Page 17 - 2019 Budget Detail.xlsx

CITY OF RICHLAND HILLS, TEXAS
FISCAL YEAR 2018-2019

Revenue Projections

Each year when staff begins the budgeting process, one of the first things we do is try to
project the revenue sources. We do this first so that we have an idea of how much
money we are dealing with as we try to prioritize all of the needs that we have. Listed
below is a detailed analysis of the revenue sources for the General Fund. We have
grouped the revenues below into four different sections for analysis and projection
purposes. They are:

1. Rolling 12 month analysis and projection
2. Budget Year analysis and projection
3. Other minor revenues
4. Fund Transfers

These four categories capture all of the revenue sources for the General Fund and are
discussed in much greater detail below.

Section 1: Rolling 12 Month Analysis

If you are already familiar with what a rolling 12 month history is and how it works, you
can skip ahead to the next paragraph. However, if you are not, here is a brief
explanation. A rolling 12 month average basically is always looking at the total revenue
from a 12 month (or one year) period. However, as you will see in the charts below, the
12 months you are looking at changes constantly. For each month on the chart you are
looking at the total revenue from that month, as well as the 11 months previous to it.
So, to be clear, while the charts in this section have a month associated with it, the
amount shown with that month are reflective of the entire previous year.

The reason that a rolling 12 month average is valuable is it is an excellent tool for
looking at trends. It is very reliable in capturing not only a moment in time, but also in
projecting numbers into the future.

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