The Brown County Water Improvement District #1 unanimously approved their 2016/2017 fiscal year budget at their board meeting Tuesday, and set water rates for both treated and untreated water that they sell to local municipalities and retail water providers.
Board Members unanimously approved the $3,058,625 which is a 4.5% increase from the current year’s budget.
“This is a bare bones budget with no equipment other than three pieces (for the water treatment plant) which TCEQ requires,” said Spinks. He explained that the Texas Commission on Environmental Quality requires certain items and these three in the budget equal just $11,000.
Spinks explained that the budget is figured based on formulas which rely on the past 5 years of water sales. These formulas, with the current abundance of water and no restrictions, may not be accurate in estimating the coming year’s water sales because the past 5 years were during water restrictions that resulted in limited water sales. This proposed budget also included a $50,000 repayment of the water well project cost (which is spread out in a 20-year repayment plan). Last year, board members voted to delay this $50,000 repayment to their cash reserves. He also explained that the retirement plans for the three living BCWID retirees required an additional $54,000 deposit this year to cover their retirement benefits, which was $1.2 million under-budgeted because of continued low interest rates on investments. These plans were developed when interest rates were much higher and expected to have an anticipated 8% yield, according to Spinks.This increase in the budget will ultimately cause water rates for both treated and untreated water that BCWID sells to their customers. Board members approved rates of $1.5924/1000 gallons for treated water (an 8.23% increase) and $0.9563/per 1000 gallons for untreated water (an increase of 11.28%). Spinks stated that the district currently has only one untreated water customer, Thunderbird Bay Water Systems.
“Hopefully water sales will go up (this year) which will affect next year’s rates,” Spinks stated.
Board members agreed to delay purchases of three vehicles requested by the maintenance department and Lake Patrol. One of the maintenance department’s vehicles has a bad motor which requires many repairs and Lake Patrol has added a fourth officer but only has three pickups for officer use. The decision was made to try to make it through this budget year with the current vehicles and if necessary make budget amendments as needed to repair or replace the aging vehicles.
In an unrelated item on the agenda, board members approved the $500,000 contract for the Trinity Project with Collier Consulting to drill and investigate up to 8 holes (up to 700 feet deep) and turn 5 holes into test wells at different intervals. Collier will also monitor nearby wells within ½ to 1 mile. It is hoped that the district will find a potential well field that will produce at least 100 gallons/minute per well for an alternative water source for the district’s future needs. The anticipated well field location has not been released, but has been described as being somewhere in the eastern third of Brown County.
“This study will tell us if we can use this area if needed in the future,” explained Board Member Johnny Hays. “We don’t have to put in a working well at this point, it just tells if us there is sufficient water in the area.”
Although this project is quite an investment to prepare for future water needs, Spinks gave his support stating, “Even with the cost I believe it is worth it.”
