Title
Recommendation to Accept the Quarterly Sales Tax Report for the Period Ending March 31, 2014 Collected During the Period October to December 31, 2013. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Accept the Quarterly Sales Tax Report for the Period Ending March 31, 2014 Collected During the Period January to March 31, 2014
BACKGROUND
This report summarizes the sales tax transactions for the period October 1 through December 31, 2013, which is the basis for sales tax revenues received by the City between January 1, 2014, and March 31 2014. For purposes of this report, sales tax revenues exclude Proposition 172 funds, the allocation from the statewide pool for public safety services.
DISCUSSION
Sales tax continues to be the fourth largest source of General Fund revenue for the City of Alameda, representing approximately 7% of total budgeted revenues for FY13-14. Taxable sales transactions in Alameda increased approximately 2%, or $39,562, from the same quarter in the prior fiscal year. This increase is shown on the table on the following page, which reflects sales by geographic area.
The top 25 businesses in Alameda represent approximately 53%, or $962,141, of the quarter's sales transactions. The top 100 businesses represent approximately 77%, or $1.4 million, of the quarter's sales transactions.
The following is a summary of the key economic categories of sales tax, in comparison with the same quarter of the prior fiscal year:
The General Consumer Goods category saw increases in department sales, family apparel and sporting goods during the quarter. The decrease in Business and Industry fields were due to declines in business to business sales and one-time reallocations to other agencies resulting from sales tax audits. Restaurants and Hotels saw increases in both the casual and fine dining sectors. The decline in Building & Construction resulted from a decline in construction related supplies during the quarter.
The following is a summary of sales tax by geographic area, in comparison with the same quarter of the prior fiscal year:
The South Shore center continued to show growth in the both the retail and restaurant sectors during the holiday season. The Park Street area, both North and South, continued to see solid sales from their restaurants and service stations, while Webster Street sales taxes declined due to a temporary decrease in gas prices during the quarter. The drop in sales at Harbor Bay Business Park resulted from a reduction in business to business sales. The increase in all other areas resulted from one-time negative sales tax adjustments in the prior year.
As of March 31, 2014, fiscal year sales tax revenues as recorded in the City's General Fund were approximately $3.25 million, or 58%, of the $5.6 million budgeted (excluding Prop 172 sales tax funds) for FY13-14. The percentage received is relatively consistent with the prior fiscal year for the same time period.
This quarter's report includes a new supplemental section containing the following information:
1. Major Industry Groups - Current Quarter Comparison and 13 Year History
2. Sales by Geographic Area - 13 Year History
3. Sales Tax Surplus/Gap Comparison by Retail Category
4. Quarterly Sales Comparison of Cities in Alameda County
5. Per Capita Sales Comparison of Cities in Alameda County
6. City to State Comparison by Sector - Calendar Year 2013
7. Statewide Sales Tax Update
8. Statewide Sales Tax Trend Information
ENVIRONMENTAL REVIEW
This activity is not a project and is exempt from the California Environmental Quality Act (CEQA) pursuant to section 15378 (b)(4) of the CEQA Guidelines, because it involves governmental fiscal activities, which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
RECOMMENDATION
Accept the Quarterly Sales Tax Report for the period ending March 31, 2014.
Respectfully submitted,
Fred Marsh, Finance Director
By,
Brad Farmer, Finance Supervisor
Exhibit:
1. Quarterly Sales Tax Report Supplemental Information
cc: Robb Ratto, PSBA Brad Shook and Carolyn Lantz, WABA
Harry Hartman, GABA Mark Sorensen, Alameda Chamber of Commerce