Most of us have participated in discussions about transfers from a utility fund to General Fund. We understand that these transfers need to be justified as admin charge, in lieu of franchise, etc. It is not best practice to use utility fees for governmental activities and these transfers have been challenged numerous times.
Thoughts about one-time transfers from General Fund to a utility? The discussion is regarding use of property tax dollars to subsidize utility improvements and/or operations instead of rate increases. We will review internal charges and/or franchise transfers. Other suggestions and has anyone addressed this kind of subsidy?
Oh gosh... that's interesting... The purpose of an enterprise fund though is for it to be self-sustainable, right? It should operate within itself and either raise fees or debt to cover expenses. So that would be my argument for not doing a transfer from the General Fund to an Enterprise fund.
On the other hand... legally we can declare "surplus revenue" in an enterprise fund and use it for another source... so could we not do the same thing in the General Fund? There's my argument for doing it.
I would love to hear what others have to say though...