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Home My WebLink AboutFS 2015-07-07 Item 2E - Report - 2015 1st 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: July 7, 2015 SUBJECT: Sales Tax and Miscellaneous Revenue Report - 1st Quarter 2015 Schedule I - Sales Tax in $1,000's First quarter sales tax collections through March were $546K more than the same quarter in the previous year, resulting in a 16% increase. There was an increase in construction sales tax of $123K over the same quarter last year, or up by 84% as well as an increase in sales tax from other industries of $423K which resulted in a rise of 13 %. As of March 31st, revenue that the City has received from sales tax mitigation totals $284,506, which is 25% of the annual mitigation budget. 4 I P � 2014 Actual 2015 Actual YOY Change Other -- Month -- ! Other : Total . Other , Total Construction : Industries ! Total Collect- Construca I Construct 1 1 I ed Rec'd Industries � tion 1 tion 1 Industries I Amount % I' Amount % I Amount Jan Mar $ 57 1 $ 1,049 1 $ 1,106 $ 85 1 $ 1,195 1 $ 1,280 $ 28 49 %1 $ 146 14 %1 $ 174 16% Feb Apr 34 1 1,047 1 1,081 86 1 1,227 i 1,313 52 153 %1 180 17 %i 232 21% Mar May 56 i 1,265 j 1,321 99 I 1,362 i 1,461 43 78 %j 97 8 %i 140 11% Q-1 Totals $ 147 i 3,361 i $ 3,508 $ 270 � 3,784 $ 4,054 $ 123 84 %� 423 13 %� $ 546 16% Apr Jun 57 i 1,135 I 1,192 I I 1 i May Jul 53 : 1,201 ; 1,254 - - - - - - - - Jun Aug 75. 1,303 ! 1,378 I I - - Q -2 Totals $ 185 ! 3,639 ! $ 3,824 $ - - ! $ - $ - _I - - I $ - - Jul Sep 80 ■ 1,315 1 1,395 - - - - -1 - - j - - Aug Sep Oct Nov 87 1 1,301 1 1,388 91 i 1,340 i 1,431 - I - i - - i - - - - -1 - -j - - - Q-3 Totals $ 258 i 3,956 i $ 4,214 $ i i $ $ i j $ Oct Dec 64 I 1,319 l 1,383 - Nov Jan 87 ; 1,396: 1,483 - - - - - - - Dec Feb 78! 1,857. 1,935 -i _i - - _i _ _i _ - Q -4 Totals $ 229 ! 4,572 ! $ 4,801 $ - - I $ - $ - _I - - I $ - - Totals $ 819 j 15,528 i $ 16,347 $ 270 i 3,784 i $ 4,054 $ 123 - i 423 - i $ 546 - First quarter sales tax collections through March were $546K more than the same quarter in the previous year, resulting in a 16% increase. There was an increase in construction sales tax of $123K over the same quarter last year, or up by 84% as well as an increase in sales tax from other industries of $423K which resulted in a rise of 13 %. As of March 31st, revenue that the City has received from sales tax mitigation totals $284,506, which is 25% of the annual mitigation budget. 4 I P � INFORMATIONAL MEMO Page 2 Budget to Actual - Sales Tax in $1,000's Schedule I - Sales Tax Actual revenue from sales tax collections received during the first quarter experienced an increase of $336K or 9% above the current original budget. W: \FIN Projects \Sales Tax Information\2015 \Info Memo Sales Tax - 2015 -Q1 2015MEMO (July 2015).docx -- Month -- 2014 2015 Variance [Actual Over (Under) Original Budget] Collect- Original ed Rec'd Actual Budget Actual Amt % Jan Mar $ 1,106 $ 1,171 $ 1,280 $ 109 9% Feb Apr 1,081 1,161 1,313 152 13% Mar May 1,321 1,386 1,461 75 5% Q -1 Totals $ 3,508 $ 3,718 $ 4,054 $ 336 9% Apr Jun 1,192 1,252 - - - May Jul 1,254 1,287 - - - Jun Aug 1,378 1,431 - - - Q-2 Totals $ 3,824 $ 3,970 $ - $ - - Jul Sep 1,395 1,408 - - - Aug Oct 1,388 1,359 - - - Sep Nov 1,431 1,399 - - - Q-3 Totals $ 4,214 $ 4,166 $ - $ - - Oct Dec 1,383 1,286 - - - Nov Jan 1,483 1,354 - - - Dec Feb 1,935 1,871 - - - Q-4 Totals $ 4,801 $ 4,511 $ - 1 $ - - Totals $ 16,347 $ 16,365 $ 4,054 $ 336 - Actual revenue from sales tax collections received during the first quarter experienced an increase of $336K or 9% above the current original budget. W: \FIN Projects \Sales Tax Information\2015 \Info Memo Sales Tax - 2015 -Q1 2015MEMO (July 2015).docx INFORMATIONAL MEMO Page 3 Below is a graph of sales tax collections by type of industry showing overall change for 1St quarter 2015 revenue receipts from January through March. $300,000 $250,000 $ 200,000 $150,000 $100,000 $50,000 s- $(50,000) $(100,000) % Change YTD by Category* Services, $245,461 Whol es a I e Tra de, Construction 5142.767 $123,366 • Retail Trade, $80,950 Automotive, $34,433 Transportation/ Manufacturing, Warehousing, ftia ggal ($380) Miscel I aneous, ($66,284) The increase in the "Construction" category, specifically in the NAICS group under 236 - Construction of Buildings was due primarily to several construction companies reporting sales tax revenue during the current quarter that previously did not have any such activity reported in the previous year. The overall increase in the 'Wholesale Trade" category is attributable to the NAICS category 423, 'Wholesale Trade in durable Goods" of about $138K. Similarly, the "Retail Trade" category experienced increases totaling $50K in the areas of Building /Material /Garden and Clothing /Accessories. Of the $245K rise in the "Services" category, there were combined increases totaling $222K in the areas of: Information, Real Estate /Rental /Leasing, Professional /Scientific/Technology, Health Care /Social Assistance, and Accommodation /Food Services. The miscellaneous category includes activities from agriculture, forestry, fishing, mining and utilities with unclassifiable establishments having the largest change decrease of ($24K). W: \FIN Projects \Sales Tax Infomation\2015 \Info Memo Sales Tax-2015-Q1 2015MEMO (July 2015).docx INFORMATIONAL MEMO Page 4 Schedule II shows the year -to -date sales tax from the top ten industry classifications. Wholesale Trade, Durable Goods in the NAICS 423 category continues to have the highest year over year increase at $138,426, primarily due to an increase in reported sales by a leading manufacturer of heavy duty commercial vehicles. This is followed by an increase of $112,472 in the category of Construction of Buildings. This increase is partially attributable to several construction companies reporting sales tax revenue during the current quarter that previously did not have any activity reported in the same period from the previous year as well as an increase in sales activity. Schedule II Group Name YTD Current YTD Prior * 452 General Merchandise Stores * 448 Clothing and Accessories " 722 Food Services, Drinking Places * 423 Wholesale Trade, Durable Goods * 443 Electronics and Appliances 236 Construction of Buildings * 441 Motor Vehicle and Parts Dealer * 453 Miscellaneous Store Retailers 517 Telecommunications * 444 Building Material and Garden * Mitigated NAICS Code $ 470,784.24 $ 437,854.64 $ 403,293.24 $ 359,980.31 $ 227,882.28 $ 187,219.24 $ 180,562.05 $ 175,006.35 $ 160,543.77 $ 143,622.72 $ 457,216.05 $ 408,312.42 $ 368,046.80 $ 221,554.05 $ 231,481.44 $ 74,747.30 $ 150,336.43 $ 180,060.33 $ 119,501.04 $ 121,708.61 Dollar Diff. $ 13,568 2.97% $ 29,542 7.24% $ 35,246 9.58% $ 138,426 62.48% $ (3,599) - 1.55% $ 112,472 150.47% $ 