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REVENUE DESCRIPTIONS, EVALUATIONS

AND PROJECTIONS

Sales Taxes are collected by the State from the Sales Tax Revenues
sale of goods and services. The General Fund
receives the following portions of these taxes from General Fund
the State: Sales Tax – 1% of each dollar taxed
within the City, and Mixed Beverage Tax – 10.7% $11
of State collections within the City. Mixed Beverage $10
Taxes for FY18/19 are projected to account for $9
less than 1% of total General Fund Revenues. Millions $8
Sales tax revenues account for 21.5% of General $7
Fund revenues. As a result of the recovering $6
economy, the city projects sales tax collections to
trend upward in FY18/19. $5
2012 2013 2014 2015 2016 2017 2018 2019

Franchise Taxes are collected primarily from
utilities. They are fees charged for the use of public Franchise Taxes
property. These fees account for 10.51% of
General Fund revenues. Franchise payments are $6.0
based on different criteria. A 4% fee on gross $5.5
receipts is collected for gas and electric utilities. $5.0
The sanitation system collection service pays 4% $4.5
of gross receipts received from the billing of Millions $4.0
garbage collections in the City for both commercial $3.5
and residential accounts. The telephone franchise $3.0
agreement guarantees the City $0.87 per $2.5
residential line and $2.41 per non-residential $2.0
(business) line. Payments are also received from 2012 2013 2014 2015 2016 2017 2018 2019
the cable provider amounting to 5% of gross
subscriber receipts.

Payment in Lieu of Taxes consist of an annual appropriation from the Utility Fund for property taxes charged
on infrastructure (i.e. pipelines and other utility assets) owned by the City. The appropriation for FY18/19 is
projected at 0.86% of total General Fund Revenues.

The taxes category which includes Property Taxes, Sales Taxes, and Franchise Taxes account for 68.61% of
General Fund revenue for 2018/2019. Even with the addition of some new businesses, the City conservatively
estimates sales tax revenues. This is due to competition in the area and a recovering economy. Local
economic indicators, such as the Consumer Price Index and employment data, are considered in making
forecasting decisions, but actual current and historic collection trends serve as the basis for 2018/2019
revenue projections.

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