Page 70 - Microsoft Word - FY 2021 tax info sheet

FY 2021‐22 Five‐Year Operating Fund Outlook

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 2022‐23 FY 2023‐24 FY 2024‐25 FY 2025‐26 FY 2026‐27

Revenue Assumptions
Property Tax* 2.0% 2.0% 2.0% 2.0% 2.0%
Sales Tax 3.0% 3.0% 3.0% 3.0% 3.0%
Other Taxes 2.0% 2.0% 2.0% 2.0% 2.0%
Licenses and Permits ‐2.0% ‐2.0% ‐2.0% ‐2.0% ‐2.0%
Water Sales & Service 1.9% 1.9% 1.9% 2.0% 2.0%
Sewer Sales & Service 1.3% 1.3% 1.3% 1.3% 1.4%
Drainage Utility Fees 0.0% 0.0% 0.0% 0.0% 0.0%
Charges for Service 3.0% 3.0% 3.0% 3.0% 3.0%
Fines and Fees 0.0% 0.0% 0.0% 0.0% 0.0%
Development Fees ‐2.0% ‐2.0% ‐2.0% ‐2.0% ‐2.0%
Intragovernmental 3.0% 3.0% 3.0% 3.0% 3.0%
Intergovernmental 3.0% 3.0% 3.0% 3.0% 3.0%
Other Revenue 3.0% 3.0% 3.0% 3.0% 3.0%
Transfers In 0.0% 0.0% 0.0% 2.0% 2.0%

Expenditure Assumptions
Personnel services 2.5% 2.5% 2.5% 2.5% 2.5%
Operations & maintenance 2.0% 2.0% 2.0% 2.0% 2.0%
Services & other 2.0% 2.0% 2.0% 2.0% 2.0%
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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