Utility Capital Improvements

Beginning Fund Balance

Revenue NTMWD Reimbursement Developer Contributions Interest Income

Transfers In Utility Fund Water Impact Fund Sewer Impact Fund

Total Revenue

Expenditures Construction in Progress

History Projected Budget

2020 Actual 2021 Budget2021 Revised 2022 Budget% Change

12,254,044 10,776,415 11,206,435 7,063,133 -34.46%

2,616,746 - 175,360 - 2,900,000 - - - 13,361 5,000 1,500 500 -90.00% 5,530,107 5,000 176,860 500 -90.00%

- 1,500,000 1,500,000 4,774,152 218.28% - - - - - - - - - 1,500,000 1,500,000 4,774,152 218.28%

5,530,107 1,505,000 1,676,860 4,774,652 217.25%

4,717,825 7,770,000 5,820,162 7,779,000 0.12%

Fund Balance

Transfers Out Utility Fund 1,859,891 - - - 1,859,891 - - - -

Reserved for Future Projects Ending Fund Balance 13,066,326 4,511,415 7,063,133 4,058,785 -10.03%

- - - 11,206,435 4,511,415 7,063,133 4,058,785 -10.03%

FISCAL YEAR 2021

The $175,360 North Texas Municipal Water District (NTMWD) reimbursement was the result of work done on behalf of the NTMWD as part of the upgrades to Pump Station #2. The project was closed early in the fiscal year. There are only two active projects at this time and no additional projects were proposed during the fiscal year. Therefore, the $1,500,000 transfer was used to fund projects proposed for Fiscal Year 2022.

FISCAL YEAR 2022

Fund 06 also has a significant fund balance made up of various sources. There are also restricted funds held in the fund balance in this fund.

• Interest - Unless otherwise specified, interest earnings are unrestricted. • Impact Fees – Revenue from impact fees collected for water and sewer improvements are restricted to use on projects listed on the most recent water and sewer impact studies. There were no eligible projects proposed for 2022 and the available sewer impact balance in the fund is around $1.6 million. • Developer Contributions - These are generally restricted to use on specific developments. Most agreements result in any excess funds being returned to the developer; however, the city received a payment from Windmill Farms in 2017 for participation in the construction of Pump

Station 2 in 2005. These funds were unrestricted and are proposed to be used for the Highway 80 Water

Line Loop.

The Utility Fund transfer to the Capital Improvement Program for the upcoming year will be $4,774,152. New projects for 2022 total $7,779,000. This will leave a balance of $2,409,460 available to be used to on future projects. POTENTIAL GRANT FUNDING

The City is eligible for $6,748,698 from American Rescue Plan Act authorized by the federal government. The city will receive half of this money in Fiscal Year 2022 and the remaining funds in Fiscal Year 2023. Possible uses for these funds include water and sewer infrastructure. The City Council will determine how these funds will be allocated.