Page 46 - Keller Budget FY21

FY 2020-21 Budget $6,488,274
% of Fund Revenue 16.5%
Compared to $ Growth % Growth
Sales and Use Tax Collections: FY 2019-20 Budget $0 0.0%
FY 2019-20 Projection $0 0.0%

The second largest General Fund revenue source is Sales Tax. The city’s 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 2020-21 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
8.1% up over this time last year.

7,000,000 6,390,217 6,488,274 6,488,274 6,488,274
5,945,584 6,155,624
6,000,000
5,000,000

4,000,000
3,000,000

2,000,000
1,000,000

‐
FY 2016‐17 FY 2017‐18 FY 2018‐19 FY 2019‐20 FY 2019‐20 FY 2020‐21
Actual Actual Actual Budget YE Proj. Proposed
Budget
Sales Tax

Other Taxes (Franchise Fees & Mixed FY 2020-21 Budget $4,353,801
Beverage Tax): % of Fund Revenue 11.0 %

Compared to $ Growth % Growth
FY 2019-20 Budget $(67,866) (1.5)%
FY 2019-20 Projection $(183,484) (4.0)%

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, including 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 2019 the Texas Legislature passed SB 1152, which relates to the
payment of certain fees to municipalities by companies that provide telecommunications, cable or video
services. Declines in franchise fee revenue may be attributed to this legislation. Mixed beverage tax is
related to mixed alcohol beverage sales in restaurants and pubs within the city and is showing a slight
decline.

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