Page 67 - Keller FY20 Approved Budget

The Five-Year Operating Fund Outlook provides a financial analysis of major operating funds for the next
five fiscal years based upon the adopted budget’s ongoing expenses, the current five-year capital
improvements plan, percent growth assumptions, and anticipated future needs as discussed during the
budget process. The outlook is for forecasting purposes only and is to be used as a guide for preparing
future operating budgets. It is not committing the city to any future budget, project or other financial
considerations, nor is it a statement of the current or future financial health of the city.

Assumptions:

Unless otherwise noted, assumptions are based upon conservative growth. Revenue growth is generally
assumed to be 2 percent, and expenditures are generally assumed to be 3 percent. By having revenue
growth slower than expenditure growth, it helps to determine a “break even” point in future years. As
such, revenues being lower than expenditures in the later future years is not necessarily a concern, but
rather something to monitor in an effort to ensure future operationally balanced budgets. The assumption
tables are provided below and changes from the 2 or 3 percent increases are identified afterward.

Assumptions

Category FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25

Revenue Assumptions
Property Tax* 2.0% 2.0% 2.0% 2.0% 2.0%
Sales Tax 2.0% 2.0% 2.0% 2.0% 2.0%
Other Taxes 2.0% 2.0% 2.0% 2.0% 2.0%
Licenses and Permits -3.0% -3.0% -3.0% -3.0% -3.0%
Water Sales & Service 3.6% 3.3% 3.1% 3.1% 3.3%
Sewer Sales & Service 2.4% 1.8% 1.8% 1.9% 1.9%
Drainage Utility Fees 0.0% 0.0% 0.0% 0.0% 0.0%
Charges for Service 2.0% 2.0% 2.0% 2.0% 2.0%
Fines and Fees 2.0% 2.0% 2.0% 2.0% 2.0%
Development Fees -3.0% -3.0% -3.0% -3.0% -3.0%
Intragovernmental 2.0% 2.0% 2.0% 2.0% 2.0%
Intergovernmental 2.0% 2.0% 2.0% 2.0% 2.0%
Other Revenue 2.0% 2.0% 2.0% 2.0% 2.0%
Transfers In 2.0% 2.0% 2.0% 2.0% 2.0%

Expenditure Assumptions
Personnel services 3.0% 3.0% 3.0% 3.0% 3.0%
Operations & maintenance 3.0% 3.0% 3.0% 3.0% 3.0%
Services & other 3.0% 3.0% 3.0% 3.0% 3.0%
Wholesale water purchases 4.0% 4.0% 4.0% 4.0% 4.0%
Wastewater Services-TRA 3.0% 3.0% 3.0% 3.0% 3.0%
Debt service 0.0% 0.0% 0.0% 0.0% 0.0%
Transfers to other funds 0.0% 0.0% 0.0% 0.0% 0.0%
Capital outlay 3.0% 3.0% 3.0% 3.0% 3.0%

* Property Tax growth in total, however the percent growth in the General Fund and Debt Service Fund
will vary based upon debt requirements.

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