HomeMy WebLinkAboutIR 9536 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9536
To the Mayor and Members of the City Council January 15, 2013
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SUBJECT: November 2012 — Sales Tax Update
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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 January 9th. 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 November. 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 NOVEMBER
CITY OF FORT WORTH
November 2012 $8,267,979 DOLLAR VARIANCE %VARIANCE
November 2011 $8,466,199 I a+ )) yank„
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FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
The City's net sales tax collection is down 4,;m'I 'tl :°' ': d 4 ' or 4,;': .m l'b''°o) compared to this month last year.
Collections for this month were reduced by an unfavorable audit adjustment of 4,;m'I ': ' "II':' . The
adjustment was caused by one wholesale company incorrectly reporting its sales tax information. The
sales tax should have been reported for the city that received the shipped goods instead of the city
that originated the order. This impacted several cities in the area. Additionally, in November 2011,
collections had a favorable audit adjustment of $167K. This represents a (,W( 5[<', swing in audit
adjustments. Fortunately, pure economic activity which is reflected in "current period collations" has
increased by 2.4%. Apart from the audit adjustments, we continue to see a positive trend in sales tax
revenue.
COLLECTION DETAIL FOR CITY SALES TAX
November 2011 November 2012 CHANGE CHANGE
Current Period Collections: $8,273,028 $8,470,591 $197,563 2.4%
Other Collections: $218,246 $182,200 ($36,046 I6 5' ,
Audit Collections: $167,717 '';' �a,����,�Y.;M ($,405,581 241.8%
Service Fee: 8 ,�
�;,�;'I� I �Y;:1;N 1"�k;;,', , o 9;N $4,881 814,,
Retainage: ($19,6 1 ';M $21,350 $40,962
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Net Collections $8,466,199 $8,267,979 �"�'II Pi!1 ,II�i!I�mdal .
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Current Period Collections
18.4% 17.3%
13.0%
9.7% 9.8% 7.9%
4.3% 5.1%
5.1% 2.7% 2.4%
Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9536
To the Mayor and Members of the City Council January 15, 2013
`�` Page 2 of 2
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SUBJECT: November 2012 - Sales Tax Update
CITY OF FORT WORTH BUDGET COMPARISON - FY2013
ADOPTED FISCAL YEAR
BUDGET PROJECTION VARIANCE
CITY OF FORT WORTH $ 108,798,434 $ 110,492,714 1.67
CRIME CONTROL AND PREVENTION DIST. $ 49,795,976 $ 51,987,270 4.4%
MASS TRANSIT AUTHORITY-THE"T" $ 57,231,467 $ 57,836,119 1.1%
Through two months, the City has collected $1,694,280 over budget; for the full year we project to be
1.6% above the 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 November YTD
SOUTHLAKE 32.6% 6.0% 17.9%
EULESS 26.9% 7.5% 17.3%
GRAPEVINE 10.6% 23.4% 17.0%
GRAND PRAIRIE 15.8% 11.5% 13.7%
DALLAS 22.8% 0.1% 11.0%
FORT WORTH 23.5% ;';.3°'6 9.8%
KELLER 3.5% 11.7% 7.5%
BEDFORD 10.2% 4.3% 7.1%
HURST 14.5% (".i,15'' 3.3%
WATAUGA 32.6% )':> 75 2.5%
ARLINGTON ;e 95 O 31
NORTH RICHLAND HILLS 2.1% 9 31 '!1,",5";
BURLESON
STATE TOTAL 8.2% 13.1% 10.7%
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