DeSoto FY21----FY22-Approved-Budget

Dallas-Fort Worth-Arlington, TX - GDP Index

100 110 120 130 140 150 160 170








80 90


2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

GDP Total

Annual Percentage Change

2. RevenueAnalysis: Forecasting revenue is based on analysis of historical trend, current circumstances and assumptions based on foreseeable economic trend. The forecast takes into consideration the changes in revenue pattern over the past ten years. The historical data period covers the economic recession and the recovery stagewhere more consistent revenue patterns became more noticeable. As a result the forecasted growth rate for revenue is considered to be a more conservative forecast. A number of economic indicators, which include Consumer Price Index (CPI) and Gross Domestic Product (GDP), were considered in order to assess the overall economic trend. 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 2018. 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 should be maintained 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 73,515,000 bonds in the next five years to finance capital


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