Page 23 - Pantego FY22 Operating Budget

▪ Debt Service Rate (I&S rate). The debt service (I&S) rate for Fiscal Year 2020-2021 is
$0.049484, this is the rate that was required to make our principal and interest payments
on the Certificates of Obligation we issued in 2019. The rate required to meet our debt
obligations in 2021-2022 is $.048671, as previously mentioned it is 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 2021 net taxable value projection provided by the Tarrant
County Appraisal District is $360,479,889 .03% lower than 2020's net taxable value projection of
$360,617,790.

Sales Tax. Sales tax revenue is the largest revenue source for the General Fund, representing 41.4%
of total revenue projected for the Fiscal Year 2021-2022. Total revenue from sales tax in FY 2022 is
projected at a total of $2,720,640; $1,700,400 budgeted in the General Fund, $340,080 in the Street
Improvement Fund and $680,160 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 $1,700,400, a 10.3%
increase from the current year’s Budget of $1,541,538. 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 74.0% of General Fund maintenance and operations for Fiscal Year 2021-2022.

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, $565,575 or 13.8% of
total General Fund revenue projected for Fiscal Year 2021-2022. Within this category, Warrant revenue,
Court Fines and Penalties and Special Expense fees, constitute the three largest sources of revenue.
Warrant revenue projected at $25,000 or 4.4%; Court Fines and Penalties projected at
$250,000 or 44.2%; and Special Expense fees at $220,000 or 38.9% of the total projected revenue from
Fines and Forfeitures.

Other Revenue. Mixed Beverage Tax ($18,000), Franchise Fees ($275,356) and Ambulance Revenues
($100,000) are a mixed bag, with Ambulance projected to rise slightly, mixed beverage should have a nice
recovery due to its low collections last year when the bars were closed due to the pandemic. Franchise
Fees have decreased in the past two years due to a change in state law that went into effect in January
of 2020.

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