Almanac

News - February 10, 2010

Menlo Park sales tax receipts take dive

A key source of revenue for Menlo Park fell by 21 percent in the first quarter of the current fiscal year, making an already dour revenue picture even bleaker.

Sales tax revenues declined by 20.6 percent, or $335,000, in the quarter ending Sept. 30 from the same quarter in the previous year, according to tax receipts recorded with the State Board of Equalization.

That drop was higher than the 12.9 percent decline seen in the Bay Area over the same period, the 14 percent decrease in Northern California, and the 14.8 percent drop statewide, according to Carol Augustine, Menlo Park's finance director.

The decline doesn't bode well for the current fiscal year (which began July 1), as the city had expected to receive more money from sales tax in 2009-10 than it did in 2008-09.

"Business-to-business" tax revenues in the area east of Middlefield Road accounted for most of the drop, falling by 37 percent, or $263,000.

In the four-quarter period from October 2008 to September 2009, total sales tax receipts dropped by 19.4 percent from the year-earlier period. That was the largest drop in any four-quarter period since 2002, according to Ms. Augustine.

City management plans to present the City Council with a mid-year budget report at the council's Feb. 23 meeting, with recommendations on possible budget cuts to follow.

Comments

There are no comments yet for this post

Don't miss out on the discussion!
Sign up to be notified of new comments on this topic.

Email:


Post a comment

Posting an item on Town Square is simple and requires no registration. Just complete this form and hit "submit" and your topic will appear online. Please be respectful and truthful in your postings so Town Square will continue to be a thoughtful gathering place for sharing community information and opinion. All postings are subject to our TERMS OF USE, and may be deleted if deemed inappropriate by our staff.

We prefer that you use your real name, but you may use any "member" name you wish.

Name: *

Select your neighborhood or school community: * Not sure?

Choose a category: *

Since this is the first comment on this story a new topic will also be started in Town Square! Please choose a category that best describes this story.

Comment: *

Verification code: *
Enter the verification code exactly as shown, using capital and lowercase letters, in the multi-colored box.

*Required Fields