Loading...
HomeMy WebLinkAboutStaff Report 2307-1771CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, October 02, 2023 Council Chambers & Hybrid 5:30 PM     Agenda Item     14.Sales Tax Digest Summary Calendar 2023 Q1 (January 2023 – March 2023) City Council Staff Report From: City Manager Report Type: INFORMATION REPORT Lead Department: Administrative Services Meeting Date: October 2, 2023 Report #:2307-1771 TITLE Sales Tax Digest Summary Calendar 2023 Q1 (January 2023 – March 2023) DISCUSSION This report transmits information regarding the City of Palo Alto’s sales tax receipts for the first quarter (January - March) of 2023. Further and more detailed levels of information can be found in the attached City of Palo Alto Sales Tax Digest Summary 2023 Q1 (Attachment A). The City’s sales tax cash receipts of $8.07 million for the first quarter (January to March 2023) is $36,400 (0.4%) lower than the same quarter of the prior year (see Attachment A, Historical Analysis by Calendar Quarter). When adjusted for non-period related payments, the overall economic quarter over quarter sales tax activity (Q1 2022 to Q1 2023) in Palo Alto increased by $0.1 million (1.5%). For the year ending in the first quarter of 2023, sales tax cash receipts for the city increased by 8.5% from the prior year. When adjusted for non-period related payments, the overall economic sales tax activity in Palo Alto for the year increased by 8.6%. In comparison, statewide increased by 3.9% and the Bay Area increased by 3.7%. When adjusted for non- period related payments, the overall economic sales tax activity ending in the first quarter of 2023 increased by 4.5% statewide and decreased by 1.9% in the Bay Area. The first quarter includes $1.6 million of sales tax receipts from the county pool. The City’ s share of the county pool for this quarter remains flat at 6.0% compared to the first quarter of 2022. 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, 2023 Q1 APPROVED BY: Kiely Nose, Assistant City Manager CityꢀofꢀPaloꢀAltoꢀ SalesꢀTaxꢀDigestꢀSummaryꢀꢀꢀꢀꢀ CollectionsꢀthroughꢀMayꢀ2023ꢀ SalesꢀJanuaryꢀthroughꢀMarchꢀ2023ꢀ(2023Q1)ꢀ ꢀ California Overview For the year ending in first quarter of 2023, cash receipts increased 3.9% statewide, 3.7% in the Bay Area. However, when adjusted for non‐period related payments, the overall economic sales tax activity for the year ending in first quarter of 2023 increased by 4.5% statewide and increased 1.9% in the Bay Area. The differential in cash and economic results was due to various cash anomalies such as late payments and audit adjustments. City of Palo Alto For the year ending in the first quarter of 2023, sales tax cash receipts for the city increased by 8.5% from the prior year. When adjusted for non‐period related payments, the overall economic sales tax activity in Palo Alto for the year ending in first quarter of 2023 increased by 8.6%. Sales tax cash receipts decreased by 0.4% in California from