HomeMy WebLinkAboutIR 10702INFORMAL REPORT TO CITY COUNCIL MEMBERS
To the Mayor and Members of the City Council
SUBJECT: SEPTEMBER 2021 — SALES TAX UPDATE
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.
No. 21-10702
November 16, 2021
Page 1 of 4
General Fund Sales Tax
Sales Tax
All other revenue
The Texas Comptroller's Office posted September 2021 (Fiscal Year 2021, Period 12) collection results
on November 10th, 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.
C
0
$10.7
SEPTEMBER NET SALES TAX COLLECTIONS (10-YEAR HISTORY)
$11.2
$12.3
$12.3
$13.0
$14.0
$14.4
$14.7
$15.0
$18.7
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
The City's net sales tax collection is up $3,707,423 or 24.7%, compared to the same month last year.
As depicted in the following table, the City experienced an increase of $3,017,057 or 19.6% in current
period collections when compared to the same month last year. Current period collections include
activity that was remitted for the current period that were on schedule within the due date. The State
experienced a net collection increase of 25.22% compared to the same month last year.
COLLECTION DETAIL FOR CITY SALES TAX
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
To the Mayor and Members of the City Council
SUBJECT: SEPTEMBER 2021 — SALES TAX UPDATE
No. 21-10702
November 16, 2021
Page 2 of 4
Collection Detail for City Sales Tax
September 20 September 21 Variance ($) Variance (%)
Current Period Collections $15,415,129 $18,432,187 $3,017,057 19.6%
Other Collections* 350,974 382,869 31,895 9.1 %
Single Local Rate* 114,568 182,643 68,075 59.4%
Audit Adjustments (503,463) 189,862 693,325 137.7%
Service Fee (307,544) (383,751) (76,207) (24.8%)
Retainage (39,166) (65,890) (26,723) (68.2%)
Net Collections $15,030,498 $18,737,920 $3,707,423 24.7%
*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
32.4%
36.8%
20.9% 18.7% 19.4% 18.8% 19.6%
0.6% 1.5% 1.7%
(1.3)%
(4.0)%
Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21
7
T T
-F
September collections continued 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 were updated toward the end of the summer to reflect recent performance.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
To the Mayor and Members of the City Council
SUBJECT: SEPTEMBER 2021 — SALES TAX UPDATE
No. 21-10702
November 16, 2021
Page 3 of 4
The City's General Fund sales tax collections as of September are 111.4% to the adopted budget, and
at 113.2% through the same month last year. The City's Crime Control and Prevention District Fund
(CCPD) sales tax collections as of September are 113.3% to budget, and 114.1% 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
GENERAL FUND
CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON
Budget as of
September
$168,248,455
CRIME CONTROL AND PREVENTION DISTRICT 79,213,635
TOTAL $247,462,090
Current Receipts
Through September
$187,495,736
89,778,516
$277,274,252
CITY OF FORT WORTH BUDGET COMPARISON — FY2021
CITY OF FORT WORTH
GENERAL FUND
CRIME CONTROL & PREVENTION DISTRICT
Adopted
Budget
$168,248,455
$79,213,635
Amended
Budget
$169,991,455
$79,213,635
Actual Fiscal
Year Totals
$187,495,736
$89,778,516
FY2020 Receipts
Through September
$165,658,172
78,692,079
$244,350,252
Actual
Variance to Adopted
($) (%)
$19,247,281 11.4%
$10,564,881 13.3%
Actual collections in FY2021 totaled $187,495,736 in the General Fund, which is 11.4% higher
($19,247,281) than the adopted budget amount of $168,248,455 and 4.4% higher ($7,895,736) than
the revised estimated collections of $179,600,000. This amount represents a 13.2% increase over
FY2020 actual collections.
Actual collections in FY2021 totaled $89,778,516 in the Crime Control and Prevention District Fund
(CCPD), which is 13.3% higher ($10,564,881) than the adopted budget amount of $79,213,635 and
4.2% higher ($3,578,516) than the revised estimated collections of $86,200,000. This amount
represents a 14.1% increase over FY2020 actual collections.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
To the Mayor and Members of the City Council
SUBJECT: SEPTEMBER 2021 - SALES TAX UPDATE
No. 21-10702
November 16, 2021
Page 4 of 4
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.
City
ARLINGTON
FRISCO
GARLAND
EL PASO
AUSTIN
DALLAS
MCKINNEY
FORT WORTH
SAN ANTONIO
GRAND PRAIRIE
HOUSTON
PLANO
IRVING
STATE TOTAL
CITIES COMPARISON - NET COLLECTIONS
FY2021 vs. FY2020
1st Quarter
104.9%
108.9%
100.7%
100.0%
96.7%
96.2%
109.7%
101.9%
100.6%
106.0%
93.5%
96.0%
97.3%
96.1
2nd Quarter
115.9%
116.2%
112.3%
117.3%
103.8%
104.1
114.1%
109.1
110.1%
108.1
103.8%
97.8%
94.5%
104.5%
3rd Quarter
144.2%
135.3%
128.5%
127.9%
131.0%
131.9%
116.5%
120.4%
123.6%
113.6%
124.4%
122.2%
118.9%
120.2%
4th Quarter
148.7%
128.8%
130.4%
116.9%
131.3%
129.5%
115.8%
122.3%
118.4%
123.4%
118.9%
114.9%
118.4%
YTD
128.6%
121.8%
117.6%
114.9%
114.8%
114.0%
114.0%
113.2%
112.9%
112.8%
109.3%
107.1%
106.8%
121.9% 110.2%
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