Page 13 - Pantego FY22 Operating Budget

which are either directly or indirectly attributable to economic development within the
Town. PEDC’s annual operating budget is first approved by the PEDC Board and
subsequently by the Town Council.

Major Funds:

Major funds are governmental funds or enterprise funds reported as a separate column in the
basic fund financial statements and subject to a separate opinion in the independent auditor’s
report. A government may opt to report a non-major fund as a major fund if the government
believes the fund is of particular importance to the financial statement users. The Town of
Pantego has three (3) major governmental funds: the General fund and one (2) Capital Project
funds.
o General Fund. A General fund is always a major fund since it is the primary operating fund
of the Town. The General fund contains control and fiscal accounting for the Town’s
general service operations and is divided into departments such as administration, public
safety, public works, parks, etc. The General fund’s major revenue sources are ad valorem
(property) taxes, sales taxes, fines and forfeitures, licenses and permits and franchise fees.

o Capital Projects Funds. These funds are utilized for the acquisition and construction of major
capital assets. Capital Project funds are created to account for proceeds from the sale of
general obligation bonds, certificates of obligation, tax or revenue notes, or operating funds
set aside or reserved for such projects to be used for the costs associated with the
acquisition or construction of major capital assets. The Town of Pantego has one (1) major
Capital Project funds: the Street Improvement fund. The Equipment Replacement fund and
The Coronavirus (CLFRF) Fund are considered non-major funds and are therefore reported
as such.

▪ Street Improvement Fund – This fund was established to account for ¼ cent sales tax
allocation voted on by the citizens of Pantego. The revenue is restricted by statute to be
used for existing road improvements and maintenance. Various projects are planned
during the fiscal year, most notably the replacement of curb, gutter, sidewalks, and
crosswalks throughout the Town.

▪ 2019 C/O Drainage Fund – This fund was established to keep track of the special
drainage projects funded by a portion of the Town's issuance of Certificates of Obligation
in the Spring of 2019.

Non-Major Funds:

The difference in financial reporting between a major fund and a nonmajor fund is that the
former must be presented as a separate column in the basic financial statements, whereas data
from all nonmajor funds are reported in a single column. The Town of Pantego has six (6) non-
major governmental funds:

o Special Revenue Funds. These funds are used to account for the receipt of specific revenue
sources that are restricted for expenditures for a specified purpose. Included in the special
revenue funds are the following nonmajor funds:

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