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HomeMy WebLinkAboutIR 9226 INFORMAL REPORT TO CITY COUNCIL MEMBERS No.9226 To the Mayor and Members of the City Council April 13, 2010 ex Page 1 of 2 SUBJECT: FEBRUARY 2010 — SALES TAX UPDATE rits 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 April 7th. Sales tax reporting experiences a two month lag and this April report reflects taxes that were collected in February. 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 FY 10 vs. FY09 February February Unfavorable 2010 2009 $ Var % Var Sales Tax Revenue $6,686,134 $6,935,776 ($249,642) -3.6% Note: The City's sales tax collections were down $249,642 compared to last year. This is a slight recovery compared to the previous month. City of Fort Worth Budget Comparison February YTD FY2010 Actual $ Var Var Reestimate $ Var Var $38,776,179 ($1,587,393) -3.9% $93,768,857 (S5,097,564) -5.2 I.d Note: Through the month of February, the City collected $1,587,393 less than budget. For the full year staff projects sales revenue will be $5,097,564 less than the adopted budget. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9226 To the Mayor and Members of the City Council April 13, 2010 r Page 2 of 2 a x SUBJECT: FEBRUARY 2010 - SALES TAX UPDATE x tats City of Fort Worth City Comparisons FY10 vs. FY09 CITY QTR 1 JAN FEB YTD ARLINGTON -1.6% 5.4% 1.6% 0.2% BEDFORD -2.1% 8.9% -5.9% -0.9% WATAUGA -3.4% 3.1% -0.8% -1.9% GRAPEVINE -0.3% -8.1% -4.0% -2.5% NORTH RICHLAND HILLS -4.6% 1.7% -1.2% -3.0% SOUTHLAKE -3.9% 0.9% -5.5% -3.4% GRAND PRAIRIE 0.8% -14.0% -9.2% -4.1% KELLER -9.0% -0.2% -1.1% -6.3% FLIRT WORTIt, BURLESON -6.5% -9.7% -4.7% -6.8%o DALLAS -9.7% 0.8% -4.4% -7.0% HURST -8.4% -6.8% -0.4% -7.0% EULESS -14.4% -16.4% -16.0% -15.1% STATE AVG -13.0% -14.2% -8.8% -12.4% Note: The above chart shows the monthly trend in sales tax revenue compared to other cities. The first quarter shows collections were down -7.6% compared to last year. In January and February, we experienced a small improvement compared to the first quarter. This suggests collections are not continuing the downward spiral. Our YTD results of -6.4% are somewhat troubling, but again this suggest 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 and if necessary, implement a mid-year adjustment. Again, hopefully you find this additional information helpful. If you have any questions, please call Horatio Porter, Budget Officer, at 817.392.2379. 'z L � Dale A. Fisseler, P.E. City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS