Page 79 - CityofMansfieldFY25Budget

Mansfield Economic Development Corporation

The FY 2024-2025 operating budget for the Mansfield Economic Development Corporation (MEDC) is
$17,782,569, of which $15,529,903 is allocated for economic development agreements and contractually
obligated projects. With so many large development projects happening in FY 2024-2025, City Council
and the MEDC board members agreed to using prior year cash to cover some of these costs. Also
included in this fund is $1,676,730 for the debt payment. In 1992, the citizens voted a ½ cent sales tax to
provide economic development funds to provide a funding mechanism to encourage retail, commercial
and industrial development within the City of Mansfield to reduce the residential tax burden. The primary
source of revenue from this fund is derived from sales tax, which makes up 77% of budgeted revenue.

CAPITAL PROJECTS FUND REVENUE ASSUMPTIONS

The Capital Projects Fund includes the Street Construction Fund, Utility Construction Fund, Drainage
Construction Fund, Building Construction Fund, MPFDC Construction Fund, MEDC Construction Fund
and the Equipment Replacement Fund. The revenue sources for these funds include bond proceeds,
impact fees, contributions, transfers, interest earnings, grants and other uncategorized revenue. While
bond proceeds continue to be the major source of revenue for the Capital Projects Fund, impact fees have
also become a major revenue source.

Impact fees include park development fees, roadway impact fees and water/sewer impact fees. Roadway
impact fees are charged to the builder or developer on a per lot basis for residential homes at a rate of
$4,900 per lot; commercial and special use impact fees are charged on a per vehicle-mile basis. Water &
Sewer impact fees are charged based on the size of the water and sewer line connection to the water and
sewer system.

In FY 2023-2024, roadway impact fees, water/sewer impact fees and park development fees totaled
$9,428,085. Impact fee revenue is projected to continue in future years, but the City has been conservative
in its estimates for impact fee contributions. Impact fees are utilized to reduce the amount of bond
issuance in the Capital Improvement funds.

Contributions from developers and the Mansfield Economic Development Corporation Fund provide
additional revenue in these funds. Contributions are not budgeted on an annual basis in the Capital
Projects Fund since these revenues cannot be projected with any degree of certainty.

Transfers, interest and expense recovery revenues make up the remaining revenue sources of the Capital
Project Fund. Generally, transfers from the General Fund and/or bond proceeds provide the funding
source for the Equipment Replacement Fund unless the City opts to finance the purchase of equipment.

The City Council and Management team have made a conscious effort to develop alternative revenue
sources through the utilization of impact fees and developer contributions.

Further details can be found in the Capital Project Funds section of the budget document.

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