Page 56 - CityofKellerFY25Budget

Sales and Use Tax Collections: FY 2024-25 Budget $9,381,656
% of Fund Revenue 20.5 %
Compared to $ Growth % Growth
FY 2023-24 Budget - - %
FY 2023-24 Projection - - %

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 2023; and a 1/4-cent going to the Keller Crime Control District, as
approved by voters in November 2021. The anticipated FY 2024-25 sales tax revenue is $18,642,985,
and approximately half, or $9,381,656, will go to the General Fund.

10,000,000 9,110,290 9,381,656 9,381,656 9,381,656
9,000,000 8,072,194
8,000,000 7,234,231

7,000,000 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 2019-20 FY 2020-21 FY 2021-22 FY 2023-24 FY 2023-24 FY 2024-25
Actual Actual Actual Actual Budget YE Proj. Adopted
Budget

Sales Tax

Other Taxes (Franchise Fees & FY 2024-25 Budget $5,071,836
Mixed Beverage Tax): % of Fund Revenue 11.1 %

Compared to $ Growth % Growth
FY 2023-24 Budget $23,840 0.47 %
FY 2023-24 Projection $(323,854) (6.0) %

Other Taxes (Franchise Fees & Mixed Beverage Taxes) are comprised of mixed beverage and
franchise taxes, with the latter accounting for approximately 96.1% 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 2024-25, an increase in 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 increase.

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