FY 2024-25 Adopted Budget Book

Introduction Long-range forecasting of annual budget priorities creates a framework for evaluating budgetary impacts, building a baseline for measuring effects of decisions, reviewing economic effects on funding scenarios, and provides an understanding of revenue and expenditure projections. The financial forecast does not present a 5-year budget or plan for the City. Forecast models are not absolute predictions of the future, instead are projections of possible outcomes based upon a set of variables and assumptions to evaluate annual decisions. This financial forecast is the first framework that will be evaluated and updated yearly. 1. Economic outlook: 1.1 Population The City of DeSoto population grew from 37,646 in 2000 to 57,583 in 2024 according to the U.S Census, and continues to experience growth. The City’s past growth rate can be the best indicator of future growth rate. The following table shows DeSoto’s population, percent change and compound annual growth rate by decade. The city experienced a large population growth from 1980 to 1990 and has grown at consistent rate since 1990.

Year Population Change

% Change

Compound Annual Growth Rate

1980 1990 2000 2010 2020 2024

15538

-

-

Source: US Census

30544 15006 37646 7102 49047 11401 56145 7098 57583 1438

96.58% 23.25% 30.28% 14.47% 2.56%

6.99% 2.11% 2.68% 1.36%

0.25% -14.76%

The city is currently about 75 percent built out, leaving approximately 25 percent of land area of the community yet to be developed. This means that DeSoto has currently reached 65 percent of its build- out, or ultimate, population of approximately 78,000 persons. Assuming a conservative growth rate of 1.5 percent, DeSoto is expected to reach its ultimate capacity after 2040. It is important to keep in mind that population projections are subject to change and can be impacted by number of factors such as technology, housing density decisions, the local and national economies, and the real estate market. 1.2 Housing and Real Estates

Single Family Building Permits by Year

300

246

250

215

177

200

153

153

150

149

125

150

100

50

0

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY 2023 FY 2024

105

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