Page 71 - Microsoft Word - FY 2021 tax info sheet

FY 2021‐22 Five‐Year Operating Fund Outlook

Changes from the 2 Percent Revenue and 3 Percent Expenditure Growth:

Licenses & Permits and Development Fees – Both revenue types have been trending downward the past
few years as the city reaches buildout, thus limiting development opportunities.

Water Sales & Service and Sewer Sales & Service – Both revenue types are based upon the city’s rate
model. In addition to looking at the adopted budget, the current five‐year Capital Improvements Plan,
percent growth assumptions and anticipated future needs, the city uses a “normalized year” revenue
technique to determine the rate structure needed to cover operational, debt and capital costs.

Drainage Utility Fees – This fee is a flat fee placed on utility bills that was recently decreased to $7 per
month for residential accounts. While the fee is adopted annually, there are no plans at this time to
increase the fee. As a result, any growth would come from future development.

Wholesale Water Sales – The cost of wholesale water purchases has increased significantly over the past
few years, so the outlook and rate model estimate a higher growth in the future.

Debt Service – For the Debt Service Fund, Keller Development Corporation Fund and Keller Crime Control
and Prevention District Fund, the cost shown in the line item reflects the future payments of current debt
obligations, and future debt issuances are reflected in the Future Anticipated Needs line item. For the
Water & Wastewater Fund, both the future payments of current debt obligations and future debt
issuances are reflected in the Debt Service line item and the amount is taken from the city’s rate model.
For all other funds, there are no current debt obligations and any proposed obligations would be reflected
in the Future Anticipated Needs line item.

Transfers to Other Funds – For the General Fund, KDC Fund, Street Maintenance Fund and Drainage Fund,
the transfers to Other Funds reflect the transfers required for recurring CIP and capital maintenance
projects. New projects are reflected in the Future Anticipated Needs line item. For the Water &
Wastewater Fund, the line item reflects both current and future projects and is taken from the city’s rate
model.

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