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Home My WebLink AboutIR 10613 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10613 To the Mayor and Members of the City Council August 3, 2021 Page 1 of 4 �i {i7 Y *a SUBJECT: MAY 2021 — SALES TAX UPDATE #qrF rn Yg7'3 General Fund Sales Tax Sales tax revenue represents approximately twenty-two percent of 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 Z�a� Sales Tax revenue source in the Crime Control and Prevention District Fund. All other revenue Staff is committed to providing regular updates on this important and sometimes volatile revenue source. The Texas Comptroller's Office posted May 2021 (Fiscal Year 2021, Period 8) collection results on July 8th, 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 which reformed how sales tax is remitted to the state comptroller, as well as the affects from a global pandemic and a winter storm. This activity is being closely monitored and will be reported on if significant impact is expected. MAY NET SALES TAX COLLECTIONS (1 O-YEAR HISTORY tq -EMMOMMUMMMM C FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 The City's net sales tax collection is up $1,529,596 or 12.2%, compared to the same month last year. As depicted in the following table, the City experienced an increase of $2,527,954 or 20.9% in current period collections when compared to last year's collections for the same month. Current period collections include transactions that were collected for the current period on schedule within the due date. The State experienced a net collection increase of 18.06% compared to last year. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10613 To the Mayor and Members of the City Council August 3, 2021 Page 2 of 4 �i {i7 Y *a SUBJECT: MAY 2021 — SALES TAX UPDATE #qrF rn Yg7'3 COLLECTION DETAIL FOR CITY SALES TAX May 20 May 21 Variance ($) Variance (%) Current Period Collections $12,113,104 $14,641,057 $2,527,954 20.9% Other Collections* 380,383 234,890 (145,493) (38.2%) Single Local Rate* 86,084 136,540 50,457 58.6% Audit Adjustments 227,276 (694,455) (921,731) (405.6%) Service Fee (256,137) (286,361) (30,224) (11.8%) Retainage (21,083) 27,550 48,634 230.7% Net Collections $12,529,626 $14,059,222 $1,529,596 12.2% *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 36.8% 32.4% 20.9% 5.4% ' ° 0.6% 1.5% 1.7% (5.1)% (2.6)% (0.2)% (1.3)% (4.0)% May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 May collections continue to demonstrate progress after the lag experienced as a result from the pandemic which began last year. The Governor fully lifted COVID restrictions in March of this year as compared to the restrictions enacted in March of last year. As current activity is seen increasing, we continue to note that the same month last year was experiencing the negative impacts and decline in revenue from the onset of COVID-19 as the City declared a local disaster and implemented restrictions. The last few months have shown great performance, at near pre-pandemic levels. Fiscal year projections will be updated as activity steadies. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10613 To the Mayor and Members of the City Council August 3, 2021 Page 3 of 4 �i {i7 Y *a SUBJECT: MAY 2021 — SALES TAX UPDATE #qrF rn Yg7'3 The City's General Fund sales tax collections as of May are 107.4% to budget, and at 109.1% through the same period last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax collections as of May are 106.6%to budget, and 109.9%through the same period last year. The monthly 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. CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON Current Receipts FY2020 Receipts CITY OF FORT WORTH Budget as of May Through May Through May GENERAL FUND $110,184,199 $118,381,246 $108,474,916 CRIME CONTROL AND PREVENTION DISTRICT 53,268,864 56,802,057 51,667,705 TOTAL $163,453,063 $175,183,303 $160,142,621 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. 21-10613 To the Mayor and Members of the City Council August 3, 2021 Page 4 of 4 �i {i7 Y *a SUBJECT: MAY 2021 - 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 FY2020 collections for the same period. CITIES COMPARISON- NET COLLECTIONS FY2021 vs. FY2020 City 1st Quarter 2nd Quarter May YTD FRISCO 108.9% 116.2% 139.8% 119.1% AUSTIN 96.7% 103.8% 133.3% 107.6% ARLINGTON 104.9% 115.9% 130.3% 117.8% DALLAS 96.2% 104.1% 127.9% 107.5% PLANO 96.0% 97.8% 126.1% 103.8% HOUSTON 93.5% 103.8% 125.2% 104.7% EL PASO 100.0% 117.3% 124.5% 113.1% SAN ANTONIO 100.6% 110.1% 122.7% 110.1% GARLAND 100.7% 112.3% 120.5% 111.8% MCKINNEY 109.7% 114.1% 117.0% 112.8% IRVING 97.3% 94.5% 114.6% 101.2% FORT WORTH 101.9% 109.1% 112.2% 109.1% GRAND PRAIRIE 106.0% 108.1% 109.8% 110.3% STATE TOTAL 96.1% 104.5% 118.1% 105.6% Source: Allocation Payment Detail and Monthly All Fund Revenue Report, Texas Comptroller of Public Accounts If you have any questions, please call Mark McAvoy, Director of Planning and Data Analytics, at 817- 392-6222. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS