Page 55 - N. Richland Hills General Budget

BUDGET OVERVIEW

Utility Fund

FY 19/20 Adopted FY 19/20 Revised FY 20/21 Adopted

Revenue $38,233,116 $37,823,529 $38,466,058

Expenditures $38,233,116 $37,823,529 $38,466,058
Balance $0 $0 $0

FY 2019/2020 Revised Budget

Revised Revenues in the Utility Fund are down ($409,587) or (1.1%) compared to the FY
2019/2020 Adopted budget. The bulk of the anticipated shortfall in revenues is in water sales
($391,949) and sewer treatment fee collections ($245,729). Both revenue sources are projected
to fall short from the anticipated performance in the adopted budget in part due to commercial
closures related to the COVID-19 pandemic. A portion of the anticipated losses from these major
revenue sources will be offset by the annual settle-up payments from The Trinity River Authority
in amount of $320,263 in water and $33,699 in sewer. Late charges are expected to fall short
from the adopted budget by ($101,889) due to the temporary moratorium put in place on this fee
as part of the response to the COVID-19 pandemic. Additionally, interest income is expected to
come in short ($40,231) from the adopted budget due to the performance of city investments this
fiscal year from impacts on the market caused the COVID-19 pandemic. A revision of $15,920
was included in the fund for the annual encumbrance roll.

Overall, revised expenditures are projected to be ($409,587) less than what was included in the
FY 2019/2020 Adopted Budget. A revision of $15,920 was added for the annual encumbrance
roll. Other mid-year revisions include reductions totaling ($425,507), which includes a cut of
($123,103) in operational expenses, a net reduction in water purchase and sewer treatment
expense of ($236,939) and a reduction in planned contributions to reserves by ($65,465). The
fund is anticipated to end the fiscal year in balance.

FY 2020/2021 Adopted Budget

FY 2020/2021 revenues total $38,466,058 and reflects an increase of $232,942 or 0.6%
above the FY 2019/2020 Adopted Budget. Water sales and charges generated from the
North Richland Hills system for FY 2020/2021 are projected to be $24,626,006, which
reflects as flat with the FY 2012/2020 Adopted Budget. Sewer sales and charges are projected
to be $12,980,850, which is an increase of $283,554 or 2.2% over adopted FY 2019/2020.
This increase is due to a higher anticipated winter average. Gallons of water sold and treated
were conservatively estimated based on a four-year average of actual performance. Interest
income is expected to drop ($63,000) from the adopted budget based on the forecasted
performance of city investments. No utility fee adjustments were included in FY 2020/2021
Proposed budget.

FY 2020/2021 expenses total $38,466,058 which is an increase of $232,942 from

2019/2020. Significant changes include an anticipated net drop in costs for water
purchase and sewer treatment expenses based on anticipated rates and estimated

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