Utility Fund

Fiscal Year 2022 – 2023 Budget

This fund is a business-enterprise fund accounting for the Town’s water and sewer utilities including water distribution, sewer plan operations and treatment, water billing and meter reading. The system is self-supporting with rates and charges determined by an annual rate analysis to determine the adequacy of revenue to support operations, capital improvements and debt commitments.

Sewer Services 36%

Water Services 55% Fees 2%

Charges for Service 6%

Interest Earnings 1%

Fiscal Year 2022 – 2023 Budget

Debt Service 20% Transfers 14%

Capital Improvement Projects 3% Water Operations 11%

Water Purchases 29%

Utility Billing 5%

Utility Administration 5% Wastewater Collections 4%

Wastewater Treatment 9%

The following departments make up the Utility Fund

• Water Operations - Personnel and water operation expenses • Wastewater Collections - Personnel and wastewater operation expenses • Wastewater Treatment - Personnel and expenses for the wastewater treatment plant • Utility Administration - Personnel who oversee water and wastewater operations • Utility Billing - Personnel and operations that oversee the meter billing and collection for water and wastewater services.

Additional Expenditures of the Utility Fund

• Capital Improvement Projects - Water and Wastewater infrastructure • Debt Service - Expenditures supporting bond payments for capital improvement projects to support new residential and commercial connections • Water Purchases - Water purchased from the North Texas Municipal Water District for distribution by the Town • Transfers - Payment in lieu of taxes for services provided by the Town

Actual Amended Budget Estimated Budget Adopted Budget Planning Years

2020 - 2021 2021 - 2022 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025 2025 - 2026 2026 - 2027

BEGINNING FUND BALANCE $16,154,250 $18,707,864 $18,707,864 $19,856,046 $19,741,609 $18,660,726 $17,470,617 $16,340,793

REVENUES Water Sales Sewer Sales

$10,637,432 $11,241,359 $11,551,119 $11,647,483 $12,014,379 $12,386,824 $12,576,343 $12,764,988 7,053,380 7,491,589 7,471,565 7,583,638 7,697,393 7,774,367 7,852,110 7,930,632 Fees 631,912 463,500 605,555 483,000 458,000 433,000 428,000 418,000 Charges for Service 905,379 1,104,526 1,115,010 1,137,310 1,153,274 1,162,638 1,169,802 1,174,650 Interest Earnings 214,605 200,000 226,176 225,000 225,000 225,000 225,000 225,000 Miscellaneous 271,754 71,000 - 201,498 - - - - Transfers In - - - - - - - -

TOTAL REVENUES $19,714,462 $20,571,974 $20,969,425 $21,277,929 $21,548,045 $21,981,830 $22,251,256 $22,513,269

TOTAL FUNDS AVAILABLE $35,868,712 $39,279,838 $39,677,289 $41,133,975 $41,289,654 $40,642,555 $39,721,872 $38,854,063

OPERATION EXPENDITURES

Water Operations $1,740,566 $2,455,726 $2,169,845 $2,284,815 $1,925,867 $1,987,794 $2,020,128 $2,058,037 Wastewater Collections 689,923 812,498 823,949 854,435 833,748 852,321 882,011 907,467 Wastewater Treatment 1,419,553 1,763,675 1,854,048 1,943,325 1,972,374 2,001,754 2,069,738 2,150,692 Water Administration 759,912 802,570 759,855 1,069,934 943,709 959,872 994,408 1,011,367 Utility Billing 630,811 1,202,689 1,160,064 1,031,889 773,745 777,420 819,847 824,792

TOTAL OPERATION EXPENDITURES $5,240,764 $7,037,158 $6,767,761 $7,184,398 $6,449,443 $6,579,161 $6,786,132 $6,952,355

WATER PURCHASES $4,741,680 $5,379,337 $5,371,954 $6,274,356 $6,970,730 $7,538,062 $8,090,950 $8,495,498

DEBT SERVICE

CAPITAL

Transfers Out

TOTAL TRANSFER $2,519,701 $3,073,871 $3,073,871 $3,068,243 $3,202,634 $3,258,707 $3,267,525 $3,329,884

TOTAL EXPENDITURES $17,160,848 $20,122,506 $19,821,243 $21,392,367 $22,628,928 $23,171,939 $23,381,079 $24,086,868

Net Income/Loss $2,553,614 $449,468 $1,148,182 $(114,437) $(1,080,883) $(1,190,109) $(1,129,823) $(1,573,599)

ENDING FUND BALANCE $18,707,864 $19,157,332 $19,856,046 $19,741,609 $18,660,726 $17,470,617 $16,340,793 $14,767,195

AMOUNT OVER (UNDER) IN DAYS OPERATING COST 347 366 337 301 275 255 224

$3,870,048 $4,326,140 $4,330,120 $4,291,370 $5,743,121 $5,722,009 $5,196,972 $5,194,132

$788,655 $306,000 $277,537 $574,000 $263,000 $74,000 $39,500 $115,000

$2,519,701 $3,073,871 $3,073,871 $3,068,243 $3,202,634 $3,258,707 $3,267,525 $3,329,884

Minimum 120 days of working capital

Debt Service Reserves

4.43 4.59 4.60 3.25 3.05 3.14 2.84