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Home My WebLink AboutFS 2015-04-07 Item 2A - Report - 2014 Fourth Quarter Revenue ReportTO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee FROM: Peggy McCarthy, Finance Director BY: Lily Jue, Fiscal Coordinator DATE: April 1, 2015 SUBJECT: Sales Tax and Miscellaneous Revenue Report - 4th Quarter 2014 Schedule I - Sales Tax in $1,000's Sales tax collections for the fourth quarter were $467K more than the same quarter in the previous year, an 11 % increase, comprised of a decline in construction sales tax of $40K or (15 %) and an increase in sales tax from other industries of $507K or 12 %. Year -to -date sales tax collections through the fourth quarter increased by $459K or 3% over prior year receipts comprised of a decline in construction sales tax of $343K or (29 %) and an increase in sales tax from other industries f $802K or 5 %. Revenue received from mitigation has been consistent. As of December 31s`, the City collected $1,137,765 in sales tax mitigation, which is 95% of the annual mitigation budget. The City received $17.4 million in sales tax and mitigation through the end of the year. 1 2013 Actual 2014 Actual YOY Change -- Month -- Collect- ed Rec'd Construc -i Other i tion Industries Total Construc-i Other j tion Industries Total Construction j Other Industries j Total Amount % Amount % Amount i Jan Mar $ 76 ! $ 1,038 ! $ 1,114 $ 57 ! $ 1,049 ! $ 1,106 $ (19) -25 %! $ 11 1 %! $ (8) -1% Feb Apr 77 ! 1,127 ! 1,204 34 ! 1,047 ! 1,081 (43) -56 %! (80) -7 %! (123) -10% Mar May 86 j 1,191 j 1,277 56 j 1,265 j 1,321 (30) -35 %j 74 6 %i 44 3% Q -1 Totals $ 239 j 3,356 j $ 3,595 $ 147 j 3,361 j $ 3,508 $ (92) -38 %j 5 0 %j $ (87) -2% Apr Jun 117 1,109 1 1,226 57 1 1,135 1 1,192 (60) -51 %1 26 2 %1 (34) -3% May Jul 119 i 1,165 I 1,284 53 1 1,201 1 1,254 (66) -55 %1 36 3% (30) -2% Jun Aug 104: 1,264 ; 1,368 75 ; 1,303 ; 1,378 (29) -28 %: 39 3 %: 10 1% Q -2 Totals $ 340 1 3,538 ! $ 3,878 $ 185 ! 3,639 ! $ 3,824 $ (155) -46 %! 101 3 %! $ (54) -1% Jul Sep 101 ! 1,300 ! 1,401 80 ! 1,315 ! 1,395 (21) -20 %! 15 1 %! (6) 0% Aug Oct 105 ! 1,240 i 1,345 87 ! 1,301 ! 1,388 (18) -17 %! 61 5 %! 43 3% Sep Nov 108 j 1,227 j 1,335 91 j 1,340 j 1,431 (17) -16 %j 113 9 %i 96 7% Q -3 Totals $ 314 j 3,767 j $ 4,081 $ 258 j 3,956 j $ 4,214 $ (56) -18 %j 189 5 %j $ 133 3% Oct Dec 92 i 1,157 i 1,249 64 1 1,319 1 1,383 (28) -30 %1 162 14 %1 134 11% Nov Jan 1021 1,2481 1,350 871 1,3961 1,483 (15) -15 %1 148 12 % 133 10% Dec Feb 75: 1,660: 1,735 78: 1,857: 1,935 3 4 %: 197 12 %: 200 11% Q -4 Totals $ 269 ! 4,065 ! $ 4,334 $ 229 ! 4,572 ! $ 4,801 $ (40) -15 %! 507 12 %! $ 467 11% Totals $ 1,162 ! 14,726 ! $ 15,888 $ 819 ! 15,528 ! $ 16,347 $ (344) -29 %! 803 5 %! $ 459 3% Sales tax collections for the fourth quarter were $467K more than the same quarter in the previous year, an 11 % increase, comprised of a decline in construction sales tax of $40K or (15 %) and an increase in sales tax from other industries of $507K or 12 %. Year -to -date sales tax collections through the fourth quarter increased by $459K or 3% over prior year receipts comprised of a decline in construction sales tax of $343K or (29 %) and an increase in sales tax from other industries f $802K or 5 %. Revenue received from mitigation has been consistent. As of December 31s`, the City collected $1,137,765 in sales tax mitigation, which is 95% of the annual mitigation budget. The City received $17.4 million in sales tax and mitigation through the end of the year. 1 