Skip to main content
This section is included in your selections.

(a) When the City operates any public utility or enterprise listed in the above section or any other public utility or enterprise, it may be operated out of the general fund of the City, but it is hereby declared highly preferable under ordinary circumstances to separate such utilities and enterprises from the general fund and to operate them from a separate fund or funds when the volume of business justifies it. Therefore, the Council, by resolution or motion, is hereby authorized to require that any public utility or enterprise operated by the City shall be operated from a separate utility or enterprise fund and to create such separate fund, giving it an appropriate designation. There may be a separate fund for each such utility or enterprise, or two (2) or more such utilities and enterprises may be operated from a single utility or enterprise fund, as the Council may determine by resolution or motion.

(b) When the City operates one or more utility or enterprise from a separate fund, all rentals, charges, and other receipts thereof shall be placed in the fund from which operated; and disbursements therefor shall be made from the fund.

(c) All such public utilities and enterprises operated from a separate fund or funds are businesses (very much like private businesses), and shall be operated in a business-like manner. It is intended that any utilities and enterprises operated by the City from separate utility funds shall be self-supporting, and that they shall not support other functions or activities of the City Government. Such utility or enterprise operated from a separate fund shall compensate the City for all goods and services furnished it by other units of the City Government; and conversely, the City shall compensate the utility or enterprise fund for all goods and services furnished the City by a utility or enterprise operating from the said fund. (For example, each utility or enterprise operated from a separate fund shall pay the City for billing, collecting, accounting and financial services, and for the value of services rendered the utility by the City Administrator, City Clerk and other non-utility personnel.)

(d) The City Council may provide, by resolution or motion, that each utility or enterprise operated from a separate fund shall pay to the City an amount in lieu of taxes which the Council reasonably estimates the utility or enterprise would pay in City taxes (ad valorem, sales tax, etc.) if the utility or enterprise were privately owned.

(e) Money may be borrowed by or from a utility or enterprise fund in anticipation of revenue collections for the fiscal year, as provided by the City Charter, Section 6-2.

(KC 1-29)