Page 257 - Southlake FY23 Budget

DEBT SERVICE FUnDS ExPEnDITURES

revenue bOnD Overview

Revenue bonds are used to fund construction of city infrastructure such as water
and sewer system improvements. Debt service on these bonds is covered by
utility ratepayers. Some projects currently under construction that are funded
through these types of bonds are:

Water Quality Improvements - Install Residual Control Systems in the City’s
Ground Storage Reservoirs

The City of Southlake receives its water from the City of Fort Worth’s Water
Department. Fort Worth treats the water then pumps the water through several
large transmission lines that travel several miles before arriving at Southlake’s
point of entry. The treated water is required by law to maintain a specific
disinfectant level due to keep the water safe for public consumption. Residual Control System

Daily consumption impacts how long the water remains in the transmission
lines. Higher consumptions will move the water faster and the disinfectant levels
remain fairly constant from treatment to the consumer. Lower consumption
results in water traveling through the system much slower. The longer the water
remains idle in the system the faster the disinfectant residual will decrease
allowing bacteria to grow in the water system. This bacteria, if left uncontrolled,
will render the water undrinkable. The City flushes water during times of lower
demand, such as during the cooler months, to keep the disinfectant products
at optimum levels. The flushing efforts are effective but cost money and
waste a precious resource. Maintaining water quality directly impacts resident
health and ensures the City maintains its “Superior” water rating by the Texas
Commission on Environmental Quality (TCEQ).

The proposed residual control system will give the City of Southlake the ability to
add disinfecting chemicals to Southlake’s water distribution system. This will help Residual Control System
us maintain our water quality by being able to manage and dose disinfectant into
the water system to reduce our flushing efforts. This project was the result of
consultant’s recommendation from the City’s water quality evaluation.

Shady Oaks 12-inch Water and 8-inch Sewer Lines (Phase I)

This project will add a 12-inch water line along Shady Oaks from Highland Street
to West Dove Road, and an 8-inch sewer line from Highland Street to Fox Glen.
This project will improve water quality, service and fire protection in the region.
Additionally, the completed sewer line will convert this area from a sanitary
lift station to a gravity sanitary sewer system, eliminating the need for the
maintenance and upkeep of the existing lift station.

The schedule at right shows the City’s outstanding revenue bond debt, including
principal and interest amounts as well as the bond maturity date.
Shady Oaks

256 FY 2023 City of Southlake | BUDGET BOOK
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