HomeMy WebLinkAbout2021/10/19-Attachments-IR 21-10693 - August 2021 - Sales Tax UpdateINFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 21-10693
To the Mayor and Members of the City Council October 19, 2021
Page 1 of 4
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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 general fund revenue source, behind only
property tax revenue. 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 August 2021 (Fiscal Year 2021, Period 11) collection results on
October 6th, 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.
AUGUST NET SALES TAX COLLECTIONS (10-YEAR HISTORY)
FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
The City's net sales tax collection is up $2,412,117 or 18.4%, compared to the same month last year.
As depicted in the following table, the City experienced an increase of $2,464,224 or 18.8% in current
period collections when compared to the same month last year. Current period collections include
activity that was remitted for the current period that were on schedule within the due date. The State
experienced a net collection increase of 22.25% compared to the same month last year.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 21-10693
October 19, 2021
To the Mayor and Members of the City Council
Page 2 of 4
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AUGUST 2021 — SALES TAX UPDATE
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COLLECTION DETAIL FOR CITY SALES TAX
August 20
August 21
Variance ($)
Variance (%)
Current Period Collections
$13,111,772
$15,575,995
$2,464,224
18.8%
Other Collections*
104,019
159,581
55,562
53.4%
Single Local Rate*
101,012
163,128
62,116
61.5%
Audit Adjustments
62,115
(72,858)
(134,973)
(217.3%)
Service Fee
(267,578)
(316,517)
(48,939)
(18.3%)
Retainage
(1,469)
12,657
14,126
961.5%
Net Collections
$13,109,870
$15,521,987
$2,412,117
18.4%
*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
36.8%
0.6% 5.4%
(0.2)% (1.3)%
20.9% 18.70yo 19.4% 18.8%
(4.0)%
Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21
August 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. 21-10693
To the Mayor and Members of the City Council October 19, 2021
Page 3 of 4
SUBJECT: AUGUST 2021 — SALES TAX UPDATE
ears
The City's General Fund sales tax collections as of August are 110.5% to budget, and at 112.0%
through the same month last year. The City's Crime Control and Prevention District Fund (CCPD) sales
tax collections as of August are 109.7% to budget, and 112.9% 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
CITY OF FORT WORTH
GENERALFUND
CRIME CONTROL AND PREVENTION DISTRICT
TOTAL
Current Receipts FY2020 Receipts
Budget as of August Through August Through August
$152,772,471 $168,757,816 $150,627,675
73,858,284 81,017,684 71,746,663
$226,630,755 $249,775,500 $222,374,338
CITY OF FORT WORTH BUDGET COMPARISON - FY2021
Projected
Adopted Amended Fiscal Year Variance to Amended
Budget Budget Projections ($) (%)
CITY OF FORT WORTH
GENERAL FUND $168,248,455 $168,248,455 $179,600,000 $11,351,545 6.7%
CRIME CONTROL & PREVENTION DISTRICT $79,213,635 $79,213,635 $86,200,000 $6,986,365 8.8%
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. 21-10693
October 19, 2021
To the Mayor and Members of the City Council
Page 4 of 4
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AUGUST 2021 - 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
1st Quarter 2nd Quarter 3rd Quarter
August
YTD
ARLINGTON
104.9% 115.9% 144.2%
145.3%
127.7%
AUSTIN
96.7% 103.8% 131.0%
133.8%
113.1 %
FRISCO
108.9% 116.2% 135.3%
124.8%
121.5%
HOUSTON
93.5% 103.8% 124.4%
123.5%
108.8%
GARLAND
100.7% 112.3% 128.5%
123.0%
114.8%
DALLAS
96.2% 104.1 % 131.9%
121.2%
111.7%
GRAND PRAIRIE
106.0% 108.1% 113.6%
119.4%
111.4%
MCKINNEY
109.7% 114.1 % 116.5%
119.3%
114.0%
FORT WORTH
101.9% 109.1 % 120.4%
118.4%
112.0%
PLANO
96.0% 97.8% 122.2%
117.8%
106.7%
EL PASO
100.0% 117.3% 127.9%
116.4%
114.9%
SAN ANTONIO
100.6% 110.1 % 123.6%
115.2%
112.1 %
IRVING
97.3% 94.5% 118.9%
114.8%
105.6%
STATE TOTAL
96.1 % 104.5% 120.2%
189.1 %
114.4%
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