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HomeMy WebLinkAboutCC 10-06-2026 Oral CommunicationsCC 10-06-2026 Oral Communications Written Comments From:Rhoda Fry To:Public Comments Cc:City Clerk; Kitty Moore; Liang Chao; R "Ray" Wang Subject:10/6/2026 City Council Oral Communications Date:Tuesday, October 6, 2026 10:09:32 AM Attachments:img647.pdf CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Dear City Clerk, Please include the attached for oral communications for today’s city council meeting. 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Excludin`j=:_--`----I---------------:-:.-`- A sizeable year ago audit correction reversed taxes paid to the City in prior quarters;explainstheextraordinaryspike in cash comparisons. Related, this action prevented a lQ25 pool's payment; the current pool allocation shown above is in line with historical patterns. Theadditionofataxpayer,robustdemand for technology related equipment caused a 117% surge in business-industry. Casual and fine dining, along with quick service venues, all reported better filings for the restaurant's category. Specialty stores suffered location closures while spending on family apparel www.hdlcompanies.com I 888.861.0220 goods fell 2%. Temporary shuttering of a gas stati.on outweighed fuel price spikes late in the quarter triggered by world conflicts; thus, a decrease of 7% by service stations. Net of aberrations, taxable sales for all of Santa Clara County were flat over the comparable time period; the Bay Area was up 3.5%. ®TOP 25 PRODUCERS 99 Ranch Market Alexander's Steak House Apple Apple Procurement Company Argonaut Window & Door Benihana BJ's Restaurant & Brewhouse California Dental Arts Chevron Cupertino Car Wash 76 Dish N Dash Galpao Gaucho Great Gas Cupertino Haidilao Hot Pot Insight Direct usa Insight Public Sector Lazy Dog Cafe Mirapath Rotten Robbie Safeway Shane Co. Siam Stati.on Target TJ Maxx Whole Foods Market HdL®Companies Publishecl by HdL Companles in Summer 2026 I:Q2325 __.-``...`:.-:_i.`..`::`:.:.`.`. `.. CITYOFCUPERTINO SALESTAXUPDATE STATEWIDE RESULTS California's local one cent sales and use tax receipts posted moderate growth during the first quarter, reflecting resilient consumer behavior despite persistent economic headwinds. For the months of January through March, revenues increased 4% from the year ago quarter after adjusting for accounting anomalies. Strong consumer spending patterns did not falter and was the main reason of growth, parti.ally enhanced by larger-than- expected income tax refunds. Both online retailers and brick and mortar merchants experienced dynamic changes over last year that far exceed expectations. E-commerce remains the platform of choice providing convenience, broad product availability, and flexible payment options -benefitting the business-industry sector and allocations via the countywide use tax pool. Family apparel and discount department stores both boosted general consumer goods the most, with a slight bump in gas prices further pushing returns from multiple vendors. Patronage at restaurants resulted in a 4.2% year over year jump. \Mth demand constrained due to increasing price- sensitivity and slower foot traffic, gains by all types of eateries signaled underlying resolve to dine out. Temporary events further contributed to the positi.ve outcome - Southern California wildfires hindered 2025 and the Super Bowl lifting 2026. The first quarter also included the initial impacts of elevated tensions in the Middle East which drove West Texas Intermediate crude oil prices above $95 per barrel. This had an immediate impact on local gas prices resulting in a modest bump to receipts from gas stations and created large amounts of uncertainty. At the ti.me of writi.ng, the conflict appears to have subsided with the Strait of Hurmuz reopened reducing the possibility of future strain. Autos-transportation posted a nominal gain in first quarter 2026, as higher average transaction prices offset weaker unit sales. These price increases reflected tariff impacts reaching consumers after months of absorpti.on by automakers, along with rising material costs. As in the prior quarter, the transition to the new DMV payment system for used vehicle dealers under AB 85 modestly reduced cash receipts, with adjustments sti.ll pending. Overall, the short-term outlook remains cautiously opti.misti.c. Normal consumer spending combined with multiple host sites of World Cup matches and corresponding tourism should sustain growth, albeit varied regionally. The Middle East conflict temporarily resulted in $6 per gallon average peak pricing during the start of the summer months. The forecast is coupled with a national inflation rate that anticipates an upward trend leaving little room for the Federal Reserve to alter interest rates in a favorable way for consumers, potentially slowing down the retail economy. State General Fund City/County General Fund (Bradley-Burns) County Public Safety (Prop 172) County Realignment (Mental Health/\^/elfare/Publlc Safety) Countywide Transportation Fund Santa Clara Co. Transportation Authority (VTA) (SCVT) Santa Clara County Transit (SCOT) Santa Clara County \/TA BART Operating & Maintenance Transactions and Use Tax (SVTB) Santa Clara Co. Measure A (SCCR) Santa Clara County SV Transporation Solution Tax (SVTS) Santa Clara County Meagure RR (JPBT) Santa clara County 2026 Retail Transactions Tax Measure A (sccc) ax Rate Effective April 01, 2026 3.9375% 1.0000% 0.5000% 1.5625% 0.2500% 0.5000% 0.5000% 0.1250% 0.1250% 0.5000% 0.1250% 0.6250% 9.7500% Cupertino Business Type Casual Dining Service Stations Quick-Service Restaurants Fast-Casual Restaurants Grocery Stores Family Apparel Sporting Goods/Bike Stores Specialty Stores Garden/Agricultural Supplies Home Furnishings *AIIocation aberratlons have been_ Q1 '26* Change 474.1 153.9 85.5 81.0 74.0 - 64.6 25.0 23.4 18.2 14.9 usted to reflect sales actlvit County HdL state Change Change 3.9% -1.0% -1.9% 1.5% -1.8% *ln thousands of dollars 0I 9 8 S 0LJ 9 8 e C)P 9 8 S aLJ 8 S S arJ ®1 a o a G R A e n \ \ RI H E ] R E i ] E ] H i i OJ ` a7 o u s H® q 7 ¢ (, , , , , , , , , , , / , , ' - ® MA R K E T S T A T I S T I C S Em E i l l R E R E E [ E E [ E - E E D f i E H E . I . . 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