Tim Willert
DOWNTOWN -- Healthy gains in sales tax revenue have given way to
modest ones -- the result of a softening economy, city financial experts
said Monday.
As of June 30 -- the end of the 2000-2001 fiscal year -- gross sales
tax revenue generated by the city totaled nearly $27.978 million, an
increase of 3.4%.
But that figure pales when compared to a 9.6%-rise last year and a
gain of 10.6% in 1999.
"The numbers have definitely slowed and they have slowed
dramatically," said Ron Ahlers, a senior financial analyst with the city.
"We've seen a slowing of the economy, but we are still increasing."
Sales tax revenue typically accounts for about 5% of the city's
general fund, of which $101 million is projected for the 2001-2002 fiscal
year, according to Bob Franz, the city's director of finance and
administrative services.
"We didn't expect a continuation of increases close to 10%," Franz
said. "The increase we will see this year is what we would expect in a
normal year."
A quarterly sales tax report for the first four months of this year,
which breaks down revenue by economic sector and gauges trends, has not
yet been made available to the city, Ahlers said.
But a report compiled by consultant Hinderliter, de Llamas and
Associates, showed that sales tax revenue generated by the sales of
consumer goods reached $2,528,752 -- a gain of more than $700,000 --
during the fourth quarter of 2000. Auto dealers, typically among the
top producers of sales tax revenue in the city, accounted for $1,805,084
during the last four months of 2000.
During that period, sales tax receipts from radio and appliance
outlets jumped 65.7% to $175,242 from the previous year. Sales tax
receipts also increased at gas stations (43%) and stationary/book stores
(25%).
Among those showing decreases in sales tax revenue are business
services (-37%) and lumber/building material outlets (-15%).
The city, meanwhile, is projecting a 2.2% increase in sales tax
receipts for the coming fiscal year, Franz said.
"We're going to be watching that closely for the next two quarters
through the end of this calendar year," he said. "It's not a reason for
panic, but it's a reason to be cautious about the next fiscal year."
TOP GUNS
The top 25 sales tax producers in Glendale for the fourth quarter,
2000, in alphabetical order. Compiled by Hinderliter, de Llamas and
Associates, a city financial consultant.
Allen Gwynn Chevrolet
Best Buys
Bob Smith Toyota
Calstar Mercedes
Colonial Honda
Foothill Nissan
Gap
Glendale Mitsubishi
Glendale Nissan Infiniti
Guy Schmidt GMC Mazda
Home Depot
Ivyhill Graphics
J.C. Penney
Lexus of Glendale
Macy's
Mervyns
Nordstrom
Pacific BMW
Ralphs
Robinson-May
Sears
Star Ford
Toyota of Glendale
Vons
Walt Disney Imagineering
