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HomeMy WebLinkAboutIR 7325 INFORMAL REPORT TO CiTY COUNCIL MEMBERS No. 7325 �Qftopp To the Mayor and Members of the City Council October 11 , 1988 rrxA`' Subject: "Buy In Fort Worth" Campaign falls Background As you know, the City of Fort Worth has been experiencing budgetary problems due to declining revenues. In terms of revenue sources, primary focus is usually on property tax receipts. However, the $.01 city sales tax usually provides about 115 of the total revenue for the city's budget. In calendar year 1987, Fort Worth's sales tax revenues declined by about 7%. A decrease in sales tax revenue impacts the city budget, resulting in higher property tax or decreased city services. Therefore, sales tax revenues are important to the city's budget ,which ultimately affects every citizen of Fort Worth. A study of sales tax revenues in the area shows that Fort Worth citizens are often making their purchases outside the city. The leader in sales tax revenue in Tarrant County is the City of Hurst where Northeast Mall serves as the shopping center for Northeast Tarrant County. As indicated in the Planning Department's report "Retail Trade and Sales Tax Revenue Trends: Fort Worth and Tarrant County", Fort Worth's share of total sales in Tarrant County fell from 52.2% to 49.4% between 1977 and 1982 while the shares of Arlington and Hurst increased. The major source of sales tax revenue is retail sales . The highest volume of retail sales is generally in the_ month of December due to Christmas sales. Many small retailers depend on Christmas sales to balance the remainder of the year which is often quite slow. Proposal A program focusing on retail sales during the next three months is needed. Such a program would serve at least two purposes. One would be to educate Fort Worth citizens on the importance of buying in Fort Worth. Citizens need to understand that if all things are equal , it is actually to their economic interest to buy in Fort Worth since sales tax revenue affects the city budget which affects the property tax rate. The second purpose would be to demonstrate support to retailers to encourage them to remain in Fort Worth and, ultimately, to entice more business and economic growth to the city. The Office of Economic Development is proposing a dual approach to stimulating retail sales in Fort Worth. One is education and the other is pronoti on and marketing. Education All city staff will be encouraged to educate their employees and fellow citizens of the importance of shopping in Fort Worth and what the sales tax revenue means to the city budget. Articles will appear in city publications, such as City Times, F.Y.I., and Trendi cator. The Planning Department is publishing a report entitled "Retail—Trade and Sales Tax Revenue Trends: Fort Worth and Tarrant County" which could be distributed to area business ISSUED BY THE CITY MANAGER FORT WORTH. TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7325 —P.2 0 To the Mayor and Members of the City Council October 11 , 1988 Z5 X Subject: "Buy in Fort Worth" Campaign press to stimulate articles in their publications. An extra effort will be made by city staff to educate the public of the city's boundaries so they become more aware of when they are not shopping in Fort Worth. A promotional brochure will be prepared for city wide distribution, and for use as a "stuffer" to utility bills if utility companies would so agree. A logo or catch phrase is proposed to be developed and subsequently displayed throughout the city during the months of November and December to reinforce the education efforts in articles. Businesses could use the logo/phrase in their ads and mailers. Since some retailers are regional , perhaps the Star-Telegram would Agree to do a special Sunday supplement containing ads �Wifth the special logo/phrase for the Fort Worth subscribers. This could also be an opportunity for retailers to co-advertise. Since the Fort Worth Transportation Authority would benefit from increased sales tax revenues, the "T" might support having the logo/phrase on the buses at little or no cost. The education portion will be judged to be successful if Fort Worth citizens begin to stop and question if they could buy whatever is needed or wanted in Fort Worth. However, a second effort is needed to entice citizens into Fort Worth stores. promotion/Marketing One suggestion to entice people into the stores is a pin designed to supplement the logo/phrase and coupons. Coupons could be distributed to employees of the city's major employers to entice those who work in Fort Worth to shop there. Coupons could also be included in mailers and newspapers and could be offered in exchange for the pin and/or used as applications for drawing of prizes. Shopping areas, such as the downtown or malls, could offer their own contests with prizes from their businesses. A special event could be planned for the award ceremony with special sales and/or coupons which would encourage shopping in months of slower sales. Possibly, radio or T.V. personalities could be encouraged to participate to add visibility to the event. The "Buy in Fort Worth" Campaign could have a November 1st kickoff which would be a media event with prominent and everyday citizens saying they shop in Fort Worth. Perhaps retailers would purchase "spots" that use this theme while promoting a particular store. Businesses could reinforce this effort with a sticker on packages noting that it was bought in Fort Worth and expressing their thanks for shopping in Fort Worth. They could also offer coupons for money off in slow months . ISSUED BY THE CITY MANAGER I FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No.— 7325 p.3 roc Soft?4 To the Mayor and Members of the City Council October 11 , 1988 1'D NO' Subject: "Buy in Fort Worth" Campaign Conclusion It is recommended that city staff implement the education portion of the "Buy in Fort Worth" effort. Private organizations representing retailers should be encouraged to lead the promotional/marketing effort. City staff members h6ve presented these ideas to bodies such as the downtown retail task force, and will continue to promote the concept with other groups such as the Chamber of Commerce. However, due to the limited time, a concerted effort is needed by all to educate and promote the importance of "Buying in Fort Worth". Sincerely, � P ouglas Harman .. city Manager Opp, ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS