Regional Water System
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Amendment to the 2023-24 Budget Resolution
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SUBJECT
recommendation
Amend the 2023-24 Budgeted Regional Water System rates and charges.
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PURPOSE
The annual budget provides funding authorization for all Operations, Administration and Debt Service requirements for NTMWD. Significant variable cost savings due to chemical contract pricing reductions result in the opportunity to reduce the 2023-24 Regional Water System rates and charges.
RECOMMENDATION
The Executive Director and NTMWD staff recommend the Board of Directors authorize amending the 2023-24 Budget Resolution No. 24-24, “A Resolution Amending the 2023-24 Regional Water System Rates and Charges for the North Texas Municipal Water District.”
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Consultant: |
N/A |
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Scope: |
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Project: |
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Amount: |
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Strategic Objective: |
2.3 Rigorous Financial Management |
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Committee: |
This item was on the June 12, 2024, Finance Committee meeting agenda |
DRIVER(S) FOR THIS PROJECT
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☐ Regulatory Compliance |
☐ Asset Condition |
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☐ Capacity |
☐ Redundancy/Resiliency |
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☐ Relocation or External Requests |
☐ Operational Efficiency |
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☐ Safety |
☒ Administrative |
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☐ Policy |
☐ Other _____________ |
BACKGROUND
• Resolution No. 23-31, “A Resolution Approving Appropriations for the 2023-24 All Systems Annual Budget, Amending the 2022-23 Annual Budget and Providing Rates and Charges for System Services for the North Texas Municipal Water District,” was approved by the NTMWD Board of Directors in September 2023.
• The Regional Water System’s FY2023-24 chemical costs are currently estimated to be 8.9% or $6.4M under budget due to chemical price reductions of sodium hydroxide and chlorine.
• Consideration to reduce the 2023-24 RWS Member and Customer rate by $0.05 per 1,000 gallons was presented to the Finance Committee on April 10, 2024, and approved by the Finance Committee on June 12, 2024.
• The reduction in the rate is allowed in the Region Water Facilities Supply Contract with Member Cities.
• The Member Cities were consulted on July 15, 2024, to amend the base and variable water rates as follows:
• Attached is a copy of the proposed Resolution Amendment No. 24-24 to the 2023-24 Budget Resolution No. 23-31, which is required by State Law and the District’s service contracts to appropriate funds for operations, maintenance and debt service and to establish rates and charges for the District’s operations.
FUNDING
N/A