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City of Arvada Sales Tax Revenue Report August 2012 Taxes Receipted September 2012 Overview

Total sales tax collections were 7.35% above the same amount received in August of 2011. A total of $3.896 million was received this year as compared to $3.630 million in 2011. To date, our sales tax collections are now 6.04% above last year and 4.89% above our original budgeted amount. We did revise the sales tax collections to a four percent increase over 2011 as we estimated the ten-year model; thus we are now 2.89% above our revised forecast. As Page 4 illustrates, our monthly collections have been as low as 1.26% over 2011 and as high as 8.71%. At this point, a four percent increase above our original budget should be sustainable; November and December usually reflect our highest collections due to the grocery store expenses.

 $5,000,000

Total Monthly Collections

 $4,500,000  $4,000,000  $3,500,000  $3,000,000

2010

 $2,500,000

2011

 $2,000,000

2012

 $1,500,000  $1,000,000  $500,000  $‐ Jan Feb Mar Apr May June Jly Aug Sept Oct Nov Dec

Two of the three types of use taxes are higher in August 2012 as compared to the same period 2011. General Use tax is the only one that is lower than last year at this time.  $6,000,000 Now that we have collections through Total Receipts through September August, we estimate General Use tax will  $5,000,000 be short of budget by at least $200,000.  $4,000,000 General

 $3,000,000

Auto Building

 $2,000,000  $1,000,000  $‐ 2012 Budget

YTD 2012

YTD 2011

Sales Tax Receipts Detail

 $30,000,000

It is important to review the sales tax detail to determine the source of the revenue. First, the following graph provides the allocation of the sales tax to the two areas: General and Public Safety or Tax Increment. The graph also provides comparisons through the years 2007–2012 Budget. We continue to examine the history from the onset of the Great Recession through today. Clearly, our sales tax receipts surpass our lowest levels of 2008 and 2009. We have now surpassed our highest year of collections in 2008.

However, through September Building Use tax collections had already surpassed the budget estimate by $409,000. Over $2.052 million had been collected as compared to $1.724 million in 2011 through the third quarter. Auto Use tax collections are now 76% of the total budget of $4.881 million for 2012. We expect to exceed the budget because the $3.712 million collected represents only eight months as this revenue source lags by a month.

Total Receipts as of September

 $25,000,000  $20,000,000  $15,000,000

Voter‐Approved Police Sales Tax General

 $10,000,000  $5,000,000  $‐ 2007

2008

2009

2010

2011

2012

2012 Budget

Voter‐Approved Police Sales Tax $3,532,580 $3,614,825 $3,434,660 $3,457,130 $3,591,028 $3,851,959 $3,791,136 General

$23,045,042 $23,584,550 $22,399,179 $22,705,520 $23,195,004 $24,552,905 $23,288,409

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Types of Businesses

Page 5 illustrates the significant number of types of businesses we analyze. For the purposes of this summary, we combine the following areas: Restaurants/Fast Food/and Fast Food Casual; Grocery and Health Food/Specialty; and Public Utilities and Telephone. We also combine Liquor Stores, Drug Stores, Auto Care, Office Supplies and Furniture into “All Others.”

Clothing Stores Restaurants & Fast Foods General Department Grocery/Health Utilities/Telecommunications Retail Hardware Auto Care Drug Stores All Others Total

Jan - Aug 2010 $650,526 $2,911,909 $4,787,620 $4,553,785 $4,395,701 $2,024,925 $1,089,529 $248,730 $5,775,200 $26,189,195

Jan - Aug 2011 $666,895 $3,001,884 $5,001,989 $4,608,233 $4,282,868 $1,943,735 $1,138,789 $267,631 $5,884,796 $26,796,820

Jan - Aug 2012 $666,564 $3,293,632 $5,286,441 $5,167,975 $4,350,241 $2,104,240 $1,190,409 $265,280 $6,080,083 $28,404,865

% Change 2011/2012 -0.05% 9.72% 5.69% 12.34% 1.57% 8.26% 4.53% -0.88% 3.32% 6.00%

The above table includes rebates and late fees; thus, the total tax collections. Also, these numbers have been adjusted to “smooth” the collections from one major business. This business makes 13 payments, and the payment has already been made, but historically, it usually is paid in the July/August payments. Thus, these numbers do not match the Oracle receipts.

Our grocery store segment comprises 18.2% of our total collections. Through August collections and September receipts, total sales taxes are $567,742 more than the same period in 2011.

Information by Location

The following is a compilation of area shopping centers. Page 3 of the Attachments provides additional information. 2011/2012 % Change 3,532,668 16.87% 1,079,686 2.02% 485,603 27.14% 3,238,819 5.56% 8,640,509 7.58%

Jan - Aug '09 Jan - Aug '10 Jan - Aug '11 Jan - Aug '12 80th/Sheridan/Wadsworth 64th Eastside/Sheridan/Wadsworth 88th/Wadsworth 64th Westside/Ward/Indiana/McIntyre City Center/Olde Town

$ $ $ $ $

3,618,132 1,068,481 2,945,474 7,732,431

$ $ $ $ $

3,119,675 1,022,690 308,365 2,932,658 7,920,396

As illustrated, all areas of the City presented are increasing. Olde Town and City Center generates 30.42% of our total collections in 2012. This is up from 29.97% last year. As the detail illustrates Olde Town, while generating only 1.67% of our total collections, has actually had a 13.64% increase in sales tax generation over 2011.

Due to holiday shopping, November and December generally represent the most significant tax collections for the year in the City.

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$ $ $ $ $

3,022,667 1,058,352 381,941 3,068,328 8,031,709

$ $ $ $ $

2011-2012 $ Change $ 510,001 $ 21,334 $ 103,662 $ 170,491 $ 608,800


Use Taxes

There are three types of use taxes: General, Auto and Building. The first two are collected one month in arrears. This means we have only eight months’ worth of collections. Building Use Tax is collected here at the City with the issuance of a building permit; thus the following graph provides nine months’ of information. The graph provides information for six years. As stated in the introduction, the only concern is General Use tax. We have fallen General and Auto Collections Through August to pre-Great Recession Building Collections Through September levels. Businesses pay this tax when they are adding interior things to  $9,000,000 their buildings (shelves,  $8,000,000  $7,000,000 etc.) or for supplies for  $6,000,000 which they have not paid  $5,000,000  $4,000,000 tax. Generally, one would  $3,000,000 see this as an indicator of  $2,000,000  $1,000,000 increasing business.  $‐

Jan ‐ Aug '07

Jan ‐ Aug '08

General

$739,866

$1,080,93

$912,653

$922,981

Auto

$3,731,88

$3,484,40

$2,933,91

$3,006,38

Bldg

$1,447,81

$1,372,87

$1,381,39

$1,642,85

$1,724,53

Summary

After eight months of receipts and assuming there will not be a fiscal meltdown due to external forces, the estimates to the end of the year continue to assume we will meet our budgeted estimates in every category except General Use tax. Obviously, we will have other revenues to offset the budget shortfalls in this category. Please call with any questions. Report Prepared By: Victoria A. Runkle Finance Director

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Jan ‐ Aug '09

Jan ‐ Aug '10

Jan ‐ Aug '11

Jan ‐ Aug '12

2012 Budget

$1,034,57

$786,597

$1,548,00

$3,338,75

$3,712,37

$1,643,28

$2,052,47

$4,881,50


x 100000

0

5

10

15

20

25

30

35

40

45

50

Sales/Receipts* Jan/Feb Feb/Mar Mar/Apr Apr/May May/June June/July July/Aug Aug/Sept Sept/Oct Oct/Nov Nov/Dec Dec/Jan

