Page 11 - Pantego FY23 Budget

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 2022-2023 are projected to increase slightly. Water
sales are projected at $606,000, slightly higher than the current budget of $600,870. Sewer service charge
fees are projected at $535,300, 7% or $35,000 higher than the current year adopted Budget.

Expenses in the fund are budgeted at $1,032,590 for Fiscal Year 2022-2023 a decrease of $58,982 or
5.4%

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
2022-2023 does not include any budgeted items. On the advice of our auditors, and due to the historical
non-utilization of this fund this fund will be closed at the end of Fiscal Year 2022 and all operating repairs
and improvements will be funded directly by the operating fund.

Water Infrastructure Fund – This fund was created in Fiscal Year 2011-12 (Ordinance 12-687) by the
Town Council under the advice of the Town’s Ad-hoc Water Committee. The objective of the fund is to
generate revenue from the water sales by applying a specific charge that is based on the amount of water
each customer consumes and use it to pay for the water and sewer infrastructure projects identified by
the water study commissioned by the Town Council. Revenue from Infrastructure fees are projected at
$315,000. There are no projects currently planned out of this fund for Fiscal year 2022-2023 as the fund
will be largely deleted due to the emergency repair and replacement of the Town’s main North/South 16”
waterline.

ADOPTED BUDGET FY2022-23 TOWNOFPANTEGO.COM/BUDGET PAGE 9