Page 38 - FY 2026-2027 Adopted Budget Book
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The overall expenditures in the model are reflective of the increase in the municipal cost index on an annual
basis. The average municipal cost index is adjusted and applied to all expenditure line-items to present
forecast results. The line-items for supplies and contractual services are forecast to increase 1% per year.
Utilities and maintenance line-items are projected to increase 3% per year.
The model identifies a certain percentage of the expenditure categories that are dedicated to personnel and
factors annual compensation increases towards personnel costs in order to project what the total cost would
be over the next five years. The model includes a 3% cost of living adjustment for all eligible general
employees.
The forecast for water purchases and sewer treatment are based on the historical amount purchased, plus
0.5% annual growth for residential customers each year, at the projected rates provided by the Trinity River
Authority (TRA) in their FY 2026-2027 Proposed Budget. TRA is projecting a significant increase to rates in FY
2028-2029 and FY2029-2030, which is reflected in the forecast model.
Overall, the fund balance exceeds the City’s goal of a working capital amount equivalent to 90 days
of operational expenses excluding capital outlays.
FY 2026-2027 Adopted Budget Book · September 15, 2026 34
