Page 18 - FY 19 Budget Forecast 91218.xlsx

Senior Activities Center (pending voter approval in November 2018), the reconstruction of Johnson Road
from Rufe Snow Drive to Keller‐Smithfield Road, a roundabout at Bear Creek Parkway and Whitley Road,
a digital impact project for economic development, improvements at the northern Bear Creek Parkway
and Keller‐Smithfield Road T intersection, various vehicles replacements and more.

Included in the General Fund are one‐time expenditures totaling $4,138,306, which represent 124 percent
of the General Fund’s increase from last year. In fact, when those one‐time projects are removed, General
Fund expenditures actually decreased this year — by $801,821 or 2.2 percent. By using General Fund fund
balance revenue for these projects, the city is able to meet current service demands without issuing debt.

The adopted Water and Wastewater Fund budget shows an increase of $631,769 or 2.3 percent over FY
2017‐18. Included in that total are contracts for water purchases from the City of Fort Worth, and
wastewater treatment and collection services from the Trinity River Authority. Combined, these two
contracts amount to $13,461,337 — 48 percent of the Water and Wastewater budget.

The budget includes new debt to be issued related to the Alta Vista pump station and Alta Vista
transmission main projects as well as funding for future replacement of heavy equipment. In order to
account for the budget increase, water and wastewater rates will have moderate increases. The average
resident’s monthly water bill will increase by $1.25 (1.6 percent) in the year ahead and the average
monthly sewer bill by $0.86 (1.9 percent). The average utility customer’s monthly bill, then, will see a total
increase of $2.11 or 1.7 percent.

Significant Changes to the Budget

City Council continues to recognize the need to be proactive when it comes to planning for repairs and
replacements of capital investments and critical equipment. Aimed at cash funding future projects rather
than issuing debt, the council has approved a fire apparatus replacement program, a vehicle and
equipment replacement program, a technology replacement program and, most recently, a facility
replacement program for major investments like generator, roof and HVAC system replacements at city
facilities. The FY 2018‐19 General Fund budget will continue these annual transfers, ensuring that
equipment will be promptly repaired or replaced when its useful life has ended.

The FY 2018‐19 Adopted Budget also continues council’s commitment to cash funding capital projects
whenever possible. Of the nearly $15.6 million in infrastructure improvements, $2.2 million in facility
improvements and over $3 million in park improvements adopted this year for a total capital project
investment of more than $20.9 million, only $7.8 million — a little over 1/3 — will require issuing debt.

In addition, the city’s Capital Improvements Plan forecasts $55.3 million in city capital systems over the
next five years and anticipates issuing only $15.9 million in debt, or 28.6 percent. It should be noted that
this does not include the proposed new Senior Activities Center at Johnson Road Park for up to $8 million,
which will be considered by the voters in November. If voters approve plans for the new center, the city’s
five‐year CIP will include up to $63.3 million worth of projects with $23.9 million (37.6 percent) funded
from debt.

Due to the cash funding of capital projects and other one‐time expenditures, the adopted budget shows
overall expenditures exceeding revenue by $3,986,814 total and in the General Fund by $549,515. While
expenditures exceed revenue, this year’s proposal is still an operationally balanced budget with ongoing

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