1

Sales Tax Receipts DetailIt is important to review the sales tax detail to determine the source of the revenue. First, the following graph provides the allocation of the sales tax to the two areas: General and Public Safety or Tax Increment.

The graph also provides comparisons through the years 2007–2012 Budget. We continue to examine the history from the onset of the Great Recession through today. Clearly, our sales tax receipts surpass our lowest levels of 2008 and 2009. We have now surpassed our highest year of collections in 2008.

Two of the three types of use taxes are higher in August 2012 as compared to the same period 2011. General Use tax is the only one that is lower than last year at this time. Now that we have collections through August, we estimate General Use tax will be short of budget by at least $200,000.

However, through September Building Use tax collections had already surpassed the budget estimate by $409,000. Over $2.052 million had been collected as compared to $1.724 million in 2011 through the third quarter. Auto Use tax collections are now 76% of the total budget of $4.881 million for 2012. We expect to exceed the budget because the $3.712 million collected represents only eight months as this revenue source lags by a month.

City of Arvada Sales Tax Revenue Report

OverviewTotal sales tax collections were 7.35% above the same amount received in August of 2011. A total of $3.896 million was received this year as compared to $3.630 million in 2011. To date, our sales tax collections are now 6.04% above last year and 4.89% above our original budgeted amount. We did revise the sales tax collections to a four percent increase over 2011 as we estimated the ten-year model; thus we are now 2.89% above our revised forecast. As Page 4 illustrates, our monthly collections have been as low as 1.26% over 2011 and as high as 8.71%. At this point, a four percent increase above our original budget should be sustainable; November and December usually reflect our highest collections due to the grocery store expenses.

 $‐

 $500,000

 $1,000,000

 $1,500,000

 $2,000,000

 $2,500,000

 $3,000,000

 $3,500,000

 $4,000,000

 $4,500,000

 $5,000,000

Jan Feb Mar Apr May June Jly Aug Sept Oct Nov Dec

Total Monthly Collections

2010

2011

2012

 $‐

 $1,000,000

 $2,000,000

 $3,000,000

 $4,000,000

 $5,000,000

 $6,000,000

2012 Budget YTD 2012 YTD 2011

Total Receipts through September

General

Auto

Building

2007 2008 2009 2010 2011 2012 2012Budget

Voter‐Approved Police Sales Tax $3,532,580 $3,614,825 $3,434,660 $3,457,130 $3,591,028 $3,851,959 $3,791,136General $23,045,042 $23,584,550 $22,399,179 $22,705,520 $23,195,004 $24,552,905 $23,288,409

 $‐

 $5,000,000

 $10,000,000

 $15,000,000

 $20,000,000

 $25,000,000

 $30,000,000 Total Receipts as of September

Voter‐Approved Police Sales Tax

General

August 2012 Taxes Receipted September 2012

2

Types of BusinessesPage 5 illustrates the significant number of types of businesses we analyze. For the purposes of this summary, we combine the following areas: Restaurants/Fast Food/and Fast Food Casual; Grocery and Health Food/Specialty; and Public Utilities and Telephone. We also combine Liquor Stores, Drug Stores, Auto Care, Office Supplies and Furniture into “All Others.”

The above table includes rebates and late fees; thus, the total tax collections. Also, these numbers have been adjusted to “smooth” the collections from one major business. This business makes 13 payments, and the payment has already been made, but historically, it usually is paid in the July/August payments. Thus, these numbers do not match the Oracle receipts.

Our grocery store segment comprises 18.2% of our total collections. Through August collections and September receipts, total sales taxes are $567,742 more than the same period in 2011.

Information by LocationThe following is a compilation of area shopping centers. Page 3 of the Attachments provides additional information.

As illustrated, all areas of the City presented are increasing. Olde Town and City Center generates 30.42% of our total collections in 2012. This is up from 29.97% last year. As the detail illustrates Olde Town, while generating only 1.67% of our total collections, has actually had a 13.64% increase in sales tax generation over 2011.

Jan - Aug 2010

Jan - Aug 2011

Jan - Aug2012

% Change 2011/2012

Clothing Stores $650,526 $666,895 $666,564 -0.05%Restaurants & Fast Foods $2,911,909 $3,001,884 $3,293,632 9.72%General Department $4,787,620 $5,001,989 $5,286,441 5.69%Grocery/Health $4,553,785 $4,608,233 $5,167,975 12.34%Utilities/Telecommunications $4,395,701 $4,282,868 $4,350,241 1.57%Retail Hardware $2,024,925 $1,943,735 $2,104,240 8.26%Auto Care $1,089,529 $1,138,789 $1,190,409 4.53%Drug Stores $248,730 $267,631 $265,280 -0.88%All Others $5,775,200 $5,884,796 $6,080,083 3.32%Total $26,189,195 $26,796,820 $28,404,865 6.00%

Jan - Aug '09 Jan - Aug '10 Jan - Aug '11 Jan - Aug '12 2011/2012 % Change

2011-2012 $ Change

80th/Sheridan/Wadsworth $ 3,618,132 $ 3,119,675 $ 3,022,667 $ 3,532,668 16.87% $ 510,001 64th Eastside/Sheridan/Wadsworth $ 1,068,481 $ 1,022,690 $ 1,058,352 $ 1,079,686 2.02% $ 21,334 88th/Wadsworth $ - $ 308,365 $ 381,941 $ 485,603 27.14% $ 103,662 64th Westside/Ward/Indiana/McIntyre $ 2,945,474 $ 2,932,658 $ 3,068,328 $ 3,238,819 5.56% $ 170,491 City Center/Olde Town $ 7,732,431 $ 7,920,396 $ 8,031,709 $ 8,640,509 7.58% $ 608,800

Due to holiday shopping, November and December

generally represent the most significant tax

collections for the year in the City.

3

SummaryAfter eight months of receipts and assuming there will not be a fiscal meltdown due to external forces, the estimates to the end of the year continue to assume we will meet our budgeted estimates in every category except General Use tax. Obviously, we will have other revenues to offset the budget shortfalls in this category.

Please call with any questions.

Report Prepared By:Victoria A. RunkleFinance Director

Use TaxesThere are three types of use taxes: General, Auto and Building. The first two are collected one month in arrears. This means we have only eight months’ worth of collections. Building Use Tax is collected here at the City with the issuance of a building permit; thus the following graph provides nine months’ of information. The graph provides information for six years. As stated in the introduction, the only concern is General Use tax. We have fallen to pre-Great Recession levels. Businesses pay this tax when they are adding interior things to their buildings (shelves, etc.) or for supplies for which they have not paid tax. Generally, one would see this as an indicator of increasing business.

Jan ‐ Aug'07

Jan ‐ Aug'08

Jan ‐ Aug'09

Jan ‐ Aug'10

Jan ‐ Aug'11

Jan ‐ Aug'12

2012Budget

General $739,866 $1,080,93 $912,653 $922,981 $1,034,57 $786,597 $1,548,00Auto $3,731,88 $3,484,40 $2,933,91 $3,006,38 $3,338,75 $3,712,37 $1,643,28Bldg $1,447,81 $1,372,87 $1,381,39 $1,642,85 $1,724,53 $2,052,47 $4,881,50

 $‐ $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000

General and Auto Collections Through AugustBuilding Collections Through September

4

Gen

eral

Polic

e TI

& T

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Tota

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sTo

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2012

Act

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Bud

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2011

Act

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Budg

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Jan/

Feb

2,49

7,97

5$

44

4,04

6$

336,

177

$

3,

278,

198

3,23

7,44

4$

3,10

6,19

2$

1.26

%5.

54%

Feb/

Mar

2,45

0,45

5$

43

7,85

9$

336,

177

$

3,

224,

491

3,11

3,77

3$

3,05

8,87

0$

3.56

%5.

41%

Mar

/Apr

2,79

4,38

0$

49

2,67

9$

336,

177

$

3,

623,

235

3,48

4,93

0$

3,42

6,84

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3.97

%5.

73%

Apr/

May

2,64

9,17

5$

46

7,94

4$

336,

177

$

3,

453,

296

3,28

8,59

8$

3,30

8,17

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5.01

%4.

39%

May

/Jun

e2,

725,

489

$

479,

735

$

33

6,17

7$

3,54

1,40

13,

441,

555

$

3,

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917

$

2.

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7.03

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2,98

7,89

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52

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336,

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$

3,

846,

266

3,58

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7.43

%7.

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July

/Aug

2,72

5,56

8$

47

9,41

5$

336,

177

$

3,

541,

160

3,34

8,27

6$

3,35

3,42

8$

5.76

%5.

60%

Aug/

Sept

3,03

2,56

0$

52

8,08

2$

336,

177

$

3,

896,

818

3,58

4,64

7$

3,63

0,08

5$

8.71

%7.

