Page 23 - FY 24 Budget Forecast at Adoption.xlsx

Goal 3: Demonstrate Fiscal Discipline

Strategy 3.1: Maintain Conservative Budgets that Prioritize Spending Where it Matters Most

The total FY 2023‐24 Adopted Operating Revenue Budget is $102,766,933, an increase of
$4,570,706 or 4.7% from the current budget, and the expenditure budget is $109,204,129 — an
increase of $506,040 or 0.47%. Given rising inflation, supply‐chain disruptions and high fuel costs,
the increase of only 0.47% in expenditures for FY 2023‐24 compared to FY 2022‐23 speaks to the
conservative spending approach embraced by staff and City Council.

The budget changes to the two major operating funds are briefly discussed below, and a more
detailed discussion of all fund changes can be found in the Statistical Analysis section of the
budget.

General Fund

The adopted General Fund budget is $44,350,725, a decrease of $2,158,962 compared to the
current year. However, excluding one‐time expenditures in both years, this year's General Fund
budget represents an increase of $1,667,267, or 4.2%, from FY 2022‐23. Included in the General
Fund are proposed one‐time expenditures totaling $2,666,971. Significant one‐time
expenditures include $700,000 for pavement markings, $580,000 for Old Town Keller East
reconstruction, $512,500 for Mt. Gilead Road reconstruction, $240,000 for a replacement dump
truck, and $200,000 for signal modifications. Cash funding one‐time projects in the General Fund
allows the city to meet current service demands, including capital maintenance needs, without
issuing debt.
Another significant change to ongoing expenditures is related to personnel, with compensation
increases, new positions and reorganizations accounting for $1,191,632. Personnel changes are
also discussed under Goal 5.

Water and Wastewater
The adopted Water and Wastewater Fund budget shows a decrease of $617,161, or 2%,
compared to FY 2022‐23. That total includes contracts for water purchases from the City of Fort
Worth and wastewater treatment and collection services from the Trinity River Authority. These
two contracts combined total $14,597,857 — 48.8% of the Water and Wastewater Fund budget.

Both contracts will change in FY 2023‐24, which will be reflected in the pass‐thru portion of
customers' rates. The adopted budget and pass‐thru rates reflect a 4% decrease from Fort Worth
and a 14.5% increase from TRA. The city water and wastewater rates will adjust by ‐2% and 8.5%,
respectively.

An average monthly water bill, then, is expected to decrease by $2.11 per month in the year
ahead, and the wastewater bill would increase by $4.70. Combined, the average utility
customer's monthly bill will see a total monthly increase of about $2.59 or 1.63%.

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