Page 324 - CityofSouthlakeFY27Budget

UTILITY FUND
2027 Proposed and 2026 Revised Budget
UTILITY FUND TABLE OF CONTENTS

$ Increase/ $ Increase/
2025 2026 2026 (Decrease) % Increase/ 2027 (Decrease) % Increase/
Actual Adopted Amended Adopted -Decrease Proposed Adopted -Decrease
REVENUES
Miscellaneous $40,285 $29,500 $34,500 $5,000 0.0% $29,500 $0 0.0%
Interest Income 1,116,540 925,000 925,000 0 0.0% 925,000 0 0.0%
Water Sales-residential 17,196,375 20,140,000 18,490,000 (1,650,000) -8.2% 20,125,065 (14,935) -0.1%
Water Sales-commercial 5,323,574 5,745,000 5,550,000 (195,000) -3.4% 5,740,300 (4,700) -0.1%
Sewer Sales 11,340,275 11,500,000 11,500,000 0 0.0% 12,075,000 575,000 5.0%
Sanitation Sales 2,998,063 3,185,000 3,146,000 (39,000) -1.2% 3,223,000 38,000 1.2%
Other utility charges 401,600 305,800 317,000 11,200 3.7% 305,000 (800) -0.3%
Total Revenues $38,416,712 $41,830,300 $39,962,500 ($1,867,800) -4.5% $42,422,865 $592,565 1.4%

EXPENSES
Debt Service 3,633,848 4,465,287 4,465,287 0 0.0% 4,467,274 1,987 0.0%
Utility Billing 615,888 745,820 743,473 (2,347) -0.3% 770,324 24,504 3.3%
Water 12,383,344 16,201,119 15,258,984 (942,135) -5.8% 16,388,693 187,574 1.2%
Wastewater 5,660,988 7,964,937 7,964,937 (0) 0.0% 9,148,690 1,183,753 14.9%
Utility Fund Expenditures
Sanitation 2,311,202 2,415,500 2,415,500 0 0.0% 2,482,100 66,600 2.8%
Total Expenses $24,605,270 $31,792,663 $30,848,181 ($944,482) -3.0% $33,257,081 $1,464,418 4.6%

Net Revenues $13,811,442 $10,037,637 $9,114,319 ($923,318) $9,165,784 ($871,853)

Transfers In $0 $0 $0 $0
Transfers Out (9,588,614) (9,673,212) (9,598,500) (74,712) (9,696,915)
Total Other Sources (Uses) ($9,588,614) ($9,673,212) ($9,598,500) ($9,696,915)

Beginning working capital $22,572,296 $26,795,124 $26,795,124 $26,310,943
Ending fund balance $26,795,124 $27,159,549 $26,310,943 $25,779,812
No. of days working capital 397 312 311 283
FY 2027 HIGHLIGHTS

- Utility Fund revenues are projected at $42,422,865 for an increase of $592,565. This is a 1.4% 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).

- 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 provides funding for benefit cost
increases. No new personnel are requested to be funded through the Utility Fund.

- Other expenditures: Funding has been requested for equipment and facility improvements including Wifi Access Points
Replacement ($2,339), VPN Routers for Pump Station 1 and 2 ($6,308), Municipal Service Center New Operating Expenses
($86,475), Capital Project Management and Cost Estimation Software Support ($20,900), EPA Lead and Copper Rule
Revision Compliance Phase 5 ($58,736), Spectrum Circuit for Pump Station 1 Redundancy ($14,200), and Tyler/Beacon
Integration ($3,600)

- The Adopted FY 2027 Utility Fund budget provides 283 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.”

324 FY 2027 City of Southlake | Budget Book FY 2027 City of Southlake | Budget Book 324