Memorandum
City of Lawrence
Finance Department
To: Dave Corliss, City Manager
From: Ed Mullins, Finance Director
Date: July 31, 2012
Subject: Sales Tax and Franchise Fess Distributions
Sales Tax
The City of Lawrence has recently received its July sales tax distribution. The distribution is the result of retail sales from mid-May to mid-June. The distribution of $2,747,034.42 is nearly $95,000 more than the prior year distribution for the same month. It also includes $4,933.52 from the Free State Transportation Development District and $11,498.21 from the Oread District. The distribution also includes other amounts that will be paid to the Oread Tax Increment Financing District.
The 2012 budget for the total sales and use tax distribution is $30,555,461. A summary of the latest city sales/use tax distribution is shown in the table below. The total sales/use taxes for 2012 are now projected to be $31,675,000.
|
Sales/Use Tax |
Budget |
Month |
Year to Date |
% of Budget |
|
City 1% |
13,880,266 |
1,252,750 |
8,521,874 |
61.4% |
|
Infrastructure .3% |
4,164,079 |
375,825 |
2,556,562 |
61.4% |
|
Transit .2% |
2,776,053 |
250,550 |
1,704,374 |
61.4% |
|
Transit Eq. .05% |
694,013 |
62,638 |
426,095 |
61.4% |
|
County 1% |
9,041,050 |
788,840 |
5,359,009 |
59.3% |
A spreadsheet showing total monthly sales tax distributions since 2001 is attached. Additional sales tax information is provided in the tables and graphs below.
|
City of Lawrence 1.55% Sales Tax by NAICS |
|
|
|
|
|||
|
July 2012 |
July 2011 |
|
|
|
|||
|
NAICS |
Description |
Amount |
Percent |
Percent |
|
|
|
|
22 |
Utilities |
96,015.95 |
5.24% |
5.25% |
|
|
|
|
23 |
Construction |
37,336.28 |
2.04% |
1.57% |
|
|
|
|
31-33 |
Manufacturing |
38,294.73 |
2.09% |
1.40% |
|
|
|
|
42 |
Wholesale Trade |
63,836.09 |
3.48% |
3.95% |
|
|
|
|
44-49 |
Retail Trade and Transportation |
1,018,117.68 |
55.57% |
56.58% |
|
|
|
|
51-62 |
Information and Professional Services |
166,806.28 |
9.11% |
8.20% |
|
|
|
|
71-72 |
Accommodation and Food Services |
272,057.23 |
14.85% |
15.32% |
|
|
|
|
81-99 |
Services and Other |
139,528.68 |
7.62% |
7.74% |
|
|
|
|
1,831,992.92 |
100.00% |
100.00% |
|
|
|
|
City of Lawrence |
|||||||||
|
Monthly sales/use tax budget variance |
|||||||||
|
1% City |
Over |
County |
Over |
.55% City |
Over |
||||
|
Month |
Sales/Use |
Budget |
(Under) |
Sales/Use |
Budget |
(Under) |
Sales/Use |
Budget |
(Under) |
|
January |
1,227,270 |
1,120,880 |
106,390 |
767,058 |
738,586 |
28,472 |
674,998 |
616,483 |
58,515 |
|
February |
1,312,285 |
1,250,569 |
61,716 |
824,375 |
805,642 |
18,733 |
721,757 |
687,813 |
33,944 |
|
March |
1,249,033 |
1,187,463 |
61,570 |
788,033 |
774,126 |
13,877 |
686,967 |
653,105 |
33,862 |
|
April |
1,045,992 |
948,084 |
97,908 |
657,139 |
617,929 |
39,210 |
575,296 |
521,446 |
53,850 |
|
May |
1,225,943 |
1,154,754 |
71,189 |
770,919 |
755,243 |
15,676 |
674,269 |
635,115 |
39,154 |
|
June |
1,208,601 |
1,154,946 |
53,655 |
762,675 |
746,466 |
16,209 |
664,731 |
635,220 |
29,511 |
|
July |
1,252,750 |
1,197,423 |
55,327 |
788,840 |
773,079 |
15,761 |
689,013 |
658,583 |
30,430 |
|
August |
|
1,070,212 |
|
|
704,267 |
|
|
588,617 |
|
|
September |
|
1,107,604 |
|
|
728,037 |
|
|
609,182 |
|
|
October |
|
1,246,994 |
|
|
813,318 |
|
|
685,847 |
|
|
November |
|
1,201,507 |
|
|
779,850 |
|
|
660,829 |
|
|
December |
|
1,239,830 |
|
804,508 |
|
681,907 |
|||
|
8,521,874 |
13,880,266 |
507,755 |
5,359,009 |
9,041,050 |
147,938 |
4,687,031 |
7,634,147 |
279,266 |
|
Franchise Fees
The City of Lawrence receives franchise fees for electricity, natural gas, telephone and cable television services. A table showing franchise fee revenue for the last ten years is shown in the table below.
|
|
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
|
Franchise Fees |
3,632,803 |
3,660,488 |
3,684,941 |
3,754,184 |
3,986,982 |
4,784,605 |
5,543,194 |
5,872,925 |
6,364,990 |
6,342,124 |
A table showing 2012 franchise fee revenue by utility as a percent of budget is shown in the table below. The amount received for electricity and natural gas is seasonal with electric franchise fees higher in the summer and natural gas franchise fees higher in the winter. There is also a one month delay in the collection of the fee and the payment to the city.
|
Franchise |
2012 Budget |
Year to Date |
Percent of Budget |
|
Electric |
4,166,000 |
2,377,093 |
57.1% |
|
Natural Gas |
938,000 |
549,731 |
58.6% |
|
Telephone |
448,000 |
301,356 |
67.3% |
|
Cable Television |
848,000 |
390,704 |
46.1% |
|
Total |
6,400,000 |
3,618,884 |
56.5% |