Title
Recommendation to Accept the Quarterly Sales Tax Report for the Period Ending December 31, 2016 Collected During the Period July 1, 2016 to September 30, 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 December 31, 2016 Collected During the Period of July 1, 2016 to September 30, 2016
BACKGROUND
This report summarizes the sales tax receipts for the point-of-sales activity for the period of July 1 through September 30, 2016. This is the basis for sales tax revenues received by the City between October 1, 2016 and December 31, 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 2016-17 fiscal year, sales tax is the second largest source of General Fund revenues for the City of Alameda, representing approximately 11.6% of the total budgeted revenues. As of December 31, 2016, the General Fund has received approximately $3.1 million (32.5% of budget) in sales tax revenues. The General Fund received $2.4 million during the same period last fiscal year. This represents a 28% increase in year over year sales tax revenues recognized between July and December. The significant increase was due to a large double payment that inflated business and industry. The double payment was a correction of an underpayment in prior year.
The following is a summary of sales tax performance by key economic categories in comparison to the same quarter of the prior year.
The City showed a slight decrease of $62,000 in sales tax revenues for the third quarter of 2016 compared to the same quarter of the previous year. As previously mentioned, there was a significant increase due to a large double payment that inflated Business and Industry, which was off-set by correction of prior overpayment in the General...
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