FY2024 Proposed Budget

WASTEWATER FUND The Wastewater Fund accounts for the business-like operations of the City’s wastewater/sewer utility. The wastewater utility operates the City’s waste treatment plant, the sewage lift stations, the sanitary sewer collection system, and the wastewater monitoring operations. The Wastewater Fund is primarily supported through user fees. The wastewater operations have been undergoing a major transformation over the last few years. The City completed a major expansion of the South Wastewater Treatment Plant during fiscal year 2015, and all of the City’s sewage treatment operations were consolidated at the South Plant. The project cost was $55 million and was funded from $41.4 million from state and federal grants, $8.6 million from Local Option Sales Tax revenue, and $5 million from Wastewater user fees. A project to demolish and remove the North Treatment Plant and establish wetlands and a park was started in fiscal year 2015 at an estimated cost of $6 million with the assistance of a State sales tax flood mitigation grant. The Wastewater Fund provided a $6 million loan to the Capital Projects Fund for the demolition of the North Wastewater Treatment Plant in fiscal year 2015. The loan was repaid with the State sales tax flood mitigation grant, and the final loan payment was made in fiscal year 2022. Fund Balance: The Wastewater Fund’s unassigned fund balance at fiscal year 2022 year-end was higher than fiscal year 2021 by approximately $2,191,694 or 17.3% This increase was primarily due a decrease of $1,669,000 needed in the debt service fund. In fiscal years 2023, unassigned fund balance is expected to decrease by $1,235,739 or 8.3%. This decrease is primarily due to additional capital project funding needed for the Rohret South Sewer that would extend the sanitary sewer west of US Highway 218. In fiscal year 2024, the unassigned fund balance is budgeted to decrease by $1,707,081 or 12.6% primarily due an increase in wastewater debt service for planned revenue bonds to be issued in fiscal year 2024.

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