Title
Consider/Discuss/Act on an Ordinance Amending the Fiscal Year 2015-2016 Annual Budget to Provide Funds for the Water Service Line Replacement Program
Summary
COUNCIL GOAL: Operational Excellence
MEETING DATE: March 1, 2016
DEPARTMENT: Public Works
CONTACT: Morgan Dadgostar, Water Utilities Superintendent
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Ordinance
ITEM SUMMARY:
• This Ordinance amends the Fiscal Year 2015-2016 Annual Budget by appropriating $1,759,647 from fund balance in the Water/Wastewater Fund that will be used for purchasing equipment for the Water Service Line Replacement Program.
• A concurrent agenda item has been presented for a ten year plan to replace approximately 14,650 substandard copper water service lines (1,440 service lines per year) in order to mitigate water loss in the water distribution system.
• The water service line replacement program was also presented to Council at the February 29, 2016 Work Session.
BACKGROUND INFORMATION:
• The City of McKinney is required to submit yearly a water loss report in March to NTMWD and in May to the Texas Water Development Board.
• Over the past five years, McKinney has not met the 12% target for water loss.
• The most recent report indicates a 23 percent water loss (approximately 2.4 billion gallons).
• It has been determined that a substantial portion of the water loss is due to leaks from service lines made of substandard copper.
FINANCIAL SUMMARY:
• This Ordinance amends the Fiscal Year 2015-2016 Annual Budget by appropriating $1,759,647 from fund balance in the Water/Wastewater Fund that will be used for purchasing equipment for the Water Service Line Replacement Program.
• The Water/Wastewater Fund was budgeted in FY16 to have $1,500,000 of revenues in excess of expenses. This program will expend this surplus and an additional $259,647 of Fund Balance. Water/Wastewater Fund Balance will remain well above required reserve levels.
BOARD OR COMMISSION RECOMMENDATION: N/A