Page 28 - Southlake FY22 Budget

TrAnSMITTAL LETTEr

including debt service – through fees levied for the
services provided. Revenue and expenses related Utility Fund Expenditure Highlights
to garbage service are also accounted for in the
Utility Fund. Highlight Item Expenditure

Revenue highlights. The Utility Fund revenues 2.5% cost of
are projected at $32,608,200 for an increase of living base pay
$1,814,400. This is a 5.9% increase when compared Pay adjustment adjustment;
with the FY 2021 adopted budget. Merit, Market
where
Expenditure highlights. Personnel applicable
0.1% rate
Health insurance
Personnel. The Utility Fund includes resources decrease
needed to manage and operate the City’s utility
system. This fund will cover its portion of employee Dental insurance 1% rate
cost of living adjustments and the increases in decrease
benefit costs as described in the General Fund Enterprise Asset
portion of this letter. Management
System (50%
Other highlights. Funding has been requested Technology
for equipment and facility improvements. A few Infrastructure $120,000
highlights of supplemental requests for the Utility & Security
Fund are shown in the table and are specifically Operations Fund/50% Utility
related to providing water, sewer, and/or garbage Fund)
service.

Total expenditures in the Utility Fund are adopted LTE water meter
at $26,534,778, a 2.8% increase from the FY 2021 transponders $400,000
adopted budget.

Indirect charge/transfers. We have budgeted a
transfer of $1,304,328 from the Utility Fund to the General Fund to cover indirect expenses and for payment
of a franchise fee. A transfer of $8,128,000 to the Capital Improvements Program is also budgeted.

Fund balance. The FY 2022 Adopted Utility Fund budget provides 288 days of working capital, or $20,960,264.
This exceeds the City’s fund balance policy for the Utility Fund, which states that the “…goal shall be to
maintain a fund balance of 60 days of working capital in the Utility Fund…with the optimum goal of 90 days
of working capital.”

Most of the items included in the FY 2022 Adopted Utility Fund Budget address the focus
area of Infrastructure.

BUDGET BOOK | FY 2022 City of Southlake 27
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