HomeMy WebLinkAboutIR 10410 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10410
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To the Mayor and Members of the City Council May 19, 2020
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SUBJECT: MARCH 2O20 — SALES TAX UPDATE
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Sales tax revenue represents approximately twenty-two percent (22.4%) of the City's General Fund
anticipated revenue in Fiscal Year 2020. It is the second largest revenue source, with property tax being
the largest. In addition, sales tax revenue represents the largest revenue source in the Crime Control
and Prevention District Fund. Staff is committed to providing regular updates on this important and
sometimes volatile revenue source. The Texas Comptroller's Office posted March 2020 (Fiscal Year
2020, Period 6) collection results on May 6th, 2020. Actual receipts are dependent upon the timeliness
and accuracy of sales taxpayers' returns. This report provides Fort Worth's sales tax collection
compared to last year and the impact on the current year's budget. The sales tax activity is being closely
monitored to report on the impacts of COVID-19 and the Texas legislation that reformed how sales tax
is remitted to the state comptroller.
MARCH NET SALES TAX COLLECTIONS (1 O-YEAR HISTORY
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15.4
1 1
FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020
The City's net sales tax collection is down -$993,498 or -6.5%, compared to the same month last year.
As depicted in the table below, the City experienced -$1,204,286 or a -7.8% decrease in current period
collections when compared to last year's collections for the same month. Last year's current period
collections realized growth of 3.8%. Current period collections include transactions that were collected
for the current period on schedule within the due date. March current collections performed well
considering a portion of the month was affected by COVID-19, but future collections will provide a better
understanding of the ongoing economic impact from the pandemic.
COLLECTION DETAIL FOR CITY SALES TAX
March 19 March 20 Variance($) Variance(%)
Current Period Collections $15,455,145 $14,250,859 ($1,204,286) (7.8%)
Other Collections* 221,156 315,652 94,496 42.7%
Audit Adjustments 76,089 152,519 76,430 100.4%
Service Fee (315,048) (294,381) 20,667 6.6%
Retainage (72,054) (52,859) 19,195 26.6%
Net Collections $15,365,289 $14,371,791 ($993,498) (6.5%)
*OTHER COLLECTIONS ARE PAYMENTS ATTRIBUTED TO NON-CURRENT COLLECTIONS INCLUDING PRIOR PERIOD,FUTURE PERIOD,UNIDENTIFIED,AND SINGLE
LOCAL RATE COLLECTIONS.(AUDIT ADJUSTMENTS MAY FLUCTUATE BASED UPON RESULTS OF TAXPAYER SALES TAX AUDITS CONDUCTED BY THE STATE OF
TEXAS.)
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10410
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To the Mayor and Members of the City Council May 19, 2020
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° ram Page 2 of 3
SUBJECT: MARCH 2O20 — SALES TAX UPDATE
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CURRENT PERIOD COLLECTIONS
Change Compared to Same Month in Prior Year
8.7% 8.4%
7.5%
3.8%
5.2% 4.5% 3.1 3.8% Eli
0.6%
(7.8)%
Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
The City's General Fund net sales tax collections through March are 98.5% to budget, and at 102.8%
for the same period last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax
collections through March are 99.4% to budget, and 103.0% for the same period last year.
CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON
Budget as of Current Receipts FY2019 Receipts
CITY OF FORT WORTH March Through March Through March
GENERAL FUND $85,687,365 $84,390,185 $82,090,294
CRIME CONTROL AND PREVENTION DISTRICT 40,341,740 40,098,743 38,913,901
TOTAL $126,029,105 $124,488,928 $121,004,195
CITY OF FORT WORTH BUDGET COMPARISON— FY2020
Projected
Adopted Amended Fiscal Year Variance to Amended
Budget Budget Projections ($) (%)
CITY OF FORT WORTH
GENERAL FUND $172,769,615 $172,769,615 $145,237,839 ($27,531,776) -15.9%
CRIME CONTROL&PREVENTION DISTRICT $81,340,193 $81,340,193 $69,146,434 ($12,193,759) -15.0%
The City originally anticipated collecting $172,769,615 in the General Fund by fiscal year end per the
FY2020 adopted budget. The economic effects of the COVID-19 pandemic are yet to be fully
understood, and are being monitored closely. The current General Fund impact for Sales Tax is
estimated to be a reduction of approximately $27.5M, or 15.9%, as shown in the table above. March
performed better than expected; however, April will reflect the first month of full COVID-19 impact. The
projection will remain the same until April activity is received and reported in June. Staff will continue to
provide regular updates to allow for strategic planning to mitigate total impact to the City.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10410
To the Mayor and Members of the City Council May 19, 2020
Page 3 of 3
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SUBJECT: MARCH 2O20 - SALES TAX UPDATE
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The chart below indicates how current year sales tax net collections in Fort Worth and other select cities
in the state compare to FY2019 collections for the same period.
CITIES COMPARISON- NET COLLECTIONS
FY2020 vs. FY2019
City 1st Quarter 2nd Quarter March YTD
MCKINNEY 113.8% 111.7% 98.9% 112.8%
AUSTIN 109.3% 102.0% 95.5% 105.7%
PLANO 100.1% 101.9% 95.3% 100.9%
FORT WORTH 104.9% 100.5% 93.5% 102.8%
GRAND PRAIRIE 109.9% 103.3% 93.3% 106.7%
DALLAS 109.8% 100.2% 90.6% 105.1%
IRVING 107.3% 97.5% 89.8% 102.3%
HOUSTON 105.8% 98.6% 89.7% 102.3%
SAN ANTONIO 104.2% 96.1% 89.3% 100.3%
EL PASO 113.4% 100.3% 89.0% 107.1%
GARLAND 105.6% 98.9% 88.9% 102.4%
FRISCO 107.6% 101.5% 88.0% 104.7%
ARLINGTON 105.7% 95.4% 86.3% 100.7%
STATE TOTAL 106.6% 98.9% 90.7% 102.9%
Source: Allocation Payment Detail and Monthly All Fund Revenue Report, Texas Comptroller of Public Accounts
If you have any questions, please call Terry Hanson, Assistant Director of Planning and Data
Analytics, at 817-392-7934.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS