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HomeMy WebLinkAboutA200CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: February 7, 2012 AGENDA ITEM NO. ITEM TITLE: !National City Sales Tax Update — Third Quarter 2011 PREPARED BY: Tina Norrdin, FSO DEPARTMENT: Financ PHONE: 19-336-43311 APPROVED BY: EXPLANATION: BACKGROUND National City has an on -going contract with Hinderliter, 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 Due to a multi -quarter deduction to correct a prior allocation errors in the building and construction group, sales tax for the third quarter of 2011 came in 2.9% lower than the same quarter one year ago. Excluding this correction, actual sales tax receipts were up 6.5%. Revenues from voter -approved Proposition "D" generated an additional $2,268,404 and equated to a 9.2% increase over a year ago. Although 2011-12 is shaping up to be a period of strong sales tax recovery, most analysts believe that the pace of growth will slow in 2012-13 with the only disagreement being over the degree of slowdown. The attached Newsletter provides additional detail on the economic front. This newsletter is also available on the City's website. FINANCIAL STATEMENT: ACCOUNT NO. Nllokl ENVIRONMENTAL REVIEW: NIA ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Accept and file the newsletter j BOARD / COMMISSION RECOMMENDATION: NIf ATTACHMENTS: National City Sales Tax Update Newsletter — Third Quarter 2011