City announces grant for pump-station project as water budget flags capital needs

City Manager Edward T. Blackmon said the City of Henderson had been awarded a grant from the Southeast Crescent Regional Commission for the city’s low-pressure pump station project; the minutes list the award amount as "$5000,000," a transcription that appears to contain a typographical error and is flagged for clarification.

Finance Director Joey Fuqua told council that the Regional Water fund remains largely similar to last year’s budget, with modest salary adjustments tied to staff certifications and inflationary pressures on goods and services. Fuqua said the fund maintains reserves of roughly $800,000 to $1 million for unanticipated needs.

Fuqua highlighted several capital items: a 20-inch control valve for a high-service pump (the minutes list the valve at "$138,00," which appears to be a typographical error) and a recommended replacement raw pump with a variable-frequency drive (VFD) estimated in the minutes at $500,000. He said a revenue bond is the likely financing mechanism for the larger pump purchase and that the VFD would let the pump start and stop as needed to save energy compared with the current straight-start pump.

Fuqua also noted routine costs: an increase of $25,000 for maintenance and repair of equipment, relatively stable chemical and utility costs, and existing debt-service obligations including a KLRW-related debt estimated at about $40,000 per year. He said the overall increase in the Regional Water budget is mainly attributable to the revenue bond and prior expansion debt service.

The council did not take any formal action on the items at the session; Mr. Blackmon and Fuqua indicated additional detail and financing options would be provided at subsequent budget meetings.