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HomeMy WebLinkAboutIR 9885 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9885 To the Mayor and Members of the City Council May 17, 2016 OX Page 1 of 4 SUBJECT: MARCH 2016 — SALES TAX UPDATE Y073 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 March 2016 (Fiscal Year 2016, Period 6) collection results on May 11th. 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. MARCH NET SALES TAX COLLECTIONS (10-YEAR HISTORY 0 o 9 $10.2 $9.9 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 The City's net sales tax collection is up $505,609 or 4.0%, compared to the same month last year. As depicted in the table below, the City experienced $649,331 or a 5.1% increase when compared to last year's collections for the same month. Current period collections include only transactions that occurred within the month, so this number reflects pure economic activity. COLLECTION DETAIL FOR CITY SALES TAX March 16 March 16 Variance ($) Variance (%) Current Period Collections $12,658,142 $13,307,473 $649,331 5.1% Other Collections*** 125,612 93,168 (32,444) (25.8%) Audit Collections 250,905 141,860 (109,045) (43.5%) Service Fee (260,693) (270,850) (10,157) (3.9%) Retainage (74,474) (66,550) 7,924 10.6% Net Collections $12,699,492 $13,206,102 $606,609 4.0% ***OTHER COLLECTIONS ARE PAYMENTS ATTRIBUTED TO PRIOR PERIOD COLLECTIONS, FUTURE PERIOD COLLECTIONS AND UNIDENTIFIED COLLECTIONS.FOR MARCH 2015,OTHER COLLECTIONS WERE HIGH DUE TO PRIOR PERIOD COLLECTIONS.OTHER COLLECTIONS FOR MARCH 2016 ARE LOWER DUE TO REDUCED AMOUNTS RECEIVED FOR PRIOR PERIOD COLLECTIONS COMPARED TO MARCH 2015. CURRENT PERIOD COLLECTIONS Change Compared to Same Month in Prior Year 5.9% 5.5% 5.1% 3.9% 3.9% 3.8% 1.9°/0 0.70%. 0.90% 0 2°Io 0.1% Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 C_ Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 (1.2)% ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9885 To the Mayor and Members of the City Council May 17, 2016 h�T�i7 Page 2 of 4 �i �i7 Y *a SUBJECT: MARCH 2016 — SALES TAX UPDATE #qrF rn 10,?5 The City's Sales Tax collections year-to-date are around ±1% of the budget year-to-date, and are slightly higher than 2% of the year-to-date total for the same period last year. CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON Current FY2015 Receipts Receipts Budget as of Through Through CITY OF FORT WORTH Period 6 Period 6 Period 6 GENERAL FUND $67,465,149 $68,148,765 $66,569,901 CRIME CONTROL AND PREVENTION DISTRICT 32,368,923 32,010,827 31,040,264 TOTAL $99,834,072 $100,159,592 $97,610,166 CITY OF FORT WORTH FISCAL YEAR COMPARISON — FY2016 Projected Adopted Amended Fiscal Year Variance to Amended Budget Budget Projections M (%) 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. (Intentionally left blank) ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9885 To the Mayor and Members of the City Council May 17, 2016 h�T�i7 Page 3 of 4 �i �i7 Y *a SUBJECT: MARCH 2016 - SALES TAX UPDATE #qtF rn Y0,?5 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 1 st Quarter 2nd Quarter March YTD GARLAND 5.7% 33.2% 53.4% 18.9% GRAND PRAIRIE 6.7% 13.7% 7.5% 10.1 % MCKI NNEY 6.4% 4.0% 8.1 % 5.3% AUSTI N 4.3% 4.6% (0.4%) 4.4% ARLINGTON 3.7% 4.2% 1 .9% 3.9% DALLAS 2.2% 5.1 % 2.3% 3.6% SAN ANTONIO 2.6% 2.1 % 3.5% 2.4% FORT WORTH 2.0% 2.7% 4.0% 2.4% EL PASO 0.3% 3.2% 2.1 % 1 .7% 1 RVI NG 1 .8% (6.4%) (22.6%) (2.1 %) PLANO (3.5%) (4.0%) (7.0%) (3.7%) FRISCO (6.2%) (2.6%) (1 .3%) (4.5%) HOUSTON (5.7%) (4.8%) (4.2%) (5.3%) STATE TOTAL (3.3%) (3.1 %) 2.1 % (3.2%) (Intentionally left blank) ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9885 To the Mayor and Members of the City Council May 17, 2016 h�T�i7 Page 4 of 4 �i �i7 Y *a SUBJECT: MARCH 2016 — SALES TAX UPDATE #qrF rn f e'?5 Sales Tax Revenue by Industry Through Period 5 MANUFACTURING N. • _CONSTRUCTION • 5% PROFESSIONAL,SCIENTIFIC,AND TECHNICAL SERVICES 4% F•., REAL ESTATE AND RENTAL AND LEASING 396 ' ADMINISTRATIVE AND SUPPORT AND WASTE MANAGEMENT AND REMEDIATION SERVICES RETAIL TRADE ALL OTHER 3% ' -OTHER SERVICES(EXCEPT PUBLIC ■ ADMINISTRATION) 6hhh.., 2% There are six industries that comprise the largest portion (78%) of the City's sales tax revenue in FY2016 through period 5. The reporting by industry is released later and period 6 data is currently not available. Budget staff is currently preparing comparative historical trend analysis. This information will be shared 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