Page 14 - WestworthVillageFY25ApprovedBudget

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GENERAL FUND

The city uses a conservative approach to budgeting its revenue and expenses, as we are unable
to predict emergencies, direct and indirect state mandates that negatively impact revenues, and
commercial businesses and local growth. The two major sources of revenue for the General

Fund are ad valorem and general sales taxes, making up 83% of city’s total revenue. The
remaining revenue is generated from franchise fees, permit fees, and court fines and fees.

• Sales tax revenue is dependent on the goods and services sold at Westworth Village
businesses and are affected by our local retailers’ successes and failures, area workforce
stability, and the overall stability in the U.S. market. The sales tax rate in Tarrant County
is 8.25%, of which two cents of every sales dollar goes to Westworth Village. One cent is
used as revenue in the general fund, ½ cent is used to fund CCPD, ¼ cent for the street
fund, and ¼ cent for economic development. We encourage everyone to support our local
Westworth Village businesses – this increases sales tax revenue which helps keep
property taxes low, and it increases local job opportunities.

• Ad Valorem tax revenue, also known as property taxes, are affected by state-imposed
limitations on increases. The city only collects a small portion of your total property tax.
The majority of the total amount collected goes to Tarrant County services and Fort Worth
ISD. This budget is based on no change to the current ad valorem tax rate of $0.475 per
$100 of appraised value. To view how Westworth Village ad valorem tax rates compare
to other areas in Tarrant and surrounding counties, visit the tarranttaxinfo.com website.

General Fund revenue is used to fund the following public services:
• Administration
• Facilities
• Police
• Municipal Court
• Fire Protection/Prevention and Emergency Medical Services
• Library Services

Some key points of change affecting revenue this year include:
• Overall, general fund revenue is projected to be slightly higher than last year due to
increased property valuations. We are projecting a decrease in revenue from franchise
fee and permit fees, mainly due to no new commercial construction plans, new state
mandates, and a continued decrease in residential construction.
• Sales tax revenue was project using a rolling 12 months of prior actual sales tax, plus
one percent. Looking historically at sales tax revenue, FY23 was seven percent over
FY22, and this FY is only two percent over FY23. Economic forecasts remain unstable.
• Maintaining the current ad valorem tax rate based on the TAD estimated net property tax
value of $524,838,685. Changes in TAD valuation practices and aggressive protest
valuation decreases, coupled with the state legislation on property tax cuts, will inevitably
impact the city.

www.cityofwestworth.com