Page 244 - Hurst FY20 Approved Budget

ENTERPRISE FUND

FINANCIAL POLICY GUIDELINES

Numerous financial policy guidelines are followed for the fiscal management of the Enterprise Fund and enable the
fund to maintain financial stability. Some of the most significant guidelines pertaining to the budget and revenue
presentation are as follows:

1. Revenues shall be set for budget and rate purposes to meet or exceed planned expenditures.

2. The projection of "water loss and unaccounted for" due to common water system conditions such as meter
under-readings, firefighting, water line breakages and utility line flushing’s shall not be allowed to exceed 5%
without just cause or uncontrollable events.

• No free water will be allowed, including water used for municipal purposes such as median irrigation
and park irrigation.

• Meters will be tested and replaced on a regular basis.

q Large commercial meters will be tested on an annual basis and replaced when the accuracy
exceeds plus or minus five percent.

q Residential meters will be tested on an exceptional basis or random basis and will be replaced
every one million gallons or every ten years, whichever comes first.

• Records of estimated, unmetered water uses will be maintained by the utility department and the fire
department, especially for major water main breaks and major fires.

• The City will monitor for accuracy all metering points of water pumped into the system from either
wells or third party providers.

• The City will prepare an accounting of water quantities received and used on at least an annual basis
and prepare a report showing the effectiveness of the water volume accounting program.

3. Any municipal customer shall be required to pay the cost of conveyance of wastewater through the Hurst
system, including operating costs and capital costs of the portion of the system used and the administrative
costs of managing a wholesale customer contract.

4. Any municipal customer or commercial customer that introduces wastewater quality loadings that exceed the
allowed limits of the standard quality measurements, especially biological oxygen demand (BOD) and total
suspended solids (TSS) shall pay a surcharge based on the cost of treating the excessive loadings.

5. Existing ratepayers shall be relieved of all or a portion of the cost of making service available for new growth,
to the extent practical and reasonable.

• Impact fees shall be charged to new development based on system capacity costs as allowed by and
calculated in accordance with Chapter 395 of the Local Government Code. These fees shall be used
for expansionary projects or for the recoupment of existing projects with capacity available and held
for new growth, as allowed by law.

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