Weatherford Democrat

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September 7, 2012

Utility board to use reserves for projects

— Weatherford Municipal Utility Board members agreed to take $1.5 million out of the board’s $5.9 million reserves and move them into the capital projects fund during Thursday’s board meeting.

A public hearing on the Fiscal Year 2012-13 budget was held. No one spoke on the proposed budget, which is expected to be approved at the board’s Sept. 27 meeting.

Those monies are expected to be used for design phases for three projects: replacing a 30-inch water line from the old water plant, replacing a water line along Fort Worth Highway and replacing a sewer line that runs behind Weatherford High School. The design is expected to run about $900,000 with the overall costs of the projects expected to run about $3.8 million.

The rest of the funding is expected to go toward re-coating of one of the ground storage tanks

Director of Management and Budget Chad Janicek said taking the $1.5 million would reduce the number of extra available capital days from 49 down to about 37. This is above and beyond the 60 capital days the board already has in reserve, as required by law.

The city is also in the process of replacing some lift stations and pumps, according to Director of Water Utilities James Hotopp.

The Municipal Utility Fund is an enterprise fund, and each utility is run similar to a private business enterprise. As such, specific services are provided to customers, and revenues are generated based on charges for those services. In addition to direct service charges, there are a variety of other revenue sources available to each utility.

Electric department revenues include service charges, interest income, pole rental charges, service initiation and transfer charges, late payment fees, and other miscellaneous items including transfers from other funds.

Water department revenues include service charges for retail and wholesale customers, interest income, connection fees, lake lot leases, water tower license fees, and other miscellaneous items including transfers from other funds.

Wastewater department revenues include service charges for retail and wholesale customers, interest income, tap fees, and other miscellaneous items including transfers from other funds.

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