FY26 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 2024 was $9,345,858 or $1,345,668 higher than fiscal year 2023. The increase in unassigned fund balance in fiscal year 2024 is due mainly to an increase in interest revenue as well as water charge increases.

Fund Balance (1)

$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000

FY2023

FY2024

FY2025

FY2026 $962,302

FY2027

Restricted/Assigned $7,824,801

$6,425,366 $9,345,858

$4,060,876

$1,112,302

Unassigned

$8,000,190

$9,979,072 $11,118,146 $10,727,694

(1) FY25 - FY27 figures are estimates.

The revised fiscal year 2025 unassigned fund balance is estimated to increase to $9,979,072, an increase of $633,214 over fiscal year 2024. This is primarily due to a decrease in debt service. Fiscal year 2026 unassigned fund balance is anticipated to grow by $1,139,074 over revised fiscal year 2025. This is primarily due to no debt issue outstanding at the end of 2026. 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 $0 in restricted fund balance, and the capital reserve is estimated to have $962,302 in assigned fund balance at the end of fiscal year 2026. 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 and $3,000,000 in fiscal year 2027..

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