Page 15 - CityofBurlesonFY25AdoptedBudget

Utility Rates

The city of Burleson has continued its implementation of rate recommendations that align with
the city council’s commitment to establishing reserves, performing appropriate maintenance,
and funding a capital replacement and improvement program. These efforts are aimed at
enhancing revenues and ensuring the long-term sustainability of the city's water and
wastewater utility systems. Staff hired a rate consultant to evaluate the city’s utility system’s
operation costs, debt service payments, and future capital needs for infrastructure
improvements and to recommend any rate adjustments that would be necessary to fully fund

the cost of operating our system while maintaining an adequate financial reserve. The
recommended rate adjustments in FY 2024-2025 will be for both residential and commercial
water and sewer customers. The recommended residential increase ranges from 5.9% to 6.6%
depending on the amount of water consumed (i.e., 5.9% for customers above 5,000 gallons,
6.2% for customers above 10,000 gallons, and 6.6% for customers above 30,000 gallons). The
city will continue to re-evaluate the rate plan every year.

The city is approaching the annual renewal for solid waste collection and recycling services with

Waste Connections. Staff has reviewed the annual rate adjustment as outlined in the franchise
agreement with Waste Connections as it relates to CPI, fuel, and disposal rate adjustments. The
proposed solid waste rate increase is 4.06%.

Budget Funds Summary

General Fund The FY 2024-2025 proposed budget, as presented, is based on using the
current tax rate of $0.6627 per $100 of assessed value. The no-new-revenue tax rate, that is
the rate that would generate the same amount of property tax revenues next year from the
same taxed properties in FY 2023-2024, is $0.6239 per $100 of assessed value. The voter-
approval tax rate calculation allows municipalities to raise 103.5 percent of the prior year’s
operating and maintenance money, plus the necessary debt rate. The voter-approval tax rate
is $0.6627 per $100 of assessed value. This includes the use of the unused increment of $0.0160
per $100 of assessed value. Each additional penny of the tax rate generates approximately
$544,977 in property tax revenue.

The audited fund balance at the end of FY 2022-2023 was $18,465,600. The revised fund
balance prior to the final audit for FY 2023-2024 is expected to decrease by $2,184,862 to

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