INFORMATIONAL MEMO Page 2 Budget to Actual - Sales Tax in $1,000's Schedule I - Sales Tax Sales tax revenue for the fourth quarter was $530K or 12% above budget. Year to date receipts collected through fourth quarter were $737K more than budget resulting in a 5% increase. The total receipts for the year exceeds $16 million. FS 04 -07 Info Memo Sales Tax - 2014 -Q4 FINAL.docx 4/1/2015 2 -- Month -- 2013 2014 2014 Variance [Act Over(Under) Amended Bdgt] Collect- Original Amended ed Rec'd Actual Budget Budget Actual Amt % Budget Projection Jan Mar $ 1,114 $ 1,077 $ 1,120 $ 1,106 $ (14) -1% $ 1,080 i $ 1,200 Feb Apr 1,204 1,069 1,112 1,081 (31) -3% 1,072 1,200 Mar May 1,277 1,274 1,325 1,321 (4) 0% 1,277 ; 1,300 Q -1 Totals $ 3,595 $ 3,420 $ 3,557 $ 3,508 $ (49) -1% $ 3,429 j 3,700 Apr Jun 1,226 1,150 1,196 1,192 (4) 0% 1,153 j 1,300 May Jul 1,284 1,181 1,228 1,254 26 2% 1,1831 1,300 Jun Aug 1,368 1,321 1,374 1,378 4 0% 1,316 j 1,400 Q -2 Totals $ 3,878 $ 3,652 $ 3,798 $ 3,824 $ 26 1% $ 3,652 j 4,000 Jul Sep 1,401 1,304 1,356 1,395 39 3% 1,293 1,370 Aug Oct 1,345 1,246 1,296 1,388 92 7% 1,2431 1,317 I Sep Nov 1,335 1,281 1,332 1,431 99 7% 1,280 ; 1,356 Q -3 Totals $ 4,081 $ 3,831 $ 3,984 $ 4,214 $ 230 6% $ 3,816 ! 4,043 Oct Dec 1,249 1,172 1,219 1,383 164 13% 1,171 j 1,241 Nov Jan 1,350 1,230 1,279 1,483 204 16% 1,231 I 1,304 Dec Feb 1,735 1,705 1,773 1,935 162 9% 1,711 j 1,813 Q -4 Totals $ 4,334 $ 4,107 $ 4,271 $ 4,801 $ 530 12% $ 4,113 I 4,357 Totals $ 15,888 $ 15,010 $ 15,610 $ 16,347 $ 737 5% $ 15,010 16,100 Sales tax revenue for the fourth quarter was $530K or 12% above budget. Year to date receipts collected through fourth quarter were $737K more than budget resulting in a 5% increase. The total receipts for the year exceeds $16 million. FS 04 -07 Info Memo Sales Tax - 2014 -Q4 FINAL.docx 4/1/2015 2 INFORMATIONAL MEMO Page 3 Below is a graph of sales tax collections by type of industry showing overall change between 2014 annual revenue receipts and 2013 receipts. $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $(100,000) $ (200,000) $(300,000) $(400,000) % Change YTD by Category* The decrease in the "Construction" category indicated above results mainly from the NAICS categories, 236 "Construction of Buildings ". Decline in the "Manufacturing" category is due largely to decreased sales activity in the NAICS category 336 "Transportation Equipment Mfg." The overall increase in the "`Wholesale Trade" category is attributable to the NAICS category 423, "Wholesale Trade in Durable Goods ". Of the $285K increase in the "Services" category, almost half, or $121 K, is from the NAICS category 72X, "Accomodation & Food Svcs "Social Assistance ". The miscellaneous category includes activities from agriculture, forestry, and fishing and unclassifiable establishments which continue to show declining sales as well as a decrease in the area of mining and utilities. FS 01- 071.nfo Memo Sales Tax - 2014 -04 FFNAL.docx 41112015 3 WholesaleTrade, $485664 Services, $28.,,q4.1 ATranpoi eta latioi/ Waousing, 2,491 • Manufacturing 01,676} Mi s cel I aneous, ($67,892) Construction The decrease in the "Construction" category indicated above results mainly from the NAICS categories, 236 "Construction of Buildings ". Decline in the "Manufacturing" category is due largely to decreased sales activity in the NAICS category 336 "Transportation Equipment Mfg." The overall increase in the "`Wholesale Trade" category is attributable to the NAICS category 423, "Wholesale Trade in Durable Goods ". Of the $285K increase in the "Services" category, almost half, or $121 K, is from the NAICS category 72X, "Accomodation & Food Svcs "Social Assistance ". The miscellaneous category includes activities from agriculture, forestry, and fishing and unclassifiable establishments which continue to show declining sales as well as a decrease in the area of mining and utilities. FS 01- 071.nfo Memo Sales Tax - 2014 -04 FFNAL.docx 41112015 3 INFORMATIONAL MEMO Page 4 Schedule II shows the year -to -date sales tax from the top ten industry classifications. While the NAICS category 423 "Wholesale Trade, Durable Goods" is not the highest generator of sales tax, it continues to have the highest year over year increase at $471,542. This is followed by an increase of $61,851 in the NAICS category 722 "Food Services and Beverages category". Schedule II YTD YTD Dollar Group Name Current Prior Diff. Diff. * 452 General Merchandise Stores $ 2,137,244.03 $ 2,154,523.21 $ (17,279) 0.80% * 448 Clothing and Accessories $ 2,013,039.55 $ 2,071,809.92 $ (58,770) - 2.84% * 722 Food Services, Drinking Places $ 1,590,850.91 $ 1,528,999.75 $ 61,851 4.05% * 423 Wholesale Trade, Durable Goods $ 1,447,023.94 $ 975,482.22 $ 471,542 48.34% * 443 Electronics and Appliances $ 982,899.32 $ 997,181.74 $ (14,282) - 1.43% 453 Miscellaneous Store Retailers $ 744,801.92 $ 692,524.92 $ 52,277 7.55% * 441 Motor Vehicle and Parts Dealer $ 675,796.39 $ 615,271.73 $ 60,525 9.84% * 444 Building Material and Garden $ 600,553.48 $ 565,653.39 $ 34,900 6.17% * 451 Sporting Goods, Hobby, Books $ 581,195.33 $ 568,945.20 $ 12,250 2.15% 721 Accommodation $ 562,130.23 $ 502,720.70 $ 59,410 11.82% * Mitigated NAICS Code Schedule III shows the industries with the ten largest declines in sales tax revenue for industries with over $10,000 in 2014 collections. The "Construction of Buildings" NAICs category 236 resulted in a 42% decrease from the prior year due to significant decrease in construction activity throughout the year. Schedule III YTD YTD Dollar Group Name Current Prior Diff. Diff. 236 Construction of Buildings $ 415,348.80 $ 716,944.13 $ (301,595) - 42.07% 999 Nonclassifiable Establishments $ 72,256.64 $ 187,778.37 $ (115,522) - 61.52% 336 Transportation Equipment Man $ 171,683.13 $ 251,447.04 $ (79,764) - 31.72% * 448 Clothing and Accessories $ 2,013,039.55 $ 2,071,809.92 $ (58,770) - 2.84% 237 Heavy and Civil Construction $ 55,116.17 $ 111,237.44 $ (56,121) - 50.45% 531 Real Estate $ 59,351.37 $ 77,731.37 $ (18,380) - 23.65% * 452 General Merchandise Stores $ 2,137,244.03 $ 2,154,523.21 $ (17,279) - 0.80% 522 Credit Intermediation $ 70,774.79 $ 85,795.26 $ (15,020) - 17.51% * 443 Electronics and Appliances $ 982,899.32 $ 997,181.74 $ (14,282) - 1.43% 611 Educational Services $ 49,997.91 $ 58,682.24 $ (8,684) - 14.80% * Mitigated NAICS Code FS O4 -07 Info Memo Sales Tax - 2014 -Q4 FINAL.docx 4/1/2015 4 INFORMATIONAL MEMO Page 5 The following charts show sales tax receipts the City collected from major industries between 2010 through the current year. These categories include retail, services, wholesale, construction, and other consisting of manufacturing, transportation & warehousing, automotive, and miscellaneous. $2,500,000 $2,400,000 $2,300,000 $2,200,000 $2,100,000 $2,000,000 $1,900,000 $1,800,000 $1,700,000 $1,600,000 $1,500,000 Retail Q1 Q2 Q3 Q4 • 2010 • 2011 • 2012 • 2013 • 2014 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- Services Q1 Q2 Q3 Q4 • 2010 • 2011 • 2012 • 2013 • 2014 FS 04 -07 Info Memo Sales Tax - 