HomeMy WebLinkAboutIR 9291INFORMAL REPORT TO CITY COUNCIL MEMBERS No.9291
y To the Mayor and Members of the City Council August 17, 2010
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Page 1 of 2
SUBJECT: JUNE 2010 — SALES TAX UPDATE
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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 August 11th. Sales tax
reporting experiences a two month lag and this August report reflects taxes that were collected in June.
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
June June Unfavorable
2010 2009 Var % Var
Sales Tax Revenue $9,112,377 $9,503,414 ($391,037) -4.1%
Note: This month, the City's sales tax collections were lower than the previous year. June
collections were $391,037 less than last year. The last three months showed some improvement in
sales tax collections compared to the first five months of the fiscal year. However, it appears the
retrenchment of sales tax revenue has not ended.
City of Fort Worth
Budget Comparison
June YTD
Budget $74,593,833
Actual $ Var % Var
$72,998,398 ($1,595,436) -2.1 °%
FY2010
Budget $98,866,421
Reestimate $ Var Var
$96,685,695 ($2,180,727) -2.2
Note: Through the first nine months of the year; the City collected $1,595,436 less than budget. For
the full year staff still projects sales tax revenue will be less than the adopted budget.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
To the Mayor and Members of the City Council
a��Ti�RO
x SUBJECT: JUNE 2010 - SALES TAX UPDATE
No.9291
August 17, 2010
Page 2 of 2
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 moderating decline. Our YTD results of -3.5% are consistent with expectations. The
June collections suggest the worst is not behind us.
While this month's decline was worse than expected, it does not impact the FY2011 sales tax
revenue projection. The budget gap of $73m will not be affected by the results this month.
Staff will continue to monitor this volatile revenue source throughout the year. 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.
N
Dale A. 4FRIssel r, P.E.
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH. TEXAS
City of Fort Worth
City Comparisons
FY10 vs. FY09
CITY
QTR 1
QTR 2 APRIL
MAY
JUNE
YTD
WATAUGA
-3.4%
6.9%
4.9%
15.1%
9.3%
3.9%
ARLINGTON
-1.6%
6.8%
5.4%
-1.0%
4.3%
2.6%
NORTH RICHLAND HILLS
-4.6%
5.0%
-1.6%
10.6%
3.6%
1.2%
BEDFORD
-2.1%
2.2%
2.9%
7.8%
-5.2%
0.9%
SOUTHLAKE
-3.4%
0.5%
-6.3%
6.1%
15.6%
0.2%
GRAPEVINE
-0.3%
2.2%
-8.3%
1.9%
0.7%
0.0%
BURLESON
-6.5%
-1.3%
-2.3%
10.5%
9.5%
-0.7%
GRAND PRAIRIE
0.8%
-7.3%
-3.3%
9.6%
5.6%
-0.9%
KELLER
-9.0%
4.7%
-9.0%
9.6%
-3.4%
-2.2%
HURST
-8.4%
0.4%
-2.1%
2.2%
4.5%
-2.7%
DALLAS
-9.7%
0.7%
-3.8%
6.4%
1.6%
-2.9%
FQR RrTCa�
a -.4',
��_ ' . °ie
-I'' t
•3'
..
EULESS
-14.4%
-5.5%
7.0%
11.3%
4.9 %
-4.6 %
STATE AVG
-13.0%
-10.5%
1.4%
0.1%
2.2%
-7.7%
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 moderating decline. Our YTD results of -3.5% are consistent with expectations. The
June collections suggest the worst is not behind us.
While this month's decline was worse than expected, it does not impact the FY2011 sales tax
revenue projection. The budget gap of $73m will not be affected by the results this month.
Staff will continue to monitor this volatile revenue source throughout the year. 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.
N
Dale A. 4FRIssel r, P.E.
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH. TEXAS