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Home My WebLink AboutIR 001 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-001 To the Mayor and Members of the City Council January 4, 2022 Page 1 of 4 �i {i7 Y *a SUBJECT: OCTOBER 2021 — SALES TAX UPDATE #qrF rn Yg7'3 Sales tax revenue represents approximately twenty-two percent of the City's General Fund anticipated revenue in Fiscal Year 2022. General Fund sales Tax 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, 22� Sales Tax and sometimes volatile, revenue source. All cth.r revenue The Texas Comptroller's Office posted October 2021 (Fiscal Year 2022, Period 1) collection results on December 8th, 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. Recent years have included legislative reform on remitting sales tax to the state comptroller, effects of a historic winter storm, and the effects of a global pandemic. Activity is closely monitored and will be highlighted if significant impact is expected. OCTOBER NET SALES TAX COLLECTIONS (1 O-YEAR HISTORY tq C C FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 The City's net sales tax collection is up $2,472,996 or 18.0%, compared to the same month last year. As depicted in the following table, the City experienced an increase of $2,645,796 or 19.8% in current period collections when compared to the same month last year. Current period collections include activity that was remitted for the current period that were on schedule within the due date. The State experienced a net collection increase of 19.4% compared to the same month last year. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-001 To the Mayor and Members of the City Council January 4, 2022 Page 2 of 4 �i {i7 Y *a SUBJECT: OCTOBER 2021 — SALES TAX UPDATE #qrF rn Yg7'3 COLLECTION DETAIL FOR CITY SALES TAX October 20 October 21 Variance ($) Variance (%) Current Period Collections $13,393,778 $16,039,574 $2,645,796 19.8% Other Collections* 222,208 271,329 49,121 22.1% Single Local Rate* 112,228 167,057 54,829 48.9% Audit Adjustments 247,685 (4,858) (252,543) (102.0%) Service Fee (279,518) (329,462) (49,944) (17.9%) Retainage 27,466 53,203 25,738 93.7% Net Collections $13,723,847 $16,196,843 $2,472,996 18.0% *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% 18.80 19.6% 19.8% 5.4% 1.5% 1.7% (1.3)% Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 October collections continued a trend of strong performance after several months of stagnation following the initial response to COVID-19. Current collections also reflect heightened growth as compared to the same month last year, due to the pandemic's suppression of prior year activity. The Texas Governor fully lifted COVID-19 restrictions in March 2021. Although the revenue trend has since been positive, we continue to note the potential volatility in future receipts if the pandemic intensifies, new restrictions are implemented, or consumer behavior changes. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-001 To the Mayor and Members of the City Council January 4, 2022 Page 3 of 4 �i {i7 Y *a SUBJECT: OCTOBER 2021 — SALES TAX UPDATE #qrF rn Yg7'3 The City's General Fund sales tax collections for October are 114.4% to the adopted budget, and at 118.0% compared to the same month last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax collections for October are 116.1% to budget, and 118.6% to the same month last year. The monthly budget is based on a historic collection trend by month for comparison purposes. CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON Current Receipts FY2021 Receipts CITY OF FORT WORTH Budget as of October Through October Through October GENERAL FUND 14,162,219 $16,196,843 $13,723,847 CRIME CONTROL AND PREVENTION DISTRICT 6,814,088 7,910,328 6,667,658 TOTAL $20,976,306 $24,107,171 $20,391,505 CITY OF FORT WORTH BUDGET COMPARISON— FY2022 Projected Adopted Amended Fiscal Year Variance to Adopted Budget Budget Projections ($) (%) CITY OF FORT WORTH GENERAL FUND $182,885,742 $182,885,742 $182,885,742 $0 0.0% CRIME CONTROL&PREVENTION DISTRICT $87,994,649 $87,994,649 $87,994,649 $0 0.0% The City anticipates collecting $182,885,742 by fiscal year end, which matches original estimates in the FY2022 adopted budget. At the time of budget development, this represented a 3.6% increase over the re-estimated or projected sales tax for FY2021, and an 8.7% increase over the FY2021 adopted budget. The Crime Control & Prevention District anticipates collecting $87,994,649 by fiscal year end, which also matches original estimates in the FY2022 adopted budget. This is an 11.1% increase over the FY2021 adopted budget. Staff will continue to provide regular updates as financial analysis occurs for sales tax impacts due to COVID-19, changes in consumer spend, or other areas that could implicate significant changes. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-001 To the Mayor and Members of the City Council January 4, 2022 Page 4 of 4 �i {i7 Y *a SUBJECT: OCTOBER 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 FY2022 vs. FY2021 City October ARLINGTON 141.2% IRVING 127.7% AUSTIN 125.5% GARLAND 122.1% MCKINNEY 121.6% DALLAS 119.9% HOUSTON 119.9% FRISCO 118.9% GRAND PRAIRIE 118.8% SAN ANTONIO 118.2% FORT WORTH 118.0% PLANO 116.8% EL PASO 116.7% STATE TOTAL 119.4% 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