WASHINGTON: Budget managers are forecasting more than $2.7 million to come in next year from Washington County’s recent sales tax increase to fund arts and parks, with revenues already about 20 percent higher than originally anticipated when voters approved the increase last year.
The Recreation, Arts and Parks Tax went into effect April 15, with previous estimates suggesting it would bring in about $2.2 million annually. But sales tax revenues have been better than originally anticipated, and the county’s preliminary budget for 2016 is forecasting another $500,000 total.
“We don’t quite have half a year’s worth of history to work with,” County Clerk Kim Hafen said, noting that the exact revenues are difficult to anticipate on such a new tax. “We were just starting from scratch. The first significant payments didn’t start coming in until June.”
Washington County voters narrowly approved the RAP Tax in last November’s election, agreeing to the extra cost for a 10-year period.
It added a 1-cent tax increase for every $10 spent on non-food items, and was initially expected to cost residents about $16 per person, per year. Supporters of the tax noted that a significant portion of the revenue — about a third — would be paid by tourists and other visitors.
Tourism statewide has been higher than ever this year, especially in southwest Utah. High-traffic destinations like Zion and Bryce national parks, state parks and historic sites are reporting a record year for visitation.
Zion alone is on pace to see some 4 million visitors this year. The revenue increases could give local governments breathing room as they try to decide how to spend the money.
While all of the revenue comes through Washington County, the majority is then divvied out to area municipalities based on population and where the actual sales originated.
The City of St. George was expected to get the largest share of the revenue, but officials have all along expected their original projection of $1.2 million annually would end up averaging something more like $1.5 million, Mayor Jon Pike said on Wednesday.
Shortly after the tax passed last year, Pike quickly announced plans to bond against the bulk of the anticipated revenues in order to get parks projects built more quickly.
In September, the St. George City Council approved up to $9 million to go toward an assortment of projects, including an estimated $2.3 million for new soccer facilities at the Little Valley park complex, $1.4 million for new pickleball courts, $290,000 to build a mountain bike skills course and $262,000 for new restrooms and other improvements at the aging downtown Dixie Sun Bowl.
Additional funds could be used at some point on a new community park on the west side of the city, as well as new softball and baseball fields. As revenues come in from the RAP tax they will be used to pay off the bond, which was acquired at 1.8 percent interest.
The rest of the RAP tax revenues received are pegged to go toward grants for area arts groups and to serve as a buffer in case the tax generated less money than expected and extra funds are needed to pay off the bond obligations.
“We felt like that way, if we did have another downturn and revenues weren’t quite what we were hoping, we would have some leeway,” Pike said.
