Page 67 - Watauga FY21 Budget

BUDGET OVERVIEW

Capital Projects Fund

The Capital Projects Fund is used to account for financial resources to be used
for the acquisition and construction of major capital facilities and equipment.
Financing is provided primarily by the sale of general obligation and contractual
obligation bonds.

Debt Service Fund

The Debt Service Fund is used to account for the accumulation of resources for,
and the payment of, general and contractual obligation bonds, interest, and
related costs.

Proprietary Fund Type

Proprietary funds are used to account for activities that are similar to those often found
in the private sector. The measurement focus is upon determination of net income and
capital maintenance. The City's proprietary fund type consists of:

Enterprise Funds

The Water and Sewer Utility Enterprise Fund is a proprietary fund used to
account for revenues and expenses related to the operations and maintenance of
the City’s water and sewer utility system including, but not limited to,
administration, operations, maintenance, billing, and collections.

The Storm Drainage Utility Enterprise Fund is a proprietary fund used to account
for revenues and expenses related to the operations and maintenance of the
City's drainage utility system. Costs of the system are recovered through
drainage utility fees, which are levied against all developed property within the
City.

Account Groups

Account groups are used to establish accounting control and accountability for the City's
general fixed assets and general long-term debt. The following are the City's account
groups:

General Fixed Assets Account Group - This account group is established to
account for all general fixed assets of the City, other than those accounted for in
the proprietary fund.

General Long-term Debt Account Group - This account group is established to
account for all general long-term debt of the City, other than those accounted for
in the proprietary fund.

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