EDB to examine 2nd quarter report

By Keri Luiz
Assistant Editor

In its review of city sales tax receipts for the second quarter of 2013, the Economic Development Board on Wednesday will find that revenue has gone down in three of four areas.

The report from the city’s sales tax reporting firm, HdL Companies of Diamond Bar, shows that tax receipts were down in Benicia’s downtown, Southampton Shopping Center and Industrial Park compared with the same period in 2012, but they were up in Solano Square.

The total sales tax for the second quarter, spanning April, May and June, was $1,335,597 after adjustment for economic data, wrote Mario Giuliani, Economic Development Manager, compared to $1,420,782 in 2012. That’s a drop of 6 percent.

By far the city’s biggest contributor of sales tax revenue, the Industrial Park, saw its second quarter recepits fall to $868,305 from $917,696 in 2012.

“The decrease can be attributed to a handful of businesses that failed to meet the same revenue levels as they had the prior year,” Giuliani wrote. “However, based on a multiple-quarter review it is more likely that the high in 2012 was more of an aberration than the lower numbers in 2013.

“But for a few cases where business saw higher growth, most of the businesses in the Industrial Park are showing flat or marginal growth.”

Downtown revenue was down slightly by comparison, from $48,672 in 2012 to $48,264 in 2013. Seventy percent of downtown sales tax revenue came from restaurants and bars, though those only represent 13 percent of total businesses on First Street.

Southampton Shopping Center continued to struggle to regain ground lost during the recession, Giuliani wrote. Its sales tax receipts amounted to $57,836 — up from 2011’s $55,114, but a drop from its revenue of $70,106 in 2012.

Further, “It is unlikely that third quarter numbers will show much improvement, but with the addition of Huckleberry’s and Panda Express, fourth quarter 2013 may see growth,” Giuliani wrote.

Solano Square, by comparison, has shown a more stable and constant growth, he wrote: $43,024 in 2013, compared to $40,519 in 2012.

Moreover, 2013 is looking to be a year of growing gains in the Transient Occupancy Tax, with a second quarter TOT of $83,628, a slight gain over $82,455 in 2012.

“As noted in previous reports, business stays and not tourism guests are the primary driver of our TOT receipts,” Giuliani wrote.

Also on the agenda, a proposal will be made to change the date of the EDB’s December meeting to Dec. 11 from Dec. 18, and to move it from the Commission Room of City Hall to the Doña Benicia Room of Benicia Public Library.

If You Go
The Economic Development Board will meet at 5:30 p.m. Wednesday in the Commission Room at City Hall, 250 East L St.

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