FY25 Proposed Budget

WATER FUND

The Water Fund accounts the City’s water utility operations including the operation of a water production plant, water storage facilities, water distribution system, water meter reading, and water quality monitoring. The business-like fund is primarily supported through user fees.

Fund Balance:

The Water Fund’s unassigned fund balance at the close of fiscal year 2023 was $8,000,190 or $924,821 higher than fiscal year 2022. The increase in unassigned fund balance in fiscal year 2023 is due mainly to an increase in interest revenue.

(1) FY24 - FY26 figures are estimates

The fiscal year 2024 unassigned fund balance is estimated to decrease to $7,751,973 or $248,216. This is primarily due to the addition of a 1 FTE in Water Customer Service.

Fiscal year 2025 unassigned fund balance is anticipated to grow by $1,517,348 over fiscal year 2024. This is primarily due to at the end of fiscal year 2025 there will only be one debt issue outstanding so the debt service is decreasing in 2024 as well as the amount needing to be transferred to the debt service reserve. The Water Fund maintains two reserved funds: one restricted fund for debt service and one assigned fund for capital reserves. The debt service reserve will have an estimated $1,365,453 in restricted fund balance, and the capital reserve is estimated to have $3,599,596 in assigned fund balance at the end of fiscal year 2025. Contributions into the Capital Reserve increased to $1,800,000 in fiscal year 2023 and are planned to increase to $2,500,000 in fiscal year 2026.

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