These Guidelines reflect and activate the City Council’s priorities; they do not supplant them.
They work to guide staff and the City’s legislative advocates on issues that are important to the City Council, and likely to become a legislative issue. These Guidelines are not rank- ordered and are meant to allow for a flexible and quick response by staff and advocates, without the need to return to the City Council to seek guidance. The Guidelines work in conjunction with the City Council-approved Advocacy Process Manual and the City Council action to do “Strategic Weighing in on Issues of Interest” (June 22, 2021 CMR 12344; Minutes).
The below Foundational Principles represent the ideals that form the core of the City’s policy agenda. The Legislative Guidelines all rise from and strengthen four foundational principles:
1. Protect local revenue sources and prevent unfunded mandates.
2. Protect, seek, and increase funding for programs, projects, and services; pursue grants.
3. Protect and increase local government discretion. Oppose items that preempt or reduce the authority or ability of local government to determine how to effectively operate local programs, services, activities, and governance.
4. Protect the health and safety of the community.
The Legislative Guidelines create the framework for organizing the City’s policy interests, while guiding staff and contracted lobbyists in their advocacy efforts on behalf of the City. The items below provide direction for the City’s efforts when addressing reasonable government actions.
Transportation
The City supports government action that:
• Deters single occupancy drivers and alleviates local traffic congestion • Supports local and regional public transportation
• Regulates technology that diverts traffic into residential neighborhoods • Provides funding for rail grade separations, rail efficiency improvements, and other means of reducing the local impacts of regional transportation systems Climate and Environment
The City supports government action that:
• Reduces GHG emissions
• Reduces airplane noise, health impacts, and/or airplane emissions • Promotes residential and vehicle electrification programs Item 13
Attachment C - 2023 City
Legislative Guidelines
Item 13: Staff Report
Pg.
14 Packet Pg. 364 of 384
• Promotes the use of renewable resources, water conservation, and the flexible use of existing resources
• Supports a statewide ban on polystyrene containers and packaging materials • Provides opportunities for staff to work with the San Francisquito Creek Joint Powers Authority and other regional stakeholders in efforts to improve the creek’s watershed and floodplain
• Supports efforts to protect local communities from sea level rise and other impacts of climate change
• Supports proper disposal of recyclables once removed from Palo Alto • Strengthen and modernize the State and Local electric grids
Financial
The City supports government action that:
• Supports the long-term stability of CalPERS and the ability of local governments to mitigate and manage with flexibility its pension obligations
• Protects the funding sources and levels of City services • Provides for COVID-19 related expenses and revenue losses • Supports the continued deductibility of tax-exempt municipal bonds and the restoration of Advance Refunding of Tax-Exempt Municipal Bonds
Public Employment
The City supports government action that:
• Preserves local government’s ability to manage its own employment issues, including, but not limited to hiring, evaluating, disciplining, and/or terminating and negotiating collective bargaining agreements with employees’ representatives
Technology
The City supports government action that:
• Supports reasonable regulatory efforts surrounding policies regarding cybersecurity, drones, shared mobility services, returning to Obama-era net neutrality regulations, and smart city initiatives
Housing
The City supports government action that:
• Supports reasonable housing policies that recognize local autonomy to maintain the local public process and preserve local government’s ability to determine land use policies and development standards
Item 13
Attachment C - 2023 City
Legislative Guidelines
Item 13: Staff Report
Pg.
15 Packet Pg. 365 of 384
• Provides funding for (a) affordable housing, (b) homelessness, and (c) infrastructure (such as parks, utilities, roads, and transit) required to support the increased housing production
• Fosters reasonable ratios between jobs and housing
• Supports the development and implementation of efficient and environmentally sustainable land use and building practices
Police
The City supports government action that:
• Supports efforts which seek to modify policing services, including but not limited to alternative public safety models and funding to address community mental health issues, expansion of requirements regarding police data and rules regarding prior employment information transparency, and expansion of data and communications including radio encryption.
Other
The City supports government action that:
• Updates, implements, and refines processes, services, and programs affecting the City. This includes, but is not limited to, public safety reform efforts and streamlining reporting mandates
• Protects individual privacy and allows the City to safeguard customer information • Provides for the equal treatment of all individuals
• Allows the City to support the collaborative work of regional partners, trade associations, other local governments and organizations, and Joint Powers Authorities Item 13
Attachment C - 2023 City
Legislative Guidelines
Item 13: Staff Report
Pg.
16 Packet Pg. 366 of 384
City of Palo Alto (ID # 14913)
City Council Staff Report
Meeting Date: 11/7/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: Policy and Services Committee Recommendation that the City Council Adopt the 2023 Citywide Legislative Guidelines and Support the Tentative 2023 Legislative Work plan
From: City Manager
Lead Department: City Manager
Recommendation
The Policy and Services Committee recommends that the City Council approve the 2023 Federal and State Legislative Guidelines ( Attachment A ) and support the tentative 2023 Legislative Workplan.
Background
As part of the City’s legislative program, staff and the City’s c ontracted federal and state advocates work to identify and analyze potentially impactful legislation and communicate the City’s public advocacy positions to legislators. The program is guided by the Advocacy Process Manual, last updated and approved by Cit y Council on January 13, 2020 (CMR #10772).
Additionally, the City Council in June 2021, also reaffirmed the strategy desired for the City’s legislative actions. That reaffirmation is shown in the staff report ( CMR #12344; Minutes) from June 22, 2021. The overall decision was to continue the strategy of Strategically Weighing in on Issues of Interest to the City in the legislative approach taken by the consultant advocates and City staff.
The C ity also maintains a City Council -approved set of legislative guidelines (guidelines) that provide additional City Council policy direction to staff and the City’s state and federal legislative advocates. These are reviewed annually. The guidelines were di scussed at the Policy & Services Committee on October 11, 2022 ( CMR #14827 ) and the Committee made a few suggested changes. Prior to that Policy and Service discussion, the last time the full City Council approved the Guidelines was on February 7, 2022 (at the same meeting City Council approved the legislative guidelines for the Utilities Department; CMR 13904; Minutes).
Staff and the legislative advocates often come to Policy and Services Committee and the full City Council to discuss updates. The last legislative update to the Policy and Services Committee was on May 10, 2022 (CMR 14379; Minutes).
12 Packet Pg. 168
Item 13
Attachment D - Tentative
2023 Legislative Work
Plan
Item 13: Staff Report
Pg.
17 Packet Pg. 367 of 384
City of Palo Alto Page 2
Discussion
The Policy and Services Committee reviewed the draft 2023 legislative guidelines and proposed the guidelines attached in this report as Attachment A. The changes include basic information such as the year and other technical changes such as a title change to the Environmental section and the addition of a new bullet point in that section. The changes are clearly shown as tracked changes in Attachment A.
What are the Legislative Guidelines
The Legislative Guidelines enhance and add content to the City Council’s overarching priorities; they do not supplant them. The guidelines provide direction to staff and the City’s legislative advocates on issues that are both (a) important to the City Council, and (b) likely to become a legislative issue in 2023. The guidelines are not rank ordered and are inte ntionally reasonably broad rather than specifically narrow to allow for a flexible and quick response.
Further, the guidelines are not proactive instructions; they act as a means by which staff and advocates can respond to federal and state government ac tion, without returning to the City Council each time a bill is introduced or amended.
Utilities Legislative Guidelines
The City Council also annually adopts the Utilities Legislative Guidelines after review and recommendation by the Utilities Advisory C ommission. The Commission will make their recommendations soon, reflecting recent City Council actions and bring the proposed 2023 Utilities Legislative Guidelines for City Council adoption on Consent in early 2023.
Legislative Update
The City’s legislati ve advocates in Sacramento (Townsend Public Affairs) and legislative advocates in Washington, D.C. (Van Scoyoc Associates) provided updates in the October 11 2022 Policy and Services Committee. Those reports are available in Attachment B and also online in the October 11, 2022 Policy and Services Committee packet (CMR #14827).
One bill that has drawn significant attention is AB 2097, which prohibits a city from imposing parking requirements on developments that are within 1/2 mile of a major public transit stop, as defined in state law. The bill includes limited exception s in the event a city can make certain findings, supported by a preponderance of the evidence. To take advantage of these exceptions, the City would have to develop evidence to support findings that the absence of parking requirements would have a substantially negative impact on:
1) the City’s ability to meet its share of RHNA for lower income households; 2) the City’s ability to meet special housing needs identified in its housing element for the elderly or persons with disabilities; or
3) e xisting residential or c ommercial parking within one -half mile of the housing development project.
Of these three options, the third appears to have the broadest applicability; however, it only 12 Packet Pg. 169
Item 13
Attachment D - Tentative
2023 Legislative Work
Plan
Item 13: Staff Report
Pg.
18 Packet Pg. 368 of 384
City of Palo Alto Page 3
speaks to housing development projects. In other words, this would not be a basis for imposing parking requirements on commercial projects under AB 2097. In addition, where housing projects are concerned, AB 2097 provides several exceptions to these exceptions. For housing projects, a city may not use these findings to impose parking requi rements if: 1) the project reserves at least 20 percent of its units for moderate income households, students, elderly persons, or persons with disabilities; 2) the project contains fewer than 20 units; or 3) the project is subject to other state laws that permit reduced parking. In short, there is only a very limited class of projects for which the City could utilize findings to impose parking requirements: large housing projects that do not provide at least 20 percent of units for moderate income households, students, elderly persons or persons with disabilities.
Tentative Legislative Workplan
To plan for the upcoming legislative session, staff has drafted the following tentative workplan for City Council awareness, review, and comment.
Resource Impact
There is no resource impact associated with adopting legislative guidelines. Items on the tentative legislative workplan have costs associated with them such as any potential visits to Sacramento and Washington, D.C. It is anticipated that should thes e activities be approved by the Council, these costs will be supported by the City Council contingent account in FY 2023.
Staff has started the procurement process (request for proposals) for the state and federal legislative advocacy work. At the appropr iate time staff will bring the contracts to City Council 12 Packet Pg. 170
Item 13
Attachment D - Tentative
2023 Legislative Work
Plan
Item 13: Staff Report
Pg.
19 Packet Pg. 369 of 384
City of Palo Alto Page 4
for review and approval. The City Council has already allocated funds for these contracts and services.
Stakeholder Engagement
Staff from multiple departments are involved in the legislative process in helping to review the impacts of bills as well as discussing grant oportunities linked to state and federal programs.
Environmental Review
Approval of the 2023 Federal and State Legislative Guidelines and tentative workplan are not projects under the California Environmental Quality Act., See CEQA Guidelines section 15378(b)(2) (general policy making activities).
Attachments:
• Attachment12.a: October 11, Legislative Update to Policy & Services Cmte 12 Packet Pg. 171
Item 13
Attachment D - Tentative
2023 Legislative Work
Plan
Item 13: Staff Report
Pg.
20 Packet Pg. 370 of 384
1 7
5 6
City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Administrative Services
Meeting Date: April 3, 2023
Report #:2302-1009
TITLE
Sales Tax Digest Summary Calendar 2022 Q3 (July 2022 – September 2022)
RECOMMENDATION
This report transmits the third quarter (July to September) of 2022 sales tax digest for the City of Palo Alto (Attachment A).
The City’s sales tax cash receipts of $8.7 million for the third quarter (July to September 2022) is $1.9 million (28.3%) higher than the same quarter of the prior year (see Attachment A, Historical Analysis by Calendar Quarter). This increase includes late payment anomalies related to the state sales tax extension program and other cash adjustments. When adjusted for non- period related payments, the overall economic quarter over quarter sales tax activity (Q3 2021 to Q3 2022) in Palo Alto increased by 10.3%. due to higher prices of goods and services as a result of inflation and increased economic activity.
For the year ending in the third quarter of 2022, cash receipts (including county pools) for the City increased by 17.9% from the prior year. In comparison, statewide increased by 13.6% and Northern California increased by 11.9%.
After adjustments for non-period related payments, the overall economic sales tax activity (local business excluding pools) in Palo Alto for the year increased by 18.0%, while it increased
9.9 % for the state and decreased 1.4% in Northern California.
The third quarter includes $1.7 million of sales tax receipts from the county pool. The City’s share of the county pool for this quarter is 5.9%, up from 5% in the third quarter of 2021.
County pools are primarily from online purchases from out-of-state companies, remote sellers who ship merchandise to California/County destinations, and private vehicle sales that are not directly allocated to a jurisdiction. County pools are allocated to local jurisdictions based on each jurisdiction’s share of total sales taxes.
ATTACHMENTS
Attachment A: City of Palo Alto Sales Tax Digest Summary APPROVED BY:
Kiely Nose, Assistant City Manager
Item 14
Item 14 Staff Report
Item 14: Staff Report
Pg.
1 Packet Pg. 371 of 384
City of Palo Alto
Sales Tax Digest Summary
Collections through December 2022
Sales July through September 2022 (2022Q3)
www.avenuinsights.com (800) 800-8181 Page 1
California Overview
For the year ending in third quarter of 2022, cash receipts increased 13.6% statewide, 11.9% in Northern California. However, when adjusted for non-period related payments, the overall economic sales tax activity for the year ending in third quarter of 2022 increased by 9.9% statewide, and down 1.4% in Northern California.
City of Palo Alto
For the year end ing in the third quarter of 2022, sales tax cash receipts for the city increased by 17.9% from the prior year. However, when adjusted for non-period related payments, the overall economic sales tax activity in Palo Alto for the year ending in third quarter of 2022 increased by 18.0%.
On a quarterly basis, sales tax cash receipts increased by 28.3% from Quarter 3 of 2021 to Quarter 3 of 2022. However, this increase includes late payment anomalies related to a state sales tax extension program. The period’s cash receipts include tax from business activity during the period, payments for prior periods and other cash adjustments. When ad justed for non-period related payments, the overall economic quarter over quarter sales tax activity (Q3 2021 to Q3 2022) in Palo Alto increased by 10.3%.
A large, one -time audit decision of -$612,000 negatively impacted the city’s cash receipts this quar ter.
Without the correction, sales tax cash receipts would have increased by approximately 12.4% from Quarter 2 of 2021 to Quarter 2 of 2022. Approximately 3.8% of that adjusted 12.4% Q2 of 2022 over Q2 of 2021 increase might be attributed to inflation, ba sed on increases in the Consumer Price Index, (CPI - U). Very little of Palo Alto’s adjusted 12.4% increase might be attributed to increased economic activity, based on changes in US Real GDP. Roughly 1.7% is attributable to a decrease in payments from prior periods, due to Palo Alto taxpayers getting caught up with payments. The remaining roughly 6.9% is a combination of recovery and other factors (consumers, businesses and organizations getting back to Pre- Pandemic trends along with non -pandemic related bus iness performance changes). Note that some of these factors are based on broad based data and thus, these growth factors should be treated as rough guidelines for economic activity changes this quarter.
Regional Overview
The first chart on page two shows adjusted economic benchmark year amounts, which means that it shows a full calendar year from the third quarter of 2021 through third quarter of 2022 compared to third quarter of 2020 through third quarter of 2021 (benchmark years are rolling annual comparisons through the current quarter). The decrease is different between the state and Palo Alto because the sales tax from businesses in Palo Alto were more impacted than those statewide.
Item 14
Attachment A - City of
Palo Alto Q3 2022 Sales
Tax Digest Summary
Item 14: Staff Report
Pg.
2 Packet Pg. 372 of 384
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 2 $-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Quarterly Benchmark Year
% of Total / % Change Palo Alto California
Statewide S.F. Bay Area Sacramento
Valley Central Valley South Coast Inland Empire North Coast General Retail 27.7 / 23.5 28.2 / 8.1 26.5 / -11.1 27.8 / 9.7 36.3 / 5.6 26.2 / 12.7 32.6 / 33.3 25.6 / -27.3 Food Products 16.6 / 41.5 20.1 / 16.2 20.7 / 2.1 15.8 / 14.5 14.2 / 8.7 22.2 / 22.4 17.4 / 23.8 17.4 / -8.7 Transportation 20.4 / 1.1 24.4 / 11.7 19.6 / -16.5 27.7 / 9.0 23.3 / 10.3 25.4 / 19.4 26.0 / 33.5 30.3 / -7.3 Business to Business 31.4 / 22.9 16.2 / 7.4 21.5 / -9.4 14.2 / 12.7 14.9 / 11.2 16.2 / 13.1 10.6 / 26.0 11.1 / -0.4 Misc/Other 3.9 / -19.0 11.1 / 4.1 11.8 / -13.1 14.5 / 10.3 11.3 / 3.5 10.0 / 8.4 13.4 / 20.8 15.6 / -16.6 Total 100.0 / 18.0 100.0 / 9.9 100.0 / -9.7 100.0 / 10.8 100.0 / 7.7 100.0 / 16.0 100.0 / 29.0 100.0 / -14.4 Palo Alto California
Statewide S.F. Bay Area Sacramento
Valley Central Valley South Coast Inland Empire North Coast Largest Segment Leasing Restaurants Restaurants Auto Sales - New
Miscellaneous
Retail Restaurants Miscellaneous
Retail Service Stations
% of Total / % Change 20.5 / 24.4 14.1 / 23.2 14.9 / 12.7 11.3 / 2.2 13.2 / 18.9 16.0 / 29.4 15.7 / 59.7 11.9 / 19.2 2nd Largest Segment Auto Sales -
New
Auto Sales -
New
Miscellaneous
Retail Restaurants Department
Stores
Auto Sales -
New
Auto Sales -
New Restaurants
% of Total / % Change 16.1 / -5.7 11.4 / 4.1 9.8 / -11.7 10.7 / 19.3 11.0 / 4.2 12.8 / 14.6 11.0 / 20.3 11.0 / -5.3 3rd Largest Segment Restaurants Miscellaneous
Retail
Auto Sales -
New
Miscellaneous
Retail Restaurants Department
Stores Restaurants Auto Sales -
New
% of Total / % Change 14.6 / 45.4 9.5 / 17.0 9.3 / -26.7 10.4 / 21.8 9.3 / 10.2 8.1 / 13.2 10.6 / 28.1 10.9 / -23.7 BENCHMARK YEAR 2022Q3 COMPARED TO BENCHMARK YEAR 2021Q3
CITY OF PALO ALTO
ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 3rd Quarter 2022 ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 3rd Quarter 2022 Regional Overview Chart (Economic)
Gross Historical Sales Tax Cash Receipts by Benchmark Year and Quarter (Before Adjustments)
Item 14
Attachment A - City of
Palo Alto Q3 2022 Sales
Tax Digest Summary
Item 14: Staff Report
Pg.
3 Packet Pg. 373 of 384
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 3 Anderson Honda Magnussen's Toyota of Palo Alto Tesla
Apple Stores Neiman Marcus Tesla Lease Trust
Arco AM/PM Mini Marts Nordstrom Department Store Tiffany & Company Audi Palo Alto Richemont Union 76 Service Stations
Bloomingdale's Rivian Automotive Valero Service Stations Hermes Shell Service Stations Varian Medical Systems
HP Enterprise Services Shreve & Co. Volvo Cars Palo Alto Louis Vuitton Stanford Health Care Wilkes Bashford
Macy's Department Store
Leasing
20.6%
Auto Sales - New
16.1%
Restaurants
14.7%
Apparel Stores
6.8%Department Stores
6.4%
Office Equipment
6.0%
All Other
29.4%
Net Pools & Adjustments
21.4%
Net Cash Receipts for Benchmark Year third Quarter 2022: $33,450,131
*Benchmark year (BMY) is the sum of the current and 3 previous quarters (2022Q3 BMY is sum of 2022 Q3, 2022 Q2, 2022 Q1, 2021 Q4)
TOP 25 SALES/USE TAX CONTRIBUTORS
The following list identifies Palo Alto’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order and represents th e year ended third quarter of 2022. The Top 25 Sales/Use Tax contributors generate
60.6% of Palo Alto’s total sales and use tax revenue.
Item 14
Attachment A - City of
Palo Alto Q3 2022 Sales
Tax Digest Summary
Item 14: Staff Report
Pg.
4 Packet Pg. 374 of 384
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 4
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Benchmark Year 2022Q3 Benchmark Year 2021Q3
Sales Tax from Largest Non-Confidential Sales Tax Segments (Economic)
Item 14
Attachment A - City of
Palo Alto Q3 2022 Sales
Tax Digest Summary
Item 14: Staff Report
Pg.
5 Packet Pg. 375 of 384
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 5
Economic Category % 2022Q3 2022Q2 2022Q1 2021Q4 2021Q3 2021Q2 2021Q1 2020Q4 2020Q3 2020Q2 2020Q1 Business To Business 25.3% 2,194,817 2,095,020 2,031,199 2,136,501 1,689,561 1,559,814 1,700,725 1,937,072 1,909,078 1,851,601 2,000,210 Miscellaneous/Other 18.4% 1,597,816 1,724,861 1,701,538 1,687,189 1,812,731 1,743,358 1,558,859 1,777,635 1,480,228 997,005 1,227,541 General Retail 20.7% 1,802,777 1,920,316 1,639,417 2,282,253 1,687,461 1,740,666 1,153,240 1,608,823 1,143,497 660,300 1,450,820 Food Products 14.2% 1,230,824 1,227,240 1,018,577 1,083,309 999,729 912,939 635,705 674,469 651,271 439,540 990,266 Subtotal Economic (Local Business) 78.6% 6,826,234 6,967,438 6,390,731 7,189,252 6,189,482 5,956,778 5,048,529 5,997,999 5,184,075 3,948,447 5,668,837 Net Pools & Adjustments 21.4% 1,862,181 686,044 1,721,924 1,806,328 584,508 1,513,663 1,741,273 1,343,184 1,339,250 1,877,921 -2,287 Total Cash Receipts 100.0% 8,688,414 7,653,481 8,112,655 8,995,580 6,773,990 7,470,441 6,789,802 7,341,183 6,523,324 5,826,368 5,666,550 Economic Segment % 2022Q3 2022Q2 2022Q1 2021Q4 2021Q3 2021Q2 2021Q1 2020Q4 2020Q3 2020Q2 2020Q1 Miscellaneous/Other 47.0% 4,087,158 4,008,008 3,949,786 3,969,954 3,752,178 3,570,610 3,406,995 3,982,753 3,567,251 3,181,367 3,551,274 Restaurants 12.7% 1,102,248 1,093,944 902,707 947,771 884,911 799,544 540,244 557,662 546,924 342,533 867,027 Miscellaneous Retail 4.4% 381,616 479,710 432,956 679,381 412,016 514,516 338,032 489,417 329,678 108,953 280,493 Apparel Stores 5.0% 435,730 495,508 392,724 540,782 406,274 398,447 264,318 365,627 265,136 72,307 305,737 Department Stores 4.9% 423,601 454,349 367,144 525,295 388,703 384,763 237,522 315,453 186,316 29,842 245,948 Service Stations 2.7% 233,387 250,715 191,755 190,610 181,460 157,268 116,258 111,242 108,840 70,063 146,291 Food Markets 1.1% 99,811 104,253 91,634 108,203 90,773 89,773 74,397 89,739 81,580 77,803 102,026 Business Services 0.7% 62,683 80,950 62,025 227,256 73,169 41,858 70,763 86,107 98,350 65,579 170,042 Subtotal Economic (Local Business) 78.6% 6,826,234 6,967,438 6,390,731 7,189,252 6,189,482 5,956,778 5,048,529 5,997,999 5,184,075 3,948,447 5,668,837 Net Pools & Adjustments 21.4% 1,862,181 686,044 1,721,924 1,806,328 584,508 1,513,663 1,741,273 1,343,184 1,339,250 1,877,921 -2,287 Total Cash Receipts 100.0% 8,688,414 7,653,481 8,112,655 8,995,580 6,773,990 7,470,441 6,789,802 7,341,183 6,523,324 5,826,368 5,666,550
Historical Analysis by Calendar Quarter
The chart above shows the categories and segments in quarterly economic basis amounts. The total amount is the net cash recei pts, and it was obtained by adding up the categories/segments with the “Net Pools & Adjustments” amount.
