Page 135 - CITY OF AZLE, TEXAS

UTILITY FUND – IN BRIEF

REVENUES

Total Utility Fund revenues of $9,892,562 are projected for FY 2022-23. This reflects an
increase of $543,134 (5.8%) over the FY 2021-22 budget. This increase is based on historical
consumption and actual/projected growth in the City’s customer base. There are no increases
to water or wastewater rates included in this budget. A transfer of $90,000 from the Golf Course
Fund is budgeted to continue the process of paying down an outstanding advance in the
amount of of $275,753.

The graphs below show the growth in the number of customer accounts from FY 2018-19 to the
FY 2022-23 projection.

EXPENSES

Total expenses for the Utility Fund are projected at $9,440,817 which is $785,649 (9.1%) more
than the adopted FY 2021-22 budget. The is due in large part to increases in the personnel
services and maintenance categories. Included in these categories are increases for step
raises, a new Water Plant Operator position and Wastewater Plant Operator position, and
anticipated increases in health and dental insurance. An update to the City’s compensation plan
was implemented in July 2022 and funding to support the update is included in this budget. In
addition to these increases, the employee contribution rate to the City’s retirement plan with the
Texas Municipal Retirement System will increase from 6% to 7% with the City continuing to
match the employee contribution at a rate of 2 to 1 effective January 1, 2023. Major
maintenance projects include the continued slip lining of sewer lines in the Shoreline Drive area
and the continued addition of wastewater lift stations to the City’s SCADA system.

A transfer to the General Fund in the amount of $812,978 is also included in this budget to
cover costs associated with the administration of the Utility Fund that are accounted for in the
General Fund.

The projected ending working capital in the Utility Fund is $3,925,213, which is a decrease
$271,233 (6.5%), and exceeds the City’s stated goal of maintaining reserves of at least four
months of operating expenses.

City of Azle FY 2022-2023 Budget 124