AgdaPkt 2011-05-11 Special - Laserfiche WebLink

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Recent forecasts indicate that sales tax revenue will stay flat for FY 2010-11 and increase slightly (2.3%) in FY 2011-12. Annually it is projected for a 3% increase. This modest growth can be accelerated by additional retail, business-to-business, or other sales tax- generating uses. Transient Occupancy Tax Transient occupancy tax is not expected to grow significantly for FY 2010-11 and a slight increase is anticipated resulting in a 2% growth in FY 2011-12. Transient occupancy tax in Redwood City is limited by the fact that there is only one major hotel in the City. This one hotel has contributed over half of the annual transient occupancy tax for the City historically. Fiscal year Total Fy07-08-Total 3,323,639 Fy08-09-Total 2,761,432 Fy09-10-Total � 2,657,277 � FY 2009/10 vs. 2008/09 : -3.77% � OPPORTUNITIES: Sales Tax Capture and Gap Analysis One way to measure whether or not the City is receiving potential revenues is to evaluate the City's Sales tax by individual economic sectors. This Sales Tax Capture and Gap Analysis analyzes what the City's potential sales tax from these sectors could be. This is done by multiplying Redwood City's sales tax by its effective buying income, divided by the San Francisco Bay Area region's effective buying income. Simply stated, this is a tool to see if Redwood City is receiving its proportional "piece of the pie" based on the effective buying income of residents. In areas where there is a deficit, the City may want to consider targeted business attraction to capture sales tax revenue from these types of businesses. Based on 3rd and 4th Quarter 2010 data (the most recent information available), a number of sectors fail to capture the City's potential per capita share of sales tax. These figures are based on resident population figures and would be further increased in most probability, if worker (or daytime population) figures were available. 3