Jesse Dutcher, Public Utilties director, told the McCook City Council at the budget meeting Monday night that during a software update, a prior account of Burlington Northern Railroad was re-activated.

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Konnie Larson, who monitors the billing, noticed that bills were going out and being paid on a remediation account that had been closed.

For the next two years, $17,500 will be paid to Burlington Northern to pay back the bills collected.

Dutcher told the council he was grateful that the error was discovered sooner rather than later.

"I'm glad Konnie caught it now," he said.

He also notified the council that city residents can expect some discolored water due to the high amounts of water going through the system this time of year.

The city is pumping about 4 million gallons of water per day, he said, with July 11, the peak day so far this year, with 4.5 million gallons.

All this water stirs things up, he said, causing the levels of water to rise in the pipes and scrape off old rust deposits.

Dutcher walked the council through the 2008-09 budget for the water department, that appears to be in healthy condition with $1.1 million as the ending balance.

A total of $6.1 million of revenue is estimated to be available for next year, This includes $3.3 million from beginning cash and reserves, $1.72 collected in water bills and $868,000 in interfund transfers.

Total costs to operate and maintain the department are expected at $3.1 million, slightly more than the $3 million in 2007-08.

Total requirement of funds come to $5 million. This includes water at $2 million, water bond and interest at $643,000, purchases for the plant and reserves at $951,000, loan payment at $655,00, plus finish deep injection well and develop cation waste disposal a $750,000

Purchases included in the 2008-09 budget for water are $10,000 for water well prelube lines, that will add to the life expectancy of the bearings; $10,000 for a riding lawn mower; $22,000 for a half-ton, four by four pickup with a 1994 trade-in, and a laptop computer for $2,000.

Other purchases included for next year in the water department are:

* a ground water line to the Army National Guard facility at the airport, $125,000

upgrade water meters, $50,000

uncommitted emergency reserves, $446, 251