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Drainage Fund Summar y
FY 2025
Adopted
FY 2025 FY 2026 Budget vs.
FY 2024 FY 2025
Category Adopted Proposed FY 2026
Ac tuals Projec ted
Budget Budget Proposed
Budget (%
Change)
Beginning Fund Balance $837,013 $837,429 $837,429 $894,993 6.87%
Revenues
Charges for Ser vices $1,475,121 $1,743,000 $1,751,610 $2,031,000 16.52%
Miscellaneous Revenue $38,092 $15,000 $43,671 $30,000 100.00%
$1,513,213 $1,758,000 $1,795,281 $2,061,000 17.24%
Total Revenues
Expenditures
$562,617 $603,035 $548,396 $631,714 4.76%
Personnel Ser vices
$123,474 $113,457 $110,752 $117,010 3.13%
Contractual Ser vices
$56,229 $45,313 $76,718 $46,063 1.66%
Supplies
- - $1,851 - -
Capital Outlay
$770,477 $1,000,000 $1,000,000 $1,200,000 20.00%
Transfer to Other Funds
Total Expenditures $1,512,797 $1,761,805 $1,737,717 $1,994,787 13.22%
Total Revenues Less Expenditures $416 -$3,805 $57,564 $66,213 -1,840.16%
$837,429 $833,624 $894,993 $961,206 15.30%
Ending Fund Balance
The Drainage Fund began FY 2025 with an available balance of $837 thousand and is projected to end the year with $895
thousand. By the end of FY 2026 , the fund balance is expected to increase to $961 thousand. This includes signi{cant
capital transfers planned for both FY 2025 and FY 2026 , totaling $1.0 million and $1. 2 million, respectively.

The sole source of revenue for the Drainage Fund is the drainage fee, which was increased by $2 for the average resident
as par t of a three -year plan to build up reser ves for future capital projects. This fee has been intentionally set higher than
the operating expenses to generate an operating surplus and build available funds on the capital side. While the fund
maintains an operating surplus, the available funds balance is expected to decrease due to the planned capital
expenditures in FY 2025 and FY 2026 .

The fund balance remains above the City ’s target reser ve requirement of 90 days of operating expenses for both FY 2025
and FY 2026 . The City continues to build up cash reser ves to avoid debt {nancing and cash-fund future large -scale
drainage projects, which are typically expensive and require signi{cant planning.

Similar to other City funds, the Drainage Fund follows a 90- day operating reser ve target . However, because this fund is
relatively new, the available balance is still in the process of being built up. The drainage fee, which is tied to customer
water bills, provides a stable and collectible source of revenue, ensuring consistent income to meet both operating and
capital needs in the future.

FY 2025-2026 Annual Budget | Colleyville Page 65