FY2016-17 Budget Final

City of DeSoto Five-Year Financial Forecast FY2017 – FY2021

3. Revenue Elements:

3.1 Property Tax Revenue: The value of property in the City of DeSoto has generally appreciated in the past 10 years by a total of $503,952,254 rising from $2,626,493,353 in FY 2006 to $3,130,445,607 in FY 2016. The period between 2010 and 2013 witnessed a decline in the property value as a result of the economic downturn at the end of 2008 and 2009. The property value recovered again reaching its highest value of $3,130,445,607 in FY2016 .

$20 $21 $22 $23 $24 $25 $26 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total Tax Levied

Total Tax Levied

The following graph shows the historical growth in property value in the past 5-years and the projected growth in value in the future.

The average growth rate for the past 10-years is 1.84%. This can be used as a conservative Estimated Growth Factor (EGF) for the next five years.

Considering the city’s plan to lower the tax rate from 0.7499 to 0.7399 by FY2019, the forecasted revenue from property tax is expected to grow to $25.3 Million in 2021.

Total Taxable Value*

$3,500

$3,000

$2,500

$2,000

$1,500

$1,000

$500

$-

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Total Taxable Value*

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