Page 18 - FY2020Colleyville
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Revenues
Utility bills include both volumetric and base rates. The City’s operating costs for
delivery of treated water and collection of wastewater are included in the monthly
water and wastewater base rates. The volumetric rate is a direct pass through of the
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 fiscal year for base rates and TRA’s fiscal
year for volumetric rates. Water and wastewater volumetric charges account for 81
percent of operating revenue and water and wastewater base rates account for 17
percent. Interest, tap fees, and miscellaneous revenues comprise the remainder.
Expenditures
Utility Fund expenditures total $17,555,789 for the fiscal year 2020 budget. There is
no utility-supported bonded debt obligation. Fiscal year 2018 was the last year of
debt payments for the Utility Fund. The largest component, 81 percent of the fund,
covers the contractual obligation for water and wastewater to the TRA.
DEBT SERVICE FUND
The City budgets for tax-supported debt in the Debt Service Fund. The total fiscal
year 2020 Debt Service Fund expenditure budget is $1,406,398. This City has been
focused on paying off all outstanding debt and financing all capital needs going
forward with cash.
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.
Furthermore, the city’s bond ratings are evidence of Colleyville’s financial strength.
Currently, all debt obligations of the City are rated AAA by Fitch Ratings and Standard
and Poor’s. In 2009, the City received an upgrade in its general obligation bond rating
from AA+ to AAA from Standard and Poor’s. Strong tax base growth coupled with a
low tax rate, strong financial performance, and substantial cash balances were the
primary reasons for the bond rating. These credit ratings for outstanding debt mean
the City’s bonds are considered to be of superior investment quality, resulting in
lower interest payments for the City.
STORMWATER DRAINAGE UTILITY FUND
In 1993, the City Council adopted a monthly fee assessed on residential and
commercial utility billing accounts for stormwater management. The Stormwater
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