City Shows Gain in Sales Tax Revenues

City officials and business leaders have long lamented that the dollars earned by residents tend to be spent elsewhere, leaving the city in the lurch when it comes time to prepare a budget.

But that may be changing.

In figures prepared by the state Board of Equalization, Simi Valley’s sales tax revenue increased by almost 7% in the first three quarters of the fiscal year, totaling more than $6.7 million.

“The continuing trend in noticeable tax increases is encouraging,” said Mayor Greg Stratton, who has long lobbied for measures to bolster the city’s flagging retail base. “It’s a good indicator of continuing expansion trends in the local economy.”

The city expects that by the end of the fiscal year it will have collected more than $8.8 million in sales taxes.

That number is also expected to climb in the next year as other shopping and entertainment centers open later this year, such as the Simi at the Plaza, which will house a new Wal-Mart, and a theater complex complete with restaurants and retail stores.

Despite the recent figures, Simi Valley continues to bleed sales tax money into other communities, such as Thousand Oaks and Chatsworth, that have well-established commercial and retail outlets.

City officials hope that within the next decade, the dollars now spent outside Simi Valley will remain in the city with the addition of more shopping and entertainment centers, including a proposed regional mall.