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HomeMy WebLinkAboutIR 9112In 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 September 1 1'h. You may recall, sales tax reporting experiences a two month lag and this September report reflects taxes that were collected in July. Below you will find the July recap for the City of Fort Worth. You will see our collections compar to (1) last year, (2) the adopted budget, and (3) neighboring cities. Hopefully this information will I provide you immediate perspective on our results as well as equip you for questions you may have to entertain. City of Fort Worth Monthly Collections FY09 vs. FY08 July July 2009 2008 Sales Tax $7,121,484 $8,400,078 Revenue Unfavorable Variance % Variance $ (1,278,594) -15.2% Note: For the month of July, the City's sales tax collections were down $1,278,594 compared to year. This downward trend demonstrates a continued reduction in consumer spending. — City of Fort Worth Actual vs. Budget Year to Date — FY2009 Unfavorable Actual Bucl et )tariance % Variance Sales Tax $82,796,283 $86,046�770 $ 13,250,487) -18% Revenue Note- For the first 10 months of this fiscal year, we collected $3,250,487 less than budget. ISSUED BY THE CITY MANAG, ER FORT WORTH, TEXAS I ��. 42� 11 \�� • • the Mayor and Members of the City Counci 'z* • SUBJECT: September 200• — Sales Tax Upda City of Fort Worth City Comparisons FY09 vs. FY08 City % Change BURLESON 4.0% ARLINGTON -2.0% WATAUGA -2.2% KELLER -3.7% BEDFORD -3.8% FORT WORTH -4.6%` GRAND PRAIRIE -5.6% NORTH RICHLAND HILLS -7.0% HURST -7.7% SOUTHLAKE -8.6% GRAPEVINE -9.6% DALLAS -9.8% EULESS -11.2% NEi` i� Note: The average percentage change from the previous year among the comparison cities is - 5.5%. The City of Fort Worth has seen a decline year to date collections of -4.6% from FY08. While our collections are relatively neutral compared to others, we are concerned about the continued trend. The FY2010 projected sales tax budget is consistent with current collection information. Staff will continue to monitor this volatile revenue source throughout next year. We will provide an update to the City Council on a monthly basis and if necessary, implement a mid-year adjustment in FY 2010, ISSUED BY THE CITY NAGS FORT WORTH, TEXAS Ad 111101 It