Utility Usage: Assumptions regarding the level of utility usage by residents and businesses take into consideration historical consumption patterns, population growth, and current and potential economic conditions
Rate Structures: Changes in utility rate structures, including increases or decreases in rates, are factored into revenue forecasts
■ A conservative revenue growth rate of 3% was assumed to ensure the fiscal stability and sustainability of the City's finances. This growth rate considers the current and potential economic conditions and various factors influencing revenue generation
Economic Trends: The assumptions for sales tax revenue are closely tied to the overall economic health of the City. Assumptions are made regarding economic growth, consumer spending and retail sales trends
■ Legislative Changes: Changes in sales tax rates or regulations at the State level can impact local revenue forecasts
■ A conservative revenue growth rate of 3% was assumed to ensure the fiscal stability and sustainability of the City's finances. This growth rate considers the current and potential economic conditions and various factors influencing revenue generation
Franchise Agreements: Assumptions depend on existing franchise agreements with utility companies, cable providers, or other entities operating within the City. Assumptions about fee structures and collection rates are made accordingly
Business Activity: Changes in the number of businesses operating within the City and their level of activity can affect franchise fee revenues
■ A conservative revenue growth rate of 2% was assumed to ensure the fiscal stability and sustainability of the City's finances. This growth rate considers the current and potential economic conditions and various factors influencing revenue generation
Usage Patterns: Assumptions about water and sewer usage are based on historical data, seasonal variations, and expected changes in consumption due to factors like population growth and weather conditions. A 4% yearly growth in estimated revenue for water and sewer sales in FY 2027/31 was applied, considering the current growth of the City the development of pending new subdivisions
Rate Adjustments: Forecasts consider potential rate adjustments for water and sewer services, which can impact revenue generation. Currently, the City is in the process of conducting a study on water and sewer rates. In the upcoming fiscal year, the existing revenue figures will be updated to reflect the data from the rate study
See the example below: City-wide Major Revenue Sources of $1 Million or more:
Table 17:
| Major Revenues - Citywide | FY 26/27 Forecast | Inc. | FY 27/28 Forecast | Inc. | FY 28/29 Forecast | Inc. | FY 29/30 Forecast | Inc. | FY 30/31 Forecast |
|---|
| Water & Sewer Sales | 14,605,000 | 4.0% | 15,189,200 | 4.0% | 15,796,768 | 4.0% | 16,428,639 | 4.0% | 17,085,784 |
|---|
| Ad Valorem Taxes | 14,036,211 | 3.0% | 14,457,297 | 3.0% | 14,891,016 | 3.0% | 15,337,747 | 3.0% | 15,951,257 |
|---|
| Utility Taxes | 3,751,000 | 2.0% | 3,826,020 | 2.0% | 3,902,540 | 2.0% | 3,980,591 | 2.0% | 4,139,815 |
|---|
| Sales Taxes | 2,733,668 | 4.0% | 2,843,015 | 4.0% | 2,956,735 | 4.0% | 3,075,005 | 4.0% | 3,198,005 |
|---|
| Franchise Fees | 2,365,000 | 2.0% | 2,412,300 | 2.0% | 2,460,546 | 2.0% | 2,509,757 | 2.0% | 2,610,147 |
|---|
| 1/2 Cent Sales Tax | 1,587,136 | 2.0% | 1,618,879 | 2.0% | 1,651,256 | 2.0% | 1,684,281 | 2.0% | 1,751,653 |
|---|
| Total | $39,078,015 | | $40,346,711 | | $41,658,862 | | $43,016,020 | | $44,736,661 |
|---|
Revenue Forecast FY 2027-31
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