HomeMy WebLinkAboutIR 9246 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9246
To the Mayor and Members of the City Council May 18, 2010
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SUBJECT: MARCH 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 May 12th.
Sales tax reporting experiences a two month lag and this May report reflects taxes that were
collected in March.
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
March March Favorable
2010 2009 Var % Var
Sales Tax Revenue $9,951,915 $9,936,866 $15,049 0.2%
Note: For the first time in 16 months, the City's sales tax collections were higher than the previous
year. March collections were $15,049 more than last year. While one data point does not
constitute a recovery trend, it does appear the retrenchment of sales tax revenue has subsided.
City of Fort Worth
Budget Comparison
March YTD FY2010
Budget $50,300,438 Budget $98,866,421
Actual $ Var % Var Reestimate $ Var % Var
$48,728,094 ($1 ,572.344) -3. 1% $95,351,438 ($3,514,983) -3.6%
r Note: We are encouraged by the March results as they are better than expected. However,
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through the first six months of the year; the City collected $1,572,344 less than budget. For the
full year staff still projects sales tax revenue will be less than the adopted budget.
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9246
To the Mayor and Members of the City Council May 18, 2010
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W-- SUBJECT: MARCH 2010 - SALES TAX UPDATE
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City of Fort Worth
City Comparisons
FY10 vs. FY09
CITY QTR 1 JAN FEB MAR YTD
ARLINGTON -1.6% 5.4% 1.6% 11.5% 2.4%
WATAUGA -3.4% 3.1% -0.8% 15.1% 1.3%
BEDFORD -2.1% 8.9% -5.9% 7.8% 1.0%
GRAPEVINE -0.3% -8.1% -4.0% 16.7% 0.9%
NORTH RICHLAND HILLS 4.6% 1.7% -1.2% 11.6% -0.1%
SOUTHLAKE -3.9% 0.9% -5.5% 4.9% -2.0%
KELLER -9.0% -0.2% -1.1% 11.5% -2.6%
GRAND PRAIRIE 0.8% -14.0% -9.2% -0.3% -3.4%
BURLESON -6.5% -9.7% 4.7% 7.7% 4.0%
HURST -8.4% -6.8% -0.4% 6.3% -4.6%
DALLAS -9.7% 0.8% -4.4% 4.2% -4.9%
FORT WORTH -7.6% 4.7% -3.6% 0.2% -5.2%
EULESS -14.4% -16.4% -16.0% 11.8% -10.2%
STATE AVG -13.0% -14.2% -8.8% -7.8% -11.7%
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 -5.2% are consistent with
expectations but again the March 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.
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Dale A. Fissel r, P.E.
City Manager
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS