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BCRUA_R-22-06-22-6B RESOLUTION NO. R-22-06-22-611 WHEREAS, the Board of Directors of the Brushy Creek Regional Utility Authority ("BCRUA") wishes to adopt the BCRUA Annual Operating Budget for Fiscal Year 2022-2023, in accordance with the attached proposal, Now Therefore BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE BRUSHY CREEK REGIONAL UTILITY AUTHORITY: That the BCRUA Annual Operating Budget for Fiscal Year 2022-2023 be adopted, subject to the approval of the Participating Cities, as set forth in Exhibit "A" attached hereto and incorporated herein for all purposes. The Board of Directors hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED this 22nd day of June, 2022. INA' OLE THOMPSON, resident Brushy Creek Regional Utility Authority ATTEST; RE FLORES, Secreta lfy- 0IM1,4614 n:4866 1.1411(A21 Proposed BCRUA Budget FY 2023 Cedar Park Leander Round Rock FY23 Operating Budget 4,430,056 658,050 2,719,217 1,052,789 FY23 Debt Service Budget 18,268,545 5,779,811 8,214,489 4,274,246 Total Operating and Debt Service Budget 1 22,698,601 6,437,860 10,933,706 5,327,035 Exhibit "A" DATE: June 17, 2022 SUBJECT: BCRUA Board Meeting—June 22,2022 ITEM: 6B. Consider a resolution approving the BCRUA Annual Operating Budget for FY 2022- 2023,subject to the approval of the Participating Cities. PRESENTER: Karen Bondy,General Manager BACKGROUND/JUSTIFICATION: The proposed FY 2023 Annual Operating Budget, including debt service, includes a 1.9% increase,from $22,269,935 to$22,698,601. Budget changes are summarized as follows: Budget Category FY 2022 FY2023 Change Operations $3,798,593 $4,239,163 $440,570 Capital Outlay $92,000 $ 83,000 ($9,000) Reserve Adjustment $ 213,750 $ 107,893 ($105,857) Debt Service $18,165,591 $18,268,545 $102,954 TOTAL $22,269,935 $ 22,698,601 $428,667 The projected FY23 water production is about the same as in the FY22 budget, 12.3 million gallons per day(mgd) compared to last year's 12.55 mgd.Two-thirds of the increase in Operations is due to the increased cost of chemicals.The other one-third is primarily due to the addition of two entry level operators,to allow for BCRUA to have at least two operators on all shifts,as recommended by our Risk and Resiliency Assessment. These increases have been partially mitigated by about$200,000 of reductions in other Operations expense items. BCRUA staff and the Operations Committee(OC) have reviewed this proposed budget and recommend Board approval.