Title
Recommendation to Accept the Quarterly Sales Tax Report for the Period Ending June 30, 2016 Collected During the Period January 1, 2016 to March 31, 2016. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Accept the Quarterly Sales Tax Report for the Period Ending June 30, 2016 Collected During the Period of January 1, 2016 to March 31, 2016
BACKGROUND
This report summarizes the sales tax receipts for the point-of-sales activity for the period of January 1 through March 31, 2016. This is the basis for sales tax revenues received by the City between April 1, 2016 and June 30, 2016. For the purposes of this report, sales tax revenues exclude Proposition 172 funds, the allocation from statewide pool for public safety services.
DISCUSSION
For the 2015-16 fiscal year, sales tax is the second largest single source of General Fund revenues for the City, representing approximately 11% of the total budgeted revenues. As of June 30, 2016, the General Fund has received about $6.1 million (83% of budget) in sales tax revenues. The General Fund received $5.6 million during the same period last fiscal year. This represents a 9% increase in year over year sales tax revenues received between July 2015 and June 2016.
Total sales tax revenue recognized in Fiscal Year (FY) 2015-16, including the final payment for the "triple flip" unwinding, is $9.6 million. This is 4% greater than total sales tax revenue recognized in FY 2014-15.
The following is a summary of sales tax performance by key economic categories in comparison to the same quarter of the prior year:
There was a decrease of approximately $358,000 in sales tax revenues for the first quarter of 2016 compared to the same quarter of the previous year. A one-time reporting aberration caused or exaggerated declines in multiple business and industry segments. Similar aberrations affected building and construction category r...
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