2014 -Q4 FINAL.docx 4/1/2015 5 6 INFORMATIONAL MEMO Page 6 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- Wholesale 01 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 s- Q2 Q3 Construction Q4 • 2010 • 2011 • 2012 • 2013 • 2014 01 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 Q2 Q3 Q4 • 2010 • 2011 • 2012 • 2013 • 2014 Other -Mfg. Trnsp /Wrhsng, Automotive, & Misc. 01 02 Q3 Q4 • 2010 • 2011 • 2012 • 2013 • 2014 FS 04 -07 Info Memo Sales Tax - 2014 -Q4 FINAL.docx 4/1/2015 INFORMATIONAL MEMO Page 7 SALES TAX SUMMARY 4th Quarter 2014 (Received in March 2014 - February 2015) NAICS CONSTRUCTION YTD 13 YTD 14 YTD % Diff 236 Construction of Buildings 237 Heavy & Civil Construction 238 Specialty Trade Contractors 716,944 111,237 334,704 415,349 -42.1% 55,116 -50.5% 348,328 4.1% TOTAL CONSTRUCTION $ 1,162,885 $ 818,793 Overall Construction Change from Previous Year ($344,092) -29.6% MANUFACTURING YTD 13YTD 14YTD %Diff 311 Food Manufacturing 9,926 7,356 - 25.9% 312 Beverage & Tobacco Products 5,267 5,848 11.0% 313 Textile Mills 670 651 -2.8% 314 Textile Product Mills 11,042 11,515 4.3% 315 Apparel Manufacturing 685 392 - 42.8% 316 Leather& Allied Products 3 1 - 80.1% 321* Wood Product Manufacturing 1,611 2,224 38.0% 322* Paper Manufacturing 24,030 23,964 -0.3% 323* Printing & Related Support 28,377 25,507 -1a1% 324 Petroleum & Coal Products 23 20 -11.9% 325 Chemical Manufacturing 6,273 7,631 21.7% 326 Plastic & Rubber Products 4,565 3,999 -12.4% 327* Nonmetallic Mineral Products 4,655 4,645 -0.2% NAICS AUTOMOTIVE 13 YTD YTD 14 YTD %Diff 441* Motor Vehicle & Parts Dealer 615,272 675,796 an 447* Gasoline Stations 75,449 88,507 17.3% NAICS TOTAL AUTOMOTIVE $ 690,721 $ 764,303 Overall Automotive Change from Previous Year $73,582 RETAIL TRADE 13 YTD 10.7% 14 YTD % Diff 442* Furniture & Home Fumishings 408,005 449,665 10.2% 443* Electronics & Appliances 997,182 982,899 -1.4% 444* Building Material & Garden 565,653 600,553 6.2% 445* Food & Beverage Stores 206,924 224,707 8.6% 446* Health & Personal Care 219,169 256,077 16.8% 448* Clothing & Accessories 2,071,810 2,013,040 -2.8% 451* Sporting Goods, Hobby, Books 568,945 581,195 2.2% 452* General Merchandise Stores 2,154,523 2,137,244 -0.8% 453* Miscellaneous Store Retailers 692,525 744,802 7.5% 454* Nonstore Retailers 174,653 184,477 5.6% TOTAL RETAIL TRADE $ 8,059,390 $ 8,174,659 Overall General Retail Change from Previous Year $115,269 1.4% SERVICES YTD 13YTD 14 YTD %Diff 331 Primary Metal Manufacturing 1,150 3,414 196.9% 51X Information 587,449 652,905 11.1% 332 Fabricated Metal Mfg Products 21,801 5,649 -74.1% 52X Finance & Insurance 97,434 79,451 -18.5% 333 Machinery Manufacturing 5,062 7,571 49.6% 53X Real Estate, Rental, Leasing 464,703 477,729 2.8% 334* Computer & Electronic Products 6,719 3,609 -46.3% L 541 Professional, Scientific, Tech 286,461 369,819 29.1% 335 Electric Equipment, Appliances 4,944 2,844 -42.5% 551 Company Management 29 0 - 100.0% 336 Transportation Equipment Mfg 251,447 171,683 -31.7% 56X Admin, Supp, Remed Svcs 181,408 126,608 -30.2% 337* Fumiture & Related Products 11,025 12,627 14.5% L 611 Educational Services 58,682 49,998 - 14.8% 339* Miscellaneous Manufacturing 13,014 19,464 49.6% 62X Health Care Social Assistance 91,502 137,974 50.8% TOTAL MANUFACTURING $ 412,288 $ 320,613 71X Arts & Entertainment 133,647 145,867 9.1% Overall Manufacturing Change from Previous Year ($91,676) -22.2% 72X* Accommodation & Food Svcs 2,031,720 2,152,981 6.0% l 81X Other Services 216,087 238,486 10.4% YTD 92X Public Administration 61,978 65,277 5.3% TRANSPORTATION & WAREHOUSING 13 YTD 14 YTD % Diff TOTAL SERVICES $ 4,211,101 $ 4,497,094 481 Air Transportation 482 Rail Transportation 484 Truck Transportation 485 Transit and Ground Passengers 487 Scenic and Sightseeing Tran 488 Transportation Support 491 Postal Services 492 Couriers & Messengers 153 1,597 5,820 395 876 39,511 529 787 7 1,162 1,647 740 1,044 46,626 597 293 0.0% -27.2% -71.7% 87.4% 0.0% 18.0% 0.0% -62.8% 493* Warehousing & Storage 746 786 5.4% TOTAL TRANSP & WHSING $ 50,413 $ 52,903 Overall Transportation Change from Previous Year $2491 4.9% WHOLESALE TRADE YTD 13 YTD 14 YTD % Diff 423* Whls Trade - Durable Goods 975,482 1,447,024 48.3% 1 Overall Services Change from Previous Year $285,993 6.8% MISCELLANEOUS YTD 13 YTD 14 YTD % Diff 000 Unknown 0 49,474 0.0% 111 -115 Agriculture, Forestry, Fishing 668 326 -51.1% 211 -221 Mining & Utilities 2,071 567 -72.6% 999 Unclassifiable Establishments 187,778 72,257 -61.5% MISCELLANEOUS TOTAL $ 190,517 $ 122,624 Overall Miscellaneous Change from Previous Year ($67,892) -35.6% YTD 13 YTD 14 YTD % Diff 424* WhIs Trade - Nondurable Goods 132,473 146,480 10.6% GRAND TOTALS $15,888,089 $16,347,426 425* Wholesale Electronic Markets 2,819 2,934 4.1% WHOLESALE TRADE TOTAL $ 1,110,774 $ 1,596,438 Overall Wholesale Change from Previous Year $485,664 43.7% * Sales Tax Mitigation NAICS Codes FS 04 -07 Info Memo Sales Tax - 2014 -Q4 FINAL.docx 4/1/2015 Grand Total Change from Previous Year Grand Total Change from Previous Year - Without New Construction $459,337 2.89% $803,430 546% 7 INFORMATIONAL MEMO Page 8 Below is Schedule IV which shows quarterly gambling tax earned for the prior year compared to the current year. Schedule IV - Gambling Tax (a) (c) 2014 Quarter 2013 2014 Prorated Earned Actual Actual Budget INCREASE (DECREASE) YEAR OVER YEAR BUDGET VARIANCE Amount % Amount Q1 $ 557,272 $ 678,358 $ 537,068 Q2 630,650 666,716 537,068 Q3 522,196 678,302 537,069 $ 121,086 22% $ 141,290 26% 36,066 6% 129,648 24% 156,106 30% 141,233 26% Q4 583,347 698,517 537,069 115,170 20% 161,449 30% Totals $ 2,293,465 $ 2,721,893 $ 2,148, 274 $ 428,427 19% $ 412,171 27% Gambling taxes for year ended 2014 are $428 thousand or 19% higher than 2013 and $412 thousand or 27% over 2014 budget. Casinos within the City continue to do well, showing consistent revenue each quarter and a very slight uptick during 4th quarter. Schedule V shows monthly admissions tax receipts for the prior year compared to the current year. Schedule V - Admissions Tax (b) Quarter Earned Q1 Q2 Q3 Q4 Totals (c) 2014 2013 2014 Prorated Actual Actual Budget INCREASE (DECREASE) YEAR OVER YEAR BUDGET VARIANCE Amount % Amount $ 111,254 $ 135,045 $ 137,500 $ 23,791 21% $ (2,455) -2% 158,396 149,487 137,500 (8,909) -6% 11,987 9% 154,463 135,919 137,500 (18,544) -12% (1,581) -1% 203,324 139,163 137,500 (64,161) -32% 1,663 1% $ 627,437 $ 559,614 $ 550,000 $ (67,823) -11% $ 9,614 2% Admissions tax receipts are $68 thousand or 11% below 2013 collections but $9,614 or 2% above budget. Movie theatre attendance accounts for most of the admissions tax. Attendance fluctuates based the popularity of movies including the number of block busters and other factors. (a) (b) (c) Gambling tax currently includes card games, punch boards, pull tabs, and amusement games. Excludes golf course admissions tax. Actuals reflected in Schedules IV and V are amounts earned through fourth quarter 2014. FS 04 -07 Info Memo Sales Tax - 2014 -Q4 FINAL.docx 4/1/2015 8