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HomeMy WebLinkAboutCOW 2020-03-23 Item 3G - Report - 2019 4th Quarter Sales Tax ReportCOUNCIL AGENDA SYNOPSIS ---------------------------------- Initials Meeting Date Prepared b Major's review Council review 03/23/20 AW ITEM INFORMATION ITEM NO. 3.G. STAFF SPONSOR: AARON WILLIAMS ORIGINAL AGENDA DATE: 03/23/20 AGENDA ITEM TITLE 2019 4th Quarter Sales Tax Report CATEGORY ®Discussion Mtg Date 03/23/20 ❑Motion Mtg Date ❑Resolution Alt Date ❑Ordinance Aft Date ❑ BidAward Alt Date ❑Public Hearing Alt Date ❑ Other Mtg Date SPONSOR ❑Council ❑Mayor ❑HR ❑DCD ®Finance ❑Fire ❑TS ❑P&K ❑Police ❑Pfr ❑Court SPONSOR'S Presentation of financial results from the 4th Quarter of 2019 SUMMARY REVIEWED BY ❑ C.O.W. Mtg. ❑ CDN Comm ❑ Finance Comm. ❑ Public Safety Comm. ❑ Trans &Infrastructure ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: COMMITTEE CHAIR: RECOMMENDATIONS: SPONSOR/ADMIN. Finance COMMITTEE Information Only COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 03/23/20 MTG. DATE ATTACHMENTS 03/23/20 Informational Memorandum dated 03/23/20 125 126 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Vicky Carlsen, Finance Director BY: Aaron Williams, Fiscal Coordinator CC: Mayor Ekberg DATE: March 23, 2020 SUBJECT: Sales Tax & Misc Revenues - 4t" Quarter 2019 Year Over Year Sales Tax Comparison: Schedule I - Sales Tax in $1,000's 2018 Actual 2019 Actual YCY Change Other ---- Month ---- Other Total Other Total Construction Industries Total Collect- ed Rec'd Construc- ! tion j Industries Construc_ I tion j Industriesj I Amount 4o Amount % Amount % Jan Mar $ 116 ! $ 1;222 ! S 1.339 S 140 ! S 1.225 ! S 1;365 $ 23 20%� $ 2 0%� S 26 2°0 Feb Apr 128 1 1 211 1 1.338 62 1 1.252 1 1 314 (66) -51 %1 41 3%1 (25) -2% Mar Mav 131 i 1.487 i 1.618 102 i 1.565 i 1.668 29 -223oi 78 5°oi 50 3°0 0-1 Totals $ 375 3.920 $ 4,295 $ 304 4.042 $ 4,346 $ 71 -19%: 122 3°r6- $ 51 1% Apr Jun 122 i 1.349 1.471 119 i 1.447 i 1.566 (3) -24oi 98 7%: 95 6% May Jul 134 ; 1,492 ; 1.626 147 ; 1.356 ; 1,503 13 9%! (136) -9%! (123) -890 Jun Aug139 ! 1.682 ! 1.821 204 ! 1.647 ! 1.851 65 47°o! 35 -2%: 29 2% 0-2 Totals $ 395 ! 4.524 ! $ 4,919 S 470 ! 4.450 ! $ 4,920 $ 74 19%! 73 -2%! $ 1 0% Jul Sep 1361 16781 1.814 1651 1.5271 1692 29 21% (151) -9% (123) -790 Aug Oct 124 i 1 682 1.805 230 i 1.412 i 1 £42 106 861/6i (270) -16°oi (164) -990 Sep Nov 163 ' 1.619 1.782 309 ' 1.474 ' 1.783 146 89%1 145 -9%1 1 0% Q-3 Totals S 423 4.979 $ 6,402 5 704 4.413 $ 5,117 S 281 6630 567 -1 1 %: $ 286 -51,10 Oct Dec 129 i 1.44.6 1.574 310 i 1,408 i 1.717 181 141%, (38) -3°/oi 143 9°0 Nov Jan 152 ; 1.487 1.639 164 ; 1.514 ; 1.677 12 8%! 27 2%! 38 290 Dec Feb 149 ! 1.91.6 ! 2.065 267 ! 11871 ! 2 139 118 79%: 44 -2%: 74 4% Q-4 Totalsj S 429 ! 4.849 ! $ 5,278 $ 740 ! 4.793 ! $ 5,534 S 311 72%! 55 -1 %! $ 256 5% Totalsj S 1.623 1 18.271 1 $ 19,895 $ 2.219 1 17.698 I $ 19,916 S 596 37%1 574 -3%1 $ 22 0°l0 The final 2019 Sales tax collections finished the year at $19.9 million, which is $22k higher than the total collected in the prior year. Construction related sales taxes ended the year almost $600k greater than the prior year. All Other Industries fared better in the fourth quarter than the third quarter but still finished the year nearly $575k down compared to the prior year, which amounted to a 3% decline. 127 INFORMATIONAL MEMO Page 2 Budget to Actual Sales Tax Comparison: Schedule I - Sales Tax 'IN 0jrj:hQ • �EEVW7:: 2019 Variance 018 -- Month -- Actual Allocated Actual Collected Rec'd Budget Amt % Jan I'd ar 3 1.339 8 1.339 3 1.385 28 2% Feb Apr 1.338 8 1.338 3 1.314 (25) -2% Mar Mav 1.618 S 1.818 3 1.888 50 3% Q-1 Totals $ 4,295 $ 4,295 $ 4,346 $ 51 1% Apr Jun 1.471 $ 1.471 1;588 95 6% Mav Jul 1.626 $ 1.828 1;503 (123) -8% Jun Aug 1.821 $ 1.821 1.851 29 2% Q-2 Totals $ 4,919 $ 4,919 $ 4,920 $ 1 0% Jul Sep 1.814 1.814 1,692 (122) -7% Aug Oct 1.805 1,805 1;842 (184) -9% Sep Nov 1.782 8 1.782 1.783 1 0% Q-3 Totals S 5,402 $ 5,402 $ 5,117 $ (285) -5°la Oct Dec 1.574 8 1.574 1.717 143 9% Nov Jan 1.639 8 1.639 1.677 38 2% Dec Feb 2.065 8 2088 2.139 73 4% Q-4 Totalsi S 6,278 $ 5,279 $ 6,634 S 266 5% Totals 3 19.894 $ 19,894 19.91.6 $ 21 0% The 2019 budget for sales taxes is $19.894 million, which is nearly equal to total collections for 2018. Sales tax collections were slightly behind budget for much of the year but recovered in the fourth quarter to finish slightly above budget by $21 k. 128 INFORMATIONAL MEMO Page 3 Change YTD by Category $80a,00 Construction $595,798 $ 600,00 $400.WO $ 200,(W Transport / Wa reho n ing $9,364 Manufacturing Servrces Miscellaneous $(24,006) $(10,603) $(7,967) Retail Trade $(53,395) (200,000 ) WhV $ (155.564) ;(400,000j Automotive $(321,677) The chart above compares the prior year-to-date totals to the current year-to-date totals for the eight major categories of sales tax. Although most categories finished the year down compared to the prior year, the Construction sector activity was significant enough to offset those declines. Automotive is the largest decline compared to the prior year; this is due to one-time revenues received in 2018. 129 INFORMATIONAL MEMO Page 4 Schedule II - YTD sales tax collections - top ten industry classifications YTD YTD Dollar % Group Name Current Prior Diff. Diff. 452 General Merchandise Stores $ 2,167,481 $ 2,187,854 $ (20,373) -0.93% 722 Food Services, Drinking Places $ 2,080,421 $ 2,009,051 $ 71,370 3.55% 448 Clothing and Accessories $ 1,996,280 $ 2,084,482 $ (88,202) -4_23% 236 Construction of Buildings $ 1,670,033 $ 1,028,985 $ 641,048 