Page 57 - Watauga FY21 Budget

BUDGET OVERVIEW

Transfers In – Funds transferred from another fund for obligations.

Miscellaneous revenue - Includes interest earned on the investment of each
fund’s cash and other various revenues.

Proprietary Funds

Water and Sewer Sales Revenues – The Utility Billing Office bills and collects
revenues from the sale of potable water and the disposal of sewage discharge for single
and multifamily residential buildings and commercial facilities inside the City. Projected
revenues for these fees are generally based on population estimates, although weather
conditions play a significant factor in revenues actually received. These revenue
sources constitute 95% of the Water and Sewer Utility Fund revenues. Other revenues
such as penalty revenue, service charges, interest and transfers make up 5% of the
Water and Sewer Utility Fund revenues. The Water and Wastewater Utility Fund
requires 25% level of reserves. Currently, the fund is under this stated policy and is
working to build up reserve levels. Given the economic uncertainty of the next few
years, these fund balances provide a level of stability for City operations.

Water service revenues fluctuate seasonally and can be drastically affected by an
extended period of drought or rainfall. The charts below shows how drastically monthly
water consumption and revenues can vary by month and from year to year.

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