Page 11 - ArlingtonFY24AdoptedBudget

Budget In Brief

FY 2024 ADOPTED GENERAL FUND REVENUES

The City’s revenue outlook continues to show dramatic improvement, particularly for property and sales tax revenues. The
effects of the pandemic have steadily faded, and sales taxes have continued to grow beyond what could have been expected
with historical growth rates, even had the pandemic not occurred. Growth in online retail, spurred by the health crisis, has
become the norm for many consumers, with online purchasing gradually taking a larger share of traditional brick-and-mortar
shopping. Property values, typically a trailing indicator of economic stress, did not show the declines that were expected as the
City emerged from the pandemic, with the strong growth over the last two years largely driven by increases in residential values
due to the robust housing market. For FY 2024, assessed property values increased by 14.0% from last year, and sales taxes
are projected to grow by 4.5% above the current FY 2023 estimate of $89.1 million, which is $2.4 million above the budget for
the current year. The following table provides a summary of General Fund revenues by major category for FY 2022 Actuals,
FY 2023 Estimates, and FY 2024 Adopted revenues.

FY 2022 Actuals FY 2023 Estimates FY 2024 Adopted
Property Taxes $ 114,860,402 $ 125,436,636 $ 144,776,982
Sales Taxes 83,977,216 89,098,295 93,107,718
Franchise Fees 39,091,159 38,348,276 39,084,396
Service Charges 16,449,674 16,762,384 19,510,258
Fines and Forfeitures 6,876,870 5,520,460 5,589,315
Other Revenues 17,341,776 16,291,967 20,103,563

Total Revenues $ 278,597,096 $ 291,458,018 $ 322,172,233

Revenue projections determine the level of resources that can be allocated for programs and projects to support the City
Council’s goals and objectives. The revenue graph below shows the decline in sales tax revenues during FY 2020, the decline
in property tax revenues in the following year, then strong growth in both revenue categories, beginning in FY 2021 for sales
taxes and in FY 2022 for property taxes.

FY 2024 Adopted Budget and Business Plan 2 City of Arlington, Texas