Page 50 - City of Mansfield FY22 Operarting Budget

The Strategic Plan includes revenues and expenditures for a period of ten years. The
objective of the forecast is simply to measure or guide the allowance of costs. Over the
ten-year forecast, revenues and expenditures are projected to increase considerably as the
population is expected to increase almost 37% over the next decade. The City’s economy
is influenced some by the national economy but is more influenced by its population
growth and its economic development programs. Since the 1980 census, the City’s
population has increased by more than 67,000 residents. During this time, the national
economy has moved through many economic cycles including the Great Recession, yet
the City’s population has continued to grow because of its location in North Texas.
Growth over the next decade is expected to be more of a modest pace of growth in the
population and the number of new businesses moving into the community.

In forecasting revenues and expenses for the City’s General Fund and Water, Sewer Fund
into the future, Management projects revenue trends to average in a range of 4% to 6%
over the next ten years with expenses being controlled or managed to approximately 3%
to 5% over the next ten years. The City could experience higher cost of operations
because of the effects of federal monetary policy, rising interest rates, energy prices,
commodity prices, labor markets, costs of raw water, and the costs of treating sewer
water. Current spending patterns suggest that minimum costs could increase 3-5% year
over year, but these spending patterns are extremely subject to economic variables that
could easily adjust the trajectory of presently projected spending pattern. Detailed
projections by revenue source and spending purposes are provided in following tables.

Key Rates

Tax Rate projections over the next ten years predict the tax rate to remain constant or at
its current rate of $0.69 cents per $100 in assessed valuation of property within the City
of Mansfield, Texas, subject to legislative action and a 10% Homestead Exemption with
the potential for additional Homestead Exemption and tax rate reduction in future years.
Water and Sewer rates are expected to remain constant over the next ten years with the
exception of potential, modest rate increases year over year. Modest increases are
expected to pay for the significant cost increases being passed along to the City for the
cost of delivering raw water to the City’s water treatment facilities and the cost of
treating the City’s sewer water. The City is closely monitoring these rate increases that
are being charged by Tarrant Regional Water District and Trinity River Authority to the
City for their capital improvement programs. These rates may or may not increase
depending upon the costs being passed along to the City’s customers.

Current Economy, Future Economy

The City has increased service expectations as it has adjusted service programs to meet
the current demand for services. Department heads have submitted and requested funding
that is well beyond the City’s ability to fund the requesting funding. In an effort to
maintain existing services, the City has significantly reduced future spending
expectations because of the uncertainty in the national and global economies. All the
while, the City is seeing continued growth in its residential, commercial, and industrial

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