Page 102 - N. Richland Hills General Budget

REVENUE DESCRIPTIONS, EVALUATIONS

AND PROJECTIONS

Sales Taxes are collected by the
State from the sale of goods and Sales Tax Revenues
services. The General Fund receives General Fund
the following portions of these taxes $11.0
from the State: Sales Tax – 1% of each dollar $10.0
taxed within the City, and Mixed Beverage Tax – $9.0
10.7% of State collections within the City. Mixed Millions $8.0
Beverage Taxes for 2020/21 are projected to $7.0
account for less than 1% of total General Fund
Revenues. Sales tax revenues account for $6.0
20.97% of General Fund revenues. $5.0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

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 9.55% of
$5.5 General Fund revenues. Franchise payments are
$5.0 based on different criteria. A 4% fee on gross
MILLIONS $4.0 The sanitation system collection service pays 4% of
receipts is collected for gas and electric utilities.
$4.5
$3.5
$3.0 gross receipts received from the billing of garbage
collections in the City for both commercial and
$2.5 residential accounts. The telephone franchise
$2.0 agreement guarantees the City $0.87 per
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 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 2020/21 is projected at 0.82% of total General Fund Revenues.

The taxes category which includes Property Taxes, Sales Taxes, and Franchise Taxes account for 70.59% of
General Fund revenue for 2020/21. 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 2020/21 revenue
projections.

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