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BUDGET OVERVIEW

Utility Fund

FY 17/18 Adopted FY 17/18 Revised FY 18/19 Adopted

Revenue $34,336,777 $36,130,719 $35,364,459

Expenditures $34,336,777 $36,130,719 $35,364,459
Balance $0 $0 $0

FY 2017/2018 Revised Budget

Revised Revenues in the Utility Fund are up overall by $1,793,942. Revenues related to water
sales and sewer sales are in-line with the adopted budget; however, there is a prior year settle-
up of $1,108,469 for water and $608,287 for sewer that makes up the bulk of the increase in
revenues. Other notable changes include an increase in revenue in interest income in the
amount of $25,191 due to rising interest rates and a decrease in revenue from the joint use
reimbursement from Watauga of $44,048. An appropriation of fund balance of $89,843 is
included for prior year encumbrances.

Overall, revised expenditures are projected to be $1,793,942 more than what was included in
the FY 2017/2018 Adopted Budget. The bulk of the increase from the FY 2017/2018 Adopted
Budget is due to an increase of $1,647,883 in contributions to the funds reserves. Operating
expenditures are increasing by $55,907, primarily due to an increase in right-of-way
maintenance. Expenditures related to water services have decreased by $54,142, while sewer
service expenditures are in line with the adopted budget. Costs for Utility Billing Customer
Service are in-line with the adopted budget, with just a small increase of $2,499. Other notable
changes include an increase in non-departmental expenditures in the amount of $109,927
primarily due to staff transferring forecasted position vacancy savings from operations to a
centralized location within each major fund.

FY 2018/2019 Adopted Budget

Water sales and charges generated from the North Richland Hills system for FY 2018/2019 are
projected to be $22,622,906, an increase of $1,122,683, or 5.22% increase from the FY
2017/2018 Adopted Budget. Sewer sales and charges are projected to be $11,504,077,
an increase of $209,929, or 1.86%, over adopted FY 2017/2018. Staff is proposing a 20%
increase in the base rate for all customer classes, which will increase the residential base rate
from $10.00 to $12.00. The Adopted budget also includes an increase to the sewer base rate
of $0.61; increasing the residential rate from $8.39 to $9.00. Additionally staff is proposing a
5% increase to volumetric rates for water. These rate increases will be used to offset growing
costs in operations expenses and capital needs, as well as increases in purchase costs from
the City’s water and sewer suppliers (Trinity River Authority (TRA) and the City of Fort Worth).
Based on these changes the Utility fund is forecasted to pull from available fund balance
$408,249.

Total expenses are projected to be $1,027,682 more than the FY 2017/2018 Adopted Budget.
Included in the budget is $16,941,687 in water and sewer treatment costs charged by the City
of Fort Worth and TRA, which is an additional $414,827 in cost. There is also an increase of
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