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Financial Forecast Overview

Purpose: To assist City of Mandeville with the preparation of a 5 year financial forecast for the fiscal health of the General Fund, Police Fund, Streets Fund, and the Water and Sewer Funds.

Procedures: CRI looked at Mandeville’s historical data and trends, forecasts and projections from comparable entities, and publicly available federal and national agency forecasts and data. We then applied this information over a 5-year span to develop a forecast of revenues, expenses and fund balance

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Summary of Revenues

Sales tax makes up 55-65% of general fund revenues in recent years, with dramatic increases related to inflation and COVID-related spending
Ad Valorem taxes account for approximately 10% of general fund revenues, with a reliable growth rate of 2.4%
Intergovernmental revenue has made up a larger share than normal in the most recent years (11%), but this trend is unlikely to continue at the same amount due to these being mostly disaster-related funding.
Historical average annual revenue growth rate for the last 5 years has been 2.39% (net of intergovernmental and emergency income)
Future population growth estimated at .8-1% annually for the next 5 years

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Sales Tax Projection�Assuming a 2.5% increase in future years

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Ad Valorem Tax Projection�Projecting a 2.39% increase in future years

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Water and Sewer Fees

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Summary of Expenditures

Personnel costs make up anywhere from 40-65% of total expenses
Factors for personnel costs include:

3% COLA annual (per SSA.gov)
6% annual increase for health insurance (per AMA projections)
10% annual increase for workers comp (per LDOI projections)
Number of employees remaining the same for years included

Auto and General insurance at 10% annual increase and Property at 20% annual increase per the LDOI and peer data
Disaster and recovery-related costs only included for those already encumbered and prior years appropriations, from 2023 budget information
Other expenses assume a flat 2% increase unless otherwise noted

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Total Personnel Expenditures

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Personnel Costs as a % of Total Expenditures

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Capital Outlay

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Fund Balance – General Fund

*Does not include any additional revenue sources currently being pursued for fiscal years 2024-2028. If additional funding is not obtained, projects will not commence.

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Months of Expenditures in Fund Balance – General Fund

*Does not include any additional revenue sources currently being pursued for fiscal years 2024-2028. If additional funding is not obtained, projects will not commence

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Water & Sewer Net Position

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Months of Expenses in �Water & Sewer Net Position

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- Today’s Presenters -

Becky Hammond, CPA, CITP, CISA, CGAP

Partner

985.290.3684

BHammond@CRIcpa.com

Kellson Jeffery, CPA, CITP

Senior Manager

985.629.5565