HomeMy WebLinkAboutIR 027 (3) INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 23-027
r,aTE
To the Mayor and Members of the City Council February 7, 2023
�s
° ram Page 1 of 3
SUBJECT: NOVEMBER 2022 — SALES TAX UPDATE
"+qrF rn
Yg7'3
Sales tax revenue represents approximately twenty-three (23%) percent of the City's General Fund
anticipated revenue in Fiscal Year 2023. It is the second largest revenue source, with property tax being the
largest at 58%. In addition, sales tax revenue represents the largest revenue source in the Crime Control
and Prevention District (CCPD) Fund. Because sales tax represents a significant revenue source for the city
and can sometimes be a volatile revenue stream, it is important for the city to closely monitor and report on
monthly sales tax receipts.
The Texas Comptroller's Office posted November 2022 (Fiscal Year 2023, Period 2) collection results on
January 14, 2022. Actual receipts are dependent upon the timeliness and accuracy of sales tax payers'
returns. 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. The FY2023 Adopted Budget for sales tax
were estimated based on higher than expected recovery from the pandemic and the possibility for an
economic recession. Due to the potential fluctuation in the revenue source, the City takes a conservative,
yet realistic, approach to estimating sales tax.
CITY OF FORT WORTH YTD BUDGET&NET COLLECTIONS COMPARISON
Adopted Amended Budget YTD Budget to Actual YTD Actual to
Budget Budget As of November Adopted % As of November Adopted °ra
CITY OF FORT WORTH
GENERAL FUND $212:147:461 $212:147:461 $32.843.514 15.5% $36:924:906 17.411%
CCPD $102.073,793 $102:073.793 $15.802.508 15.5% $17.967.355 17.6°1%
Total $314,221,264 $314,221,254 $48,646,022 $54,892,261
• The General Fund anticipates collecting $212,147,461 by fiscal year end
• The CCPD Fund anticipates collecting $102,073,793 by fiscal year end
• FY2023 Adopted Budget is 3.7% increase over the actual sales tax collections in General Fund for
FY2022 and 2.2% decrease over the actual sales tax collections in CCPD Fund for FY2022
• Both General Fund and CCPD Fund FY2023 Adopted Budgets are 16.0% increase over the FY2022
adopted budget
• In total, net collections are up 11.8% over the same period last year
• Staff will monitor receipts and will revise projections, if necessary, after at least one full quarter of
collections
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 23-027
r,aTE
To the Mayor and Members of the City Council February 7, 2023
oars Page 2 of 3
�s
SUBJECT: NOVEMBER 2022 — SALES TAX UPDATE
"+qrF rn
Yg7'3
COLLECTION DETAIL FOR CITY SALES TAX(FY2022 TO FY2023)
General Fund CCP❑Fund
November 21 November 22 Variance($) Variance(%) November 21 November 22 Variance{$] Variance(%)
Current Period Collectior $16,491,717 $18,061,848 $1,570,130 9.=1% $8,057,180 $8,789,855 $732,675 9.1%
Other Collections' $669,716 $455,843 (213.873) (31.91; $331,319 $216,268 (115.051) (347%)
Single Local Rate' $204,430 $243,064 38,634 18.9% $100,010 $118,347 18,337 18.3%
Audit Adjustments ($577,046) $1,639 578,686 100.3% ($275,499) $9,203 284,102 103.3%
Service Fee ($335,776) ($375,248) (39,472) (11.8%) ($164,260) ($182,673) (18,413) (11.2%)
Retainage ($6,188) $2,106 8,294 134.0% ($3,126) $1,073 4,199 134.311/o
Net Collections $16,446,862 $18,389,253 $1,942,400 11.8% $8,1346,624 $9,962,073 $06,449 11.3%
*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.
November collections reflect heightened growth as compared to the same month last year.
• The General Fund sales tax collections for November are 112.3% compared to the adopted budget,
and 111.8% compared to the same month last year.
• The CCPD Fund sales tax collections for October are 113.5% compared to the adopted budget, and
111.3% compared to the same month last year.
The chart below indicates how FY2023 sales tax net collections in Fort Worth and other select cities in the
state compare to FY2022 collections for the same period.
CITIES COMPARISON—NET COLLECTIONS
FY2023 vs. FY2022
City November
IRVING 100.8%
FRISCO 109.7%
GARLAND 106.2%
PLANO 107.8%
FORT WORTH 111.8%
AUSTIN 111.3%
STATE TOTAL 110.5%
SAN ANTONIO 104.1%
EL PASO 105.0%
MCKINNEY 106.4%
HOUSTON 102.7%
GRAND PRAIRIE 100.7%
ARLINGTON 104.7%
DALLAS 112.7%
Source: Allocation Payment Detail and Monthly All Fund Revenue Report,Texas Comptroller of Public Accounts
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 23-027
�aTE
To the Mayor and Members of the City Council February 7, 2023
�s
° ram Page 3 of 3
SUBJECT: NOVEMBER 2022 — SALES TAX UPDATE
"+qrF rn
Yg7'3
Sales tax is collected on a variety of transactions besides the traditional retail industry and it is important to
understand the various sources in order to anticipate any fluctuations. The chart below indicates the top five
industry codes sales tax performed in past three years in Fort Worth, on a rolling 12-month period.
TOP 5 PERFORMING INDUSTRIES
200,000,000
180,000,000
160,000,000
140,000,000
120,000,000
100,000,000
8Dp00,0DD —
6D,DDD,0DD —
40,000,0DD —
20,000,0DD
DeU9-Nov20 Dec20-NaW21 Dee2l-Nw22
■Department Stores ■Other Nonstore Retailers ■Limited Service Eating Places
Building Materials Stores ■Electric Utilities
Source: ZacTax
If you have any questions, please contact 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