Page 57 - Colleyville FY21 Budget

GENERAL FUND FORECAST

GENERAL FUND PROJECTION FY 2020 - FY 2025

BUDGET YE PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED
FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
BEGINNING FUND BALANCE $9,102,499 $9,102,499 $7,735,499 $7,003,734 $7,515,593 $8,043,025 $8,600,115
REVENUE:
Ad Valorem Taxes $15,090,882 $15,191,976 $15,320,000 $15,549,400 $16,091,609 $16,652,775 $17,233,562
Sales Tax $4,008,292 $4,285,231 $4,305,000 $4,306,050 $4,412,111 $4,499,282 $4,566,230
Franchise Fees $1,942,500 $2,084,091 $2,053,000 $2,073,530 $2,094,265 $2,115,208 $2,136,360
Licenses & Permits $910,000 $959,702 $820,000 $794,345 $770,126 $747,273 $725,720
Fines $640,000 $631,592 $620,000 $626,200 $632,462 $638,787 $645,174
Charges for Service $875,600 $832,518 $799,875 $807,874 $815,952 $824,112 $832,353
Intergovernmental $364,483 $448,639 $482,327 $483,863 $495,915 $508,193 $519,965
Miscellaneous Income $348,000 $515,001 $248,000 $250,480 $252,985 $255,515 $258,070
CARES Act Funding $0 $1,395,350 $0 $0 $0 $0 $0
Transfers In $409,420 $409,882 $476,179 $480,941 $485,750 $490,608 $495,514
TOTAL REVENUES $24,589,177 $26,753,982 $25,124,381 $25,372,682 $26,051,176 $26,731,753 $27,412,949
Expenditures $22,682,805 $21,745,125 $22,976,146 $23,360,823 $24,023,744 $24,674,662 $25,282,343
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 $24,182,805 $23,245,125 $24,476,146 $24,860,823 $25,523,744 $26,174,662 $26,782,343
NET REVENUE* $406,372 $3,508,857 $648,235 $511,859 $527,432 $557,091 $630,606
ENDING FUND BALANCE $9,681,253 $7,735,499 $7,003,734 $7,515,593 $8,043,025 $8,600,115 $9,230,719
DAYS OF FUND BALANCE 146 129 104 110 115 120 126
Excess Balance move to CIP $4,875,857 $1,380,000

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 modest increase in revenue from assessed
valuation next fiscal year with 3.5% increases in following years. With adopting the effective
tax rate in FY 2021, no new revenue was budgeted for ad valorem taxes beyond that
gleaned from new development. A total sales tax revenue increase of 6% is forecasted
throughout the five years presented, with annual increases ranging from flat, 2.5%, 1.5%,
and 1%. Conversely, staff forecasts that our building permit revenue will decline steadily
over the five years as the City reaches build-out. In total, revenue is assumed to increase an
average of 2.2% throught the forecast.dddddddddddddddddddddddddddddddddddddddddd

The expenditure forecast for future years reflects costs that slightly outpace revenues on a
year-to-year basis. The largest category, personnel costs, carry the highest increase as staff
anticipates continuing the City’s merit increase program every year. Cost increases for
materials or contractual services were considered individually and using the most recent
data staff has. This forecast will be updated annually and will be used to guide future budget
discussions as well.ddddddddddddddddddddddddddddddddddddddddddddddddddddddddddd

Much of the City’s priorities in the next five years are rooted in our cash-funded capital
improvement plan. This forecast includes the strategy of holding our tax rate low, relying on
restricted revenue, and freeing up dollars for use on our multi-year CIP.

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