Page 10 - PantegoFY24AdoptedBudget

Capital Project/Equipment Replacement Fund – This fund is used to account for acquisition of
equipment for various departments of the Town. It is also used to account for capital improvements for
the general government not currently funded through any other fund. This fund is entirely dependent on
cash inflows from the General Fund. Therefore, future capital expenditures will not be made if there is
an absence of transferable reserves from the General Fund. This fund will be used this year for the
acquisition of several new vehicles.

2023 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 2023 Certificates of Obligation.
The projects funded by this fund are:

- The Reverse Osmosis System.
- The new water storage tank.
- The new well
- Newsome and Arrowhead Water and Sewer pipe bursting

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 (2) separate
funds: (1) Water and Sewer Operations Fund and the (2) Water Infrastructure Fund. The fund is
designed to make a profit, any excess revenue after the general expenses are paid, are accumulated
as reserves.

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 2023-2024 are projected to decrease slightly to line up
with recent usage trends. Water sales are projected at $581,000, compared to the current budget of
$606,000. Sewer service charge fees are projected at $638,000, 19.2% or $102,700 higher than the
current year adopted Budget due to increased costs charged by Fort Worth and Arlington for our sewer
services.

Expenses in the fund are budgeted at $1,081,489 for Fiscal Year 2023-2024 an increase of $48,899 or
4.7%. The increase is due to inflationary pressure on supplies and equipment.

ADOPTED BUDGET FY2023-24 TOWNOFPANTEGO.COM/BUDGET PAGE 8