More Businesses, Residents, Traffic

FARMINGTON -- The city of Farmington set a new record in 2017 for revenue received from its local 1-percent sales tax.

Actually, Farmington's sales tax revenue has increased every year at least since 2006, going from $267,435 in 2006 to a record $770,376 in 2017, a 188 percent increase over the past 13 years.

In eight of those years, the percentage increase from one year to the next was more than 5 percent. For five of those years, the percentage increase was more than 10 percent.

The highest percentage increase for one year was from 2013 to 2014. In 2013, Farmington collected $452,601. The next year in 2014, the city received $561,499, a 24 percent increase in tax revenues.

Mayor Ernie Penn said he believes three factors are coming together to bring in more tax revenue: more businesses, population growth and increasing traffic going through town.

"You start off with commercial growth and then the increase in population means there are more people to shop in Farmington," Penn said. "Traffic through Farmington has dramatically increased the past 10 years and I think the driving force is that many people are shopping in Farmington on their way home."

For the past five years, a number of larger businesses have opened in Farmington.

The new Walmart Neighborhood Market was a "huge addition" for the community, Penn said, adding he thinks a lot of people living in western Washington County and eastern Oklahoma shop at Walmart on their way home.

Walmart opened in 2014, along with Casey's General Store and Domino's Pizza. In 2012, Dollar General moved into a new larger building. Kum & Go opened in 2015, Dairy Queen in 2016, and the latest franchise, Taco Bell, opened last year.

This doesn't include smaller businesses and restaurants that have opened in Farmington the past five years.

The new businesses are giving people more choices for shopping, in particular places to eat.

In addition, Penn noted that the city's retail centers, such as the ones on Southwinds Drive, are filled with tenants. Even if these businesses don't collect the city's 1 percent sales tax, they are bringing people into Farmington, Penn said.

"The revenue is pretty awesome right now," Penn said. "We want to have a steady increase because that's what bondholders look for when we issue bonds."

Lora Randall, manager at the Farmington Neighborhood Market, said she couldn't talk about sales figures at the store but said she could say, "We've seen a steady sales increase every year since we've been open."

Kendra Smith, one of the owners of Dairy Queen, basically gave the same statement. She said the restaurant is seeing a steady increase in revenues and customers.

"We've loved the opportunity to be in Farmington," Smith said.

Farmington's local tax rate is 2 percent. Of this 1 percent goes to the general fund. The second 1-cent sales tax is divided: one-half of the revenue is being used to pay off two bond issues for parks and street improvements and the other one-half goes into the city's general fund.