HomeMy WebLinkAboutIR 9968 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9968
To the Mayor and Members of the City Council December 6, 2016
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SUBJECT: SEPTEMBER 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 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
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*a SUBJECT: SEPTEMBER 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 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.
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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
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*a SUBJECT: SEPTEMBER 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 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%)
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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
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*a SUBJECT: SEPTEMBER 2016 — SALES TAX UPDATE
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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