The URL can be used to link to this page

Home My WebLink AboutIR 058 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-058 r,aTE To the Mayor and Members of the City Council April 5, 2022 �s ° ram Page 1 of 4 SUBJECT: JANUARY 2022 — 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. revenue The Texas Comptroller's Office posted January 2022 (Fiscal Year 2022, Period 4) collection results on March 8th, 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. JANUARY NET SALES TAX COLLECTIONS (1 O-YEAR HISTORY V! C FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 The City's net sales tax collection is up $2,813,218 or 21.68%, compared to the same month last year. As depicted in the following table, the City experienced an increase of $2,450,620 or 19.3% in current period collections when compared to the same month last year. Current period collections include activity that was remitted for the current period that were on schedule within the due date. The State experienced a net collection increase of 28.6% compared to the same month last year. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-058 r,aTE To the Mayor and Members of the City Council April 5, 2022 �s ° ram Page 2 of 4 SUBJECT: JANUARY 2022 — SALES TAX UPDATE "+qrF rn Yg7'3 COLLECTION DETAIL FOR CITY SALES TAX Collection Detail for City Sales Tax January 21 January 22 Variance{$] Variance(%) Current Period Collections $12.702.744 $15;153:364 $2.450.620 19.311% T Other Collections' 239.163 439.437 200.274 83.7% Single Local Rate' 115.474 175;588 60;114 52.1% Audit Adjustments 76;901 226;349 149;448 194.3% Service Fee (262,686) (319:895) (57,209) (21.9%) Retainage 106.268 116.240 9.971 9.4% Net Collections $12,977,866 $15,791,083 $2,813,218 21.7% T "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% 18.8% 19.6% 19.8% 20.0% 17.40 19.3% 1.7% �="wWj I I Ennmns Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 January 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 ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-058 r,aTE To the Mayor and Members of the City Council April 5, 2022 �s ° ram Page 3 of 4 SUBJECT: JANUARY 2022 — SALES TAX UPDATE "+qrF rn Yg7'3 in future receipts if the pandemic intensifies, new restrictions are implemented, or consumer behavior changes. The City's General Fund sales tax collections for January are 115.6% to the adopted budget, and at 119% compared to the same month last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax collections for January are 116.3% to budget, and 119.7% 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 FY2022 Receipts Through CITY OF FORT WORTH Budget as of January January January GENERAL FUND 60,396,873 $69,820,933 $58,691,986 CRIME CONTROL AND PREVENTION DISTRICT 29,059,683 33,784,990 28,216,233 TOTAL $89,456,555 $103,605,923 $86,908,219 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. 22-058 �aTE To the Mayor and Members of the City Council April 5, 2022 �s ° ram Page 4 of 4 SUBJECT: JANUARY 2022 - 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 FY2021 collections for the same period. CITIES COMPARISON -NET COLLECTIONS FY2022 vs. FY2021 CITY OF FORT WORTH CITY COMPARISON - FY2022 vs. FY2021 City December January YTD ARLINGTON 136.8% 156.7% 145.2% AUSTI N 121.6% 129.4% 127.2% STATE TOTAL 125.2% 128.6% 124.2% I RVI NG 107.8% 126.9% 123.6% FRISCO 112.8% 122.6% 119.7% FORT WORTH 118.2% 121.7% 119.0% GARLAND 119.4% 119.2% 121.3% HOUSTON 112.2% 117.5% 118.8% MCKI NNEY 112.8% 117.3% 118.4% DALLAS 110.7% 117.2% 116.7% SAN ANTONIO 117.5% 116.6% 119.6% EL PASO 117.8% 115.7% 119.5% GRAND PRAIRIE 114.0% 115.4% 117.9% PLANO 109.1% 115.4% 116.4% 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