Purdy aldermen seek to revise water ordinance
City to eliminate capital improvements reserve fund
Purdy aldermen plan to rewrite the city's water ordinance to eliminate the capital improvements reserve fund.
The ordinance calls for taking 20 percent of collected sales taxes and placing them into a reserve fund for capital improvements. Since all water funds are reserved for water use only, City Clerk Debbie Redshaw suggested the reserve fund was unnecessary, or the ordinance needed a debt service provision to pay off extended debts.
Alderman Ken Real noted the ordinance does not take subsequent rate hikes. Over time, the 20 percent reserve has grown large without specific direction for its use. Redshaw noted expenses have increased with time. The capital improvements fund applied better to the period when the city had payments to make on water towers, but not at the present time, she said.
Real suggested making a line item for specific capital improvements to the water system in the future that would disappear when the debt was paid.
Mayor Steve Roden has asked to have attorney Darlene Parrigon update the ordinance for a vote by the council members.
The Purdy council's next meeting is set for 5:30 p.m. on March 10.