62.30% 443 Electronics and Appliances $ 1,149,541 $ 1,127,863 $ 21,678 1.92% 423 Wholesale Trade; Durable Goods $ 987,675 $ 1,126,051 $ (138,377) -12.29% 441 Motor Vehicle and Parts Dealer $ 963,914 $ 1,287,283 $ (323,369) -25.12% 453 Miscellaneous Store Retailers $ 857,091 $ 834,133 $ 2-2,959 2.75% 444 Building Material and Garden $ 835,211 $ 813,656 $ 21,555 2.65% 721 Accommodation S 744,823 $ 717,341 $ 27,482 3.83% These top ten industry classifications remain relatively stable from prior years. Schedule III - YTD ten largest declines ($) in sales tax collections by industry class YTD YTD Dollar % Group Name Current Prior Diff_ Diff. 441 Motor Vehicle and Parts Dealer S 963,914 $ 1,287,283 $ (323,369) -25.12% 423 Wholesale Trade; Durable Goods $ 987,675 $ 1,126,051 $ (138,377) -12.29% 517 Telecommunications $ 626,481 $ 742,648 $ (116,167) -15.64% 448 Clothing and Accessories $ 1,996,280 $ 2,084,482 $ (88,202) -4_23% 522 Credit Intermediation $ 67,764 $ 138,858 $ (71,094) -51.20% 926 Economic Programs Admin $ 89 $ 61,641 $ (61,552) -99.86% 238 Specialty Trade Contractors $ 459,712 $ 520,840 $ (61,128) -11.74% 541 Professional, Scientific, Tech $ 704,072 $ 739,444 $ (35,372) -4_78% 454 Nc)nstore Retailers S 137,655 $ 165,495 $ (27,840) -16.82% 811 Repair and Maintenance S 147.004 $ 174,750 $ (27,746) -15.88% The chart above shows the ten largest declines compared to the prior year. 130 INFORMATIONAL MEMO Page 5 SALES TAX SUMMARY 2019 Sales Taxes (Received in Mar'19 - Feb'20) YTD YTD NAICS CONSTRUCTION 18 TOTAL 18 YTD 19 YTD % Diff NAICS AUTOMOTIVE 18 TOTAL 18 YTD 19 YTD % Diff 236 Construction of Buildings 1,028,985 1,028,985 1,670,033 62.3% 441 Motor Vehicle & Parts Dealer 1,287,283 1,287,283 963,914 -25.1% 237 Heavy & Civil Construction 73,288 73,288 89,166 21.7% 447 Gasoline Stations 98,001 98,001 99,694 1.7% 238 Specialty Trade Contractors 520,840 520,840 459,712 -11.7% TOTAL AUTOMOTIVE $ 1,385,284 $ 1,385,284 $ 1,063,607 TOTAL CONSTRUCTION $ 1,623,112 $ 1,623,112 $ 2,218,910 Overall Automotive Change from Previous Year ($321,677) .23.2% Overall Construction Change from Previous Year $ 595,798 36.7% NAICS RETAIL TRADE 18 TOTAL 18 YTD 19 YTD % Diff YTD 442 Furniture & Home Furnishings 521,980 521,980 565,878 8.4% MANUFACTURING 18 TOTAL 18 YTD 19 YTD % Diff 443 Electronics & Appliances 1,127,863 1,127,863 1,149,541 1.9% 311 Food Manufacturing 25,347 25,347 26,862 6.0% 444 Building Material & Garden 813,656 813,656 835,211 2.6% 312 Beverage & Tobacco Products 12,739 12,739 12,837 0.8% 445 Food & Beverage Stores 306,566 306,566 311,945 1.8% 313 Textile Mills 234 234 130 -44.2% 446 Health & Personal Care 289,962 289,962 274,638 -5.3% 314 Textile Product Mills 10,477 10,477 11,628 11.0% 448 Clothing & Accessories 2,084,482 2,084,482 1,996,280 -4.2% 315 Apparel Manufacturing 668 668 367 -45.1% 451 Sporting Goods, Hobby, Books 535.648 535,648 508,525 -5.1% 316 Leather& Allied Products 63 63 73 15.5% 452 General Merchandise Stores 2,187,854 2,187,854 2,167,481 -0.9% 321 Wood Product Manufacturing 2,780 2,780 3,105 11.7% 453 Miscellaneous Store Retailers 834,133 834,133 857,091 2.8% 322 Paper Manufacturing 24,921 24,921 22,299 -10.5% 454 Nonstore Retailers 165,495 165,495 137,655 -16.8% 323 Printing & Related Support 18,725 18,725 25,202 34.6% TOTAL RETAIL TRADE $ 8,867,639 $ 8,867,639 $ 8,804,245 324 Petroleum & Coal Products 90 90 103 14.2% Overall General Retail Change from Previous Year ($63,395) -0.7% 325 Chemical Manufacturing 5,207 5,207 4,124 -20.8% 326 Plastic & Rubber Products 7,207 7,207 4,068 -43.6% YTD 327 Nonmetallic Mineral Products 5,225 5,225 5,827 11.5% SERVICES 18 TOTAL 18 YTD 19 YTD % Diff 331 Primary Metal Manufacturing 1,169 1,169 872 -25.4% 51X Information 959,342 959,342 988,506 3.0% 332 Fabricated Metal Mfg Products 10,044 10,044 6,122 -39.1% 52X Finance & Insurance 143.696 143,696 65,075 -54.7% 333 Machinery Manufacturing 7,720 7,720 4,188 -45.8% 53X Real Estate, Rental, Leasing 658,861 658,861 707,128 7.3% 334 Computer & Electronic Products 27,781 27,781 14,628 -47.3% 541 Professional, Scientific, Tech 739,444 739,444 704,072 -4.8% 335 Electric Equipment, Appliances 14,910 14,910 18,412 23.5% 551 Company Management 2 2 53 0.0% 336 Transportation Equipment Mfg 46,543 46,543 41,256 -11.4% 56X Admin, Supp, Remed Svcs 316,828 316,828 325,783 2.8% 337 Fumiture & Related Products 9,130 9,130 7,015 -23.2% 611 Educational Services 5.738 5,738 5,953 3.7% 339 Miscellaneous Manufacturing 31,721 31,721 29,576 -6.8% 62X Health Care Social Assistance 88,209 88,209 85,567 -3.0% TOTAL MANUFACTURING $ 262,700 $ 262,700 $ 238,694 71X Arts & Entertainment 304,385 304,385 314,765 3.4% Overall Manufacturing Change from Previous Year ($24,006) -9.1 % 721 Accommodation 717,341 717,341 744,823 3.8% 722 Food Services, Drinking Places 2,009,051 2,009,051 2,080,421 3.6% YTD 81X Other Services 260,134 260,134 227,568 -12.5% TRANSPORTATION & WAREHOUSING 18 TOTAL 18 YTD 19 YTD % Diff 92X Public Administration 71,562 71,562 14,275 -80.1% 481 Air Transportation 2 2 0 0.0% TOTAL SERVICES $ 6,274,592 $ 6,274,592 $ 6,263,989 482 Rail Transportation 80 80 46 -42.1% Overall Services Change from Previous Year ($10,603) -0.2% 483 Water Transportation 1,622 1,622 305 -81.2% 484 Truck Transportation 2,537 2,537 1,916 -24.5% 485 Transit and Ground Passengers 715 715 859 20.1% YTD 487 Scenic and Sightseeing Tran 7,549 7,549 1,338 -82.3% MISCELLANEOUS 18 TOTAL 18 YTD 19 YTD % Diff 488 Transportation Support 38,474 38,474 55,956 45.4% 000 Unknown 0 0 0 0.0% 491 Postal Services 1,034 1,034 797 -23.0% 111-115 