FY2016-17 Budget Final

City of DeSoto Five-Year Financial Forecast FY2017 – FY2021

website forecasts a growth in housing starts in Texas for the next five years. It expects a growth by 29.7% from the current figure of 107,700 single family homes in 2015 to 139,700 in 2021. The growth in the city is expected to continue derived by the overall expected growth in Texas.

Another indicator, for expected growth in DeSoto, is the growth in number of water customers which has been in line with the increase in housing units and population growth.

Percentage Change in Water Customers by Year

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Percentage Annua Change in Water Customers

Source: DeSoto Public Utility

1.3 Tax Base Component: Growth in Ad Valorem tax is derived from commercial and residential property. The City of DeSoto experienced changes in its tax base components in the past ten years. Taxes from commercial property have increased over that period from 27 percent in 2005 to 38 percent in 2015. Growth in commercial property taxable value increased by 19 percent from 2011 compared to 8 percent increase in taxable value of residential property over the same period.

Tax Base Components

100%

80%

73% 73% 72% 68% 65% 64% 64% 63% 61% 60% 62%

60%

40%

27% 27% 28% 32% 35% 36% 36% 37% 39% 40% 38%

20%

0%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Commercial

Residential

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