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Home My WebLink AboutIR 10014 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10014 To the Mayor and Members of the City Council June 6, 2017 OX,Fas +r Page 1 of 4 SUBJECT: March 2017 — 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 March 2017 (Fiscal Year 2017, Period 6) collection results on May 10th, 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. MARCH NET SALES TAX COLLECTIONS (10-YEAR HISTORY tq C O = 1 1 1 1 1 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 The City's net sales tax collection is up $927,832 or 7.0%, compared to the same month last year. As depicted in the table below, the City experienced $939,020 or a 7.1% increase when compared to last year's collections for the same month. Current period collections include only transactions that occurred within the month, so this number reflects pure economic activity. COLLECTION DETAIL FOR CITY SALES TAX March 16 March 17 Variance($) Variance(%) Current Period Collections $13,307,473 $14,246,493 $939,020 7.1% Other Collections 93,168 166,120 72,952 78.3% Audit Adjustments 141,860 77,335 (64,525) (45.5%) Service Fee (270,850) (289,799) (18,949) 7.0% Retainage (66,550) (67,216) (666) 1.0% Net Collections $13,205,102 $14,132,933 $927,832 7.0% "OTHER COLLECTIONS ARE PAYMENTS ATTRIBUTED TO PRIOR PERIOD COLLECTIONS,FUTURE PERIOD COLLECTIONS AND UNIDENTIFIED COLLECTIONS. CURRENT PERIOD COLLECTIONS Change Compared to Same Month in Prior Year 14.3% 10.6% 10.2% 10.3%12.0% 11.8% 7.4% 7.1% 1.5% 3.4% 0.9% Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10014 To the Mayor and Members of the City Council June 6, 2017 h�T�i7 Page 2 of 4 �i {i7 Y SUBJECT: March 2017 — Sales Tax Update #qrF rn 10,?5 The City's General Fund sales tax collections year-to-date are 105% of the budget year-to-date, and higher than 108% 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 104% of the budget year-to- date, higher than 109% of the year-to-date total for the same period last year. CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON FY2016 Receipts Budget as of Current Receipts Through CITY OF FORT WORTH Period 6 Through Period 6 Period 6 GENERAL FUND $69,994,034 $73,466,813 $68,148,765 CRIME CONTROL AND PREVENTION DISTRICT 33,582,250 34,878,117 32,010,827 TOTAL $103,576,283 $108,344,930 $100,159,591 CITY OF FORT WORTH BUDGET COMPARISON — FY2017 Projected Adopted Amended Fiscal Year Variance to Amended Budget Budget Projections CITY OF FORT WORTH GENERAL FUND $140,468,044 $140,468,044 $145,196,257 $4,728,213 3.4% CRIME CONTROL& PREVENTION DISTRICT $67,394,786 $67,394,786 $69,578,406 $2,183,620 3.2% The City anticipates collecting $145,196,257 by fiscal year end in the General Fund, which exceeds original estimates in the FY2017 adopted budget by $4,728,213. (Intentionally left blank) ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10014 To the Mayor and Members of the City Council June 6, 2017 h�T�i7 Page 3 of 4 �i {i7 Y SUBJECT: March 2017 - Sales Tax Update #qrF rn f e'?5 The chart below indicates how current year sales tax net collections in Fort Worth and other select cities in the state compare to FY2016 collections for the same period. CITIES COMPARISON- NET COLLECTIONS FY2017 vs. FY2016 City 1st Quarter 2nd Quarter March YTD MCKINNEY 9.7% 14.1% 8.4% 11 .8% IRVING 2.8% 15.5% 42.0% 8.6% FRISCO 7.6% 8.9% 9.8% 8.2% FORT WORTH 6.9% 8.7% 7.0% 7.8% GRAND PRAIRIE 11 .1% 2.7% 6.7% 6.9% AUSTIN 4.5% 4.8% (2.5%) 4.6% PLANO 0.3% 9.3% 5.1% 4.6% DALLAS 4.3% 4.2% 3.2% 4.3% ARLINGTON 2.1% 5.0% 6.0% 3.5% SAN ANTONIO 1 .8% 3.5% 1 .4% 2.6% EL PASO 3.9% 0.5% (2.4%) 2.2% HOUSTON (5.8%) 3.5% (0.2%) (1 .4%) GARLAND 8.8% (15.1%) (32.5%) (4.0%) STATE TOTAL 0.6% 2.2% 3.0% 1.4% Source: Allocation Payment Detail and Monthly All Fund Revenue Report, Texas Comptroller of Public Accounts (Intentionally left blank) ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10014 To the Mayor and Members of the City Council June 6, 2017 h�T�i7 Page 4 of 4 �i {i7 Y SUBJECT: March 2017 — Sales Tax Update #qrF rn 10 7'3 SALES TAX REVENUE BY INDUSTRY FOR PERIOD 5 RETAIL TRADE ARTS,ENTERTAINMENT,AND RECREATION 1% WHOLESALE TRANSPORTATION AND WAREHOUSING 1% OTHER SERVICES(EXCEPT PUBLIC ADMINISTRATION) ACCOMMODATION AND FOOD 2% SERVICES PROFESSIONAL,SCIENTIFIC, AND TECHNICAL SERVICES 3% / ADMINISTRATIVE AND SUPPORT J AND WASTE MANAGEMENT AND REMEDIATION SERVICES INFORMATION 3% REAL ESTATE AND RENTAL AND LEASING MANUFACTURING 3% UTILITIES 4% Ah I bl� 1111111d CONSTRUCTION 5% Source: Industry Report, Texas Comptroller of Public Accounts There are five industries that comprise the largest portion (78%) of the City's sales tax revenue in FY2017 for period 5. This chart is typically one month in arrears due to availability of data. 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