Page 65 - CityofColleyvilleFY25AdoptedBudget

Commentary on Available Funds
The Utilities Fund began FY 2024 with an available fund balance of $25.1 million and is projected to end the scal year
with $22.7 million. By the end of FY 2025, the fund balance is expected to be $17.6 million. Despite the projected decrease,
the City continues to maintain a healthy operating surplus in both years, driven by stable and reliable revenue sources.

The Utilities Fund’s operating revenue remains very stable and collectable, primarily based on a xed charge structure.
Rates have been increased on the operating side to cover rising costs, but this change does not impact the available fund
balance. Additionally, the TRA-related costs, which can be more volatile due to weather uctuations, are passed through
directly to customers and do not signi cantly affect the fund’s balance.

In line with the City's cash-funding philosophy, signi cant capital projects are budgeted in both FY 2024 and FY 2025,
with $4.4 million and $6.4 million allocated, respectively. These capital expenditures contribute to the projected decrease
in available funds over the two-year period. Even with this drawdown, the City is committed to avoiding debt issuance for
these projects, preferring to use available reserves to cash-fund improvements.

The City maintains a reserve target of 90 days of operating expenses for the Utilities Fund and continues to exceed this
target. It’s important to note that the Utilities Fund combines both operating and capital reserves. As a result, the fund
balance appears larger than in other funds because it includes reserves set aside for future capital projects. These
reserves act as a nancial hedge, ensuring the City can address any sudden, large-scale repairs or replacements needed
to maintain the utility system’s operations without disruption.

By maintaining these larger reserves, the City positions itself to handle unforeseen capital needs while also planning for
future improvements, thereby reinforcing Colleyville’s long-term nancial stability and minimizing the need for future
debt.

Summary

The City of Colleyville is projecting $26.98M of revenue in FY2025, which represents a 12.0% increase over the prior year.
Budgeted expenditures are projected to increase by 6.5% or $1.57M to $25.67M in FY2025.

$30M

$20M

Ac tual Revenue Source
$10M Budgeted Revenue Source
Ac tual Expenditures
Budgeted Expenditures

$0
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 202 4 FY 2025

City of Colleyville | Budget Book 2025 Page 65