Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes an amendment to the 2016-2017 Retail Water System Operations and Maintenance Budget of $4,400,000.00 and an amendment to the 2016-2017 Retail Sewer System Operations and Maintenance Budget in the amount of $14,298,000.00 and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of August 17, 2016
Item No. 16-0127
Amendment to 2016-2017 Retail Water System and Sewer System Operations and Maintenance Budgets
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM Marcus Hudson, Chief Financial Officer
Water and Sewerage Department
RE: Amendment to 2016-2017 Water System and Sewer System Operations and Maintenance Budgets of $4.4 million and $14.3 million, respectively
MOTION
Upon recommendation of Marcus Hudson, Chief Financial Officer, the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes an amendment to the 2016-2017 Retail Water System Operations and Maintenance Budget of $4,400,000.00 and an amendment to the 2016-2017 Retail Sewer System Operations and Maintenance Budget in the amount of $14,298,000.00 and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
JUSTIFICATION
As of June 30, 2016, the Retail Water System and Retail Sewer System had accrued operations and maintenance expenses of approximately $4,400,000.00 and $6,600,000.00, respectively, which will be paid in fiscal year 2017. These collective amounts include approximately $4 million in gross shared services costs from the Great Lakes Water Authority. Given the cut-off of accounting periods associated with the implementation of the City's new financial system, these expenses cannot be assigned to fiscal year 2016 and must be recognized as being paid in fiscal year 2017. Though...
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