35%

Sept

/Oct

03,

470,

971

$

3,

500,

400

$

O

ct/N

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3,32

1,16

6$

3,29

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Nov

/Dec

03,

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$

3,

338,

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$

D

ec/J

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4,42

1,61

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4,55

9,37

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63,4

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$2,

689,

413

$28

,404

,865

27,0

79,5

46$

26

,786

,032

$4.

89%

6.04

%

05101520253035404550

Jan/

Feb

Feb/

Mar

Mar

/Apr

Apr/M

ayM

ay/J

une

June

/Jul

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ly/Au

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2012

Act

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2012

Bud

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2011

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5

ALL

SA

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Sou

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of S

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Tota

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Clot

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%

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0000131678391

1,95

3

$-

$20

0

$40

0

$60

0

$80

0

$1,

000

$1,

200

Year-to-Date

Thousands

August 2012Thousands

Aug

-12

Aug

-11

YTD

-201

2Y

TD-2

011

6

ALL SALES TAX BY CATEGORY

Aug-12 Aug-11 % Change 2012 YTD 2011 YTD % ChangeArea Sales Tax Sales Tax Aug 12-11 Sales Tax Sales Tax YTD 12-11

64th & Indiana 70,875$ 38,881$ 82.29% 385,882$ 290,003$ 33.06%

64th & McIntyre 194,221$ 198,671$ -2.24% 1,550,180$ 1,489,033$ 4.11%

64th & Sheridan 111,176$ 114,942$ -3.28% 912,052$ 900,397$ 1.29%

64th & Wadsworth 22,495$ 19,726$ 14.04% 167,634$ 157,955$ 6.13%

64th & Ward 161,106$ 159,321$ 1.12% 1,302,757$ 1,289,292$ 1.04%

77th & Wadsworth 60,305$ 58,084$ 3.82% 480,301$ 463,183$ 3.70%

80th & Sheridan 116,914$ 117,058$ -0.12% 931,910$ 922,649$ 1.00%

80th & Wadsworth 320,344$ 264,718$ 21.01% 2,600,758$ 2,100,018$ 23.84%

88th & Wadsworth 63,678$ 60,454$ 5.33% 485,603$ 381,941$ 27.14%

City Center 1,354,900$ 1,178,195$ 15.00% 8,164,748$ 7,613,064$ 7.25%

Olde Town 58,818$ 55,888$ 5.24% 475,761$ 418,645$ 13.64%

AURA / Ralston Fields 11,525$ 10,801$ 6.71% 86,621$ 90,070$ -3.83%

AURA / Triangle 187,681$ 188,958$ -0.68% 1,538,413$ 1,496,786$ 2.78%

TOTAL 2,734,038$ 2,465,700$ 9.23% 19,082,622$ 17,613,036$ 8.26%

64th Wadsworth/Sheridan 133,671$ 134,668$ -0.74% 1,079,687$ 1,058,352$ 2.02%

80th Wadsworth/Sheridan 497,562$ 439,861$ 13.12% 4,012,968$ 3,485,850$ 15.12%

64th Ward/Indiana/McIntyre 426,202$ 396,874$ 7.39% 3,238,819$ 3,068,328$ 5.56%

7

ALL SALES TAX BY CATEGORY

Fund 01, 21, 22 YTD % OfYTD Revenue Budget 2012 YTD 2012 YTD 2011 Difference 11/12 ChangeUse Tax 1,548,000$ 786,597$ 1,034,573$ (247,975)$ -23.97%Admissions -$ 124,481$ 104,150$ 20,330$ 19.52%Auto Use 4,881,500$ 3,712,372$ 3,338,756$ 373,616$ 11.19%Building Use 1,643,286$ 2,052,474$ 1,724,538$ 327,936$ 19.02%Franchise Fee - Utility 41801 3,274,000$ 1,646,655$ 1,729,119$ (82,464)$ -4.77%Franchise Fee - Cable 41803 1,075,000$ 534,448$ 513,713$ 20,735$ 4.04%Franchise Fee - Tele. 190,000$ 132,138$ 149,397$ (17,259)$ -11.55%HUTF 3,940,000$ 2,558,490$ 2,538,592$ 19,898$ 0.78%

TOTAL 16,551,786$ 11,547,654$ 11,132,838$ 414,816$ 3.73%

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

Use Tax Admissions Auto Use Building Use Franchise Fee- Utility 41801

Franchise Fee- Cable 41803

Franchise Fee- Tele.

HUTF

YTD 2012 YTD 2011

8

Finance Department • 8001 Ralston Road • Arvada, Colorado 80002(720) 898-7120 • www.arvada.org

Contributors:

Patrick Brown, Revenue ManagerCarol Larimer, Financial Systems Analyst