Denison is projecting $8,338,668 of revenue to be generated from sales tax for the city’s 2020 fiscal year. And, the city is currently on track to meet its 2019 projected revenue of $5.9 million for the city, minus the portion allocated to the Denison Development Alliance.
Out of the funds generated from sales tax, $6,254,000 goes to the city’s budget and the rest goes to the Denison Development Alliance to invest in business development.
The numbers were discussed at the recent budget workshop hosted by the city.
The DDA receives .05 percent of the revenue generated by the city’s sales tax. The non-profit organization uses those funds to spur economic development through bringing new businesses to the city as well as reinvesting in local businesses.
Denison Assistant Finance Director Laurie Alsabbagh said the city is expected to discuss the property tax rate at a future meeting. But, the city is expecting to receive between 20 to 22 percent of its general fund from sales tax, and 30 percent of the general fund is expected to come from property taxes. The remaining portion of the general fund comes from franchise taxes, city services, permits, licenses, interest earned and other miscellaneous sources.
During its budget workshop, the city staff said the upcoming fiscal year’s budget is based on a variety of factors. One of the numbers indicated was the current property tax which is $0.633377 per $100 of evaluation.
Alsabbagh said the city puts 5 percent of its sales tax revenue into a general capital fund to pay for one-time purchases such as equipment.
“The things that have contributed to our increase in sales tax over the years include population growth due to new home development,” she said.
She said the city has also seen growth in the number of visitors shopping in the city. When asked about the property tax for the upcoming year, Alsabbagh said the city council will discuss that later, probably in August.