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HomeMy WebLinkAboutFIN 2018-09-05 Item 2C - Report - 2018 2nd Quarter Sales and Miscellaneous Revenue ReportCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Peggy McCarthy, Finance Director BY: Aaron Williams, Fiscal Coordinator CC: Mayor Ekberg DATE: August 24, 2018 SUBJECT: Sales Tax and Miscellaneous Revenue Report- 2nd Quarter 2018 Schedule I - Sales Tax, in 61,000's 2017 Actual 2018 Actual YOY Change i i i i i i i i i i i Other ! --- Month ---- Other ! Total ' Other ' Total Construction ; Industries ' Total Collect- Construc-! ! Construc,i i 1 ! !Amount ed ReCd tion i Industries ! ' 1 tion ! Industries' ! 1 Amount % % ! Amount ! 1 b. Jan Mar $ 123 ! $ 1,149 ! $ 1,272 $ 116! $ 1,222 ! S 1,339 $ (6) -5%! $ 73 6%! $ 67 5% Feb Apr 83 ! 1„123 ! 1,206 128 1 1,211 ! 1,3,38 45 54%! 88 8°/0! 132 1156 Mar May 120' i 1,664 i 1,784 131 1 1 497 i 1,618 11 9%! (177) -11%i (1'6'6) -9%, 0-1 Totals\ $ 326 ! 3,936 ! $ 4,262, $ 375 ! 3,920 ! $ 4,295 $ 4-9 16%!1 (16) 0%! $ 33 1% Apr Jun 90 ! 1,317 i 1,408 122 ! 1,349 ! 1,471 32 35%! 3-2 2%i 64 5c,!!!) May Jul 103 " 1 318 ' ! 1 421 134 ! 1,492 ! 1,626 31 3056! 174 13%! 205 14% JUR Aug 116 , 1,391 ! 1,5,06 139. : 1,6821 : 1,921 23- 20%; 292 21%; 315 21©% 0-2, Totals S 3,09 ! 4,026 ! $ 4,335 $ 395 ! 4,524 ! $ 4.919 $, 86, 28%! 498 12%! $ 584 13% Jul Sep 130 ! 1,377 ! 1„508 - Aug Oct 125! 1 345 ! „ 1,471 - Sep Nov 140 i 1,473 i 1,613 - Q-3 Totals S 386! 4,196 ! $ 4,591 $ - CPX!' i - 0%! i - 0% Oct Dec 145 ! 1,329! 1,473 , ., Nov Jan 110! 1,424 ! 1,534 - 1 Dec Feb 120 ! 1,849 : 1.969 Q-4 Totals 5 374 ! 4,602 ! $ 4,976 - _ - - 0%, - 0%! $ - 054 Totals $ 1,404 ! 16,760 ! $ 18,164 $ 770 1 8,444 ! $ 9,214 $ 136 10%! 482 3%! $ 617 3% Second Quarter sales tax collections increased $584 thousand or 13`)/0 over the same period in 2017. Of this increase, Construction related sales tax accounted for an increased $86 thousand or 28% while all other industries accounted for an increase of $498 thousand or 12% when compared to the same period in 2017, 31 INFORMATIONAL MEMO Page 2 Budget to Actual - Sales Tax in $1,000's -- Month -- Collected Reed Jan Mar Feb Apr Mar May Q-1 Totals 2017 2018 Ni"aliatice Actual 1,272 1,206 1,784 4 262 Allocated Actual Budget 5. 1,396 $ 1,339 1,323 $ 1,338 1,958 $ 1,618 4,671 $ 4,295 Apr •(Vey Jun Jun Jul Aug -2 Totals •1,408 1,421• •1,506 4,335 $ 1 545 1 471 $ 1,559 1 526 •$ 1,653 1,821 4,757 $ 4,919 Arnt % (57) 15 1% (340) -1794 (74) -5% 7 494 168 10% Jul Sep Aug Oct Sep Nov Q-3 Totals Oct Dec Nov Jan Dec Feb Q-4 Totals 1,506 1 471 1,613 4,591 1473 1,534 1,969 4,976 $ 1,654 $ 1,614 •$ 1,770 5,038 $ 1,617 5 1 683 $ 2,161 5,461 $ 0% $ 0% Totals 18,164 $ 19,9:3.2 $ 9 214 $(220) -1% Actual sales tax collected in the second quarter was $162 thousand greater than anticipated, representing a 3% positive variance from budget. Overall year-to-date sales tax collection through the second quarter is $220 thousand under budget, which is 1% less than budget expectations. Sales tax collections during the past two months (May and June) have exceeded budget expectations by $235 thousand. This increase can be mostly attributed to the category 441-Motor Vehicle and Parts Dealer from a manufacture of buses. 