Proprietary funds account for Village's ongoing activities which are similar to those often found in the private sectors where the determination of net income is necessary or useful to sound financial administration, or where service from such activities can be provided either to outside parties or to other departments with Village.

The enterprise funds are proprietary funds of the Village, specifically the Water and Sewer Funds. The accrual basis of accounting is utilized by these funds. Under this method revenue is recognized when earned and expenses are recognized at the time the liabilities are incurred.