Item No.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: STEPHEN W. HANNAH, DIRECTOR OF FINANCE
DATE: AUGUST 8, 2023
SUBJECT: SALES TAX UPDATE FOR THE FIRST QUARTER OF CALENDAR YEAR 2023.
EXECUTIVE SUMMARY
The City Council will receive and file the sales tax update report for the first quarter of Calendar Year 2023. Sales tax is the key revenue source for the City of Downey. The comparative results of sales tax revenues and their related drivers is a significant input for both management decision making and ensuring the fiscal strength of the City.
RECOMMENDATION
That the City Council:
Receive and file a report on sales tax results for the first quarter of calendar year 2023.
BACKGROUND
During the Fiscal Year (FY) 2023-2024 budget adoption process, the City Council requested an update on the sales tax results for the first quarter of calendar year 2023.
This report provides the quarter results as well as contextual information. Similar updates will be provided after the conclusion of future calendar quarters.
ANALYSIS
For the 1st calendar quarter of 2023, sales tax revenues at the State and County levels were down when compared to the prior fiscal year by 0.4 percent and 0.1 percent respectively.
APPROVED BY
CITY MANAGER
SALES TAX UPDATE FOR THE FIRST QUARTER OF CALENDAR YEAR 2023 AUGUST 8, 2023
PAGE 2
Similar declines can be seen in Downey for the same period as described in the following sections.
Sales Tax: Year-over-year sales tax revenues for the first calendar quarter fell 1.1 percent when compared to the previous fiscal year.
Sales tax revenues received for the 1st quarter of Calendar Year 2023 were $6,413,254.
This amount was $68,211 or 1.1 percent less than the previous fiscal year receipts of $6,481,465.
Sales tax revenue received for the first three quarters of Fiscal Year 2022-2023 were $19,627,561; an amount of $855,587, or 4.18 percent, below adopted budget projections ($20,483,148) and $867,076, or 4.23 percent, less than the amount received ($20,494,637) during the same period for the prior fiscal year.
Per the HDL 1st Calendar Quarter of 2023 report, estimated FY 2022-2023 year-end sales tax revenues for the City are forecasted to be $26,688,588, or 2.28 percent below the FY 2022-2023 adopted budget of $27,310,864 (see page 12 of Attachment A). While the City will not realize its estimated Fiscal Year 2022-2023 Sales Tax forecast, preliminary actual Dollar Percentage
FY 2021-22 FY 2022-23 Change Change
1st QTR Sales Tax Receipts
LA County 508,289,149 507,720,982 (568,167) -0.1% State of CA 2,197,255,080 2,188,584,763 (8,670,317) -0.4% Source: HDL
Dollar Percentage
FY 2021-22 FY 2022-23 Change Change
1st QTR Sales Tax Receipts
January 2,045,105$ 2,148,211$ 103,106$ 5.0% February 1,803,158 1,717,862 (85,296) -4.7% Ist Quarter 2,633,202 2,547,181 (86,021) -3.3% Total 6,481,465$ 6,413,254$ (68,211)$ -1.1% Source: City Financial System
Downey 5,320,801$ 5,296,637$ (24,164)$ -0.5% County Pool Allocations 1,196,850 1,145,574 (51,276) -4.3% State Pool Allocations 7,053 4,084 (2,969) -42.1% Less: Cost of Administration (43,239) (33,041) 10,198 -23.6% Total 6,481,465$ 6,413,254$ (68,211)$ -1.1% Source: HDL
SALES TAX UPDATE FOR THE FIRST QUARTER OF CALENDAR YEAR 2023 AUGUST 8, 2023
PAGE 3
General Fund revenues for the fiscal year are $1.07 million greater than were projected when the budget was adopted.
The Fiscal Year 2023-2024 adopted Sales Tax projection of $26,875,000 is ½ of 1 percent or $141,000 greater than the current FY 2023-2024 HDL estimate of $26,734,000 for the City. As in Fiscal Year 2022-2023, other revenue sources of the General Fund, such as investment income, are now projected to exceed their projections by an amount greater than a potenial Sales Tax shortfall. Staff will continue to closely monitor this situation as the year progresses, and inform the Council if any issues arise.
Measure S: 1st quarter receipts for Measure S Transaction and Use Taxes (TUT) increased 4.5% when compared to the previous fiscal year.
Measure S TUT revenue for the first three quarters of the FY 2022-2023 were $9,617,145; an amount of $170,145, or 1.80 percent, greater than the adopted budget projections ($9,447,000) and $263,362, or 2.82 percent, greater than the amount received ($9,353,783) during the same period for the prior fiscal year.
Per the HDL 1st Calendar Quarter of 2023 report, estimated year-end Measure S TUT revenues for the City are forecasted to be $12,927,065, $331,065 or 2.63 percent above the FY 2022-2023 adopted budget of $12,596,000 (see page 21 of Attachment A).
While the growth in Measure S revenue is inconsistent with the decline in Sales Tax revenue as detailed above, this scenario can be common for TUT. This type of contrary results can happen when Downey consumers purchase items outside of the City limits, but have them delivered to their home or business.
For example, the purchase of a refrigerator or automobile occurs at a business outside the City, but the Downey resident has it delivered to their home. In this case, the ‘use’ is in Downey, no regular sales tax is collected, but because the product was delivered for use in the City the TUT is collected for Downey.
Point of Sale Sales tax and Measure S Sales and use tax revenues
The HDL report also contains data related to point-of-sale transactions by industry group.
Here is a year-over-year comparative look at commercial activity transacted within the City of Downey during the 1st calendar quarter of 2023:
SALES TAX UPDATE FOR THE FIRST QUARTER OF CALENDAR YEAR 2023 AUGUST 8, 2023
PAGE 4
Sales Tax (9.75%)
2022 2023 Dollar Percentage
Industry Group 1st Calendar QTR 1st Calendar QTR Change Change Point of Sale
Autos and Transportation 1,296,881 1,186,093 (110,788) -8.5% Building and Construction 515,200 480,670 (34,530) -6.7% Business and Industry 462,381 487,272 24,891 5.4% Food and Drugs 230,666 248,912 18,246 7.9% Fuel and Service Stations 443,948 413,307 (30,641) -6.9% General Consumer Goods 1,194,925 1,273,120 78,195 6.5% Restaurants and Hotels 1,170,307 1,202,854 32,547 2.8% Transfers and Unidentified.6,493 4,409 (2,084) -32.1% Total Point of Sale 5,320,801 5,296,637 (24,164) -0.5% County Pool Allocations 1,196,850 1,145,574 (51,276) -4.3% State Pool Allocations 7,053 4,084 (2,969) -42.1% Total Net Collections 6,524,704 6,446,295 (78,409) -1.2% Less: Cost of Administration (43,238) (33,041) 10,197 -23.6% Grand Total 6,481,466 6,413,254 (68,212) -1.1% Source: HDL
Measure S Sales and Use Tax (0.50%)
2022 2023 Dollar Percentage
Industry Group 1st Calendar QTR 1st Calendar QTR Change Change Point of Sale
Autos and Transportation 551,758$ 507,245$ (44,513)$ -8.1% Building and Construction 243,489 232,498 (10,991) -4.5% Business and Industry 385,628 446,002 60,374 15.7% Food and Drugs 118,312 126,954 8,642 7.3% Fuel and Service Stations 233,635 214,771 (18,864) -8.1% General Consumer Goods 802,840 919,738 116,898 14.6% Restaurants and Hotels 590,843 629,189 38,346 6.5% Transfers and Unidentified.18,660 27,859 9,199 49.3% Total Point of Sale 2,945,165$ 3,104,256$ 159,091$ 5.4%
SALES TAX UPDATE FOR THE FIRST QUARTER OF CALENDAR YEAR 2023 AUGUST 8, 2023
PAGE 5
Economic Factors Impacting Future Periods
The combined impact of an extended inflationary period , a slow growth in wages, and rapidly increasing interest rates will continue to have a negative impact on the buying power of each consumer.
In laymen’s terms, while family income has remained relatively flat, inflation has greatly increased the cost of staple items such as bread, eggs and milk, and increasing interest rates are siphoning off a greater percentage of disposable income for the pa yment of primarily credit card debt. The following table shows the growth in the federal funds rate over the last year.
For consumable goods, what this means, and as the point -of-sale data supports, is that the number of taxable transactions are shrinking with higher prices serving to mitigate the loss of sales tax revenues. For the consumer, there has been a flight to discount stores and brands.
For the auto industry, especially for used cars, and building and construction, higher interest rates are significantly hampering these two sectors. Until interest rates come down from their two-decade plus highs, these two sectors will likely see a continued significant reduction in prices and sales activity. For both sectors, the impact is demonstrated in the greater inventory and in the number of days it takes to turn that inventory.
As economic factors such as inflation and interest rates changed during the Fiscal Year 2022-2023, HDL reduced their Sales Tax estimates for the year. This budget-to-actual variance would normally have resulted in an evaluation of the need for possible adjustments to spending to reflect this shortfall in revenues.
However, other General Fund revenue streams have outperformed their adopted budget estimates in an amount greater than the Sales Tax shortfall, mitigating the need to institute expenditure reductions.
Monthly Inflation from January 2020 through March 2023
Covid Begins
Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Federal Funds Rate 0.50%1.00%1.75%2.50%2.50%3.25%3.25%4.00%4.50%4.50%4.75%5.00% Month
SALES TAX UPDATE FOR THE FIRST QUARTER OF CALENDAR YEAR 2023 AUGUST 8, 2023
PAGE 6
CITY COUNCIL PRIORITIES
Fiscal Responsibility
FISCAL IMPACT
There is no financial impact.
