HomeMy WebLinkAboutIR 9502 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9502
To the Mayor and Members of the City Council July 17, 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 July 11th. 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 May. 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 MAY
CITY OF FORT WORTH
May FY2012 $9,018,243 DOLLAR VARIANCE %VARIANCE
May FY2011 $6,964,832 $2,053,411 29.5%
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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 $2,053,411 or 29.5% compared to this
month last year. However, like April 2011 net collections for May 2011 were reduced by an audit
adjustment of $907K. 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 atypical
increase in collections for the month with the reversal. In upcoming reports, you will see this unusually
high collection due to this reversal. As depicted in the table below, "current period collections"
increased 17.3% over last year, signaling a continued improvement in pure economic activity.
CITY OF FORT WORTH COLLECTION DETAIL
COLLECTION DETAIL FOR CITY SALES TAX
May 2011 May 2012 CHANGE
Current Period Collections: $7,892,093 $9,263,900 17.3%
IOtherCollections: $131,423 $285,805 117.5%
Audit Collections: 9�)7,`1961 "1 "'36'11 64.2%
Service Fee: (!I 1,42 !'b 'x'11 4 '!I()'1'"1 29.5%
Retainage: "!` "Ir1 !'1 I ' 7941 39.7%
Net Payment $6,964,832 S9,0118243 29.5%
Current Period Collection 18.4k, �
11.2% 9.�7%
5.4,,, 2.�
23%r 5.7% 4.2% .0% 4,3% 5.1% 5.1 2.8%
Mays-11 Jun-11 JuV-11 4,ug--'11 Sep-11 Oct-11 Nov 11 Dec-11 Jan•12 Feb-1 2 Mar-12 )�pr-12 kday-1 2
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. 9502
To the Mayor and Members of the City Council July 17, 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 $ 109,128,659 6.7%
CRIME CONTROL AND PREVENTION DIST. $ 46,304,344 $ 49,795,976 7.5%
MASS TRANSIT AUTHORITY-THE"T" $ 47,647,392 $ 52,694,715 10.6%
Note: For the year, the City has collected $6,869,463 or 6.7% more than the FY2012 adopted
budget. As depicted above, you will also 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.
The following chart demonstrates how our trend compares to other cities:
CITY OF FORT WORTH
CITY COMPARISONS -FY 2012 v. FY 2011
CITY QTR 1 QTR 2 May YTD
BURLESON 17.9% 35.5% -19.1% 19.1%
GRAND PRAIRIE 19.4% 14.9% 5.7% 14.2%
EULESS 8.7% 14.3% 43.5% 15.0%
FORT WORTH 2.2% 13.9% 29.5% 12.1%
KELLER 9.4% 5.6% 21.1% 8.5%
WATAUGA 7.3% 5.3% 10.1% 7.1%
DALLAS 5.7% 4.9% 6.8% 6.2%
SOUTHLAKE 4.0% 6.5% 13.2% 6.7%
ARLINGTON 3.3% 3.4% 13.7% 5.0%
BEDFORD 2.5% 3.1% 13.6% 4.0%
NORTH RICHLAND HILLS 8.5% 4 31X, 1.4% 2.4%
HURST 1 7"Yu 3.9% 6.8% 2.1%
GRAPEVINE 4 7"Yu 3.9% 10.4% 1.8%
STATE 12.4% 13.5% 7.3% 11.9%
Note: YTD collections for Fort Worth are up 12.1% compared to last year.
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