Page 50 - CityofSouthlakeFY26AdoptedBudget

Revenue highlights. The Utility Fund revenues are projected at $41,830,300 for an increase of $2,387,950.
This is a 6.1% increase when compared with the prior year adopted budget. Revenue is adjusted to align
with anticipated consumption demands and account for pass through increases from the City of Fort
Worth (water), Trinity River Authority (wastewater), and CWD (solid waste).

Expenditure highlights. Total expenditures in the Utility Fund are adopted at $31,792,663 a 7.5%
increase from the prior year adopted budget. This increase is a result of personnel costs as well as
additional annual debt service requirements to fund needed water and wastewater infrastructure repair
and replacement projects.

Personnel: The Utility Fund includes resources needed to manage and operate the City’s utility system.
As noted in the “Employer of Choice” section earlier, the budget includes compensation increases and
Budget Overview
provides funding for benefit cost increases. No new personnel are requested to be funded through the
Utility Fund.

Other highlights: A few highlights of supplemental requests for the Utility Fund are shown in the Utility
Fund Expenditure Highlights table on the previous page and are specifically related to providing water,
and or sewer services.

Indirect charge/transfers: We have budgeted a transfer of $1,673,212 to the General Fund to cover indirect
expenses and for payment of a franchise fee. A transfer of $8,000,000 to the Capital Improvements
Program (CIP) is also budgeted.

Fund balance: The Utility Fund budget provides 286 days of working capital, or $24,946,535, a 2.2%
increase from the prior fiscal year adopted budget. In anticipation of future funding needed to replace
aging infrastructure, this exceeds the City’s fund balance policy, 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.”

Vehicle Replacement Fund

The Vehicle Replacement Fund accounts for the
resources needed to manage the purchase of Vehicle Replacement Fund
vehicles and heavy equipment for the City’s fleet. Expenditure Highlights

Revenue and transfer highlights. This budget Item Fleet replacement per
estimates revenue of $420,000 and a transfer of schedule
$2,000,000 from the General Fund to the Vehicle Expenditure $6,058,612*
Replacement Fund. *Includes FY 2022, FY 2023 and FY 2024 vehicles that have not
been received due to supply chain issues and have been re-
budgeted.
Expenditure highlights. Expenditures are
estimated at $6,058,612 to replace aging vehicles
and heavy equipment coming off-line. It should be noted that supply chain issues continue to affect the
City’s ability to acquire vehicles on a timely schedule. As such, many vehicles slated for replacement
during recent fiscal years have not been received. Funds have been re-budgeted as needed to ensure
availability of dollars as we are able to receive the vehicles.
50 FY 2026 City of Southlake | Budget Book FY 2026 City of Southlake | Budget Book 51