CALABASAS : Quarterly Sales Tax Revenues Down 9.5%

In a sign that the city’s economy continues to lag, Calabasas’ second-quarter sales tax revenues were down 9.5% from the same period in 1993, prompting renewed calls for a more diversified tax base.

But city officials also were hoping that things may be improving, if only slightly. In the first quarter of this year, according to city records, sales tax revenues were down 13.6%.

City officials blame this year’s lagging revenues on the Jan. 17 earthquake and on slow sales at the city’s auto dealerships, which make up about 30% of all revenues collected.

To make matters worse, Lockheed Corp. earlier this year announced it was moving its corporate headquarters, which will mean $400,000 in lost sales tax revenues, said City Manager Charles Cate. Lockheed also pays about $20,000 annually in utility taxes.

The situation troubles city officials, who note that sales tax revenues increased 2.9% in the last quarter of 1993. The dealerships’ woes demonstrates the need to diversify, Hill said.

“Our top nine or 10 business in the city provide 55 to 60% of the sales tax, and that’s not healthy,” City Councilman Bob Hill said. “We still need to look at spreading it around a bit.”

According to Hill, the move of Ralphs supermarket into the yet-to-be-built Calabasas Park Centre project will help bring in more sales taxes. A movie theater to be built there will also spur economic growth, Hill said.

The large-scale office and retail project, which recently received approval from the City Council, has divided supporters and critics, who say the project is too big. Council members cited the project’s potential economic benefits.

But Ted Rosenquist, a member of Save Our City, an organization formed to block the project, disputed the notion that the project will significantly add to sales taxes.

The added wear and tear to streets from increased traffic, along with the cost of providing police, will offset any increased sales tax revenues, he said. Also, theaters generate little in sales taxes, he said.

“You’re talking taxes from popcorn sales,” Rosenquist said. “And you would have to generate a lot of popcorn sales to bring in any money.”