HomeMy WebLinkAboutIR 9491 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9491
To the Mayor and Members of the City Council May 15, 2012
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SUBJECT: MAY 2012 — SALES TAX UPDATE
Sales tax revenue represents approximately 19% of the City's General Fund budget. Staff is
committed to providing you regular updates on this important and sometimes volatile revenue source.
The Texas Comptroller's Office posted monthly results on May 9th. The results are dependent upon
the timeliness and accuracy of sales tax payers' returns. This payment from the State represents
taxes collected on sales that occurred primarily in the month of March. In this report, you will see Fort
Worth's sales tax collection compared to last year and the impact the results are having on the current
year's budget.
MONTHLY NET SALES TAX COLLECTIONS FOR MARCH
CITY OF FORT WORTH
MARCH FY2012 $10,770,742 DOLLAR VARIANCE %VARIANCE
MARCH FY2011 $9,280,579 $1,490,163 16.1%
N
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FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
Note: The City's net payment for sales tax collection is up $1,490,163 or 16.1% compared to this
month last year. However, net collections for March 2011 were reduced by an audit adjustment of
$1.1 M. This adjustment was refunded to a Fort Worth company that had over paid sales taxes in prior
years. The State reversed this audit adjustment later in 2011, resulting in unusually high collections
for the month with the reversal. As depicted in the table below, "current period collections" increased
5.1% over last year, signaling a continued improvement in pure economic activity.
CITY OF FORT WORTH COLLECTION DETAIL
COLLECTION DETAIL FOR CITY SALES TAX
MARCH 2011 MARCH 2012 CHANGE
Current Period Collections: $10,454,539 $10,984,687 5.1%
Other Collections: $176,616 $28,268 84 0104
Audit Collections: ($1,112,477) $27,400 102.5%
Service Fee: ($190,374)) ($720,8'0"7) 16.0%
Retainage: ($47,725) ($44,806) 2.3%
Net Payment $9,280,580 $10,770,742 16.1%
Current Period Collections 18.4%
11.2% 9.7%
3.9% 5.4% 2.4% 2.8% 5.7% 4.2% 6.0% 4.3% 5.1
Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12
City Sales Tax Trend: Variance for the most recent months vs.same period last year.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9491
To the Mayor and Members of the City Council May 15, 2012
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SUBJECT: MAY 2012 - SALES TAX UPDATE
CITY OF FORT WORTH BUDGET COMPARISON - FY2012
ADOPTED BUDGET YR END
BUDGET RE-ESTIMATE VARIANCE
CITY OF FORT WORTH $ 102,259,196 $ 106,632,975 4.37
CRIME CONTROL AND PREVENTION DIST. $ 46,304,344 $ 48,007,145 3.7%
MASS TRANSIT AUTHORITY-THE"T" $ 47,647,392 $ 50,820,325 6.7%
Note: For the year, the City has collected $4,373,779 or 4.3% more than the FY2012 adopted
budget. Likewise, you will see how the positive results are affecting our partner agencies. While these
results are encouraging, Staff recommends maintaining a conservative forecast for FY2012 as we
continue to experience uncertainty with the national economy and potential audit adjustments.
Note: YTD collections for Fort Worth are up 7.7% compared to last year.
The following chart demonstrates how our trend compares to the state and other cities:
CITY OF FORT WORTH
CITY COMPARISONS-FY 2012 v. FY 2011
CITY QTR 1 QTR 2 March YTD
BURLESON 17.9% 35.5% 38.8% 26.0%
GRAND PRAIRIE 19.4% 14.9% 24.3% 17.2%
EULESS 8.7% 14.3% 12.1% 11.5%
FORT WORTH 2.2% 13.9% 16.1% 7.7%
KELLER 9.4% 5.6% 4.6% 7.5%
WATAUGA 7.3% 5.3% 6.7% 6.4%
DALLAS 5.7% 4.9% 0 8(o 5.3%
SOUTHLAKE 4.0% 6.5% 1.6% 5.2%
ARLINGTON 3.3% 3.4% 3 0(% 3.3%
BEDFORD 2.5% 3.1% 0.4% 2.8%
NORTH RICHLAND HILLS 8.5% 4 3(% ..0 6°0 2.5%
HURST 1."7(% 3.9% 0 T°o 0.8%
GRAPEVINE 4,"7°o 3.9% 0.6% ..0 8(o
STATE TOTAL 12.4% 13.5% 16.9% 13.0%
Again, hopefully you find this additional information helpful. If you have any questions, please call
Horatio Porter, Budget Officer, at 817.392.2379.
Tom Higgins
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS