Page 66 - CityofColleyvilleFY25AdoptedBudget

Revenue by Fund

The Utility Fund, which supports both operating and capital activities for the City’s water and wastewater systems, is
primarily funded through charges for services. The revenue projections for FY 2025 have been developed internally,
based on a thorough assessment of operational costs and future capital needs.

Operating Side:
Revenues on the operating side of the Utility Fund are primarily generated by charges for services, which include water
and sewer base rates and volumetric usage charges. For FY 2025, the City increased the xed monthly base rates for
water and wastewater services to ensure that operating costs are fully covered. The base rate for the average customer
with a 1” meter increased by $2.02/month for water and $0.75/month for wastewater. The volumetric rate, which is set
by the Trinity River Authority (TRA), remains a pass-through charge, meaning the expense and revenue for water usage
are equal, resulting in a neutral budget impact.

These revenue adjustments are necessary to address rising operational costs, driven by in ation and increases in
utility-related expenses. The primary objective on the operating side is to ensure suf cient revenue to cover day-to-day
expenses, including maintenance, personnel, and system operations, while maintaining reliable service for customers.

Capital Side:
The capital side of the Utility Fund is funded primarily through a dedicated capital project fee, which is a monthly
charge assessed to all utility customers. This fee, set at $5.83/month in FY 2025, is the sole source of revenue for capital
projects aside from small amounts generated from impact fees. The dedicated capital project fee helps fund critical
infrastructure improvements and system upgrades. Additionally, the City transfers any excess revenues from the
operating side to the capital fund as needed to support ongoing projects.

The City’s ve-year Capital Improvement Plan (CIP) outlines the key water and wastewater capital projects that will be
funded over the next ve years. These projects are necessary to address aging infrastructure, ensure continued system
reliability, and accommodate future growth and demand. As in ation and other factors continue to increase the cost
of capital improvements, the City is committed to continue to cash-fund projects to the greatest extent possible,
minimizing the need for debt.

No external sources or consultants were used to develop these revenue projections, as they are based entirely on
internal analyses of operational and capital needs. The City’s approach to balancing operating costs with long-term
capital investments ensures that Colleyville’s utility infrastructure remains sustainable and resilient.

2025 Revenue by Fund

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City of Colleyville | Budget Book 2025 Page 66