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HomeMy WebLinkAbout(0004) IR 10353 - Sales Tax October 2019INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10353 To the Mayor and Members of the City Council Da * r rn { 1675 SUBJECT: OCTOBER 2019 — SALES TAX UPDATE December 17, 2019 Page 1 of 3 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 October 2019 (Fiscal Year 2020, Period 1) collection results on December 11th, 2019. 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. Legislation has currently reformed how sales tax is remitted to the state comptroller. This activity is being closely monitored and will be reported on if significant impact is expected. OCTOBER NET SALES TAX COLLECTIONS (1 O-YEAR HISTORY FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 The City's net sales tax collection is up $983,173 or 7.6%, compared to the same month last year. As depicted in the table below, the City experienced $1,085,521 or an 8.7% increase in current period collections when compared to last year's collections for the same month. Current period collections include transactions that were collected for the current period on schedule within the due date. COLLECTION DETAIL FOR CITY SALES TAX October 18 October 19 Variance ($) Variance (%) Current Period Collections $12,488,890 $13,574,410 $1,085,521 8.7% Other Collections 448,130 479,355 31,225 7.0% Audit Adjustments 265,303 166,631 (98,672) (37.2%) Service Fee (264,046) (284,408) (20,361) (7.7%) Retainage 30,695 16,155 (14,539) (47.4%) Net Collections $12,968,971 $13,952,144 $983,173 7.6% "NON -CURRENT COLLECTIONS ARE PAYMENTS ATTRIBUTED TO NON -CURRENT COLLECTIONS INCLUDING PRIOR PERIOD, FUTURE PERIOD AND UNIDENTIFIED 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. 10353 To the Mayor and Members of the City Council Da * r rn { 1675 SUBJECT: OCTOBER 2019 — SALES TAX UPDATE CURRENT PERIOD COLLECTIONS Change Compared to Same Month in Prior Year 9.6% 4.5% 3.8% 5.2% 2.6% 3.6% December 17, 2019 Page 2of3 7.5% 8.7% 4.5% - ■ 3.1 2.8% Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 (1.1)% The City's General Fund sales tax collections as of FY2020 M01 are 104.3% to budget, and at 107.6% for the same period last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax collections as of FY2020 M01 are 106.1 % to budget, and 108.2% for the same period last year. CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON Budget as of Current Receipts FY2019 Receipts CITY OF FORT WORTH Period 1 Through Period 1 Through Period 1 GENERAL FUND $13,378,851 $13,952,144 $12,968,971 CRIME CONTROL AND PREVENTION DISTRICT 6,298,783 6,684,465 6,178,197 TOTAL $19,677,634 $20,636,609 $19,147,169 CITY OF FORT WORTH BUDGET COMPARISON — FY2019 Projected Adopted Amended Fiscal Year Variance to Amended Budget Budget Projections CITY OF FORT WORTH GENERAL FUND $172,769,615 $172,769,615 $172,769,615 $0 0.0% CRIME CONTROL & PREVENTION DISTRICT $81,340,193 $81,340,193 $81,340,193 $0 0.0% The City anticipates collecting $172,769,615 by fiscal year end, which matches original estimates in the FY2020 adopted budget. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10353 To the Mayor and Members of the City Council NATEA r� a *a r6rn � SUBJECT: OCTOBER 2019 — SALES TAX UPDATE December 17, 2019 Page 3 of 3 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 October EL PASO 123.2% GRAND PRAIRIE 115.6% IRVING 112.5% MCKINNEY 111.6% DALLAS 111.4% FRISCO 110.7% FORT WORTH 107.6% ARLINGTON 107.6% HOUSTON 106.9% AUSTIN 104.2% PLANO 104.2% GARLAND 103.2% SAN ANTONIO 101.1 % STATE TOTAL 107.0% 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