Page 108 - NRH FY20 Approved Budget

REVENUE DESCRIPTIONS, EVALUATIONS

AND PROJECTIONS

Sales Taxes are collected by the State Sales Tax Revenues
from the sale of goods and services.
The General Fund receives the General Fund
following portions of these taxes from
the State: Sales Tax – 1% of each dollar taxed $11
within the City, and Mixed Beverage Tax – 10.7% $10
of State collections within the City. Mixed Beverage $9
Taxes for 2019/20 are projected to account for less Millions $8
than 1% of total General Fund Revenues. Sales $7
tax revenues account for 20.97% of General Fund $6
revenues. As a result of the recovering economy, $5
the city projects sales tax collections to trend 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
upward in 2019/20.

Franchise Taxes are collected
Franchise Taxes primarily from utilities. They are fees
charged for the use of public property.
$6.0 These fees account for 9.83% of
$5.5 General Fund revenues. Franchise payments are
$5.0 based on different criteria. A 4% fee on gross
$4.5
Millions $4.0 receipts is collected for gas and electric utilities.
The sanitation system collection service pays 4% of
$3.5
$3.0 gross receipts received from the billing of garbage
$2.5 collections in the City for both commercial and
$2.0 residential accounts. The telephone franchise
2012 2013 2014 2015 2016 2017 2018 2019 2020 agreement guarantees the City $0.87 per
residential line and $2.41 per non-residential
(business) line. Payments are also received from 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 2019/20 is projected at 0.81% of total General Fund Revenues.

The taxes category which includes Property Taxes, Sales Taxes, and Franchise Taxes account for 70.25% of
General Fund revenue for 2019/20. 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 2019/20 revenue
projections.

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