Page 8 - Pantego Adopted Budget FY21

▪ Debt Service Rate (I&S rate). The debt service (I&S) rate for Fiscal Year 2019-2020 is
$0.049906 this is the rate that was required to make our principal and interest payments
on the certificates of deposit we issued last year. The rate required to meet our debt
obligations in 2020-2021 is .049484 based upon finalized property values, as previously
mentioned it will be recommended to adjust the M&O rate to ensure the total rate charged
to our citizens will not have to increase.

o Property Tax Base. The Town’s estimated 2020 net taxable value projection from this year’s
certification is $360,617,790 an estimated increase of $7,356,823 or approximately 2.1% from the
Certified number in 2019. The average net taxable value of a home in the Town of Pantego is
estimated at $174,771 in 2020.

Sales Tax. Sales tax revenue is the largest revenue source for the General Fund, representing 37.4%
of total revenue projected for the Fiscal Year 2020-2021. Total revenue from sales tax in FY 2021 is
projected at a total of $2,466,461; $1,541,538 budgeted in the General Fund, $308,308 in the Street
Improvement Fund and $616,615 in the Pantego Economic Development Corporation (PEDC)
Operating and Debt Service Funds. The 2 (two) cent or sales tax revenue the Town collects from the
State is allocated as follows:
General Fund 62.5% or 1.25 ¢
Street Improvement Fund 12.5% or .25 ¢
PEDC 25.0% or .50 ¢

Revenue from the Town’s 62.5% or 1.25 ¢ General Fund sales tax allocation equals $1,541,538, an 8.6%
decrease from the current year’s Budget of $1,686,703. Aggregate historical data and current economic
predictions are used to project future sales tax revenue. Therefore, the Town takes a very conservative
approach to forecasting sales tax receipts. Combined, ad valorem (property) tax and sales taxes will fund
approximately 73.7% of General Fund maintenance and operations for Fiscal Year 2020-2021.

Fines and Forfeitures. Fines and forfeitures include revenue from municipal court fines, warrant charges
and special expense fees. Fines and their related fees are assessed by the violation of local ordinances
and state laws. For every dollar assessed, a percentage is recognized as fines or fees for the municipality
and fees assessed by the State. The Town remits to the State of Texas the fees collected that the State
assesses for itself.

This category represents the third largest source of revenue for the General Fund, $545,100 or 13.9% of
total General Fund revenue projected for Fiscal Year 2020-2021. Within this category, Warrant revenue,
Court Fines and Penalties and Special Expense fees, constitute the three largest sources of revenue.
Warrant revenue projected at $45,000 or 8.3%; Court Fines and Penalties projected at
$250,000 or 45.9%; and Special Expense fees at $200,000 or 36.7% of the total projected revenue from
Fines and Forfeitures.

Other Revenue. Mixed Beverage Tax ($8,000), Franchise Fees ($282,996) and Ambulance Revenues
($109,000) are a mixed bag, with Ambulance projected to rise lightly but mixed
beverage to decline due to the bars currently being closed; while as mentioned
previously Franchise Fees are expected to fall due to new State Law.