Q1

2013

City of Concord Sales Tax Update

Second Quarter Receipts for First Quarter Sales (January - March 2013)

Concord In Brief
eceipts from first quarter sales were 7.2% above the same sales period one year earlier but onetime reporting aberrations skewed the data. Excluding anomalies, actual sales grew 6.2%. of the seven major industry groups tracked by the city. New motor vehicle sales extended their recent postrecession run and caused most of the increase in the autos and transportation group. Temporary reporting aberrations sharply inflated the building and construction comparison by cutting year-ago receipts in the contractor and lumber/building materials groups. Strong sales of family apparel, specialty goods and furniture added to general consumer proceeds. A combination of new business openings and retroactive accounting adjustments lifted food and drug totals. Business closeouts held the restaurant category to modest gains. ness and industry results were down but net of accounting adjustments, both exceeded year-ago totals.

SALES TAX BY MAJOR BUSINESS GROUP

$1,800 ,000 $1,600 ,000 $1,400 ,000 $1,200 ,000 $1,000 ,000 $800 ,000 $600 ,000 $400 ,000 $200 ,000 $0
1st Quarter 2012 1st Quarter 2013

Cash receipts were up in all but two

Autos and Transportation

General Consumer Goods

Building and Construction

Business and Industry

Restaurants and Hotels

Fuel and Service Stations

Food and Drugs

Top 25 Producers
Acura of Concord Ashby Lumber Audi of Concord BMW/Mini Cooper of Concord Chevron Concord Chevrolet Concord Honda Concord Kia & Mitsubishi Concord Nissan Concord Toyota/ Scion Costco Dolans Concord Lumber
In Alphabetical Order

REVENUE COMPARISON
Four Quarters Fiscal Year To Date
2011-12 Point-of-Sale County Pool State Pool Gross Receipts Cty/Cnty Share Net Receipts Less Triple Flip* Measure Q 2012-13

Fuel and service stations and busi-

proved Measure Q were up 8.5% compared to the comparison quarter. First quarter receipts for Measure Q totaled $2,479,975, which was a $194,116 increase over the year-ago period. et of payment adjustments, all of Contra Costa County increased 5%; statewide sales grew 6.5%.

Revenues from the citys voter-ap-

Financial Services Vehicle Trust Frys Electronics Future Ford Lincoln Hyundai Home Depot Lehmers Buick/ Pontiac/GMC Lexus of Concord Lowes Macys Neillo Infiniti Orchard Supply Hardware Safeway Sears Willow Pass Arco

$21,345,208 3,072,844 8,009 $24,426,062 (610,652) $23,815,410 $(5,953,853) $9,531,752

$23,448,564 3,129,586 12,036 $26,590,186 (664,755) $25,925,431 $(6,481,358) $10,685,916

*Reimbursed from county compensation fund

Published by HdL Companies in Summer 2013 www.hdlcompanies.com | 888.861.0220

Q1 2013

City of Concord Sales Tax Update

Decline in Fuel Consumption Continues According to the most recent data from the State Board of Equalization, Californias gasoline usage fell 1.7% while diesel consumption eased 0.4% in the fourth quarter of 2012 from 2011 levels. This continues a decline that began in 2005 and which is almost twice the nationwide drop. Historically, economic conditions have been the primary driver in fuel usage, however other factors are becoming increasingly prevalent. Nationally, total vehicle miles traveled have dropped eight years in a row as aging drivers travel fewer miles and the millennial generation, focused on social networking technology, is driving less than previous generations. Increased fuel efficiency is also at play with the average new car achieving 16% more miles per gallon than just five years ago and some commercial trucking fleets shifting to natural gas. Until recently, price increases have offset consumption declines. The price gains were partly the result of California refineries exporting their finished product to emerging economies with higher demand and also by periodic refinery and transmission interruptions in the states limited production infrastructure.

NOTES

California Overall After adjusting for payment aberrations, statewide sales tax receipts for January through March sales were 6.5% higher than the same period in 2012. Strong sales for apparel, department stores and big box discounters lifted general consumer goods and accounted for 23% of the statewide increase. Improvements in the housing sector pushed building and construction sales up 8.6%. Continued robust sales of new automobiles led to a 9.3% increase over the comparable quarter. Reduced consumption combined with lower gasoline prices cut fuel and service station returns in the first quarter by 2.7%. Energy Projects Boost Business and Industry Gains Taxes from construction of solar, wind, biomass and geothermal power projects accounted for 39% of Californias businessto-business sales this quarter and produced significant windfalls for a handful of local agencies. This temporary boost in revenues came from the federal governments goal of doubling the nations renewable energy production in three years and from Californias SB 2X which was signed in April of 2011 and calls for 33% of all retail electricity sales to be from renewable energy sources by 2020. Joint federal and state funding efforts to meet these goals have resulted in the initiation of more than a dozen utility-scale solar energy projects and over 130 renewable power plant projects in California. Intermittent quarterly spikes in sales and use tax receipts from projects under construction or in the pipeline are expected for another two years.

SALES PER CAPITA

$4,000 $3,000 $2,000 $1,000 $0

Q1 10

Q1 11

Q1 12

Q1 13

Concord

County

California

B ell Top 15 usiness Categories C ONCORD TB OP 15 BUSINESS TYPES

Concord Business Type Contractors Department Stores Discount Dept Stores Electronics/Appliance Stores Family Apparel Grocery Stores Liquor Home Furnishings Light Industrial/Printers Lumber/Building Materials New Motor Vehicle Dealers Plumbing/Electrical Supplies Restaurants Liquor Restaurants No Alcohol Service Stations Specialty Stores Total All Accounts County & State Pool Allocation Gross Receipts City/County Share Net Receipts Q1 '13* 145.0 249.2 184.5 156.5 151.3 122.1 118.8 372.5 1,364.3 117.7 163.4 199.6 284.6 156.0 $5,523.1 756.5 $6,279.6 (157.0) $6,122.6 Change 448.6% 4.9% -0.2% 13.9% 7.6% 14.8% -16.0% 19.8% 13.7% 24.3% -2.5% 13.2% -29.2% 11.5% 9.6% -7.8% 7.2% -7.2% 7.2% County Change 73.8% 5.0% 3.8% -1.5% 13.1% 8.8% 9.9% 5.7% 4.5% 11.5% 21.3% 8.2% 9.4% 9.9% 4.7% 8.7% HdL State Change 6.0% 5.1% 5.1% -3.3% 16.2% 24.7% 4.7% 6.8% 7.2% 9.5% 13.9% 6.5% 6.0% -2.2% 2.5% 5.7%

399.3 CONFIDENTIAL 2.4%

*In thousands