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HomeMy WebLinkAboutIR 9529 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9529 To the Mayor and Members of the City Council December 18, 2012 `�` Page 1 of 2 r SUBJECT: October 2012 — Sales Tax Update r�Fs Sales tax revenue represents approximately 20% of the City's General Fund budget. Staff is committed to providing you regular updates on this important and sometimes volatile revenue source. The Texas Comptroller's Office posted results on December 12th. The results are dependent upon the timeliness and accuracy of sales tax payers' returns. This payment from the State represents taxes collected on sales that occurred primarily in the month of October. In this report, you will see Fort Worth's sales tax collection compared to last year and the impact on the current year's budget. MONTHLY NET SALES TAX COLLECTIONS FOR OCTOBER CITY OF FORT WORTH October FY2013 $9,341,902 DOLLAR VARIANCE %VARIANCE October FY2012 $7,567,172 $1,774,730 23.5% m c � � � � � � � FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 The City's net sales tax collection is up $1,774,730 or 23.5% compared to this month last year. These collections are the best on record for the month of October. However, net collections for October 2011 were reduced by an audit adjustment of m" "� , '.L': '.L This adjustment was the result of a Plano company paying sales tax to cities that were receiving goods, rather than the source city (Plano). The adjustment covered the period from Jan 2008 to Dec 2009. As depicted in the table below, "current period collections" increased 13.0% over last year, signaling a continued improvement in pure economic activity. COLLECTION DETAIL FOR CITY SALES TAX October FY2012 October FY2013 CHANGE CHANGE Current Period Collections: $7,999,973 $9,036,289 $1,036,316 13.0% Other Collections: $234,816 $427,280 $192,464 82.0% Audit Collections: ��,�;�'� ,�, 8 ���8;1 $40,654 $617,079 107.1% Service Fee: ��,� �1'�C 191;f;, ,!h��1, ;'�' 1 3,16 1' �,�,��''I "�I l 7 24.1% Retainage: $61,976 $27,763 �C)IJ B '1 :) 55 ,5^,' Net Collections $7,567,172 $9,341,902 $1,774,730 23.5% Current Period Collections 18.4% 17.3% 11.2% 9.7% 9.8% 7.9% 13.0% 5.1% 5.1% 2.7% Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9529 To the Mayor and Members of the City Council December 18, 2012 `�` Page 2 of 2 r SUBJECT: October 2012 — Sales Tax Update CITY OF FORT WORTH BUDGET COMPARISON - FY2013 ADOPTED FISCAL YEAR BUDGET PROJECTION VARIANCE CITY OF FORT WORTH $ 108,798,434 $ 110,229,496 1.37 CRIME CONTROL AND PREVENTION DIST. $ 49,795,976 $ 52,016,839 4.5% MASS TRANSIT AUTHORITY-THE"T" $ 57,231,467 $ 57,779,532 1.0% The City has collected $1,431,062 or 1.3% more than the FY2013 adopted budget. As depicted above, you will also see how the positive results are affecting our partner agencies. These are the first collections for the fiscal year and while they are encouraging, Staff recommends maintaining a conservative forecast for FY2013 as we continue to experience uncertainty with the national economy and potential audit adjustments. The chart below indicates how other cities in the region compared to FY2012. CITY OF FORT WORTH CITY COMPARISONS -FY2013 v. FY2012 CITY October WATAUGA 32.6% SOUTHLAKE 32.6% EULESS 26.9% FORT WORTH 23.5% DALLAS 22.8% GRAND PRAIRIE 15.8% HURST 14.5% GRAPEVINE 10.6% BEDFORD 10.2% KELLER 3.5% NORTH RICHLAND HILLS 2.1% ARLINGTON I:! 11141 BURLESON ? 8" STATE TOTAL 8.2% Again, hopefully you find this additional information helpful. If you have any questions, please call Horatio Porter, Budget Officer, at 817.392.2379. Tom Higgins City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS