HomeMy WebLinkAboutIR 9908 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9908
To the Mayor and Members of the City Council August 2, 2016
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SUBJECT: MAY 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 May 2016 (Fiscal
Year 2016, Period 8) collection results on July 13th. 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.
MAY NET SALES TAX COLLECTIONS (10-YEAR HISTORY)
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FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2015
The City's net sales tax collection is up $1,378,571 or 14.4%, compared to the same month last year.
As depicted in the table below, the City experienced $1,381,751 or a 14.3% increase when compared
to last year's collections for the same month. Current period collections include only transactions that
occurred within the month, so this number reflects pure economic activity.
COLLECTION DETAIL FOR CITY SALES TAX
Collection Detail for City Sales Tax
May 15 May 16 Variance($) Variance(%)
Current Period Collections $9,676,829 $11,058,579 $1,381,751 14.3%4
Other Collections 94,336 135,122 40,786 43.2%
Audit Collections 10,128 21,896 11,768 116.2%
Service Fee (195,626) (224,312) (28,686) (14.7%)
Retainage 13,266 (13,782) (27,047) (203.9%)
Net Collections $9,598,933 $10,977,504 $1,378,571 14.4%
CURRENT PERIOD COLLECTIONS
Change Compared to Same Month in Prior Year
13.3% 14.3%
5.9°!° 5.1%3.8%
In,= J1
Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16
(1.2)%
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9908
To the Mayor and Members of the City Council August 2, 2016
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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 3% 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 8 Period 8 Period 8
GENERAL FUND $88,197,467 $89,487,856 $86,468,288
CRIME CONTROL AND PREVENTION DISTRICT 42,316,026 42,275,475 40,545,455
TOTAL $130,513,493 $131,763,331 $127,013,743
CITY OF FORT WORTH FISCAL YEAR COMPARISON — FY2016
Projected
Variance to
Adopted Amended Fiscal Year Amended
Budget Budget Projections (%)
CITY OF FORT WORTH
GENERAL FUND $135,065,427 $135,065,427 $135,065,427 0.0%
CRIME CONTROL AND PREVENTION DISTRICT $64,802,679 $64,802,679 $64,802,679 0.0%
FORT WORTH TRANSPORTATION AUTHORITY $67,857,000 $67,857,000 $67,857,000 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. 9908
To the Mayor and Members of the City Council August 2, 2016
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*a SUBJECT: MAY 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 2nd Quarter May YTD
GARLAND 5.7% 33.2% 16.5% 17.6%
GRAND PRAIRIE 6.7% 13.7% 11 .5% 9.2%
MCKI NNEY 6.4% 4.0% 8.4% 5.9%
AUSTI N 4.3% 4.6% 4.5% 4.8%
DALLAS 2.2% 5.1 % 7.4% 3.7%
FORT WORTH 2.0% 2.7% 14.4% 3.5%
ARLINGTON 3.7% 4.2% 6.3% 3.5%
EL PASO 0.3% 3.2% 2.8% 2.2%
1 RVI NG 1 .8% (6.4%) 11 .4% 1 .8%
SAN ANTONIO 2.6% 2.1 % 4.0% 1 .8%
PLANO (3.5%) (4.0%) 4.6% (2.4%)
HOUSTON (5.7%) (4.8%) (4.6%) (4.8%)
FRISCO (6.2%) (2.6%) 1 .8% (5.0%)
STATE TOTAL (3.3%) (3.1 %) (7.1 %) (3.0%)
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9908
To the Mayor and Members of the City Council August 2, 2016
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*a SUBJECT: MAY 2016 — SALES TAX UPDATE
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SALES TAX REVENUE BY INDUSTRY THROUGH PERIOD 7
TRADE,
ACCOMMODATION AND FOOD
OTHER SERVICES(EXCEPT PUBLIC,
ADMINISTRATION),2%
WHOLESALETRADE, 11%
PROFESSIONAL,SCIENTIFIC,AND�
TECHNICAL SERVICES,3% PF
ADMINISTRATIVE,SUPPORT,&--_
WASTE MANAGEMENTAND
REMEDIATION SERVICES,3%
INFORMATI• 1
REAL ESTATE AND RENTALAND-----��
LEASING,3%
UTILITIES,4%--
CONSTRUCTION,5%
ALLOTHER,5%--
There are five industries that comprise the largest portion (75%) of the City's sales tax revenue in
FY2016 through period 7. The reporting by industry is released later and period 8 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