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HomeMy WebLinkAboutIR 9968 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9968 To the Mayor and Members of the City Council December 6, 2016 OX,Fas +r Page 1 of 4 SUBJECT: SEPTEMBER 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 September 2016 (Fiscal Year 2016, Period 12) collection results on November 9t".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. SEPTEMBER NET SALES TAX COLLECTIONS (10-YEAR HISTORY 0 +.2 $10.5 $9.2 $10.11 4 FY20D7 FY2D08 FY2D09 FY2D10 FY2011 FY2D12 FY2013 FY2014 FY2015 FY2015 The City's net sales tax collection is up $739,426 or 6.0%, compared to the same month last year. As depicted in the table below, the City experienced $1,254,777 or a 10.2% increase when compared to last year's collections for the same month. Current period collections include only transactions that occurred within the month, so this number reflects pure economic activity. COLLECTION DETAIL FOR CITY SALES TAX September 15 September 16 Variance ($) Variance (%) Current Period Collections $12,355,153 $13,609,930 $1,254,777 10.2% Q Other Collections— 111,882 (300,964) (412,846) (369.0%) Audit Adjustments 78,070 (12,782) (90,852) (116.4%) Service Fee (250,902) (265,924) (15,022) (6.0%) Retainage (42,752) (39,384) 3,368 7.9% Net Collections $12,251,451 $12,990,877 $739,426 6.0%Q ***OTHER COLLECTIONS ARE PAYMENTS ATTRIBUTED TO PRIOR PERIOD COLLECTIONS, FUTURE PERIOD COLLECTIONS AND UNIDENTIFIED COLLECTIONS.FOR SEPTEMBER 2015,OTHER COLLECTIONS WERE HIGH DUE TO PRIOR PERIOD COLLECTIONS.OTHER COLLECTIONS FOR SEPTEMBER 2016 ARE LOWER DUE TO REDUCED AMOUNTS RECEIVED FOR PRIOR PERIOD COLLECTIONS COMPARED TO SEPTEMBER 2015. CURRENT PERIOD COLLECTIONS Change Compared to Same Month in Prior Year 13.3% 14.3% 10.6% 10.2°x° ° 3.8°I° 5.1% 1.9 I° Oct-15 Nov-15 Deo-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 (1.2)°1° ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9968 To the Mayor and Members of the City Council December 6, 2016 r� Page 2 of 4 �i {i7 Y *a SUBJECT: SEPTEMBER 2016 — SALES TAX UPDATE #qrF rn 10,?5 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 12 Period 12 Period 12 GENERAL FUND $135,065,427 $137,888,183 $131,805,225 CRIME CONTROL AND PREVENTION DISTRICT 64,802,679 64,973,820 61,506,561 TOTAL $199,868,106 $202,862,003 $193,311,786 CITY OF FORT WORTH FISCAL YEAR COMPARISON — FY2016 Projected Adopted Amended Final Fiscal Variance to Amended Budget Budget Year Totals l$) %� CITY OF FORT WORTH GENERAL FUND $135,065,427 $135,065,427 $137,888,183 $2,822,756 2.1% CRIME CONTROL AND PREVENTION DISTRICT $64,802,679 $64,802,679 $64,973,820 $171,141 0.3% FORT WORTH TRANSPORTATION AUTHORITY $67,857,000 $67,857,000 $68,667,315 $810,315 1.2% The City collected $137,888,183 in the General Fund at the fiscal year end, exceeding original estimates in the FY2016 adopted budget by 2.1%. In addition, the City collected $64,973,820 for CCPD at the fiscal year end, exceeding original estimates by 0.3% and $68,667,315 for the T, exceeding original estimates by 1.2%. While these results are encouraging, staff recommends being mindful of potential audit adjustments from the Comptroller's Office. (Intentionally left blank) ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9968 To the Mayor and Members of the City Council December 6, 2016 h�T�i7 Page 3 of 4 �i {i7 Y *a SUBJECT: SEPTEMBER 2016 - SALES TAX UPDATE #qtF rn ye,?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 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter YTD GARLAND 5.7% 33.2% 11 .4% 11 .8% 15.2% MCKI NNEY 6.4% 4.0% 10.5% 11 .3% 8.1% GRAND PRAIRIE 6.7% 13.7% 5.6% 5.3% 7.6% FORT WORTH 2.0% 2.7% 8.2% 5.7% 4.6% ARLINGTON 3.7% 4.2% 5.6% 4.5% 4.5% AUSTIN 4.3% 4.6% 7.6% 1 .5% 4.5% DALLAS 2.2% 5.1% 2.6% 5.4% 3.8% SAN ANTONI O 2.6% 2.1% 1 .5% 4.4% 2.7% RVI NG 1 .8% (6.4%) 19.1% (2.9%) 2.6% PLANO (3.5%) (4.0%) 7.8% 10.5% 2.3% EL PASO 0.3% 3.2% 2.1% 2.2% 1 .9% HOUSTON (5.7%) (4.8%) (3.6%) (3.4%) (4.4%) FRISCO (6.2%) (2.6%) (2.8%) (8.4%) (5.1%) STATE TOTAL (3.3%) (3.1%) (1 .8%) (2.6%) (2.7%) (Intentionally left blank) ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9968 To the Mayor and Members of the City Council December 6, 2016 h�T�i7 Page 4 of 4 �i {i7 Y *a SUBJECT: SEPTEMBER 2016 — SALES TAX UPDATE #qrF rn 10 7'3 SALES TAX REVENUE BY INDUSTRY THROUGH PERIOD 10 WHOLESALE TRADE,11% OTHER SERVICES(EXCEPT PUBLIC ACC• .D •N AND •.D ADMINISTRATION),2% SERVICES,11% ALL OTHER,3% PROFESSIONAL,SCIENTIFIC,AND-A INFORMATION, •' TECHNICAL SERVICES,3% REAL ESTATE AND RENTAL AND LEASING,3% ADMINISTRATIVE,SUPPORT,& WASTE MANAGEMENT AND CONSTRUCTION, REMEDIATION SERVICES,3% There are five industries that comprise the largest portion (72%) of the City's sales tax revenue in FY2016 through period 10. The reporting by industry is released later and period 11 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