Item 14
Attachment A - City of Palo Alto Q3
2022 Sales Tax Digest Summary
Item 14: Staff Report
Pg.
6 Packet Pg. 376 of 384
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 6
Economic Category % 2022Q3 2021Q3 2020Q3 2019Q3 2018Q3 2017Q3 2016Q3 2015Q3 2014Q3 2013Q3 Business To Business 25.8% 8,645,684 7,034,140 8,246,139 8,068,576 6,118,695 5,532,072 5,274,809 4,252,574 4,537,394 4,206,253 Miscellaneous/Other 20.0% 6,701,529 6,892,583 5,542,287 8,214,200 7,120,534 6,065,260 6,214,339 5,733,704 5,340,922 9,283,251 General Retail 22.9% 7,644,764 6,190,190 5,167,346 7,811,723 8,448,668 8,267,871 8,066,588 8,052,871 8,085,021 7,813,954 Food Products 13.6% 4,559,950 3,222,843 3,373,098 4,906,402 4,798,972 4,628,795 4,622,737 4,411,228 4,126,302 3,731,703 Subtotal Economic (Local Business) 82.4% 27,551,926 23,339,756 22,328,869 29,000,900 26,486,869 24,493,998 24,178,472 22,450,377 22,089,640 25,035,161 Net Pools & Adjustments 17.6% 5,898,205 5,035,660 5,529,280 5,926,100 5,483,467 5,053,065 4,110,537 4,197,233 3,612,493 3,626,104 Total 100.0% 33,450,131 28,375,417 27,858,150 34,927,001 31,970,337 29,547,063 28,289,009 26,647,610 25,702,133 28,661,265
Economic Segment % 2022Q3 2021Q3 2020Q3 2019Q3 2018Q3 2017Q3 2016Q3 2015Q3 2014Q3 2013Q3 Miscellaneous/Other 48.4% 16,193,179 14,859,504 14,564,155 17,223,258 14,622,219 12,786,006 12,448,262 11,026,468 11,018,397 14,405,546 Restaurants 12.1% 4,046,669 2,782,361 2,891,941 4,330,976 4,196,879 4,027,460 4,021,277 3,835,898 3,602,981 3,200,200 Miscellaneous Retail 5.9% 1,973,663 1,753,981 1,219,614 1,656,394 1,688,326 2,033,749 1,992,497 1,520,014 1,518,777 1,394,483 Apparel Stores 5.6% 1,864,744 1,434,666 1,194,705 1,959,891 1,931,586 1,721,794 1,631,712 1,656,560 1,663,440 1,617,661 Department Stores 5.3% 1,770,390 1,326,441 1,014,928 1,842,137 2,085,700 2,032,059 2,188,368 2,402,334 2,376,717 2,466,909 Service Stations 2.6% 866,467 566,228 506,276 693,868 671,528 601,794 554,825 668,928 784,615 760,477 Business Services 1.3% 432,914 271,896 550,822 845,213 808,531 788,902 832,423 839,442 670,259 723,849 Food Markets 1.2% 403,901 344,680 386,428 449,163 482,100 502,234 509,109 500,731 454,455 466,036 Subtotal Economic (Local Business) 82.4% 27,551,926 23,339,756 22,328,869 29,000,900 26,486,869 24,493,998 24,178,472 22,450,377 22,089,640 25,035,161 Net Pools & Adjustments 17.6% 5,898,205 5,035,660 5,529,280 5,926,100 5,483,467 5,053,065 4,110,537 4,197,233 3,612,493 3,626,104 Total 100.0% 33,450,131 28,375,417 27,858,150 34,927,001 31,970,337 29,547,063 28,289,009 26,647,610 25,702,133 28,661,265
Historical Analysis by Calendar BMY from 2013Q3 to 2022Q3
The chart above shows the categories and segments in benchmark year economic basis amounts. The total amount is the net cash receipts, and it was obtained by adding up the categories/segments with the “Net Pools & Adjustments” amount. Benchmark year (BMY) is the sum of the current and 3 previous quarters (2022Q3 BMY is sum of 2022 Q3, 2022 Q2, 2022 Q1, 2021 Q4).
