HomeMy WebLinkAboutIR 9921 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9921
To the Mayor and Members of the City Council August 16, 2016
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SUBJECT: JUNE 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 June 2016 (Fiscal
Year 2016, Period 9) collection results on August 10th- 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.
JUNE NET SALES TAX COLLECTIONS (10-YEAR HISTORY
0
FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
The City's net sales tax collection is up $1,189,088 or 9.6%, compared to the same month last year.
As depicted in the table below, the City experienced $918,785 or a 7.4% increase when compared to
last year's collections for the same month. Current period collections include only transactions that
occurred within the month, so this number reflects pure economic activity.
COLLECTION DETAIL FOR CITY SALES TAX
June 16 June 16 Variance ($) Variance (%)
Current Period Collections $12,444,124 $13,362,909 $918,785 7.4%
Other Collections 231,193 248,715 17,522 7.6%
Audit Collections' (6,071) 266,468 272,539 4489.1%
Service Fee (253,385) (277,562) (24,177) (9.5%)
Retainage (56,604) (52,185) 4,419 7.8%
Net Collections $12,369,267 $13,648,346 $1,189,088 9.6%
'AUDIT COLLECTIONS INCLUDE AUDIT MONEY,BOTH POSITIVE AND NEGATIVE PAYMENTS,THAT HAVE PROCESSED DURING THIS ALLOCATION PERIOD.
CURRENT PERIOD COLLECTIONS
Change Compared to Same Month in Prior Year
13.3% 14.3%
5.9°I° ° 7.4°I°
3.9°1° 1.9% 3.8% 5.1%
0.2% 0.1°/° 1.51.
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
(1.2)°1°
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9921
To the Mayor and Members of the City Council August 16, 2016
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*a SUBJECT: JUNE 2016 — SALES TAX UPDATE
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The City's Sales Tax collections year-to-date are around ±2% of the budget year-to-date, and are
slightly higher than 4% 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 9 Period 9 Period 9
GENERAL FUND $100,827,733 $103,036,201 $98,827,545
CRIME CONTROL AND PREVENTION DISTRICT 48,375,868 48,693,581 46,216,736
TOTAL $149,203,601 $151,729,782 $145,044,281
CITY OF FORT WORTH FISCAL YEAR COMPARISON — FY2016
Projected
Variance to Amended
Adopted Amended Fiscal Year
Budget Budget Projections M (%)
CITY OF FORT WORTH
GENERAL FUND $135,065,427 $135,065,427 $137,273,895 $2,208,468 1.6%
CRIME CONTROL AND PREVENTION DISTRICT $64,802,679 $64,802,679 $65,120,392 $317,713 0.5%
FORT WORTH TRANSPORTATION AUTHORITY $67,857,000 $67,857,000 $68,505,735 $648,735 1.0%
The City anticipates collecting $137,273,895 in the General Fund by fiscal year end, exceeding
original estimates in the FY2016 adopted budget by 1.6%. Also, the City anticipates collecting
$65,120,392 for CCPD by fiscal year end, exceeding original estimates by 0.5% and $68,505,735 for
the T, exceeding original estimates by 1.0%. While these results are encouraging, staff recommends
maintaining a conservative forecast as we continue to experience uncertainty with the national
economy and potential audit adjustments from the Comptroller's Office.
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9921
To the Mayor and Members of the City Council August 16, 2016
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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 2nd Quarter 3rd Quarter YTD
GARLAND 5.7% 33.2% 11 .4% 16.4%
GRAND PRAIRIE 6.7% 13.7% 5.6% 8.5%
MCKI NNEY 6.4% 4.0% 10.5% 7.1 %
AUSTI N 4.3% 4.6% 7.6% 5.5%
1 RVI NG 1 .8% (6.4%) 19.1 % 4.5%
ARLINGTON 3.7% 4.2% 5.6% 4.5%
FORT WORTH 2.0% 2.7% 8.2% 4.3%
DALLAS 2.2% 5.1 % 2.6% 3.3%
SAN ANTONIO 2.6% 2.1 % 1 .5% 2.1 %
EL PASO 0.3% 3.2% 2.1 % 1 .8%
PLANO (3.5%) (4.0%) 7.8% (0.1 %)
FRISCO (6.2%) (2.6%) (2.8%) (3.9%)
HOUSTON (5.7%) (4.8%) (3.6%) (4.7%)
STATE TOTAL (3.3%) (3.1 %) (1 .8%) (2.7%)
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9921
To the Mayor and Members of the City Council August 16, 2016
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SALES TAX REVENUE BY INDUSTRY THROUGH PERIOD 8
TRADE,RETAIL • •.A •
••.SERVICES,11%
OTHER SERVICES(EXCEPT
PUBLIC ADMINISTRATION),2%
WHOLESALE TRADE,11%,
ADMINISTRATIVE,SUPPORT,&\
WASTE MANAGEMENT AND
REMEDIATION SERVICES,2%
REAL ESTATE AND RENTAL AND
LEASING,3% INFORMATION •'•
UTILITIES,3%-
PROFESSIONAL,SCIENTIFIC,AND
TECHNICAL SERVICES,3%
CONSTRUCTION,5%-----
ALL OTHER,6%
There are five industries that comprise the largest portion (75%) of the City's sales tax revenue in
FY2016 through period 8. The reporting by industry is released later and period 9 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 Terry Hanson, Assistant Director of Budget and Analysis, at
817-392-7934.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS