City finance staff and the mayor’s office briefed the Bastrop City Council on a resolution to adopt the sewer fund budget and on administrative charges currently paid from the general fund.

Rick Smith, representing the mayor’s office, told council members the city is evaluating whether an administrative management fee paid from the general fund should instead be charged to the sewer use fund because the management expense is directly tied to sewer operations. "One of the things that we're looking into... why the sewer use fund is not covering that management cost," Smith said.

Council members pressed staff on the ability to reallocate funds and whether changes could be made retroactively. Staff said budget amendments can be made any time during the fiscal year and quarterly adjustments are standard practice. Finance staff reported an approximate sewer fund balance of about $11.1 million and noted approximately $930,000 in expected additions toward year-end based on current revenue trends.

Discussion turned to whether existing sewer fund balances could be used for drainage or flood-relief projects. Staff said certain sewer-use funds are eligible for sewer-related infrastructure but advised legal review to confirm permitted uses under the statute that created the fund. "Charlie Jones and I are looking at it from a legal standpoint to get this opinion," staff said, noting the city auditor would also review appropriations.

Staff and council said the fund balance provides matching capacity for potential grants (staff referenced a potential $2 million grant requiring a 25% local match), and council urged a prioritized plan for addressing flooding and sewer infrastructure needs. The council did not adopt a reallocation at the meeting but asked for a legal opinion and a project plan showing eligible uses and required matches.