Page 7 - Pantego FY23 Budget

▪ Debt Service Rate (I&S rate). The debt service (I&S) rate for Fiscal Year 2021-2022 is
.048671. This is the rate that was required to make our principal and interest payments on
the Certificates of Obligation issued in 2019. The rate required to meet our debt obligations
in 2022-2023 is .044122. This reflects a decrease of (9.3%).

o Property Tax Base. The Town’s estimated 2022 net taxable value projection provided by the Tarrant
st
County Appraisal District as of July 21 is $402,049,157 11.5% higher than 2021's net taxable value
projection of $360,479,889.

Sales Tax. Sales tax revenue is the largest revenue source for the General Fund, representing 38.0%
of total revenue projected for the Fiscal Year 2022-2023. Total revenue from sales tax in FY 2023 is
projected at a total of $3,009,338; $1,880,793 budgeted in the General Fund, $376,159 in the Street
Improvement Fund and $752,386 in the Pantego Economic Development Corporation (PEDC)
Operating Fund. 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 $1,880,793, a 10.6%
increase from the current year’s Budget of $1,700,400. Aggregate historical data and current economic
predictions are used to project future sales tax revenue. Therefore, the Town takes a conservative
approach to forecasting sales tax receipts. Combined, ad valorem (property) tax and sales taxes will fund
approximately 73.3% of General Fund maintenance and operations for Fiscal Year 2022-2023.

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, $609,800 or 12.3% of
total General Fund revenue projected for Fiscal Year 2022-2023. Within this category, Warrant revenue,
Court Fines and Penalties and Special Expense fees, constitute the three largest sources of revenue
Warrant revenue projected at $38,000 or 6.2%; Court Fines and Penalties projected at
$280,000 or 45.9%; and Special Expense fees at $220,000 or 36.1% of the total projected revenue from
Fines and Forfeitures.

Other Revenue. Mixed Beverage Tax ($14,220), Franchise Fees ($296,189) and Ambulance Revenues
($105,000) are a mixed bag, with Ambulance Revenue projected to have a slight increase over last year’s
budget level, and mixed beverage to have a decrease. Franchise Fees should increase due to higher
energy costs and statutory increases.

ADOPTED BUDGET FY2022-23 TOWNOFPANTEGO.COM/BUDGET PAGE 5