HomeMy WebLinkAboutIR 9258 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9258
To the Mayor and Members of the City Council JUNE 15, 2010
Page 1 of 2
• SUBJECT: APRIL 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 June 9th. Sales tax
reporting experiences a two month lag and this June report reflects taxes that were collected in April.
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
April April Favorable
2010 2009 Var % Var
Sales Tax Revenue $7,84111444 $7,6671,143 $174,301 2.3%
Note: For the second consecutive month, the City's sales tax collections were higher than the
previous year. April collections were $174,301 more than last year. While this second data point
does not constitute a full recovery, it does appear the retrenchment of sales tax revenue has
subsided.
City of Fort Worth
Budget Comparison
April YTD FY2010
Budget $57,967,581 Budget $98,866,421
Actual $ Var % Var Re estimate $ Var % Var
$56,569,538 ($1,398,043) -2.4% $96,479,952 ($2,386,469) -2.40,%
Note: We are encouraged by the April results as they are better than expected. However, through the
first seven months of the year; the City collected $1,398,043 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. 9258
To the Mayor and Members of the City Council JUNE 15, 2010
T..,�• Page 2 of 2
• SUBJECT: APRIL 2010 - SALES TAX UPDATE
City of Fort Worth
City Comparisons
FY10 vs. FY09
CITY QTR 1 QTR 2 APRIL YTD
ARLINGTON -1.6% 6.8% 5.4% 2.8%
BEDFORD -2.1% 4.1% 2.9% 1.2%
NORTH RICHLAND HILLS -4.6% 5.0% -1.6% -0.3%
GRAPEVINE -0.3% 2.2% -8.3% -0.3%
SOUTHLAKE -3.9% 0.5% -6.3% -2.6%
WATAUGA -3.4% 6.9% -23.5% -2.7%
GRAND PRAIRIE 0.8% -7.3% -3.3% -3.4%
KELLER -9.0% 4.7% -9.0% -3.5%
BURLESON -6.5% -1.3% -2.3% -3.8%
FORT WORTH 7.6% Z.4°/r 2.30/s, 4.2%.
HURST -8.4% 0.4% -2.1% -4.3%
DALLAS -9.7% 0.7% -3.8% -4.7%
EULESS -14.4% -5.5% 7.0% -8.0%
STATE AVG -13.0% -10.5% 1.4% -10.0%
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 -4.2% are consistent with expectations but
again the April 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.
rL
Dale A. Fisseler, P.E.
° City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS