HomeMy WebLinkAboutIR 25-0014INFORMAL REPORT TO CITY COUNCIL MEMBERS
To the Mayor and Members of the City Council
No. 25-0014
January 14, 2025
Page 1 of 4
SUBJECT: SEPTEMBER 2024 — SALES TAX REVENUE UPDATE
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11575
Sales tax revenue is 25% of the City's General Fund FY2024 revenue, making sales tax the second-largest
General Fund source of revenue following property tax. In addition, sales tax revenue represents the largest
revenue source in the Crime Control and Prevention District (CCPD) Fund. Because sales tax represents a
significant revenue source for the City and can sometimes be a volatile revenue stream, it is important for
the City to closely monitor and report on monthly sales tax receipts. Sales tax payments are allocated to
Fort Worth by the State of Texas two months in arrears. Sales tax receipts are recognized as collected with
an adjustment made in the final month of the fiscal year to align total fiscal year (October — September)
collections with the months of economic activity generating the revenue. The year-to-date (YTD) figures
below include all year-end accruals, which were entered after the receipt of the November sales tax
allocation (for September economic activity).
The Texas Comptroller's Office posted September 2024 (Fiscal Year 2024, Period 12) collection results on
September 11, 2024. Actual receipts are dependent upon the timeliness and accuracy of sales tax payers'
returns. Recent years have witnessed significant swings to the economy and retail sales including legislative
reform on remitting sales tax to the state comptroller, effects of a historic winter storm, fluctuations in target
interest rates, and the effects of a global pandemic.
The FY2024 Adopted Budget for sales tax was estimated based on historical trends due to the potential
fluctuation in the revenue source. The city takes a conservative, yet realistic, approach to estimating sales
tax.
CITY OF FORT WORTH YTD BUDGET & NET COLLECTIONS COMPARISON
Adopted Amended Budget YTD Budget to Actual YTD Actual to
Budget Budget As of September Adopted % As of September Adopted %
CITY OF FORT WORTH
GENERAL FUND $250,000,000 $250,000,000 $250,000,000 100.0% $238,005,897 95.2%
CCPD $119,391,511 $119,391,511 $119,391,511 100.0% $113,738,425 95.3%
Total $369,391,511 $369,391,511 $369,391,511 $351,744,321
CITY OF FORT WORTH BUDGET COMPARISON — FY2024
Projected
Adopted
Amended
Fiscal Year
Variance to Adopted
Budget
Budget
Projections
CITY OF FORT WORTH
GENERAL FUND $250,000,000
$250,000,000
$238,005,897
($11,994,103)
-4.8% qo
CCPD $119,391,511
$119,391,511
$113,738,425
($5,653,086)
-4.7%
Total $369,391,511
$369,391,511
$351,744,321
($17,647,190)
-4.8% qo
*THE AMENDED BUDGET HAS NOT CHANGED FROM ADOPTED BUDGET FOR THE SALES TAX REVENUE
• The FY2024 Adopted Budgets for General Fund and the CCPD Fund represent a 14.9% increase
over the FY2023 Adopted Budgets
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
To the Mayor and Members of the City Council
No. 25-0014
January 14, 2025
Page 2 of 4
SUBJECT: SEPTEMBER 2024 — SALES TAX REVENUE UPDATE
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11575
• FY2024 Fiscal Year net collections increased by 2.3% over the FY2023 Actuals collected. Fort Worth
collected a grand total of $343,878,798 in FY2023 for the General Fund and CCPD
• The FY2024 Fiscal Year -End grand total of General Fund and CCPD Fund sales tax revenue,
including the impact of all accruals, is $351,744,321
COLLECTION DETAIL FOR CITY SALES TAX (FY2023 TO FY2024)
General Fund
September 23 September 24
Variance ($)
Variance (%)
Current Period Collections
$18,307,060
$18,863,499
$556,440
3.0%
