HomeMy WebLinkAboutIR 10425 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10425
NAT A To the Mayor and Members of the City Council June 16, 2020
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rkrn SUBJECT: APRIL 2020 — SALES TAX UPDATE
1Q'?13
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 April 2020 (Fiscal Year
2020, Period 7) collection results on June 10th, 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.
APRIL NET SALES TAX COLLECTIONS (10-YEAR HISTORY
to
C
O
$10.3 1 $10.31 1
FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020
The City's net sales tax collection is down -$1,775,723 or -13.3%, compared to the same month last
year. As depicted in the table below, the City experienced -$1,649,270 or a -12.9% decrease in current
period collections when compared to last year's collections for the same month. Last year's current
period collections realized growth of 5.2%. Current period collections include transactions that were
collected for the current period on schedule within the due date. April was the first full month of the stay
at home advisement. Current collections performed well considering the adverse effects of COVID-19.
Net Collections fall in line with the State decline of-13.2% compared to last year. Future collections will
continue to provide further understanding of the ongoing economic impact from the pandemic.
COLLECTION DETAIL FOR CITY SALES TAX
April 19 April 20 Variance($) Variance(%)
Current Period Collections $12,774,664 $11,125,394 ($1,649,270) (12.9%)
Other Collections* 588,050 583,424 (4,626) (0.8%)
Audit Adjustments 196,303 22,347 (173,956) (88.6%)
Service Fee (271,180) (234,623) 36,557 13.5%
Retainage 42,990 58,562 15,572 36.2%
Net Collections $13,330,827 $11,555,104 ($1,775,723) (13.3%)
*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. 20-10425
NAT 4 To the Mayor and Members of the City Council June 16, 2020
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I!
rkrn SUBJECT: APRIL 2020 — SALES TAX UPDATE
10713
CURRENT PERIOD COLLECTIONS
Change Compared to Same Month in Prior Year
7.5% 8.7% 8.4%
°
5.2% 2.8% 4.5% 3.1% 3.8% °
MEMO 0.6%
(7.8)%
(12.9)%
Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20
The City's General Fund net sales tax collections through April are 96.8% to budget, and at 100.5%
through the same period last year. The City's Crime Control and Prevention District Fund (CCPD) sales
tax collections through April are 97.8% to budget, and 100.7% through the same period last year.
CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON
Budget as of Current Receipts FY2019 Receipts
CITY OF FORT WORTH April Through April Through April
GENERAL FUND $99,156,587 $95,945,290 $95,421,121
CRIME CONTROL AND PREVENTION DISTRICT 46,683,069 45,660,740 45,359,196
TOTAL $145,839,656 $141,606,030 $140,780,317
CITY OF FORT WORTH BUDGET COMPARISON — FY2020
Projected
Adopted Amended Fiscal Year Variance to Amended
Budget Budget Projections ($) (%)
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. This
projection is in the process of being updated and a communication to the City Council will follow. 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. 20-10425
NAT 4 To the Mayor and Members of the City Council June 16, 2020
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I!
rkrn SUBJECT: APRIL 2020 - SALES TAX UPDATE
1Q�13
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 April YTD
MCKINNEY 113.8% 111.7% 112.1% 112.7%
I RVI NG 107.3% 97.5% 98.5% 101.8%
GRAND PRAIRIE 109.9% 103.3% 87.9% 104.0%
FRISCO 107.6% 101.5% 87.2% 102.4%
PLANO 100.1% 101.9% 87.0% 99.1%
FORT WORTH 104.9% 100.5% 86.7% 100.5%
EL PASO 113.4% 100.3% 86.4% 104.1%
SAN ANTONIO 104.2% 96.1% 83.7% 97.9%
HOUSTON 105.8% 98.6% 82.8% 99.6%
GARLAND 105.6% 98.9% 82.2% 99.5%
ARLI NGTON 105.7% 95.4% 81.7% 97.8%
AUSTIN 109.3% 102.0% 80.1% 102.0%
DALLAS 109.8% 100.2% 75.6% 101.0%
STATE TOTAL 106.6% 98.9% 86.8% 100.4%
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