Item 14
Attachment A - City of Palo Alto Q3
2022 Sales Tax Digest Summary
Item 14: Staff Report
Pg.
7 Packet Pg. 377 of 384
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 7
General Retail
Food Products
Transportation
Business to Business
Misc/Other
2022/3 Total
2021/3 Total
% Chg
Largest Gain
Second Largest
Gain
Largest Decline
Second Largest
Decline
Campbell 0.8% 9.2% 9.2% 7.3% 85.3% 2,704,626 2,529,056 6.9% Electronic Equipment Restaurants Light Industry Auto Sales - Used Cupertino -6.2% 17.0% 17.0% -15.7% 8.8% 8,781,311 10,037,769 -12.5% Restaurants Service Stations Office Equipment I.T. Infrastructure Gilroy 3.4% 1.0% 1.0% 29.4% -13.9% 4,487,889 4,241,838 5.8% Auto Sales - New Service Stations Misc. Vehicle Sales Auto Sales - Used Los Altos -13.7% 9.7% 9.7% 135.4% 14.1% 645,693 567,672 13.7% Electronic Equipment Restaurants Recreation Products Green Energy Los Gatos 9.8% 9.4% 9.4% 1.9% 48.5% 1,494,264 1,343,457 11.2% Restaurants Miscellaneous Other Food Processing Eqp Leasing Milpitas 8.8% 23.1% 23.1% 22.0% 107.0% 6,020,216 5,426,209 10.9% Office Equipment Restaurants Auto Sales - New Bldg.Matls-Whsle Morgan Hill 4.4% 9.4% 9.4% -9.2% -20.2% 2,604,870 2,485,592 4.8% Service Stations Restaurants Light Industry Bldg.Matls-Whsle Mountain View -4.9% 49.4% 49.4% 10.8% -44.2% 5,078,779 4,186,355 21.3% Restaurants Auto Sales - New Business Services Furniture/Appliance Palo Alto 6.8% 23.1% -13.9% 29.9% -2.5% 6,826,234 6,189,482 10.3% Office Equipment Leasing Auto Sales - New Drug Stores San Jose -0.4% 12.1% 12.1% 29.2% 0.6% 57,418,270 52,477,579 9.4% Office Equipment Restaurants Miscellaneous Retail Light Industry Santa Clara 4.0% 20.7% 20.7% 3.5% -43.9% 13,346,375 11,910,403 12.1% Auto Sales - New Office Equipment I.T. Infrastructure Electronic Equipment County of Santa Clara 9.0% 13.6% 13.6% 21.0% -8.0% 1,337,665 1,233,561 8.4% Heavy Industry Restaurants Auto Sales - Used Light Industry Saratoga 5.0% 4.4% 4.4% 58.0% 78.2% 288,400 260,603 10.7% Business Services Restaurants Food Processing Eqp Apparel Stores Sunnyvale 53.4% 20.5% 20.5% 3.8% 68.6% 7,204,543 6,137,708 17.4% Department Stores Restaurants Light Industry Business Services Quarterly Analysis by Sales Tax Category: Change from 2021Q3 to 2022Q3 (Economic)
Unlike the chart on page one which showed a ‘benchmark year’ th rough third quarter of 2022, the chart above shows a comparison of one quarter only – third quarter of 2022 to third quarter of 2021. This chart is for local ‘brick and mortar’ businesses and it excludes county pools and adjustments.
Item 14
Attachment A - City of Palo Alto Q3
2022 Sales Tax Digest Summary
Item 14: Staff Report
Pg.
8 Packet Pg. 378 of 384
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 8
California Avenue % CHANGE QoQ 2022Q3 QE 2021Q3 QE 22Q3 % OF TOTAL 21Q3 % OF TOTAL FOOD PRODUCTS 29.4% 63,121 48,765 46.9% 42.0%
GENERAL RETAIL -16.2% 29,306 34,980 21.8% 30.1%
ALL OTHER 30.3% 42,284 32,446 31.4% 27.9%
TOTAL 15.9% 134,710 116,191 100.0% 100.0%
El Camino Real and Midtown % CHANGE QoQ 2022Q3 QE 2021Q3 QE 22Q3 % OF TOTAL 21Q3 % OF TOTAL FOOD PRODUCTS 20.0% 155,044 129,204 44.8% 38.9%
GENERAL RETAIL 1.9% 36,622 35,939 10.6% 10.8%
ALL OTHER -7.5% 154,688 167,234 44.7% 50.3%
TOTAL 4.2% 346,354 332,376 100.0% 100.0%
Greater Downtown % CHANGE QoQ 2022Q3 QE 2021Q3 QE 22Q3 % OF TOTAL 21Q3 % OF TOTAL FOOD PRODUCTS 26.8% 477,597 376,707 56.5% 56.4%
GENERAL RETAIL 29.6% 302,635 233,552 35.8% 35.0%
BUSINESS TO BUSINESS 21.4% 41,811 34,442 4.9% 5.2%
CONSTRUCTION 7.1% 12,591 11,751 1.5% 1.8%
MISCELLANEOUS 10.2% 8,439 7,661 1.0% 1.1%
TRANSPORTATION -27.9% 2,852 3,957 0.3% 0.6%
TOTAL 26.6% 845,924 668,069 100.0% 100.0%
Stanford Shopping Center % CHANGE QoQ 2022Q3 QE 2021Q3 QE 22Q3 % OF TOTAL 21Q3 % OF TOTAL GENERAL RETAIL -10.8% 929,201 1,041,989 70.7% 72.1%
FOOD PRODUCTS 8.9% 146,567 134,606 11.2% 9.3%
ALL OTHER -11.1% 238,362 267,999 18.1% 18.6%
TOTAL -9.0% 1,314,130 1,444,594 100.0% 100.0%
City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2021Q3 to 2022Q3 (Economic)
Item 14
Attachment A - City of Palo Alto Q3
2022 Sales Tax Digest Summary
Item 14: Staff Report
Pg.
