LOS ANGELES CITY COUNCIL DISTRICTS ECONOMIC REPORT

Transcription

1 LOS ANGELES CITY COUNCIL DISTRICTS ECONOMIC REPORT

2 THE ENERGY OF» ECONOMIC DEVELOPMENT Southern California Gas Company (SoCalGas ) is a proud supporter of the Los Angeles Area Chamber of Commerce. We understand that local businesses are the backbone of our economy and applaud the efforts of the Los Angeles Area Chamber of Commerce. Using natural gas gives us the ability to make a difference in the quality of our lives and the lives of others. SoCalGas is committed to providing safe and clean energy solutions that strengthen the business environment and improve our communities. socalgas.com 212 Southern California Gas Company. All copyright and trademark rights reserved. 2

3 LOS ANGELES CITY COUNCIL DISTRICTS ECONOMIC REPORT This publication was prepared by: BEACON Christopher Thornberg Founding Partner 5777 W. Century Blvd., Ste. 895 Los Angeles, California Jordan Levine Economist and Director of Economic Research 5777 W. Century Blvd., Ste 895 Los Angeles, California Dustin Schrader Research Associate For further information about this publication, please contact: Victoria Pike Bond Director of Communications Beacon Economics Or visit our website at BeaconEcon.com. Reproduction of this document or any portion therein is prohibited without the expressed written permission of Beacon Economics. Copyright 212 by Beacon Economics LLC. 3

4 This year, as we bring together Los Angeles business and civic leaders for another ACCESS L.A. City Hall event, our focus is on job creation and the fostering of good government. We know that understanding the economy of Los Angeles is essential to creating new jobs. With that in mind, the L.A. Area Chamber has once again commissioned Beacon Economics to produce the L.A. City Council Districts Economic Report. The response to our first two reports was excellent, and the study quickly became an important tool for City Council members as well as the business community. Conducted by the L.A. Area Chamber and Beacon Economics, this third annual study looks at economic trends by City Council district. The 212 report compares key economic indicators for each of L.A. s 15 City Council districts, highlighting annual employment, average wage, tax revenue and building permits over the last year. Council members have a direct impact on projects within their districts and throughout the City. We look forward to meeting with Council members to determine how this data can be used to move forward on economic development projects in their respective districts and throughout the community. Creating new jobs requires everyone s commitment. Sincerely, Gary Toebben President & CEO 4

5 As our economy continues its slow road to recovery, Southern California Gas Company (SoCalGas) recognizes the importance of sponsoring the Los Angeles City Council Districts 212 Economic Report. SoCalGas is committed to delivering clean, safe and reliable natural gas to our customers, as has done this for more than 14 years. As the nation s largest natural gas distribution utility, we provide energy to 2.9 million consumers through nearly 5.8 million meters in more than 5 communities. During difficult economic times, like those we now face, we know that the businesses and residents of Los Angeles need dependable, cost-effective energy solutions. Natural gas is abundant and domestic, which helps reduce our nation s dependence of foreign fuels and power local economies. SoCalGas provides more than 7, jobs across its Southern California service area, with many of those employees living and working in the City of Los Angeles. We are invested in this community. One of the ways we help local businesses succeed is through our energy efficiency programs. These programs help businesses save energy and money, an important consideration in times of shrinking budgets and finding ways to do more with less. We also offer a variety of business seminars, training and no-cost equipment demonstrations to help L.A. businesses prosper as we continue down the road to economic recovery. SoCalGas plays an active role in shaping public policy, by working to help elected officials understand that they must consider the fiscal impacts of their actions on area businesses. Now more than ever, governments must create an environment that allows local businesses to flourish. We are committed to developing long-term energy solutions that will benefit businesses across the city and the nation. We will continue to deliver natural gas to our customers in a safe and reliable manner, knowing that natural gas is a clean, domestically abundant and inexpensive source of energy that is fundamental to our energy future. Erbin Keith Senior Vice President & General Counsel Southern California Gas Company 5

6 CITY OF LOS ANGELES Data references District Boundaries All selected data was based on new City Council boundaries as approved by the Los Angeles City Council in June 212. The data was geographically coded in order to reflect new distrct boundaries in all previous years detailed. Los Angeles City Business Tax (Gross Receipts Tax) This data set was prepared by the Office of Finance for the City of L.A. Covered under the City s Business Tax Ordinance, this privilege tax is designed to produce revenue for the City, not to regulate business operations in any way. All businesses are required to pay the business tax at a rate determined by the type of products and services provided by each company (defined in sections to in the city s Business Tax Ordinance), with the exception of organizations formed only for religious or charitable purposes, which are exempt. The City s Office of Finance collects this tax based upon the businesses gross receipts and type of business. The data reported here include gross receipts from firms that have a physical location inside the City of L.A. Firms that do business in Los Angeles but do not have a physical location within the city limits are excluded. Gross receipts data are broken down by NAICS sector, but often firms do not have a NAICS code and are included in the unclassified sector. These data are excluded from the sectoral breakdown graphics, but often constitute a large share of a district s total. The gross receipts tax holiday for all new businesses in Los Angeles, regardless of size, was extended to three years in August 21. Los Angeles City Sales Tax Receipts Obtained from the Office of Finance for the City of L.A., sales tax receipts are a dollar count of revenue from sales tax in each city council district. The data cover the fiscal years from 29 to 211. Building Permit Data The Department of Building and Safety for the City of L.A. keeps a database of all building permits granted within the city, both commercial and residential. The database contains permits for new construction as well as permits for alterations to existing structures. The parcel number and/or the address are inputted into geographic information system software to determine the appropriate council district. All of the data in the construction charts has been smoothed using moving averages to reduce the statistical noise and seasonality of the data. Employment Data Drawn from the Quarterly Census of Employment and Wages (QCEW, formerly the ES-22) this database provides the number of employers, employees, and total payroll for the third quarter of each year (generally the peak employment quarter). The California Employment Development Department s Labor Market Information Division provided this data for each district. County employment changes are drawn from the employment by industry report, while the unemployment rate data is found in the unemployment and labor force report. Note: Prior to 29, employment data from one large employer was coded as part of District 1 but not in the years that followed. Data in the employment chart for District 1 are reported as coded with the Employment Development Department. Employees that were formerly coded with that employer as part of District 1 were recoded into other districts, in turn increasing total employment in those other districts beginning in 29. 6

7 SUMMARY Residents of Los Angeles have struggled through the longer-than-expected process of economic recovery. Consumers in the city, still wary of the possibility of another economic downturn, have been hesitant to return to their pre-recession spending patterns. City employers have been hesitant to take on new workers and invest in new properties. In fact, employment in 211 remained virtually flat from 21. Employment last year was approximately 1.8 percent lower than in 27 approximately 1.43 million workers versus 1.6 million workers, respectively. Yet, at the district level, there are some very promising employment trends. Last year, employment grew by 5. percent in District 13, building upon 4.4 percent growth in 21. Ultimately, falling employment in some of the largest districts in the City of Los Angeles caused a net drop in employment citywide. Employment in District 1, which will contain over 77, jobs in its borders after redistricting, decreased by 9.6 percent. Thus, even as the State of California leads the nationwide rebound in employment, job growth in many parts of the City of Los Angeles continues to be slow in coming. Consumer spending was on the upswing in 211, with citywide sales tax receipts up by 8.9 percent, following a 5. percent increase a year prior. Business revenues were up in 211, as well. Gross business tax receipts rose by 3.2 percent, primarily in the Health Care and Professional Services sectors. With the steep increase in consumer spending and business revenues comes the hope that city businesses will invest new profits in new jobs. Based on building permit data for the first half of 212, residential construction is on track to far surpass 211 levels, while non-residential construction is keeping pace with that of last year. Construction in District 5 has been especially strong, with total permit values totaling $197.2 million through the first half of 212, compared to $141.7 million through all of 211. Given the feverish pace of construction during the peak of the housing bubble, it is unsurprising that growth in Los Angeles construction has not returned to pre-recession levels, but expect both residential and non-residential construction to steadily rise to historical averages in the coming years. The following pages summarize trends in each district with accompanying figures highlighting different aspects of the district s economy in recent years. The first figure shows annual employment in the district for the year ending in the third quarter. The second figure plots the average wage in the district over the same time period and shows the citywide average wage for comparison. Average wage is calculated according to the wages of employed residents only, and thus does not reflect overall changes in earnings for workers who become unemployed. Changes may reflect a shift in the mix of jobs in the market. The third figure shows the value of building permits by year, broken out into residential and non-residential components. The fourth plots the value of residential construction permits, broken out by new construction and alterations to existing properties. The fifth figure shows the gross annual receipts within each district for the calendar years 26 to 211. The final figure shows the top 1 sectors for gross receipts in 211, with their 21 levels for comparison. 7

8 CITY OF LOS ANGELES City of Los Angeles 1,65 Total Employment City of Los Angeles 6 Average Annual Wages City of Los Angeles Number of Jobs (thousands) 1,6 1,55 1,5 1,45 1,4 Average Wage ($ thousands) , Source: Employment Development Department Source: Employment Development Department 2,5 2, 1,5 1, 5 Building Permit Values City of Los Angeles Residential Non-Residential Note: 212 figures are YTD through June New Residential () 2, 1,5 1, 5 Value of Residential Building Permits City of Los Angeles New Residential Residential Alterations Note: 212 figures are YTD through June Residential Alterations () Gross Annual Receipts City of Los Angeles Source: City of Los Angeles Office of Finance Note: Data are for the calendar year Professional Services Finance & Insurance Health Care Retail Trade Real Estate Admin & Waste Services Wholesale Trade Arts & Entertainment Accommodation & Food Other Services Gross Receipts by Sector Top 1 Sectors, City of Los Angeles Source: City of Los Angeles Office of Finance Note: Data are for the calendar year 8

9 LABOR MARKET AND FIRM DATA Employment and Firm Statistics, 211 Council Growth Growth Growth Growth Growth Growth Average Average Jobs Firms District Wages Firm Size 1 77, ,495 3, , ,877 5, , ,11 8, , ,182 1, , ,248 15, , ,224 4, , ,115 2, , ,133 1, , ,816 2, , ,868 5, , ,96 1, , ,488 6, , ,513 4, , ,692 12, , ,73 3,32 17 Total 1,441, ,631 98, Source: Employment Development Department Employment Rankings, 21 and 211 District Total Jobs Job Growth Average Wage Source: Employment Development Department 9

10 BUILDING PERMITS Value of Building Permits by City Council District 211 () Council Other New Residential Non-Residential Single-Family Apartments Commercial District Construction Alterations Alterations Total ,399.5 Source: City of Los Angeles Department of Building and Safety Value of Building Permits by City Council District 212 YTD through June () Total Council Other New Residential Non-Residential Single-Family Apartments Commercial District Construction Alterations Alterations Total Source: City of Los Angeles Department of Building and Safety Total 1

11 LOCAL RECEIPTS Gross Business Receipts Council District Total Top Sector in Each District Change Change Sector () (%) () (%) Health Care Retail Trade Health Care Professional Services Professional Services Health Care Health Care Retail Trade Retail Trade Professional Services Professional Services Health Care Health Care Professional Services Wholesale Trade Total Sales Tax Receipts Council Value () Change vs. Prior Year (%) District FY 29-1 FY FY FY FY Total

12 ED REYES DISTRICT 1 City Council District 1, extending northwest from downtown Los Angeles, has a population of 222,165 people. The centrally located district is crossed by I-5 and Route 11, while the 11 freeway spans the length of the District. The third-smallest City Council district in terms of area, District 1 has more than 3,8 firms that employ roughly 77, people. Employment and Firm Statistics Job growth in District 1 declined in 211 by 9.6 percent. District 1 was one of four districts in Los Angeles that had negative job growth, but it follows 25. percent job growth in 21. Wages were up slightly in District 1 in 211. The average wage in the City of Los Angeles grew faster than that of District 1, and thus the difference in the average wage between District 1 and the City grew from approximately $12,35 in 21 to approximately $14,65 in 211. Under the former district layout, District 1 accounted for 65,936 jobs in Los Angeles in 21. Under the new district layout, District 1 would account for 85,475 jobs in that same year. Construction The value of building permits in District 1 totaled $34.1 million through the first half of 212. This is ahead of the pace of 211, in which permit values totaled $65.6 million for the year. Multi-unit residential permit issuances have nearly matched 211 levels 137 versus 142, respectively while eight permits have been issued for single-family home construction so far this year. Gross Business Receipts and Sales Tax Revenue Gross receipts a measurement of taxes on corporate revenue in a district in District 1 rebounded in the fiscal year following a three-year decline. Receipts grew by approximately 2.2 percent in FY from a year prior. One of the District s largest sectors, health care, experienced one of the biggest increases, at 7.1 percent. Growth was strongest in the wholesale trade sector, with 11.6 percent growth from the preceding fiscal year. Sales tax receipts a measurement of consumer spending in a district grew by 4.6 percent in District 1 in the fiscal year, compared with 4.7 percent in the fiscal year. 12

13 ED REYES DISTRICT 1 District 1: Ed Reyes Number of Jobs (thousands) Total Employment District Average Wage ($ thousands) Average Annual Wages District District 1 City of Los Angeles Building Permit Values District Residential Non-Residential Note: 212 figures are YTD through June New Residential ()2 Value of Residential Building Permits District New Residential Residential Alterations Note: 212 figures are YTD through June Residential Alterations () Gross Annual Receipts District Health Care Retail Trade Professional Services Admin & Waste Services Real Estate Wholesale Trade Arts & Entertainment Accommodation & Food Other Services Information Gross Receipts by Sector Top 1 Sectors, District 1 5 1, 1,5 2, $ thousands

14 PAUL KREKORIAN DISTRICT 2 City Council District 2 in the San Fernando Valley stretches from the hills of Studio City to the edge of Verdugo Mountains Park in Sun Valley. It is also home to the NoHo Arts District, a region brewing with creativity, as well as entertainment production studios along with parks and schools. One of the least densely populated districts due to its large area (approximately 5 square miles), District 2 is home to roughly 5,3 firms and 53, jobs. The average wage in the District falls below the average wage for the City as a whole by nearly $13, per year. Employment and Firm Statistics Employment in District 2 grew by approximately 1.4 percent in 211, to 53,356 jobs, continuing to grow since hitting a trough of approximately 51, jobs in 29. Annual wages declined approximately 1.8 percent in District 2, compared to the citywide increase of approximately 5. percent. Under the former district layout, District 2 accounted for 55,292 jobs in Los Angeles in 21. Under the new district layout, District 2 would account for 52,635 jobs in that same year. Construction Residential building permit values, at a total of $24.5 million, are somewhat off the historical pace for the District, but are well off the exceptional pace of 211, when 421 multi-unit residential permits were issued. So far in 212, 45 multi-unit residential permits have been issued. Non-residential planned construction struggled in the first half of 212, with building permit values totaling $4. million, compared to $147.1 million in 211 and $58.2 million in 21. Gross Business Receipts and Sales Tax Revenue After four years of decline, District 2 gross receipts grew slightly in FY211-12, by approximately 1.8 percent. Gross receipts in the District s largest sector, retail trade, grew by approximately 9.4 percent. Growth in arts and entertainment was tremendous: percent. Indeed, the five largest sectors in the District all grew in FY Only health care and construction declined from FY21-11 levels. Sales tax receipts rose by 7.6 percent in the fiscal year, to $21.8 million, more than doubling the 3.6 percent increase in consumer spending in FY

15 PAUL KREKORIAN DISTRICT 2 District 2: Paul Krekorian Number of Jobs (thousands) Total Employment District Average Wage ($ thousands) Average Annual Wages District District 2 City of Los Angeles Building Permit Values District Residential Non-Residential Note: 212 figures are YTD through June New Residential ()25 Value of Residential Building Permits District New Residential Residential Alterations Note: 212 figures are YTD through June Residential Alterations () Gross Annual Receipts District Retail Trade Real Estate Professional Services Admin & Waste Services Wholesale Trade Health Care Educational Services Arts & Entertainment Accommodation & Food Construction Gross Receipts by Sector Top 1 Sectors, District 2 5 1, 1,5 2, $ thousands

16 Dennis P. Zine DISTRICT 3 City Council District 3, the westernmost district in the City of Los Angeles, is composed of five San Fernando Valley communities: Woodland Hills, Tarzana, Reseda, Winnetka and Canoga Park. District 3 accounts for almost 7 percent of all the jobs in the City of Los Angeles and is home to slightly more than 8,3 firms. Average annual wages in the District are $51,; below the City average of $58,6. Employment and Firm Statistics Employment in District 3 grew by approximately 1.7 percent in 211 to 94,7 jobs, a slight ebb from the 2.8 percent growth of 21. District 3 gained 146 new firms in 211, a 1.8 percent increase for the District, and approximately 1.2 percent of the total increase in firms throughout the City of Los Angeles. Under the former district layout, District 3 accounted for 95,91 jobs in Los Angeles in 21. Under the new district layout, District 3 would account for 92,537 jobs in that same year. Construction Residential planned construction in District 3 is behind the pace of 211, due primarily to a spike in new residential and residential alterations permits that year. Through June 212, residential permit values totaled $13.3 million, compared to $72.9 million in 211. Non-residential building permit values totaled $5. million through June, compared to $19.2 million for all of 211. Non-residential planned construction has yet to recover to pre-recession levels since reaching a trough of $11.7 million in 29. Gross Business Receipts and Sales Tax Revenue Gross receipts declined in the fiscal year, but by less than $.1 million, marking a far better year than FY21-11, in which gross receipts decreased by more than $3 million. Much of the net decrease was concentrated in the smallest sectors in the District. For example, gross receipts in the information sector, the District s smallest sector, decreased by 11.8 percent, and gross receipts in wholesale trade, the District s third smallest sector, decreased by 5.7 percent. On the other hand, gross receipts in the District s largest sector, health care, increased by 1.8 percent. Sales tax receipts in District 3 increased by 2.6 percent in the fiscal year, compared to 8. percent in the fiscal year. Consumer spending in the fiscal year in District 3 was the third highest in the City of Los Angeles. 16

17 Dennis P. Zine DISTRICT 3 District 3: Dennis P. Zine Number of Jobs (thousands) Total Employment District Average Wage ($ thousands) Average Annual Wages District District 3 City of Los Angeles Building Permit Values District Residential Non-Residential Note: 212 figures are YTD through June 2 1 New Residential ()3 Value of Residential Building Permits District New Residential Residential Alterations Note: 212 figures are YTD through June Residential Alterations () Gross Annual Receipts District Health Care Professional Services Retail Trade Real Estate Admin & Waste Services Finance & Insurance Construction Wholesale Trade Accommodation & Food Information Gross Receipts by Sector Top 1 Sectors, District 3 2, 4, 6, 8, $ thousands

18 Tom LaBonge DISTRICT 4 City Council District 4 stretches from Miracle Mile over Mulholland Drive and into North Hollywood, including the expansive Griffith Park to the east and the iconic Hollywood sign. The District employs almost 96, people and is home to more than 1, firms. Average wages in District 4 are higher than in most of the other districts, at roughly $57, per year. Employment and Firm Statistics Employment in District 4 increased by approximately 3.2 percent in 211, to a total of 95,83 jobs. Annual wages in the District increased by approximately $1,41 in 211, from $56,142 to $57,182. Under the former district layout, District 4 accounted for 85,35 jobs in Los Angeles in 21. Under the new district layout, District 4 would account for 92,839 jobs in that same year. Construction In District 4, residential building permit values totaled $17.1 million through June 212, compared to $1.7 million in 211. After a boom in multi-unit residential planned construction in 211, in which 556 building permits were issued, residential planned construction is on pace for a much slower year in 212. Non-residential planned construction has also had a fairly quiet year, with building permit values totaling $5.7 million through June, compared to $1.6 million in permit values in 211. Gross Business Receipts and Sales Tax Revenue Gross receipts in District 4 increased by 5.6 percent in the fiscal year, to $28.8 million. This was the thirdlargest increase in the City of Los Angeles, and a substantial recovery from the approximately $2 million decline in the fiscal year. The District s largest sector, professional services, grew by an impressive 14.9 percent in the fiscal year. Indeed, gross receipts increased by 7.5 percent or more in the District s five largest consumer spending sectors, including a 35.6 percent increase in arts and entertainment. Sales tax receipts in District 4 increased by 1.7 percent in the fiscal year. This is the second-largest increase among districts in the City of Los Angeles, and a substantial jump from the 4. percent growth in sales tax receipts in the fiscal year. 18

19 Tom LaBonge DISTRICT 4 Number of Jobs (thousands) Total Employment District Average Wage ($ thousands) Average Annual Wages District District 4 City of Los Angeles Building Permit Values District Residential Non-Residential Note: 212 figures are YTD through June New Residential () Value of Residential Building Permits District New Residential Residential Alterations Note: 212 figures are YTD through June Residential Alterations () Gross Annual Receipts District Professional Services Retail Trade Health Care Real Estate Arts & Entertainment Finance & Insurance Admin & Waste Services Information Other Services Accommodation & Food Gross Receipts by Sector Top 1 Sectors, District 4 1, 2, 3, 4, $ thousands

20 Paul Koretz DISTRICT 5 City Council District 5 is comprised of the inland communities of west Los Angeles and stretches northward along the 45 into the San Fernando Valley. With approximately 181, jobs, District 5 boasts the second highest employment numbers behind District 14. Due in no small part to the legal and business center of Century City, average wages in the District - at slightly more than $78, per year - are well above the City average and are the highest in the City. Additionally, the District is home to more firms than any other district, with nearly 16, companies operating within its borders. Employment and Firm Statistics Employment in the District grew by approximately 2. percent in 211, to a total of 181,43 jobs. District 5 continues to post the highest average annual wage among districts in the City of Los Angeles, at $78,248. Under the former district layout, District 5 accounted for 191,671 jobs in Los Angeles in 21. Under the new district layout, District 5 would account for 177,765 jobs in that same year. Construction Residential planned construction is booming in the 5th District. Residential building permit values reached $176.2 million through June 212, compared with $95.4 million in 211 and $48. million in 21. Leading the way is multiunit residential planned construction, with 97 building permits issued through the first half of 212, compared to 275 issued in all of 211. Non-residential building permit values through June totaled $21. million, exceeding the $15.7 million total of 21, but slightly off the pace of $46.3 million in 211. Gross Business Receipts and Sales Tax Revenue Gross receipts in the 5th District grew by 3.5 percent in the fiscal year, to $68.5 million. This represents a nearly complete turnaround from the nearly $3 million decline in gross receipts in the fiscal year. Gross receipts increased in each of the District s top eight sectors, including a 26. percent increase in the District s second-largest sector, finance and insurance. Gross receipts in accommodation and food, the District s ninth-largest sector, decreased slightly, by approximately 3. percent. Sales tax receipts in the District increased by 7. percent in the fiscal year, compared to 4.4 percent in the fiscal year. At $45.4 million, District 5 sales tax receipts were the second-highest among districts in the City of Los Angeles. 2

21 Paul Koretz DISTRICT 5 Number of Jobs (thousands) Total Employment District 5 Average Wage ($ thousands) Average Annual Wages District District 5 City of Los Angeles Building Permit Values District Residential Non-Residential Note: 212 figures are YTD through June New Residential () Value of Residential Building Permits District New Residential Residential Alterations Note: 212 figures are YTD through June Residential Alterations () Gross Annual Receipts District Professional Services Finance & Insurance Health Care Admin & Waste Services Real Estate Retail Trade Arts & Entertainment Other Services Accommodation & Food Information Gross Receipts by Sector Top 1 Sectors, District 5 5, 1, 15, 2, $ thousands

