Carrollton's tax revenue growth and surplus foreseen in short term

The Carrollton City Council received its financial forecast for the fiscal year 2023 budget.

Diana Vaughn, Carrollton’s senior director of financial reporting said the finance department expects a $2.2 million surplus in the general fund because due to the tax collection rate resulting from high property values and savings from position vacancies among city staff. By 2027, Vaughn said the city should expect a small, recurring deficit.

Taxes are expected to see an increase with property tax revenues forecasted to rise 2.8% and sales tax revenues to rise 2.13% pending the approval of Rule 3.334 which would source sales tax revenue from online purchases to the buyer's location instead of the seller's place of business to accommodate for online sales.

Vaughn said Carrollton remains the second lowest in city services cost in the area.

Carrollton also received new direction regarding American Rescue Plan Act (ARPA) funds, saying the city has to use up all its federal funding sooner, according to Vaughn. This leaves an additional $12.9 million that needs to be spent.

Vaughn said some of the funding could go toward firefighter salaries, fire engine replacement, fleet funding and inflation corrections.

She also presented expected projects requiring a one-time spend of at least $1 million including generator maintenance, parks improvement and security improvements.

Some of the uncertain variables that may affect the budget include changes in sales tax pending the final decision on Rule 3.334, possible inflation and changes in supply chain, the possibility of a new COVID-19 strain and debt issuance in the current volatile market.