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HomeMy WebLinkAboutIR 9988 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9988 To the Mayor and Members of the City Council February 14, 2017 OX,Fas +r Page 1 of 4 SUBJECT: DECEMBER 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 2017. 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 December 2016 (Fiscal Year 2017, Period 3) collection results on February 8t", 2017. 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. DECEMBER NET SALES TAX COLLECTIONS (10-YEAR HISTORY V! C .2 $11.6 21771 1 1 1 1 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 The City's net sales tax collection is down $136,471 or 0.9%, compared to the same month last year. As depicted in the table below, the City experienced $141,585 or a 0.9% increase when compared to last year's collections for the same month. Current period collections include only transactions that occurred within the month, so this number reflects pure economic activity. COLLECTION DETAIL FOR CITY SALES TAX December 15 December 16 Variance($) Variance(%) Current Period Collections $15,035,973 $15,177,558 $141,585 0.9%4 Other Collections 318,526 144,330 (174,196) (54.7%) Audit Adjustments 104,016 (35,315) (139,332) (134.0%) Service Fee (309,170) (305,731) 3,439 1.1% Retainage (102,260) (70,228) 32,032 31.3% Net Collections $15,047,086 $14,910,614 ($136,471) (0.9%) *OTHER COLLECTIONS ARE PAYMENTS ATTRIBUTED TO PRIOR PERIOD COLLECTIONS,FUTURE PERIOD COLLECTIONS AND UNIDENTIFIED COLLECTIONS. FOR DECEMBER 2016,OTHER COLLECTIONS WERE DOWN DUE TO UNIDENTIFIED&FUTURE PERIOD COLLECTIONS NUMBERS COMING IN LOWER COMPARED TO DECEMBER OF 2015. CURRENT PERIOD COLLECTIONS Change Compared to Same Month in Prior Year 13.3% 14.3% ° 12.0% 10.6/° 10.2% 10.3% 5.1% 7.4% 1.5% 3.7% ONE 0.1% 0.9% Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9988 To the Mayor and Members of the City Council February 14, 2017 h�T�i7 Page 2 of 4 �i {i7 Y *a SUBJECT: DECEMBER 2016 — SALES TAX UPDATE #qrF rn 10,?5 The City's General Fund sales tax collections year-to-date are 104% of the budget year-to-date, and higher than 107% of the year-to-date total for the same period last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax collections year-to-date are 103% of the budget year-to- date, higher than 108% of the year-to-date total for the same period last year. CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON Current FY2016 Receipts Receipts Budget as of Through Through CITY OF FORT WORTH Period 3 Period 3 Period 3 GENERAL FUND $36,256,278 $37,763,606 $35,317,555 CRIME CONTROL AND PREVENTION DISTRICT 17,395,302 17,946,830 16,649,043 TOTAL $53,651,580 $55,710,436 $51,966,598 CITY OF FORT WORTH FISCAL YEAR COMPARISON — FY2017 P roj a cte d Variance to Amended Adopted Amended Fiscal Year Budget Budget Projections ($) (°/a) CITY OF FORT WORTH GENERAL FUND $140,468,044 $140,468,044 $140,468,044 $0 0.0% CRIME CONTROL AND PREVENTION DISTRICT $67,394,786 $67,394,786 $67,394,786 $0 0.0% FORT WORTH TRANSPORTATION AUTHORITY $70,979,000 $70,979,000 $70,979,000 $0 0.0% The City anticipates collecting $140,468,044 by fiscal year end, which matches original estimates in the FY2017 adopted budget. (Intentionally left blank) ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9988 To the Mayor and Members of the City Council February 14, 2017 h�T�i7 Page 3 of 4 �i {i7 Y *a SUBJECT: DECEMBER 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 FY2017 vs. FY2016 City December 1st Quarter GRAND PRAIRIE 11 .2% 11 .1 % MCKI NNEY 8.4% 9.7% IRVING 8.2% 2.8% FRISCO 8.0% 7.6% ARLINGTON 5.1% 2.1% PLANO 4.2% 0.3% GARLAND 2.6% 8.8% DALLAS 0.0% 4.3% AUSTIN (0.1%) 4.5% EL PASO (0.7%) 3.9% FORT WORTH (0.9%) 6.9% SAN ANTONIO (3.6%) 1 .8% HOUSTON (5.2%) (5.8%) STATE TOTAL 5.2% 0.9% (Intentionally left blank) ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9988 To the Mayor and Members of the City Council February 14, 2017 h�T�i7 Page 4 of 4 �i {i7 Y *a SUBJECT: DECEMBER 2016 — SALES TAX UPDATE #qrF rn 10 7'3 SALES TAX REVENUE BY INDUSTRY THROUGH PERIOD 2 RETAIL TRADE,34% UTILITIES,11% OTHER SERVICES(EXCEPT _- MANUFACTURING, 10% PUBLIC ADMINISTRATION),2%-,-' CONSTRUCTION,2%_ �r- ADMINISTRATIVE,SUPPORT, WHOLESALE TRADE,10% &WASTE MANAGEMENT AND REMEDIATION SERVICES,2% REAL ESTATE AND RENTAL AND LEASING,3% PROFESSIONAL,SCIENTIFIC,-/ INFORMATION,11 r AND TECHNICAL SERVICES,5% ALL OTHER,5% ACCOMMODATION AND FOOD SERVICES,9% There are five industries that comprise the largest portion (74%) of the City's sales tax revenue in FY2017 through period 2. 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