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HomeMy WebLinkAboutIR 9400To the Mayor and Members of the City Council July 12, 2011 'NA Page 1 of 2 r (L'V)SUBJECT: JULY 2011 — SALES TAX UPDATE i� '073 In response to the volatile nature of sales tax revenue, the Staff is committed to providing you a brief update of the sales tax collections. The Texas Comptroller's Office posted results on July 7th. The results are dependent upon the timeliness and accuracy of sales tax payers' returns. This payment from the State represents taxes collected on sales that occurred primarily in the month of May. In this report, you will see our sales tax collection compared to last year and the impact on the current year's budget. MONTHLY SALES TAX COLLECTIONS FOR MAY CITY OF FORT WORTH MAY FY2011 $ 6,964,832 DOLLAR VARIANCE % VARIANCE MAY FY2010 $ 7,316,483 ($351,651) -4.81 % 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Note: Chart is based on the City's one -cent sales tax collection only. Note: The City's May sales tax collections were down $351,651 compared to last year. The City has had single audit adjustments over the last three reported months. According to the Comptroller's office, an entity filed a refund for taxes paid on tax exempt equipment and received a credit of $1.1 M in March, $1.4M in April, and $907K for the current month. The refunds stemmed from an audit that occurred in different time periods and the credit was granted after a declared legal judgment. Although this is an unusual event, the Comptroller has informed Staff that additional adjustments should be expected. October November December January February March April May City Sales Tax Trend: Variance for the most recent months vs. same period last year Note: As you can see, "Current Period" collections have a positive trend signaling continued sales tax improvement. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS COLLECTION DETAIL FOR CITY SALES TAX MAY 2010 MAY 2011 CHANGE Current Period Collections: $ 7,490,064 $ 7,892,093 5.37% Other Collections: 75,117 131,423 74.96% Audit Collections: (109,389) (907,196) 729.33% Service Fee: (149,116) (142,326) -4.55% Retainage: 9,807 (9,162) - 193.42% Net Payment $ 7,316,483 $ 6,964,832 -4.81% Current Period Collections: q , Y October November December January February March April May City Sales Tax Trend: Variance for the most recent months vs. same period last year Note: As you can see, "Current Period" collections have a positive trend signaling continued sales tax improvement. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9400 &_ ' � S�Q To the Mayor and Members of the City Council July 12, 2011 r Page 2 of 2 SUBJECT: JULY 2011 - SALES TAX UPDATE CITY OF FORT WORTH BUDGET COMPARISON - FY2011 YTD YTD YTD APRIL BUDGET ACTUAL VARIANCE 14.02% CITY OF FORT WORTH $ 62,405,447 $ 64,804,186 3.84% 10.05% CRIME CONTROL AND PREVENTION DIST. $ 27,356,606 $ 30,131,150 10.14% t` MASS TRANSIT AUTHORITY - THE "T" $ 29,503,378 $ 32,177,482 9.06% 2.15% ADOPTED BUDGET YR END APRIL BUDGET RE- ESTIMATE VARIANCE 14.02% CITY OF FORT WORTH $ 96,351,438 $ 98,750,176 2.49% 10.05% CRIME CONTROL AND PREVENTION DIST. $ 42,237,472 $ 45,012,016 6.57% 9.60% MASS TRANSIT AUTHORITY - THE "T" $ 45,552,000 $ 48,226,104 5.87% 2.15% Note: Although the City has lost approximately $3.4M in audit adjustments from prior periods, collections total $2,398,738 more than budget. Staff recommends maintaining a conservative forecast, due to additional audit adjustments by the Comptroller. The following chart demonstrates how our trend compares to the state and other cities: CITY OF FORT WORTH CITY COMPARISONS - FY 2011 v. FY 2010 CITY QTR 1 QTR 2 APRIL MAY YTD BURLESON 14.02% -1.10% -1.96% 43.25% 10.05% GRAPEVINE 13.59% 3.00% 9.60% 10.65% 8.84% SOUTHLAKE 2.15% 8.00% 4.40% 10.60% 5.38% E ULE SS 7.28% 6.60% 2.25% -1.02% 5.33% HURST 6.62% 2.80% 8.76% 1.66% 4.94% DALLAS 3.59% 4.70% 3.23% 5.01% 4.13% ARLINGTON 8.10% 0.50% -1.68% 4.67% 3.61% WATAUGA 6.13% 0.40% 1.63% 3.80% 3.19% FORT WORTH 9.29% 0.90% - 1619% - 4.81 % 1.44% NORTH RICHLAND HILLS 5.27% -3.00% - 2.11% 176% 0.90% KELLER 2.81% -2.40% 6.81% -8.56% -0.10% GRAND PRAIRIE -6.73% - 2.70% 2.03% 4.05% - 2.88% BEDFORD -0.61% -7.90% -3.11% - 11.44% -5.06% STATE TOTAL 8.26% 10.00% 11.39% 9.95% 9.53% Note: YTD collections for Fort Worth are up 1.44% compared to last year. Again, hopefully you find this additional information helpful. If you have any questions, please call Horatio Porter, Budget Officer, at 817.392.2379. { `,.Tom Higgins " Interim City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS