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Home My WebLink AboutIR 23-0751 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 23-0751 To the Mayor and Members of the City Council October 10, 2023 �s ad?? Page 1 of 4 I! SUBJECT: JUNE 2023 — 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 June 2023 (Fiscal Year 2023, Period 9) collection results on August 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 Adopted Amended Budget YTD Budget to Actual YTD Actual to Budget Budget As of June Adopted°la As of June Adopted°la CITY OF FORT WORTH GENERAL FUND $212,147,461 $212,147,461 $166.950.174 74.0% $175.241.686 82.6% CCPD $102.073.793 $102.073.793 $75.516.867 74.0% $84.186.567 82.5% Total $314,221,254 $314,221,254 $232,466,041 $259,428,243 CITY OF FORT WORTH BUDGET COMPARISON —FY2023 Projected Adapted Amended Fiscal Year Variance to Adapted Budget Budget Projections ($) °hI CITY OF FORT WORTH GENERAL FUND $212.147.461 $212,147.461 $235.300.000 $23.152.539 10.9% �► CCPD $102.073.793 $102,073,793 $112.857.921 $10.784.128 10_6% Total $314,221,254 $314,221,254 $348,157,921 $33.936.667 10.8% • Both the General Fund and the CCPD Fund FY2023 Adopted Budgets are a 16.0% increase over the FY2022 adopted budget • Collectively, the General Fund and the CCPD Fund are expected to exceed the adopted budget by $33,936,667 or 10.8% at fiscal year end o This projection is conservative and may be amended later in the fiscal year ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 23-0751 To the Mayor and Members of the City Council October 10, 2023 �s ad?? Page 2 of 4 SUBJECT: JUNE 2023 — SALES TAX UPDATE iv' Yg7'3 COLLECTION DETAIL FOR CITY SALES TAX(FY2022 TO FY2023) General Fund June 22 June 23 Variance Variance (%) Current Period Collections S20 783 681 S21.000.643 $216,961 1.0% Other Collections* $653.833 $405,216 (248,616) (38.0%) Single Local Rate* $212,753 $205,071 (7,682) (3.6%) ALidit Adjustments (347,871) ($90,366) (42:495) (88.8%) Service Fee (6432,048) ($430,411) 1 537 0 4% Retainage ($72,238) (537,9231. 34 316 47 6% Net Collections $21,098,110 $21,052,230 f$45.88 (0.21.) M� CCPD Fund June 22 June 23 Variance ($) Variance Current Period Collections $9.775.372 $9,868.183 $82.812 0.8% op Other Collections* S353.414 $196,227 (157,187) (44.5%) Single Local Rate* $100,629 $H,"5 (4,084) (4.1%) ALidit AdjLiStmentS (322:402) ($30,592) f8.190) (36.6%) Service Fee (5204,138) ($202,405) 1,733 0.8% Retainage (329.102) ($10.698) 18,405 632% Net Collections $9,973,671 $9,907,160 ($66,511) (0.7%) �+ *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 JUNE FLUCTUATE BASED UPON RESULTS OF TAXPAYER SALES TAX AUDITS CONDUCTED BY THE STATE OF TEXAS. June collections are comparable to the same month last year. • The General Fund net sales tax collections as of June are 111.7% compared to the adopted budget, and 99.8% compared to the same month last year. • The CCPD Fund net sales tax collections as of June are 111.5% compared to the adopted budget, and 99.3% compared to the same month last year. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 23-0751 To the Mayor and Members of the City Council October 10, 2023 Page 3 of 4 0VA SUBJECT: JUNE 2023 - SALES TAX UPDATE fie The following chart indicates how FY2023 net sales tax 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 1st Quarter 2ndQuarter April May June GARLAND 18.4% 8.4% 3.4% 12.0% 17.6% EL PAS❑ 5.1% 6.1% (2.3%) 8.5% 5.3% IVICKINNEY 7.2% 3.7% (2.2%) 7.7% 4.9% HOUSTON 9.2% 10.8% 4.0% 4.5% 2.7% AUSTI N 11.1% 8.2% 2.2% 4.3% 1.8% SAN ANTONIO 4.5% 5.5% (3.4%) 5.6% 1.1% FORT WORTH 12.4% 11.4% 4.2% 9.2% (0.2%) DALLAS 10.4% 6.6% (4.8%) 7.7% (1.5%) IRVING 10.4% 14.4% 11.6% 13.7% (1.8%) PLAN❑ 8.0% 10.4% (1.4%) 10.1% (3.1%) GRAND PRAIRIE 5.9% 6.8% (7.5%) (1.6%) (4.8%) FRISCO 14.4% 0.9% (6.2%) (3.1%) (8.0%) ARLINGTON 3.2% (0.1%) (8.3%) (1.6%) (20.3%) STATE TOTAL 9.4% 8.8% 4.1% 6.8% 2.7% 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. 23-0751 To the Mayor and Members of the City Council October 10, 2023 �s ad?? Page 4 of 4 I! SUBJECT: JUNE 2023 — 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 following chart indicates the top five industries for sales tax performance over 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 June2D-lay21 June2l-May72 lune 2-"2.3 ■DepartmentStores ■Other Non store Ketaiers ■LimitedSerwire Eating Places ■BuildingMaterialsSwres ■El ertri r Uti I ti es Source: ZacTax(June 2023 data has not been released yet and will be updated once available) If you have any questions, please contact Clay Pearson, Interim Director of FWLab, at 817-392-6222. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS