HomeMy WebLinkAbout(0005) IR 22-013 - November 2021 - Sales Tax UpdateINFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 22-013
To the Mayor and Members of the City Council February 1, 2022
Page 1 of 4
_L
SUBJECT: NOVEMBER 2021 — SALES TAX UPDATE
Yap3
Sales tax revenue represents approximately twenty-two percent of
the City's General Fund anticipated revenue in Fiscal Year 2022.
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,
and sometimes volatile, revenue source.
General Fund Sales Tax
Sales Tax
All other revenue
The Texas Comptroller's Office posted November 2021 (Fiscal Year 2022, Period 2) collection results
on January 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.
NOVEMBER NET SALES TAX COLLECTIONS (1 O-YEAR HISTORY
FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022
The City's net sales tax collection is up $2,555,799 or 18.4%, compared to the same month last year.
As depicted in the following table, the City experienced an increase of $2,753,273 or 20.0% in current
period collections when compared to the same month last year. Current period collections include
activity that was remitted for the current period that were on schedule within the due date. The State
experienced a net collection increase of 24.4% compared to the same month last year.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-013
To the Mayor and Members of the City Council February 1, 2022
Page 2 of 4
_L
SUBJECT: NOVEMBER 2021 — SALES TAX UPDATE
COLLECTION DETAIL FOR CITY SALES TAX
November 20 November 21 Variance ($) Variance (%)
Current Period Collections
$13,738,444
$16,491,717
$2,753,273
20.0%
Other Collections*
146,089
669,716
523,627
358.4%
Single Local Rate*
133,678
204,430
70,751
52.9%
Audit Adjustments
160,386
(577,046)
(737,432)
(459.8%)
Service Fee
(283,572)
(335,776)
(52,204)
(18.4%)
Retainage
(3,973)
(6,188)
(2,215)
(55.8%)
Net Collections
$13,891,053
$16,446,852
$2,555,799
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
32.4%
5.4%
1.5% 1.7%
36.8%
. 0 u 18.7% 19.4% 18.8% 19.6% 19.8%
(4.0)%
Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21
The upcoming month of March 2022, as compared to March 2021, will mark a year
with no covid restrictions in place.
November 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
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 22-013
To the Mayor and Members of the City Council
pRTE4
{L7 3
*a SUBJECT: NOVEMBER 2021 — SALES TAX UPDATE
r6rn �
Y@7'3
February 1, 2022
Page 3 of 4
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 November are 114.3% 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 November 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
GENERAL FUND
CITY OF FORT WORTH YTD NET COLLECTIONS COMPARISON
Budget as of Current Receipts FY2021 Receipts
November Through November Through November
28,569,088 $32,643,695 $27,614,900
CRIME CONTROL AND PREVENTION DISTRICT 13,745,888 15,955,952 13,395,223
TOTAL $42, 314, 976 $48, 599, 648 $41, 010,122
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. 22-013
February 1, 2022
To the Mayor and Members of the City Council
Page 4 of 4
{L7 3
*a SUBJECT: NOVEMBER 2021 - SALES TAX UPDATE
r6rn �
Y@7'3
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 November
YTD
ARLINGTON 141.2% 150.4%
145.7%
IRVING 127.7% 138.8%
133.3%
AUSTIN 125.5% 134.3%
129.8%
EL PASO 116.7% 128.3%
122.5%
HOUSTON 119.9% 128.1 %
124.0%
PLANO 116.8% 127.5%
122.1 %
FRISCO 118.9% 126.9%
123.0%
SAN ANTONIO 118.2% 126.7%
122.3%
GARLAND 122.1 % 124.7%
123.4%
GRAND PRAIRIE 118.8% 124.2%
121.6%
MCKINNEY 121.6% 123.9%
122.8%
DALLAS 119.9% 121.8%
120.8%
FORT WORTH 118.0% 118.4%
118.2%
STATE TOTAL 119.4% 124.4%
121.9%
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