Page 22 - City of Colleyville FY22 Adopted Budget

Expenditures
Utility Fund expenditures total $18,088,176 for the fiscal year 2022 budget. There is
no utility-supported bonded debt obligation, as fiscal year 2018 was the last year of
debt payments for the Utility Fund. The largest component, 77 percent of the fund,
covers the contractual obligation for water and wastewater to the TRA.

DEBT SERVICE FUND

The City budgets for tax-supported debt in the Debt Service Fund. The total fiscal
year 2021 Debt Service Fund expenditure budget is $821,898. This City has been
focused on paying off all outstanding debt and financing all capital needs going
forward with cash.

There is declining debt service in the remaining outstanding debt obligations,
however a refunding of outstanding callable debt that occurred in fiscal year 2016
rolled together TIF debt with General Fund debt, causing total debt service fund
expenditures to increase from fiscal year 2016 to 2017. This is offset by the increased
revenue from the transfer in of funds from the TIF to pay for its fair portion of the
consolidated refunded debt. The TIF portion was paid off in fiscal year 2020.

Furthermore, the city’s bond ratings are evidence of Colleyville’s financial strength.
Currently, all debt obligations of the City are rated AAA by Fitch Ratings and Standard
and Poor’s. In 2009, the City received an upgrade in its general obligation bond rating
from AA+ to AAA from Standard and Poor’s. Strong tax base growth coupled with a
low tax rate, strong financial performance, and substantial cash balances were the
primary reasons for the bond rating. These credit ratings for outstanding debt mean
the City’s bonds are considered to be of superior investment quality, resulting in
lower interest payments for the City.

STORMWATER DRAINAGE UTILITY FUND

In 1993, the City Council adopted a monthly fee assessed on residential and
commercial utility billing accounts for stormwater management. The Stormwater
Drainage Utility Fund supports the operation and maintenance of the City’s drainage
system and complies with federally mandated requirements for stormwater systems.

This fund is designated to maintain streets, sewers, and drainage ditches to manage
runoff from commercial and residential development, including related personnel and
operating costs.

The fund is projected to receive revenues of $1,030,868 in fiscal year 2022, primarily
from the collection of the monthly fee. The final annual debt payment for the
outstanding bonds were paid off in fiscal year 2021, making this fund debt free. The

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