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Lucas council accepts clean audit, approves water contract and funds road and facility work
Summary
Council accepted the city's ACFR with an unmodified audit opinion, authorized a potable water contract with NTMWD, approved pursuit of a state grant for a storage tank, and approved roadway and building-improvement budget amendments including a 4-inch overlay on Orr Road.
The Lucas City Council’s March 5 meeting included a series of financial and infrastructure decisions.
Audit and ACFR: Brooks Watson & Company auditor Mike Brooks presented the City of Lucas Annual Comprehensive Financial Report for fiscal year 2024–25 and issued a clean, unmodified opinion. Brooks highlighted that total assets exceeded liabilities by about $101.7 million, governmental funds reported a combined ending fund balance increase of roughly $3.3 million, and the unassigned General Fund balance was reported at $11.5 million (approximately 144% of annual General Fund expenditures). Council accepted the ACFR; the motion passed unanimously.
City Hall renovations: Council approved a budget amendment to transfer $36,172.20 from unrestricted reserves to renovate the City Hall front entry and create a dedicated, secure utilities/court clerk office with security glass and a buzzer access system. Staff said documents and electronic records are already backed up and that the renovation fits within existing contingency planning.
Water supply contract and grant pursuit: Council authorized the city manager to execute a potable water supply contract with the North Texas Municipal Water District; staff said the new connection point will be moved closer to the city’s pump station on a newer 72-inch line to increase reliability. Council also directed staff to pursue an anticipated Texas Water Development Board grant for water supply projects; staff identified a nearly shovel-ready ~900,000-gallon ground storage tank project as a competitive candidate and sought authority to begin application preparations.
Road reconstruction — Orr Road: With the private developer for Orr Road now defunct, council approved a budget amendment to use restricted funds and impact fees to reconstruct the gap between the recently repaved section and the county maintenance termination point, and voted to award a contract to Texas Materials Group Inc. Council adopted the engineering recommendation of a 4-inch overlay (rather than a 2-inch overlay) to improve longevity and better match adjacent pavement.
Votes on these items were unanimous. Council asked staff to document expected city costs for McGarity/Allison improvements tied to other development projects and to present grant-application materials as they are finalized.