22 Tony Cardenas DISTRICT 6 City Council District 6, located in the geographic center of the San Fernando Valley, is home to the communities of Arleta, North Hills East, West Van Nuys/Lake Balboa, Panorama City, Sun Valley and parts of Van Nuys and North Hollywood. The District employs around 69, people at slightly more than 4,8 firms. Average wages for those workers are about $46,2 per year, placing wages in the District about $12,4 below the City average. Employment and Firm Statistics Employment in District 6 grew by approximately 4. percent in 211, the third-fastest rate of growth in the City of Los Angeles. Average annual wages in the District also grew quite strongly in 211, by approximately 4.3 percent. The average wage, $46,224, is approximately $12,899 lower than the city average, compared with $12,2 in 21. Under the former district layout, District 6 accounted for 65,938 jobs in Los Angeles in 21. Under the new district layout, District 6 would account for 66,387 jobs in that same year. Construction Building permit values in District 6 totaled $21.9 million through June 212, compared to $34.6 million in all of 211. Non-residential building permit values accounted for $1.5 million of that $21.9 million. District 6 is on track for nearly twice as much non-residential planned construction in 212 as in 211. Gross Business Receipts and Sales Tax Revenue Gross receipts in District 6 decreased by 3.6 percent in the fiscal year, to $15.1 million. It is the fifth consecutive year of decline in the District, but the smallest overall decline since 28. The overall decrease in gross receipts in the fiscal year was triggered primarily by an 8.7 percent decline in gross receipts in the District s largest sector, health care. Gross receipts also decreased by 27.7 percent in transportation and warehousing, by 15.2 percent in construction, and by 6.7 percent in administrative and support and waste management. Sales tax receipts actually increased by 8.6 percent in the fiscal year, compared to 4. percent in the fiscal year. Thus, even as corporate revenues continue to lag in the District, strong consumer spending suggests that the outlook for the overall economic health of the District will remain bright. 22

23 Tony Cardenas DISTRICT 6 District 6: Tony Cardenas Number of Jobs (thousands) Total Employment District Average Wage ($ thousands) Average Annual Wages District District 6 City of Los Angeles Building Permit Values District Residential Non-Residential Note: 212 figures are YTD through June New Residential () Value of Residential Building Permits District New Residential Residential Alterations Note: 212 figures are YTD through June Residential Alterations () Gross Annual Receipts District Health Care Retail Trade Wholesale Trade Professional Services Real Estate Admin & Waste Services Transportation & Warehousing Construction Manufacturing Accommodation & Food Gross Receipts by Sector Top 1 Sectors, District 6 1, 2, 3, $ thousands

24 Richard Alarcon DISTRICT 7 City Council District 7 in the northeast San Fernando Valley is home to several manufacturers and construction firms. The District employs almost 48, people at 2,7 companies, indicating the relatively larger size of the firms in District 7. Jobs pay an average annual wage of $48,, a little more than $1, below the City average. Employment and Firm Statistics Employment in the District increased by approximately 1.6 percent in 211, to a total of 47,848 jobs. The average annual wage in District 7 increased by an impressive 7.6 percent in percent higher than the city average. Under the former district layout, District 7 accounted for 43,246 jobs in Los Angeles in 21. Under the new district layout, District 7 would account for 47,19 jobs in that same year. Construction In District 7, the number of multi-unit residential building permits issued through the first six months of 212 was over seven times higher than in all of in 212, versus 21 in 211. Not surprisingly, total residential building permit values in 212 have far surpassed the total for all of 211: $29.6 million, versus $14.9 million in 211. Non-residential planned construction through the first half of 212 was slightly stronger than in recent years. Building permit values for 212 at $4.6 million through June will likely eclipse 211 values, at $7.4 million, and 21 values, at $7.3 million. Gross Business Receipts and Sales Tax Revenue Gross receipts in District 7 grew by an even 1. percent to $7.6 million in the fiscal year. It represents a slight rebound from declines in the three preceding years from a high of nearly $9 million in the 27-8 fiscal year. Growth in gross receipts was scattered somewhat across the board among the District s major sectors. Health care, the District s largest sector, declined by approximately 8.5 percent, while retail trade, the second-largest sector, increased by approximately 1.4 percent. Real estate, the fourth-largest sector, increased by 8.8 percent, while construction, the fifth-largest sector, decreased by 2.6 percent. Sales tax receipts in District 7 grew by 7.8 percent to $26.8 million in the fiscal year. It is far off the rate of growth in the fiscal year, at 12. percent, but only $.6 million lower in absolute terms. Consumer spending continues to show very positive signs of growth in District 7. 24

25 Richard Alarcon DISTRICT 7 Number of Jobs (thousands) Total Employment District Average Wage ($ thousands) Average Annual Wages District District 7 City of Los Angeles Building Permit Values District Residential Non-Residential Note: 212 figures are YTD through June New Residential () Value of Residential Building Permits District New Residential Residential Alterations Note: 212 figures are YTD through June Residential Alterations () Gross Annual Receipts District Health Care Retail Trade Wholesale Trade Real Estate Construction Professional Services Accommodation & Food Admin & Waste Services Transportation & Warehousing Educational Services Gross Receipts by Sector Top 1 Sectors, District 7 5 1, 1,5 $ thousands

26 Bernard Parks DISTRICT 8 Council District 8 in south Los Angeles is one of the most diverse and densely populated districts in the City. The District runs west of the 11 freeway and reaches I-1 at its northernmost point. Among the City Council districts, District 8 employs the least amount of people (slightly more than 15,4) and is also home to the fewest number of firms (approximately 1,4). Average annual wages in the district (approximately $33,1) also fall well below the City average. Employment and Firm Statistics Employment in District 8 increased by approximately.3 percent in 211, to a total of 15,497 jobs. The District continues to struggle with low worker incomes, as the average annual wage decreased from $33,165 to $33,133 in 211. Under the former district layout, District 8 accounted for 45,188 jobs in Los Angeles in 21. Under the new district layout, District 8 would account for 15,449 jobs in that same year. Construction Building permit values in District 8 through June 212 reached $22.1 million, compared to $3.8 million in all of 211. While total planned construction in 212 is on pace to surpass 211 levels, it has been a slow year for residential planned construction, with $4.4 million in building permit values through June, compared to $24.3 in all of 211. Non-residential planned construction has been much stronger in 212, with building permit values totaling $17.7 million through the first half of the year, compared to $6.5 million in all of 211 and $15.6 million in all of 21. Gross Business Receipts and Sales Tax Revenue The fiscal year was a difficult one for businesses in District 8. Gross receipts decreased from $3.5 million to $3. million, or 12.2 percent, the lowest in the City of Los Angeles. Alternatively, the preceding year, FY21-11, was an especially good year for the District, and thus following the decline in FY211-12, gross annual receipts in the District remain only slightly below historical averages. The overall decline in gross receipts was primarily the effect of a 32.4 percent decrease in the District s secondlargest sector, health care. Consumer spending in the District was quite strong in the fiscal year, with sales tax receipts increasing by 8.2 percent to $7. million. By comparison, sales tax receipts increased by just 1.9 percent in the fiscal year. 26

