HomeMy WebLinkAboutIR 9874 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9874 (Revised)
To the Mayor and Members of the City Council April 12, 2016
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* SUBJECT: February 2016 — Sales Tax Update
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Sales tax revenue represents approximately twenty-two percent (22%) of the City's General Fund
anticipated revenue in Fiscal Year 2016. It is the second largest revenue source, with property tax
being the largest. In addition, sales tax revenue represents the largest revenue source in the Crime
Control and Prevention District Fund. Staff is committed to providing regular updates on this important
and sometimes volatile revenue source. The Texas Comptroller's Office posted February 2016 (Fiscal
Year 2016, Period 5) collection results on April 6t". Actual receipts are dependent upon the timeliness
and accuracy of sales tax payers' returns. This report provides Fort Worth's sales tax collection
compared to last year and the impact on the current year's budget.
FEBRUARY NET SALES TAX COLLECTIONS (10-YEAR HISTORY)
N
FY2007 FY2008 FY2DD9 FY2010 FY2011 FY2012 FY2013 H2014 H2015 FY2D15
The City's net sales tax collection is up $865,489 or 9.5%, compared to the same month last year. As
depicted in the table below, the City experienced $1,189,411 or a 13.3% increase when compared to
last year's collections for the same month. Current period collections include only transactions that
occurred within the month, so this number reflects pure economic activity.
COLLECTION DETAIL FOR CITY SALES TAX
February 15 February 16 Variance ($) Variance (%)
Current Period Collections $8,918,900 $10,108,311 $1,189,411 13.3%
Other Collections` 216,276 113,993 (102,283) (47.3%)
Audit Collections 99,814 (75,205) (175,018) (175.3%)
Service Fee (184,700) (202,942) (18,242) (9.9%)
Retainage` 21,052 (7,326) (28,378) (134.8%)
Net Collections $9,071,342 $9,936,831 $865,489 9.5%
*RETAINAGE AMOUNTS ARE ATTRIBUTED TO A PERCENTAGE OF SALES TAX COLLECTED BEING SET ASIDE TO COVER ANY REVERSALS THAT MIGHT OCCUR
AFTER THE ALLOCATION.THE RETAINED AMOUNT GETS CARRIED FORWARD TO THE FOLLOWING MONTH AND APPEARS IN THE PRIOR RETAINED.THE CURRENT
RETAINED AMOUNT IS SUBTRACTED FROM THE PRIOR RETAINED AMOUNT TO COME UP WITH THE RETAINAGE NUMBER PRESENTED IN THE TABLE ABOVE.
*OTHER COLLECTIONS ARE PAYMENTS ATTRIBUTED TO PRIOR PERIOD COLLECTIONS,FUTURE PERIOD COLLECTIONS AND UNIDENTIFIED COLLECTIONS.FOR
FEBRUARY 2015,OTHER COLLECTIONS WERE HIGH DUE TO PRIOR PERIOD&FUTURE PERIOD COLLECTIONS.FEBRUARY 2016 IS MORE REPRESENTATIVE
OF HISTORICAL TRENDS.
CURRENT PERIOD COLLECTIONS
Change Compared to Same Month in Prior Year
13.3%
5.9% 3.8%
3.7% 3.9% 3.9°/0 1.9%
0.7% 0_9% 0 11 0.2% 0.1%
Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16
(1.2)%
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9874 (Revised)
To the Mayor and Members of the City Council April 12, 2016
Page 2 of 3
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SUBJECT: February 2016 — Sales Tax Update
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The City's Sales Tax collections year-to-date are around ±1% of the budget year-to-date and are
slightly less than 2% higher than the year-to-date total for the same period last year.
CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON
Current FY2016
Receipts Receipts
Budget as of Through Through
CITY OF FORT WORTH Period 5 Period 5 Period 5
GENERAL FUND $54,171,796 $54,943,663 $53,870,409
CRIME CONTROL AND PREVENTION DISTRICT 25,990,941 25,954,814 25,467,108
TOTAL $80,162,737 $80,898,477 $79,337,517
CITY OF FORT WORTH FISCAL YEAR COMPARISON —FY2016
Projected
Adopted Amended Fiscal Year Variance to Amended
Budget Budget Projections M (°/a)
CITY OF FORT WORTH
GENERAL FUND $135,065,427 $135,065,427 $135,065,427 $0 0.0%
CRIME CONTROL AND PREVENTION DISTRICT $64,802,679 $64,802,679 $64,802,679 $0 0.0%
FORT WORTH TRANSPORTATION AUTHORITY $67,857,000 $67,857,000 $67,857,000 $0 0.0%
The City anticipates collecting $135,065,427 in the General Fund and $64,802,679 in the Crime
Control and Prevention District Fund by fiscal year end, which matches original estimates in the
FY2016 adopted budget.
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9874 (Revised)
To the Mayor and Members of the City Council April 12, 2016
Page 3 of 3
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SUBJECT: February 2016 - Sales Tax Update
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The chart below indicates how current year sales tax collections in Fort Worth and other select cities
in the state compare to FY2016 collections for the same period.
CITIES COMPARISON
FY2016 vs. FY2015
City 1st Quarter January February YTD
GRAND PRAIRIE 6.7% 18.3% 18.0% 10.7%
GARLAND 5.7% 10.8% 26.0% 10.1 %
AUSTI N 4.3% 7.7% 8.3% 5.6%
MCKI NNEY 6.4% (12.2%) 15.4% 4.6%
ARLINGTON 3.7% 1 .7% 10.4% 4.4%
DALLAS 2.2% 6.2% 7.8% 3.9%
1 RVI NG 1 .8% 5.8% 3.0% 2.7%
SAN ANTONIO 2.6% 0.6% 1 .7% 2.1 %
FORT WORTH 2.0% (4.9%) 9.5% 2.0%
EL PASO 0.3% 5.0% 2.8% 1 .6%
PLANO (3.5%) 3.5% (6.9%) (2.9%)
FRISCO (6.2%) (5.4%) (1 .1 %) (5.2%)
HOUSTON (5.7%) (7.5%) (2.5%) (5.5%)
STATE TOTAL (3.3%) (3.9%) (6.8%) (4.1 %)
Budget staff is currently compiling and analyzing historical sales tax data by industry. This analysis
will be included in future sales tax update IR's.
If you have any questions, please call Aaron Bovos, Chief Financial Officer, at 817-392-8517.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS