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Statewide Results Local sales and use tax receipts from January through March sales were 1.0% higher than the first quarter of 2018 after factoring out accounting anoma- lies and back payments from previous state reporting shortfalls. This was the lowest percentage increase since first quarter, 2010. The growth came primarily from a solid quarter for purchases related to expanding logistics, medical and tech- nology facilities and modest gains in building -construction supplies and restaurants. Cannabis sales produced a slight uptick in the food -drug group. Lower fuel prices and declining gener- al consumer good purchases offset the gains. The shift to internet purchases continued with online shopping ac- counting for 22.3% of the total general consumer goods segment versus 20.2% one year ago. Tax receipts from new car sales exhibited significant reductions although the drop was partially offset by an upswing in used autos and auto leases. Regional changes ranged from a de- cline of 2.1% to gains as high as 4.4%. However, the differences were primar- ily attributable to onetime projects or capital purchases and not reflective of overall economic trends. Slower Growth Ahead? July marks ten years of continuous economic growth which is the longest period of U.S. economic expansion on record. However, analysts from a vari- ety of economic segments are reporting signs that we may be leveling off. This quarter marked the eighth consecu- tive comparative period decline in Cali- fornia new car registrations with analysts noting that higher prices and a growing supply of vehicles coming off lease are making used cars more attractive. They also note that on -demand services such as Uber and Lyft are making it easier for debt -burdened millennials to avoid buying cars altogether. Rising restaurant menu prices, renewed competition from grocer prepared meals, and cutbacks in foreign tourism appear to be reducing restaurant patron- age which in recent years was one of the state's fastest growth segments. There will be an uptick in the second quar- ter's fuel -related tax receipts because of that period's refinery shutdowns; lower crude oil costs are expected to produce subsequent declines. Uncertainty over U.S. tariff and trade policies plus labor shortages are delaying some investment and business expansion decisions while reduced home sales and two quarters of declining construction permit values suggest a potential future leveling in that sector. Investment in technological advances should continue and remain strong. Economic shifts are not the only fac- tor leveling sales tax revenues. With an economy based on intellectual technol- ogy rather than goods and consumer priorities shifting to non-taxable services and experiences, sales tax no longer re- flects 21st century spending. Each year therefore, the portion of the economy that is taxed, shrinks. $8,000 $6,000 $4,000 $2,000 $0 Q1 Q1 Q1 Q1 16 17 18 19 Pleasanton County California Bus./Ind. 21% 111/0 12% 'In thousands of dollars Pleasanton Business Type Q1 119' Change Auto Lease - CONFIDENTIAL - Building Materials - CONFIDENTIAL - Casual Dining 336.9 19.9% Department Stores 217.0 -2.9% Electrical Equipment 260.9 67.6% Electronics/Appliance Stores 135.7 -11.0% Family Apparel 147.0 50.3% Medical/Biotech 265.2 23.0% New Motor Vehicle Dealers 722.0 -10.3% Office Equipment 172.6 47.4% Office Supplies/Furniture 168.1 207.1% Quick -Service Restaurants 168.4 14.1% Service Stations 253.0 10.8% Specialty Stores 132.1 21.2% Used Automotive Dealers - CONFIDENTIAL - County Change na 2.2% 15.6% 11.9% 115.3% 0.5% 5.0% -3.5% -18.0% -6.6% -22.5% 9.0% 14.3% 19.6% 2.6% HdL State Change na 4.0% 13.3% 35.0% 20.8% -3.2% 7.1% 6.0% -1.8% -7.4% -0.7% 10.1% 15.8% 23.4% 13.4% Total All Accounts 4,849.6 18.0% 9.1% 13.5% County & State Pool Allocation 906.8 33.2% 23.1% 23.8% Gross Receipts 5,756.5 20.2% 11.1% 14.9% City/County Share (287.8) -20.2% Net Receipts 5,468.6 20.2% s.Goods 8% Pools 16%