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HomeMy WebLinkAboutCouncil Agenda StatementCITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 6, 2011 AGENDA ITEM NO. ITEM TITLE: National City Sales Tax Update — Second Quarter 2011 PREPARED BY: Leslie Deese, Asst. City Man PHONE: 336-4240 EXPLANATION: DEPARTMENT: City Manager APPROVED BY: BACKGROUND National City has an on -going contract with Hinderllter, de Llamas & Associates (Hdl Companies) for revenue management. Staff meets with a representative of Hdl on a quarterly basis to review sales tax data and trends within the City and Statewide. The Hdl companies also review National City's property tax data and provides an annual report of the Redevelopment Project areas. NEWSLETTER SUMMARY Sales tax for the Second Quarter of 2011 showed a 10% increase in comparison to the same quarter last year but reporting aberrations skewed the data. Excluding anomalies, actual sales gained 4.7%. Revenues from the voter approved Proposition ``D" were up 5.2% after factoring out onetime reporting aberrations. Over the same period, taxable sales for all of San Diego County was up 9%; statewide sales grew 9.7%. California's local sales and use tax revenue for the second quarter of 2011 were 9.4% higher than the same quarter of 2010 after payment aberrations were removed. Second Quarter fuel sales represented 38% of the total statewide sales tax increase. Stimulus funded infrastructure projects produced temporary gains in sales tax on concrete, asphalt and aggregates but are expected to wane later in the year as funding is depleted. The attached Newsletter provides additional detail on the economic front. This newsletter is also available on the City's website. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Accept and file the newsletter BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: National City Sales Tax Update Newsletter — Second Quarter 2011