HomeMy WebLinkAboutIR 9272 INFORMAL REPORT TO CITY COUNCIL MEMBERS No.9272
To the Mayor and Members of the City Council July 13, 2010
Page 1 of 2
SUBJECT: MAY 2010 — SALES TAX UPDATE
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 July 8th. Sales tax
reporting experiences a two month lag and this July report reflects taxes that were collected in May.
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
May May Favorable
2010 2009 Var % Var
Sales Tax Revenue $7,316,483 $7,122,838 $193,645 2.7%
Note: For the third consecutive month, the City's sales tax collections were higher than the previous
year. May collections were $193,645 more than last year. It appears the retrenchment of sales tax
revenue has subsided. We are encouraged by the May results as they are better than expected and
could positively impact next year's sales tax projections.
City of Fort Worth
Budget Comparison
May YTD FY2010
Budget $65,090,419 Budget $98,866,421
Actual $ Var % Var Reestimate $ Var % Var
$63,886,021 ($1,204,398) -1.99% $97,076,732 ($1,789,689)
Note: Through the first eight months of the year; the City collected $1,204,398 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 No.9272
To the Mayor and Members of the City Council July 13, 2010
Page 2 of 2
SUBJECT: MAY 2010 - SALES.TAX UPDATE
City of Fort Worth
City Comparisons
FY10 vs. FY09
CITY QTR 1 QTR 2 APRIL MAY YTD
WATAUGA -3.4% 6.9% 4.9% 15.1% 3.1%
ARLINGTON -1.6% 6.8% 5.4% -1.0% 2.4%
BEDFORD -2.1% 2.2% 2.9% 7.8% 2.0%
NORTH RICHLAND HILLS 4.6% 5.0% -1.6% 10.6% 0.9%
GRAPEVINE -0.3% 2.2% -8.3% 1.9% -0.1%
SOUTHLAKE -3.4% 0.5% -6.3% 6.1% -1.7%
GRAND PRAIRIE 0.8% -7.3% -3.3% 9.6% -1.9%
KELLER -9.0% 4.7% -9.0% 9.6% -2.0%
BURLESON -6.5% -1.3% -2.3% 10.5% -2.2%
DALLAS -9.7% 0.7% -3.8% 6.4% -3.5%
HURST -8.4% 0.4% -2.1% 2.2% -3.6%
EULESS -14.4% -5.5% 7.0% 11.3% -6.0%
STATE AVG -13.0% -10.5% 1.4% 0.1% -8.8%
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 but
again the May collections suggests the worst may be behind us.
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.
D A. Fisseler, P.E.
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS