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Revenues by Source
FY 2025
Adopted
FY 2025 FY 2026
FY 2024 FY 2025 Budget vs. FY
Category Adopted Proposed
Actuals Projected 2026 Proposed
Budget Budget
Budget (%
Change)
Charges for Ser vices
Water Revenue -Base Rate $2,277,212 $2,373,871 $2,392,687 $2,509,730 5.72%
Sewer Revenue -Base Rate $1,682,758 $1,722,064 $1,734,664 $1,885,685 9.50%
T.R. A True -Up $1,449,625 - $1,447,305 - -
Sewer Installation $100 $2,000 - $2,000 0.00%
Water Installation $26,582 $20,000 $31,519 $20,000 0.00%
Water Revenue -Volume
$13,333,796 $16,027,206 $14,533,462 $17,072,779 6.52%
Rate
Sewer Revenue -Volume
$3,998,532 $3,862,562 $4,536,672 $4,956,120 28.31%
Rate
Engineering & Develop
$25,190 - $41,880 - -
Charges
Penalties $198,814 $200,000 $187,657 $200,000 0.00%
Total Charges for Ser vices $22,992,609 $24,207,703 $24,905,846 $26,646,314 10.07%
Miscellaneous Revenue
Gain/Loss On Fixed Asset -$15,854 - - - -
Earned Interest $734,640 $200,000 $487,698 $350,000 75.00%
Miscellaneous $17,371 $17,000 $20,623 $17,000 0.00%
Total Miscellaneous Revenue $736,157 $217,000 $508,321 $367,000 69.12%
Total Revenues $23,728,766 $24,424,703 $25,414,167 $27,013,314 10.60%

The Utility Fund, which suppor ts both operating and capital activities for the City ’s water and wastewater systems, is
primarily funded through charges for ser vices. The revenue projections for FY 2026 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 ser vices, which include water
and sewer base rates and volumetric usage charges. For FY 2026 , the City increased the {xed monthly base rates for water
and wastewater ser vices to ensure that operating costs are fully covered. The base rate for the average customer with a 1”
meter increased by $0.60/month for water and $1.07/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 ser vice 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 2026 , 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 suppor t ongoing projects.

FY 2025-2026 Annual Budget | Colleyville Page 60