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Enterprise / Proprietary Funds Overview

The Water and Sewer (Fund 60), Waterworks Construction (Fund 61), Sanitation (Fund 62), and Storm
Water Drainage (Fund 65) Funds comprise the City proprietary fund and account for all operations and
maintenance of the City’s water distribution, wastewater collection, trash, and drainage systems.
Revenues to support this Proprietary Fund are derived from user fees billed to commercial and residential
customers in the City. The Water and Sewer (Fund 60) is sometimes referred to as an Enterprise Fund.
Proprietary Funds / Enterprise Funds are funds established to account for operations of an enterprise
activity that acts like a “for profit” entity. Enterprise funds generally are segregated as to purpose and
use from other funds of the governmental entity with the intent that revenues generated by the
enterprise activity are deposited and will be devoted principally to funding all operations of the enterprise
activity, including payment of debt service on securities issued to finance such activity. In some cases,
however, the governmental entity may be permitted to use funds in an enterprise fund for other purposes
and to use other funds to pay costs otherwise payable from the enterprise fund.

As a proprietary fund, the fund is accounted for on a full accrual basis and is budgeted on a modified
accrual (working capital) basis.

Enterprise Funds (60, 61, 62, 65) Revenues, Expenditures, & Transfers

Enterprise Funds (60, 61, 62, 65) Expenditures by Department (Excluding

Transfers)

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