Page 74 - CityofMansfieldFY25Budget

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 appeared to be slowing down a bit in
FY 2023-2024. Projected actuals in FY 2023-2024 indicated collections could fall just shy of the
budgeted amount, therefore, during the FY 2024-2025 budget process, sales tax was projected
optimistically, but also cautiously. Sales tax is budgeted at $20,945,448, or a 2.44% increase over the FY
2023-2024 budget. In FY 2024-2025, the City anticipates continued growth in retail spending activity
from new developments primarily along State Highway 360 in the “Entertainment District.” New
construction including a super studio and a multi-use sports venue, along with several other economic
development projects 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.

Sales & Use Tax Revenue

$25,000,000

$20,000,000

$15,000,000

$10,000,000

$5,000,000

$-
2016 2017 2018 2019 2020 2021 2022 2023 2024* 2025*

*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. In FY 2024-
2025, franchise tax revenue is projected to increase 4% 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 as more and more
households use streaming services.

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