Page 10 - City of Colleyville FY22 Adopted Budget

The City provides a full range of municipal services provided through operating funds
(utilizing taxes, fines, fees and service charges, primarily), special revenue funds
(utilizing sales taxes and hotel taxes), and capital project funds. Whenever possible,
the most restrictive funding source is used first, ultimately limiting the costs borne
by the primarily property tax-supported general fund.

The combined expenditures of the City’s major operating funds are as follows. Note
that there were no changes between the proposed and adopted budgets.

FY 2022 General Utility Drainage Debt Hotel
Proposed Fund Fund Fund Service Tax Fund
Fund

Operating $25,659,689 $18,088,171 $1,030,868 $627,500 $252,500
Revenues

Operating $25,130,144 $18,088,171 $ 694,204 $821,898 $247,822
Expenditures

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, 2021. Additionally, any operating surplus experienced by our
operating funds at the end of the fiscal year will be moved to one of our capital funds
to assist in cash-funding our 5-year capital improvement plan.

Fund Type Number of Amount Capital Transfer
Days FY21 Year-end
General 138 $ 8,984,376 $1,500,000
Utility 119 $5,699,511 $1,278,726
Drainage 259 $ 718,287 $ 221,316
Debt Service 165 $ 857,945
Hotel Tax 323 $ 177,662

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.

10