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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)
Non-Depar tmental
Contractual Ser vices $265,471 $318,187 $273,250 $318,187 0.00%
Supplies $100 $1,000 - $1,000 0.00%
Transfer to Other Funds $2,794,495 $1,250,000 $1,250,000 - -100.00%
Total Non-Depar tmental $3,060,066 $1,569,187 $1,523,250 $319,187 -79.66%
Merit Pool
Debt Ser vice $9,342 - - - -
Total Merit Pool $9,342 - - - -
Total Expenditures $25,915,219 $25,674,646 $25,643,154 $26,855,702 4.60%

The Utility Fund is used exclusively for water and wastewater/sewer-related expenses, covering operational costs, water
purchased from the Trinity River Authority (TRA), wastewater processing costs, and utility billing. For FY 2026 , several key
factors have in|uenced changes in budgeted expenditures compared to the prior year.

Personnel Ser vices:
Personnel expenses have increased due to the same factors impacting the General Fund, including a 3.5% merit-based
salary increase and rising health insurance premiums (up 7.5%) and dental insurance premiums (up 9.7%).

Contrac tual Ser vices:
Approximately 80% of the Utility Fund’s total expenditures are related to pass- through costs for water purchased from the
Trinity River Authority (TRA) and wastewater processed by TRA . These costs are always at cost , and the City does not
generate pro{t from this por tion of its operations. The expenses are matched with revenue collected from volumetric
usage charges, ensuring a balance between cost and revenue for these ser vices.

Supplies:
Costs related to supplies have increased, primarily due to in|ation in chemical prices required for water treatment and
other operational needs. Additionally, utility expenses such as electricity and gas have risen, contributing to higher overall
supply costs. These increases have been factored into the FY 2026 budget to ensure the continued reliability of water and
wastewater ser vices.

Transfers to the General Fund:
The Utility Fund includes a transfer to the General Fund to cover administrative ser vices provided by General Fund
depar tments, such as HR, IT, and Finance. This expense remains consistent with the prior year.

Transfers to the Capital Fund:
Transfers from the operating side of the Utility Fund to the capital fund have been adjusted in FY 2026 based on the City ’s
ability to transfer and the need for capital investments. These transfers are used to suppor t capital improvements in the
City ’s water and wastewater infrastructure, aligning with the long- term Capital Improvement Plan (CIP). The capital
budgets themselves are not re|ected in the operating numbers but are par t of the {ve -year capital plan.

FY 2025-2026 Annual Budget | Colleyville Page 62