HomeMy WebLinkAbout(P2) 2025 Water Utilities Infrastructure Rehabilitation Update- council workshop re2Water Utilities Budget and Infrastructure Update
JANUARY 28, 2025
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Adopted 2024 Capital Improvements Budget
5-year Program
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Proposed 2025 Capital Improvements Budget
5-year Program
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Approved 2025 Capital Improvements Budget
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FY 2025
Proposed Rate Increases and Council Actions
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FY 25 Financial Status of Utility Department
as of the numbers ending in December
Projected end-of-year deficit: approx. $3 million (Not considering emergencies)
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FY 25 Major Projects Approved and Funded
Sabine Pass Pipe Bursting IV paid by ARPA Interest Revenue.
Hwy 365 Force Main Replacement proposed to be funded by the General Fund as an agenda item at this council meeting.
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FY 25 Emergency Memo
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FY 25 Customer Calls for Service
From October 1, 2024 to January 23, 2025
Water Service Calls: 678
Sewer Service Calls:1506
Water Billing/Meter Service Work Orders: 24,604
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Water Line Replacement Projects
Priority 1
Mandated By the U.S. Army Corps of Engineers
36” SAVANNAH WATER LINE Supplies DOWNTOWN, PLEASURE ISLAND, SABINE PASS AREA
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City of Port Arthur Utilities Projects
Total Cost Estimate
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Sources of Funding
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Sources of Funding – Grants
Application from 2023 to present
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Potential Sources of Funding –
Meter Replacement Program
Project Bid Documents are completed
Under Legal Review
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Sources of Funding for Capital Project –
Certificates of Obligation
Notes:
These rate increases do not include Operation Rate Increases and Inflation
The Rate Increases are estimated based on $37 Million current annual revenue
8.7%
7%
Not Recommended
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Summary
The 2025 utilities fund doesn’t have any funding for the Major Planned Capital Improvement Projects.
At the End of the year 2025, the budget projection is a deficit of $3 million.
Any emergency work for the Utilities Department for the 2025 budget will have to be funded from the General Fund as of January 2025.
The Attorney General’s consent order is expected to be filed before the end of the 2025 budget year.
The General Fund can not subsidize the Utilities Enterprise Fund.
The Utilities Enterprise Fund will not be able to repay the General Fund any of the money borrowed during the 2025 budget year.
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QUESTIONS?
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