Q1 2022 to Q1 2023, matching the statewide decline of 0.5%. Overall, the decline in sales tax cash receipts in California in Q1 2023 was due to a combination of factors, including bad weather, higher interest rates, and a slowing in consumer demand. This led to an overall decrease in consumer spending. Inflation declined by 1.6% from an average of 8.0% in Q1 2022 to 6.4% in Q1 2023. Interest rates increases made financing larger purchases, such as new autos, more expensive. According to Experian, the average interest rate for an auto loan in California for the year ended 2023Q1 was 5.41%, up from 4.73% in the year ended 2022Q1. This represents a 14.2% increase in the average interest rate. The Transportation Category in Palo Alto saw the largest decline in taxable sales on an economic basis over the past year, falling by 13.0%. This was driven by a 19.4% year‐over‐year decline in taxable sales of new autos, which make up 76.3% of the category. However, much of the decline in sales tax from new autos was offset by increases in the Leasing segment (which appears in the B2B category). The average price of a new car in California was $45,340 in 2023Q1, down from $46,340 in 2022Q1, a 2.16% decline. While higher interest rates should contribute to a decline in demand for new autos, decreasing prices should lead to an increase in demand. Also, in the current uncertain economic climate, consumers remain cautious, especially in the face of higher prices throughout the economy. However, it should be noted that after recent supply chain constraints and unusually high prices for new autos, there remains a large pent up demand for new autos. After several years of turbulence in the new auto marketplace, numerous countervailing trends remain and we have yet to reach a ‘new normal’. ꢀwww.avenuinsights.com (800) 800-8181 Page 1 CityꢀofꢀPaloꢀAltoꢀ Regional Overview The chart below shows adjusted economic benchmark year amounts, which means that it shows a full year from the first quarter of 2022 through first quarter of 2023 compared to first quarter of 2021 through first quarter of 2022 (benchmark years are rolling annual comparisons through the current quarter). The growth level is different between the state and Palo Alto because the sales tax from businesses in Palo Alto were more impacted by the pandemic than those statewide and Palo Alto continues to have a longer growth ‘tail’ to its recovery. Regional Overview Chart (Economic) BENCHMARK YEAR 2023Q1 COMPARED TO BENCHMARK YEAR 2022Q1 ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 1st Quarter 2023 California Statewide Sacramento Valley% of Total / % Change Palo Alto S.F. Bay Area Central Valley South Coast Inland Empire North Coast General Retail Food Products Transportation Business to Business Misc/Other 27.3 / 4.4 17.4 / 22.0 18.0 / ‐13.0 33.6 / 24.1 3.6 / ‐5.1 27.7 / 2.0 20.6 / 7.6 24.5 / 5.6 16.3 / 4.9 11.0 / 2.2 100.0 / 4.5 23.6 / ‐5.9 22.1 / 4.5 20.5 / ‐5.1 21.8 / ‐4.7 