32 VV:IFIN Projects \Sales fax Information120181_Memo files\ Info Memo Sales Tax-2018-Q2.clocx INFORMATIONAL MEMO Page 3 Below inograph nfthe yoor-to-datochanges insales tax collections bvindustry type year over year. ( $100,000 � Manufacturip 532,537 Change YTD by Category ! Wholesaie Trade / Automotive zm 53m i $2a,7a / i | | _Retail Trade _ / | wzz��w All industry categories show an increase in sales tax except for transportation/warehousing, which had m$2.83Odecline. The miscellaneous category contains sales tax from periodic and one-time type transactions. Excluding this miscellaneous oote0ory, year -over -year sales tax through the 2"^ quodar2O18 increased by$831 thousand. WARN ProjectmSales Tax /omrm*fiomz 1oLmomvnles\lmnMemo Sales mx-2018-Q2,docx INFORMATIONAL MEMO Page 4 Schedule II shows year-to-date sales tax collections from the top ten industry classifications. Schedule II - YID sales tax collections - top ten industry classifications Group Naine 722 Food Services., Drinking Places 452 General Merchandise Stores 448 Clothing and Accessories 423 Wholesale Trade, Durable Goo-ds 441 Motor Vehicle and Parts Dealer 236 Construction of Buildings 443 Electronics and Appliances 444 Building Material and Garden 453 MisceHaneous Store Retailers 517 Telecommunications YTD YTI) Cairreitt Prior 973,a79 5 965,467 5 935,2165 565,535 5 5 557,218 5 514,527 5 soo,..419 s 403,303 371,27'5 355,433 5 910 341 5 943,609 S 913,602 5 482,063 5 349,360 379,001 $ 506,77 364, 086 Si 335,554 304,971 5 Dollar Diff. Diff. 62„888 21,857 21,614 83,472 207858 135,526 (6,351) 19,216 as,721 50,462 6.91% 2.32% 2 37% 17 32% 59 50% 35 76% 8% 5 GO% 10.65% 16.55% The top three industry classifications remain unchanged compared to the prior quarter, with 'Food Services, Drinking Places' topping the list. The chart below illustrates these three groups over past ten years, highlighting the relative growth in the Food Services category. General Merchandise Stores (such as Costco and Target) and Clothing and Accessories retailers (such as Nordstrom and Kohl's) is anticipated to finish the year just ahead of the Food Services, Drinking Places based on past consumer spending trends in the second half of the year. Sales Tax -Top three industry classifications 2009-2018 2009 '..24.1:10 2011 .2012: 2013' .2.014 2015 2016 .2017 (Prtijettedi•. mm.722 Food SerVites„.Drir*:..ingPt:aces General Merthandse Clothing:ancl. Accessories. 34 VV:1FIN Projects\Sales Tax Information120181_Memo files\Info Memo Sales Tax-2018-Q2docx INFORMATIONAL MEMO Page 5 Schedule III shows the year-to-date ten largest declines in sales tax collections by dollar difference by industry collected. Schedule YTD ten lar est declines (S) in sales tax collections by industry class t:irou p Name Nonclassifiable Establishments 454 Nonstore Retailers 62-1 Ambulatory Health Care Service 238 Specialty Trade Contractors 926 Economic Programs Adndn Transportation Support Electronics and Appliances 515 Broadcasting (except Internet) 323 Printing and Related Support 812 Personal and Laundry Semres ;.; YTD YTD Dollar Current Prior. Dili. 55,060 5 51 55223 5 32,370 .5 5 777,728 5 30,535 S 5 18,026 .51 500,419 5 2,809 5 10,794 5 42,85,6 5 270,N3 5 135,070 5. 51,442 .5 239,585 5 41,464 26,800 508,770 5 7,339 5 13,953 5 45,242 S (215,003( (49,647') (19,072) k 16,85 (10,929) 774) (6,351) (4,530) 0,159) (2,3681 -7961% -36 90% -37 07% -26 36% -40 20% -61 73% -2264% -527% The largest decline was in the 999-Nonclassifiable Establishments industry category (also referred to as the miscellaneous category), which reflects a large art related transaction in the prior year. No trends were detected when analyzing these groups compared to prior periods. VVAFIN Projects \Sales Tax Information120181 Memo fileslInfo Memo Sales Tax-2018-Q2.docx 35 CY) Projects\Sales Tax Information s swan oluksaig ouniAng SALES TAX SUMMARY 2nd Quarter 2018 (Received in March 2018 - August 2018) NAICS CONSTRUCTION 17 TOTAL 236 Construction of Buildings 844,13.6 237 Heavy & Civil Construction 107,260 238 Specialty Trade Contractors 462,376 TOTAL CONSTRUCTION $ 1,413,773 $ Overall Construction Change from Previous Year MANUFACTURING 17 TOTAL YTD 17 YTD 18 YTD %Diff 379,001 514,527 35,8% 23,915 33,184 38.8% 239,585 222,728 -7.0% 642,501 $ 770,439 $127,937 19.9% rro 17 YTD 18 YID %Diff 311 Food Manufacturing 312 Beverage & Tobacco Product 313 Textile Mills 314 Textile Product Mills 315 Apparel Manufacturing 316 Leather & Allied Products 321 Wood Product Manufacturing 322 Paper Manufacturing 323 Printing & Related Support 324 Petroleum & Coal Product 325 Chemical Manufacturing 326 Plastic & Rubber Products 327 Nonmetallic Mineral Products 331 Primary Metal Manufacturing 332 Fabricated Metal Mfg Products 333 Machinery Manufacturing 334 Computer & Electronic Products 335 Electric Equipment Appliances 336 Transportation Equipment Mfg 337 Furniture & Related Products 339 Miscellaneous Manufacturing TOTAL MANUFACTURING 10,703 11,960 409 14,792 888 88 3,740 24,646 28,490 41 -15,834 3,955 5,081 1,803 8,752 6,300 10,531 3,949 29,297 8,432 19,765 $ 177,788 $ Overall Manufacturing Change from Previous Year TRANSPORTATION & WAREHOUSING 17 TOTAL 4,404 8,335 89.3% 6,267 5,909 -5.7% 358 149 -58.5% 7,247 7,062 -2.5°,0 561 261 -53.5% 48 24 -50.2% 1,318 938 -28.8% 12,275 12,586 2.5% 13,953 10,794 -22.6% 9 52 459.4% 227 2,992 1220.1% 2,029 2,276 12.2°A 1,481 2,132 44.0% 772 613 -20.6% 4,374 5,417 23,8% 1,933 4,354 125.3% 5,141 13,122 155.2% 2.921 9,097 211.4% 17,896 21,540 20.4% 2,896 6,039 108.5% 8,100 13,057 61.2% 94,211 $ 126,749 $32,537 34.5% YTD 17 YTD 18 YTD %Diff 481 Air Transportation 482 Rail Transportation 483 Water Transportation 484 Truck Transportation 485 Transit and Ground Passengers 487 Scenic and Sightseeing Tran 488 Transportation Support 491 Postal Services 492 Couriers & Messengers 493 Warehousing & Storage TOTAL TRANSP & WHSING 11 169 86 1,852 395 57 47,071 816 1,600 1,878 53,936 $ Overall Transportation Change from Previous Year WHOLESALE TRADE 17 TOTAL 11 0 0.0% 96 29 -692% 42 4 -906% 1,052 922 -12.4% 16 357 2117,5% 57 6,755 11678.7% 26,800 16,026 -40.2% 463 515 11.4°4 477 1,107 132.2% 838 1,300 55,1% 29,852 $ 27,016 ($2,836) -9.5% YTD 17 YTD 18 YTD % Diff 423 Whls Trade -Durable Goods 1,018,477 482,063 565,535 17,3% 424 Whls Trade -Nondurable Goods 155,695 77,489 81,539 5.2°/. 425 Wholesale Electronic Markets 2,696 1,281 1,337 4,4% WHOLESALE TRADE TOTAL $ 1,176,868 $ 560,833 $ 648,411 Overall Wholesale Change from Previous Year 887,578 15.6% NAICS AUTOMOTIVE 441 Motor Vehicle & Parts Dealer 447 Gasoline Stations NAICS 442 443 444 445 446 448 451 452 453 454 17 TOTAL 709,541 91,039 TOTAL AUTOMOTIVE $ 800,581 $ Overall Automotive Change from Previous Year RETAIL TRADE Furniture & Home Furnishings Electronics & Appliances Building Material & Garden Food & Beverage Stores Health & Personal Care Clothing & Accessories Sporting