HomeMy WebLinkAboutIR 9083INFORMAL REPORT TO CITY COUNCIL MEMBERS
No, 9083
To the Mayor and Members of the City Council July 14, 2009
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SUBJECT: July 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 July 8. You may recall, sales tax
reporting experiences a two month lag and this July report reflects taxes that were collected in May.
Below you will find the May 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
May May Unfavorable
2009 2008 $ Variance % Variance
Sales Tax $7,122,838 $7,828,145 $ (705,307) -9.0%
Revenue
Note: For the month of May, the City's sales tax collections were down $705,307 compared to last year.
This downward trend demonstrates a continued reduction in consumer spending and represents the largest
decline we have seen this fiscal year.
City of Fort Worth
Actual vs. Budget
Year to Date — FY2009
Unfavorable
Actual Budget Variance % Variance
Sales Tax $66,171,385 $67,656,300 $ (1,484,915) - 2.19%
Revenue
Note: For the first 8 months of this fiscal year, we collected $1,484,915 less than budget.
ISSUED ST THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
To the Mayor and Members of the City Council
SUBJECT: July 2009 — Sales Tax Update
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City of Fort Worth
City Comparisons — YTD
FY09 vs. FY08
CitV
% Change
BURLESON
6.8%
WATAUGA
-.1%
KELLER
-1.4%
ARLINGTON
-1.4%
FORT WORTH
-3.0%
GRAND PRAIRIE
-5.6%
SOUTHLAKE
-6.4%
HURST
-6.5%
NORTH RICHLAND HILLS
-6.9%
DALLAS
-8.4%
AVERAGE % CHANGE -3.3%
No. 9083
July 14, 2009
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Note: The average percentage change from the previous year among the comparison cities is -3.3 %. The
City of Fort Worth has seen a decline year to date collections of -3.01/o from FY08. While our collections
are relatively neutral compared to others, we are concerned about the continued trend.
In light of these lower collections, staff will revise downward our current year re- estimates.
Additionally, we are evaluating the impact these results will have on the FY10 budget gap. During
the budget development sessions over the coming months, staff will present to Council an overa8
update of alt the revenue budget assumptions.
Again, hopefully you find this information helpful. If you have any questions, please call Horatio Porter,
Budget Officer, at 817.392.2379.
Dale A. i , P.E.
City MWyer
ISSUED BY THE CITY MANAGER FORT 'WORTH, TEXAS