FYE18: the Drive for 2.5% is Likely to Fall Short

No real changes in December …. FYE18 has always been expected to be a down year for
Norman Sales (& Use) Tax collections. It is turning out even worse than expected. All of the
City Budget documents predict a 2.5% increase in sales tax revenues in FYE18, followed
by an increase to 4% (or - inexplicably - 4.25% the latest NF Pro Forma budget) in FYE19
and beyond.

Baseline numbers: the City collected $9,646,527 via the Norman Forward Sales Tax in
FYE17; a predicted 2.5% growth rate means we expect to collect $9,887,690 in FYE18.

We now have six months of sales and use tax remittances from the state in FYE18, and
things aren’t getting better. December remittances (October collections) were down 3.79%
over the same month last year, and that puts us down (-0.43%) from last year

December remittance/October collection (NFST Sales + Use)

- FYE17: $780,689

- FYE18: $751,136

- decrease: 3.79%

Year to date, through December (NFST Sales + Use)

- FYE17: $4,832,609

- FYE18: $4,812,025

- decrease: 0.43%

We have been basically treading water for six months now, so we will need to grow at an
accelerated rate to meet our yearly goal. In particular, the collections for the the rest of
FYE18 will need to be 5.44% better than collections over the equivalent reporting period in FYE17.

NFST (Sales + Use)
FYE18 month remitted	FYE17	Benchmark (FYE17 + 2.5%)	FYE18		FYE17 cumulative	Benchmark cumulative	FYE18 cumulative
July	$797,041	$816,967	$811,837		$797,041	$816,967	$811,837
August	$799,223	$819,203	$783,821		$1,596,264	$1,636,170	$1,595,657
September	$805,400	$825,535	$802,051		$2,401,664	$2,461,706	$2,397,708
October	$838,611	$859,576	$855,719		$3,240,275	$3,321,282	$3,253,427
November	$811,645	$831,936	$807,462		$4,051,920	$4,153,218	$4,060,889
December	$780,689	$800,206	$751,136		$4,832,609	$4,953,424	$4,812,025