2. RevenueAnalysis: Revenue forecasts are based on analysis of historical trends, current circumstances and assumptions based on available expert analysis of economic trends. The forecast takes into consideration the changes in revenue patterns over the past ten years. Because the historical data covers bothperiodsof slowergrowthaswellasmore aggressiveexpansion, the forecasted growth rate for revenue is relativelyconservative. A number of economic indicators, including the Consumer Price Index (CPI) and Gross Domestic Product (GDP), were considered in order to assess overall economic trends. 2.1 RevenueForecast Assumptions: The Long Range Financial Forecast is based on different assumptions that were used to build the forecast model. These assumptions are subject to change when the plan is reevaluated or is compared to actual data in the future. Changes to assumptions may also happen if new financial policies are introduced in the future. The base point for the modeling in the plan is the actual data for FY 2021.
The following assumptions were used to build the forecast model:
1- Population growth at a steady rate of 1.5% 2- Tax rate has reduced to .701554 and will remain the same for five years. 3- Taxable property value will appreciate at a 1.84 percent rate annually. 4- Non-Property taxes are expected to grow annually at 4.72 percent on average. 5- Water rates will be maintained at the same level. 6- The City of DeSoto is planning to issue $40,500,000 in bonds in the next five years to finance capital improvement projects. 2.2 RevenueTrendAnalysis: The following table and charts show a comparison of actual revenues from FY2017 and FY2021. The percentage of revenue derived from taxes (sales and property) increased slightly, fromabout 39%of total revenues to about 44%. Changes in other categories are also slight. Total revenues increased 24.5%over thepast fiveyears.
Revenue Type
2017
2021
Change
Inter-Governmental
$ $ $ $ $ $ $ $ $ $
5,216,102 25,827,776 14,491,956 1,407,042 1,399,574 29,627,767
$ $ $ $ $ $ $ $ $ $
7,024,189 36,847,228 19,519,067 1,443,363 1,009,323 33,079,845
34.7% 42.7% 34.7%
Property Tax
Non-Property Taxes
Licenses/permits/fines/fees
2.6%
Municipal Court
-27.9% 11.7% 75.0% -83.0% 16.7% 24.5%
Charges for services
Earnings on Investments Contributions/donations
415,258 24,462
726,875
4,150
Other TOTAL
25,663,675 104,073,613
29,936,876 129,590,917
112
Made with FlippingBook Annual report maker