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HomeMy WebLinkAboutIR 9765 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9765 To the Mayor and Members of the City Council July 21, 2015 Page 1 of 2 ex SUBJECT: MAY 2015 - SALES TAX UPDATE rsFa Sales tax revenue represents approximately twenty one percent (21%) of the City's General Fund revenue anticipations in Fiscal Year 2015. It is the second largest revenue source, with property tax being the largest. In addition, sales tax revenue represents the largest revenue source in the Crime Control and Prevention District Fund. Staff is committed to providing you regular updates on this important and sometimes volatile revenue source. The Texas Comptroller's Office posted May 2015 (Fiscal Year 2015, Period 8) collection results on July 8t". Actual receipts are dependent upon the timeliness and accuracy of sales tax payers' returns. This report provides Fort Worth's sales tax collection compared to last year and the impact on the current year's budget. MAY NET SALES TAX COLLECTIONS (10-YEAR HISTORY) N FY2006 FY2007 FY2008 FY20DO FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 The City's net sales tax collection is down ($238,324), or (2.4%), compared to the same month last year. As depicted in the table below, the City experienced $69,570, or 0.7%, in growth when compared to last year's collections for the same month. Current period collections include only transactions that occurred within the month, so this number reflects pure economic activity. COLLECTION DETAIL FOR CITY SALES TAX May 14 May 15 Variance ($) Variance (%) Current Period Collections: $9,607,259 $9,676,829 $69,570 0.7% Other Collections: $129,694 $94,336 ($35,358) (27.3%) Audit Collections: $292,466 $10,128 ($282,338) (96.5%) Service Fee: ($200,588) ($195,626) $4,963 2.5% Retainage: $8,426 $13,266 $4,840 57.4% Net Collections: $9,837,257 $9,598,933 ($238,324) -2.4%Inv CURRENT PERIOD COLLECTIONS Change Compared to Same Month in Prior Year 11.1% 10.2% 9.1% 6.9% 8.0°J° 6-2% x; °.$Jo 3.0°Jo 1 $°J° 3.7% 3.9% ° D.7 Jo Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May--15 ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9765 To the Mayor and Members of the City Council July 21, 2015 r� Page 2 of 2 �i �i7 Y •a SUBJECT: MAY 2015 - SALES TAX UPDATE #qrF rn 10 7'3 CITY OF FORT WORTH BUDGET COMPARISON - FY2015 Adopted Fiscal Year Budget Projections Variance ($) Variance (%) CITY OF FORT WORTH GENERAL FUND $126,013,570 $130,460,717 $4,447,147 3.5% Q CRIME CONTROL AND PREVENTION DISTRICT $58,227,401 $61,036,041 $2,808,640 4.8% Q FORT WORTH TRANSPORTATION AUTHORITY-THE"T" $64,761,746 $64,995,254 $233,508 0.4% Q The City anticipates collecting $130,460,717 by fiscal year end, which exceeds original estimates in the FY2015 adopted budget by 3.5%. As depicted above, the positive results are affecting the City's partner agencies as well. While these results are encouraging, staff recommends maintaining a conservative forecast for FY2015, as uncertainty continues regarding the national economy and potential audit adjustments from the Texas Comptroller's Office. The chart below indicates how current year sales tax collections in Fort Worth and other cities in the region compare to FY2014 collections for the same period. CITIES COMPARISON FY2015 vs. FY2014 City 1st Quarter 2nd Quarter May YTD BEDFORD 39.1% 25.3% 23.5% 31.2% SOUTHLAKE 11.7% 43.8% 2.4% 20.0% BURLESON 25.6% 6.1% 2.8% 13.2% KELLER 14.6% 11.6% 0.3% 10.8% HURST 5.1% 14.4% 3.4% 8.0% DALLAS 8.3% 6.4% 5.0% 7.1% ARLINGTON 9.8% 2.7% (0.4%) 6.3% WATAUGA 7.1% 4.8% 9.0% 6.1% GRAPEVINE 9.9% 1.3% 6.5% 5.6% FORT WORTH 7.4% 6.7% (2.4%) 5.1% GRAND PRAIRIE 5.0% 2.3% 4.2% 3.9% NORTH RICHLAND HILLS 2.0% 1.7% 1.2% 1.7% EULESS 4.5% (1.0%) (9.8%) 1.1% STATE TOTAL 9.3% 8.3% 5.2% 7.4% If you have any questions, please call Aaron Bovos, Chief Financial Officer, at 817-392-8517. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS