Page 15 - CityofBurlesonFY26Budget

both residential and commercial water and sewer customers. The recommended increase is 5%.
The city will continue to re-evaluate the rate plan every year.

The city is approaching the annual renewal for solid waste collection and recycling services with
Waste Connections. Staff has reviewed the annual rate adjustment as outlined in the franchise
agreement with Waste Connections as it relates to CPI, fuel, and disposal rate adjustments.
The adopted solid waste rate increase is 4.00%.

Major Funds Budget Summary

General Fund The FY25-26 adopted budget, as presented, is based on using the adopted tax
rate of $0.7218 per $100 of assessed value. The no-new-revenue tax rate, that is the rate
that would generate the same amount of property tax revenues next year from the same
taxed properties in FY24-25, is $0.6591 per $100 of assessed value. The voter-approval
tax rate calculation allows municipalities to raise 103.5 percent of the prior year’s
operating and maintenance money, plus the necessary debt rate. The voter-approval tax
rate is $0.7218 per $100 of assessed value. This includes the use of the unused increment of
$0.0047 per $100 of assessed value. Each additional penny of the tax rate generates
approximately $558,474 in property tax revenue.

The audited fund balance at the end of F23-24 was $20,358,733. The revised fund balance prior
to the final audit for FY24-25 is expected to increase by $476,207 to $20,834,940. The increase
to fund balance is smaller than the original $774,908 planned increase due to mid-year
adjustments which is primarily comprised of a Street and Stormwater fee study, legal settlements
and re-wiring of city maintained overhead lights along Wilshire. Additionally, the city previously
re-evaluated the cash funding of various capital projects and shifted to issuing debt, allowing for
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 32.91% at the end of FY25-26.

At the end of FY25-26, the projected total fund balance reflects an increase of $211,873 to
$21,046,814. 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 FY25-26, general fund revenues are expected to total
$64,168,659 which is an increase of 0.2% over the previous year’s amended budget. This
increased revenue is primarily a result of the adopted tax rate. The growth of this fund is largely
the result of continuing residential and commercial development and population growth in

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