Title
Recommendation to Accept the Quarterly Sales Tax Report for the Period Ending March 31, 2017 Collected During the Period October 1, 2016 to December 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 March 31, 2017 Collected During the Period of October 1, 2016 to December 31, 2016
BACKGROUND
This report summarizes the sales tax receipts for the point-of-sales activity for the period of October 1 through December 31, 2016. This is the basis for sales tax revenues received by the City between January 1, 2017 and March 31, 2017. 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% of the total budgeted revenues. As of March 31, 2017, the General Fund has received approximately $7.1 million in sales tax receipts. The General Fund received close to $5.4 million in sales tax receipts during the same period last fiscal year. This represents a 31% increase in year over year sales tax revenues received between July 2016 and March 2017. The significant difference between the two years' revenue to date was due to a large underpayment in 2015/16 that was corrected with a double payment that inflated the Business and Industry category this year. In addition, the State's 25% sales tax shift ("triple flip") clean up payment covering the first two quarters of the prior fiscal year was not received by the City until April 2016. Further, noted gains were realized in the business and industry group, office supplies/furniture, and business services increasing sales tax revenues in the current fiscal year.
4th Quarter 2016 to 4th Quarter 2015 Comparison
On the fol...
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