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APPROVED BUDGET FISCAL YEAR 2022-2023

Enterprise Fund

The Enterprise Fund is used to account for the provision of water and wastewater services to the
residents of the City. All activities necessary to provide such services are accounted for in this
fund, including, but not limited to, administration, operations, maintenance, financing and
related debt service, billing and collection. The operations of the Enterprise Fund are financed
and operated in a manner similar to private business enterprises where the expenses (including
depreciation) of providing services are recovered primarily through user charges.

Other Funds

The Internal Service funds are the Fleet Service Fund, the Information Technology Fund and the
Loss Reserve Fund. The Fleet Service Fund and Information Technology Fund were established to
charge user departments for vehicle and computer maintenance and replacement costs,
respectively. The self-funded Loss Reserve Fund records all activity for the employee health care
benefit program.

The Debt Service Fund's purpose is to provide for principal and interest payments for the City's
General long-term debt obligations.

The Special Revenue Funds are dedicated to track the revenues and expenditures associated
with enabling legislation, grant agreements, or other funds that are dedicate to fulfill specific
requirements and other obligations. These funds include the Special Projects Fund, the Hotel-
Motel Tax Fund, the Park Donation Fund, Police and Fire Grant Funds, the Municipal Court
Building Security Fund, the Municipal Court Technology Fund, the Juvenile Case Manager Fund,
the Traffic Signal Safety Fund, the Commercial Vehicle Inspection Fund, the Video and Cable
Provider Peg Fee Fund, , the Community Services Half Cent Sales Tax Fund, the Anti-Crime Half
Cent Sales Tax Fund, Bond Funds, and funds that are necessary from time to time. Each fund is
specifically established to account for the proceeds of specific revenue sources that are restricted
to expenditures for specific purposes.

Other Proprietary or Enterprise Funds provision of water and wastewater services has
historically been the City’s only proprietary or enterprise operation. As such, the City’s budget
continues to label water and wastewater operations as the “Enterprise Fund.” Additionally, the
City operates other funds that are considered proprietary or enterprise type funds. These funds
include the Hurst Conference Center Fund, the Storm Drainage Utility Fund, the Information
Technology Fund, the Fleet Fund, and the Loss Reserve Fund.

Capital Improvement Funds

Street Bond Funds account for the financing and construction of various street projects. The
projects primarily involve street reconstruction and enhancement that will add to the value and

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