Coronado City Council Candidate Marvin Heinze - Coronado Eagle & Journal | Coronado News | Coronado Island News: Coronado City News

Coronado City Council Candidate Marvin Heinze

Font Size:
Default font size
Larger font size

Posted: Friday, October 19, 2018 1:49 pm

Q: City of Coronado sales tax revenues are either flat or down from previous levels, depending on the comparison used. What steps, if any, should the City Council take to help local businesses and by extension, increase the city’s sales tax revenue?

A: Coronado Sales and Use Taxes have increased over the past five years. In 2017 ($3.34M) Sales and Use Taxes were 22% higher than they were in 2012 ($2.74M). While this is a good trend, there has been significant fluctuation including a 2016 high of $4.04M. This fluctuation implies a large variation in the value of goods sold within the City limits.

From a city revenue point of view, we have little reason to be concerned as the Sales and Use Taxes are the third source of income amounting to ~5.4% of revenue in 2017. The fluctuations in sales tax are not causing significant financial challenges for the City as other revenue sources provide for the city’s needs.

However, sales tax as an indicator of our business health may be a different matter. The 2017 drop from 2015/2016 levels may be indicative of a change in business volume. This bears examination and raises a few questions on what other factors may have been at play during 2017? Was there a change in buying population (perhaps due to the carriers being home) or was there a surge in visitors (due to weather in other areas or national issues such as a booming economy). Did the Jan 1, 2017 reduction in sales tax rate from 8% to 7.75% have any effect? Have online shopping trends changed the amount of sales tax that gets to the City of Coronado? Has the shift to more conventions and less day visitors impacted business sales? City revenue from overnight stays has increased as transient occupancy taxes have risen 64% over the same five-year period from $8.903M to $14.578M. 

If the fluctuations in sales tax are reflective of challenges in our local business sales volume, the city should look at options to ensure our overall business climate stays positive, as a diversity of successful businesses is critical to maintaining a vibrant community. The city should get inputs from our Coronado Chamber of Commerce, who is our bell weather to measure the business climate in Coronado. Our city vision, as outlined in the Orange Avenue Corridor Specific Plan, is to create a small town, pedestrian friendly atmosphere that provides for successful commercial, civic and residential land use. Maintaining the environment for a successful business community is accomplished through collaboration, plan and ordinance enforcement, providing a safe, clean environment and through enhancement programs such as the summer shuttle, and free December parking.

Coronado is a special place to live and we will continue to strengthen our community through analysis, rational discourse and collaborative action.  By electing proven government leaders, who are able to immediately contribute without a ‘training period’, you will ensure a city council that will be able to Keep Coronado Special!

Marvin Heinze

Rules of Conduct

  • 1 Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
  • 2 Don't Threaten or Abuse. Threats of harming another person will not be tolerated. AND PLEASE TURN OFF CAPS LOCK.
  • 3 Be Truthful. Don't knowingly lie about anyone or anything.
  • 4 Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
  • 5 Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
  • 6 Share with Us. We'd love to hear eyewitness accounts, the history behind an article.

Welcome to the discussion.