HomeMy WebLinkAbout(0006) IR 20-10525 - October Sales Tax UpdateINFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 20-10525
To the Mayor and Members of the City Council December 15, 2020
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� SUBJECT: OCTOBER 2020 —SALES TAX UPDATE
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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
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.
General Fund Sales Tax
Sales Tax
All other revenue
The Texas Comptroller's Office posted October 2020 (Fiscal Year 2021, Period 1) collection results on
December 9th, 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. 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.
OCTOBER NET SALES TAX COLLECTIONS (1 O-YEAR HISTORY
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
The City's net sales tax collection is down-$228,297 or -1.6%, compared to the same month last year.
As depicted in the table below, the City experienced-$180,632 or a -1.3% decrease 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 -6.35% compared to last year.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 20-10525
To the Mayor and Members of the City Council December 15, 2020
Page 2 of 4
SUBJECT: OCTOBER 2020 —SALES TAX UPDATE
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Current Period Collections
Other Collections*
Audit Adjustments
Service Fee
Retainage
Net Collections
COLLECTION DETAIL FOR CITY SALES TAX
October 19 October 20
$13,574,410 $13,393,778
479,355
334,435
166,631
247,685
(284,408)
(279,518)
16,155
27,466
Variance ($) Variance (%)
($180,632)
(1.3%)
(144,919)
(30.2%)
81,054
48.6%
4,890
1.7%
11,310 70.0%
$13,952,144 $13,723,847 ($228,297) (1.6%)
*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.)
CURRENT PERIOD COLLECTIONS
Change Compared to Same Month in Prior Year
8.7% 8.4%
4.8%
3.8%
0.6% 2.7%
0.6%
(0.2)% (1.3)%
(2.6)%
(7.8)%
(12.9)%
Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20
The City's General Fund sales tax collections as of October are 105.3% to budget, and at 98.4% for
the same period last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax
collections as of October are 105.9% to budget, and 109.7% 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. 20-10525
To the Mayor and Members of the City Council December 15, 2020
o
Page 3 of 4
� SUBJECT: OCTOBER 2020 —SALES TAX UPDATE
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CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON
CITY OF FORT WORTH
GENERALFUND
CRIME CONTROL AND PREVENTION DISTRICT
TOTAL
Current Receipts FY2020 Receipts
Budget as of October Through October Through October
$13,028,743 $13,723,847 $13,952,144
6,298,783 6,667,658 6,684,465
$19,327,526 $20,391,505 $20,636,609
CITY OF FORT WORTH BUDGET COMPARISON — FY2021
Adopted Amended Fiscal Year
Budget Budget Projections
CITY OF FORT WORTH
GENERAL FUND $168,248,455 $168,248,455 $168,248,455
CRIME CONTROL & PREVENTION DISTRICT $79,213,635 $79,213,635 $79,213,635
Projected
Variance to Amended
$0 0.0%
$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. 20-10525
To the Mayor and Members of the City Council December 15, 2020
o
Page 4 of 4
� SUBJECT: OCTOBER 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
MCKINNEY
106.6%
FRISCO
105.8%
ARLINGTON
105.3%
GRAND PRAIRIE
100.1%
SAN ANTONIO
99.9%
EL PASO
99.5%
FORT WORTH
98.4%
GARLAND
97.6%
AUSTIN
97.1 %
PLANO
95.8%
DALLAS
91.7%
IRVING
90.2%
HOUSTON
87.9%
STATE TOTAL 93.7%
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