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FS 2014-09-16 Item 2D - Report - 2014 Second Quarter Miscellaneous Revenue Report
Schedule I - Sales Tax in $1,000's TO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee FROM: Peggy McCarthy, Finance Director BY: Jennifer Ferrer -Santa Ines, Senior Fiscal Coordinator DATE: September 9, 2014 SUBJECT: Sales Tax and Miscellaneous Revenue Report - 2nd Quarter 2014 Total sales tax collections for the second quarter were $54K below the same quarter in the previous year. New construction sales tax collection for second quarter was $155K lower compared to the same quarter in the previous year resulting in a 46% decrease. As of June 30th, the City has collected $568,606 in sales tax mitigation, which is 47% of the annual mitigation budget. Sales tax collections through the month of August are nearly 50% of the annual budget. Projections for the remainder of the year assumes an increase of 4.0% over monthly budget. 31 2013 Actual 2014 Actual YOY Change -- Month -- Collected Recd New j Other j Total Construc- j Industries I tion New j Other j Construc -j Industries I tion Total New Construction j Amount % I Other Industries j Amount % I Total Amount % Jan Mar $ 76 1 $ 1,038 1 $ 1,114 $ 57 $ 1,049 1 $ 1,106 $ (19) -25 %1 $ 11 1 %i $ (8) -1% Feb Apr 77 1,127 1. 1,204 34 1,047 i 1,081 (43) -56 %� (80) -7 %� (123) -10% Mar May 861 1,191 l 1,277 56l 1,265) 1,321 (30) -35 %l 74 6 %: 44 3% Q -1 Totals $ 239 ! 3,356 ! $ 3,595 $ 147 ! 3,361 ! $ 3,508 $ (92) -38 %! 5 0 %. $ (87) -2% Apr Jun 1171 1,1091 1,226 571 1,1351 1,192 (60) -51 %! 26 2%! (34) -3% May Jul 1191 1,1651 1,284 531 1,201 I 1,254 (66) -55 %1 36 3 %1 (30) -2% Jun Aug 104 j 1,264 j 1,368 75 j 1,303 j 1,378 (29) -28 %j 39 3 %j 10 1% Q -2 Totals $ 340 j 3,538 j $ 3,878 $ 185 j 3,639 j $ 3,824 $ (155) -46 %j 101 3 %j $ (54) -1% YTD thru 2nd Qtr $ 579 6,894 $ 7,473 $ 332 � 7,000 � $ 7,332 $ (247) -43 %� 106 2%: $ (141) -2% Jul Sep I: 101 : I: 1,300) 1,401 - - - - Aug Oct 105. 1,240 ! 1,345 - I I Sep Nov 108 , 1,227. 1,335 - - I - - -I - -1 - Q -3 Totals $ 314 ! 3,767 ! $ 4,081 $ - - 1 $ - $ - -1 - -! $ - $ - Oct Dec 92 I 1,157 I 1,249 - - I - - -I - -I - - Nov Jan 102 j 1,248 j 1,350 - 1 - I - - -1 - -1 - Dec Feb 75 j 1,660 j 1,735 - - 1 - - -I - Q-4 Totals $ 269 � 4,065 i $ 4,334 $ - $ $ $ $ Totals $ 1,162 l 14,726 l $ 15,888 $ 332 l I 7,000 : $ 7,332 $ (247) -: 106 -: $ (141) TO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee FROM: Peggy McCarthy, Finance Director BY: Jennifer Ferrer -Santa Ines, Senior Fiscal Coordinator DATE: September 9, 2014 SUBJECT: Sales Tax and Miscellaneous Revenue Report - 2nd Quarter 2014 Total sales tax collections for the second quarter were $54K below the same quarter in the previous year. New construction sales tax collection for second quarter was $155K lower compared to the same quarter in the previous year resulting in a 46% decrease. As of June 30th, the City has collected $568,606 in sales tax mitigation, which is 47% of the annual mitigation budget. Sales tax collections through the month of August are nearly 50% of the annual budget. Projections for the remainder of the year assumes an increase of 4.0% over monthly budget. 31 32 INFORMATIONAL MEMO Page 2 Schedule I - Sales Tax in $1,000's W:1FIN Projects\Sales Tax Information120141Info Memo Sales Tax - 2014 -Q2 2014MEMO.docx -- Month -- Collected Recd 2013 2014 Actual Budget Actual Variance [Act Over(Under) Bdgt] Amt % Jan Mar $ 1,114 $ 1,077 $ 1,106 $ 29 3% Feb Apr 1,204 1,069 1,081 12 1% Mar May 1,277 1,274 1,321 47 4% Q -1 Totals $ 3,595 $ 3,420 3,508 $ 88 3% Apr Jun 1,226 1,150 1,192 42 4% May Jul 1,284 1,181 1,254 73 6% Jun Aug 1,368 1,321 1,378 57 4% Q -2 Totals $ 3,878 $ 3,652 $ 3,824 $ 172 5% YTD thru 2nd Qtr $ 7,473 $ 7,072 $ 7,332 $ 260 4% Jul Sep 1,401 1,304 - - - Aug Oct 1,345 1,246 - - - Sep Nov 1,335 1,281 - - - Q -3 Totals $ 4,081 $ 3,831 $ - $ - - Oct Dec 1,249 1,172 - - Nov Jan 1,350 1,230 - - - Dec Feb 1,735 1,705 - - - Q -4 Totals $ 4,334 $ 4,107 $ - $ - - Totals $ 15,888 $ 15,010 $ 7,332 $ 260 - W:1FIN Projects\Sales Tax Information120141Info Memo Sales Tax - 2014 -Q2 2014MEMO.docx INFORMATIONAL MEMO Page 3 Below is a graph of sales tax collections by type of industry showing overall change in the first and second quarters in 2013 revenue receipts throught the second quarter in 2014. $100,000 $50,000 s- $(50,000) $(100,000) $(150,000) $(200,000) $(250,000) $(300,000) % Change YTD by Category* Services WholesaleTrade, $80,779 $65,682 Automotive, Retail Trade, $38,131 $34,611 sportation /Warehousing $(2,574) Manufacturing, $(64,004) isceM— Js, ($44,636) ($248,016) Construction The overall construction decrease shown above is primarily due to the Construction of Buildings category. Decrease in manufacturing is partialy due to Transportation Equipment Manufacturing category, which show a decline in gross sales activity. The miscellaneous category includes activities from unclassifiable establishments. Variance from this category is primarily due to 2013 activity from trust type organizations, which are not reported under a specific NAICS code. This same type of transaction did not reoccur in first quarter 2014 resulting in the negative variance. W:1FIN Projects\Sales Tax Information120141Info Memo Sales Tax - 2014 -Q2 2014MEMO.docx 33 34 INFORMATIONAL MEMO Page 4 Schedule II shows the year -to -date sales tax from the top ten industry classifications. Wholesale Trade, Durable Goods category had the highest year over year increase at $47,946, where at least three establishment's gross sales doubled or better this year as compared to 2013. This is followed by an increase of $39,033 in Miscellaneous Store Retailers category. This increase is attributable to a significant rise in sales from one particular retailer who delivers payment solutions to its customers. Schedule II YTD YTD Dollar Group Name Current Prior Diff. Diff. * 452 General Merchandise Stores $ 457,216.05 $ 466,670.02 $ (9,454) -2.03% * 448 Clothing and Accessories $ 408,312.42 $ 447,896.05 $ (39,584) -8.84% * 722 Food Services, Drinking Places $ 368,046.80 $ 358,380.15 $ 9,667 2.70% * 443 Electronics and Appliances $ 231,481.44 $ 219,582.46 $ 11,899 5.42% * 423 Wholesale Trade, Durable Goods $ 221,554.05 $ 211,485.79 $ 10,068 4.76% * 453 Miscellaneous Store Retailers $ 180,060.33 $ 165,322.25 $ 14,738 8.91% * 441 Motor Vehicle and Parts Dealer $ 150,336.43 $ 140,120.17 $ 10,216 7.29% * 444 Building Material and Garden $ 121,708.61 $ 118,007.71 $ 3,701 3.14% * 451 Sporting Goods, Hobby, Books $ 121,533.13 $ 128,974.84 $ (7,442) -5.77% 517 Telecommunications $ 119,501.04 $ 109,581.23 $ 9,920 9.05% * Mitigated NAICS Code Schedule Ill shows the ten largest declines in sales tax revenue for industries with over $10,000 collected year -to -date. The Construction of Buildings category resulted in a 61% decrease from the prior year due to significant decrease in construction activity from at least four major contractors. Permiting activity to date reported a slight decline of 5% in the # of permits issued. Schedule Ill YTD YTD Dollar % Group Name Current Prior Diff. Diff. 999 Nonclassifiable Establishments $ 44,223.34 $ 144,238.43 $ (100,015) - 69.34% 236 Construction of Buildings $ 74,747.30 $ 162,909.50 $ (88,162) - 54.12% * 448 Clothing and Accessories $ 408,312.42 $ 447,896.05 $ (39,584) - 8.84% 336 Transportation Equipment Man $ 33,164.24 $ 55,116.29 $ (21,952) - 39.83% 621 Ambulatory Health Care Service $ 10,750.14 $ 21,194.86 $ (10,445) - 49.28% * 452 General Merchandise Stores $ 457,216.05 $ 466,670.02 $ (9,454) -2.03% 522 Credit Intermediation $ 12,921.88 $ 21,843.91 $ (8,922) - 40.84% * 451 Sporting Goods, Hobby, Books $ 121,533.13 $ 128,974.84 $ (7,442) - 5.77% 511 Publishing Industries $ 23,769.02 $ 29,489.64 $ (5,721) - 19.40% 611 Educational Services $ 11,819.55 $ 16,351.98 $ (4,532) - 27.72% * Mitigated NAICS Code W:1FIN Projects\Sales Tax Information120141Info Memo Sales Tax - 2014 -Q2 2014MEMO.docx i INFORMATIONAL MEMO Page 5 The next two pages show graphs of 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. $2,400,000 $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 01 Q2 Q3 Q4 • 2010 • 2011 2012 • 2013 2014 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- Services Q1 Q2 03 Q4 • 2010 • 2011 2012 • 2013 2014 W:1FIN Projects\Sales Tax Information120141Info Memo Sales Tax - 2014 -Q2 2014MEMO.docx 35 36 INFORMATIONAL MEMO Page 6 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- Wholesale 01 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $- Q2 Q3 Construction Q4 • 2010 • 2011 2012 • 2013 • 2014 Q1 Q2 Q3 Q4 • 2010 • 2011 • 2012 • 2013 • 2014 W:1FIN Projects\Sales Tax Information120141Info Memo Sales Tax - 2014 -Q2 2014MEMO.docx INFORMATIONAL MEMO Page 7 Other -Mfg. Trnsp /Wrhsng, Automotive, & Misc. $450,000 $400,000 $350,000 $300,000 $ 250,000 $200,000 $150,000 $100,000 $50,000 $- 01 Q2 Q3 04 • 2010 • 2011 P 2012 F 2013 2014 Revenue received from mitigation has been consistent. The City received $7.9 million in sales tax and mitigation throught the second quarter. W:\ FIN Projects\Sales Tax Information120141Info Memo Sales Tax - 2014 -02 2014MEMO.docx 37 38 INFORMATIONAL MEMO Page 8 Below is Schedule IV which shows quarterly gambling tax earned for the prior year, and the current year to date. Schedule IV - Gambling