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City of Mansfield Annual Budget and Service Program Fiscal Year 2025-2026 Table of Contents

Mansfield Economic Development Corporation
The FY 2025-2026 operating budget for the Mansfield Economic Development Corporation (MEDC) is $13,314,363, of which
$10,874,403 is allocated for economic development agreements and contractually obligated projects. With so many large
development projects happening in FY 2025-2026, City Council and the MEDC board members agreed to use prior year
cash to cover some of these costs. Also included in this fund is $1,676,541 for the debt payment. In 1992, the citizens
approved a ½-cent sales tax to fund economic development and encourage retail, commercial, and industrial
development within the City of Mansfield, thereby reducing the residential tax burden. The primary source of revenue
from this fund is derived from sales tax, which makes up 75% 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 single-family 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 2024-2025, roadway impact fees, water/sewer impact fees and park development fees totaled $11,261,367.27. 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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