Page 135 - CITY OF AZLE, TEXAS

UTILITY FUND – IN BRIEF

REVENUES

Total Utility Fund revenues of $10,968,636 are projected for FY 2023-24. This reflects an
increase of $1,076,074 (10.9%) over the FY 2022-23 budget. This increase is based on
historical consumption and actual/projected growth in the City’s customer base. There are no
increases to the City’s 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 $185,754.

The graphs below show the growth in the number of customer accounts from FY 2019-20 to the
FY 2023-24 projection.

EXPENSES

Total expenses for the Utility Fund are projected at $10,409,562 which is $968,745 (10.3%)
more than the adopted FY 2022-23 budget. The is due in large part to increases across most
expense categories with the largest in Capital Outlay. Included in these categories are
increases for employee step increases, a 5% market adjustment to the City’s pay plan,
anticipated increases in health and dental insurance, and the purchase of a new vacuum truck
for the Utility Maintenance Department at an estimated cost of $550,000. 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 $903,798 will cover costs associated with the
administration of the Utility Fund that are accounted for in the General Fund. A transfer to the
Water and Sewer Capital Projects Fund in the amount of $600,000 is also included in this
budget and will cover a portion of the Walnut Creek Force Main Upgrade project.

The projected ending working capital in the Utility Fund is $4,030,948, which is a decrease
$854,724 (17.5%), and exceeds the City’s stated goal of maintaining reserves of at least four
months of operating expenses. The decrease is not expected to negatively impact Utility Fund
operations.

City of Azle FY 2023-2024 Budget 124