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BUDGET OVERVIEW

Retail activity is up, and sales tax revenue for FY 2018/2019 is projected to increase by
$203,841 or 2.00%. The city is experiencing continued development along the Northeast Loop
820 corridor that will help drive sales tax and additional business to the area. Development
also continues to abound in the northern sector of the City, with the opening of many new
restaurants and shops. In addition, with City Hall open for business and the train stations
open in early 2019, there is an expectation that further development will follow. The
Economic Development Department continues to market and attract the attention of large
corporate businesses, retailers and restaurants.

Franchise Fees is another large revenue source for the city. These revenues are projected to
increase $38,068 over the FY 2017/2018 Adopted Budget. Utility franchise fee revenue is up
$77,158 due to water and sewer rate increases; however, this is offset by a decrease in
$39,090 in payments from other providers. There continues to be a decline in cable franchise
fees as more customers shift to internet streaming services.

The revenues for Fines and Forfeitures are projected to decrease by $38,140 or 1.75%
from the FY 2017/2018 Adopted Budget. This is directly related to the trend in the number
of citations issued. Municipal Court Fines make up the entirety of this decrease. Fines and
Forfeitures are estimated to be over the projected FY 2017/2018 Revised Budget by
$135,307.

While FY 2018/2019 revenue from Licenses and Permits is in line with the FY 2017/2018
Adopted Budget a rate increase in development related licenses and permits is planned. In
FY 2018/2019 the City will be proposing a rate increase of 6% for license and permit fees
related to development to help the City maintain competitive rates with neighboring cities. Most
other revenues in Licenses and Permits are relatively level when compared to the FY
2017/2018 Adopted Budget.

The revenue projections for Charges for Service include facility rental fees, ambulance fees,
athletic league revenue, special event revenues and other miscellaneous charges. Revenue
accumulated from Charges for Service is expected to increase by $56,512 or 2.35%. While
this is not a large increase, there are some notable changes. Ambulance fees are projected to
increase $21,500 over the adopted budget due to projected growth in call volumes. Garbage
billing is expected to increase in the amount of $44,217 in part due to a rate increase that took
effect February 2018.

An increase is projected in FY 2018/2019 Intergovernmental revenue. $67,506 is due to
consolidation reimbursements. Miscellaneous revenue is also expected to increase by
$139,798; this is due to an increase in expected interest income in the amount of $91,418 and
an increase of $578,631 in other income, of which $537,302 is from a transfer from the Fleet
fund for debt service. This is offset by a planned decrease in designated funds for City Hall
project debt in the amount of $500,000. There are no additional significant changes in the FY
2018/2019 Adopted Budget when compared to the FY 2017/2018 Adopted Budget.

Expenditures Overview

Total General Fund expenditures for FY 2018/2019 are forecasted to be $48,363,805 an
increase of $1,757,193 or 3.77% compared to the FY 2017/2018 Adopted Budget. This
year’s Adopted budget includes service enhancements in addition to increases for the
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