Page 17 - Colleyville FY19 Budget

although these funds are rolled together for financial reporting purposes in the CAFR
(Certified Annual Financial Report). The Utility Fund functions as the operating fund.
The Utility Capital Projects Fund is where revenues and expenditures for utility capital
projects are accounted for. This includes water and wastewater impact fees, revenue
from the CIP base rate, and year-end operating surpluses transferred over from the
Utility (operating) Fund. Creation of the Utility Capital Projects Fund has allowed for
easier tracking, communication, and forecasting. The sections below specifically
discuss revenues and expenditures for the Utility (operating) Fund.

Revenues
Utility bills include both volumetric and base rates. A committee of citizens was
appointed to consider rate structure changes and the City Council ultimately adopted
a structure that recovers all of the City’s operating costs for delivery of treated water
and collection of wastewater in the monthly water and wastewater base rates. The
volumetric rate recovers (i.e. passes through) all costs the City pays to Trinity River
Authority (TRA) for treated water and wastewater treatment. Both the base rates
and volumetric rates are reviewed and updated on an annual basis, concurrent with
the City’s year for base rates and TRA’s fiscal year for volumetric rates. Water and
wastewater volumetric charges account for 80 percent of operating revenue and
water and wastewater base rates account for 18 percent. Interest, tap fees, and
miscellaneous revenues comprise the remainder.

Expenditures
Utility Fund expenditures total $16,405,604 for the fiscal year 2019 budget. The total
utility-supported 2019 bonded debt obligation is $0. Fiscal year 2018 was the last
year of debt payments for the Utility Fund before all outstanding debt has been
retired. The largest component, 80 percent of the fund, covers the contractual
obligation for water and wastewater to the Trinity River Authority (TRA).

DEBT SERVICE FUND

The City budgets for tax-supported debt in the Debt Service Fund. The total fiscal
year 2019 Debt Service Fund expenditure budget is $1,859,940. This City has been
focused on paying off all outstanding debt and financing all capital needs going
forward with cash. Utility Fund debt was paid off last fiscal year, Drainage Fund debt
will be paid off in three years, and General Obligation Debt will be retired in nine
years.

There is declining debt service in the remaining outstanding debt obligations,
however a refunding of outstanding callable debt that occurred in fiscal year 2016
rolled together TIF debt with General Fund debt, causing total debt service fund
expenditures to increase from fiscal year 2016 to 2017. This is offset by the increased
revenue from the transfer in of funds from the TIF to pay for its fair portion of the
consolidated refunded debt.

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