Page 74 - CityofColleyvilleFY25AdoptedBudget

The Drainage Fund is classi ed as a proprietar y enterprise fund, speci cally
dedicated to managing the nancial activities related to the City’s stormwater
management and drainage systems. The primary purpose of the Drainage Fund is to
ensure the effective maintenance, operation, and improvement of Colleyville’s
drainage infrastructure, which is essential for protecting property and public safety
from ooding and erosion.

The fund is not considered a major fund, as its revenues and expenditures do not
Drainage Fee constitute more than 10% of the City’s appropriated budget. Revenue for the
Drainage Fund is generated through user fees assessed on residential and non-
Fund
residential properties, which are calculated based on the impervious surface area
contributing to stormwater runoff. These fees are speci cally allocated to cover the
costs associated with maintaining and improving the City’s drainage system,
including capital projects, operations, and necessary repairs.

The fund ensures that the City can proactively address drainage issues and invest in
necessary infrastructure upgrades, supporting Colleyville’s commitment to a safe and
well-maintained environment.

Fund Summary

Commentary on Available Funds
The Drainage Fund began FY 2024 with an available balance of $2.5 million and is projected to end the year with $2.1
million. By the end of FY 2025, the fund balance is expected to decrease to $822k. This reduction is largely due to
signi cant capital expenditures planned for both FY 2024 and FY 2025, totaling $1.2 million and $2.3 million, respectively.

The sole source of revenue for the Drainage Fund is the drainage fee, which was increased by $2 for the average resident
as part of a three-year plan to build up reserves for future capital projects. This fee has been intentionally set higher than
the operating expenses to generate an operating surplus and build available funds on the capital side. While the fund
maintains an operating surplus, the available funds balance is expected to decrease due to the planned capital
expenditures in FY 2024 and FY 2025.

Despite the reduction in available funds, the fund balance remains above the City’s target reserve requirement of 90 days
of operating expenses for both FY 2024 and FY 2025. The City continues to build up cash reserves to avoid debt nancing
and cash-fund future large-scale drainage projects, which are typically expensive and require signi cant planning.

Similar to other City funds, the Drainage Fund follows a 90-day operating reserve target. However, because this fund is
relatively new, the available balance is still in the process of being built up. The drainage fee, which is tied to customer
water bills, provides a stable and collectable source of revenue, ensuring consistent income to meet both operating and
capital needs in the future.

City of Colleyville | Budget Book 2025 Page 74