Adopted Budget Book FY 23-24 Final with TOC links - Flipbook - Page 106
Budget-In-Brief → buDgeT oVerView
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To make accurate predictions, several key assumptions are typically used. These assumptions
help city management estimate revenue streams and plan for effective budget management.
Below is a breakdown of assumptions used for forecasting following revenue sources:
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Ad Valorem Taxes:
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Property Values: Forecasts rely on assessments of property values within the city.
Assumptions are made about how property values will change, considering factors like
economic trends, real estate market conditions, and new construction.
Tax Rate Stability: Predictions assume that property tax rates will remain relatively
stable. Significant changes in tax rates could impact revenue projections.
A conservative revenue growth rate of 2% was integrated, to ensure the fiscal stability
and sustainability of the city’s finances. This growth rate takes into account the potential
economic conditions and various factors influencing revenue generation.
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Utility Taxes:
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Utility Usage: Projections are based on assumptions about the level of utility usage by
residents and businesses. These assumptions consider historical consumption patterns,
population growth, and economic conditions.
Rate Structures: Changes in utility rate structures, including increases or decreases in
rates, are factored into revenue forecasts.
A conservative revenue growth rate of 2% was incorporated, to ensure the fiscal stability
and sustainability of the city’s finances. This growth rate takes into account the potential
economic conditions and various factors influencing revenue generation.
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One-Half-Cent Sales Taxes:
♦
♦
Economic Trends: Forecasts for sales tax revenue are closely tied to the overall
economic health of the city. Assumptions are made regarding economic growth,
consumer spending, and trends in retail sales.
Legislative Changes: Changes in sales tax rates or regulations at the state level can
impact local revenue forecasts.
A conservative revenue growth rate of 2% was calculated, to ensure the fiscal stability
and sustainability of the city’s finances. This growth rate takes into account the potential
economic conditions and various factors influencing revenue generation.
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Franchise Fees:
♦
♦
Franchise Agreements: Projections depend on existing franchise agreements with utility
companies, cable providers, or other entities operating within the city. Assumptions
about fee structures and collection rates are made accordingly.
Business Activity: Changes in the number of businesses operating within the city and
their level of activity can affect franchise fee revenues.
A conservative revenue growth rate of 2% was calculated, to ensure the fiscal stability
and sustainability of the city’s finances. This growth rate takes into account the potential
economic conditions and various factors influencing revenue generation.
104
City of Eustis, Florida
Adopted Budget
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