File #: 16-262    Name: Budget Amendment Water Service Line
Type: Ordinance Status: Approved
In control: City Council Regular Meeting
On agenda: 3/1/2016 Final action: 3/1/2016
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
Attachments: 1. Ordinance
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 requ...

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