Page 166 - CityofHaltomFY23Budget

CITY OF HALTOM CITY ANNUAL BUDGET, FY2023 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 water 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 but was not implemented
until the fall of 2022. For FY2024 to FY2026, water rates are projected to increase 3% per year
and sewer rates are projected to increase 5% per year. The new tiered-rate structure will allow
citizens that use less water to pay less and has kept increases at a minimum. 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 2023 remains the same for both residential
properties and commercial property units. The rates will not be adjusted until a new study is
performed. We plan to budget for a new study in a future budget to determine the proper rate
needed for additional capital projects.

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

REVENUES $24,383,200 $26,333,856 $28,967,242 $29,981,095 $31,030,433
Percent increase/(decrease) from previous year 8.4% 8.0% 10.0% 3.5% 3.5%

EXPENDITURES $31,237,607 $27,585,474 $28,550,966 $29,550,249 $30,584,508
Percent increase/(decrease) from previous year 15.4% -11.7% 3.5% 3.5% 3.5%

Revenues Over/(Under) Expenditures (6,854,407) (1,251,618) 416,276 430,846 445,925

ENDING FUND BALANCE $8,450,241 $7,198,623 $7,614,899 $8,045,745 $8,491,670

Fund Balance Target (20% Expenditures) $6,247,521 $5,517,095 $5,710,193 $5,910,050 $6,116,902

Percent of current year Expenditures 27% 26% 27% 27% 28%