Page 63 - PowerPoint Presentation

UTILITY FUND 500 OVERVIEW

The Utility Fund accounts for the acquisition, operation, and maintenance of water, sewer, and trash
services. This fund is primarily supported by service charges to utility (water and sewer) customers.
The intent of this fund is for the direct beneficiaries to pay for all costs of the fund, including debt
service for utility system improvement bonds, through fees for service.

FUND HIGHLIGHTS

REVENUE
Budgeted to be $5,712,891. This is a 1% decrease of $42,277 from the prior year revised. The decrease
in revenue is a result of the following:
 Charge for Service revenue is projected to decrease by $121,677. Utility rates for water will
remain the same while sewer rates are proposed to increase in January 2022 due to
underperforming sewer revenue per rate study from an independent rate analyst.
 Permits & Fees – Utility revenue is projected to increase by $74,400. This change in revenue is
due to the Trinity River Authority wastewater settle-up and duct bank permit fees.
 Investment Earnings are projected to increase $5,000 due to new interest rates.
 Miscellaneous income is projected to stay consistent due to cross connection fees.

EXPENSES
Budgeted to be $5,989,442. This is a 20% increase of $990,673 from prior year revised. The increase in
expenses is a result of the following:
 Increase of $732K from prior year revised for anticipated debt service payments due to
Hillwood Contract.
 Increased rent and utilities for town hall ($2,969).
 $7,000 decrease in water, sewer, and pump station repair costs.
 $200,412 increase in transfers out. This includes: $5K to the Utility Vehicle Maintenance and
Replacement Fund 505, decrease of $124K to the General Fund for Impact Fees, and $320K to
Utility Maintenance and Replacement Fund 510.

WORKING CAPITAL
The Utility Fund is projected to have an ending working capital of $5,910,023. This is a 4% decrease of
$276,551 from prior year revised.

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