Agriculture, Forestry, Fishing 1,737 1,737 1,991 14.6% 492 Couriers & Messengers 1,816 1,816 2,494 37.3% 211-221 Mining & Utilities 693 693 1,235 78.3% 493 Warehousing & Storage 2,362 2,362 1,845 -21.9% 999 Unclassifiable Establishments 113,390 113,390 104,627 -7.7% TOTAL TRANSP & WHSING $ 56,191 $ 56,191 $ 65,555 MISCELLANEOUS TOTAL $ 115,820 $ 115,820 $ 107,853 Overall Transportation Change from Previous Year $9,364 16.7% Overall Miscellaneous Change from Previous Year ($7,967) -6.9% YTD WHOLESALE TRADE 18 TOTAL 18 YTD 19 YTD % Diff 423 Whls Trade -Durable Goods 1,126,051 1,126,051 987,675 -12.3% YTD 424 Whls Trade -Nondurable Goods 180,401 180,401 163,323 -9.5% 18 TOTAL 18 YTD 19 YTD % Diff 425 Wholesale Electronic Markets 2,719 2,719 2,609 -4.0% GRAND TOTALS $19,894,510 $19,894,510 $19,916,461 WHOLESALE TRADE TOTAL $ 1,309,170 $ 1,309,170 $ 1,153,607 Grand Total Change from Previous Year $21,951 0.11 % Overall Wholesale Change from Previous Year ($155,564) .11.9% Grand Total Change from Previous Year - Without New Construction ($573,847) -3.14% 131 INFORMATIONAL MEMO Page 6 Schedule IV - Gambling Tax tat (d) 2019 INCREASE (DEGREASE) Quarter 2018 2019 Allocated YEAR OVER YEAR BUDGET VARIANCE Earned Actual Actual Budget Amount % Amount % Q1 $ 985,901 $ 999.638 $ 1:130,363 $ 13:737 1% $ (130,725) -12% Q2 841;104 947.463 964.350 106, 359 13% (16,886) -2% 03 985,431) 1,029,502 1:129,833 44,063 4% (100,331) -9% Q4 943,242 880.337 1,081,454 (62.905) -7% (201:117) -19% Totals $ 3,756,686 $ 3,866,941 $ 4,306,000 $ 101,255 3°i0 $ (449,069) -10% Schedule V - Admissions Tax '� (d) 2019 INCREASE (DECREASE) Quarter 2018 2019 Allocated YEAR OVER YEAR BUDGET VARIANCE Earned Actual Actual Budget Amount 0/0 Amount 11/0 Q1 $ 206;037 $ 272,521 $ 185;910 $ 66;484 32% $ 86;611 4711/o Q2 249,096 251,285 224,762 2,190 10/0 26,523 1211/o Q3 209,385 214,495 188.931 5,110 2% 25.564 1411/o 04 277.505 218,532 250,397 (58,973) -2111/c (31.865) -13% Totals $ 942,023 $ 956,833 $ 860,000 $ 14,811 2% $ 106,833 18010 Schedule VI - Telecommunications Utility Tax (C" (d) 2019 INCREASE (DECREASE) Quarter 2018 2019 Allocated YEAR OVER YEAR BUDGET VARIANCE Earned Actual Actual Budget Amount % Amount % Q1 $ 292,954 $ 236,604 $ 353,342 $ (56,350) -19% $ (1163,738) -33% 02 279,555 228,313 337,182 (51,243) -18% (108;869) -32% 03 266,563 227,053 321,511 (39,510) -15% (94,458) -29% 04 280,205 255,078 337,965 (25,127) -9% (82,887) -25% Totals $1,119,276 $ 947,048 $ 1,350,000 $ (172,229) -21 % $ (402,952) -40% (a) Gambling tax includes card games, punch boards, pull tabs and amusement games. (b) Excludes golf course admission tax. (c) Telecommunications Utility tax includes cellular, pager and telephone usage. (d) Actuals reflected in Schedules IV, V and VI are amounts earned for the quarter. 132