10.8 / ‐5.5 100.0 / 1.9 27.8 / ‐0.1 16.4 / 8.2 27.4 / 2.5 14.5 / 9.1 14.0 / 0.7 100.0 / 3.3 36.2 / ‐2.5 14.5 / 3.2 23.2 / 2.3 15.2 / 5.9 10.9 / ‐1.7 100.0 / 0.7 26.3 / 4.2 22.5 / 9.0 25.3 / 7.8 16.0 / 6.6 9.9 / 4.2 32.5 / 12.6 17.4 / 10.9 25.8 / 18.5 11.2 / 24.3 13.1 / 13.3 100.0 / 15.1 26.3 / ‐15.4 17.9 / ‐5.8 30.0 / ‐6.9 10.4 / ‐10.4 15.4 / ‐9.9 100.0 / ‐9.9Total100.0 / 8.6 100.0 / 6.6 ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 1st Quarter 2023 California Statewide Sacramento Valley Auto Sales ‐ New Palo Alto S.F. Bay Area Restaurants Central Valley South Coast Restaurants Inland Empire North Coast Miscellaneous Retail 13.4 / ‐0.2 Department Stores Miscellaneous Retail 15.6 / 17.9 Auto Sales ‐ New Largest Segment Leasing 21.3 / 21.2 Restaurants Restaurants Service Stations 11.8 / 4.2% of Total / % Change 2nd Largest Segment % of Total / % Change 3rd Largest Segment % of Total / % Change 14.7 / 10.9 Auto Sales ‐ New 16.2 / 10.0 Auto Sales ‐ New 11.2 / ‐0.1 16.5 / 12.2 Auto Sales ‐ New 12.8 / 6.6 Department Stores Restaurants 11.1 / 9.2 Restaurants 15.5 / 23.5 Auto Sales ‐ New 11.5 / 3.0 9.8 / ‐9.3 11.1 / 1.3 10.9 / 12.0 11.2 / ‐5.9 Auto Sales ‐ New Miscellaneous Department Miscellaneous Restaurants 9.6 / 3.8 Restaurants 10.8 / 14.3 Retail 9.2 / 6.4 Stores 7.7 / 0.2 Retail 10.5 / ‐1.113.8 / ‐19.4 8.1 / 5.6 11.2 / ‐13.5 ꢀwww.avenuinsights.com (800) 800-8181 Page 2 CityꢀofꢀPaloꢀAltoꢀ Gross Historical Sales Tax Cash Receipts by Benchmark Year and Quarter (Before Adjustments) $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $‐ Quarterly Benchmark Year Net Cash Receipts for Benchmark Year first Quarter 2023: $34,007,195 *Benchmark year (BMY) is the sum of the current and 3 previous quarters (2023Q1 BMY is sum of 2023 Q1, 2022 Q4, 2022 Q3, 2022 Q2) Net Pools & Adjustments 20.2%Leasing 21.4% Restaurants 15.6% All Other 35.1% Auto Sales ‐ New 13.8% Office Equipment 7.4%Apparel Stores 6.7% www.avenuinsights.com (800) 800-8181 Page 3 CityꢀofꢀPaloꢀAltoꢀ 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 first quarter of 2023. The Top 25 Sales/Use Tax contributors generate 60.6% of Palo Alto’s total sales and use tax revenue. Anderson Honda Apple Stores Macy's Department Store Magnussen's Toyota of Palo Alto Tesla Stanford Health Care Arco AM/PM Mini Marts Audi Palo Alto Bloomingdale's Hengehold Trucks Hermes Neiman Marcus Nordstrom Department Store Richemont Rivian Automotive Shell Service Stations Shreve & Co. Tesla Lease Trust Tiffany & Company Union 76 Service Stations Valero Service Stations Varian Medical Systems Volvo Cars Palo AltoHP Enterprise Services Louis Vuitton ꢀwww.avenuinsights.com (800) 800-8181 Page 2 CityꢀofꢀPaloꢀAltoꢀ ꢀ Sales Tax from Largest Non‐Confidential Sales Tax Segments (Economic) $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $‐ Benchmark Year 2023Q1 Benchmark Year 2022Q1 ꢀwww.avenuinsights.com (800) 800-8181 Page 5 CityꢀofꢀPaloꢀAltoꢀ ꢀ Historical Analysis by Calendar Quarter Economic Category Business To Business Miscellaneous/Other General Retail %2023Q1 2022Q4 2022Q3 2022Q2 2022Q1 2021Q4 2021Q3 2021Q2 2021Q1 2020Q4 2020Q3 28.6% 2,350,567 2,571,178 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 16.1% 1,302,322 1,517,005 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 20.3% 1,640,927 2,305,038 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 Food Products 14.8% 1,195,458 1,260,287 1,230,824 1,227,240 1,018,577 1,083,309 79.8% 6,489,274 7,653,508 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 20.2% 1,586,938 1,935,580 1,862,181 686,044 1,721,924 1,806,328 584,508 1,513,663 1,741,273 1,343,184 1,339,250 100.0% 8,076,212 9,589,088 8,688,414 7,653,481 8,112,655 8,995,580 6,773,990 7,470,441 6,789,802 7,341,183 6,523,324 999,729 912,939 635,705 674,469 651,271 Subtotal Economic (Local Business) Net Pools & Adjustments Total Cash Receipts Economic Segment Miscellaneous/Other Restaurants %2023Q1 2022Q4 2022Q3 2022Q2 2022Q1 2021Q4 2021Q3 2021Q2 2021Q1 2020Q4 2020Q3 46.8% 3,818,384 4,490,992 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 13.3% 1,073,621 1,114,637 1,102,248 1,093,944 902,707 432,956 392,724 367,144 947,771 679,381 540,782 525,295 884,911 412,016 406,274 388,703 799,544 514,516 398,447 384,763 540,244 338,032 264,318 237,522 557,662 489,417 365,627 315,453 546,924 329,678 265,136 186,316 Miscellaneous Retail Apparel Stores 5.5% 5.2% 4.4% 448,322 423,470 356,626 545,797 538,573 533,032 381,616 435,730 423,601 479,710 495,508 454,349Department Stores Service Stations Food Markets Business Services 2.4% 1.3% 0.9% 192,723 101,978 74,150 215,640 116,810 98,027 233,387 99,811 62,683 250,715 104,253 80,950 191,755 91,634 62,025 190,610 108,203 227,256 181,460 90,773 73,169 157,268 89,773 41,858 116,258 74,397 70,763 111,242 89,739 86,107 108,840 81,580 98,350 Subtotal Economic (Local Business) Net Pools & Adjustments Total Cash Receipts 79.8% 6,489,274 7,653,508 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 20.2% 1,586,938 1,935,580 1,862,181 686,044 1,721,924 1,806,328 584,508 1,513,663 1,741,273 1,343,184 1,339,250 100.0% 8,076,212 9,589,088 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 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. ꢀwww.avenuinsights.com (800) 800-8181 Page 5 CityꢀofꢀPaloꢀAltoꢀ Historical Analysis by Calendar BMY from 2014Q1 to 2023Q1 Economic Category Business To Business Miscellaneous/Other General Retail % 27.1% 18.1% 22.6% 14.4% 82.1% 17.9% 100.0% 2023Q1 9,211,582 6,142,004 7,669,059 4,913,808 27,936,453 6,070,743 34,007,195 2022Q1 7,417,075 6,944,815 7,349,797 4,014,555 25,726,242 5,626,425 31,352,667 2021Q1 7,559,749 5,918,738 4,334,592 2,406,412 20,219,491 6,261,187 26,480,678 2020Q1 8,285,565 6,876,486 7,342,533 4,758,417 27,263,001 5,549,517 32,812,518 2019Q1 7,585,071 7,867,779 8,414,928 4,813,722 28,681,500 6,475,660 35,157,160 2018Q1 6,221,078 6,368,729 8,348,586 4,729,681 25,668,075 7,780,906 33,448,981 2017Q1 5,363,280 6,081,956 8,556,247 4,593,233 24,594,716 7,375,620 31,970,337 2016Q1 4,930,311 5,701,511 8,016,839 4,560,623 23,209,283 6,510,739 29,720,022 2015Q1 4,185,193 5,322,795 8,080,314 4,270,210 21,858,511 6,984,972 28,843,483 2014Q1 4,592,034 6,941,845 7,938,038 3,943,408 23,415,325 6,562,710 29,978,035 Food Products Subtotal Economic (Local Business) Net Pools & Adjustments Total Economic Segment Miscellaneous/Other Restaurants % 48.2% 12.9% 5.5% 2023Q1 16,404,542 4,384,450 1,855,445 1,893,281 1,767,608 892,465 2022Q1 15,242,527 3,534,932 2,038,869 1,738,227 1,665,905 721,092 2021Q1 14,175,956 1,992,761 1,265,974 965,485 2020Q1 16,156,412 4,200,329 1,558,415 1,812,209 1,684,162 687,514 2019Q1 16,961,455 4,278,481 1,588,576 2,007,712 1,927,148 693,763 2018Q1 14,112,656 4,155,599 1,740,607 1,752,885 2,078,890 627,009 2017Q1 12,638,958 4,037,282 2,318,218 1,691,766 2,100,425 573,919 2016Q1 11,524,583 4,011,460 1,738,856 1,629,041 2,298,561 618,471 2015Q1 10,555,643 3,758,386 1,598,740 1,659,379 2,397,393 732,864 2014Q1 12,520,825 3,458,140 1,536,401 1,630,386 2,415,255 757,377 Miscellaneous Retail Apparel Stores 5.6% Department Stores Service Stations 5.2%769,134 2.6%406,403 Business Services Food Markets 1.2%422,852 380,382 320,260 718,085 815,861 729,690 773,095 925,803 716,275 680,069 0.9%315,810 404,308 323,518 445,875 408,504 470,739 461,053 462,510 439,831 416,872 Subtotal Economic (Local Business) Net Pools & Adjustments Total 82.1% 17.9% 100.0% 27,936,453 6,070,743 34,007,195 25,726,242 5,626,425 31,352,667 20,219,491 6,261,187 26,480,678 27,263,001 5,549,517 32,812,518 28,681,500 6,475,660 35,157,160 25,668,075 7,780,906 33,448,981 24,594,716 7,375,620 31,970,337 23,209,283 6,510,739 29,720,022 21,858,511 6,984,972 28,843,483 23,415,325 6,562,710 29,978,035 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 (2023Q1 BMY is sum of 2023 Q1, 2022 Q4, 2022 Q3, 2022 Q2). ꢀwww.avenuinsights.com (800) 800-8181 Page 7 CityꢀofꢀPaloꢀAltoꢀ Quarterly Analysis by Sales Tax Category: Change from 2022Q1 to 2023Q1 (Economic) Campbell ‐2.9% ‐9.9% ‐3.2% 2.2% 12.1% 14.0% ‐5.2% ‐34.9% 15.1% ‐31.7% ‐7.4% ‐3.5% 2,430,988 7,554,236 3,700,699 574,144 2,614,329 ‐7.0% Restaurants 10,388,310 ‐27.3% Restaurants 4,053,122 ‐8.7% Heavy Industry Office Equipment Service Stations Restaurants Electronic Equipment Light Industry Cupertino Office Equipment I.T. Infrastructure I.T. Infrastructure Gilroy 5.1% ‐14.1% ‐17.5% ‐16.5%Auto Sales ‐ New Los Altos 6.1% 11.0% 17.8% 5.8% ‐2.6% ‐5.8% 1.8% 18.2% ‐9.4% ‐1.9% 36.3% 17.2% 16.5% ‐8.0% 24.7% ‐6.7% ‐7.4% 22.9% 548,830 4.6% Restaurants Miscellaneous Retail Furniture/Appliance Light Industry Miscellaneous Other Miscellaneous Retail Office EquipmentLos Gatos Milpitas ‐13.9% 12.2% 7.2% 1,349,122 5,449,621 2,404,435 4,393,601 6,489,274 44,658,554 12,674,311 1,119,395 233,655 1,363,484 ‐1.1% Restaurants 5,081,311 7.2% Office Equipment Restaurants Electronic Equipment Light Industry Morgan Hill