9 Packet Pg. 379 of 384
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 9 Town And Country Shopping Center % CHANGE QoQ 2022Q3 QE 2021Q3 QE 22Q3 % OF TOTAL 21Q3 % OF TOTAL GENERAL RETAIL 29.9% 71,170 54,803 40.2% 35.9%
ALL OTHER 7.9% 105,749 98,004 59.8% 64.1%
TOTAL 15.8% 176,919 152,807 100.0% 100.0%
All Other Geos combined with Balance of Jurisdiction % CHANGE QoQ 2022Q3 QE 2021Q3 QE 22Q3 % OF TOTAL 21Q3 % OF TOTAL BUSINESS TO BUSINESS 29.8% 2,054,495 1,583,139 35.8% 29.0% GENERAL RETAIL -10.1% 1,441,243 1,603,498 25.1% 29.4%
TRANSPORTATION -16.3% 1,112,941 1,330,405 19.4% 24.4%
FOOD PRODUCTS 23.8% 1,026,021 829,000 17.9% 15.2%
CONSTRUCTION 23.8% 56,223 45,412 1.0% 0.8%
MISCELLANEOUS -12.2% 54,741 62,346 1.0% 1.1%
TOTAL 5.4% 5,745,664 5,453,800 100.0% 100.0%
All Geo Area Totals Comparison 22Q3 & 21Q3 % CHANGE QoQ 2022Q3 QE 2021Q3 QE 22Q3 % OF TOTAL 21Q3 % OF TOTAL Balance of Jurisdiction 6.9% 2,927,627 2,739,762 51.0% 50.2% Stanford Shopping Center -9.0% 1,314,130 1,444,594 22.9% 26.5% Greater Downtown 26.6% 845,924 668,069 14.7% 12.2%
El Camino Real and Midtown 4.2% 346,354 332,376 6.0% 6.1% Town And Country Shopping Center 15.8% 176,919 152,807 3.1% 2.8% California Avenue 15.9% 134,710 116,191 2.3% 2.1%
TOTAL 5.4% 5,745,664 5,453,800 100.0% 100.0%
Palo Alto citywide QE 22Q3 & 21Q3 % CHANGE QoQ 2022Q3 QE 2021Q3 QE 22Q3 % OF TOTAL 21Q3 % OF TOTAL BUSINESS TO BUSINESS 29.9% 2,194,817 1,689,561 32.2% 27.3% GENERAL RETAIL 6.8% 1,802,777 1,687,461 26.4% 27.3%
TRANSPORTATION -13.9% 1,341,557 1,558,469 19.7% 25.2%
FOOD PRODUCTS 23.1% 1,230,824 999,729 18.0% 16.2%
MISCELLANEOUS -7.6% 187,947 203,392 2.8% 3.3%
CONSTRUCTION 34.3% 68,311 50,869 1.0% 0.8%
TOTAL 10.3% 6,826,234 6,189,482 100.0% 100.0%
City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2021Q3 to 2022Q3 (Economic) Cont.
Item 14
Attachment A - City of Palo Alto Q3
2022 Sales Tax Digest Summary
Item 14: Staff Report
Pg.
10 Packet Pg. 380 of 384
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 10
FOOD PRODUCTS,
29.4% CHANGE, $63,121 ,
46.9% TOTAL
GENERAL RETAIL, -16.2% CHANGE,
$29,306 , 21.8% TOTAL
ALL OTHER,
30.3% CHANGE, $42,284 ,
31.4% TOTAL
California Avenue 2022Q3 SALES TAX AMOUNTS
FOOD PRODUCTS, $48,765 ,
42.0% TOTAL
GENERAL RETAIL,
$34,980 , 30.1%TOTAL
ALL OTHER, $32,446 ,
27.9% TOTAL
California Avenue 2021Q3 SALES TAX AMOUNTS
FOOD PRODUCTS,
20.0% CHANGE, $155,044 ,
44.8% TOTAL
GENERAL RETAIL,
1.9% CHANGE, $36,622 ,
10.6% TOTAL
ALL OTHER,
-7.5% CHANGE,
$154,688 ,
44.7% TOTAL
El Camino Real and Midtown 2022Q3 SALES TAX AMOUNTS
FOOD PRODUCTS, $129,204 ,
38.9% TOTAL
GENERAL RETAIL,
$35,939, 10.8% TOTAL
ALL OTHER, $167,234
50.3% TOTAL
El Camino Real and Midtown 2021Q3 SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts
Item 14
Attachment A - City of Palo Alto Q3
2022 Sales Tax Digest Summary
Item 14: Staff Report
Pg.
11 Packet Pg. 381 of 384
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 11
FOOD PRODUCTS,
26.8% CHANGE, $477,597 ,
56.5% TOTAL
GENERAL RETAIL,
29.6% CHANGE,
$302,635 ,
35.8% TOTAL
BUSINESS TO BUSINESS,
21.4% CHANGE, $41,811 ,
4.9% TOTAL
CONSTRUCTION,
7.1% CHANGE, $12,591 ,
1.5% TOTAL
MISCELLANEOUS, 10.2% CHANGE,
$8,439 , 1.0% TOTAL TRANSPORTATION,
-27.9% CHANGE, $2,852 ,
0.3% TOTAL
Greater Downtown 2022Q3 SALES TAX AMOUNTS
FOOD PRODUCTS,
$376,707 , 56.4% TOTAL
GENERAL RETAIL,
$233,552 , 35.0% TOTAL
BUSINESS TO BUSINESS,
$34,442 , 5.2% TOTAL
CONSTRUCTION, $11,751 ,
1.8% TOTAL
MISCELLANEOUS,
$7,661 , 1.1% TOTAL
TRANSPORTATION, $3,957 ,
0.6% TOTAL
Greater Downtown 2021Q3 SALES TAX AMOUNTS
GENERAL RETAIL
$1,041,989 ,
72.1% TOTAL
FOOD PRODUCTS, $134,606 ,
9.3% TOTAL
ALL OTHER, $267,999 ,
18.6% TOTAL
Stanford Shopping Center 2021Q3 SALES TAX AMOUNTS
GENERAL RETAIL,
-10.8% CHANGE, $929,201 ,
70.7% TOTAL
FOOD PRODUCTS,
8.9% CHANGE,
$146,567 ,
11.2% TOTAL
ALL OTHER, -11.1% CHANGE,
$238,362 , 18.1% TOTAL
Stanford Shopping Center 2022Q3 SALES TAX AMOUNTS
City of Palo Alto Geo Areas Pie Charts
Item 14
Attachment A - City of Palo Alto Q3
2022 Sales Tax Digest Summary
Item 14: Staff Report
Pg.
