Page 17 - Keller FY20 Approved Budget

The Adopted Budget FY 2019‐20 General Fund budget is $40,662,984, which is an increase of $1,168,545
or 2.96 percent from FY 2018‐19. This total includes personnel increases, the start of work on a new Senior
Activities Center, additional funding for the Bear Creek and Whitley roundabout, the reconstruction of
Johnson Road from Keller‐Smithfield to Rhonda roads, two UPRR pedestrian crossings (at Bear Creek
Parkway and Golden Triangle Boulevard), West Vine Street drainage improvements, various vehicles
replacements and many more investments into our community.

Included in the General Fund are one‐time expenditures totaling $4,874,298. When those one‐time
projects are removed, General Fund expenditures increased by $432,553 or 1.22 percent over last year.
By cash‐funding one‐time projects in the General Fund, the city is able to meet current service demands,
including capital maintenance needs, without issuing debt.

The adopted Water and Wastewater Fund budget shows a decrease of $624,633, or 2.2 percent,
compared to FY 2018‐19. 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 $12,175,659 — 44.5 percent of the Water and Wastewater budget. Both
contracts will be decreasing for FY 2019‐20, which will be reflected in the pass‐thru portion of the rates.

The budget and pass‐thru rates reflect decreases of 8.9% from Fort Worth and 1.6% from the Trinity River
Authority. However, the city water and wastewater city rates will have moderate increases. Even with the
city rate increases, the average resident’s monthly water bill will decrease by $2.56 per month (3.25
percent) in the year ahead. The average monthly sewer bill will increase by $0.77 (1.6 percent) in the year
ahead. The average utility customer’s monthly bill, then, will see a total decrease of $1.79 or 1.6%.

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/EMS replacement program that well set aside money
annually to pay for expected equipment replacements. The Fire/EMS replacement program is the latest
addition to the city’s replacement allocations, which include accounts for fire apparatus, vehicles, heavy
equipment, technology and city facilities. The FY 2019‐20 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 2019‐20 Adopted Budget also continues council’s commitment to cash funding capital projects
whenever possible. Of the nearly $8.6 million in infrastructure improvements, $8.6 million in facility
improvements and $499,000 in park improvements adopted this year for a total capital project investment
of more than $17.7 million, only $7.1 million — less than half — will require issuing debt.
In addition, the city’s Capital Improvements Five‐Year Plan forecasts $76.2 million in city capital
expenditures over the next five years and anticipates issuing $40.1 million in debt, or 52.6 percent. The
proposed debt includes the voter‐approved issuance of up to $8 million of debt for a new Senior Activities
Center at Johnson Road Park.

Due to the cash funding of capital projects and other one‐time expenditures, the adopted budget shows
overall expenditures exceeding revenue by $1,886,091. The adopted budget also shows General Fund
expenditures exceeding revenue by $1,046,175. While overall expenditures exceed overall revenue, this
year’s proposal is still an operationally balanced budget with ongoing revenue exceeding ongoing

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