Page 76 - CityofMansfieldFY23Budget

Sales Tax Revenue

Sales tax accounts for approximately 21% 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. Collections
in 2022 far exceeded the budgeted amount for FY 2021-2022. During the FY 2022-2023 budget process,
sales tax was reevaluated to account for the growth more accurately. Sales tax is budgeted at $18,285,023
in FY 2022-2023, or a 20.1% increase over FY 2021-2022 budget estimates. In 2022-2023, 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 historic
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 2023.

Sales & Use Tax Revenue

$20,000,000
$18,000,000

$16,000,000
$14,000,000

$12,000,000
$10,000,000
$8,000,000

$6,000,000
$4,000,000

$2,000,000
$-
2014 2015 2016 2017 2018 2019 2020 2021 Budget2022 Budget2023

Franchise Tax Revenue

Franchise tax accounts for approximately 9% of all revenue in the General Fund. Franchise tax revenue
includes revenue from electric, gas, telephone, cable and sanitation franchise agreements. In FY 2022-
2023, franchise tax revenue is projected to increase 5.15% 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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