Page 34 - TownofWestlakeFY25BudgetOrd1005

TYPES OF REVENUE

General Sales & Use Tax is the largest revenue source in the General Fund. General sales & use taxes are collected
on the sale of goods and services within the Town as authorized by the State of Texas. The maximum sales tax
allowed in the State of Texas is 8.25% per dollar on all taxable goods and services. Of the 8.25%, 6.25% per dollar
is maintained by the State of Texas and a maximum of 2% is provided to municipalities. General sales tax funds
are collected by the Texas Comptroller of Public Accounts and remitted to the Town monthly.

Of the 2% of general sales tax received by the Town, 1.50% is appropriated to the General Fund with 0.50% being
used for the Property Tax Reduction Program. The Town also receives an additional 0.50% sales tax that is
recorded in the 4B Economic Development Corporation Fund.

Property Tax (Ad Valorem) is currently the third largest revenue source in the General Fund. The ad valorem tax
rate is per $100 of assessed valuation. The adopted ad valorem tax rate of $0.16788 is allocated between the
General Fund for Maintenance and Operations ( M&O) and Debt Service Interest and Sinking ( I&S) for the
municipality.

Beverage Tax is based on the 14% gross receipt tax on mixed beverages. Of the 14%, 10.7% is remitted to the Town
and the remaining 3.3% is retained by the State of Texas.

Franchise Fees are collected from utilities and telecommunications companies that use the Town’s right-of-way.
Companies have until October 1st of every year to provide municipalities notice of which fee they were planning
to pay. A flat rate is charged to both telephone operators (adjusted annually) and Tri-County Electric based on the
number of access lines and services rendered, respectively.

Permits & Fees – Other includes fees charged by the Town for gas wells, EMS revenues, review and renewal fees,
developments fees, and contractor registration fees.

Permit & Fees – Building is currently the second largest revenue source. This revenue consists of permits and fees
charged for development activities.

Fines & Forfeitures are based on the citations and warrants issued from the Municipal Court. The Keller Police
Department continues to provide police and animal control services for the Town.

Investment Income is based on interest payments, dividends, and capital gains collected.

Miscellaneous Income includes fees charged by the Town for facility rentals, sales of surplus/ scrap items,
insurance refunds, and equity return.

Transfers In includes all transfers between funds. These recognize dollars received from other funds in order to
fund specific expenditures.

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