HomeMy WebLinkAboutIR 10533 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10533
To the Mayor and Members of the City Council January 12, 2021
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I! SUBJECT: NOVEMBER 2020 — SALES TAX UPDATE
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Sales tax revenue represents approximately twenty-two percent of General Fund Sales Tax
the City's General Fund anticipated revenue in Fiscal Year 2021.
It is the second largest revenue source, with property tax being the
largest. In addition, sales tax revenue represents the largest a
revenue source in the Crime Control and Prevention District Fund. Sales Tax
Staff is committed to providing regular updates on this important All other revenue
and sometimes volatile revenue source.
The Texas Comptroller's Office posted November 2020 (Fiscal Year 2021, Period 2) collection results
on January 6th, 2021. 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. The past year has included changes from legislation reformed in
how sales tax is remitted to the state comptroller, as well as the affects from a global pandemic. This
activity is being closely monitored and will be reported on if significant impact is expected.
NOVEMBER NET SALES TAX COLLECTIONS (1 O-YEAR HISTORY
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FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
The City's net sales tax collection is up $1,180,834 or 9.3%, compared to the same month last year. As
depicted in the table below, the City experienced $698,832 or a 5.4% increase in current period
collections when compared to last year's collections for the same month. Current period collections
include transactions that were collected for the current period on schedule within the due date. Current
collections are performing in line with expectations considering the adverse effects of COVID-19. Net
Collections performed better than the State's decrease of -5.05% compared to last year.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10533
To the Mayor and Members of the City Council January 12, 2021
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SUBJECT: NOVEMBER 2020 — SALES TAX UPDATE
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COLLECTION DETAIL FOR CITY SALES TAX
November 19 November 20 Variance ($) Variance (%)
Current Period Collections $13,039,613 $13,738,444 $698,832 5.4%
Other Collections* 25,278 146,089 120,811 477.9%
Single Local Rate 62,321 133,678 71,358 114.5%
Audit Adjustments (183,127) 160,386 343,513 187.6%
Service Fee (258,882) (283,572) (24,690) (9.5%)
Retainage 25,016 (3,973) (28,989) (115.9%)
Net Collections $12,710,219 $13,891,053 $1,180,834 9.3%
*OTHER COLLECTIONS ARE PAYMENTS ATTRIBUTED TO NON-CURRENT COLLECTIONS INCLUDING PRIOR PERIOD,FUTURE PERIOD AND UNIDENTIFIED
COLLECTIONS.SINGLE LOCAL RATE IS COLLECTIONS FROM REMOTE SELLERS WHO HAVE OPTED TO UTILIZE THE STATES ALTERNATE SINGLE LOCAL USE
RATE OF 1.75%.THIS SINGLE LOCAL RATE CANNOT BE USED BY BUSINESSES LOCATED IN TEXAS.AUDIT ADJUSTMENTS MAY FLUCTUATE BASED UPON
RESULTS OF TAXPAYER SALES TAX AUDITS CONDUCTED BY THE STATE OF TEXAS.
CURRENT PERIOD COLLECTIONS
Change Compared to Same Month in Prior Year
8.4%
° 4.8% 5.4%
3.8/°
0.6% 2.7%
0.6%
(0.2)% (1.3)%
(2.6)%
r(5.
(7.8)%
(12.9)%
Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20
The City's General Fund sales tax collections as of November are 105.1% to budget, and at 103.6%
for the same period last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax
collections as of November are 105.4% to budget, and 104.5% for the same period last year. The
comparison of performance to budget is based on a historic three year collection trend by month. Fiscal
years 2017, 2018 and 2019 were included in this calculation, while fiscal year 2020 was excluded due
to the irregularity caused by the pandemic.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10533
To the Mayor and Members of the City Council January 12, 2021
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I! SUBJECT: NOVEMBER 2020 — SALES TAX UPDATE
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CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON
Current Receipts FY2020 Receipts
CITY OF FORT WORTH Budget as of November Through November Through November
GENERAL FUND $26,282,557 $27,614,900 $26,662,363
CRIME CONTROL AND PREVENTION DISTRICT 12,706,377 13,395,223 12,813,831
TOTAL $38,988,934 $41,010,122 $39,476,194
CITY OF FORT WORTH BUDGET COMPARISON— FY2021
Projected
Adopted Amended Fiscal Year Variance to Amended
Budget Budget Projections
CITY OF FORT WORTH
GENERAL FUND $168,248,455 $168,248,455 $168,248,455 $0 0.0%
CRIME CONTROL& PREVENTION DISTRICT $79,213,635 $79,213,635 $79,213,635 $0 0.0%
The City anticipates collecting $168,248,488 by fiscal year end, which matches original estimates in the
FY2021 adopted budget. This is 1.56% over fiscal year 2020 actual collections. At the time of budget
development, this represented a 4% increase over the June 2020 projected sales tax. Staff will continue
to provide regular updates as financial analysis continues for sales tax impacts due to COVID-19.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10533
To the Mayor and Members of the City Council January 12, 2021
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I! SUBJECT: NOVEMBER 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 FY2020 collections for the same period.
CITIES COMPARISON- NET COLLECTIONS
FY2021 vs. FY2020
City October November YTD
MCKINNEY 106.6% 114.8% 110.6%
FRISCO 105.8% 113.5% 109.6%
GRAND PRAIRIE 100.1% 111 .7% 105.7%
FORT WORTH 98.4% 109.3% 103.6%
ARLINGTON 105.3% 107.3% 106.3%
GARLAND 97.6% 106.8% 102.1%
I RVI NG 90.2% 105.8% 97.5%
SAN ANTONIO 99.9% 101 .5% 100.7%
EL PASO 99.5% 101 .4% 100.4%
AUSTIN 97.1% 98.1% 97.6%
HOUSTON 87.9% 95.9% 91.7%
DALLAS 91.7% 93.3% 92.5%
PLANO 95.8% 92.3% 94.1%
STATE TOTAL 93.7% 95.0% 94.3%
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 Budget and Analysis, at
817-392-7934.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS