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File Number: 16-354 <br />None. <br />2. DISCUSSION ITEMS <br />2.A. Sales Tax and Business Climate Review <br />City Manager Zapata informed the Finance Committee that MuniServices has been retained <br />by the City of San Leandro for a number of years to assist in projecting and monitoring the <br />City’s revenue, including sales tax revenue. Each quarter, MuniServices meets with City staff <br />to provide information on sales tax projections. In November, MuniServices presented sales <br />tax information to the Chamber of Commerce, which highlighted the strengths of the City and <br />where the City can focus attention. The City is very fortunate as there are no sales tax <br />weaknesses. There is a confidence in the City of San Leandro’s business climate. <br />Mr. Mancia stated that MuniServices has worked with the City for a number of years. The <br />company was established in 1978, works primarily in the Bay Area, has access to 85% of the <br />sales tax data of the entire State of California and is able to provide a regional comparison. <br />MuniServices also works on legislative reform and makes sure that the City of San Leandro is <br />receiving its fair share of sales tax. MuniServices’ job includes protecting the City’s revenue <br />as well as finding ways to ensure that the State Board of Equalization properly allocates <br />revenue. <br />Mr. Mancia provided an economic report that provides various comparisons, including <br />comparing the 4th quarter of 2014 to the 4th quarter of 2015. There was a 6.1% increase in <br />sales activity in San Leandro, the Bay Area was up 2.9% and the State of California was up <br />2.6%; San Leandro’s higher growth is led by auto sales and home improvements. Also <br />provided were comparisons of food products (restaurants and grocery stores), Transportation <br />(car sales and gas), electronics and construction. Business to Business categories are <br />off-setting the loss of sales tax due to e-commerce. <br />Mr. Mancia provided a detailed overview of a “cash report” for the quarter ending March 31, <br />2016. Cash receipts of sales tax revenue were up 7.7%; mostly driven by car sales. The <br />report indicates that the City of San Leandro is healthy. <br />Councilmember Lee inquired about the square footage of retail space at West Gate vs. other <br />areas within the City. The Community Development Department can provide that information. <br />3. PUBLIC COMMENTS <br />None. <br />4. COMMITTEE MEMBER COMMENTS <br />5. ADJOURN <br />Page 2 City of San Leandro Printed on 7/13/2016 <br />110