Page 138 - Azle City Budget 2019

UTILITY FUND – IN BRIEF

REVENUES

Total Utility Fund revenues of $8,475,789 are projected for FY 2018-19. This reflects an
increase of $501,190 (6.28%) over the FY 2017-18 budget. This increase is based on historical
consumption and actual and projected growth in the City’s customer base. A water and
wastewater rate study was completed in FY 2016-17 and the recommended rate structure from
that study was implemented in FY 2017-18. That rate structure is projected to produce
sufficient revenue to meet all of the Utility Fund’s obligations for FY 2018-19, therefore, the
increased rates adopted in FY 2017-18 will remain unchanged.

The graphs below show the growth in the customer account from FY 2015-16 to FY 2018-19.

EXPENSES

Total expenses for the Utility Fund are projected at $7,941,006 which is $466,585 more than the
original FY 2017-18 budget. The increase is due in large part to increases in the personnel
services, maintenance, contractual services, and capital outlay categories. Included in
personnel costs are increases for step raises, a 3% cost of living adjustment to all salaries
effective in January 2019, projected increases in the cost of raw water purchases, and a new
pickup truck for the Utility Maintenance Department. Funds to cover anticipated increases in
health insurance, workers’ compensation insurance, and TMRS retirement are also included in
this budget. Major maintenance projects include the continued slip lining of sewer lines in the
Gladstone and Glenhaven area.

The projected ending working capital in the Utility Fund is $2,908,626, which is a decrease of
$22,773. This decrease is related to capital expenses in the Utility Maintenance Department. In
addition to budgeted expenses, the annual transfer to the General Fund to cover the various
administrative costs of the fund that are accounted for in the General Fund is $557,556. The
reduction in the projected ending working capital is not expected to negatively impact Utility
Fund operations as this amount exceeds the City’s stated goal of maintaining reserves of 33%
of operating expenses.

City of Azle 2018-2019 Budget 126