TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, Interim City Manager
FROM: Christopher Cash, Public Works Director
1. Subject
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Appropriation of $2,760,000 for additional water supply cost from the Water Fund (600).
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2. Summary
The cost for the City’s water supply in Fiscal Year 2024-2025 is more than originally budgeted due to increased water demand. Additional funding is needed to pay for the remaining water supply costs.
3. Recommended Action
recommendation
Authorize the appropriation of $2,760,000 from the Water Fund (600) unreserved fund balance to:
600-5802-53105 Purchased Water for Resale
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4. Fiscal Impact
The expense for this purchase is $2,760,000 and will be funded through Water (600):
600-5802-53105 Purchased Water for Resale
Upon approval of this appropriation, the estimated Water (600) fund balance at June 30, 2025, will be $7,940,000.
5. Strategic Plan Goals
Goal 5: Improve Infrastructure, Mobility, and Technology
6. Discussion and Background
The City’s water supply comes from two main sources. The primary source is groundwater drawn from municipal wells. The second source is water imported by the Metropolitan Water District from the Colorado River and from northern California. For Fiscal Year 2024-2025 (FY25), it was projected that water production will be approximately 24,000 acre-feet (AF) based on the last 3-years average. Due to below average rainfall in the region, water consumption in the City was higher than projected. An additional 2,200 AF of water was needed to meet the City’s demand resulting in approximately $2.76 million in added costs to purchase water.
The appropriation request will cover the cost of water supply for FY25. The higher water consumption will also result in higher revenue for the Water Fund in FY25.
7. ATTACHMENTS
• None