Page 78 - City of Mansfield FY22 Operarting Budget

sources will continue to increase as new retail and commercial developments continue throughout the
City. Big League Dreams, Hawaiian Falls Water Park, the Mansfield National Golf Club, Fieldhouse
USA and the Stars Center ice rink will generate additional sales tax revenue from visitors utilizing these
recreational venues.

Mansfield Economic Development Corporation

The FY 2021-2022 operating budget for the Mansfield Economic Development Corporation (MEDC) is
$1,202,867. Also included in this fund is $2,660,857 for debt service and $3,643,817 for contractually
obligated projects. In 1992, the citizens voted a ½ cent sales tax to provide economic development funds
to provide a funding mechanism to encourage retail, commercial and industrial development within the
City of Mansfield to reduce the residential tax burden. The primary source of revenue from this fund is
derived from sales tax, which makes up 99.8% of budgeted revenue.

CAPITAL PROJECTS FUND REVENUE ASSUMPTIONS

The Capital Projects Fund includes the Street Construction Fund, Utility Construction Fund, Building
Construction Fund, MPFDC Construction Fund, MEDC Construction Fund and the Equipment
Replacement Fund. The revenue sources for these funds include bond proceeds, impact fees,
contributions, transfers, interest earnings, grants and other uncategorized revenue. While bond proceeds
continue to be the major source of revenue for the Capital Projects Fund, impact fees have also become a
major revenue source.

Impact fees include roadway impact fees and water/sewer impact fees. Roadway impact fees are charged
to the builder or developer on a per lot basis for residential homes at a rate of $1,000 per lot; commercial
and special use impact fees are charged on a per square footage basis. Water & Sewer impact fees are
charged based on the size of the water and sewer line connection to the water and sewer system. Average
impact fees per single family unit total $9,905.

In FY 2020-2021, roadway impact fees, water/sewer impact fees and park development fees totaled over
$11,000,000. Impact fee revenue is projected to continue in future years, but the City has been
conservative in its estimates for impact fee contributions. Impact fees are utilized to reduce the amount of
bond issuance in the Street Construction and Utility Construction funds.

Contributions from developers and the Mansfield Economic Development Corporation Fund provide
additional revenue in these funds. Contributions are not budgeted on an annual basis in the Capital
Projects Fund since these revenues cannot be projected with any degree of certainty.

Transfers, interest and expense recovery revenues make up the remaining revenue sources of the Capital
Project Fund. Generally, transfers from the General Fund and/or bond proceeds provide the funding
source for the Equipment Replacement Fund unless the City opts to finance the purchase of equipment.

The City Council and Management team have made a conscious effort to develop alternative revenue
sources by the utilization of impact fees and developer contributions.

Further detail can be found in the Capital Project Funds section of the budget document.

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