ADMINISTRATIVE REPORT
MEETING DATE: January 7, 2026 AGENDA CATEGORY: Consent - Miscellaneous TO: Honorable Mayor and City Council
FROM: Kristina Budak, Water Director
DATE: December 16, 2025
SUBJECT: Appropriate and transfer additional $50,000 from the Domestic Water Connection Fees Fund for the purchase of land for water well site.
RECOMMENDATION:
Staff recommend approving the appropriation.
BACKGROUND:
City has identified the need for additional groundwater supply to meet current and future domestic water demands. As part of the Old River Ranch development (Tract 6577), City is in the process of acquiring parcel(s) suitable for the construction of a future municipal water production well.
At the November 19, 2025 City Council meeting, Council approved the appropriation of $350,000 for the land purchase. The property appraisal has since been completed and was received at an amount higher than originally anticipated. As a result, staff are requesting an additional appropriation of $50,000 to complete the acquisition.
Funding for the purchase will be appropriated from the Domestic Water Connection Fee s Fund, also referred to as the Water Availability Fee Fund, which was established to support future water supply development and related infrastructure needs. The transfer of $50,000 to the Domestic Water Fund will allow the acquisition to be properly recorded as a capital asset of the water enterprise.
FISCAL IMPACT:
Approval of this action will authorize the appropriation and transfer funds from the Water Availability Fees Fund (4490) to the Domestic Water Fund (4410) for the purchase of the well site at Old River Ranch Tract 6577. Sufficient funds are available, and there will be no impact on the general fund.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
None.