Page 77 - City of Mansfield FY22 Operarting Budget

SPECIAL REVENUE FUND ASSUMPTIONS

FY 2021-2022 revenues are based on a combination of factors including analysis of historical revenue,
anticipated changes in the local economic environment and projected growth and development throughout
the City. The Special Revenue Fund includes the Hotel/Motel Tax Fund, Mansfield Park Facilities
Development Corporation (MPFDC) Fund and the Mansfield Economic Development Corporation
(MEDC) Fund. Each fund has revenue that is unique to that fund and is described in the following
illustration.

Special Revenue Funds

MPFDC MEDC HOTEL/MOTEL
$10,000,000
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
2017 2018 2019* 2020 Budget 2021 Budget 2022
* MPFDC revenue in 2019 includes $3.5M in bond proceeds.

Hotel/Motel Tax Fund

Revenue from this fund is derived from a hotel/motel tax of 7% on hotel and motel occupied rooms
within the City of Mansfield. In FY 2012-2013, the City expanded the tourism program to develop a city-
wide marketing strategy to attract special events, conferences and sporting events that promote the use of
hotels within the city. Nearby Arlington’s Dallas Cowboys AT&T Stadium and local venues including
Big League Dreams Sports Park, Hawaiian Falls Water Park, the Dallas Stars Center, and Fieldhouse
USA have contributed to the demand for hotel space.

The budgeted revenue for FY 2021-2022 in the Hotel/Motel Tax Fund is $725,000 or an increase of 22%
over FY 2020-2021. COVID-19 had a significant impact on the Hotel/Motel Tax Fund in 2020, and
therefore, revenue projections were revised to account for a decrease in travel and hotel stays. However,
the City is optimistic that hotel/motel stays will return to pre-COVID occupancy rates in FY 2021-2022.

Mansfield Park Facilities Development Corporation

The operating budgeted revenue for FY 2021-2022 in the Mansfield Park Facilities Development
Corporation (MPFDC) budget is $6,852,936 for operations and an additional $3,157,861 in sales tax
revenue to pay for debt service. In 1992, the citizens voted a ½ cent sales tax to provide parks, cultural
facilities and equipment to enhance and expand the City of Mansfield’s park system. The primary sources
of revenue from this fund are derived from sales tax, grants, impact fees and rental fees. These revenue

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