ATTACHMENTS
Attachment A: HDL 1st QTR 2023 Sales Tax Report (extracted) Attachment B: HDL 2023-Q1_Consensus_Forecast_Presentation Attachment C: HDL Sales Tax Update
SOUTHERN CALIFORNIA
ACTUAL/ADJUSTED COMPARISON - BY COUNTY AND MAJOR INDUSTRY GROUP
ACTUAL RECEIPTS ADJUSTED FOR ECONOMIC DATA
% Change % Change1Q 2023 1Q 2022 1Q 2023 1Q 2022
Imperial County
Autos And Transportation 1,246,087 1,159,618 1,242,089 1,149,678-6.9% -7.4% Building And Construction 488,191 578,528 513,473 561,82318.5% 9.4% Business And Industry 1,378,569 966,751 942,148 979,213-29.9% 3.9% Food And Drugs 321,413 346,750 302,014 343,2587.9% 13.7% Fuel And Service Stations 1,399,935 1,142,528 1,151,792 1,066,907-18.4% -7.4% General Consumer Goods 1,805,884 2,034,291 1,795,127 1,931,66112.6% 7.6% Restaurants And Hotels 759,762 760,056 676,382 734,0280.0% 8.5% Transfers & Unidentified 9,547 3,411 8,999 2,903-64.3% -67.7% County & State Pool 1,655,218 1,655,443 1,544,920 1,614,7160.0% 4.5% 9,064,605 8,647,377 8,176,943 8,384,185-4.6% 2.5%
Los Angeles County
Autos And Transportation 88,503,370 84,987,694 88,125,276 84,570,633-4.0% -4.0% Building And Construction 35,722,634 35,060,254 35,696,262 34,071,159-1.9% -4.6% Business And Industry 57,887,454 56,666,582 57,333,340 56,220,162-2.1% -1.9% Food And Drugs 26,145,985 25,915,540 24,818,054 25,071,312-0.9% 1.0% Fuel And Service Stations 42,458,452 41,189,622 42,619,823 38,986,641-3.0% -8.5% General Consumer Goods 89,948,647 92,504,875 88,497,278 86,646,0122.8% -2.1% Restaurants And Hotels 72,280,990 79,564,557 70,165,323 77,191,38810.1% 10.0% Transfers & Unidentified 1,554,903 1,143,226 623,594 620,478-26.5% -0.5% County & State Pool 93,786,714 90,477,576 91,327,603 88,044,698-3.5% -3.6% 508,289,149 507,509,924 499,206,554 491,422,483-0.2% -1.6% Orange County*
Autos And Transportation 31,981,874 31,630,095 31,625,405 31,678,097-1.1% 0.2% Building And Construction 9,546,057 8,345,715 9,502,466 8,614,712-12.6% -9.3% Business And Industry 15,927,401 18,777,658 16,546,213 17,590,32417.9% 6.3% Food And Drugs 5,471,818 5,576,055 5,407,230 5,555,7061.9% 2.7% Fuel And Service Stations 14,154,237 11,188,772 13,552,544 11,762,933-21.0% -13.2% General Consumer Goods 29,785,841 31,409,764 29,603,376 29,378,4585.5% -0.8% Restaurants And Hotels 20,329,272 21,641,104 19,829,158 21,282,0126.5% 7.3% Transfers & Unidentified 324,513 360,751 132,421 93,73611.2% -29.2% County & State Pool 34,362,328 33,619,284 32,529,513 32,643,158-2.2% 0.3% 161,883,342 162,549,198 158,728,326 158,599,1360.4% -0.1% Riverside County
Autos And Transportation 24,526,075 23,099,039 24,277,213 22,964,531-5.8% -5.4% Building And Construction 15,920,961 14,711,387 15,986,821 14,225,541-7.6% -11.0% Business And Industry 28,061,903 31,417,738 28,239,436 29,359,36912.0% 4.0% Food And Drugs 6,761,407 6,831,941 6,692,276 6,694,9871.0% 0.0% Fuel And Service Stations 13,500,680 11,481,581 12,618,269 11,257,489-15.0% -10.8% General Consumer Goods 22,469,775 24,198,224 22,635,637 22,329,6137.7% -1.4% Restaurants And Hotels 16,278,674 17,327,439 15,802,672 17,019,4536.4% 7.7% Transfers & Unidentified 154,722-76,910 63,336 95,732-149.7% 51.1% County & State Pool 22,053,686 21,841,843 21,172,944 21,551,124-1.0% 1.8% 149,727,882 150,832,282 147,488,605 145,497,8380.7% -1.3% San Bernardino County
Autos And Transportation 22,175,701 20,959,786 21,890,856 20,546,123-5.5% -6.1% Building And Construction 11,966,523 10,789,633 11,719,978 10,131,882-9.8% -13.6% Business And Industry 36,968,666 35,037,517 35,940,141 33,654,083-5.2% -6.4% Food And Drugs 4,776,980 4,786,983 4,717,085 4,714,5060.2% -0.1% Fuel And Service Stations 15,576,707 13,557,290 14,691,835 13,517,068-13.0% -8.0% General Consumer Goods 19,516,213 20,056,421 18,982,602 18,822,3642.8% -0.8% Restaurants And Hotels 13,028,177 13,839,971 12,536,591 13,390,9536.2% 6.8% Transfers & Unidentified 335,515 254,136 135,020 173,968-24.3% 28.8% County & State Pool 21,192,605 20,957,691 19,842,067 20,473,279-1.1% 3.2% 145,537,087 140,239,426 140,456,175 135,424,224-3.6% -3.6% San Diego County
Autos And Transportation 31,002,386 30,911,847 30,612,253 29,735,711-0.3% -2.9% Building And Construction 15,612,885 14,824,843 15,687,017 15,678,391-5.0% -0.1% Business And Industry 22,430,522 27,372,739 22,645,931 26,557,22722.0% 17.3% Food And Drugs 8,972,133 9,301,858 8,784,719 9,100,0273.7% 3.6% Fuel And Service Stations 15,593,015 12,517,574 13,834,587 12,429,786-19.7% -10.2% General Consumer Goods 32,867,488 34,429,650 32,600,154 32,260,5574.8% -1.0% Restaurants And Hotels 26,094,395 28,892,963 25,457,618 28,226,05910.7% 10.9% Transfers & Unidentified 479,910 589,063 291,484 323,96222.7% 11.1% County & State Pool 36,193,889 33,830,174 35,143,560 33,859,793-6.5% -3.7% 189,246,622 192,670,711 185,057,323 188,171,5141.8% 1.7% 06/13/2023 8:34 pm Page 1 of 2
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Attachment A
SOUTHERN CALIFORNIA
ACTUAL/ADJUSTED COMPARISON - BY COUNTY AND MAJOR INDUSTRY GROUP
ACTUAL RECEIPTS ADJUSTED FOR ECONOMIC DATA
% Change % Change1Q 2023 1Q 2022 1Q 2023 1Q 2022
Ventura County
Autos And Transportation 9,137,973 8,318,563 8,752,923 8,340,221-9.0% -4.7% Building And Construction 4,019,941 3,507,419 3,961,728 3,592,597-12.7% -9.3% Business And Industry 2,579,429 7,644,881 4,141,661 7,223,604196.4% 74.4% Food And Drugs 2,342,384 2,406,687 2,236,354 2,318,5462.7% 3.7% Fuel And Service Stations 3,920,877 3,564,965 3,751,729 3,289,078-9.1% -12.3% General Consumer Goods 7,104,915 7,573,789 7,172,629 7,121,9486.6% -0.7% Restaurants And Hotels 5,144,565 5,417,133 5,044,325 5,317,9505.3% 5.4% Transfers & Unidentified 112,980 151,122 71,366 67,63533.8% -5.2% County & State Pool 8,864,930 8,012,328 8,288,401 7,932,393-9.6% -4.3% 43,227,995 46,596,889 43,421,117 45,203,9707.8% 4.1%
Southern California Totals
Autos And Transportation
Building And Construction
Business And Industry
Food And Drugs
Fuel And Service Stations
General Consumer Goods
Restaurants And Hotels
Transfers & Unidentified
208,573,466 201,066,641 206,526,016 198,984,993
93,277,192 87,817,779 93,067,745 86,876,105
165,233,944 177,883,867 165,788,871 171,583,981
54,792,121 55,165,814 52,957,732 53,798,341
106,603,904 94,642,332 102,220,580 92,309,902
203,498,763 212,207,013 201,286,802 198,490,613
153,915,834 167,443,224 149,512,069 163,161,842
2,972,090 2,424,799 1,326,220 1,378,413
-3.6% -3.7%
-5.9% -6.7%
7.7% 3.5%
0.7% 1.6%
-11.2% -9.7%
4.3% -1.4%
8.8% 9.1%
-18.4% 3.9%
*
-0.8% 1,172,703,350 1,182,535,0430.2% 1,209,045,808 1,206,976,683 County & State Pools 206,119,162 210,394,339 209,849,009 218,109,369 -3.5% -1.8% 2,188,373,705 2,197,255,080 2,129,066,196 2,152,562,892 HdL State Totals
-0.4% -1.1%
Autos And Transportation
Building And Construction
Business And Industry
Food And Drugs
Fuel And Service Stations
General Consumer Goods
Restaurants And Hotels
Transfers & Unidentified
357,351,204 361,516,165 352,189,458 356,573,323
165,177,518 166,138,774 182,912,096 182,514,184
346,100,940 353,413,450 344,047,234 345,618,900
97,842,349 100,476,831 97,503,115 101,094,255
175,115,091 178,228,490 191,552,390 200,177,739
334,116,732 340,508,764 357,032,141 342,542,648
273,941,028 281,614,044 250,931,869 257,694,237
2,936,157 5,596,764 2,568,673 4,889,564
-1.2%-1.2%
-9.7%-9.0%
0.6%2.3%
0.3%-0.6%
-8.6%-11.0%
-1.9%4.2%
9.2%9.3%
14.3%14.5%
County & State Pools 388,522,007 385,965,428 401,207,387 381,646,923-3.2% -1.1% *
06/13/2023 8:34 pm Page 2 of 2
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Attachment A
LOS ANGELES COUNTY ALL AGENCIES
SALES TAX TRENDS FOR ALL AGENCIES - 1Q 2023 SALES
Count 1Q 2023 1Q 2022 % ChangeAgency Name County Pool
Share of Actual Receipts
% Change
Adjusted
Agency allocations reflect "point of sale" receipts
Current Year Prior Year
664Bradbury 17 663 + 0.1%0.0% + 54.7%
66,368Palos Verdes Estates 285 56,342 + 17.8%0.0% + 20.9% 116,857San Marino 311 104,093 + 12.3%0.0% + 13.0%
1,446,116Rosemead 1,286 1,453,167 - 0.5%0.3% + 10.8% 573,536Rancho Palos Verdes 655 519,177 + 10.5%0.1% + 9.3% 986,974La Verne 850 972,984 + 1.4%0.2% + 7.9%
