Lodi sales tax revenue less than expected

On the same day some national analysts said the recession has ended, Lodi City Manager Blair King said recent sales tax revenue results took twice as much of a hit as expected.

Lodi recently received numbers for the last quarter of the fiscal year that ended June 30. The city, optimistically, had expected sales tax numbers for April through June 2009 to be 10 percent less than in 2008. However, the sales tax numbers were down more than 20 percent.

The city is still evaluating the news, King said.

"On a preliminary basis, it doesn't look good," he said. "But we don't want to jump to any actions we haven't vetted yet."

The city will have an economic consultant rerun projected sales tax for this fiscal year, which started July 1, King said.

The news also means city staff will try to be more conservative with expenditures, he said.

A large chunk of the gap between projections and actual sales tax revenue is because Plummer Automall and Geweke Chrysler Jeep Dodge dealerships closed in February. King estimated the closures resulted in a $400,000 to $500,000 annual decrease in sales tax.

King attended a Lodi Rotary Club luncheon Thursday to explain how local government works in a presentation titled "How the big Sacramento dog ate local control and won't give it back."

King explained the various revenue streams for the city and how they have been diminishing over the years because of state intervention.

Lodi sends a large portion of its revenue to Sacramento. But King said Lodi only receives one-fifth of 1 percent of the state's General Fund revenue.

Contact reporter Maggie Creamer at maggiec@lodinews.com. or read her blog at www.lodinews.com/blogs/citybuzz.

Lodi's revenue percentage decline at a glance

During a talk to the Lodi Rotary Club, City Manager Blair King cited several examples of why Lodi's percentage of revenue has decreased over the years.

Decline in property tax as percentage of the tax base:
— In 1976, property tax was 15 percent of total city revenue.
— In 1986, it was 8 percent.
— In 1996, it was 7 percent.
— In 2009, it was 4.9 percent.

Decline in sales tax base:
— One cent goes to the city of every taxable dollar, while 5 cents go to the state.

Revenue sources that have been shifted from cities over the years:
— Property tax.
— Property tax administration fees.
— Jail booking fees.
— Vehicle code fines.
— Business inventory.
— Cigarette tax.
— Alcohol beverage fees.
— Trailer coach/mobile home fees.
— Highway carrier's uniform business tax.
— Financial aid to local agencies.

Reader Feedback

t jefferson wrote on Oct 30, 2009 7:26 PM:

" socialism is expensive and you gotta send that money to Sacramento so it can be spread around. how else to you suppose they can have 1 million people on welfare in LA. Keep up the good work progressives, this problems is only going to get worse. "

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J.T.W. wrote on Oct 30, 2009 1:40 PM:

" My apology for failing to adequately proof read my submission and correct spelling errors "

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J.T.W. wrote on Oct 30, 2009 1:20 PM:

" A nice job of reporting. I am mostly on board with wtf and see City Manager Blairs' whinning about the Big Sacramento dog eating our lunch is finger pointing rather than solution directed thinking. Blair's revelation that revenue streams have been diminishing over the years because of state intervention is nothing new. The fault, if we must find it, is ourselves. I recommend, as a refresher for elders like myself and as history for the younger set, the following URL: http://www.edsource.org/iss_fin_sys_history.html. Check out Serano Priest dicission in 1976,Proposition 13 in 1979, and Gann limit in 79, and a host of other propositions.( You may have to answer a quick questionair to access the histoy page)

I agree with Assembly person Allison Huber's view that we need a constitutional convention to craft a new California Constitiution, that provides a workable state government. One that is neither a liberal or a conservative document. I acknowledge the pipe dream nature of this suggestion givin the gridlock grip that hyper partisiaism currently has around the throat of the body politic.

jtw "

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Observer wrote on Oct 30, 2009 1:16 PM:

" I predict the Ford dealership hangs in there. Hip, hip, hooray to Ford for not taking any bailout money. "

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wtf wrote on Oct 30, 2009 10:06 AM:

" Or maybe it should be called, "How the Local Dog (CC) Can't Do Any Tricks other than Those From 2006 (their last agenda)." LOL! "

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wtf wrote on Oct 30, 2009 10:04 AM:

" From the article: "The city will have an economic consultant rerun projected sales tax for this fiscal year, which started July 1...The news also means city staff will try to be more conservative with expenditures..."

Uh, isn't this any oxymoron? Lodi will hire an "economic consultant"; yet the city staff will "try" to be more conservative with expenditures?

Helloooo! Why hire yet another consultant? Are city employees so incompetent they can't perform this task?

Regarding King's talk, "How the big Sacramento dog ate local control and won't give it back." Maybe he should rename this to, "How the Local Dog (the CC) refuses to do the Bidding of His Master (the taxpayers)." "

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wtf wrote on Oct 30, 2009 10:04 AM:

" Several questionable items in this article.

"On the same day some national analysts said the recession has ended, Lodi City Manager Blair King said recent sales tax revenue results took twice as much of a hit as expected."

FYI...whenever "national anlaysts", "MSM", "experts", or "the government" say things like, "The economy's getting better," automatically INVERT that statement and know the economy is in the sh*tter. "

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T & C wrote on Oct 30, 2009 8:04 AM:

" Sales TAX REVENUE will be headed LOWER thanks to the City of Lodi "REFUSING" to add $350,000.00 to the City Bus budget! Many people rely on the city bus service to shop and dine out! Reduced service and "No Bus Service at all on Sunday, means LESS shoppers shopping in Lodi!

Note to City of Lodi: "Please don't whine about tax revenue being lower after Nov. 1st."

"You reap what you sew"! "

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joesr wrote on Oct 30, 2009 6:01 AM:

" People just are not spending gobs of money which may not help Sales Tax revenue but it sure is healthier for the people who have drastically changed their spending patterns. Lodi's last two car dealerships are pretty much doomed so get ready for more of the same and put it in your budget. The city too must learn to live with less it is actually ok once you get used to it. "

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