Title
The Board of Water Commissioners for the City of Detroit Water and Sewerage Department approves the amendment to reduce the operating budget for Fiscal Year 2022 for the Water Operating Fund in the amount of $6,103,550 and for the Sewage Disposal Operating Fund in the amount of $5,905,900 to reflect the forecasted revenue shortfall; and further authorizes the Director and Chief Financial Officer to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of August 18, 2021 Item No. 21-0568
Amended Fiscal Year 2022 Water Supply and Sewage Disposal Operating Budgets
TO: The Honorable
Board of Water Commissioners City of Detroit, Michigan
FROM: Gary Brown, Director
Detroit Water and Sewerage Department
RE: Resolution to Amend the Fiscal Year 2022 Operating Budgets for the Water Supply and Sewage Disposal Systems to Reflect the Forecasted Revenue Shortfall
MOTION
Upon recommendation of Istakur Rahman, Chief Financial Officer, the Board of Water Commissioners for the City of Detroit Water and Sewerage Department approves the amendment to reduce the operating budget for Fiscal Year 2022 for the Water Operating Fund in the amount of $6,103,550 and for the Sewage Disposal Operating Fund in the amount of $5,905,900 to reflect the forecasted revenue shortfall; and further authorizes the Director and Chief Financial Officer to take such other action as may be necessary to accomplish the intent of this vote.
WHEREAS The Great Lakes Water Authority (“GLWA”) assumed operation of the regional water and sewer systems and the Detroit Water and Sewerage Department (“DWSD”) continued operation of the retail water and sewer systems on January 1, 2016 pursuant to Lease Agreements between GLWA and the City of Detroit dated June 12, 2015.
WHEREAS The updated revenue forecast shows a lower projected volume. The budget was adjusted to reflect the projected revenue shortfall; and
WHEREAS The annual rate for fireline charges were decreased to the Fiscal Year 2021 rate and the number of forecasted meters increased. The net result is an increase in fireline revenue of $26,500; and
WHEREAS The amended budgeted annual revenue requirement for the Water Supply System for Fiscal Year 2022 decreases from $122,941,800 to $116,838,250 or $6,103,550; and
WHEREAS The amended budgeted annual revenue requirement for the Sewage Disposal System for Fiscal Year 2022 decreases from $371,768,800 to $365,862,900 or
$5,905,900; and
NOW THEREFORE BE IT:
RESOLVED That the Detroit Board of Water Commissioners approves the attached Amended Budgets for Fiscal Year 2022; and be it finally
RESOLVED That the Director, and the Chief Financial Officer are authorized to take such other action as may be necessary to accomplish the intent of this resolution.