Title
Highlights of the Finance Committee Meeting of June 7, 2016
Body
CITY OF SAN LEANDRO
FINANCE COMMITTEE
June 7, 2016
5:00 - 6:30p.m.
San Leandro City Hall
835 East 14th Street
San Leandro, California
(Sister Cities Gallery)
HIGHLIGHTS
1. CALL TO ORDER
Councilmember Prola called the meeting to order at 5:00 p.m.
1.A. Attendance
Committee members present: Mayor Cutter, Councilmember Lee, Councilmember Prola
City staff present: City Manager Zapata, Finance Director Baum, Community Development Director Battenberg, Assistant Finance Director Fuentes, Budget/Compliance Manager Perini
Public present: Fran Mancia, MuniServices
1.B. Announcements
None.
2. DISCUSSION ITEMS
2.A. Sales Tax and Business Climate Review
City Manager Zapata informed the Finance Committee that MuniServices has been retained by the City of San Leandro for a number of years to assist in projecting and monitoring the City’s revenue, including sales tax revenue. Each quarter, MuniServices meets with City staff to provide information on sales tax projections. In November, MuniServices presented sales tax information to the Chamber of Commerce, which highlighted the strengths of the City and where the City can focus attention. The City is very fortunate as there are no sales tax weaknesses. There is a confidence in the City of San Leandro’s business climate.
Mr. Mancia stated that MuniServices has worked with the City for a number of years. The company was established in 1978, works primarily in the Bay Area, has access to 85% of the sales tax data of the entire State of California and is able to provide a regional comparison. MuniServices also works on legislative reform and makes sure that the City of San Leandro is receiving its fair share of sales tax. MuniServices’ job includes protecting the City’s revenue as well as finding ways to ensure that the State Board of Equalization properly allocates revenue.
Mr. Mancia provided an economic report that provides various comparisons, including comparing the 4th quarter of 2014 to the 4th quarter of 2015. There was a 6.1% increase in sales activity in San Leandro, the Bay Area was up 2.9% and the State of California was up 2.6%; San Leandro’s higher growth is led by auto sales and home improvements. Also provided were comparisons of food products (restaurants and grocery stores), Transportation (car sales and gas), electronics and construction. Business to Business categories are off-setting the loss of sales tax due to e-commerce.
Mr. Mancia provided a detailed overview of a “cash report” for the quarter ending March 31, 2016. Cash receipts of sales tax revenue were up 7.7%; mostly driven by car sales. The report indicates that the City of San Leandro is healthy.
Councilmember Lee inquired about the square footage of retail space at West Gate vs. other areas within the City. The Community Development Department can provide that information.
3. PUBLIC COMMENTS
None.
4. COMMITTEE MEMBER COMMENTS
5. ADJOURN
The meeting was adjourned at 5:49 p.m.