Page 369 - FortWorthFY22AdoptedBudget

The Street Rental Fee shall be calculated as five percent (5%) of gross service revenue for
Water and Sewer customers, unless specified otherwise by applicable wholesale contract.

For the purposes of cost recovery, the Street Rental Fee shall be treated as revenue in the
General Fund and as an operating expense in the Water and Sewer Fund.

The amount of the Street Rental Fee assessed will be included in annual retail and wholesale
water and wastewater cost of service studies performed by the Water Department and included
in the annual operating budget. Street Rental fees will be assessed to Wholesale Water and
Sewer Revenues as specified in the contracts with wholesale customers.

Because this Fee is based on actual gross service revenue, after the close of each fiscal year
staff shall conduct a “true up” process in connection with preparation of the annual audit. If it
is determined that actual gross service revenue for the most-recent preceding fiscal year differs
from the budgeted amount, a one-time adjustment shall be made to offset such difference so
that the Water and Sewer Fund’s final audited figures for the year, as reported in the
Comprehensive Annual Financial Report, reflect a total for street rental payments based on
actual gross service revenue.

V. Payment-in-Lieu-of-Taxes:

The Payment-In-Lieu-of-Taxes (PILOT) to the General Fund is intended to offset the ad
valorem taxes lost due to the tax-exempt status of the Water and Sewer System property.

The PILOT shall be calculated by applying the effective property tax rate to the net book value
of the applicable capital assets. Capital assets subject to PILOT shall be limited to those
classified as Plant and Property, including Construction Work in Progress, and shall exclude
Transmission, Distribution and Collection Pipes and Hydrants.

An example of the PILOT calculation:

(Plant Assets – Accumulated Depreciation + Construction Work in Progress) * Current Tax
Rate

For the purposes of cost recovery, PILOT shall be treated as revenue to the General Fund and
as an operating expense of the Water and Sewer System. In any given year, the payments shall
not exceed the PILOT calculation described above.

The amount of the PILOT assessed will be included in annual retail and wholesale water and
wastewater cost of service studies performed by the Water Department and included in the
annual operating budget. The PILOT will be assessed to Wholesale Water and Sewer Revenues
as specified in the contracts with wholesale customers.

VI. Contribution to Public Art:

Funding for the Fort Worth Public Art Program, which was established in 2001 with the
adoption of Ordinance Number 14794, will be provided by the Water and Sewer Fund.

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