Title
Recommendation to Accept the Quarterly Sales Tax Report for the Period Ending September 30, 2014 Collected During the Period April 1, 2014 to June 30, 2014. (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 September 30, 2014 Collected During the Period April 1, 2014 to June 30, 2014
BACKGROUND
This report summarizes the sales tax transactions for the period April 1 through June 30, 2014, which is the basis for sales tax revenues received by the City between July 1, 2014, and September 30, 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 8% of total budgeted revenues for Fiscal Year 14-15. Taxable sales transactions in Alameda increased approximately 18%, or $300,000, 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 61%, or $1.2 million, of the quarter's sales transactions. The top 100 businesses represent approximately 85%, or $1.7 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:
Overall the City saw a good quarter of sales tax revenue. There was a 13% increase in sales combined with a 5% sales tax adjustment in the City's favor to account for the 18% increase in the current year's quarter over last year's similar quarter. The General Consumer Goods category saw increases in discount department sales, specialty stores, shoe stores, and family apparel while sporting goods and department stores were slightly down during the quarter. Business and Industry saw increases due to strong sales in the medical/health sectors and industrial equipment sales. Restaurants and Hotels continue to see increases in the casual and fine dining sectors, and in quick/fast restaurants. Building & Construction saw an increase due to increases in material sales and services.
The following is a summary of sales tax by geographic area, in comparison with the same quarter of the prior fiscal year:
The Park & Webster Streets retail areas and Neighborhood Development Districts continue to see solid sales from their restaurants and service stations. The Marina Village Business Park and Alameda Point also made a solid turnaround in sales in the recreational and business services compared to last year. The North Waterfront Sector made a dramatic turnaround in marine related sales and business services. Harbor Bay Business Park continues to have healthy growth in the health and light industrial sectors.
As of September 30, 2014, fiscal year sales tax revenues as recorded in the City's General Fund were approximately $633,000 or 11%, of the $5.7 million budgeted (excluding Prop 172 sales tax funds) for Fiscal Year 14-15. Actual collections received during the quarter are slightly behind last year's collections due to remittance delays from the County. Actual collections received after September 30, 2014 for the current quarter are slightly ahead of last year's collections.
This quarter's report includes a supplemental section containing the following information:
1. Major Industry Groups - Current Quarter Comparison
2. Major Industry Groups - 13 Year History
3. Sales by Geographic Area - 13 Year History
4. Sales Tax Surplus/Gap Comparison by Retail Category
5. Quarterly Sales Comparison of Cities in Alameda County
6. Per Capita Sales Comparison of Cities in Alameda County
7. City to State Comparison by Sector - Fiscal Year 2013-14
8. Statewide Sales Tax Update
9. 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 September 30, 2014 collected during the period April 1, 2014 to June 30, 2014.
Respectfully submitted,
Juelle-Ann Boyer, Interim Finance Director
By,
Brad Farmer, Finance Supervisor
Exhibit:
1. Quarterly Sales Tax Report Supplemental Information
cc: Robb Ratto, PSBA Sandip Jariwala and Michelle Berner, WABA
Tony Kuttner, GABA Mark Sorensen, Alameda Chamber of Commerce