Page 59 - NRH FY20 Approved Budget

BUDGET OVERVIEW

Utility Fund

FY 18/19 Adopted FY 18/19 Revised FY 19/20 Adopted

Revenue $35,364,459 $34,866,435 $38,233,116

Expenditures $35,364,459 $34,866,435 $38,233,116
Balance $0 $0 $0

FY 2018/2019 Revised Budget

Revised Revenues in the Utility Fund are down $498,024 compared to the FY 2018/2019
Adopted Budget. Due to a very rainy year water sales are down $2,739,647 or 12.14% from
the projection in the adopted budget. Increases from the prior year settle-up and joint
use reimbursement from the City of Watauga helped to lessen the impact of the lower water
sales. Service charge revenue decreased $19,000 from the adopted budget but was offset by a
$40,500 increase in interest income. Prior year encumbrances of $129,210 are also included.
An appropriation of fund balance of $1,895,726 is included to help offset a portion of the
expected loss in water sales.

Overall, revised expenditures are projected to be ($498,024) less than what was included in
the FY 2018/2019 Adopted Budget. The largest adjustment to expenses is the purchase of
water lowered $805,031 to adjust for lower consumption.

FY 2019/2020 Adopted Budget

Water sales and charges generated from the North Richland Hills system for FY 2019/2020 are
projected to be $24,625,083, an increase of $2,002,177, or 8.85% increase from the FY
2018/2019 Adopted Budget. Sewer sales and charges are projected to be $12,697,306, an
increase of $1,193,229, or 10.37%, over adopted FY 2018/2019. Revenue estimates include an
$5.50 increase in the water base rate as well as a $2.00 increase in the sewer base rate. Also
included is a $0.24 per 1,000 gallons increase in the pass-through rate for sewer.

Total expenses are projected to be $38,233,116 or $2,868,657 more than the FY 2018/2019
Adopted Budget. Included in the budget is a $282,310 increase in debt service, $196,679 in
sewer treatment services from the City of Fort Worth, and $260,010 in sewer treatment from
the Trinity River Authority. Additionally $2,043,608 is anticipated to be added to reserves to
help offset significant prior year draw downs.

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