Page 18 - FY2020Colleyville
P. 18

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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