Page 231 - City of Westlake FY20 Budget

Section 4 Enterprise Funds
Utility Fund Overview

Fund Balance

• Excess revenues over(under) expenditures are projected to be $774,863
• The restated beginning fund balance is projected to be $1,873,862
• The ending fund balance is projected to be $2,648,725

Outstanding Long-Term Obligations.

• Joint Westlake/Keller water tower.
o This tower was constructed to provide necessary water storage and pressures within Westlake.

• The proportionate buyout of infrastructure owned by the Hunt Trust which sold the Circle T Ranch to
Hillwood.
o The Town agreed with Hillwood that in exchange for the dissolution of existing Municipal Utility
Districts (MUDs), the Utility Fund will reimburse Hillwood the share of purchased MUD
infrastructure for each development based upon the acres removed from the MUDs.
o Hillwood, in turn, must deposit these funds into an escrow account owned by the Hunt Trust.

• Texas Water Development Board
o Fort Worth Water Line Project that will provide for the Town’s projected water capacity needs at
build-out.

• Loan from Hillwood to the Town to construct 16” and 20” transmission water lines and the US 377 Pump
Station.
o The Town is contractually obligated to pay for this infrastructure through a surcharge on water
rates. The Town is divided into two service areas, one being the Circle T Ranch, and the remaining
areas within the Town’s limits which constitute the “Town” service area. The Town pays Hillwood
$.25 cents per 1,000 gallons of water distributed to consumers in these two service areas. Each
service area pays its respective portion of the overall debt based on the volume of water used.
o The contract clearly stipulates that this debt is not a general obligation of the Town. It is, however,
required to be paid back through this assessment being attached to the water rate. The rate
would have to be significantly increased to pay this debt off in the twenty years contemplated
under the agreement.
o Hillwood has stated that once the Town and Hillwood agree on proportionate future infrastructure
funding, this liability will be erased. Nevertheless, the obligation does exist and water rates should
always be reviewed with this obligation in mind.

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