27 Bernard Parks DISTRICT 8 District 8: Bernard Parks Number of Jobs (thousands) Total Employment District Average Wage ($ thousands) Average Annual Wages District District 8 City of Los Angeles Building Permit Values District Residential Non-Residential Note: 212 figures are YTD through June New Residential ()6 Value of Residential Building Permits District 8 New Residential Residential Alterations Note: 212 figures are YTD through June Residential Alterations () Gross Annual Receipts District Retail Trade Health Care Real Estate Accommodation & Food Wholesale Trade Other Services Admin & Waste Services Construction Professional Services Transportation & Warehousing Gross Receipts by Sector Top 1 Sectors, District , $ thousands

28 Jan Perry DISTRICT 9 City Council District 9 encompasses some of the most culturally diverse and vibrant communities in Los Angeles, including Bunker Hill, Little Tokyo, South Park, Vermont Square, as well as the arts district and other South Los Angeles neighborhoods. The District is home to nearly 3, firms and 65, jobs. The average worker in the District earns approximately $5,8. Employment and Firm Statistics Employment in District 9 decreased by approximately 8.6 percent in 211, to a total of 65,467 jobs. The average annual wage in District 9 was $5,816 in 211, a substantial increase of 2.9 percent from 21. Under the former district layout, District 9 accounted for 262,856 jobs in Los Angeles in 21. Under the new district layout, District 9 would account for 71,622 jobs in that same year. Construction It has been a slow year for residential planned construction in District 9, as residential building permit values totaled $12.5 million through June, compared to $43.1 million through all of 211. A total of 13 multi-unit residential permits were issued through June, compared to 24 in all of 211. Non-residential planned construction is on track for its strongest year since 28, with building permit values totaling $3.1 million in the first half of 212, compared to $55.4 in 211. Gross Business Receipts and Sales Tax Revenue Gross receipts in District 9 decreased by approximately 6.5 percent in the fiscal year, from $8.7 million to $8.1 million. Gross receipts in the largest sector in the District, retail sales, increased by 8.4 percent, but declines in sectors like manufacturing, at 7.8 percent, and finance and insurance, at 8.9 percent, counteracted the gains in retail sales to produce the 6.5 percent net decline. On the consumer side, sales tax receipts posted another year of strong growth, at 9.5 percent, compared to 11.1 percent in the fiscal year. The rate of growth in the fiscal year tied with District 15 for fourth-highest among districts in the City of Los Angeles. 28

29 Jan Perry DISTRICT 9 District 9: Jan Perry Number of Jobs (thousands) Total Employment District Average Wage ($ thousands) Average Annual Wages District District 9 City of Los Angeles Building Permit Values District Residential Non-Residential Note: 212 figures are YTD through June New Residential ()8 Value of Residential Building Permits District 9 New Residential Residential Alterations Note: 212 figures are YTD through June Residential Alterations () Gross Annual Receipts District Retail Trade Wholesale Trade Professional Services Manufacturing Real Estate Health Care Finance & Insurance Accommodation & Food Other Services Admin & Waste Services Gross Receipts by Sector Top 1 Sectors, District 9 5 1, 1,5 $ thousands

30 Herb J. Wesson, Jr. DISTRICT 1 City Council District 1, geographically one of the smallest districts, lies west of downtown and is split into rougly equal halves by I-1. Nearly 59, people work in the District at about 5,9 firms. The average wage, at almost $4, per year, falls about $19, below the City average. Employment and Firm Statistics Employment in District 1 increased by approximately.8 percent in 211, to a total of 58,743 jobs. The average annual wage for workers in District 1 decreased from $43,249 to $39,868, or 7.8 percent, in 211. Under the former district layout, District 1 accounted for 59,26 jobs in Los Angeles in 21. Under the new district layout, District 1 would account for 58,289 jobs in that same year. Construction Residential planned construction in District 1 is having a strong year, with 73 multi-unit residential building permits issued through June 212, nearly surpassing the 76 permits issued in all of 211. Residential building permit values through June 212 totaled $2.5 million, compared to $24.3 million in all of 211. Non-residential planned construction in the District is on pace for its best year, with building permit values totaling $68. million through June 212, compared to $76.4 million in all of 211 and $13. million in all of 21. Gross Business Receipts and Sales Tax Revenue Gross receipts in District 1 grew by 2.5 percent in the fiscal year, a welcome sign following the 12.7 percent decrease in gross receipts in the fiscal year. The 17.7 percent growth in gross receipts in the largest sector in the District, professional services, is responsible for much of the overall increase. At the same time, gross receipts in arts and entertainment, the District s ninth-largest sector, grew substantially, at 54. percent. The fiscal year was also a strong year for consumer spending in the District. Sales tax receipts increased by 9. percent, compared to just 1.1 percent in the fiscal year. 3

31 Herb J. Wesson, Jr. DISTRICT 1 District 1: Herb J. Wesson, Jr. Number of Jobs (thousands) Total Employment District Average Wage ($ thousands) Average Annual Wages District District 1 City of Los Angeles Building Permit Values District Residential Non-Residential Note: 212 figures are YTD through June New Residential ()2 Value of Residential Building Permits District New Residential Residential Alterations Note: 212 figures are YTD through June Residential Alterations () Gross Annual Receipts District Professional Services Retail Trade Health Care Admin & Waste Services Real Estate Accommodation & Food Other Services Wholesale Trade Arts & Entertainment Educational Services Gross Receipts by Sector Top 1 Sectors, District 1 5 1, 1,5 2, $ thousands

32 Bill Rosendahl DISTRICT 11 City Council District 11 is bounded by the Santa Monica Mountains in the north, the Pacific Ocean on the west, Imperial Highway on the south and (roughly) the 45 Freeway on the east. The district encompasses Brentwood, Del Rey, Mar Vista, Marina del Rey, Pacific Palisades, Palms, Playa del Rey, Playa Vista, Venice, West L.A. and Westchester. One of the largest districts in Los Angeles, both in terms of population and geographic size, District 11 is also an important employment center with almost 14, individuals working at more than 1, firms. The jobs in the District are well paying, as only three districts have higher wages. Employment and Firm Statistics Employment in District 11 increased by approximately 4.5 percent in 211, to a total of 139,628 jobs. The average annual wage in the district increased by approximately 2.2 percent; District 11 maintains the fourthhighest average annual wage in the City of Los Angeles. Under the former district layout, District 11 accounted for 134,625 jobs in Los Angeles in 21. Under the new district layout, District 11 would account for 133,567 jobs in that same year. Construction Residential planned construction in District 11 has plateaued, with between $9-1 million in building permit values every year since 29, following continuous decline from years This year looks to be no exception, as permit values totaled $51.9 million through June. Non-residential planned construction in the District is having a down year so far, with building permit values totaling just $6.1 million through June 212, compared to $21.6 million in all of 211 and $97.9 million in all of 21. Gross Business Receipts and Sales Tax Revenue Gross receipts in District 11 increased by 5.8 percent to $39.5 million in the fiscal year, following an 8. percent decrease in the fiscal year. Growth in gross receipts was especially strong in the District s largest sector, professional services, at 17.7 percent, and its third-largest sector, finance and insurance, at 25.4 percent. Sales tax receipts in District 11 increased by an impressive 19.5 percent in the fiscal year 8.8 percentage points higher than in District 4, which had the second-highest rate of growth among districts in the City of Los Angeles. 32

33 Bill Rosendahl DISTRICT 11 District 11: Bill Rosendahl Number of Jobs (thousands) Total Employment District Average Wage ($ thousands) Average Annual Wages District District 11 City of Los Angeles Building Permit Values District Residential Non-Residential Note: 212 figures are YTD through June New Residential ()3 Value of Residential Building Permits District 11 New Residential Residential Alterations Note: 212 figures are YTD through June Residential Alterations () Gross Annual Receipts District Professional Services Real Estate Finance & Insurance Retail Trade Health Care Transportation & Warehousing Admin & Waste Services Arts & Entertainment Accommodation & Food Wholesale Trade Gross Receipts by Sector Top 1 Sectors, District 11 2, 4, 6, 8, 1, $ thousands

34 Mitchell Englander DISTRICT 12 City Council District 12 in the northwest San Fernando Valley is the second largest City Council district, covering nearly 6 square miles. Given its size, the District is naturally one of the larger employment centers in the City, with about 95, jobs and almost 6,8 firms inside its borders. The average wage in the District is $45, and falls more than $13,5 below the City average. Employment and Firm Statistics Employment in District 12 increased by approximately 3.8 percent in 211, to a total of 95,169 jobs. The District lost 32 firms in 211, though annual wages increased from approximately $44,688 to approximately $45,488. Under the former district layout, District 12 accounted for 92,97 jobs in Los Angeles in 21. Under the new district layout, District 12 would account for 91,676 jobs in that same year. Construction Building permit values in District 12 through the first half of 212 totaled $3.4 million, compared to $33.3 million in all of 211. Residential building permit values constituted half of this total, at $15.2 million, on pace to top the $2.3 million in residential building permit values in all of 211. Overall, residential construction in the past two years has slipped well below historical averages for the District, though it is well on its way to a stronger year in 212 than in 211. Non-residential planned construction in 212 has already surpassed 211 levels, at $15.2 million in building permit values through June, compared to $13. million in all of 211. Gross Business Receipts and Sales Tax Revenue Gross receipts in District 12 increased by 3.9 percent to $18.9 million in the fiscal year, following three years of decline from a peak of $22.3 million in 27. Gross receipts in the District s largest sector, health care, increased by 7.1 percent in the fiscal year. Construction revenues exploded in the District, with gross receipts increasing by 89.6 percent. On the consumer side, sales tax receipts recovered from a 1.9 percent decline in FY21-11 for an increase of 6.6 percent in FY

35 Mitchell Englander DISTRICT 12 Number of Jobs (thousands) Total Employment District Average Wage ($ thousands) Average Annual Wages District District 12 City of Los Angeles Building Permit Values District Residential Non-Residential Note: 212 figures are YTD through June New Residential () 1 5 Value of Residential Building Permits District New Residential Residential Alterations Note: 212 figures are YTD through June Residential Alterations () Gross Annual Receipts District Health Care Retail Trade Wholesale Trade Professional Services Real Estate Construction Admin & Waste Services Accommodation & Food Finance & Insurance Manufacturing Gross Receipts by Sector Top 1 Sectors, District 12 1, 2, 3, 4, $ thousands

36 Eric Garcetti DISTRICT 13 City Council District 13, geographically the smallest and most densely populated of the Council districts, sits between downtown Los Angeles and Hollywood. District 13 is home to major film/entertainment corporations, hospitals and about 26, residents. Firms in the District employ more than 86, people and pay wages that are competitive with the rest of the City. Employment and Firm Statistics Employment in District 13 increased by approximately 5. percent in 211, to a total of 86,289 jobs. The rate of employment growth in the District was the highest among districts in the City of Los Angeles. District 13 added 119 firms in percent of the increase in the total number of firms citywide. Under the former district layout, District 13 accounted for 67,31 jobs in Los Angeles in 21. Under the new district layout, District 13 would account for 82,216 jobs in that same year. Construction District 13 appears headed for a better year than 211 in both residential and non-residential planned construction. Through June, residential building permit values totaled $17.9 million, compared to $31.9 million in all of 211. Non-residential building permit values in the District have already matched 211 levels, at $1.6 million. Nonresidential planned construction is on its way to its best year since 29. Gross Business Receipts and Sales Tax Revenue Gross receipts in District 13 increased by 7. percent in the fiscal year, the highest rate of growth among districts in the City of Los Angeles. The increase is attributable primarily to strong revenue growth in some of the District s largest sectors. Gross receipts in health care, the largest sector, increased by 1.1 percent, while gross receipts in real estate, the thirdlargest sector, increased by 12.6 percent and professional services, the fourth-largest sector, increased by 17.9 percent. Consumer spending in District 13 continues to show steady growth year after year. Sales tax receipts increased by 7.8 percent in the fiscal year, compared to 5.7 percent in the fiscal year. 36

