Page 23 - ANALYSIS.XLS

Property Tax Rates Per $100 in Valuation

100%
80%
60%
40%
20%
0%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
I & S Rate $- $- $- $0.045 $0.045 $0.045 $0.036 $0.039 $0.056 $0.053
*
M & O Rate $0.43 $0.43 $0.43 $0.43 $0.43 $0.43 $0.44 $0.44 $0.41 $0.61*
FISCAL YEARS ENDING
* Required new tax rate calculation
without adjusted for Sales Tax.
Actual tax rate $0.4956

Sales Tax
Accounting for 40% of total revenues and transfers-in of the General Fund, sales tax is the most significant. Due to
its significance and its relative instability, in relation to property tax, a conservative approach is taken in forecasting
its performance. Over the four years, from 2012 and ending 2015, actual sales tax has shown year-over-year
increases within the average range of 3%. In FY 2015-16, sales tax dropped $1.9M or 4% from $47M to $45M
followed by a more moderate decrease of $1.5M or 3% to $43.8M in FY 2017. This decrease generally reflects,
but in many cases to a lesser extent, what was being experienced by other cities throughout the United States and
the state of Texas as the various economies react to the recession. In FY 2018, sales tax increased by $2.75M or
6% from FY 2017. In FY 2019, sales tax increased by $5.4M or 12% from FY 2018. Due to the Covid-19
pandemic, the City estimated a decrease of $5.7M or 12% for FY 2020. The City is projecting sales tax at $46M
with no increase from last year’s estimates. The City will be taking a conservative approach this fiscal year due to
the uncertainty of the economic situation.

Sales Tax Receipts - 1-1/2%
$ Millions
60

Millions 30

0
2012 2013 2014 2015 2016 2017 2018 2019 2020 Est. 2021
Sales Tax $43.806 $45.918 $46.367 $47.204 $45.337 $43.822 $46.572 $51.963 $46.282 $46.282
Fiscal Year Ending

Executive Summary Page xi