Page 300 - CityofSouthlakeFY26AdoptedBudget

UTILITY FUND
2026 Proposed and 2025 Revised Budget
Utility Fund

$ Increase/ $ Increase/
2024 2025 2025 (Decrease) % Increase/ 2026 (Decrease) % Increase/
Actual Adopted Amended Adopted -Decrease Proposed Adopted -Decrease
REVENUES
Miscellaneous $46,886 $14,500 $39,500 $25,000 0.0% $29,500 $15,000 0.0%
Interest Income 1,402,293 890,000 1,000,000 110,000 12.4% 925,000 35,000 3.9%
Water Sales-residential 17,402,892 19,000,400 19,000,400 0 0.0% 20,140,000 1,139,600 6.0%
Water Sales-commercial 5,514,961 5,400,200 5,400,200 0 0.0% 5,745,000 344,800 6.4%
Sewer Sales 9,331,998 11,000,000 11,000,000 0 0.0% 11,500,000 500,000 4.5%
Sanitation Sales 2,899,864 2,856,450 2,977,250 120,800 4.2% 3,185,000 328,550 11.5%
Other utility charges 497,369 280,800 298,000 17,200 6.1% 305,800 25,000 8.9%
Total Revenues $37,096,263 $39,442,350 $39,715,350 $273,000 0.7% $41,830,300 $2,387,950 6.1%

EXPENSES
Debt Service 3,277,304 3,633,848 3,633,848 0 0.0% 4,465,287 831,439 22.9%
Utility Billing 533,735 723,291 722,666 (625) -0.1% 745,820 22,529 3.1%
Water 13,229,875 15,099,544 15,100,991 1,447 0.0% 16,201,119 1,101,575 7.3%
Wastewater 6,894,610 7,905,091 7,907,996 2,905 0.0% 7,964,937 59,846 0.8%
Utility Fund Expenditures
Sanitation 2,085,548 2,222,785 2,312,500 89,715 4.0% 2,415,500 192,715 8.7%
Total Expenses $26,021,072 $29,584,559 $29,678,001 $93,442 0.3% $31,792,663 $2,208,104 7.5%

Net Revenues $11,075,191 $9,857,791 $10,037,349 $179,558 $10,037,637 $179,846

Transfers In $0 $0 $0 $0
Transfers Out (9,514,112) (9,577,694) (9,588,614) 10,920 (9,673,212)
Total Other Sources (Uses) ($9,514,112) ($9,577,694) ($9,588,614) ($9,673,212)

Beginning working capital $22,572,296 $24,133,375 $24,133,375 $24,582,110
Ending fund balance $24,133,375 $24,413,472 $24,582,110 $24,946,535
No. of days working capital 339 301 302 286
FY 2026 Highlights

- The Utility Fund revenues are projected at $41,830,300 for a increase of $2,387,950. This is a 6.1% increase
when compared with the FY 2025 Adopted Budget.

- Personnel: The Utility Fund includes resources needed to manage and operate the City’s utility system. This
fund will cover its portion of employee pay adjustments and the increases in benefit costs as described in
the General Fund portion of the Budget Overview.

- Other expenditures: Funding has been requested for equipment and facility improvements including the
Lead and Copper Rule Improvements Compliance Assistance - Phase 4 ($235,724), Network Redundant
Connectivity Infrastructure ($98,832), Tyler Technologies Access Portals ($12,200), Wastewater Odor
Treatment Demand Increase ($20,000), SCADA Cabinet Preventative Maintenance ($12,500), Fats, Oils,
and Grease Ordinance and Manual Review and Revisions ($9,850), and 811 Software Integration Ticket
Management ($8,000).

- The Adopted FY 2026 Utility Fund budget provides 286 days of working capital. In anticipation of future
funding needed to replace aging infrastructure, this exceeds the City’s fund balance policy for the Utility
Fund, which states that the “…goal shall be to maintain a fund balance of 60 days of working capital in the
Utility Fund…with the optimum goal of 90 days of working capital.”
300 FY 2026 City of Southlake | Budget Book FY 2026 City of Southlake | Budget Book 300