HomeMy WebLinkAboutIR 9126 INFORMAL. REPORT TO CITY COUNCIL MEMBERS No. 9126
To the Mayer and Members of the City Council October 13, 2009
Page 1 of 2
SUBJECT: October 2009 — Sales Tax Update
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In response to the volatile nature of Sales Tax revenue, the Staff committed to providing you a
brief update of the sales tax collections. The Texas Comptroller's Office posted results October
7th. You may recall, sales tax reporting experiences a two month lag and this October report
reflects taxes that were collected in August.
Below you will find the August recap for the City of Fort Worth. You will see our collections
compared to (1) last year, (2) the adopted budget, and (3) neighboring cities. Hopefully this
information will provide you immediate perspective on our results as well as equip you for
questions you may have to entertain.
City of Fort Worth
Monthly Collections
FY09 vs. FY08
August August Unfavorable
2009 2008 Variance °lo Variance
Sales Tax $7,367,207 $8,124,900 757,693) -9.3%
Revenue
Note: For the month of August, the City's sales tax collections were down $757,693 compared to
last year. This downward trend demonstrates a continued reduction in consumer spending.
City of Fort Worth
Actual vs. Budget
Year to Date — FY2009
Unfavorable
Actual Bud et Variance % Variance I
Saves Tax
ue $90,163,490 $94,103,811 $ 3,940,321 -4,2%
Note: For the first 11 months of this fiscal year, we collected $3,940,321 less than budget.
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9126
To the Mayor and Members of the City Council October 13, 2009
Page 2 of 2
SUBJECT: October 2009 — Sales Tax Update
Ya'Y3
City of Fort Worth
City Comparisons -- YTD
FY09 vs. FY08
City % Change
BURLESON 2.9%
ARLINGTON -11%
WATAUGA -2.2%
BEDFORD -3.6%
KELLER -3.9%
FORT WORTH -5.0%
GRAND PRAIRIE -5.7%
HURST -7.8%
SOUTHLAKE -8.0%
NORTH RICHLAND HILLS -8.2%
GRAPEVINE -9.9%
DALLAS -9.9%
EULESS -11.7%
AVERAGE % CHANGE -5.8%
Note: The average percentage change from the previous year among the comparison cities is -
.8%. The City of Fart Worth has seen a decline in year to date collections of-5.0% from FY08.
Our collections are relatively neutral compared to other cities.
While our sales tax revenue continues to decline, we are not prepared to recommend any
adjustments to the FYI 0 budget at this time, since it was recently adopted. We will continue
to monitor this volatile revenue stream and provide updates to the City Council, If i
necessary, staff will recommend a id-year expenditure adjustment to offset t is decline in
revenue.
F
If you have any questions, please call Horatio Porter, Budget Officer, at 817.392.2379. I
j; Dale A. Hassler. ,E,
City onager
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ISSUED BY THE CITY MANAGER T WORTH, TEXAS