Page 166 - Haltom City FY 22 Budget

CITY OF HALTOM CITY ANNUAL BUDGET, FY2022 Supplemental Information

MULTI-YEAR FINANCIAL OUTLOOK
Water and Sewer Fund

The Water and Sewer Fund generates the greatest portion of the Charges for Services realized by
the City. The City projects costs of services provided by Fort Worth Water as well as the ongoing
pressures upon the cost of service for personnel, operating costs, and capital projects. Rates are
projected forward as estimates of the cost of meeting service requirements and other obligations.
The City has spent the last three years working with a firm to redevelop and restructure our water
and sewer rates moving forward. The new rate structure will be tiered rates rather than flat rates.
The study was completed in the Fall of 2021 and will be implemented in the Spring of 2022.
For FY2023 to FY2026, water rates are projected to increase 3% per year and sewer rates are
projected to increase 5% per year. The cost of water and sewer from our supplier (The City of Fort
Worth) plays an important role in increases or decreases of the rates. Expenses for operations
will be adjusted in conjunction with revenue projections. Capital improvement projects will also
depend on the revenues available for those projects.

Rates supporting the Drainage Utility for Fiscal Year 2022 is at $6.81 per residential unit and
$56.63 per acre for commercial properties. The rates will not be adjusted until a new study is
performed. We plan to budget for a new study in FY 2023 to determine the proper rate needed
for the capital projects to be completed.

MULTI-YEAR FINANCIAL OUTLOOK
WATER AND SEWER FUND
Budgeted Projected Projected Projected Projected
2022 2023 2024 2025 2026

REVENUES $23,952,200 $24,790,527 $25,658,195 $26,556,232 $27,485,700
Percent increase/(decrease) from previous year 6.5% 3.5% 3.5% 3.5% 3.5%

EXPENDITURES $30,786,471 $24,790,527 $25,658,195 $26,556,232 $27,485,700
Percent increase/(decrease) from previous year 12.9% -19.5% 3.5% 3.5% 3.5%

ENDING FUND BALANCE $1,388,561 $1,388,561 $1,388,561 $1,388,561 $1,388,561

Fund Balance Target (20% Expenditures) $6,157,294 $4,958,105 $5,131,639 $5,311,246 $5,497,140

Percent of current year Expenditures 5% 6% 5% 5% 5%