397,355Rolling Hills Estates 402 285,422 + 39.2%0.1% + 7.3% 4,107Rolling Hills 37 3,692 + 11.2%0.0% + 6.9%
2,495,961Arcadia 2,313 2,430,482 + 2.7%0.6% + 6.6% 2,049,694Manhattan Beach 1,375 1,886,420 + 8.7%0.5% + 6.4% 3,665,694El Segundo 1,342 2,553,970 + 43.5%0.9% + 6.1% 575,503Temple City 842 483,831 + 18.9%0.1% + 5.0% 1,645,563Claremont 996 1,602,525 + 2.7%0.4% + 4.7% 5,031,989Hawthorne 1,920 4,729,073 + 6.4%1.2% + 4.5% 7,317,436Carson 2,965 7,049,144 + 3.8%1.8% + 4.1% 2,186,004Monterey Park 1,560 2,117,520 + 3.2%0.5% + 3.9% 987,403San Gabriel 1,317 938,940 + 5.2%0.2% + 3.9% 4,700,627Inglewood 2,835 4,777,630 - 1.6%1.1% + 3.8% 783,273La Cañada Flintridge 538 689,208 + 13.6%0.2% + 3.7% 781,923Bell 749 758,109 + 3.1%0.2% + 3.2%
811,465Bell Gardens 746 775,401 + 4.7%0.2% + 3.1% 1,348,496Diamond Bar 1,822 1,193,598 + 13.0%0.3% + 2.9% 4,278,687West Hollywood 2,302 4,181,607 + 2.3%1.0% + 2.2% 8,121,711Santa Fe Springs 4,314 9,610,845 - 15.5%1.9% + 1.5% 1,147,581Westlake Village 750 962,066 + 19.3%0.3% + 1.1% 1,735,177Huntington Park 1,619 1,693,141 + 2.5%0.4% + 1.1% 8,250,601Pasadena 7,540 8,334,717 - 1.0%2.0% + 1.0% 10,647,190Glendale 6,141 10,475,994 + 1.6%2.6% + 0.9% 4,523,395Signal Hill 811 4,458,851 + 1.4%1.1% + 0.9% 538,495South Pasadena 702 527,814 + 2.0%0.1% + 0.7% 1,832,876Bellflower 1,678 1,788,944 + 2.5%0.4% + 0.6% 2,414,721Pico Rivera 1,168 2,321,188 + 4.0%0.6% + 0.6% 2,856,676Montebello 1,586 2,802,946 + 1.9%0.7% + 0.5% 2,287,507Covina 1,571 2,268,123 + 0.9%0.5% + 0.4% 2,301,434Compton 2,203 2,168,834 + 6.1%0.6% + 0.2% 2,786,244South Gate 1,990 2,811,908 - 0.9%0.7% + 0.1% 8,355,892Burbank 4,438 8,164,033 + 2.4%2.0% + 0.0% 139,406,125Los Angeles 122,541 137,596,274 + 1.3%33.4% - 0.1% 17,446,388Los Angeles Co. Uninc 20,130 17,320,054 + 0.7%4.2% - 0.2% 1,851,843Calabasas 960 1,704,184 + 8.7%0.4% - 0.3% 3,031,727Gardena 2,362 3,077,778 - 1.5%0.7% - 0.5% 4,481,774West Covina 2,181 4,825,396 - 7.1%1.1% - 0.5% 781,834Lawndale 719 764,788 + 2.2%0.2% - 0.7%
1,549,795Azusa 1,051 1,564,814 - 1.0%0.4% - 1.1% 5,608,673Palmdale 3,093 5,587,144 + 0.4%1.3% - 1.1% 16,719,318Long Beach 11,964 15,804,602 + 5.8%4.0% - 1.3% 1,691,849Baldwin Park 1,273 1,697,077 - 0.3%0.4% - 1.3% 3,460,949Lakewood 1,634 3,670,929 - 5.7%0.8% - 1.6% 233,615Hawaiian Gardens 304 235,650 - 0.9%0.1% - 1.6% 8,042,135Santa Monica 4,878 7,992,513 + 0.6%1.9% - 1.7% 1,392,783San Fernando 2,052 1,460,912 - 4.7%0.3% - 1.9% 4,438,657Pomona 4,852 4,715,985 - 5.9%1.1% - 2.0%
Attachment A
LOS ANGELES COUNTY ALL AGENCIES
SALES TAX TRENDS FOR ALL AGENCIES - 1Q 2023 SALES
Count 1Q 2023 1Q 2022 % ChangeAgency Name County Pool
Share of Actual Receipts
% Change
AdjustedCurrent Year Prior Year
4,797,677El Monte 2,457 4,893,528 - 2.0%1.2% - 2.2% 1,577,075San Dimas 1,104 1,562,667 + 0.9%0.4% - 2.3% 2,159,682Glendora 1,594 2,113,647 + 2.2%0.5% - 2.3% 2,138,631Redondo Beach 2,528 2,151,192 - 0.6%0.5% - 2.4% 511,045Walnut 1,270 463,252 + 10.3%0.1% - 2.5%
5,299,041Downey 2,703 5,320,801 - 0.4%1.3% - 2.8% 8,155,921Beverly Hills 3,206 8,995,540 - 9.3%2.0% - 3.4% 7,307,394Industry 4,779 6,232,399 + 17.2%1.8% - 3.5% 11,850,142Torrance 8,030 12,165,445 - 2.6%2.8% - 3.6% 9,508,197Santa Clarita 6,812 10,084,096 - 5.7%2.3% - 3.9% 9,304,552Cerritos 1,874 9,364,142 - 0.6%2.2% - 4.7% 3,687,068Alhambra 1,830 3,964,218 - 7.0%0.9% - 5.3% 4,775,249Culver City 2,250 5,172,494 - 7.7%1.1% - 5.4% 161,424Avalon 213 171,054 - 5.6%0.0% - 5.6%
267,713Cudahy 387 271,958 - 1.6%0.1% - 6.0%
2,968,116Norwalk 1,729 3,074,272 - 3.5%0.7% - 6.1% 2,526,499Monrovia 1,294 2,552,100 - 1.0%0.6% - 6.4% 691,778Hermosa Beach 953 740,733 - 6.6%0.2% - 6.5% 486,658Lomita 659 495,124 - 1.7%0.1% - 7.0%
739,350Artesia 668 752,747 - 1.8%0.2% - 7.3%
1,160,372Duarte 522 1,254,651 - 7.5%0.3% - 7.5% 4,816,330Commerce 2,168 5,018,262 - 4.0%1.2% - 7.6% 4,182,563Whittier 2,126 3,726,398 + 12.2%1.0% - 7.7% 707,367La Puente 1,113 733,273 - 3.5%0.2% - 7.8% 2,252,942Paramount 3,826 2,210,543 + 1.9%0.5% - 7.9% 890,204Irwindale 789 884,605 + 0.6%0.2% - 8.1%
470,726Maywood 488 527,688 - 10.8%0.1% - 8.5%
1,921,990La Mirada 1,047 2,737,542 - 29.8%0.5% - 8.6% 1,354,398South El Monte 1,882 1,394,696 - 2.9%0.3% - 9.2% 903,597Malibu 749 1,034,478 - 12.7%0.2% - 9.2%
1,182,733Lynwood 1,389 1,453,501 - 18.6%0.3% - 9.8% 5,374,548Lancaster 3,572 5,721,321 - 6.1%1.3% - 10.1% 970,643Agoura Hills 934 1,096,472 - 11.5%0.2% - 12.3% 78,834Sierra Madre 319 128,793 - 38.8%0.0% - 13.2%
1,643,146Vernon 1,222 46,765 +3413.6%0.4% - 15.7%
7,827La Habra Heights 90 12,590 - 37.8%0.0% - 18.9% 12,232Hidden Hills 40 8,913 + 37.2%0.0% - 90.4%
312,586 417,032,324 414,502,400 + 0.6%Totals 100.0% - 1.1% 90,156,192Los Angeles Pool 29,437 93,237,286 - 3.3% - 3.4%
Attachment A
CITY OF DOWNEY
MAJOR INDUSTRY GROUPSADJUSTED FOR
ECONOMIC DATA
Major Industry Group 1Q23Count $ Change % Change1Q22
1,156,115 197 (146,062)-11.2% 1,302,177 Autos and Transportation 1,144,485 382 40,682 3.7% 1,103,803 Restaurants and Hotels 1,140,871 1,182 (27,039)-2.3% 1,167,909 General Consumer Goods 1,118,744 -(53,592)-4.6% 1,172,336 State and County Pools 492,482 678 31,268 6.8% 461,214 Business and Industry 475,872 67 (36,856)-7.2% 512,728 Building and Construction 412,979 27 (28,061)-6.4% 441,039 Fuel and Service Stations 248,992 99 18,868 8.2% 230,124 Food and Drugs
6,382 71 1,585 33.1% 4,796 Transfers & Unidentified
6,196,921 2,703Total (199,205)-3.1% 6,396,126
$200K
$400K
$600K
$800K
$1,000K
$1,200K
$1,400K
Autos
and
Transportation
Restaurants
and
Hotels
General
Consumer
Goods
State and
County
Pools
Business
and
Industry
Building
and
Construction
Fuel and
Service
Stations
Food
and
Drugs
1Q22 Compared To 1Q23
1Q22 1Q23
1Q23 Percent of Total
19%
Autos
and
Transportation
18%
Restaurants
and
Hotels18%
General
Consumer
Goods
18%
State
and
County
Pools
8%
Business
and
Industry
8%
Building
and
Construction
7%
Fuel and
Service
Stations
4%
Food
and
Drugs
CONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION HdL • 909.861.4335 • www.hdlcompanies.com06/13/2023 8:37 pm Page 1 of 1
Attachment A
CITY OF DOWNEY
1Q 2023 COMPARED TO 1Q 2022ADJUSTED FOR
ECONOMIC DATA
TOP 25 BUSINESS TYPES LISTED BY ALLOCATION
COUNTY
Code Business Type Description (Count)
AGENCY HdL STATE
1Q 2023 1Q 2022 Change Change Change1Q 2023 1Q 2023
53,162,249 226,359,286 60 New Motor Vehicle Dealers (12) -11.1% 0.8%-4.2% 718,900 809,020 31,380,140 120,569,249 35 Casual Dining (134) 1.8% 9.9%12.0% 546,302 536,883 25,054,224 83,938,691 24 Quick-Service Restaurants (197) 2.6% 5.0%5.8% 461,463 449,815 33,462,919 146,007,828 62 Service Stations (27) -6.4% -9.8%-10.0% 412,979 441,039 19,555,867 89,924,415 50 Building Materials (11) -0.1% -9.8%-5.2% 325,344 325,572 12,947,195 43,262,090 03 Family Apparel (187) 3.2% 2.3%2.8% 283,409 274,588 8,390,752 25,664,825 99 Light Industrial/Printers (133) -3.9% 0.8%-2.7% 192,514 200,224 4,898,303 15,747,331 07 Department Stores (7) -1.9% -6.9%-9.4% 162,856 166,064 7,867,314 30,064,759 31 Electronics/Appliance Stores (52) -6.6% -2.1%-5.7% 162,361 173,788 23,279,305 109,108,727 08 Discount Dept Stores (2) -1.8% -0.6%-1.0% 152,693 155,531 9,304,126 31,895,450 19 Specialty Stores (229) 7.7% 4.0%5.1% 127,662 118,488 6,629,815 31,308,782 64 Used Automotive Dealers (26) 20.3% -11.0%-8.6% 125,440 104,294 11,225,572 47,406,500 34 Grocery Stores (21) 5.9% 5.5%6.3% 120,571 113,808 6,992,202 41,881,777 82 Contractors (41) -28.3% -12.7%-8.5% 105,471 147,111 3,058,308 35,673,406 84 Medical/Biotech (61) 99.1% -6.7%-7.6% 100,439 50,441 7,447,922 19,843,935 65 Auto Lease (11) -7.5% -6.8%-9.1% 85,297 92,216 4,890,045 23,675,788 61 Automotive Supply Stores (57) 7.8% 5.4%5.6% 75,918 70,423 5,805,331 21,905,354 37 Fast-Casual Restaurants (17) 1.7% 6.1%6.2% 72,807 71,595 3,084,506 10,299,486 04 Shoe Stores (25) -8.3% 0.4%-2.7% 65,849 71,777 4,738,114 18,875,789 71 Auto Repair Shops (71) 3.1% 5.7%6.8% 62,934 61,045 434,824 6,582,248 63 Trailers/RVs (3) -55.4% -26.4%-34.5% 61,835 138,657 5,829,169 22,404,980 22 Convenience Stores/Liquor (34) 8.6% -5.1%-1.9% 49,921 45,950 3,123,605 9,985,914 01 Women's Apparel (95) -13.1% -6.8%-8.6% 45,835 52,760 3,971,756 14,082,523 27 Drug Stores (16) 2.9% -2.0%1.0% 45,485 44,192 2,442,627 10,903,987 72 Repair Shop/Equip. Rentals (35) -18.8% -1.6%-5.6% 44,882 55,250 All Others (1199) 469,011 453,257 104,401,593 510,046,152 3.5% 0.1% 0.5% -1.1%-1.1%-2.8% 1,747,419,273 403,377,784 5,223,790 5,078,177 TOTAL ALL TYPES (2703) Major Industry Groups
1,302,177 1,156,115 84,570,633 352,405,770 -4.0%-11.2% -1.2%Autos And Transportation (197) Building And Construction (67) 165,177,518 475,872 512,728 34,071,159 346,098,385 492,482 461,214 56,220,162 Business And Industry (678) 97,842,349 248,992 230,124 25,071,312 Food And Drugs (99) 38,986,641 412,979 441,039 175,115,091 Fuel And Service Stations (27) 334,116,732 1,140,871 1,167,909 86,646,012 General Consumer Goods (1182) 273,943,583 77,191,388 1,144,485 1,103,803 Restaurants And Hotels (382) 2,719,845 6,382 4,796 620,478 Transfers & Unidentified (71) TOTAL ALL GROUPS (2703) 5,078,177 5,223,790 -2.8% 403,377,784 -1.1% 1,747,419,273 -1.1% -7.2% -9.7%-4.6%
-1.9%6.8% 0.6%
1.0%8.2% 0.3%
-8.5%-6.4% -8.6%
-2.1%-2.3% -1.9%
3.7% 9.2%10.0%
5.9%33.1% -0.5%
-3.1% 6,196,921 6,396,126
-4.4%
-37.3%
1,165,640 1,114,543
4,201 6,695
5,223,790 -2.8% 403,377,784 -1.1% 1,747,419,273 -1.1% 5,078,177
GROSS RECEIPTS
ALLOCATIONS FROM STATE POOL
ALLOCATIONS FROM COUNTY POOL
TOTAL ALL BUSINESSES (2703)
CONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION
Attachment A
CITY OF DOWNEY
MAJOR INDUSTRY GROUPS - 13 QUARTER HISTORY
ADJUSTED FOR
ECONOMIC DATA
Sales Tax by Major Industry Group
$200K
$400K
$600K
$800K
$1,000K
$1,200K
$1,400K
$1,600K
$1,800K
1Q
20 2Q
20 3Q
20 4Q
20 1Q
21 2Q
21 3Q
21 4Q
21 1Q
22 2Q
22 3Q
22 4Q
22 1Q
23 Count: 197
Autos And Transportation
Count: 382
Restaurants And Hotels
Count: 1,182
General Consumer Goods
State & County Pools
Count: 678
Business And Industry
Count: 67
Building And Construction
Count: 27
Fuel And Service Stations
Count: 99
Food And Drugs
Agency Trend
$4,500K
$5,000K
$5,500K
$6,000K
$6,500K
$7,000K
$7,500K
1Q
20 2Q
20 3Q
20 4Q
20 1Q
21 2Q
21 3Q
21 4Q
21 1Q
22 2Q
22 3Q
22 4Q
22 1Q
23 Downey
13 Quarter Trend: +30.0%
Periods shown reflect the period in which the sales occurred - Point of Sale 06/13/2023 8:38 pm HdL • 909.861.4335 • www.hdlcompanies.com CONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION Page 7 of 22 Attachment A
CITY OF DOWNEY
AGENCY COMPARISONS
ADJUSTED FOR
ECONOMIC DATA
Per Capita Sales
$0
$4,000
$8,000
$12,000
$16,000
$20,000
$24,000
1Q
20 2Q
20 3Q
20 4Q
20 1Q
21 2Q
21 3Q
21 4Q
21 1Q
22 2Q
22 3Q
22 4Q
22 1Q
23 Count: 2,703
Downey
Count: 1,729
Norwalk
Count: 1,990
South Gate
Count: 2,126
Whittier
Count: 1,634
Lakewood
Count: 1,874
Cerritos
Count: 1,047
La Mirada
Per Capita Sales
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
$5,500
1Q
20 2Q
20 3Q
20 4Q
20 1Q
21 2Q
21 3Q
21 4Q
21 1Q
22 2Q
22 3Q
22 4Q
22 1Q
23 Downey
Los Angeles County
Southern California
California
Periods shown reflect the period in which the sales occurred - Point of Sale 06/13/2023 8:38 pm HdL • 909.861.4335 • www.hdlcompanies.com CONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION Page 8 of 22 Attachment A
CITY OF DOWNEY
AGENCY COMPARISONS - AUTO SALES & LEASES
ADJUSTED FOR
ECONOMIC DATA
$0K
$500K
$1,000K
$1,500K
$2,000K
$2,500K
$3,000K
$3,500K
$4,000K
$4,500K
$5,000K
1Q
20 2Q
20 3Q
20 4Q
20 1Q
21 2Q
21 3Q
21 4Q
21 1Q
22 2Q
22 3Q
22 4Q
22 1Q
23 Count: 49
Downey
Count: 31
Whittier
Count: 32
Norwalk
Count: 45
Cerritos
Count: 45
Buena Park
Count: 27
Lakewood
Count: 27
Signal Hill
Periods shown reflect the period in which the sales occurred - Point of Sale 06/13/2023 8:39 pm HdL • 909.861.4335 • www.hdlcompanies.com CONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION Page 9 of 22 Attachment A
CITY OF DOWNEY
SALES TAX REVENUES BY GEOGRAPHIC AREA - 1Q 2023
Current Year Prior Year
ADJUSTED FOR
ECONOMIC DATA
Geographic Area Count 1Q 2023 % of Ttl.1Q 2022 1Q 2023 4Q 2022 3Q 2022 2Q 2022 1Q 2022 4Q 2021 3Q 2021 2Q 2021% Chg. 457,162 141 460,928 457,162 748,729 506,338 563,073 460,928 817,658 560,673 580,1489.0%0001 - Stonewood Center (0001)-0.8% 368,203 42 373,915 368,203 472,442 396,954 410,324 373,915 480,910 422,019 444,2787.3%0002 - Downey Landing Center (0002 -1.5% 153,277 65 145,057 153,277 163,351 160,577 163,737 145,057 149,605 147,944 134,8473.0%0003 - Downtown (0003)5.7% 394,689 17 414,400 394,689 413,476 444,390 442,547 414,400 408,514 416,959 461,5487.8%0004 - West Firestone (0004)-4.8% 22,585 16 21,611 22,585 26,134 25,018 23,948 21,611 24,574 23,635 21,9950.4%0005 - The Crossroads (0005)4.5% 501,997 63 474,358 501,997 575,582 521,733 530,016 474,358 551,491 506,520 514,5669.9%0007 - Promenade Center (0007)5.8% Totals For Listed Geo Areas 1,897,913
5,078,177
37.4% 344
2,704
1,890,269 1,897,913 2,399,714 2,055,010 2,133,646 1,890,269 2,432,752 2,077,751 2,157,383 5,223,790 5,078,177 5,622,043 5,530,678 5,680,128 5,223,790 5,863,604 5,502,054 5,649,150100.0%
0.4%
-2.8%Totals For All Outlets
* Businesses may be in overlapping geo areas. Totals may be greater than 100%.
CONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 06/13/2023 8:39 pm HdL • 909.861.4335 • www.hdlcompanies.com
Attachment A
CITY OF DOWNEY
SALES TAX ALLOCATION SUMMARY
Seven Major
Industry Groups
Fiscal Yr
2020-21
Totals
FY 2021-22 Sales Quarters Fiscal Yr
2021-22
Totals
Fiscal Yr
2022-23
YTD Totals
FY 2022-23 Sales Quarters
3Q 4Q 1Q 2Q 2Q1Q4Q3Q
Dollar
Change
Prior Yr
Percent
Change
Prior Yr
YTD
% Change
Prior Yr
Point of Sale
Autos And Transportation 5,409,303 1,415,195 1,277,251 1,296,881 1,277,815 5,267,143 1,167,428 1,031,341 1,186,093 3,384,862 (142,160) -3% -15% Building And Construction 1,868,381 497,825 551,386 515,200 618,560 2,182,971 551,425 614,000 480,670 1,646,095 314,590 17% 5% Business And Industry 1,194,801 479,154 469,044 462,381 461,057 1,871,636 462,619 422,317 487,272 1,372,208 676,835 57% -3% Food And Drugs 966,393 279,760 251,241 230,666 342,166 1,103,833 270,362 206,491 248,912 725,764 137,441 14% -5% Fuel And Service Stations 1,274,801 442,519 456,282 443,948 540,574 1,883,322 510,370 468,060 413,307 1,391,738 608,522 48% 4% General Consumer Goods 5,062,157 1,380,846 1,768,156 1,194,925 1,330,629 5,674,556 1,336,485 1,560,748 1,273,120 4,170,352 612,399 12% -4% Restaurants And Hotels 3,613,790 1,067,706 1,146,620 1,170,307 1,139,749 4,524,383 1,211,080 1,175,759 1,202,854 3,589,694 910,593 25% 6% Transfers & Unidentified 17,687 5,406 4,303 6,493 5,671 21,872 9,214 6,559 4,409 20,182 4,185 24% 25% -3%16% 3,122,403 Total Point of Sale 19,407,313 5,568,412 22,529,717 5,716,221 5,320,801 5,924,282 16,300,893 5,296,638 5,485,274 5,518,981 166%-90%(12,454) 9,036 4,084 2,442 2,510 1,351 (2,043) 7,053 1,487 (5,146) 13,805 State Pool Allocations -9%2% 106,424 3,459,656 1,145,574 1,142,819 1,171,263 4,906,369 1,084,632 1,196,850 1,411,273 1,213,614 4,799,945 County Pool Allocations Total (Net Collections) 24,221,063 6,776,879 7,337,043 6,524,704 6,798,810 27,437,436 6,692,754 6,630,536 6,446,296 19,769,585 3,216,373 13% -4% Less: Cost of Administration (23,535)(177,107) (50,105) (50,644) (43,238) (56,655) (200,643) (55,430) (53,551) (33,041) (142,023)-13% 1% 7,286,399 6,481,465 6,742,155 27,236,794 6,637,323 6,576,985 3,192,838 13% -4% 6,726,774 Subtotal 24,043,956 19,627,562 6,413,254 Pre Advance for Q3
6,413,254 19,627,562 Grand Total 6,742,155 6,637,323 6,726,774 27,236,794 3,192,838 13% 24,043,956 -4% 7,286,399 6,481,465 6,576,985 Budget 10,400,000 24,315,728 28,127,214
**Due to the monthly allocation changes by CDTFA, as of 1st Quarter 2018 all fiscal year totals will be reported on an accrual basis (July to June sales). 3,126,631 3,354,076 2,945,166 3,094,176 12,520,049 3,165,269 3,428,511 3,104,255 9,698,035 Less: Cost of Administration
Total
(89,750) (26,540) (26,540) (19,010) (27,410) (99,500) (27,410) (27,410) (26,070) (80,890) 11,192,501 3,100,091 3,327,536 2,926,156 3,066,766 12,420,549 3,137,859 3,401,101 3,078,185 9,617,145 1,237,798
(9,750)
1,228,048
11%
-11%
11%
3%
-12%
3%
Budget 5,225,000 5,396,000 6,298,500
11,282,251 Transactions Taxes
Budget vs.
Receipts
(In Thousands)
06/13/2023 8:39 pm HdL • 909.861.4335 • www.hdlcompanies.com CONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATIONCONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATIONCONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATIONCONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATIONCONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATIONCONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATIONCONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATIONCONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATIONCONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATIONCONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION Page 11 of 22 Attachment A
SALES TAX ALLOCATION CASH PROJECTIONS
CITY OF DOWNEY
Fiscal Year
2021-22
Fiscal Year
2022-23
Payment
Month
Fiscal Year
2023-24
Fiscal Year
2022-23
ACTUAL FORECAST *AccrualAccrualAccrualAccrualJune $ 1,985,062 $ 2,263,587 1st Advance $ 2,263,587 $ 1,832,300 July 2,345,657 2,294,594 2nd Advance 2,294,594 1,832,300 August 2,618,193 2,183,974 Clean Up 2,183,974 3,063,076 6,742,155 6,948,912 2nd Quarter Allocation 6,742,155 6,727,676 September 2,102,861 2,254,762 1st Advance 2,254,762 1,802,400 October 2,143,997 2,102,029 2nd Advance 2,102,029 1,802,400 November 2,479,916 2,280,531 Clean Up 2,280,531 3,013,077 6,637,323 6,726,774 3rd Quarter Allocation 6,637,323 6,617,877 December 2,201,106 2,329,368 1st Advance 2,329,368 1,840,400 January 2,093,245 1,989,684 2nd Advance 1,989,684 1,840,400 February 2,992,047 2,257,932 Clean Up 2,257,932 3,076,742 6,576,985 7,286,398 4th Quarter Allocation 6,576,985 6,757,542 March 2,045,104 2,148,211 1st Advance 2,148,211 1,793,600 April 1,803,157 1,717,862 2nd Advance 1,717,862 1,793,600 May 2,633,203 2,547,181 Clean Up 2,880,531 2,998,309 6,413,254 6,481,465 1st Quarter Allocation 6,746,605 6,585,509 June 2,263,587 - 1st Advance 1,832,300 1,844,700 July 2,294,594 - 2nd Advance 1,832,300 1,844,700 August 2,183,974 - Clean Up 3,063,076 3,083,681 - 6,742,155 2nd Quarter Allocation 6,727,676 6,773,081 Fiscal Year Reconciliation
$ 27,236,792 Accrual $ 26,688,588 $ 26,734,008 $ 19,627,561 * Based on budget prepared 05/16/23 by rls
Attachment A
LOS ANGELES COUNTY UNINCORP.
PUBLIC SAFETY 1/2 CENT (PROPOSITION 172) - TREND ANALYSIS FOR ALL CITIES IN THE COUNTY 2020-21
0.235190 0.223330 0.223209 0.224953
0.102% -5.043% -0.054% 0.781%
$927,462,808 $1,048,719,216 $1,083,147,773 $1,093,484,613
9.172% 13.074% 3.283% 0.954%
County Pro-rata Factor
% Change from Prior Year
County Allocation
% Change from Prior Year
2021-22 2022-23 2023-24
‡$10,336,840
$ +/- From
Prior Year
‡
‡‡
$ +/- From
Prior Year2023-242022-232021-222020-21FactorAgency Name 0 0 0 0 0.0000000Agoura Hills 0
1,032,249 875,525 989,991 1,022,491 0.0009440Alhambra 9,758 680,366 577,067 652,513 673,935 0.0006222Arcadia 6,432 0 0 0 0 0.0000000Artesia 0
48,769 41,365 46,773 48,308 0.0000446Avalon 461
426,022 361,340 408,581 421,994 0.0003896Azusa 4,027 428,537 363,473 410,993 424,486 0.0003919Baldwin Park 4,051 61,454 52,123 58,938 60,873 0.0000562Bell 581
156,040 132,349 149,652 154,565 0.0001427Bell Gardens 1,475 0 0 0 0 0.0000000Bellflower 0
520,061 441,101 498,771 515,145 0.0004756Beverly Hills 4,916 13,669 11,593 13,109 13,539 0.0000125Bradbury 129
1,562,371 1,325,159 1,498,410 1,547,602 0.0014288Burbank 14,769 0 0 0 0 0.0000000Calabasas 0
0 0 0 0 0.0000000Carson 0
0 0 0 0 0.0000000Cerritos 0
475,119 402,983 455,668 470,628 0.0004345Claremont 4,491 0 0 0 0 0.0000000Commerce 0
428,865 363,751 411,308 424,811 0.0003922Compton 4,054 585,998 497,027 562,009 580,459 0.0005359Covina 5,540 0 0 0 0 0.0000000Cudahy 0
581,406 493,132 557,604 575,910 0.0005317Culver City 5,496 0 0 0 0 0.0000000Diamond Bar 0
Other Agencies (see following pages)
County Share 845,913,475 956,508,130 987,909,475 997,337,425 9,427,949 0.9120727 10,336,840 1,093,484,613 1,083,147,773 1,048,719,216 927,462,808 1.0000000County All Each county's share of the Proposition 172 half cent public safety tax is set by a pro-rata factor determined by that county's ratio of sales tax collections to the statewide total in CDTFA's most recent annual taxable sales report. Receipts from all counties are placed in a pool from which the State Controller's Office makes monthly payments using the pro-rata factors.
Cities were allotted a share of public safely collections to offset property taxes lost through ERAFII . The amounts counties share with their local cities varies. The smallest counties share an average of 2.4% whereas Los Angeles County shares 8.8%. Since city shares are to relieve ERAFII property tax losses, cities that incorporated after ERAFII do not participate. For more information, please go to HdL's website at www.hdlcompanies.com .
Estimate‡
Attachment A
PUBLIC SAFETY 1/2 CENT (PROPOSITION 172) - TREND ANALYSIS FOR ALL CITIES IN THE COUNTY LOS ANGELES COUNTY UNINCORP.
2020-21
0.235190 0.223330 0.223209 0.224953
0.102% -5.043% -0.054% 0.781%
$927,462,808 $1,048,719,216 $1,083,147,773 $1,093,484,613
9.172% 13.074% 3.283% 0.954%
County Pro-rata Factor
% Change from Prior Year
County Allocation
% Change from Prior Year
2021-22 2022-23 2023-24
‡$10,336,840
$ +/- From
Prior Year
‡
‡‡
$ +/- From
Prior Year2023-242022-232021-222020-21FactorAgency Name Downey 889,878 754,769 853,448 881,466 0.0008138 8,412 Duarte 160,524 136,152 153,952 159,006 0.0001468 1,517 El Monte 601,963 510,568 577,320 596,273 0.0005505 5,690 El Segundo 41,115 34,873 39,432 40,726 0.0000376 389 Gardena 485,070 411,423 465,212 480,484 0.0004436 4,585 Glendale 2,501,565 2,121,757 2,399,155 2,477,917 0.0022877 23,648 Glendora 612,023 519,101 586,968 606,238 0.0005597 5,786 Hawaiian Gardens 22,963 19,477 22,023 22,746 0.0000210 217 Hawthorne 507,814 430,714 487,025 503,014 0.0004644 4,800 Hermosa Beach 298,959 253,568 286,720 296,133 0.0002734 2,826 Hidden Hills 29,524 25,041 28,315 29,245 0.0000270 279 Huntington Park 240,348 203,856 230,508 238,076 0.0002198 2,272 Industry 10,935 9,275 10,487 10,831 0.0000100 103 Inglewood 1,278,065 1,084,019 1,225,743 1,265,983 0.0011688 12,082 Irwindale 16,840 14,283 16,150 16,680 0.0000154 159 La Cañada Flintridge 0 0 0 0 0.0000000 0
La Habra Heights 0 0 0 0 0.0000000 0
La Mirada 0 0 0 0 0.0000000 0
La Puente 0 0 0 0 0.0000000 0
La Verne 503,878 427,375 483,250 499,114 0.0004608 4,763 Lakewood 166,538 141,253 159,720 164,963 0.0001523 1,574 Lancaster 0 0 0 0 0.0000000 0
Lawndale 0 0 0 0 0.0000000 0
Lomita 0 0 0 0 0.0000000 0
Long Beach 7,035,371 5,967,203 6,747,355 6,968,864 0.0064339 66,506 Los Angeles 57,989,129 49,184,744 55,615,153 57,440,951 0.0530315 548,178 Lynwood 217,713 184,658 208,800 215,655 0.0001991 2,058 Malibu 0 0 0 0 0.0000000 0
Manhattan Beach 528,044 447,872 506,427 523,052 0.0004829 4,992 Maywood 102,788 87,182 98,580 101,816 0.0000940 972 Monrovia 593,106 503,056 568,825 587,499 0.0005424 5,607 Montebello 398,028 337,596 381,734 394,266 0.0003640 3,763 Monterey Park 944,224 800,864 905,569 935,298 0.0008635 8,926 Norwalk 0 0 0 0 0.0000000 0
Palmdale 0 0 0 0 0.0000000 0
Attachment A
PUBLIC SAFETY 1/2 CENT (PROPOSITION 172) - TREND ANALYSIS FOR ALL CITIES IN THE COUNTY LOS ANGELES COUNTY UNINCORP.
