BURNET — Officials believe a healthy financial surplus in city coffers means Burnet can meet its financial obligations if the drought continues.
While other cities fear a reduction in water usage imposed by the Lower Colorado River Authority could cut into revenues from utility bills, Burnet has a surplus of $800,000 for the fiscal year, officials said.
"City Council adopted a budget with a much larger than normal surplus this year to handle a significant revenue loss due to the drought," City Manager David Vaughn said.
The city has enough reserve cash to last about 60 days, Vaughn said. City officials prefer to hold enough cash for 120 days.
The state climatologist told a panel of lawmakers this week in Austin the drought could continue another year. If so, by spring the state could mark its worst dry period in recorded history, which has many municipal authorities worried about the economic impact.
