implemented by a defined date for review. Fortunately, the City of DeSoto has been proactive in various ways as it relates to administering fiscal standards and measures before making application for these certifications. The City of DeSoto will continue its ongoing quest toward financial excellence in FY 2021. An example of said performance has been exhibited over the past six (6) FYs as residents and business owners alike have realized a decrease in their annual property tax rates. In FY 2021, the City of Desoto is proposing a tax rate of 0.701554, which is the same rate as FY 2020. ~Community Wealth~ During the preliminary budget planning process for each FY, the Internal Budget Committee (IBC) discusses a litany of financial scenarios that will either negatively or positively impact projected revenues and expenditures. These comprehensive discussions enable the IBC to determine how much funding will be appropriated for annual expenditures. These monetary assumptions can be adjusted upward or downward based upon our two (2) annual conversations with the Dallas Central Appraisal District (DCAD). The DCAD provides local governing bodies with accurate values for real and business personal properties. In April, the DCAD reported that our preliminary “grand total taxable value” had increased from last year. Although this is a positive indication that our overall wealth is growing, it is imperative to understand that these initial estimations can still ascend or descend. Since FY 2012, the City of DeSoto has used less than what was projected as a “grand total taxable value” for its proposed budget. The FY 2021 budget was created by using a “grand total taxable value” of $4,850,000,000. Although these monetary figures and percentages are used as a baseline for developing the proposed FY budget, these numbers can be adjusted upward or downward based upon a final report issued by the DCAD. For example, in FY 2020, the certified “grand total taxable value” reached $4,698,078,117. However, staff used $4,500,000,000 to calculate the adopted budget for FY 2020. This conservative number was used due to the assumption that protested appraisals could decrease our overall taxable values, which will negatively impact our projected revenues. In calendar year 2019 (FY 2020), the DCAD reported that 51.68% of residential; 54.55% commercial; and 100% of business personal property (BPP) were reappraised. Conversely, in calendar year 2020 (FY 2021), 51.20% of residential; 45.23% of commercial; and 100% of BPP will be reappraised. In comparison to the budget for FY 2020, the FY 2021 budget will take into consideration a projected increase in residential properties being reappraised. Commercial property reappraisals are up by 2.87%. However, Business Personal Property reappraisals will once again remain at 100%. ~General Fund Expenditures~ The General Fund (GF) is supported by property taxes, sales taxes, intergovernmental transfers, interfund transfers, franchise fees, recreation fees, and administrative fees, and licenses/permits, charges for services, fines/forfeitures, and interest. Revenue for the FY 2021 GF budget is projected to be $49,556,925, which is $5,330,690 more than the adopted FY 2020 budget
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