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Home My WebLink AboutIR 10060 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10060 To the Mayor and Members of the City Council October 24, 2017 Page 1 of 4 SUBJECT: AUGUST 2017 - SALES TAX UPDATE 01 r rA re�a 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 August 2017 (Fiscal Year 2017, Period 11) collection results on October 11th, 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. AUGUST NET SALES TAX COLLECTIONS (10-YEAR HISTORY C O =r"1 11 2'=')`__' _'2r1ll_I FY2ri11 -'r 2i 12 =y2i_11, F'r'2ia14 =Y2 iL1, i '_1l' =Y2i117 The City's net sales tax collection is up $811,658 or 7.3%, compared to the same month last year. As depicted in the table below, the City experienced $703,181 or a 6.3% increase when compared to last year's collections for the same month. Current period collections include only transactions that occurred within the month, so this number reflects pure economic activity. COLLECTION DETAIL FOR CITY SALE TAX Collection Detail for City Sales Tax August 16 August 17 Variance ($) Variance (%) Current Period Collections $11,185,071 $11,888,252 $703,181 6.3% - Other Collections 368,807 122,443 (246,364) Audit Adjustments (267,091) 101,408 368,499 138.0% Service Fee (225,736) (242,242) (16,506) 7.3% Retainage (6,236) (3,388) 2,848 (45.7%) Net Collections $11,054,815 $11,866,474 $811,658 7.3%Q *OTHER COLLECTIONS ARE PAYMENTS ATTRIBUTED TO PRIOR PERIOD COLLECTIONS,FUTURE PERIOD COLLECTIONS AND UNIDENTIFIED COLLECTIONS. (AUDIT ADJUSTMENTS MAY FLUCTUATE BASED UPON RESULTS OF TAXPAYER SALES TAX AUDITS CONDUCTED BY THE STATE OF TEXAS.) CURRENT PERIOD COLLECTIONS Change Compared to Same Month in Prior Year 12.0% 11.8% 10.2% 10.3% 7.1% 7.5% 7.7% 8.4% ° 6.3/° 3.4% 0 2.3% .I.. on... Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10060 To the Mayor and Members of the City Council October 24, 2017 Page 2 of 4 eirAl SUBJECT: AUGUST 2017 — SALES TAX UPDATE 01 re�a The City's General Fund sales tax collections year-to-date are 105% of the budget year-to-date, and 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 104% of the budget year-to-date, and 108% of the year-to-date total for the same period last year. CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON Budget as of Current Receipts FY2016 Receipts CITY OF FORT WORTH Period 11 Through Period 11 Through Period 11 GENERAL FUND $126,932,414 $133,788,849 $124,897,306 CRIME CONTROL AND PREVENTION DISTRICT 60,900,562 63,531,593 59,086,786 TOTAL $187,832,976 $197,320,442 $183,984,092 CITY OF FORT WORTH BUDGET COMPARISON— FY2017 Projected Variance to Amended Adopted Amended Fiscal Year Budget Budget Projections ($) (°/a) CITY OF FORT WORTH GENERAL FUND $140,468,044 $140,468,044 $147,211,000 $6,742,956 4.8% CRIME CONTROL&PREVENTION DISTRICT $67,394,786 $67,394,786 $70,218,000 $2,823,214 4.2% The City anticipates collecting $147,211,000 by fiscal year end in the General Fund, which exceeds original estimates in the FY2017 adopted budget by $6,742,956. (Intentionally left blank) ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10060 To the Mayor and Members of the City Council October 24, 2017 Page 3 of 4 eirAl SUBJECT: AUGUST 2017 - SALES TAX UPDATE 01 re�a 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 3rd Quarter August YTD FRISCO 7.6% 8.9% 8.3% 7.3% 8.4% MCKI NNEY 9.7% 14.1% 5.2% (0.5%) 7.9% FORT WORTH 6.9% 8.7% 5.2% 7.3% 7.1% GRAND PRAIRIE 11 .1 % 2.7% 5.3% 5.5% 6.1% PLANO 0.3% 9.3% 1 .1% 5.2% 3.9% DALLAS 4.3% 4.2% 2.6% 2.7% 3.8% AUSTI N 4.5% 4.8% (0.9%) 5.4% 3.3% ARLINGTON 2.1% 5.0% 1 .7% 2.2% 3.1% SAN ANTONIO 1 .8% 3.5% 3.4% (3.6%) 2.8% 1 RVI NG 2.8% 15.5% (8.9%) (1.7%) 2.4% EL PASO 3.9% 0.5% 1 .6% 5.2% 2.3% HOUSTON (5.8%) 3.5% 0.8% (3.9%) (0.9%) GARLAND 8.8% (15.1%) 1 .2% 4.4% (1 .2%) STATE TOTAL 0.6% 2.2% 5.5% (0.9%) 2.9% 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. 10060 To the Mayor and Members of the City Council October 24, 2017 Page 4 of 4 eirAl SUBJECT: AUGUST 2017 — SALES TAX UPDATE 01 1@7'3 SALES TAX REVENUE BY INDUSTRY FOR PERIOD 11 a ACCOMMODATION r p-Surn of TOTAL TAX AND FOOD SERVICES Ir AMOUNT t 1 kTOTALTAX AMOUNT i TRADE TRANSPORTATION ARTS, AND WAREHOUSING ENTERTAINMENT, 1% AND RECREATION 1% FINANCE AND 2017-10 of • INSURANCE OTHER SERVICESTAX AMOUNT 1% (EXCEPT PUBLIC MANUFACTURING ADMINISTRATION) 2017-1.0- 2% sum of PROFESSIONAL,SCIENTIFIC, TOTAL TAX AND TECHNICAL SERVICES REALESTATEAND—/ AMOUNT 3% RENTAL AND LEASING INFORMATION 3% ADMINISTRATIVE AND SUPPORT jjjjjjjjjjj&hhW210_ AND WASTE MANAGEMENT AND 2017-iC-Sum of TOTAL CONSTRUCTION REMEDIATION SERVICES TAX AMOUNT UTILITIES 696 3% 5%5% Source: Industry Report,Texas Comptroller of Public Accounts There are five industries that comprise the largest portion (75%) of the City's sales tax revenue in FY2017 for period 11. 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