Revenues & Expenses

Governmental Funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements in the ACFR. However, unlike the government-wide financial statements, governmental fund financial statements focus on nearterm inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Data shown in this report comes from the government-wide financial statements in the ACFR unless otherwise noted.

Revenues: Where Does the Money Come From?

The programs and functions listed are funded by two major sources: General Revenues and Program Revenues . General revenues are available to be used for any program or function and are mostly composed of tax revenues. Program revenues are collected and available for their respective programs and functions and include user fees, operating and capital grants and contributions.

General Revenues

In Fiscal Year 2022, general revenues were over $13.3 million, an increase of $1,053,625 from Fiscal Year 2021. Property taxes comprised the most revenues, totaling over $7.03 million, followed by sales tax at $3.6 million. The increase in property taxes resulted from increased appraisal values over the prior year. In addition, sales tax revenue increased as a result of rapid growth and increased local spending.

Program Revenues

In Fiscal Year 2022, program revenues were over $26.7 million. Charges for Services is comprised of utility services which is the largest component at $10.3 million, followed by the municipal golf course at $1.8 million. Program revenues increased in Fiscal Year 2022 due to growth in the City's utility customer base, increased federal grants, and developer contributions for major utility and

Expenses: Where Does the Money Go?

City expenses are separated into two categories:

Governmental Activities

These activities are generally financed through taxes, intergovernmental revenues and other non-exchange revenues. Public Safety is the largest program funded in terms of expenditures, which accounts for 50.8% of the governmental activity expenses. General government and Public Works make up another significant portion at 31.7% of governmental activity expenses.

Business-Type Activities

These activities are reported in Enterprise Funds. The Enterprise Funds account for the City’s utilities (water, sewer and storm water) and the municipal golf course. These funds consist of services provided to the community, in which the revenues generated go to support operations, maintenance, and improvements of the City’s utilities and golf course. Expenses are generally financed in whole or in part by fees charged to external parties for goods or services provided. Utility services is the largest program funded which accounts for 81.7% of total business-type activities expenses. Cross Timbers Golf Course comprises the second largest at 17.4%.

Net Position

During the past fiscal year, Azle saw an increase in net position of $14,871,635, leaving the City in good financial standing. The increase in net position for 2022 was attributed to positive operating results and significant developer contributions for utility and street infrastructure.