Mountain View Palo Alto 0.3% ‐23.9% ‐5.4% ‐27.5% 2,457,715 ‐2.2% Auto Sales ‐ New 4,463,301 ‐1.6% Restaurants 6,518,712 ‐0.5% Leasing Restaurants Light Industry Service Stations Energy Sales‐4.5% ‐0.3% ‐3.0% 1.1% 24.4%Biotechnology Restaurants Business Services Auto Sales ‐ New Bldg.Matls‐Whsle 14.9% ‐26.9%10.8% 25.4% 12.7% Health & Government Service StationsSan Jose 9.7%2.9% 9.6% 42,190,739 5.8% Green Energy Restaurants Santa Clara County of Santa Clara Saratoga 28.2%11,137,261 13.8% Restaurants 1,156,360 ‐3.2% Misc. Vehicle Sales 247,570 ‐5.6% Restaurants Bldg.Matls‐Whsle Leasing Furniture/Appliance Auto Sales ‐ Used 0.2% ‐15.8%28.4%43.4% ‐21.8%Bldg.Matls‐Whsle Food Processing Eqp Business Services0.1%1.3% ‐13.8% ‐42.1%‐5.2%Auto Parts/Repair Light Industry Service Stations Sunnyvale ‐29.9%16.7%‐7.9% ‐11.4%21.7%6,463,748 7,012,289 ‐7.8% Restaurants Miscellaneous Retail Office Equipment Unlike the chart on page one which showed a ‘benchmark year’ through first quarter of 2023, the chart above shows a comparison of one quarter only – first quarter of 2023 to first quarter of 2022. This chart is for local ‘brick and mortar’ businesses and it excludes county pools and adjustments. ꢀwww.avenuinsights.com (800) 800-8181 Page 8 CityꢀofꢀPaloꢀAltoꢀ City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2022Q1 to 2023Q1 (Economic) California Avenue FOOD PRODUCTS GENERAL RETAIL ALL OTHER % CHANGE QoQ 2023Q1 QE 2022Q1 QE 46,888 23Q1 % OF TOTAL 22Q1 % OF TOTAL 36.7% ‐40.2% 0.8% 64,086 15,166 40,728 53.4% 12.6% 33.9% 100.0% 41.6% 22.5% 35.8% 100.0% 25,382 40,388 112,658TOTAL6.5%119,980 El Camino Real and Midtown FOOD PRODUCTS GENERAL RETAIL ALL OTHER % CHANGE QoQ 2023Q1 QE 2022Q1 QE 23Q1 % OF TOTAL 22Q1 % OF TOTAL ‐2.0% 6.2% 150,257 153,346 36,894 143,797 334,037 46.8% 12.2% 41.0% 100.0% 45.9% 11.0% 43.0% 100.0% 39,165 131,639 321,062 ‐8.5% ‐3.9%TOTAL Greater Downtown FOOD PRODUCTS GENERAL RETAIL BUSINESS TO BUSINESS CONSTRUCTION MISCELLANEOUS TRANSPORTATION TOTAL % CHANGE QoQ 2023Q1 QE 2022Q1 QE 23Q1 % OF TOTAL 22Q1 % OF TOTAL 19.1% ‐6.1% 5.1% ‐7.0% 13.9% 52.7% 8.9% 469,690 394,311 260,220 43,541 9,507 7,271 3,499 718,349 60.0% 31.2% 5.8% 54.9% 36.2% 6.1% 244,475 45,766 8,842 1.1%1.3% 8,282 1.1%1.0% 5,344 0.7%0.5% 782,398 100.0%100.0% Stanford Shopping Center GENERAL RETAIL FOOD PRODUCTS ALL OTHER % CHANGE QoQ 2023Q1 QE 2022Q1 QE 23Q1 % OF TOTAL 22Q1 % OF TOTAL ‐9.4% 5.2% ‐48.9% ‐16.4% 850,066 138,870 148,787 938,161 132,060 290,988 74.7% 12.2% 13.1% 100.0% 68.9% 9.7% 21.4% 100.0%TOTAL 1,137,722 1,361,208 ꢀwww.avenuinsights.com (800) 800-8181 Page 9 CityꢀofꢀPaloꢀAltoꢀ City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2022Q1 to 2023Q1 (Economic) Cont. Town And Country Shopping Center FOOD PRODUCTS GENERAL RETAIL ALL OTHER % CHANGE QoQ 2023Q1 QE 2022Q1 QE 90,167 23Q1 % OF TOTAL 22Q1 % OF TOTAL 13.4% 11.0% ‐10.9% 11.9% 102,282 55,923 3,389 63.3% 34.6% 2.1% 62.5% 34.9% 2.6% 50,399 3,805 144,371TOTAL161,593 100.0%100.0% All