Water and Wastewater Fund

The purpose of the Water and Wastewater Fund is to provide clean water, safely dispose of wastewater, and provide reclaimed water to reduce water consumption. As an enterprise fund, the Water and Wastewater Fund must be self-supporting through user fees charged for services.

The FY 2024 approved budget assumes $500 Million in revenue to the Water and Wastewater Fund. Of this, 40.1% derives from operating revenue, which is primarily revenue from the sale of water, wastewater, and reclaimed water.

In FY 2024, Pasco County is projecting that annual customer growth will increase by approximately 3.3% for water services, 3.4% for wastewater services, and by about 9.6% for reclaimed water services. Also, FY 2024 represents the third year of an updated four-year water and wastewater schedule of rates, fees, and charges, which increases water rates and wastewater/reclaimed rates annually by 1.5% and 3.5%, respectively.

Major revenue sources for the FY 2024 Water and Wastewater Fund budget include:

98.4% of the amount of Miscellaneous Revenues in the Fund are Prior Year Balance Brought Forward, or Fund Balance. This is a non-recurring revenue source comprised of the difference between revenues and expenditures from previous years.

Service Charges for Wastewater are 54.7% of this funding, followed by 43.4% for Water Utilities.

Water and Wastewater System Construction Permits are a combined 38.8% of the Permits, Fees, and Special Assessments in the Fund. The other 61.2% are Biosolid Host Fees.

99.9% of the other sources revenue in the Fund is for the initial Water and Wastewater connection fees.

The major expenditures for the Water and Wastewater Fund include:

Reserves are the portion of Fund Balance that is legally segregated for specific purposes. The Board of County Commissioners has adopted a financial policy that the Water and Wastewater Fund reserve an amount equal to 16.7% of budgeted expenditures. This is known as the Committed Reserve. These funds are set aside so that in case of an emergency, the County can continue to conduct operations. The remaining Reserve will be set aside for one-time capital improvements, thereby alleviating the need to borrow money for these system projects and saving users the interest costs. Fund level reserves make up 67% of the amount of this category in this Fund.

The remaining amount is comprised of operating expenses for the Utilities Operations & Maintenance, Customer Information & Services, and Engineering & Contract Management Departments, as well as Public Infrastructure Fiscal & Business Administration.

The primary expense in this category is Depreciation at 97.1%. This is dedicated to expenses associated with the reduction in value of the Water & Wastewater System assets over time through normal usage.

Debt Service costs is 100% of these expenses in the Fund within this category.