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Home My WebLink AboutIR 10638 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10638 To the Mayor and Members of the City Council August 24, 2021 Page 1 of 4 �i {i7 Y *a SUBJECT: JUNE 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 June 2021 (Fiscal Year 2021, Period 9) collection results on August 11th, 2021. Actual receipts are dependent upon the timeliness and accuracy of sales tax payers' returns. This report provides Fort Worth's sales tax collections, a comparison of collections in the same period last year, and an estimated impact on the current year's budget. The past year has included a change in the method of remitting sales tax to the state comptroller (via legislation), effects of a global pandemic, and effects of an historic winter storm. This activity is being closely monitored and will be highlighted if significant impact is expected. MAY NET SALES TAX COLLECTIONS (1 O-YEAR HISTORY N C 1 1 2 3 d 5 B 7 8 9 fd The City's net sales tax collection is up $2,714,702 or 17.0%, compared to the same month last year. As depicted in the following table, the City experienced an increase of $2,908,033 or 18.7% in current period collections when compared to the same month last year. Current period collections include those for the current period that were remitted on schedule within the due date. The state experienced a net collection increase of 13.48% compared to the same month last year. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10638 To the Mayor and Members of the City Council August 24, 2021 Page 2 of 4 �i {i7 Y *a SUBJECT: JUNE 2021 — SALES TAX UPDATE #qrF rn Yg7'3 COLLECTION DETAIL FOR CITY SALES TAX Collection Detail for City Sales Tax June 20 June 21 Variance Variance(%) Current Period Collections $15,512,427 $18,420,460 $2,908,033 18.7% Other Collectians* 486,897 361,218 (125,679) (25-8%) Single Local Rate* 126,485 176,777 50,292 39-8% Audit Adjustments 215,773 178,923 (36,850) (17-1%) Service Fee (326,832) (382,748) {55,91c} (17-1%) Retainage (69,281) (94,459) (25.178) (36-3%) Net Collections $15,945,470 $18,660,172 $2,714,702 17.0% *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 yy 36.11:°16 JL4{4 2.7% 0.6% 1.5% 1.7% 4-0)% Jun-20 Ju�20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 "'pr-21 -1 ,= Jrr-=' June collections continue a trend of strong performance after several months of stagnation following the initial response to the COVID-19 pandemic in March 2020. The Texas Governor fully lifted COVID- 19 restrictions in March 2021. Although the revenue trend is positive, we continue to note the potential volatility in future receipts if the pandemic intensifies and/or new restrictions are implemented. Fiscal year projections will be updated to reflect recent performance. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10638 To the Mayor and Members of the City Council August 24, 2021 Page 3 of 4 �i {i7 Y *a SUBJECT: JUNE 2021 — SALES TAX UPDATE #qrF rn Yg7'3 The City's General Fund sales tax collections as of June are 109% to budget, and at 110.1% through the same month last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax collections as of May are 108% to budget, and 111% through the same month 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—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 June Through June Through June GENERAL FUND $125,689,216 $137,041,418 $124,420,386 CRIME CONTROL AND PREVENTION DIS' 60,764,000 65,636,495 59,117,989 TOTAL $106,454,024 $202,677,913 $183,538,374 CITY OF FORT WORTH BUDGET COMPARISON— FY2021 Projected Adapted Amended Fiscal Year Variance to Amended Budget Budget Projections CITY OF FORT WORTH GENERAL FUND $168,248,455 $168,248,455 $179,600,000 $11,351,545 6.7% CRIME CONTROL 8 PREVENTION DISTRICT $79,213,635 $79,213,635 $86,200,000 $6,986,365 &V/. fi The City anticipates collecting $179,600,000 in the General Fund by fiscal year end, which exceeds original estimates in the FY2021 adopted budget by 6.7%. This represents an 8.4% increase over fiscal year 2020 actual collections. The City's Crime Control and Prevention District Fund (CCPD) anticipates collecting $86,200,000 by fiscal year end, which exceeds the original estimates in the FY2021 adopted budget by 8.8% and represents a 9.5% increase over fiscal year 2020 actual collections. 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. 21-10638 To the Mayor and Members of the City Council August 24, 2021 Page 4 of 4 i SUBJECT: JUNE 2021 - SALES TAX UPDATE r rn Yg73 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 1 st Quarter 2nd Quarter June YTD FRISCO 108.9% 116.2% 122.7% 137_5% AU TIN 96.7% 103.8% 123.3% 123.9% ARLIN TON 104.9% 115_9% 148.1% 139.3% DALLA 96.2% 104.1% 122.8% 123.8% PLANO 96.0% 97.8% 109.5% 119.9% HOU TON 93_5% 103.8% 118.2% 120.4% EL PA O 100.0% 117.3% 122.4% 130.0% AN ANTONIO 100.E% 110.1% 117.1% 127.4% GARLAND 100.7% 112.3% 123.2% 129_5% IMCKINNEY 109.7% 114.1% 117.4% 130.0% IRVIN 97.3% 94.5% 117.0% 117.2% FORT WORTH 101.9% 109.1% 117.0% 126_ % GRAND PRAIRIE 106.0% 108.1% 102.2% 126.6% STATE TOTAL 96.1% 104.5% 113.5% 120.5% 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