HomeMy WebLinkAboutIR 10354 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10354
To the Mayor and Members of the City Council January 14, 2020
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SUBJECT: NOVEMBER 2019 — SALES TAX UPDATE
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Sales tax revenue represents approximately twenty-two percent (22.4%) of the City's General Fund
anticipated revenue in Fiscal Year 2020. It is the second largest revenue source, with property tax being
the largest. In addition, sales tax revenue represents the largest revenue source in the Crime Control
and Prevention District Fund. Staff is committed to providing regular updates on this important and
sometimes volatile revenue source. The Texas Comptroller's Office posted November 2019 (Fiscal
Year 2020, Period 2) collection results on January 8th, 2020. Actual receipts are dependent upon the
timeliness and accuracy of sales tax payers' returns. This report provides Fort Worth's sales tax
collection compared to last year and the impact on the current year's budget. Legislation has currently
reformed how sales tax is remitted to the state comptroller. This activity is closely monitored and will be
reported on if significant impact is expected.
NOVEMBER NET SALES TAX COLLECTIONS (10-YEAR HISTORY)
N
C
O
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FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020
The City's net sales tax collection is down $474,499 or 3.6%, compared to the same month last year.
As depicted in the table below, the City experienced $479,765 or a 3.8% increase in current period
collections when compared to last year's collections for the same month. Last year's current period
collections realized growth of 2.6%. Current period collections include transactions that were collected
for the current period on schedule within the due date.
COLLECTION DETAIL FOR CITY SALES TAX
November 18 November 19 Variance ($) Variance (%)
Current Period Collections $12,559,848 $13,039,613 $479,765 3.8%
Other Collections 189,111 87,599 (101,512) (53.7%)
Audit Adjustments 709,966 (183,127) (893,094) (125.8%)
Service Fee (269,179) (258,882) 10,297 3.8%
Retainage (5,029) 25,016 30,045 597.4%
Net Collections $13,184,718 $12,710,219 ($474,499) (3.6%)
*NON-CURRENT COLLECTIONS ARE PAYMENTS ATTRIBUTED TO NON-CURRENT COLLECTIONS INCLUDING PRIOR PERIOD,FUTURE PERIOD AND UNIDENTIFIED
COLLECTIONS.(AUDIT ADJUSTMENTS MAY FLUCTUATE BASED UPON RESULTS OF TAXPAYER SALES TAX AUDITS CONDUCTED BY THE STATE OF TEXAS.)
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10354
To the Mayor and Members of the City Council January 14, 2020
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I! SUBJECT: NOVEMBER 2019 — SALES TAX UPDATE
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CURRENT PERIOD COLLECTIONS
Change Compared to Same Month in Prior Year
9.6%
7.5% 8.7%
°
4.5% 3.8% 5.2% 4.5/° 3.1% 3.8%
2.6% 3.6% 2.801
Aw 1 W
Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19
(1.1)%
The current month of November
experienced a 1.2% increase in
growth above last year.
The City's General Fund sales tax collections as of FY2020 M02 are 98.8% to budget, and at 101.9%
for the same period last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax
collections as of FY2020 M02 are 100.8% to budget, and 102.1% for the same period last year.
CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON
Budget as of Current Receipts FY2019 Receipts
CITY OF FORT WORTH Period 2 Through Period 2 Through Period 2
GENERAL FUND $26,988,820 $26,662,363 $26,153,689
CRIME CONTROL AND PREVENTION DISTRICT 12,706,377 12,813,831 12,546,273
TOTAL $39,695,197 $39,476,194 $38,699,962
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large fluctuation in Net Collections for November is attributed to a variance in audit
nts when comparing to last year's collections for the same month. An audit adjustment
n the same month last year increasing collections by a significant amount, as opposed to
djustment resulting in a reduction of collections in the current month. A negative variance
94 is created due to this anomaly. Audit adjustments often cause variations when
net collections.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10354
To the Mayor and Members of the City Council January 14, 2020
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I! SUBJECT: NOVEMBER 2019 — SALES TAX UPDATE
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CITY OF FORT WORTH BUDGET COMPARISON — FY2019
Projected
Adopted Amended Fiscal Year Variance to Amended
Budget Budget Projections
CITY OF FORT WORTH
GENERAL FUND $172,769,615 $172,769,615 $172,769,615 $0 0.0%
CRIME CONTROL& PREVENTION DISTRICT $81,340,193 $81,340,193 $81,340,193 $0 0.0%
The City anticipates collecting $172,769,615 by fiscal year end, which matches original estimates in the
FY2020 adopted budget.
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10354
To the Mayor and Members of the City Council January 14, 2020
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I! SUBJECT: NOVEMBER 2019 - SALES TAX UPDATE
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The chart below indicates how current year sales tax net collections in Fort Worth and other select cities
in the state compare to FY2019 collections for the same period.
CITIES COMPARISON- NET COLLECTIONS
FY2020 vs. FY2019
City October November YTD
MCKINNEY 111 .6% 111 .0% 111 .3%
DALLAS 111 .4% 109.1% 110.3%
AUSTI N 104.2% 108.2% 106.1%
SAN ANTONIO 101 .1% 107.4% 104.0%
PLANO 104.2% 106.7% 105.4%
EL PASO 123.2% 106.2% 114.2%
GRAND PRAIRIE 115.6% 105.0% 110.2%
HOUSTON 106.9% 104.3% 105.6%
IRVING 112.5% 102.7% 107.7%
GARLAND 103.2% 102.1% 102.7%
ARLINGTON 107.6% 99.3% 103.4%
FRISCO 110.7% 99.1% 104.7%
FORT WORTH 107.6% 96.4% 101 .9%
STATE TOTAL 107.0% 106.2% 106.5%
Source: Allocation Payment Detail and Monthly All Fund Revenue Report, Texas Comptroller of Public Accounts
If you have any questions, please call Terry Hanson, Assistant Director of Budget and Analysis, at
817-392-7934.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS