Page 18 - Keller Budget FY21

Looking ahead, the city’s Capital Improvements Five‐Year Plan forecasts $66.0 million in city capital
expenditures over the next five years and anticipates issuing $33.1 million in debt, or 50.2%. The proposed
debt includes the issuance of up to $15 million for the Old Town Keller East/Bates Street project.

This year’s proposal is an operationally balanced budget with ongoing revenue exceeding both ongoing
expenditures and one‐time expenditures. The adopted budget shows overall expenditures exceeding
revenues by $146,050, and the adopted budget shows General Fund revenues exceeding expenditures by
$91,529. However, a few funds will be cash funding one‐time projects through the use of fund balance.
The funds are still considered operationally balanced as ongoing revenues meet or exceed ongoing
expenditures. Below is a list of one‐time, cash‐funded projects and their associated funding source:

 Shady Grove Reconstruction (Keller‐Smithfield to Smithfield Road) ‐ $1,000,000 from the
General Fund

 Bar Ditch Maintenance ‐ $830,000 from the General Fund

 Sidewalk Extensions & Repairs ‐ $131,865 from the General Fund
 Keller Sports Park Parking Lot Improvements (baseball lot) ‐ $600,000 from Keller Development
Corporation Fund

 Bear Creek Park Pond Dredging ‐ $215,000 from the Keller Development Corporation Fund

 Bursey Ranch Playground Replacement ‐ $100,000 from the Keller Development Corporation
Fund

 Highway 377 12” Water Lines ‐ $133,905 from the Water and Wastewater Fund

 Water Tank Maintenance ‐ $600,000 from the Water and Wastewater Fund

 Water Supervisory Control and Data Acquisition (SCADA) system ‐ $540,000 from the Water and
Wastewater Fund

 Drainage Master Plan ‐ $200,000 from the Drainage Fund

 Nightingale Culvert (Year 2 funding) ‐ $368,000 from the Drainage Fund

While a significant portion of the FY 2020‐21 capital investment is cash funded, the city plans to issue debt
related to the 2021 SWIFT project. In FY 2015‐16, the city was approved to receive low‐interest loans
through the Texas Water Development Board totaling $12,180,000 issued in three intervals that started
in FY 2016‐17. These funds are being used to implement improved water management strategies,
including the replacement of approximately 12 miles of deficient system pipe and 1,600 deficient water
services that are more than 40 years old, composed of obsolete material, and are experiencing more leaks
and breaks. The next two rounds of funding will be in FY 2020‐21 and FY 2023‐24.

Debt issuances on the horizon can be found in the city’s five‐year Capital Improvements Plan. These
include debt for the Old Town Keller East/Bates Street projects in FY 2022‐23 and FY 2023‐24, and for the
Whitley Road Reconstruction project in FY 2023‐24. The full scope of these projects is still to be
determined, but should include reconstruction of the roads and drainage improvements.

16