HomeMy WebLinkAboutIR 9654 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9654
To the Mayor and Members of the City Council August 12, 2014
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SUBJECT: June 2014 — Sales Tax Update
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 June 2014 collection results on August 6th. Actual receipts are
dependent upon the timeliness and accuracy of sales tax payers' returns. 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.
June Net Sales Tax Collections (10-year History)
Fl2005 Fl2006 FY2007 FY2008 Ff2009 Fl2010 Fl2011 FY2012 FY2013 FY2014
The City's net sales tax collection is down $39,035 or 0.4% compared to this month last year. This
drop is due to a one time audit adjustment of approximately $1 M. A single entity filed for a refund
of taxes paid on tax exempt purchases. This is clearly an isolated and unusual event. As depicted
in the table below, the City experienced $1,229,123 or 11.1% in positive growth when compared to
last year's current period collections for the same month. Current period collections include only
transactions that occurred within the month, so this number reflects pure economic activity.
Collection Detail for City Sales Tax
June 1,2013 June 1,2014 CHANGE CHANGE
Current Period Collections: $11,107,115 $12,336,239 $1,229,123 11.1%
Other Collections: $147,422 $164,402 $16,980 11.5%
Audit Collections:
$151,219 4,$1,1`;3 9,9(�6) ($1,11:? 1,1 '5) 853 99ll
Service Fee: ($°!?28,°i 13) (,M'� °������(����°m.�,�� �,.?!1�����.(:;( $902 0.4%
Retainage: (M'� , 1i !"31'�J) ($26,093) $5,145 16.5%
Net Collections $11,146,404 $11,107,369 ($39,933) 0.4% i
Current Period Collections
Change vs. Same Month in Prior Year
7.9% 7.a°J
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4.a°1°
6.0% 6-1%
7.2 fo 5.7% °° 4.7 fo 6.1°f°
2.3°1°
Jul-13 Aug-13 Sep-13 Oct-t3 Nov-13 Doo-13 Jam-t4 Fete-t4 Mar-t4 Apr-14 May-t4 Jun-14
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9654
To the Mayor and Members of the City Council August 12, 2014
`�` Page 2 of 2
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SUBJECT: June 2014 - Sales Tax Update
City Of Fort Worth Budget Comparison -FY2014
Adopted Fiscal Year
Budget Projection Variance
CITY OF FORT WORTH $ 120,934,328 $ 124,198,684 2.7% $ 3,264,356
CRIME CONTROL AND PREVENTION DIST. $ 54,715,598 $ 57,532,001 5.1% $ 2,816,403
MATS TRANSIT AUTHORITY-THE"T" $ 61,220,000 $ 62,037,162 1.3% $ 817,162
The City is projecting to collect $3,264,356 or 2.7% more than the FY2014 adopted General Fund
budget. As depicted above, you will also see how the positive results are affecting our partner
agencies. These are the projected collections for the fiscal year and while they are encouraging, Staff
recommends maintaining a conservative forecast for FY2014 as we continue to experience
uncertainty with the national economy and potential audit adjustments from the Comptroller's Office.
The chart below indicates how other cities in the region compared to FY2013.
CITY OF FORT WORTH
CITY COMPARISON - FY2014 vs. FY2013
City First Quarter Second Quarter Third Quarter YTD
SOUTHLAKE 17.4% 15.3% 14.1% 15.6%
BURLESON 12.8% 5.4% 3.9% 7.4%
EULESS 2.4% 11.6% 8.4% 7.4%
KELLER 5.4% 2.9% 10.1% 6.2%
GRAPEVINE 4.2% 4.9% 8.5% 5.8%
DALLAS 7.3% 6.1% 3.7% 5.7%
FORT WORTH 7.1% 4.8% 4.5% 5.5%
BEDFORD 2.3% 1.2% 10.1% 4.5%
NORTH RICHLAND HILLS 2.8% 1.5% 6.5% 3.6%
HURST 3.3% 2.5% 4.0% 3.3%
WATAUGA 2.6% 1.4% 5.3% 3.1%
GRAND PRAIRIE 0.1.9,''d; 2.4% 1.5% 1.1%
ARLINGTON 0.6% "I"I.d,9,''d; 4.7% ;;..r 9,''�
STATE TOTAL 4.0% 6.6% 6.0% 5.5%
Again, hopefully you find this additional information helpful. If you have any questions, please call
Aaron Bovos, Financial Management Services Director, at 817-392-8517.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS