Strong Local Economy
Status Indicators: Proceeding as Anticipated | Monitoring Progress | Reviewing for Improvement | Information Unavailable
Proceeding as Anticipated
Reviewing for Improvement
Please note that Q1, Q2, Q3, and Q4 refer to the first, second, third, and fourth quarters of the Fiscal Year. The City’s Fiscal Year runs from October 1st – September 30th and is denoted by FY.
Per the Budget Office's forecasts, sales tax would be considered on trend if collections equaled $97/capita for the first quarter. The City exceeded its goal by $7. 1st quarter sales tax collections totaled $12,320,208, or, $104 per capita. The per capita figure is based on an estimated population of 117,869 as noted in the FY18 Budget Book. Current results show an increased per capita relative to previous quarters due to the City’s population growth (87,730 in FY17).
Sales tax is one of the most important revenue streams for the City, but it is also highly volatile and subject to risk. The City conservatively budgeted FY 2018 sales tax revenue flat based on FY 2017 projections. In other words, the FY 2017 year-end sales tax projections set the baseline for our FY 2018 sales tax budget. However, the last 3 months of FY 2017 came in lower than projected, leading the City Manager to recommend reducing the FY 2018 sales tax budget even further after the FY 2018 budget was approved, based on current trends.
Please also note that last fiscal year, this measure had an annual target value of >$599 of sales tax collection per capita. This measure has been adjusted due to an increase in population size.
The sales tax target is based off what the City has budgeted for sales taxes.
The target and status for this measure reflects the sales tax collections per capita in the City of Sugar Land. Sales tax collections will be reported on a quarterly basis.
Sales tax is generated by goods sold or delivered by businesses within the City’s corporate limits. Of the 2% local share out of the 8.25% total sales tax, 0.25% is allocated to the Sugar Land Development Corporation (SLDC), 0.25% to the Sugar Land 4B Corporation (SL4B), and the remaining 1.5% is deposited in the City’s General Fund.
An increase in sales tax per capita each fiscal year. The target is >$400/capita (Year To Date). This target reflects an increase in the amount of taxable items purchased, and therefore, an increase in the economic vitality of the city. Sales tax collections will be reported on a quarterly basis.
Sales Tax Calculation
sales tax budgeted / population
Sales tax collections are a barometer of economic health, and help the City judge the economic climate going into the next budget year.