Title
Recommendation to Accept the Quarterly Sales Tax Report for the Period Ending March 31, 2015 Collected During the Period October 1, 2014 to December 31, 2014. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim City Manager
Re: Accept the Quarterly Sales Tax Report for the Period Ending March 31, 2015 Collected During the Period October 1, 2014 to December 31, 2014
BACKGROUND
This report summarizes the sales tax transactions for the period October 1 through December 31, 2014, which is the basis for sales tax revenues received by the City between January 1, 2015 and March 31, 2015. For purposes of this report, sales tax revenues exclude Proposition 172 funds, the ½ cent 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 14.5%, or $262,221, from the same quarter in the prior fiscal year. This increase is shown in the table below, which reflects sales by geographic area.
The top 25 businesses in Alameda represent approximately 57%, or $1.2 million, of the quarter's sales transactions. The top 100 businesses represent approximately 79%, or $1.6 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's total sales tax revenue increased 14.5% over the prior year's quarter of sales tax revenue. Transportation and Fuel slid due to declining fuel costs overall. Business and Industry continue to see strong sales in the medical/health sectors, governmental/social organizations, and business services. Building & Construction continues to see reductions due to lower construction 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 North Streets continue to see consistent sales from their restaurants and service stations while in the Park/Webster South Streets are experiencing decline in sales of restaurants, specialty stores, and in convenience stores. Harbor Bay Business Park continues to have healthy growth in the health sector, and sporting goods stores. Clement and Blanding Avenues continue to have solid sales from their service stations, light industrial sales, and variety stores. The Marina Village Business Park and Alameda Point continue to have strong sales in recreational, industrial and business services. In particular, a new business opened in the Marina Village area, which accounts for the significant change in that area as compared to the previous year. Bridgeside Center and North Waterfront continue to have increasing sales in recreational and business services. The Marina Village Shopping Center continues to have increased sales from their restaurants and variety stores.
As of March 31, 2015, the fiscal year sales tax revenues, as recorded in the City's General Fund, were approximately $3.9 million or 69%, of the $5.7 million budgeted (excluding Prop 172 sales tax funds) for Fiscal Year 14-15. Actual collections received after March 31, 2015 for the current quarter are actually slightly ahead of last year's collections.
This quarter's report includes a Supplemental Information section containing the following statistics:
1. Major Industry Groups - Current Quarter Comparison
2. Major Industry Groups - 13 Quarter 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 - Calendar Year 2014
8. City of Alameda Sales Tax Update
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 March 31, 2015 Collected During the Period October 1, 2014 to December 31, 2014.
Respectfully submitted,
Elena Adair, Finance Director
By,
Brad Farmer, Acting Financial Services Manager
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