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Home My WebLink AboutIR 10666 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10666 To the Mayor and Members of the City Council September 21, 2021 Page 1 of 4 �i {i7 Y *a SUBJECT: JULY 2021 — SALES TAX UPDATE #qrF rn Yg7'3 Sales tax revenue represents approximately twenty-two percent of General Fund Sales Tax 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 c revenue source in the Crime Control and Prevention District Fund. ZZ� Sales Tax Staff is committed to providing regular updates on this important, All other revenue and sometimes volatile, revenue source. The Texas Comptroller's Office posted July 2021 (Fiscal Year 2021, Period 10) collection results on September 9th, 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 a historic winter storm. This activity is being closely monitored and will be highlighted if significant impact is expected. JULY NET SALES TAX COLLECTIONS (1 O-YEAR HISTORY N C O = ® ® I I I . ® ® ® ® ® , FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 The City's net sales tax collection is up $3,096,992 or 23.6%, compared to the same month last year. As depicted in the following table, the City experienced an increase of $2,496,733 or 19.4% in current period collections when compared to the same month last year. Current period collections include activity that was remitted for the current period that were on schedule within the due date. The State experienced a net collection increase of 18.26% compared to the same month last year. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 21-10666 To the Mayor and Members of the City Council September 21, 2021 Page 2 of 4 �i {i7 Y *a SUBJECT: JULY 2021 — SALES TAX UPDATE #qrF rn Yg7'3 COLLECTION DETAIL FOR CITY SALES TAX July 20 July 21 Variance ($) Variance (%) Current Period Collections $12,882,913 $15,379,646 $2,496,733 19.4% Other Collections* 247,439 738,045 490,606 198.3% Single Local Rate* 96,713 134,283 37,570 38.8% Audit Adjustments 76,896 219,620 142,724 185.6% Service Fee (266,079) (329,432) (63,353) (23.8%) Retainage 59,537 52,249 (7,288) (12.2%) Net Collections $13,097,419 $16,194,411 $3,096,992 23.6% *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 STATE'S 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% 18.7% 19.4% 5.4% o 0 0.6% 1.5/0 1. /o 7 (2.6)% (0.2)% (1.3)% Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 July 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. 21-10666 To the Mayor and Members of the City Council September 21, 2021 Page 3 of 4 �i {i7 Y *a SUBJECT: JULY 2021 — SALES TAX UPDATE #qrF rn Yg7'3 The City's General Fund sales tax collections as of July are 110.1% to budget, and at 111.4% through the same month last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax collections as of July are 109.2%to budget, and 112.3%through the same month last year. The monthly 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 July Through July Through July GENERAL FUND $139,174,104 $153,235,829 $137,517,805 CRIME CONTROL AND PREVENTION DISTRICT 67,284,116 73,491,347 65,439,529 TOTAL $206,458,220 $226,727,176 $202,957,334 CITY OF FORT WORTH BUDGET COMPARISON— FY2021 Projected Adopted Amended Fiscal Year Variance to Amended Budget Budget Projections ($) (%) CITY OF FORT WORTH GENERAL FUND $168,248,455 $168,248,455 $179,600,000 $11,351,545 6.7% 1p CRIME CONTROL&PREVENTION DISTRICT $79,213,635 $79,213,635 $86,200,000 $6,986,365 8.8% f 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 is 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%. This is 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. 21-10666 To the Mayor and Members of the City Council September 21, 2021 Page 4 of 4 �i {i7 Y *a SUBJECT: JULY 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 3rd Quarter July YTD ARLINGTON 104.9% 115.9% 144.2% 169.2% 126.0% FRISCO 108.9% 116.2% 135.3% 136.9% 121.1% AUSTIN 96.7% 103.8% 131.0% 127.8% 111.2% DALLAS 96.2% 104.1% 131.9% 126.0% 110.9% FORT WORTH 101.9% 109.1% 120.4% 123.6% 111.4% GRAND PRAIRIE 106.0% 108.1% 113.6% 123.3% 110.6% IRVING 97.3% 94.5% 118.9% 121.7% 104.8% GARLAND 100.7% 112.3% 128.5% 121.1% 114.0% EL PASO 100.0% 117.3% 127.9% 119.9% 114.8% SAN ANTONIO 100.6% 110.1% 123.6% 119.4% 111.8% HOUSTON 93.5% 103.8% 124.4% 119.2% 107.5% PLANO 96.0% 97.8% 122.2% 116.7% 105.7% MCKINNEY 109.7% 114.1% 116.5% 114.2% 113.5% STATE TOTAL 96.1% 104.5% 120.2% 118.3% 107.7% 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