Page 16 - Azle City Budget 2019

Sales tax revenue is estimated at $1,990,000 in FY 2018-19, which is an increase of $25,000
(1.26%) over the amended FY 2017-18 budget. This increase is based on recent trends in sales
tax collections.

Franchise fees are projected at $720,000 which is an increase of $10,000 over FY 2017-18.
This increased amount is based on the past few years actual collections.

Court fees are anticipated to be $475,000 in FY 2018-19, based on an average of collections
over previous years combined with the current year projection as well as the same amount
budgeted in FY 2017-18.

Within the General Fund, ad valorem taxes, sales taxes, franchise fees, ambulance and fire
fees, court fees and development fees account for 93.18% of the total revenue.

The transfer from the Utility and Stormwater funds is $641,337.

Expenditures

The General Fund expenditure budget for FY 2018-19 is $10,666,786. The proposed amount
reflects an increase of $705,605 (7.08%) from the FY 2017-18 approved budget. Including
transfers in from other funds, revenue is projected to be $58,188 over expenditures before
transfers to other funds.

In order to facilitate the Municipal Complex project, a transfer of $3,600,000 to the Capital
Projects Fund is budgeted and the ending fund balance is expected to be $3,741,445 (35.1% in
reserve) This represents a significant draw down on General Fund reserves but has been
planned for many years and maintains reserves above the City’s stated goal of maintaining
reserves above 33% of annual expenditures.

Debt Service Fund

Total debt service for outstanding obligations is $828,389. Along with Agent Fees, the total debt
service cost is $832,389. To finance this debt obligation, the budget provides for estimated ad
valorem taxes of $814,389, delinquent tax revenue, penalties & interest of $13,500, and interest
income of $4,500. A fund balance of $97,232 is projected for the end of FY 2018-2019. Again,
the I&S portion of the tax rate is proposed at $0.091719.

Utility Fund

Revenues

Total Utility Fund revenues of $8,475,789 have been projected for FY 2018-19. This reflects an
increase of $501,190 over the FY 2017-18 budget. The water and sewer rates are proposed to
remain unchanged for FY 2018-19.

Expenses

Total expenses for the Utility Fund are projected at $7,941,006. The transfer to the General
Fund totals $557,556. Total operating expenses for FY 2018-19, excluding debt service and
solid waste fees, have been proposed at $4,340,496. The fund has a projected ending working
capital of $3,389,409.

City of Azle 2018-19 Budget 5