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HomeMy WebLinkAboutIR 9331INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9331 To the Mayor and Members of the City Council November 16, 2010 ew,*-Page 1 of 2 SUBJECT: SEPTEMBER 2010 — SALES TAX UPDATE f a In response to the volatile nature of Sales Tax revenue, the Staff committed to providing you a brief update of the sales tax collections. The Texas Comptroller's Office posted results November 10th. Sales tax reporting experiences a two month lag and this November report reflects taxes that were collected in September. Beginning this fiscal year, we have revised this report in hopes of providing you more insightful information. You will see our sales tax collection compared to last year and the impact on the current year's budget. Additionally, we have included a historical comparison for neighboring cities. This chart demonstrates how our trend compares to others. City of Fort Worth Monthly Collections FYI 0 vs. FY09 September September Favorable 2010 2009 $ Var, % Var Sales Tax Revenue $10,139,875 $9,19806 $941,269 10.2% Note: This month, the City's sales tax collections were higher than the previous year. September collections were $941,269 more than last year. Recent sales tax collections demonstrate a moderate improvement compared to results from the beginning of the fiscal year. Further, this month illustrates that for FY2010 the City has experienced a recovery from the previous retrenchment of sales tax revenue collections. City of Fort Worth Budget Comparison Actual Adopted Favorable FY2010 FY2010 $ Var % Var Sales Tax Revenue $99,934,150 $98,866,421 $1,067,728 1.1% Note: The City has collected $1,067,728 more than budget. This final summation generates some optimism for this revenue source for FY2011. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9331 To the Mayor and Members of the City Council November 16, 2010 'artg Page 2 of 2 SUBJECT: SEPTEMBER 2010 - SALES TAX UPDATE ex .,,3 City of Fort Worth City Comparisons FY10 vs. FY09 CITY QTR 1 QTR 2 QTR 3 QTR 4 YTD WATAUGA -3.4% 6.9% 9.6% 8.2% 5.0% GRAPEVINE -0.3% 2.2% -1.8% 14.8% 3.6% NORTH RICHLAND HILLS -4.6% 5.0% 3.9% 9.9% 3.3% BURLESON -6.5% -1.3% 6.0% 14.5% 2.8% ARLINGTON -1.6% 6.8% 3.1% 0.7% 2.1% SOUTHLAKE -3.4% 0.5% 5.0% 7.4% 1.9% BEDFORD -2.1% 2.2% 0.9% 4.5% 1.8% FORT WORTH -7.6% -2.4% -0.1% 13.7% 0.6% GRAND PRAIRIE 0.8% -7.3% 3.9% 1.1% -0.4% KELLER -9.0% 4.7% -1.6% 2.8% -1.0% DALLAS -9.7% 0.7% 1.3% 4.8% -1.1% HURST -8.4% 0.4% 1.9% 1.9% -1.6% EULESS -14.4% -5.5% 7.4% 7.7% -1.7% STATE AVG -13.0% -10.5% 1.2% 3.1% -5.1% Note: The above chart shows the trend in sales tax revenue compared to other cities. For the first quarter of FY2010 the City experienced a -7.6% decline from FY2009, while the second quarter demonstrates a moderate decline. The third quarter shows a continued improvement. The final quarter of the year experienced a 13.7% increase from FY2009 which is indicative of the moderate growth in the economic environment and consumer confidence. Our YTD results of .6% are consistent with expectations. This is the final sales tax update for FY2010. Staff will continue to monitor this volatile revenue source. We will provide an update to the City Council on a monthly basis. Again, hopefully you find this additional information helpful. If you have any questions, please call Horatio Porter, Budget Officer, at 817.392.2379. e Fisseler, P.E. City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS