Page 51 - Colleyville FY19 Budget

GENERAL FUND FORECAST

PROJECTED BUDGET PROJECTED PROJECTED PROJECTED PROJECTED
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
BEGINNING FUND BALANCE $8,866,760 $9,106,515 $9,172,988 $9,235,023 $9,294,814 $9,354,777
REVENUE:
Ad Valorem Taxes $14,322,575 $14,322,575 $14,895,478 $15,491,297 $16,110,949 $16,755,387
Sales Tax $3,800,000 $4,008,292 $4,088,458 $4,170,227 $4,253,632 $4,338,704
Franchise Fees $2,070,000 $2,105,000 $2,126,050 $2,147,311 $2,168,784 $2,190,471
Licenses & Permits $968,400 $975,400 $985,154 $995,006 $1,004,956 $1,015,005
Fines $920,460 $822,604 $830,830 $839,138 $847,530 $856,005
Charges for Service $886,300 $901,100 $910,111 $919,212 $928,404 $937,688
Intergovernmental $359,534 $364,483 $368,128 $371,809 $375,527 $379,282
Miscellaneous Income $200,000 $226,000 $230,520 $235,130 $239,833 $244,630
Transfers In $407,297 $385,507 $393,217 $401,081 $409,103 $417,285
TOTAL REVENUES $23,934,566 $24,110,961 $24,827,946 $25,570,212 $26,338,717 $27,134,460
Expenditures $22,194,811 $22,544,488 $23,265,912 $24,010,421 $24,778,754 $25,571,674
Contribution- CIP projects $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000
TOTAL EXPENDITURES $23,694,811 $24,044,488 $24,765,912 $25,510,421 $26,278,754 $27,071,674
NET REVENUE $239,755 $66,473 $62,034 $59,791 $59,963 $62,785
ENDING FUND BALANCE $9,106,515 $9,172,988 $9,235,023 $9,294,814 $9,354,777 $9,417,561
DAYS OF FUND BALANCE 140 139 136 133 130 127

The five-year forecast (shown above) was prepared and presented to the City Council to guide
decision making during the budget process and ensure that long-term implications are
considered. The forecast served as a caution to adding recurring expenditures unless
absolutely necessary and generated discussion about the need to reduce operating
expenditures in order to achieve the goal of adopting the effective tax rate.
Significant revenue assumptions include a 4.0% increase in revenue from assessed valuation
in future years and declining tax-supported debt. With adopting the effective tax rate in FY
2019, no new revenue was budgeted for ad valorem taxes. A 2% increase in sales tax is
projected for FY 2019-2023, as the impact of the State Highway 26 street reconstruction
project on the city’s primary business corridor has been less than anticipated. The City has
made a concerted effort to provide various business support programs during construction,
which appear to have had a positive impact. Overall, the revenue assumptions are
conservative and will be adjusted in future years should any revenue category outperform
these projections.

The forecast for future years reflects a 3.2% increase in base expenditures for cost increases
for materials or contractual services and for personnel costs. The visual presentation of these
costs in a financial forecast provides a clearer understanding of how commitments and general
cost increases can limit the ability to absorb additional items into the budget each year. This
forecast will be updated annually and will be used to guide future budget discussions as well.

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