Page 75 - CityofMansfieldFY24Budget

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 and 2023 far exceeded the budgeted amounts, although it appears to be slowing down a bit.
During the FY 2023-2024 budget process, sales tax was projected optimistically, but also cautiously.
Sales tax is budgeted at $20,447,144, or an 11.8% increase over FY 2022-2023 budget estimates. In FY
2023-2024, 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 2024.

Sales & Use Tax Revenue

$25,000,000

$20,000,000

$15,000,000

$10,000,000

$5,000,000

$-
2015 2016 2017 2018 2019 2020 2021 2022 2023* 2024*

*Budgeted

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, as well as gas
royalty income. In FY 2023-2024, franchise tax revenue is projected to increase 4.94% due primarily to
sanitation and electric. Historically, franchise fees have increased as new residential, commercial and
retail developments 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. Cable and telephone have seen a slight decrease.

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