Page 36 - Forest Hill FY20 Annual Budget

CITY OF FOREST HILL

MAJOR REVENUE SOURCES DESCRIBED

The major revenue sources for the City are
• Ad valorem (property) taxes
• Sales tax
• Franchise fees
• Motel tax
• Other Governmental Sources
• Water and sewer service
Each of these sources of revenue plays a vital role in determining the fiscal health of the City.

REVENUE FORECASTING

Revenue forecasts are largely based on trend analysis, with an emphasis on current and expected future
economic conditions with the national, state, and local economy. Any changes in law that might affect
revenue streams must also be considered.

AD VALOREM TAXES – NET TAXABLE VALUE

Ad valorem taxes attach an enforceable lien on all real, personal, and business property in the City of Forest
Hill. The amounts of property taxes that the City expects to collect are based on the certified roll calculated
by the Tarrant Appraisal District, on behalf of the City. The September 1, 2019 certified net taxable value of
$617,890,831 is a 20.3% increase from the September 1, 2018 net taxable value of $513,513,216. The tax
year begins January 1 and fiscal year end is September 30.

AD VALOREM TAXES – PROPOSED TAX RATE

The Fiscal Year 2019-2020 tax rate is $.992873 per $100 valuation. This is the same as last year’s adopted
tax rate. The effective tax rate is based on a tax rate that would produce the same amount of taxes if applied
to the same properties taxed in both years. For the FY 2019-2020, the effective rate as calculated by Tarrant
County is $.858488 per $100 of assessed valuation. The rate of $.992873 per $100 valuation is the sum of
two components, the maintenance and operations (M&O) rate (0.911303) plus the interest and sinking
(I&S) rate (0.081570) which combined equal the overall tax rate.

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