HomeMy WebLinkAboutIR 10515 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10515
To the Mayor and Members of the City Council November 17, 2020
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I! SUBJECT: SEPTEMBER 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 September 2020 (Fiscal
Year 2020, Period 12) collection results on November 11th, 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.
SEPTEMBER 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 up $315,650 or 2.1%, compared to the same month last year. As
depicted in the table below, the City experienced $86,874 or a 0.6% increase in current period
collections when compared to last year's collections for the same month. Last year's current period
collections saw an increase of 7.5% over the prior year. Current period collections include transactions
that were collected for the current period on schedule within the due date. Current collections are
performing in line with expectations considering the adverse effects of COVID-19. Net Collections
performed better than the State's decrease of -4.78% compared to last year. Future collections will
continue to provide further understanding of the ongoing economic impact from the pandemic.
COLLECTION DETAIL FOR CITY SALES TAX
September 19 September 20 Variance($) Variance(%)
Current Period Collections $15,328,255 $15,415,129 $86,874 0.6%
Other Collections* 88,122 465,542 377,421 428.3%
Audit Adjustments (371,721) (503,463) (131,743) (35.4%)
Service Fee (300,893) (307,544) (6,651) (2.2%)
Retainage (28,915) (39,166) (10,252) (35.5%)
Net Collections $14,714,848 $15,030,498 $315,650 2.1%
"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. 20-10515
To the Mayor and Members of the City Council November 17, 2020
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I! SUBJECT: SEPTEMBER 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% °
4.8/°
0.6% 2.7%
0.6%
(2.6)%
r(5.
(7.8)%
(12.9)%
Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20
The City's General Fund net sales tax collections through September are 95.9% 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 September are 96.7% 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 September Through September Through September
GENERAL FUND $172,769,615 $165,658,172 $164,704,100
CRIME CONTROL AND PREVENTION DISTRICT 81,340,193 78,692,079 78,122,566
TOTAL $254,109,808 $244,350,252 $242,826,666
CITY OF FORT WORTH BUDGET COMPARISON — FY2020
Adopted Amended Actual Fiscal Variance to Amended
Budget Budget Year Totals ($) (%)
CITY OF FORT WORTH
GENERAL FUND $172,769,615 $172,769,615 $165,658,172 ($7,111,443) -4.1%
CRIME CONTROL&PREVENTION DISTRICT $81,340,193 $81,340,193 $78,692,079 ($2,648,114) -3.3%
The City originally anticipated collecting $172,769,615 in the General Fund by fiscal year end per the
FY2020 adopted budget. Over the course of monitoring the significance of COVID-19 on sales tax, city
staff lowered anticipated collections by approximately -$8.4M, or -4.9%. Our community continues to
prove its resilience and ability to adjust. The City's General Fund actual collections ended shy of the
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 20-10515
To the Mayor and Members of the City Council November 17, 2020
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I! SUBJECT: SEPTEMBER 2020 - SALES TAX UPDATE
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FY2020 budget by -$7.1 M, or -4.1%. Staff will continue to provide regular updates to allow for strategic
planning to mitigate total impact to the City as we move forward into the new fiscal year.
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 M Quartei YTD
MCKINNEY 113.8% 111.7% 115.3% 111.2% 113.0%
EL PASO 113.4% 100.3% 97.9% 104.8% 104.2%
GRAND PRAIRIE 109.9% 103.3% 93.0% 102.7% 101.9%
FRISCO 107.6% 101.5% 97.3% 97.6% 101.1%
FORT WORTH 104.9% 100.5% 97.0% 99.7% 100.6%
IRVING 107.3% 97.5% 101.3% 96.1% 100.5%
ARLINGTON 105.7% 95.4% 96.9% 99.0% 99.3%
AUSTIN 109.3% 102.0% 90.1% 95.8% 99.3%
DALLAS 109.8% 100.2% 86.6% 100.0% 99.1%
PLANO 100.1% 101.9% 90.8% 101.7% 98.6%
GARLAND 105.6% 98.9% 92.6% 95.5% 98.1%
SAN ANTONIO 104.2% 96.1% 94.2% 97.7% 98.1%
HOUSTON 105.8% 98.6% 88.7% 94.7% 97.0%
STATE TOTAL 106.6% 98.9% 94.8% 94.9% 98.8%
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