HomeMy WebLinkAboutIR 9098INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9098
To the Mayor and Members of the City Council August 18, 2009
Page 1 of 2
SUBJECT: August 2009 — Sales Tax Update
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 August 12". You may recall,
sales tax reporting experiences a two month lag and this August report reflects taxes that were collected in
June.
Below you will find the June recap for the City of Fort Worth. You will see our collections compared to (1)
last year, (2) the adopted budget, and (3) neighboring cities. Hopefully this information will 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
June June Unfavorable
2009 2008 Variance % Variance
Sales Tax $9,503,414 $10,145,282 $ (641,868) -6.33%
Revenue
Note: For the month of June, the City's sales tax collections were down $641,868 compared to last year.
This downward trend demonstrates a continued reduction in consumer spending.
City of Fort Worth
Actual vs. Budget
Year to Date — FY2009
Unfavorable
Actual Bu_ dget $ Variance % Variance
Sales Tax $75,674,799 $77,716,849 $ (2,042,050) -2.63%
Revenue
Note: For the first 9 months of this fiscal year, we collected $2,042,050 less than budget.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
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• the Mayor and Members • the City Coun
SUBJECT: August 2009 — Sales Tax Update
City of Fort Worth
City Comparisons — YTD
FY09 vs. FYI}8
LLty-
% Change
BURLESON
5.8%
WATAUGA
-1.4%
ARLINGTON
-1.6%
BEDFORD
-3.2%
FORT WORTH
-14%
FELLER
-3.5%
GRAND PRAIRIE
-5.5%
NORTH RICHLAND HILLS
-6.8%
HURST
-7.0%
SOUTHLAKE
-7.8%
DALLAS
-9.2%
GRAPEVINE
-9.4%
EIS LESS
-10.1%
AVERAGE % CHANGE -4.85%
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Note: The average percentage change from the previous year among the comparison cities is -4.85%. The
City of Fort Worth has seen a decline year to date collections of -3.44% from FY08. While our collections
are relatively neutral compared to others, we are concerned about the continued trend.
The current year and FY2010 proposed sales tax projections are consistent with current collection
information. Therefore, no adjustment is needed at this time. During the budget development
sessions over the coming weeks, staff will present to Council an overall update of an the revenue
budget assumptions.
Alizain, hopefully you find this inFormation helpful, If you have any questions, please call Horatio Porter,
BudgL�t OffiCer,
. at 81'7,-'92,23-19.
ISSUED BY THE CITY MANAGER FORT WORTH. TEXAS