HomeMy WebLinkAboutIR 0610INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 23-0610
To the Mayor and Members of the City Council
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*a SUBJECT: JANUARY 2023 — SALES TAX UPDATE
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April 4, 2023
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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 January 2023 (Fiscal Year 2023, Period 4) collection results on
March 9, 2023. 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
CITY OF FORT WORTH
GENERAL FUND
CCPD
Total
Adopted Amended Budget YTD Budget to Actual YTD Actual to
Budget Budget As of January Adopted % As of January Adopted °4
$212,14T,461 $212,14T,461
$102,0T3_T93 $102,073,793
$314,221,254 $314,221,254
$TO.337.241 33.2% $T8,071.014 36.8%
$33,842,446 33.2% $37,666,231 36.9%
$104,179,686 $115,736,245
• The General Fund anticipates collecting $212,147,461 by fiscal year end
• The CCPD Fund anticipates collecting $102,073,793 by fiscal year end
• FY2023 Adopted Budget is a 3.7% increase over the actual sales tax collections in General Fund for
FY2022 and a 2.2% decrease over the actual sales tax collections in CCPD Fund for FY2022
• Both General Fund and CCPD Fund FY2023 Adopted Budgets are 16.0% increase over the FY2022
adopted budget
• In total, net collections of General Fund are up 9.8% over the same period last year
• Staff will monitor receipts and will revise projections, if necessary, after at least one full quarter of
collections
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 23-0610
April 4, 2023
To the Mayor and Members of the City Council
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Page 2 of 3
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SUBJECT: JANUARY 2023 — SALES TAX UPDATE
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COLLECTION DETAIL FOR CITY SALES TAX (FY2022 TO FY2023)
General Fund CCPD Fund
January 22 January 23 Variance {$} Variance (°,4 January 22 January 23
Variance ($j Variance (%}
Current Period Collections $15,153,364 $17,098,044 51,944,680 12.8% $7,397,808 $8,329,969
$932,160 12.6% Op
Other Collections"
$439,437 $327,681 (111,756) (25.4%) $224,042 $129,856
[94,186y (42.0%)
Single Local Rate'
$175,588 $206,574 30,985 17.6% $85,375 $100,265
14,891 17.4%
Audit Adjustments
$226,349 (375:465) (301,814) (133.3%) $69,725 [$38,366}
(108,090) (155.0%)
Service Fee
($319,895) ($351,137) (31,242) (9.8%) (5155,539) t$170,434}
(14,895) t9.6%j
Retainage
5116,240 $134,222 17,982 15.6% $51,553 $58,466
6,913 13.4%
Net Collections
$15,791,083 $17,339,918 $1,5W,835 9.8% $7,672,964 $8,409,756
$736,792 9.6%
"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.
January collections reflect heightened growth as compared to the same month last year.
• The General Fund sales tax collections as of January are 111.3% compared to the adopted budget,
and 109.8% compared to the same month last year.
• The CCPD Fund sales tax collections as of January are 111.1% compared to the adopted budget,
and 109.6% 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
January
RVI NG
106.0%
FRISCO
106.1 %
GARLAND
250.4%
PLANO
114.5%
FORT WORTH
109.8%
AUSTIN
112.9%
STATE TOTAL
114.2%
SAN ANTONIO
107.0%
EL PASO
105.8%
MCKINNEY
102.6%
HOUSTON
111.7%
GRAND PRAIRIE
121.0%
ARLINGTON
91.9%
DALLAS
111.9°r
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. 23-0610
To the Mayor and Members of the City Council April 4, 2023
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SUBJECT: JANUARY 2023 — SALES TAX UPDATE
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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 for sales tax performance for the 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
80,000,000
60,000,000
40,000,000
20,000,000
Jan2D-Dec20 lan21-DeQi Jan22-0ec22
■ Department Stores ■ Other NonstoreRetail ers ■UrnitedSeniiceEatirig Plam
BuildingMaterialsStores ■ Electric Utilities
Source: ZacTax (the data for Jan 2023 hasn't been released yet, will update once available)
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