Page 137 - CITY OF AZLE, TEXAS

UTILITY FUND – IN BRIEF

REVENUES

Total Utility Fund revenues of $10,249,100 are projected for FY 2024-25. This reflects a
decrease of $719,536 (6.56%) as compared to the FY 2023-24 budget. This decrease is the
result of a change in how the City’s commercial solid waste disposal customers are billed for
service – these accounts are now billed directly by the provider rather than the City. There are
no increases to the City’s water or wastewater rates included in this budget. A transfer of
$95,754 from the Golf Course Fund is budgeted and completes the process of paying down an
outstanding advance from prior fiscal years.

The graphs below show the growth in the number of customer accounts from FY 2020-21 to the
FY 2024-25 projection.

EXPENSES

Total expenses for the Utility Fund are projected at $9,334,355 which is $1,075,207 (10.3%)
less than the adopted FY 2023-24 budget. The is due in large part to the commercial solid
waste billing change mentioned above and a reduction in planned capital purchases. Funding
for employee step increases, a 5% market adjustment to the City’s pay plan, and anticipated
increases in health and dental insurance are included in this budget. 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 $1,005,246 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 $450,000 is also included in this
budget for the FM 730 Elevated Water Storage Tank Rehab Project.

The projected ending working capital in the Utility Fund is $3,703,497, which is a decrease
$444,747 (10.72%), but still 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 2024-2025 Budget 126