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Home My WebLink AboutIR 159 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-159 To the Mayor and Members of the City Council November 1, 2022 �s ad?? Page 1 of 4 I! SUBJECT: August 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. Al I other revenue The Texas Comptroller's Office posted July 2022 (Fiscal Year 2022, Period 11) collection results on October 11, 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. AUGUST NET SALES TAX COLLECTIONS (10-YEAR HISTORY N C O � � 1 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 As shown above, the City's net sales tax collection is up $3,294,386 or 21.2%, compared to the same month last year. As depicted in the following table, the City experienced an increase of $2,294,318 or 14.7% in current period collections when compared to the same month last year. Current period collections include activity that was remitted for the current period that were on schedule within the due date. The State experienced a net collection increase of 17.2% compared to the same month last year. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-159 To the Mayor and Members of the City Council November 1, 2022 Page 2 of 4 0VA SUBJECT: August 2022 — Sales Tax Update fie COLLECTION DETAIL FOR CITY SALES TAX August 21 August 22 Variance ($} Variance (%) Current Period Collections $15,575,995 $17,870,313 $2,294,318 14.7% Other Collections"` 159,581 1,054,972 895,390 561.1% Single Local Rate" 163,128 199,892 36,764 22.5% Audit Adjustments (72,858) 100,035 172,893 237.3% Service Fee (316,517) (384,504) (67,987) (21.5%) Retainage 12,657 (24,335) (36,992) (292.3%) Net Collections $15,521,987 $18,816,373 $3,294,386 21.2% 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 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 27.3% 18.8% 19.6% 19.8% 20.0% 17.4% 19.3% 18.2% 3111111101im's'111 12.8% 13.5% 14.7% 8.8% Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 The Texas Governor fully lifted COVID-19 restrictions in March 2021. Beginning in March 2022, the year over year comparison by month reflects lower percentage growth as a result of being free from restrictions for a full year. Although the revenue trend has been positive, staff will continue to monitor future receipts for potential volatility 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. 22-159 To the Mayor and Members of the City Council November 1, 2022 �s ad?? Page 3 of 4 I! SUBJECT: August 2022 — Sales Tax Update "+qrF rn Yg7'3 The City's General Fund sales tax collections year-to-date are 118.6% to the adopted budget, and 116.7% compared to the year-to-date total last year. The City's Crime Control and Prevention District Fund (CCPD) sales tax collections year-to-date are 118.7% to budget, and 117.1% of the year-to-date total for 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 August Through August Through August GENERAL FUND 166,063,377 $196,992,629 $168,757,816 CRIME CONTROL AND PREVENTION DISTRICT 79,900,644 94,846,271 81,017,684 TOTAL $245,964,021 $291,838,900 $249,775,600 CITY OF FORT WORTH BUDGET COMPARISON — FY2022 Projected Adopted Amended Fiscal Year Variance to Adopted Budget Budget Projections ($) (%) CITY OF FORT WORTH GENERAL FUND $182,885,742 $196,135,742 $204,500,000 $21,614,258 11.8% CRIME CONTROL& PREVENTION DISTRICT $87,994,649 $87,994,649 $98,000,000 $10,005,351 11.4% The City anticipates collecting $204,500,000 by fiscal year end, an increase of$21,614,258, or 11.8%, over the FY2022 Adopted Budget. Additionally, this represents an 8.7% increase over FY2021 actual collections, and a 20.3% increase over the FY2021 adopted budget. The General Fund revenues were amended on August 23, 2022 via M&C 22-0600 to $196,135,742. The Crime Control & Prevention District anticipates collecting $98,000,000 by fiscal year end, an increase of $10,055,351, or 11.4%, over the FY2022 Adopted Budget. Additionally, this represents an 11.1% increase over FY2021 actual collections, and a 23.7% increase over the FY2021 adopted budget. The Crime Control & Prevention District has not been amended for FY2022. Staff will continue to provide regular updates as financial analysis occurs for sales tax impacts due to COVID-19, changes in consumer spending, 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 compared to FY2021 collections for the same period. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-159 To the Mayor and Members of the City Council November 1, 2022 Page 4 of 4 0YA SUBJECT: August 2022 - Sales Tax Update fie CITIES COMPARISON - NET COLLECTIONS FY2022 vs. FY2021 City 1st Quarter 2nd Quarter 3rd Quarter August YTD IRVING 122.6% 122.0% 117.5% 136.6% 122.5% FRISCO 118.9% 129.3% 124.9% 130.5% 124.7% GARLAND 121.9% 118.3% 116.2% 122.0% 118.7% PLANO 116.6% 122.9% 115.5% 121 .2% 117.7% FORT WORTH 118.2% 117.5% 115.7% 121 .2% 116.7% AUSTIN 126.6% 127.3% 119.8% 117.3% 123.0% STATE TOTAL 123.0% 122.3% 113.1% 117.2% 118.4% SAN ANTONIO 120.4% 116.9% 109.2% 117.1% 114.6% EL PASO 120.6% 112.2% 108.9% 116.6% 113.6% MCKINNEY 118.8% 118.2% 111 .2% 115.9% 116.0% HOUSTON 119.3% 116.0% 109.6% 115.6% 114.8% GRAND PRAIRIE 118.7% 120.0% 121 .8% 115.5% 118.7% ARLINGTON 142.1% 143.1% 120.0% 115.1% 128.2% DALLAS 116.6% 118.4% 114.8% 112.8% 115.1% Source: Allocation Payment Detail and Monthly All Fund Revenue Report, Texas Comptroller of Public Accounts If you have any questions, please call Richard Zavala, Interim Director of Planning and Data Analytics, at 817-392-6222. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS