Title
Recommendation to Accept the Quarterly Sales Tax Report for the Period Ending December 31, 2014 Collected During the Period July 1, 2014 to September 30, 2014. [City Council] (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 December 31, 2014 Collected During the Period July 1, 2014 to September 30, 2014
BACKGROUND
This report summarizes the sales tax transactions for the period July 1 through September 30, 2014, which is the basis for sales tax revenues received by the City between October 1, 2014, and December 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 8% of total budgeted revenues for Fiscal Year 14-15. Taxable sales transactions in Alameda increased approximately 17%, or $290,000, 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 54%, or $1.1 million, of the quarter's sales transactions. The top 100 businesses represent approximately 78%, or $1.5 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 17% increase in sales tax in the current year's quarter over last year's similar quarter. The General Consumer Goods category saw increases in general retail sales. Business and Industry continue to see strong sales in the medical/health sectors, business services and light industrial sales. Restaurants and Hotels continue to see increases in the casual, fine dining sectors, and in clubs/amusement places. Building & Construction continue to see 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 continues to see strong sales in business services and the Harbor Bay Business Park continues to have healthy growth in the health sector. This report contains the new area labeled Alameda Landing. Alameda Landing and its new businesses are showing a substantial increase over the same quarter of the previous year. The first commercial venture opened in December 2013.
As of December 31, 2014, fiscal year sales tax revenues as recorded in the City's General Fund were approximately $2.3 million or 40%, of the $5.7 million budgeted (excluding Prop 172 sales tax funds) for Fiscal Year 14-15. This is in line with expectations and budgeted assumptions for the current year.
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 Trend Information
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is in conformance with the Alameda Municipal Code and all policy documents.
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 December 31, 2014 Collected During the Period July 1, 2014 to September 31, 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
Tony Kuttner, GABA
Sandip Jariwala and Michelle Berner, WABA
Mark Sorensen, Alameda Chamber of Commerce