Page 27 - Pantego FY22 Operating Budget

2019 CO Capital Project Fund - This Fund was established to account for the General Government
portion of projects planned for the funds received from the issuance of the 2019 Certificates of Obligation.
The projects planned from this fund are:

- The Nora Drive Storm Sewer Pipe Lining
- The Country Club Storm Sewer Pipe Lining

Coronavirus (CLFRF) Fund - This Fund was established to track the use of the Coronavirus State and
Local Fiscal Recovery Funds that were issued to the Town by the Department of Treasury under the
federal American Rescue Plan Act of 2021. Staff will make recommendations to Council on the use of
these Funds in accordance with the approved use guidelines issued by Treasury.

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 fund created 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 2021-2022 are projected to remain flat. Water sales
are projected at $600,870, the same as the current year’s adopted Budget. Sewer service charge
fees are projected at $500,300, $918 less than the current year adopted Budget. These projections
are based on historical data and trends included in the last rate study completed in 2016.

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
2021-2022 does not include any budgeted items.

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