Page 13 - Pantego Adopted Budget FY20

park Row Project Fund This fund was created by advice from the Town's auditors to help centralize
revenues, transfers and expenditures related to the Park Row Project for the duration of the project. The
project consists of the rehabilitation of the Park Row corridor which is to include: new streets, sidewalks,
waterline upgrades, lighting and crosswalks. This project has begun and budgeted expenditures for FY
2019-2020 are $738,875.

WATER AND SEWER FUND

The Water and Sewer enterprise fund receives all revenue through monthly utility customer billings.

Expenses of the Water and Sewer fund include all activities necessary to provide water and wastewater

services to the citizens of Pantego. The Water and Sewer Fund is divided into four (4) separate

funds: (1) Water and Sewer Operations Fund, (2) Sewer Construction Fund, (3) Water

Infrastructure Fund, and (4) a newly created fund to track the Enterprise Fund's portion of projects

funded by the 2019 issuance of Certificates of Obligation. The fund is designed to make a profit, any

excess revenue after the general expenses are paid, are accumulated as reserves or transferred to

the Water and Sewer Construction Fund for future use.

Water and Sewer Operatjnq fund The Water and Sewer Fund has a separate Budget for the
operation of water and sewer services. Revenue resources include water sales, sewer service charge

fees, groundwater conservation fees, collection of garbage and recycling fees, tap fees, water and

sewer access fees, late fees and investment income. The Town currently outsources services for

garbage and recycling; therefore, and per contract, the Town charges and collects the fees and remits

the amount collected to the contractor. Payments are made from this fund for the general operation

and maintenance of the water and sewer system. The fund is designed to make a profit, any excess

revenue after the general operating expenses are paid, are accumulated as reserves/unrestricted net

position.

Overall, water and sewer revenues for Fiscal Year 2019-2020 are projected to increase because of a

recommended rate increase in accordance with the most recent rate study conducted in 2016. Water

sales are projected at $569,605, a slight decrease of $6,292 under the current year's adopted

Budget. Sewer service charge fees are projected at $561,679 $81,122 more than the current year

adopted Budget. These projections are based on historical data and trends included in the rate study.

Sewer Construction Fund The purpose of this fund is to account for transfers from the Water and

Sewer Operating Fund to be used for improvements and repairs to the sewer system. The Fiscal Year
2019-2020 does not include any budgeted items.
Water Infrastructure Fund - This fund was created in Fiscal Year 2011-12 (Ordinance 12-687) by the

Town Council under the advice of the Town's Ad-hoc Water Committee. The objective of the fund is to

generate revenue from the water sales by applying a specific charge that is based on the amount of

water each customer consumes and use it to pay for the water and sewer infrastructure projects

identified by the water study commissioned by the Town Council. Revenue from Infrastructure fees are

projected at $315,000. The Fiscal Year 2019-2020 projects are budgeted at $50,000.

2019 CO Water and Sewer Capital Projects Fund This fund was created to keep track of the

funds received from the 2019 issuance of Certificates of Obligation due to the fact those Obligations

were issued for a specific purpose. The improvements planned to be funded by those funds are: