Page 58 - FY 24 Budget Forecast at Adoption.xlsx

Sales and Use Tax Collections: FY 2023-24 Budget $9,381,656
% of Fund Revenue 21.3 %
Compared to $ Growth % Growth
FY 2022-23 Budget $945,556 11.2%
FY 2022-23 Projection $205,242 2.2%

The second largest General Fund revenue source is Sales Tax. The city’s total sales tax rate is 2 cents
per $1 with 1 cent going to the General Fund; a 1/2-cent going to the Keller Development Corporation for
parks capital projects, as approved by voters in January 1992; a 1/4-cent going to street maintenance,
as approved by voters in November 2019; and a 1/4-cent going to the Keller Crime Control District, as
approved by voters in November 2021. Anticipated FY 2023-24 sales tax revenue is $18,642,985, and
of this amount approximately half, or $9,381,656, will go to the General Fund. Sales tax is approximately
5.2% up from this time last year.

10,000,000 9,110,290 9,176,414 9,381,656
9,000,000 8,072,194 8,436,100
8,000,000
7,000,000 6,155,624 6,390,217
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
-
FY 2018-19 FY 2018-19 FY 2020-21 FY 2021-22 FY 2022-23 FY 2022-23 FY 2023-24
Actual Actual Actual Actual Budget YE Proj. Adopted
Budget

Sales Tax

Other Taxes (Franchise Fees & FY 2023-24 Budget $5,047,996
Mixed Beverage Tax): % of Fund Revenue 11.6 %

Compared to $ Growth % Growth
FY 2022-23 Budget $575,787 12.9 %
FY 2022-23 Projection $(153,268) (2.9) %

Other Taxes (Franchise Fees & Mixed Beverage Taxes) are comprised of mixed beverage and
franchise taxes, with the latter accounting for approximately 96.4% of these revenues. Franchise taxes
are fees charged for the continued use of public property (rights-of-way) and are collected from utility
companies, including the City of Keller's Water & Wastewater Utility, and Drainage Utility funds. Revenues
are based on trends that reflect decreasing cable franchise fees. In 2019 the Texas Legislature passed
SB 1152, which relates to the payment of certain fees to municipalities by companies that provide
telecommunications, cable or video services. Declines in franchise fee revenue may be attributed to this
legislation. For FY 2023-24, an increase in gas and electric franchise is anticipated. Mixed beverage tax
is related to mixed alcohol beverage sales in restaurants and pubs within the city and is showing a slight
decline.

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