Page 24 - CityofKennedaleFY26AdoptedBudget

FUND DESCRIPTIONS

The following section provides an overview and general purpose for each fund. Funds are
grouped by function, rather than by type, and are presented in the same order as they appear
later in this book. Additional information for each fund can be found within its respective
budget section.

GENERAL FUND

The General Fund serves as the main operating fund for the City’s government. Forty three
percent of revenue will come from property taxes, the rates of which are provided in the front
of this document. Revenue is determined by applying the City’s adopted tax rates to values
established by the Tarrant Appraisal District. Sales taxes, which will make up 27% of General
Fund revenues, are indirectly budgeted using a weighted average method. This method is
applied to project the remaining FY25 revenue and then further applied to project FY26. A
material growth in the City’s tax base is not expected for FY26. The next highest category,
Transfers In, consist of the value General Fund departments provide to support other funds. A
breakdown of this amount is located in the Common Cost Analysis within this document. New
for FY26, the City Manager’s Office, Human Resources Department, and City Secretary
Department have been consolidated into the City Administration Department. This document
presents the City Administration Department as if it existed in FY24 onward for comparative
purposes.

DEBT SERVICE FUND

The Debt Service Fund pays for Debt that is secured by ad valorem (property) taxes. Property
taxes account for over 99% of the Debt Service Fund revenues, with the remainder coming from
investment income.

UTILITY FUNDS

Stormwater Utility Fund

The Stormwater Utility Fund is an Enterprise Fund with the responsibility for providing
stormwater management to approximately 3,217 residential, commercial and industrial
customers.

Water/Sewer Fund

Also an Enterprise Fund, the Water/Sewer Fund maintains responsibility for providing water
and wastewater services for the City. Revenue received for usage is expected to cover
operations for this function. Bond proceeds are also housed within this fund for capital
projects.

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