Page 83 - City of Westlake FY20 Budget

Section 2 Financial Analysis
Funds and Departments

TOWN OF WESTLAKE

PROPRIETARY FUNDS

Enterprise Funds Internal Service Funds

~ Utility Fund ~Utility Maintenance & Replacement Fund
~ Cemetery Fund ~General Maintenance & Replacement Fund

~Vehicle Maintenance & Replacement Fund

ENTERPRISE FUNDS

Account for operations of governmental facilities operated in a manner similar to commercial
enterprises where the intent is to recover, in whole or in part, the costs and expenses of providing
goods and services to the public. Revenues are typically generated through usage fees based on
individual demands of each customer. Enterprise funds may be used when the governing body has
determined that periodic determination of revenue earned, expenses incurred, and/or net income is
appropriate for capital maintenance, public policy, management control, accountability, or other
purposes.

• The Cemetery Fund includes all operations associated with the 5.5-acre cemetery located on
J.T. Ottinger Road which was donated during the year ended September 2008.

• The Utility Fund accounts for water, wastewater and telecommunications conveyance (duct
bank) services for the residents of the Town. All activities necessary to provide such services
are accounted for in this Fund, including administration, operations, maintenance, financing
and related debt service, and billing and collection. Additionally, the Town collects monthly
solid collection fees in this fund which are paid to the Town’s solid waste franchisee.

INTERNAL SERVICE FUNDS

Account for services and/or commodities furnished by a designated program to other programs
within the Town. Funds include the following:

• The General Maintenance & Replacement Fund (GMR) is an account used to offset the future
costs of repair and/or replacement of large capital assets due to age and use. Contributions
from the Town’s General Fund are transferred on an annual basis; resulting in a cash balance
which mitigates the cash flow impact of large maintenance and capital replacement costs.

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