FY2016-17 Budget Final

City of DeSoto Five-Year Financial Forecast FY2017 – FY2021

3.2 Non-Property Tax Revenues: Non property tax revenues include sales tax, utility franchise tax and hotel tax. Revenue from Non-Property tax sources have grown from $10.5 M in FY2011 to $13.8 M in FY2015 increasing by 31.7% in the past 5-years. The following chart shows the historical data in the past five years and projected future revenues for Non-Property tax. Revenues are projected to grow by an average of 4.72 percent annually for the next five years .

Non-Property Tax Revnues

$20,000,000

$18,000,000

$16,000,000

$14,000,000

$12,000,000

$10,000,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Non-Property Tax

3.2.1 Sales Tax Sales Tax revenue for DeSoto has fluctuated in the past 10-years mainly because of the economic recession that affected the revenue between FY2009 and FY2011. The Texas comptroller of Public Accounts provides historical data and a forecast for the next 30 years for the retail sales under Texas Economic Forecast Section. Comparing the annual percentage change in Sales Tax Revenue in the past 10-Yrs for DeSoto and State of Texas, DeSoto has experienced a growth in Sales tax Revenue that is 0.75% less than Texas average. The Sales tax revenue for the next 5-Yrs is forecasted based on the assumption that DeSoto will experience an annual growth percentage in revenue that is 0.75% less than the annual percentage growth for Texas. This will result in estimated growth for sales tax by 5.34% annually. 3.2.2 Utility Franchise Tax: The utility franchise tax has grown over the past 10 years by 26% from its base year in 2006. As other revenue sources of the city, utility franchise tax collection dropped between FY2010 and FY2012 due to the economic recession. The average annual percentage change in franchise tax for the past 10-years was 2.85%. This percentage will be used as an EGF for the next 5-years.

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