Second-quarter collections of the city of Hot Springs' 1% general fund sales tax sustained the modest pace that concluded the first quarter.
The city reported a 4.44% increase in April collections, the second straight year-over-year increase of less than 5%. The city realized double-digit year-over-year gains in 11 of the 12 months from March 2021 to February 2022. This March's 3.76% gain ended five straight months of double-digit increases. April marked the 14th consecutive month of year-over-year gains.
The $4,300,745 the tax collected during the first quarter surpassed the same period of 2021 by 12.07%, or $463,305, on the strength of a brisk February. Collections were up more than 25%, as a winter storm closed city offices, schools and many businesses for about a week in February 2021.
The $5,848,874 the tax collected during the first four months of 2022 surpassed the same period of 2021 by 9.95%, or $529,172. Collections have outpaced the 2022 budget's revenue forecast by 5.54%, or $306,974. The budget projected $17,432,999 in collections for the general fund, a 2% increase from last year's record total.
Monthly financial statements the Hot Springs Board of Directors tabled last week showed general fund revenue surpassed expenses by $2,825,783 through four months. Net revenue through April beat the same period of 2021 by more than $1.5 million, or 130%.
Double-digit gains in collections of the 3% sales tax the Hot Springs Advertising and Promotion Commission levies on prepared food and lodging in the city continued in April, increasing by 25.10%, or $179,993, compared to the previous April. The $2,992,045 the tax collected during the first third of the year beat the same period of 2021 by 25.51%, or $608,279.
The local economy added jobs on a year-over-year basis for the 14th straight month in May, according to the U.S. Bureau of Labor Statistics' preliminary jobs report. The Hot Springs Metropolitan Statistical Area added 900 jobs. The 39,500 jobs were the most since March 2020. More than 1,100 jobs a month have been added on average since last April.
The year-plus recovery followed a 12-month contraction from April 2020 to March 2021, with the metro area losing more than 2,400 jobs a month on average.
The metro area had a 3.8% unemployment rate in April, according to BLS' preliminary report. It was the lowest of the year and ninth straight month below 5%. The 41,009 people in the labor force were the most since last summer. BLS defines the civilian labor force as people 16 and older who are working or actively looking for work.