COUNCIL COMMUNICATION

DATE: 03/03/03	SUBJECT: FINAL READING ORDINANCE 2003-O-068 Amend the City of Laredo FY 2002-2003 Water Availability Fund Annual Budget by appropriating revenues of $2,900,000 from the opening balance and appropriating expenditures in the amount of $2,900,000 for the Water Rights Acquisition.
INITIATED BY: Larry Dovalina, City Manager		STAFF SOURCE: Heberto L. Ramirez, Utilities Director
PREVIOUS COUNCIL ACTION: Approval of Annual Budget for the Waterworks Fund on September 16, 2002.
BACKGROUND: On February 14, 2003, the Water Issues Committee authorized staff to purchase up to 2,341.3 Water Rights. Based on the best information currently available, the amount of net acre feet that the City of Laredo would be authorized to divert will be between 1,700 and 2,000 acre feet. The City of Laredo owns 46,028.8278 acre-feet of Water Rights. With the purchase of 2,000 acre-feet the total acre-feet would be 48,028.8278. Original Budget allocated $600,000 for Water Right purchases. A draw down on the opening balance will be needed for this purchase that was not anticipated during the budget process. Drawdown on opening balance will leave a budget adjusted closing balance of $4,648,164.
FINANCIAL IMPACT:
COMMITTEE RECOMMENDATION: Approval of purchase of water rights.			STAFF RECOMMENDATION: Approval of Introductory Ordinance and Public Hearing

ORDINANCE 2003-O-068

Amend the City of Laredo FY 2002-2003 Water Availability Fund Annual Budget by appropriating revenues of $2,900,000 from the opening balance and appropriating expenditures in the amount of $2,900,000 for the Water Rights Acquisition.

WHEREAS, on February 14, 2003, the Water Issues Committee authorized staff to purchase up to 2,341.3 acre-feet of Water Rights;

WHEREAS, based on the best information currently available, the amount of net acre feet that the City of Laredo would be authorized to divert will between 1,700 and 2,000 acre feet;

WHEREAS, The City of Laredo owns 46,028.8278 acre-feet of Water Rights. With the purchase of 2,000 acre-feet the total acre-feet would be 48,028.8278;

WHEREAS, the Original Budget allocated $600,000 for Water Right purchases. A draw down on the opening balance will be needed for this purchase that was not anticipated during the budget process;

WHEREAS, Drawdown on opening balance will leave a budget adjusted closing balance of $4,648,164.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAREDO THAT:

Section 1: Revenue appropriated is hereby amended as follows:

PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR ON THIS THE________________DAY OF _______________, 2003.

____________________

ELIZABETH G. FLORES

MAYOR

ATTEST: APPROVED AS TO FORM:

________________________ _______________________

GUSTAVO GUEVARA, JR., JAIME L. FLORES

CITY SECRETARY CITY ATTORNEY