Page 53 - FY2020Colleyville

GENERAL FUND FORECAST

BUDGET YE PROJECTED BUDGET PROJECTED PROJECTED PROJECTED PROJECTED
FY 2019 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
BEGINNING FUND BALANCE $9,106,515 $8,991,999 $9,605,174 $10,011,546 $10,368,172 $10,674,300 $10,929,230
REVENUE:
Ad Valorem Taxes $14,322,575 $14,685,000 $15,090,882 $15,619,063 $16,165,730 $16,731,531 $17,317,134
Sales Tax $4,008,292 $4,008,292 $4,008,292 $4,048,375 $4,088,859 $4,129,747 $4,171,045
Franchise Fees $2,105,000 $2,267,407 $1,942,500 $1,961,925 $1,981,544 $2,001,360 $2,021,373
Licenses & Permits $975,400 $1,029,450 $910,000 $919,100 $928,291 $937,574 $946,950
Fines $822,604 $667,524 $640,000 $646,400 $652,864 $659,393 $665,987
Charges for Service $901,100 $852,000 $875,600 $884,356 $893,200 $902,132 $911,153
Intergovernmental $364,483 $364,483 $364,483 $368,128 $371,809 $375,527 $379,282
Miscellaneous Income $226,000 $398,000 $348,000 $354,960 $362,059 $369,300 $376,686
Transfers In $385,507 $385,507 $409,420 $417,608 $425,961 $434,480 $443,169
TOTAL REVENUES $24,110,961 $24,657,663 $24,589,177 $25,219,915 $25,870,316 $26,541,044 $27,232,782
Expenditures $22,544,488 $22,544,488 $22,682,805 $23,363,289 $24,064,188 $24,786,113 $25,529,697
Contribution- CIP projects $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000
TOTAL EXPENDITURES $24,044,488 $24,044,488 $24,182,805 $24,863,289 $25,564,188 $26,286,113 $27,029,697
NET REVENUE $66,473 $613,175 $406,372 $356,626 $306,129 $254,931 $203,085
ENDING FUND BALANCE $9,172,988 $9,605,174 $10,011,546 $10,368,172 $10,674,300 $10,929,230 $11,132,313
DAYS OF FUND BALANCE 139 146 151 152 152 152 150

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 3.5% increase in revenue from assessed valuation
in future years and declining tax-supported debt. With adopting the effective tax rate in FY
2020, no new revenue was budgeted for ad valorem taxes. A 1% increase in sales tax is
projected for FY 2020-2024, based on the anticipated impact of the State Highway 26 street
reconstruction project on the city’s primary business corridor. 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% 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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