April were down 2 percent compared to the same time last year.

“We just budgeted a 3 percent increase, so 2 percent down from last year made it 5 percent below what we’d budgeted,” Patrick said, adding that the 2 percent decrease is about $36,000.

Nixa officials expect $1,825,000 in 2005 sales tax revenue. In 2004, Nixa collected $1,767,672 in sales tax revenues, up 3.5 percent from 2003.

Mayor Doug Marrs isn’t worried about the decline.

“Even if we stayed where we are today, it wouldn’t be anything that would alarm us,” he said.

A new Wal-Mart Supercenter in neighboring Ozark is one reason for Nixa’s sales tax revenue decline, Marrs said.

Both Nixa officials and Wal-Mart officials declined to share information on the store’s revenues.

“We’ll grow out of that shortly, I believe,” Marrs added. “Last year we saw some dropoff and a little bit more the first part of this year, but I think we’re starting to grow out of it.”

Even though the mayor isn’t concerned, some city officials are puzzled by what seems to be the city contradicting itself.

“To put a finger on what’s causing the lack of sales, and then in the same breath recognize all the development that is occurring within our community, I don’t have an answer,” said Nixa’s City Administrator Brian Bingle.

“We have a significant amount of commercial construction occurring. It’s the occupancy of those buildings that we’re anxiously anticipating,” Bingle said.

In 2004, 28,800 square feet of new commercial retail space was constructed in Nixa. Year-to-date for 2005, 32,244 square feet has been built.

The percentage of new commercial retail space that remains unoccupied was not available.

The city is working on ways to encourage citizens to buy in Nixa. The city is paying Buxton Group of Ft. Worth, Texas, $63,000 for a retail market analysis of the area within a 10-minute drive of Nixa. The study will help determine whether Nixa has the sustainability for new commercial activity, Bingle said.

“We certainly feel we could enhance shelf space with regards to the existing retail commercial, of trying to entice them to bring other types of products onto their shelves,” he said.

Marrs said that he would like to see fine clothing and shoe stores, as well as more restaurants come to Nixa.

Bingle said a preliminary analysis suggests that Nixa has the retail potential of $733 million in sales within that 10-minute travel time.

However, the city loses potential sales tax revenues each weekday.

“We’ve got a significant amount of leakage as a result of our daytime population working outside of our city,” Bingle said, adding that about 70 percent of residents work outside of Nixa.

Nixa’s Economic Development Committee and city staff are conducting an additional study to assist existing retailers. They’re mailing questionnaires to 600 businesses to determine if employers are interested in growing their businesses and, if so, what the city might do to help grow their employment bases and increase productivity.

“For example, is it infrastructure? Is it venture capital or small-business loans that could be made available to them?” Bingle said.