4

Jan/Feb

Feb/Mar

May/June

June/July

July/Aug

2012 Budget

Aug/Sept

28,404,865 $ 27,079,546

Sales Tax Total All Funds Total All Funds Fund 26 2012 Actual 2012 Budget 336,177 3,278,198 $ 3,237,444 336,177 3,224,491 $ 3,113,773 336,177 3,623,235 $ 3,484,930 336,177 3,453,296 $ 3,288,598 336,177 3,541,401 $ 3,441,555 336,177 3,846,266 $ 3,580,323 336,177 3,541,160 $ 3,348,276 336,177 3,896,818 $ 3,584,647 0 $ 3,470,971 0 $ 3,321,166 0 $ 3,348,459 0 $ 4,421,613

$ 2,689,413

$ $ $ $ $ $ $ $

Apr/May

2012 Actual

$ 3,851,959

Mar/Apr

$ 21,863,492

$ $ $ $ $ $ $ $

General Police TI & T2 Fund 01 Fund 21,22 2,497,975 $ 444,046 2,450,455 $ 437,859 2,794,380 $ 492,679 2,649,175 $ 467,944 2,725,489 $ 479,735 2,987,890 $ 522,200 2,725,568 $ 479,415 3,032,560 $ 528,082

Sept/Oct

Oct/Nov

2011 Actual

$ 26,786,032

Nov/Dec

4.89%

Dec/Jan

6.04%

Total All Funds 2012 Actual 2012 vs 2011 2011 Actual vs 2012 Budget Actual $ 3,106,192 1.26% 5.54% $ 3,058,870 3.56% 5.41% $ 3,426,845 3.97% 5.73% $ 3,308,172 5.01% 4.39% $ 3,308,917 2.90% 7.03% $ 3,593,524 7.43% 7.03% $ 3,353,428 5.76% 5.60% $ 3,630,085 8.71% 7.35% $ 3,500,400 $ 3,296,150 $ 3,338,263 $ 4,559,375


August 2012

TOTAL

$-

$200

$400

$600

$800

$1,000

$1,200

Clothing Stores Fast Food Rests. Fast Casual Restaurants General Dept. Stores Grocery Chain Stores Health/Specialty Foods Public Utilities, Cable TV Restaurant / Lounges Retail Hardware Tele Equip/Service Liquor Stores Drug Stores/Pharmacies Auto Care / Leasing Office Sups./Equiq./Computer Furn./Appliance/Flooring All Others

Source of Sales Tax

Thousands

5 $

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3,896,818

Aug-12 83,798 138,333 65,755 1,023,136 624,804 15,162 353,029 210,517 232,886 216,532 98,889 32,614 163,773 54,070 85,011 498,510

Aug-12

$ 3,630,085

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Aug-11

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

YTD-2011

28,404,865 $

Total Sales YTD YTD-2012 666,564 1,106,651 477,737 5,286,441 5,037,387 130,588 2,615,535 1,709,244 2,104,240 1,734,706 727,510 265,280 1,190,409 515,213 643,607 4,193,752

YTD-2012

7.35%

Total Sales Total Sales % Chg. Aug-11 Aug 12-11 80,500 4.10% 135,865 1.82% 57,755 13.85% 884,617 15.66% 565,295 10.53% 14,664 3.39% 356,119 -0.87% 184,513 14.09% 224,787 3.60% 207,145 4.53% 91,841 7.67% 34,059 -4.24% 148,906 9.98% 63,771 -15.21% 69,111 23.01% 511,138 -2.47%

ALL SALES TAX BY CATEGORY

26,796,820

1,953 391 78 16 3 1 0 0 0 0

6.00%

Total Sales YTD Total Sales YTD % YTD-2011 YTD 12-11 666,895 -0.05% 1,039,007 6.51% 404,025 18.24% 5,001,989 5.69% 4,479,053 12.47% 121,180 7.76% 2,642,559 -1.02% 1,558,852 9.65% 1,943,735 8.26% 1,640,301 5.76% 655,805 10.93% 267,631 -0.88% 1,138,789 4.53% 560,357 -8.06% 580,814 10.81% 4,095,828 2.39%

