The Caldwell County Water Program is operated as an "enterprise fund", meaning that it generates all of its operating funds by its user fees. The Water Fund is not subsidized in its operation from the General Fund. In fact, the Water Fund pays the General Fund an annual amount for all support services that are provided by General Fund departments.

The Board of Commissioners has approved the borrowing of 1.75 million dollars in early 2003 to fund a portion of the long range water expansion plan that involves hydraulic improvements in the Southeast Water System. These improvements must be completed before the County can add significant extensions, in terms of main lines. This expansion will involve closing several gaps in the existing distribution system and adding a storage tank. Several petitions for water service in that system area will be satisfied when the extensions are completed, with a potential for approximately 1,000 new service connections.

This will be the next phase in a long range expansion plan that was originally adopted in 1993 and amended and updated in 1996, and again in 2000. This plan includes the completion of construction of main distribution lines to the County's boundaries that are shared with all of the neighboring counties, except Avery and Watauga. The development of new operating/pressure gradients will be required to serve to the boundaries with those two neighbors.

The debt service on the borrowing of these construction funds will be paid from water revenues. The operation is financially positioned to handle this new debt load without modification to the planned rate schedule that was adopted with the 2000 plan update.