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HomeMy WebLinkAboutIR 10379 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10379 To the Mayor and Members of the City Council March 27, 2020 Page 1 of 3 �i {i7 Y *a SUBJECT: JANUARY 2020 — SALES TAX UPDATE #qrF rn Yg7'3 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 January 2020 (Fiscal Year 2020, Period 4) collection results on March 11th, 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. JANUARY NET SALES TAX COLLECTIONS (10-YEAR HISTORY) tq C O Elm 1 1 1 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 The City's net sales tax collection is up $1,215,464 or 10.0%, compared to the same month last year. As depicted in the table below, the City experienced $576,634 or a 4.8% increase in current period collections when compared to last year's collections for the same month. Last year's current period collections realized growth of 4.5%. Current period collections include transactions that were collected for the current period on schedule within the due date. COLLECTION DETAIL FOR CITY SALES TAX January 19 January 20 Variance ($) Variance (%) Current Period Collections $11,910,821 $12,487,455 $576,634 4.8% Other Collections* 179,166 675,015 495,849 276.8% Audit Adjustments 186,159 345,107 158,948 85.4% Service Fee (245,523) (270,152) (24,629) (10.0%) Retainage 92,967 101,628 8,662 9.3% Net Collections $12,123,590 $13,339,054 $1,215,464 10.0% "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. 20-10379 To the Mayor and Members of the City Council March 27, 2020 Page 2 of 3 �i {i7 Y *a SUBJECT: JANUARY 2020 — SALES TAX UPDATE #qrF rn Yg7'3 CURRENT PERIOD COLLECTIONS Change Compared to Same Month in Prior Year 9.6% 7.5% 8.7% 8.4% 4.5% 3.8% 5.2% 2.8% 4.5% _I 1013.8% 4.8% Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 (1.1)% The City's General Fund net sales tax collections through FY2020 M04 are 102.0% to budget, and at 106.1% for the same period last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax collections through FY2020 M04 are 103.5% to budget, and 106.3% 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 Period 4 Through Period 4 Through Period 4 GENERAL FUND $57,056,085 $58,207,590 $54,886,450 CRIME CONTROL AND PREVENTION DISTRICT 26,862,090 27,803,458 26,158,141 TOTAL $83,918,175 $86,011,048 $81,044,591 CITY OF FORT WORTH BUDGET COMPARISON — FY2020 Projected Adopted Amended Fiscal Year Variance to Amended Budget Budget Projections ($) (%) CITY OF FORT WORTH GENERAL FUND $172,769,615 $172,769,615 $172,769,615 $0 0.0% CRIME CONTROL& PREVENTION DISTRICT $81,340,193 $81,340,193 $81,340,193 $0 0.0% The City anticipates collecting $172,769,615 in the General Fund by fiscal year end, which matches original estimates in the FY2020 adopted budget. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10379 To the Mayor and Members of the City Council March 27, 2020 Page 3 of 3 �i {i7 Y *a SUBJECT: JANUARY 2020 — SALES TAX UPDATE #qrF rn Yg7'3 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 PLANO 100.1% 120.2% FRISCO 107.6% 115.3% EL PASO 113.4% 114.7% GRAND PRAIRIE 109.9% 112.1% MCKINNEY 113.8% 111.6% DALLAS 109.8% 110.3% FORT WORTH 104.9% 110.0% IRVING 107.3% 109.1% HOUSTON 105.8% 108.6% AUSTIN 109.3% 108.2% GARLAND 105.6% 107.9% SAN ANTONIO 104.2% 105.3% ARLINGTON 105.7% 103.7% STATE TOTAL 106.0% 108.9% 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