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. CY denotes Calendar Year.
Per the Budget Office's forecasts, sales tax would be considered on trend if collections equaled at least $107.07/capita for the 4th quarter. The per capita figure is based on an estimated population of 118,023 as noted in the Fiscal Year 2019 Budget Book.
For the 4th quarter, the City exceeded its goal by $8.73 per capita. The 4th quarter sales tax collections totaled $13,667,447, or $115.80 per capita. Fiscal Year 2019 comes to a close with a total of $460.36 per capital figures, which is $38.36 over the established target for the fiscal year. Since the total quarterly per capital figure exceeds the target, the measure has been evaluated green.
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 FY19 sales tax revenue flat based on FY18 projections. In other words, the FY18 year-end reoccurring sales tax projections set the baseline for our FY19 sales tax budget.
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 >$422/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.