FY 2025 BUDGET BOOK - Flipbook - Page 98
➢ The City’s current year-end estimates.
➢ Trends in revenue sources and spending based on historical data.
➢ Analysis of the City’s General Fund revenues, expenditures, current taxable valuation and
projected future valuation based on anticipated new development and/or land-use changes.
➢ An analysis of financial policies as they relate to funding reserves.
➢ Current and projected economic conditions in the local vicinity and anticipated legal changes
To make accurate predictions, several key assumptions were considered. These assumptions help
City management estimate revenue streams and plan for effective budget management.
Below is a breakdown of assumptions used for forecasting the following revenue sources:
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Ad Valorem Taxes:
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Property Values: Forecasts rely on assessments from the County Property Appraiser’s
Office of property values in the City. Assumptions are made about how property values
may change considering factors such as inflation, economic trends, real estate market
conditions, annexation and new construction
▪
Tax Rate Stability: The City has used the assumption that property tax rates will remain
relatively stable over time. Significant changes in tax rates could impact revenue
projections
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A conservative revenue growth rate of 3% was integrated, to ensure the fiscal stability
and sustainability of City’s finances. This growth rate considers potential economic
conditions and various factors influencing revenue generation
Utility Taxes:
▪
Utility Usage: Assumptions regarding the level of utility usage by residents and
businesses take into consideration historical consumption patterns, population growth,
and current and potential 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 assumed to ensure the fiscal stability and
sustainability of the City’s finances. This growth rate considers the current and potential
economic conditions and various factors influencing revenue generation
One-Half-Cent Sales Taxes:
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Economic Trends: The assumptions for sales tax revenue are closely tied to the overall
economic health of the City. Assumptions are made regarding economic growth,
consumer spending and retail sales trends
▪
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 assumed to ensure the fiscal stability and
sustainability of the City’s finances. This growth rate considers the current and potential
economic conditions and various factors influencing revenue generation
Franchise Fees:
▪
Franchise Agreements: Assumptions 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
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A conservative revenue growth rate of 2% was assumed to ensure the fiscal stability and
sustainability of the City’s finances. This growth rate considers the current and potential
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