Page 18 - Azle City Budget 2019

Revenue projections are based on previous year occupancy rates. No expenditures are
proposed for this fund.

The Cable PEG Fee Capital Projects fund was established to account for Cable PEG fees.
Chapter 66 of the Texas Utilities Code provides for funds, over-and-above franchise fees, to
support public, educational, and governmental (PEG) access facilities to assist cities with
providing PEG channel capacity. The funds are collected from an additional one percent of a
provider's gross revenues. Permissible capital expenditures include all facilities and equipment
that have a useful life of longer than one year and that are used for PEG access facilities to
provide or enhance the provisioning of PEG channel capacity, programming, and transmissions
for a governmental use. Projected revenue for FY 2018-19 is $17,070 which will result in an
ending balance of $195,751. No expenditures are proposed for this fund.

Capital Projects

The Capital Projects Fund consists of facility projects. A beginning balance of $10,243,000 is
projected for this fund. Included in this beginning balance is $1,193,000 in gas royalties,
$5,450,000 in proceeds from a debt issuance in FY 2015-16, and a transfer of $3,600,000 from
the General Fund.

Revenue of $100,000 is projected for the Capital Projects Fund, of which $50,000 is from gas
well royalties and $50,000 is from interest earnings. A total of $10,300,000 is budgeted for the
construction of the Municipal Complex.

The Utility Capital Projects Fund consists of the construction of a water line extension on FM
730 South ($550,000), Ash St. Sewer Line Improvements ($400,000) and SWIFT proceeds for
the replacement of 10,500 lf of waterline on Main St. ($1,230,000).

Summary

While the national and regional economies are recovering, the City still faces many challenges.
Property values increased significantly this year but the cost of providing City services continues
to rise. However, the City’s future looks bright. New home construction continues to be very
active in the City with the potential to add new residential subdivisions in the near future. Azle
has a lot to offer and every effort needs to be made to let developers know about the
community. As always, Staff will keep a close eye on the economy and stay prepared to
respond to changes as they come. Staff has made every effort to create a budget that will
provide the services our citizens have come to expect and Staff will continue to seek
improvements where they can be found. Furthermore, it is important to take a cautious
approach in the coming year while at the same time intensifying our efforts to attract new
businesses to Azle.

Respectfully submitted,

Thomas J. Muir
City Manager

City of Azle 2018-19 Budget 7