HomeMy WebLinkAboutIR 9166 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9166
�AT&## To the Mayer and Members of the City Council December 15, 2009
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SUBJECT: December 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 December
8th. You may recall, sales tax reporting experiences a two month lag and this December report
reflects taxes that were collected in October.
Below you will find the October 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
FY2010 vs. FY2009
October October Unfavorable
2010 2009 Variance % Variance
[Rev:enue
$7,089,510 $8,574,283 $ (1,484,773) -17.3%
Note: For the month of October, the City's sales tax collections were down $1,484,773 compared
to last year. This downward trend demonstrates a continued reduction in consumer spending.
City of Fort Worth
Actual vs. Budget
Year to Date — FY2010
Unfavorable
Actual Budge Variance % Variance
Sales Tax E
venue
$7,089,51 0 $8,317,055 $ 1,227,544) -14.
Note; For the first 1 month of this fiscal year, we collected $1,2273544 less than budget.
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INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9166
To the Mayor and Members of the City Council December 15, 2009
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Page 2 of 2
SUBJECT: December 2009 -- Sales Tax Update
City of Fort Worth
City Comparisons — YTD
FY2010 vs. FY2009
City %
Chan- e
BURLESON 12.9%
ARLINGTON -4.8%
DALLAS -5.3%
NORTH RICHLAND HILLS -7.4%
WATAUGA -8.0%
GRAPEVINE -8.3%
GRAND PRAIRIE -9.6%
BEDFORD -9.9%
HURST -11 .8%
SOUTHLAKE -13.9%
1 KELLER -17.1%
FORT WORTH -17.3%
EULESS -27.8%
AVERAGE % CHANGE -9.9%
Note: The City of Fart Werth has seen a decline year to date collections of-17.3% from FY2009.
While our sales tax revenue has experienced a sharp decline compared to other cities, last year
our October collections were still strong compared to neighboring locations. In Fort Worth, we did
not see our first decline in sales tax revenue until November.
Staff will continue to monitor this volatile revenue source and provide an update during
our January workshops. if the trend that we've experienced continues next month, Staff
will recommend a id-year budget adjustment similar to the one that was implemented
last year,
I Again, hopefully you find this information helpful. If you have any questions, please call Horatio
Porter, Budget Officer, at 317 92.23791
Dal Fs `
City Manager
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ISSUED THE CITY GE T WORTH, TEXAS