2000/10/25 Council Minutes - Laserfiche WebLink

• October 25,2090 This review should provide us with more information and enhance future sales tax forewnng. Business&Orcupatloo Taxes.B&O taxes,which are heavily affected by the reraft deliveries of a major manufacturer,remain the most volatile of the City's major revenue sources.Mr.Cushman bases his B140 tax projections on the latest aircraft sales information from a variety of sources.His forecasts are updated during the year,as new information becomes available.For 2001, Mr.Cushman forecasts B&O tax revenue of$14,481,882,an increase of 51,481,882 over 2000's budget B&0 revenues but a decrease of 53,695,447 from 1999's peak revenues. Boeing Sale;.In several previous budget messages,1 have discussed the cyclical name of Boeing sales and the resulting effects on Everen's budgeting. I have included an update of 60 Cushman'a chart,which depicts graphically the peaks and valleys of Boeing's aircraft production in Washington State since 1960. BOEING:Washingtan Stab Airplane OMMedea{19604999M®I 120962009famcm15 699 vraxa.r 500 400 • • 900 • , 200 ..I aosaasmro.en 1900 1096 1970 1975 1980 1980 1990 1995 2000 2005 Mr.Cushman believes 1999 is expected to remain Boeing's peak year for the foreseeable furore and he does not anticipate any increase in B&0 tax revenues through 2005.