CITY OF RICHLAND HILLS ANNUAL BUDGET FY2022-23

*All P/T positions are FTE

ENTERPRISE FUNDS WATER & SEWER FUND

Enterprise Funds are used to account for goods and services that the city provides to its customers.

Fund Summary

The Water & Sewer Fund is used to account for the water and wastewater systems of the city.

The fund consists of several departments:

Shared Services, Utility Administration, Water Operations & Distributions and Sewer Treatment

The Water & Sewer Fund also accounts and pays for its own debt service.

Mission Statement

The mission of the Water & Sewer Fund is to improve, maintain, and preserve the infrastructure and environment in the City of Richland Hills. We strive to protect the health, safety, and welfare of its residents, business community, and visitors by providing quality services in a reliable, responsible, and effective manner that enhances public trust and pride within the community.

FY 2021-2022 Accomplishments

 Maintained our Superior Public Water System status

 Submission and approval by City Council to participate in a Water Meter Replacement Program

 60,000 feet of sewer line cleaned

 Continuously provided quality service while operating at minimum staffing levels

 Replacement of all Public Works vehicles through Enterprise contractual agreement

 100 feet of sewer line replaced

FY 2022-2023 Objectives

 Fill all vacant positions within the department and work toward reducing the turnover rate

 Replacement of all water meters

 Obtain TCEQ (Texas Commission on Environmental Quality) licensing for all new hires

 TCEQ Upgrade for currently licensed personnel

 Establish a Wastewater Sampling Program

 Establish a Backflow Prevention Program

 Completion of the Public Works Standard Operating Procedures

The Water & Sewer Fund is responsible for maintaining 47 miles of water line, 355 fire hydrants, 60 miles of sewer lines, and billing and reading 3,076 customer meters. Other responsibilities include responding to customer requests; cleaning, inspecting, and repairing sewer lines; installing water/sewer services upon request; repairing water lines, valves, and fire hydrants; water/wastewater capital improvement projects, and other related services.

CITY OF RICHLAND HILLS ANNUAL BUDGET FY2022-23

FY 2022-2023 BUDGET

The City does not follow GAAP when budgeting Enterprise Funds, however, it does present them according to GAAP in the annual financial statements.

The following are some major budget items for FY 2022-23:

Major Budget Item: The Water Meter replacement project was approved by Council on August 8, 2022. This project was approved in order to replace the aging water meters for every water customer in the City. The project’s total cost is $2,406,753 with the City providing the funding in the amount of $1,000,000 from cash reserves and the remaining amount of $1,406,753 being funded by a capital financing source. The debt service schedule is included in the section relating to debt.

Shared Services

The Shared Services department is used to account for services that are shared with the general fund and other departments. Expenses such as the City’s property and casualty insurance, IT vendor costs, website costs, building maintenance, the City’s utilities expenses and other costs are tracked in this department. There are no personnel in this department.

Utilities

The Utility Administration department accounts for the fund’s utility billing and administration costs such as postage and costs to mail out customer bills, personnel costs for one Utility Billing Administrator, billing software expenses, customer credit card fees, and other costs.

This department has one person budgeted in personnel; however, the fund contributes and shares costs with the General Fund for several other employees. These are: the City Manager, Director of Finance and Administration Costs, PW Director, HR Specialist, Communications Specialist, Senior Accountant, Accounts Payable Tech, Assistant to the City Manager (Support Services) and the City Secretary. The Utility Administration department falls under the direction of the Director of Finance and Administration Services.