Page 79 - Mansfield 2019 Operating Budget

Sales Tax Revenue

Sales tax accounts for approximately 20% of all revenue in the General Fund. Sales tax revenue also
supports the Mansfield Park Facilities Development Corporation and Mansfield Economic Development
Corporation. Sales tax is budgeted at $12,306,425 in FY 2018-2019 or a 7.39% increase over FY 2017-
2018 budget estimates. In 2018-2019, the City anticipates continued growth in retail spending activity
from new retail development primarily at the new Shops at Broad development and along the Highway
360 corridor. Entertainment venues including Hawaiian Falls Water Park, Big League Dreams Sports
Park, Fieldhouse USA, Dallas Stars Center and downtown development will continue to attract retail and
commercial development in the short and long term. Through the Mansfield Economic Development
program, the City is constantly searching for new retail, commercial and industrial developments to grow
its retail base. The City continues to attract high quality development and expects increased retail activity
to continue in 2019.

Sales & Use Tax Revenue

$14,000,000

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$-
2010 2011 2012 2013 2014 2015 2016 2017 Budget Budget
2018 2019

Franchise Tax Revenue

Franchise tax accounts for approximately 11% of all revenue in the General Fund. Franchise tax revenue
includes revenue from electric, gas, telephone, cable and sanitation franchise agreements. In FY 2018-
2019, franchise tax revenue is projected to increase 2.27%. The electric and gas franchise taxes are tied to
actual usage and weather conditions. Annually, franchise fees have increased as new residential,
commercial and retail development increase. The actual number of users and the weather patterns
throughout the year determines the electric and gas franchise fee revenue. The revenue may increase or
decrease depending on the volume usage of kilowatt-hours per household, hot or dry conditions during
the year and the number of new residential and commercial users.

77