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Home My WebLink AboutIR 064 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-064 To the Mayor and Members of the City Council May 3, 2022 �s ad?? Page 1 of 4 I! SUBJECT: FEBRUARY 2022 — 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. All cth.r revenue The Texas Comptroller's Office posted February 2022 (Fiscal Year 2022, Period 5) collection results on April 12th, 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. FEBRUARY NET SALES TAX COLLECTIONS (1 O-YEAR HISTORY N C FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 The City's net sales tax collection is up $2,947,628 or 25.55%, compared to the same month last year. As depicted in the following table, the City experienced an increase of $3,064,793 or 27.3% in current period collections when compared to the same month last year. Current period collections include activity that was remitted for the current period that were on schedule within the due date. The State experienced a net collection increase of 28.5% compared to the same month last year. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-064 To the Mayor and Members of the City Council May 3, 2022 �s ad?? Page 2 of 4 I! SUBJECT: FEBRUARY 2022 — SALES TAX UPDATE "+qrF rn Yg7'3 COLLECTION DETAIL FOR CITY SALES TAX Collection Detail for City Sales Tax February 21 February 22 Variance ($) Variance(%) Current Period Collections $11,209,424 $14,274,217 $3,064,793 27.3% Other Collections' 225,488 321,605 96,117 42.6% Single Local Rate' 101,398 156,448 55,050 54.3% Audit Adjustments 209,921 4,751 (205,169) (97.7%) Service Fee (234.925) (295,140) (60,216) (25.6%) Retainage 27,206 24,259 (2,947) (10.8%) Net Collections $11,539,512 $14,486,140 $2,947,628 25.5% *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% 32.4% 27.3% 20.9% 18.7°I° 19.4% 18.8% 19.6% 19.8% 20.0% ° 19.3% 17.4 I° (4.0)% Feb 21 Mar-21 Apr-21 May-21 Jun 21 Jul-21 Aug 21 Sep 21 0ct-21 Noy 21 Dec 21 Jan 22 Feb-22 February 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 ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-064 To the Mayor and Members of the City Council May 3, 2022 �s ad?? Page 3 of 4 I! SUBJECT: FEBRUARY 2022 — SALES TAX UPDATE "+qrF rn Yg7'3 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. The City's General Fund sales tax collections for January are 114.7% to the adopted budget, and at 120% compared to the same month last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax collections for February are 115.4% to budget, and 120.7% 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 February February February GENERAL FUND 73.491.612 $84.307.073 $70.230.497 CRIME CONTROL AND PREVENTION DISTRICT 35.360.109 40.802.313 33 807 089 TOTAL $108,851,621 $125,1n,386 $104,037.567 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. 22-064 To the Mayor and Members of the City Council May 3, 2022 �s ad?? Page 4 of 4 I! SUBJECT: FEBRUARY 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 compared to FY2021 collections for the same period. CITIES COMPARISON- NET COLLECTIONS FY2022 vs. FY2021 CITY OF FORT WORTH CITY COMPARISON - FY2022 vs. FY2021 City January February YTD ARLINGTON 156.7% 156.0% 146.9% AU TIN 129.4% 137.3% 128.9% STATE TOTAL 128.E% 128.6% 126.0% IR INO 126.9% 136.1% 126.5% FRI CO 122 63% 146 8% 123.8% FORT UUORTH 121.7% 126.5% 120.0% GARLAND 119_2% 122.6% 121.6% HOU TON 117.6% 125.4% 120.0% Iv1CKIIxNEY 117.3% 124.1% 119 3% DALLA 11T-2% 119.9% 117 3% AN ANTONIO 116.6% 128.8% 121.1% EL PA SO 116.7% 118.0% 119_2% GRAND PRAIRIE 115.4% 136_2% 120.8% PLANO 116.4% 119.7% 116.9% 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