Year-to-Date Thousands


ALL SALES TAX BY CATEGORY

Aug-12 Sales Tax

Area

Aug-11 Sales Tax

% Change Aug 12-11

2012 YTD Sales Tax

2011 YTD Sales Tax

% Change YTD 12-11

64th & Indiana

$

70,875

$

38,881

82.29% $

385,882

$

290,003

33.06%

64th & McIntyre

$

194,221

$

198,671

-2.24% $

1,550,180

$

1,489,033

4.11%

64th & Sheridan

$

111,176

$

114,942

-3.28% $

912,052

$

900,397

1.29%

64th & Wadsworth

$

22,495

$

19,726

14.04% $

167,634

$

157,955

6.13%

64th & Ward

$

161,106

$

159,321

1.12% $

1,302,757

$

1,289,292

1.04%

77th & Wadsworth

$

60,305

$

58,084

3.82% $

480,301

$

463,183

3.70%

80th & Sheridan

$

116,914

$

117,058

-0.12% $

931,910

$

922,649

1.00%

80th & Wadsworth

$

320,344

$

264,718

21.01% $

2,600,758

$

2,100,018

23.84%

88th & Wadsworth

$

63,678

$

60,454

5.33% $

485,603

$

381,941

27.14%

City Center

$

1,354,900

$ 1,178,195

15.00% $

8,164,748

$

7,613,064

7.25%

Olde Town

$

58,818

$

55,888

5.24% $

475,761

$

418,645

13.64%

AURA / Ralston Fields

$

11,525

$

10,801

6.71% $

86,621

$

90,070

-3.83%

AURA / Triangle

$

187,681

$

188,958

-0.68% $

1,538,413

$

1,496,786

2.78%

TOTAL

$

2,734,038

$ 2,465,700

9.23% $

19,082,622

$

17,613,036

8.26%

64th Wadsworth/Sheridan

$

133,671

$

134,668

-0.74% $

1,079,687

$

1,058,352

2.02%

80th Wadsworth/Sheridan

$

497,562

$

439,861

13.12% $

4,012,968

$

3,485,850

15.12%

64th Ward/Indiana/McIntyre

$

426,202

$

396,874

7.39% $

3,238,819

$

3,068,328

5.56%

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ALL SALES TAX BY CATEGORY

Fund 01, 21, 22 YTD Revenue

Use Tax Admissions Auto Use Building Use Franchise Fee - Utility 41801 Franchise Fee - Cable 41803 Franchise Fee - Tele. HUTF

$ $ $ $

TOTAL

Budget 2012 1,548,000 4,881,500 1,643,286

$ $ $ $

$

3,274,000

$

$ $ $

1,075,000 190,000 3,940,000

$ $ $

$

16,551,786

$

YTD 2012 786,597 124,481 3,712,372 2,052,474

1,034,573 104,150 3,338,756 1,724,538

$ $ $ $

1,646,655 $

1,729,119

534,448 $ 132,138 $ 2,558,490 $ 11,547,654

YTD 2012

$ $ $ $

YTD 2011

$

YTD % Of Difference 11/12 Change (247,975) 20,330 373,616 327,936

-23.97% 19.52% 11.19% 19.02%

$

(82,464)

-4.77%

513,713 $ 149,397 $ 2,538,592 $

20,735 (17,259) 19,898

4.04% -11.55% 0.78%

11,132,838

$

414,816

3.73%

YTD 2011

$4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $-

Use Tax

Admissions

Auto Use

Building Use Franchise Fee Franchise Fee Franchise Fee - Utility 41801 - Cable 41803 - Tele.

7

HUTF


Finance Department • 8001 Ralston Road • Arvada, Colorado 80002 (720) 898-7120 • www.arvada.org

Contributors: Patrick Brown, Revenue Manager Carol Larimer, Financial Systems Analyst

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August 2012 Sales Tax Report