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HomeMy WebLinkAboutStaff Report 13441 (2021 Second Quarter)City of Palo Alto (ID # 13441) City Council Staff Report Report Type: Informational Report Meeting Date: 11/1/2021 City of Palo Alto Page 1 Title: Sales Tax Digest Summary Calendar 2021 Q2 From: City Manager Lead Department: Administrative Services DISCUSSION This report transmits information regarding the City of Palo Alto’s sales tax receipts for the second quarter (April to June) of 2021. There are two attachments to this report that provide further level of information: City of Palo Alto Sales Tax Digest Summary (Attachment A) California Legislative Update -September 2021 (Attachment B) The City’s sales tax cash receipts of $7.5 million for the second quarter (April to June 2021) is 1.7 million (28.2 percent) higher than the same quarter of the prior year (see Attachment A, chart 5). This increase includes late payment anomalies related to the state sales tax extension program to help alleviate the short term and negative economic impacts of the pandemic. After adjustments made for the non-period related payments, the overall economic quarter over quarter sales tax activity (Q2 2020 to Q2 2021) increased by 50.3 percent. It should be noted that Q2 2020 saw significant impacts from COVID -19 due to it being the first quarter after the pandemic began. For the year ending in the second quarter of 2021, cash receipts (including pools) for the City declined 5.9 percent from the prior year. In comparison, statewide increased by 12.9 percent, Northern California increased by 13.0 percent, and Southern California by 12.8 percent. After adjustments for non-period related payments, the overall economic sales tax activity local business excluding pools) in Palo Alto for the year decreased by 8.5 percent. After adjustments, the economic sales tax activity for the state decreased 3.7 percent, increased 0.8 percent in Northern California and decreased 6.6 percent in Southern California. While reviewing the second quarter figures, it is important to recognize that the state of California offered small businesses a 90-day extension to pay their first quarter of 2020 taxes 16 Packet Pg. 389 City of Palo Alto Page 2 due to the economic impact of the pandemic. This resulted in some businesses paying their first quarter economic payments in the second quarter. Attachments: Attachment16.a: Attachment A City of Palo Alto 2021 Q2 Digest Attachment16.b: Attachment B California Legislative Update,September 2021 16 Packet Pg. 390 City of Palo Alto Sales Tax Digest Summary Collections through August 2021 Sales April through June 2021 (2021Q2) www.avenuinsights.com (800)800-8181 Page 1 California Overview For the year ending in second quarter 2021, cash receipts increased 12.9% statewide, 13.0% in Northern California and 12.8% in Southern California. However, when adjusted for non-period related payments, the overall economic sales tax activity for the year ending in second quarter 