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HomeMy WebLinkAboutIR 10089 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10089 To the Mayor and Members of the City Council January 9, 2018 OX,Fas +r Page 1 of 4 SUBJECT: OCTOBER 2017 — SALES TAX UPDATE Ygg3 Sales tax revenue represents approximately twenty-two percent (22%) of the City's General Fund anticipated revenue in Fiscal Year 2018. 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 October 2017 (Fiscal Year 2018, Period 1) collection results on December 6t", 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. SEPTEMBER NET SALES TAX COLLECTIONS (10-YEAR HISTORY 0 0 FY2009 FY201D FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 The City's net sales tax collection is up $604,628 or 5.3%, compared to the same month last year. As depicted in the table below, the City experienced $480,488 or a 4.2% increase when compared to last year's collections for the same month. Current period collections include only transactions that occurred within the month, so this number reflects pure economic activity. COLLECTION DETAIL FOR CITY SALE TAX Collection Detail for City Sales Tax October 16 October 17 Variance ($) Variance (%) Current Period Collections $11,461,130 $11,941,617 $480,488 4.2% Other Collections 155,019 177,924 22,905 14.8% Audit Adjustments (32,146) 73,797 105,943 329.6% Service Fee (231,680) (243,867) (12,187) 5.3% Retainage 33,559 41,038 7,479 (22.3%) Net Collections $11,385,882 $11,990,509 $604,628 5.3% *NON-CURRENT COLLECTIONS ARE PAYMENTS ATTRIBUTED TO NON-CURRENT COLLECTIONS INCLUDING PRIOR PERIOD,FUTURE PERIOD 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 10.3% 7.1°I° 7.5°I° 7.7°I° 8.4°l° 3.4°I° 6.3°I° ° 4.2 I° 0.9°I° Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10089 To the Mayor and Members of the City Council January 9, 2018 h�T�i7 Page 2 of 4 �i {i7 Y *a SUBJECT: OCTOBER 2017 — SALES TAX UPDATE #qrF rn 10,?5 The City's General Fund sales tax collections as of FY2018 M1 are 102% to budget, and at 105% for the same period last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax collections as of FY2018 M1 are 103% to budget, and 106% for the same period last year. CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON Budget as of Current Receipts FY2017 Receipts CITY OF FORT WORTH Period 1 Through Period 1 Through Period 1 GENERAL FUND $11,699,537 $11,990,509 $11,385,882 CRIME CONTROL AND PREVENTION DISTRICT 5,580,504 5,767,415 5,457,806 TOTAL $17,280,041 $17,757,925 $16,843,687 CITY OF FORT WORTH BUDGET COMPARISON — FY2018 P roj a cte d Variance to Amended Adopted Amended Fiscal Year Budget Budget Projections ($) (%) CITY OF FORT WORTH GENERAL FUND $154,573,000 $154,573,000 $154,573,000 $0 0.0% CRIME CONTROL&PREVENTION DISTRICT $73,729,000 $73,729,000 $73,729,000 $0 0.0% The City anticipates collecting $154,573,000 by fiscal year end, which matches original estimates in the FY2018 adopted budget. (Intentionally left blank) ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10089 To the Mayor and Members of the City Council January 9, 2018 h�T�i7 Page 3 of 4 �i {i7 Y *a SUBJECT: OCTOBER 2017 — SALES TAX UPDATE #qtF rn ye,?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 FY2018 vs. FY2017 City October PLANO 121 .1% HOUSTON 117.6% FRISCO 111 .6% I RVI NG 111 .3% MCKI NNEY 110.1% DALLAS 106.0% FORT WORTH 105.3% SAN ANTONIO 104.2% AUSTIN 103.3% EL PASO 103.0% GRAND PRAIRIE 101 .8% GARLAND 101 .8% ARLINGTON 101 .7% STATE TOTAL 106.9% 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. 10089 To the Mayor and Members of the City Council January 9, 2018 h�T�i7 Page 4 of 4 �i {i7 Y *a SUBJECT: OCTOBER 2017 — SALES TAX UPDATE #qrF rn 10 7'3 SALES TAX REVENUE BY INDUSTRY FOR FY2017 HOLESALE 119E RETAIL TRA 35% OTHER_ 1% FINANCE AND INSURANCE_ - ARTS, ENTERTAINMENT,AND-1% RECREATION 196 TRANSPDRTATICaN AND I C47NSTRUCTION WAREHOUSING 1% ADMINISTRATIVE AND 5% OTHER SERVICES SUPPORTAND WASTE ^L PROFESSIONAL, REAL ESTATE AND RENTAL hIANAGEMENTAN[ AND LEASING (EXCEPT PUBLIC ?EMEDIATION SERVICES SCIENTIFIC,.AND S, ADMINISTRAT'O'V:i 3 TECHNICAL SERVICES 2°a 3% 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. 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