HomeMy WebLinkAboutIR 9945 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9945
To the Mayor and Members of the City Council October 18, 2016
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SUBJECT: August 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 August 2016 (Fiscal
Year 2016, Period 11) collection results on October 12t - 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.
AUGUST NET SALES TAX COLLECTIONS (10-YEAR HISTORY)
0
FY2007 FY2000 FY20M FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY201G
The City's net sales tax collection is up $890,871 or 8.8%, compared to the same month last year. As
depicted in the table below, the City experienced $1,075,085 or a 10.6% increase when compared to
last year's collections for the same month. Current period collections include only transactions that
occurred within the month, so this number reflects pure economic activity.
COLLECTION DETAIL FOR CITY SALES TAX
August 15 August 16 Variance ($) Variance (%)
Current Period Collections $10,109,986 $11,185,071 $1,075,085 10.6%
Other Collections 201,558 368,807 167,249 83.0%
Audit Adjustments 52,320 (267,091) (319,411) (610.5%)
Service Fee (207,277) (225,736) (18,458) (8.9%)
Retainage 7,357 (6,236) (13,593) (184.8%)
Net Collections $10,163,944 $11,054,815 $890,871 8.8%
CURRENT PERIOD COLLECTIONS
Change Compared to Same Month in Prior Year
13.3% 14.3%
10.6%
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9945
To the Mayor and Members of the City Council October 18, 2016
Page 2 of 4
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SUBJECT: August 2016 — Sales Tax Update
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The City's Sales Tax collections year-to-date are approximately 102% of the budget year-to-date, and
are slightly higher than 104% 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 11 Period 11 Period 11
GENERAL FUND $121,925,251 $124,897,306 $119,553,774
CRIME CONTROL AND PREVENTION DISTRICT 58,498,189 59,086,786 56,007,502
TOTAL $180,423,441 $183,984,092 $175,561,276
CITY OF FORT WORTH FISCAL YEAR COMPARISON — FY2016
Projected
Variance to Amended
Adopted Amended Fiscal Year
Budget Budget Projections M N
CITY OF FORT WORTH
GENERAL FUND $135,065,427 $135,065,427 $138,037,482 $2,972,055 2.2%
CRIME CONTROL AND PREVENTION DISTRICT $64,802,679 $64,802,679 $65,391,276 $588,597 0.9%
FORT WORTH TRANSPORTATION AUTHORITY $67,857,000 $67,857,000 $69,080,154 $1,223,154 1.8%
The City anticipates collecting $138,037,482 in the General Fund by fiscal year end, exceeding
original estimates in the FY2016 adopted budget by 2.2%. In addition, the City anticipates collecting
$65,391,276 for CCPD by fiscal year end, exceeding original estimates by 0.9% and $69,080,154 for
the T, exceeding original estimates by 1.8%. 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. 9945
To the Mayor and Members of the City Council October 18, 2016
Page 3 of 4
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SUBJECT: August 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 3rd Quarter August YTD
GARLAND 5.7% 33.2% 11 .4% 15.6% 16.0%
MCKINNEY 6.4% 4.0% 10.5% 21 .4% 8.6%
GRAND PRAIRIE 6.7% 13.7% 5.6% 8.6% 7.4%
AUSTIN 4.3% 4.6% 7.6% 4.3% 4.9%
ARLINGTON 3.7% 4.2% 5.6% 8.3% 4.6%
FORT WORTH 2.0% 2.7% 8.2% 8.8% 4.5%
DALLAS 2.2% 5.1% 2.6% 11 .5% 4.1%
SAN ANTONIO 2.6% 2.1% 1 .5% 13.9% 2.6%
I RVI NG 1 .8% (6.4%) 19.1% (6.2%) 2.6%
EL PASO 0.3% 3.2% 2.1% 3.5% 1 .8%
PLANO (3.5%) (4.0%) 7.8% 13.5% 1 .7%
HOUSTON (5.7%) (4.8%) (3.6%) (2.3%) (4.5%)
FRISCO (6.2%) (2.6%) (2.8%) (4.9%) (5.2%)
STATE TOTAL (3.3%) (3.1%) (1 .8%) (2.6%) (2.6%)
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9945
To the Mayor and Members of the City Council October 18, 2016
Page 4 of 4
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SUBJECT: August 2016 — Sales Tax Update
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10 7'3
SALES TAX REVENUE BY INDUSTRY THROUGH PERIOD 9
MMMINIPMr-4n
W 4b I I
1 ALL TRADF_34%
ACCOMMODATION O.D
OTHER SERWES(EXCEPT PUBLIC ADMINISTRATION), SERVIM ,
.T%
REAL ESTATE AND RENTAL AND tEAS►NG,3%
ADMINISTRATIVE,SUPPORT,a WASTE MANAGEMENT_-
AND RIM[DIA10N SERVICES,3%
PROF I ssHINAI,%I1 N TTI 11,IL 11[IINKAl%I RVIC 15,
4!6
UTILITIES,S%W—ad
ALL 011'1[ER,5% � -
t.ONSTRUCTIOM,S%–
There are five industries that comprise the largest portion (72%) of the City's sales tax revenue in
FY2016 through period 9. The reporting by industry is released later and period 10 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