Even in the cold, Super Bowl delivered more tax revenue to DFW

By Gordon Dickson

gdickson@star-telegram.com

Despite two winter storms that crippled North Texas during Super Bowl week, many cities enjoyed a healthy shot in the arm from sales tax revenue, a state report shows.

Arlington, Fort Worth, Grapevine, Hurst, Mansfield and Southlake -- cities that hosted Super Bowl events or have regional shopping attractions -- saw their sales tax payments collectively go up 4.4 percent in February from a year earlier, according to a Star-Telegram analysis of figures released Wednesday by state Comptroller Susan Combs' office.

North Texas officials said they were pleased with the revenue, even though it wasn't quite the windfall many had hoped for in the days leading up to the big game.

"Any number that's up makes me happy. I was afraid it was going to be a negative number," Arlington Mayor Robert Cluck said.

In Arlington, which hosted the game at Cowboys Stadium, February sales tax revenue was $5.8 million, up 4.5 percent from a year earlier. After paying special tax incentives to businesses, the city will collect $3.26 million, Cluck said -- roughly $139,000 more than in February 2010.

Of the six cities analyzed, only Southlake showed a decrease. Its sales tax collections dropped 5.2 percent.

Statewide, sales tax revenue has increased for 12 straight months, showing that "strong consumer and business spending helped increase revenue in large sectors of the economy such as retail, manufacturing and the oil and gas industry," Combs said in a statement.

Statewide, February sales tax revenue was up $1.6 billion, or 9.9 percent, from a year earlier, she said.

The figures do not reflect hotel rooms, car rentals or alcohol sales, which are taxed separately.

Super Bowl impact

When severe ice and snow socked North Texas, the concern was that fans and their wallets might not make it here in time to spend money at restaurants, hotels and other businesses. But positive economic news has continued to trickle in since the Super Bowl.

If any city was poised for a letdown, it was Fort Worth. Four days of ice and snow put a damper on attendance at Sundance Square, where ESPN broadcast 80 hours of live television and radio programming.

But Fort Worth, which also housed the Pittsburgh Steelers during Super Bowl week, collected $6.9 million in sales tax revenue, 4 percent more than a year earlier.

"I know higher numbers would be better news, but anything that's [not a decline in revenue] is good news," Fort Worth Mayor Mike Moncrief said. February sales taxes were down from January, when the city took in $7.6 million. But, the mayor said, "I'll certainly take our 4 percent increase over what some cities on both coasts are experiencing."

Concerns about state budget woes, cuts in education and possible teacher layoffs also might have kept people away, said Horatio Porter, Fort Worth budget director. "Consumers tie up their purse strings more than usual" when they hear that type of news, he said. "It's hard to quantify the impact of the weather and everything else in one day."

Porter said a more detailed analysis of consumer spending will be available in the coming days. Statistics outlining hotel occupancy tax collections will also be available this month.

The city is expecting a bump in sales tax receipts this week, with more than 400,000 expected for the NASCAR races at Texas Motor Speedway.

"We continue to be blessed with signs showing recovery, and there are growth indicators as well," Moncrief said.

Southlake Mayor John Terrell said he didn't know what to make of the 5.2 percent sales tax revenue drop in his city. Southlake Town Square was hopping the night before the Super Bowl, he said.

"The owner of the Steelers stayed at our Hilton," Terrell said. "We had a very large Super Bowl party the Saturday night before the game. It was just packed."

Town Square continues to grow, he said, and the city is discussing adding garden district lofts to increase the residential presence downtown.

The sales tax figures released on Wednesday do not include any reimbursements to the cities out of the state's major events trust fund. Cities have 90 days after the game to deposit their $4.3 million portion to the fund; the state will deposit $26.8 million. That money will be used to reimburse cities for Super Bowl-related expenses such as police, fire and emergency personnel.

Small cities, big bucks

Some smaller cities in Tarrant County fared even better.

In Grapevine, where hundreds of people stayed in hotels and attended Super Bowl-related events, revenue climbed 7 percent. That city collected $2.3 million.

Euless saw a 12 percent bump in sales tax revenue, to $738,000.

"Go up to Highway 121, where Lowe's is. It's jam-packed in there," said Euless Mayor Mary Lib Saleh, who believes "people are spending money again."

Also seeing tax revenue increase in February were Hurst, 4.7 percent; Mansfield, 9.3 percent; and North Richland Hills, 1.8 percent.

Bedford, however, reported a 0.9 percent decline, to $622,000. City officials are studying the drop, said Clifford Blackwell, administrative services director. He said they hadn't noticed abrupt changes, such as large numbers of businesses closing.

"In all likelihood the businesses are still there and thriving; they just didn't do the same amount of sales as last year," he said. "It may be the recession, or just consumer choice."

Dallas, which hosted the National Football League as well as the 4,000-strong news media contingent, reported a 6.2 percent bump in sales tax receipts.

Irving, where the Green Bay Packers stayed, posted an 8.5 percent increase.

Later this week, Combs' office will send April sales tax allocations of $279.4 million to Texas cities, 5.2 percent more than a year earlier. The comptroller also reported that this year, city sales tax allocations are running 6.7 percent higher than last year.

Details on the April sales tax payments to cities, counties and other entities are available at www.window.state.tx.us.

Staff writers Andrea Ahles, Max B. Baker, John Henry and Steve Norder contributed to this report.

Gordon Dickson, 817-390-7796

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