Goods, Hobby, Books General Merchandise Stores Miscellaneous Store Retailers Nonstore Retailers TOTAL RETAIL TRADE 17 TOTAL 445,454 1,168,189 805,251 257,762 298,682 2,066,870 533,560 2,131,267 738,487 248,748 $ 8,694,271 $ 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 72X Accommodation & Food Svcs 81X Other Services 92X Public Administration TOTAL SERVICES 17 YID 349,360 43,543 392,902 $ 17 YTD 215,529 506,770 384,086 117,430 141,664 913,602 232,366 943,609 335,554 135,070 3,925,680 5 18 YID 557,218 47,422 604,640 $211,737 53.9% % Oiff 59.5% 8.9°4 18 YTD %Diff 224,971 4.4% 500,419 -1,3% 403,303 5.0% 140,355 19.5%0 145,982 3,0% 935,216 2.4% 264,147 13,7% 965,467 2.3% 371,275 10.6% 85,223 -36,9% 4,036,357 8110,676 2.8% 17 TOTAL 17 YTD 18 YTD 820,832 10,6,045 623,983 547,039 9 170,046 10,355 119.513 256,620 2,536,470 270,882 87,143 5,548,937 $ Overall Services Change from Previous Year MISCELLANEOUS 000 Unknown 111-115 Agriculture, Forestry, Fishing 211-221 Mining & Utilities 999 Unclassifiable Establishments MISCELLANEOUS TOTAL Overall Miscellaneous Change from Previous Year 398,258 40.719 292,741 270,483 0 75,791 3,228 68.778 130.601 1,222,924 130,180 46,802 2,680,505 450,457 64,040 310,792 307,738 1 143,565 3,061 50,009 150,027 1,300,140 129,731 35,278 $ 2,944,840 $264,334 17 TOTAL 17 '(ID 18 YTD 0 0 0 1,089 206 307 547 210 203 296,439 270,0.63 55,060 $ 298,074 $ 270,479 55,570 (S214,910) .79.5% '(ID % Diff 13.1% 57.3% 6.2% 13.8% 0.0% 89.4% -5,2°4 -27.3% 14,9°L 6.3% -0.3% -24,6% 9.9% YTD % Diff 0.0% 49.1% -3.6% -79.6% 17 TOTAL 17 YTD 18 YTD % DPI GRAND TOTALS $18,164,227 $8,596,964 $9,214,020 Grand Total Change from Previous Year $617,056 7.18% Grand Total Change from Previous Year - Without New Construction $489,119 6.15% (Q eD 0 0) H 0 INFORMATIONAL MEMO Page 7 Schedule IV shows quarterly gambling tax performance year over year and for the current year compared to budget. Schedule IV - Gambling Tax ' (d) 2018 Quarter 2017 2018 Allocated Earned Actual Actual Budget INCREASE (DECREASE} YEAR OVER YEAR BUDGET VARIANCE Amount Amount Q1 $ 977,003 $ 985,901 $ 99$)831 Q2 983,322 •841 104 1(002,272 Q3 1.3:i 970,337 Q4 958,503 976,974 $ 8 898 1% (142,218) -14% (161 168) -16% Totals S 3,870,819 $ 1)827) 1 $ 3,945,414 $ (133,319) -3% $ (171,091) During the second quarter Gambling tax revenue was 14% below the prior year and 16% less than budget. The City has four casinos — the Riverside Inn, the Great American, the Fortune (formerly the Golden Nugget) and the Macau. An analysis of the second quarter gambling taxes show that the decline in the second quarter is attributed to one casino and not a trend among all casinos. Gambling tax is budgeted to increase by 2`)/0 over 2017 actual revenue. Schedule V shows quarterly admissions tax performance year over year and for the current year compared to budget. Schedule V - Admissions Tax t) (d) 2018 INCREASEDECREASE) Quarter 2017 2018 Allocated YEAR OVER YEAR BUDGET VARIANCE Earned Actual Actual Budget Amount Amount 0.1 $ 166 003 5 206 037 5 176,211 Q2 157 574 248 570 167 263 Q3 177 422 188 331 Q4 171,641 182 195 $ 40,034 2438 3 29,827 1738 90,996 58% 81,307 4938 Totals $ 672,640 $ 454,607 $ 714,111 $ 131.030 19% $ 111,133 16% Second quarter admissions tax revenue was $91 thousand, or 58% more than the same period last year and exceeded the budget expectation by $81 thousand or 49%. A major contributor to the increase is a new entertainment venue in the Central Business District. Admissions tax is budgeted to increase 6% over 2017 actual revenue. Schedule VI shows quarterly telecommunications utility tax performance year over year and for the current year compared to budget. Schedule VI - Telecommunications Utility Tax 2018 Quarter 2017 2018 Allocated Earned Actual Actual Budget 01 $ 323,708 292,9E4 5319,585 Q2 312,456 279,555 308,476 Q3 388,433 383,486 Q4 316,497 312,466 INCREASE (DECREASE) YEAR OVER YEAR. BUDGET VARIANCE Amount Amount 38 $ (30,754) -1038 $ (26.632) (32,900) -11% (28,921) -9% Totals $ 1,3410 572,509 $ 1,324,013 $ (63,655) -5% $ 155,552) 4% Second quarter telecommunications utility tax was $33 thousand, or 11% less than the previous year and $29 thousand less than budget. The 2018 revenue is budgeted at 1% less than 2017 actual revenue. (a) (b) (c) (d) Gambling tax currently includes card games, punch boards, pull tabs, and amusement games. Excludes golf course admissions tax. Telecommunications Utility tax currently includes cellular, pager and telephone usage. Actuals reflected in Schedules IV, V and VI are amounts earned for the quarter. WARN Projects\Sales Tax Information \20181Memo tiles \Info Memo Sales Tax-2018-02.docx 37 INFORMATIONAL MEMO Page 8 Chart 1 Ati Sales Tax 2009-2018 AD Sales Tax 2009-2018 26819 2010 2011 2012 2013 '2014 2015 2016 2017 2018 (Projected) Chart 2: Sales Tax by ajor Sector (Retail, Services, A Other Sales Tax: by Major Sector 2009-2018 2009 2010 2011 2012 2013 2014 2015 2016• 2017 2018 •(Projected) Ri St0rvices 03-076262151t71ers 38 VV:\FIN Projects \Sales Tax Information120181_Memo fileskInfo Memo Sales Tax-2018-Q2.docx INFORMATIONAL MEMO Page 9 Chart 3: Sales Tax collection history top three AICS codes Sales Tax: Top Three NAKSS codes 2009-2018 2,4410,0410 2,200AX) 2 0011 0120 2009 2010 2011 201,1 2013 2014 2015 2016 2017 2018 iPragented 1722.-Food Services, Drinking Places 452-General Martha ottse Stores, ----,4424111oth g and Accessories Chart 4: Sales Tax from Construction Activities 2009-2018 Sales Tax: Construction 2009 201.0 2011 2012 201.3 2014 201.5 2016 2017 2012 (Ptojected 1 Includes: 236-Construction of Buildigs, 237-Heavy 8, Civil Construction and 238-Specialty trade contractors.. VV:IFIN Projects \Sales Tax Information120181Memo files \ Info Memo Sales Tax-2018-Q2.docx 39 INFORMATIONAL MEMO Page 10 Chart 5: iscellaneous sales tax history 2009-2018 Sales Tax: 'iscellaneous Categories 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 (projected) includes: Unclassifiable Establishments as well as Agriculture, Forestry and Mining categories: Chart 6: Sales Tax collections for 4)000,000 3 500,000 3 01133,000 2 500 000 2 000,000 " 1,500 000 1 000,000 500,81X1 VASMIACCL ajor Retial categories 2009-2018 2003 2010 2011 2012 2013 2-014 2015 2016 201.7 2018 (Projected) 214(3-48ectronics and Apptiarxes (4)tt3PQotlning.end-)Aaeseories )6023-515203eneraiMerchardiseStiore0 OtherReta4 40 W:\FIN Projects \Sales Tax Information120181_Memo files1Info Memo Sales Tax-2018-Q2,docx INFORMATIONAL MEMO Page 11 Chart 7: Sales Tax collections for Services categories 2009-2018 .10.0981.1411 1010 2012 . 226.-60161.Setekes 160ging 2615 2016 5'.'3012Red. Estates Rentettlea§leg ...Allah& Semites 2017 2018 Pr ejected WAFIN Projects\Sales Tax Information120181 Memo files\Info Memo Sales Tax-2018-Q2docx 41