Page 70 - Grapevine FY20 Approved Budget

MIXED BEVERAGE FY-2014 FY-2015 FY-2016 FY-2017 FY-2018 FY-2019
TAX

Collections $1,566,664 $1,647,776 $1,710,043 $1,733,258 $1,792,674 $2,098,826
Gain / (Loss) $408,039 $81,112 $62,267 $23,216 $59,416 $306,152
% Change 35.2% 5.2% 3.8% 1.4% 3.4% 17.1%

Mixed beverage taxes are budgeted at $2 million for FY20, which represents an increase of
$257,000 from the previous year’s budget. Actual collections for FY19 were up $306,152 (17.1%)
from the previous year. This continues a trend that has seen a steady increase in quarterly
collections since 2013, with only a few minor exceptions. As the city continues to attract hotels
and entertainment venues, this trend is expected to continue, however, not at the 17% increase in
FY19.

Franchise fees represent those revenues collected from utilities operating within the City that use
the City’s rights-of way to conduct their business. The City Council has authorized a 4% fee for
the electric utility, 4% for the natural gas utility, 5% for the cable TV utility and a 2% of gross
receipts fee for refuse collection. A flat rate is charged to both telephone operators [adjusted
annually] based on the number of access lines. The City anticipates franchise fee collections of
$6.9 million, up $223,000 from the previous year. Actual FY19 collections were $6,188,391 and
represent a 10% decrease from the previous year.

A bill introduced in the Texas legislature this year and signed into law by the governor will cut
right-of-way fees for telecommunication companies providing cable services.

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