12 Packet Pg. 382 of 384
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 12
GENERAL RETAIL,
29.9% CHANGE, $71,170 ,
40.2% TOTALALL OTHER,
7.9% CHANGE,
$105,749 ,
59.8% TOTAL
T own And Country Shopping Center 2022Q3 SALES TAX AMOUNTS GENERAL RETAIL, $54,803 ,
35.9% TOTAL
ALL OTHER, $98,004 ,
64.1% TOTAL
T own And Country Shopping Center2021Q3 SALES TAX AMOUNTS
BUSINESS TO BUSINESS,
29.8% CHANGE,
$2,054,495 ,
35.8% TOTAL
GENERAL RETAIL,
-10.1% CHANGE, $1,441,243,
25.1% TOTAL
TRANSPORTATION,
-16.3% CHANGE,
$1,112,941,
19.4% TOTAL
FOOD PRODUCTS,
23.8% CHANGE, $1,026,021 ,
17.9% TOTAL
CONSTRUCTION,
23.8% CHANGE, $56,223 ,
1.0% TOTAL
MISCELLANEOUS, -12.2% CHANGE,
$54,741 , 1.0% TOTAL
All Other Geos combined with Balance of Jurisdiction 2022Q3
SALES TAX AMOUNTS
BUSINESS TO BUSINESS,
$1,583,139 ,
29.0% TOTAL
GENERAL RETAIL, $1,603,498,
29.4% TOTAL
TRANSPORTATION,
$1,330,405,
24.4% TOTAL
FOOD PRODUCTS,
$829,000 , 15.2% TOTAL
CONSTRUCTION,
$45,412 , 0.8% TOTAL
MISCELLANEOUS,
$62,346 , 1.1% TOTAL
All Other Geos combined with Balance of Jurisdiction 2021Q3
SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts
Item 14
Attachment A - City of Palo Alto Q3
2022 Sales Tax Digest Summary
Item 14: Staff Report
Pg.
13 Packet Pg. 383 of 384
City of Palo Alto
www.avenuinsights.com (800) 800-8181 Page 13 Balance of Jurisdiction,
6.9% CHANGE,
$2,927,627 ,
51.0% TOTAL
Stanford Shopping Center,
-9.0% CHANGE, $1,314,130 ,
22.9% TOTAL
Greater Downtown,
26.6% CHANGE, $845,924 ,
14.7% TOTAL
El Camino Real and Midtown,
4.2% CHANGE, $346,354 ,
6.0% TOTAL
Town And Country Shopping Center,
15.8% CHANGE, $176,919 , 3.1% TOTAL California Avenue, 15.9% CHANGE, $134,710 , 2.3% TOTAL
All Geo Area Totals 2022Q3 SALES TAX AMOUNTS
Balance of Jurisdiction,
$2,739,762 , 50.2% TOTAL
Stanford Shopping Center,
$1,444,594 , 26.5% TOTAL
Greater Downtown,
$668,069 ,
12.2% TOTAL
El Camino Real and Midtown,
$332,376 , 6.1% TOTAL
Town And Country Shopping Center,
$152,807 , 2.8% TOTAL
California Avenue,
$116,191 , 2.1% TOTAL
All Geo Area Totals 2021Q3 SALES TAX AMOUNTS
BUSINESS TO BUSINESS,
29.9% CHANGE, $2,194,817 ,
32.2% TOTAL
GENERAL RETAIL,
6.8% CHANGE, $1,802,777 ,
26.4% TOTAL
TRANSPORTATION,
-13.9% CHANGE,
$1,341,557 ,
19.7% TOTAL
FOOD PRODUCTS,
23.1% CHANGE, $1,230,824 ,
18.0% TOTAL
MISCELLANEOUS, -7.6% CHANGE,
$187,947 , 2.8% TOTAL
CONSTRUCTION,
34.3% CHANGE,
$68,311 , 1.0% TOTAL
Palo Alto citywide 2022Q3 SALES TAX AMOUNTS
BUSINESS TO BUSINESS,
$1,689,561 , 27.3% TOTAL
GENERAL RETAIL,
$1,687,461 ,
27.3% TOTAL
TRANSPORTATION,
$1,558,469 ,
25.2% TOTAL
FOOD PRODUCTS,
$999,729 , 16.2% TOTAL
MISCELLANEOUS,
$203,392 , 3.3% TOTAL
CONSTRUCTION, $50,869 ,
0.8% TOTAL
Palo Alto citywide 2021Q3 SALES TAX AMOUNTS
City of Palo Alto Geo Area & Citywide Pie Charts
Item 14
Attachment A - City of Palo Alto Q3
2022 Sales Tax Digest Summary
Item 14: Staff Report
Pg.
14 Packet Pg. 384 of 384