Page 206 - Watauga FY21 Budget

PROPIETARY FUNDS

Water and Sewer Utility Operating Fund

The Water and Sewer Utility Fund is one of two enterprise funds of the City. Its purpose is to
account for operations that are financed and operated in a manner similar to private business
enterprises. The intent of the City Council is that cost of providing services to the general public on a
continuing basis be financed or recovered primarily through user charges. Watauga implemented
Water and Sewer rates in 1996 as a result of the system purchase from North Richland Hills. A
pass-through rate change was made effective in 2001 based on actual charges incurred by
wholesalers. In December, 2011, rates were increased in order to make this fund self- sustaining
and to begin water and wastewater line improvements. A utility rate study was performed in 2018-19
that resulted in an increase to the water and sewer base rate and consumption charges.

This fund is used to account for user fees charged to residential and commercial units located within
the City of Watauga. All activities necessary to providing such services are accounted for in this
fund, including, but not limited to, administration, operations, maintenance, and billing and
collections. Accounting records for the Water and Sewer Utility Fund are maintained on the accrual
basis.

Where Does the Money Come From?

Where Does the Money Go?

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