Page 9 - Colleyville FY21 Budget

FY 2020 Ending Position

One measure of a City’s financial strength is its level of reserves. While the City
Council has approved a conservative fiscal policy of a 90-day reserve requirement,
the City’s operating funds are projected to exceed the minimum requirement as of
September 30, 2020. A breakdown of projected revenues, costs, transfers, and
ending balance for our operating funds is as follows:

Debt
FY20 *General Utility *Drainage *Hotel Tax
Service
Beg. Balance $9,102,499 $5,873,267 $718,286 $844,866 $499,574
Revenue $26,753,982 $16,418,116 $1,034,662 $1,517,533 $117,877
Expenses $23,245,125 $15,154,409 $691,758 $1,236,398 $218,484
Ending Balance $12,611,356 $7,136,974 $1,061,190 $1,126,001 $398,967
Transfer to Capital $4,875,857 $1,263,708 $467,904 $0 $0

New Ending Balance $7,735,499 $5,873,266 $593,286 $1,126,001 $398,967
% Decrease Beg. to -15% 0% -17% 33% -20%
End
*Decreases to these operating funds can be attributed to excess fund balance being transferred to
capital funds and/or non-recurring capital costs, as is the case with the Hotel Tax Fund.

These reserves earn interest, bolster cash flow, and are available for unanticipated
expenditures or emergencies. As a non-recurring revenue source, beginning fund
balances are used to fund capital or other one-time expenses only. The City Council
has provided direction to maintain at least a 100-day operating reserve in the General
Fund and Utility Fund, with any excess reserves or operating surpluses transferred to
the Capital Projects Fund and Utility Capital Projects Fund, respectively, to be used
for capital projects. The Drainage Fund and Debt Service Fund carry higher reserve
levels, with those reserves occasionally drawn upon to cash fund a drainage capital
project or down payment on the lease-purchase of vehicles and major apparatus.

9