Page 15 - CityofEulessFY26AdoptedBudgetOrdinance2432

Recommended capital items are detailed in the proposed budget in Tab 2 and are funded
from excess reserves.

In accordance with the City's fiscal policy, all current expenses will be paid from current
revenues. Per this policy, the budgeted General Fund reserve is equal to 60 days working
capital. The fund balance summary verifies that the City has complied with this policy.
Excess reserves have only been used to fund proposed capital and one-time needs.

WATER AND WASTEWATER FUND

The FY2025-26 budget includes proposed operating revenues of $ 37, 582, 028, which is an
increase of 7. 5% over the current year budget. The water and wastewater revenue
projections are based on proposed rates, detailed above, and estimated consumption. A
proposed rebate of 75¢ per 1, 000 gallons of water used up to a maximum of 15,000
gallons per month is included for single-family residential customers. The City's Rate
Stabilization Fund will provide the resources to cover the cost of the proposed rebate.

Proposed water and wastewater baseline expenses are $ 37, 574, 364, which is an increase
of 7. 5% over current year. The increase is attributed to the increased costs from TRA for
the purchase of water and treatment of wastewater, the proposed pay plan, administrative
and franchise fees, the annual increase to system improvements, water plan and water
model engineering services, and supervisory control and data acquisition pack upgrades.

Recommended capital items are detailed in the proposed budget and funded from excess
reserves.

The proposed budget meets the criteria set forth in the City's fiscal policies with reserves
calculated at 75 days of working capital.

Water and Wastewater Debt Reserve Requirements

Water and wastewater revenue bond covenants require the City to maintain sufficient
reserves equal to the average annual debt service requirements. This debt reserve is in
addition to the working capital reserve required by the City's fiscal policies and is
maintained in a separate fund.

EQUIPMENT REPLACEMENT FUND

The City maintains an equipment replacement program to accumulate funds for the
replacement of vehicles, equipment, assets and certain facility items. Funding is provided
annually by user departments in order to accumulate funds necessary to cover the
expected replacement costs. Shortages in accumulated funds are supplemented with
funding from the Car Rental Fund. In addition, a one-time transfer of $ 1, 000, 000 from the
General Fund is proposed to address inflation -related increases in replacement costs.

201 N. Ector Drive, Euless, Texas 76039- 3595
817/ 685- 1400 • Metro 817/ 267- 4403 • Fax 817/ 685- 1416
www. eulesstx. gov

Ordinance No. 2432, Page 15 of 474
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