Page 250 - Southlake FY24 Budget

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.

Debt Service
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 adopted residual control system will give the City of Southlake the ability to add disinfecting
chemicals to Southlake’s water distribution system. This will help 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.

Residual Control System Residual Control System Shady Oaks

250 FY 2024 City of Southlake | Budget Book