HomeMy WebLinkAboutIR 10475 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10475
To the Mayor and Members of the City Council September 15, 2020
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I! SUBJECT: JULY 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 July 2020 (Fiscal Year 2020,
Period 10) collection results on September 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.
JULY 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 -$243,725 or -1.8%, compared to the same month last year.
As depicted in the table below, the City experienced -$338,547 or a -2.6% decrease in current period
collections when compared to last year's collections for the same month. Last year's current period
collections saw an increase of 4.5% over the prior year. Current period collections include transactions
that were collected for the current period on schedule within the due date. Current collections are
performing in line with expectations considering the adverse effects of COVID-19. Net Collections
performed better than the State's decrease of -5.63% compared to last year. Future collections will
continue to provide further understanding of the ongoing economic impact from the pandemic.
COLLECTION DETAIL FOR CITY SALES TAX
July 19 July 20 Variance ($) Variance (%)
Current Period Collections $13,221,460 $12,882,913 ($338,547)
Other Collections* 327,568 344,152 16,583 5.1%
Audit Adjustments 29,494 76,896 47,403 160.7%
Service Fee (271,570) (266,079) 5,491 2.0%
Retainage 34,192 59,537 25,346 74.1%
Net Collections $13,341,144 $13,097,419 ($243,725) (1.8%)
*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. 20-10475
To the Mayor and Members of the City Council September 15, 2020
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I! SUBJECT: JULY 2020 — SALES TAX UPDATE
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CURRENT PERIOD COLLECTIONS
Change Compared to Same Month in Prior Year
7.5% 8.7% 8.4%
4.5% 3.8% 4.8%
3.1% 2.7%
0.6%
(2.6)%
(5.1)%
(7.8)%
(12.9)%
Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20
The City's General Fund net sales tax collections through July are 96.2% to budget, and at 100.6%
through the same period last year. The City's Crime Control and Prevention District Fund (CCPD) sales
tax collections through July are 97.3% to budget, and 100.6% through the same period last year.
CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON
Current Receipts FY2019 Receipts
CITY OF FORT WORTH Budget as of July Through July Through July
GENERAL FUND $142,913,980 $137,517,805 $136,691,057
CRIME CONTROL AND PREVENTION DISTRICT 67,284,116 65,439,529 65,036,570
TOTAL $210,198,096 $202,957,334 $201,727,627
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 $164:387:876 ($8,381,739) -4.9%
CRIME CONTROL&PREVENTION DISTRICT $81.340:193 $81:340.193 $78:089:999 ($3,250,194) -4.0%
The City originally anticipated collecting $172,769,615 in the General Fund by fiscal year end per the
FY2020 adopted budget. The developing economic effects of the COVID-19 pandemic are being
monitored continuously and closely. The COVID-19 estimate for February sales tax included a-$27.5M,
or -15.9% reduction to budget based on the fast-paced response to the pandemic and the unknown
longevity of a subdued economy. Our community continues to prove its resilience and ability to adjust.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10475
To the Mayor and Members of the City Council September 15, 2020
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ad?? Page 3 of 3
I! SUBJECT: JULY 2020 - SALES TAX UPDATE
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The most current General Fund impact for Sales Tax is estimated to be a reduction of approximately -
$8.4M, or -4.9%, as shown in the table above. Staff will continue to provide regular updates to allow for
strategic planning to mitigate total impact to the City.
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 3rd Quarter July YTD
MCKINNEY 113.8% 111.7% 115.3% 112.6% 113.5%
EL PASO 113.4% 100.3% 97.9% 103.3% 103.9%
PLANO 100.1% 101.9% 90.8% 99.4% 97.8%
FORT WORTH 104.9% 100.5% 97.0% 98.2% 100.6%
GRAND PRAIRIE 109.9% 103.3% 93.0% 96.4% 101.1%
DALLAS 109.8% 100.2% 86.6% 95.5% 98.6%
HOUSTON 105.8% 98.6% 88.7% 92.6% 97.3%
SAN ANTON IO 104.2% 96.1% 94.2% 92.5% 97.6%
IRVING 107.3% 97.5% 101.3% 92.2% 101.0%
GARLAND 105.6% 98.9% 92.6% 91 .8% 98.3%
FRISCO 107.6% 101.5% 97.3% 91 .2% 101.1%
AUSTIN 109.3% 102.0% 90.1% 90.3% 99.4%
ARLINGTON 105.7% 95.4% 96.9% 85.2% 97.9%
STATE TOTAL 106.6% 98.9% 94.8% 94.4% 99.5%
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