HomeMy WebLinkAboutIR 10394 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10394
To the Mayor and Members of the City Council April 10, 2020
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SUBJECT: FEBRUARY 2020 — 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 February 2020 (Fiscal Year
2020, Period 5) collection results on April 8th, 2020. Actual receipts are dependent upon the timeliness
and accuracy of sales tax payers' returns. This report provides Fort Worth's sales tax collection
compared to last year and the impact on the current year's budget. Legislation has currently reformed
how sales tax is remitted to the state comptroller. This activity is closely monitored and will be reported
on if significant impact is expected. COVID-19 activity is also being closely monitored for impact to
Sales Tax Collections.
FEBRUARY NET SALES TAX COLLECTIONS (10-YEAR HISTORY)
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FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020
The City's net sales tax collection is down $27,750 or 0.2%, compared to the same month last year. As
depicted in the table below, the City experienced $67,059 or a 0.6% increase in current period
collections when compared to last year's collections for the same month. Last year's current period
collections realized growth of 9.6%. Current period collections include transactions that were collected
for the current period on schedule within the due date. February current collections performed well, but
net collections realized an overall reduction due to adjustments made for administrative charges and
audit adjustment as seen below.
COLLECTION DETAIL FOR CITY SALES TAX
February 19 February 20 Variance ($) Variance (%)
Current Period Collections $11,611,417 $11,678,476 $67,059 0.6%
Other Collections* 438,545 350,306 (88,239) (20.1%)
Audit Adjustments 26,196 (6,650) (32,845) (125.4%)
Service Fee (241,523) (240,443) 1,081 0.4%
Retainage 3,920 29,115 25,195 642.8%
Net Collections $11,838,554 $11,810,804 ($27,750) (0.2%)
*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. 20-10394
To the Mayor and Members of the City Council April 10, 2020
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SUBJECT: FEBRUARY 2020 — SALES TAX UPDATE
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CURRENT PERIOD COLLECTIONS
Change Compared to Same Month in Prior Year
9.6% 8.7% 8.4%
7.5%
5.2% 4.5% ° 4.8%
&3.8 2.8% 3.1% 3.8/°
0.6%
Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20
(1.1)%
The City's General Fund net sales tax collections through February are 100.9% to budget, and at
104.9% for the same period last year. The City's Crime Control and Prevention District Fund (CCPD)
sales tax collections through February are 102.4% to budget, and 105.1% 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 February Through February Through February
GENERAL FUND $69,426,409 $70,018,394 $66,725,005
CRIME CONTROL AND PREVENTION DISTRICT 32,686,057 33,473,538 31,848,527
TOTAL $102,112,466 $103,491,932 $98,573,532
CITY OF FORT WORTH BUDGET COMPARISON — FY2020
Projected
Adopted Amended Fiscal Year Variance to Amended
Budget Budget Projections ($) (%)
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 effects of the COVID-19 pandemic are yet to be fully understood, and are
being monitoring 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. Very early estimates for February
receipts were $1.6M higher than actual performance recently posted by the State. This has slightly
altered our fiscal projections. Staff will continue to provide updates for the most current economic
outlook due to its fluid nature, 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. 20-10394
To the Mayor and Members of the City Council April 10, 2020
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SUBJECT: FEBRUARY 2020 - 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 January February YTD
MCKINNEY 113.8% 111.6% 128.2% 116.0%
GRAND PRAIRIE 109.9% 112.1% 107.8% 109.9%
FRISCO 107.6% 115.3% 104.9% 108.5%
GARLAND 105.6% 107.9% 103.4% 105.6%
AUSTI N 109.3% 108.2% 103.2% 107.9%
DALLAS 109.8% 110.3% 101.7% 108.5%
EL PASO 113.4% 114.7% 101.1% 111.4%
FORT WORTH 104.9% 110.0% 99.8% 104.9%
ARLINGTON 105.7% 103.7% 99.4% 104.2%
HOUSTON 105.8% 108.6% 99.3% 105.2%
SAN ANTONIO 104.2% 105.3% 95.7% 102.8%
IRVING 107.3% 109.1% 95.0% 105.2%
PLANO 100.1% 120.2% 92.4% 102.1%
STATE TOTAL 106.0% 108.9% 103.5% 106.1%
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