2021 decreased by -3.7% statewide, down -6.6% in Southern California, and up 0.8% in Northern California. City of Palo Alto For the year ending in the second quarter of 2021, sales tax cash receipts for the city declined -5.9% 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 second quarter 2021 decreased by -8.5%. On a quarterly basis, sales tax cash receipts increased by 28.2% from Quarter 2 2020 to Quarter 2 2021. However, this increase includes late payment anomalies related to a state sales tax extension program see note below). The period’s cash receipts include tax from business activity during the period, payments for prior periods and other cash adjustments. When adjusted for non-period related payments, the overall economic quarter over quarter sales tax activity (Q2 2020 to Q2 2021) in Palo Alto increased by 50.3%. Note: It is important to recognize that the state offered small businesses a 90-day extension to pay their first quarter of 2020 taxes (to alleviate some of the short-term economic difficulties of the pandemic), and some businesses had partial or no payments for the first quarter of 2020. As a result of this extension program, some payments for first quarter economic activity were paid in the second quarter of 2020. While Palo Alto experienced a 26.6% cash decrease for the first quarter of 2020 (from Q1 2019), this includes late payment decreases related to the state 90-day extension program, actual first quarter of 2020 economic activity did not decline to this extent. 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 2020 through second quarter of 2021 compared to third quarter of 2019 through second quarter of 2020 (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. Attachment A 16.a Packet Pg. 391 City of Palo Alto www.avenuinsights.com (800)800-8181 Page 2 of Total / % Change Palo Alto California Statewide S.F. Bay Area Sacramento Valley Central Valley South Coast Inland Empire North Coast Central Coast General Retail 27.2 / -13.9 28.4 / 3.0 26.8 / 2.9 26.8 / 15.7 37.3 / 27.9 27.1 / 6.3 30.5 / -34.0 30.5 / 14.2 28.7 / -12.6 Food Products 12.6 / -27.1 18.5 / -14.0 17.5 / -21.4 15.4 / -1.2 13.7 / -7.5 20.4 / -6.6 17.9 / -40.9 15.8 / -22.4 30.0 / -25.5 Transportation 22.8 / 2.8 23.8 / -0.8 21.6 / 1.4 28.6 / 12.9 21.5 / -5.5 24.4 / 9.7 25.2 / -41.7 27.8 / 8.1 23.3 / -16.1 Business to Business 33.3 / -8.6 17.1 / -8.0 21.5 / -0.8 14.4 / 4.0 15.4 / -3.2 16.9 / -0.8 11.2 / -59.9 9.0 / 3.2 8.2 / -35.1 Misc/Other 4.2 / 124.3 12.2 / 0.5 12.6 / 2.7 14.8 / 12.4 12.1 / 3.5 11.2 / 10.6 15.2 / -36.6 16.9 / 9.0 9.8 / -18.8 Total 100.0 / -8.5 100.0 / -3.7 100.0 / -3.4 100.0 / 9.8 100.0 / 6.0 100.0 / 3.4 100.0 / -41.7 100.0 / 3.1 100.0 / -20.4 Palo Alto California Statewide S.F. Bay Area Sacramento Valley Central Valley South Coast Inland Empire North Coast Central Coast Largest Segment Auto Sales - New Auto Sales - New Auto Sales - New Auto Sales - New Department Stores Restaurants Auto Sales - New Auto Sales - New Restaurants of Total / % Change 19.4 / 5.1 12.4 / 13.3 12.3 / 15 13 / 23.8 11.3 / -1.9 13.6 / -11.6 12.2 / -27.7 12.4 / 22.4 20 / -27.6 2nd Largest Segment Leasing Restaurants Restaurants Department Stores Miscellaneous Retail Auto Sales - New Miscellaneous Retail Department Stores Auto Sales - New of Total / % Change 18.6 / 23.8 11.9 / -18.7 11 / -27.9 10 / 4.7 11.1 / 114.2 13.2 / 25 11.1 / -12.3 12 / 9.5 14 / -2.2 3rd Largest Segment Restaurants Department Stores Miscellaneous Retail Restaurants Furniture/ Appliance Department Stores Restaurants Bldg.Matls- Retail Miscellaneous Retail of Total / % Change 10.7 / -28.9 8.7 / -6.5 10.1 / 16.4 9.7 / -4 8.9 / 29.5 8.6 / 3.2 10.4 / -44.3 10.2 / 15.1 8.6 / -14.4 ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 2nd Quarter 2021 ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 2nd Quarter 2021 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 Quarterly Benchmark Year Regional Overview Chart (Economic) Gross Historical Sales Tax Cash Receipts by Benchmark Year and Quarter (Before Adjustments) Chart 2 Chart 1 Attachment A 16.a Packet Pg. 392 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 3 Auto Sales -New 19.5% Restaurants 10.8% Leasing 18.6% Office Equipment 8.2% Furniture/Appliance 4.4% Department Stores 5.0% All Other 33.5% Net Pools & Adjustments 25.5% Anderson Honda HP Computing & Printing Apple Stores Louis Vuitton Atila Biosystems Lucile Packard Children's Hospital Audi Palo Alto Macy's Department Store Bloomingdale's Magnussen's Toyota of Palo Alto Dell Marketing Neiman Marcus Enclos Corp.Nordstrom Hengehold Trucks Richemont Hermes Varian Medical Systems Volvo Cars Palo Alto Shell Service Stations Shreve & Co. Stanford Outpatient Pharm. Tesla Tesla Lease Trust Tiffany & Company Net Cash Receipts for Benchmark Year Second Quarter 2021: $28,124,751 Benchmark year (BMY) is the sum of the current and 3 previous quarters (2021Q2 BMY is sum of 2021 Q2, 2021 Q1, 2020 Q4, 2020 Q3) 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 the year ended second quarter of 2021. The Top 25 Sales/Use Tax contributors generate 62.3% of Palo Alto’s total sales and use tax revenue. Attachment A Chart 3 16.a Packet Pg. 393 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 4 500,000 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 Benchmark Year 2021Q2 Benchmark Year 2020Q2 Sales Tax from Largest Non-Confidential Sales Tax Segments (Economic) AttachmentAChart416.a Packet Pg. 394 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 5 Economic Category % 2021Q2 2021Q1 2020Q4 2020Q3 2020Q2 2020Q1 2019Q4 2019Q3 2019Q2 2019Q1 2018Q4 Business To Business 21.9% 1,638,092 1,803,993 1,948,294 2,027,964 1,870,893 2,010,844 2,381,737 1,950,735 1,958,684 2,244,140 1,910,168 Miscellaneous/Other 21.4% 1,602,297 1,424,075 1,650,242 1,321,778 990,334 1,225,410 1,692,985 1,516,049 1,784,443 1,464,631 2,497,498 General Retail 24.1% 1,803,297 1,259,993 1,709,004 1,298,977 657,723 1,449,509 2,573,066 2,415,683 1,993,189 1,887,330 2,559,140 Food Products 12.0% 897,222 621,710 721,698 647,289 434,446 976,479 1,244,954 1,203,802 1,267,934 1,176,607 1,240,898 Subtotal Economic (Local Business)79.5% 5,940,907 5,109,771 6,029,238 5,296,007 3,953,397 5,662,242 7,892,743 7,086,269 7,004,251 6,772,708 8,207,703 Net Pools & Adjustments 20.5% 1,529,534 1,680,031 1,311,945 1,227,317 1,872,972 4,307 1,949,165 1,471,130 1,742,411 942,447 1,700,082 Total Cash Receipts 100.0% 7,470,441 6,789,802 7,341,183 6,523,324 5,826,368 5,666,550 9,841,908 8,557,399 8,746,661 7,715,155 9,907,785 Economic Segment % 2021Q2 2021Q1 2020Q4 2020Q3 2020Q2 2020Q1 2019Q4 2019Q3 2019Q2 2019Q1 2018Q4 Miscellaneous/Other 48.5% 3,621,968 3,491,725 4,014,369 3,687,523 3,192,638 3,556,542 4,675,922 4,323,203 4,044,470 4,097,682 4,842,499 Restaurants 10.5% 785,086 529,770 600,427 543,111 339,414 853,240 1,095,153 1,072,082 1,122,871 1,041,119 1,079,230 Miscellaneous Retail 6.1% 456,685 329,448 456,914 325,380 107,313 279,945 500,221 384,381 392,196 333,960 544,739 Apparel Stores 5.3% 395,779 263,259 365,837 263,940 72,307 305,736 552,734 469,447 486,790 408,476 599,685 Department Stores 5.2% 384,763 237,522 315,453 186,208 29,823 245,862 552,822 431,508 453,439 356,943 599,796 Service Stations 2.0% 152,565 117,648 127,467 108,840 70,063 146,282 181,063 175,309 185,969 159,032 173,915 Food Markets 1.2% 89,669 71,860 91,881 81,580 76,039 102,026 118,952 104,192 113,153 106,194 124,138 Business Services 0.7% 54,393 68,539 56,890 99,426 65,799 172,609 215,876 126,148 205,363 269,302 243,701 Subtotal Economic (Local Business)79.5% 5,940,907 5,109,771 6,029,238 5,296,007 3,953,397 5,662,242 7,892,743 7,086,269 7,004,251 6,772,708 8,207,703 Net Pools & Adjustments 20.5% 1,529,534 1,680,031 1,311,945 1,227,317 1,872,972 4,307 1,949,165 1,471,130 1,742,411 942,447 1,700,082 Total Cash Receipts 100.0% 7,470,441 6,789,802 7,341,183 6,523,324 5,826,368 5,666,550 9,841,908 8,557,399 8,746,661 7,715,155 9,907,785 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 receipts, and it was obtained by adding up the categories/segments with the “Net Pools & Adjustments” amount. Chart 5 AttachmentA16.a Packet Pg. 395 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 6 Economic Category % 2021Q2 2020Q2 2019Q2 2018Q2 2017Q2 2016Q2 2015Q2 2014Q2 2013Q2 2012Q2 Business To Business 26.6% 7,485,938 8,193,739 7,496,054 6,707,627 5,418,731 5,120,759 4,034,581 4,713,800 4,125,561 4,549,848 Miscellaneous/Other 21.3% 6,071,341 5,410,009 7,996,503 6,336,544 6,023,496 5,828,635 5,526,056 5,279,967 9,063,573 3,489,764 General Retail 21.7% 6,113,299 7,106,633 8,543,599 8,381,689 8,508,010 8,180,392 8,079,780 8,106,060 7,807,453 7,782,563 Food Products 10.1% 2,835,515 3,891,336 4,885,701 4,776,697 4,596,100 4,609,460 4,323,122 4,035,894 3,659,741 3,380,211 Subtotal Economic (Local Business)79.7% 22,506,094 24,601,717 28,921,857 26,202,557 24,546,336 23,739,246 21,963,538 22,135,721 24,656,329 19,202,386 Net Pools & Adjustments 20.3% 5,618,657 5,290,508 7,167,972 3,517,465 4,313,668 4,407,390 4,034,611 