Page 52 - CityofMansfieldFY24Budget

This 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 steadily as the
population is expected to increase 63% 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 over 74,000 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 continue at a pace
of 4%-8% growth in 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 2% to
7% 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 costs 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
wastewater. Current spending patterns suggest that minimum costs could increase 3% to
5% year over year, but these spending patterns are extremely subject to economic
variables that could easily adjust the trajectory of the City’s presently projected spending
pattern. Detailed projections by revenue source and spending purposes are provided in
the tables that follow.

Key Rates

Tax Rate projections over the next ten years predict the tax rate to remain constant or at
its current rate of $0.659293 cents per $100 in assessed valuation of property within the
City of Mansfield, Texas, subject to legislative action, and a 14% 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 provide. To maintain existing services, the City
has carefully balanced future spending expectations with the uncertainty in the national

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