Page 16 - CityofBurlesonFY25AdoptedBudget

$17,421,851. The decrease to fund balance is smaller than original $3,171,506 planned deficit
due to mid-year adjustments which were comprised the utilization of gas well royalties to offset

the one-time capital expenditure for the city hall remodel and renovation. Additionally, staff
re-evaluated the cash funding of various capital projects and shifted to issuing debt, allowing
to the continued preservation of a strong fund balance over the next five years.

The target reserve level (fund balance) is set at 20% (or 73 days) to 25% (or 90 days) of total
appropriations. The target fund balance is based on a city’s financial policy requirement. Budget
estimates project fund balance to be at 28.76% at the end of FY 2024-2025.

At the end of FY 2024-2025, the projected total fund balance reflects an increase of $774,908
to $18,196,759. The city continues to focus on utilizing recurring revenues to fund
enhancements with a one-time cost, rather than funding items with a recurring cost. This
practice allows the city to gain these dollars back in future years to be utilized in a similar
manner.

General Fund Revenues For the FY 2024-2025, general fund revenues are expected to total
$64,042,836 which is an increase of 10.42% over the previous year’s amended budget. This
additional revenue is from increased property and sales tax, franchise fees, and transfers in.
The growth of this fund is largely the result of continuing residential and commercial

development and population growth in Burleson. It is the city’s preference to take a
conservative approach in budgeting these major revenue sources.

Sales taxes have remained higher than projected for several years. In the past, the city has

conservatively forecasted the sales tax revenues. To take a conservative approach, the
proposed budget reflects 3% growth from FY 2023-2024 year-end projected sales tax receipts.
The general fund is projecting sales tax revenue of $15,287,678 for FY 2024-2025.

License, fees and permits revenues are projected at $1,554,968. This is less than the prior year’s
collections due to conservative growth estimates for residential permits. FY 2024-2025 budget
still reflects steady new residential and non-residential construction. It is assumed the city will
issue at least 215 new residential permits in the coming year.

Licenses and franchise fees are projected to rise with population. Municipal court fines are
projected to remain steady in FY 2024-2025.

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