Page 18 - CityofBurlesonFY26Budget

Securities, to develop a sound debt management plan for the utility fund. In the future, the city
anticipates annual debt service increasing steadily.

Appropriations for FY25-26 in the debt service fund will total $22,866,805. This represents a 10.1
% increase from the current year’s budget. The increase is based on the estimated cost of
additional debt service for tax-supported debt as well as additional debt service for the 4A
Corporation, the 4B Corporation, and the TIF2 Fund. This summer, the city plans to issue 2025
certificates of obligation bonds and 2025 general obligation bonds which are reflected in the
increase of appropriations.

Water and Sewer Fund The water and sewer fund’s principle source of revenues are charges to
customers for water consumption, wastewater collection, and fees related to providing
consumers with new water and wastewater services. Total fund revenues for FY25-26 are
estimated to increase to $ 31,727,239 (an increase of 5.96%). The continued use of best practices
for the water and sewer utility fund identifies the need for revenue growth to cover existing and
future operations and maintenance costs as well as debt service and contracted water and sewer
costs with the city of Fort Worth.

Water & Sewer Fund Revenues by Source

Revenue Category FY25-26 Adopted % of Total
License, Permit & Fee $20,000 0.06%
Charges For Services $30,092,338 94.85%
Investment Earnings $450,000 1.42%
Impact Fees 1,030,000 3.25%
Miscellaneous $43,922 0.14%

Cost Allocation Rev $44,000 0.14%
Transfer In $46,979 0.15%

The city of Burleson along with other surrounding municipalities’ purchases treated surface
water from the City of Fort Worth. The adopted budget for next year reflects increased
water consumption due to growth and customer demand. Wholesale water rates are
projected to increase to $2.4876 (pending rate adoption by Fort Worth City Council) per 1,000
gallons of water purchased from $2.3612 which would represents a 5.35% increase. Wholesale
sewer treatment rates are projected to decrease to $1.7735 per 1,000 gallons of treated
wastewater from $1.8275 which represents 2.95% decrease.

To appropriately manage the utility fund debt, the city and Hilltop Securities developed a plan to
monitor the debt limits of this fund. The Utility fund will goal the maintain net revenues available
for debt service greater than 1.25 times its outstanding debt service payments, ensuring current
and future debt can be supported.

18