CIP FY 24-28 9-7-23 FINAL Version - Flipbook - Page 14
Capital Improvements Plan
Funding Projections:
The following includes estimated Fund Balance amounts at the end of the Fiscal Year 2022-23. The
available projected revenues and expenditures are based on current revenue projections and the
average consumer price index (CPI) throughout the five-year planning period. According to Federal
Reserve data, the annual inflation rate increased to 8.5% in September, 2022, over the previous
twelve months; it would be the highest reading since December 1981.
The following should be noted:
1) The Sales Tax Referendum was renewed beginning January 1, 2018. Projections are based upon
current FY 22/23 estimated revenues, an annual 3% increase in FY 24/28 revenue stream. The total
FY 24/28 revenue estimate is $35,025,159 or 24.97% of the total projects’ revenue. Projected fiveyear revenue growth is $32,746,159. Following inflation, commodities and services estimated as a
5% cost increase, corresponding expenditure increase is applied for FY 24/28.
2) Street Improvement Fund projections are based upon current FY 22/23 estimated revenues, an
annual 3% increase in FY 24-28 revenue stream; 5% expenditure increase is applied for FY 24/28.
The total FY 24/28 CRA revenue estimate is $13,814,324 or 9.85% of the total projects’ revenue.
Projected five-year revenue growth is $11,846,324. Following inflation, a 5% expenditure increase
is applied for FY 24/28.
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 per FY
24/28. The total FY 24/28 CRA revenue estimate is $10,539,713 or 7.51% of the total projects’ revenue.
Projected five-year growth revenue is $9,399,777 Following inflation, a 5% expenditure increase
is applied for FY 24/28.
5) The Stormwater Fund projections are based upon current FY 22/23 estimated revenues, an annual
3% increase in FY 24/28 revenue stream; 5% expenditure increase is applied for FY 24/28. The total
FY 24/28 Stormwater revenue estimate is $4,726,193 or 3.37% of the total projects’ revenue. Projected
five-year revenue growth is $3,840,038. Since the last rate increase, it has been 12 plus years: $6
for residential and $12 for commercial properties. For the City to maintain an ability to continue
to support quality projects, we will need to look at a funding mechanism similar to the Water and
Wastewater program by having annual increases to avoid stagnation of the fund.
6) The Water and Wastewater funds projections are based upon current FY 22/23 estimated
revenues. An annual 2.5% increase in Water and Sewer revenue in FY 23/24 and 3% increase in
FY 25/28 revenue stream; A 1% for other revenues and Water and Sewer impact fees in FY 23/24,
and 2% for Water and Sewer impact fees in FY 25/28. A 5% expenditure increase is applied for FY
24/28, The total FY 24/28 revenue estimate is $75,712,688 or 53.98% of the total projects’ revenue.
Projected five-year growth revenue is $61,949,487. Water and wastewater funds is a main fund for
the majority of the City’s capital improvement projects. Last water rate study was done in FY 2020.
Current economic inflation forced the City to conduct the Water, Wastewater, Stormwater and impact
fees rates study in FY 2023. The study will be performed by an independent consulting company.
7) Greenwood cemetery Fund projections are based upon FY 22/23 estimated revenues. The total FY
24/28 fund revenue estimates is $199,771 or 0.14% of the total projects’ revenue. Projected five-year
revenue growth is $183,316. Following inflation, a 5% expenditure increase is applied for FY 24/28.
8) Law Enforcement Capital Expansion Fund projections are based upon FY 22/23 estimated revenues. The total FY 24/28 fund revenue estimates is $234,664 or 0.17% of the total projects’ revenue.
14