Economic Report - January 2015




Economic Statistics

Unemployment Rate (Hays County)
November 2014 - 3.8%
November 2013 - 4.6% 
 
Labor Force (Hays County)
November 2014 - 93,063
November 2013 - 91,715
 
Sales Tax Deposit (City of Buda)
December 2014- $441,952.05
December 2013 - $348,136.43
26.9% INCREASE
 
Sales Tax Deposit (Hays County)
December 2014 - $1,169,475.60
December 2013 - $1,064,965.44
 
 

Data Sources:
Texas LMCI Tracer Data
Texas Comptroller of Public Accounts
 
 
 



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Buda Leads in Sales Tax Revenue Per Capita and Overall Growth in 2014 Among Largest Hays County Cities
      
Buda had another record breaking year in 2014, coming just $67,500 shy of $5 million in sales tax revenue, arguably without the prior period adjustment in August Buda would have broken the $5 million mark. In 2013, Buda set a record by barely exceeding $4 million in sales tax revenue for the first time in its history, so adding nearly a million dollars in revenue from one year to another is amazing progress; it's a growth of 20.695%. For perspective, in 2005 Buda's sales tax revenue barely exceeded $2 million for the first time, and just ten years later it has more than doubled.

 

When comparing sales tax revenues among Hays County cities with a population of 10,000 or greater, Buda comes out leading the pack, not only in sales tax revenue growth but also sales tax revenue per capita. Despite having 3 times the population of Buda, Kyle's sales tax revenue for calendar year 2014 was $4,844,928.11, approximately $87,500 below Buda's revenue. Kyle's growth from 2013 to 2014 was 17.98%, putting it in second place among the largest cities in Hays County. San Marcos, with a population 5 times the City of Buda and the outlet malls, generated slightly more than $24 million in sales tax revenue during 2014. However this represented a growth rate of 5.45%, putting San Marcos in third among the top 3 largest cities in Hays County.  

 

On a per capita basis, the amount of sales tax revenue generated per resident, Buda once again earned top honors with per capita revenue of $485.39 per resident in 2014. San Marcos and Kyle saw per capita revenues of $481.93 and $158.37 respectively, leaving a difference of over $327 in revenue per resident between the top and bottom ranking cities, which equates to approximately $21,800 in additional retail sales per resident in Buda over Kyle. A portion of the difference can be attributed to Cabela's which is a regional retailer, but the fact that Buda ranks above San Marcos in per capita revenue despite San Marcos being home to one of Texas's largest tourist destinations, the outlet malls, is indicative of other factors such as household income levels impacting the retail market in Buda.

 

Interactive mapping provided to the Buda Economic Development Corporation by our partner The Retail Coach indicates that the majority of Buda's households retail spending is well above the national average of $22,896 per household. The average household retail spending in Buda ranges from $25,784 (112% of National Average) to $39,483 (172% of National Average) depending on block groups. Kyle's household averages range from $15,247 (67% of National Average) to $22,168 (97% of National Average) and San Marco ranges from $8,854 (39% of National Average) to $27,400 (120% of National Average).

Despite Significant Increase in Sales, Retail Gap Exists in Buda
 
Information derived from the the Gap/Opportunity Analysis Report for Buda's Primary Retail Trade Area indicates resident's retail needs are not being met by existing retailers.

Buda's primary retail trade area represents the people who visit/shop in Buda on a daily or every other day basis and consist primarily of Buda residents and those living right outside of Buda. The primary trade area was determined by a license plate study conducted in mid-2013. 

The original gap analysis indicated retail leakage of $247,967,000 and the updated report indicates that this has increased to $597,966,979 in the last 18 months. If the population of a trade area is spending less than it's retail spending potential in that trade area, retail leakage occurs. This means that residents must travel outside the trade area to get their retail needs met. The significant increase in Buda's amount of retail leakage can be attributed to a 76% increase in the spending potential of the trade area, which now exceeds $1 billion. A large portion of the increased spending potential can be attributed to the addition of over 1,500 additional households to the primary trade area in the last 18 months. The average household income has also increased by 12%, which allows for more disposable income to be available for retail purchases.

Retail leakage indicates substantial revenue potential for retailers that located in Buda. Currently there is retail leakage in nearly every category except Sporting goods. Large categories of retail leakage are: Furniture & Home Furnishings ($19 million), Electronics & Appliances ($18 million), Building Materials & Garden Stores ($97 million), Grocery Stores ($39 million), Clothing & Accessories Stores ($47 million), and Full Service Restaurants ($41 million). The Buda Economic Development Corporation develops a list of potential retailers each quarter and works diligently to recruit new retail options to Buda that reduce the amount of leakage.