37 Eric Garcetti DISTRICT 13 District 13: Eric Garcetti Number of Jobs (thousands) Total Employment District Average Wage ($ thousands) Average Annual Wages District District 13 City of Los Angeles Building Permit Values District Residential Non-Residential Note: 212 figures are YTD through June New Residential ()12 Value of Residential Building Permits District 13 New Residential Residential Alterations Note: 212 figures are YTD through June Residential Alterations () Gross Annual Receipts District Health Care Retail Trade Real Estate Professional Services Information Educational Services Accommodation & Food Other Services Admin & Waste Services Wholesale Trade Gross Receipts by Sector Top 1 Sectors, District 13 1, 2, 3, $ thousands

38 Jose Huizar DISTRICT 14 City Council District 14 covers the eastern portion of downtown Los Angeles, as well as the communities of Boyle Heights, Eagle Rock, El Sereno, Downtown Los Angeles, Garvanza, Glassell Park, Hermon, Rose Hills and Highland Park. These communities cover 23 square miles and are home to over 235, residents. Representing downtown Los Angeles makes District 14 an important employment center, with more than 35, jobs and 12, firms. Average annual wages in the district are close to $73,, well above the City average. Employment and Firm Statistics Employment in District 14 decreased by approximately 1.8 percent in 211, to a total of 35,96 jobs. The average annual wage in District 14 increased by 6.9 percent in 211, to $75,668; this is the second-highest average annual wage among districts in Los Angeles. Under the former district layout, District 14 accounted for 89,166 jobs in Los Angeles in 21. Under the new district layout, District 14 would account for 31,54 jobs in that same year. Construction Residential building permit values for the first half of 212 totaled $31.3 million, compared to $46.5 million in all of 211. Already, multi-unit residential permit issuances in 212 have surpassed 211 totals 195 to 146, respectively. Building permit values for non-residential construction in the District totaled $36. million in the first half of 212, compared to $179.1 million in all of 211. Permit values in 212 may not reach 211 levels, but this should nonetheless be a solid year for non-residential construction. Gross Business Receipts and Sales Tax Revenue Gross receipts in District 14 increased by 6.2 percent to $84.5 million in the fiscal year, rebounding from nearly all of the decline from the preceding year. Gross receipts in professional services, the District s largest sector, increased by 12.2 percent, while gross receipts finance and insurance, the second-largest sector, increased by 8.5 percent. Indeed, gross receipts show that revenues in each of the top 1 sectors in the District increased from the previous year. Sales tax receipts grew by 1.6 percent in the fiscal year, the third-highest rate of growth among districts in the City of Los Angeles. It marks another year of strong growth in consumer spending in the District, as sales tax receipts grew by 7.1 percent in the fiscal year, which was the fourth-highest rate of growth citywide. 38

39 Jose Huizar DISTRICT 14 District 14: Jose Huizar Number of Jobs (thousands) Total Employment District 14 Average Wage ($ thousands) Average Annual Wages District District 14 City of Los Angeles Building Permit Values District Residential Non-Residential Note: 212 figures are YTD through June New Residential ()25 Value of Residential Building Permits District New Residential Residential Alterations Note: 212 figures are YTD through June Residential Alterations () Gross Annual Receipts District Professional Services Finance & Insurance Wholesale Trade Real Estate Retail Trade Admin & Waste Services Information Health Care Other Services Manufacturing Gross Receipts by Sector Top 1 Sectors, District 14 1, 2, 3, $ thousands

40 JOE BUSCAINO DISTRICT 15 The borders of City Council District 15 connect south Los Angeles neighborhoods with the communities surrounding the Port of Los Angeles, an important source of employment and economic growth for the region. Nearly 57, people work in the District earning average annual wages of $5,, well below the City average. Employment and Firm Statistics Employment in District 15 decreased by approximately.7 percent in 211, to a total of 56,95 jobs. The average annual wage in the District increased by approximately $2,69, or 4.3 percent, in 211. Under the former district layout, District 15 accounted for 58,717 jobs in Los Angeles in 21. Under the new district layout, District 15 would account for 57,335 jobs in that same year. Construction Like 211, 212 has been a slower-than-average year for construction in the 15th District. Residential planned construction is not the primary culprit, though, as building permit values totaled $14. million through June 212, compared to $25.1 million in all of 211 and $4.5 million in all of 21. Non-residential planned construction had a difficult first half of the year, with building permit values totaling $2.3 million, compared to $9.1 million in all of 211 and $22.5 million in all of 21. Gross Business Receipts and Sales Tax Revenue Gross receipts in District 15 decreased by 2.7 percent in the fiscal year, marking the third consecutive year of decline from a peak of $15.6 million in 28. Gross receipts declined by 1.2 percent in the District s largest sector, wholesale trade, counteracting a 17. percent increase in retail trade and a 15.1 percent increase in transportation and warehousing. } } On the other hand, consumer spending in the District had a very strong year, as sales tax receipts increased by 9.5 percent, compared to 3.2 percent in the fiscal year. 4

41 JOE BUSCAINO DISTRICT 15 District 15: Jose Buscaino Number of Jobs (thousands) Total Employment District Average Wage ($ thousands) Average Annual Wages District District 15 City of Los Angeles Building Permit Values District Residential Non-Residential Note: 212 figures are YTD through June 1 5 New Residential ()15 Value of Residential Building Permits District New Residential Residential Alterations Note: 212 figures are YTD through June 15 1 Residential Alterations () Gross Annual Receipts District Wholesale Trade Retail Trade Transportation & Warehousing Professional Services Real Estate Health Care Admin & Waste Services Accommodation & Food Other Services Manufacturing Gross Receipts by Sector Top 1 Sectors, District , 1,5 2, 2,5 $ thousands

42 MAP OF DISTRICTS Los Angeles City Council 212 Districts

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