No Alternate Sources for Water System Funds
Council is considering an emergency water-rate increase recommended by the Elkins Water Board.
Some customers have asked if there is any other way the water system can obtain the funds it needs to continue operations. For example, could sales-tax proceeds be used?
The short answer is no. West Virginia utilities are required to be run as self-supporting, standalone businesses, supported by rates paid by customers. Utilities are prohibited from accessing tax and other revenues from a city’s General Fund. See the below graphic for more information.
- More about governmental fund accounting: https://coe.zwinggi.co/government/treasurer/explainer-governmental-vs-proprietary-funds/
- Water rate FAQ: https://coe.zwinggi.co/2022-water-rate-increase/
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