WALNUT RIDGE, Ark. The city of Walnut Ridge is preparing and telling residents that financial changes to their budget as they are expecting a significant lose in sales tax money.
“Because fuel taxes are going to be so low, price of fuel is dropping, people aren’t driving so the state turn back for road funds is going to be cut and they’re predicting a 40-50% reduction from now to the end of the year,” says Mayor Charles Snapp. “That reduction alone would cost Walnut Ridge $110,000.”
The city posted a letter on their Facebook page telling residents about the expected loss in sales tax after the Arkansas association of counties sent an email saying to expect a 26.5% loss across the state.
While walnut ridge did see an increase in sales tax for February, they don’t feel optimistic about March.
Mayor Snapp says they will find out next month how big the potential loss sales tax revenue from March will be due to covid-19.
The city has a reserve fund that they haven’t had to dip into yet but will needed.
“We will not know how severe the sales tax cuts going to be for March until May 23rd around there,” said Snapp. “If we do not see recovery by the end of this year, the city will be able to make it that long. So, you are looking at eight months.”
Mayor Snapp is prepared to make changes to the budget come may including cutting back on expenses like road repairs.
He is also encouraging his residents to fill out their Census as it determines the amount of money and funding the town will receive.