Page 33 - City of Bedford FY22 Budget

General Fund Forecast

P R O C E DU R E

As part of t he bu dge t proce ss, st aff pre se nt s t he C it y C ou ncil wit h a long-range fore cast mode l t o prov ide a
be t t e r u nde rst anding of t he impact of bu dge t de cisions in t he u pcoming { scal y e ar. The fore cast mode l se rv e s
as a t ool for sou nd de cisions, accu rat e proje ct ions and { nancial manage me nt of t he C it y ’s Ge ne ral Fu nd. The
mode l calcu lat e s, pre dict s, and offe rs a v isu al snapshot of t he C it y ’s Ge ne ral Fu nd { nancial posit ion for t he ne x t
{ v e y e ars. It is dy namic and st aff can adju st as ne w re v e nu e and e x pe nse dat a be come s av ailable . More
import ant ly, t he mode l is u se d t o e v alu at e t he fu t u re impact of hy pot he t ical change s t hat can cau se short or
long-t e rm proble ms. The mode l e nable s informe d de cision mak ing by showing bot h t he short -t e rm and long-
t e rm affordabilit y of t hose de cisions.
ME THO DO L O GY

The mode l highlight s hist orical re v e nu e and e x pe ndit u re t re nds from t he pre v iou s { v e y e ars t o form pre dict iv e
be hav ior of ce rt ain bu dge t ary line -it e ms. The re fore , base d on ce rt ain t re nds, t he mode l inclu de s many
assu mpt ions.

The Ge ne ral Fu nd’s major re v e nu e sou rce s inclu de prope rt y t ax e s and sale s t ax e s. E ach of t he se re v e nu e
sou rce s are driv e n by t he growt h of t he local e conomy and t he C it y ’s popu lat ion. This is also t ru e of a nu mbe r
of t he C it y ’s ot he r re v e nu e sou rce s inclu ding fe e s and charge s for se rv ice , franchise t ax e s, and lice nse s and
pe rmit s. The re v e nu e proje ct ions pre se nt e d in t he fore cast u se line it e m su mmary of C it y re v e nu e . The se
proje ct ions are base d on an analy sis of at le ast 5 y e ars of hist orical t re nds for e ach re v e nu e line it e m, as we ll as
t he e ffe ct s of cu rre nt e conomic condit ions and proje ct e d e conomic act iv it y.

Prope rt y t ax e s, t he C it y ’s large st re v e nu e sou rce , are base d on t he t ax rat e adopt e d annu ally by C it y C ou ncil as
applie d t o t he ce rt i{ e d prope rt y rolls pre pare d by t he Tarrant C ou nt y Appraisal Dist rict . The rat e is compose d of
t wo part s; t he { rst t o su pport ge ne ral C it y ope rat ions t hrou gh t he Ge ne ral Fu nd and t he se cond part t o pay
principal and int e re st on t ax -su pport e d bonds t hrou gh t he De bt Se rv ice Fu nd.

Prope rt y v alu e s are proje ct e d t o incre ase an av e rage of 0 .75% from FY 20 23 – FY 20 27. This will driv e t he act u al
prope rt y t ax rat e s t hat will be propose d in t he ne x t { v e y e ars.

City of Bedford, TX | Budget Book 2022 Page 33