Other Collections*
$244,298
$878,134
633,836
259.5%
Single Local Rate*
$190,620
$192,446
1,827
1.0%
Audit Adjustments
($191,138)
$593,305
784,442
410.4%
Service Fee
($371,017)
($410,548)
(39,531)
(10.7%)
Retainage
$58,207
$46,641
(11,565)
(19.9%)
Net Collections
$18,238,029
$20,163,477
$1,925,448
10.6%
CCPD Fund
September 23 September 24
Variance ($)
Variance (%)
Current Period Collections
$8,899,835
$9,143,436
$243,601
2.7%
Other Collections*
$118,350
$424,510
306,160
258.7%
Single Local Rate*
$92,650
$90,801
(1,849)
(2.0%)
Audit Adjustments
($94,378)
$26,397
120,775
128.0%
Service Fee
($180,329)
($193,703)
(13,374)
(7.4%)
Retainage
$21,635
$20,397
(1,237)
(5.7%)
Net Collections
$8,857,763
$9,511,839
$654,076
7.4% Oj
*OTHER COLLECTIONS ARE PAYMENTS ATTRIBUTED TO NON -CURRENT COLLECTIONS INCLUDING PRIOR PERIOD, FUTURE PERIOD AND UNIDENTIFIED
COLLECTIONS. SINGLE LOCAL RATE IS COLLECTIONS FROM REMOTE SELLERS WHO HAVE OPTED TO UTILIZE THE STATES ALTERNATE SINGLE LOCAL USE RATE
OF 1.75%. THIS SINGLE LOCAL RATE CANNOT BE USED BY BUSINESSES LOCATED IN TEXAS. AUDIT ADJUSTMENTS FLUCTUATE BASED UPON RESULTS OF
TAXPAYER SALES TAX AUDITS CONDUCTED BY THE STATE OF TEXAS.
September collections are higher than the same month last year.
• The General Fund net sales tax collections as of September are 8.23% lower than the adopted
budget and 10.6% higher than the same month last year
• The CCPD Fund net sales tax collections as of September are 8.26% lower than the adopted budget
and 7.4% higher than the same month last year
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
To the Mayor and Members of the City Council
No. 25-0014
January 14, 2025
Page 3 of 4
SUBJECT: SEPTEMBER 2024 - SALES TAX REVENUE UPDATE
The following chart indicates how FY2024 net sales tax collections in Fort Worth and other select cities in
the state compare to FY2023 collections for the same period.
CITIES COMPARISON - NET COLLECTIONS
FY2023 vs. FY2024
City
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
ARLINGTON
5.9%
(0.6%)
3.7%
6.1 %
DALLAS
3.0%
1.8%
6.7%
2.6%
GARLAND
34.6%
6.8%
9.6%
(9.3%)
EL PASO
1.2%
0.2%
0.5%
1.9%
IRVING
0.0%
(3.3%)
4.9%
1.5%
MCKINNEY
5.2%
9.9%
8.9%
6.7%
SAN ANTONIO
0.3%
2.5%
3.1 %
1.4%
GRAND PRAIRIE
1.2%
(3.8%)
5.9%
1.3%
PLANO
1.2%
2.1 %
9.8%
3.5%
HOUSTON
1.5%
(1.6%)
(1.5%)
(0.7%)
AUSTIN
(2.3%)
(0.1 %)
7.1 %
(0.5%)
FORT WORTH
(1.5%)
0.1 %
3.0%
5.4%
FRISCO
(5.5%)
0.2%
5.3%
3.0%
STATE TOTAL
2.1 %
0.4%
2.2%
0.3%
Source: Allocation Payment Detail and Monthly All Fund Revenue Report, Texas Comptroller of Public Accounts
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 25-0014
To the Mayor and Members of the City Council January 14, 2025
piiT&4t. Page 4 of 4
SUBJECT: SEPTEMBER 2024 — SALES TAX REVENUE UPDATE
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11575
Sales tax is collected on a variety of transactions besides the traditional retail industry, and it is important
to understand the various sources in order to anticipate any fluctuations. The following chart indicates the
top five industries' performance for sales tax over the past two years and current fiscal year to date in Fort
Worth.
TOP 5 PERFORMING INDUSTRIES
200,000,000
180,000,000
160,000,000
140,000,000
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
Oct 21-Sep 22 Oct 22-Sep 23 FY2024 YTD
Department Stores Other Nonstore Retailers Limited Service Eating Places -Building Materials Stores .Electric Utilities
*Source: Zac Tax; current month data is sometimes unavailable at time of IR publication
If you have any questions, please contact Christianne Simmons, Chief Transformation Officer, FWLab, at
817-392-6222.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS