Page 245 - Hurst FY20 Approved Budget

ENTERPRISE FINANCIAL POLICY GUIDELINES CONTINUED

• The new growth shall also be charged the water and wastewater availability fee charged to the City of
Hurst by the wholesale supplier of water and wastewater services.

6. The current ratepayers paying their bills on time will not bear the cost of those not doing so. Penalties and
fees will be assessed to those accounts that do not pay on time, requiring costly notices, turn-offs, turn-ons
and other field and administrative costs. Deposits will be established at levels that eliminate or minimize the
loss of revenues due to bad debts.

7. Water purchase costs shall be based on several factors:

• Projected changes in volume, peak hourly demand and peak daily demand.

• The projected costs of purchasing water from the wholesale supplier, the City of Fort Worth.

• The productivity and capacity of the City's water well system used for peak loading purposes.

• The water loss and unaccounted for factors.

• The estimate of water sold to City customers.

8. Wastewater transportation and treatment costs shall be based on several factors:

• The projected wastewater volumes contributed by the City's wholesale and retail customers.

• The inflow/infiltration (I&I) volumes that enter the City's conveyance system and are transported to the
wholesale treatment facilities.

• The cost of wastewater treatment, including surcharges for above-average loadings.

9. The City shall pay to the General Fund an amount for the indirect cost of administration, fiscal and building
facilities that serve the Water and Wastewater Enterprise Fund. The basis for this transfer shall be cost
based, shall be supported by a thorough analysis done on a frequency of not less than every three years, and
shall be increased annually between such analysis based on growth factors that approximate the consumer
price index.

10. The City shall pay to the General Fund an amount for the rental of streets equal to the same amount that
would be realized by the City if the Water and Wastewater Enterprise Fund was held and operated by a
private utility under franchise by the City. The Street Rental Fee shall be computed at 5% of the water and
wastewater retail sales.

11. The City shall formulate a capital improvement plan (CIP) each year that looks forward no less than three
years. This CIP will include both system expansion projects and projects that rehabilitate or replace portions
of the utility system.

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