3,441,331 3,335,946 2,710,652 Total 100.0% 28,124,751 29,892,225 36,089,829 29,720,022 28,860,004 28,146,636 25,998,149 25,577,052 27,992,275 21,913,038 Economic Segment % 2021Q2 2020Q2 2019Q2 2018Q2 2017Q2 2016Q2 2015Q2 2014Q2 2013Q2 2012Q2 Miscellaneous/Other 52.9% 14,975,418 15,725,284 17,028,634 14,508,286 12,802,455 12,024,028 10,653,521 11,130,513 14,157,426 9,068,967 Restaurants 8.6% 2,410,193 3,388,800 4,304,101 4,166,128 3,993,417 4,010,073 3,761,655 3,516,294 3,126,823 2,877,248 Miscellaneous Retail 5.7% 1,590,233 1,273,539 1,639,505 1,676,488 2,137,729 1,885,952 1,506,384 1,497,498 1,354,304 1,278,762 Apparel Stores 4.6% 1,282,785 1,400,225 2,004,839 1,835,953 1,692,171 1,627,846 1,655,700 1,660,948 1,626,393 1,569,384 Department Stores 4.0% 1,124,004 1,260,329 1,885,556 2,068,624 2,065,427 2,250,100 2,397,566 2,403,841 2,475,567 2,442,573 Service Stations 1.7% 488,904 572,745 698,559 651,979 587,986 581,619 699,331 776,593 764,774 723,149 Food Markets 1.2% 331,966 402,973 452,977 498,697 504,997 509,177 489,468 449,881 470,528 446,376 Business Services 1.1% 302,590 577,822 907,685 796,402 762,154 850,451 799,913 700,153 680,514 795,927 Subtotal Economic (Local Business)79.7% 22,506,094 24,601,717 28,921,857 26,202,557 24,546,336 23,739,246 21,963,538 22,135,721 24,656,329 19,202,386 Net Pools & Adjustments 20.3% 5,618,657 5,290,508 7,167,972 3,517,465 4,313,668 4,407,390 4,034,611 3,441,331 3,335,946 2,710,652 Total 100.0% 28,124,751 29,892,225 36,089,829 29,720,022 28,860,004 28,146,636 25,998,149 25,577,052 27,992,275 21,913,038 Historical Analysis by Calendar BMY from 2012Q2 to 2021Q2 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 2021Q2 BMY is sum of 2021 Q2, 2021 Q1, 2020 Q4, 2020 Q3). Chart 6 Attachment A 16.a Packet Pg. 396 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 7 Ge n e r a l R e t a i l F o o d P r o d u c t s Tr a n s p o r t a t i o n Bu s i n e s s t o B u s i n e s s M i s c O t h e r 20 2 1 2 T o t a l 20 2 0 2 T o t a l C h g La r g e s t G a i n Se c o n d L a r g e s t Ga i n La r g e s t D e c l i n e Se c o n d L a r g e s t De c l i n e Campbell -3.2% -4.7% -4.0% -17.1% -4.4% 1,486,197 1,552,216 -4.3%Bldg.Matls-Retail Miscellaneous Retail Florist/Nursery Office Equipment Cupertino 87.2% 81.8% 65.7% -8.6% 71.1% 8,697,680 8,910,939 -2.4%Restaurants Miscellaneous Retail Office Equipment Recreation Products Gilroy 102.3% 40.4% 74.6% 43.8% 71.1% 4,180,592 2,554,657 63.6%Apparel Stores Auto Sales - New Bldg.Matls-Retail Heavy Industry Los Altos 58.5% 30.4% 99.9% -52.1% 94.6% 516,580 401,341 28.7%Restaurants Service Stations Business Services Food Markets Los Gatos 93.0% 31.6% 75.2% 13.0% 15.3% 1,347,562 996,408 35.2%Restaurants Auto Sales - New Miscellaneous Other Food Processing Eqp Milpitas 111.5% 23.2% -5.2% -14.6% -6.1% 3,843,394 3,605,023 6.6%Apparel Stores Restaurants Office Equipment Electronic Equipment Morgan Hill 36.6% 43.3% 63.3% -15.3% 61.5% 2,420,733 1,776,518 36.3%Auto Sales - New Restaurants Light Industry Electronic Equipment Mountain View 36.5% 29.7% 79.3% 23.3% 74.0% 3,804,307 2,881,560 32.0%Restaurants Auto Sales - New Office Equipment Bldg.Matls-Whsle Palo Alto 173.1% 104.1% 65.8% -12.7% 70.6% 5,940,907 3,948,447 50.7%Auto Sales - New Restaurants Office Equipment Drug Stores San Jose 22.5% 45.9% 70.3% 31.3% 68.9% 52,315,286 38,930,614 34.4%Auto Sales - New Restaurants Drug Stores Closed Acct-Adjustmt Santa Clara 84.5% 58.7% 80.3% 11.9% 78.3% 11,330,428 8,611,022 31.6%Auto Sales - New Light Industry Office Equipment Leasing County of Santa Clara 69.9% 87.2% -7.3% 26.5% 13.0% 1,057,424 714,434 48.0%Food Processing Eqp Restaurants Misc. Vehicle Sales Heavy Industry Saratoga 67.8% 78.3% 85.8% 184.3% 72.4% 251,729 141,732 77.6%Restaurants Service Stations Bldg.Matls-Retail Health & Government Sunnyvale 64.8% 25.1% 68.0% 7.2% 67.9% 5,580,181 4,228,420 32.0%Auto Sales - New Light Industry Office Equipment Misc. Vehicle Sales Quarterly Analysis by Sales Tax Category: Change from 2020Q2 to 2021Q2 (Economic) Unlike the chart on page one which showed a ‘benchmark year’ through second quarter of 2021, the chart above shows a comparison of one quarter only – second quarter of 2021 to second quarter of 2020. This chart is for local ‘brick and mortar’ businesses and it excludes county pools and adjustments. Chart 7 AttachmentA16.a Packet Pg. 397 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 8 California Avenue % CHANGE QoQ 2021Q2 QE 2020Q2 QE 21Q2 % OF TOTAL 20Q2 % OF TOTAL FOOD PRODUCTS 105.4% 40,916 19,916 41.4%29.8% GENERAL RETAIL 15.3% 32,184 27,919 32.6%41.8% ALL OTHER 34.7% 25,616 19,018 25.9%28.4% TOTAL 47.7% 98,716 66,853 100.0% 100.0% El Camino Real and Midtown % CHANGE QoQ 2021Q2 QE 2020Q2 QE 21Q2 % OF TOTAL 20Q2 % OF TOTAL FOOD PRODUCTS 106.1% 84,335 40,927 12.4%12.9% GENERAL RETAIL 52.7% 21,587 14,138 3.2%4.4% ALL OTHER 117.4% 571,950 263,119 84.4%82.7% TOTAL 113.0% 677,872 318,184 100.0% 100.0% Greater Downtown % CHANGE QoQ 2021Q2 QE 2020Q2 QE 21Q2 % OF TOTAL 20Q2 % OF TOTAL FOOD PRODUCTS 154.4% 338,681 133,138 55.3%48.6% GENERAL RETAIL 133.0% 217,238 93,221 35.5%34.0% BUSINESS TO BUSINESS 9.4% 32,034 29,278 5.2%10.7% CONSTRUCTION 12.3% 12,598 11,220 2.1%4.1% MISCELLANEOUS 54.2% 7,821 5,071 1.3%1.9% TRANSPORTATION 74.2% 3,723 2,138 0.6%0.8% TOTAL 123.3% 612,095 274,066 100.0% 100.0% Stanford Shopping Center % CHANGE QoQ 2021Q2 QE 2020Q2 QE 21Q2 % OF TOTAL 20Q2 % OF TOTAL GENERAL RETAIL 605.3% 1,041,136 147,624 72.3%39.2% FOOD PRODUCTS 120.7% 128,990 58,457 9.0%15.5% ALL OTHER 58.5% 270,116 170,410 18.8%45.3% TOTAL 282.5% 1,440,242 376,491 100.0% 100.0% City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2020Q2 to 2021Q2 (Economic) Chart 8 Attachment A 16.a Packet Pg. 398 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 9 Town And Country Shopping Center % CHANGE QoQ 2021Q2 QE 2020Q2 QE 21Q2 % OF TOTAL 20Q2 % OF TOTAL GENERAL RETAIL 240.6% 56,352 16,544 38.4%30.7% ALL OTHER 142.8% 90,521 37,283 61.6%69.3% TOTAL 172.9% 146,873 53,827 100.0% 100.0% All Other