Page 76 - CityofColleyvilleFY25AdoptedBudget

Revenue by Fund

The Drainage Fund is supported by both operating and capital components. The primary revenue source for the fund
is the drainage fee, which is billed as part of the City’s utility billing system, ensuring stable and consistent revenue
collection. For FY 2025, the City implemented a $2 per month increase for residential properties, raising the rate from
$10 to $12. This increase is part of a broader, multi-year plan designed to build suf cient funds for large capital projects,
with an additional $2 increase scheduled for next year. Non-residential rates have also been adjusted as part of this
plan.

Operating Side:
The operating side of the fund is exclusively funded by the drainage fee. This fee is intentionally set higher than the
immediate operating expenses in order to accumulate reserves that can be transferred to the capital side for future
infrastructure investments. Revenue from penalties and investment income (interest) is minimal and does not
signi cantly contribute to the overall revenue, though it is still included as a small supplementary source.

Capital Side:
The capital side of the Drainage Fund is entirely dependent on transfers from the operating side. There is no dedicated
revenue stream for capital projects, meaning that the City relies on building reserves through operating revenue to
cash-fund future capital projects. The drainage fee structure is designed to ensure that the City can fund these
necessary improvements without taking on additional debt.

As the City approaches build-out, the customer base for the drainage fee will remain stable, with little to no growth
anticipated. The drainage fee itself is highly collectable, given that it is incorporated into the utility billing system,
ensuring reliable revenue streams for both operating needs and capital investments.

2025 Revenue by Fund

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t

F
s

c
o
o
r
r
e
e
j
j
3
3
(
(
%
%
8
8

u
n
F
u
d

n
d
P
a
g
n
a
e

g
e
n
r
r
Drainage Capital Projects Fund (38%) ) )
D D
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i
a
a

a
l
t
a

P
l

t
a
a
C
C
i
i
p
p
u
u
n
d
n
F
e
e

F

2
6
2
%
%
6

d

(
(
i
i
n
a
n
r
D D Drainage Fee Fund (62%) ) )
r
a
a
a
F

F
e
e
g
g
e

e
City of Colleyville | Budget Book 2025 Page 76