Page 73 - City of Mansfield FY22 Operarting Budget

Sales Tax Revenue

Sales tax accounts for approximately 20% of all revenue in the General Fund. Sales tax revenue also
supports the Mansfield Park Facilities Development Corporation and Mansfield Economic Development
Corporation. Despite the temporary shut-down of restaurants and retail during the COVID-19 pandemic,
the city of Mansfield’s sales tax revenue remained steady in 2020 and even increased in 2021. Sales tax is
budgeted at $15,223,913 in FY 2021-2022, or a 11.1% increase over FY 2020-2021 budget estimates. In
2021-2022, the City anticipates continued growth in retail spending activity from new retail development
primarily at the Shops at Broad development and along the State Highway 360 corridor. Entertainment
venues including Hawaiian Falls Water Park, Big League Dreams Sports Park, Fieldhouse USA, Stars
Center and downtown development will continue to attract retail and commercial development in the
short and long term. Through the Mansfield Economic Development program, the City is constantly
searching for new retail, commercial and industrial developments to grow its retail base. The City
continues to attract high quality development and expects increased retail activity to continue in 2022.

Sales & Use Tax Revenue

$16,000,000

$14,000,000

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$-
2013 2014 2015 2016 2017 2018 2019 2020 Budget Budget
2021 2022

Franchise Tax Revenue

Franchise tax accounts for approximately 10% of all revenue in the General Fund. Franchise tax revenue
includes revenue from electric, gas, telephone, cable and sanitation franchise agreements. In FY 2021-
2022, franchise tax revenue is projected to increase 6.7% due primarily to sanitation. Historically,
franchise fees have increased as new residential, commercial and retail development increase. The actual
number of users and the weather conditions throughout the year determine the electric and gas franchise
fee revenue. The revenue may increase or decrease depending on the volume usage of kilowatt-hours per
household, hot or dry conditions during the year and the number of new residential and commercial users.

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