Tax (a) Quarter Earned 2013 Actual (c) 2014 Actual 2014 Prorated Budget INCREASE (DECREASE) YEAR OVER YEAR BUDGET VARIANCE Amount % Amount Q1 $ 557,272 $ 678,358 $ 537,068 $ 121,086 21.73% $ 141,290 26.31% Q2 630,650 666,716 537,068 36,066 5.72% 129,648 24.14% YTD 1,187,922 1,345,074 1,074,136 157,152 13.23% 270,938 25.22% Q3 522,196 - 537,069 - - - - Q4 583,347 - 537,069 - - - - Totals $ 2,293,465 $ 1,345,074 $ 2,148,274 $ 157,152 - $ 270,938 - Compared to 2013 first and second quarter combined totals, the City has collected approximately 13% more in gambling revenue due to higher receipts. Schedule V shows monthly admissions tax receipts for the prior year and current year to date. Schedule V - Admissions Tax (b) Quarter Earned 2013 Actual (c) 2014 Actual 2014 Prorated Budget INCREASE (DECREASE) YEAR OVER YEAR BUDGET VARIANCE Amount % Amount Q1 $ 111,254 $ 135,045 $ 137,500 $ 23,791 21.38% $ (2,455) -1.79% Q2 158,396 149,487 137,500 (8,909) -5.62% 11,987 8.72% YTD 269,650 284,532 275,000 14,882 5.52% 9,532 3.47% Q3 154,463 - 137,500 - - - - Q4 203,324 - 137,500 - - - - Totals $ 627,437 $ 284,532 $ 550,000 $ 14,882 - $ 9,532 - Admissions tax receipts are 3.5% above budget as indicated for first and second quarter combined totals, and about 5.5% above prior year actual receipts. Attachments • Sales Tax Summary (a) (b) (0) 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 second quarter 2014. W:1FIN Projects\Sales Tax Information1201411nfo Memo Sales Tax - 2014 -Q2 2014MEMO.docx 13 YTD 292,940 47,17 190,720 126,916 29 110,829 32,269 47,236 64,81 80,372 4.2% $ 3,708,335 $38,131 14 YTD NAICS 236 237 238 SALES TAX SUMMARY 2nd Quarter 2014 (Received in March 2014 - Aug 2014) i CONSTRUCTION 13 TOTAL 311 312 313 314 315 316 Construction of Buildings 716,944 Heavy & Civil Construction 111,237 Specialty Trade Contractors 334,704 TOTAL CONSTRUCTION $ 1,162,885 $ Overall Construction Change from Previous Year MANUFACTURING Food Manufacturing Beverage & Tobacco Products Textile Mills Textile Product Mills Apparel Manufacturing Leather & Allied Products 13 TOTAL 9,926 5,267 670 11,042 685 3 13YTD 408,390 22,628 148,494 579,512 13 YTD 5,188 2,761 290 4,974 334 2 14 YTD 160,922 23,096 147,478 331,496 ($248,016) 14 YTD 2,978 2,509 266 5,345 200 1 YTD % Diff -60.6% 2.1% -0.7% NAICS AUTOMOTIVE 13 TOTAL 13YTD YTD 14 YTD % Diff -42.8% YTD % Diff -42.6% -9.1% -83% 7.5% -40.2% -72.6% 441 Motor Vehicle & Parts Dealer 447' Gasoline Stations NAICS TOTAL AUTOMOTIVE 615,272 287,852 316,889 10.1% 75,449 $ 690,721 $ Overall Automotive Change from Previous Year RETAIL TRADE 13 TOTAL 34,330 322,182 $ 13 YTD 39,903 16.2% 356,792 $34,611 10.7% 14 YTD % Diff 442' Furniture & Home Fumishings 408,005 190,305 219,245 15.2% 443' Electronics & Appliances 997,182 444,683 443,995 -0.2% 444' Building Material & Garden 565,653 278,423 289,122 3.8% 445' Food & Beverage Stores 206,924 98,106 99,105 1.0% 446" Health & Personal Care 219,169 101,536 119,838 18.0% 448* Clothing & Accessories 2,071,810 934,443 893,974 -4.3% 451' Sporting Goods, Hobby, Books 568,945 259,161 255,095 -1.6% 452' General Merchandise Stores 2,154,523 963,686 945,793 -1.9% 321' Wood Product Manufacturing 322' Paper Manufacturing 1,611 974 1,253 28.6% 453' Miscellaneous Store Retailers 692,525 322,763 361,796 12.1% 24,030 12,277 12,254 -0.2% 454' Nonstore Retailers 174,653 77,097 323' Printing & Related Support 28,377 14,759 324 Petroleum & Coal Products 325 Chemical Manufacturing 326 Plastic & Rubber Products 23 6,273 4,565 10 3,068 2,584 11,776 -20.2% 12 3,624 1,968 17.9% 18.1% -23.8% 327' Nonmetallic Mineral Products 4,655 1,913 2,322 21.4% 331 Primary Metal Manufacturing 332 Fabricated Metal Mfg Products 333 Machinery Manufacturing 1,150 21,801 5,062 252 11,663 2,664 2,333 3,339 4,468 824.9% -71.4% 67.7% 334* Computer & Electronic Products 6,719 4,806 2,395 -50.2% 335 Electric Equipment, Appliances 336 Transportation Equipment Mfg 337' Furniture & Related Products 339' Miscellaneous Manufacturing TOTAL MANUFACTURING $ 412,288 $ Overall Manufacturing Change from Previous Year 4,944 251,447 11,025 13,014 409 118,335 4,459 6,346 198,069 $ 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 13 TOTAL 153 1,597 5,820 395 876 39,511 529 787 1,529 61,157 273.6% -48.3% 5,182 16.2% 9,155 44.3% 13YTD 0 1,581 2,167 218 425 18,787 229 155 134,065 ($64,004) -32.3% 14 YTD 0 27 1,188 448 637 18,426 230 138 YTD % Diff 0.0% -98.3% -45.2% 105.4% 0.0% -1.9% 0.0% -10.6% TOTAL RETAIL TRADE $ 8,059,390 $ Overall General Retail Change from Previous Year SERVICES 13 TOTAL 3,670,204 1 493' Warehousing & Storage 746 451 345 -23.5% TOTAL TRANSP & WHSING $ 50,413 $ Overall Transportation Change from Previous Year WHOLESALE TRADE 13 TOTAL 24,013 13 YTD 423' Whls Trade - Durable Goods 975,482 446,388 $ 21,439 ($2,574) 14 YTD 494,333 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 587,449 97,434 464,703 286,461 29 181,408 58,682 91,502 133,647 330,622 37,469 203,148 167,047 0 61,770 25,135 38,420 69.653 1.0% YTD % Diff 12.9% -20.6% 6.5% 31.6% -100.0% -44.3% -22.1% -18.7% 7.5% 72X' Accommodation & Food Svcs 2,031,720 974,242 1,030,951 5.8% 81X Other Services 92X Public Administration TOTAL SERVICES 216,087 61,978 $ 4,211,101 $ Overall Services Change from Previous Year MISCELLANEOUS -10.7% YTD % Diff 10.7% 424* WhIs Trade- Nondurable Goods 132,473 60,733 78,680 29.6% 425* Wholesale Electronic Markets 2,819 1,667 1,456 -12.6% WHOLESALE TRADE TOTAL $ 1110,774 $ Overall Wholesale Change from Previous Year • Sales Tax Mitigation NAICS Codes 9/9/2014 508,787 $ 574,469 $65,682 129% 13 TOTAL 000 Unknown 0 111-115 Agriculture, Forestry, Fishing 668 211 -221 Mining & Utilities 2,071 999 Unclassifiable Establishments 187,778 MISCELLANEOUS TOTAL $ 190,517 Overall Miscellaneous Change from Previous Year 13 TOTAL 105,418 33,508 2,026,089 13 YTD 0 90 278 143,526 143,893 $ 109,856 4.2% 32,797 -2.1% $ 2,106,869 $80,779 14 YTD 13 YTD 49,474 244 364 49,175 99,257 ($44,636) -31.0% 4.0% YTD % Diff 0.0% 171.7% 31.2% -65.7% 14 YTD YTD % Diff GRAND TOTALS $15,888,089 $7,472,749 $7,332,723 Grand Total Change from Previous Year Grand Total Change from Previous Year - Without New Construction ($140,027) -1.87% $107,989 run saes Tax eel (22- 3114.x1,% 1.57%