Page 205 - HurstFY23AnnualBudget

APPROVED BUDGET FISCAL YEAR 2022-2023

ENTERPRISE FUND DISTRIBUTION OF REVENUES

Water Sales
62%

Interest Earnings
1%
Sewer Charges
Penalties 33%
1%

Other Cities
Wastewater
3%

The Enterprise Fund Distribution of Revenues chart shows the distribution of Enterprise Fund
revenues by percentage. Water sales and wastewater charges to City residents and businesses
are the major sources of revenues. Each year the City reviews its rate structure to ensure that
rates will generate the required revenues to operate and maintain our water and sewer
infrastructure. Recent rate increases are primarily caused by increased costs related to the City’s
purchase of treated water and wastewater treatment services (wholesale costs); however, this
impact is partially offset by revenues generated from penalties billed for late payments and
interest earnings collected on investments. Increases in wholesale costs have been adequately
covered. Additionally, the City of Hurst continues to follow a “rate smoothing” policy related to
retail water and wastewater rates. This policy encourages small rate increases each year to avoid
large rate increases in a single year. The average rate increase over the past 10 years has been
approximately 2.5% and Council approved a 3% increase for FY 23. During FY 21 the Council
approved no change in utility rates to help mitigate the economic impact of the pandemic upon
our utility customers.

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