FY2022

WATER FUND The Water Fund accounts the City’s water utility operations including the operation of a water production plant, water storage facilities, water distribution system, water meter reading, and water quality monitoring. The business-like fund is primarily supported through user fees. Fund Balance: The Water Fund’s unassigned fund balance at the close of fiscal year 2020 was $6,811,458 or $2,133,319 lower than fiscal year 2019. The decrease in unassigned fund balance in fiscal year 2020 was primarily due to the creation of a Capital Reserve. A Capital Reserve was created in fiscal year 2020, and $4 million was transferred into it from unassigned fund balance.

Fund Balance (1)

$14,000,000

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Restricted/Assigned $3,599,800 $3,634,175 $6,204,725 $6,231,749 $6,682,875 6,685,205 Unassigned $8,338,438 $8,944,777 $6,811,458 $5,788,885 $5,992,518 $6,424,949 $0

(1) FY21 - FY23 figures are estimates

The fiscal year 2021 unassigned fund balance is estimated to decrease from $6,811,458 to $5,788,885 or $1,022,573. This is primarily due to a reduction in revenue as a result of COVID-19. The approved 5% rate increase for fiscal year 2021 was delayed to fiscal year 2022, and carding and late fee charges were halted for most of the fiscal year. Revenue loss was also occurring due to the changes at Procter & Gamble; however, they have scaled back the amount of work that will move to a West Virginia plant which has slowed the decline in their water charges. In addition to the revenue loss, the cost to purchase and remove lime increased Water Plant Operations expenditures for Services and Supplies substantially. Fiscal year 2022 unassigned fund balance is anticipated to grow by $203,633 over fiscal year 2021. This is primarily due to the sharing of customer service costs with the Sewer Fund that is programmed to start in fiscal year 2022 as well as the addition of the 5% water rate increase.

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