HomeMy WebLinkAboutIR 9517 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9517
To the Mayor and Members of the City Council October 9, 2012
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SUBJECT: FY2013 GENERAL FUND BUDGET IMPACT: WATER AND SEWER
rF FUND RATES
The purpose of this Informal Report is to quantify the FY2013 General Fund Budget impact of
Water and Sewer Fund rates.
The Water and Sewer Fund is assessed a Street Rental Fee for use of rights-of-way in the City of
Fort Worth. The Street Rental Fee of 5% is applied to gross water and sewer service revenue.
The City Manager's Proposed Budget included a transfer of Street Rental Fee revenue to the
General Fund based on the water revenue generated by the proposed water and sewer rates.
At the September 18, 2012, City Council meeting, the Council amended M&C G-17679 to only
authorize an increase in retail rates for sewer volumes. As a result, the projected transfer of
Street Rental Fee revenue to the General Fund was reduced by $297,035.
FY2013 Water Revenue Impact
Proposed Water Revenue $ 230,181,644
Adopted Water Revenue (revised M&C) $ 224,240,945
Revenue Reduction $ (5,940,699)
Street Rental Fee Revenue Impact(5%) $ (297,035)
To ensure the FY2013 budget was adopted timely and avoid the unintended consequences of
imposing sudden departmental budget changes, the reduction of Street Rental Fee revenue
required the use of excess fund balance. The additional use of excess fund balance still allows
the City to maintain the reserve requirement at 10%. Consistent with our approach each year,
Staff will monitor revenues, scrutinize all spending and begin early evaluating options to address
the budget challenges in FY2014.
If you require any additional information, please contact Horatio Porter, Budget Officer at 817-
392-2379.
Tom Higgins
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS