HomeMy WebLinkAboutOrdinances (ORDINANCE O-16-1986)-09/06/2016ORDINANCE 0-16-1986
AN ORDINANCE AMENDING APPENDIX A- WATER AND SEWER
POLICY AND PROCEDURE MANUAL, SECTION 8 FINANCIAL
MANAGEMENT, OF THE COLLEYVILLE, TEXAS, CODE OF ORDINANCES,
MODIFYING THE TRANSFERS FROM THE UTILITY FUND TO THE
GENERAL FUND, AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, the City Council desires to modify the provisions for transfers
from the Utility Fund to the General Fund.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF COLLEYVILLE, TEXAS:
Sec. 1. THAT all matters stated hereinabove are found to be true and
correct and are incorporated herein by reference as if copied in
their entirety.
Sec. 2. THAT the franchise fee and operating transfer from the Utility
Fund to the General Fund will end on September 30, 2016, and
no franchise fees or operating transfers shall be paid by the
Utility Fund to the General Fund of the City after said day.
Sec. 3. THAT the combined amount of the franchise fee and operating
transfer from the Utility Fund to the General Fund for Fiscal
Year 2016 will be reduced by an amount not to exceed
$678,000.
Sec. 4 THAT as of October 1, 2016, Appendix A- Water and Sewer
Policy and Procedure Manual, Section 8 Financial Management,
of the Code of Ordinances, shall be deleted and replaced in its
entirety with the revisions as shown on Exhibit A.
Sec. 5. THAT the effective date of this ordinance shall be September 6,
2016.
AND IT IS SO ORDERED.
The first reading and public hearing being conducted on the 16th day of
August 2016.
The second reading and public hearing being conducted on the 6th day of
September 2016.
Ordinance 0-16-1986
Page 2 of 2
APPROVED BY A VOTE OF �O AYES, � NAYS, AND B ABSTENTIONS ON
THIS THE 6T" DAY OF SEPTEMBER 2016.
Mayor Richard Newton � � Mayor Pro Tem Chris Putnam �.t
Place 1, Tammy Nakamura �.� Place 5, Nancy Coplen �_L
Place 2, Bobby Lindamood 4ke'C. Place 6, Mike Taylor q�-t�t,
Place 4, Jody Short �ci
7TEST:
Amy elley, RMC
City Secretary
APPROVED AS TO FORM AND LEGALITY:
��i� �`� �� r�.
Matthew C. G. Boyle
City Attorney
CITY OF COLLEYVILLE
� /�,�
Richard Newton
Mayor
Exhibit "A"
SECTION 8. - FINANCIAL MANAGEMENT
Sec. A. - Guidelines adopted.
As a means of ensuring the financial integrity of the utility enterprise fund,
the City Council hereby adopts the following as financial
management guidelines:
1. Gross revenues of the utility enterprise fund shall be sufficient during
each and every fiscal year period to pay all maintenance and operating
expenses, debt service on all outstanding indebtedness payable by the
fund, depreciation expense, and other nonoperating expenses.
Retained earnings and working capital balances available from prior
years shall not be used as a means of satisfying this requirement.
2. Net income before depreciation and other nonoperating expenses shall
[be] equal to at least 1.2 times the average annual debt service
requirement on all outstanding indebtedness secured by a pledge of
utility fund revenues.
3. The working capital balance in the utility enterprise fund at the end of
each fiscal year shall be equal to at least 90 days of operation.
4. The City shall develop and maintain accurate cash flow projections to
ensure that sufficient funds are available at all times to pay current
obligations of the utility enterprise fund, and to ensure that available
cash is invested to the fullest extent possible.
5. All assumptions and projections concerning utility fund revenues and
expenses shall be reviewed on at least an annual basis to ensure the
adequacy of existing water and sewer rates.
6. Utility fund revenues and expenses shall be formally monitored on at
least a quarterly basis to ensure that budget estimates are still valid.
Sec. B. - Separate account for delinquent penalties.
A separate revenue account is established in the water and sewer utility
enterprise fund to account for penalties on delinquent utility bills.
Sec. C. - Pass through rate increase.
The City Council may by resolution increase water and sewer rates to
pass through direct rate increases, originated by the Trinity River Authority,
on a per 1,000 gallons basis for water delivery or sewer treatment charges
on all water and sewer gallons billed and those gallons of usage included in the
water and sewer minimum bill.