30,226 20.11% $ (5,054) -2.81% $ 41,043 34.35% $ 21,914 18.01% Diff. Schedule III shows the ten largest declines in sales tax revenue for industries with over $10,000 collected year -to -date. The NAICS 336 Transportation Equipment Manufacturing category experienced a 39% decrease from the prior year due to significant decrease in sales activity during this first quarter. Schedule III Group Name YTD Current YTD Prior 999 Nonclassifiable Establishments 336 Transportation Equipment Man * 453 Miscellaneous Store Retailers * 443 Electronics and Appliances * 442 Furniture and Home Furnishings 531 Real Estate 561 Administrative and Support Svc 488 Transportation Support 238 Specialty Trade Contractors 721 Accommodation * Mitigated NAICS Code $ 19,982.43 $ 19,967.88 $ 175,006.35 $ 227,882.28 $ 104,458.27 $ 10, 671.39 $ 32,998.79 $ 11,218.64 $ 63,698.09 $ 117,716.68 $ 44,223.34 $ 33,164.24 $ 180,060.33 $ 231,481.44 $ 106,807.66 $ 12,551.04 $ 34,092.10 $ 11,943.31 $ 63,849.49 $ 116,967.62 W: \FIN Projects \Sales Tax Information\2015 \Info Memo Sales Tax - 2015 -Q1 2015MEMO (July 2015).docx Dollar Diff. (24,241) - 54.81% (13,196) - 39.79% (5,054) -2.81% (3,599) - 1.55% (2,349) -2.20% (1,880) - 14.98% (1,093) -3.21% (725) -6.07% (151) -0.24% 749 0.64% Diff. 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. 52,500,000 52,400,000 52,300,000 $2,200,000 52,100,000 52,000,000 51,900,000 51,800,000 51,700,000 $1,600,000 51,500,000 $700,000 5600,000 $500,000 5400,000 5300,000 5200,000 5100,000 $- Retail 01 Q2 Q3 Wholesale Q4 01 Q2 Q3 Q4 $450,000 5400,000 5350,000 5300,000 5250,000 5200,000 5150,000 5100,000 550,000 $- • 2010 • 2011 • 2012 • 2013 • 2014 • 2015 • 2010 • 2011 • 2012 • 2013 • 2014 • 2015 51,400,000 51,200,000 51,000,000 5800,000 5600,000 5400,000 5200,000 5- 5450,000 5400,000 $350,000 5300,000 $250,000 5200,000 $150,000 5100,000 550,000 5- Services Q1 02 Q3 Construction Q4 • 2010 • 2011 • 2012 • 2013 • 2014 • 2015 Other -Mfg. Trnsp /Wrhsng, Automotive, & Misc. 01 Q1 02 Q3 Q4 W: \FIN Projects \Sales Tax Information \2015 \Info Memo Sales Tax - 2015 -Q1 2015MEMO (July 2015).docx Q2 Q3 • 2010 • 2011 • 2012 • 2013 • 2014 • 2015 Q4 • 2010 • 2011 • 2012 • 2013 • 2014 • 2015 INFORMATIONAL MEMO Page 6 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) 2015 Quarter 2014 2015 Prorated Earned Actual Actual Budget INCREASE (DECREASE) YEAR OVER YEAR BUDGET VARIANCE Amount % Amount Q1 $ 678,358 $ 698,773 $ 615,337 Q2 666,716 - 604,777 Q3 678,302 615,286 Q4 698,517 - 633,623 $ 20,415 3% $ 83,436 14% Totals $ 2,721,893 $ 698,773 $ 2,469,024 $ 20,415 $ 83,436 Gambling taxes for the 1st quarter ended March 31st, are $20K or 3% higher than 2014 and $81K or 13% over 2015 budget. Casinos within the City continue to do well. Schedule V shows monthly admissions tax receipts for the 1st quarter prior year compared to the same quarter current year. Schedule V - Admissions Tax (b) (c) 2015 Quarter 2014 2015 Prorated Earned Actual Actual Budget INCREASE (DECREASE) 2015 to 2014 Actuals 2015 Actuals to 2015 Budget Amount % Amount Jan $ 47,314 $ 46,586 $ 56,057 Feb 39,544 42,492 46,851 Mar 48,187 40,167 57,091 01 Totals $ 135,045 $ 129,245 $ 160,000 $ (728) -2% $ (9,472) -17% 2,948 7% (4,360) -9% (8,020) -17% (16,924) -30% $ (5,800) -4% $ (30,755) -19% Admissions tax receipts are at ($5.8K) or 4% below 2014 collections and ($30.7K) or 19% under budget. Receipts from movie theater