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Home My WebLink AboutIR 037 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-037 To the Mayor and Members of the City Council March 1, 2022 r,ATE4 °drr d, Page 1 of 4 m ZLI! SUBJECT: DECEMBER 2021 —SALES TAX UPDATE +qrF r.a 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. AllctHerrevene The Texas Comptroller's Office posted December 2021 (Fiscal Year 2022, Period 3) collection results on February 9th, 2022. 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. DECEMBER NET SALES TAX COLLECTIONS (10-YEAR HISTORY U) C O Elm = M .M = 0 0W .M. M . FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 The City's net sales tax collection is up $3,286,933 or 18.20/6, compared to the same month last year. As depicted in the following table, the City experienced an increase of $3,186,980 or 17.4% 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 25.3% compared to the same month last year. COLLECTION DETAIL FOR CITY SALES TAX ISSUED BY THE CITY MANAGER FORTWORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-037 To the Mayor and Members of the City Council March 1, 2022 r'ATE4 °drr d, Page 2 of 4 m ZLI! SUBJECT: DECEMBER 2021 —SALES TAX UPDATE "+qrF rn Yg7'3 December 2a December 21 Variance Variance(%) Current Period Collections $18,347,931 $21,534,911 $3,186,980 17.4°/0 Other Collections' 221,890 303,444 86,554 39.0% Single LDcal Rate* 156,080 221,029 64,949 41.6% Audit Adjustments (169,758) (139,043) 30,710 18.1% Service Fee (371,123) (433,507) (67,384) (18.2%) Retainage (85,800) (100:676) (14:876) (17.3%) Net Collections $18,099,221 $21,3B6,154 $3,2B6,933 1B_2% Ot *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 V1MO 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% 32.4°/ 20.99ro 18 7% 19.4% 18.8% 19.6% 19.8% 20.0% 17.4% 1.5% 1.7% . 0 0 0 (4.0)% Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 JuF21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 -t The upcoming month of March 2022,as compared to March 2021,will mark a year with no covid restrictions in place. December collections continued a trend of stable 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 . It is anticipated that in March of 2022, the year over year comparison by month will reflect lower percentage growth as a result of being free from restrictions for a full year. Although the revenue trend has 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 FORTWORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-037 To the Mayor and Members of the City Council March 1, 2022 r,ATE4 °drr d, Page 3 of 4 m ZLI! SUBJECT: DECEMBER 2021 —SALES TAX UPDATE "+qrF rn Yg7'3 The City's General Fund sales tax collections for December are 114.8% to the adopted budget, and at 118.2% compared to the same month last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax collections for December are 115.3% to budget, and 119.1% 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 Through FY2021 Receipts Through CITY OF FORT WORTH Budget as of December December December GENERAL FUND 47,067,062 $54,029,849 $45,714,120 CRIME CONTROL AND PREVENTION DISTRICT 22,646,104 26,112,026 21,930,553 TOTAL $69,713,166 $80,141,876 $67,644,673 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. 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. ISSUED BY THE CITY MANAGER FORTWORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-037 To the Mayor and Members of the City Council March 1, 2022 r'ATE4 °drr d, Page 4 of 4 m ZLI! SUBJECT: DECEMBER 2021 -SALES TAX UPDATE "+qrF rn Yg7'3 CITIES COMPARISON - NET COLLECTIONS FY2022 vs. FY2021 City November December YTD ARLI NGTON 150.4% 136.8% 142.1% STATE TOTAL 124.4% 125.2% 123.0% AUSTI N 134.3% 121.6% 126.6% GARLAND 124.7% 119.4% 121.9% FORT WORTH 118.4% 118.2% 118.2% EL PASO 128.3% 117.8% 120.6% SAN ANTONIO 126.7% 117.5% 120.4% GRAND PRAIRIE 124.2% 114.0% 118.7% FRISCO 126.9% 112.8% 118.9% MCKI NNEY 123.9% 112.8% 118.8% HOUSTON 128.1% 112.2% 119.3% DALLAS 121.8% 110.7% 116.6% PLANO 127.5% 109.1% 116.6% I RVI NG 138.8% 107.8% 122.6% Source: Allocation Payment Detail and IVlonthly 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 FORTWORTH, TEXAS