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Home My WebLink AboutFS 2011-10-04 Item 2C - Report - July 2011 Miscellaneous Revenue ReportTO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee FROM: Shawn Hunstock, Interim City Administrator DATE: September 22, 2011 SUBJECT: Miscellaneous Revenue Report for July 2011 Schedule 1 - Sales Tax in 1,000's Sales Receipt 2010 2011 2011 Increase /(Decrease) %Increase /(Decrease) Month Month Actual Estimated Actual Month YTD Month YTD Jan Mar $ 1,034 $ 1,080 $ 1,039 $ (41) $ (41) -3.80% 0.00% Feb Apr 1,006 1,033 1,043 10 (31) 0.97% -1.47% Mar May 1,157 1,179 1,453 274 243 23.24% 7.38% Apr June 1,070 1,102 1,252 150 393 13.61% 8.94% May July 1,067 1,138 1,278 140 533 12.30% 9.63% June Aug 1,249 1,243 1,386 143 676 11.50% 9.98% July Sept 1,251 1,299 1,281 (18) 658 -1.39% 8.15% Aug Oct 1,216 1,176 - (1,176) (518) - 100.00% -5.60% Sept Nov 1,357 1,185 (1,185) (1,703) - 100.00% - 16.32% Oct Dec 1,082 1,036 (1,036) (2,739) - 100.00% - 23.88% Nov Jan12 1,202 1,101 (1,101) (3,840) - 100.00% - 30.54% Dec Feb12 1,889 1,628 (1,628) (5,468) - 100.00% - 38.51% Totals $ 14,580 $ 14,200 8,732 Mitigation Received 917 $ 9,649 107.32% % of Budget Incl. Mitigation Sales tax collections for July showed an increase versus the same month in the previous year. July represented the twelfth consecutive increase over the last twelve months. For July, collections were slightly less than budget for the month, but more than actual collections in the same month the previous year. Actual receipts for July were $18,000 less than budget, and $30,000 more than the same period last year. We are down 1.39% for the month compared to budget, but up by 11.46% compared to the same month last year. Not including one -time money from new construction, we are 7.59% ahead of last year's collections to date. Including mitigation payments, we are currently at 107.32% of budget for the year to date. This includes a mitigation payment of $305,849.90 that will be received on September 30, 2011. Mitigation payments are now annualized and will only be adjusted once per year in the fall, effective with the December 31st payment. Staff completed work on the last mitigation detail file and submitted to the Department of Revenue a list of firms that should be removed from the mitigation calculation process. These firms are ones that were offsetting other losses, thereby reducing our mitigation payment. 17 INFORMATIONAL MEMO Page 2 Schedule II shows the year -to -date sales tax from the top ten industry classifications. As this schedule indicates, the trend is flat or down for most of the classifications. Schedule II YTD YTD Dollar Group Name Current Prior Diff. Diff. 448* Clothing and Accessories $ 1,086,762 $ 1,046,886 $ 39,876 3.81% 452* General Merchandise Stores 1,073,375 1,090,141 (16,766) - 1.54% 443* Electronics and Appliances 806,327 500,894 305,433 60.98% 722* Food Services, Drinking Places 763,655 772,301 (8,646) -1.12% 423* Wholesale Trade, Durable Goods 632,453 724,319 (91,867) - 12.68% 236 Construction of Buildings 529,036 301,328 227,708 75.57% 441* Motor Vehicle and Parts Dealer 352,177 351,354 822 0.23% 451* Sporting Goods, Hobby, Books 339,884 341,932 (2,048) - 0.60% 444* Building Material and Garden 291,525 302,181 (10,656) -3.53% 721* Accommodation 266,270 240,443 25,827 10.74% * Mitigated NAICS Code As you can see there are large variances from last year for the same time period. For instance, sales tax for Construction of Buildings is up by 75.57 %, Electronics and Appliances is up by 60.98 %, and Wholesale Trade Durable Goods is down by 12.68 %. As illustrated above, five of the top ten merchant categories have declined versus prior year, and all but one of the ten industry classification codes are ones for which we receive streamlined sales tax mitigation. Schedule III shows the ten largest declines in sales tax revenue for industries with over $10,000 collected year -to -date. Schedule III YTD YTD Dollar % Group Name Current Prior Diff. Diff. 811 Repair and Maintenance $ 50,537 $ 58,484 $ (7,947) - 13.59% 423* Wholesale Trade, Durable Goods 632,453 724,319 (91,867) - 12.68% 512 Motion Picture, Sound Record 16,665 18,860 (2,195) - 11.64% 531 Real Estate 21,718 24,034 (2,315) -9.63% 322* Paper Manufacturing 11,401 12,545 (1,144) -9.12% 517 Telecommunications 198,221 216,532 (18,311) - 8.46% 323* Printing and Related Support 25,809 28,073 (2,263) - 8.06% 444* Building Material and Garden 291,525 302,181 (10,656) -3.53% 452* General Merchandise Stores 1,073,375 1,090,141 (16,766) -1.54% 722* Food Services, Drinking Places 763,655 772,301 (8,646) -1.12% * Mitigated NAICS Code Attached is a Sales Tax Summary comparing year -to -date 2011 vs. 2010 by major NAICS codes. Also included is a comparison of total receipts year -to -date for the last six years. Below is Schedule IV which shows quarterly gambling tax receipts for last year, and the current year to date. W:\FIN Projects\Sales Tax Information120111Info Memo Sales Tax 09222011.docx 18 INFORMATIONAL MEMO Page 3 Schedule IV - Gambling Tax Sales Quarter 2010 2011 Actual Estimated 2011 Increase /(Decrease) Actual Month YTD Actuals %Increase /(Decrease) Month YTD Jan - Mar Apr - Jun Jul - Sep Oct - Dec Totals $ 417,078 532,667 439,255 496,414 $ 1,885,414 $ 464,547 593,292 489,248 552,913 $2,100,000 $ 478,118 389,776 $ 867,894 $ 13,571 $ 13,571 2.92% 0.00% (203,516) (189,945) - 34.30% - 17.96% (489,248) (679,193) - 100.00% - 43.90% (552,913) (1,232,106) - 100.00% - 58.67% As you can see, we are currently $189,945 under budget through June 2011, or 17.96% below budget. Actual receipts for 2011 are 8.62% below actual receipts to date in 2010. However, this is largely due to one of the casinos being late with their second quarter tax payment. As of today's date, that casino has not yet paid their second quarter taxes. Below is Schedule V which shows monthly admission tax receipts for the prior year and current year to date. Schedule V - Admissions Tax Sales 2010 2011 Month Actual Estimated 2011 Increase /(Decrease) Actual Month YTD Actuals %Increase /(Decrease) Month YTD Jan $ 52,751 $ 57,532 $ 31,217 Feb 39,232 42,788 30,403 Mar 51,861 56,562 39,696 Apr 39,294 42,855 28,705 May 35,365 38,570 38,944 June 48,428 52,818 57,325 July 62,293 67,939 50,835 Aug 42,284 46,116 - Sept 37,853 41,284 Oct 27,638 30,144 - Nov 35,594 38,820 - Dec 50,036 54,571 Totals $ 522,628 $ 570,000 $ 277,124 $(26,315) (12,385) (16,866) (14,150) 373 4,508 (17,104) (46,116) (41,284) (30,144) (38,820) (54,571) $ (26,315) (38,701) (55,566) (69,717) (69,343) (64,836) (81,940) (128,057) (169, 341) (199,485) (238,305) (292,876) - 45.74% - 28.95% - 29.82% - 33.02% 0.97% 8.53% - 25.18% - 100.00% - 100.00% - 100.00% - 100.00% - 100.00% 0.00% - 38.58% - 35.42% - 34.90% - 29.10% - 22.27% - 22.82% - 31.60% - 37.93% - 41.85% - 46.23% - 51.38% Admission tax receipts are currently 22.82% below budget for the year, and 15.82% below prior year actual receipts. We are working with one of the largest taxpayers for admissions tax to determine the cause of the decline. It appears that the decline is due to a decline in economic activity for that industry, a movie theater, but we are working on confirming the tax payments with the Department of Revenue. Also, it is expected that there will be an increase in admission tax payments with the recent opening of the iFly indoor skydiving facility near the mall. Please let me know if you have any comments or questions. Thank you. W: \FIN Projects \Sales Tax Information \2011 \Info Memo Sales Tax 09222011.docx 19 20 1 1 SALES TAX SUMMARY July 2011 (Received in September) NAICS CONSTRUCTION 10 TOTAL 236 Construction of Buildings 588,919 237 Heavy & Civil Construction 37,857 238 Specialty Trade Contractors 290,486 TOTAL CONSTRUCTION $ 917,262 $ Overall Construction Change from Previous Year 10 YTD 301,328 12,938 143,400 457,666 $ 11 YTD 529,036 23,090 244,193 796,319 8338,653 YTD Diff 75.6% 78.5% 70.3% NAICS AUTOMOTIVE 10 TOTAL 10 YTD 11 YTD YTD Diff 441' Motor Vehicle & Parts Dealer 596.727 351,354 352,177 0.2% 447* Gasoline Stations 67,583 38,200 39,840 4.3% 74.0% NAICS TOTAL AUTOMOTIVE $ 664,310 $ Overall Automotive Change from Previous Year RETAIL TRADE 10 TOTAL 389,555 $ 10YTD 392,017 S2,462 11 YTD Diff 0.6% YTD MANUFACTURING 10 TOTAL 10 YTD 11 YTD % Diff 442* Furniture & Home Furnishings 374,775 212,305 212,325 0.0% 443` Electronics & Appliances 1,003,415 500,894 806,327 61.0% 311 Food Manufacturing 5,995 1,639 2,403 46.6% 312 Beverage & Tobacco Products -895 -2,604 2,054 -178.9% 313 Textile Mills 88 24 225 824.4% 314 Textile Product Mills 13,503 9,086 5,919 -34.9% 315 Apparel Manufacturing 38 15 427 2791.1% 316 Leather & Allied Products 2 1 4 182.9% 444" Building Material & Garden 499,394 302,181 291,525 -3.5% 445" Food & Beverage Stores 101,958 43,894 71,596 63.1% 446* Hearth & Personal Care 178,919 96,788 124,856 29.0% 448" Clothing & Accessories 2,021,704 1,046,886 1,086,762 3.8% 451* Sporting Goods, Hobby, Books 648,678 341,932 339,884 -0.6% 452* General Merchandise Stores 2,068,263 1,090,141 1,073,375 -1.5% 321' Wood Product Manufacturing 1,627 933 875 -6.2% 453* Miscellaneous Store Retailers 481,324 257,328 263,975 2.6% 322' Paper Manufacturing 21,585 12,545 11,401 -9.1% 454* Nonstore Retailers 111,045 56,045 66,843 19.3% 323* Printing & Related Support 54,341 28,073 25,809 -8.1% TOTAL RETAIL TRADE $ 7,489,475 $ 3,948,392 $ 4,337,468 324 Petroleum & Coal Products 325 Chemical Manufacturing 326 Plastic & Rubber Products 3,062 7,458 3,142 1,990 4,155 1,745 1,273 5,486 2,657 -36.1% 32.0% 52.3% 327* Nonmetallic Mineral Products 3,667 670 2,153 221.4% 331 Primary Metal Manufacturing 332 Fabricated Metal Mfg Products 333 Machinery Manufactudng 334* Computer& Electronic Products 725 -2,641 10,120 195 4,065 7,042 179 2,187 877 -8.2% -46.2% -87.5% 5,592 2,436 5,179 112.6% 335 Electric Equipment, Appliances 336 Transportation Equipment Mfg 337* Furniture & Related Products 339* Miscellaneous Manufacturing 523 290,984 10,326 11,140 119 79,344 6,006 6,494 163,973 $ TOTAL MANUFACTURING $ 440,381 $ Overall Manufacturing Change from Previous Year TRANSPORTATION & WAREHOUSING 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 10 TOTAL 4 731 344 17,813 0 29,089 0 372 117 85,477 -2.2% 7.7% 5,214 -13.2% 5,915 -8.9% 10YTD 165,832 $1,859 0 246 137 11,175 0 9,608 0 208 11 YTD 42 498 3,243 11,099 518 17,011 84 7 YTD % Diff 0.0% 102.1% 2258.4% -0.7% #DIV/01 77.0% #DIV /0! -96.9% 493* Warehousing & Storage 957 583 557 -4.4% TOTAL TRANSP & WHSING $ 49,309 $ Overall Transportation Change from Previous Year WHOLESALE TRADE 10 TOTAL 21,958 $ 10 YTD 33,058 811,100 11 YTD YTD % Diff 50.6% 423* Whls Trade - Durable Goods 1,236,905 724,319 632,453 -12.7% 424* Whls Trade - Nondurable Goods 112,063 57,012 56,387 -1.1% 425' Wholesale Electronic Markets 2,781 1,437 922 -35.9% WHOLESALE TRADE TOTAL $ 1,351,748 $ Overall Wholesale Change from Previous Year * Sales Tax Mitigation NAICS Codes 09/21/2011 782,768 $ 689,761 ($93,007) -11.9% Overall General Retail Change from Previous Year SERVICES 51X Information 52X Finance & Insurance 53X Real Estate, Rental, Leasing 541 Professional, Scientific, Tech 551 Company Management 56X Admin, Supp, Remed Svcs 611 Educational Services 62X Health Care Social Assistance 71X Arts & Entertainment 10 TOTAL 553.763 54,281 420,554 183,693 250 111,875 61,029 74,501 110,146 10 YTD 317,172 26,535 209,747 92,981 209 61,763 35,299 38,980 66,553 5389,075 11 YTD 317,854 43,785 249,428 107,726 105 83,470 35,874 45,130 69,796 YTD % Diff 0.2% 65.0% 18.9% 15.9% -49.8% 35.1% 1.6% 15.8% 4.9% 9.9% 72X* Accommodation & Food Svcs 1,769,600 1,012,744 1,029,925 1.7% 81X Other Services 92X Public Administration TOTAL SERVICES 185,696 26,395 $ 3,551,783 $ Overall Services Change from Previous Year MISCELLANEOUS 10 TOTAL 000 Unknown 43 111 -115 Agriculture. Forestry, Fishing 313 211 -221 Mining & Utilities 14,355 999 Unclassifiable Establishments 100,745 MISCELLANEOUS TOTAL $ 115,457 $ Overall Miscellaneous Change from Previous Year Page 1 10 TOTAL 106,337 15,582 1,983,903 $ 10 YTD 102,439 24,021 2,109,554 $125,651 1 190 9,068 76,146 85,405 $ 10 YTD -3.7% 54.2% YTD 11 YTD % Diff 0 - 100.0% 136 -28.5% 2,338 -74.2% 205,872 170.4% 208,346 $122,941 11 YTD YTD % Diff 6.3% 143.9% GRAND TOTALS $14,579,726 $7,633,621 $8,732,354 Grand Total Change from Previous Year Grand Total Change from Previous Year - Without New Construction 8898,734 6560,080 rUK Soles Io>. Rpt 201107.dsz 11.47% 7.59% 2011 2010 2009 ca a) >- 2008 2007 2006 Six Year Comparison $8,7132,354 $7,833,6 $1U,48/,129 1 1 $8,332,869 1 $10,/43,b 8U $9,938,118 a i � $ $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 Sales Taxes Collected Year to Date 22