2020-21
0.235190 0.223330 0.223209 0.224953
0.102% -5.043% -0.054% 0.781%
$927,462,808 $1,048,719,216 $1,083,147,773 $1,093,484,613
9.172% 13.074% 3.283% 0.954%
County Pro-rata Factor
% Change from Prior Year
County Allocation
% Change from Prior Year
2021-22 2022-23 2023-24
‡$10,336,840
$ +/- From
Prior Year
‡
‡‡
$ +/- From
Prior Year2023-242022-232021-222020-21FactorAgency Name Palos Verdes Estates 219,353 186,049 210,373 217,279 0.0002006 2,074 Paramount 0 0 0 0 0.0000000 0
Pasadena 2,160,398 1,832,388 2,071,955 2,139,975 0.0019757 20,422 Pico Rivera 0 0 0 0 0.0000000 0
Pomona 2,206,909 1,871,838 2,116,562 2,186,047 0.0020182 20,862 Rancho Palos Verdes 107,927 91,541 103,509 106,907 0.0000987 1,020 Redondo Beach 1,002,944 850,669 961,885 993,463 0.0009172 9,481 Rolling Hills 1,312 1,113 1,258 1,300 0.0000012 12 Rolling Hills Estates 0 0 0 0 0.0000000 0
Rosemead 0 0 0 0 0.0000000 0
San Dimas 382,610 324,519 366,947 378,993 0.0003499 3,617 San Fernando 283,650 240,584 272,038 280,969 0.0002594 2,681 San Gabriel 278,839 236,503 267,423 276,203 0.0002550 2,636 San Marino 208,965 177,238 200,410 206,990 0.0001911 1,975 Santa Clarita 0 0 0 0 0.0000000 0
Santa Fe Springs 247,456 209,885 237,325 245,116 0.0002263 2,339 Santa Monica 1,424,045 1,207,835 1,365,747 1,410,583 0.0013023 13,462 Sierra Madre 174,411 147,930 167,271 172,762 0.0001595 1,649 Signal Hill 3,608 3,061 3,461 3,574 0.0000033 34
South El Monte 0 0 0 0 0.0000000 0
South Gate 0 0 0 0 0.0000000 0
South Pasadena 390,593 331,290 374,603 386,900 0.0003572 3,692 Temple City 0 0 0 0 0.0000000 0
Torrance 2,173,191 1,843,240 2,084,225 2,152,648 0.0019874 20,543 Vernon 2,406 2,040 2,307 2,383 0.0000022 23
Walnut 236,411 200,517 226,733 234,177 0.0002162 2,235 West Covina 997,805 846,310 956,956 988,372 0.0009125 9,432 West Hollywood 0 0 0 0 0.0000000 0
Westlake Village 0 0 0 0 0.0000000 0
Whittier 467,027 396,119 447,908 462,612 0.0004271 4,415
Attachment A
ADJUSTED FOR
ECONOMIC DATA
CITY OF DOWNEY MEASURE S
SALES, USE AND TRANSACTIONS TAX RECEIPTS
Effective from 4/1/2017 to 3/31/2037, Rate 0.5%
RatioTransactions
Tax
Sales / Use
Tax
RatioTransactions
Tax
Sales / Use
Tax
RatioTransactions
Tax
Sales / Use
Tax
RatioTransactions
Tax
Sales / Use
Tax
Major Industry Groups
1Q 20234Q 20223Q 20222Q 2022
44.6% 515,625 1,156,11552.7% 1,031,724 543,48443.9% 530,895 1,209,61742.7% 547,891 1,282,940Autos And Transportation
48.0% 228,214 475,87244.9% 554,971 249,41648.2% 295,035 611,76444.7% 264,260 591,176Building And Construction
90.3% 444,832 492,48298.0% 450,229 441,41580.5% 372,793 463,18581.3% 373,028 458,760Business And Industry
51.0% 126,926 248,99250.7% 279,458 141,57351.0% 134,069 263,07151.6% 136,926 265,158Food And Drugs
52.9% 218,347 412,97953.3% 468,286 249,36452.9% 269,874 510,39152.9% 285,854 540,758Fuel And Service Stations
73.1% 834,378 1,140,87171.1% 1,674,093 1,190,62971.4% 911,211 1,275,68669.7% 938,412 1,345,528General Consumer Goods
52.7% 603,188 1,144,48552.1% 1,158,394 603,04752.0% 617,766 1,187,39651.9% 617,592 1,190,836Restaurants And Hotels 385.6% 24,605 6,382524.2% 4,888 25,626219.8% 21,026 9,567417.5% 20,758 4,972Transfers & Unidentified 5,680,128 3,184,720 5,530,678 3,152,669 5,622,043 3,444,554 5,078,177 2,996,114Total All Businesses 56.1% 57.0% 61.3% 59.0% 0 1,118,744 1,225,783 0 0 1,111,425 0 1,142,844State and County Pools 6,822,973 3,184,720 6,642,103 3,152,669 6,847,826 3,444,554 6,196,921 2,996,114Gross Receipts 46.7% 47.5% 50.3% 48.3% -26,070-33,041-53,551 -27,410-27,410-55,430-27,410-56,655SBOE Admin 6,766,318 3,157,310 6,586,673 3,125,259 6,794,274 3,417,144 6,163,880 2,970,044Total 46.7% 47.4% 50.3% 48.2%
CONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION 06/13/2023 8:39 pm HdL • 909.861.4335 • www.hdlcompanies.com Page 16 of 22 Attachment A
CITY OF DOWNEY MEASURE S
MAJOR INDUSTRY GROUPSADJUSTED FOR
ECONOMIC DATA
Major Industry Group 1Q23Count $ Change % Change1Q22
834,378 3,270 (7,061)-0.8% 841,439 General Consumer Goods 603,188 335 28,308 4.9% 574,881 Restaurants and Hotels 515,625 1,042 (33,886)-6.2% 549,510 Autos and Transportation 444,832 4,758 64,494 17.0% 380,338 Business and Industry 228,214 560 (6,702)-2.9% 234,916 Building and Construction 218,347 79 (13,790)-5.9% 232,137 Fuel and Service Stations 126,926 158 9,378 8.0% 117,549 Food and Drugs
24,605 2,475 6,171 33.5% 18,434 Transfers & Unidentified 0 - 0 -N/A- 0 State and County Pools
2,996,114 12,677Total 46,911 1.6% 2,949,203
$0K
$200K
$400K
$600K
$800K
$1,000K
General
Consumer
Goods
Restaurants
and
Hotels
Autos
and
Transportation
Business
and
Industry
Building
and
Construction
Fuel and
Service
Stations
Food
and
Drugs
State and
County
Pools
1Q22 Compared To 1Q23
1Q22 1Q23
1Q23 Percent of Total
28%
General
Consumer
Goods
20%
Restaurants
and
Hotels
17%
Autos
and
Transportation
15%
Business
and
Industry
8%
Building
and
Construction 7%
Fuel and
Service
Stations
4%
Food
and
Drugs
CONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION HdL • 909.861.4335 • www.hdlcompanies.com06/13/2023 8:40 pm Page 1 of 1
Attachment A
CITY OF DOWNEY MEASURE S
MAJOR INDUSTRY GROUPS
Major Industry Group 1Q23Count $ Change % Change1Q22
919,738 3,270 116,898 14.6% 802,840 General Consumer Goods 629,189 335 38,346 6.5% 590,843 Restaurants and Hotels 507,245 1,042 (44,513)-8.1% 551,758 Autos and Transportation 446,002 4,760 60,374 15.7% 385,628 Business and Industry 232,498 560 (10,991)-4.5% 243,489 Building and Construction 214,771 79 (18,864)-8.1% 233,635 Fuel and Service Stations 126,954 158 8,642 7.3% 118,312 Food and Drugs
27,859 2,473 9,198 49.3% 18,660 Transfers & Unidentified 0 - 0 -N/A- 0 State and County Pools
3,104,255 12,677Total 159,090 5.4% 2,945,166
$0K
$200K
$400K
$600K
$800K
$1,000K
General
Consumer
Goods
Restaurants
and
Hotels
Autos
and
Transportation
Business
and
Industry
Building
and
Construction
Fuel and
Service
Stations
Food
and
Drugs
State and
County
Pools
1Q22 Compared To 1Q23
1Q22 1Q23
1Q23 Percent of Total
30%
General
Consumer
Goods
20%
Restaurants
and
Hotels
16%
Autos
and
Transportation
14%
Business
and
Industry
8%
Building
and
Construction 7%
Fuel and
Service
Stations
4%
Food
and
Drugs
CONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION HdL • 909.861.4335 • www.hdlcompanies.com06/15/2023 7:02 am Page 1 of 1
Attachment A
CITY OF DOWNEY MEASURE S
1Q 2023 COMPARED TO 1Q 2022ADJUSTED FOR
ECONOMIC DATA
TOP 25 BUSINESS TYPES LISTED BY ALLOCATION
COUNTY
Code Business Type Description (Count)
AGENCY HdL STATE
1Q 2023 1Q 2022 Change Change Change1Q 2023 1Q 2023
53,162,249 226,359,286 60 New Motor Vehicle Dealers (364) -6.9% 0.8%-4.2% 316,030 339,355 31,380,140 120,559,152 35 Casual Dining (124) 3.9% 9.9%12.0% 278,789 268,244 25,054,224 83,938,962 24 Quick-Service Restaurants (142) 2.3% 5.0%5.8% 228,628 223,419 33,462,919 146,007,828 62 Service Stations (33) -4.8% -9.8%-10.0% 211,730 222,404 19,555,867 89,924,415 50 Building Materials (96) 1.9% -9.8%-5.2% 172,473 169,176 12,947,195 43,262,090 03 Family Apparel (446) 0.7% 2.3%2.8% 144,774 143,788 3,058,308 35,673,406 84 Medical/Biotech (355) 16.2% -6.7%-7.6% 144,412 124,329 158,289 405,417 09 General Merchandise (84) 10.0% 13.8%-8.2% 138,591 125,978 7,867,314 30,064,759 31 Electronics/Appliance Stores (153) -8.0% -2.1%-5.7% 116,339 126,518 8,390,752 25,664,738 99 Light Industrial/Printers (1203) 96.0% 0.8%-2.7% 103,310 52,711 4,898,303 15,747,331 07 Department Stores (14) -2.4% -6.9%-9.4% 90,406 92,634 23,279,305 109,108,727 08 Discount Dept Stores (6) -4.1% -0.6%-1.0% 89,244 93,041 9,304,126 31,895,450 19 Specialty Stores (952) 8.9% 4.0%5.1% 82,022 75,306 6,629,815 31,092,470 64 Used Automotive Dealers (250) -15.3% -11.6%-8.6% 68,531 80,870 11,225,572 47,406,500 34 Grocery Stores (25) 6.3% 5.5%6.3% 60,605 57,009 3,084,506 10,299,486 04 Shoe Stores (97) -6.6% 0.4%-2.7% 45,985 49,231 6,992,202 41,881,777 82 Contractors (356) -21.7% -12.7%-8.5% 37,737 48,197 4,890,045 23,675,788 61 Automotive Supply Stores (177) 17.0% 5.4%5.6% 37,672 32,191 5,805,331 21,905,354 37 Fast-Casual Restaurants (16) 4.8% 6.1%6.2% 37,518 35,800 7,447,922 19,843,935 65 Auto Lease (31) -7.2% -6.8%-9.1% 34,746 37,432 3,123,605 9,985,914 01 Women's Apparel (223) -8.8% -6.8%-8.6% 33,767 37,018 4,738,114 18,875,789 71 Auto Repair Shops (79) 5.0% 5.7%6.8% 32,357 30,831 4,215,747 17,617,310 89 Business Services (554) 10.1% 7.9%7.6% 30,515 27,727 6,512,511 26,287,265 30 Home Furnishings (201) 9.7% -10.4%-11.3% 29,834 27,196 1,045,846 5,177,161 70 Food Delivery/Catering (15) 8.8% 45.0%37.3% 28,329 26,045 All Others (6681) 401,772 402,751 105,147,577 514,758,963 -0.2% -0.1% -0.2% -1.1%-1.1%1.6% 1,747,419,273 403,377,784 2,949,203 2,996,114 TOTAL ALL TYPES (12677) Major Industry Groups
