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HomeMy WebLinkAbout(0002) IR 10368 - December 2019 - Sales Tax UpdateINFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10368 To the Mayor and Members of the City Council February 18, 2020 Page 1 of 3 SUBJECT: DECEMBER 2019 — SALES TAX UPDATE ears 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 December 2019 (Fiscal Year 2020, Period 3) collection results on February 12th, 2020. 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 closely monitored and will be reported on if significant impact is expected. DECEMBER 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 $1,597,002 or 9.6%, compared to the same month last year. As depicted in the table below, the City experienced $1,403,366 or an 8.4% increase in current period collections when compared to last year's collections for the same month. Last year's current period collections realized growth of 3.6%. Current period collections include transactions that were collected for the current period on schedule within the due date. COLLECTION DETAIL FOR CITY SALES TAX Current Period Collections Other Collections* Audit Adjustments Service Fee Retainage Net Collections December 18 December 19 $16,676,084 $18,079,450 270,259 572,613 72,999 40,637 (340,387) (373,854) Variance ($) Variance (%) $1,403,366 8.4% 302,354 111.9% (32,362) (44.3%) (33,467) (9.8%) (69,784) (112,673) (42,889) (61.5%) $16,609,171 $18,206,173 $1,597,002 9.6% "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 To the Mayor and Members of the City Council hATEPt r4 rp; a {L7 3 *a SUBJECT: DECEMBER 2019 — SALES TAX UPDATE r6rn � Y@7'3 CURRENT PERIOD COLLECTIONS Change Compared to Same Month in Prior Year No. 10368 February 18, 2020 Page 2 of 3 9.6% 7.5% 8.7% ° 8.4 /o ° ° 3.6% 4.5% W 3.8 /° 5.2% 2.8% 4.5% 3.1 % _ = 3.8 /° - Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 (1.1)% The City's General Fund net sales tax collections through FY2020 M03 are 100.9% to budget, and at 104.9% for the same period last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax collections through FY2020 M03 are 102.1 % to budget, and 105.0% for the same period last year. CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON CITY OF FORT WORTH GENERALFUND CRIME CONTROL AND PREVENTION DISTRICT TOTAL Budget as of Current Receipts FY2019 Receipts Period 3 Through Period 3 Through Period 3 $44,463,598 $44,868,536 $42,762,861 20,933,529 21,371,519 20,363,155 $65,397,127 $66,240,055 $635126,015 CITY OF FORT WORTH BUDGET COMPARISON — FY2020 Projected Variance to Amended Adopted Amended Fiscal Year 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 in the General Fund 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. 10368 To the Mayor and Members of the City Council February 18, 2020 Page 3 of 3 a { SUBJECT: DECEMBER 2019 - SALES TAX UPDATE r rn Y@73 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 November December YTD MCKINNEY 111.6% 111.0% 117.7% 113.8% AUSTIN 104.2% 108.2% 114.5% 109.3% EL PASO 123.2% 106.2% 112.4% 113.4% FRISCO 110.7% 99.1% 112.3% 107.6% GARLAND 103.2% 102.1% 110.2% 105.6% FORT WORTH 107.6% 96.4% 109.6% 104.9% GRAND PRAIRIE 115.6% 105.0% 109.3% 109.9% ARLINGTON 107.6% 99.3% 109.2% 105.7% DALLAS 111.4% 109.1 % 109.1 % 109.8% IRVING 112.5% 102.7% 106.7% 107.3% HOUSTON 106.9% 104.3% 106.2% 105.8% SAN ANTONIO 101.1 % 107.4% 104.4% 104.2% PLANO 104.2% 106.7% 93.3% 100.1 % STATE TOTAL 107.0% 106.2% 104.8% 106.0% 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 Planning and Data Analytics, at 817-392-7934. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS