Page 79 - Mansfieldr FY20 Approved Budget

Sales Tax Revenue

Sales tax accounts for approximately 19% 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 $13,167,875 in FY 2019-2020 or a 7% increase over FY 2018-2019
budget estimates. In 2019-2020, 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 2020.

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

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2019 2020

Franchise Tax Revenue

Franchise tax accounts for approximately 10% of all revenue in the General Fund. Franchise tax revenue
includes revenue from electric, gas, telephone, cable and sanitation franchise agreements. In FY 2019-
2020, franchise tax revenue is projected to decrease 4.9% due primarily to new legislation passed in 2019.
Texas Senate Bill 1152, relating to the payment of certain fees to municipalities by entities that provide
telecommunications and cable or video services, is expected to impact franchise tax revenue. Historically,
franchise fees have increased as new residential, commercial and retail development increase. The actual
number of users and the weather conditions throughout the year determine 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.

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