Page 57 - CityofSouthlakeFY27Budget

TABLE OF CONTENTS

through increase from the City of Fort Worth (water).

Expenditure highlights. Total expenditures in the Utility Fund are adopted at $33,257,081, a 4.6%
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. Budget Overview
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 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 $1,696,915 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 is also budgeted.

Fund balance: The Utility Fund budget provides 283 days of working capital, or $25,779,812, a 5.1%
decrease 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 vehicles
and heavy equipment for the City’s fleet.

Revenue and transfer highlights. This budget estimates revenue of $400,000 and a transfer of
$1,500,000 from the General Fund to the Vehicle Replacement Fund.

Expenditure highlights. Expenditures are estimated at $2,772,000 to replace aging vehicles and heavy
equipment coming off-line.

Fund balance. The projected ending fund balance Vehicle Replacement
is $13,093,794, a 29.4% increase from the prior Expenditure Highlights
year adopted budget. The planned fund balance
provides adequate reserves for the program Item Expenditure

Fleet Replacement $2,772,000.
per schedule

FY 2027 City of Southlake | Budget Book 57