Page 63 - City of Colleyville FY22 Adopted Budget

GENERAL FUND FORECAST

GENERAL FUND PROJECTION FY 2021 - FY 2026
BUDGET YE PROJECTED BUDGET PROJECTED PROJECTED PROJECTED PROJECTED
FY 2021 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
BEGINNING FUND BALANCE $7,735,499 $7,735,499 $8,984,376 $9,513,921 $9,901,103 $10,294,057 $10,691,425
REVENUE:
Ad Valorem Taxes $15,320,000 $15,495,000 $15,640,000 $16,004,600 $16,483,122 $16,975,984 $17,483,615
Sales Tax $4,305,000 $4,683,000 $4,505,000 $4,616,050 $4,718,586 $4,811,886 $4,883,523
Franchise Fees $2,053,000 $2,002,558 $1,973,000 $1,992,730 $2,012,657 $2,032,784 $2,053,112
Licenses & Permits $820,000 $873,250 $867,000 $836,670 $795,637 $746,166 $722,272
Fines $620,000 $613,806 $586,000 $591,860 $597,779 $603,756 $609,794
Charges for Service $799,875 $709,775 $914,875 $924,024 $933,264 $942,597 $952,023
Intergovernmental $482,327 $522,643 $476,758 $487,632 $503,627 $520,378 $533,956
Miscellaneous Income $248,000 $185,555 $198,000 $199,980 $201,980 $204,000 $206,040
Transfers In $476,179 $476,179 $499,056 $511,927 $526,443 $541,574 $552,242
TOTAL REVENUES $25,124,381 $25,561,766 $25,659,689 $26,165,473 $26,773,093 $27,379,124 $27,996,578
Expenditures $22,981,446 $22,812,889 $23,630,144 $24,278,291 $24,880,140 $25,481,755 $26,212,693
Annual Contribution to CIP $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000
Fund Balance Transfer to CIP $0 $0
TOTAL EXPENDITURES $24,481,446 $24,312,889 $25,130,144 $25,778,291 $26,380,140 $26,981,755 $27,712,693
NET REVENUE $642,935 $1,248,877 $529,545 $387,182 $392,953 $397,369 $283,885
ENDING FUND BALANCE $8,378,433 $8,984,376 $9,513,921 $9,901,103 $10,294,057 $10,691,425 $10,975,310
DAYS OF FUND BALANCE 125 135 138 140 142 145 145

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 about 3% increases in following years. With adopting the effective tax
rate in FY 2022, no new revenue was budgeted for ad valorem taxes beyond that gleaned from
new development. A total sales tax revenue increase of 8.4% is forecasted throughout the
five years presented, with annual increases ranging from 1.5% to 2.5%. Additionally, staff has
budgeted a decrease in sales tax coming into FY22. This is reflective of tax windfall Colleyville
received from home repairs from the winter storm as well as heightened economic activity
following COVID-related closures, which will likely not continue. Staff is also forecast that our
building permit revenue to decline steadily over the five years as the City reaches build-out.
In total, revenue is assumed to increase an average of 1.8% throughout the forecast.
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 as well as a comprehensive
market survey commencing in 2022. 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.
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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