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City of Mansfield Annual Budget and Service Program Fiscal Year 2025-2026 Table of Contents

ENTERPRISE FUNDS

Enterprise Funds are used for operations that are financed and operated in a manner similar to private business
enterprises where the costs (expenses, including depreciation) of providing goods and services to the general public on a
continuing basis are financed through user charges. The City’s Enterprise Funds are comprised of the Water & Sewer
Utility Fund and the Environmental Services Fund.

Utility Fund

Revenues

The Utility Fund budget for FY 2025–2026 continues to be supported primarily by water and sewer sales, with revenues
reflecting rate structures established to sustain operations, capital investments, and debt service.

The overall Utility Fund budget for FY 2025-2026, including debt, is $54,245,724. Water sales and sewer treatment service
totaling $52,884,261 account for 97.5% of all revenue.

Staffing

Personnel added to the FY 2025-2026 budget include two tradespeople, a customer service representative in Utility Billing,
and 1/3 the cost of a system administrator position that is shared with other divisions within the Public Works department.

Operations and Maintenance

Increases in chemicals, treatment costs, and infrastructure maintenance costs are reflected in the budget to ensure
regulatory compliance and service reliability.
2026 than FY 2024-2025.
Transfers

The Utility Fund continues to transfer funds to the General Fund to reimburse certain costs. The Utility Fund transfer to the
General Fund is approximately $3,414,708 for the use of the City’s Rights of Way, which is considered a franchise
agreement. Additionally, the Utility Fund will transfer $1,399,313 for overhead allocation to the General Fund and $360,225
to the Risk Management Fund for auto, liability, and property insurance.

Equipment

Budgeted equipment includes machinery and other assets necessary to support utility operations. Included in the FY
2025-2026 budget for new equipment is $240,000 for the purchase of a service truck, $160,000 for a new backhoe, and
$60,000 for two trailers.

Debt

Debt service for the Utility Fund includes scheduled payments on previously issued bonds to support major capital
projects including the water treatment plant expansion.
Utility Fund had not issued debt since 2016, but in FY 2023-2024, the Utility Fund borrowed $48 million for the Water
Treatment Plant expansion.

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