Page 13 - Pantego Adopted Budget FY21

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 Operating 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 2020-2021 are projected to decrease due to a
Budgeting error in the prior year, despite a proposed rate increase in accordance with the most recent
rate study conducted in 2016. Water sales are projected at $600,870, an increase of $30,395 under
the current year’s adopted Budget. Sewer service charge fees are projected at $501,218, $60,761
less 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
2020-2021 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 2020-2021 Budget includes several scenarios of projects to be
funded out of this fund.

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:

- Replacing the Pioneer Parkway Waterline
- The Country Club Sanitary Sewer
- The Peachtree/Kidd Sanitary Sewer