Page 46 - Keller FY20 Approved Budget

Sales and Use Tax Collections: FY 2019-20 Budget $6,488,274
% of Fund Revenue 16.4%
Compared to $ Growth % Growth
The second largest General Fund FY 2018-19 Budget $381,837 6.25%
revenue source is Sales Tax. The city’s FY 2018-19 Projection $95,103 1.5 %
total sales tax rate is 2 cents per $1 with
1 cent going to the General Fund; a 1/2-cent going to the Keller Development Corporation for parks
capital projects, as approved by voters in January 1992; a 1/4-cent going to street maintenance, as
approved by voters in November 2015; and a 1/4-cent going to the Keller Crime Control District, as
approved by voters in November 2001. Anticipated FY 2019-20 sales tax revenue is $12,900,957, and
of this amount approximately half, or $6,488,274, will go to the General Fund. Sales tax is approximately
5.9% up over this time last year. It is important to note, however, the city benefited from several one-time
audits that skewed this number. With those removed, sales tax is about 2.7% up over this time last year.
This year, the city is anticipating conservative growth in sales tax of 1.5% from year-end projections.

7,000,000 6,155,624 6,106,437 6,393,171 6,488,274
5,705,047 5,945,584
6,000,000
5,000,000

4,000,000
3,000,000
2,000,000

1,000,000
‐
FY 2015‐16 FY 2016‐17 FY 2017‐18 FY 2018‐19 FY 2018‐19 FY 2019‐20
Actual Actual Actual Budget YE Proj. Adopted
Budget

Sales Tax

Other Taxes (Franchise Fees & Mixed FY 2019-20 Budget $4,421,667
Beverage Tax): % of Fund Revenue 11.2 %

Compared to $ Growth % Growth
FY 2018-19 Budget $(151,301) (3.3) %
FY 2018-19 Projection $(77,443) (1.7) %

Other Taxes (Franchise Fees & Mixed Beverage Taxes) are comprised of mixed beverage and
franchise taxes, with the latter accounting for approximately 96.3% of these revenues. Franchise taxes
are fees charged for the continued use of public property (rights-of-way) and are collected from utility
companies, from the City of Keller's Water & Wastewater Utility, and Drainage Utility funds. Revenues are
based on trends that reflect decreasing cable franchise fees. Electric franchise fees have been decreasing
as rates continue to lower and telecommunications franchise fees have decreased as cable subscriptions
continue to decline. In addition, revenue is anticipated to decrease as a result of SB 1152, which relates
to the payment of certain fees to municipalities by companies that provide telecommunications, cable or
video services. Specifically, a loss of $149,887 in revenue is anticipated as a result of this legislation.
Mixed beverage tax is related to mixed alcohol beverage sales in restaurants and pubs within the city and
is showing positive growth.

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