FY2016-17 Budget Final

City of DeSoto Five-Year Financial Forecast FY2017 – FY2021

3.5 Earning on Investments: Earning on investments has been declining in the past 10-years and it went down from $1.172 M in 2006 to $0.223M in 2015. Revenue from investment earnings will be set at of 0.50% growth for the next 5- years. The City investment policy’s first objective is the preservation of capital, safety of principal and security of investments of the City’s funds. The portfolio is designed and managed for effective cash management and to be consistent with state and local law.

Earnings on Investments

$240,000

$220,000

$200,000

$180,000

$160,000

$140,000

$120,000

$100,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Earnings on Invstmts

3.6 Other Revenue Sources: Revenue from this category is forecasted depending on their specified use and can be classified by funds as follow: 1- General Fund:  The general fund receives annual reimbursement for administrative costs from enterprise funds of $1,871,837.  Other revenue sources that vary by year include revenues from lease/rent, auction proceeds, training revenue and intergovernmental revenue. 2- Capital Improvement Funds:  Proceeds from issuing general obligation, certification of obligation or revenue bonds.  Revenue in this category will depend on the City’s the Five Year Capital Improvement Plan (CIP). 3- Debt Service Fund:  Revenue in this category is property tax revenue allocated to retire the City’s debt.

The following table summarizes the projected funding requirements for capital improvement projects and the schedule of futures bonds.

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