Strengthened Resilience

Sales Tax

Did you know that sales tax revenue is the single largest revenue stream supporting the consistent delivery of high quality services to residents?  

Even more impressivSales Taxe - visitors and commercial businesses contribute almost 75% of that revenue!  Sales tax is also the most volatile revenue stream, as it can change drastically based on regional economic conditions.

Last year, falling sales tax revenue and a downturn in the regional economy led us to tighten our belt and identify $1.66 million in recurring budget reductions.  Despite these challenges, the City was able to maintain our consistent delivery of high quality services to YOU – our residents – while still maintaining the second lowest tax rate in the State of Texas among cities our size.

Prior Year Budget Reductions

Out of $1.66 million in FY18 budget reductions, the adopted budget replaced $236,000 in FY19 with recurring funding, and $50,000 with one time funding. Remaining items were not funded in the FY19 budget.

Rehabilitation Funding

As a result of prior years' declines in sales tax revenue, a main goal for the FY19 budget was to continue to grow recurring funds earmarked for infrastructure rehabilitation.  By shifting this type of work back into the general operating budget, the City is able to fund it from more diverse and reliable revenue streams. The five year plan gets this rehabilitation back on target through annual growth in recurring funding, supplemented by one-time funding when it is available. The FY19 budget supplements rehabilitation funding with $600,000 from one-time funding sources.

The chart shows the plan to increase rehabilitation funding from $1.7 million in FY19 to $3 million in FY23.

Infrastructure Rehabilitation Plan

Funding Item Recurring
Funds FY19
One-Time 
Funds FY19
Fort Bend Transit
$  70,000
-
Street Sweeping
85,000
-
ROW Mulch/ Fertilizer
69,000
-
Suite Catering
12,000
-
Special Events
-
50,000
Total FY19 Funding
$ 236,000
$  50,000

We Are Financially Strong.mov