HomeMy WebLinkAboutIR 9885 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9885
To the Mayor and Members of the City Council May 17, 2016
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SUBJECT: MARCH 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 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
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*a SUBJECT: MARCH 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 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.
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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
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*a SUBJECT: MARCH 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 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%)
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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
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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