Other Geos combined with Balance of Jurisdiction % CHANGE QoQ 2023Q1 QE 2022Q1 QE 23Q1 % OF TOTAL 22Q1 % OF TOTAL BUSINESS TO BUSINESS GENERAL RETAIL FOOD PRODUCTS TRANSPORTATION MISCELLANEOUS CONSTRUCTION TOTAL 12.5% ‐8.4% 2,235,775 1,261,767 1,001,083 985,451 41,422 1,988,128 1,377,099 867,935 1,142,033 54,183 40.3% 22.7% 18.0% 17.7% 0.7% 36.4% 25.2% 15.9% 20.9% 1.0% 15.3% ‐13.7% ‐23.6% ‐12.5% 1.7% 26,543 5,552,041 30,334 5,459,713 0.5% 100.0% 0.6% 100.0% All Geo Area Totals Comparison 23Q1 & 22Q1 Balance of Jurisdiction Stanford Shopping Center Greater Downtown El Camino Real and Midtown Town And Country Shopping Center California Avenue % CHANGE QoQ 2023Q1 QE 2022Q1 QE 23Q1 % OF TOTAL 22Q1 % OF TOTAL 8.6% ‐16.4% 8.9% 3,029,285 2,789,090 1,361,208 718,349 334,037 144,371 54.6% 20.5% 14.1% 5.8% 51.1% 24.9% 13.2% 6.1% 1,137,722 782,398 321,062 161,593 119,980 5,552,041 ‐3.9% 11.9% 6.5% 2.9%2.6% 112,658 5,459,713 2.2%2.1% TOTAL 1.7%100.0%100.0% Palo Alto citywide QE 23Q1 & 22Q1 BUSINESS TO BUSINESS GENERAL RETAIL FOOD PRODUCTS TRANSPORTATION MISCELLANEOUS % CHANGE QoQ 2023Q1 QE 2022Q1 QE 23Q1 % OF TOTAL 22Q1 % OF TOTAL 10.8% ‐0.3% 2,350,567 2,122,094 1,645,517 1,040,148 1,443,619 228,864 36.2% 25.3% 18.4% 16.3% 2.9% 32.6% 25.2% 16.0% 22.1% 3.5% 1,640,927 1,195,458 1,055,554 185,342 14.9% ‐26.9% ‐19.0% 59.7% ‐0.5% CONSTRUCTION TOTAL 61,425 38,471 6,518,712 0.9%0.6% 6,489,274 100.0%100.0%ꢀwww.avenuinsights.com (800) 800-8181 Page 10 CityꢀofꢀPaloꢀAltoꢀ City of Palo Alto Geo Area Pie Charts California Avenue2023Q1 SALES TAX AMOUNTS California Avenue2022Q1 SALES TAX AMOUNTS FOOD PRODUCTS,$46,888 , 41.6% TOTALALL OTHER, 0.8% CHANGE, $40,728 ,33.9% TOTAL FOOD PRODUCTS, 36.7% CHANGE,$64,086 , 53.4% TOTAL ALL OTHER, $40,388 , 35.8% TOTAL GENERAL RETAIL, $25,382 , 22.5% TOTALGENERAL RETAIL, ‐40.2% CHANGE,$15,166 , 12.6% TOTAL El Camino Real and Midtown 2023Q1 SALES TAX AMOUNTS El Camino Real and Midtown 2022Q1 SALES TAX AMOUNTS ALL OTHER, $143,79743.0% TOTALFOOD PRODUCTS,‐2.0% CHANGE, $150,257 ,46.8% TOTAL ALL OTHER, ‐8.5% CHANGE,$131,639 ,FOOD PRODUCTS,$153,346 , 45.9% TOTAL41.0% TOTAL GENERAL RETAIL, $36,894, 11.0% TOTALGENERAL RETAIL, 6.2% CHANGE, $39,165 , 12.2% TOTAL ꢀwww.avenuinsights.com (800) 800-8181 Page 11 CityꢀofꢀPaloꢀAltoꢀ City of Palo Alto Geo Areas Pie Charts Greater Downtown 2023Q1 SALES TAX AMOUNTS Greater Downtown 2022Q1 SALES TAX AMOUNTS CONSTRUCTION, ‐7.0 CHANGE, $8,842 ,1.1% TOTAL MISCELLANEOUS, 13.9% CHANGE, $8,282 , 1.1% TOTAL MISCELLANEOUS,$7,271 , 1.0% TOTALCONSTRUCTION, $9,507 , 1.3% TOTALTRANSPORTATION,52.7% CHANGE, $5,344 , 0.7% TOTAL TRANSPORTATION, $3,499 , 0.5% TOTAL BUSINESSTO BUSINESS, 5.1% CHANGE, $45,766 , 5.8% TOTAL BUSINESS TO BUSINESS,$43,541 , 6.1% TOTAL FOOD PRODUCTS, $394,311 , 54.9% TOTALFOOD PRODUCTS, 19.1% CHANGE, $469,690 , 60.0% TOTAL GENERAL RETAIL, ‐6.1% CHANGE, $244,475 ,GENERAL RETAIL, $260,220 , 36.2% TOTAL31.2% TOTAL StanfordShopping Center 2023Q1 SALESTAX AMOUNTS StanfordShoppingCenter 2022Q1 SALESTAX AMOUNTS ALL OTHER, ‐48.9% CHANGE, $148,787 , 13.1% TOTAL ALL OTHER, $290,988 ,GENERAL RETAIL $938,161 ,GENERAL RETAIL, ‐9.4% CHANGE, $850,066 ,21.4% TOTAL 68.9% TOTAL74.7% TOTAL FOOD PRODUCTS, 5.2% CHANGE, $138,870 , 12.2% TOTAL FOOD PRODUCTS, $132,060 ,9.7% TOTAL ꢀwww.avenuinsights.com (800) 800-8181 Page 12 CityꢀofꢀPaloꢀAltoꢀ City of Palo Alto Geo Area Pie Charts Town AndCountry ShoppingCenter 2023Q1 SALES TAXAMOUNTS Town AndCountry ShoppingCenter 2022Q1 SALES TAXAMOUNTS ALL OTHER, ‐10.9% CHANGE, $3,389 , 2.1% TOTAL ALL OTHER, $3,805 , 2.6% TOTAL FOOD PRODUCTS, 13.4% CHANGE, $102,282 , 63.3% TOTALGENERAL RETAIL, 11.0% CHANGE, $55,923 ,34.6% TOTAL GENERAL RETAIL, $50,399 ,34.9% TOTAL FOOD PRODUCTS, $90,167 ,62.5% TOTAL All Other Geos combined with Balance of Jurisdiction 2023Q1 All Other Geos combined with Balance of Jurisdiction 2022Q1 SALES TAXAMOUNTSSALES TAXAMOUNTS CONSTRUCTION, ‐12.5% CHANGE, $26,543 , 0.5% TOTAL CONSTRUCTION,MISCELLANEOUS,‐23.6% CHANGE, $41,422 , 0.7% TOTAL MISCELLANEOUS,$30,334 , 0.6% TOTAL$54,183 , 1.0% TOTAL TRANSPORTATION,‐13.7% CHANGE, $985,451 ,TRANSPORTATION, $1,142,033 , 20.9% TOTAL BUSINESSTO BUSINESS,17.7% TOTAL 12.5% CHANGE,$2,235,775 ,BUSINESSTO BUSINESS,$1,988,128 , 36.4% TOTAL40.3% TOTAL FOOD PRODUCTS, 15.3% CHANGE, $1,001,083, 18.0% TOTAL FOOD PRODUCTS,$867,935 15.9% TOTAL GENERAL RETAIL, ‐8.4% CHANGE,$1,261,767, 22.7% TOTAL GENERAL RETAIL, $1,377,099, 25.2% TOTAL ꢀwww.avenuinsights.com (800) 800-8181 Page 13 CityꢀofꢀPaloꢀAltoꢀ City of Palo Alto Geo Area & Citywide Pie Charts All Geo Area Totals 2023Q1 SALES TAX AMOUNTS All Geo Area Totals 2022Q1 SALES TAX AMOUNTS TownAnd CountryShoppingCenter, 11.9% CHANGE, $161,593 , 2.9% TOTAL TownAnd CountryShoppingCenter,$144,371 , 2.6% TOTAL CaliforniaAvenue, $112,658 , 2.1% TOTALCaliforniaAvenue, 6.5% CHANGE, $119,980 , 2.2% TOTAL El CaminoReal andMidtown,$334,037 , 6.1% TOTALEl CaminoReal andMidtown, ‐3.9% CHANGE, $321,062 ,Balance of Jurisdiction,$2,789,090 , 51.1% TOTAL5.8% TOTAL Balance of Jurisdiction, 8.6% CHANGE, $3,029,285 ,54.6% TOTAL GreaterDowntown,$718,349 , 13.2% TOTAL GreaterDowntown,8.9% CHANGE, $782,398 , 14.1% TOTAL StanfordShoppingCenter, ‐16.4% CHANGE, $1,137,722 ,20.5% TOTAL StanfordShoppingCenter, $1,361,208 , 24.9% TOTAL Palo Alto citywide 2023Q1 SALES TAX AMOUNTS Palo Alto citywide 2022Q1 SALES TA X AMOUNTSCONSTRUCTION,59.7% CHANGE, $61,425 , 0.9% TOTAL MISCELLANEOUS, ‐19.0% CHANGE,MISCELLANEOUS,CONSTRUCTION, $38,471 , 0.6% TOTAL$185,342 , 2.9% TOTAL $228,864 , 3.5% TOTAL BUSINESSTO BUSINESS, $2,122,094 , 32.6% TOTALTRANSPORTATION, ‐26.9% CHANGE,$1,055,554 , TRANSPORTATION, $1,443,619 , 22.1% TOTAL BUSINESSTO BUSINESS, 10.8% CHANGE, $2,350,567 , 36.2% TOTAL16.3% TOTAL FOOD PRODUCTS,14.9% CHANGE, $1,195,458 , 18.4% TOTAL FOOD PRODUCTS, $1,040,148 , 16.0% TOTAL GENERAL RETAIL, $1,645,517 ,GENERAL RETAIL, ‐0.3% CHANGE, $1,640,927 ,25.2% TOTAL 25.3% TOTALwww.avenuinsights.com (800) 800-8181 Page 14