Finance Committee Agenda and Packet 2020 05 19

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FINANCE COMMITTEE COMMUNICATION SUBJECT: SALES TAX REPORTS FOR THE MONTH ENDED MARCH 31, 2020 DATE: MAY 19, 2020 PAGE 2 OF 3 The monthly and quarterly sales tax revenue by area reports represent the YTD retail health of various quadrants of the City. These reports include all vendors remitting tax to the City. The Monthly Revenue by Area report for March 2020 indicates significant gains for Outside City, Louisville Plaza, Hwy 42 South, and South Boulder Rd. New businesses in the Highway 42 area account for this increase. The Interchange, Downtown, CTC, Hwy 42 North, Pine Street, and Centennial Valley all decreased for the month with the McCaslin North area flat. The Quarterly Revenue by Area sales tax report through 1st quarter 2020 is a one-page snapshot for major areas in the City. The original sectors are combined into Western, Eastern, Northern, Central and Outside City areas. The Outside City and South Boulder Rd/Northern sectors increased significantly, while Downtown/Central, CTC/Eastern and McCaslin/Western sectors declined through Q1-2020. This reflects the March declining revenues for hotels, restaurants, and some retail, as well as the increase in grocery, liquor, and online retail purchases. The monthly and quarterly sales tax revenue by industry reports represent the retail health of individual industry sectors of the City. These reports include all vendors remitting tax to the City. The Monthly Revenue by Industry report for March 2020 indicates significant gains for the industries Grocery, Communications/Utilities, and Building Materials. The industries Food/Beverage, Services, Finance/Leasing, Manufacturing, Furniture, and Automotive all declined in the month of March 2020. The monthly decline in the Services sector relates to the decline in Hotel revenue, and the decline for the Finance/Leasing sector is the result of a one-time adjustment of sales tax revenue to consumer use tax for a vendor that was remitting incorrectly. The Quarterly Revenue by Industry sales tax report through 1st quarter 2020 represents industry sectors that have been grouped together and are color-coded. The major industry sectors ending up though the 1st quarter 2020 were Grocery, Communications/Utilities, Building Materials, and General Merchandise. The industry sectors Food/Beverage, Services, and All Other (which includes manufacturing, furniture, automotive, etc.) finished down for Q1-2020. Also included are separate quarterly reports by industry for Inside-City and Outside-City sales tax revenue. Through Q1-2020, Inside-City sales tax revenue decreased overall by 3.8%, and declines are across the board with the exception of the Grocery category. 11