Page 80 - CityofMansfieldFY23Budget

SPECIAL REVENUE FUND ASSUMPTIONS

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. FY
2022-2023 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. Each fund has revenue that is unique to that fund and is described below.

Special Revenue Funds

MPFDC MEDC HOTEL/MOTEL
$15,000,000
$12,500,000

$10,000,000

$7,500,000

$5,000,000

$2,500,000

$0
2019* 2020 2021** Budget 2022 Budget 2023

* MPFDC revenue in 2019 includes $3.5M in bond proceeds.
**MEDC revenue spiked in 2021 due to $6.2M in land sold.

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 Stars Center, and Fieldhouse USA have
contributed to the demand for hotel space.

The budgeted revenue for FY 2022-2023 in the Hotel/Motel Tax Fund is $956,000 or an increase of 32%
over FY 2021-2022. COVID-19 had a significant impact on the Hotel/Motel Tax Fund in 2020, so
budgeted revenue in FY 2021-2022 was very conservative. However, hotel stays returned to pre-COVID
occupancy rates during FY 2021-2022, and the city is optimistic that trend will continue into 2023.

Mansfield Park Facilities Development Corporation

The operating budgeted revenue for FY 2022-2023 in the Mansfield Park Facilities Development
Corporation (MPFDC) budget is $8,522,922 for operations and an additional $3,157,847 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, development fees and rental fees. These revenue

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