CIP - FY 2025-29 FINAL - Flipbook - Page 17
Capital Improvement Plan
Funding Projections:
Fund projections include the estimated Fund Balance amounts at the end of the Fiscal Year 2023/24.
The available projected revenues and expenditures are based on current revenue projections
along with the projected consumer price index (CPI) throughout the five-year planning period.
According to Federal Reserve data, the annual inflation rate increased to 3.7% in September 2023,
lower than in the previous twelve months. The following should be noted:
1) The Sales Tax Referendum was renewed effective January 1, 2018. Projections for this fund are
based upon current FY 2023/24 estimated revenues with an annual 3% increase in FY 2025/29
revenue stream. The total FY 2025/29 required revenue estimate is $19,989,914 or 50.31% of the
total revenue needed to fund all the projects and expenses of this fund. Considering inflation,
commodities and services were estimated at a 5% cost increase and a corresponding
expenditure increase has been applied for FY 2025/29.
2) Street Improvement Fund projections are based upon current FY 2023/24 estimated revenues
with an annual 3% increase in the FY 2025/29 revenue stream. The total FY 2025/29 required
revenue estimate is $11,022,824 or 70.55% of the total revenue needed to fund all the projects
and expenses of this fund. Considering inflation, commodities and services were estimated at a
5% cost increase and a corresponding expenditure increase has been applied for FY 2025/29.
3) CRA Funding is projected to increase by approximately the same percentage that General Fund
Ad Valorem revenues are projected to increase, conservatively estimated at 3% per year for FY
2025/29. The total FY 2025/29 CRA required revenue estimate is $9,831,424 which is well more
than the total revenue needed to fund all the projects and other expenses of this fund.
Considering inflation, commodities and services were estimated at a 5% cost increase and a
corresponding expenditure increase has been applied for FY 2025/29.
4) The Stormwater Fund projections are based upon current FY 2023/24 estimated revenues with
an annual 3% increase in the FY 2025/29 revenue stream. The total FY 2025/29 Stormwater
required revenue estimate is $4,761,993 or 84.63% of the total revenue needed to fund all the
projects and other expenses of this fund. Considering inflation, commodities and services were
estimated at a 5% cost increase and a corresponding expenditure increase has been applied
for FY 2025/29. It has been 10 plus years since the last rate increase with current rates at $6 for
residential and $12 for commercial properties. This fund is unsustainable with the current rates.
For the City to maintain the ability to continue to support quality projects, the City will need to
look at a funding mechanism like the Water and Wastewater program by implementing annual
increases to avoid financial struggles within the fund.
5) The Water/Wastewater fund projections are based upon current FY 2023/24 estimated revenues
with an annual 2.5% increase in revenue for FY 2024/25 and a 3% increase in FY 2025/29. FY
2024/25, a 1% increase for other revenues and water and sewer impact fees is projected and a
2% increase is projected for FY 2025/29. The total FY 2025/29 revenue estimate is $82,440,214,
less than 1.0% of the total revenue needed to fund all projects and other expenses of this fund. A
5% expenditure increase is assumed for FY 2025/29. Most of the City’s capital improvement
projects fall within the Water and Wastewater Fund. The last utility rate study was conducted FY
2020. Due to current economic conditions and inflation, the City is currently having an updated
rate study conducted. The study is being performed by an independent consulting company.
6) General fund planned capital projects are often under $25,000. However, General Fund projects
may include significant operating expenditures and/or financing, if needed, for repairs and
maintenance, communication services, professional and other contractual services. For FY
2024/25, the City will use $595,250 of the General Fund’s fund balance for several one-time
capital projects.
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