Page 47 - Forest Hill FY21 Annual Budget

I MAJOR REVENUE SOURCES

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.

I 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.

I 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 ce1iified roll
calculated by the Tarrant Appraisal District, on behalf of the City. The September I, 20 IO certified net
taxable value of $657,056,752 is a I 0.6% increase from the September I, 2019 net taxable value of
$617,890,831. The tax year begins January I and fiscal year end is September 30.

I Ad Valorem Taxes- Proposed Tax Rate

The Fiscal Year 2020-2021 proposed tax rate is $0.997340 per $100 valuation. For fiscal year 2020-2021,
the no-new-revenue tax rate is $0.968013 per $100 valuation. The no-new-revenue rate is tax rate for the
r
2020 tax year (2021 fiscal year) that will raise the same amount of property tax revenue for the City fom
the same properties in both 2019 tax year (2020 fiscal year) and the 2020 tax year (2021 fiscal year). For
fiscal year 2020-2021, the voter-approval tax rate is $0.997342 per$ I 00. The voter-approval rate is the
highest tax that the city may adopt without holding an election to seek voter approval of the rate.

Proposed tax rate of $0.997340 per$ I 00 valuation is the sum of two components. The maintenance and
operation (M&O) rate is $0.9212243 per $100 valuation. The interest and sinking (I&S) rate is $0.076097
per$ I 00 valuation.

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