The follwing table shows total collections from User Fees for the city of Taxylv

Question

The follwing table shows total collections from User Fees for the city of Taxylvania for the last 7 years.   Use this data to forecast total user fee revenue for each of the next three years (2016 - 2018).

Year             Total User Charges

2009                   481,984

2010                   494,149

2011                   511,218

2012                   530,184

2013                   531,157

2014                   541,850

2015                   550,000

2016                      ???

2017                      ???

2018                      ???

What is the estimate for 2016 user fee revenues? ____________

Explanation / Answer

Calculation can be done with 7 Years Moving Average:

Average Fees = 3,640,542 / 7 = $520,077

So, the expected Fees for 2016 is $520,077

For 2017: 3,640,542 - 481,984 + 520,077 = $3,678,635 / 7 = $525,519

For 2018: 3,678,635 - 494,149 + 525,519 = $3,710,005 / 7 = $530,001

Year Fees($) 2009 481,984 2010 494,149 2011 511,218 2012 530,184 2013 531,157 2014 541,850 2015 550,000 Total 3,640,542

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