Moorpark Sees Sales Tax Revenue Hike

Amid the generally gloomy economic news, at least one local indicator is cause for optimism: Moorpark's first-quarter sales tax revenue is reported up over last year's.

According to Moorpark’s recently released Sales Tax Update report, California’s economy looks like it could be turning around. Compared to the first quarter of 2010, the state’s first-quarter tax revenue for 2011 was up 9.2 percent, and Ventura County’s was up 8 percent.

Moorpark’s sales tax growth was a bit smaller—5.9 percent—but still a sign the local economy could be picking up momentum. The total increase in the city’s net receipts for this year's first quarter totaled $212,664.

The largest increase in sales tax receipts came from general contractors (64 percent), electrical equipment sales (40.2 percent) and sales from restaurants with liquor (23.2 percent).

The report noted that growth might have been higher if not for the earthquake in Japan and the dramatic rise in fuel prices. Uncertainty also remains about the future of home prices and the threat of additional government layoffs.

David Moe, Moorpark’s redevelopment manager, explained the lag in Moorpark’s sale tax revenue compared to that of the state and county may be due to the lack of certain types of businesses in the city.

“We don’t have any hotels or auto dealers,” he said.

The availability of capital for small business also remains a major concern.

“People are having a hard time getting construction financing, and businesses are finding it difficult to obtain capital for expansion," Moe said. "The banks are being very conservative in their lending.”

And something else may be holding back Moorpark’s economy—lack of confidence.

“Everyone is still a bit wary,” said Moorpark Chamber of Commerce President and CEO Patrick Ellis. “With competitors and fellow businesses closing, businesses have been hesitant in terms of marketing or expansion.”

Both Ellis and Moe held out hope for Moorpark’s economy.

“The beginning of the year, it seemed that each month, businesses were seeing an uptick in sales, especially through April and May,” Ellis said.

Moe noted some upcoming plans for Moorpark, such as an 80,000-square-foot development off the downtown area on High Street, just west of the Chamber of Commerce site.

“That space will replace the granary with office and retail space,” Moe said.

In addition, a new movie studio may soon be built. Plans are for Moorpark Studio West to be located just west of the Edison Transfer Station off Highway 118.

And there are plans for other new businesses in Moorpark. Estimates are that AG Machine will soon bring 160 employees, and Pennymac will bring 300 employees.

There are also some healthy signs in Moorpark’s local retail scene as well as some indications that big-box retailers are working to adapt to the times.

“Most of our sales tax comes from the Moorpark Marketplace because that’s where the big-box stores are concentrated,” Moe said.

As for some big retail stores in California, the Sales Tax Update report noted that some of them might consider building smaller stores or subleasing part of their larger space. In Moorpark, those stores could include TJ Maxx, Petsmart and Staples.

In terms of small business, Ellis believes there are a core of home-operated businesses ready to move to offices or storefronts.

“Out of necessity and because of so many layoffs, many small businesses have been running out of their homes for several years,” he said. “Now they’re looking to take the next step.”

Ironically, the city’s biggest economic challenge may be California.

“Our biggest threat is the state of California, because they’re threatening to take our redevelopment funds,” said Moe. “Right now, the issue is currently at the state Supreme Court. We’ll hopefully have a decision by January 15.”

But even if the case is unsuccessful, the city of Moorpark doesn’t plan to stand still.

“If we lose the lawsuit,” Moe said, “the city is prepared to move forward and participate in the voluntary redevelopment program to continue investment in economic development, housing and public improvements.”

The fact that the city of Moorpark’s total net receipts for the first quarter of 2011 were up more than $212,000 is a good sign. It shows that locally and statewide, the economy is fighting to come back. It’s not all good news, but some good news is better than what most have been predicting.

“At this point, things are looking up, in terms of sales tax revenue,” Moe said.