sales continue to be a primary component of revenue for the admissions tax. (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 first quarter 2015. W: \FIN Projects \Sales Tax Information\2015 \Info Memo Sales Tax - 2015 -01 2015MEMO (July 2015).docx SALES TAX SUMMARY 1st Quarter 2015 (Received in March 2015 - May 2015) O 0 H Y r J O 0 AUTOMOTIVE 0 0 0 0 0 ✓ J 0 v CONSTRUCTION 0 Flo N G N c1 O N 41 69 n co- ID H au r- d a . o aa 0 O w ¢ 0 ° 1- J 1- O i0 O N uoi N 4 rn CO • 0 07 N m m ✓ rn m m ✓ v Oa n m CD rn m CO 040 L6 cAAi L • to N • N N 0 an 0 >- RETAIL TRADE 0) 0 - T-T- 7-1-1-- -j -f-T 11 1 1 1 1 1 Nl6lo a" L-1-5 N�omly N1r1� °' rINImINlO 1 1 1 1 1 1 1 m1 N10) v tf)I0 o1m10 m'm N m 0) 04' CO' O'V' Qlmlm r ml0 r:1OIu-, v'r C1 O 0) N-'04 O,0,N o1N1V v m '1N '-r1T1Ln I 1 1 1 1 1 1 1 1 I 1 1 1 1 1 1 1 1 1 1 1 1 mmQ Iv - IrnN r lm lr rn INO lm lmC lol'o 0 m ("7-1 N ; 0N O :C�) , u9 m ;� N o;m tO m C1 rlNlr I 161-1.- 61-1,-1 (100 CO 4 1 1 1 CO CO CO 04 CO 0 0 N c CO 30 4 (0 N m 4 0- A ly GPI I 1 81 21 01 C O .m_. E mlv 2 0 ylm 0 Lm.10 o m cla m m,� c U m 0 'o o 5 co 5 <0.5!'„7., 5 0 U I C' L y y V' 0 a1 I a�i li cd I c.-0 '& 8 ¢ 5 01_°c'Io r c1clm ' t1.° $ m of o 2 _8 c 5 CO O. LL W 100 Li 2101(/) 0 2 Z 1 1 0110)1 'Ln'm m1 t01n l 0) u¢i 4'4,4'4'4 4,V.4 4 a 1 1 1 1 (m01 O 0 a6 0 N co co N 0) EA R TOTAL CONSTRUCTION 0 r MANUFACTURING m m oi IN N 0 R � o CO tc, O tl) ▪ O CO 0 N O T J O U Q en f -1 N N 4 t? CO o iOIaIN (+] m m m N , I I O N D) 0 0) CO r1 01 CO 0' CO CO 0 CO O 0 co 'm m r- C_ m 'd: co m co_ of co m O) m N C) (ri' '-'m V' N m NI CO r vlFltn • I 1 1 1 I I • o m 0 m o CO m1611.0 to m CO Ln r N CO CO, V m ✓ O_ r m m O N CO m a- O m 0') , m (7I m l30 1 -at 1 O rnrn(omvr • V 0- m (00 0) Or) m CO Om) N CCI CO 61 N N CO V M R .4. 04 N r c< pQ� r —r -1 -1 1 - - - 1 1 - - 1 1 1 1 1 1 1 1 I 1 1 11 o olo I.I- Io 0 o Io I� o eielo ei, to o> °- Ln M' o ,n, m r ,r,'•-..2o to o m' o' m N N of °vINIm1 v i'INID; " 01 mlNlai • 7I '1 1 1' 1'1 'I "- I 1'1' 1 1 1 1 1 1 1 1 1 1 r at o LO CO N LO to (+ o olNlml,, r y m cllmlm (' �Irlo mlm(")lm ,m,m V �N tfN N N Idml ml ▪ �Iml� m (OIN '''''1'11"1 (f) ) N I 1 1 1 1 1 ' I 1 'I I 1 1 1 1 1 I I I I I I I I I I I I I I I r r N— .- 1rn'(�'Iat m N rn r m m m CO a 6'6'3- N N m m .- 'CO O 61. CO CO N O CO CO 6- (0 0'0'N N IN CO m .- 1 r 'O COI CO V- 3 CO N LO Ln m m .- I N I N N m' LO r .- M' C)' Ln 1 °' I 1 1 I 1 I 03 010 CO 0 CO N N ((0 N N CO Ncn 01 ✓ C) ✓ CD (D of ar E N CD N (T 2' N 0. O .. U C 01 '8 O m C = .5 N N a V .. 'E 2 O n "O o) m -p o o a ' . m 3 m 15 (oa m 0 51-0.17... a) m W a o Q m Q -oo c Q e6 `L Q- 0 -0 `6 0- m co 0 -.5 O m o6 E 0 t6 `- m N d W 'IS ° N Wt (mc t `m .m o f '0 E a E n= W.«0. U a d I m C N L m O c N m 0 2 j 5 ¢ J d d 0L 0 0. z'0- LL M 0 w)- W M N 0) V t0 (O I' I N 1 N N N r C1 m C1 1 r O) M CJ CO m 01 C) 01.01 01 co, N CO 01 CO m l 01 CO m 0 0 ; r o (V } o o c N co • v 60 co- CD O to 0 J H O v TRANSPORTATION & WAREHOUSING r J F O MISCELLANEOUS 03 CO a N N CO N CO 0- a C1 10 N c 01 co Nto, H 04 00 MISCELLANEOUS TOTAL o m ((00 v m v 0) ((0 V N N r N r O V m IN CO CO r O m 0 N v Fo a F0 N > CO O 2 CO N 04 IZI co Orr N Y ✓ m D) ▪ pp • y .O LNn m a 0 d 0 0 0. Z S c7/ M (n O Z CC J O V R K O N 31N V m .4 J F WHOLESALE TRADE LD 0 d J F 0 cc O N Cci 40 40 CO 4f/ t- o ccF- 0 O I I 1 1 v r 4') O N chi l 0) 4 8 A • d m N 0 Om "O 0 Z • d) N 5 m C 1- 1- m M N O Co 110 1:0 <1< 10 04 0 o v V � N 01 m A