Geos combined with Balance of Jurisdiction % CHANGE QoQ 2021Q2 QE 2020Q2 QE 21Q2 % OF TOTAL 20Q2 % OF TOTAL GENERAL RETAIL 160.1% 1,584,518 609,210 30.3%18.2% BUSINESS TO BUSINESS -12.6% 1,506,551 1,723,722 28.8%51.5% TRANSPORTATION 111.7% 1,253,451 592,186 23.9%17.7% FOOD PRODUCTS 112.3% 743,378 350,150 14.2%10.5% MISCELLANEOUS 154.6% 111,889 43,940 2.1%1.3% CONSTRUCTION 26.5% 37,522 29,669 0.7%0.9% TOTAL 56.4% 5,237,309 3,348,878 100.0% 100.0% All Geo Area Totals Comparison 21Q2 & 20Q2 % CHANGE QoQ 2021Q2 QE 2020Q2 QE 21Q2 % OF TOTAL 20Q2 % OF TOTAL Balance of Jurisdiction 0.1% 2,261,511 2,259,458 43.2%67.5% Stanford Shopping Center 282.5% 1,440,242 376,491 27.5%11.2% El Camino Real and Midtown 113.0% 677,872 318,184 12.9%9.5% Greater Downtown 123.3% 612,095 274,066 11.7%8.2% Town And Country Shopping Center 172.9% 146,873 53,827 2.8%1.6% California Avenue 47.7% 98,716 66,853 1.9%2.0% TOTAL 56.4% 5,237,309 3,348,878 100.0% 100.0% Palo Alto citywide QE 21Q2 & 20Q2 % CHANGE QoQ 2021Q2 QE 2020Q2 QE 21Q2 % OF TOTAL 20Q2 % OF TOTAL GENERAL RETAIL 173.1% 1,803,297 660,300 30.4%16.7% BUSINESS TO BUSINESS -12.7% 1,638,092 1,875,641 27.6%47.6% TRANSPORTATION 65.8% 1,420,886 856,748 23.9%21.7% FOOD PRODUCTS 104.1% 897,222 439,540 15.1%11.1% MISCELLANEOUS 104.7% 139,571 68,176 2.3%1.7% CONSTRUCTION -2.6% 41,840 42,941 0.7%1.1% TOTAL 50.7% 5,940,907 3,943,347 100.0% 100.0% City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2020Q2 to 2021Q2 (Economic) Cont. Chart 9 AttachmentA16.a Packet Pg. 399 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 10 FOOD PRODUCTS, 105.4% CHANGE, $40,916 , 41.4% TOTAL GENERAL RETAIL, 15.3% CHANGE, 32,184 , 32.6% TOTAL ALL OTHER, 34.7% CHANGE, $25,616 , 25.9% TOTAL California Avenue 2021Q2 SALES TAX AMOUNTS FOOD PRODUCTS, $19,916 , 29.8%TOTAL GENERAL RETAIL, 27,919 , 41.8%TOTAL ALL OTHER, $19,018 , 28.4%TOTAL California Avenue 2020Q2 SALES TAX AMOUNTS FOOD PRODUCTS, 106.1%CHANGE, $84,335 , 12.4%TOTAL GENERAL RETAIL, 52.7% CHANGE, $21,587 , 3.2%TOTAL ALL OTHER, 117.4% CHANGE, 571,950 , 84.4%TOTAL El Camino Real and Midtown 2021Q2 SALES TAX AMOUNTS FOOD PRODUCTS, $40,927 , 12.9%TOTAL GENERAL RETAIL, 14,138, 4.4%TOTAL ALL OTHER, $263,119, 82.7%TOTAL El Camino Real and Midtown 2020Q2 SALES TAX AMOUNTS City of Palo Alto Geo Area Pie Charts Chart 10 AttachmentA16.a Packet Pg. 400 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 11 FOOD PRODUCTS, 154.4%CHANGE, $338,681 , 55.3%TOTAL GENERAL RETAIL, 133.0% CHANGE, 217,238 , 35.5%TOTAL BUSINESS TO BUSINESS, 9.4% CHANGE, $32,034 , 5.2%TOTAL CONSTRUCTION , 12.3% CHANGE, $12,598 , 2.1%TOTAL MISCELLANEOUS, 54.2% CHANGE, 7,821 , 1.3%TOTAL TRANSPORTATION, 74.2% CHANGE, 3,723 , 0.6%TOTAL Greater Downtown 2021Q2 SALES TAX AMOUNTS FOOD PRODUCTS, 133,138 , 48.6%TOTAL GENERAL RETAIL, 93,221 , 34.0%TOTAL BUSINESS TO BUSINESS, 29,278 , 10.7%TOTAL CONSTRUCTION, $11,220 , 4.1%TOTAL MISCELLANEOUS, 5,071 , 1.9%TOTAL TRANSPORTATION, $2,138 , 0.8%TOTAL Greater Downtown 2020Q2 SALES TAX AMOUNTS GENERAL RETAIL 147,624 , 39.2%TOTAL FOOD PRODUCTS, $58,457 , 15.5%TOTAL ALL OTHER, $170,410 , 45.3%TOTAL Stanford Shopping Center 2020Q2 SALES TAX AMOUNTS GENERAL RETAIL, 605.3% CHANGE, 1,041,136 , 72.3%TOTAL FOOD PRODUCTS, 120.7% CHANGE, 128,990 , 9.0%TOTAL ALL OTHER, 58.5% CHANGE, 270,116 , 18.8%TOTAL Stanford Shopping Center 2021Q2 SALES TAX AMOUNTS City of Palo Alto Geo Areas Pie Charts Char 11 AttachmentA16.a Packet Pg. 401 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 12 GENERAL RETAIL, 240.6%CHANGE, $56,352 , 38.4%TOTAL ALL OTHER, 142.8% CHANGE, 90,521 , 61.6%TOTAL Town And Country Shopping Center 2021Q2 SALES TAX AMOUNTS GENERAL RETAIL, $16,544 , 30.7%TOTAL ALL OTHER, $37,283 , 69.3%TOTAL Town And Country Shopping Center 2020Q2 SALES TAX AMOUNTS GENERAL RETAIL, 160.1%CHANGE, 1,584,518 , 30.3%TOTAL BUSINESS TO BUSINESS, 12.6% CHANGE, $1,506,551, 28.8% TOTAL TRANSPORTATION, 111.7% CHANGE, 1,253,451, 23.9% TOTAL FOOD PRODUCTS, 112.3% CHANGE, $743,378 , 14.2%TOTAL MISCELLANEOUS, 154.6% CHANGE, 111,889 , 2.1%TOTAL CONSTRUCTION, 26.5% CHANGE, 37,522 , 0.7%TOTAL All Other Geos combined with Balance of Jurisdiction 2021Q2 SALES TAX AMOUNTS GENERAL RETAIL, 609,210 , 18.2%TOTAL BUSINESS TO BUSINESS, 1,723,722, 51.5% TOTAL TRANSPORTATION, 592,186, 17.7% TOTAL FOOD PRODUCTS, 350,150 , 10.5%TOTAL MISCELLANEOUS, 43,940 , 1.3%TOTAL CONSTRUCTION, 29,669 , 0.9%TOTAL All Other Geos combined with Balance of Jurisdiction 2020Q2 SALES TAX AMOUNTS City of Palo Alto Geo Area Pie Charts Chart 12 AttachmentA16.a Packet Pg. 402 City of Palo Alto www.avenuinsights.com (800)800-8181 Page 13 Balance of Jurisdiction, 0.1%CHANGE, 2,261,511 , 43.2%TOTAL Stanford Shopping Center, 282.5% CHANGE, $1,440,242 , 27.5%TOTAL El Camino Real and Midtown, 113.0% CHANGE, 677,872 , 12.9%TOTAL Greater Downtown, 123.3% CHANGE, 612,095 , 11.7%TOTAL Town And Country Shopping Center, 172.9% CHANGE, $146,873 , 2.8%TOTAL California Avenue, 47.7% CHANGE, 98,716 , 1.9%TOTAL All Geo Area Totals 2021Q2 SALES TAX AMOUNTS Balance of Jurisdiction, 2,259,458 , 67.5%TOTAL Stanford Shopping Center, 376,491 , 11.2%TOTAL El Camino Real and Midtown, 318,184 , 9.5%TOTAL Greater Downtown, 274,066 ,8.2%TOTAL Town And Country Shopping Center, 53,827 , 1.6%TOTAL California Avenue, 66,853 , 2.0%TOTAL All Geo Area Totals 2020Q2 SALES TAX AMOUNTS GENERAL RETAIL, 173.1%CHANGE, $1,803,297 , 30.4%TOTAL BUSINESS TO BUSINESS, 12.7% CHANGE, 1,638,092 , 27.6%TOTAL TRANSPORTATION, 65.8% CHANGE, 1,420,886 , 23.9%TOTAL FOOD PRODUCTS, 104.1% CHANGE, $897,222 , 15.1%TOTAL MISCELLANEOUS, 104.7% CHANGE, 139,571 , 2.3%TOTAL CONSTRUCTION , 2.6% CHANGE, 41,840 , 0.7%TOTAL Palo Alto citywide 2021Q2 SALES TAX AMOUNTS GENERAL RETAIL, $660,300 , 16.7%TOTAL BUSINESS TO BUSINESS, 1,875,641 ,47.6%TOTAL TRANSPORTATION, 856,748 , 21.7%TOTAL FOOD PRODUCTS, 439,540 , 11.1%TOTAL MISCELLANEOUS, 68,176 , 1.7%TOTAL CONSTRUCTION, 42,941 , 1.1%TOTAL Palo Alto citywide 2020Q2 SALES TAX AMOUNTS City of Palo Alto Geo Area & Citywide Pie Charts Chart 13 AttachmentA16.a Packet Pg. 403