549,510 515,625 84,570,633 352,189,458 -4.0%-6.2% -1.2%Autos And Transportation (1042) Building And Construction (560) 165,177,518 228,214 234,916 34,071,159 346,100,940 444,832 380,338 56,220,162 Business And Industry (4758) 97,842,349 126,926 117,549 25,071,312 Food And Drugs (158) 38,986,641 218,347 232,137 175,115,091 Fuel And Service Stations (79) 334,116,732 834,378 841,439 86,646,012 General Consumer Goods (3270) 273,941,028 77,191,388 603,188 574,881 Restaurants And Hotels (335) 2,936,157 24,605 18,434 620,478 Transfers & Unidentified (2475) TOTAL ALL GROUPS (12677) 2,996,114 2,949,203 1.6% 403,377,784 -1.1% 1,747,419,273 -1.1% -2.9% -9.7%-4.6%
-1.9%17.0% 0.6%
1.0%8.0% 0.3%
-8.5%-5.9% -8.6%
-2.1%-0.8% -1.9%
4.9% 9.2%10.0%
14.3%33.5% -0.5%
1.6% 2,996,114 2,949,203
na
na
0 0
0 0
2,949,203 1.6% 403,377,784 -1.1% 1,747,419,273 -1.1% 2,996,114
GROSS RECEIPTS
ALLOCATIONS FROM STATE POOL
ALLOCATIONS FROM COUNTY POOL
TOTAL ALL BUSINESSES (12677)
CONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION
Attachment A
CITY OF DOWNEY MEASURE S
1Q 2023 COMPARED TO 1Q 2022ADJUSTED FOR
ECONOMIC DATA
TOP 25 BUSINESS TYPES LISTED BY ALLOCATION
COUNTY
Code Business Type Description (Count)
AGENCY HdL STATE
1Q 2023 1Q 2022 Change Change Change1Q 2023 1Q 2023
53,162,249 226,359,286 60 New Motor Vehicle Dealers (364) -6.9% 0.8%-4.2% 316,030 339,355 31,380,140 120,559,152 35 Casual Dining (124) 3.9% 9.9%12.0% 278,789 268,244 25,054,224 83,938,962 24 Quick-Service Restaurants (142) 2.3% 5.0%5.8% 228,628 223,419 33,462,919 146,007,828 62 Service Stations (33) -4.8% -9.8%-10.0% 211,730 222,404 19,555,867 89,924,415 50 Building Materials (96) 1.9% -9.8%-5.2% 172,473 169,176 12,947,195 43,262,090 03 Family Apparel (446) 0.7% 2.3%2.8% 144,774 143,788 3,058,308 35,673,406 84 Medical/Biotech (355) 16.2% -6.7%-7.6% 144,412 124,329 158,289 405,417 09 General Merchandise (84) 10.0% 13.8%-8.2% 138,591 125,978 7,867,314 30,064,759 31 Electronics/Appliance Stores (153) -8.0% -2.1%-5.7% 116,339 126,518 8,390,752 25,664,738 99 Light Industrial/Printers (1203) 96.0% 0.8%-2.7% 103,310 52,711 4,898,303 15,747,331 07 Department Stores (14) -2.4% -6.9%-9.4% 90,406 92,634 23,279,305 109,108,727 08 Discount Dept Stores (6) -4.1% -0.6%-1.0% 89,244 93,041 9,304,126 31,895,450 19 Specialty Stores (952) 8.9% 4.0%5.1% 82,022 75,306 6,629,815 31,092,470 64 Used Automotive Dealers (250) -15.3% -11.6%-8.6% 68,531 80,870 11,225,572 47,406,500 34 Grocery Stores (25) 6.3% 5.5%6.3% 60,605 57,009 3,084,506 10,299,486 04 Shoe Stores (97) -6.6% 0.4%-2.7% 45,985 49,231 6,992,202 41,881,777 82 Contractors (356) -21.7% -12.7%-8.5% 37,737 48,197 4,890,045 23,675,788 61 Automotive Supply Stores (177) 17.0% 5.4%5.6% 37,672 32,191 5,805,331 21,905,354 37 Fast-Casual Restaurants (16) 4.8% 6.1%6.2% 37,518 35,800 7,447,922 19,843,935 65 Auto Lease (31) -7.2% -6.8%-9.1% 34,746 37,432 3,123,605 9,985,914 01 Women's Apparel (223) -8.8% -6.8%-8.6% 33,767 37,018 4,738,114 18,875,789 71 Auto Repair Shops (79) 5.0% 5.7%6.8% 32,357 30,831 4,215,747 17,617,310 89 Business Services (554) 10.1% 7.9%7.6% 30,515 27,727 6,512,511 26,287,265 30 Home Furnishings (201) 9.7% -10.4%-11.3% 29,834 27,196 1,045,846 5,177,161 70 Food Delivery/Catering (15) 8.8% 45.0%37.3% 28,329 26,045 All Others (6681) 401,772 402,751 105,147,577 514,758,963 -0.2% -0.1% -0.2% -1.1%-1.1%1.6% 1,747,419,273 403,377,784 2,949,203 2,996,114 TOTAL ALL TYPES (12677) Major Industry Groups
549,510 515,625 84,570,633 352,189,458 -4.0%-6.2% -1.2%Autos And Transportation (1042) Building And Construction (560) 165,177,518 228,214 234,916 34,071,159 346,100,940 444,832 380,338 56,220,162 Business And Industry (4758) 97,842,349 126,926 117,549 25,071,312 Food And Drugs (158) 38,986,641 218,347 232,137 175,115,091 Fuel And Service Stations (79) 334,116,732 834,378 841,439 86,646,012 General Consumer Goods (3270) 273,941,028 77,191,388 603,188 574,881 Restaurants And Hotels (335) 2,936,157 24,605 18,434 620,478 Transfers & Unidentified (2475) TOTAL ALL GROUPS (12677) 2,996,114 2,949,203 1.6% 403,377,784 -1.1% 1,747,419,273 -1.1% -2.9% -9.7%-4.6%
-1.9%17.0% 0.6%
1.0%8.0% 0.3%
-8.5%-5.9% -8.6%
-2.1%-0.8% -1.9%
4.9% 9.2%10.0%
14.3%33.5% -0.5%
1.6% 2,996,114 2,949,203
na
na
0 0
0 0
2,949,203 1.6% 403,377,784 -1.1% 1,747,419,273 -1.1% 2,996,114
GROSS RECEIPTS
ALLOCATIONS FROM STATE POOL
ALLOCATIONS FROM COUNTY POOL
TOTAL ALL BUSINESSES (12677)
CONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION
Attachment A
SALES TAX ALLOCATION CASH PROJECTIONS
CITY OF DOWNEY MEASURE S
Fiscal Year
2021-22
Fiscal Year
2022-23
Payment
Month
Fiscal Year
2023-24
Fiscal Year
2022-23
ACTUAL FORECAST *AccrualAccrualAccrualAccrualJune $ 922,291 $ 1,028,449 1st Advance $ 1,028,449 $ 869,882 July 1,075,288 1,066,594 2nd Advance 1,066,594 869,882 August 1,199,798 971,723 Clean Up 971,723 1,449,803 3,066,766 3,197,377 2nd Quarter Allocation 3,066,766 3,189,566 September 984,218 1,084,703 1st Advance 1,084,703 855,685 October 1,040,782 954,415 2nd Advance 954,415 855,685 November 1,075,091 1,098,741 Clean Up 1,098,741 1,426,141 3,137,859 3,100,091 3rd Quarter Allocation 3,137,859 3,137,510 December 997,183 1,140,747 1st Advance 1,140,747 873,743 January 957,913 942,801 2nd Advance 942,801 873,743 February 1,372,440 1,317,552 Clean Up 1,317,552 1,456,239 3,401,101 3,327,536 4th Quarter Allocation 3,401,101 3,203,725 March 954,475 1,023,246 1st Advance 872,329 851,499 April 838,471 801,771 2nd Advance 872,329 851,499 May 1,133,210 1,253,168 Clean Up 1,453,882 1,419,166 3,078,185 2,926,156 1st Quarter Allocation 3,198,540 3,122,165 June 1,028,449 - 1st Advance 869,882 875,752
July 1,066,594 - 2nd Advance 869,882 875,752
August 971,723 - Clean Up 1,449,803 1,459,587
- 3,066,766 2nd Quarter Allocation 3,189,566 3,211,092 Fiscal Year Reconciliation
$ 12,420,549 Accrual $ 12,927,065 $ 12,674,491 $ 9,617,145 * Based on budget prepared 05/16/23 by rls
Attachment A
CITY OF DOWNEY MEASURE S
TRANSACTIONS & USE TAX ALLOCATION SUMMARY
Seven Major
Industry Groups
Fiscal Yr
2020-21
Totals
FY 2021-22 Sales Quarters Fiscal Yr
2021-22
Totals
Fiscal Yr
2022-23
YTD Totals
FY 2022-23 Sales Quarters
3Q 4Q 1Q 2Q 2Q1Q4Q3Q
Dollar
Change
Prior Yr
Percent
Change
Prior Yr
YTD
% Change
Prior Yr
District Tax
Autos And Transportation 1,829,947 565,898 470,841 551,758 554,713 2,143,210 531,322 539,157 507,245 1,577,724 313,264 17% -1% Building And Construction 926,683 247,934 224,675 243,489 264,764 980,862 264,856 294,088 232,498 791,442 54,179 6% 11% Business And Industry 1,511,123 394,172 369,000 385,625 380,850 1,529,647 369,609 439,015 445,103 1,253,726 18,524 1% 9% Food And Drugs 486,074 127,824 127,650 118,312 138,159 511,945 137,894 142,267 126,954 407,115 25,871 5% 9% Fuel And Service Stations 681,017 232,277 240,055 233,635 285,050 991,016 265,226 254,374 214,771 734,371 309,999 46% 4% General Consumer Goods 3,944,920 985,583 1,306,351 802,840 879,714 3,974,488 925,447 1,125,052 919,738 2,970,237 29,568 1% -4% Restaurants And Hotels 1,843,028 557,537 597,065 590,843 569,812 2,315,257 647,085 610,143 629,189 1,886,417 472,229 26% 8% Transfers & Unidentified 59,460 15,407 18,441 18,663 21,113 73,623 23,829 24,416 28,758 77,002 14,163 24% 47% 3%11% 1,237,798 Total District Tax 11,282,251 3,126,631 12,520,049 3,094,176 2,945,166 3,354,076 9,698,035 3,104,255 3,428,511 3,165,269 Less: Cost of Administration (9,750)(89,750) (26,540) (26,540) (19,010) (27,410) (99,500) (27,410) (27,410) (26,070) (80,890)-11% -12% 3,078,185 9,617,145 Grand Total 3,066,766 3,137,859 3,100,091 12,420,549 1,228,048 11% 11,192,501 3% 3,327,536 2,926,156 3,401,101 Budget 5,225,000 5,396,000 6,298,500
**Due to the monthly allocation changes by CDTFA, as of 1st Quarter 2018 all fiscal year totals will be reported on an accrual basis (July to June sales).
Budget vs.
Receipts
(In Thousands)
06/13/2023 8:41 pm HdL • 909.861.4335 • www.hdlcompanies.com CONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATIONCONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATIONCONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATIONCONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATIONCONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATIONCONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATIONCONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATIONCONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATIONCONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATIONCONFIDENTIAL INFORMATION - DO NOT COPY OR DISTRIBUTE WITHOUT AUTHORIZATION Page 22 of 22 Attachment A
Sales Tax Trends & Economic Drivers
California Forecast
June 2023
Introductions
BOBBY YOUNG
Director of Client Services
TRACY VESELY
Principal
KEN BROWN
Principal
About HdL
PROUD
TO SERVE
CITIES, COUNTIES &
SPECIAL DISTRICTS
FOR40 YEARS!
100%
EMPLOYEE
OWNED
TRIFECTA
Superior service
Increased revenue
Decreased costs
COMPLIANCE
Help reduce risk
by keeping current with
ever-changing legislation
RESULTS
Average city growth
rates are ~3%,
HdL clients are 2x that!
1st Quarter 2023 Statewide Results
Region 1Q 2023
Bay Area 1.2%
Southern California -0.8%
San Joaquin Valley -3.0%
Sacramento Region -3.6%
Central Coast -3.6%
Sierras -4.7%
Far North -8.1%
Major Industry Group 1Q 2023
Autos & Transportation -1.2%
Building & Construction -9.7%
Business & Industry 0.6%
Food & Drugs 0.3%
Fuel & Service Stations -8.6%
General Consumer Goods -1.9%
Restaurants & Hotels 9.2%
Pools -1.1%
Total -1.1%
Forecast Considerations
Supply
Chain
Interest
Rates
Savings
Trends
Consumer
Spending
Inflation
& Prices
Mortgage
Rates
Savings & Disposable Income
Personal Savings Rate
•Q1 2023: 4.3%
•Q4 2022: 4.0%
•Q3 2022: 3.2%
•Q2 2022: 3.2%
•Q1 2022: 4.3%
•4Q 2021: 7.3%
•3Q 2021: 9.1%
•2Q 2021: 10.8%
•1Q 2021: 19.9%
Consumer Spending
Interest Rates
+500 bps
Inflation & Sales Tax
•Weakening demand for consumer
goods → downward pressure on
volume. Rising prices → upward
pressure on taxable sales
•Multiple industries experiencing
pricing rebounds from year ago
peaks. Negative pressure on sales
tax.
Current Conditions
Taxable Sales
Weakening
Demand
HdL Statewide Trend Quarterly Outlook
3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 FY 23-24
18.8%16.4%17.2%10.2%7.9%4.7%-1.1%-2.5%-2.5%-1.5%0.4%0.9%-0.7% % Change
YoY
Forecasted Periods
-
500
1,000
1,500
2,000
2,500
3,000
Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224Millions
Local Place of Sale (POS)
3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 FY 23-24
1.1%-2.9%11.5%5.7%5.8%-0.6%-1.1%-1.5%-2.0%0.0%0.0%1.0%2.0% 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 FY 23-24
23.5%22.1%18.5%11.2%8.3%5.9%-1.1%-2.7%-2.6%-1.8%0.5%0.8%2.2%POS (YoY) Pools (YoY)
0 500
1,000
1,500
2,000
2,500
Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224Millions
Auto Inventory (Inventory/Sales Ratio)
This past year10 Year Trend
Auto Prices
Used Vehicles: -12.1%New Vehicles: +5.9%
Autos: Trends
•Average transaction prices (ATP): up 2.7% year-over-year (May 2023) •Incentives as a percentage of ATP: 4.2%, compared to 2.6% a year ago (TrueCar) •Average price paid for a new vehicle vs. MSRP: Below the manufacturer’s suggested retail price for the second month after 20-months! •$378 below sticker price, versus $600 above sticker price last year (Kelley Blue Book). •Average monthly payment: payment: $736, up 7% in May from last year (J.D. Power). •Fleet sales: +49.6% in May (representing 19% of total sales, vs 15% last year) (J.D. Power) •Average vehicle age: 12.5 years (+3 months from last year)
Autos & Transportation Forecast
3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 FY 23-24
17.0%15.4%15.4%5.3%6.1%5.7%-1.3%-2.0%-4.0%-4.0%-3.0%-2.0%-3.3% % Change
YoY
0 50
100
150
200
250
300
350
400
Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224Millions
Gas Prices
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
Jan 04, 2021Feb 04, 2021Mar 04, 2021Apr 04, 2021May 04, 2021Jun 04, 2021Jul 04, 2021Aug 04, 2021Sep 04, 2021Oct 04, 2021Nov 04, 2021Dec 04, 2021Jan 04, 2022Feb 04, 2022Mar 04, 2022Apr 04, 2022May 04, 2022Jun 04, 2022Jul 04, 2022Aug 04, 2022Sep 04, 2022Oct 04, 2022Nov 04, 2022Dec 04, 2022Jan 04, 2023Feb 04, 2023Mar 04, 2023Apr 04, 2023May 04, 2023Jun 04, 2023Weekly California Regular Reformulated Retail Gasoline Prices (Dollars per Gallon)
Fuel & Service Stations Forecast
3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 FY 23-24
51.5%54.6%47.6%43.3%22.1%10.5%-8.6%-20.0%-20.0%-15.0%0.0%0.0%-9.5% % Change
YoY
0 50
100
150
200
250
300
Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224Millions
Lumber Prices
Construction Factors
LUMBER PRICES
COLLAPSED
WEATHER:
IMPROVING
WEATHER EXPECTED
TO BRING
CONSUMERS BACK
HOME
IMPROVEMENTS
BECOMING SMALLER
IN SCOPE
SLOWING RESIDENTIAL
PERMITS BUT
ANTICIPATE INCREASED
NON-RESIDENTIAL
PROJECTS
Building & Construction Forecast
3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 FY 23-24
9.2%4.8%13.7%8.0%7.6%5.2%-9.7%-2.8%-2.0%-2.0%2.0%0.0%-0.6% % Change
YoY
0 50
100
150
200
250
Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224Millions
Food & Drugs
CPI (Last 12 months):
Food at home index +5.8%
Grocery Stores up 5.5%
Drug Stores down 2%
Cannabis declined -6.3%
3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 FY 23-24
1.4%3.3%3.1%1.6%0.4%2.8%0.3%2.0%2.0%2.0%2.0%2.0%2.0%
% Change
YoY
0 20
40 60
80 100
120
140
Q320Q420Q121Q221Q321Q421Q122Q222Q322Q422Q123Q223Q323Q423Q124Q224Millions
General Consumer Goods: 1Q23
-0.6%
2.3%
4.0%
-2.1%
-10.4%
-6.9%
-8.0%
-7.7%
-6.8%-12%-10%-8%-6%-4%-2%0%2%4%6%Discount Dept Stores
Family Apparel
Specialty Stores
Electronics/Appliance Stores
Home Furnishings
Department Stores
Sporting Goods/Bike Stores
Jewelry Stores
Women's Apparel080319313007121701
Responding to Inflation
GCG: Trends
High impact categories have been slowing since 3Q21 and contracting the last three quarters Includes:
Department Stores
Electronics/Appliances
Family Apparel
Home Furnishings
Jewelry Stores
Shoe Stores
Specialty Stores
Sporting Goods
Women’s Apparel
-5%
0%
5%
10%
15%
20%
25%
30%
3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24
General Consumer Goods Forecast
3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 FY 23-24
22.7%18.8%11.1%4.7%2.4%1.9%-1.9%-2.4%-1.8%-1.2%0.0%1.0%-0.5% % Change
YoY
0 50
100
150
200
250
300
350
400
450
500
Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224Millions
County Pools: Trends
22%
59%
72%
116%110%
47%
18%
-13%-16%-17%
-3%-4%-2%-9%-7%
10%6%3%
-9%
8%
16%18%
33%
18%13%
22%
13%11%6%3%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 General Consumer Goods - % Chg All Other MIG - % Chg
Online Sales Allocations
22%22%23%22%21%20%21%20%20%21%20%20%
35%34%33%36%36%36%36%40%40%
78%78%77%78%79%80%79%80%80%79%80%80%
65%66%67%64%64%64%64%60%60%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%1Q182Q183Q184Q181Q192Q193Q194Q191Q202Q203Q204Q201Q212Q213Q214Q211Q222Q223Q224Q221Q23Direct Indirect Direct = Local tax allocations from identified fulfillment centers Indirect = Local tax allocations from General Consumer Goods through the County Pools
County Pools: B&I and B&C Improve
- 20 40 60 80 100 120 140 160
Autos & Transportation
Building & Construction
Business & Industry
General Consumer Goods
Restaurants & Hotels
Transfers & Unidentified
Millions
1Q22 1Q23
County Pools: Major Categories
-20%-15%-10%-5%0%5%10%15%
00009-General Merchandise
00064-Used Automotive Dealers
00084-Medical/Biotech
00082-Contractors
00099-Light Industrial/Printers
00089-Business Services
00031-Electronics/Appliance Stores
00003-Family Apparel
00081-Energy/Utilities
00019-Specialty Stores
County Pools Forecast
3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 FY 23-24
1.1%-2.9%11.5%5.7%5.8%-0.6%-1.1%-1.5%-2.0%0.0%0.0%1.0%-0.3% % Change
YoY
0 50
100
150
200
250
300
350
400
450
500
Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224Millions
B&I: Fulfillment Centers
Place-of-Sale direct allocations to local agencies
4Q19 – 3Q20: Growth from AB147, Marketplace Facilitators, pandemic behavior shifts 4Q20: Continued pandemic behavior shifts to online shopping 1Q21 - 4Q21: Shifts of some local tax reporting due to business structure changes from indirect to direct reporting 0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
-
20 40
60 80
100
120
140
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23Millions% Change Fulfillment Centers
Business & Industry: Top BT’s
$0 $10 $20 $30 $40 $50
Medical/Biotech
Light Industrial/Printers
Heavy Industrial
Electrical Equipment
Business Services
Warehse/Farm/Const. Equip.
Office Equipment
Garden/Agricultural Supplies
Office Supplies/Furniture
Drugs/Chemicals
Millions
1Q22 1Q23
Industry Trends
CA fulfillment
centers filling
more and more
online and
remote seller
orders, boosting
direct allocations
Industry: ISM
Manufacturing
Index contracting
(7th consecutive
month); 16.4%
below a year ago
Backlogs continue
to drop but new
orders are down
Higher borrowing
costs combined
with uncertainty
putting pressure
on taking on new
capital
investment
Business & Industry Forecast
3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 FY 23-24
19.7%21.1%11.4%7.4%10.4%8.1%0.6%1.8%2.8%1.9%2.3%2.3%2.3% % Change
YoY
0 50
100
150
200
250
300
350
400
450
Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224Millions
Restaurants & Hotels: Industry Trends
Lunch visits
suppressed
(hybrid WFH
schedules);
Spending
significantly more
when they do go
out
Fast food more
recession resistant
Consumers putting
more value on
affordable or lower
priced items.
Promotional
strategies.
Leisure/Entertain
ment is in
demand.
Resurgence of
Chinese tourists
expected to boost
CA hospitality
next couple years.
Restaurants – CDTFA Cash Receipts
Source: CDFTA; Sales and Use Tax Monthly Reported Payments by Industry
Restaurants & Hotels Forecast
3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 FY 23-24
50.1%50.0%40.7%19.6%10.8%9.0%9.2%4.0%4.0%4.0%3.0%3.0%3.5% % Change
YoY
0 50
100
150
200
250
300
350
Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224Millions
HdL Statewide Trend – Annual Outlook (FY)
16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 27/28
2.7%5.6%4.6%-1.9%11.4%15.5%2.2%-0.7%2.2%3.0%3.1%3.1%
% Change
YoY
-
2,000
4,000
6,000
8,000
10,000
12,000
FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY 26/27 FY 27/28Millions
250+
CA AUDITS
1,800+
APPLICATIONS
REVIEWED
11K+
INSPECTIONS
$70M
RECOVERED
REVENUE
CANNABIS SUPPLY & DEMAND IN 2023
California’s cannabis industry isn’t dying.
It’s just not as large as people thought.
HdL is the industry leader in the development, implementation, and enforcement of cannabis management programs.
Thank you!
Bobby Young
[email protected]
Ken Brown [email protected] Tracy Vesely [email protected] 888.861.0220
www.hdlcompanies.com
Brea | Fresno | Pleasanton