HomeMy WebLinkAboutIR 9508 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9508
To the Mayor and Members of the City Council August 14, 2012
`�` Page 1 of 2
r
SUBJECT: June 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 August 8th. 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 June. 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 JUNE
CITY OF FORT WORTH
June FY2012 $9,633,041 DOLLAR VARIANCE %VARIANCE
June FY2011 $13,763,588 ($4,130,547) 30 01%
to
C
O
FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
Note: The City's net payment for sales tax collection is down $4,130,54 7' or 30.0% compared to this
month last year. This is a result of audit adjustments. As you may recall, the State deducted a
significant amount of revenue from sales tax payments to Fort Worth in March, April, and May of
2011. The State refunded that revenue to the City in June of 2011, causing a spike of $3.6M. In
addition, there was an audit adjustment reducing payments by $726k in the current month. The
combination of these two factors leads to the large year-over-year drop. However, "current period
collections" increased 3.0% over last year as depicted below. This signals a continued improvement
in pure economic activity.
Current Period Collections 18.4% 17.3%
11,2% 9.7%
2.4% 2.8% 5.7% 4.2% 6.0% 4.3% 5.1% a 3.0%
Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12
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. 9508
To the Mayor and Members of the City Council August 14, 2012
`�` Page 2 of 2
r
SUBJECT: June 2012 — Sales Tax Update
The table below depicts the impact of audit adjustments for March through June of FY2011 compared
to March through June of FY2012.
YEAR OVER YEAR COMPARISON
FY2011 MARCH APRIL MAY JUNE
Current Collections $10,454,539 $8,014,261 $7,892,093 $10,332,048
Audit Adjustments ($1,112A 77) (`G1,413,062) ($907,196) $3,690,341
Other Adjustments ($61,483) ($29,040) ($20,065) ($258,441)
Net Payment $9,280,580 $6,572,158 $6,964,832 $13,763,588
FY2012 MARCH APRIL MAY JUNE
Current Collections $10,984,687 $8,424,186 $9,253,900 $10,638,173
Audit Adjustments $27,400 $12,915 ($324,361) (`G726,258)
Other Adjustments ($241,345) $2,784 $88,704 (`G274,475)
Net Payment $10,770,742 $8,439,886 $9,018,243 $9,633,041
NET PAYMENT
Year Over Year$Variance $1,490,162 $1,867,727 $2,053,411 ($4,130,54 7)
%Variance 16% 28% 29% -30%
CURRENT COLLECTIONS
Year Over Year$Variance $530,148 $409,926 $1,361,807 $306,125
%Variance 5% 5% 17% 3%
Note: Current projections indicate the City will collect $6,033,531 or 5.9% more than the FY2012
adopted budget. As depicted below, 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.
CITY OF FORT WORTH BUDGET COMPARISON - FY2012
ADOPTED BUDGET YREND
BUDGET RE-ESTIMATE VARIANCE
CITY OF FORT WORTH $ 102,259,196 $ 108,292,727 5.97
CRIME CONTROL AND PREVE $ 46,304,344 $ 49,510,865 6.9%
MASS TRANSIT AUTHORITY- $ 47,647,392 $ 52,476,404 10.1%
Note: YTD collections for Fort Worth are up 4.75% 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