Page 85 - Forest Hill FY21 Annual Budget

Forest Hzll PROPRIETARY FUNDS
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WATER/ SEWER, STORM WATER, DRAINAGE, AND
SANITATION FUNDS

The Water and Sewer Fund is a proprietary fund and accounts for all operations and maintenance of the
City's water distribution and wastewater collection systems. Revenues to support the Water and Sewer
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Fund are derived fom user fees billed to commercial and residential customers in the City.

As a proprietary fund, the Water and Sewer Fund is accounted for on a full accrual basis, and is budgeted on
a modified accrual (working capital) basis. The Water and Sewer Fund is included in the annual operating
budget of the City.

Proprietary Funds/ Enterprise Funds are funds established to account for operations of an enterprise activity
that acts like a "for profit" entity. Enterprise funds generally are segregated as to purpose and use from other
funds and accounts of the governmental entity with the intent that that revenues generated by the enterprise
activity and deposited to the enterprise fund will be devoted principally to funding all operations of the
enterprise activity, including payment of debt service on securities issued to finance such activity. 1n some
cases, however, the governmental entity may be pennitted to use funds in an enterprise fund for other
purposes and to use other funds to pay costs otherwise payable from the enterprise fund.

As a proprietary fund, the fund is accounted is for on a full accrual basis, and is budgeted on a modified
accrual (working capital) basis. The proprietary fund is included in the annual operating budget of the City.

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