Wednesday, April 05, 2017

Water Department Needs $25 Collection Fee

San Angelo City Council talked water finances without referring to the city's most recent comprehensive annual financial report (CAFR).  The issue concerned the $25 late fee charged by the Water Department for late bills.  City Councilwoman and Mayoral Candidate Charlotte Farmer said the late fee was intended to help with conservation.  Council incentivized citizens to conserve years ago with a 45% rate hike.  It worked amazingly well.   

The city doubled down on rate increases with its five year plan to hike rates another 55%.  Money is flowing in.  The 2016 CAFR shows the city had $27.4 million in water and sewer fund investments (on page 31).  It also showed both the water and sewer funds had a great year.

Yes, the city is building reserves to fund future capital projects but it behooves council to recall that significant dollars are being generated that end up in a bucket different from the targeted 75 day cash position.  Could the city have hit the 75 day target if it did not put such a large amount, $9,744,418 into investments (page 33)?

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