Page 53 - CityofMansfieldFY23Budget

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 45% 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 almost 69,000 residents. During this time, the national economy has
moved through many economic cycles including the Great Recession and the effects of
the COVID-19 Pandemic, 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 3% 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 $0.68 cents per $100 in assessed valuation of property within the City
of Mansfield, Texas, subject to legislative action, and a 12% 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 except for
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. Department/Division heads have submitted and requested funding
that is well beyond the City’s ability to fund. 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

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