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

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 2025-2026, franchise tax revenue is
projected to increase 8.31% due primarily to sanitation and electricity. 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 of kilowatt-hours used 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.

Licenses and Permits
In FY 2025-2026, budgeted permit activity accounts for approximately 3% of the General Fund budget. The license and
permit revenues are derived primarily from residential and commercial building activity, which have been affected by
rising interest rates. Licenses and permits were budgeted at a 5.5% increase over the FY 2024-2025 budget.

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